The Hindu : New Delhi News : DTC exploring means to tide over financial crisis

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Sunday, Jan 23, 2005

New Delhi

New Delhi

DTC exploring means to tide over financial crisis

By Gaurav Vivek Bhatnagar

NEW DELHI, JAN. 22. The Delhi Transport Corporation is exploring the possibility of engaging in issue of Pollution Under Control certification, inspection of vehicles for safety and licensing of drivers as means of generating additional revenue for tiding over its financial crisis.

In its comments sent to the Core Committee set up to examine the proposals of the Tata Consultancy Services on restructuring of the Corporation, DTC has stated that the proposal in regard to these three measures has already been moved. Besides, it said other revenue generating measures had also been put in place. These include provision of parking for motorised personalised vehicles at DTC depots and terminals to increase ridership and decrease number of vehicles on the roads.

As TCS had recommended that only small-scale commercial usage of DTC estates is feasible within the existing regulations but may also be attempted in identified cases, the Core Committee had stated in the report that office space is being given on rent to the Transport Department by DTC for starting new MLO offices. The Corporation said similar options at other premises are also being explored.

Meanwhile, in an important development, it said, the Delhi Development Authority has also permitted it to develop some parking and commercial spaces. This has far reaching benefits for the Corporation that has been trying hard over the past few years to bring its balance sheet out of the red.

Though in April 2004, DTC had decided to allow parking of private vehicles in its various depots at the rate of Rs 5 per scooter, Rs 10 per car and Rs 30 per bus, the scheme failed to achieve desired results for several reasons.

The main reason for its failure was that most of the depots are located away from residential areas and people still prefer parking their vehicles close to their homes. Also, given a chance no one wants to spend money for parking at night. Furthermore, since the parking was only available in two batches -- from 10 a.m. to 6 p.m. and from 10 p.m. to 6 a.m. -- the scheme did not provide the desired flexibility to the vehicle owners.

And so the scheme failed in its endeavour to provide much-needed financial support to DTC, which had done considerably in the past year.

As against 2002-2003, in the financial year 2003-2004 its average fleet increased from 3126 to 3399, the operated kilometres from 19.49 crores to 23.74 crores, the kilometres operated daily from 5.34 lakhs to 6.51 lakhs, the fleet utilisation from 79.85 per cent to 85.44 per cent, the earnings from Rs. 333.28 crores to Rs 374.32 crores and the daily earnings from 91.30 lakhs to 102.55 lakhs. But most importantly, during the year the number of passengers using the DTC rose from 91.82 crores to 96.38 crores.

With the parking plan not paying the expected dividends, DTC has in the meantime started focussing on other plans like setting up a conductor's training institute for the private sector for generating additional revenue.

The Corporation, which at present has a surplus of conductors, possesses huge talent in the field as it has been in the transport business for over 50 years now.

Also, it said, it would be hiring out more of advertising space inside buses and would be setting up a complaint reception SMS facility. Though at present too advertising spaces are let out in the buses, there is a plan to modify and streamline the process since following the restrictions on external advertising the revenue of the Corporation from this segment has fallen sharply.

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