Reliance infra said it was “bleeding financially” and registering a loss of Rs 90 lakh for every day on operation.
The Bombay High Court on Monday quashed the proposal for hiking metro prices. The proposal was submitted by Reliance Inrastructure, which runs the Mumbai Metro One Private Limited (MMOPL).
The company said that hike in price was essential as it is “bleeding financially” and was suffering a loss of Rs 90 lakh for every day on operation, The Economic Times reported.
MMOPL said in its plea, that the price hike was paramount to absorption of rising of project costs. It is now looking at other legal recourses as per the report.
On Monday, the court was hearing a bunch of pleas including that of Mumbai Metropolitan Region Development Authority (MMRDA) and Congress leader Sanjay Nirupam against the proposed fare hike.
When the metro rail services were introduced in 2014, the introductory fare was Rs 10 for a one-way journey covering around an 11-km stretch.
In July 2015, the committee working on fare fixing, suggested an increased slab of fare range in between Rs 10-110, depending on distance. The range was initially Rs 10-40.
In December 2015, MMOPL — after incurring heavy losses — announced a fare hike of Rs 5, PTI reported.
Both fare fixing committee’s recommendation and MMOPL’s announcement were met with MMRDA moving the high court against the fare hike. MMRDA had commissioned the Mumbai Metro, as per PTI.On December 17, 2015, in an interim order, the high court had stayed the proposed fare hike.