1. THE DELHI METRO PROJECT
EFFECTIVE PROJECT MANAGEMENT IN PUBLIC SECTOR
PRESENTED BY :-
Gourav Ranjan &
Group

2. INTRODUCTION
 The need for a reliable public
transportation was felt in Delhi for a long
time.
 A comprehensive traffic and
transportation study completed in 1990
highlighted the urgent need for a rail-
based transit system comprising a
network of underground elevated and
surface corridors to meet the traffic
demand projected for 2021. To make this
dream a reality , the Delhi Metro Rail
Corporation Limited (DMRC) was
rd

3. Reasons
 Population of over 1 million.
 More registered vehicles than Mumbai,
Kolkata & Chennai put together.
 Automobiles contributing to more than two –
thirds of the total atmospheric pollution.
 High rate of road accidents
 More than 35 studies recommended Mass
Rapid Transit System.

4. Challenges
 Delhi Metro is the biggest successful urban
project in India since independence in 1947
 Project has to be executed in very difficult urban
environment
 Being the capital city, all actions under close
scrutiny of VIPs
 Project implementation period compressed from
10 years to 7 years
 Metro being constructed to world class
standards with frontline technologies
 Expertise and technology not available in the
country.

5. The Delhi Metro
Project
 Second project in country after Kolkata
Metro:1984.
 A 50:50 joint venture of GoI and GNCTD
 DMRC incorporated under Companies Act 1995
 Duration of completion of Phase – 10 years by the
end of 2005
 Get approved by GoI in Sept 1996 (after civic
organizations recommendations)
 Phase-I to connect Delhi’s business, education
and shopping districts.
 Total land needed 340 hectares (58% govt., 39%
private agriculture and 3% private urban land)
 Phase-I consists 3 Lines, total length 56 km, 50
stations (10 underground) and 3 maintenance
depots.

6. 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 Dwarka

7. Project
 GoI and GNCTD arranged the all capital required.
 Initial estimation of cost in 1996 Rs 60 billion
 Revised estimation cost in 2002 was Rs 89.27 billion
 Final cost of project approx Rs 99 billion.
 2.2 million passenger/day to become the project viable
later revised to 1.5 million passenger/day
 Economic IRR 21.4%
 Financial IRR 3% (low IRR some minister suggested to
drop the project)
 Social sector project can benefit the regional economy
in more than one ways.

8. Cost Structure
 Repayment period 30 years including 10 years grace
period.
 Debt to equity ratio 2:1
 Exchange rate risk bore equally by GoI and GNCTD.
 Sources of Revenues: fares, property development, taxes
on local public.
 Property Development: Shopping Mall, IT Part, Multiplex,
Restaurant and Stores etc.
 This project was exempted from custom and excise
S. No. Source of Fund % of total
cost
Remark
1 Equity 28% Equally subscribed by
GoI & GNCTD
2 Interest Free Loan 5% Land Acquisition
3 JBIC 64% Time Sliced Soft Loan
4 Property
Development
3% Commercial activities

9. The Project Team
 Mr. E. Sreedharan was appointed as project
manager and managing director in Nov 1997.
 A technocrat retired from IR in 1990.
 Earned reputation for completing the project
on time and within budget.
 70% of senior staff hired on deputation from
IR
 DMRC opted lean structure.
 Effective contract awarding and
procurement process (to tackle with time,
cost and corruption)
 Contract awarding process transparent and
simple & fair and just
 Removed subjectivity from tender

10. Contd…
 Had two departments: project organization and
operation & maintenance
 Experts required from: Civil, electrical and
communications area etc.
 Young 18-30 years motivated team of professionals
personally interviewed by MD.
 Faced skill shortage problem everyone was new to
metro project
 No technical institute of such kind in the country.
 Suitable candidates sent HongKong MTRC for training.
 Metro Training School at Shastri Park
 Unique work culture: hard working, dedicated and
professionally competent

11. The Project Plan
 Individual accountability.
 Daily monitoring of progress.
 Weekly reviews and targets.
 Delhi Metro Act, 2002
 Superseded Delhi Municipal Laws.
 Lower courts barred from issuing stay orders.
 Dedicated team of lawyers to prevent property
disputes.
 Cost centers
 Manpower.
 Energy.
 Material & maintenance.

12. Road Blocks
 Low Financial IRR prompted second
thoughts on the project
 Criticism due to inability to recruit, 70% were
deputed from Indian Railways
 Lack of experience & specialized experts in
Civil, Electrical & Communication
Engineering
 Loss of Rs 5 million if one day lost
 Difference of opinion on gauge to be adopted

13. Critical Success
Factors
 ‘We mean business’ attitudes.
 Efficiency, courtesy & integrity in corporate
culture.
 Corruption free Contract Awarding System &
Procurement Process.
 Autonomy in decision making.
 Advance planning in utility diversion,
minimizing public inconvenience.

14. THANK
YOU