Delhi Metro Phase 1
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PM Project
Case Study on The Delhi Metro Project Phase I
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The Delhi Metro Project: Saga of an Effective Project Management
Introduction:
“Everyone who has traveled by the Delhi Metro wants one in his or her city. Today, there is a national resurgence in public interest in urban public transport”
Dr. Manmohan Singh, Prime Minister of India, in 2006
The need for a reliable public transportation was felt in Delhi for a long time. The first step to build a metro system in city was taken in the early 1990s. In 1995, The Government of India (GoI) and The Government of the National Capital Territory of Delhi (GNCTD), a 50:50 joint venture, formed the Delhi Metro Rail Corporation Ltd (DMRC) under the Companies Act to construct the Delhi Metro. The Delhi Metro Project is:
Second project in country after Kolkata Metro: 1984.
In 1995, RITES (Rail India Technical & Economic Services Limited) submitted a detailed project report for Phase I of the Delhi Metro Project.
The DMRC was to complete Phase I of the project within 10 years, i.e. by the end of 2005.
E. Sreedharan was appointed Managing Director (MD) of the DMRC and project manager for Phase I of the project in November 1997.
Work on line 1 of Phase 1 started in October 1998.
Total land needed was 340 hectares (58% government, 39% private agriculture and 3% private urban land).
Final cost of project was approximately Rs 99 billion with Rs 7 billion saving.
Challenges:
Delhi Metro Project was going to be the biggest urban invention in India since independence in 1947.
Project has to be executed in a very difficult urban environment.
Being the capital city, all actions were under close scrutiny of VIPs.
Project implementation period got compressed to 7 years from 10 years, since project started late.
Low Financial IRR (3%) prompted second thoughts on the project
Estimated loss of Rs. 5 million if one day is lost.
Expertise and
PM Project
Case Study on The Delhi Metro Project Phase I
[Type the author name]
[Pick the date]
The Delhi Metro Project: Saga of an Effective Project Management
Introduction:
“Everyone who has traveled by the Delhi Metro wants one in his or her city. Today, there is a national resurgence in public interest in urban public transport”
Dr. Manmohan Singh, Prime Minister of India, in 2006
The need for a reliable public transportation was felt in Delhi for a long time. The first step to build a metro system in city was taken in the early 1990s. In 1995, The Government of India (GoI) and The Government of the National Capital Territory of Delhi (GNCTD), a 50:50 joint venture, formed the Delhi Metro Rail Corporation Ltd (DMRC) under the Companies Act to construct the Delhi Metro. The Delhi Metro Project is:
Second project in country after Kolkata Metro: 1984.
In 1995, RITES (Rail India Technical & Economic Services Limited) submitted a detailed project report for Phase I of the Delhi Metro Project.
The DMRC was to complete Phase I of the project within 10 years, i.e. by the end of 2005.
E. Sreedharan was appointed Managing Director (MD) of the DMRC and project manager for Phase I of the project in November 1997.
Work on line 1 of Phase 1 started in October 1998.
Total land needed was 340 hectares (58% government, 39% private agriculture and 3% private urban land).
Final cost of project was approximately Rs 99 billion with Rs 7 billion saving.
Challenges:
Delhi Metro Project was going to be the biggest urban invention in India since independence in 1947.
Project has to be executed in a very difficult urban environment.
Being the capital city, all actions were under close scrutiny of VIPs.
Project implementation period got compressed to 7 years from 10 years, since project started late.
Low Financial IRR (3%) prompted second thoughts on the project
Estimated loss of Rs. 5 million if one day is lost.
Expertise and
References: http://pmi.org.in/manageindia/volume3/issue04/cover.story.html http://www.icmrindia.org/casestudies/catalogue.html Project Finance & Infrastructure Finance, Apr2010, p32-32. 1p Business Today, 8/24/2008, Vol. 17 Issue 17, p192-192, 1/4p. 1 Color Photograph