DMRC seeks ₹302 crore from Ghaziabad Development Authority to tide over operational losses during Covid

The GDA sources said that if they end up paying ₹302 crore to DMRC, it will mean suffering huge financial issues and this may hamper funding of future Metro extensions

The Delhi Metro Rail Corporation (DMRC) has sought about ₹302 crore from the Ghaziabad development authority (GDA) for losses suffered during the Covid lockdown period of 2020-21 and 2021-22, the officials aware of the development said on Thursday.

Ghaziabad , India - March 21 2024: A view of Delhi Metro in Hindon Area, The DMRC has written to GDA for paying up ₹302 for operational losses they suffered during the Covid lockdown in Ghaziabad , India on Thursday, March 21 2024. (Photo by Sakib Ali /Hindustan Times)

The DMRC operates two metro extensions -- Anand Vihar to Vaishali and Dilshad Garden to New Bus Adda -- in Ghaziabad.

The DMRC had written to them about the subject in October, 2023 and again sent a letter, seeking an amount of ₹302 crore for operational losses suffered during the two periods, said GDA officials.

In this connection, the Uttar Pradesh (UP) government’s housing and urban planning department has also shot a letter to the authority, seeking a report about the issue, the officials said.

HT accessed a copy of the letter dated March 13 sent by the UP officials to GDA. It states that covering up of losses during the period has been sought under directions of the Government of India.

In this context, the DMRC initially shot a letter to GDA on October 11, 2023 and the second letter was sent on February 26 this year.

A query was raised by the HT to the DMRC about the clause or directions under which the amount is sought from GDA and whether similar issue has been raised with other state agencies in Haryana, Delhi etc., where DMRC operate its Metro train services.

The DMRC, however, declined to offer any comment in response to HT’s query over the issue saying that they will revert if there is any development over the issue.

“We have written to the concerned governments on the issue of losses incurred during the pandemic from time to time, However, at this stage, we would not like to comment any further on this issue,” the DMRC, however, later issued a statement saying this.

The GDA, meanwhile, denied the possibility of paying up any such amount as sought by the DMRC.

“The DMRC does not share profit or any revenue with GDA. We have a tripartite agreement with DMRC and it also includes the state government. We have been running into losses for the past two years and earned a profit of about ₹10 crore this year,” said vice chairperson (GDA) Atul Vats.

He said that a number of passengers from different points avail metro service on the DMRC network.

“We don’t get the ridership figures on line basis but for the entire DMRC network. We will soon write to the DMRC about our reservations over the issue. Losses accrued for many such organisations during the lockdown period,” Vats added further.

Earlier in January, the DMRC sent a revised detailed project report of about ₹1,873.31 crore to GDA for linking Noida’s sector 62 to Sahibabad. However, the project is marred by issue of funds as the UP government has already denied sharing funds for the project.

The GDA sources said that if they end up paying ₹302 crore to DMRC, it will mean suffering huge financial issues. And this may hamper funding of future metro extensions.

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