Metro Rail seeks consultant to tap non-farebox revenue

After incurring heavy losses year after year, the Chennai Metro Rail Limited would soon appoint a consultant to assist in enhancing the revenue from commercial development and tap the unutilised potential of the Metro’s assets to generate non-farebox revenue.
Metro Rail seeks consultant to tap non-farebox revenue


CMRL has floated a tender to appoint a consultant to provide advisory services, including feasibility and market study, formulation of non-farebox revenue business plans for its land parcels and built-up spaces within the stations in the Phase – I, its extension and the upcoming phase-II.
The broad scope of work to be carried out by the consultant includes formulation of non-farebox revenue plans taking into account business plan of CMRL while enhancing existing and on-going plans and to propose new opportunities.
Metro officials said that the consultant would suggest the optimum disposal strategy for licensing retail spaces inside the stations and also on enhancing revenue from advertisements at stations, trains and on new mediums. The consultant would also identify additional sources of revenue.
According to the CMRL annual report, the Metro’s total income for 2019-20 stood at Rs 287.18 crore, including farebox revenue of Rs 135.12 crore and non-farebox revenue of Rs 38.76 crore. The total expenses were Rs 812.38 crore, including operating expenses of Rs 149.57 crore with the loss increasing to Rs 525.19 crore as against Rs 422.06 crore in the previous fiscal year.
As the patronage continues to remain underwhelming against the projected ridership numbers impacting the farebox revenue, the CMRL has been taking various steps to increase its non-farebox revenue, including renting commercial spaces within the station. Besides, it is also constructing a 12-storey mini-mall at Ekkattuthangal which is likely to have retail space on lower floors and office space in the upper levels.

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