Let us Begin the journey throughDELHI METRO

DELHI METRO

Amol AzadRajat Singla

"We (DMRC and its partners) have acquired the expertise for most of the work. We have always wanted to have a more patriotic approach in our work and are proud that we can do the job ourselves in such little time," says DMRC managing director E. Sreedharan said in a recent interview.

Quote by E. Sreedharan

Executive Summary

• The National Capital Territory of Delhi with a population of around 14 million has a vehicle population of around 4 million. Bus travel is the predominant mass transportation system in Delhi.

• This has resulted in increasing traffic congestion, increasing road accidents and increasing air pollution. Though a number of studies were carried out and recommendations made to solve the mass transportation problem of Delhi, it was only in 1998 that the Delhi Metro Rail Corporation was formed with equal equity participation of the Government of India and Government of the Capital Territory of Delhi to plan, execute, operate and maintain the Delhi Metro.

• The Delhi Metro Rail Project is being planned and executed in four phases - Phase I, Phase II, Phase III and Phase IV.

• It consists of 3 lines - Line 1, Line 2 and Line 3. Line 1 is partly elevated rail and partly surface rail. Line 2 is underground metro. Line 3 is partly underground and partly elevated rail.

Executive Summary (Cont.)

• Line is completed and is operational. Phase I is scheduled for completion by 2005, Phase II by 2010, Phase III by 2015 and Phase IV by 2020.

• The project requires the deployment of several technologies - Constructional Technology, Rail Coach Technology, Power Systems Technology, Rail Communication and Control Technology, Microprocessor Controlled Smart Card Technology. Underground tunnel construction involves considerable risks due to uncertain geological conditions. The project is executed with the help of both local and international contractors who are contracted to design and build the facility. An International Consortium of Consultants oversees the work.

• Japan Bank for International Cooperation is extending loan to the project to the extent of 56% project cost. Government of India, Ministry of Urban Development and the Government of the National Capital Territory of Delhi are each investing 15% of the project cost. The remaining is met through interest-free loans and property development. The operation and maintenance costs are essentially met by ticket sales.

• People of Delhi are generally satisfied with the services offered by DMRC and are proud of experiencing one of the most modern, sophisticated and world-class technological systems. Other cities in India and abroad have shown interest in having metros through DMRC's services.

Key Architects

• The Central Road Research Institute (CRRI), New Delhi• Metropolitan Transport Team (MTT) of the Indian Railways• Delhi Development Authority (DDA)• The Study Group of the Ministry of Railways• RITES (Rail India Technical & Economic Services)• Mr. E. Sreedharan, Managing Director, DMRC

Implementers/ Stakeholders

• The Delhi Metro Rail Corporation Ltd. (DMRC).• Ministry of Railways and Ministry of Urban Affairs, Government of India.• Government of the National Capital Territory of Delhi (GNCTD).• Delhi Transport Corporation (DTC).• Governments of Uttar Pradesh & Haryana (At a later date) General Consultants (A

consortium of Indian and Overseas Consulting Firms).• The consortium comprising ROTEM (formerly KOROS), Mitsubishi Corporation, and

Mitsubishi Electric Corporation - manufacturers of Rolling Stock.• Bharath Earth Movers Limited (BEML), the Indian Coach Builders.• KSHI JV, a consortium of builders for open cut works with Maunsell, Australia engaged

as the lead design consultant.• IMCC, a consortium of builders for underground works with Mott MacDonald, UK as the

lead design consultant.• The Japan Bank for International Cooperation (JBIC).• The citizens of Delhi (Those who pay and use the Metro and those who are indirectly

benefited).

Key Objectives -• The main objective of the project is to improve Delhi's urban environment by reducing traffic

congestion and pollution. The Project is expected to help reduce traffic congestion, exhaust emissions, and other types of urban pollution caused by motor vehicles, and to play a large role in improving Delhi's transit system.

