Hamstrung by ‘no passenger fare hike' policy for eight years, Kolkata Metro Railway is exploring possibilities to generate more revenues through property rentals and advertisement.
Run by the Indian Railways, the country's first metro railway has spent nearly Rs 215 crore so far this year to earn a total of Rs 87 crore.
To survive the adverse operation ratio of 248 per cent, the Metro railway has already rented out one station building as well as one floor of its centrally located 12-storey headquarters, Metro Bhavan, at a total consideration (sundry earnings) of Rs 16 crore a year. As fare hike now appears to be a distant dream; Metro, therefore, fell back on alternative means to reduce the expenditure gap in the next fiscal.
Plans are afoot to rent out more space at Metro Bhavan and other properties in the city.
Tenders may also be invited shortly to sell more ad-spaces at Metro stations.
To rent out properties
“We are planning to rent out our properties, including a part of Metro Bhavan, in order to generate revenues,” a Kolkata Metro official told Business Line.
Currently, Metro properties have been rented out to two Union Government undertakings, Container Corporation of India Ltd (at the Metro railway headquarters) and infrastructure company, RITES (at the Central station in Central Kolkata area).
Market sources indicate that at current property rates in the city, rentals at Park Street (a prime commercial area), where Metro Bhavan is located, would vary between Rs 90 and 110 for a sq. ft. depending on the amenities.
Near the Central station area, rentals would be a bit lower at around Rs 50/sq ft.
Apart from these, Kolkata Metro, has given rented out space at three stations - Esplanade, Mahanayak Uttam Kumar and Kavi Nazrul - to a number of shops.
“Monetising its assets is a realistic move for the Kolkata Metro which has been struggling with its finances and commercial utilisation of its land is the best option,” market sources said.