The railway ministry and the state government need to look for out-of-the-box solutions, including a fare hike, exploitation of real estate and subsidies to shore up finances of the suburban railways, which cater to almost 75 lakh passengers per day .
Affordability and sustainability are key to ensuring commuters are willing to pay the right fare and the operator is able to run the services without compromising on safety , maintenance and comfort.
Afare hike is a solution but not panacea for all ills. An official said, “ A survey revealed that commuters are comfortable with only a 15% hike. This should be the first step, though it will give us Rs 250-300 crore more, which still leaves the suburban railways with a loss of around Rs 800 crore.“
The official said the railways was subsidizing the cost of private enterprises by charging low fares.
He said, “If higher fares are charged, traders and corporates will have to increase conveyance allowance to retain their workforces.“
Mumbai is the costliest city in terms of real estate, but the railways has failed to exploit its potential.
A senior MRVC official said, “In Mumbai, only 6.5% of the revenue is through fare box revenue. Of this, only 27% of it is through rentals from stall-owners. We need to create more commercial space at sta tions to earn good revenue. It is challenging as we cannot open a mall or shopping centre, even though people would find it convenient. But it may add up to congesting the station building.“
He added, “The Delhi Metro Rail Corporation (DMRC) is able to earn almost 20% from non-fare box revenue.The Hong Kong Metro earns 41% through exploitation of real estate.“
The DMRC also got transit oriented development approved, which will allow it to further earn revenue through real estate development and help keep fares affordable.
The official said, “The electricity tariff is Rs 9 per unit, which is costly , as power utilities are assuring uninterrupted supply . On the other hand, the DMRC is getting power at Rs 6.50 per unit. The power that the suburban rail ways consumes is for public benefit. The government should step in and subsidize the cost of power.“
The government must also set up a dedicated fund by levying a cess, tax or parting with revenue earned from real estate-related transactions by way of stamp duty and registration. He said, “The property value increases when a mass rapid transport is efficient in a city . The railways has never benefited from this property boom. The dedicated fund can be used to subsidize all forms of public transport.“
The official felt it was futile to expect the railways to bear the burden.
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