DMRC is the first railway project to be registered under Clean Development Mechanism of United Nations to earn carbon credits. The agency has earned Rs 2.4 crore from the sale of 82,000 certified emission reductions (CER) under the carbon credits scheme by the Japan Finance Carbon Ltd in 2008 and 2009. DMRC was the first railway project in the world to be registered by the United Nations under the clean development mechanism (CDM). A Germany-based validation organization TUV NORD which conducted an audit on behalf of UNFCCC certified in 2009 that DMRC had stopped emission of 90,004 tons of carbon dioxide from 2004 to 2007 by adoption of regenerative braking systems in the DMRC trains.

1. POST GRADUATE SECTION IN TRANSPORTATION
ENGINEERING AND PLANNING
CIVIL ENGINEERING DEPARTMENT
SCHOOL OF ENGINEERING AND TECHNOLOGY,
SANDIP UNIVERSITY
NASHIK – 422 213, MAHARASHTRA
‘TRANSPORTATION ECONOMICS AND EVALUATION’ [‘PTR -102’]
CIA 3 (Graduate Report) PRESENTATION ON
“DELHI METRO”
GUIDED BY:
GIRISH GADVE
SUBMITTED BY:
KUNAL BHADANE
PRASAD THETE
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2. CONTENTS
MASS TRANSPORT SYSTEM 3
CURRENT SCENARIO IN INDIA 4
MISSION, KEY ARCHITECTS, REASON, ADVANTAGES 7
EARNING FROM DIFFERENT SOURCES 8
MEANS OF FINANCE 9
SOCIAL BENEFITS 11
COST OF PROJECT 12
TECHNIQUES OF CAPITAL BUDGETING 13
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3. MASS TRANSPORT SYSTEM:
• MRT :- Lite rail , Commuter rail, Metro rail
• BRT:- Bus Road Transport
MRT VS BRT
HIGH CAPACITY OF MASS
TRANSPORTATION
COMARATIVELY LOW CAPCITY IN MASS
TRANSPORTATION
CONSTRUCTION COST IS MORE CONSTRUCTION COST IS LOW
BRT IS USE AS FEEDERS IN MRT MAY BE OR NOT
3

4. Fig. Map showing metro system status
CURRENT SCENARIO IN
INDIA:
4

5. METRO IN OPERATION CITY STATE OPENING YEAR OPERATIONAL KM Under construction No of stations
operation
KOKATA METRO KOLKATA W.B. 1984 27.22 1133.42 24
DELHI DELHI NEW DELHI 2002 231 140 160
NAMMA METRO BENGALURU KARNATAK 2011 42.3 34.37 41
RAPIDMETRO GURUGRAM HARYANA 2013 11.7 11
MUMBAI METRO MUMBAI MAHARASHTRA 2014 11.4 68.9 12
JAIPUR METRO JAIPUR RAJSTHAN 2015 9.63 2.4 9
CHENNAI METRO CHENNAI TAMILNADU 2015 27.88 19.67 20
KOCHI METRO KOCHI KERALA 2017 18.4 25.6 49
LUCKNOW METRO LUCKNOW U.P. 2017 8.5 33 33
HYDERABAD HYDERABAD TELANGANA 2017 30 41.6 64
UNDER CONSTRUCTION
NAGPUR METRO NAGPUR MAHARASHTRA 2018 38.2 36
NOIDA METRO NOIDA UTTAR PRADESH 2018 29.7 22
METRO LINK EXPRESS
GHANDHINAGAR AND
AHMEDABAD
AHMEDABAD AND
GANDHINAGAR
GUJARAT 2018 19 32
NAVI MUMBAI METRO NAVI MUMBAI MAHARASHTRA 2019 11.1 20
PUNE METRO PUNE MAHARASHTRA 2020
IN PLANNING
KANPUR METRO KANPUR U.P. 2021
VISKHAPATNAM METRO VISAKHAPATNAM A.P. 2021
SURAT METRO SURAT GUJRAT 20121
COIMBATORE METRO COIMBATORE TAMIL NADU 2022
Table: Status of metro in India
5

6. Delhi Metro Rail Network 6

7. Mission:
1) To cover the whole Delhi and adjoining areas with a metro network
by the year 2021.
2) To serve the customers including ‘differently abled’ Commuters
with passion.
3) To sustain the image of being number one in the transportation
sector in India and to be among the top 3 Metro Rail systems in Asia
with regards to: ● Safety ● Reliability ● Punctuality ● Quality and
●Responsiveness to the customers.
4) To make Delhi metro self-sustainable.
Reason:
1) Population of over 1 million.
2) More registered vehicles than Mumbai, Kolkata & Chennai put
together.
3) Automobiles contributing to more than 2/3 rd of the total
atmospheric pollution.
4) High rate of road accidents.
Key Architects:
1) The Central Road Research Institute (CRRI),New Delhi
2) Metropolitan Transport Team (MTT) of the Indian Railways
3) Delhi Development Authority(DDA)
4) The Study Group of the Ministry of Railways
5) RITES (Rail India Technical & Economics Services)
6) Mr. E. Sreedharan ,Managing Director, DMRC
Advantages:
1) Has a carrying capacity as high as 60,000 – 80,000 phpdt
2) Requires 1/5th energy per passenger km. compared to road based
system.
3) Causes no air pollution in the city and lesser noise levels.
4) Occupies no road space if underground and only about 2 metre
width of the road, along central median, if elevated.
5) Is more reliable, comfortable and safer than road based system.7

