PwC hired to help in CMRL-MRTS merger
CHENNAI: To further push the decision to merge Mass Rapid Transportation System (MRTS) with Chennai Metro Rail Limited (CMRL), the latter has hired Pricewater houseCoopers (PwC), last month, as a consultant to look into the finances, operations and technical aspects of the merger.
CMRL managing director Pankaj Kumar Bansal told Deccan Chronicle that the merger is feasible and the guidelines are being studied by PwC.
According to Southern Railway officials, they are keen for the merger, as it will yield better returns.
“Over six months back, we submitted the documents stating the guidelines on which the merger would be based. It is up to them to add some more regulations if they want, and carry out the implementation,” the official said.
CMRL officials said that the fares are likely to go up in case the rolling stock is changed. “The main focus will be to commercialise the space in the MRTS stations, as they are huge and we would need only about 10 percent of that space for operations. The remaining 90 per cent will be used for commercial setups like stalls, food outlets, and other establishments,” the official said.
“The Railways couldn’t commercialise the space, but that is the sole way to bring in more revenue. 90% of our planning will be based on maintaining the huge stations,” the official added.
According to CMRL officials, the current stock of coaches will have to be given back to the Southern Railway in case new and air-conditioned AC coaches are to be used. Southern Railway staff hired by MRTS will no longer be working once CMRL owns the project.
“The fares will have to be increased if we are going to use AC coaches. At lower rates, AC is not feasible,” the official continued.
MRTS: Terminating stations, loco sheds to be separate
While the fares are likely to be decided by CMRL after the merger, Southern Railway is clear on its guidelines on which the merger is based, officials said.
“Our conditions are that fort station should be the terminating station for MRTS services so that Beach station will be the terminal for EMU trains. The fort station should be developed further as a terminating station by the CMRL,” said a senior Southern Railway official.
“We have placed a request for installing a separate sub-station for sourcing power to run MRTS trains, instead of the same sub-stations that are used to power the EMU and mainline trains,” added the official. Also, the Velachery shed currently used as the loco shed for MRTS will be handed over to CMRL in a phased manner.
The official added that the rolling stock would be given to CMRL on hiring basis till the time new stock is rendered to them from coach factories.
As railway officials say that fares would be something that CMRL will have full rights to decide, users worry that fares should not be high, as Metro fares are already something that common people are finding difficult to afford.
“While the merger is very much welcome but the fares should be kept the same. Currently, a ride from Velachery to Mylapore costs '5, but the fares of metro rail start from '10 and are as high as '40 till Koyambedu. Another thing to be taken care of is the commercialization of MRTS stations as that would bring in revenue,” said V. Rama Rao, director of Traffic and Transportation Forum.
Railway officials maintained that unfavourable bidding received for commercialization of station spaces was the reason that all these years, the stations couldn’t have commercial establishments coming up.
“For passengers, especially women, it gives an eerie feeling at the stations especially during the non-peak and the evening hours. If commercialization is done sooner, it would be better for authorities running MRTS as well as passengers,” said Meera Chandran, a commuter.