DTC has eroded its entire paid-up capital: CAG

New Delhi, Apr 23: Delhi Transport Corporation that was incurring loss since its inception, has now managed to erode its entire paid-up capital of Rs 117 crore! DTC's cumulative losses increased from Rs 1,082.14 crore in 2001-02 to Rs 4,008.46 crore in 2005-06 thereby eroding its entire paid-up capital of Rs 117 crore, the Comptroller and Auditor General of India revealed while criticising the corporation in its latest report on many accounts.

DTC had been established by the central government in Novermber 1971 for providing 'efficient and economical' public transport service in the national capital. It was transferred to the Delhi government in August 1996 and its liabilities amounting to Rs 2,123.21 crore were waived off in order to enable the corporation to make a fresh start.

However, DTC only managed to decrease its Load Factor (ridership) from 83 per cent in 2001-02 to 74 per cent in 2005-06. One of the reasons for the poor Load Factor was curtailment of scheduled kilometres due to late 'out-shedding' of buses. The revenue loss due to such lost kilometres amounted to Rs 6.47 crore.

DTC lost an opportunity to earn additional revenue of Rs 10.84 crore due to its failure to re-deploy CNG buses having more earnings per Km for city operations by replacing them with diesel buses on inter-state routes.

Avoidable curtailment of lucrative routes coupled with non-operation of scheduled kilometres for want of conductors resulted in loss of revenue of Rs 1.94 crore.

While operational performance could be improved by a periodic review of 'uneconomic' routes and making optimum operation possible in the 'higher revenue earning' routes, none of the routes operated by the DTC were recovering the total cost of operation.

Even administrative laxity in obtaining fitness certificates for its buses also resulted in revenue loss of Rs 9.9 crore. Consumption of CNG, engine oil and coolant in excess of the prescribed norms resulted in extra expenditure of Rs 18.61 crore.

No targets were fixed for task/jobs in the central workshop after 1999-2000. Failure of the central workshop to ensure timely availability of engine assemblies resulted in loss of revenue of Rs 17.81 crore. Poor and inefficient inventory management led to loss of 3.26 lakh bus days and consequent revenue loss of Rs 52.33 crore.

DTC had also gone in for an avoidable expenditure of Rs 63 lakh by its failure to avail of monthly passes of toll tax.

UNI