The CAG report on DTC losses has highlighted a significant financial decline for the Delhi Transport Corporation (DTC), with its cumulative losses escalating from Rs 25,300 crore in 2015-16 to nearly Rs 60,750 crore by 2021-22.
The report points to multiple factors, including an aging fleet, outdated fare structure, and poor route planning, contributing to the transport utility’s ongoing financial crisis.
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Key Findings of CAG Report on DTC Losses
The CAG report on DTC losses reveals several critical issues that have exacerbated the situation:
- Aging Fleet: Nearly 45% of DTC’s buses were overage and prone to frequent breakdowns, severely affecting fleet utilization.
- Unchanged Fares: DTC fares have remained stagnant since 2009, with the Delhi government ignoring multiple requests to raise fares.
- Free Rides for Women: The free bus rides for women have added an extra burden on DTC’s finances.
- Lack of Strategic Planning: The report criticizes DTC for operating without a comprehensive business plan and failing to address the growing losses.
CAG Report on DTC Losses: Fleet and Operational Challenges
The CAG report on DTC losses highlights that DTC’s fleet size and operational efficiency have been major contributors to the corporation’s mounting financial issues.
- Fleet Size Issues: As of March 2022, DTC had only 3,937 buses, significantly lower than the 5,500 buses planned by the Delhi cabinet in 2012. Out of these, 1,770 buses were overage.
- Breakdowns: DTC buses experienced between 2.9 and 4.5 breakdowns per 10,000 km, which was considerably higher compared to other state transport corporations and private cluster buses.
- Delayed Procurements: Despite Rs 233 crore being available for new buses, procurement was not carried out, and DTC did not avail of central assistance under the FAME-I scheme.
Key Data
| Value | Key Data |
|---|---|
| Total Fleet Size (March 2022) | 3,937 Buses |
| Overage Buses | 1,770 Buses |
| Bus Shortage (Against Target) | 1,740 Buses |
| Breakdown Rate (per 10,000 km) | 2.9 – 4.5 |
Deficient route planning & inefficiency of operations
Another significant factor in the CAG report on DTC losses is the deficient route planning and the inefficiency of operations on several DTC routes.
- Route Coverage: DTC operated 468 routes, covering just 57% of the total 814 routes in the city.
- Operational Losses: DTC was unable to recover operational costs on any of the routes it operated, incurring losses of Rs 14,199 crore during 2015-2022.
- Poor Financial Recovery: Despite receiving a revenue grant of Rs 13,381 crore from the Delhi government, DTC faced a shortfall of Rs 818 crore, contributing further to its financial woes.
DTC’s failure to adopt technological advancements
The CAG report on DTC losses also points to DTC’s failure to adopt necessary technological advancements, further hampering its operational efficiency:
- Automatic Fare Collection System: DTC has failed to implement an automatic fare collection system.
- Incomplete CCTV Surveillance: Despite initiating the CCTV project nine years ago, DTC has yet to complete the installation of CCTV systems on its buses.
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The report has laid bare the transport utility’s inability to address these fundamental issues, leaving the Delhi government with a significant challenge to restore the corporation to financial health and improve the overall public transport system in the city.