Delhi Metro to privatise on the public-private partnership model

If this proposal is approved, the new Metro Rail Policy 2017 & Metro Railway Act, 2002 may also require to be updated. A committee has also been created to decide how much fare to be imposed from the commuters

DMRC’s actual ridership is half of the Projected Ridership
Image Source: DMRC

NEW DELHI (Metro Rail News): Delhi Metro Rail Corporation presents the annual audit reports and intimated that the Delhi Metro project is running in a loss since its inception.

In view of this, the State Govt is now preparing to privatise the project on public-private participation model & the Delhi MRTS may be delivered on lease to individual players. The discussion has been commenced in this regard. The Indian think that NITI Aayog has made a plan & gave it to the govt for review.

According to the NITI Aayog, if the govt performs the proposed plan, the DMRC can get monetary advantages from Rs 39,000 cr – Rs 80,000 cr. The govt has to finalise a decision on how the suggestions were provided by Aayog can be performed.

To build the infrastructure of the Delhi Metro project, Rs 70,000 cr has been spent till now. If the network extends further, the govt will also have to pay a heavy amount.

The NITI Aayog has said the govt that after renting the metro amount will be obtained from the loan is taken will be refunded.

As per the proposal drafted by NITI Aayog, Delhi Metro has incurred a total expenditure of Rs 70,433 cr for implementation of track infrastructure, procurement of Rolling Stock, and other actions towards Phase I, II, and III operationalisation.

This payment has been funded by Rs 36,525 cr of long-term debt increased from Japan International Cooperation Agency (JICA) with Rs 33,908 cr of equity or subordinated debt from GoI/GNCTD and grants from different states or Central Govt institutions.

Rs 17,365 cr out of the latter has been backed as equity through the Govt of India and Govt. of National Capital Territory Delhi in a 50% ratio, where the balance quantum has been funded as non-interest bearing subordinate debt from GoI, GNCTD and monetary or non-monetary grant states or Central Govt institutions. These commence land permission through urban development authorities like DDA, HUDA, NOIDA etc.

NITI Aayog has developed 3 lease models in these, one model is for twenty years, the second for fifty years, and the last for 99 years. There are track infrastructure and train under Model No.1 that can be rented to a private company for twenty years.

The govt can earn in return, a large amount of money from commuters fares, parking, & advertisements on trains.

if the second model is performed, the commercial area of ​​the stations & the right to business property can be transferred to the private company. These things can be transferred to a private company for fifty years.

Under this model, the govt will get around Rs 70,000 cr. At the same time, the lease under model number three will be 99 yrs period. Under this, the govt will be able to take some share from the private company as per its advantage.

Under this, the government can have an income of more than Rs 80,000 crore. However, at the moment it is only proposed. The final decision is to be taken by the Central Govt.

If this proposal is approved, the new Metro Rail Policy 2017 & Metro Railway Act, 2002 may also require to be updated. A committee has also been created to decide how much fare to be imposed from the commuters.


  1. Metro projects world over functions on State support.
    DMRC need to find ways of advertisement revenue, leasing real estate etc. The concept of recovering costs by increasing ticket price has to go.
    People are harassed by Pandemic and have no extra budget for commuting.

    • It is up to the Govt to decide. But earlier experience of Airport metro should also taken into consideration while deciding the issue. There is not good experience of transport system of private sector in Delhi and even in other states. It is only Govt and State Govt who are providing better and affordable and safest transport facilities.

  2. If you increase the tkt price than most people will not travel by metro they rather go by road and other private transport , this will effect the road traffic and polution level !


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