The Delhi Metro Rail Corporation (DMRC) has formally requested over INR 6,200 crore from the Delhi government to address its urgent financial needs as it prepares for the revised budget for 2024-25. DMRC requires INR 4,872 crore for immediate payment, including INR 2,872 crore for a loan from the Japan International Cooperation Agency (JICA) and over INR 2,000 crore for exchange rate fluctuations. Additionally, DMRC seeks INR 724.74 crore for Phase 3 completion and INR 400 crore for initiating Phase 4, which can be paid in installments as needed, along with INR 1,645.72 crore to reimburse operating losses from previous years.
The Delhi Metro Rail Corporation (DMRC) operates an extensive metro network of 393 kilometres in Delhi and the National Capital Region (NCR). It is a joint venture between the Delhi and central governments. DMRC has been financed through a mix of government equity and soft loans from the Japan International Cooperation Agency (JICA) to build and maintain its infrastructure, which connects various parts of the city and neighbouring areas like Gurgaon, Faridabad, Noida, Ghaziabad, and Bahadurgarh. Currently, the construction of three priority corridors, spanning 65 kilometres, is progressing rapidly and is expected to be completed by 2026.
As the Delhi government begins preparing revised budget estimates for the 2024-25 financial year, DMRC has formally requested over INR 6,200 crore to address various capital and operational expenses. In a letter to the transport department of Delhi, DMRC highlighted its urgent financial needs. The agency requires INR 2,872 crore to fulfil its share of the loan taken from JICA for expanding the metro network. Additionally, it seeks over INR 2,000 crore to address exchange rate fluctuations on this loan, which must be settled this year.
DMRC is also seeking funds to continue the Phase 3 expansion and initiate construction of Phase 4 corridors. The revised completion cost for Phase 3 indicates that the Delhi government is required to contribute INR 2,415 crore. From this, DMRC has requested INR 724.74 crore to be included in the current year's budget. To ensure the smooth execution of Phase 4, DMRC has asked for INR 400 crore for capital expenditures. Earlier this year, DMRC requested INR 1,772.86 crore for the 2024-25 budget, including INR 900 crore for capital expenditure and INR 822.86 crore as a grant to cover operating losses. However, the Delhi government allocated only INR 500 crore under the capital expenditure account, which has already been disbursed to DMRC.
In his recent letter to the transport secretary, DMRC's director of finance emphasised the urgency of releasing INR 4,872 crore, primarily for JICA repayments and exchange rate fluctuations. While DMRC indicated that funds for capital expenditure related to Phase 3 and Phase 4 could be released in suitable installments, it insisted that the dues for the unpaid JICA loan should be released in one go. Additionally, DMRC has requested INR 1,645.72 crore from the Delhi government to reimburse operating losses incurred during the financial years 2020-21 and 2021-22, which they are asking to be paid in suitable installments.
The Delhi Metro Rail Corporation (DMRC) is seeking over INR 6,200 crore from the Delhi government to address urgent capital and operational expenses, including repayments to the Japan International Cooperation Agency (JICA) and ongoing expansion projects. As DMRC continues to enhance its extensive metro network, timely financial support will be crucial for ensuring the completion of both Phase 3 and Phase 4 corridors and maintaining efficient operations.
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