Mumbai Monorail Faces Mounting Losses of INR 529 cr

Mumbai’s iconic monorail, operating on the Jacob Circle-Wadala-Chembur line, is grappling with financial crisis, with anticipated losses of INR 529 crore in the current financial year. This beleaguered mass transportation system has become a significant burden on the Mumbai Metropolitan Region Development Authority (MMRDA).

Officials from MMRDA have announced their contemplation of procuring 10 new monorail rakes and making infrastructure upgrades at stations. The Authority has been incurring losses with INR 255 crore reported in the 2022-23 fiscal year. In the same year, the monorail’s earnings amounted to a mere INR 7.50 crore, although authorities expect this figure to rise to INR 13.64 crore in 2023-24. However, this expected revenue comes with a considerable expenditure of INR 542 crore, including the cost of acquiring the new rakes.

MMRDA is scrutinising the monorail’s operations and expenses, aiming to identify cost-saving measures, optimise services based on demand, and minimise unnecessary spending. Currently, the monorail operates approximately 200 services daily with 10 rakes, serving a ridership of 9,000-10,000 passengers per day.

Efforts are underway to enhance connectivity between the monorail and the railway system by constructing travelators that will link Jacob Circle and Mahalaxmi railway station. The government authorities have acknowledged the monorail’s struggles since its inception in 2014. Despite its integration into urban development, real estate developers have reaped the benefits, while MMRDA has not enjoyed a similar advantage.

The decision to invest in new rakes and infrastructure upgrades is pivotal to its future, and discussions with government authorities will be critical in determining the path ahead.