2/6/2021 MANAGEMENT

OF THE DELHI
METRO RAIL
PROJECT
PROJECT MANAGEMENT
ASSIGNMENT

SUBMITTED BY: GROUP - 15

SANSKRITI GOYAL – 120041
SHANKUL ANAND – 120042
SHANTANU RAJ – 120043
SHIKHA SURBHI – 120044
SAPNA YADAV - 120099
 LIST OF TABLES

1. Work Breakdown Structures and Task Time Estimates for Delhi Metro Project 6

2. Risk Management Plan and Risk Register for Delhi Metro Rail Project 8

3. Estimates and Final Budgets for Delhi Metro Phases 9

4. Estimates of Costs and Revenues of Delhi Metro 10

 LIST OF ABBREVIATIONS

1. DMRC - Delhi Metro Rail Corporation

2. GoI - Government of India

3. GNCTD - Government of National Capital Territory of Delhi

4. CPCC - Central Pollution Control Board

5. MoE&F - Ministry of Environment & Forests, Govt. of India

6. ASI - Archaeological Survey of India

7. JBIC - Japan Bank for International Corporation

8. INR- Indian Rupees

 CONTENTS
1. Executive Summary 1

2. Introduction 2

3. Brief Background on the project 3

4. Management of Delhi Metro Rail Project 4

I. The Project Life Cycle 4

II. Planning and Scope of the Delhi Metro Rail Project 4

III. Stakeholder Management of the Delhi Metro Rail Project 6

IV. Risk Management for the Delhi Metro Rail Project 7

V. Budgets and Costing of the Delhi Metro Rail Project 9

VI. Project Teams and Conflict 10

VII. Project Review and Evaluation 10

5. Conclusion 11

6. Recommendations 12

8. Appendix-I 14-16
 1

EXECUTIVE SUMMARY
The report summarizes the project management techniques initiated and applied during the execution of
the Delhi Metro Rail Project by the assigned organizations. This report gives a brief explanation on the
initiation, planning and covering the costs of the budget for the execution of the project. The report also
describes what roles have been played by the organizations’ involved in the implementation of the project
with their outcomes and conclusions. The Delhi Metro Rail Project has proved to be a great success in the
recent times as it turned out to be a boon for the people of Delhi city.
 2

INTRODUCTION
Since 1991, The Indian economy has witnessed a rapid expansion and growth with the advent of
economic liberalization in India. This led to the initiation of major infrastructure projects in India. With
this, cities began to grow at a brisk pace as they provided a major share to the economy with people
migrating from remote villages and towns in India looking for employment. Similarly, the city of Delhi
also witnessed the same economic growth. With this, the population of Delhi also started increasing at an
exponential rate. The increase in population of Delhi significantly led to the increase in number of
vehicles running on the streets. The traffic movement witnessed slow pace due to increased number of
vehicles leading to mass congestion. This congestion has resulted into people leaving their homes nearly
3 to 4 hours prior to the reporting time at their respective places in order to reach on time. The availability
of public transport services like buses, taxis and auto-rickshaws have not matched to the ever-increasing
levels of demands of the general public for their convenience in travelling to their workplaces.

The traffic on the roads of Delhi sees a heterogeneous mix of auto-rickshaws, private cars, buses,
motorcycles, scooters, etc. pushing against each other and has resulted into a very chaotic situation of the
roads leading to increase in accidents which sometimes prove to be fatal, wastage of fuel by stop-start
progression of vehicles and even in environmental pollution that has caused deterioration in quality of air
in Delhi.

In view of these ever-increasing demands for transportation facilities by the people of Delhi, The
Government of India (GoI) and the Government of National Capital Territory of Delhi (GNCTD) set-up a
joint-venture with equal partnership named as Delhi Metro Corporation Ltd., (DMRC) in order to initiate
and execute a potential world-class, passenger-friendly and eco-friendly Mass-Rapid-Transit System
known as the Delhi Metro Rail Project.

