The Delhi Metro is by far the largest and busiest metro in India, and second oldest after the Kolkata Metro. Delhi Metro has been operating with a loss on an EBT basis since 2010, although the loss has reduced after 2015-16. EBITDA margin declined from 73 per cent in Fiscal 2007 to 27 per cent in Fiscal 2016-17 before improving to 30 per cent in 2017-18.
In view of this, the Delhi Government is planning to privatize the Delhi Metro project on public-private participation (PPP) model and the Delhi MRTS may be delivered on lease to individual players. The discussion has been commenced in this regard. NITI Aayog has made a plan and gave it to the government for review.
According to the NITI Aayog, if the government performs the proposed plan, the Delhi Metro Rail Corporation (DMRC) can get monetary advantages from Rs 39,000 crore to Rs 80,000 crore. The government has to finalize a decision on how the suggestions were provided by NITI Aayog can be performed.
To build the infrastructure of the Delhi Metro project, Rs 70,000 crore has been spent till now. If the network extends further, the government will also have to pay a heavy amount. The NITI Aayog has said the government that after renting the metro amount will be obtained from the loan is taken will be refunded.
As per the proposal drafted by NITI Aayog, Delhi Metro has incurred a total expenditure of Rs 70,433 crore for implementation of track infrastructure, procurement of Rolling Stock, and other actions towards Phase I, II, and III operationalization.
This payment has been funded by Rs 36,525 crore of long-term debt increased from Japan International Cooperation Agency (JICA) with Rs 33,908 crore of equity or subordinated debt from the Government of India/GNCTD and grants from different states or Central Govt institutions.
Rs 17,365 crore out of the latter has been backed as equity through the Government and Government of National Capital Territory Delhi in a 50 per cent ratio, where the balance quantum has been funded as non-interest bearing subordinate debt from the Government, GNCTD and monetary or non-monetary grant states or Central Government institutions. These commence land permission through urban development authorities like DDA, HUDA, NOIDA etc.
NITI Aayog has developed three lease models in these, one model is for 20 years, the second for 50 years, and the last for 99 years. There are track infrastructure and train under Model No.1 that can be rented to a private company for 20 years.