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Consumer Discretionary
The Delhi Transport Corporation (DTC), a primary public transport provider in the national capital, has been grappling with significant financial and operational challenges, as highlighted in a recent report by the Comptroller and Auditor General (CAG). The report, tabled in the Delhi Assembly, reveals a staggering operational loss of ₹14,198.86 crore between 2015-16 and 2021-22. This financial burden is compounded by a shrinking fleet of buses and inefficient operational practices.
The CAG report exposes several critical issues plaguing the DTC:
Declining Fleet: The number of operational buses decreased from 4,344 in 2015-16 to 3,937 in 2022-23. This reduction is particularly concerning given the significant demand for public transportation in Delhi[1][3].
Aging Buses: By March 2023, a substantial 44.96% of the DTC's buses were overaged, leading to frequent breakdowns and reduced operational efficiency[1][3].
Inefficient Operations: Fleet utilization and vehicle productivity were below national averages, resulting in substantial revenue losses. The fleet operated on only about 57% of the planned routes, failing to cover operational costs on any of them[2].
Failed Technology Upgrades: Despite significant investments, key technologies like the Automatic Fare Collection System (AFCS) and CCTV systems in buses remained non-functional, further exacerbating the financial crisis[1][2].
Unrecovered Dues and Missed Revenue: The DTC failed to recover ₹225.31 crore from the Transport Department for services and missed out on ₹668.60 crore due to poor route planning and frequent bus breakdowns[1][2].
Several factors have contributed to the DTC's financial woes:
Lack of Strategic Planning: The corporation did not formulate a business plan or sign a memorandum of understanding (MoU) with the state government, leading to unclear financial and operational targets[2].
Delayed Procurement of Electric Buses: Despite availability of funds, the DTC procured only 300 electric buses during 2021-22 and 2022-23. This delay resulted in missed opportunities for central funding under the FAME schemes[3][4].
Operational Inefficiencies: Breakdowns ranged between 2.90 and 4.57 per 10,000 km, impacting fleet availability and productivity[3].
To address these challenges, the CAG report provides several key recommendations:
Interestingly, the report highlights that cluster buses operated by the Delhi Integrated Multi-Modal Transit System Limited (DIMTS) outperformed DTC buses in operational metrics, except for revenue per kilometer. This disparity underscores the need for comprehensive reforms within the DTC[2].
The CAG report's revelations underscore the urgent requirement for transformative reforms in the DTC to ensure its financial sustainability and operational efficiency. With the city's transport needs on the rise, addressing these deep-rooted issues will be crucial to maintain public trust and satisfaction in Delhi's public transportation system.
As the Delhi government ponders over these findings, one thing is clear: immediate action is necessary to revitalize the DTC. From modernizing the fleet to improving operational efficiencies, the path to recovery for this vital public service provider involves tackling systemic failures head-on.
