CMRL has now begun licensing out commercial space!!
Posted on: 10/Feb/2023 9:29:44 AM
Making hay while the sun shines!!
This is what CMRL is doing right now in Chennai. The footfalls are increasing now in the metro trains and more localities are linked with the phase-2 network. The time is right and CMRL has started to license out commercial space, advertising rights at the metro stations plus semi naming rights at phase-1 stations to generate more revenue.
It must be noted that previously CMRL could not find any takers for setting up of shops at the metro stations and that was due to poor patronage and high rates etc. A series of tenders has been floated by CMRL looking for brands to set up shops, advertise in its premises. This included renting out commercial space of about 11055 sqm in area in 26 metro stations and advertising as well as semi naming rights at 16 metro stations in Chennai.
Despite several attempts made by CMRL to find occupants for its rental space, CMRL could not find any bidders. Poor patronage has been cited as the main reason for this. The commercial space at many metro stations in Chennai remained empty except for a few stations like Shenoy Nagar, Thirumangalam and Alandur etc.
During 2019-2020, CMRL generated a revenue of Rs 37.3 crores from the development of their business and this reduced to Rs 35 cr during 21021-2022. In 2020-2021,when CMRL suspended its operations due to Coronavirus pandemic induced lockdown it generated a revenue of Rs 17 cr from the business development.
As per Mr. L. Girirajan, CMRL spokesperson, when the rates were high, tenders were cancelled by the CMRL and the renders would be re-opened in March and in April 2023. It is noteworthy that last year the footfalls crossed a daily average of 2lakhs for the first time and touched 2..5lakhs in the festival season.
