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The country’s first fully private-funded metro line, IL&FS-backed Rapid Metro, has started clocking revenues even before it has started carrying passengers.
The project is privately funded and is connected to the Delhi Metro rail network in Gurgaon through an inter-change station at Sikandarpur.
Expected to start operations by September-end, it has already sold 75 per cent of its non-fare box revenue, such as train and station branding rights, retail space on stations for ATMs, vending machines, coffee chains and newspaper stands.
In transportation projects, revenue earned from activities other than ticket fares are called non-fare box revenue.
Rapid Metro expects to get 30 per cent of its total revenue from non-fare sources in the initial years.
“Subsequently, with increase in passengers, we should get 80 per cent of revenue from fares and remaining from non-fare activities,” Sanjiv Rai, Chief Executive Officer, Rapid Rail Metro, told Business Line .
“We have already received advances from some firms. I cannot share details till the commercial operations start….All I can say is it runs into crores of rupees,” he said.
Giving examples, Rai said the rights to brand three station names have been sold to Vodafone, Micromax and IndusInd Bank. So, the station names will be pre-fixed by these brands.
The station branding rights have been sold for five years, with an option for extension at the end of five years, based on the prevailing market price at that time.
Rapid Metro has the rights to develop 250 square metres of retail space in each station. “We are in talks with Café Coffee Day and McDonald’s,” said Rai.
Link with Delhi Metro
The project, which involved laying a 5.1-km metro line, connecting office complexes in Gurgaon through six stations, has incurred a cost of Rs 1,088 crore. Rapid Metro has received rights from the Haryana Government to construct and operate the metro for 99 years, which is the longest given to any infrastructure project in the county. “Of the 99 years, three years went in construction. We have rights for another 96 years,” Rai added.
The commercial operations of the metro, for which Siemens has provided the coaches, should start by September-end or early October, said Rai. To make it function seamlessly with Delhi Metro, Rapid Metro has entered into a tie-up that allows Delhi Metro’s pre-paid smart cards to be used in its network as well. A clearing house managed by Delhi Metro will credit the fare money to Rapid Metro within two days of the money being debited.
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