Reserach study on Delhi Metro project

SAKSHI
UCD SMURFIT BUSINESS SCHOOL
Ride Through Delhi Metro Using
Project Management Tools

i
Declaration
“I the undersigned confirm that the work submitted here is entirely my own work,
and that any work of others which is included has been properly referenced and
acknowledged according to the academic guidelines”.
Name: Sakshi Student Number:

ii
Acknowledgement
This research has been done and written for the partial fulfillment of the
requirements of MASTERS’ IN MANAGEMENT degree. This research project was
undertaken in the Project Management module. I am thankful to Joe Houghton,
module Lecturer who has been very helpful in imparting clear directions and
learnings through his expertise.

iii
Contents
Abbreviations................................................................................................. v
Executive Summary....................................................................................... 1
Introduction.................................................................................................... 2
Management Structure................................................................................ 3
Planning .......................................................................................................... 4
Need for the project.................................................................................. 4
Mission of the Delhi Metro......................................................................... 5
Risks confronted............................................................................................. 6
Broad Gauge over Standard Gauge- Design ...................................... 6
Land Acquisition ......................................................................................... 6
Underground construction issues ............................................................ 7
Signal problems .......................................................................................... 7
SWOT Analysis................................................................................................. 8
Finance- Role of JICA (formerly known as JBIC) ..................................... 9
Latest Technology....................................................................................... 11
Negative Externalities of Delhi Metro....................................................... 11
Leadership .................................................................................................... 12
Stakeholder .................................................................................................. 14
Conclusion.................................................................................................... 16
References.................................................................................................... 17
Appendix ...................................................................................................... 19

iv
List of Tables
Table 1 Timeline for the four phases of Delhi Metro construction ........ 3
Table 2 Delhi Metro's Phase-Wise Anatomy ........................................... 10
Table 3 Stakeholder Mapping................................................................... 15
Table 4 Incidents Reported ....................................................................... 19
List of Figures
Figure 1 Management Structure in DMRC................................................ 4
Figure 2 Funding Pattern .............................................................................. 9
Figure 3 Stakeholder Analysis .................................................................... 14

v
Abbreviations
ATO Automatic Train Operation
ATP Automatic Train Protection
ATS Automatic Train Signaling
CATC Comprising Automatic Train Operation
CBA Cost Benefit Analysis
CEO Chief Executive Officer
Cr Crore
CRRI Central Road Research Institute
DDA Delhi Development Authority
DMRC Delhi Metro Rail Corporation
DPR Detailed Project Report
Dr. Doctor
GOI Government of India
GNCTD Government of National Capital Territory of Delhi
IES Indian Engineering Service
JIBC Japan Bank of International Cooperation
JICA Japan International Cooperation Agency
JV Joint Venture
Km Kilometer
MRTS Mass Rapid Transport System
MRT Mass Rapid Transport
NATM New Austrian Tunneling Method
NGOs Non-Government Organizations
OHE Over Head electrical
PAPs Project Affected Persons
RITES Rail India Technical and Economic Service
Rs Indian rupee
RTI Right to Information
TOI Times of India
TBM Tunnel Boring Machine
TETRA Terrestrial Trunk Radio

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Executive Summary
The National Capital Territory of Delhi, a mega city and one of the densely
populated cities. The growing demand for public transport posed serious effects on
urban ecosystems, especially due to the increased atmospheric pollution and
changes in land use patterns. Therefore, a need to come up a mass transport
solution for the public was a necessity. Infrastructure projects have been easy to
construct and implement due to various challenges involved including land,
technical etc. These were overcome by appointing Doctor E. Sreedharan as the first
Project Manager, seeing his successful role in leading the Konkan railway of India.
The Delhi Metro project built with state-of-the-art engineering techniques, will run
on the world's latest technology connecting citizens and distances. Dr. Sreedharan
gave equal emphasis on safety and cleanliness of metro. System Vigilance and
audit helped in aligning the project with stakeholder’s vision. It has not only
benefited the riders but helped in reducing traffic congestion on roads. The project
has been viewed from three lenses: Planning, Leadership and Stakeholder,
setting an example of a good project management practice.
“The Metro has become more than just a rapid mass transport system. It has
become symbolic of a ‘modern’ Delhi”
Melissa Butcher, Professor of Modern Geography
Sou
S

