Delhi Metro Case

ICMR Case Collection
ICFAI Center for Management Research

This case was written by Namratha V. Prasad & Sachin Govind, under the direction of S.S. George,
ICFAI Center for Management Research (ICMR). It was compiled from published sources, and is intended
to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of a
management situation.

The Delhi Metro Project: Effective Project
Management in the Indian Public Sector
PROM005
2006, The ICFAI Center for Management Research. All rights reserved. No part of this publication may be
reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means- -
electronic or mechanical, without permission.

To order copies, call +91-40-2343-0462/63 or write to ICFAI Center for Management Research, Plot # 49,
Nagarjuna Hills, Hyderabad 500 082, India or email icmr@icfai.org. Website: www.icmrindia.org

1

PROM/005

The Delhi Metro Project: Effective Project Management
in the Indian Public Sector
Everyone who has traveled by the Delhi Metro wants one in his or her city. Today, there is a
national resurgence in public interest in urban public transport.
1

- Dr. Manmohan Singh, Prime Minister of India, in 2006.
The successful implementation of the Delhi Metro project would not have been possible without
timely availability of funds and the necessary political support. An equally important role has been
played by the DMRCs corporate culture, which emphasizes that targets are most sacrosanct and
our dignity is in performing our duty well.
2

E. Sreedharan, Managing Director, Delhi Metro Rail Corporation Ltd., in 2005.
INTRODUCTION
With a 6.5 km section of Line 3 becoming operational in April 2006, Phase I of the Delhi Metro
3

project was nearing completion. Of the total length of 65.16 km of the first phase, 62 km had been
completed and opened for service. This phase was set to cost Rs. 98 billion. As of early 2006,
around 450,000 passengers were traveling by the Delhi Metro every day.
The Delhi Metro was meant to solve Delhis traffic problems, which had become almost
unmanageable. The first steps to build a metro system in the city were taken in the early 1990s. In
1995, the Government of India (GoI) and the Government of the National Capital Territory of
Delhi (GNCTD) formed the Delhi Metro Rail Corporation Ltd (DMRC) under the Companies Act
to construct the Delhi Metro. Conceived as a social sector project, a significant portion of the
project cost was funded through a soft loan provided by the Japanese government through Japan
Bank International Corporation (JBIC)
4
. The rest was contributed by GoI and GNCTD through
equity.
E. Sreedharan (Sreedharan) was appointed managing director (MD) of the DMRC and project
manager for Phase I of the project in November 1997. Work on Line 1 of Phase I started in
October 1998. DMRC formed consortiums to advise it on the project and to provide it with the
latest technology. It also saw to it that the foreign companies worked with the Indian companies to
ensure that the latter assimilated their expertise and technological know-how.

1
PM lays foundation stone for Bangalore Metro, www.pib.nic.in, June 24, 2006.
2
Interview with Mr. E. Sreedharan, Managing Director, Delhi Metro Rail Corporation Ltd, www.indiainfoline.com,
December 19, 2005.
3
A metro system is usually an urban electric mass transit railway system independent of other traffic and with high
frequency. A metro system includes elevated, at-grade, and underground sections.
4
JBIC was founded in 1961 by the Japanese government as the Overseas Economic Cooperation Fund (OECF).
It served as the implementing agency for loan aid given to entities in developing countries. OECF generally gave
low-interest (around 2.1%), long-term funds (about 20 years with five year grace period). In 1999, OECF was
merged with Export-Import Bank of Japan (JEXIM) to form the JBIC.
The Delhi Metro Project

2
The DMRC faced any number of technical and systemic challenges during the construction of the
metro. However, thanks to thorough planning, an effective project design, and a we-mean
business culture, it was able to overcome all these hurdles. The organizational culture was based
on punctuality, honesty, and a strict adherence to deadlines. The DMRC successfully managed the
various stakeholders in the project like the general public, government bodies, etc., and also
ensured that the project was environmentally safe.
With Phase I of the Delhi Metro project nearing completion, the GoI decided to extend the metro
network and work on Phase II of the Delhi Metro project was set to commence in September 2006.
In the process of implementing the project, the DMRC had gained a lot of technological expertise,
which would be used by other cities in India and abroad to build metro systems similar to the Delhi
Metro.
BACKGROUND NOTE
Metro systems were generally considered as a transport option when the population of a city
crossed the 1 million mark (Refer Exhibit I to know more about metro transit systems). Delhi
crossed that milestone as early as in the 1940s. The 1950s saw a doubling of the citys population;
with that, the vehicular traffic also soared. By the early 1990s, Delhi had more registered vehicles
than Mumbai, Kolkata, and Chennai put together. It had become one of the most polluted cities in
the world, with automobiles contributing to more than two thirds of the total atmospheric
pollution. There was an urgent need felt at this point to improve both the quality and availability of
mass transport services in Delhi.
The first ever traffic study of Delhi (titled the Origin Destination Survey of Traffic of Greater
Delhi) was carried out by the Central Road Research Institute (CRRI) in 1957. As many as 35
more studies on Delhis transport problems were conducted subsequently by various entities (Refer
Exhibit II for some of these studies). Almost all these studies recommended the Mass Rapid Transit
System (MRTS) as a means to solve Delhis traffic problems.
In 1989, the GNCTD, with support from the GoI, commissioned a feasibility study for developing
an MRTS for Delhi. The study was undertaken by Rail India Technical & Economic Services Ltd.
(RITES)
5
and completed in 1991. RITES recommended a three-component transit system
comprising rail corridors (surface/elevated), metro corridors (underground), and a dedicated
busway, totaling 198.5 km. This mix of elevated and underground sections was proposed in order
to bring down the overall project cost
6
.
RITES further recommended sequential construction of the total network because of the high costs
associated with the project. The complete network was to have 16 lines. Sections with higher
projected passenger traffic densities were to be constructed first.
In 1995, RITES submitted a Detailed Project Report (DPR) for Phase I of the Delhi Metro project.
THE DELHI METRO PROJECT
In order to implement the Delhi Metro project, the GoI and the GNCTD set up a 50:50 joint
venture company called the Delhi Metro Rail Corporation Ltd. (DMRC). The company was
incorporated under the Companies Act in May 1995. The DMRC was to complete Phase I of the

5
RITES, established in 1974, is the multi-disciplinary consultancy wing of the Indian Railways. RITES has served as
a consultant to top organizations and Governments in 55 countries. It largely operates in the fields of transport,
infrastructure, and related technologies.
6
As of 2002, the cost of building the underground section was estimated to be Rs. 2.70 billion per kilometer, while
the cost of building an elevated section was Rs. 1 billion per kilometer. Underground sections required stricter
environmental control and fire safety systems. The operational cost of maintaining underground sections was also
higher.

