Transforming Bangalore's Urban Mobility: Facts about BMRCL

Bangalore Metro Rail Corporation Limited (BMRCL) is a joint venture equally owned by the Government of India (GoI) and the Government of Karnataka (GoK). It is primarily responsible for the construction and operation of the metro rail project in Bangalore. The Bangalore Metro has emerged as the second-longest metro network in the country.

Boarding’s at Namma Metro

During the Financial Year 2022-23, the Bangalore Metro recorded an average daily ridership of 4.86 lakh passengers. The addition of the Reach 1 Extension in March 2023, along with the establishment of connectivity between Baiyappanahalli Metro Station and K.R. Pura Metro Station, as well as the opening of Challaghatta Metro Station on October 9, 2023, created a seamless 43.30 km stretch for commuters. These developments significantly boosted ridership, increasing the average daily boardings to 6.36 lakh passengers in the Financial Year 2023-24.

Highest boarding and Revenue

On August 14, 2024, BMRCL achieved its highest-ever daily ridership, recording 9.17 lakh passengers and generating a record revenue of INR 234.62 lakh. This translates to an average revenue of INR 25.85 per passenger (234.62 ÷ 9.17). Notably, this milestone in ridership and revenue was accomplished without any special event, marking a significant achievement for the Namma Metro network since the commencement of its revenue operations.

Percentage contribution of type of tickets used by commuters

Previously, single-journey tickets were issued exclusively through tokens, requiring passengers to queue up each time, causing inconvenience. To address this, BMRCL introduced a mobile-based QR ticketing system available on Paytm, the Namma Metro Mobile App, and WhatsApp.

The WhatsApp chatbot (8105556677), a first-of-its-kind innovation in the global transit space, allows passengers to purchase single-journey QR code tickets conveniently. Travelers can validate these mobile QR tickets directly at Automated Fare Collection (AFC) gates without standing in queues. The chatbot supports both Kannada and English, enhancing accessibility. Currently, 11% of commuters use mobile QR codes for ticket bookings.

Additionally, BMRCL has deployed QR Ticket Machines at select metro stations, enabling passengers to purchase QR paper tickets using UPI payments. These self-service kiosks help reduce the load on ticket counters. At present, 14 machines are operational on a pilot basis at M.G. Road and Cubbon Park Metro Stations.

Rental income derived by BMRCL

BMRCL has earmarked spaces across 24 metro stations, covering a total area of 1,50,000 sq. ft, to establish and operate commercial outlets at 100 locations. Currently, 57 outlets have been allotted at prime spots within various stations, generating a revenue of INR 2.60 crore during the year. This equates to an annual rent of INR 4,56,140 per outlet (2,60,00,000 ÷ 57), translating to an average monthly rent of INR 38,000 per outlet.

Additionally, 68 ATMs are operational within metro stations, contributing an annual revenue of INR 3.17 crore. This amounts to an annual rent of INR 4,66,176 per ATM (3,17,00,000 ÷ 68), or an average monthly rent of INR 39,000 per ATM.

Parking revenue

BMRCL has allocated parking spaces at metro stations to facilitate convenient travel for commuters by allowing them to park their vehicles and use the metro network. A total area of 1,09,995 sq. meters has been designated for parking, accommodating 14,531 two-wheelers and 2,641 four-wheelers regularly.

In the Financial Year 2023-24, BMRCL generated a revenue of INR 13.07 crore from parking. This corresponds to an average annual revenue of INR 1,180 per sq. meter (13,07,00,000 ÷ 1,09,995) or approximately INR 3.36 per sq. meter per day (1,180 ÷ 365).

Manpower Overview as of 31.03.2024

• The Project Wing employed a total of 884 personnel, including 3 Functional Directors.
• The Operations & Maintenance (O&M) Wing had 1,429 regular employees.
• The combined workforce across both wings stood at 2,313.

Representation of Women Employees

BMRCL employed 462 women, accounting for nearly 20% of the total workforce (462/2,313). Of these:

• 103 women were part of the Project Wing.
• 359 women were employed in the O&M Wing.

