Gururgram: Built on the public-private partnership model, the Rapid Metro in Gurugram – which started in 2013 – was expected to change the landscape of public transportation in the city.
Five years hence, the Rapid Metro Gurgaon Ltd (RMGL), which manages the Metro, has served the Haryana government a notice seeking compensation for Rs 1,484 crore for its losses. The government has sought a duration of three months to reply to the notice and set up a committee.
Higher costs of travelling, less focus on last-mile connectivity and low frequency of trains resulted in most residents resorting to other modes of transportation.
According to reports, over 50,000 commuters use the services of the private metro each day. This, however, is not enough for RMGL to recoup its costs.
The company has also been at odds with public agencies over the display of advertisements, a major source of revenue. Another concern for RMGL is the dwindling number of commuters using the Rapid Metro services.
Many residents – who commute through Golf Course, Sikanderpur, MG road and Cybercity – considered the Rapid Metro a bane, even as diesel autos and private city buses are being used more widely.
While these modes transportation charge a reasonable amount from their customers, ticket prices in the Rapid Metro range from a minimum of Rs 20 to a maximum of Rs 35, and office-goers prefer a cheaper mode of transport.
"Being a private enterprise, there is a focus on recovering the costs to reach the breakeven levels soon. As it is covering just 11 kilometres, the Rapid Metro cannot be profitable by being a mass product and has, therefore, focussed on being a niche product by focussing more on office goers. However, even in this strategy, they need to work on their business model," said Amandeep Singh, a Gurugram resident.
"There is a need to rework its ticketing prices. The management must also work on improving the frequency of trains, so that the office-going commuters, which it mainly attracts, do not lose patience during rush hour," he added.
In addition to advertising, on certain occasions, Rapid Metro also earns revenue by providing space for hosting functions in its coaches.