DELHI (Metro Rail News): The Delhi Metro Rail Corporation network expanding vastly over the last two years. the growing number of stations increase in non-fare revenue. Auctioning of semi-naming rights of many stations boosting the non-fare revenue of corporation.
Mr. Mangu Singh, MD of DMRC Said that non-fare revenue has been going up in the last few years mainly because DMRC has been expanding its network as apart of the Phase III project. The entire metro network currently stands at 343 km with 251 stations Excluding the Noida-Greater Noida section, which is also built by DMRC
DMRC revealed in a reply to an RTI application that it earned Rs 441.4 crore in non-fare box revenue in the financial year 2015- 16, Rs 477.5 crore in 2016-17 and Rs 502.7 crore in 2017-18. The figures for the financial year 2018-19 are not yet available
“Naming right has been quite successful,” an exuberant Singh told TOI in a recent interview. “On average, we get around Rs 1 crore per station per year while some stations give almost Rs 2.5 crore per year, which is really good,” Said Mr. Singh.
“Apart from generating direct revenue through auctioning off naming rights, it also has added benefits. At most stations, the undertakings that have bought the naming right, also do the branding of the stations with colors associated with the respective companies”. Said MD, DMRC. this adds to the aesthetic of the station he added.
DMRC doesn’t have to worry about maintaining it as the company maintaining the exterior of the stations.
“We save on maintenance of these structures and also lighting and other aspects. It’s a good thing,” he said.
The revenue earned is fully used to pay back the loan taken from the Japan International Cooperation Agency (JICA) he added.
DMRC started auctioning naming rights of select stations to companies and public sector undertakings from 2014, which has been helping it in generating substantial revenue. In the last five years, DMRC has auctioned naming rights for a total of 56 stations across NCR.
According to the sources, The policies in Haryana and Uttar Pradesh are not very restrictive regarding the branding of stations.