Hike in power prices for the Colaba-Seepz Metro 3 line could directly impact passenger fares


Hike in power prices for the Colaba-Seepz Metro 3 line could directly impact passenger fares
SHARES

Sources within the Mumbai Metro Rail Corporation Limited (MMRCL) are puzzled at the hike of electricity charges for the Colaba-Seepz Metro-3 line. The Maharashtra Electricity Regulatory Commission (MERC), however, has mentioned that it has followed a standard tariff philosophy with the hike. 

It’s worth pointing out that the MMRCL had urged the MERC to reduce power rates and waive wheeling charges. This made sense given that MMRCL doesn’t receive cross-subsidies from the government as the railways does.Also Read: Metro 3: Tunnelling Under Mithi River Complete

An MMRCL official said - “If you look at other Metro corporations such as Kochi Metro, the electricity charge was Rs 4.8 per unit while that of railways was Rs 5.1 per unit. Similarly in Bengaluru, the power cost for Metro was Rs 5 per unit as against Rs 6 per unit for railways. There is a discount given in Metro tariff as compared to railway tariff as the latter can earn through cross-subsidy arrangement with freight earnings."

The rise in power costs could translate to higher ticket fares for the commuters when the metro is operational. The aforementioned Metro 3 line between Seepz and Colaba was estimated to cost Rs 23,000 crore when it was proposed in 2011. However, the project has already cost Rs 32,000 crore.

“It is surprising that when rates have fallen overall and for residential users and other categories, the Metro Rail has to bear high charges. We are totally underground and have no means to generate additional solar power. We will depend on the electricity supplied by Tata Power and have not got any relief in charges” an unnamed source from the MMRCL said. 


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