3
project within 10 years, i.e., by the end of 2005. After the recommendations of various other civic
organizations had been incorporated, the proposal for Phase I of the Delhi Metro project was
approved by the GoI in September 1996.
Phase I was to connect Delhis business, education, and shopping districts. It was to cover about
340 hectares of land (of which about 58% was government land, 39% was private agricultural
land, and 3% was private urban land) and involved the design and construction of three lines (with
a total length of 56 km), 50 stations (of which 10 were underground), and three maintenance
depots (Refer Figure I and Table I for the plan for Phase I).
Figure I: Phase I of the Delhi Metro Project

Source: www.urbanrail.net.
Table I
Phase I of the Delhi Metro
Line Length of Line Route
Line 1 (Red line) 22km Shahdara to Rithala
Line 2 (Yellow line) 11km Vishwa Vidyalaya to Central Secretariat
Line 3 (Blue line) 23km Barakhamba to Dwaraka
Source: www.delhimetrorail.com.
FUNDING THE PROJECT
Globally, most urban MRTS projects were financially unviable because the fares could not be
fixed solely on a commercial basis. If the fares were fixed too high, the passenger numbers would
remain low, thereby defeating the very purpose of setting up the system. Therefore, the concerned
governments generally bore the capital costs of an MRTS system. In the case of the Delhi Metro
project too, the GoI and the GNCTD bore the capital costs.

4
The total cost of the first phase of the project was initially estimated at Rs. 60 billion, at April 1996
prices. Later in 2002, with the cost of the project rising by approximately 10% per year, the
estimate was revised to Rs. 89.27 billion.
Initially, for Phase I of the metro to become viable, it was estimated that it would have to transport
2.2 million passengers per day. This was later revised to 1.5 million passengers per day. The
economic IRR
7
(internal rate of return) of the project worked out to be about 21.4%
8
while the
financial IRR was less than 3%. In view of the high cost of the project and the low financial IRR,
some ministers in the GoI even suggested that the project be dropped. However, the GoI decided to
go ahead with it, keeping in mind that it was essentially a social sector project, expected to
benefit the regional economy in more ways than one.
The financial plan for Phase I was approved by the GNCTD and the GoI in 1996. Of the project
cost, 28% was to be financed by equity, subscribed to equally by the GoI and the GNTCD. The
two also agreed to give interest-free subordinate loans to cover the cost of land acquisition, which
was expected to be about 5% of the total project cost. Funding for the major share or about 64% of
the project cost was to be provided by the Overseas Economic Cooperation Fund (OECF which
later became JBIC) through a time-sliced soft loan
9
. JBIC disbursed the loan in tranches with each
tranche treated as a separate loan, with its own moratorium and repayment period. The repayment
period for each tranche was set at 30 years, which included a 10-year grace period (Refer Table II
for the loan tranches given by JBIC).
Table II
Loans from JBIC
Tranche Year
Amount
(in mn yen)
Interest
1 1997 14,760 2.3%
2 2001 6,732 2.3%
3 2002 28,569 1.8%
4 2003 34,012 1.8%
5 2004 59,296 1.8%
6 2005 19,292 1.3%
Property development
10
at the highly lucrative sites around the metro stations was to generate
funds to cover the remaining 3% of the project cost. The debt-equity ratio was fixed at 2:1. The
GoI and the GNCTD also decided to bear the exchange rate risks equally. The DMRC planned to
repay the OECF loan through surpluses from revenues, property development around metro
stations and its corridors, and levies/taxes on the residents of Delhi. Further, the project was
exempted from custom and excise duties.

7
Internal Rate of Return or IRR is defined as the rate of return that would make the present value of future cash
flows plus the final market value of an investment equal to the current value of the investment. It is used by firms to
make decisions regarding long-term investments. (Source: www.investorwords.com)
8
Phase I of the Delhi Metro was expected to generate substantial benefits to the economy by way of saving time for
commuters, enabling reliable and safe journeys, reducing atmospheric pollution, curtailing the number of accidents,
reducing fuel consumption, reducing vehicle operating costs, increasing the average speed of road vehicles, and
improving the quality of life all of which, in turn, were expected to make Delhi a more attractive city for
investment.
9
Time-sliced loans are given in parts (tranches or slices). Each part had its own interest rate, moratorium, and
repayment period.
10
The DMRC planned to generate around Rs. 6 billion by developing real estate projects in and around the metro
stations. This included an IT park, a mega shopping mall cum multiplex, restaurants, ATM counters, beverage
counters, web stores, chemists shops, and coffee parlors.

5
THE PROJECT TEAM
With the funding for the project being finalized, the next step was to constitute a project team.
Sreedharan was appointed as project manager and managing director of the DMRC in November
1997. A technocrat, he had had a long stint in the Indian Railways (IR) and had retired in 1990.
During his service with IR, he had earned a reputation for completing major projects
11
on time and
within the budget.
By the end of 1998, DMRC was able to recruit only 100 people; around 70% of the senior staff at
the DMRC was on deputation from IR. The long delay in recruitment prompted critics of the
project to comment that it was an indication that the project itself would take more time and
money than planned.
Sreedharan was given complete freedom to pick and choose the project team. He selected a
motivated team of professionals whom he regarded as fundamental to the success of the project.
Each member of the team was interviewed personally by me. I went through their track record
particularly with regard to their integrity,
12
said Sreedharan. Most of the staff was between 18 and
30 years. Unlike other public sector organizations in India, the DMRC opted for a lean structure. It
had just two departments project organization, and operation & maintenance.
The Delhi Metro was only the second metro project in India (the Kolkata Metro
13
being the first).
Since the technology to build metro systems was highly specialized, experts in the areas of civil
engineering, electrical engineering, communications engineering, etc., were needed. However, the
DMRC faced the problem of skill shortage as the country had neither institutes which taught metro
technology nor experienced personnel. Therefore, after recruiting suitable candidates, the DMRC
sent them abroad for training. The key operating and maintenance personnel received training at
Hong Kongs Mass Transit Railway Corporation (MTRC). They, in turn, trained the rest of the
staff. Later the DMRC opened its own Metro Training School at Shastri Park, New Delhi.
Sreedharan too visited subway systems around the world for ideas on building the Delhi Metro. In
an interview describing the difficulties he faced in getting suitable people, Sreedharan said, When
we started there was a handicap as almost everyone was new to metro projects. Then we educated
all the personnel and officers and absorbed experience from general consultants to upgrade our
skills and now these very personnel have become one of the greatest assets to the nation.
14

The corporation aimed to project an image of efficiency, courtesy, and a we-mean-business
attitude; the employees were also required to be polite and discharge their duties to perfection.
What is important is that I have created an organization which has got a unique work culture and
organizational values. The team consists of hard-working, dedicated, and professionally competent
people,
15
said Sreedharan.
The DMRC corporate culture was based on integrity. It was clear to the management at the DMRC
that if the metro was to be built within the budget and on time, they would have to put in place
effective contract-awarding and procurement processes in order to prevent corruption the bane of
most public sector projects in India. For this, the contract-awarding process was made transparent
and simple. The procurement processes were made fair and just by removing almost all traces of
subjectivity from tender evaluation.

