Passenger transportation is an important part of the overall development problem of the nation and affects in some way nearly all aspects of mobility in general. Transportation is defined as the movement of freight and passengers from one place to another. Delhi is a fast growing city, which over the years has undergone landmark change in the characteristic of its transportation sector. The mobility in Delhi is inevitable. This paper attempts to deals with the problems & the critical issues in the traffic & transportation of the city. Further it attempts at proposing solutions to improve and manage the system caused due to a decline in the performance of the state transport undertaking with a special reference to Delhi Transport Corporation. A linear Programming based technique called as Data envelopment Analysis is used to measure the efficiencies of various decision-making units. The analysis on this study is sought to provide a way to obtain a valid efficiency measure for each State Transport Undertaking.