Once known as the lifeline of the national capital, Delhi Transport Corporation (DTC) is tottering due to financial woes caused by spate of freebies and operational mismanagement.  Its cumulative losses have nearly doubled from Rs 25,300 Crore in 2015-16 to Rs 60,750 crore in 2021-22, as per a report of Comptroller and Auditor General (CAG) on functioning of Delhi Transport Corporation for the year ended March 31, 2022.

Delhi Chief Minister Rekha Gupta tabled the report on the functioning of the DTC for the year ending March 31, 2022, in the Budget session.  The report highlighted that the public transporter had not prepared any Business Plan or Perspective Plan, nor signed any MoU with the state government to set physical and financial targets to contain its working losses.

The transporter was also found not to have set benchmark to assess its performance as against other state transport undertakings. Between 2015 and 2023, DTC’s bus fleet reduced from 4,344 to 3,937 buses. It could procure only 300 electric buses, or EBs, during 2021-22 and 2022-23, despite the availability of funds from the government.

The report revealed that the DTC incurred Loss of Rs 8,498.35 Crore in the year 2021-22 which, after excluding unpaid interest for the year, was reduced to Rs 122.43 Crore. The Corporation had been incurring losses mainly due to heavy burden of interest cost on GNCTD loan, which was 72.90 per cent of the total expenditure

The audit revealed that the Corporation was operating on 468 routes (57 per cent) out of 814 routes as on 31 March 2022. The Corporation was unable to recover its operational cost in any of the routes operated by it. As a result, it suffered an operational loss of  Rs 14,198.86 Crore on operations during 2015-22.

The primary reason for the losses was DTC fares remaining unchanged since 2009, sources said, with the Delhi govt refusing to pay heed to multiple requests. The burden further went up as women were given free bus rides. The auditor also pointed to the absence of any business plan and there was no roadmap to check the bleeding and to ensure its financial viability. The number of low floor overaged buses in the Corporation during 2015-22 increased from 0.13 per cent (five buses) to 17.44 per cent (656 buses) which further increased to 44.96 per cent (1,770 buses) as on 31 March 2023 of its total fleet.

The proportion of overage buses would be rising further if the Corporation does not make sincere efforts to procure/add new buses. The scheduled Kms missed by buses ranged from 7.06 to 16.59 per cent and number of breakdowns ranged from 2.90 to 4.57 per 10,000 Kms of operations during 2015-22.

This resulted in loss of potential revenues of Rs 668.60 Crore due to missed scheduled Kms and higher rates of breakdowns during 2015-22.

During the period 2015-23, the fleet of the Corporation reduced from 4,344 (2015-16) to 3,937 buses (2022-23).

The Corporation could procure only 300 Electric buses (EBs) during 2021-22 and 2022-23 despite availability of funds from GNCTD. The number of low floor overaged buses in the Corporation during 2015-22 increased from 0.13 per cent (five buses) to 17.44 per cent (656 buses) which further increased to 44.96 per cent (1,770 buses) as on 31 March 2023 of its total fleet.

The proportion of overage buses would be rising further if the Corporation does not make sincere efforts to procure/add new buses.

Further, even in case, accumulated accrued interest on GNCTD Loans which was not paid since 2011-12 is excluded from accumulated losses, the net worth remained more or less constant with minor change from (-) Rs 10,816 Crore (2015-16) to (-) Rs 10,956.75 Crore (2021-22) mainly due to old accumulated losses. Moreover, during 2017-20, net worth was even reduced to the range of (-) Rs 10,671 Crore to (-) Rs 10,668.40 Crore and during the last two years, negative Net Worth further increased due to low operating revenue impacted by Covid pandemic.

The Audit report shows DTC had paid up Capital and Turnover of Rs 1,983.85 Crore and Rs 660.37 Crore respectively as on 31 March 2022. Turnover consisted of Operating Revenue of Rs 558.78 Crore and Non-Operating Revenue of Rs 101.59 Crore.

Further, the DTC received Revenue Grants of t 2,320 crore during the year 2021-22. The total expenditure incurred by the Corporation was Rs 11,489.72 crore comprising operating expenditure of Rs 3,060.33 crore and non-operating expenditure of Rs 8,429.39 crore. Non-operating expenditure mainly included interest cost of Rs 8,375.92 crore for the year 2021-22 on GNCTD Loan, which has not been paid by the Corporation since 2011-12.

According to report, the Corporation does not have the autonomy for fare determination due to which it was unable to fully recover its operational cost. The fare of the Corporation buses was last revised and made effective from 3 November 2009. To compensate the same, GNCTD extends financial support as Annual Revenue Grant and reimbursement against concessional passes and subsidy for free travels by lady commuters. The Corporation had outstanding dues of Rs  225.31 crore recoverable from the Transport Department against unreceived rent, service tax and water charges for space transferred for operation/parking of Cluster buses. Further, Property Tax and Ground Rent of Rs 6.26 crore on these depots and Rs 4.62 crore in providing vehicles to the Transport Department also remained unrecovered.