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Metro rail companies look for alternative earning avenues, monetising assets

IANS  |  Kolkata 

In order to make metro projects across the cities financially viable, metro rail companies are looking to reduce their costs or exploring alternative revenue stream and at the same time, some are monetising their assets to raise funds, officials said on Tuesday.

(DMRC) said the cost has been brought down to bare minimum and its project cost was lower than that of Kualalumpur's and

DMRC has signed an agreement with to procure 150 MW of solar power which will fuel its auxiliary power requirements and also reduce power cost, he said.

The corporation is also advising for other metro railway projects in and Singh wanted to keep the consultancy focus on at least in the near term.

"We are not going outside (for consultancy) since we have lots to do in as metros are coming in many cities in But in terms of cost, Delhi Metro cost can be benchmarked," Singh said at an event on organised by the Indian Finance Ministry, the Asian Infrastructure and Investment Bank, and the Research and Information System in collaboration with

For another example, Bangalore Metro Rail Corporation (BMRCL) has opted method of monetising its assets for raising funds for the 17 km long outer ring metro project worth Rs 4,200 crore.

BMRCL's said it signed an MoU with computer hardware Intel under which "naming rights" of stations would be provided along with 3,000 square feet commercial space, 1,000 square feet advertising space and the corporation is expected to get Rs 100 crore from this arrangement.

"We are in talks to realtors, hoteliers and IT companies with similar proposals. Talks with different companies are in the different stage. We are trying to monetise our space to the extent possible," she said.

Air India's Pradeep Singh Kharola, who had served as of Bangalore Metro Rail Corporation Ltd, advocated that design of urban mobility should consider all the transporting modes including metro rail, bus, auto, taxi and others.

He also urged for integration of different modes in cities.

Elaborating on how urban mobility provides economic strength of the cities and brings cities' economic efficiency, he said these projects are capital intensive and costs of these projects are mostly met through long term debts, mostly from the government.

According to him, are seven efficient than buses and it is "viable".

"The biggest problem of metro projects is huge capital cost. How can we finance the project so that capital costs are brought down and spread over longer period of time? Can we leverage the increase in value of properties through which metro passes? This requires changes in legal paradigm," Kharola said.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, March 14 2018. 00:00 IST