The Delhi Metro Rail Project is the first of the mass rapid transit systems to be initiated and executed in
India with modern-day technology and world-class features. It is designed to be a potential self-sufficient
transport system and more importantly an alternative means of transport for the people of Delhi in order
to reduce traffic congestion on the streets.
 3

BACKGROUND ON DELHI METRO

RAIL PROJECT
The increasing number of vehicles on the streets of Delhi has led to long-term traffic jams causing slow
movement of traffic. So the concept of mass rapid transit system was initiated to address and solve the
woes of urban traffic on the streets of Delhi known as Delhi Metro Rail Project. The Delhi Metro Rail
Project is one of the world-class Mass Rapid Transit (MRT) systems in modern times. The Delhi Metro
Rail Project is one of the busiest mass rapid transit systems in the recent times matching to the standards
of busy mass rapid transit systems set by the New York “Subway”, the London “Tube”, etc.

The Delhi Metro Rail Corporation Ltd, (DMRC) was the organization that was assigned for the planning,
implementation and delivery of the project. It was set up as a joint venture between Government of India
(GoI) and Government of National Capital Territory of Delhi (GNCTD). DMRC did a background study
in order to address the woes of Delhi’s urban traffic and examined the viability of various mass rapid
transit systems around the world in order to execute the project.

Under the competent leadership of E. Sreedharan, M.D., DMRC, the construction of the metro began in
1998 and within a span of four years, the construction of the first route of Delhi Metro got completed in
record time and the operations had commenced by the end of 2002.

The Delhi Metro Rail Project is planned to be built in phases not only covering the city of Delhi but also
connecting nearby cities of Gurgaon, Noida, Ghaziabad and Faridabad with metro trains within a span of
20 years with each phase was projected to be completed in 5 years. The completion of one phase was
designed to be set as a benchmark for the commencement of targeting the next phase.
 4

MANAGEMENT OF DELHI METRO

RAIL PROJECT
Project activities are performed and enacted by an organization order to achieve its planned objectives.
Projects have a definite beginning start and finish time periods which makes it different from operations
which are repetitive. Projects are defined as activities with a predefined start and end time in order to
deliver a distinctive outcome. Project management involves a results-focused management style
depending upon building strategic partnerships among heterogeneous mix of people.

I. The Project Life Cycle

Since the Delhi Metro Rail Project was a construction-based project, the project life-cycle is represented
by the following (Project Management Institute 2000: 14)-

i. Feasibility- project formulation, feasibility studies, and strategy design and approval. A go or no-
go decision is made at the end of this phase.
ii. Planning and Design- base design, cost and schedule, contract terms and conditions, and detailed
planning. Major contracts are let at the end of this phase.
iii. Construction- manufacturing, delivery, civil works, installation, and testing. The facility is
substantially complete at the end of this phase.
iv. Turnover and Start-up- final testing and maintenance. The facility is in full operation at the end of
this phase.

II. Planning and Scope of the Delhi Metro Rail Project

No project starts without a definite plan. Planning the project is a vital part in project management as it
sets a benchmark for setting up the executional methods for the project. It points out the objectives of
what the project will achieve when accomplished and how the project will be completed. Planning
process is a mandatory process in project management as poorly planned projects leads to catastrophic
outcomes such as projects getting stalled for longer periods of time, projects getting officially cancelled
midway after initiation, etc.

