Bengaluru Metro charges should not exceed 1.5 times non-AC bus fare: E Sreedharan

E Sreedharan served as the managing director of the Delhi Metro Rail Corporation (DMRC) from 1995 to 2012

Bengaluru Metro fares should not exceed one and a half times the non-AC bus fare, said E Sreedharan, popularly known as India's Metro Man.

Bengaluru Metro has recently increased fares by up to 71 percent, making it the costliest in the country. BMRCL officials said that the hike was based on the Fare Fixation Committee’s recommendation. The maximum fare (for distances above 25 km) has risen from Rs 60 to Rs 90, while the minimum balance required on smart cards has increased from Rs 50 to Rs 90.

Also, read: Travellin' Blues: Congested Bengaluru now has the costliest Metro fare in India

Speaking to Moneycontrol, Sreedharan, who served as the managing director of the Delhi Metro Rail Corporation (DMRC) from 1995 to 2012, termed the Bengaluru Metro fare hike as "very steep." He said, "The rule of thumb for fixing Metro fares is that they should be one and a half times the non-AC bus fare. Any increase beyond this will discourage passengers from using the Metro, pushing them to other modes like scooters, cars, and buses, which will increase road congestion. The Metro will also suffer losses due to a decrease in the number of passengers."

In Bengaluru, the minimum non-AC bus fare, which was hiked by 15 percent across the board, was revised from January 5. The non-AC bus fare is Rs 5 for 2 km and Rs 32 for 50 km. Meanwhile, the Metro’s minimum fare for 2 km is Rs 10, while the fare for distances above 25 km has increased to Rs 90.

Also, read: Bengaluru Metro fare hike: Pressure mounts on BMRCL to reduce charges, Students' Union demands 50% discount

Sreedharan pointed out that project costs will rise due to an annual inflation rate of around 4 percent. " The soft loans, with their low interest rates and long repayment periods, should be manageable. However, when Metro corridors are planned on unprofitable routes due to political pressure and delays lead to cost escalations of 30-40 percent, repayment becomes a challenge," he said.

Bengaluru Metro’s Phase 1, covering 42 km, was initially estimated at Rs 6,395 crore in 2005 but later increased to Rs 14,133 crore. Similarly, Phase 2, covering 72 km, was estimated at Rs 26,405 crore in 2014 but increased to Rs 30,695 crore in 2022, and further to Rs 40,614.27 crore in 2024. Phase 2 deadline is now pushed to 2026.

Also, read: After Karnataka CM's nudge, Bengaluru Metro caps fare hike at 71%

Asked whether the Fare Fixation Committee’s decision is binding on the Metro, Sreedharan said, "It is also clear that the Metro authorities have not presented the facts correctly to the Fare Fixation Committee."

He said that while some passengers who shifted after fare hike would return due to a lack of alternatives, others might stay away for a longer period, either as a mark of protest or because they find the fares unaffordable.

Sreedharan said that increasing fares alone is not the solution. “Metro authorities must explore additional revenue streams. They should focus on commercialising Metro properties so that non-fare revenue contributes at least 25 percent of total ticket revenue. I don’t think anything significant is happening in Bengaluru Metro in this regard. In Delhi, it is around 35 percent of the passenger revenue,” he added.

Also, read:Bengaluru Metro fare hike: Karnataka CM asks BMRCL to reduce 'abnormal increases'