• Outcomes-• Out of 271.45 ha of land required for the project, 237.062 ha has already been acquired. A punctuality

of 6 minutes is being maintained at present during peak hours. This interval would gradually be reduced to 3 minutes when adequate traffic builds up. Train-sets of four coaches in rake have been put into service. They run at intervals of 8 to 10 minutes from 6 a.m. to 10 p.m. The maximum speed of the Metro is 80 km/h with an average stoppage time of 20 seconds at each station.

• Delhi Mass Rapid Transit System is essentially a “social sector‟ project, whose benefits will pervade over wide sections of the economy. I phase will generate the following benefits to the city.

• 21.82 lakhs commuter trips per day will be siphoned off the roads. This would mean:• 2,600 less buses on the roads. Increasing in average speed of buses from 10.5 km/h to 14 km/h.• Metro will reduce journey time by 50 to 75 percent.• Saving of 2 million man-hours per day due to reduced journey time.• Saving in fuel cost worth Rs. 5 billion per year• Space saving- The metro can carry traffic as 9 lanes of buses / 33 lanes of motor cars (either way)• Delhi will experience a net benefit of Rs. 437.23 lacks per day. q More comfortable & safe travel for the

commuters• Reduction in atmospheric pollution levels by 50%.

Major Contracts

• Local Competitive Bidding, International Competitive Bidding and Progressive Indigenization are the modes used for contracting work.

• Local Competitive Bidding• Design and construction of surface and elevated Lines 1 and 3 are packaged for contracting on

design-bid-build basis through local competitive bidding.

• International Competitive Bidding• Line 2 with its more challenging underground alignment and tight construction schedule is being

procured through two large internationally tendered design build contracts. Following a competitively contested tender that required a rebid process in efforts to lower contract price estimates, the two design-build contracts were awarded in February 2001.

• The 50-month contract for the 4km-long open-cut section from Vishwa Vidyalaya to the Interstate Bus Terminal (ISBT) station was awarded for a tender value of Rs. 900 crores to: KSHI JV comprising Kumagai Gumi (Japan – leader), Skanska (Sweden), Hindustan Construction (India), and Itochu Corporation (Japan), and with Maunsell, Australia engaged as the lead design consultant.

• The scheduled 60-month contract for the 7km-long, mainly bored tunnel section from the ISBT station to Central Secretariat, with five open-cut stations and an NATM mined station at Chawri Bazaar, was awarded for Rs. 1700 crores to: International Metro Civil Contractors (IMCC) comprising Dyckerhoff & Widmann (Germany – leader), Shimizu Corporation (Japan), Larsen & Toubro (India), Samsung (Korea), IRCON International (India) and with lead design consultant Mott MacDonald, UK.

• The construction methodology for the underground Corridor was finalized after taking into account the availability of open space above the alignment, ground conditions, conditions of nearby existing structures and likely settlement in the vicinity.

• In addition to the civil works, design for the design-build contracts also includes station & services, ventilation, air conditioning, lighting, station finishes, landscaping, and the provisions for the fitting of platform edge doors at a later date.

• Delhi Metro Rail Corporation (DMRC) has awarded a contract to Alcatel TAS the design, installation and commissioning of the full Integrated Rail Communication system for the metro.

International Competitive Bidding (Contd.)

Indigenization

• DMRC is procuring 240 coaches of which 60 (4 trains) are manufactured in ROTEM, Korea.

• BEML Bangalore will manufacture the other 180 coaches (45 trains). Starting with the local assembly and testing of a few trains, BEML will manufacture the coach shell, traction motor, converter, inverter unit, battery, passenger announcement and information system, air-conditioning units and seats. This will help in acquiring capability and avoiding import of trains for the forthcoming metro projects in Bangalore, Ahmedabad, Mumbai and Hyderabad.

The Man Behind The Success Story

“Politicians Know I Cannot Be Maneuvered”, E Sreedharan

About the Man

• Elattuvalapil Sreedharan, 77, is a disciplined, simple man who calls himself a ‘Railway Man/Metro Man' with 36 years of service in the Indian Railways.

