Displeased over profit sharing, Delhi Development Authority (DDA) has put impediments in Delhi Metro’s plans to generate revenue through property development in East Delhi. The Authority’s board of members has decided to ask Delhi Metro Rail Corporation (DMRC) to submit an affidavit declaring that it cannot develop any property on the DDA land for upcoming Mukundpur to Yamuna Vihar corridor. The members have also decided that the Corporation should submit an undertaking that the construction work for the proposed Metro stations can only start if it has received requisite clearance from the environment ministry.
Senior officials with DDA said that DMRC is generating a lot of revenue through property development alone. “It has been decided to disallow Delhi Metro for property development on the DDA land falling on the upcoming Mukundpur corridor. Delhi Metro has been asked to submit an affidavit stating that it should not resort to any means of commercial development outside Metro stations beyond Mayur Vihar. While DMRC can utilise the station premises to generate revenue, the land outside the Metro stations should only be used for transport-related activities such as parking or bicycle renting space,” said a senior official with DDA.
Sources said that DDA is unhappy with the Corporation’s inflexibility to share its profits generated from the property development. Sources said that the Authority wanted 50 per cent of the profit share out of the property development outside the metro stations, as they are the prime locations for any commercial activity due to the footfall. “It has been agreed by the board of members that the contents of the affidavit should state clearly that DMRC should not exert any pressure on DDA in future with any demands for the commercial activity outside the Metro stations,” he added.
Delhi Metro on its side said that they do not develop properties outside every station. At present, Delhi Metro had developed Parsvanath Mall outside the Rohini Metro station, among others.
Delhi Metro had earlier said that it has been making an operating profit from Day One and this has been possible by placing an emphasis on revenue generation through means other than just fare collection and DDA’s decision can have serious implications on the corporation’s plans to increase its profit share.