Navi Mumbai: CIDCO floats tender to appoint consultant to explore options for generating revenue from Metro

As per the plan, CIDCO is eager to investigate new ways to increase non-fare box revenue, particularly through advertisement, real estate above railway stations and commercial outlets.

Amit SrivastavaUpdated: Friday, April 08, 2022, 08:17 PM IST
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In order to make the Navi Mumbai Metro financially viable and self-sustainable, the City and Industrial Development Corporation (CIDCO) will explore options for Non-Fare Box Revenue (NFBR) through advertisements, retail, food and beverages, real estate development among others for the Metro line 1. The planning agency has floated a tender to appoint a consultant to explore opportunities for generating revenue other than just fares.

The appointed consultant will find ways to generate alternate revenue sources from inside and out of the Metro stations.

The safety commissioner of the railway has already conducted the safety trials and CIDCO expects to start commercial operation of line 1 of Metro 1 in 2022.

The planning agency desires to identify several implementable NFBR options within the station areas and out of the station areas that can fetch additional revenue other than fare box collection. By creating alternate revenue sources, CIDCO aims to create a transportation network that is financially viable and self-sustainable.

As per the plan, CIDCO is eager to investigate new ways to increase non-fare box revenue, particularly through advertisement, real estate above railway stations and commercial outlets.

“Considering the fact that public transport projects like Metro are capital and maintenance intensive, they will not be financially sustainable by only depending on farebox revenues,” said an official attached to the project. He added that the world-class commuter services require significant financial resources and this has necessitated CIDCO to look for additional revenue opportunities outside the farebox.

“The appointed consultant’s job is to maximise revenue by exploiting land adjoining metro tracks and the air-space above stations for real estate development in appropriate formats, which could unlock value for the metro project,” said an official attached to the project.

CIDCO is developing four Metro lines that will connect Belapur - Pendhar – Taloja – MIDC – Kalamboli - Khandeshwar - Navi Mumbai International Airport (NMIA). The construction of phase 1 of 11.1 km from Belapur to Pendhar is nearing completion.

The Project cost for all four lines is estimated to be Rs 11,300 Crores, of which around Rs 8,200 crores has been budgeted for the remaining three lines.

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