11
In 1963, Sreedharan was in charge of the repair of the Pamban bridge joining Rameshwaram, an island off the coast
of Tamil Nadu, with the mainland. He was able to complete the project in 46 days when the project duration was set
at 180 days. In 1997, he was put in charge of the Konkan Railways project, which involved building a railway
system along the west coast of India, covering 760 km. The project, which was a major engineering feat with 150
bridges and 93 tunnels, was completed in record time and within the budget.
12
First section of the Delhi Metro to open this year, www.highbeam.com, January 03, 2002.
13
The Kolkata Metro in the eastern city of Kolkata (earlier known as Calcutta) in India was inaugurated in 1984. It is
16.45 km long and has 17 stations.
14
Taking Metro to new heights, www.hinduonnet.com, April 04, 2005.
15
Taking metro to new heights, www.hinduonnet.com, April 04, 2005.

6
PLANNING THE PROJECT
In India, major infrastructure projects are often stalled because of a lack of funds, political
interference, lack of professionalism and accountability, property disputes, corruption, etc.
Therefore, even before the commencement of the project, the DMRC attempted to put in place
effective systems to ensure the smooth progress of the project.
Funding was not an issue in the case of the Delhi Metro project because it was settled even before
the project commenced. In order to steer clear of political interference, the DMRC sought
autonomy on all major matters and the GoI promised to give it this autonomy. Financial powers
were vested in the managing director. Also, the managing director was the last authority on
tenders,
16
said Anuj Dayal (Dayal), chief public relations officer, DMRC.
Next, the project manager put in place a system where every individual would be accountable for
his/her role in the project. Each employee had to prepare a detailed project report (DPR) with
particulars regarding the work assigned and work completed each day and this was to be submitted
to the respective supervisors. In case of deviations, the employee had to give reasons for the
deviations and see that they were rectified. Every Monday, the heads of departments had to meet to
review progress, set new targets, or revise targets. Great stress was laid on adherence to schedules
and reverse clocks were to be used to indicate the number of days left before important deadlines.
This kind of approach was unusual in public sector projects in India.
Even though the project commenced three years later than originally planned, Sreedharan and his
team decided to stick to the original deadline for the completion of the first phase, i.e., December
2005. When the government approved the project, it was envisaged that the metro would be
completed in 10 years. Work should have started in 1995, but we didnt have an organization in
place until 1997 so we were only able to begin work in April 1998. Nevertheless, we said we
would complete the first phase within seven years to meet the original target. This will be quite an
achievement to build a metro from scratch within seven years,
17
said Sreedharan.
Like other major infrastructure projects in India, the Delhi Metro project too faced its share of
property disputes. To ensure that these disputes did not hinder the progress of the project, the GoI
enacted the Delhi Metro Railway (Operation & Maintenance) Act, 2002
18
or the Delhi Metro Act
in 2002. The Act, which spelt out the rules for the local authorities, superseded the local municipal
laws of Delhi. Also, lower courts were barred from issuing stay orders. This, to a large extent,
prevented property owners affected by the project from getting stay orders from courts to halt
work on the project. In other cases, the DMRC engaged a team of lawyers to make sure that the
courts did not grant such stay orders.
In order to control costs, the total expenditure of the Delhi Metro was split into three broad heads
manpower, energy, and materials including maintenance. Each of these accounted for
approximately one-third of the project cost.
To control manpower costs, DMRC employed only 45 persons per kilometer of track a number
that was close to the international norm. Kolkata Metro, in contrast, had employed three times as
many people. The organization was designed to be lean but effective. To keep down energy costs,
DMRC entered into a special agreement with the Delhi Transco Ltd.
19
to source power
20
for the

16
On the fast track, www.tribuneindia.com, January 02, 2005.
17
First section of the Delhi Metro to open this year, www.highbeam.com, January 03, 2002.
18
Prior to 2002, the Delhi Metro project came under the Metro Railways (Construction and Works) Act, 1978. The
1978 Act was enacted to facilitate the construction of the Calcutta (Kolkata) Metro. Since this Act covered only the
construction stage of Metro Railways, the need for an exclusive Act for the Delhi Metro, covering operation and
maintenance, was felt. Therefore, the Delhi Metro Act was enacted by the GoI in 2002.
19
Delhi Transco Ltd is the state-run transmission utility for Delhi.

7
project at a very low rate. DMRC used Primavera Project Planner 3.0
21
for project planning and
monitoring. The resource planning module of the software alerted users if there was an excess or
shortage of resources and the cost planning module provided a complete cost break-up for the
project.
The software allowed the DMRC to keep track of project activities, the quantum of work
completed at different levels, the time lost or gained, etc. It also provided information of all critical
and upcoming activities, making it possible to keep track of and reschedule activities wherever
necessary. This was vital considering that the loss incurred if one day of work was lost was about
Rs. 5 million.
In order to ensure quality in construction, the DMRC appointed a special quality assurance team
independent of the field executives. Safety was a major concern. All personnel working at the
construction site were required to wear helmets and other appropriate safety gear.
The DMRC adopted a global bidding program for consultancy and contracts that required at least
one Indian partner. This was done to facilitate technology absorption by Indian firms and to ensure
that the technology was localized and re-engineered. One of the preconditions for any
multinational company to bid for a Delhi Metro project is it should have an Indian partner,
22
said
Dayal.
The DMRC secured the best technology available globally, for the Delhi Metro (See Exhibit III for
features of the Delhi Metro). We are proud to say that Delhi Metro has the best and latest
technology in the world, sourced from various countries. In fact it would be appropriate to say that
we are using tomorrows technology today,
23
said Sreedharan. Several multinational engineering
corporations from Australia, France, Germany, Japan, Korea, Portugal, Spain, and Sweden worked
on the project (See Exhibit IV for the names of the various companies involved in the project).
A five-member consortium, called the General Consultants Group, was constituted in 1998 to
provide overall consultancy for the project. This group included the Japanese firms Pacific
Consultants International (PCI), Japan Railway Technical Services, and Tonichi Engineering
Consultants Inc, US-based Parson Brinkerhoff International Inc., and RITES. The group was lead
by PCI.
Initially, there was disagreement between the IR and Sreedharan over the gauge to be adopted for
the metro. Sreedharan was in favor of standard gauge
24
, generally used in metro systems the world
over, while the IR favored the broad gauge
25
, the gauge used over most of the railway network in
India. Finally the GoI intervened and asked the DMRC to adopt the broad gauge for the Delhi
Metro. This confusion delayed the project by a few months.
The work on utility diversion was undertaken much before the work on a particular section
commenced. The DMRC followed a systematic process wherein the concerned consortium
surveyed the area for the utilities (water pipes, sewer, power cables, etc) to be diverted and
submitted a written report to the DMRC. The DMRC in turn forwarded it to the concerned utility
bodies, which completed the work within a prescribed period.

