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CM okays Metro fare with max slab of Rs 13

Officials say MMOPL’s demand for fare hike may be considered separately

Written by MANASI PHADKE | Mumbai |
September 5, 2013 1:16:17 am

Even as Mumbai Metro One Pvt Ltd (MMOPL),the Reliance Infrastructure-led consortium in charge of the city’s first Metro line,has asked for a 130 to 150 per cent hike in fare claiming cost escalation,Chief Minister Prithviraj Chavan has approved a fare structure based on the concession agreement. The fare structure will be notified by the department of urban development soon.

As per the draft fare structure,the tariff for the 11.4-km Versova-Andheri-Ghatkopar Metro will be Rs 9 up to 3 km,Rs 11 for a distance between 3 and 8 km,while the maximum fare will be Rs 13 for a distance beyond 8 km.

MMOPL has demanded that the fares for the first 3 km be Rs 22,Rs 28 for 3-8 km be Rs 28 and Rs 33 beyond 8 km.

UPS Madan,metropolitan commissioner at MMRDA,said,“The CM approved the fare structure about 10 days ago. This is the legal position now. It had to be done as per the concession agreement. Once the notification is issued,as on date,the fare will be according to what it says. The operator will have to print their tickets and operate their systems accordingly.” He added that the state government can separately look into the MMOPL’s claims of cost escalation.

MMOPL declined to comment. The consortium had in February 2012 first written to the MMRDA,of which the CM is the chairman,that there is a cost escalation of Rs 1,935 crore over and above the original project cost of Rs 2,356 crore.

Earlier this year,it approached the union ministry of urban development,the CM and the chief secretary with the issue of the cost rise and its subsequent proposal to hike the Metro fare. However,there has been no official intervention by the state government.

“Assuming that there is a cost escalation due to reasons beyond the control of the concessionaire,it will be dealt with separately in due course of time and whatever the decision is,it will supercede this notification. If the state government rejects their claim,then these fares will be what the legal position is,” a senior official said. “However,as of now,the notified fares will be by which the Versova-Andheri-Ghatkopar Metro will start operating.”

The MMRDA,which had sent the draft fare structure to the state government,has calculated the tariff at current prices based on a provision in the concession agreement. It provides for the tariff to be increased by 11 per cent every fourth year.

As per a notification issued in 2004,the fare as per 2003-04 levels was Rs 6 for three km,Rs 8 for 3 to 8 km and Rs 10 beyond 8 km.

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