The Mumbai Metropolitan Region Development Authority (MMRDA) has merged the monorail project implementation unit with the Maha Mumbai Metro Operation Corporation Ltd (MMMOCL) to revive the struggling Mumbai Monorail.
The merger aims to improve operations, cut costs and save expenses. This move is expected to save over INR 40-60 crores annually and reduce duplication of manpower.
At present, the capital expenditure of the monorail is INR 291 crore while the revenue expenditure is INR 252 crore, which includes major expenses like manpower, civil, administration, security and maintenance.
MMRDA has also ordered 10 new rakes to improve services. The monorail is incurring losses, with an estimated loss of INR 529 crore in 2023-24.
The merger, aimed at better operation of the monorail, reducing losses, cutting costs and saving duplicating expenses, was put forward at the MMRDA meeting in Nagpur last month. MMRDA Commissioner Sanjay Mukherjee confirmed the merger. There is also a possibility of change in the authority's top management. A meeting is expected to be held this week on its overall specifics.
The official added that the merger was also important, given that for the first time in 10 years, new monorail rakes would start coming in.
The increase in loss is being attributed to the procurement of new rakes and the cost of building a travelator connecting Mahalaxmi and Jacob’s Circle. The earnings from ticketing are estimated to be a paltry INR 13.6 crore.
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