Thursday, 23 July 2015

Railways must exploit real estate, besides fare hike


The railway ministry and the state government need to look for out-of-the-box solutions, including a fare hike, exploitation of real estate and subsidies to shore up finances of the suburban railways, which cater to almost 75 lakh passenger per day.

Affordability and sustainability are key to ensuring commuters are willing to pay the right fare and the operator is able to run the services without compromising on safety, maintenance and comfort.

A fare hike is a solution but not panacea for all ills. An official said, "A survey revealed that commuters are comfortable with only a 15% hike. This should be the first step, even though it will give us Rs 250-300 crore more, which still leaves the suburban railways with a loss of around Rs 800 crore."

The official said the railways was subsidizing the cost of private enterprises by charging low fares. He said, "If higher fares are charged, traders and corporates will have to increase conveyance allowance to retain their workforces."

Mumbai is the costliest city in terms of real estate but the railways has failed to exploit its potential.

Read entire article on http://goo.gl/qRWSlu

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MCHI-THANE has always been very clear that fine housing complexes and shopping malls cannot stand in isolation. A great City is the sum total of great buildings, great infrastructure and great people. MCHI has been committed to growth of the real estate sector and is credited with the harmonious growth and rise in quality and standards of construction in Thane City in the past decade.


Its aim as an Association of Developers has been to seek rational rules and regulations which are uniformly applied across the board as this will to a great extent result in speedy construction, cost reduction, fair pricing and a push for better quality standards at par with the developed world, with a high level of transparency.


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