There are four basic reasons for project planning which as follows -
i. To eliminate or reduce uncertainty.
ii. To improve efficiency of the operation.
iii. To obtain a better understanding of the objectives.
iv. To provide a basis for monitoring and controlling work.
Many projects in India are put on hold or remain stalled for years due to corrupt political influence,
nepotistic and obsequious work culture within the organization, mismanagement of resources and
exaggerated costs due to high level embezzlement at various stages of project management leading to
scandalous outcomes. Similarly, to execute a state-of-the-art mass rapid transit system in the city of
Delhi, extensive planning was required by the DMRC keeping in view to deny any chance of corruption
or misallocation of funds to prosper at any stage of project management. The DMRC had their objectives
well set-out to address the issues regarding the implementation of the project.
The DMRC planned the Delhi Metro Rail Project in order to meet the following objectives:-

i. To deliver a state-of-the-art mass rapid transit system in the city of Delhi for easy commuting to
places which are inaccessible while travelling by roads.
ii. Reduction in number of usage of vehicles for short trips.
iii. Convenience in movement of traffic on busy streets.
The work breakdown structures and task time estimates for the Delhi Metro Rail Project are described by
the following table (Refer next page)-
 6

Task Name Start Date Finish Date Duration

i. Preparation of 05-Jun-1989 08-Jul-1995 2224 days
feasibility report by
DMRC and approval
of project from the
government.
ii. Bidding and election 20-Aug-1995 12-Oct-1996 419 days
of companies for
construction of the
metro routes.

iii. Bidding and 13-Dec-1996 15-Feb-1997 64 days

nomination of
companies for supply
of rolling stock.

iv. Bidding of funding 10-Mar-1997 25-Apr-1998 411 days

agencies and budget-
set-up with allocation
of resources.
v. Construction and 17-Aug-1998 19-May-2005 2467 days
opening of metro
routes of Phase I
vi. Testing and inspection 24-Sep-2001 16-Jan-2005 1210 days
of trains and stations
along the metro routes
of Phase I
vii. Hiring and training of 18-Jul-2000 14-Sep-2004 1519 days
staff for Phase I metro
routes
viii. Construction and 22-Aug-2002 30-Dec-2009 2687 days
opening of metro
routes of Phase II
ix. Testing and inspection 30-Jan-2006 20-Jun-2009 1237 days
of trains and stations
along the metro routes
of Phase II
x. Hiring and training of 15-Mar-2004 27-Oct-2008 1687 days
staff for Phase II
metro routes
xi. Construction and 21-Aug-2007 29-Nov-2021 5214 days
opening of metro
routes of Phase III &
Phase IV.
xii. Testing and inspection 19-May-2012 22-July-2021 3351 days
of trains and stations
along the metro routes
of Phase III & IV.
xiii. Hiring and training of 5-Oct-2008 8-Apr-2020 4203 days
staff for Phase III& IV
metro routes.

Table 1 - Work Breakdown Structures and Task Time Estimates for Delhi Metro Project

III. Stakeholder Management of the Delhi Metro Rail Project

The people who influence and collaborate into the activity of project management are known as
 7

Stakeholders. The process of classifying, analyzing and managing the influences of the stakeholders is
known as stakeholder management.

In the case of Delhi Metro Rail Project, there were many stakeholders that were to be addressed by the
DMRC. The stakeholders were the construction companies who collaborated as contractors, funding
agencies, governments and the general public. On consultations the contractors, the DMRC ensured that
the problems at the project-affected roads would be solved by construction of new roads and widening of
existing roads so that there would be smooth movement of traffic during construction. The DMRC also
ensured that the mandatory clearances and permits required from the concerned organizations and bodies
would be received without any hassles and through effective communication so that it does not face any
legal issues by them. DMRC set a high safety standards so that the extent of damages would prove less
fatal in case of accidents.

Engineering projects might bring a large-scale impact on various environmental components like air,
water, land, ecology, etc. In view of that the project execution does not hamper the environment of Delhi,
the DMRC assessed the impacts of construction with updated soil tests, plantation of trees near to the
metro stations, reducing noise, air and water pollution levels and they submitted timely reports to the
Central Pollution Control Board (CPCC) and the Ministry of Environment
& Forests (MoE&F), Govt. of India. The DMRC also gave assurance to the Archaeological Survey of
India (ASI) that the construction work through the heritage monuments of Delhi like the India Gate,
Qutub Minar, etc. would not be affected.

