As a study on continual occurring losses of Delhi Transportation Corporation

1. Prepared by
Shranik Jain (2017SMN6668)
Varun Dixit (2017SMN6536)
Prachi Bhambani (2017SMN6506)
Rohit Rana (2017SMN6666)
Kanika Sharma (2017SMN6540)
Priyanka (2017SMN6530)
A s t u d y o n c o n t i n u a l o c c u r r i n g l o s s e s o f

2. P R E S E N T A T I O N O U T L I N E
What to Expect Today
An Introduction
Problem Statement
Internal Analysis
External Analysis
Strategic Suggestions

3. A N I N T R O D U C T I O N
Short Summary
Delhi Transportation system has an average ridership of about 30 Lac Passengers every day while Delhi
Metro has more than 8 Lacs. Still, DTC continues to be the most significant loss-making road transportation
system in India.
In this study, the analysis of the Ministry of Road Transport Annual report would be used to attempt for
providing strategic solutions which could make DTC profitable again.

4. 3,944 +1,634
DTC+DIMTS
BUSES
34
DEPOTS
27,818
EMPLOYEES
15 LAC+
SQM LAND
80
ROUTES
30 LAC
DAILY
RIDERSHIP
F E W N U M B E R S . . .

5. P R O B L E M
S T A T E M E N T
Based on data available with the annual report, following
specific problems with operations as well as financial situation
are identified:
DTC faced a loss of Rs. 3,411 Cr in 2015-16 and Rs. 2,917 Cr in
2014-15. It has been running in loss continuously since 1948.
DTC paid Rs. 3,277 Cr as an interest to Govt. of Delhi during
2015-16. Govt. is providing bailout packages since 1996 but
interest due is only piling up. Debt Management is one of the
major issue identified for providing a long-term solution.
DTC is facing a continually reducing ridership from 170 Cr
during 2012-13 to 129 Cr during 2015-16.
DTC saw its worst fleet count during 2016-17 at 3,951 nos. from
5,602 nos. During 2012-13.

7. I N T E R N A L A N A L Y S I S
Lower Vehicle
Utilisation
High Staff Ratio
Recruitment &
Incentive Policy
Need of Admin
& Operational
Reform

8. R s . 2 . 2 6
K m / k g
Tamil Nadu STC has an efficiency of
around Rs. 5.68 per litre of
high-speed diesel
Fleet and crew scheduling
R s . 3 4 , 1 3 9
/ b u s / d a y
External Analysis
Highest Operation cost against all other
bus operating bodies of India
Fare collection System
Fleet monitoring
Passenger Information
System
Route Optimisation

9. Key Tactics
Service Planning &
Operation
Fuel Efficency
Branding &
Marketing
Vehicle Design
&
Fuel Types
Enforcement
Safety
Infra Planning
&
Design
Technology
Financial
Mechanism

10. S T R A T E G I C S U G G E S T I O N S ( C U R R E N T S I T U A T I O N )
Phase out interest
payment
Increase revenue from
sources under bus
corporations’ control
Ex: Advertisment
Personnel cost curtailment
Rationalise and reduce
the internal costs and tax
burden

11. Fleet utilization (per cent)
Vehicle utilisation (km per bus per day)
Staffing ratio
Total operating cost per km (Rs)
Total passengers per bus per day
Total traffic revenue per km (Rs)
Trip efficiency (ratio of total operated to
total scheduled trips daily)
Km efficiency (ratio of total operated to
scheduled km daily)
Breakdown per 10,000 km
83.63
Performance
Characteristics
Cluster Buses
DTC
191
7.05
79.97
31.21
927
0.85
0.83
4.5
92
215
6
51.54
30.08
831
0.89
0.88
0.28

12. Data Collection-Survey
SERVICE PLANNING &
OPERATIONS(STRATEGIC IMPLMENTATION)
Variation in a load
of peak & off-peak
demand.
Clustering of
buses
Feedback
Inefficiency and
performance of staff
can be judged.
Initiating New
Routes
Planning Type
of Service
Scheduling
Demand
Driver Performance

13. S E R V I C E P L A N N I N G
& O P E R A T I O N S
Route Structure
Route and Service
Optimization
Complementing
Mass Transit
systems through
Feeder Services

14. FUEL
EFFICIENCY
Driver Training
Incentivisation
Vehicle
maintenance
Management
system

15. T H A N K Y O U !