New Delhi: Delhi Transport Corporation’s (DTC) cumulative losses increased from Rs 25,300 crore in 2015-16 to almost Rs 60,750 crore in 2021-22, said the Comptroller and Auditor General (CAG) report, which is to be tabled by Chief Minister Rekha Gupta at 11 am on Tuesday, after the LG’s address in the Delhi Assembly. The increase in losses was caused by a shrinking fleet, with 45% of buses being overage and prone to frequent breakdowns, leading to inefficient fleet utilisation.
Several lapses mentioned in report
In the report, the auditor mentioned several shortcomings, including the transport utility’s failure to expand its fleet, a Times of India report said, while citing sources. This is the first of the 14 reports that the AAP government had refused to present in the assembly.
Sources pointed out that the main reason for the losses incurred by the DTC was the fares that had not changed since 2009, with the Delhi government ignoring a number of requests to adjust the fare. The financial strain was further worsened by the provision of free bus rides for women. The auditor also underlined the lack of a business plan and the absence of a roadmap to stop the financial losses and ensure the corporation’s viability, according to sources familiar with the report.
The shrinking DTC fleet, with break-down buses becoming a daily inconvenience for commuters, became a political issue, as both the BJP and Congress constantly flayed AAP chief Arvind Kejriwal’s 2015 promise to increase the fleet by 10,000 buses.
In 2007, the Delhi High Court had asked that DTC to maintain a fleet of 11,000 buses. But, five years hence, the Delhi cabinet set the target at 5,500 buses. The CAG report is believed to have highlighted that by March-end 2022, DTC had a fleet of 3,937 buses, with 1,770 of them being overage. The low-floor buses were over 10 years old and were scheduled to be phased out by the end of next month, the report said.
No procurement of new buses
Even though there was a shortage of 1,740 buses, procurement did not take place, except for the addition of 300 buses in 2022, despite Rs 233 crore being available. The CAG report pointed out that DTC failed to utilise an additional Rs 49 crore in central assistance under the FAME-I scheme, due to “indecision and unclear specifications”. In addition, a delay in finalising the contract for 300 electric buses under the FAME-II scheme resulted in the contract period being reduced from 12 years to 10 years.
There were breakdowns that ranged from 2.9 to 4.5 for every 10,000 km of operation, which was considered very high compared to other state transport corporations and cluster buses operated by private contractors.
Inadequate route planning
The report also flayed DTC for inadequate route planning, with the state-run utility plying on 468 routes, or 57% of the total 814 routes. According to a source, the corporation could not recover its operational costs on any of the routes it operated. Hence, it incurred losses of Rs 14,199 crore from operations between 2015 and 2022.
While losses grew manifold, the Delhi government provided a revenue grant of Rs 13,381 crore between 2015 and 2022, leaving a gap of Rs 818 crore. The corporation also could not sign an MoU with the Delhi Transport Department to set up physical and financial targets.
