Urban transport in India faces a major financial challenge. Most metropolitan road and metro systems run at a loss due to high operating costs and low fare recovery.
While metro rail networks expand rapidly across Indian cities, traditional road-based transport undertakings in metros continue to bear the burden of urban mobility without matching revenue.
A closer look at government data shows that profit-making in this sector is rare, both for city road transport undertakings and metro rail systems. Only a few have managed to report net gains.
State Metro is Making Profit in India
The financial records of metropolitan road transport undertakings show one clear fact, almost all run in losses. Out of 18 metropolitan SRTUs across India analyzed between 2016–17 and 2018–19, only one made a profit: Meerut City Transport Services Ltd. (TSL).
Meerut City TSL stood out for consistent profitability over three consecutive years. It remains the only metropolitan SRTU in India to record a net profit.
| Financial Year | Net Profit (₹ crore) | Rank (All India) |
|---|---|---|
| 2018–19 | 30.20 | 4 |
| 2017–18 | 13.67 | 4 |
| 2016–17 | 21.25 | 2 |
Meerut’s success came from controlled operating costs and steady ridership. No other metropolitan transport service matched this record during the same period.
The largest losses among all SRTUs in India were recorded by metropolitan undertakings. Despite high passenger numbers, operational costs and subsidies weighed them down.
State Metro Running in Loss
| Undertaking | City / State | Net Loss (₹ crore, 2018–19) | Key Factor |
|---|---|---|---|
| Delhi Transport Corporation (DTC) | Delhi | -5,259 | High staff and interest costs |
| BEST Undertaking | Mumbai | -1,013 | Rising fuel and wage expenses |
| Metro TC Ltd. | Chennai | -519 | High urban operation costs |
| Bangalore Metropolitan TC | Bengaluru | -Noted loss | High input costs, low fare recovery |
Delhi TC alone accounted for over ₹5,200 crore in losses, mainly due to interest payments forming about 66% of total cost. Even high passenger volumes, as seen in Metro TC Chennai, couldn’t offset rising expenses and regulated fares.
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