World Bank Document - Mumbai Railway Vikas Corporation Ltd ...

proposed study will prepare a set of proposals for the staged expansion of network capacity of
Mumbai suburban rail system (integrated with other modes) and improvement of the quality of
service to passengers to provide for seamless convenient travel by public transport. Key
investments proposed for investment after this project in the period 2016 -2021 will then be the
subject of a pre-Feasibility Study. The output of this study would be a costed, time based
development plan for the suburban rail system to the year 2031, and a pre-feasibility study of the
investments proposed for the period 2016 – 2021. The study will be implemented by MRVC.
Target Completion Date: By October 2013. Proposed cost: US$5.4 million.
2. Provision to support the development of the Indian Railways long term strategy
for Suburban Rail
116. The recently produced Indian Railways’ Vision 2020 document includes a strategy
for suburban rail services. This technical assistance includes a provision for a series of studies
and advisory services to assist Indian Railways in developing the suburban services dimension of
their long term strategy. This effort will include consideration for replication to other cities of the
model developed with MRVC in Mumbai. It will also include considerations of institutional and
policy improvements to improve further the efficiency of Mumbai suburban rail services and
their better integration within the overall regional urban transport system. Mumbai study will in
particular take into account the physical segregation that will be achieved at the end of MUTP-
2A and B between suburban and national passenger tracks. This technical assistance will be
procured by MRVC and managed by the Indian Railway Board. Target Completion Date: By
June 2014. Proposed cost: US$1.6 million.
3. Revenue maximizing study in particular for non-fare box revenues with
affordability study
117. At present, most of the revenue on the suburban rail system comes from the sale of
tickets. This revenue is insufficient to cover operating costs and the growing financial gap is
covered by financial transfer from other rail business segments. The study will examine potential
non-fare revenues including from advertising, rental of commercial spaces at stations and
property development at stations and on other railway land (talking account to the study
undertaken in MUTP-1). The potential for indirect user charges will also be examined, including
payroll taxes and increased property taxes in areas around stations (taking account of work
carried out as part of the TranSforM Study). The study will also review the socio-economic
profile of customers and examine the justification for financial cross-support from other
economic agents as well as the potential for fare adjustment in relation with affordability and
service quality. The output of the study will be a strategy to improve the financial sustainability
of the Mumbai suburban rail operation and a suggested list of options, with estimates of potential
revenue, a pre – FS level costed and time based implementation schedule, including any
institutional and regulatory changes that may be required. The study will be procured by MRVC
and managed by Indian Railway Board. Target Completion Date: By October 2013. Proposed
cost: US$1.1 million.
(b) Tactical programs for improving passenger convenience and information
4. More efficient and user friendly ticket issuing
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