20
The Delhi Metro project sourced its power from different sources in order to ensure continuous supply of power.
They are - Badarpur Thermal power station, Northern Region Electricity Board and NTPC thermal power station.
The DMRC paid the Delhi Transco Rs. 4.80 per unit.
21
Primavera Project Planner 3.0 software was developed by Primavera of the US, and supplied to the DMRC by KGL
Systems which was a technical and marketing partner of Primavera in India.
22
Riding high in Delhi, usembassy.state.gov, July- August 2003.
23
Interview with Mr. E. Sreedharan, www.indiainfoline.com, December 19, 2005.
24
The tracks in standard gauge are set 1435 mm or 4 ft 8 1/2 inches apart.
25
The tracks in broad gauge are set 1680 mm or 5 ft 6 inches apart.

8
The DMRC decided to adopt construction technologies that would help it make up for lost time.
These included trench-less digging and the use of pre-fabricated/precast concrete
26
blocks and
ballastless tracks
27
. The use of ballast-less tracks also minimized maintenance costs, reduced
vibration, and provided greater riding safety and comfort for passengers.
PROJECT IMPLEMENTATION
Construction work on the project commenced on October 1, 1998. The entire project was divided
into three lines. Further, these lines were divided into sections (Refer Table III for details of Phase
I of the Delhi Metro project).
Table III
Details of Phase I
Particulars Sections Character Length, Stations Opened on
Shahdara to
Tis Hazari
7.92 km,
6 stations
25/12/2002
Tis Hazari to
Inder Lok
4.74 km,
4 stations
04/10/2003
Line 1
(Shahdara to
Rithala)
Inder Lok to
Rithala
Elevated and
at-grade.
9.40 km,
8 stations
01/04/2004
Total 22.06 kms, 18 stations
Vishwa Vidyalaya
to Kashmere Gate
4 km,
4 stations
20/12/2004 Line 2 (Vishwa
Vidyalaya to Central
Secretariat)
Kashmere Gate to
Central Secretariat
Underground

7 km,
6 stations
03/07/2005
Total 11 kms, 10 stations
Line 3 (Barakhamba
to Dwaraka)
Barakhamba to
Dwaraka
22.79 kms,
22 stations
31/12/2005
Dwaraka- Subcity
Dwaraka
6.5 kms,
6 stations
01/04/2006 With extensions to
Line 3.
Barakhamba to
Indraprastha
Elevated and
At Grade
with a short
underground
section
where it joins
Line 2.
2.81 kms,
3 stations
Expected to
be completed
in September
2006.
Total 32.1 kms, 31 stations
Total length of Phase I 65.16 kms, 59 stations

26
Precast concrete was generally prepared by casting concrete in reusable molds in a controlled environment. Later, it
would be transported to the construction site and set into place. It generally was of higher quality and cheaper than
traditional concrete.
27
Ballast, consisting of gravel and cinders, usually form the track bed on which railway sleepers are laid. In
ballastless tracks, tracks are placed on concrete without sleepers or ballast being used. Ballastless tracks are mainly
used on high speed lines and in tunnels.

9
Line 1 (Shahdara to Rithala)
The work on Phase I commenced with the Shahdara-Tis Hazari section of Line 1, covering a
distance of about eight kilometers. The work involved utility diversions, barricading, and actual
civil construction. A major part of this section was on elevated tracks. All tracks in the elevated
corridor were laid on concrete (ballastless). The tracks were supported on single piers. The
elevated viaducts had a height of 10 m and were built generally in the middle of the roads.
The tracks were fenced with 10 ft high concrete slabs with barbed circular wire on top to prevent
trespassing. The section where the metro crossed over the river Yamuna was constructed first
because the density of traffic was projected to be the highest on this route. Building across the
river Yamuna was completed by using a special technique called incremental launching
28
. The
use of this method caused minimum disturbance to traffic. This was also expected to provide a
smoother journey for commuters because of a lack of joints. Line 1 also included a short section
which was built at-grade. Line 1 became completely operational with the inauguration of the Inder
Lok to Rithala section in April 2004.
Line 2 (Vishwa Vidyalaya to Central Secretariat)
Line 2 of Phase I covered 11 km and was completely underground. Of this, a four km stretch
(Vishwa Vidyalaya to Kashmere Gate) was constructed by Kumagai Gumi of Japan, Skanska of
Sweden, Itochu of Japan, and Hindustan Construction Company (HCC) of India using the cut and
cover
29
method. The work for the remaining seven km (Kashmere Gate to Central Secretariat)
began in April 2001 and was handled by M/s International Metro Civil Contractors (IMCC)
30
, a
joint venture of five companies. Of this section, four km involved underground tunneling which
was done using fully automated, high performance boring machines. The remaining three km were
constructed using the cut and cover method. This section of Line 2 was completed eight months
ahead of schedule.
The tunneling started in August 2002 and was completed by September 2004. Different types of
machines were used for tunneling, depending on the soil conditions. For a distance of four km
between Kashmere Gate and Patel Chowk, Rock Tunnel Boring Machines (TBM) and Earth
Pressure Balance Machines
31
(EPBM), purchased from Bangkok Metro
32
, were used for tunneling.
To further speed up the process of tunneling, the DMRC used the New Austrian Tunneling
Method
33
(NATM). This method provided temporary support to the rock by means of shotcrete
34

and rock bolts till permanent concrete was used (Refer Exhibit V for more about the tunneling
process). The twin tunnels for up and down movement of trains were made using high quality
reinforced concrete. The finished internal diameter of these tunnels was 5.7 meters.

28
In incremental launching, segments of the bridge were precast and then were launched in place with the help of
special low-friction sliding bearings with lateral guides.
29
This is a simple method of excavation for building tunnels. In this process a trench is dug and is later roofed over,
with strong supporting beams to prevent roof collapse.
30
IMCC comprised Dyckerhoff Widmann AG (DYWIDAG) (Germany), Larsen and Toubro (India), Samsung
Corporation (Korea), Shimizu Corporation (Japan), and Ircon International (India).
31
The EPBM is a type of tunnel boring machine (TBM). It is generally used when boring below the water table. The
cutter head is pressurized with either fluid or air to balance the water pressure. EPBM operators generally had to
undergo intensive training including passing through decompression chambers like deep sea divers.
32
Bangkok Metro was constructed by the Mass Rapid Transit Authority of Thailand (MRTA) and operated by
Bangkok Metro Public Company Limited (BMCL) under a 25-year concession.
33
NATM used the geological stress of the rock mass in the tunnel to stabilize the tunnel. An optimal cross section was
computed using geotechnical measurements. Shotcrete was used, immediately after excavation, to create a natural
load-bearing ring in the tunnel which also minimized rock deformation.
34
Shotcrete (sprayed concrete) generally used compressed air to shoot concrete onto surfaces. It was generally used in
vertical structures, rock surfaces or for rock support during tunneling activities.

