The Delhi Transport Corporation (DTC) has been facing a severe financial crisis, with its cumulative losses escalating from Rs 25,300 crore in 2015-16 to nearly Rs 60,750 crore by 2021-22, as revealed by the Comptroller and Auditor General (CAG) reports.
This financial strain is attributed to several factors, including an aging fleet, inefficient route planning, and unchanged fare structures since 2009.
Additionally, the free bus travel scheme for women, introduced by the previous AAP government, has further exacerbated the financial burden on DTC.
Aging Fleet: Nearly 45% of DTC’s buses are overage, leading to frequent breakdowns and poor fleet utilization. This has resulted in a high rate of breakdowns, significantly affecting the operational efficiency of the corporation.
Inefficient Route Planning: DTC operates on only 468 routes, covering just 57% of Delhi’s total bus routes.
Notably, none of these routes generate enough revenue to cover operational costs, resulting in substantial losses.
Unchanged Fares: Despite multiple requests, DTC fares have remained unchanged since 2009, contributing to the corporation’s inability to recover operational expenses.
Free Bus Rides for Women: While this initiative aims to empower women, it has added to DTC’s financial strain. The Delhi government’s decision to provide free bus rides has increased the burden on the already struggling transport corporation.
The BJP government, led by CM Rekha Gupta, faces significant challenges in addressing DTC’s financial woes.
If the BJP were to fulfill a hypothetical promise of providing Rs 2500 per month to women, it could lead to an additional subsidy cost of approximately Rs 11,000 crore annually, nearly doubling the current subsidy burden.
This would further strain the state’s finances and pose a substantial challenge for the new government.
DTC’s financial crisis is a complex issue, influenced by both operational inefficiencies and policy decisions.
To restore the corporation’s financial health, the government must address the underlying causes, such as modernizing the fleet, optimizing route planning, and implementing a sustainable fare structure.
The future of Delhi’s public transport system depends on effective management and strategic planning to balance social benefits with financial viability.
