THE DELHI METRO PROJECT
EFFECTIVE PROJECT MANAGEMENT IN PUBLIC SECTOR
PRESENTED BY :-
Gourav Ranjan &
The need for a reliable public
transportation was felt in Delhi for a long
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
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.
Delhi Metro is the biggest successful urban
project in India since independence in 1947
Project has to be executed in very difficult urban
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
The Delhi Metro
Second project in country after Kolkata
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
Phase-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)
Phase-I consists 3 Lines, total length 56 km, 50
stations (10 underground) and 3 maintenance
Line Length of Line Route
Line 1 Red Line 22km Shahdara to Rithala
Line 2 Yellow Line 11km Vishwa Vidyalaya to Central
Line 3 Blue Line 23km Barakhamba to Dwarka
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.
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.
Repayment period 30 years including 10 years grace
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
S. No. Source of Fund % of total
1 Equity 28% Equally subscribed by
GoI & GNCTD
2 Interest Free Loan 5% Land Acquisition
3 JBIC 64% Time Sliced Soft Loan
3% Commercial activities
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
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
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
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
The Project Plan
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
Material & maintenance.
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
Loss of Rs 5 million if one day lost
Difference of opinion on gauge to be adopted
‘We mean business’ attitudes.
Efficiency, courtesy & integrity in corporate
Corruption free Contract Awarding System &
Autonomy in decision making.
Advance planning in utility diversion,
minimizing public inconvenience.