The Delhi Transport Corporation (DTC) is set to undergo a significant transformation, with plans to convert its existing bus depots into high-value commercial hubs projected to generate Rs. 2,600 crore (US$ 304 million) in revenue. This strategic move, led by the Delhi government, aims to revive the financially ailing transport utility by unlocking the commercial potential of prime land assets across the city.

Revenue from Redeveloped Depots

The redevelopment plan has been fast-tracked and initial approvals have already been granted for the Banda Bahadur Marg and Sukhdev Vihar depots. The projected revenue from these two sites is Rs. 1,858 crore (US$ 217.25 million) and Rs. 758 crore (US$ 88.63 million), respectively. These sites will be redeveloped into multi-level depot complexes that integrate:

• Parking infrastructure

• Commercial office spaces

• Advertising spaces

• Mobile tower installations

Unlike traditional public sector projects, this initiative will follow a self-sustaining model. This means no financial burden will be placed on either the DTC or the Delhi government, allowing for rapid implementation without resource strain. The execution timeline is estimated between 21 to 28 months.

Addressing Financial Losses

The move comes at a critical juncture for the DTC. According to reports by the Comptroller and Auditor General (CAG), the corporation’s accumulated losses have ballooned from Rs. 25,299.87 crore (US$ 2.96 billion) in FY2015–16 to Rs. 60,741.03 crore (US$ 7.10 billion) by FY2021–22. These losses have been attributed to a range of factors, including:

• Declining operational efficiency

• Aging bus fleet

• Low passenger revenues

• Underutilised land and infrastructure assets

The CAG has also flagged the shrinking size of the DTC’s bus fleet and has recommended urgent systemic reforms to make operations more viable and commuter-friendly.

Infrastructure-Led Revitalisation

The commercialisation of bus depots is part of a larger revival plan aimed at modernising DTC’s infrastructure and reimagining public transport spaces. By turning depots into revenue-generating entities, the government plans to:

• Enhance financial sustainability

• Reduce DTC’s dependence on subsidies

• Create employment opportunities

• Improve last-mile connectivity

These commercial hubs will not only house DTC operations but also accommodate retail, office, and mobility services, creating vibrant urban spaces.

Integration with Electric Mobility

Parallel to the depot redevelopment strategy, the Delhi government has also launched the Delhi Electric Vehicle Initiative (DEVI). Under this scheme:

• Mini-electric buses were introduced on May 2, 2025

• The goal is to improve last-mile connectivity in congested areas

• Focus is on phasing out aging diesel buses and introducing electric alternatives

The electric mobility initiative supports Delhi’s sustainability goals and aims to make its public transport network cleaner, quieter, and more efficient.

A Zero-Cost, High-Yield Strategy

One of the most attractive elements of this plan is the zero-investment model. The government will rely on public-private partnerships (PPP) and leasing mechanisms to redevelop the depots. This ensures:

• No upfront capital expenditure by DTC

• Private sector expertise in development and management

• Long-term lease income for DTC

• Urban infrastructure improvement without additional taxpayer burden

These models are already being used in transport hubs in cities like Mumbai and Bengaluru, showing that urban infrastructure can be revitalised sustainably and profitably.

Policy Vision and Urban Impact

The project is in alignment with Delhi’s broader urban development and transport vision, which includes:

• Expanding metro integration

• Improving multi-modal transport

• Reducing traffic congestion

• Increasing non-fare revenue for transport bodies

By converting dormant land assets into functional, mixed-use spaces, the Delhi government is not only addressing DTC’s financial instability but also supporting the city’s urban renewal.

Expected Outcomes

• DTC to gain Rs. 2,600 crore in revenue, providing a much-needed capital buffer

• Improved commuter facilities at depots including parking and interchanges

• Enhanced revenue diversification beyond just bus fare collection

• Creation of urban mobility hubs contributing to economic activity in surrounding areas

• Public transport image transformation from utilitarian to modern and accessible

Conclusion

The redevelopment of DTC depots into commercial hubs represents a milestone initiative by the Delhi government to transform loss-making assets into revenue engines. By combining smart urban planning, electric mobility, and self-sustaining financial models, this plan has the potential to revive public transport, generate employment, and reshape Delhi’s infrastructure landscape.

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