Employer Contributions to Employee Benefits for FY 2023-24

• BMRCL contributed INR 52 lakh to the Employees’ Provident Fund (EPF).
• For employees enrolled in the National Pension System (NPS), the contribution amounted to INR 22.62 crore.
• The total outflow towards EPF and NPS contributions for the year was INR 23.14 crore

Value of land held by BMRCL

The book value of land held by BMRCL as of 31.03.2024 stands at INR 10,042.45 crore (approximately INR 10,042 crore).

International borrowings by BMRCL

The following international lenders have provided funding to BMRCL for the construction of metro projects in Bangalore:

BMRCL's total borrowings amount to INR 14,414 crore. Of this, 76% represents loans from international lenders, calculated based on the prescribed foreign exchange conversion rate.

IKEA has opened a large store near Nagasandra Metro Station in Bangalore. Who provided IKEA with such a vast land parcel?

BMRCL has leased a 13 acres and 36 guntas plot of vacant land to IKEA on a long-term basis for 60 years, effective from May 31, 2017. IKEA paid a non-refundable upfront fee of INR 251 crore, which is amortized over the 60-year lease period. In simple terms, this means IKEA is effectively paying an annual rent of INR 4.18 crore (251/60) for the duration of the lease. Since the fee is non-refundable, BMRCL is not obligated to repay the INR 251 crore to IKEA.

As per the contract, IKEA is also required to pay a recurring fee of 1% of the upfront fee, amounting to INR 2.51 crore per year. This recurring fee is subject to a 5% escalation, meaning it will increase by 5% after a specified period.

In total, BMRCL earns over INR 6.70 crore annually from IKEA (INR 4.18 crore + INR 2.51 crore). Additionally, BMRCL has granted IKEA permission to create direct access to the store from Nagasandra Metro Station via a foot overbridge.

Innovative Financing Scheme – Corporate/Foundation Part Funding for Metro Projects

BMRCL has reached out to several major corporations for partial funding of metro station and corridor construction through innovative financing methods.

The Infosys Foundation was the first to respond, providing a grant of INR 100 crore for the construction of the Konappana Agrahara Metro Station on the R.V. Road to Bommasandra Metro Corridor.

The BIOCON Foundation also committed a grant of INR 65 crore for the construction of the Hebbagodi Metro Station.

In recognition of their contributions to public infrastructure, the Government has approved the naming of Konappana Agrahara Metro Station as the "Infosys Foundation Konappana Agrahara Metro Station" and Hebbagodi Metro Station as the "Biocon Hebbagodi Metro Station."

The table below outlines the Memoranda of Understanding (MoUs) signed with corporates and foundations in FY 2022-23 for providing concession fees towards the construction of metro stations and corridors.

When metro connectivity is established to a business tech park, the landlord benefits from the ability to charge higher lease premiums and increase the building's occupancy rate. This incentive has led Embassy to contribute an impressive INR 240 crore as a concession fee for the construction of a metro station near their business tech parks.

In FY 2022-23, BMRCL signed an MoU with the International Tech Park, Bengaluru (ITPB) to establish connectivity from Pattandur Agarahara Station to the ITPB campus, with a concession fee of INR 10 crore.

A similar agreement was made with BOSCH to provide direct access to its premises from the concourse level of the Lakkasandra UG Metro Station, located directly in front of BOSCH's facilities. BOSCH will bear the cost of constructing the station access infrastructure, such as the underground walkway. This direct access will help alleviate traffic congestion in the area and facilitate smoother commuter movement.

In FY 2023-24, BMRCL earned INR 28 crore through such innovative financing arrangements.

Conclusion

In conclusion, BMRCL’s strategic initiatives, including innovative financing schemes, corporate partnerships, and infrastructure development, are playing a crucial role in enhancing the metro network and promoting urban mobility in Bangalore. With continued investments and collaborations, BMRCL is poised to further improve the commuting experience, ease traffic congestion, and support the city’s development into a world-class metro network.

Sources
Annual Reports published by BMRCL