Group 4 Section A

GROUP 04
Sanjeet KumarPGP/17/042
Sushant Kumar SPGP/17/053
Rahul ThanugulaPGP/17/055
Sreekanth P S
PGP/17/115
Tasleem Fathima JPGP/17/054

Contents
Introduction.................................................................................................................................................3
Reason for project initiation........................................................................................................................3
Identification of Stakeholders......................................................................................................................4
Risks involved.............................................................................................................................................5
Impact assessment.......................................................................................................................................6
Budget and Timing......................................................................................................................................6
Project management tools and methodologies used.....................................................................................6
Analysis and Recommendations..................................................................................................................6
Stakeholder analysis................................................................................................................................6
Risk analysis..........................................................................................................................................10
Recommendations on project management tools and mechanisms........................................................13
Conclusion.................................................................................................................................................13
Appendix...................................................................................................................................................14
References.................................................................................................................................................17

Introduction
For our end term project report we have selected the topic Delhi Metro vs Kochi Metro to compare the
two similar projects using various project management concepts learned in class. The reason for selecting
this topic for our report was to find how these two projects which were similar in many aspects but the
levels of success greatly vary in the end. The reasons include poor understanding of differences in
geographies, political situations and cultures. For example, the approval of Kochi Metro took almost 7
years because of local governments conflict with central government. Even after the Kochi Metro started
it couldnt reach as much pace as Delhi Metro due to geographical, climatic and cultural differences. Case
in point, the habitation in Kochi is too close with congested roads as opposed to Delhi. This was the
reason for many delays in project. It was also found that careful analysis was not carried out for payback
of both the metros. More importantly lessons havent been learnt in the case of Kochi Metro from Delhi
Metro. We will provide details of two projects and carry out an analysis using various project
management techniques.

Reason for project initiation

DELHI METRO:
Delhi Metro project was taken up by Government of India for three main reasons. First reason is to
improve the public transportation in industrially growing National Capital Region. As Delhi was
expanding in all the directions it was becoming very difficult for the existing public transport systems to
cater the needs of the people. There was a great need for rapid transport system which will carry millions
of daily commuters of Delhi and adjacent regions. Second reason was pollution caused by individual
vehicles. During the mid 1990s the population of vehicles was increasing tremendously in Delhi. Reports
suggests that the number of vehicles in Delhi is comparatively equal to vehicles in Mumbai, Chennai and
Kolkata put together. This has raised a concern regarding huge vehicular pollution that might bring if
suitable measures were not taken on time. Third reason was to implement a world class metro rail system
in Delhi which is the national capital of India. The government wanted this project to be at par with metro
systems of other cities existing at that point like Tokyo, London etc. This was primarily the reason why
Delhi Metro got more attention than Kochi Metro.
Owing to these needs, in 1995, Government of India and Great National Capital Territory of Delhi formed
Delhi Metro Rail Corporation (DMRC). Both GOI and GNCTD funded the project through equity. Dr. E
Sreedharan was appointed as Managing Director of DMRC and Project Manager in 1997. Construction
started in 1998 and the First Line of DMRC was completed within three years of construction. The new
line was inaugurated by Shri. A.B. Vajpayee, then Prime Minister of India in 2002. Currently Delhi Metro
Operates with six coloured lines and one airport express line with cumulative length of 193.2 KM. Delhi
Metro is known to be one of the most successful government projects in the post-independence period of
India.
KOCHI METRO:

The main reason for Kochi Metro was to improve the public transport in Kochi, which was the largest city
of the State Kerala. Government was also taking other measures like improving bus transportation and
also looking for the options like boat transport but they were not sufficient to improve the conditions of
transportation in Kochi. Moreover, the roads connecting Aluva and Ernakulam were becoming congested.
The reason was because of the rapid commercialization taking place in Kochi. Congestion was also
leading to frequent road accidents on Kochi roads. This demanded a fast and effective transportation. For
this reason Kerala Government had to initiate the requirement for a metro project in 2005. Any city which
exceeds the population of 2 million can initiate such proposal.
Unlike Delhi Metro, Kochi Metro was not the project which was in the interests of Central Government
and due to the political differences between Kerala Government and Central Government the project was
not approved till 2012 when another government came in to power in Kerala. By that time Dr. E.
Sreedharan was appointed as the project mentor for Kochi Metro after the success of Delhi Metro. But
there were instances where differences ascended between Dr. E. Sreedharan and the Kerala government.
Moreover the project also suffered because of climate of Kerala where rains last for five to six months.
And adding to this were labour related problems because Keralas labour laws were different compared to
the State of Delhi and also the unions are much stronger in Kerala. We will now look at the stake holders
involved in both the projects in next section and discuss about the projects in detail in subsequent
sections.

