The Mumbai Metro Rail Corporation (MMRC), which is executing the fully-underground Metro-3 (Colaba-Bandra-Seepz) corridor, has objected to the multi-year tariff hike proposed by Tata Power for Metros. It states that a hike of 35% will add to the existing financial burden of the corporation.
“The tariff hike will add a burden of ₹46 crore by 2021 and a total of ₹80 crore by 2025. This will only result in a fare hike, as unlike railways, there is no other source of revenue for Metro,” an MMRC official said.
MMRC, in its objection, has stated that since Metro-3 is an underground line, the power charges will account for 35% of the operation and maintenance costs, once operational. It has also demanded waiver of wheeling charges and demand charges proposed by Tata Power stating that it is laying down its network.
Tata Power, in its petition, has proposed an increase in energy charges for metros from ₹4.90/kWh (kilowatt per hour) to ₹6.61/kWh in financial year 20-21. MMRC demanded that Metros be considered at par with railways where charges have been reduced to ₹3.75/kwH.
MMRC submitted its objection to Maharashtra Electricity Regulatory Commission (MERC) which undertook a public hearing on the proposed tariff hikes by Tata Power, BEST and Adani electricity on Tuesday. MERC is expected to release its final order in March.
A Tata Power spokesperson said, “We cannot comment on this as all tariff-related issues are decided by MERC as it falls under their purview.”