Delhi Transport Corporation’s working losses rise to ₹3,000 crore

Rising costs of compressed natural gas fuel, high maintenance of an ageing fleet, and free and concessional bus rides provided by the Delhi government were among the factors for the rising losses

Delhi Transport Corporation (DTC), the capital’s largest public bus transport facility, continues to bleed, with losses expected to mount to ₹3,004 crore in the year to March 31, compared with ₹1,730 in losses in 2017-18, the 2022-23 Economic Survey revealed on Monday.

DTC runs around 4,010 buses on 461 city and seven national capital region routes. (HT Archive)

Rising costs of compressed natural gas fuel, high maintenance of an ageing fleet, and free and concessional bus rides provided by the Delhi government were among the factors for the rising losses, officials said, requesting anonymity.

DTC runs around 4,010 buses on 461 city and seven national capital region routes. Its income barely rose to an estimated ₹994.59 in 2022-23 compared with ₹889.33 in 2017-18, the survey noted. Operating costs of the public utility would increase to an estimated ₹3,998.68 crore in 2022-23 from ₹2,619.35 in 2017-18, it said.

DTC fares have remained unchanged since November 2009, accounting for the low increase in earnings.

“The working losses (i.e. revenue receipt minus establishment expenditure excluding interest payment and depreciation) of DTC was ₹3004.09 crore in 2022-23 (BE) in comparison of ₹2280.14 crore in 2021-22 (provision). Till the year 2010-11, the Delhi government used to meet the working losses of DTC by providing them with the loan, from the year 2011-12, the system has been changed by providing them with grant, instead of loan, in order to meet working losses,” the Economic Survey stated.

The Delhi government provides a subsidy to DTC to defray the cost of free and concessional passes. The Delhi government provided a subsidy of a provisional ₹38.46 crore in 2021-22 for concessional passes. The government provides a subsidy to cluster buses for free travel for women. In 2021-22, ₹126.90 crore has been released on subsidy, and a provision of ₹125 crore has been made for 2022-23, the survey said.

Delhi government started offering free travel to women in DTC and cluster buses from October 29, 2019. During 2021-22, 13.04 crore trips in DTC and 12.69 crore trips in cluster buses were made by woman passengers.

DTC posting losses is not a new phenomenon, an official said. “DTC was never a profit-making venture because public transport is for the public good. The operational losses may go down in the time to come when more electric buses are inducted into the DTC, which will lead to a reduction in maintenance cost,” he said.

A Delhi government official declined comment.

DTC is trying to explore ways to increase non-fare revenue by monetizing assets like the unused spaces in its depots such as leasing them out to private entities for commercial activities, said the official cited earlier.

Public transport in Delhi has two major components, DTC and cluster buses and the Metro. The daily average passenger ridership in DTC was 15.62 lakh and 9.87 lakh in cluster buses in 2021-22. In addition to DTC’s 4,010 buses, 3319 buses are in operation under the cluster scheme.

The Delhi government has decided to launch electric buses in Delhi to reduce vehicular emissions. So far, 300 electric buses have been inducted in city routes.