A PROJECT STUDY ON DELHI METRO RAIL CORP. LTD.

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS OF

CHANDRAGUPT INSTITUTE OF MANAGEMENT PATNA

By:
Sujeet Kumar 120051
SECTION - A

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 DECLARATION

We hereby declare that the project study entitled “DELHI METRO RAIL CORP. LTD.”
submitted to Chandragupt Institute of Management Patna in partial fulfilment of the
requirements for the award of post graduate diploma in management is our original work and
has been prepared by us under the faculty supervisor Prof. Kalyan Agrawal. We have not
submitted the work earlier, either to any other institute or university for the award of any
diploma, degree or certificate. We have followed the CIMP guidelines to prepare the report.
We have also given due credit to the sources of data, theoretical analysis, texts and other
materials by citing them in the text of the report and producing the details in the reference
section.

Place: Patna

Date: ……

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 ACKNOWLEDGEMENT

A project study is a golden opportunity for learning and self-development. We consider our
self very lucky and honored to have so many wonderful people lead us through in completion
of this project.

I would also like to thank my Faculty supervisor Prof. Kalyan Agrawal and all the people who
provided us with the facilities being required for conducive conditions of my project.

And a special thanks to all those who shared their valuable information that helped in the
successful completion of this project study.

Thank You,

Sujeet Kumar
120051

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Sr. no Topic Name Pg. no

1 INTRODUCTION 5

2 ABOUT DELHI METRO 5

3 THE PRODUCT LIFE CYCLE 6

4 PLANNING AND SCOPE OF THE DELHI METRO RAIL PROJECT 7

5 STAKEHOLDER MANAGEMENT OF THE DELHI METRO RAIL PROJECT 8

6 RISK MANAGEMENT FOR THE DELHI METRO RAIL PROJECT 9

7 BUDGETS AND COSTING OF THE DELHI METRO RAIL PROJECT 9

8 PROJECT REVIEW AND EVALUATION 10

9 CONCLUSION 10

10 REFERENCE 11

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 INTRODUCTION

Since 1991, The Indian economy has witnessed a rapid expansion and growth with the advent
of economic liberalization in India. This led to the initiation of major infrastructure projects in
India. With this, cities began to grow at a brisk pace as they provided a major share to the
economy with people migrating from remote villages and towns in India looking for
employment. Similarly, the city of Delhi also witnessed the same economic growth. With this,
the population of Delhi also started increasing at an exponential rate.

The increase in population of Delhi significantly led to the increase in number of vehicles
running on the streets. The traffic movement witnessed slow pace due to increased number of
vehicles leading to mass congestion. This congestion has resulted into people leaving their
homes nearly 3 to 4 hours prior to the reporting time at their respective places in order to reach
on time. The availability of public transport services like buses, taxis and auto-rickshaws have
not matched to the ever-increasing levels of demands of the general public for their
convenience in travelling to their workplaces.

The traffic on the roads of Delhi sees a heterogeneous mix of auto-rickshaws, private cars,
buses, motorcycles, scooters, etc. pushing against each other and has resulted into a very
chaotic situation of the roads leading to increase in accidents which sometimes prove to be
fatal, wastage of fuel by stop-start progression of vehicles and even in environmental pollution
that has caused deterioration in quality of air in Delhi.

In view of these ever-increasing demands for transportation facilities by the people of Delhi,
The Government of India (GoI) and the Government of National Capital Territory of Delhi
(GNCTD) set-up a joint-venture with equal partnership named as Delhi Metro Corporation
Ltd., (DMRC) in order to initiate and execute a potential world-class, passenger-friendly and
eco-friendly Mass-Rapid-Transit System known as the Delhi Metro Rail Project.

The Delhi Metro Rail Project is the first of the mass rapid transit systems to be initiated and
executed in India with modern-day technology and world-class features. It is designed to be a
potential self-sufficient transport system and more importantly an alternative means of
transport for the people of Delhi in order to reduce traffic congestion on the streets.

ABOUT DELHI METRO

The increasing number of vehicles on the streets of Delhi has led to long-term traffic jams
causing slow movement of traffic. So, the concept of mass rapid transit system was initiated to
address and solve the woes of urban traffic on the streets of Delhi known as Delhi Metro Rail
Project. The Delhi Metro Rail Project is one of the world-class Mass Rapid Transit (MRT)
systems in modern times. The Delhi Metro Rail Project is one of the busiest mass rapid transit
systems in the recent times matching to the standards of busy mass rapid transit systems set by
the New York “Subway”, the London “Tube”, etc.

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 The Delhi Metro Rail Corporation Ltd, (DMRC) was the organization that was assigned for
the planning, implementation and delivery of the project. It was set up as a joint venture
between Government of India (GoI) and Government of National Capital Territory of Delhi
(GNCTD).

DMRC did a background study in order to address the woes of Delhi’s urban traffic and
examined the viability of various mass rapid transit systems around the world in order to
execute the project.

