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Haryana govt likely to incur heavy cost in taking over Rapid rail

first_imgGurugram: The Haryana government officials have officially begun the process of taking over the Rapid rail metro that is also credited for being India’s first private metro system. In doing so however the government is likely to incur a heavy cost of sustaining the private metro system. Initially, run by ILF&S nation’s first private metro is under a heavy debt of Rs 1,800 crore where 10 per cent interest is being paid on a yearly basis. For operation and salaries over Rs 20 crore is being paid on a yearly basis. The Haryana government is now planning to give only operations part to the Delhi metro rail corporation for which there is a pact of paying the public agency over three crores yearly. According to sources the government is likely to take a decision on the issue after May 12. The move to acquire the metro project comes when the private metro system is reeling under heavy losses. Also Read – Bangla Sahib Gurudwara bans use of all types of plastic itemsBuilt on the model of public-private partnership, Gurugram’s rapid metro was set to change the landscape of public transportation model in Gurugram when it first started its operation in 2013. Five years, after all, did not go to the plan and the management served Haryana Government the notice of compensating it for Rs 1484 Crore of losses. Initially, the DLF-IL&FS consortium ran the Rapid Metro Rail Gurugram Limited (RMGL). According to sources ever since the DLF withdrew its stakes from the project and the ITNL’s parent company — Infrastructure Leasing and Financial Services (IL&FS) — ran into financial trouble, the ITNL found it difficult to operate the Gurugram private metro. Also Read – After eight years, businessman arrested for kidnap & murderHigher costs for travelling, less focus on last mile connectivity and lesser frequency of the movement of trains are resulting in many residents still relying on other modes of transportation. According to reports, there are over 50,000 commuters who use the services of the private metro daily. This, however, is not enough for the metro to recover its costs. The management of the private metro has also been odds with the public agencies over the display of advertisements that is a major source of revenue. The major concern for the management remains over the dwindling number of commuters using the Rapid Metro services Considered to be a bane for many residents who drive on routes of Golf Course, Sikanderpur, MG road and Cybercity, the diesel run autos and private city buses continue to retain its popularity. While these transportation mediums still charge a reasonable sum from their customers, the ticket prices in the rapid metro range from a minimum sum of Rs 20 to a maximum of Rs 35. Not only are the common citizens but even the office goers have lessened their daily travels due to a cheaper mode of transport.last_img

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