Is Delhi Metro profitable?

By Ankita Sharma

Delhi metro is the largest and busiest metro train system in India, covering almost 3,000 trips in a day starting from 5.30 in the morning. But the question that arises is if Delhi Metro is profitable or not. Well, we have the answer to your question. Check it out in the article below :

Delhi Metro currently cannot make enough profits as it used to do in pre-pandemic times. The global pandemic has severely affected the revenue generation of the DMRC (Delhi Metro Rail Corporation). It made an operating profit of Rs. 865.75 crores in the year 2019-20, while on the other hand, the corporation incurred an operating loss of Rs. 1761. 23 crores in the year 2020-21, when the country was put under lockdown for several months.

 

Image Src : Aze0098CC BY-SA 4.0, via Wikimedia Commons

What made Delhi Metro suffer losses?

The main reason for this loss was the pandemic in the year 2020-21, when the restrictions for the general public were at their peak. No one was allowed to leave their homes, so the metro was shut down for nearly five months.

Economic Times, a leading national daily, reported that the daily ridership from the 1st of January to the 28th of February in 2020 was nearly 61 lakhs, while the ridership in September 2022 was reported to be 46 lakhs.

Another reason that can be considered as the reason for a smaller number of people travelling by metro is hybrid work mode. Since companies have switched to work-from-home policies, the ridership has decreased.

Another thing to remember is that people switched to online delivery after the global pandemic, even for the smallest of things. Various apps are available in the market for consumers that deliver groceries and other necessities in just a few minutes. 

But there’s a silver lining, the daily ridership has been gradually increasing every month as the covid cases tend to decrease and the restrictions by the government ease out. It is anticipated that the ridership will return to normal by February 2023.

FAQs

1. Is any metro in India profitable?

Metros operating in Delhi, Bangalore and Mumbai have been quite successful and have definitely made profits.

2. Is DMRC in profit or loss?

After the Covid-19 virus hit the nation and went under a complete lockdown, the metro services were shut; this was the time Delhi Metro went under loss. Other than this Delhi Metro has reported profit every year.

3. Is Delhi Metro in debt?

Delhi Metro currently owes Rs. 7,010.08 crores to the Reliance subsidiary.

4. Are metro rails profitable?

Although metro rails suffered from losses during the pandemic, the corporation has again picked up the pace after covid cases started decreasing.

The above article gave insight into the current condition of the Delhi Metro and how much profit or loss it has made in the past few years/months. Do share your thoughts in the comment section below.