DMRC registering profits despite rise in energy, staff costs

Written by PTI | New Delhi | Updated: Oct 14 2014, 15:10pm hrs
Delhi MetroDelhi Metro has been registering operating profit in spite of an increase in cost of energy by almost 40 per cent and no increase in fares since 2009. (PTI)
Delhi Metro Rail Corporation (DMRC) has been registering operating profit in spite of an increase in cost of energy by almost 40 per cent and staff costs and no increase in fares since 2009.

"DMRC has been performing exceedingly well as an operating Metro Rail Company and is one of the few Metros in the world which is making an operating profit and is not dependent on any subsidy," said Anuj Dayal, DMRC Executive Director (Corporate Communications) in a statement.

The statement came in the wake of a media report alleging that due to poor planning, execution and delay in completion of projects, DMRC ran into net loss of Rs 99.80 crore in 2013-14 as per the Directors' Report 2013-14 on financial health of the Delhi Metro.

Stating the operating margin of the company, Dayal said it has been consistently increasing. Operating profit in 2010-11 was Rs 767.66 crore, between 2011-12 it stood at Rs 946.34 crore, 2012-13 at Rs 1020.94 crore, and 2013-14 it was Rs 1062.48 crore.

"DMRC has been making an increasing operating profit in spite of an increase of almost 40 per cent in the cost of energy in the last few years and increase in staff costs despite no increase in the fare level since 2009.

"The money earned from the increase in operating profit is used to service loans taken by the company and a portion of it is set aside in the depreciation reserve fund as the company assets such as Rolling Stock (Trains) etc will have to be replaced eventually after their life cycle is over," he said.

The DMRC spokesperson also said that 88 per cent of work on the Faridabad Extension metro line is complete and its target is to open it on May next year.

Besides Mandi House to Kashmiri Gate line, which is expected to be thrown open to public in December next, 78 per cent work is complete on it, Dayal said, adding that DMRC is making rapid progess in completion of it projects under Phase III.