Delhi Metro may incur Rs 700 cr loss

The Delhi Metro may end up in a loss of Rs 700 crore (Rs 7 billion) in the next fiscal due to a high depreciation cost although it expects to generate a revenue of Rs 1,231 crore (Rs 12.31 billion).

The Metro expects to cough up Rs 1,026 crore (Rs 10.26 billion) through operations during 2010-11 financial year, besides another Rs 205 crore (Rs 2.05 billion) through property development, DMRC director (finance) R N Joshi said.

However, he said, the Metro may end up in a loss of around Rs 700 crore in the fiscal. "Our projected expenses for the next fiscal is Rs 987 crore (Rs 9.87 billion) while the interest cost is Rs 200 crore. The depreciation cost is valued at Rs 757 crore (Rs 7.57 billion)," Singh said.

The projected revenue is based on calculations that the Metro will get a ridership of 18.27 lakh per day. Singh said the proposed third phase of Delhi Metro may cost Rs 14,500 crore (Rs 145 billion).

"We have sent a proposal to the government. We are trying to get loan from Japan Development Bank. A team from the bank hase come. But from our sources, we have learnt that they are not reluctant to give loan to us," he said.

He said the Metro has no plans to float Initial Public Offer (IPO) for the time being. Singh also said a combined ticket for DTC and Metro as well as an integrated ticketing system for the Metro and its feeder services may materialise soon.