- By Imran Zafar
- Wed, 26 Feb 2025 05:51 PM (IST)
- Source:JND
The Delhi Transport Corporation (DTC) is struggling with a massive Rs 60,000 crore debt, posing a significant challenge for the newly elected Delhi government led by Chief Minister Rekha Gupta. The financial strain has worsened due to the continuation of the free bus service for women, a policy introduced by the previous AAP government.
Newly appointed Delhi Transport Minister Pankaj Singh has assured that the free travel scheme for women will continue, but he faces an uphill battle in addressing DTC’s financial distress. The Comptroller and Auditor General (CAG) report has criticised the former government’s failure to expand the fleet, revealing that no new buses were procured between 2015 and 2020.
The CAG attributes the losses to unchanged fares since 2009, despite repeated requests for revision. The report highlights the absence of a business plan to curb financial losses, noting that DTC lacked a strategy for long-term sustainability. Additionally, inefficiencies in route planning have led to substantial revenue losses.
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DTC’s debt surged from Rs 25,300 crore in 2015-16 to approximately Rs 60,750 crore by 2021-22. A major contributor to the crisis is the deteriorating condition of the bus fleet, with 45 per cent of vehicles classified as overage, leading to underutilisation and higher operational costs.
The audit also reveals that the government failed to utilise Rs 49 crore in funding under the FAME-1 scheme for electric buses. Moreover, under FAME-2, the contract period for electric buses was shortened from 12 to 10 years, further limiting expansion efforts.
The report highlights that none of DTC’s 468 operational routes are profitable, leading to cumulative losses of Rs 14,199 crore between 2015 and 2022. Despite purchasing 300 new buses in 2022, the fleet remains inadequate to meet the city's growing public transport demands. The findings underscore the urgent need for financial restructuring and strategic planning to ensure DTC’s long-term viability.