DTC running into losses of over Rs 1,000 crore annually since 2015: Delhi Assembly

The AAP-led govt denied reports that extra amount of Rs 1,000 crore was to be paid to manufacturers of 1,000 low floor buses being procured by the DTC, for comprehensive annual maintenance contract

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Representative image
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PTI

Delhi's public transporter DTC has been running into losses of over Rs 1,000 crore annually since 2015, although it has been unable to add even one bus to its existing fleet.

The AAP-led city government also denied reports that extra amount of Rs 1,000 crore was to be paid to manufacturers of 1,000 low floor buses being procured by the DTC, for comprehensive annual maintenance contract.

These statements were given by the Transport Department of the city government in the Delhi Assembly, in a written reply, to a question by BJP MLA Vijender Gupta on Thursday.

The Monsoon session of the Delhi Assembly concluded on Friday.

In reply to another question by BJP MLA Ajay Mahawar, the transport department said the Delhi Transport Corporation (DTC) has not bought any bus after 2015.

Meanwhile, under the Delhi Integrated Multi-Modal Transit System (DIMTS) operated cluster scheme, 1,387 buses were procured after 2015, the department said.

In the past six years, the DTC suffered losses of Rs 1,019.36 crore in 2014-15, Rs 1,250.15 crore in 2015-16, Rs 1,381.78 crore in 2016-17, Rs 1,730.02 crore in 2017-18, Rs 1,664.56 crore in 2018-19.

According to the interim estimates for 2019-20, the losses stood at Rs 1,834.67 crore, it said.

The work order for procurement of 1,000 low floor buses by the DTC were issued to two manufacturers, but the process has been put on hold by the transport department.

In reply to Gupta's question, the department denied that the two manufacturers were to be paid Rs 1,000 crore extra for comprehensive annual maintenance contract (CAMC) for initial three years, saying it was given transparently through an open tender.

A committee formed by LG Anil Baijal had found "procedural lapses" in the contract. The matter has now been referred to the Ministry of Home Affairs by the LG for follow-up action.

The transport department further asserted that warranty of buses and their CAMC are different things.


"Warranty includes manufacturing defects, while maintenance-related activities not part of it are included in CAMC, it said.

BJP MLA Vijender Gupta had questioned why Rs 1,000 crore extra was being paid in the name of maintenance fee despite a three-year warranty on the buses.

"The terms and conditions of CAMC of tenders issued by the DTC have been the same. These terms and conditions are similar to those in the tenders issued by the DTC in 2006 and 2008," the transport department said.

It added that the general conditions of the contract for CAMC of 1,000 low floor buses clearly say that the contractor has to carry out all the maintenance-related work.

The CAMC includes preventive maintenance, general wear and tear, major and minor repair, overhauling of assemblies and sub assemblies, breakdown, damage due to fire, replacement of worn out tyres, bus body repair and getting fitness and pollution control certificates, it said.

Nearly 71 routine maintenance-related activities could be considered as part of CAMC which are not warranty part. These activities are "illustrative" rather than "exhaustive" and so cannot be listed in the tender, the transport department added in the reply.

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