1. DTC suffered loss of over Rs 5,000 cr during 2010-15: CAG

DTC suffered loss of over Rs 5,000 cr during 2010-15: CAG

Delhi Transport Corporation suffered a loss of Rs 5,022 crore on operations during 2010-15 and could not procure a single bus despite availability of funds even as breakdown of the existing ones increased, the CAG has observed in a performance audit report of the transport body.

By: | New Delhi | Updated: June 13, 2016 10:24 PM
The CAG has indicted DTC for favouring cluster buses "in excess" of the agreed share, thus "adversely" impacting the revenue earning potential of the corporation and its financial interest. The CAG has indicted DTC for favouring cluster buses “in excess” of the agreed share, thus “adversely” impacting the revenue earning potential of the corporation and its financial interest.

Delhi Transport Corporation suffered a loss of Rs 5,022 crore on operations during 2010-15 and could not procure a single bus despite availability of funds even as breakdown of the existing ones increased, the CAG has observed in a performance audit report of the transport body.

The CAG has indicted DTC for favouring cluster buses “in excess” of the agreed share, thus “adversely” impacting the revenue earning potential of the corporation and its financial interest.

“The corporation was operating 574 out of 791 routes as on March 31, 2015…not even one of these routes was profitable and many of them were not recovering even the variable cost…As a result the corporation suffered a loss of Rs 5,022.05 crore on operations during 2010-15,” the report said.

The operating loss for the year 2010-11 was Rs 741.09 crore which rose to Rs 1,273.19 in 2014-15. Total expenditure of the corporation (per km) rose from Rs 113.60 in 2010-11 to Rs 177.50 in 2014-15 while the corresponding losses were Rs 79.92 and Rs 101.52.

The audit is part of the report tabled in Delhi Assembly today, that covers the activities of Revenue and Social and Economic Sectors (PSUs) and Social, General and Economic Sectors (Non-PSUs) of the Delhi government.

“The fleet utilisation and vehicle productivity was less than all India averages. Route planning was deficient. The number of routes not recovering the variable cost increased from 15.24 per cent to 63.80 per cent during 2010-15,” the report said.

By failing to procure new buses despite availability of funds, the corporation also lost the opportunity of availing central assistance of Rs 204.57 crore, the report said.

“Breakdowns increased from 1.77 to 5.35 per 10,000 kms of operations…Against the all India average fleet utilisation of 90.1 to 91.2 per cent of state transport buses during 2010-14, the fleet utilisation of DTC buses was 75.03 per cent in 2010-11, at 85.77 per cent in 2012-13 and 84.10 per cent in 2014-15,” it said.

Deployment of staff in other departments of the Delhi government without any recorded reasons resulted in non-reimbursement of salaries and allowances of Rs 57.40 crore, it said.

Transfer of space to other departments without executing written agreements resulted in non-recovery of Rs 53 crore while the corporation suffered a loss of Rs 46.11 crore in operation of school buses during the period, the report said.

“Corpus fund of Rs 40.65 crore was utilized for payment of salaries, purchase of furniture, auxiliary vehicles, computers in violation of guidelines.

“Due to systemic lapses, improper maintenance, injudicious and delayed decisions and inaction in awarding contracts for display of advertisements, the corporation lost the opportunity of earning revenue of Rs 79.84 crore,” it said.

Tags: Delhi
  1. No Comments.

Go to Top