Ads to offset losses for Metro in initial stages

With the 30-km Metro Rail network set for a November launch, operational costs worked out by L&T Metro Rail showed that profit will not be generated on this small stretch.

A senior official, on condition of anonymity, said, “We want people to experience the new mode of travel. The company has evaluated that it will be a loss-making venture in the beginning. But, it will turn profitable later.”

According to sources, costs will be recovered from advertisements on pillars, station premises and retail shops.

Presently, pillars at Begumpet, Kukatpally, Yusufguda have advertisements on them.

Development of commercial retail outlets will help L&T Metro Rail recover the costs after the completion of the entire project.

The ticket rates are also finalised. The company plans to keep fares affordable.

A senior officer said, “In the beginning, many will come to experience Metro Rail. Hence, we are expecting a crowd that will not be part of the regular commuters. There has to be discipline in line with the automatic doors. This is being worked with secu- rity guards and station committees, involving local residents.”

The senior officer fur- ther said, “Once the 30km stretch becomes operational, work on the 72-km stretch will start.”