New Delhi, Aug 19 (IANS): In a drastic step, the Delhi Metro Rail Corporation (DMRC) said on Tuesday that it would reduce the perks and allowances for employees by 50 per cent with effect from August.

Delhi Metro, which used to ferry more than 20 lakh people daily, had halted it's operations when the nationwide lockdown was imposed in March to fight the Covid-19 outbreak. Since then, it has been facing severe financial crunch.

"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 per cent w.e.f. the month of August 2020," the DMRC said in a statement.

Accordingly, starting with the salary for the month of August , perks and allowances shall now be payable a 15.75 per cent of the basic pay, it added.

The DMRC also stated that all grants of fresh advances for house building advance, multipurpose advance, laptop advance and festival advance will be kept on hold till further order.

"However, advances already sanctioned shall continue to be disbursed. The advances sought for medical treatment, TA, DA and composite transfer grant (CTG) will continue to be granted to facilitate the employees," the DMRC said.