Identification of Stakeholders
Delhi Metro

The Delhi Metro Rail Corporation Ltd. (DMRC)

Central Government of India
Government of the National Capital Territory of Delhi (GNCTD)
Delhi Transport Corporation (DTC)
Governments of Uttar Pradesh & Haryana
The consortium comprising ROTEM (formerly KOROS), Mitsubishi Corporation and
Mitsubishi Electric Corporation Machine suppliers
Bharath Heavy Movers Limited (BHML), the Indian coach builders
KSHI JV and IMCC, the lead design consultants
Japan Bank for International Cooperation (JBIC)
The citizens of Delhi

Kochi Metro

Kochi Metro Rail Ltd. (KMRL)

Government of Kerala
Kochi Citizens
Agence Francaise de Developpement
Alstom Coach manufacturers

Central Government of India

The Indian Institute of Architects (IIA) - Design consultant
Era Infra Engineering (EIEL) - Construction Contractor

Delhi vs Kochi Metro Comparison and Learning

Parameters

Delhi Metro

Kochi Metro

Cost

29700 crores

3733 crores

Length

190 km

25 km

Projected Ridership
(lacs per annum)

2.76 (2006)
3.05 (2007)
3.06 (2008)

(2016-17) 3.82
(2020-21) 4.68
(2025-26) 5.39
(2030-31) 6.01

Passenger Fare

7 per passenger (avg)

7.5% above DMRC 2009 price

Operating Cost

700 cr (2009)

109 cr (projected)

The above table gives a comparison of the Kochi metro project with the Delhi metro project in terms of
the scale and budget. The most important point to be noted here is the amount of learning transferred from
the Delhi metro project to the Kochi metro project. Just looking at the budgetary and project planning
part, we observe that Delhi metro, even after 8 years in operation, still runs in losses. The forecasts for the
cash flows have failed because of the huge error in the projection of the expected ridership of the metro
service. The actual ridership for the years 2006-209 remained at 20-25% of the projected figures. This
impacts the cash flows of the project heavily and is an important leaning that should have been passed on
to the Kochi metro project. While this should have resulted in a more in-depth study for this projection
this time round, the projected figures for Kochi metro seem even more improbable on the face of it.
Kochi, being much smaller in population and much lesser distance being covered by the metro, has more
projected ridership than that of Delhi. With these projections, Kochi metro project report suggests that it
would reach breakeven in the third year itself. The revision of the projections to accommodate for the
Delhi metro observations will not only affect the projected cash flows, but also all the financial
stakeholders and the feasibility of the project in principle.

Risks involved
Both the projects are highly visible and impact the public greatly. Because they are very complex and
large in nature a number of risks affect each project. Ideally, during the planning phase all the risks have
to be accounted for and contingency plans have to be created for each of the risks.
We have categorized the risks into three parts Pre implementation risks, risks that occurs during
implementation and post implementation risks. In this section we will be discussing only those risks that
were considered by the project committee during the planning phase.
The pre implementation risks considered are

Delays in land acquisition

Obtaining government permits and approvals

Delay in financing clearances

Delay because of resistance from other bodies

The potential implementation risks identified are:

Delay in obtaining finances

Delay because of resistance from labor bodies this seems to have been considered only in the
Delhi metro case because the management of laborers was contracted out to an external agent
through the tendering process [9]

The post implementation risks identified are:

Risk of accidents during testing

Transition / handover risks

Risk of lower demand leading in increase of debt repayment time

Operational risk after rollout

Some of risks are common to all the phases and are mostly external risks not under the control of the
project team.

Economic risks
o

Rise of interest rate

Financial crisis

Increase in cost

Force majeure risks: Natural calamities

Political risk: Interference causing delays and complete closure of project

Risks due to impacts of the project on the environment

Agency Capability

Public Confidence and Support

The risks, primary risk bearer, whether the risk was considered during planning, the inferences and
comments are summarized in the Table 1 of Appendix.

Impact assessment
The impacts of these large scale projects affect the landscape, environment and society to a large extent.
The most important impacts are as follows
Change of Land Use, Loss of trees, Impact on Historical/Cultural monuments, Soil erosion, pollution and
health risk at construction site, Traffic Diversions, Risk to existing Buildings, Impact on Water Quality,
Oil Pollution, Noise and Vibration, Accidental Hazards, Water Supply problems, Metro Station Refuse
and Visual Impacts. The positive impacts are Traffic congestion reduction, Quick service and safety, less
fuel consumption, Employment opportunities and Reduction in air pollution
The extent of the impact depends on the local conditions hence; some of the impacts affect the Kochi area
more than the Delhi area. The differences and the reasons for the differences of the impact are
summarized in Table 2 of Appendix.

