The Bengaluru metro has achieved profitability for the first time in more than a decade since it began operations in 2011. During the fiscal year 2022-23, BMRCL achieved a profitable margin and aims to attain a profit of Rs 100 crore by the end of the subsequent fiscal year, 2023-24, Deccan Herald (DH) reported.
In 2022-23, BMRCL garnered earnings totaling Rs 594.02 crore, encompassing both fare revenue and miscellaneous charges while the maintenance expenditure accounted for Rs 486.61 crore. Even after factoring in employee wages and other costs, a profit of Rs 40 crore was made, as per the figures provided by DH. This trend has extended into the new financial year, with BMRCL recording revenues of Rs 190.67 crore from April to July, while incurring expenses of Rs 186.92 crore for train operations over those four months.
BMRCL officials believe the metro would have achieved profitability sooner if not for the setbacks brought about by the Covid-19 pandemic. However, it has managed to recuperate from the losses incurred during that period. In 2022-2023, the average daily ridership on the metro trains was 5.32 lakh passengers. This year, the count has risen from 5.3 lakh to 6.1 lakh daily commuters.
Once the new stretches on the purple line open, an increased ridership of 7 lakh is expected. A senior BMRCL official speaking to DH said that they expect the metro network to reach 175 km by 2026, and hope to cover a part of depreciation costs in the next three years. “Our target is to have a 317-km network by 2031 and be financially self-sufficient in the next 10 years,” he told DH.