Delhi Metro announces steep pay cuts amid ‘extreme adverse financial’ crisis

On Tuesday, the Delhi Metro announced huge pay cuts for its employees citing an “extreme adverse financial” crisis due to the coronavirus pandemic.


As per the corporation’s records, the Delhi Metro services remain suspended for around five months (since March 22) because of the coronavirus breakout in the capital. Because of these multiple sets of crises the Metro is struggling to pay back its loan installments to the Japan International Cooperation Agency (JICA).


What did the order say?

“Because of the extreme adverse financial condition due to non-operation of metro services, the following orders are issued: It has been decided that the perks and allowances shall be reduced by 50 percent with effect from the month of August 2020, till further orders,” says the order issued by DMRC senior deputy general manager (HR) Sangeeta Shrivastava.

The order further put on a hold on all the sanctions that were given for House Building Advance (HBA), laptops, and festivals. However, there is no hold on the sanctions that were given for medical treatment. Meanwhile, TA & DA will continue to be granted.


Earlier the Delhi Metro Rail Corporation (DMRC) had written a letter to the center requesting the government to adjourn the payment of its loan installment for the year 2020-21.

JICA has granted a loan of Rs. 35,198 crores to DMRC and now DMRC owes Rs. 1242.83 (which includes principal and interest amounts crores) of JICA in the current financial year.

Replying to the DMRC’s problem the center has suggested it to approach the state government. Not only to the DMRC, but the center has also advised to all other metro operators of the country to approach to their respective state governments.

Facts About Delhi Metro

Delhi Metro is operated by DMRC which is a center-state Public Sector company. Delhi Metro covers 389 km across Delhi and parts of NCR.


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