Delhi Metro Rail Corporation: Case Study

CASE STUDY
DMRC
DELHI METRO RAIL CORPORATION
PRESENTED BY:
ABHISHEK SONI
AMIT SINGH
ASHISH DHAMIJA
LOCHAN VACHHER
SAURABH DIXIT
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.
All other product or service names are the property of their respective owners. © Motorola, Inc. 20XX.
Delhi – the need for a mass rapid transit
system
• As cities grow in size, the number of vehicular trips on road
system goes up. This necessitates a pragmatic policy shift to
discourage private modes and encourage public transport.
• Delhi has experienced phenomenal growth in population in the

last few decades. Its population has increased from 57 lakhs
(5.7M) in 1981 to > 120 lakhs (12 M) presently.
• For want of an efficient mass transport system, the number of

motor vehicles has increased from 5.4 lakhs (540k) in 1981 to
40 lakhs (4M) by now.
• The number of motor vehicles in Delhi is now more than that of

Mumbai, Calcutta, Chennai put together. The result is extreme
congestion on Delhi roads, ever slowing speeds, increase in road
accidents fuel wastage and environmental pollution with
motorized vehicles alone contributing to about two thirds of the
atmospheric pollution.
Delhi Metro Rail Corporation
• To rectify this situation the

Government of India and the
Government of National Capital
Territory of Delhi, set up a
company named Delhi Metro Rail
Corporation Ltd.
• DMRC was then given a mandate

to construct >50 kms of Metro Rail
tracks in Delhi by 2005.
• Work on Phase I started in 1998
• First section between Shahdara and Tis Hazari

was opened on 24th Dec 2002. ( ~8 Km)
• Now ~55 km operational in total.
Delhi Metro
• Line I ( Shahdara – Rithala) ~22 km
– Line I ( Shahdara – Rithala) was made operational for
commercial services in three stages:
• Shahdara – Tis Hazari : with effect from 25th Dec, 2002
• Tis Hazari – Inderlok : with effect from 4rd Oct, 2003
• Inderlok – Rithala : with effect from 1st April, 2004
• Line II ( Vishwavidyalaya – Central Secretariat) ~11 km

– Vishwavidyalaya – Kashmere Gate: with effect from 20th
December, 2004.
– Kashmere Gate – Central Secretariat : w.e.f 3rd July, 2005.
• Line III ( Barakhamba – Dwarka Sub City ) ~ 23 Km

– Barakhamba Road- Dwarka Section: w.e.f 31 Dec,2005
• Extension of Line III – on-going
– Extension into Dwarka sub-city
– Barakhamba Road- Indraprastha Extension
Economic Benefits
The Delhi MRTS is essentially a "social" sector project,
whose benefits will pervade wide sections of
economy. The modified first phase will generate
substantial benefits to the economy by the way of:
• Time saving for commuters
• Reliable and safe journey
• Reduction in atmospheric pollution
• Reduction in accident
• Reduced fuel consumption
• Reduced vehicle operating costs
• Increase in the average speed of road vehicles
• Improvement in the quality of life
• More attractive city for economic investment and growth
Observations
The case describes the organization and planning
of the project and highlights the steps taken by
the DMRC to ensure the successful completion of
the project.
It also explains how the DMRC managed the

various stakeholders like the central and state
governments, the contractors, and the citizens of
Delhi, to ensure that the project was implemented
smoothly.
Evaluation of Delhi metro mega project
Land Acquisition Process of DMRC
• The Delhi Metro Railway (Operation and Maintenance) Act, 2002
provides for the power to acquire land, etc.
1. Private land handed over to L&B

2. Private land handed over with force/ demolished
3. Court cases disputes about land acquiring
4. Obstruction by local government for voting and goodwill
5. Acquired land
6. Verdicts/agreements after court case/change award and unresolved disputes
Land Acquisition status for the project
Line Required Structures
Line 1 Shahdara - Rithala
Shahdara – Tis Hazari 1480

Tis hazari – Inderlok 210
Inderlok – Rithala 10
Line 2 (D.U. – Central
Secretariat)
Khyber Pass Depot 1945
D.U. – Kashmere Gate 15
Kashmere Gate – Central 200
Secretariat
Line 3 (Barakhamba – 1150
Dwarka)
Total 5011
Source: Land Section, DMRC, 2005
Resettlement and Rehabilitation Policy
DMRC has been given special powers to acquire land
for the construction of Metro and related utilities or
for property development, in order to recover costs.
This had led to a lot displacements without any say
and the litigations are still continuing. Land
Acquisition Act does not apply, DMRC Act applies,
which does not talk about resettlement and
rehabilitation, only cash compensation is dealt with.
THE METRO RAILWAYS (CONSTRUCTION OF

