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DMRC faces a loss of Rs. 1500 Crores due to Pandemic, said officials?

Although, MD Mangu Singh is hopeful as the loss in revenue gets narrower by the day

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DELHI, INDIA (Metro Rail News): Delhi Metro Rail Corporation (DMRC) services resumed in September last year after being closed for about 169 days due to the pandemic. However, just after the resumption of its services, Delhi Metro saw at least 6-7 lakh footfall daily. According to reports, this year in September, the average passenger commute rate has reached 28 lakh. Despite the increase in commuters, Delhi Metro Rail Corporation (DMRC) is expecting an estimated loss of Rs 1,500 crore in the 2021-22 financial year.

As a result of the COVID epidemic, DMRC revenue has dropped from Rs 3,898 crores to 895 crores in 2019-2020 and 2020-2021 respectively. Although DMRC had earned more than Rs. 758 crores for 2019-20, the corporation had a loss of Rs 1784.9 crore in the last fiscal year. The services of the Delhi metro rail were closed to the general public for at least 48 days due to the lockdown caused by COVID, which is why the first quarter of the fiscal year is in conflict with the second wave of the pandemic.
The DMRC was told to spend more money on profitable operations as trains could only operate at 50% of their capacity. In addition to restrictions, no commuter was allowed to stand during the journey. Although, since July-end, passengers and DMRC have received some respite with the permission of 100% seating capacity. However, that did not bring any benefit to the DMRC.

Commenting on the matter, DMRC Managing Director Mangu Singh said, “We are not yet back in a position where we can meet all our costs but the gap is narrowing by the day.” He added that the DMRC were in a position to lose Rs 2,100 crore revenue last year but in its efforts to improve revenue and reduce costs without disrupting operations and safety-related costs.
Singh added that the DMRC would have lost an amount of Rs 3,200 crore by the end of March 2022, and the matter was discussed at a recent BOD (Board of Directors) meeting. Meanwhile, when the train services were hit by the second wave, revenue was raised on fares, leasing of the areas (retail), car parking, etc. In addition, the DMRC also made sure that people who had rented areas could not ‘run away’ even if the metro services were closed.

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