Since the Delhi Metro Rail Project was constructed with the funds allocated by the Japan Bank for
International Corporation (JBIC) since it was the main funding agency. The DMRC maintained a good
collaborative partnership with the officials of JBIC as they invited them for inaugurating various metro
sections as a friendly gesture. The project was completed within the budget with effective management of
resources.

IV. Risk Management for the Delhi Metro Rail Project

No project goes underway without risk assessment as they are inevitable procedures in the process of
project management. Risk assessment involves identifying the risk, responding and taking mitigation
steps to negate or reduce the likelihood of the risks to occur again. Managing risks is of utmost
importance as occurrence of risks hamper the implementation of the project and thereby leads to
cancellation or failure of projects. The DMRC processed the following Risk Management Plan and Risk
Register for assessing and overcoming the imminent risks with indicative colors Red as High Level Risk,
Yellow as Medium Level Risk and Green as Low Level Risk (Refer Next Page)-
 8

Risk Likelihood Consequen Risk Risk Mitigation Likelihood Consequence Risk

of Risk ce Level Measures Need To of Risk of Risk After Level
of Risk be Undertaken After Mitigation
Mitigation
1) Delay in approval Low High High 1) To make the Low Low Low
of project report. officials of
Government of
India understand
and review the
project report
carefully.
2) Conflict with the Low High High 1) Assuring the Low Low Low
foreign infrastructure companies that their
companies. investment is secure.
3) Disputes during High High High 1) Paying the Low Medium Medium
Land Acquisition. concerned
organizations for
using the land on
lease.
2) Paying the
government the
revenues for the
land.
4) Disasters like Low High High 1) Studying the Low Medium Medium
floods, earthquake, seismic and flood
etc. occurrence reports
and taking
preventive steps.
5) Delay in allocation Low High High 1) Timely paying Low Medium Medium
of funds. the shares and
interests of the
concerned
organizations.
6) Technical snag Low Medium Medium 1) Periodic Low Low Low
during operations. inspection of trains,
electronic
equipment,
overhead wires and
tracks.
7) Unforeseen Low High High 1) Stalling Low Low Low
circumstances such as construction work
accidents during during heavy rains.
construction, labour 2) Negotiating with
agitation, heavy rains the labour demands
or terror attacks. 3) Having insurance
cover for paying up
for damages by
accidents.
4) Deploying top-
level security
personnel at metro-
related places
8) Environmental Medium High High 1) Publishing and Low Medium Medium
Hazards during review of the
construction. environmental
impact assessment
reports and taking
environment-
friendly steps

Table 2 - Risk Management Plan and Risk Register for Delhi Metro Rail Project
 9
V. Budgets and Costing of the Delhi Metro Rail Project
Financing is the prerequisite for the projects without which projects do not proceed further. The nature and
the amount of finance required varies significantly throughout different stages of projects.

Since the Delhi Metro Rail Project is a joint-venture, it was financed by the following means:-

i. 32% cost of the project were financed by the Government of India (GoI) and Government of
National Capital Territory of Delhi (GNCTD).

ii. 54% cost of the project were financed through the loans from Japan Bank for International
Corporation (JBIC) with a signed Memorandum of Understanding (MoU) that the loan borrowed
would be repaid with variable interest rates regarding the market within a span of 35 years.

iii. The rest 7% were from loans exempted of interests for land acquisition and another 7% through
development of property.

iv. Reliance Infra paid 50% of the funds for construction of metro line through Delhi Airport through
public private partnership model.

