GURUGRAM: The Haryana executive is in talks with Delhi Metro Rail Corporation to take over operations of India’s first privately constructed metro network — Gurugram’s Rapid Metro — whose ridership numbers are low and losses heavy.
Built on the premise that it might see a median day by day ridership of one lakh per day within the first phase of its operations, Rapid Metro is suffering with just 50,000 day by day passengers, a yr and a half after its opened Phase 2 (the corridor alongside Golf Course Road).
But Phase 2, which connected the workplace precincts of Cyber City to the populated residential sectors, best got a tepid response. Instead, Rapid Metro’s dad or mum company IL&FS bumped into financial crisis, compounding issues for the loss-making undertaking, whose two phases were constructed for over Rs 3,500 crore jointly (Phase 1 Rs 1,100 crore and Phase 2 Rs 2,423 crore).
Highly positioned resources within the Manohar Lal Khattar executive informed TOI talks are on between quite a lot of stakeholders for the handover of Rapid Metro to DMRC. The talks are being piloted by means of the major secretary of the city and nation making plans division, and a choice is predicted quickly.
The talks started after Rapid Metro demanded a reimbursement of Rs 1,484 crore from the Haryana executive this July for losses incurred by means of it due to what it called “breach of the concession contract”, which it signed with the state executive.
Rapid Metro resources had earlier informed TOI that within the agreement, it was once promised that different modes of delivery like shared automobiles would now not be accredited on the metro path as soon as it become operational. It was once also agreed, the resources mentioned, that ok car parking zone would be provided in any respect metro stations and different revenue-earning options, like commercials, would be made to be had. The Haryana executive had rejected these as “baseless claims”.
The Haryana executive initiated discussions after Rapid Metro knowledgeable it might now not be able to maintain its operations, a senior executive legit informed TOI on Friday. “The takeover of Rapid Metro by means of DMRC is under consideration,” mentioned the legit, who declined to be named.
“Right now, talks are on between Huda and IL&FS with regard to the tripartite agreement and different legal issues concerned. Rapid Metro authorities have knowledgeable us that they're going to now not be able to maintain its operations and we are hoping to unravel this factor at the earliest conceivable. There is a clause within the contract which allows us to take over (the Rapid Metro challenge) and ask any individual else to function it,” mentioned a senior legit, soliciting for anonymity.
A DMRC spokesperson mentioned, “We will take it up as per agreement (this is reached).” Sources indicated talks are progressing in the appropriate direction.
If it occurs, it received’t be the first time DMRC would be taking over privately-run Metro operations. In 2013, it took over the Airport Express Line after Reliance Infrastructure subsidiary DAMEPL pulled out.
Gurugram Metropolitan Development Authority (GMDA) officials mentioned the talks are being handled by means of officials based in Chandigarh. “This factor is being mentioned by means of DTCP officials,” its CEO Vivek Joshi mentioned.
Rapid Metro resources mentioned they were waiting to hear from the Haryana executive. “We had been following up with the state executive for the previous few months. Some of us went to Chandigarh final week. We have obviously informed them we can now not be able to proceed this way. When we signed the agreement with the Haryana executive, we were informed that apart from incomes revenue thru tickets, we would be allowed to earn revenue thru different modes reminiscent of commercial and that that different industrial modes of delivery like shared automobiles won't accredited on the metro path. But this has now not been the case and we can now not be able to maintain for long, given the situation of the dad or mum organisation,” mentioned a source.
There are a couple of reasons why Rapid Metro could now not draw in as many commuters as it claimed it might earlier than operations commenced in November 2013. The fare hike just 10 months into operations (from Rs 12-Rs 20) did not cross down smartly with commuters as shared automobiles to the similar destination value just Rs 10. In March 2017, the fare was once higher yet again when Phase 2 was once launched. A commuter the usage of both Phase I and II stations ended up paying a flat fare of Rs 35.
The loss of parking spaces at metro stations did not help. Golf Course Road, in the meantime, was once remodelled into an throughway, making the power down this path sooner than taking a metro. Reaching the metro station at Shankar Chowk, a huge catchment house, remains an issue as there is not any foot overbridge to go the nationwide freeway from the Udyog Vihar side. Rapid Metro was once willing to foot the invoice to build an overbridge however was once now not granted permission.
