11.2.2 Fare Rate
The current average BTS bus fare per passenger - kms worked out to Rs. 1.75 (at October, 1997 price). Projected ridership is expected to materialize on the ELRTS with fare 2.2 times as much as the BTS average bus fare. As the fare structure and ridership is closely related, different fare rats will calculate other figures of ridership. For that reason, the above fixed fare rate has been used for the calculation of the fare box revenues during the project year.
11.3 Cost Estimate
11.3.1 Project Cost
The project cost were estimated by the JARTS study team as presented in Chapter 9 on this report. The cost of land required and customs duty on imports during construction of the project are not included in the project cost. Any replacement or reinvestment cost are not consider during the project life.
The project cost is estimated at 782,378 thousand Dollars or 27,383 million Rupees at October 1997 prices.
11.3.2 Operation and Maintenance Cost
No information has been obtained on the operation and maintenance costs for the ELRTS. The operation and maintenance costs have been estimate based on the costs ratio to the fare box revenues of the Japanese private railway lines in urban area as shown in Table 11.3-1. However, for the reason of higher labor cost in Japan , personnel expense account for 60% of all operation and maintenance expense. The component of the cost should be adapted to the needs for Bangalore. Considering the low labor cost in India, the ratio of the operation and maintenance costs will be estimated at 50 to 60% of the fare box revenues. The ratio of the operation and maintenance costs is assumed at 50% taking the lower cost in this calculation considering the case of light rail system.
