Bengaluru Metro releases fare fixation report seven months after up to 71% hike

Bengaluru Metro

Seven months after Bangalore Metro Rail Corporation Limited (BMRCL) raised fares by up to 71 percent, agency has finally released the much-awaited Fare Fixation Committee (FFC) report.

The disclosure, uploaded on its website, comes after sustained public demand, RTI applications, and even a High Court petition by Bengaluru South MP Tejasvi Surya.

In its petition to the FFC, BMRCL said that Karnataka government has so far provided Shadow Cash Support (SCS) to cover its losses and loan repayments, but “given its current financial position, it may not be able to continue this support”.

Also, read: Bengaluru Metro users demand disclosure of fare fixation report, revenue details

The FFC also introduced an annual formula-based revision, factoring in changes in staff costs (linked to CPI), energy charges, and maintenance costs, with an upper cap of five percent per year. Using this system, the FFC recommended a 51.55 percent cumulative increase spread over 7.5 years- an annualised increase of about 6.87 percent- arguing that this was far more reasonable than BMRCL’s earlier proposal of a 105 percent hike.

Asked how the fare increased up to 71 percent despite the FFC recommending 51.55 percent, a senior official told Moneycontrol: "The average increase is 51.55 percent, but in a few slabs it is higher."

The FFC compared Bengaluru’s situation with that of Delhi, Chennai, Singapore, and Hong Kong Metros, which follow automatic fare revision formulas and rely heavily on non-fare revenues such as advertisements, real estate, and event tie-ups. It recommended a rationalisation of the fare structure, reducing the existing 29 slabs to 10 simple, rounded slabs in multiples of Rs 10. The minimum fare was set at Rs 10 for journeys up to 2 km, while the maximum would be Rs 90 for distances of 25 km and above.

Of 1,126 responses received from commuters through email and WhatsApp, 51 percent opposed it outright, 27 percent supported a ‘reasonable’ fare increase, and the rest offered suggestions such as student passes, monthly passes, senior citizen concessions, and off-peak discounts.

Many commuters demanded lower fares on Sundays and national holidays, and easier ticketing options. The committee accepted a few of these recommendations, such as limited discounts for off-peak travel and Sunday concessions, while rejecting others citing technical or financial limitations.

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BMRCL said it continues to operate at a loss even as ridership grows. Passenger numbers are projected to cross 10 lakh a day by 2025 and 13.8 lakh by 2028. Staff salaries account for 32 percent of operating costs, housekeeping and security 28 percent, electricity 19 percent, and maintenance 18 percent, with administration expenses making up the rest. Depreciation and loan repayments are also weighing heavily on the books, with the corporation’s outstanding external loan liability standing at over Rs 13,100 crore, in addition to subordinate debt of more than Rs 21,500 crore. Annual interest obligations are estimated at Rs 128 crore, while principal repayments stand at Rs 463 crore, both expected to rise sharply as Phase 2 and its extensions are commissioned.

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The report stressed that the committee had balanced commuter affordability with the corporation’s long-term viability. It highlighted the metro’s role as an essential urban service, providing safe, air-conditioned, and seamless travel while reducing pollution, fuel consumption, road accidents, and travel time. To sustain this role, the FFC urged BMRCL to aggressively boost non-fare revenue, improve feeder bus connectivity with BMTC, adopt multimodal ticketing solutions, and regularly reconstitute an FFC every three years.

Moneycontrol had earlier reported that BMRCL spent Rs 12.97 lakh on FFC members and Rs 12.88 lakh on its officials for study visits to Singapore and Hong Kong to examine fare models. Yet, BMRCL had consistently refused to share the report or daily ridership revenue data under RTI, drawing criticism from commuters and activists.

Bengaluru South MP Tejasvi Surya also petitioned the Karnataka High Court, demanding the immediate release of the report. “BMRCL submitted an affidavit stating that the Fare Fixation Committee report would be disclosed. But even after 1.5 months of receiving the state government’s approval to upload it on its website, BMRCL has failed to release the report. Public interest must come first,” he said, adding that the final hearing in the case is scheduled for September 12.

The FFC was chaired by former Madras High Court judge R Tharani and also included Satinder Pal Singh, Additional Secretary to the Union Ministry of Housing and Urban Affairs, and retired IAS officer EV Ramana Reddy, former Additional Chief Secretary to the Karnataka government.

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