PROJECT MANAGEMENT

Delhi Metro Project

Challenges in Execution

Introduction
A company named Delhi Metro Rail Corporation (DMRC) was registered on 03 May 1995 under the Companies Act, 1956. DMRC has equal equity participation from Government of India (GOI) and Government of National Capital Territory of Delhi (GNCTD). The company was established considering three broad missions: To cover the whole of Delhi with a Metro Network by the year 2021. Delhi Metro to be of world class standards in regard to safety, reliability, punctuality, comfort and customer satisfaction. Metro to operate on sound commercial lines obviating the need for Government support.

The basic idea behind the Delhi Metro was to solve the Delhis traffic problem. The process started in early 1990s. A joint venture was established between GOI and GNCTD. Major portion of the project cost was funded through soft loan provided by the Japanese government through Japan Bank International Corporation (JBIC). The rest of the amount was equally contributed by GOI and GNCTD through equity. E Shreedharan was appointed as the Managing Director of the DMRC and Project Manager of Phase I of the project. Metro is generally considered as a transportation option when the population of a city cross 1 million marks. Delhi crossed that mark in 1940s and by early 1990s Delhi had more registered vehicles than Mumbai, Kolkata and Chennai put together. Automobiles in Delhi were contributing to the two third of the pollution in the city. Hence, the need came to improve quality and availability of the public transport in Delhi. To overcome this, first ever study of traffic was conducted in Delhi titled Origin Destination Survey of Traffic of Greater Delhi. This study was carried out by Central Road Research Institute. The recommendation of this study was Mass Rapid Transit System (MRTS). In 1989, a feasibility study was conducted for MRTS system in Delhi by GNCTD with support from GOI. The study was undertaken by Rail India Technical and Economic Services Ltd (RITES). A three component transit system comprising of rail corridors, metro corridors and a dedicated busway was suggested by RITES. To bring the overall cost of the project down, a mix of elevated and underground section was proposed. The other recommendations included sequential phased construction to bring sown the project cost. The complete network comprised of 16 lines. Lines with high density traffic were to be constructed first. This is a world class metro system. It is equipped with modern communication and train control systems. It has air conditioned coaches. The ticketing is through Automatic Fare Collection System. This system was introduced for the first time in India. The trains are available at a frequency of three minutes. Flap doors and smart cards are used to control the entry and exit to the station. It is well integrated with other modes of transport. Commuters can easily change from one transport system to another. As a convenient facility feeder bus facility to metro is also available.

Length (kms) Line 1: Shahdara Tri Nagar -Raithala Line 2: Vishwa Vidyalaya- Central Secretariat Line 3: Indraprastha - Barakhamba Road Dwarka Sub City Phase I Completion Shahdara Dilshad Garden Indraprastha Noida Sector 32 City Centre 22.06 10.84

No. of Stations 18 10

32.10 65

31 59

3.09 15.07

3 11

Yamuna Bank Anand Vihar ISBT Vishwa Vidalaya Jahangir Puri Inderlok Kirti Nagar - Mundka Central Secritariat HUDA City Centre Dwarka Sector 9 Dwarka Sector 21 Airport Express Line Anand Vihar K B Vaishali Central Secretariat - Badarpur Phase II Completion

6.17 6.36 18.46

5 5 15

27.45 2.76 22.70 2.57 20.04 124.63

19 2 6 2 15 83

Present Status of the project The complete project can be bifurcated into six different lines. Line 1: Dilshad Garden to Raithala Red Line This line was made operational for commercial services in four stages Shahdara Tis Hazari : with effect from 25th December 2002 (Phase I) Tis Hazari Inderlok: with effect from 04th October 2003 (Phase I) Inderlok Raithala: with effect from 1st April 2004 (Phase I) Dilshad Garden Shadara: with effect from 3rd June 2008 (Phase II) Line 2: HUDA City Centre to Jahangirpuri Yellow Line This line was made operational for commercial services in five stages Vishwavidyalaya - Kashmere Gate : with effect from 20th December 2004 (Phase - I) Kashmere Gate - Central Secretariat : with effect from 3rd July 2005 (Phase - I) Vishwavidyalaya - Jahangirpuri : with effect from 3rd February 2009 (Phase II) HUDA City Centre - Qutab Minar : with effect from 21st June 2010 (Phase - II) Central Secretariat - Qutab Minar : with effect from 3rd September 2010 (Phase - II) Line 3: Dwarka Sector 21 - Noida City Centre - Blue Line: This line was made operational for commercial services in six stages Barakhamba - Dwarka : with effect from 31st December 2005 (Phase - I) Dwarka - Dwarka Sector 9 : with effect from 1st April 2006 (Phase - I) Barakhamba - Indraprastha : with effect from 11th November 2006 (Phase - I) Indraprastha - Yamuna Bank : with effect from 10th May 2009 (Phase - II) Yamuna Bank - Noida City Centre : with effect from 13th November 2009 (Phase - II) Dwarka sector 9 - Dwarka Sector 21 : with effect from 30th October 2010 (Phase - II) Line 4: (Yamuna Bank - Anand Vihar ISBT) - Blue Line: This line was made operational for commercial services in one stage Yamuna Bank - Anand Vihar ISBT: with effect from 6th January 2010 (Phase - II) Line 5 (Inderlok - Mundka) - Green Line Inderlok - Mundka: with effect from 2nd April 2010 (Phase - II). Line 6 (Central Secretariat - Badarpur) - Violet Line Central Secretariat - Sarita Vihar: with effect from 3rd October 2010 (Phase - II). Sarita Vihar - Badarpur: With effect from 14th January 2011 (phase-II).

Initially the cost of the project was estimated at Rs 60 billion at April 1996 prices. Cost of the project increased 10% per year and revised to 89.27 billion in 2002.

The number of passengers estimated was 2.2 billion per day. This was again revised to 1.5 billion passengers per day. The economic IRR was calculated to be about 21.4% while the financial IRR was less than 3%. Loan from JBIC Amount (in mn yen) 14760 6732 28569 34012 59296 19292

Tranche 1 2 3 4 5 6

Year 1997 2001 2002 2003 2004 2005

Interest 2.30% 2.30% 1.80% 1.80% 1.80% 1.30%

The debt to equity ratio was fixed at 2:1. Also, the project was exempted from customs and excise duties. Sreedharan, the project manager recruited managers. By the end of 1998, 100 people were recruited out of which 70% were from Indian Railways on deputation. He was given complete freedom to choose his team. The Delhi metro being the second metro project in the country needed greater skills and experienced knowledge. Due to lack of skill and knowledge the people were sent to abroad for training. As in this type of construction, Indian workers were not having much experience. Also, key operating and maintenance personnel were sent for training at Hong Kongs Mass Transit Railway Corporation. The overall objective of the corporation was to attain efficiency, courtesy and a we mean business attitude. The employees were expected to be polite and hard working. The project team comprised of hardworking, dedicated and professionally competent people.