The estimated and final budgets for the Delhi Metro Rail Project are stated below-

Phase Length (km) Estimated Final Budget(INR) % Increase

Budget(INR)
I (1998-2005) 88.5 69 billion 102 billion 47.82 %
II(2002-2009) 124.7 120 billion 200 billion 66.67 %
III & IV(2007-2021) 411.6 220 billion 390 billion 77.27 %

Table 3 - Estimates and Final Budgets for Delhi Metro Phases

 11

CONCLUSION
The Delhi Metro Rail Project proved a greatly successful public-sector project undertaken in India
excluding the influence and views of government officials and bureaucrats on decision-making and
implementation techniques. The project delivered a new and comfortable means of transport to the people
of Delhi with achievement of its objectives in reducing traffic congestions on the roads and bringing
down pollution levels. Though the final budget costs of the phases escalated from the original budget
costs, the DMRC ensured that it would adhere to achieve its predetermined objectives on time and
meeting the planned targets in order to arrest cost escalation. Though project management is about
continuous improvement and learning from mistakes, the Delhi Metro Rail Project proved that one
organization comprising of fully dedicated and committed members can manage such a highly labour-
intensive project with proper decision making and effective management and monitoring techniques. A
competent and firm project manager can lead a team of hundreds of individuals through a dynamic and
results-oriented leadership.
 12

RECOMMENDATIONS
From the above report, it is recommended to abide by following steps for effective and efficient project
management:-

1. Engineering projects should be managed on public-sector basis and not on private-sector basis
which shifts priority towards earning pecuniary profits rather than development.

2. For highly volatile markets like India, etc. covers for financial risks and securities is of utmost
importance as unexpected market breakdown can lead to tremendous financial loss thereby
contributing to failure of project.

3. Human Resource Management becomes a top-most priority in developing countries as it takes a

lot of time to spread awareness and impart knowledge to the local people as they lack knowledge
and competency in project management.

4. Proper labour-training programmes need to initiated and channelized so that the labour force can
contribute efficiently towards successful project management.

5. The organization behind project management should recruit people on the basis of credibility and
competency.

6. A set of rules and ethics should be made mandatory to be followed at every stage of project
management and violating to which invite severe penalties like termination from service, etc.

7. In developing countries, the stakeholders have a critical view on large-scale projects so the
organization behind the implementation of the project require effective negotiation skills to
please the stakeholders.
 13

APPENDIX-I
Task Name Start Date Finish Date Duration
i. Preparation of 05-Jun-1989 08-Jul-1995 2224 days
feasibility report by
DMRC and approval
of project from the
government.
ii. Bidding and 20-Aug-1995 12-Oct-1996 419 days
nomination of
companies for
construction of the
metro routes.
iii. Bidding and 13-Dec-1996 15-Feb-1997 64 days
nomination of
companies for supply
of rolling stock.
iv. Bidding of funding 10-Mar-1997 25-Apr-1998 411 days
agencies and budget-
set-up with allocation
of resources.
v. Construction and 17-Aug-1998 19-May-2005 2467 days
opening of metro
routes of Phase I
vi. Testing and inspection 24-Sep-2001 16-Jan-2005 1210 days
of trains and stations
along the metro routes
of Phase I
vii. Hiring and training of 18-Jul-2000 14-Sep-2004 1519 days
staff for Phase I metro
routes
viii. Construction and 22-Aug-2002 30-Dec-2009 2687 days
opening of metro
routes of Phase II
ix. Testing and inspection 30-Jan-2006 20-Jun-2009 1237 days
of trains and stations
along the metro routes
of Phase II
x. Hiring and training of 15-Mar-2004 27-Oct-2008 1687 days
staff for Phase II
metro routes
xi. Construction and 21-Aug-2007 29-Nov-2021 5214 days
opening of metro
routes of Phase III &
Phase IV.
xii. Testing and inspection 19-May-2012 22-July-2021 3351 days
of trains and stations
along the metro routes
of Phase III & IV.
xiii. Hiring and training of 5-Oct-2008 8-Apr-2020 4203 days
staff for Phase III& IV
metro routes.

Table 1 - Work Breakdown Structures and Task Time Estimates for Delhi Metro Project