Institute of Professional Education and Research

8/6/2019 Institute of Professional Education and Research

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INSTITUTE OF PROFESSIONAL EDUCATION

AND RESEARCH

PGDM- 2010-12

REPORT

ON

Strategic implementation of Delhi Metro

Submitted to : - SUBMITTED By :-

PROF. Mahesh Soni Mahesh Mohanan


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Introduction

About Metro Rail in Delhi Delhi, the capital city of India is one of the fastest growing cities in

the world with a population of 13 million as reported in the Census of India Report for the year

2000. Until recently, it was perhaps the only city of its size in the world depending almost

entirely on roads as the sole mode of mass transport. The total length of the road network in

Delhi has increased from a mere 652 km in 1981 to 1122 km in 2001 and it is expected to grow

to 1340 km in the year 2021. This increase in road length is not at par with the phenomenal

growth in the number of vehicles on these roads in Delhi. The cumulative figure of registered

private and government buses, the main means of public transport, is 41,872 in 1990 and it is

expected to increase to 81,603 by the year 2011. The number of personal motor vehicles has

increased from 5.4 lakhs in 1981 to 30 lakhs in 1998 and is projected to go up to 35 lakhs by

2011. With gradual horizontal expansion of the city, the average trip length of buses has gone up

to 13 km and the increased congestion on roads has made the corresponding journey time of

about one hour. Delhi has now become the fourth most polluted city in the world, with

automobiles contributing more than two thirds of the total atmospheric pollution. In this context,

the decision of the Government of India to develop a mass transport system for Delhi providing

alternative modes of transport to the passengers was most appropriate.

With a 6.5 km section of Line 3 becoming operational in April 2006, Phase I of the Delhi

Metro3 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 Delhi's 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.


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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 projectmanager 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.

The DMRC faced any number of technical and systemic challenges during the construction of

the metro. 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. National Capital Territory of Delhi (NCTD), with an area of 1486 km2 has a

population of about 15 million. Buses are the sole mode of public transport in the NCTD, which

are inadequate andovercrowded. For want of an efficient mass transport system, the number of

motor vehicles isaround 4 million. The result is extreme congestion on Delhi roads, ever slowing

speeds, increasein road accidents (5 persons killed and 13 injured everyday), fuel wastage and

environmental pollution with motorized vehicles alone contributing to about two thirds of the

atmospheric pollution.

The mixed traffic in the city has resulted in road accidents, killing 5 persons and injuring

13persons a day on an average. The situation is expected to deteriorate further in the years

tocome.

Different Phase of Metro


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The project is being implemented in Phases I, II. III & IV. for a sketch map of Delhi Metro Rail.

Phase I,

Now under execution comprises of 65.11 km of route length with 13.07 km

underground and 47.54 km elevated rail and 4.56 surface rail with 59 stations. It consists of 3

lines as follows:

Line 1: 22.06 km Shahdara-Tri Nagar-Rithala Line with 18 stations (Partly Elevated, Partly Surface)

Line 2: 10.84 km Vishwa Vidyalaya-Central Secretariat Line with 10 stations (Underground)

Line 3: 22.90 km Barakhamba Road-Connaught Place-Dwaraka Line with 22 stations (Partly Underground/ PartlyElevated)

The following extensions are proposed which are yet to be approved.

1.Proposed Line 1: Extension 6 km Rithala-Barwala (Partly Elevated, Partly Surface)

2.Proposed Line 2 Extension: 4 km Vishwa Vidyalaya-New Azadpur (Elevated)

3.Proposed Line 3 Extension: 4 km Barakhamba Road-Indraprastha Estate

4.Proposed Line 3 Extension: 6.5 km Dwaraka- Dwaraka Subcity Extension

Phase II: The detailed project report is under preparation. RITES will prepare the DPR, which

will

take about two years time. Full-fledged work will begin by January 2005 and has been

completed in March 2010.

Phase II is 42 km long will be essentially extensions to Line 1, Line 2 and Line 3 of Phase I

either in one or both directions. It comprises the following.

Vishwa, Vidyalaya-Jahangirpuri (6.59 km)Central Secretariat - Qutab Minar (10.97 km)

Indraprastha- NOIDA City Centre (16.2 km) There will be 7 stations between Vishwa Vidyalaya-

New Azadpur to Sanjay Gandhi Transport Nagar, 18 stations in the Central Secretariat-Vasant

Kunj section and 12 stations in the Barakhamba Road-Noida.