• Lauded for achieving the 'almost impossible' in a government-administered system and given extensions by the government after his retirement in 1990, Sreedharan comes with a reputation of bringing fantastic results.

• He almost has an obsession with deadlines. (In the early years of his career, it earned him 20 transfers.) Every officer in DMRC keeps a digital board which shows the number of days left for the completion of the next target.

• The 77-year-old civil engineer has been selected as one of the most outstanding Asians by Time magazine.

His other little known achievements

• In 1963, disaster struck the Rameshwaram island when tidal waves washed away the Pamban bridge connecting it with mainland Tamil Nadu. A passenger train was swept away, killing hundreds of persons.

• The Southern Railway decided to restore the bridge and set a target of six months. General Manager B.C. Ganguly advanced the deadline by three months and the Railway Board assigned the task to a 31-year-old executive engineer, Sreedharan. It was a tough task as it was an old bridge, built by the British in late-nineteenth century, with 146 spans and a scherzer-a steel girder which opens up for large vessels to pass under the bridge.Sreedharan took up the challenge and advanced the deadline by a month, making the task tougher. He made the bridge functional in 46 days. He achieved this by the application of some 'commonplace values'-discipline, punctuality and honesty-and the introduction of a new work culture. These traits continue.

His other little known achievements• Sreedharan successfully completed another mega-project -the Konkan railway

between Maharashtra and Mangalore. The rail-line was mooted in 1990 by then railway minister George Fernandes, while talking to Railway Board members. After studying it, Fernandes himself dismissed it as impossible.

• A month later, Sreedharan went to Fernandes with a well-charted out plan. "I told him that we will have to work in a different fashion," he recalls. Probably his enthusiasm infected Fernandes, who got cabinet approval for the project within three days. Maharashtra and Kerala immediately agreed to the project, but Karnataka chief minister Virendra Patil objected.

• Sreedharan, then a member of the Railway Board, went to Maharashtra, Karnataka, Goa and Kerala and got all the necessary approvals before his 'retirement'. But retirement was not to be as Fernandes wanted him to head the West Coast Railway. Thus the Konkan Rail Corporation was born. It created an engineering marvel by laying a rail network across the mountainous Western Ghats.

IIM Lucknow Case study facts

• Expected passenger traffic - 21,80,000 per day.

• Today only 5,00,000 commuters use the metro per day.

• The DMRC website states that the estimated number of

originating passengers per day in the year 2011 for Phase I

and Phase II corridors will be 26,17,000.

The project nevertheless is a success…

IIM Lucknow Case study facts

• About 1,100 train trips operate every day with a punctuality

of nearly 100 per cent.

• According to DMRC spokesperson Anuj Dayal the metro earns

Rs 1 crore daily, of which Rs 65 lakh comes from passenger

fare and the rest comes through associated activities like

property development, advertisements and displays,

consultancy and others.

DMRC- Pride of the Nation

• Following DMRC's success, it has been asked to prepare detailed project reports for metro rail transport systems, both in India as well as abroad.

• Countries that have sought its consultation for their project management include, Pakistan, Bangladesh, Indonesia, Sri Lanka , Syria, Ireland and Indonesia.

• According to IIM- Lucknow, due to its technical expertise, timely completion of projects and the corporate culture it operates in, DMRC has attained the readiness to compete with other similarly placed agencies globally.

A Cost-benefit analysis of Delhi metroCourtesy: Indian Institute of Economic Growth, Delhi University

Cost Financed By Phase I Phase II

1) Equity (50% each by GOI & GNCTD) 30% 30%

2) Long Term Debt (Overseas Economic Cooperation Fund, Japan) @ 3% p.a. or less

60% 56%

3) Revenues From Property Development 7% 5%+ 5% (internal resources)

4) Subordinate Debt 3% 4%

The Funding

• More than 60 percent of the funds required for investment are raised as debt capital.

• Around 30 percent of total investments of DM are raised through equity capital with the Government of India (GOI) and GNCTD having equal shares in it.

