PROJECT

PLANNING
CASE STUDIES

Delhi Metro

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 railbased 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 registered on 3rd
May 1995 and it is solely responsible for the construction and
operation.

Reason

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.

Challenges

DMP is the biggest urban invention 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.

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)

P-I to connect Delhis business, education and shopping

districts.

Total land needed 340 hectares (58% govt., 39% private

agriculture and 3% private urban land)

P-I consists 3 Lines, total length 56 km, 50 stations (10

underground) and 3 maintenance depots.

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

Funding the 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 with Rs 7 billion

saving

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.

Cost Structure
S. No.

Source of Fund

% of total cost

Remark

Equity

28%

Equally subscribed by GoI &

GNCTD

Interest Free Loan

5%

Land Acquisition

64%

Time Sliced Soft Loan

3%

Commercial activities

3
4

JBIC
Property Development

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 duties.

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 evaluation.

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

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.

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

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

minimizing public inconvenience.

diversion,

ADHAAR

Aadhaar, previously called the Unique Identification (UID)

project, was the 12-digit identification number provided
by the UIDAI on behalf of the Government of India (GoI).

The number served as proof of address and identity for

citizens anywhere in India. The Aadhaar project was
initiated by UPA to provide an identity to the 1.2 billion
citizens of India.

The project aimed to plug loopholes in welfare programs

where checking leakages and identifying beneficiaries was
a major challenge. There was an absolute guarantee that
no two people would have the sameAadhaar, according to
theUIDAI. Besides, it could not be duplicated either.

Its original intention was to provide every resident Indian

with a unique identifier that could link to other numbers like
PAN, bank accounts, etc. to slowly build a common profile.

The UID was touted at a panacea for all evils. One number to
solve it all, it seemed.

Adding to the mess was the enrollment for the NPR (National
Population Register) with their TV ads. Why have both
numbers? How are they different? Well, no one knows. The
NPR was rolled out by the home ministry and Aadhar by UIDAI,
both with similar intents.

Moreover,a sting operation by Cobrapostrevealed that the

process is riddled with holes with practically anybody, even
illegal immigrants, can obtain a unique Indian ID by paying
bribes.

The Supreme Courts order that no person should suffer for

not getting the Aadhaar card has put the future of the Unique
Identification programme in question. Rendering the aadhar
card befit

Reasons for failure

Paytm

Paytm is an e-commerce shopping website launched in

2010, which initially focused on Mobile and DTH
Recharging. It gradually provided recharging and bill
payment of various portals including electricity bills,
gas bills, as well as telephone bills.

Paytm entered India's e-commerce market in 2014,

providing facilities and products similar to businesses
such as Flipkart, Amazon.com, Snapdeal.

In 2015, it added booking bus travel and transfer money

amongst friends.

Success factors !

Great UX, as pointed out by everyone

Free to use (no service charges)

Amazingly fast, hassle free charge in just 3-4 simple steps

You get discount coupons for apparel, gadgets, travel and food,
all for free.

You can use it to recharge your DTH card, Data Card, Toll card
(for Delhi-Gurgaon expressway), pay your electricity bills, and
most recently, bus ticket bookings as well.

Amazing customer service. They are prompt, helpful and in

case there is a failed recharge, your money is refunded on
sending a simple mail to them.

You can store money in Paytm Cash, which is like a prepaid

account. Recharging via Paytm Cash is literally instantaneous.
Also, last Christmas, they had a special scheme for users.
Those who recharged their Paytm Cash with 2000 bucks would
get an extra 300 bucks balance free for their Paytm Cash.

In 2014, Paytm became the largest digital commerce

company in India.

25 million active wallet users

Three million transactions a day across Paytm app

Yebhi.com

Yebhi.com is an Indian Online shopping E-commerce

portal for Home, Lifestyle & Fashion e-retailer,
launched in the year 2009.

Yebhi, which began as BigShoeBazaar.com, has a

registered user base of about 1.5 million people, of
whom about half a million have transacted on the site

On 4 September 2014, they changed their business

model to coupon store and served Flipkart, Jabong,
Myntra, Zovi, Koovs & Zivame as their clients.

Failure

Strong competition yebhi had put innovation on the

backburner and fall behind their more innovative competitors.

Unable to pay suppliers and vendors for the last seven-eight

months.

Several sellers have de-listed themselves from the site

Inconsistency & fund crunch - companys failure to its

inability to raise fresh capital

There were 300 employees in March and now it is less than

100. Even co founders and top staff leaving.

The company runs the risk of being shut down if it does not
arrest the slowdown, say sources.

Yebhi.com has not advertised in the last 10-12 months.