Metro fare hike makes sense
Subsidising Delhi’s lifeline will derail its expansion plans
Delhi metro rides became costlier from Tuesday after the Delhi Metro Rail Corporation (DMRC) board decided against rolling back the hike recommended by the Fare Fixation Committee (FFC). Fare hike, especially of services like energy or public transport, often meets with opposition from politicians. The DMRC board’s decision has not gone down well with chief minister Arvind Kejriwal. He has called the move “anti-people” despite being aware that a fare hike had become a necessity in the wake of metro’s mounting operational cost. The DMRC board must be applauded for standing its ground in the face such political pressure. Ignoring the law, which makes it binding on the metro rail administration to accept the recommendations of the FFC, the Delhi government threatened to revoke DMRC chief Mangu Singh’s appointment if the hike was not reversed.
Populism, however, well intentioned, should not come at the cost of hurting the efficiency of the city’s most popular mode of public transport. A roll back or deferment could earn political dividends for the AAP but will be disastrous for DMRC’s financial health and operational performance. The last time metro fares were increased was in 2009. Since then electricity tariff has gone up by over 90%, accounting for almost 30% of DMRC’s total operating cost. Despite the hike, Delhi metro fares continue to be far lower compared to other international cities. The minimum fare in Delhi post revision is ₹10 as against ₹288 (£4 ) in London, ₹35.51 (1 SGD) in Singapore and ₹21 (2 Yuan) in Shanghai. Worldwide, passenger fares are the largest source of income for metro rail. In London Underground, for instance, the mayor decides the fare and political interference is unheard of. In India, the FFC is an independent entity set up by the Centre as and when a metro rail corporation requests a fare hike. They are temporary in nature.
Subsidising a world-class service like the DMRC will not only delay the expansion of the network in the city, it might also send it the way the other train/local services have gone in different cities in India.