• The remaining 10 percent of the investments of DM will be covered out of the revenues it earns.

• DM had been provided with the following concessions by GOI to make the project viable, namely

(a) The cost of land equivalent to Rs. 2180 million has been provided as an interest free subordinate loan by GOI/GNCTD to be repaid by the DM within 5 years after the senior debt is repaid fully by the twentieth year of taking the loan

(b) The risk associated with the exchange rate fluctuations is borne by government in case of foreign debt

(c) The DM is exempted from payment of income tax, capital gains tax, property tax and customs duty on imports.

(d) The DM is permitted to generate resources through property development over a period of 6-20 years.

(e) No dividend is paid on GOI share of equity till the senior debt is repaid fully by the twentieth year.

A financial analysis of the Metro

Sources of revenue for the metro are (according to RITES)

• The Fare Box Revenues • Revenue from Advertisement• Revenue from Property Development

• The main source of revenue of the MRTS system is the fare box collection, which is a product of the total passenger ridership on the MRTS.

A financial analysis of the Metro

• Full ridership is expected to materialize on the metro with a fare comparable to the DTC bus fare of Rs. 3 per passenger trip.

• The financial model consisting of Rs. 5 per passenger trip and an annual fare increase of 7.5 per cent was considered optimal by RITES.

• Fare Sensitivity of Ridership on the Metro (In Rs/Passenger trip)

Fare Rate Percentage Ridership

3 100%

4 90%

5 75%

6 50%

Estimates of Daily Passenger Trips by Metro (in lakhs)

Year Daily Passenger Trips 2002 12.63 2003 20.15 2004 23.86 2005 31.85 2006 33.17 2007 34.55 2008 35.97 2009 37.46 2010 39.01 2011 40.63 2012 41.81 2013 43.03 2014 44.29 2015 45.58 2016 46.91 2017 48.28 2018 49.69 2019 51.14 2020 52.63 2021 54.17

Estimates of Financial Flows of Revenue Earned by DM (Phases I and II) During its Lifetime (Rs. Million) Year Revenue Year Revenue Year Revenue

2005 15052 2018 67722 2031 128687 2006 17152 2019 74284 2032 133307 2007 19407 2020 82806 2033 134177 2008 21826 2021 92342 2034 139477 2009 24421 2022 99126 2035 140477 2010 33762 2023 106242 2036 146547 2011 37112 2024 115557 2037 147687 2012 41057 2025 116067 2038 154657 2013 44511 2026 119127 2039 155947 2014 50847 2027 119717 2040 163947 2015 49633 2028 123227 2041 165437 2016 56277 2029 123897 2017 62209 2030 127927 a ten fold increase

Identification of Economic Benefits and Costs of Metro

• DM contributes to the diversion of a very high proportion of current passenger traffic from road to Metro and serves part of the growing passenger traffic demand in Delhi.

• There will be savings in travel time for passengers still traveling on roads due to reduced congestion and obviously also for those traveling by Metro.

• The Metro also brings about a reduction in air pollution in Delhi because of the substitution of electricity for petrol and diesel and reduced congestion on the roads

• There will also be a reduction in the number of accidents on the roads.

Identification of Economic Benefits and Costs of Metro

• Reduction of government investments on road developments and buses as also in the private sector investment on buses, passenger cars and other vehicles carrying passengers.

• Reductions in motor vehicles’ operation and maintenance charges to both the government and the private sector.

• There will be health and other environmental benefits to the public due to reduced pollution from the transport sector of Delhi.

• Land and house property owners gain from the increased valuation of house property prices due to the Metro.

• The Metro has the effect of increasing the income of the regional economy of Delhi vis a vis the rest of the Indian economy.

Identification of Economic Benefits and Costs of Metro

• The Metro provides employment benefits to the unskilled labour especially during its construction period. This labour is otherwise unemployed or under employed in the Indian economy.

