Power tariff hike may lead to increase in Delhi Metro fares

NEW DELHI: With the increase in power tariff on Thursday, a hike in Delhi Metro fares looks imminent. The regulatory body, DERC, has hiked power rates for Delhi Metro from Rs 5.50 per unit to Rs 6.10 per unit which, sources say, will result in a 3-4% increase in operational costs.
According to a Metro official, a hike in power tariff would translate into an increase in operational costs as power accounts for around 40% of the operational expenses.
"We have adopted a number of energy-saving measures to decrease costs. However, if power tariff continues to increase, it will impact the operational costs which in turn may need to be passed on to the commuter," said the Delhi Metro official. A fare fixation committee has been set up already by the Centre though members of the committee are yet to be decided.
In a report submitted earlier to both the state government and the Centre, DMRC had made an argument for a change in its fare structure. The last fare change had been in 2009 when the minimum fare was raised from Rs 6 to Rs 8 while the maximum had gone up from Rs 22 to Rs 30. At the time, the Delhi Metro head had said that the rising operational costs have put immense pressure on the transit system to review its fares.
"Metro operations are a hugely cost-intensive exercise. Metro fares have to be periodically revised according to the increase in our operational costs. Various recent developments such as the increase in power tariff have put more pressure on us to review our fares, which are among the cheapest in the world," Mangu Singh had said that time.