Chennai monorail to have dynamic fares
Posted on: 11/Feb/2014 5:10:52 PM
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. He can also offer discounts during off-peak hours.
Dynamic fares are a way to provide operators incentives to put their own money into the project. Monorail is built on a PPP (public private partnership) model. So the operator is given some freedom to decide fares.
The project is being executed under design, build, finance, operate and transfer ( DBFOT) scheme. The cost is Rs 16,650 Crores. The government will pay Rs 970.5 Crores to the operator as a grant.
The minimum fare will be Rs 10 for up to 2 km,. 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.
The operator can revise fares by 5% every year. The fares will be revised every April 1.
