New Delhi: Poor planning and execution and delay in completion of projects has reportedly pushed the Delhi Metro Rail Corporation (DMRC) into huge losses. While there has been an increase in the ridership of the Delhi Metro every month, the corporation still incurred a loss of about Rs 100 crore in 2013-14.
The Delhi Metro, which had taken a loan of Rs 18324.80 crore from the Japan International Cooperation Agency till March, 2014, has repaid Rs 1925.77 crore to the agency. Most of the DMRC projects are said to be running behind the schedule, leading to the escalation in construction cost.
It is learnt that the work on Jehangirpuri and Badli stretch was 77 per cent complete and the line was expected to be completed by March 2015. There are indications that this stretch may not be completed on time due to certain reasons or delay in possession of private land.
Sources say that non-availability of land is likely to delay work on some stretches of the Delhi Metro. For instance, relocation of jhuggis at Punjabi Bagh and Naraina is yet to begin. Also petrol pump at GT road in Seelampur is yet to vacate the land for rehabilitation of plot holders. These two land pockets are under lock with an NGO.
Similarly, proposal of Airforce land has been put on hold by western air command. The DDA has also withdrawn land at Janakpuri for the construction of multi level parking. There is also delay in acquisition of private land under the new land acquisition act. The land at Kalindi Kunj depot is also stuck as the matter is pending with the high court.
The “Directors’ Report 2013-14” on financial health of the Delhi Metro, accessed by this newspaper, reveals that there was a net loss of Rs 99.80 crore.
The report said : “The total revenue generated was Rs 3198.02 crore inclusive of income from traffic operations, real estate, consultancy and external projects as against Rs 2687.48 crore in the previous year. The total expenditure incurred in the same period was Rs 2135.93 crore giving a profit before depreciation & amortisation expenses, finance cost and tax amounting to Rs 1062.08 crore. After adjustment of depreciation and amortization expenses and finance cost amount to Rs 900.78 crore and Rs 222.04 crore respectively, a loss amounting to Rs 60.73 crore was incurred during the year.
Further after providing for wealth tax and deferred tax liability amounting to Rs 0.25 crore and Rs 38.82 crore respectively, there was a net loss of Rs 99.80 crore despite increase in the revenue from traffic operation.”
The report said under traffic operations Rs 1645.40 crore was earned during the year against which expenditure incurred was Rs 988.17 crore yielding an operating profit of Rs 657.23 crore. The report revealed that the Delhi Metro had received soft loan from the JICA amounting to `2287.35 crore in 2013-14. Till March 2014, the total amount of JICA loan stood at Rs 18324.80 crore.
The total contribution against subordinate debts from the Union government, city administration, Haryana Urban Development Authority and NOIDA as on March 31,2014 stood at Rs 3908.26 crore.