The first concrete step in the launching of an Integrated Multi Mode Mass Rapid Transport

System (MRTS) for Delhi was taken when a feasibility study for developing a multi-modal


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MRTS system was commissioned by the Government of the National Capital Territory of Delhi

(GNCTD) at the instance of the Government of India in 1989 and completed by Rail India

Technical and Economic Services Limited in 1995 (RITES, 1995a, 1995b). The Delhi Metro

(DM) planned in four phases is part of the MRTS. The work of Phase I and part of Phase II is

now complete while that of phase III is in progress. The first phase of DM consists of 3 corridors

divided in to eight sections with a total route of 65.1 kms, of which 13.17 kms has been planned

as an underground corridor, 47.43 kms as elevated corridors and 4.5 kms as a grade rail

corridor. The second phase covers 53.02 kilometers of which the underground portion, grade

and elevated section are expected to be 8.93 kilometers, 1.85 kilometers and 42.24 kilometers

respectively. The construction of the first phase of DM was spread over 10 years during 1995-

96 to 2004-05 while that of the second phase, which started in 2005-2006 is expected to be

complete by 2010-11. The total capital cost of DM at 2004 prices for Phase I and Phase II areestimated as Rs. 64,060 and Rs. 80,260 million, respectively. Phases III and IV of DM will

cover most of the remaining parts of Delhi and even extend its services to some areas such as

Noida and Gurgaon belonging to the neighbouring states of Delhi.

When E Sreedharan took over as the managing director of Delhi Metro Rail Corporation in

November 1997, two doubts were raised about the subway rail venture: was it worth the effort?

Equally important, would it finish on time? It faced the challenge of relocating a large number of

utilities like water pipes, sewerage lines, telephone and electric cables to facilitate the

construction work, apart from the overwhelming challenge of relocating people.

Delhi Approved 3 Metro Corridors under Phase III

The Delhi government has cleared three of the six corridors of phase-III of the Delhi Metro. The

corridors are Mukundpur- Rajouri Garden, Central Secretariat-Red Fort and Jehangirpuri-Badli.


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Three routes, including the two corridors from Noida, Sector-18, in Uttar Pradesh, to Janakpuri

in West Delhi, and Rajouri Garden in West Delhi to Dhaula Kuan and Outer Ring Road in South

Delhi, were not finalized. The state transport department has been asked to prepare a DPR for

these three routes.

After clearance, the phase-III plan will be submitted to the Group of Ministers of the Union

Cabinet, which will then decide on funding for the construction of the six routes.

Phase-III, which will have nearly 70 km of track length, is estimated to cost `2,468 crore and

completed within five years.

Delhi Metro runs a fleet of 129 trains on a network of 138 km that has 117 stations. The average

daily ridership on weekdays has crossed the 15 lakh figure. The Airport Express Line, likely to

be inaugurated by October-end, is the last project in phase-II.

The Delhi government also plans to connect Anand Vihar in East Delhi to Dhaula Kuan in

Southwest Delhi in phase-III of the metro rail network. According to the proposal, the total

length of this corridor is 25.66 km. Of this, 12.52 km of the line will be underground while the

rest 13.14 km will be elevated. It is estimated to cost around `6,261 crore.

What makes the Delhi Metro project truly phenomenal is the way in which a foreign dependent

project was localised and re-engineered, by involving both Indian companies as well as

consortium members at each stage of the project. Amongst the chief capabilities transferred

seamlessly were project management processes, manufacturing rust-proof and fibre-reinforced

interiors steel coaches.

Not only has the DMRC stuck within the completion targets, some stretches have finished six

months ahead of time and the entire project is expected to be completed by December 2005.

Rivalling similar services in London, Seoul and New York, DMRC is a perfect case study for

both India and the world, on how to put together a world-class project within a world-class

timeframe.


