The Hindu : New Delhi News : DTC incurs huge financial loss, reveals audit report

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Friday, Apr 20, 2007
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New Delhi

DTC incurs huge financial loss, reveals audit report

Staff Reporter

`Corporation buses are running at a loss of Rs.31.57 per km'

NEW DELHI: The financial health of the Delhi Transport Corporation is deteriorating by the year and on March 31, 2006, its accumulated losses stood at Rs. 4,008.46 crore. Moreover, according to the audit report and annual accounts of the DTC, during 2005-06 itself the Corporation incurred a net loss of Rs. 879.38 crore with the buses running at a loss of Rs. 31.57 per km.

At a time when private bus operators all over the country are acquiring more and more vehicles through profits earned from the business of running vehicles, the DTC has been showing no signs of financial recovery and year after year its mounting losses have been causing a drain on the public exchequer.

According to the audit report, the total revenue of the DTC in 2005-06 was Rs. 448.56 crore. But with the total expenditure being a whopping Rs. 1266.36 crore, it incurred a net loss of Rs. 879.38 crore.

The report said the Corporation had to bear huge financial losses on account of uneconomic fare structure and issuance of concession passes to various segments of society such as students, police personnel, residents of resettlement colonies, press persons, physically handicapped persons and freedom fighters as a social obligation at the behest of the Delhi Government.

On March 31, 2006, the DTC had 3,469 buses in its fleet operating on 768 city routes and 84 inter-State routes. The fleet utilisation during the year was 90.52 per cent -- which was a considerable increase over the previous year's 83.99 per cent.

But during the year the average kilometres covered per bus per day decreased to 227 km as against 230 km in 2004-05. Also, despite higher productivity of vehicles, the loss per kilometre shot up from Rs. 23.80 in 2003-04 to Rs. 31.57 in 2005-06.

As for the financial position, the audit report said the net worth of the Corporation has been negative over the past three years and is deteriorating on account of the losses.

It said the capital employed had decreased from Rs. 378.03 crore in 2003-04 to Rs 274.21 crore in 2005-06. This when the Corporation had also not repaid any instalment of loan and interest due thereon to the Delhi Government. While the Leader of the Opposition had raised the issue of revamping the DTC organisation before it is allowed to bring in more vehicles while replying to the budget in the Delhi Assembly, a large number of leaders are now coming round to the view that in order to provide a world class public transport in Delhi it should be privatised in a planned way.

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