MMRDA faces losses of over $8 Billion
ECONOMY & POLICY

MMRDA faces losses of over $8 Billion

Mumbai Metropolitan Region Development Authority (MMRDA) is grappling with substantial financial losses due to its transportation ventures, specifically Metro 2A, Metro 7, and the Monorail system. These projects are collectively anticipated to contribute to losses exceeding $8 billion within the current fiscal year.

Metro 2A operates from Dahisar East to Andheri, while Metro 7 runs between Dahisar East and Gundavali. The Monorail network traverses the route from Chembur to Jacob Circle via Wadala.

Even though Metro lines 2A and 7 have been operational for just over a year, they have accumulated losses of approximately $2.8074 billion as of March 31, 2023. Despite a daily ridership of around 2.10 lakh passengers, these lines have generated a revenue of $4.126 billion against an expenditure of $3.22 billion in the previous fiscal year.

Contrastingly, the Mumbai Monorail, which has been grappling with underwhelming performance since its launch in February 2014, is poised to amplify MMRDA's financial challenges. With an average ridership of almost 10,000 passengers and a train frequency of 25 minutes, the Monorail's financial outlook is bleak. During the year 2022-23, around 36.36 lakh passengers utilised the Monorail. However, for the ongoing year 2023-24, projections indicate revenue of $136.4 million against a staggering estimated expenditure of $5.4263 billion, resulting in an approximate loss of $5.23 billion. A substantial portion of the expenditure will be allocated to procuring new monorail trains, the first of which is expected to be delivered by Medha Servo Drives later this year. Presently, out of the 11 monorail trains in Mumbai, only 8-9 are in service.

With Metro lines contributing 12.8% and Monorail 5.4% of MMRDA's revenue, the mounting losses underscore the necessity for a comprehensive financial restructuring. The situation demands immediate attention, calling for strategic interventions to mitigate losses and ensure the long-term sustainability of these crucial transportation initiatives.

Mumbai Metropolitan Region Development Authority (MMRDA) is grappling with substantial financial losses due to its transportation ventures, specifically Metro 2A, Metro 7, and the Monorail system. These projects are collectively anticipated to contribute to losses exceeding $8 billion within the current fiscal year. Metro 2A operates from Dahisar East to Andheri, while Metro 7 runs between Dahisar East and Gundavali. The Monorail network traverses the route from Chembur to Jacob Circle via Wadala. Even though Metro lines 2A and 7 have been operational for just over a year, they have accumulated losses of approximately $2.8074 billion as of March 31, 2023. Despite a daily ridership of around 2.10 lakh passengers, these lines have generated a revenue of $4.126 billion against an expenditure of $3.22 billion in the previous fiscal year. Contrastingly, the Mumbai Monorail, which has been grappling with underwhelming performance since its launch in February 2014, is poised to amplify MMRDA's financial challenges. With an average ridership of almost 10,000 passengers and a train frequency of 25 minutes, the Monorail's financial outlook is bleak. During the year 2022-23, around 36.36 lakh passengers utilised the Monorail. However, for the ongoing year 2023-24, projections indicate revenue of $136.4 million against a staggering estimated expenditure of $5.4263 billion, resulting in an approximate loss of $5.23 billion. A substantial portion of the expenditure will be allocated to procuring new monorail trains, the first of which is expected to be delivered by Medha Servo Drives later this year. Presently, out of the 11 monorail trains in Mumbai, only 8-9 are in service. With Metro lines contributing 12.8% and Monorail 5.4% of MMRDA's revenue, the mounting losses underscore the necessity for a comprehensive financial restructuring. The situation demands immediate attention, calling for strategic interventions to mitigate losses and ensure the long-term sustainability of these crucial transportation initiatives.

Next Story
Infrastructure Urban

MoHUA Plans New Role for Smart City SPVs

In a significant policy move, the Ministry of Housing and Urban Affairs (MoHUA) has issued an advisory encouraging the continued use and repurposing of Special Purpose Vehicles (SPVs) formed under the Smart Cities Mission (SCM). This marks a step toward sustaining urban transformation by leveraging institutional capabilities and infrastructure developed over the past decade.Initiated in 2015, the Smart Cities Mission introduced a new era of urban planning in India, with each of the 100 selected cities forming SPVs under the Companies Act, 2013. These entities, jointly owned by state government..

Next Story
Infrastructure Urban

ADB Approves $110 Million Loan to Boost Skills in Gujarat

The Asian Development Bank (ADB) has approved a USD 109.97 million (Rs 9.27 billion) results-based loan to support Gujarat’s efforts to become a global industrial hub by developing a future-ready, skilled workforce.The funding will back the Gujarat skills development programme, led by the Department of Labour, Skill Development and Employment in collaboration with Kaushalya: The Skill University (KSU). The initiative aims to equip the workforce with advanced, industry-aligned skills to meet rising employment demand in high-growth sectors.According to ADB, the programme seeks to strengthen in..

Next Story
Infrastructure Urban

SDAL Tests Rudrastra UAV and Bhargavastra Defence System

Solar Defence and Aerospace Limited (SDAL) has successfully completed a key flight test of its indigenous Hybrid VTOL UAV Rudrastra at the Pokharan Firing Range, aligning with Indian Army performance benchmarks for mission adaptability, high endurance, precision engagement, and vertical take-off and landing (VTOL) capability.The trial marks a notable achievement in India’s Aatmanirbhar Bharat initiative, underscoring advancements in home-grown military technology. The Rudrastra UAV demonstrated a mission radius exceeding 50 km with uninterrupted video relay, a total operational range of over..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?