Railways to hike fares of Kolkata Metro after a decade

Revision could take place much before the next railway budget

Railways is finally set to make an upward revision of the decade-old fare structure of Kolkata Metro, which accounts for the worst operating ratio among all the 17 railway zones.

“Kolkata Metro is facing a huge revenue deficit. The matter of fare hike is under our active consideration,” Adhir Ranjan Chowdhury, minister of state for railways, said.

Chowdhury suggested a decision in this effect could be taken much before the next railway budget. “The Metro fare hike has become an urgent necessity now and I do not think even commuters would mind,” he added.

The fare-structure of Kolkata Metro, one of the 17 zone of the Indian Railways, has not been revised since 2002. With a minimum fare of Rs 4, Kolkata Metro currently spends over Rs 300 to earn Rs 100.

In 2010-11, Kolkata Metro had an operating ratio (ratio of total working expenses to earnings) of 248. The revenue gap has only widened following extension of the metro connectivity from Tollygunge to Garia in southern part of the city.

Metro is, in fact, the cheapest mode transportation in Kolkata as even the state-run buses in the city has minimum fare of Rs 5. In Kolkata Metro fare varies from Rs 4 to Rs 14

Despite this, the fare of Kolkata Metro - country's first underground train system and also the only one run by ministry of railways -- was left untouched on January, 2013 when Pawan Kumar Bansal had announced an increase in railway fares for passengers across categories citing poor finances of the railways.

However, soon after Kolkata Metro management on its own formerly sought revision of fares. A committee was formed at the ministry level to review the fares of Kolkata metro. The committee is understood to have submitted its report to the ministry recommending that Metro rail fares should be increased.

Kolkata Metro, which started operation in 1984, currently connects the north and southern part of the city with about 25 km-long rail route. Also, it has a major expansion plan and as per approved plan Kolkata Metro wil have a network of 111km over the next few years. This, also includes, the Rs 4,874-crore East-West Metro project connecting Salt Lake to Howrah, which the railways have taken over from state government.

Officials suggest, a fare revision is necessary as with the current fare the new projects would not be viable. "KMRC had proposed a fare which is almost double to current metro fare. If fares are not increased, it will be difficult implement the proposed fare for East-West metro as you can not have two fare-structure in the same city," an official said.