NEW DELHI: The Delhi Metro has achieved a remarkable revenue milestone of six hundred crores from the commercial utilization of its property during the initial phase of the Metro venture.
This incredible revenue generation is nearly double the aimed target, attributed to soaring prices in the commercial real estate market and a rising demand from both the retail sector and IT firms. Encouraged by this exceptional response, officials from DMRC are optimistic that the overall revenue accrued from property development is likely to touch Rs 1,000 crore within the coming years.
Revenues sourced from the commercial exploitation of unoccupied land comprise about 30% of DMRC's total operating revenues. Back in the financial year 2007-08, the firm reported a total operating revenue of Rs 327 crore, which reflected a robust increase of 28% compared to Rs 256 crore achieved in the previous fiscal year 2006-07.
"The revenue generated from property development in the first phase of the metro project will boost our internal reserves, which will, in turn, finance the subsequent phase of the Metro project. However, there remain vacant spaces that could still be commercially exploited under phase-I, and we anticipate that total revenues from these activities will escalate to Rs 1,000 crore. In the second phase, analogous property developments will be initiated, with a revenue generation target of Rs 405 crore from this segment," a DMRC source stated.
The property development already embarked upon has involved awarding 6-12 year licenses for spaces within station buildings to various commercial vendors such as ATMs, kiosks, refreshment outlets, and magazine stalls. Furthermore, shopping malls are being developed on a license basis for a period of 12 years in station buildings that facilitate larger concourses.
Notably, such malls have been successfully established at Inderlok, Netaji Subhash Place, and Kashmere Gate stations. Additionally, DMRC has initiated an IT park at Shastri Park station, which has been leased to ITES operators. Outside Shahdara and Inderlok stations, the company has also commenced several residential and commercial developments, executed through developers under a concession term extending for 30 years.