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Introduction
Under the Companies Act, 1956 a company called as DELHI METRO RAIL
CORPORATION (DMRC) was registered in May 1995 bearing an equal participation
(50:50 JV) from GOI and GNCTD. The purpose to set up this company was to
ensure the successful execution and subsequent operation of Delhi MRTS
(Delhimetrorail.com).
DMRC started its operation in December 2002 with an 8 km line (CAG, 2008). This
state-central owned company operates the Delhi Metro, which is one of the largest
construction and infrastructure projects of its own kind in a developing nation like
India. Planning is a continuous process; planning for the metro started, when the
Delhi Development Authority (DDA) proposed a Master Plan for Delhi Prespective-
2001 in 1984, and recommended a mass urban transportation for the fastest
growing city. Later on, Urban Arts Commission presented some modifications and
commended for the development of the existing Ring Railway comprising
underground MRT corridors (Sabharwal & Goel 2011). Due to large scale nature the
project it was aimed to be constructed in phases. The first phase consisted of 3
corridors divided in to eight sections with a total length of 65.1 km and the second
phase covered 124.4 km, the third phase 159.3 km, scheduled to be completed in
2016. The fourth phase for which a Detailed Project Report (DPR) has been
submitted for approval covering a length of 103 km scheduled to be completed by
its deadline 2021 reaching its total length of 434 km (Ranjan 2014). DMRC is
responsible not only for construction of the system but also for its operation and
maintenance.

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Table 1 Timeline for the four phases of Delhi Metro construction
Phase I
Phase II
Phase III
Phase IV
Year 1995-96 2004-05 2005-06 2011 2013-14 2016 2021
Brown: Under Construction
Orange: Proposed Timeline
Black: Completed
Management Structure
Since the two government bodies own 50% or equal majority controlling shares in
the company which provides DMRC a unique type of management. Both GOI and
GNCTD have equal participation and therefore the Board of Directors of the
company consisted of five representatives from each with the Chairman of the
company being appointed by the Government of India while the Managing Director
is appointed by the Delhi Government. The day-to-day management of the
Company is entrusted with Managing Director who is supported by Functional
Directors and other Officers and staff of the Company. Today, the Board of
Directors consists of sixteen representatives with eight full time directors including
Managing Director (Delhimetrorail.com). The management style adopted by DMRC
is another reason of its success. The DMRC adopted a practical approach based
upon the experiences of their first Managing Director who had over 50 years of
working experience. The decision-making process in DMRC involves the following
management structure.

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Figure 1 Management Structure in DMRC
Planning
Need for the project
A project with a huge capital investment in billions of dollars to be spent on Delhi
Metro, it is imperative to understand the need for, and the related effectiveness of,
such system as a means of public transportation in the Indian context. The Union
territory of Delhi is the capital of the country, a metropolitan city with a population
of 16.75 million (Census2011).
The state is spread over an area of about 1483 sq. km. which is certainly not
among the largest states in the country. With an increasing population and static
area, the city faced stifling traffic congestion problems in addition to growing
vehicular pollution. The growing demand for the transport in mega cities presents
serious effects on urban ecosystems, especially due to the increased atmospheric
pollution. An ecologically sustainable urban transport system requires an
appropriate mix of alternative modes of transport. Therefore, it was realized that
Board of Directors
Managing Director
Functional Director
Executives