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Phase IV

Phase IV has a 2020 deadline, and tentatively includes further extensions to Sonia Vihar, Reola

Khanpur, Palam, Najafgarh, Ghazipur, Noida Sector 62, Gurgaon and Faridabad, having a total

length of 108.5 km (67.4 mi). Apart from these lines in Phases I to IV, plans have been mooted

to construct a new line from Noida Sector 62 to Greater Noida which will intersect Indraprastha

Noida Sector 32 line. The Ghaziabad Development Authority is planning to extend Delhi

Metro lines deeper into Ghaziabad in three phases, including the extension of the Blue Line

from Anand Vihar to Vaishali, and subsequently to Mehrauli via Indirapuram, as well as the

extension of the Red Line from Dilshad Garden to the new Ghaziabad bus stand. The

independently operated Gurgaon Metro, work on which is going on and has a deadline of 2013,

will also interchange with the Delhi Metro.

Delhi Metro Project is the biggest urban intervention in India since Independence in 1947.

Project had to be executed in very difficult urban environments.

Being in the capital city all actions under close scrutiny of VVIPs

The Project implementation period compressed from 10 years to 7 years.

Metro being constructed to world class standards with frontline technologies.

The expertise and technology not available in the country. Legal cover needed for

construction and operations not in position.

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


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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

Economic IRR of the project works out to 21.4%, even though the financial IRR is less than 3%

Delhi Metro registers highest ridership of more than 15 lakh

As fear of getting stuck in maddening traffic jams due to the dedicated Commonwealth Gameslanes prompted hundreds of people to avoid buses, Delhi Metro registered its highest-ever

ridership of over 15 lakh.

Ever since the Central Secretariat-Qutub Minar corridor was integrated with the Qutub Minar-

HUDA City Centre (Gurgaon) line, Delhi Metro ridership has been increasing day by day.

With the Delhi Traffic Police earmarking some lanes on major roads exclusively for the use of

CWG athletes and delegates, people parked their vehicles at home and took Metro to reach their

respective destinations on time.

The sudden surge in the ridership can be attributed to the fear of getting stuck in traffic jams due

to the dedicated lanes for the Commonwealth Games and the Delhi Governments decision to

withdraw blue line buses from near the CWG venues.

The over-crowded Line 3 that connects Dwarka Sub-city with Delhis satellite city of Noida and

Anand Vihar, which is close to another satellite city Ghaziabad, recorded the maximum

ridership at 5.62 lakh.

The Line 2 (Jahangirpuri-HUDA City Centre) registered a ridership of 5,31,337 and Line 1

(Rithala-Dilshad Garden) at 2,88,276.

The ridership is set to increase with the opening of two lines - the showcase Airport Express

Line and the Central Secretariat-Badarpur corridor - before the October 3 Games extravaganza

begins.

Trains on the Central Secretariat-Badarpur corridor, which connects the Jawaharlal Nehru

Stadium, will run at a frequency of 2.25 minutes.


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By the end of the year, DMRC expects its ridership to reach 20 lakh a day.

Currently, over 130 train sets are in operation on the five lines of Delhi Metro with a new train

being added to the system every 10 to 15 days. Delhi Metro trains make over 2,300 trips on the

five operational lines covering 138 km.

Conclusion

The Delhi Metro planned in four phases is part of an Integrated Multi Mode Mass Rapid

Transport System (MRTS) planned for dealing with the fast growing passenger traffic demand

in Delhi. It provides an alternative safe and comfortable mode of transport by rail to a large

fraction of passengers using the road transport in Delhi. It reduces the travel time of people

using the road and Metro, number of accidents on roads and the atmospheric pollution. The

financial cost-benefit ratio of the Metro is estimated as 2.30 and 1.92 at 8 percent and 10 percent

discount rates respectively while its financial internal rate of return is estimated as 17 percent.

The financial evaluation of the Metro is done considering the financial flows of the project


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comprising the annual revenue earned and flows of investments and operation and maintenance

costs. The shares of debt, equity and internal resource mobilization in investments made on

Metro are 60, 30 and 10 percent, respectively.

The social cost-benefit analysis of the Metro requires the identification of benefits and the

economic agents affected by it. The incremental changes in the incomes of various economic

agents: passengers, transporters, public and government and unskilled labour due to the Metro

could be estimated by considering the Delhi economy with and without the Metro. It is found

that there are income gains to the government, public, passengers and unskilled labour while

there are substantial income losses to the transporters because of the metro.

Delhi Metro provides incremental income to the Delhi public which has a per capita income

more than two times the national per capita income. Therefore, accounting for income

distributional effects of the Metro has resulted in the reduction of the social rate of return to 22.7percent.

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Institute of Professional Education and Research