10
The completion of tunneling was a major milestone for the Delhi Metro project in view of the
tricky ground conditions and the requirement to ensure complete safety of the buildings in the
vicinity. Most of the buildings in that area had shallow foundations. The DMRC therefore
undertook a condition survey of each building and strengthened the foundations of the weak
buildings. This was all the more important as the tunneling activity was carried out in areas with
very old buildings, some even dating back to the 17th century Mughal Empire. The new
underground section was the most difficult and formidable stretch of Phase-I of the metro. We had
to preserve the architectural heritage of old Delhi and the character of Lutyens Delhi,
35
said
Sreedharan. The metro underground tunnel was expected to have a life of 120 years.
The first four km section of Line 2 between ViswaVidyalaya and Kashmere Gate became
operational in December 2004. The lines final seven km section opened in July 2005. Line 2 was
completed within the budget and nine months ahead of the contracted schedule.
Line 3 (Barakhamba to Dwaraka Subcity)
The work on Line 3 started in February 2003. In April 2004, the GoI and the DMRC decided to
extend Line 3. This led to the addition of about 9 km and nine metro stations to Line 3. With the
extension, the total length of Phase I increased to 65.16 km (13.01 km Metro corridor and 52.15
km Rail Corridor). The scheduled completion date of this phase was also revised from end 2005 to
March 2006. The revised cost of Phase I of the Delhi Metro was estimated to be Rs. 105.71 billion,
which excluded the cost of the Dwarka sub-city extension (Rs. 3.20 billion) which was to be
funded by the Delhi Development Authority (DDA).
Over the course of the Delhi Metro project, the Indian partners - especially RITES in the
consortiums acquired several capabilities. This gave the DMRC and RITES the confidence to
manage the construction of Line 3 on their own even though the stretch passed through some of
the most congested areas of Delhi. Moreover, some changes were incorporated in Line 3 to cut
down on costs as well as on time to make the facility more user-friendly. For example, Line 3 used
U-shaped girders
36
in constructing most of the elevated sections. These were believed to be cost
effective, aesthetic, and sound absorbent. Also, cement was replaced with steel at many places in
order to save time.
The Barakhamba-Dwarka Metro section was inaugurated on December 31, 2005. This section was
elevated or at-grade with a short underground section in central New Delhi that intersected with
Line 2 at Connaught Place. At that place, the track was at a depth of 16 meters. It gradually rose to
a height of 10.5 meters. It was constructed at a 3% gradient, which meant that the track rose by
three meters for every 100 meters traveled horizontally. This section was completed in 30 months.
The elevated track reached a maximum height of 17.5 meters at Raja Garden crossing, where it
crossed over an existing flyover. It also became, at 23 km, the longest metro section in the world to
be put to service at one go.
In April 2006, the extension line from Dwarka to Dwarka sub-city was inaugurated. As more land
was available in this section, the metro tracks were supported not on a single large pier but on two
smaller circular piers placed side by side with a small foundation. This also meant that no
buildings had to be demolished or people displaced as in the construction of the other lines. All the
work on Line 3 was completed by April 2006, except for the Barakhamba to Indraprastha section,
which was expected to be completed by September 2006.

35
New underground section of Delhi Metro inaugurated, www.outlookindia.com, July 02, 2005
36
A girder is a support beam used in construction. Tracks were laid on girders across elevated sections, especially
bridges.

11
MANAGING THE STAKEHOLDERS IN THE PROJECT
Effective project management involved not only completing the project on schedule and within the
budget, but also managing the projects stakeholders. The stakeholders included the governments,
the contractors, the funding agencies, and the general public.
Despite assurances that the DMRC would enjoy autonomy, it faced political pressure not only in
its recruitment processes, promotions, and contract awarding but also in land acquisition.
However, the DMRC resisted this pressure. we never changed any decision simply because
somebody wants it. If it was required technically or from a professional angle, yes, we do it. Not
because anybody wants it,
37
said Sreedharan.
The DMRC also ensured that it paid the contractors, whom it called associates, on time. It was
able to complete most of the project within the budget mostly by limiting corruption. The
contractors are grateful not to have to give bribes to get a project,
38
said Sreedharan. Because of
the cordial relationship that the DMRC was able to establish with the contractors, they worked
harder to help the DMRC in its project activities. In fact, the project was finished ahead of
schedule on certain sections because of the suggestions given by the contractors on utility
diversion and surface road traffic management.
Considering that the Delhi Metro was constructed mostly with Japanese funds, DMRC put in
special efforts to maintain good relations with JBIC officials. It made it a point to invite JBIC
officials to the inauguration events of various metro sections.
The DMRC also tried to ensure that the project did not cause much inconvenience to the general
public. It faced and overcame challenges of relocating a large number of utilities like water pipes,
sewerage lines, telephone and electric cables, to facilitate the construction work. It ensured that all
these utilities were diverted in advance, so that there was no interruption of services during the
construction of the metro in a particular area. It organized community interaction programs to
inform and seek solutions from the public. We have a community meeting to explain what we
will do, what problems are likely to arise for them, and to seek their help. We have publicized a
telephone help line number so that anyone with a problem or question can contact us,
39
said
Sreedharan.
The DMRC also faced the difficult task of relocating the people
40
evicted from properties acquired
for the project. It built temporary accommodations for the people who were to be relocated. With
the Delhi Metro Act coming into force, the DMRC faced very few legal problems in acquiring
properties. About 400 cases were filed against the DMRC on this issue, out of which only 100
were pending as of 2006. Of these, most were for augmenting the assessed value of the property,
and the compensation to be paid. One of our main achievements has been our ability to acquire
land and move people without any major problems, whereas this is normally a very sensitive issue
in India,
41
said Sreedharan.
In order to lessen the difficulties for motorists and pedestrians, alternate traffic plans for the roads
affected by the construction work were prepared well in advance, with the assistance of the Indian
Institute of Technology, Delhi. When the construction began, barricades were put up with
assistance from Delhi Traffic Police. Moreover, new roads were built or the existing roads
widened to accommodate traffic before work actually started.

