SUBMITTED BY:

SOUMYA BHADANI
DM17A51
FINANCE ANALYTICS
 Delhi Metro is a rapid transit system serving Delhi, Gurgaon, Noida and Ghaziabad in the
National Capital Region of India.
 Delhi Metro Rail Corporation Limited(DMRC) was registered on 3rd May 1995 and it is solely
responsible for the construction and operation.
 A comprehensive traffic and transportation study completed in1990 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.
 The first line of Delhi metro was inaugurated by A B Vajpayee(former prime minister of India)
on 24thDecember, 2002.
 High rate of road accidents
 More registered vehicles than Mumbai, Kolkata & Chennai put together.
 More than 35 studies recommended Mass Rapid Transit System.
 Population of over 1 million
 Automobiles contributing to more than two-thirds of the total atmospheric
pollution.
 DMP is the biggest urban invention in India since independence in 1947
 Project has to executed in a 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 standard with frontline technologies
 Expertise and technology not available in the country
• 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
• P-1 to connect Delhi’s business, education and shopping districts
• P-1 consists 3 Lines, total length 56km, 50 stations & 3 maintenance depots
• Total land needed 340 hectares
 GOI and GNCTD arranged all the capital required
 Initial estimation of cost in 1996 is 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 savings
 2.2 million passengers/day to become the project viable later revised to 1.5 million passengers/ day
 Economic IRR is 21.4%
 Financial IRR 3%(low IRR some minster suggested to drop the project)
 Social sector project can benefit the regional economy in more than one ways
S.NO Source of Fund % of total cost Remark
1 Equity 28% Equally subscribed by
GOI & GNTCD
2 Interest free loan 5% Land acquisition
3 JBIC 64% Time sliced soft loan
4 Property development 3% Commercial activities

 Repayment period 30 years including 10 years grace period

 Debt to equity ratio 2:1
 Exchange rate risk bore equally by GOI and GNCTD
 Source of revenue fares, property, development, taxes on local public
 The project was exempted from custom and excise duties
 Individual accountability
 Daily monitoring of progress
 Weekly Reviews and targets
 Delhi metro act 2002
1. Superseded Delhi municipal laws
2. Lower courts barred from issuing stay orders
3. Dedicated team of lawyers to prevent property disputes
 Cost centers
1. Manpower
2. Energy
3. Material and maintenance
 PROJECT IMPLEMENTATION
Particulars Sections Character Length, stations Opened on

Line1( Shahdara to 1.Shahdara to tis Elevated and at grade 1.7.92km 1.25/12/2002

rithala) hazari 6station
2.Tis hazari to inder 2.4.74km 2.4/10/2003
lok 4 station
3.Inder lok to rithala 3.9.40km 3.1/4/2004
8 station
Total 22.06kms (18 station)
Line2 (vishwa 1.Vishwa to kashmere Underground 1.(4km) (4 station) 1.20/12/2004
vidyalaya to central gate
secretariat 2.Kashmere gate to 2.(7km) (6 station) 2.3/7/2005
central secreta
Total 11kms (10 stations)
Line3 (barakhmba to Barakhamba to Elevated and at grade 1.(22.79km) (22 1.31/12/2005
dwarka) dwarka with short station)
Dwarka to indraprasth underground section 2.(2.81km) (3 station) 1/4/2006

Total 25.6kms (3
stations)
 Mr. E Sreedharan was appointed as project manger and managing and managing director in
November 1997
 A technocrat retired from IR in 1990
 70% 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
 Remove subjectivity from tender evaluation
 The citizens of Delhi
 The japan bank for international cooperation(JBIC)
 IMCC a consortium of builders for underground works with mot mc Donald’s, UK as the lead designs
consultant
 Baharat earth movers limited(BEML),. The Indian coach builders
 Delhi transport corporation
 Govt. of Uttar Pradesh and Haryana
 Government of national capital territory of Delhi
 Ministry of railway and ministry of urban affairs, govt. of India
 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, and communication engineering

 Loss of Rs 5 million if one day lost

 Difference of opinion on gauge to be adopted

 Efficiency, courtesy, and integrity, in corporate culture
 Corruption free contract awarding system and procurement process
 Autonomy in decision making
 We mean business attitudes
 Advance planning in utility diversion, minimizing public inconvenience