Published: Tue, October 10, 2017
Worldwide | By Sean Reid

Minister warns DMRC chief of action — Metro fare hike

Minister warns DMRC chief of action — Metro fare hike

The Delhi chief minister had written to the Housing and Urban Affairs Ministry to stall the fare hike recommended by the 4th Fare Fixation Committee.

Last week, Delhi Chief Minister Arvind Kejriwal had asked Gahlot to find within a week a way to stop the "anti-people" fare hike.

According to the Newspaper, .

The letter said that if Delhi government is keen to prove its abilities, it can take over Delhi metro phase IV for doing so under the new metro policy recently announced by centre; but need to keep DTC in mind; delay in phase IV deprived about 40 lakh people of the benefit of metro services.

"Neither the Central Government nor the State Government or even the Board of the Company has legal power to change the recommendations made by the FFC".

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The DMRC defended its decision on hike saying its input costs have gone up over the years, and the increase is at par with Metro rails in other cities. The DMRC was set-up in 1995 with equal equity from the Central government and Delhi government. We are confident that we will be able to fund DMRC by improving the efficiency rather than effecting steep fare hikes and provide an affordable means of transport to the people of Delhi.

"The chief minister directed the chief secretary to apprise the DMRC Board about the notice for convening an emergency DMRC Board meeting, on the demand of the Delhi government", the statement said.

Puri, however, said the Centre could consider setting up a new FFC to take a re-look at the proposed hike if the Delhi government agreed to shell out an annual sum of Rs 3,000 crore for the next five years - so the DMRC can pay off its loans and bridge over operational losses.

Puri further added that if the fares were not increased as per the recommendations of the Fare Fixation Committee, the total grants-in-aid that the DMRC would require in the next 5 years starting from 2017-18 till 2021-22 would be Rs 3,040 crore, Rs 3,616 crore, Rs 3,318 crore, Rs 3,150 crore and Rs 2,980 crore respectively. For all other distance zones, fares will be increased by Rs 10, with the maximum fare for journeys longer than 32kms going up from Rs 50 to Rs 60.

The DMRC is to implement its second fare revision on Tuesday. If the fare is revised again, it is expected to go up by a maximum of Rs. 10 w.e.f. October 10.

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