DMRC plans to monetise space on airport express line
Delhi Metro Rail Corporation is planning to use the available spaces along the Airport Express Line station, for commercial purposes, in order to shore up non-traffic revenues.
A number of high-class amenities and services are provided to the commuters on this line, including wi-fi services and check-in facilities. Currently, the daily ridership of the airport express line is about 15,000 against the prediction of 40,000. This has made it hard to continue a smooth service as the cost of running the line far exceeds the income it generates through the services provided.
As per market reports, a six month plan has been prepared by Delhi Metro Rail Corporation for monetizing the land at metro stations along the Orange Line. According to the plan, shopping malls and other commercial areas would be set up in major stations like Shivaji Stadium and New Delhi. This would assist in popularizing the line and in increasing the ridership along the route, eventually adding on to the revenue generated.
The Airport Express Line metro (Orange Line) which links the Indira Gandhi International Airport, stretches a length of 22.70km and connects New Delhi station to Dwarka Sector 21. Delhi Airport Metro Express Pvt. Limited (DAMEL) was the concessioner of the line, which was opened by it in 2011, after missing 4 deadlines that were provided by DMRC.
Delhi Airport Metro Express Pvt. Limited was a Special Purpose Vehicle (SPV) created by Reliance Infrastructure Ltd, to develop, operate and maintain India’s first Airport Express Line in the country, on a public-private partnership (PPP) model. Except for the civil works for viaduct, tunnel and stations, the rest of the project was carried out by the concessionaire.
Out of the 22.7km of the metro line, 15.7 km is constructed underground and the stretch from Buddha Jayanti Park to Mahipalpu, which covers a distance of 7km. is elevated. The trains along the Orange Line speed at a distance of about 135km/hr and hence, it takes less than 20 minutes to reach the IGI airport T3, from Delhi.
Earlier last month, Reliance Infrastructure Ltd informed that the SPV would be unable to operate the line beyond 30 June 2013 and exited the operations. As per a public notice issued by Reliance, the termination clause was invoked as DMRC persistently failed to look into the substantial defects in the civil structure designed and built by it. DAMEPL has claimed a termination payment of about Rs 2,800 crore from DMRC, saying it needs to be paid equivalent to 130% of equity and the entire remaining debt. The dispute regarding termination of Concession Agreement has been referred to arbitration and while DMRC took over charge of the line from 1st July 2013 and deployed about 100 officials in the Operations and Maintenance team to handle the line.
