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The delhi-metro-project
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The delhi-metro-project


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  • 2. INTRODUCTION The need for a reliable public transportation was felt in Delhi for a long time. A comprehensive traffic and transportation study completed in 1990 highlighted the urgent need for a rail-based transit system comprising a network of underground elevated and surface corridors to meet the traffic demand projected for 2021. To make this dream a reality , the Delhi Metro Rail Corporation Limited (DMRC) was registered on 3rd May 1995 and it is solely responsible for the construction and operation.
  • 3. Reason Population of over 1 million. More registered vehicles than Mumbai, Kolkata & Chennai put together. Automobiles contributing to more than two – thirds of the total atmospheric pollution. High rate of road accidents More than 35 studies recommended Mass Rapid Transit System.
  • 4. Challenges DMP is the biggest urban invention in India since independence in 1947 Project has to be executed in very difficult urban environment Being the capital city, all actions under close scrutiny of VIPs Project implementation period compressed from 10 years to 7 years Metro being constructed to world class standards with frontline technologies Expertise and technology not available in the country.
  • 5. The Delhi Metro Project Second project in country after Kolkata Metro:1984. A 50:50 joint venture of GoI and GNCTD DMRC incorporated under Companies Act 1995 Duration of completion of Phase – 10 years by the end of 2005 Get approved by GoI in Sept 1996 (after civic organizations recommendations) P-I to connect Delhi’s business, education and shopping districts. Total land needed 340 hectares (58% govt., 39% private agriculture and 3% private urban land) P-I consists 3 Lines, total length 56 km, 50 stations (10 underground) and 3 maintenance depots.
  • 6. Line Length of Line RouteLine 1 Red Line 22km Shahdara to RithalaLine 2 Yellow Line 11km Vishwa Vidyalaya to Central SecretariatLine 3 Blue Line 23km Barakhamba to Dwarka
  • 7. Funding the Project GoI and GNCTD arranged the all capital required. Initial estimation of cost in 1996 Rs 60 billion Revised estimation cost in 2002 was Rs 89.27 billion Final cost of project approx Rs 99 billion with Rs 7 billion saving 2.2 million passenger/day to become the project viable later revised to 1.5 million passenger/day Economic IRR 21.4% Financial IRR 3% (low IRR some minister suggested to drop the project) Social sector project can benefit the regional economy in more than one ways.
  • 8. Cost StructureS. No. Source of Fund % of total cost Remark1 Equity 28% Equally subscribed by GoI & GNCTD2 Interest Free Loan 5% Land Acquisition3 JBIC 64% Time Sliced Soft Loan4 Property Development 3% Commercial activities Repayment period 30 years including 10 years grace period. Debt to equity ratio 2:1 Exchange rate risk bore equally by GoI and GNCTD. Sources of Revenues: fares, property development, taxes on local public. Property Development: Shopping Mall, IT Part, Multiplex, Restaurant and Stores etc. This project was exempted from custom and excise duties.
  • 9. The project team Mr. E. Sreedharan was appointed as project manager and managing director in Nov 1997. A technocrat retired from IR in 1990. Earned reputation for completing the project on time and within budget. 70% of senior staff hired on deputation from IR DMRC opted lean structure. Effective contract awarding and procurement process (to tackle with time, cost and corruption) Contract awarding process transparent and simple & fair and just Removed subjectivity from tender evaluation.
  • 10. Contd… Had two departments: project organization and operation & maintenance Experts required from: Civil, electrical and communications area etc. Young 18-30 years motivated team of professionals personally interviewed by MD. Faced skill shortage problem everyone was new to metro project No technical institute of such kind in the country. Suitable candidates sent HongKong MTRC for training. Metro Training School at Shastri Park Unique work culture: hard working, dedicated and professionally competent
  • 11. The Project Plan Individual accountability. Daily monitoring of progress. Weekly reviews and targets. Delhi Metro Act, 2002  Superseded Delhi Municipal Laws.  Lower courts barred from issuing stay orders.  Dedicated team of lawyers to prevent property disputes. Cost centers  Manpower.  Energy.  Material & maintenance.
  • 12. Road Blocks Low Financial IRR prompted second thoughts on the project Criticism due to inability to recruit, 70% were deputed from Indian Railways Lack of experience & specialized experts in Civil, Electrical & Communication Engineering Loss of Rs 5 million if one day lost Difference of opinion on gauge to be adopted
  • 13. Critical Success Factors ‘We mean business’ attitudes. Efficiency, courtesy & integrity in corporate culture. Corruption free Contract Awarding System & Procurement Process. Autonomy in decision making. Advance planning in utility diversion, minimizing public inconvenience.