Under the competent leadership of E. Sreedharan, M.D., DMRC, the construction of the metro
began in 1998 and within a span of four years, the construction of the first route of Delhi Metro
got completed in record time and the operations had commenced by the end of 2002.

The Delhi Metro Rail Project is planned to be built in phases not only covering the city of Delhi
but also connecting nearby cities of Gurgaon, Noida, Ghaziabad and Faridabad with metro
trains within a span of 20 years with each phase was projected to be completed in 5 years. The
completion of one phase was designed to be set as a benchmark for the commencement of
targeting the next phase (Delhi Metro system is an extensive four phase network, in planning
since the mid ‘eighties. Phase I and II are already operational and Phase III is partially
operational. Phase I was completed ahead of schedule which is a feat rarely achieved by any
company in India and a commendable achievement. It's been more than 14 years since Metro
changed Delhi forever and brought NCR towns closer to the Capital.

Delhi Metro came into our lives when public transport meant unreliable DTC buses, private
buses and those who could buy one, preferred private vehicles. Its reliability, affordability and
comfort attracted people using other modes of public transport and also private modes of
transportation. The Metro has been designed such that it can be integrated with other public
transport. Metro is available throughout Delhi, but there are some places where metro is still
under development.

Today over 2.6 million people use Delhi Metro daily. DMRC has set 2021 as the deadline for
the phase IV expansion, which has been approved by the Delhi Government. The Phase-IV
project will take metro’s network to around 436 kms. And surpass world’s oldest network- the
London’s tube in terms of length. The objective of present paper is to study and analyze the
change Metro has brought in the life of people of Delhi and how it provides mobility to all
sections of the society

THE PROJECT LIFE CYCLE

Since the Delhi Metro Rail Project was a construction-based project, the project life-cycle is
represented by the following

❖ Feasibility- project formulation, feasibility studies, and strategy design and approval.
A go or no-go decision is made at the end of this phase.

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 ❖ Planning and Design- base design, cost and schedule, contract terms and conditions,
and detailed planning. Major contracts are let at the end of this phase.
❖ Construction- manufacturing, delivery, civil works, installation, and testing. The
facility is substantially complete at the end of this phase.
❖ Turnover and Start-up- final testing and maintenance. The facility is in full operation at
the end of this phase.

PLANNING AND SCOPE OF THE DELHI METRO RAIL PROJECT

No project starts without a definite plan. Planning the project is a vital part in project
management as it sets a benchmark for setting up the executional methods for the project. It
points out the objectives of what the project will achieve when accomplished and how the
project will be completed. Planning process is a mandatory process in project management as
poorly planned projects leads to catastrophic outcomes such as projects getting stalled for
longer periods of time, projects getting officially cancelled midway after initiation, etc. There
are four basic reasons for project planning which as follows: -

i. To eliminate or reduce uncertainty.

Many projects in India are put on hold or remain stalled for years due to corrupt political
influence, nepotistic and obsequious work culture within the organization, mismanagement of
resources and exaggerated costs due to high level embezzlement at various stages of project
management leading to scandalous outcomes.

Similarly, to execute a state-of-the-art mass rapid transit system in the city of Delhi, extensive
planning was required by the DMRC keeping in view to deny any chance of corruption or
misallocation of funds to prosper at any stage of project management. The DMRC had their
objectives well set-out to address the issues regarding the implementation of the project. The
DMRC planned the Delhi Metro Rail Project in order to meet the following objectives: -

i. To deliver a state-of-the-art mass rapid transit system in the city of Delhi for easy
commuting to places which are inaccessible while travelling by roads.
ii. Reduction in number of usage of vehicles for short trips.
iii. Convenience in movement of traffic on busy streets.

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 The work breakdown structures and task time estimates for the Delhi Metro Rail Project are
described by the following table –

Sr. no Task Name Working Days

I Preparation of feasibility report by DMRC and approval of project 2224 days

II Bidding and election of companies for construction of the metro 419 days
routes

III Bidding and nomination of companies for supply of rolling stock. 64 days

IV Bidding of funding agencies and budget set-up with allocation of 411 days
resources

V Construction and opening of metro routes of Phase I 2467 days

VI Testing and inspection of trains and stations along the metro routes 1210 days
of Phase I

VII Hiring and training of staff for Phase I metro routes 1519 days

VIII Construction and opening of metro routes of Phase II 2687 days

IX . Testing and inspection of trains and stations along the metro routes 1237 days
of Phase II

X Hiring and training of staff for Phase II metro routes 1687 days

XI Construction and opening of metro routes of Phase III & Phase IV 5214 days

XII Testing and inspection of trains and stations along the metro routes 3351 days
of Phase III & IV

XIII Hiring and training of staff for Phase III& IV metro routes 4203 days

STAKEHOLDER MANAGEMENT OF THE DELHI METRO RAIL PROJECT

The people who influence and collaborate into the activity of project management are known
as 7 Stakeholders. The process of classifying, analyzing and managing the influences of the
stakeholders is known as stakeholder management.

