Metro fare hike will enhance financial misery, economist says

NT Correspondent

Bengaluru: Both economists and worried commuters have dismissed the justification offered by the Bangalore Metro Rail Corporation Limited (BMRCL) of financial obligations over the recent fare hike. On February 9, on the recommendations of a fare fixation committee, the BMRCL hiked its ticket prices by over 100 per cent, which had led to backlash. After public outrage, the BMRCL reduced the quantum of the hike to 71 per cent. Still, there has been a drop in ridership by as much as 90,000 passengers.

Professor Krishnaraj from the Institute for Social and Economic Change, said, “It (fare hike) is not justifiable. This impacts the lower middle class section who take the Metro to work or business purposes. The fare hike will push them to private modes of transport, which leads to more traffic, more wastage of fuel, more delays and reduced productivity at work. Krishnaraj suggested that the BMRCL look into alternative sources of revenue like advertising, rather than burdening the general public. “Installing Platform Screen Doors with advertisements will help boost revenues and act as a safety barrier in stations due to jostling in peak hours. Economically, Krishnaraj opined that the fare hike is “regressive,” keeping in mind the economies of scale.

“With Namma Metro, more passenger count leads to more revenue, and even with a low fare, it will end up with profits. The Bangalore Metro Commuters Association (BMCA) had claimed that the BMRCL had functioned well, reaping record breaking revenues. After recording a surplus of over Rs 100 crore, it is claimed that the BMRCL is expecting operational profit to touch the ?200 crore figure in 2025-26.

Namma Metro has helped Bengalureans alleviate traffic woes, and help in sustainable travel without having to pay much. However, Krishnaraj now feels that purpose is defeated with the fare hike. “This will just enhance their misery with regard to financial losses. The dip in ridership is a testament to it,” he went on to add.