JMC (Jaipur Metro Corporation)—one of the biggest fiscal failures of Rajasthan Congress is struggling hard to cope with losses sustained since its inception. From in-house power generation to fair hikes, the authorities have implemented every method to convert their losses into gains. Leasing out metro space for corporate advertisements is one such method to generate additional revenue. Unfortunately, the very idea failed to reap profits for the authorities. None of the buyers turned up to rent ad space in metro trains and stations, except one.
Jaipur Metro is Nothing but a Troublesome White Elephant—All Show and No Worth, for Rajasthan…
As per records, Jaipur Metro generated Rs 49,774 per day in June 2015. By December 2016, their earnings have dropped down to Rs 19,390. The total loss incurred last year was estimated as Rs. 70.44 lakh per month. Till date, the state has spent approximately Rs. 3.5 crores per month on Jaipur metro. Nevertheless, due to short-sighted vision of former Congress government, they failed to recover this amount.
Due to acute scarcity of funds, both JMRC and JMC (Jaipur Municipal Corporation) locked horns over metro space. Having experienced an unavoidable fall in ridership, JMRC wanted to use it for benefit, but they clearly failed to use this space for events and brand endorsements.
A couple of months back, the JMRC authorities proposed a public tender for rented ads. They invited bids from corporate houses however just one company participated in the bidding process. To top it, the prices quoted by the company were extremely low. Therefore, JMRC re-invited bids for the same. This time, two companies turned, one of which failed in terms of technical aspects. The winner of the bid was technically strong but quoted 40% low rates for their ads.
Contrary to this, just one company claimed ad space on Metro pillars, but they quoted 50% less rates probably because none of them wanted to be a part of metro’s multi-million loss.
When the company opened auction process for 9 stations, they invited 50 retail shops and were expecting revenue of Rs 9 crore per year. Nevertheless, their expectations went in vain.
Currently, the government is focusing on construction of Phase II so they can recover losses up to some extent. Meanwhile, they’ll formulate more viable strategies to ensure that Jaipur metro turns into a profitable venture in future.
