Pay Rs. 3,000 cr annually to cancel Metro fare hike: Centre to Kejriwal 

Delhi Chief Minister Arvind Kejriwal (Photo: IANS/File)


The central government told Delhi Chief Minister Arvind Kejriwal on Saturday that it cannot put on hold the proposed Metro fare hike unless state government agrees to pay nearly Rs. 3,000 crore annually to Delhi Metro Rail Corporation (DMRC).

Minister of State for Housing and Urban Affairs Hardeep Singh Puri’s letter dated October 6 was a response to a letter from Kejriwal on September 29 asking the central government to put the hike on hold. Puri in his reply to a letter to Kejriwal said that, Metro Act does not allow the central government to put on hold the fare hike.

Puri noted that the alternative to fare hike was to provide DMRC yearly grants-in-aid for the next five years: Rs 3,040 crore, Rs 3,616 crore, Rs 3,318 crore, Rs 3,150 crore and Rs 2,980 crore respectively.

After the recommendation of second proposed fare hike this year by the Fare Fixation Committee (FFC), AAP government has been opposing the decision, which may come into force from October 10.

The Delhi Metro’s minimum fare was hiked from Rs 8 to Rs 10, and the maximum from Rs 30 to Rs 50 in May this year. If the fares are increased on October 10, those travelling more than two kilometres will need to pay Rs 5-10 more.

In his letter Puri said, “Your suggestion that this Ministry direct that the fare increase be kept on hold overlooks the fact the central government does not have any such authority. Tampering with the recommendations of FFC is legally untenable.”

The DMRC was formed in 1995 with equal equity participation of the central government and the government of National Capital Territory of Delhi.

Rebutting the Delhi government’s claim that FFC had recommended that the two fare hikes should have a gap of one year, Puri said Kejriwal’s statements vis-a-vis the FFC were both “misleading and factually incorrect”.

Puri said the Phase-IV of Delhi Metro was running behind schedule by two-and-a-half-years due to decisions taken by the Delhi government.

Puri said the people of Delhi wanted efficient, reliable and punctual Metro services and added that DMRC should be allowed to function as an autonomous company in the best interest of the citizens.

Last week, Kejriwal asked Delhi Transport Minister Kailash Gahlot to find a way to stop the “anti-people” fare hike.

The DMRC defended its decision by saying its input costs had gone up over the years and the increase was at par with Metro rails in other cities.

The Delhi assembly will meet on Monday to discuss the proposed hike.

(With agency inputs)