Built on the premise that it might see a median day by day ridership of one lakh per day within the first phase of its operations, Rapid Metro is suffering with just 50,000 day by day passengers, a yr and a half after its opened Phase 2 (the corridor alongside Golf Course Road).
But Phase 2, which connected the workplace precincts of Cyber City to the populated residential sectors, best got a tepid response. Instead, Rapid Metro’s dad or mum company IL&FS bumped into financial crisis, compounding issues for the loss-making undertaking, whose two phases were constructed for over Rs 3,500 crore jointly (Phase 1 Rs 1,100 crore and Phase 2 Rs 2,423 crore).
Highly positioned resources within the Manohar Lal Khattar executive informed TOI talks are on between quite a lot of stakeholders for the handover of Rapid Metro to DMRC. The talks are being piloted by means of the major secretary of the city and nation making plans division, and a choice is predicted quickly.
The talks started after Rapid Metro demanded a reimbursement of Rs 1,484 crore from the Haryana executive this July for losses incurred by means of it due to what it called “breach of the concession contract”, which it signed with the state executive.
Rapid Metro resources had earlier informed TOI that within the agreement, it was once promised that different modes of delivery like shared automobiles would now not be accredited on the metro path as soon as it become operational. It was once also agreed, the resources mentioned, that ok car parking zone would be provided in any respect metro stations and different revenue-earning options, like commercials, would be made to be had. The Haryana executive had rejected these as “baseless claims”.
The Haryana executive initiated discussions after Rapid Metro knowledgeable it might now not be able to maintain its operations, a senior executive legit informed TOI on Friday. “The takeover of Rapid Metro by means of DMRC is under consideration,” mentioned the legit, who declined to be named.
“Right now, talks are on between Huda and IL&FS with regard to the tripartite agreement and different legal issues concerned. Rapid Metro authorities have knowledgeable us that they're going to now not be able to maintain its operations and we are hoping to unravel this factor at the earliest conceivable. There is a clause within the contract which allows us to take over (the Rapid Metro challenge) and ask any individual else to function it,” mentioned a senior legit, soliciting for anonymity.
A DMRC spokesperson mentioned, “We will take it up as per agreement (this is reached).” Sources indicated talks are progressing in the appropriate direction.
If it occurs, it received’t be the first time DMRC would be taking over privately-run Metro operations. In 2013, it took over the Airport Express Line after Reliance Infrastructure subsidiary DAMEPL pulled out.
Gurugram Metropolitan Development Authority (GMDA) officials mentioned the talks are being handled by means of officials based in Chandigarh. “This factor is being mentioned by means of DTCP officials,” its CEO Vivek Joshi mentioned.
Rapid Metro resources mentioned they were waiting to hear from the Haryana executive. “We had been following up with the state executive for the previous few months. Some of us went to Chandigarh final week. We have obviously informed them we can now not be able to proceed this way. When we signed the agreement with the Haryana executive, we were informed that apart from incomes revenue thru tickets, we would be allowed to earn revenue thru different modes reminiscent of commercial and that that different industrial modes of delivery like shared automobiles won't accredited on the metro path. But this has now not been the case and we can now not be able to maintain for long, given the situation of the dad or mum organisation,” mentioned a source.
There are a couple of reasons why Rapid Metro could now not draw in as many commuters as it claimed it might earlier than operations commenced in November 2013. The fare hike just 10 months into operations (from Rs 12-Rs 20) did not cross down smartly with commuters as shared automobiles to the similar destination value just Rs 10. In March 2017, the fare was once higher yet again when Phase 2 was once launched. A commuter the usage of both Phase I and II stations ended up paying a flat fare of Rs 35.
The loss of parking spaces at metro stations did not help. Golf Course Road, in the meantime, was once remodelled into an throughway, making the power down this path sooner than taking a metro. Reaching the metro station at Shankar Chowk, a huge catchment house, remains an issue as there is not any foot overbridge to go the nationwide freeway from the Udyog Vihar side. Rapid Metro was once willing to foot the invoice to build an overbridge however was once now not granted permission.
Haryana in talks with DMRC to run loss-making Rapid Metro
![Haryana in talks with DMRC to run loss-making Rapid Metro]()
Reviewed by Kailash
on
December 01, 2018
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