Kochi: With the government interest in Kochi Metro waning, the service is running into losses. The daily difference between income and expenditure is Rs 22 lakh, which amounts to Rs 6.60 crore a month.

The revenue generated from ticket sale is Rs 12 lakh, and income from other sources fetches Rs 5.16 lakh. However, the daily expenditure runs into Rs 38 lakh.

The only solace for Kochi Metro is that ticket sales haven't brought profits to any metro services operating in the country. Most of the other metros were able to find a foothold after three to four years of operations.

However, while other metro services are making money from several other sources, such an avenue for Kochi Metro has been blocked by the government, which is sitting on a plan to hand over 17 acres of land for a metro township project at Kakkanad NGO quarters for more than a year-and-a-half.

Metro township

Kochi Metro can break even only if 70,000 passengers use the service every day. At present, the number of people traveling by the Metro stands at 35,000-50,000 a day. Though there are attempts like Kochi One and discounts for daily commuters to increase the number of passengers, until the service is extended till Thrippunithura it is difficult to reach the figure of 70,000. Even then, it will only mean that the service can be run without any loss.

The metro will need funds for its future development. The metro contract and the new metro policy insist that all metros should have alternative modes of revenue generation.

The township will help generate additional income for the metro and the previous government had decided in a cabinet meeting to hand over the land for the purpose.

However, when the new government took charge, it was decided that the issue should be discussed by the cabinet, which is yet to happen. "The previous cabinet has approved, but the present cabinet is yet to see it," reads the note written by the public works secretary on the file.

The Kochi Metro Rail Ltd (KMRL) will be paying Rs 84 crore for the government land, with a plan to build flats that cost Rs 30-35 lakh, a shopping complex, multiplex, green space and an auditorium.

Delay to derail Metro

There is no point in getting the permission after considerable delay. By then, the gap between income and expenses will widen and the Metro will sink. In contrast, the Delhi Metro is operating two IT parks. Apart from the consultancy contracts of other metros, the profits for Delhi Metro come from the IT parks.

Chennai Metro and Bengaluru Metro too have been allotted plots for commercial use by respective governments. In Chennai, above the underground stations, big commercial projects are being built.

Will try for govt OK: Hanish

If the land for the township is not available now, the Kochi Metro's development prospects will be affected, says KMRL managing director APM Mohammed Hanish. Across the world, metro services are sustained by non-ticket revenues. The metro is a public transport facility. Ticket sales alone can't bring profits. We are trying to press the government for the release of the land, he said.

Read more: Latest Kerala news | 3 Plus One students killed in road accident near Adoor