Delhi Metro under a cloud

The much-touted Delhi metro, run by the Delhi Metro Rail Corporation, has been censured by in an audit by the Comptroller and Auditor General (CAG) of India. DMRC has denied many of the charges by the CAG.

The charges levelled are of different kinds. Some of them are:

  • Achieving only a very small proportion of the promised ridership, with actual ridership being only of the order of 25-30% of the promised ridership.

  • There were questions raised about accountability of the DMRC management to either the Delhi or central governments.
  • Acquiring land in excess of its needs. The excess land acquired ranged from 14% to 354%, and the property concessions were auctioned away at prices at or very close to the reserve price.
  • Procedural problems regarding the way tenders were managed, such as revising or approving estimates after the financial bids were opened, allowing discounts to some tenderers, re-negotiating and relaxing terms with the lowest bidder after bidding closure etc.
  • Problems with quality control procedures in testing of equipment from suppliers etc.

Here is the actual CAG report while here are some media links to reports about it:

  1. Mint
  2. Hindu Business Line
  3. Business Standard

Here are links to two reports of DMRC denying the CAG charges.