Amid Debt, Delhi Transport Minister Continues Free DTC Bus Rides for Women

By: WE staff | Thursday, 27 February 2025

• Delhi Transport Corporation (DTC) faces Rs 60,000 crore debt
• Financial challenge for newly elected Delhi government led by Chief Minister Rekha Gupta
• Debt worsened by the continuation of free bus service for women

The Delhi Transport Corporation (DTC) is facing a heavy debt burden of Rs 60,000 crore, creating a significant challenge for the newly elected Delhi government under Chief Minister Rekha Gupta. This financial strain has been exacerbated by the continued provision of free bus rides for women, where the policy was originally introduced by the previous AAP government.

Newly appointed Delhi Transport Minister Pankaj Singh has confirmed that the free travel scheme for women will continue, despite the challenges posed by DTC's financial struggles. The Comptroller and Auditor General (CAG) report has criticized the previous government for not expanding the fleet, revealing that no new buses were purchased between 2015 and 2020.

The CAG attributes DTC's financial losses to the failure to revise fares since 2009, despite multiple requests for an increase. The report also points out the lack of a business plan to address financial losses, highlighting that DTC has no strategy for long-term sustainability. Furthermore, inefficiencies in route planning have resulted in significant revenue losses.

DTC’s debt has risen sharply from Rs 25,300 crore in 2015-16 to around Rs 60,750 crore by 2021-22. A key factor in this crisis is the poor condition of the bus fleet, with 45 percent of vehicles classified as overage, resulting in underutilization and increased operational costs.

The audit also reveals that the government failed to utilize Rs 49 crore allocated under the FAME-1 scheme for electric buses. Additionally, under FAME-2, the contract period for electric buses was reduced from 12 to 10 years, further hindering expansion efforts.

The report highlights that none of DTC’s 468 operational routes are profitable, resulting in cumulative losses of Rs 14,199 crore between 2015 and 2022. Despite the addition of 300 new buses in 2022, the fleet is still insufficient to meet the city’s increasing public transport needs. The findings stress the urgent need for financial restructuring and strategic planning to secure DTC’s long-term sustainability.