Chennai monorail to have dynamic fares

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    Chennai monorail to have dynamic fares - The Times of India
    Karthikeyan Hemalatha,TNN | Feb 11, 2014, 01.10 AM IST

    CHENNAI: The transport department has come up with a dynamic fare structure for the upcoming monorail project. The base fare has been set at Rs 10 for 2km, and the operator can charge up to 25% extra during peak hours.

    The operator can designate only four hours a day as peak hours, and he can offer discounts during off-peak hours. "To avoid doubt, the differential fare shall be with reference to the time of entry of the user in the respective train," read the fare notification from the transport department.

    Sources in the department said dynamic fares are a way to provide operators incentives to put their own money into the project. "Unlike metro rail, monorail is built on a PPP (public private partnership) model. So we have to give the operator some freedom to decide fares," said a source from the department.

    The project is being executed under design, build, finance, operate and transfer ( DBFOT) scheme and the funds required are estimated to be Rs 16,650 crore. Of this, the government has agreed to pay Rs 970.5 crore to the operator as a grant. If there is a change in the current alignment and project cost, the proportion of grant may increase or decrease.

    While the minimum fare will be Rs 10 for up to 2km, the implementing agency will be allowed to charge Rs 13 for journeys between 2km and 4km, Rs 15 for 4km to 6km, Rs 18 for 6km to 9km, and Rs 20 for 9km to 12km. For journeys between 12km and 15km, the fare will be Rs 22.

    This is expected to be the base fare when the system comes into operation, but the operator can revise fares by 5% every year. For example, if the system is commissioned on April 1, 2018, the first fare revision on April 1, 2019 will be to Rs 10.5 for 2km. The fares will be revised every April 1. This will be an automatic procedure and does not require a government notification every year. "The base fares have been set following recommendations from the planning commission. It is a simple formula that takes into account the base fare and price index of the week as well as the year," said a source from the department.

    Once metro rail fares are announced, the contractor has to ensure that monorail fares are not lower. "This is because per passenger cost of monorail is higher," the source added. Metro rail is likely to notify its fares in two months, sources said.
     
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