Bengaluru: Namma Metro’s cash loss increased by Rs 26 crore

BENGALURU: Bangalore Metro Rail Corporation Limited (

BMRCL

) has suffered a net cash loss of Rs 55 crore in 2019-20 compared to Rs 29 crore the previous year. This is after paying interest on loans of Rs 108 crore in 2019-20.

However, the net accounting loss is pegged at Rs 598 crore during 2019-20 compared to Rs 498 crore in the previous fiscal. This is mainly due to the depreciation charges of Rs 584 crore for Phase 1 assets in 2019-20.

The loss for the current financial year (2020-21) is likely to be much higher since Metro remains shut for 149 days (since April 1). As the service was not operational for only nine days (March 22-31) during 2019-20, the impact was minimal.

“Expenditure has gone up by Rs 39 crore due to revision in staff salaries, increase in energy charges due to introduction of six-car trains and higher expenditure towards maintenance due to completion of defect liability periods of various Phase 1 contracts,” BMRCL chief public relations officer BL Yashvanth Chavan said in a release on Thursday.

However, BMRCL recorded fare box revenue (passenger fare) of Rs 377 crore in 2019-20 compared to Rs 355 crore the previous year, an increase of 6%. “BMRCL has achieved an operational cash surplus of Rs 54 crore in 2019-20,” said Chavan.

The corporation has reported a reduction in non-fare box revenue: Rs 42 crore in 2019-20 compared to Rs 47 crore the previous year. “This is mainly due to loss of revenue owing to the ban on outdoor advertisements and reduction in rental income from property development in March 2020 due to the lockdown,” he said.

Experts say BMRCL could generate an average of Rs 10 crore a year through ads on Metro pillars but BBMP’s ban is a hurdle. The increase in passenger revenue can be attributed to conversion of three-car trains into six-coach ones.

Shadab Siddiqui of Auctus Advisors, a management consulting and advisory firm, said: “The outdoor advertising ban was targeted at the rampant unauthorized use of hoardings. Metro suffered collateral damage, even though metro pillar advertising is very organized and regulated. City authorities will do well if they find a mechanism to exclude metro advertising from the ban, so that it can generate much needed commercial revenues to fund its operations".

Chavan said they have converted all their 50 train sets into six-coach ones with the first reserved for women and have commissioned 18 escalators at 15 Metro stations.