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Metro fare hike: Minister warns DMRC chief of action
09 October 2017, 12:45 | Todd Saunders
Govt warns DMRC Roll back fare hike or face action
According to media reports, the Center has said that it will consider the setting up of a fresh Fare Fixation Committee if the Delhi government agrees to give over Rs.3,000 crpre every year to the DMRC. The CM also said till that happens, let the spirit of partnership prevail.
Puri has also pointed out that the fares charged by DMRC are far lower than those charged by the Metros other cities like Mumbai, Bangalore, Chennai, Kochi and Lucknow. "As for as your suggestion regarding a grant to DMRC for meeting the gap in their operating finances, my government is willing to bear half the grant if only a matching grant is provided by the Central Government", Kejriwal said in his letter to Puri. He said that it was decided in the last Fare Fixation Committee meeting that since the fare hikes were coming after a gap of seven years, it should be staggered into two instalments, of which the first came in May and the second is scheduled for this month.
Taking the cognizance of the Delhi Chief Minister Arvind Kejriwal's request against the Delhi Metro fare hike, the Central Government has that it has no jurisdiction to hold the proposed Metro fare hike unless, the Aam Aadmi party (AAP) agrees to pay Rs 3,000 crore annually to Delhi Metro Rail Corporation (DMRC). He has cited how Delhi government provides Rs 1,600 crore financial support to Delhi Transport Corporation, which is not in good shape. He said the Union minister's contention that the DMRC is bound by the FFC recommendations seems "untenable" as the same DMRC sat over recommendations of fare hike for full eight months.
He also mentioned that since the Centre bears 100 per cent of loss for Kolkata Metro, he sees no difficulty if it bears 50 per cent in case of Delhi and thereafter, another FFC can be constituted.
The DMRC was formed in 1995 with equal equity participation of the Central government and the government of National Capital Territory of Delhi.
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The Delhi Metro's minimum fare was hiked from Rs 8 to Rs 10, and the maximum from Rs 30 to Rs 50 in May this year.
From October 10, for a distance of up to two kilometres, the fare will remain Rs 10, but for a distance between two and five kilometres, it will go up from Rs 15 to Rs 20.
The Delhi chief minister had written to the Housing and Urban Affairs Ministry to stall the fare hike recommended by the 4th Fare Fixation Committee.
"Neither the Central Government nor the State Government or even the Board of the Company has legal power to change the recommendations made by the FFC".
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