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 In the case of Delhi Metro Rail Project, there were many stakeholders that were to be
addressed by the DMRC. The stakeholders were the construction companies who collaborated
as contractors, funding agencies, governments and the general public. On consultations the
contractors, the DMRC ensured that the problems at the project-affected roads would be
solved by construction of new roads and widening of existing roads so that there would be
smooth movement of traffic during construction.

The DMRC also ensured that the mandatory clearances and permits required from the
concerned organizations and bodies would be received without any hassles and through
effective communication so that it does not face any legal issues by them. DMRC set a high
safety standard so that the extent of damages would prove less fatal in case of accidents.
Engineering projects might bring a large-scale impact on various environmental components
like air, water, land, ecology, etc.

In view of that the project execution does not hamper the environment of Delhi, the DMRC
assessed the impacts of construction with updated soil tests, plantation of trees near to the
metro stations, reducing noise, air and water pollution levels and they submitted timely reports
to the Central Pollution Control Board (CPCC) and the Ministry of Environment & Forests
(MoE&F), Govt. of India.

The DMRC also gave assurance to the Archaeological Survey of India (ASI) that the
construction work through the heritage monuments of Delhi like the India Gate, Qutub Minar,
etc. would not be affected. Since the Delhi Metro Rail Project was constructed with the funds
allocated by the Japan Bank for International Corporation (JBIC) since it was the main
funding agency. The project was completed within the budget with effective management of
resources.

RISK MANAGEMENT FOR THE DELHI METRO RAIL PROJECT

No project goes underway without risk assessment as they are inevitable procedures in the
process of project management. Risk assessment involves identifying the risk, responding and
taking mitigation steps to negate or reduce the likelihood of the risks to occur again. Managing
risks is of utmost importance as occurrence of risks hamper the implementation of the project
and thereby leads to cancellation or failure of projects.

BUDGETS AND COSTING OF THE DELHI METRO RAIL PROJECT

Financing is the prerequisite for the projects without which projects do not proceed further.
The nature and the amount of finance required varies significantly throughout different stages
of projects. Since the Delhi Metro Rail Project is a joint-venture, it was financed by the
following means: -

i. 32% cost of the project were financed by the Government of India (GoI) and
Government of National Capital Territory of Delhi (GNCTD).
ii. 54% cost of the project were financed through the loans from Japan Bank for
International Corporation (JBIC) with a signed Memorandum of Understanding

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 (MoU) that the loan borrowed would be repaid with variable interest rates regarding
the market within a span of 35 years.
iii. The rest 7% were from loans exempted of interests for land acquisition and another
7% through development of property.
iv. Reliance Infra paid 50% of the funds for construction of metro line through Delhi
Airport through public private partnership model.

PROJECT REVIEW AND EVALUATION

The Delhi Metro Rail Project turned out to be a grand success due to the efficient and effective
project management by the DMRC as the metro routes were finished way ahead of their
estimated times. The people and media lauded DMRC for its performance and more
importantly eradicating corruption. Due to their performance in effective project
management, the officials at the DMRC were called upon as consultants and advisors for
implementation of metro-rail projects in different cities of India.

The government of UAE also approached DMRC for their expertise and consultations in
implementing the Dubai Metro Project. Since the project is ongoing with construction of
phase III & IV are still underway, the DMRC has already put up well-managed work schedule
with a desire to complete the phases ahead of estimated completion in 2021.

CONCLUSION

The Delhi Metro Rail Project proved a greatly successful public-sector project undertaken in
India excluding the influence and views of government officials and bureaucrats on decision-
making and implementation techniques. The project delivered a new and comfortable means
of transport to the people of Delhi with achievement of its objectives in reducing traffic
congestions on the roads and bringing down pollution levels.

Though the final budget costs of the phases escalated from the original budget costs, the
DMRC ensured that it would adhere to achieve its predetermined objectives on time and
meeting the planned targets in order to arrest cost escalation. Though project management is
about continuous improvement and learning from mistakes, the Delhi Metro Rail Project
proved that one organization comprising of fully dedicated and committed members can
manage such a highly labor-intensive project with proper decision making and effective
management and monitoring techniques. A competent and firm project manager can lead a
team of hundreds of individuals through a dynamic and results-oriented leadership.

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REFERENCE

https://en.wikipedia.org/wiki/Delhi_Metro_Rail_Corporation

https://economictimes.indiatimes.com/topic/DMRC

http://www.delhimetrorail.com/

http://www.globaldeliveryinitiative.org/library/case-studies/delhi-metro-effective-
project-management-indian-public-sector

https://www.projectstoday.com/TrialAccessRegistrationPage.aspx

https://www.journalcra.com/article/project-management-case-study-delhi-metro-
project

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