Bengaluru Metro Fare Set to Rise Annually Starting February 2026

Bengaluru’s Namma Metro passengers will face an annual fare increase of up to 5% beginning in February 2026. This decision follows the recent report released by the Fare Fixation Committee (FFC), which has raised concerns among commuters already impacted by a substantial fare hike in February 2025.

The Bangalore Metro Rail Corporation Limited (BMRCL) had previously raised ticket prices by as much as 71.43%, making Namma Metro the most expensive metro service in India. This marked the first fare increase since June 2017. The BMRCL implemented the new fares after fully accepting the FFC’s recommendations, which are binding under Section 33 of the Metro Railways (Operations and Maintenance) Act, 2002.

The FFC, established for the first time in Namma Metro’s history, submitted its findings on December 16, 2024. Headed by Justice (retired) R Tharani, the committee consisted of three members. Initially, the BMRCL sought a fare increase of 105.15%, equating to a 14.02% year-on-year rise before discounts, which would have set minimum fares at Rs 21 and maximum fares at Rs 123. However, the FFC ultimately recommended a more moderate fare increase of 51.5%, or 6.87% year-on-year, adjusting the new minimum fare to Rs 10 and maximum fare to Rs 90.

As part of its financial strategy, the BMRCL has requested an annual automatic fare revision based on a transparent formula. This is intended to improve its operating ratio continuously. Without these adjustments, the BMRCL forecasts a net loss of Rs 577 crore in the financial year 2029-30. The financial outlook is concerning, as the BMRCL faces loan repayments of Rs 911 crore to Rs 1,457 crore from FY 2025-2026 to FY 2029-30, while cash availability remains significantly lower.

The report highlights that the current cash flow will not be sufficient to meet the asset renewal and replacement requirements. The BMRCL has emphasized the necessity for an annual fare revision formula to accommodate changes in operational and maintenance costs effectively.

While the committee initially recommended an annual fare increase of 6.87%, the BMRCL proposed capping this at 6%. Eventually, the committee settled on a maximum annual hike of 5%. This annual revision will remain in effect until the next FFC is established and provides its report.

Even after implementing the 5% increase, the BMRCL anticipates that financial resources for depreciation will only be available by 2029-30. During that period, it expects to allocate Rs 1,457 crore for loan repayments and Rs 198 crore for depreciation. The fare hikes will be rounded to the nearest rupee if the increase is 50 paise or more. For example, a ticket priced at Rs 10 will rise to Rs 11 with a 5% increase, while a Rs 25 ticket will cost Rs 26 rather than Rs 27.

A well-placed source indicated that the next FFC is unlikely to be constituted for a decade, due to the comprehensive nature of the initial committee’s recommendations. The source expressed confidence that the annual automatic fare increase will sufficiently meet the BMRCL’s financial requirements for the foreseeable future, alleviating concerns about operational sustainability.