Budget and Timing

Project management tools and methodologies used
Analysis and Recommendations
Stakeholder analysis

Delhi Metro
Stakeholder

Roles and priorities

The Delhi Metro Rail Corporation Ltd.

Successful completion of the project with

(DMRC)

budget, scope and time constraints

Central Government of India

Urban transportation development in Metro

cities

Government

of

the

National

Territory of Delhi (GNCTD)

Capital

Urban transportation development of the union

territory; Land allotment with minimum impact
on citizens; Minimum environmental impact

Delhi Transport Corporation (DTC)

Newer routes to metro station and reduced

traffic congestion and peak load

Governments of Uttar Pradesh & Haryana

Transportation development; Land allotment;

Minimum environmental impact

The

consortium

comprising

ROTEM

Timely availability of material and equipment

(formerly KOROS), Mitsubishi Corporation

and Mitsubishi Electric Corporation
Machine suppliers
Bharath Heavy Movers Limited (BHML),

Creating coaches devoid of technical hassles

the Indian coach builders

KSHI JV and IMCC, the lead design

Minimum design related issues

consultants
Japan Bank for International Cooperation

Return of the loan amount within the time

(JBIC)

period

The citizens of Delhi

Hassle

free

transportation

system;

acquisition related problems; pollution

Land

Kochi Metro
Stakeholder

Roles and Priorities

Kochi Metro Rail Ltd. (KMRL)

Successful completion of the project with budget,

scope and time constraints

Government of Kerala

Urban transportation development of the Kochi; Land

allotment

with

minimum

impact

on

citizens;

Minimum environmental impact

Kochi Citizens

Hassle free transportation system; Land acquisition

related problems; pollution

Agence Francaise de Developpement

Return of the loan amount within the time period

Alstom Coach manufacturers

Creating coaches devoid of technical hassles

Central Government of India

Urban transportation development in Metro cities

The Indian Institute of Architects (IIA) -

Minimum design related issues; Establish IIA as a

Design consultant

design consultant

Era

Infra

Engineering

Construction Contractor

(EIEL)

Construction of project without any delays or

overshooting the budget

Risk analysis

In the previous sections we have seen the risks that have been considered during the planning phase.
Below are some of the risks that should also have been considered to better manage the project:

Delay in choosing who is going to execute and forming the project team
This is important because when DMRC was selected for implementing the Delhi Metro
there was no issue. However, in the case of Kochi Metro case many members of the
KMRL (Kochi Metro Rail Ltd.) and other ministers opposed the move to award the

project to DMRC and handing the project to Dr. E. Sreedharan stating that it is too much
concentration of power with a single person. This should have been anticipated and
accounted in the risks considered during planning.

Delays because of tendering and choosing contractors

There is always a delay while tendering and choosing contractors in such big projects
because the decisions are not just based on low cost but also quality, available capacity
and future perspective of the chosen contractors. In the Delhi metro case the government
tendering process was carried on which came with the expected delay. However, in the
case of Kochi metro additional complexity was encountered because E. Sreedharan
wanted to bypass the normal tendering process for some of the requirements because he
thought that the same contractors as used in the case of Delhi Metro project can be used
to avoid delays. This caused internal debate and turmoil causing delay in the project.
Additionally the tension between KMRL and DMRC caused delays in other tendering
processes.

Supplier risk delays and quality conformance

It is not directly evident whether this risk was considered in the case of Delhi Metro and
Kochi metro. But, the RFP for Independent Quality and Safety Consultant issued by
DMRC for Kochi metro indicates that they could have hired a contractor to check the
quality of the supplied materials to ensure overall quality. It is unclear whether supplier

delays were accounted for during planning.

Material risk quantity and quality variance
This risk causes delay due to the difference between the expected quantity and quality
requirement and actual quantity and quality requirement. The same RFP s above can be
used to tell that quality risk was accounted for but quantity risk.

Delay because of resistance from labor bodies

In the case of Delhi metro there was a RFP for independent labour management service
provider. However, in the case of Kochi there was no such tender. Also, the
unpreparedness of the DMRC and KMRL to deal with the labor turmoil indicate that they
have at worst ignored and at best underestimated this risk. Some of the Labor turmoil
caused as much delay as 45 days and required intervention from the national labor
department and related authorities.

Delay and rework risk due to weather

Metro work has to be completely stopped of slowed down drastically during the monsoon
season. The monsoon in Delhi lasts only from July to Mid September whereas in Kochi it
lasts from June to October end and in some areas till November indicating that much
more delay should have been expected in the case of Kochi metro than the Delhi metro.
This does not seem to have been accounted for from the statements made the project team
who told that they would complete the first phase of the project by 2015. Also Kochi area
is more prone to cyclones which cause further delay.

