Bengaluru, India (Metro Rail News): Bangalore Metro Rail Corporation Limited (BMRCL) has reduced the discount rate from 15% to 5% so that the commuters, who paid for the services through smart cards, will have to shell out 10% more from January 20, 2020.
Bangalore Metro Rail Corporation Limited (BMRCL) introduced the 15% discount on fares paid through smart cards, which were seen as an effective way to reduce long queues at the token counter.
In a statement, the corporation said that it is heartening to note that 62% of the commuters have patronised smart cards. In view of the achievement of high patronage, the incentive by way of discount on the base fare structure will now be revised from 15% to 5% with effect from January 20 and there is nothing that there was no change in the base fare.
In other words, smart card commuters who paid Rs 51 for a trip between Yelachenahalli and Nagasandra will have to pay 11.76% more from January 20. Besides the ‘achievement’, BMRCL cited the increase in operational expenses and the general increase in the cost of services for cutting the discount.
“In the financial year 2019-20, the likely net cash loss is estimated to be Rs 60 crore,” the release noted. More money for BMRCL The cut in discount will bring an additional Rs 2 crore into BMRCL’s kitty every month.
The monthly revenue of the corporation varies between Rs 31 crore and Rs 33 crore. More than 60% of the Namma Metro commuters pay through smart cards. In November, the BMRCL earned Rs 31.97 crore fare revenue of which 62.04% (Rs 19.83 crore) came through smart cards. Considering that the ridership is expected to grow in the coming days, the cut in discount will bring more money to the corporation in the coming months.
The corporation had increased the minimum balance in the smartcards from Rs 10 to Rs 50. Regular and semi-regular travellers usually recharge between Rs 250 to Rs 1000.