Rs 600 Crore Revenue Generated By Delhi Metro In Ist Phase

NEW DELHI: Delhi Metro has produced six hundred crore revenue from the commercial use of its property during the first phase of the Metro project.
The real revenue generation is approximately double the target, thanks to skyrocketing commercial property prices and growing demand from retail sector and IT companies. Buoyed by the excellent response, DMRC officials expect that total revenue from property development would reach Rs 1,000 crore in a few years.
Earnings from commercial use of vacant land constitute around 30% of the total operating revenues generated by DMRC. In 2007-08, the company reported total operating revenue of Rs 327 crore, a 28% increase from Rs 256 crore in 2006-07.
“The revenue generated from the property development in the first phase of the metro project will contribute to our internal accruals, which will be used to finance the next phase of the Metro project. Still, there are some unoccupied areas that can be commercially used under the phase-I and we expect the total earnings from such commercial activity to reach Rs 1,000 crore. In the second phase, similar property development will be undertaken and we have targeted a revenue generation of Rs 405 crore from the same,” said a source.
Property development undertaken so far includes 6-12-year licence awarded for the spaces within station buildings for commercial related vendors such as ATMs, kiosks, refreshment and magazine stalls. Similarly, shopping malls have also been set up through developers on a license basis for the period of 12 years inside station buildings which have larger concourses.
Such malls have already come up at Inderlok, Netaji Subhash Place and Kashmere gate stations. DMRC has set up an IT park at Shastri park station which has been rented out to ITES operators. The company has undertaken some residential and commercial developments outside Shahdara and Inderlok stations through developers on a concession period of 30 years.

2 Comments

riathareja

Posted May 22, 2008 at 12:57 am | Permalink

Rentals of residential properties in central Delhi has appreciated up to 13 per cent in the first quarter of 2008 as demand continues to be buoyant despite the capital witnessing saturation in development of new space. Demand in these locations was driven by expatriates who have the ability to pay higher rentals. Majority of the south Delhi locations registered an increase in the range of 7-11 per cent primarily due to limited scope of development and buoyant demand. Leasing activities were active across all micro-Markets as the end-users had deferred their purchase decisions due to expected corrections in the prices in near future. The capital values of the south Delhi locations had also risen in the range of 10-34 per cent over the quarter mainly due to limited supply and relatively high demand. The suburban locations of Gurgaon and Noida witnessed marginal appreciation of 2 per cent over the quarter. End-users as well as investors have adopted a wait and watch policy in anticipation of correction in apartment prices and home loan interest rates.For more view- realtydigest.blogspot.com
Neeraj

Posted June 11, 2008 at 5:23 am | Permalink

Yes after the new implementations in the metro level journey can be take through use of the credit cards which is very easy to be the all person and the other phase which have been started as early as possible to Gurgaon which will be more attractive to be the customers.

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