Millennium Post

Rapid metro was showing profitability in recent months, reveals audit

Rapid metro was showing profitability in recent months, reveals audit

Gurugram: Gurugram private metro that was seen as a solution to end the transportation problem of the city is presently at the juncture of being shut if the government does not take over it.

The audit by the Haryana government however reveals that thing was not as bad as it seemed in the month of June and July the Gurugram metro had seen a rise in the number of commuters and

income.

An investigation is now being sought of whether there has been any financial irregularity or not.

The Rapid Metro, which is facing closure on account of financial crisis, recorded an operating profit of Rs 3.81 crore in the last financial quarter, shows a response sent by the operator, Infrastructure Leasing & Financial Services Limited (IL&FS), to the Haryana government which sought an inquiry into the finances of the privately-run service.

The letter states that the service's gross revenue for April, May and June 2019 was Rs 18.49 crore.

The revenue from passenger fare was Rs 8.40 crore, whereas non-fare revenue was Rs 10.09 crore. DLF Phase 3 sees the highest at 11,500 people a day, according to the survey.

Rapid Metro has been breaking even on operational costs, which come to about Rs 6 crore per month.

The financial liability/debt, they said, arises from additional loans and interest accrued by the service (at least Rs1,800 crore, according to the operator), which nullifies any profits.

The mounting losses for Gurugram's private metro have resulted in the pressure of the Haryana government to take over the Rapid Metro.

Team MP

Team MP

Our contributor helps bringing the latest updates to you


Share it
Top