Mumbai Metro 3 Power Prices Hike, Directly Hit Passenger Fares

MMRCL doesn't receive cross-subsidies from the government as the railways do.

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Mumbai Metro Line 3
Mumbai Metro Line 3

Mumbai (Metro Rail News): Mumbai Metro Rail Corporation Limited (MMRCL) is confused at the hike of electricity costs for the Colaba-Seepz Metro-3 line (Mumbai Meto Line 3).

The Maharashtra Electricity Regulatory Commission (MERC) has stated that it has followed an official tariff outlook with the hike.
It’s worth aiming out that the MMRCL had forced the MERC to reduce power prices and waive wheeling charges.

MMRCL doesn’t receive cross-subsidies from the government as the railways do.

“Metro companies such as Kochi Metro, the electricity charge is Rs 4.8 per unit while that of railways is Rs 5.1 per unit. Similarly, in Bengaluru, the power price for Metro is Rs 5 per unit as against is 6 per unit for railways. There is a discount is given in Metro tariff as compared to railway tariff as the latter can earn through cross-subsidy arrangement with freight earnings”, Said MMRCL official.

The increase in power charges could become higher ticket fares for the passengers when the Mumbai metro line 3 is operational.

Mumbai Metro line 3 will be operational between Seepz and Colaba was expected to cost Rs 23,000 crore when it was proposed in 2011. However, the project has already cost Rs 32,000 crore.
“It is shocking that when rates have decreased overall and for residential users and other categories, the Metro Rail has to bear high costs. We are underground and have no means to produce 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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