With the ongoing COVID-19 pandemic and the restrictions on public transport in place, the incomes have dwindled even for the Delhi Metro Rail Corporation (DMRC).
As a result, DMRC is looking into salary cuts for its nearly 12,000 employees.
Read on to find out more…
How Much Will Be The Salary Cuts?
The official order issued by DMRC senior deputy general manager (HR) Sangeeta Shrivastava states, “In view 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% with effect from the month of August 2020, till further orders.”
The perks and allowances shall now be payable at the rate of 15.75% of the basic pay starting August 2020, the order states.
The order also states to put a hold on the sanctions of fresh advances for House Building Advance (HBA), laptop, festivals.
It added that the advances already sanctioned and those seeking medical treatment, Travel Allowance (TA), Dearness Allowance (DA), composite transfer grants will continue to be disbursed.
Why is DMRC Slashing Salaries?
DMRC’s services spanning 389 km across Delhi and parts of NCR have been suspended for nearly 5 months now in the wake of the COVID-19 outbreak. Sources in DMRC said due to zero passenger revenue it has incurred a loss of over Rs 1300 crore.
Hence the DMRC after months of postponing the salary cuts is finally resorting to the unavoidable measures to stay afloat.
Amidst the service stoppage, the corporation is also struggling to repay a loan installment to the Japan International Cooperation Agency (JICA). JICA had granted Rs 35,198 crore loan to DMRC.
DMRC now owes the Japanese company Rs 1242.83 crore in the current financial year, which includes principal and interest amounts.
The DMRC had earlier written to the Centre requesting it to defer the payment of its loan installment for FY20. However, the Centre has advised all metro operators, to approach their respective state governments.