WORKS) ACT, 1978 talks about the compensation
Funding
A major portion of funds for the metro will come in the form of
soft loans from the Japanese government. This support
routed through the Japanese Bank for International Cooperation
has come in the form of soft loans, which total up to about Rs
2,090 crore, accounting for 56 percent of total project cost.
These funds will be used for the underground construction

and rolling stock but not land and rehabilitation costs.
Other key fund providers include the Centre and the Delhi
governments, which will contribute 15 percent each while eight
percent, will come through a subordinated, interest-free loan and
the remaining 6 percent from property development.
Standard funding mode of JBIC to Delhi Metro and Other firms
Funding of Delhi Metro
Subordinate
Sources of fund
Debt GNCTD
Property 8% 15%
Development
6%
GOI
15%
JBIC Loan
56%
Source: Urban Transport in Delhi, Delhi Metro Rail Project Report, 2005
Project Cost
The capital cost of phase I is Rs. 6, 000 crores at Apr
96 price level. However taking into account the element
of escalation during construction period of 7 ½ years, the
completion cost has been Rs.10, 571 crores.
Metro Project gets import duty and excise tax

exemption from GOI on equipment for the project and
sales tax and work contract tax exemption from GNCTD -
all of which amounts to about Rs. 1800 crores.
Execution of Stakeholders
DMRC managed the various stakeholders like the central and state
governments, the contractors, and the citizens of Delhi, to ensure
that the project was implemented smoothly.
Utility Plan Execution of Stakeholders

AGENCIES INVOLVED:
The various agencies which were involved in the project
and their respective roles is listed below-
Delhi Metro Rail Corporation: Client for the land,
building, property, etc.
Government of National Capital Territory of Delhi:

Acquisition of private lands, transfer of property in case of
government lands.
Delhi development Authority and MCD slum wing:

Resettlement of slums
NDMC / MCD: Come into picture in case of commercial

establishments, canceling licenses, etc.
Delivery model of Delhi metro
The delivery model of the Delhi metro was based on certain key points,
which have been followed by them strictly.
SPEED Timely and early completion of the projects in determining the success of the
venture
CERTAINITY A strict completion date and price before the commencement of construction
FLEXIBILITY Extent of project could be altered after the commencement of work
QUALITY Level the level of workman ship and finish of the product
COMPLEXITY Highly specialized construction/ advance technology
RISK AVOIDANCE How far a single organization be held responsible for the transfer of risks and
hence the liabilities
PRICE To choose the team by price component- low price.
COMPETITION
RESPONSIBILITY Responsibility transferred the major part of supervision to the general

consultant and on the other hand delegated the construction to another set of
independent consortium of contractors.
It retains the right of final approval in all aspects.
Thus it drastically reduced the in house governance cost.
Project analysis
Public Opinion:
Public opinion survey was being done on the places- Karol Bagh station,
Chawri bazaar and ISBT Kashmere gate where the metro project has already
being completed and implemented fully. Total 100 samples were collected from
all the station and were being analyzed.
Certainity in a project
25%
60%
15%
Time Cost Both
Certainty in a project- 60% of the people says time is important in

completion of any project while 15% of the people says cost is important in
completion and 25% of the people says both is important in completion.
Risk Analysis
RISK SECTOR COUNTER MEASURES
OPERATING RISK
Technology Pre casting technology used, thus launching of girders at nights
without causing more havoc to day traffic.
Used old technology as well as New technology for the construction
Non Conformant work carried out on approved old methodology.
New in Construction like Design and build sectors.
Low productivity Per week reduction in payment on a pre determined scale in case of
delays from the contractors end
FINANCIAL RISK
Under estimation of cost Liability from contractors in form of bank guarantee in advance.
Capital shortage Major funding is by foreign agency against high guarantees
Property development initiated in early stage for service
construction.
Tax free loans from government sources.
MARKET RISK Adoption of D&C is the major incentive of the contractors.
ENVIRONMENTAL Adopted the never before ISO 14001 standards for construction thus
RISK keeping the detractors at bay.
SOCIAL RISK Re routing of traffic where construction is taking place without
major alterations
Development of strict safety directives and closely monitoring them,
Also seeks the help of media to educate the general public
Variance Analysis
A comparison of the actual cost with the budgeted cost to determine

the variances in respect of each scheduled activity was being done for
Delhi metro project. We see that there was a variance of 4,571 crore
rupees in the phase -I of the project which is more than 50% of the
actual cost.
Variance Analysis of Delhi Metro

Budgeted cost for Work Performed Rs. 6, 000 crore
Actual cost for Work Performed Rs. 10,571 crore
Additional Cost for Completion -
Cost variance: BCWP - ACWP Rs.4,571 crore