37
Politicians know I cannot be maneuvered, www.rediff.com, March 10, 2006.
38
Elattuvalapil Sreedharan, Getting New Delhi on track, www.time.com, 2003.
39
First section of the Delhi metro to open this year, www.highbeam.com, January 03, 2002.
40
The people who had to be evicted were generally the ones who owned properties or houses along the intended
metro tracks. The project involved the removal of 30 slums, and 4,000 structures, which included several small
businesses.
41
First section of the Delhi metro to open this year, www.highbeam.com, January 03, 2002.

12
The DMRC also tried to ensure that the construction of the Delhi Metro did not damage the
environment. It pursued environmental and safety objectives during the construction and operation
of the Metro by seeking and receiving the appropriate ISO certifications. In 2003, the ISO 14001
42

Environmental Management certification was achieved on two sections during the construction
phase itself. In addition, in 2004, Delhi Metro obtained the OHSAS 18001
43
certification for its
environment, occupational heath, and safety management system.
The DMRC ensured that the construction sites were entirely covered, with no soil or dirt being
allowed to spread outside. Trucks carried away debris and dugout soil during the night. The
construction site was also totally concealed from public view and all vehicles going out of the site
were washed at the entrance. During the construction stage, special efforts were made to minimize
construction noise and pollution. The DMRC used silent generators at work sites and also used
light shields to reduce glare from work lights at night.
The DMRC took measures to dispose of waste water from the construction sites in an
environmentally friendly manner. It initiated a program to plant new saplings along the route of the
metro, to replace the trees that had been cut down during the project. It also included the provision
of rain-water harvesting
44
facilities as part of its station construction contract, as a measure to
conserve water.
PROJECT EVALUATION
The successful completion of the project effectively silenced the critics who had been skeptical
about the ability of an Indian public sector organization to complete any project, let alone one as
complex and costly as the Delhi Metro, on time and within the budget. The DMRC stuck to its
completion targets throughout the project and even finished some sections ahead of schedule. The
extension work (on a 2.8 kms stretch) on Phase I was progressing smoothly and was expected to be
completed by September 2006.
DMRC was expected to save Rs. 6 - 7 billion on the project. The project completion cost is Rs
10,570 crore (Rs. 105.70 billion). We have not spent that much. Now the project is practically
over. My own assessment is we will definitely save about Rs. 600 crore to Rs. 700 crore (Rs. 6
billion to Rs. 7 billion) on the project cost,
45
said Sreedharan.
This was in contrast to the cost escalation seen in most public sector projects in India. The DMRC
was successful in keeping the cost of the project at US$ 32-53 million per kilometer. In
comparison, the Bangkok Metro had incurred costs of US$ 56-80 million per kilometer.
OUTLOOK
The Delhi Metro was expected to play a major role in relieving the transport problems faced by the
citys residents. Moreover, with the GoI planning extensions to the Metro, it appeared that the
benefits of an efficient transport system would be enjoyed by people living in a wider
geographical area than originally planned. The GoI and the GNTCD had prepared a
comprehensive plan to extend the Delhi Metro to 244 km by 2021 in three subsequent phases
(Refer Exhibit VI for more information about the Delhi Metro project by 2021). The DMRC hoped

42
ISO 14001 environment management standards help organizations minimize the adverse effects of their operation
processes on the environment. These standards are flexible and can be applied to any organization producing any
product or service at any place in the world. The New York Metro is the only other metro to obtain this
certification.
43
The OHSAS 18001 certification is a part of BSIs (a leading business service provider) Health & Safety Electronic
Book. The certification was created through the efforts of a number of the worlds leading national standards
bodies, certification bodies, and specialist consultancy groups. It is compatible with both the ISO 9001 and ISO
14001 management systems standards.
44
Rain water run-off from the roofs of the metro stations was to be diverted through the drain pipes to settlement/
filtration tanks where the water was cleaned, before being allowed to flow into borewells below the stations.
45
Delhi Metro has become the symbol of India's progress, www.rediff.com, March 13, 2006.

13
to start work on Phase II of the Delhi Metro project by September 2006, and was set to receive
financial assistance from the JBIC on the same pattern as Phase I. Phase II was planned to be
completed before the Commonwealth Games, scheduled to be held in Delhi in 2010. This Phase,
which was estimated to cost over Rs. 75 billion, would comprise 5 lines (3 of which were to be
extensions of existing lines) with a total length of 53 kilometers (Refer Exhibit VII for the
approved budget of DMRC for 2006-07).
The DMRC was also recruiting new people to work on not only the previously constructed lines
but also on the new lines that were coming up. While the number of people recruited for
administration jobs was low, most of the recruitments were for works, maintenance, signaling, and
telecommunication. As of March 2006, the employee strength of DMRC was 3,000.
It also seemed that the Delhi Metro had provided a stimulus to the GoI and the state governments
to improve the public transport infrastructure in other cities in India. With the DMRC assimilating
the metro technology from its international partners, it now had the capability to build and manage
projects in other Indian cities, for as low as US$ 18 million per kilometer in some cases. Some of
the prospective beneficiaries include the Indian cities of Mumbai, Ahmedabad, Lucknow,
Bangalore, Hyderabad, Thiruvananthapuram, and Kochi. Also, the West Bengal government had
requested the DMRC to prepare a detailed project report to connect the existing metro rail in
Kolkata to Howrah, an industrial hub on the other side of the river Hooghly. The DMRC was
expected to use construction technology similar to that used in the Euro Tunnel, although on a
smaller scale.
The Delhi Metro project was successful in reducing pollution levels and vehicular traffic. It helped
increase road safety by reducing the requirement for buses by around 2,600. Street-level traffic fell
by as much as 50% in the areas where the Metro operated. The reduction in vehicular traffic
helped increase the average speed of Delhi Transport Corporation (DTC) buses from 10.5 km per
hour to 14 km per hour. Two million man-hours per day were expected to be saved due to
reductions in journey times. Fuel worth Rs. 5 billion per year was also expected to be saved.
However, as of May 2006, only 0.45 million people were using the Delhi metro, which was much
lower than expected
46
.
Despite the project having been completed successfully, the GoIs decision to adopt the broad
gauge for the Metro seemed to have created problems for the DMRC. The DMRC imported the
rolling stock from Korea and remodeled it to suit the requirements of the broad gauge track. Even
after delivery, the rolling stock had to go to Bharat Earth Movers Limited (BEML) in Bangalore
for fitment before it was ready for operations in Delhi, thus delaying the deployment of rakes. We
cannot increase the frequency further than that due to the shortage of trains (rake),
47
said Satish
Kumar (Kumar), director (Rolling Stock and Electricals), DMRC. Similarly, the process of
indigenization of the coaches was also not yet complete.
Another challenge that the DMRC faced was the severe dearth of parking facilities at its metro
stations. Many of its parking lots were full and in some areas, the municipal authority that owned
the land around the metro stations did not allot it sufficient space for parking facilities. To deal
with this problem, the DMRC initially considered building multi-level parking facilities near its
stations. However, the idea was dropped owing to its prohibitively high cost. Instead, the DMRC
sought to introduce more shuttle buses to and from the stations, to solve the parking problem
(Refer Exhibit VIII for more information on operational aspects of DMRC).
The DMRC earned revenues of Rs. 1.50 billion in the financial year ended March 2006, in
comparison to the Rs. 720 million it had earned the previous year. It planned to repay the Japanese
loan from 2007. Moreover, it expected to earn additional income by providing consultancy
services to organizations and cities, both in India and overseas. Sreedharan said DMRC has also
been approached by Pakistan, Bangladesh, Sri Lanka, United Arab Emirates, Syria, and Iran for
setting up metro systems in their countries.
48

46
Metro to increase frequency today, www.hindu.com, August 09, 2006.
47
Crowded days ahead for Delhi Metro, www.hindu.com, July 18, 2006.
48
Taking Metro to new heights, www.hinduonnet.com, April 04, 2005.

