IndiaCatalog.com
India News
Search Web Directory
News Home
Metro railway companies look at financial viability to reduce govt funding
Posted on 13th March 2018
With the financial viability of mass rapid transport system coming into question and leading to the postponement of several metro railway projects in the country, companies such as Delhi Metro Rail Corporation Ltd (DMRCL) and Bangalore Metro Rail Corporation Ltd (BMRCL) are coming up with innovative approaches to either open alternative revenue streams or reduce their costs. In turn, it will lead to reducing their dependency on government funds.

Also watch Photo Gallery of Hyderabad Metro Rail.

DMRCL has signed an agreement with Madhya Pradesh to procure 150 Mw of solar power which will fuel its auxiliary power requirements at some stations. While its current procurement of thermal power costs Rs 6 a unit, solar power will cost around Rs 4 per unit. It is estimated that as a result, DMRCL can reduce costs to the tune of Rs 4 billion a year.

“This solar power from Madhya Pradesh is expected to come in from October-November this year,” DMRCL’s managing director Mangu Singh said. An official from DMRCL said that this year, the company plans to churn 25 per cent of its annual revenue from the non-fare vertical. He was speaking at an event on Mass Rapid Transport Systems for Urban Areas: Opportunities and Challenges organised by the Ministry of Finance, AIIB, Research and Information System for Developing Countries and Assocham.

It is offering consultancy services for other metro railway projects in India and Singh wants to keep the consultancy focus on India only in the near term. “We also think that our income from advertising space will be in the range of Rs 1.3-1.6 billion for this year,” another official from DMRCL said.

After a series of talks with metro railway coach makers including Alstom, Bombardier and others, it has also floated an expression of interest under which, instead of an outright purchase of coaches, it will take them on a 35-year lease. Typically, one car of DMRCL costs around Rs 120 million and a lease agreement for the procurement of around 150 coaches is expected to bring down its capex requirement by Rs 20 billion.

For the next phase of expansion, DMRCL is expected to take on lease 15 per cent of the total coach requirements. “A similar leasing agreement can also be done for the escalators and lifts”, the official said.

BMRCL, on the other hand, has come up with an innovate model to fund its Rs 42-billion corridor in the plush Outer Ring Road area in the city. This 17-km long project, which will have 14 stations, is not part of any phases and hasn’t received any funding commitments from either the state or the central government.

Deepa Kotnis, executive director at BMRCL said that this company has signed an initial agreement with computer hardware major, Intel worth Rs. 1 billion. Under the terms of the agreement, BMRCL will be giving naming rights to Intel for a station. Intel will also be getting 1000 square foot of space for advertising and an additional 3000 square foot of space for commercial reasons. A direct access from the metro station to their campus will also be made. A similar agreement is also under process with the Embassy Group.

BMRCL is also in talks with Infosys, Biocon, Prestige Group and others to work out similar agreements to fund this Rs 42 billion corridor.

“We are speaking to realtors, hoteliers and IT companies with similar proposals. Currently, the offer comes as a bundled one but can be unbundled for individual Companies at a later stage if the need be so”, she said.

In the coming few months, BMRCL plans to raise around Rs 5 billion from such initiatives which can scale up to Rs 11 billion.

“A large part of the required capital can be funded by such agreements. We are looking at monetising space which can reduce our borrowing cost”, she added.

Typically, 60 per cent of the project cost in metro railways is borne on account of systems, electrical and other procurement and installation while 40 per cent of the cost comprises of construction cost.


Other Latest News
Infosys deploys digital banking solution at Australian Military Bank
Posted on 25th September 2018
New Delhi: IT major Infosys on Tuesday said it has deployed its Finacle banking solutions suite for Australian Military Bank (AMB).

The comprehensive digital banking solution stack has been implemented in a fully software-as-a-service (SaaS) model, hosted out of Infosys datacentres in the country, Infosys said in a statement.


Another LIC bailout in offing? IL&FS will not be allowed to collapse, all options open, says LIC chief
Posted on 25th September 2018
State-owned insurer LIC Tuesday said it will not allow debt-ridden IL&FS to collapse and explore options to revive it.T he Life Insurance Corporation (LIC) has the largest shareholding in IL&FS. IL&FS Financial Services, a group company of IL&FS defaulted on one of its commercial paper (CP) issuances due for repayment on Monday. This was the third default by the company.

A tale of two seats on Air India 184 - one of the longest long-hauls there is
Posted on 25th September 2018
'Are you sure you want me to book you on a return ticket on Air India?’ Anurag, my ever-so-helpful and slightly-alarmed travel agent asked. I said yes. ‘It’s not all as bad as you make it out to be.’ I’d been on Air India flights before, that too economy, how bad could business class be? It is our national carrier, they fly 777s and 787s - business class promises fully flat seats where you could expect to be relatively comfortable and even get in a night’s sleep.

TCS will conduct online test to hire engineer graduates
Posted on 25th September 2018
Attention all engineer graduates! If you want to work with TCS, then from now nwards you are required to clear an online test. According to a Times of India report, the tech firm is all set to digitize the hiring process. TCS is mulling over dropping the process of visiting campuses and hiring from colleges directly to be more efficient.

Indian Oil sees India's oil demand surging to 500 mn tonnes per yr by 2040
Posted on 25th September 2018
India's crude oil demand is forecast to grow to 500 million tonnes per year by 2040, but persistent increases in oil prices might act as a dampener for the rate of growth, Partha Ghosh, an executive director at Indian Oil Corp said on Tuesday.

That would be equivalent to around 10 million barrels per day (bpd), up from about 4.7 million bpd in 2017.


» Post a FREE Classified Advertisement
Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Cootera.com Classifieds Website.
Jobs in India India Real Estate Automobiles Matrimonials Beauty & Fitness

Add a comment for Metro railway companies look at financial viability to reduce govt funding
Please only use this form to enter comments on the above company. All comments are reviewed before they are displayed on the web site. Not all comments may be displayed. Check back with us to see if your comments have been displayed.
If you want us to email the comments posted by users, please Subscribe by email
Name*
Comments*
Security Code*
 

Be the first person to write a business review for Metro railway companies look at financial viability to reduce govt funding

Most Read News

Sebi approves KYC norms for FPIs, new settlement mechanism

Maruti Suzuki stock slides 2.3% to hit 10-month low

Infosys loses arbitration case against Rajiv Bansal over severance package

Imran Khan writes to PM Modi, seeks Swaraj-Qureshi meet in New York

SBI in international bond market to raise nearly $500 mn in green bonds

More India News

  India Web Directory
Business Profiles
Automotive Directory
IT/ITES/BPO Directory
Hotel Directory
Health Directory
Business Directory
Gems & Jewellery
Education Directory
Real Estate Directory
Agriculture Directory
Logistics Directory
Yellow Pages
NRI Guide
Photo Galleries
Global Web Directory
*** FREE India Classifieds
Order Premium Listings
Submit a Site
Business Reviews
Home
About us
Link to us
Advertise
Contact us
Google Search Keywords: India Catalog, IndiaCatalog, India Web Directory
    © 1999 - 2018 IndiaCatalog.com
    All Rights Reserved
Privacy Statement