Bengaluru: Namma Metro Lost 82pc Revenue Due to COVID Shutdown

The BMRCL is looking to the Karnataka government for loans as the pandemic has paralysed its operations. To manage staff salaries, maintenance, and loan servicing, the metro company will need at least Rs 300 crores. The Covid-19 outbreak, which crippled Namma Metro's services last year, forced officials to operate trains for limited hours and at a lower ferrying capacity due to the restrictions. This resulted in a staggering 82 percent drop in total revenue, including non-fare revenue.

The Bangalore Metro Rail Corporation (BMRCL) saw a marginal revenue increase of Rs 418.78 crore in 2019, with the expectation that this trend will continue. The pandemic reduced the figures to Rs 78.92 crore in 2020, with officials not optimistic that the figures will improve in the current fiscal year.

Even when the metro services were partially operational in April, revenue was a pitiful Rs 9.42 crore, less than a third of the pre-pandemic average peak monthly revenue of Rs 35 crore.

According to the company, the first-quarter revenue is expected to be around Rs 33.69 crore, with an operating loss of Rs 50.51 crore. Recognising that restrictions on metro operations will remain in place for some time, BMRCL anticipates low ridership even if the government allows trains to run. The current situation will only exacerbate the revenue decline.

"Recovery of the operating costs in itself may be difficult. As such, the company has approached the state government, being the co-promoter of the company, for extending financial assistance and has also planned to meet its overheads and other financial obligations through short-term borrowings from banks," the disclosure said.

According to a senior official, the corporation spends Rs 31 to Rs 32 crore per month on Namma Metro operations and maintenance. He said, "By shutting operations, we may be saving Rs 8 crore on electricity charges. However, we still need about Rs 21 crore for staff salary and maintenance. In addition to this, about Rs 12 crore is required to service the loans for Phase 1."

The state government is required by the tripartite agreement to assist BMRCL in bridging revenue gaps, particularly in terms of loan repayment.

According to a source, "The government is now embroiled in a financial crisis. Furthermore, the government must support Phase 2 projects. Borrowing becomes necessary in such situations ."