CAG Findings: DTC's Rs 60,750 Crore Loss and Absence of Revival Strategy
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Synopsis
A recent CAG report reveals that the Delhi Transport Corporation (DTC) faced a financial loss of Rs 60,750 crore in 2021-22 and incurred Rs 63.10 crore in penalties due to tax credit errors. The report criticizes the previous government's failure to create a recovery plan and highlights operational inefficiencies and missed revenue opportunities.
Key Takeaways
- DTC incurred Rs 60,750 crore loss in 2021-22.
- Rs 63.10 crore in penalties due to tax credit errors.
- Previous government failed to create a recovery strategy.
- Operational inefficiencies and route planning issues noted.
- Missed revenue opportunities from advertising and depot space.
New Delhi, March 24 (NationPress) Despite incurring a staggering loss of Rs 60,750 crore in the fiscal year 2021-22, the Delhi Transport Corporation (DTC) has added to its woes by accruing an unnecessary liability of interest and penalties amounting to Rs 63.10 crore. This was due to the incorrect claiming of Input Tax Credit on exempt services, as highlighted in a CAG report presented in the Delhi Assembly on Monday.
The report from the public auditor reveals the precarious financial state of the DTC, pointing fingers at the previous AAP administration for its inability to devise a recovery strategy to halt the Corporation's financial decline and ensure its fiscal viability.
Chief Minister Rekha Gupta introduced “The Report of the Comptroller and Auditor General of India on Functioning of Delhi Transport Corporation for the year ending 31 March 2022” in the Delhi Assembly on Monday.
The CAG report further emphasized the escalating financial deficits of the public transport service, which has been providing complimentary rides to women for the past decade while grappling with the challenge of replacing its pollutive, outdated vehicles with electric buses.
The report highlighted that DTC's losses surged by Rs 35,000 crore over six years, climbing from Rs 25,300 crore in 2015-16 to almost Rs 60,750 crore in 2021-22.
Other critical observations included operational inefficiencies, inadequate route planning, a non-operational Automatic Fare Collection System project since 2020, failure to collect dues from the transport department, and missed revenue opportunities.
Regarding operational inefficiency, the CAG report noted: “The fleet utilization of the Corporation was between 76.95 percent and 85.84 percent, while vehicle productivity per bus per day ranged from 180 km to 201 km, against a target of 189 to 200 km per bus each day during 2015-22, primarily due to frequent breakdowns and the presence of 656 overaged buses as of 31 March 2022.”
The government auditor also criticized the poor planning of routes: “The Corporation was operational on 468 routes (57 percent) out of 814 routes as of 31 March 2022, failing to recover operational costs on any of the routes it managed.”
Additionally, the CAG took note of the fare structure, stating: “The last fare revision for Corporation buses took place on November 3, 2009,” which hindered the DTC’s ability to fully recover its operational expenses.
The Corporation also has outstanding dues of Rs 225.31 crore owed from the Transport Department for unreceived rent, service tax, and water charges linked to the operation/parking of Cluster buses.
The CAG report further revealed that Property Tax and Ground Rent of Rs 6.26 crore on depots and Rs 4.62 crore for vehicles provided to the Transport Department also remained uncollected.
Moreover, the Corporation failed to capitalize on potential revenue due to delays in awarding advertising contracts and did not utilize available depot space for commercial opportunities.
