Fare hike to cost commuters ₹100 a month, affordability intact: DMRC

Delhi Metro said its fare hike will raise costs for average commuters by Rs 100 a month, citing Covid losses and JICA loan repayments while assuring affordability and service quality

A day after hiking passenger fares, Delhi Metro Rail Corporation (DMRC) said that the average daily commuter will face an additional cost of just Rs 100 per month due to the hike.

 

“DMRC is serving around 6.5–7 million passengers on weekdays on the Delhi Metro. On average, a person will have to spend Rs 4 extra daily for to-and-fro journeys, which means just Rs 100 in a month with 25 working days,” a spokesperson for the corporation said.

 

DMRC said it had to raise fares as it copes with losses incurred during the Covid period and loan repayment commitments to the Japan International Cooperation Agency (JICA), which have posed a significant challenge to its resources.

 

On concerns that the hike may lead to loss of ridership and commuters shifting to road transport, the corporation said it had followed the recommendations of the fare fixation committee.

 

“As per statutory provisions, the fare hike was approved by the DMRC Board of Directors, ensuring that the revision is in line with the committee’s guidelines. Whenever such revision takes place, it is ensured that affordability of fares for commuters and sustainability or viability of the system is taken into account,” the spokesperson said.

 

The committee’s recommendations were thoroughly reviewed and applied to determine the fare increase, DMRC added. “The fare hike will actually help us maintain and improve our services, encouraging more people to use public transport and reducing reliance on polluting vehicles,” it said. 

 

Experts believe the hike will not have a major impact on ridership.

 

“Compared to other metros in India, many with significantly smaller networks, Delhi Metro fares remain competitive, with other systems charging up to 35 per cent more for similar passenger travel experiences over medium distances. Historically, even a steep fare hike of 91 per cent in 2017–18 led to only an 8 per cent reduction in ridership while boosting revenue by 39 per cent, indicating that fare increases do not necessarily result in significant ridership loss,” said Amit Gupta, Partner at accounting and consultancy firm EY.

 

He added that the current fare revision, averaging around 7 per cent, is far more moderate and unlikely to cause any ridership decline.

 

“Delhi Metro’s affordability combined with its time and cost advantages, especially for the 80 per cent of commuters travelling more than 10 km, helps retain passengers despite fare adjustments. Other factors such as smart card discounts, off-peak rebates, and continued service improvements also mitigate potential constraints,” Gupta added.