The Delhi Metro Rail Corporation had taken a soft loan of Rs 35,198 crore for construction work from Japan International Cooperation Agency (JICA).(Reuters File Photo)
The Delhi Metro Rail Corporation had taken a soft loan of Rs 35,198 crore for construction work from Japan International Cooperation Agency (JICA).(Reuters File Photo)

Delhi Metro announces 50% cut in perks, allowances of its staff

With Metro operations shut since March 22, DMRC has suffered a revenue loss of about Rs 1,500 crore. Last month, DMRC had written to the Centre, requesting it to defer repayment of its loan till next year.
Hindustan Times, New Delhi | By HT Correspondent
UPDATED ON AUG 19, 2020 06:11 AM IST

Perks and allowances of Metro employees will be slashed by 50% from August, the Delhi Metro Rail Corporation (DMRC) said in an order on Tuesday.

The rail corporation said the decision was taken as Metro had incurred a financial loss of Rs 1,500 crore since March 22, when train operations were shut due to the nationwide lockdown announced to contain the Covid-19 pandemic.

With no clarity on when Metro operations will resume, DMRC in an order dated August 18 communicated its decision to its employees. “In view of the extreme adverse financial condition due to non-operation of Metro services, it has been decided that perks and allowances shall be reduced by 50% w.e.f the month of August 2020, till further orders,” the order read.

The Metro has also decided to put on hold all “sanctions of fresh advances for house building advance, multipurpose advance, laptop advance, etc.,” which its employees could avail till now. “However, the advance already sanctioned shall continue to be disbursed as and when a demand is received,” the order said.

A senior Metro official, requesting anonymity, confirmed the development. The DMRC officially refused to comment on the matter.

With Metro operations shut since March 22, DMRC has suffered a revenue loss of about Rs 1,500 crore. Last month, DMRC had written to the Centre, requesting it to defer repayment of its loan till next year.

The Union housing and urban affairs (HUA) ministry had asked DMRC to approach the Delhi government for financial assistance to repay its loan instalment for this year, HT reported on August 7.

The rail corporation had taken a soft loan of Rs 35,198 crore for construction work from Japan International Cooperation Agency (JICA).

DMRC has repaid Rs 3,337 crore of the loan to JICA. According to another DMRC official, Metro has to pay Rs 1242.83 crore as instalment for the financial year 2020-21.

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