Exclusive | ‘Delhi Metro Phase V (A) expected to be completed within 3 years… target is challenging’: DMRC MD

By when do you expect the non-priority Phase IV corridors to become operational?

The target is to complete all Phase IV corridors by 2029.

In 2019-20, actual ridership was about half of projections — 27.79 lakh against 53.47 lakh, as per a CAG report. A 2023 IIT Delhi study estimated ridership to be at 47.45% against the total capacity. Even now, daily ridership is around 35-40 lakh. Why hasn’t DMRC met projected demand?

Projected weekday passenger journeys as per DPR for 2025 was 66 lakh. If we exclude weekends, our daily passenger journeys are already at 73 lakh – about 110% of DPR numbers.

But the CAG report had flagged ridership numbers, not passenger journeys.

It was a misunderstanding. Ridership and trips are different. The DPR talks about passengers boarding the Metro. If a passenger changes trains, it will be counted twice because he boarded two trains. If one person boards two Metros, the ridership will increase. But if you want to compare Metro with other modes of transport, like buses, you have to be on the same pedestal, otherwise comparison becomes difficult.

The formula to calculate passengers was changed in 2018-19. Earlier, one passenger, irrespective of how many Metros he boarded in a journey, would have been counted as one rider. Now, they are counted twice if they board two trains. Why?

We changed it to better understand how many people were travelling in the Metro. If someone changes a bus during a single journey, he is counted as boarding two buses. Similarly, if one takes two Metros during a journey, it should be counted boarding two trains.

Earlier, when the network was smaller, the difference was minimal. As interchanges increased, we realised the need to revise the metric. Today, a high number of passengers interchange between lines, which shows that ridership is increasing.

All modes of transport should complement each other. A parliamentary committee has also noted that apart from Delhi Metro, no mode of transport has been able to reach the projected ridership.

The 2021 CAG report flagged a rise in DMRC’s operating cost ratio – from 48.99% in 2011-12 to 80.55% in 2019-20. By back-of-the-envelope estimates, last year’s ratio was close to 90%. How do you explain this?

Our major costs are electricity, manpower, and asset maintenance. As assets age, maintenance costs rise. Other costs also increase over time. We are trying to increase revenue through higher ridership and non-fare streams.

Globally, only two or three Metros are operationally profitable, and Delhi Metro is one of them. As our non-fare revenue increases, the operating cost ratio will go down in the coming years. Metro systems also give rise to socio-economic benefits like reduced congestion, fuel savings, and lower pollution.

A decade ago, the Fourth Fare Fixation Committee said non-fare stream revenue should be at least 25% of Metro’s total revenue. In 2023, you said it was still around 20%, and you reiterated that last year. What is the figure now?

Currently, non-fare revenue accounts for around 30% of total revenue. Post-Covid, retaining commercial partners was challenging, but we addressed the issues. Transit-oriented development will boost non-fare revenue in the future, though it has a gestation period.

The Delhi government is thinking of setting up a Unified Metropolitan Transport Authority. Is it necessary?

Yes. Urban transport is complex and must be planned holistically. A unified authority would bring together experts from different modes to ensure integrated planning.

Why was Delhi Metro International Limited (DMIL) formed?

DMRC is now one of the largest and most experienced Metro operators globally. Having managed complex operations in Delhi, we are confident of operating internationally. DMIL was created to partner with global players and bid for overseas projects, where markets often favour local companies. We had tried in Denmark, but we weren’t even shortlisted there. We are actively pursuing opportunities, including in Africa.

Has the consultancy project in Dhaka been affected by the turmoil in Bangladesh?

We are supporting construction as part of a consortium. Work is ongoing but has been affected due to the situation there.