Components of Economic Capital and O&M Cost

Reduction in Vehicles Due to Metro (Phases I & II)

Benefit from Reduced Vehicles

• The economic benefits from the reduced number of vehicles on Delhi roads due to the Metro could be identified as the following:

• Savings in Foreign Exchange due to reduced Fuel Consumption • Reduction in Pollution • Savings in Time for all passengers using Metro and Roads.• Savings in Accidents.• Savings in Vehicle Operating Cost (VOC) due to decongestion

for residual traffic.• Savings in Capital and Operating cost of diverted vehicles .• Savings in the cost of Road Infrastructure.

Benefit from Reduced Fuel Consumption

• The total savings in fuel due to decongestion is the product of residual traffic, fuel savings norms given by the above formula, annual run and a conversion factor (cc to litre) in a RITES study.

• The fuel savings during the year 2011-12 due to the decongestion effect for cars and buses are 20,714,391 Litre and 38,510,952 Litre, respectively. The RITES study has assumed that the fuel savings of two-wheelers are roughly one-third of cars, which becomes 6,835,749 Litre.

Reduction in Pollution Load due to decongestion and its Monetary Value for the Year 2011-12 with the Assumption that All Vehicles Use EURO II Technology without Metro

Savings due to reduction in Pollution

Net Benefits to the Government

• What it gets:– Fare box revenues– Revenue from property development– Advertisements– Tax Revenues from goods or services bought for the

metro– Saved cost of road infrastructure– Saved cost of operating buses

Net Benefits to the Government

• What it loses– Heavy revenue losses due to displaced

buses(Estimated 2400 buses will be displaced by 2012).– Investment and operation and maintenance of the

metro.

The net benefits for the government during the year 2011-12 are estimated as Rs. 31760 million at 2004 prices.

Net Benefit to the Passenger

Affects to the Private Transporter

Net Benefit to the unskilled labour

• Benefit to the labour is the difference of working at DMRC and the opportunity cost

• Assuming that the unskilled labour cost constitutes 10 percent of investment cost and 5 percent of operation and maintenance cost of the Metro, the benefit to unskilled labour is estimated as Rs. 316.4 million during the year 2011-12.

Net Benefits to the General Public

• What it gets:– Social premium on investment and foreign exchange – Environmental benefits of reduced pollution due to

the Metro. – Social Premium: reduced fossil fuel consumption due to a

change in the mode of transport .

– The net benefits to the general public from the Metro arising out of the social premium on foreign exchange is estimated as Rs. 1203.3 crores during the year 2011-12.

Total Benefit

• The government, passengers, private transporters and the public get total net benefits worth Rs. 52550 million in the year 2011-12.

Environmental Impact

• A detailed Environmental Impact Assessment has been done in 1994 to minimize the negative environmental impact of the Project during the construction stage of the Project.

• For every tree cut during construction, the DMRC is planting 10 trees in advance as compensatory afforestation. Around 26000 trees have been planted at Najafgarh, Isapur and Rebla Khanpur. Through proper care 30% of trees in the alignment have been saved.

• Installation of storm water drains for disposal of wastewater, monitoring air and noise pollution, disposal of excavated materials are some of the measures taken during construction to minimize the damage to the environment and inconvenience to public.

International Certification

• The Delhi Metro has been awarded OHSAS 18001 (Occupational Health and Safety Assessment sequence 18001) by Registro Italiano Navale India Pvt. Ltd. (RINA), Genova.

• The Delhi Metro Rail Corporation (DMRC) received the ISO 14001 certificate for establishing an environmental management system making it the First Metro in the World to receive this certification at the construction stage.

First Delhi Metro Coach To Come By Air Arrives From Germany

Bibliography

• The Delhi Metro Rail Corporation has brought out a 256 page book titled " A Dream Revisited" (An Archival Journey into the making of the Delhi Metro Rail), which describes the History, Growth, New Technologies, Routes and issues which faced the Delhi Metro Project since its planning up to its implementation.

• Indian Institute of Economic Growth, Delhi University• IIT Delhi research report• IIM Lucknow case study on Delhi Metro• ICMR India.org• Wikipedia• http://www.delhimetrorail.com