The Delhi Metro Rail Corporation (DMRC) was established to build and operate the Delhi Metro. It is jointly owned by the Government of India and Government of Delhi. The metro project has been implemented in multiple phases, with funding coming from the central and state governments, as well as loans primarily from the Japan International Cooperation Agency. While the metro was operating at a loss for several years, revenues have grown and debt-to-equity ratios have improved over time. The DMRC earns revenue through fares, advertising, retail spaces, penalties, and other means. Some accidents occurred during construction but the metro now operates safely.

1. DELHI METRO RAIL
CORPORATION

3. Implementers/ Stakeholders‡
• The Delhi Metro Rail Corporation Ltd. (DMRC).‡
• Ministry of Railways and Ministry of Urban Affairs, Government of
India.‡Government of the National Capital Territory of Delhi (GNCTD).‡
• Delhi Transport Corporation (DTC).‡
• Governments of Uttar Pradesh & Haryana (At a later date) General
Consultants (A consortium of Indian and Overseas Consulting Firms).‡
• KSHI JV, a consortium of builders for open cut works with Maunsell,
Australia engaged as the lead design consultant.‡
• IMCC, a consortium of builders for underground works with Mott
MacDonald, UK as the lead design consultant.‡
• The Japan Bank for International Cooperation (JBIC).‡
• The citizens of Delhi (Those who pay and use the Metro and those
who are indirectly benefited).

4. Developer
• Central Road Research Institute (CRRI), New Delhi‡
• Metropolitan Transport Team (MTT) of the Indian Railways‡
• Delhi Development Authority (DDA)‡
• The Study Group of the Ministry of Railways‡
• RITES (Rail India Technical & Economic Services)‡

7. Funding.
•Delhi Metro Rail Corporation Limited (DMRC), a state-
owned company with equal equity participation from Government of
India and Government of Delhi, built and operates the Delhi Metro.
•As of March 2015, total debt stood at ₹246 billion (US$3.7 billion),
while equity capital was ₹214 billion (US$3.2 billion).
•Cost of the debt is 0% for Govt of India and Delhi government loans,
and between 0.01% and 2.3% for Japan International Cooperation
Agency loans.

8. Funding of the Project
• 20% of the cost is borne by the Federal Government.
• 20% of the cost is borne by the State Government.
• About 50 – 60% of the cost through JICA Loan.
• 5% of the cost by DMRC through Property Development.

9. Funding
Phase 1:
• About 60% of the project cost was financed by the Government of Japan by way of a soft
loan through the Japan Bank for International Cooperation (JBIC), now called the Japan
International Cooperation Agency (JICA).
• The Central Government and the State Government jointly financed 28% of the project cost
through equity contributions in addition to providing a subordinate loan to cover the cost of
land acquisition which roughly worked out to 5% of the project cost.
• The balance 7% funds were internally generated through property development

10. Phase 2
The second phase of Metro construction:
• The JICA loan has contributed 54.47 percent of the funding.
• While the equity from the Governments of India and Delhi increased to 16.39 percent each.
• For the construction of the Airport Express link, 39 percent was contributed by the governments
of India and Delhi and 46 percent by the concessionaire as this was the first ever project of the
Delhi Metro on the public-private partnership model.
• The total cost of phase 2 was 18,783crores approximately.

11. Phase 3:
The third phase of Metro construction:
• JICA provided 48.57 percent of the total fund requirement.
• While the Government of India and the Government of Delhi will pay 10.04 percent each.
• The total cost of phase 3 was 41,079crores approximately.

12. Project Return.
Delhi Metro Project.
• The table below is based on the 2014–15 Annual Report:
FY Ending March Revenues EBITA EBT
2007 ₹5.43 billion ₹3.99 billion ₹240 million
2008 ₹5.04 billion ₹3.00 billion ₹261 million
2009 ₹7.24 billion ₹4.73 billion ₹904 million
2010 ₹7.38 billion ₹3.56 billion -₹902 million
2011 ₹16.08 billion ₹7.50 billion -₹127 million
2012 ₹22.48 billion ₹9.33 billion -₹681 million
2013 ₹26.87 billion ₹10.28 billion -₹79 million
2014 ₹31.98 billion ₹10.62 billion -₹0.60 billion
2015 ₹35.62 billion ₹12.40 billion -₹2.75 billion

13. Cont.
• Delhi Metro has been operating with a loss on an EBT basis for the
past few years.
• EBITDA margin declined from 73% in Fiscal 2007 to 35% in Fiscal
2015.
• Debt to Equity improved from 1.43 in FY07 to 1.15 in FY15.

14. Revenue Model
• 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 -
• Selling from token
• Selling from Smart Card (Travel Card)
• Selling from Tourist Card
• By advertising
• Selling from space (for retail store, restaurants, ATM and other)
• By Penalties
• By movie clipping
• By Carbon Credit

16. Accidents
• July 12, 2009: An under construction bridge collapsed during erection
process near central secretariat causing five casualties and injuring
the other five
• 10 Nov 2008: Man commits suicide at Janakpuri Metro Station.
• Oct 19, 2008: An under construction flyover collapsed in Laxmi Nagar
of east Delhi due to mechanical failure leading to death of at least
two people and injuring 30.
• July 18, 2008: A malfunctioning crane at a metro construction site
near Ram Manohar Lohia hospital dropped a four tone iron beam on
a passing Tavera car injuring two.