Target for Phase III: Rs 2,000 cr through property development

“Following internal estimates,a target of around Rs 2,000 crore has been set that needs to generated through property development alone in Phase III. A team of officials are working on strategies to maximize revenue from Metro property,” said an official DMRC spokesperson.

“While stations will be planned in such a manner that there is adequate space left for property development,other modes of revenue generation such as giving away more space for advertisements inside Metro trains and within stations are also being explored,” he added.

The Delhi Metro recently signed an agreement to open a chain of Hudson Cafes on the station premises and,according to officials,similar international brands have also expressed interest to open shop in Metros.

“The Delhi Metro has been making an operating profit from Day one and this has been possible by placing an emphasis on revenue generation through means other than just fare collection. The DMRC does not take any subsidy and is also paying back on schedule loans which it has taken,” said the spokesperson. “We are one out of five Metros in the world that make operational profits,the others being Hong Kong,Taipei,Singapore and Tokyo.”

Phase I had provided 7 per cent of the project cost upfront and a recurring income of 30 per cent of the fare box revenue,officials said. Phase II has so far provided over 2 per cent of the project cost through property development and more of the existing stations are now being gradually given out to malls and standalone retail outlets.

The DMRC through its own resources set up an IT Park at Shastri Park that has been approved by the government as a sector specific Special Economic Zone. The total plot area is 12 hectares. One block of 30,000 sq m was completed in 2005 and another one of similar proportions was completed recently.

The other stations that have retail outlets and extensive property development are Kashmere Gate,Inderlok,Rajiv Chowk,Azadpur.