Will no fare hike put Delhi Metro on the path of Indian Railways?

The Delhi Metro Rail Corporation ( DMRC) has hiked fares from today, second time this year after in May. The 4th Fare Fixation Committee (FFC) had recommended in May to hike fares in two phases. The revised fare structure will be: up to 2 km Rs 10; for 2 to 5 km Rs 20; for 5 to 12 km Rs 30; for 12 to 21 km Rs 40; for 21 to 32 km Rs 50 and for journeys beyond 32 km will cost Rs 60.

Many think Metro can do without fare hikes. Are the revised fares too much for the service Metro provides? Metro is the best public transport we have. A similar private service could be more than 10 times costlier. Metro not only gives us the comfort of traveling in luxury, but also cuts short travel time drastically. Not hiking the fares can turn Metro into another Indian Railways or DTC—the public-sector enterprises that have become worst examples of inefficiency.

Does Delhi Metro offer the best for the new price?
To get the luxury of an AC cab on a long route in Delhi, one has to shell out nearly Rs 750. On Metro, one would spend only Rs 60. In 15 years of its operation, DMRC has hiked fares five times. When Metro started its operation in the NCR in December 2002, the minimum fare was Rs 4 and maximum Rs 8. The first hike in the fares was witnessed in 2004 when the 1st FFC was constituted in December 2003 and revised fares were adopted from March 31, 2004 (after a gap of one year and three months) with minimum fare of Rs 6 and maximum Rs 15.

The fares recommended by the 2nd FFC were made effective from December 31, 2005 (after a gap of one year and nine months) with minimum fare of Rs 6 and maximum Rs 22.

The 3rd FFC changed the rates after a gap of four years in 2009, with minimum fare of Rs 8 and maximum Rs 30. Later, while recommending the hike for the 4th time since its inception, DMRC said, "The necessity of revision in fares was on account of increase in the cost of inputs viz. the staff costs, the cost of energy and the cost of repair & maintenance."

"Since constitution of the 3rd FFC, there has been increase in industrial dearness allowance (DA) by 95.5% (from 16.90% to 112.40%), rate of Central DA by 103% (from 22% to 125%) and average increase in the rate of minimum wages by 156.2%. The last fare revision took place in 2009 and the 4th FFC was set up after almost seven years." a DMRC official said.

Considering the inflation, cost of electricity which has been growing constantly, and the maintenance of trains and station, does it seem that DMRC's demand is undue?

Losses of Delhi Metro
As per its annual report of 2015-16, DMRC’s operating expenses–which account for almost half of total expenditure–went up 38 per cent to Rs 2,199 crore in 2015-16 from Rs 1,584 crore in the previous fiscal. The company reported a loss of Rs 708 crore in 2015-16. It had reported a loss of Rs 104 crore in 2014-15. Metro carried 2.59 million passengers everyday on an average. DMRC’s traction expenses grew 13 per cent to Rs 329 crore in 2015-16 from Rs 291 crore in the previous fiscal, according to the annual report. Also, spending under the head 'electricity and water expenses' grew 20 per cent to Rs 206 crore.

Imagine a fund-crunched Metro!
With a network length of 213 trains, Metro serves 2.76 million people on an average daily. To maintain the fleet, the company which is already running in losses, needs money. A fund-crunched Metro can soon turn into Indian Railways.

To understand how the Metro money works, just pay a visit to New Delhi Metro Station and New Delhi Railway Station.

The amount you pay to travel in the Metro is not just for the luxury and speed but also the safety. The clean floor, direction indicators, managed crowd, attendants and guards, clean toilets, medical attendants, etc. are a few features you enjoy while traveling in Metro. New Delhi Railway Station—the best of Indian Railways—offers dirtiness, delays, unmanageable crowds, people sleeping on the platform and of course, a high chance of meeting with an accident. The comparison can illustrate why Metro needs to hike its fares.