Cost Performance Index: BCWP/ACWP 0.57
BCWP/
Estimated Cost Performance Index: (ACWP+ACC) 0.57
Performance Analysis
The performance analysis of the project shows that it performed well in land
acquisition process but the rehabilitation measures were lacking in the process.
Performance analysis
Remarks
Indicators 1 2 3 4 5 6 7 8 9 10
LAA does not apply to the project,
Land acquisition Acquisition under own emergency
acquisition
Rehabilitation 30% done, Act says about monetary
measures compensation
Initiated the property development, revenue
Funds generation is used in operation phase of the
project
most of the tenders ended up in 100% cost
Under-estimation
of original cost
over runs due to under estimation and un
foreseen reasons
Supporting Lack the supportive infrastructure, created
infrastructure its own by bearing the cost where ever
facilities required
Progress in Civil
Works
Use the methodology for pre cast and join
Clearance from Worked under ISO 14001 hence got no

various agencies problem for environment clearances
Law & order
detailed the re routing of the traffic and
problems
making the plans for
Issues:
Thus the issues have been identified on the basis of the analysis
done. Issues related to each of the sector have been listed against
their respective sector in the table below.
Conclusions:
Thus conclusions are being made on the overall study and the analysis for
what are the pre requisites for successful project implementation which are
–
• Adequate Project Formulation
• Approval of Projects
• Availability of Funds
• Planning of Implementation and Management - selection of

beneficiaries
• Local needs, situations and variations;
• Adequate delivery mechanism,
• A coordinated approach, with many sectoral organizations working

independently for different components of the programmes
Consideration for Project cycle
Recommendations:
The evaluation of the study revealed some gaps and issues in the
process and the outcome, some of the strategies and policies
have been recommended.
These include the recommendations regarding the overall project

cycle stages.
These can be applied in the future project planning exercises.
Sector- wise Recommendations
LEGISLATIVE ADMINISTRATIVE CHANGES
LAND ACQUISITION PROCESS - Presently a cumbersome process,
shall be revised so as cut down the time involved in it.
ORGANIZATIONAL CO ORDINATED APPROACH-A coordinated approach, with many

sectoral organizations working independently for different components of
the programmes
RESPONSIBILITYMATRIX - Stakeholders responsibility shall be
clearly defined for project deliverables and
 DECENTRALISATION OF WORK
ECONOMIC CONTRACTUL MANAGEMENT- Standardize and develop a fair

and equitable contract document which should provide adequate
incentives for completion of jobs on or before schedule and disincentives
for delays
RISK ASSESMENT - A risk analysis shall be included in the project
feasibilities and risk management strategies shall be formulated for the
project
THANK
YOU

Delhi Metro Rail Corporation: Case Study

Caricato da

Informazioni sul documento

Descrizione originale:

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Delhi Metro Rail Corporation: Case Study

Caricato da

Copyright:

Formati disponibili

CASE STUDY

• Delhi has experienced phenomenal growth in population in the

• For want of an efficient mass transport system, the number of

• The number of motor vehicles in Delhi is now more than that of

• To rectify this situation the

• DMRC was then given a mandate

• First section between Shahdara and Tis Hazari

• Now ~55 km operational in total.

• Line II ( Vishwavidyalaya – Central Secretariat) ~11 km

• Line III ( Barakhamba – Dwarka Sub City ) ~ 23 Km

It also explains how the DMRC managed the

1. Private land handed over to L&B

Shahdara – Tis Hazari 1480

THE METRO RAILWAYS (CONSTRUCTION OF

These funds will be used for the underground construction

Metro Project gets import duty and excise tax

Utility Plan Execution of Stakeholders

Government of National Capital Territory of Delhi:

Delhi development Authority and MCD slum wing:

NDMC / MCD: Come into picture in case of commercial

FLEXIBILITY Extent of project could be altered after the commencement of work

RESPONSIBILITY Responsibility transferred the major part of supervision to the general

Time Cost Both

Certainty in a project- 60% of the people says time is important in

A comparison of the actual cost with the budgeted cost to determine

Variance Analysis of Delhi Metro

Cost variance: BCWP - ACWP Rs.4,571 crore

Clearance from Worked under ISO 14001 hence got no

• Adequate Project Formulation

• Planning of Implementation and Management - selection of

• Local needs, situations and variations;

• Adequate delivery mechanism,

• A coordinated approach, with many sectoral organizations working

These include the recommendations regarding the overall project

These can be applied in the future project planning exercises.

ORGANIZATIONAL CO ORDINATED APPROACH-A coordinated approach, with many

ECONOMIC CONTRACTUL MANAGEMENT- Standardize and develop a fair

Potrebbero piacerti anche