8. 8
Screenshot of news from BusinessToday.in

9. Every organization has there method for earning. It may be from selling their product or providing service or
else. In DMRC have eight sources for revenue -
1- Selling from token
2- Selling from Smart Card (Travel Card)
3- Selling from Tourist Card
4- By advertising
5- Selling from space (for retail store, restaurants, ATM and other)
6- By Penalties
7- By movie clipping
8- By Carbon Credit
Table: Earnings from different sources 9

10. MEANS OF FINANCE:
This is joint venture, that’s why GOI and Delhi Government are paying 30% cost of the project,
60% from Japan bank.
1. 15% investment by the Government of India
2. 15% investment by GNCTD
3. 56% Loan from JBIC (Japan Bank for International Cooperation)
4. Remaining 8% from Interest-free Loans for land acquisition and 6% from Property Development.
Table: Sources of Funding
10

11. 11

12. SOCIAL BENEFITS:
• DMRC is the first railway project to be registered under Clean Development Mechanism of United Nations to
earn carbon credits.
• The agency has earned Rs 2.4 crore from the sale of 82,000 certified emission reductions (CER) under the
carbon credits scheme by the Japan Finance Carbon Ltd in 2008 and 2009.
• DMRC was the first railway project in the world to be registered by the United Nations under the clean
development mechanism (CDM).
• A Germany-based validation organization TUV NORD which conducted an audit on behalf of UNFCCC certified
in 2009 that DMRC had stopped emission of 90,004 tons of carbon dioxide from 2004 to 2007 by adoption of
regenerative braking systems in the DMRC trains.
12

13. COST OF PROJECT:
• It is important to examine cost of the projects before actually talking up its economic appraisal.
• The financial evaluation of project required its cash flows for the project.
• The investment expenditures made by the project in one of the years during its life time constitutes the
purchase of capital goods, cost of acquisition of land and payments made to skilled and unskilled labor and
material inputs for project construction.
• For all of these requirements DMRC needs big debt capital.
13

14. TECHNIQUES OF CAPITAL BUDGETING:
1) Net Present Value:
Net Present Value (NPV) is the difference between the present value of cash inflows and the present
value of cash outflows. NPV is used in capital budgeting to analyze the profitability of a projected investment or
project.
The following is the formula for calculating NPV:
2) Profitability Index:
The profitability index is an index that attempts to identify the relationship between the costs and
benefits of a proposed project through the use of a ratio calculated as:
3) Internal Rate of Return:
Internal rate of return is a discount rate that makes the net present value (NPV) of all cash flows from a
particular project equal to zero. IRR calculations rely on the same formula as NPV does.
Generally speaking, the higher a project's internal rate of return, the more desirable it is to undertake the project14

15. CALCULATION OF NPV AND PI:
Initial Cost of Metro is Rs. 14432 crores.
NPV = PV of cash flows – Initial Investment
Since market rate is 10%, NPV is calculated at 10%
Calculation of cash flows at market rate of 10% is done
Sum of PV of cash flows at 10% = Rs. 28038.54763
So, NPV = 28038.55 – 14432 = 13606.55
Profitability index = PV of future cash flows/Initial investment
= 28038.55/14432 = 1.94
If PI > 1 than project is profitable
Therefore, PI is 1.94
This is profitable.
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16. CALCULATION OF FINANCIAL IRR:
At IRR, NPV = 0
NPV at 20% = 259.2526501
NPV at 24% = -2462.83911
Therefore, IRR by interpolation
IRR = 20.381%
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17. 17Table: Calculation of NPV

18. 18
REFERENCES:
1) “Economic and Equity Evaluation of Delhi Metro” by Kirti Bhandari, Hayashi Yoshitsugu
2) “Demand Elasticity of Capacity Offered for Urban Rail Transport” by Pradeep Kumar Sarkar, Jain Amit Kumar
3) Sustainability report 2014-15 of DMRC
4) “Social Cost-Benefit Analysis of Delhi Metro” by M N Murty, Kishore Kumar Dhavala, Meenakshi Ghosh and
Rashmi Singh
5) “An Investigation of Financial Analysis of Delhi Metro & Factors Influencing Ridership” by Mona Goel, Dr. R.K.
Sharma

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