DMRC Earning High from Property Development
Delhi Metro is not just making killing through ticket selling. For every Rs. 3 that Delhi Metro Rail Corporation (DMRC) earns by selling out tickets, Re. 1 comes from real estate development.
Out of Rs. 70 lakhs per day, which is its operating revenue, as high as 25% comes from property development and includes activities like leasing out commercial spaces, advertising, construction of shopping arcades, setting up of accommodation units, construction of IT parks etc.
The DMRC mopped up Rs 750 crore in the past few years from property development during the first phase I operations. The metro will undertake a number of projects worth Rs 18,000 crore as new lines in the Capital and NCR are added. The second phase is likely to be over by 2010.
Apart from our very own DMRC, the metros in other highly developed cities are making gains by much higher percentage from property development. As for Hong Kong Metro, it is earning more than 35-40% of its revenue from the same, says a DMRC official.
The Delhi Metro is planning to rent out more areas which will be utilized for the development of big intersections.
Such infrastructure projects offer high real estate potential. DMRC can certainly generate capital for its expansion by leveraging the property development prospects, says Sanjay Verma executive MD, Cushman Wakefield India Ltd.
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