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Delhi Transport Corporation (DTC) is set to monetise underutilised land at select bus depots by leasing parcels to private warehousing and logistics companies. The move aims to create recurring revenue while maintaining core operations such as bus parking and maintenance. Initial plans cover depots in Hasanpur, Dwarka Depot 8, Sarojini Nagar, Kalkaji, and Subhash Place, chosen for their strategic locations. DTC has faced growing financial pressure, with liabilities rising from INR 28,263 crore in 2015-16 to INR 65,274 crore in 2021-22. This initiative is part of a long-term plan to stabilise finances without affecting services.
Delhi Transport Corporation (DTC), facing persistent financial strain, plans to monetise parts of its underutilised depot land to generate long-term, recurring revenue. The corporation will lease selected land parcels to private firms in warehousing, logistics, and e-commerce while ensuring that bus operations, including parking and maintenance, continue uninterrupted. Advertisement
The depots identified for this initiative include Hasanpur, Dwarka Depot 8, Sarojini Nagar, Kalkaji, and Subhash Place. These sites were chosen for their proximity to major commercial hubs, arterial roads, and transport corridors, offering convenient access to markets and business districts. Temporary warehouse structures are expected to be permitted initially at these depots, creating a steady income source without compromising essential DTC operations.
A transaction advisor will be appointed to finalise land parcels and structure the lease process. The advisor will provide end-to-end support, including market assessment, valuation, and facilitating agreements with private tenants. A DTC official highlighted that the goal is to strengthen finances by optimising depot land use while maintaining service reliability.
Historically, DTC has struggled financially. As of late 2023, the corporation operated 40 depots and covered approximately 6.43 lakh kilometres per day during 2022-23. Despite its operational scale, its financial position weakened over the years. Liabilities increased from INR 28,263 crore in 2015-16 to INR 65,274 crore in 2021-22, mainly due to operational losses exceeding INR 14,000 crore. A CAG report tabled in the Delhi Assembly earlier this year noted the absence of a long-term business plan, clear performance targets with the Delhi government, and benchmarks compared with other state transport undertakings.
The leasing initiative is expected to balance revenue generation with operational needs. Transparent bidding processes will select experienced private tenants while ensuring that depot activities remain unaffected. By monetising strategically located land, DTC hopes to diversify its revenue streams, reduce fiscal pressure, and gradually stabilise finances, all without scaling down public transport services.
This move aligns with broader efforts to make state transport undertakings more financially sustainable. With long-term revenue from leased depot land, DTC could potentially reinvest in fleet maintenance, service improvements, and operational efficiency. The initiative also reflects a strategic shift toward leveraging assets more effectively to address persistent fiscal challenges.
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