14
Exhibit I
The first metro system in the world was the London Underground which became operational in
1863. Later, metro systems were established in Paris and Berlin. In 1904, the New York City
Subway was commissioned. Extending to 1,355 km, this went on to become the largest metro
system in the world. In the 20
th
century, metro systems became common with new ones coming
up in major cities of the world.
Some Metro Systems around the World
Country City Name of System Year Opened Length (Kms)
England London London Underground 1863 408
France Paris Paris Metro 1900 221.6
USA New York New York City Subway 1904 1355
Spain Madrid Madrid Metro 1919 226.7
Japan Tokyo Tokyo Metro 1927 183.3
Japan Osaka Osaka Municipal Subway 1933 113.5
Russia Moscow Moscow Metro 1935 278.3
Russia St. Petersburg St. Petersburg Metro 1955 109.5
S. Korea Seoul Seoul Metro 1963 287
Mexico Mexico City Mexico City Metro 1969 177
Hong Kong Hong Kong Mass Transit Railway 1979 91
India Kolkata Kolkata Metro 1984 16.45
Egypt Cairo Cairo Metro 1987 43.5
Australia Sydney Metro Light Rail 1997 7.2
Thailand Bangkok Bangkok Metro 2004 21

Source: www.wikipedia.org.
Exhibit II
Studies on Delhis Traffic Problems
S.No Study Organization Year
1 Transportation study Central Road Research Institute,
New Delhi
1969
2 Town and Country Planning
Organization study
Ministry of Urban affairs and
Employment
1973
3 Metropolitan Transportation Team Ministry of Urban Development 1974
4 Metropolitan Transport Project Ministry of Railway 1975
5 Study group Planning Commission 1982
6 Indian Railway Study Group Indian Railways 1986
7 Task Force Ministry of Urban Development 1987
8 Planning of Mass Rapid Transport
System for Delhi
Central Road Research Institute,
New Delhi
1989
9 Mass Rapid Transport System for Delhi RITES 1990

15
Exhibit III
Outstanding Features of the Delhi Metro
The Delhi Metro was considered an advanced MRTS. It followed all the appropriate Indian and
International construction codes.
Each metro train could seat 240 passengers with space for another 1,240 passengers to stand. Of
the required 280 coaches, 60 were manufactured offshore in Korea and the other 220 coaches
were to be manufactured by progressive indigenization by BEML. The coaches were 3.2 m wide
and made of lightweight stainless steel. The coach interiors were air-conditioned and fire
resistant. Every coach was fitted with anti-collision devices conforming to international
standards.
Centralized Automatic Train Control (CATC) comprising Automatic Train Operation (ATO),
Automatic Train Protection (ATP), and Automatic Train Signalling (ATS) systems was
installed on the Delhi Metro. The ATO was mostly used on the underground section. The ATP
system applied automatic brakes on trains and brought them to a dead halt when train drivers
went too fast or got too close to another train. This system made the Delhi Metro very safe even
when more than 256 trains traveled on any line.
Ticketing in the Delhi Metro was fully automatic. Contact-less stored value smart cards served
the purpose of tickets for metro passengers. The entire fare collection system was monitored
through a central computer in the operational control center of the DMRC.
Communications equipment on the Delhi Metro consisted of a transmission system with
fiberglass cables, a train radio system enabling communication between the metro trains and the
operations control center, an internal telephone system, a public-address system for the
individual stations, and the power supplies for the various communications equipment.
A fully automatic computerized system i.e. SCADA system (Supervisory Control and Data
Acquisition System) was used for controlling the power supply. The system could detect faults
and rectify them within seconds. The power for running trains as well as for all the stations of
the 11 km underground section came through a feed from the New Delhi GIS sub-station.
The station air-conditioning and ventilation system in tunnels were designed to meet the
rigorous climatic conditions of Delhi (temperature is maintained around 29
o
C). Its reversible
ventilation fans were designed to keep passengers cool while the automatic fire doors ensured
their safety. Also, all coaches were provided with emergency batteries that provided lighting
and ventilation in case of power failure. There were escalators and accessible elevators at all
stations, with tactile tiles to guide the visually impaired from outside the stations to the trains.
All entrances of the metro stations were controlled through automatic flap gates through which
45 to 60 passengers could enter per minute.
The security systems on Delhi Metro were comparable to the best transport systems in the
world. All stations were fitted with CCTV cameras and surveillance systems. The trains system
also had in-built safeguards against any terrorist attack. Even though X-ray machines were
installed at some stations, manual frisking of passengers was also done as it was considered
more effective. All metro stations also had their own police force called the Metro Police.
Since Delhi is an earthquake prone area, the elevated and underground sections of the Metro
were constructed to withstand extreme seismic stress. All stations were fitted with seismic
sensors to warn of impending earthquakes.
Compiled from various sources.

16
Exhibit IV
Companies Involved in the Project
General Consultants Group Pacific Consultants International (PCI), Japan
Railway Technical Services, and Tonichi
Engineering Consultants Inc. (all three belong to
Japan), Parson Brinkerhoff International Inc.
(USA) and RITES (India).
Rolling stock Mitsubishi Corp. (Japan) and KOROS (renamed
ROTEM) (Korea) and Bharat Earth Movers Ltd.
Alternating current (AC) propulsion
system, installation and control system for
rolling stock
Mitsubishi Electric Corp. (Japan).
Centralized Automatic Train Control Alstom Transport Ltd. (India), Alstom SA
(France), Alcatel SA (Portugal), and Sumitomo
Corp. (Japan).
Fare collection system Thales-e-transactions CGA, S.A.(France)
Communications equipment Siemens Ltd. (Germany)
SCADA (Supervisory Control and Data
Acquisition) System
Alcatel (France).
Maintenance activities Cobra S.A and Eliop S.A, (both of Spain) and
IRCON International Ltd. (India).
4 km stretch
(Vishwa Vidyalaya to Kashmere Gate)
Kumagai Gumi (Japan), Skanska (Sweden),
Itochu (Japan), and Hindustan Construction
Company (India).
7 kms
(Kashmere Gate to Central Secretariat)
Dyckerhoff Widmann AG (Germany), L&T
(India), Samsung Corp. (Korea), Shimizu Corp.
(Japan), and IRCON International Ltd.

