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Delhi Metro Rail finances in the red

Needs a fare rise after 6 years of no change; unable to make provision for a depreciation reserve

DMRC finances in the red

The government’s latest decision to set up a Fare Fixation Committee (FFC) with the mandate to recommend revision in fares for Delhi Metro Rail Corporation (DMRC) may not have come at a better time. With fares stagnant for more than six years amid rising input costs, the metro operator is struggling to wriggle out of a financial mess. A Business Standard analysis showed annual growth in the company’s total revenue dropped sharply from over 100 per cent in 2010-11 to 11 per cent in 2014-15, the latest year for which data is publicly available. DMRC reported total earning of Rs ...