Delay due to public agitation and resistance from other bodies

In the case of Kochi metro project the roads are very narrow causing much more traffic
diversion and congestion problems than in the case of Delhi metro project. This caused
more public agitation in Kochi. According to a news article by The Hindu - Activists of
CPI (M) and others blocked metro work sites in Kaloor on Monday, May 6 2014,
protesting against the inordinate delay by the State government, the Kochi Metro Rail
Limited (KMRL) and the district administration in widening narrow roads along the
metro alignment [8]. The protesting groups demanded for better and wider roads. This
would obviously cause delay in the ongoing metro project in Kochi but this risk does not
seem to have been anticipated and accounted for during the planning.
Even though the same organization DMRC (Delhi Metro Rail Corporation) had been
responsible for implementing both the projects under the supervision of Dr. E. Sreedharan
the risks probability and the consequences differ because of local factors.

The risk probability and consequence matrix is given in the Exhibit 1 of Appendix. For the risk IDs refer
the Table 1 of Appendix.
Some of the risks are in the different zones for the two projects. These are:
Risk ID 1: Delays in land acquisition
Only 0.33 hectares of DDA land had to be acquired for Delhi Metro whereas 16 hectares of land use is
changed for Kochi Metro. Even more private land is expected to be acquired as the project progresses in
the case of Kochi metro.
Risk ID 5: Delay in choosing who is going to execute and forming the project team

The internal tension between DMRC and KMRL cause delay. This problem was there in Delhi Metro
project.
Risk ID 6: Delays because of tendering and choosing contractors
The difference of opinion between E. Sreedharan of DMRC and other members and members of KMRL
caused the delay whereas; in the case of Delhi Metro no such problem was there.
Risk ID 10: Delay because of resistance from labor bodies
This is a red zone risk in case of Kochi metro project where as an yellow zone risk in Delhi metro project.
Risk ID 11: Delay and rework risk due to weather
Kochi metro project is definitely likely to be affected and there is a high consequence hence a red zone
risk in Kochi metro project but yellow zone risk in Delhi Metro project.
Risk ID 12: Delay due to public agitation and resistance from other bodies
Expected in the case of Kochi metro because of environmental and traffic congestion impact during
implementation but low impact. Green risk in Delhi because mostly barren lands were affected.

Recommendations on project management tools and mechanisms

Conclusion

Appendix
Table 1:

Table 2 Impact assessment

Note:

Kochi

Metro

or

Kochi

Area,

D-

Delhi

Metro

or

Delhi

Area

Exhibit 1

Consequence
Delhi Metro

Consequence

Likelihood

Likelihood

Kochi Metro

References
http://www.kochousephchittilappilly.com/view-blog/291/KOCHI_METRO-_The_Way_Forward/
http://post.jagran.com/search/kochi-metro-rail-project
http://www.mathrubhumi.com/english/news/kerala/labour-issues-kochi-metro-md-sent-letter-to-labourcommissioner-138939.html
http://timesofindia.indiatimes.com/city/kochi/Under-fire-from-public-Kochi-Metro-gets-into-theact/articleshow/40246754.cms
http://www.railnews.co.in/author/rail/page/122/
[1]http://www.newindianexpress.com/states/kerala/LA-Confident-KMRL-gets-Govt-Nod-for-DirectAcquisition/2014/04/30/article2196587.ece
[2]

http://articles.economictimes.indiatimes.com/2012-10-28/news/34766810_1_e-sreedharan-kochi-

metro-elattuvalapil-sreedharan
[3] http://www.updatekerala.com/opinion/interview/tom-jose-kochi-metro/
[4]

http://www.mathrubhumi.com/english/news/kerala/kochi-metro-centre-state-denied-dmrc-s-demand-

118531.html
[5]

http://www.mathrubhumi.com/english/news/kerala/kochi-metro-centre-state-denied-dmrc-s-demand-

118531.html
[5]

http://www.thehindu.com/news/cities/Kochi/dmrc-to-meet-prospective-coach-suppliers-for-kochi-

metro-today/article5861645.ece
[6] http://kochimetro.org/wp-content/uploads/2013/08/RFP_iqsm-KMR-final-version.pdf
[7]

http://timesofindia.indiatimes.com/city/kochi/Labour-issues-halt-work-at-Kochi-Metros-casting-

yard/articleshow/27872853.cms
[7] http://timesofindia.indiatimes.com/city/kochi/Protests-derail-Metro-45-work-days-Rs-18-crore-lost-inprocess/articleshow/29516458.cms

[8]

http://www.thehindu.com/todays-paper/tp-national/tp-kerala/protest-against-traffic-snarls-along-

kochi-metro-alignment/article5980968.ece
[9] www.delhimetrorail.com/otherdocuments/474/final_tender_doc_lms.pdf