1. Home
  2. Infrastructure Transport
  3. RAILWAYS & METRO RAIL
  4. UP Metro Rail Corporation Records Rs.17 Bn Loss in FY23
UP Metro Rail Corporation Records Rs.17 Bn Loss in FY23
RAILWAYS & METRO RAIL

UP Metro Rail Corporation Records Rs.17 Bn Loss in FY23

13 Aug 2024 2 Min Read CW Team
The Uttar Pradesh Metro Rail Corporation (UPMRC) has reported a substantial loss of Rs.17 billion for the financial year 2023, marking a challenging period for the state's metro operations. This financial strain comes amid the ongoing expansion of metro services in cities like Lucknow, Kanpur, and Agra.

The losses are attributed to various factors, including high operational costs, significant capital expenditure on expanding infrastructure, and the economic impact of the COVID-19 pandemic. UPMRC has been heavily investing in new metro lines and upgrading existing ones to meet the growing demand for urban transportation. However, the revenue generated from passenger fares and other sources has not been sufficient to offset these costs.

The gap between operating expenses and revenue collection has widened, with lower-than-expected ridership and fare revenues contributing to the deficit. The UPMRC's ambitious expansion projects have also led to increased borrowing, adding to the financial burden. The ongoing construction of metro corridors in Kanpur and Agra, which are still in their initial phases, has further strained the corporation's finances.

In response to these challenges, UPMRC is exploring various strategies to improve its financial health. These include increasing ridership through better services and connectivity, enhancing non-fare revenue streams such as commercial activities and advertising, and seeking additional financial support from the state and central governments.

Despite the current financial challenges, UPMRC remains committed to expanding and modernising its metro network to provide efficient and reliable public transportation in Uttar Pradesh's major cities. The corporation is optimistic that with strategic financial planning and increased ridership, it will be able to turn around its financial performance in the coming years.

The Uttar Pradesh Metro Rail Corporation (UPMRC) has reported a substantial loss of Rs.17 billion for the financial year 2023, marking a challenging period for the state's metro operations. This financial strain comes amid the ongoing expansion of metro services in cities like Lucknow, Kanpur, and Agra. The losses are attributed to various factors, including high operational costs, significant capital expenditure on expanding infrastructure, and the economic impact of the COVID-19 pandemic. UPMRC has been heavily investing in new metro lines and upgrading existing ones to meet the growing demand for urban transportation. However, the revenue generated from passenger fares and other sources has not been sufficient to offset these costs. The gap between operating expenses and revenue collection has widened, with lower-than-expected ridership and fare revenues contributing to the deficit. The UPMRC's ambitious expansion projects have also led to increased borrowing, adding to the financial burden. The ongoing construction of metro corridors in Kanpur and Agra, which are still in their initial phases, has further strained the corporation's finances. In response to these challenges, UPMRC is exploring various strategies to improve its financial health. These include increasing ridership through better services and connectivity, enhancing non-fare revenue streams such as commercial activities and advertising, and seeking additional financial support from the state and central governments. Despite the current financial challenges, UPMRC remains committed to expanding and modernising its metro network to provide efficient and reliable public transportation in Uttar Pradesh's major cities. The corporation is optimistic that with strategic financial planning and increased ridership, it will be able to turn around its financial performance in the coming years.

Next Story
Infrastructure Transport
22 Nov 2024

Odisha to Get Kharagpur-Visakhapatnam Expressway Soon: Minister

A new greenfield highway connecting Kharagpur in West Bengal and Visakhapatnam in Andhra Pradesh, passing through Odisha, is set to be constructed soon. This expressway is poised to become a vital logistics corridor, enhancing high-speed transportation in the region. Works Minister Prithviraj Harichandan shared that preliminary preparations for the project have already commenced. He emphasised that the expressway would play a crucial role in the Gati Shakti Framework of the Central government, describing it as a groundbreaking initiative in road construction for Odisha. Greenfield roads typi..

Read More
Next Story
Infrastructure Urban
22 Nov 2024

LTTS wins project to develop smart cities in Colorado USA

Mid-sized Indian IT services company L&T Technology Services (LTTS) announced on Monday a strategic partnership with the Colorado Smart Cities Alliance (CSCA) to develop smart city projects across Colorado by integrating innovation and technology. In a regulatory filing, LTTS stated that the collaboration would utilize its advanced engineering expertise to support CSCA's mission of enhancing urban living and creating sustainable ecosystems through smart city solutions. The partnership aims to develop sustainable, efficient, and technologically advanced communities by pooling resources and exp..

Read More
Next Story
Infrastructure Transport
22 Nov 2024

Bengaluru Metro to Expand to 175 km by 2026, Boosting Urban Mobility

Bengaluru’s metro network is set for a major expansion, aiming to extend its total length to 175 km by 2026. This ambitious project is part of the Namma Metro initiative, designed to improve connectivity across the city, alleviate traffic congestion, and promote sustainable urban mobility. The expansion involves constructing new metro corridors, such as the Purple Line and the Outer Ring Road-Airport Line, which will link major city hubs, commercial centres, and residential areas. This development is expected to enhance accessibility for commuters throughout Bengaluru. A key highlight of t..

Read More

Opinion Poll

Question : Which technological advancement do you believe will most transform the real estate industry in the coming years?

Latest updates

Odisha to Get Kharagpur-Visakhapatnam Expressway Soon: Minister
ROADS & HIGHWAYS
22 Nov 2024

Odisha to Get Kharagpur-Visakhapatnam Expressway Soon: Minister

LTTS wins project to develop smart cities in Colorado USA
SMART CITIES
22 Nov 2024

LTTS wins project to develop smart cities in Colorado USA

Bengaluru Metro to Expand to 175 km by 2026, Boosting Urban Mobility
RAILWAYS & METRO RAIL
22 Nov 2024

Bengaluru Metro to Expand to 175 km by 2026, Boosting Urban Mobility

Chennai Metro finishes piling work from Kodambakkam Powerhouse to Porur
RAILWAYS & METRO RAIL
22 Nov 2024

Chennai Metro finishes piling work from Kodambakkam Powerhouse to Porur

Ambuja, ACC stocks plunge after Gautam Adani's US indictments
ECONOMY & POLICY
22 Nov 2024

Ambuja, ACC stocks plunge after Gautam Adani's US indictments

Rajasthan govt and Centre to jointly run extended Jaipur Metro lines
RAILWAYS & METRO RAIL
22 Nov 2024

Rajasthan govt and Centre to jointly run extended Jaipur Metro lines

Hyderabad Civic Body Demolishes Five-Storey Building in Gachibowli
Real Estate
22 Nov 2024

Hyderabad Civic Body Demolishes Five-Storey Building in Gachibowli

Hill highway project to finish by 2026, says PWD minister
ROADS & HIGHWAYS
22 Nov 2024

Hill highway project to finish by 2026, says PWD minister

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000