Cidco has decided to appoint a consultant to help generate revenue from the Metro project from sources other than fares, such as advertisement, real estate above railway stations and commercial outlets along the Navi Mumbai Metro corridor, which is likely to be operational soon.
Cidco has floated a tender inviting online proposals from internationally experienced and reputed single business entities for appointment as a consultant for assessment of Non-Fare Box Revenue (NFBR) opportunities in Line-1 (Belapur-Pendhar) of Navi Mumbai Metro project.
According to an official, in order to make the Navi Mumbai Metro financially viable and self-sustainable, the CIDCO will explore options for NFBR through advertisements, retail, food and beverages, real estate development, among others, for the 11-km long Metro line 1. The consultant will find ways to generate alternate revenue sources from inside and outside the Metro station premises.
Meanwhile, the safety commissioner of the railway has already conducted safety trials and Cidco hopes to start commercial operation of Line-1 of Metro 1 anytime soon once the final certification is obtained. Cidco wants to identify several implementable NFBR options within the station areas and outside the stations that can fetch additional revenue other than fare box collection. By creating alternate revenue sources, Cidco aims to create a transportation network that is financially viable and self-sustainable.
“Considering the fact that public transport projects like Metro are capital and maintenance intensive, they will not be financially sustainable by depending only on farebox revenues,” said an official. He added world-class commuter services require significant financial resources, and this has necessitated Cidco to look for additional revenue opportunities beyond the farebox.
“The consultant’s job is to maximise revenue by exploiting land adjoining metro tracks and the air-space above stations for real estate development in appropriate formats which could unlock value for the metro project,” said Cidco.
