The Hindu Business Line : Delhi Metro Rail needs to ride on rental revenues

If Delhi Metro Rail Corporation (DMRC) is able to rent out most of the real-estate space along its track lines for commercial utilisation, then it is expected to rake in revenues of Rs 2,100 crore three years down the line, which is almost 190 per cent higher than the current levels, states an Assocham study.

Till date, the DMRC in its limited operational circles has not been able to rent out more than 40 per cent of its space suitably for commercial gains.

Incidentally, this is the model of Hong Kong metro rail, which is one of the few profitable metro rail systems. DMRC’s revenue generation through rentals would go beyond Rs 850 crore from corporate outlets, ATMs.

And through sale of tickets, the DMRC is expected to earn nearly Rs 700 crore and about Rs 600 crore from space allocations to corporate advertisers, it says in a study titled ‘Future’s Revenue Growth of DMRC by 2011’.

Employment avenues

In percentage terms, DMRC would earn 39 per cent of its revenues by leasing out space to companies for commercial use, while 33 per cent revenue would accrue through ticket sales and 28 per cent share of the earning would come from advertising space sale.

The DMRC revenue for 2007 calendar year was Rs 730 crore.

By 2011, the metro stations on both sides of the railway tracks would be filled with ATM machines for banking transactions and food stalls serving tea, coffee, snacks and other beverages, it said.

By 2011, the study estimates that the Delhi Metro would also be able to generate 25,000 jobs for skilled and semi-skilled workforce and become a leading body for providing employment particularly to civil, mechanical, electronics and electrical engineers, besides technicians, station and train controllers, security personnel and other supporting staff. According to Assocham estimates, nearly 42 crore man-hour is lost every month by about 70 lakh working population of Delhi and National Capital Region (NCR) due to commutation time — from home to office and office to home as a result of traffic congestion and increasing jams during peak morning and evenings hours.

Commuting woes

Ninety per cent Delhi and national capital region (NCR) working population, who presently commute using the public transport, are expected to switch over to the metro.

Moreover, out of the remaining commuters who use personal transport modes, about 65-85 per cent commuters are likely to switch over to the metro rail.

The maximum time metro is likely to take to connect from peripheries of national capital region (NCR) to South Delhi will be between 45 minutes and one hour, compared to the current level of two-three hours one way in the public transport system.

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