The responsibility for operational losses of the Delhi Metro primarily lies with the Government of NCT of Delhi, and both the State and Union shall equally bear land costs.

1. Report No. 97 submitted by EPCA
Heard the learned counsel for the parties. With respect to Phase IV of Delhi Metro, we have considered the EPCA Report No. 97 dated 1-7-2019. There are three disputes raised by the Government of NCT of Delhi which are detailed in the Report and are reproduced hereunder:

2. With respect to bearing of the operational loss, as per the stand of the Government of India, it is to be borne by the State Government i.e. Government of NCT of Delhi. The Government of NCT of Delhi has taken a stand that the operational loss, if any, incurred be shared in 50 : 50 ratio between the State and the Union. The EPCA has examined the issue and has opined that as the DMRC has not suffered any operational loss for the last 5 years, it is not likely to suffer loss in future also. We find nothing objectionable that in case the metro suffers any loss, that is to be borne by the State Government, as the metro is the local conveyance within the State and considering the nature of the facilities, the loss, if any, should be borne by the State Government. However, the State Government has to ensure, at the same time, that its policies are such which do not cause any operational loss or otherwise due to the running of the metro trains. Hence, we do not find any substance in the objection raised by the Government of NCT of Delhi.

3. With respect to the repayment of JICA loan in case of default or currency fluctuation cost on JICA loan, a policy has been framed by the Central Government considering the various metro projects covering 6 States, excluding Rajasthan, which is bearing its own expenditure. For other six States, the policy has been framed, according to which, the State Government has to provide support to ensure financial sustainability during operations. So far, the DMRC has not made any default in repayment of loan. We do not find anything objectionable in case the Government of NCT of Delhi alone should bear the responsibility to provide the support, if any, which may become necessary to repay the soft loan provided for the project. The Government of NCT of Delhi is bound to ensure that the financial health of DMRC is maintained properly and no steps are taken so that it may run into losses.

4. With respect to the sharing of land cost, it is to be borne by the State Government, as per the policy of 2017 framed by the Union of India. However, in the previous Phases I to III of Metro, the Central Government as well as the Government of NCT of Delhi have borne the land cost in 50 : 50 ratio.

5. Considering the peculiar position of Delhi, being the capital of the country and also the pollution aspect, it is the responsibility of the Government of India also to make a departure from the policy to be applicable only in the case of Delhi. We direct that out of the land cost of Rs 2447.19 crores, 50% shall be borne by the Government of NCT of Delhi and 50% by the Union of India. In view of the aforesaid, the objections raised by the Government of NCT of Delhi and EPCA Report No. 97 are disposed of. The parties to act accordingly forthwith and ensure that no delay is caused in Phase IV and the requisite amount is released timely to the acquiring authority.

6. The Union of India as well as the Government of NCT of Delhi shall work out the modalities and release the amount within three weeks from today. Let compliance be reported to this Court. List after one month.
IA No. 109733 of 2019 (Application for directions on behalf of Government of NCT of Delhi)

7. List the application for consideration on 23-9-2019.
IA No. 79444 of 2019 (Application for directions on behalf of East Delhi Municipal Corporation) and IA No. 177432 of 2018 (Application for directions on behalf of North Delhi Municipal Corporation)

8. List next week.
Civil Appeals Nos. 4908-09 of 2019, CAs N