DELHI AIRPORT METRO PROJECT

SUBJECT : Public Private Policy

SUBMITTED TO : Dr. RACHNA GANGWAR

Prepared By : Ajay, Akash, Hirvi, Nishant, Rohit, Saurabh, Yashraj, Mihir

 Introduction
■ In 1995, GOI and the Government of the National Capital Territory of Delhi (GNCTD) formed
Delhi metro rail corporation Ltd (DMRC) under the companies Act to construct the Delhi Metro
■ Conceived as a social sector project, a significant portion of the project cost was funded through
soft loan by Japanese government through Japan Bank International Corporation (JBIC). The
rest was contributed by GOI and GNCTD through equity
■ Phase 1 of the total length 65.16 km, cost Rs 98 billion as of early 2006 , around 450,000
passenger were traveling by the Delhi Metro every day
■ E.Sreedharan was appointed MD
■ With Phase I of the Metro project nearing completion, the GOI decided to extend the metro
network on Phase II 
 NEED OF MRTS-

■ Congestion
■ Save time
■ Population size
■ Increase tourist & Sports
participant
PROJECT DETAILS-

■ Project Length 19.2 km with a hybrid mix

■ 5.5 Km underground tacks
■ 11.6 km of elevated tracks
■ Remaining would be for switch over ramps
■ Expected traffic 86000 by 2021
■ Turn around time 55-60 min
■ Express line would terminated at the airport
■ Cost of the project 2381 Cr (Without taxes and duties)
 Capital Expenses Share-
 For Phase- 1 and 2
■ Equity-
38.78% Equity from Government and Airport.
1.22% from Govt. towards Land cost.
■ Debt-
1st JBIC extended a loan at 1.3% for 30.
2nd Domestic Debt at 10% for 20years.

 As the AMEL was not included in the phase 2

prior to approvals, thus JBIC was not in favor
of extending loan for the 2nd phase.
PROJECT ESTIMATES-
■ Total Cost with Tax and Escalation- Rs.38.11Billion
■ Operation Cost- Rs.729.6Million and a yearly increase of 9% for
staff salary and 5% for maintenance and energy.
■ Additional Investment-In the year 2020-21
Rolling Stock Upgradation Telecomm upgradation was estimated
10% of the project cost.
■ Fare Structure- Govt. Regulated.
■ By 2021 daily ridership will grow up to 86000/day
and expected to grow at 6% every year.
CHALLENGES-

■ Financial Challenges

■ Time Crunch

■ Financial Closure
BOT Model through Viability Gap Funding-

■ 33% Equity (Rs.12.58B) 12% Return on equity.

■ 67% Domestic Debt (Rs.25.53B) at 10% Per Annum.
BOT Model Through Funding and
Execution of Civil Work-

■ Cost of Civil Work.

SUGGESTION-

■ Clearances to be fast tracked

■ Trained manpower to be availability at all level
■ DMRC is best suited to undertake the project
■ Construction can be started in parallel manner
■ Effective monitoring to be implemented
THANKYOU