17
Exhibit V
Tunneling Process of a Part of Line 2 of Delhi Metro


18
Exhibit VI
The Delhi Metro Project by 2021
S.No. From To Length
Phase I (2005) 62.16
1 Shahdara-ISBT-Trinagar-Bariwala 28.00
2 Vishwa Vidyalaya-Central Secretariat 11.00
3 Barakhamba road-Patel Nagar-Dwaraka 23.16
Phase II (2011) 53.02
4 Vishwa Vidyalaya-Jahangiri puri 6.36
5 Central Secretariat-Qutub Minar 10.87
6 Shahdara-Dilshad Garden 3.09
7 Indraprastha-Yamuna Bank-New Ashok Nagar 8.07
8 Yamuna Bank-Anand Vihar ISBT 6.16
9 Kirti Nagar-Mundka 18.47
Phase III (2016) 58.20
10 Jahagiri puri- Raja Garden- Dhaula Khan-AIIMS- Nehru
Place- Okhla Industrial Area Phase I
34.60
11 Barwala-Bhawana 5.20
12 Rangpuri-IGI Airport-Shahbad Mohaamadpur-Dwarka City 8.20
13 Shahbad Mohaamadpur-Dwarka City-Kakraula Village 10.20
Phase IV (2021) 72.80
14 Jahangiri puri-Peeragarhi-Pankha Road-Sagarpur 24.20
15 Narela-Bhawana-Gheora-Najafgarh 33.00
16 Mehrauli-Gurgaon 11.60
17 Dilshad Garden-Nand Nagiri 4.00
Total 244.86

19
Exhibit VII
Approved Budget 2006-2007
Particulars (Figures in billions of Rupees) Phase I Phase II Total
Business Area-Project
JBIC funded payments 5.45 3.11 8.56
Non-JBIC payments 3.58 9.26 12.84
Total Project Expenses 9.03 12.37 21.41
PD Works 0.82 0 0.82
Deposit Works 0.79 0.72 1.51
Business Area- O&M
Receipt from Operations 2.29 0 2.29
O&M Expenses 1.86 0 1.86
Business Area-Consultancy
Receipts 0.80 0 0
Expenditure 0.40 0 0
JBIC Payments
Interest Payment of JBIC loan 1.77 0 1.77
Repayment of JBIC Loan 0.14 0 0.14

20
Exhibit VIII
Operational Aspects of the Delhi Metro Project Phase I
A study of the operational aspects of different metro networks of the world gave the DMRC
inputs to run the Delhi metro. Within the short period that it had been functioning, the Delhi
Metro set new operational efficiency standards. It became one of the few railway systems in the
world to record a punctuality level of over 99 per cent in train operations. The trains operated at
intervals of three to five minutes between 6 am and 10 pm.
In 2003, the DMRC signed an agreement with the Delhi Transport Corporation (DTC), Delhis
bus operator, for the introduction of about 200 shuttle buses to move people to and from railway
stations.
In the early days of the Delhi Metro, there was a near stampede to get onto the trains. People
jostled with each other, refused to stand in queue, did not return the tokens, tore up the seats,
spat inside the coaches and even pulled the emergency chains without reason. The DMRC
educated passengers on appropriate behavior in trains as well as imposed penalties to rectify
their behavior. It also conducted programs to teach passengers how to enter and exit the coaches
properly.
The DMRC laid a lot of emphasis on commercial property development in the metro station
complexes to earn higher non-operating revenues. As of 2006, almost 20% of the annual
revenues of the DMRC came from these sources. Moreover, the DMRC had a system to
rationalize its fare structure so that the Delhi Metro earned more per passenger without affecting
passenger numbers. The maximum expenditure, about 23%, was incurred on salary, wages, and
other employee costs.
Particulars
2004-05
(Rs. in million)
2003-04
(Rs. in million)
Revenue (income from operations, consultancy and
rentals from properties)
720
Expenditure (before depreciation and interest on loans) 520
Loss after adding depreciation, interest and other costs 760 320


21
Additional Readings & References:
1. Chandan Mitra, Delhi is finally a Metro, www.dailypioneer.com, July 10, 2006.
2. Manojit Saha, Metro Rail will be a cheap mode of transportation,
www.projectsmonitor.com, July 06, 2006.
3. Rajat Guha, Govt to give metros a free run, under common code,
www.economictimes.indiatimes.com, June 23, 2006.
4. Gaurav Vivek Bhatnagar, Crowded days ahead for Delhi Metro, www.thehindu.com, June
18, 2006.
5. Sudipta Sengupta, Delhi metro reports losses for 2nd year in a row, www.merinews.com,
May 26, 2006.
6. Vandana Gombar, Is the Delhi Metro a costly mistake? www.rediff.com, April 03, 2006.
7. Mission 2020: Delhi Metro must cover 400 km, www.thehindubusinessline.com, March 23,
2006.
8. Archana Masih, Politicians know I cannot be maneuvered, www.rediff.com, March 10,
2006.
9. Delhi Metro chief Sreedharan in US top 25 newsmakers list, www.ibef.org, January 12,
2006.
10. Mukta Magazine, How KLG Systel is keeping track of Delhi Metro Corporation,
www.klgsystel.com, 2006.
11. Shekhar Gupta, For the Record: Talking with E. Sreedharan, www.indianexpress.com,
November 18, 2003.
12. DMRC all set to complete first section of Phase III, www.thehindu.com October 06, 2005.
13. Urban transit: The challenges, www.deccanherald.com, June 21, 2005.
14. Amelia Gentleman, Delhi delighted with its new metro, www.iht.com, March 12, 2005.
15. Ramesh Ramachandran, On the fast track, www.tribuneindia.com, January 02, 2005.
16. Delhi Metro rail...2,500 less buses on roads! www.indiainfoline.com, January 03, 2003.
17. R. C. Acharya, All set for Delhi Metro flag-off, www. thehindubusinessline.com, December
23, 2002.
18. Delhi Metro a symbol of Indo-Japanese friendship, www.cities.expressindia.com,
December 25, 2002.
19. Ajita Shashidhar, Delhi Metro to raise funds through realty development,
www.blonnet.com, November 04, 2002.
20. www.delhimetrorail.com.
21. www.urbantransit.net.
22. www.irfca.org.
23. www.blonnet.com.
24. www.wikipedia.com.
25. www.pbworld.com.
26. www.delhimetrorail.com.

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