6 months ago
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As portion of its efforts to commercially make metro presumption onshore and boost non-fare gross done spot monetisation, the Bangalore Metro Rail Corporation Ltd. (BMRCL) has floated a tender to name a Transaction Advisor (TA) for the improvement of onshore parcels adjacent the Swami Vivekananda Road (S.V. Road) Metro Station.
The BMRCL is actively pursuing the improvement of onshore astir its metro stations into commercialized buildings, bureau spaces, and retail hubs to make important non-fare gross and enactment metro operations, according to officials.
“These Transit-Oriented Development (TOD) projects are aimed astatine integrating mobility with concern activities by creating mixed-use hubs comprising offices, malls, and parking facilities, thereby reducing dependence connected farebox collections,” an authoritative said.
As portion of this initiative, the BMRCL is readying to make onshore adjacent the S.V. Road Metro Station connected the engaged Old Madras Road successful East Bengaluru. According to the Request for Proposal (RFP) issued by the BMRCL, the selected advisor volition beryllium liable for conducting a elaborate feasibility study, structuring the task nether a Public Private Partnership (PPP) model, and managing the bid process until the grant of concession and signing of the statement with a backstage developer.
Why BMRCL is pushing non-fare revenue
Farebox postulation (2023–24): ₹573.91 crore
Property-related income: ₹50.05 crore
Share of non-fare revenue: 8.72%
Key non-fare sources:
Property development
Advertisements
Kiosks and store rentals
Parking fees
Station naming rights
Train wrapping
Two towers projected astatine S.V. Road Metro Station
“The projected improvement tract measures 8,063 sq. metres, with a permissible Floor Area Ratio (FAR) of four, allowing a built-up country of implicit 32,000 sq. metres. The task besides includes an further vacant onshore parcel of 3,225.73 sq. metres,” the authoritative added.
As per preliminary plans disposable with the BMRCL, the improvement whitethorn dwell of 2 towers- 1 with 18 floors and different with 9 floors- on with aggregate basement levels for parking and services.
Under the scope of enactment outlined successful the RFP, the transaction advisor volition archetypal undertake a broad feasibility assessment, including tract analysis, marketplace request study, task conceptualisation, and fiscal modelling. The advisor volition besides measure assorted PPP options, place risks, and urge the astir suitable task structure.
“As portion of the process, the advisor volition behaviour market-sounding exercises with imaginable developers, investors, and lenders to trial the project’s bankability and refine bidding parameters. Based connected these inputs, the advisor volition hole bid documents, including the petition for proposals and draught concession agreement, and assistance the BMRCL done the full bidding process,” the authoritative explained.
BMRCL to boost non-fare revenue
Besides the S.V. Road Metro Station, the BMRCL was readying akin onshore improvement initiatives astatine the Majestic interchange station, Nagawara Metro Station connected the Pink Line, and K.R. Pura, portion besides exploring onshore utilisation opportunities astir different metro stations.
In 2017, the BMRCL entered into a semipermanent lease statement with IKEA for onshore adjacent the Nagasandra Metro Station. Under the agreement, the IKEA paid a non-refundable upfront interest of ₹251 crore, portion the BMRCL earns an yearly income of astir ₹2 crore from the lease, which has a tenure of 60 years.
The Fare Fixation Committee (FFC) report, which recommended the arguable fare hike of up to 71% implemented successful February 2025, emphasised the value of strengthening non-fare revenue. The FFC study released successful September 2025 pursuing months of hold and nationalist unit revealed that the BMRCL’s farebox net successful 2023-24 were ₹573.91 crore, portion property-related income was a specified ₹50.05 crore, oregon 8.72% of fare revenue.
According to the FFC report, the BMRCL supplements farebox income done spot improvement and non-fare sources specified arsenic advertising, kiosks, parking, presumption naming, and bid wrapping.
