UP Metro Rail Corporation Records Rs.17 Bn Loss in FY23
RAILWAYS & METRO RAIL

UP Metro Rail Corporation Records Rs.17 Bn Loss in FY23

The Uttar Pradesh Metro Rail Corporation (UPMRC) has reported a substantial loss of Rs.17 billion for the financial year 2023, marking a challenging period for the state's metro operations. This financial strain comes amid the ongoing expansion of metro services in cities like Lucknow, Kanpur, and Agra.

The losses are attributed to various factors, including high operational costs, significant capital expenditure on expanding infrastructure, and the economic impact of the COVID-19 pandemic. UPMRC has been heavily investing in new metro lines and upgrading existing ones to meet the growing demand for urban transportation. However, the revenue generated from passenger fares and other sources has not been sufficient to offset these costs.

The gap between operating expenses and revenue collection has widened, with lower-than-expected ridership and fare revenues contributing to the deficit. The UPMRC's ambitious expansion projects have also led to increased borrowing, adding to the financial burden. The ongoing construction of metro corridors in Kanpur and Agra, which are still in their initial phases, has further strained the corporation's finances.

In response to these challenges, UPMRC is exploring various strategies to improve its financial health. These include increasing ridership through better services and connectivity, enhancing non-fare revenue streams such as commercial activities and advertising, and seeking additional financial support from the state and central governments.

Despite the current financial challenges, UPMRC remains committed to expanding and modernising its metro network to provide efficient and reliable public transportation in Uttar Pradesh's major cities. The corporation is optimistic that with strategic financial planning and increased ridership, it will be able to turn around its financial performance in the coming years.

The Uttar Pradesh Metro Rail Corporation (UPMRC) has reported a substantial loss of Rs.17 billion for the financial year 2023, marking a challenging period for the state's metro operations. This financial strain comes amid the ongoing expansion of metro services in cities like Lucknow, Kanpur, and Agra. The losses are attributed to various factors, including high operational costs, significant capital expenditure on expanding infrastructure, and the economic impact of the COVID-19 pandemic. UPMRC has been heavily investing in new metro lines and upgrading existing ones to meet the growing demand for urban transportation. However, the revenue generated from passenger fares and other sources has not been sufficient to offset these costs. The gap between operating expenses and revenue collection has widened, with lower-than-expected ridership and fare revenues contributing to the deficit. The UPMRC's ambitious expansion projects have also led to increased borrowing, adding to the financial burden. The ongoing construction of metro corridors in Kanpur and Agra, which are still in their initial phases, has further strained the corporation's finances. In response to these challenges, UPMRC is exploring various strategies to improve its financial health. These include increasing ridership through better services and connectivity, enhancing non-fare revenue streams such as commercial activities and advertising, and seeking additional financial support from the state and central governments. Despite the current financial challenges, UPMRC remains committed to expanding and modernising its metro network to provide efficient and reliable public transportation in Uttar Pradesh's major cities. The corporation is optimistic that with strategic financial planning and increased ridership, it will be able to turn around its financial performance in the coming years.

Next Story
Infrastructure Transport

Metro Line 2B Phase 1 to Boost Realty in Mumbai’s Eastern Suburbs

Mumbai’s real estate sector is set for a major boost as Phase 1 of Metro Line 2B, between Mandale and Diamond Garden, nears completion. The Mumbai Metropolitan Region Development Authority (MMRDA) has confirmed that mandatory rectifications are done, and inspections by the Commissioner of Metro Railway Safety (CMRS) have been carried out. The 5.39-km stretch with five stations forms part of the larger DN Nagar–Mandale corridor, designed to ease congestion and improve east–west connectivity. Passenger operations are expected by December 2025, with the full line slated for 2027. ..

Next Story
Resources

WattPower wins Best Inverter award at Global Solar Expo 2025

WattPower, a leading renewable energy solutions provider, has won the award for “Best Inverter in the Utility Segment” at the Global Solar Expo 2025. The recognition underscores the company’s commitment to delivering reliable, high-performance and future-ready solar solutions for large-scale projects. At the forefront of utility-scale solar, WattPower manufactures advanced string inverters that directly feed power into the Indian grid. With robust technology, high-quality components and comprehensive product lifecycle support, its solutions stand among the most sophisticated in the ..

Next Story
Real Estate

Awfis delivers 67,000 sq. ft. innovation hub for eBay in Bengaluru

Awfis Space Solutions, India’s largest flexible workspace provider and the first publicly listed workspace solutions platform, has partnered with eBay to establish a 67,000 sq. ft. innovation hub at Embassy Tech Village, Bengaluru. The mandate covers design, build and management of the new office, which will act as a strategic hub supporting diverse functions and accelerating eBay’s AI-first commerce strategy. The centre will focus on artificial intelligence, engineering, product development and applied research, strengthening eBay’s growth in India. Embassy Tech Village, North Beng..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?