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the capital needs an ecofriendly mass transport system to cover large distances
simultaneously reducing the pressure on roads. In addition to this the soaring
prices of fuel; diesel and petrol contributed to the success of the Delhi Metro.
Mission of the Delhi Metro
Delhi Metro project was undertaken with a “Mission” to provide an ecofriendly
interconnecting mode of transport to the capital of India and the bordering areas
such as Noida, Faridabad, and Gurgaon.
Delhi Metro aspires to be of world class standards in regard to safety, reliability,
punctuality, and comfort and customer satisfaction. Delhi Metro proposes to
operate on sound commercial lines and become self-sustained.
Unlike most infrastructure projects in India that face delays, DMRC is setting an
exceptional case and has completed the Phase I and Phase II work in time.
Proactive planning is regarded as the key element and is likely to contribute in
achieving the deadline for the Phase III completion and start Phase IV work
simultaneously. Delhi Metro severs a daily ridership of approximately 27 Lakhs
(Times of India, 2009)and according to a study conducted by the Central Road
Research Institute (CRRI), in the year 2011, estimated about 1.17 lakh vehicles
dismissal from the streets of Delhi (Sabharwal & Goel, 2011).With the introduction
of CNG in vehicles such as bus, cars and others and switching to the metro rail as
mass transport have resulted in a significant reduction of atmospheric pollution in
Delhi.
“To deliver a delightful travel consumer experience, it sets a target to cover the
whole city and adjoining areas by the year 2021”
DMRC
Sou
S

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Risks confronted
Broad Gauge over Standard Gauge- Design
According to sources, the decision favored by the GOI in favor of the standard
gauge over the broad gauge as reported by CEO was a battle for technical design.
(Times of India, 2009). However, the Ministry of Railways (Railway Board) was also
in favor of adopting the broad gauge, justifying that it would facilitate inter-
connectivity of rolling stock between the Rail and metro networks and was in line
with the uni gauge policy for India. This valuable decision was required to be taken
before construction on the lines for the Metro in Delhi. In 1999, almost 90% of
Metro networks; the world used standard gauge. The Standard Gauge has technical
and economic benefits compared to Broad Gauge. The decision went in favor of
standard gauge, not only for Delhi but also for other cities in India, as it was the
choice for systems in most developed nation and it also provided better speed,
maneuverability and safety, while also allowing for sharper and therefore space
saving turns on the tracks. This decision will certainly help India adopt
international technology easily, thus reducing the cost of construction and
operations in the future development.
Land Acquisition
The Metro project has not been constructed without any problems. There were
some 700 legal cases pending against it, relating largely to land redevelopment.
The impact of globalization is visible not only in the construction and financing of
the Delhi Metro, but also in the motivations for the metro that restructured public
space. Troubles in acquiring Land Project Affected Persons (PAPs) or people who
will be affected because of proposed plan on alignment of the Metro routes raised
issues and demanded realignment. One of the most controversial areas for the
Metro line was Tis Hazari, bearing offices for a larger section of the legal fraternity.
Smt. Sheila Dikshit Chief Minister of Delhi in effect then, supported the decision in
favor of DMRC and dismissed the question of realignment (Pucher et al., 2004). The
DMRC also dealt with other such alignment issues while minimizing disruption to

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the lives of common people living in nearby areas and without modifying their
technical plans. Thus, Delhi Metro became a project that could not be deterred at
any cost (Metro, 2011). Delhi Metro takes the onus for restructuring the physical
and the culturally constructed social spaces in the city.
Underground construction issues
Complex projects like construction of underground corridor for metro rail operations
involve risks in all stages / phases of the project starting from the feasibility phase
to the operational phase. Sarkar & Dutta, 2011 stated that infrastructure
underground projects are inherently complex projects with many variables including
uncertain and variable ground conditions. For tunneling, either Tunnel Boring
Machine (TBM) or New Austrian Tunneling Method (NATM) is used. Tunnels from
Central Ridge to Shivaji Stadium and at Chawri Bazar Metro station favored, NATM
method that involves cutting the earth or rock below the surface, because of time
and space constraint ].(Metro 1965). In tunneling, tunnel surface is to be covered
by gaskets and segments made of cement as tunnel progresses. Tunnels are also
made waterproof otherwise it may collapse the tunnel. Underground station in
operation requires constant lighting and ventilation which adds to more cost.
However, DMRC ensured the safety of the workers working at such site.
Signal problems
The Metro trains use centralized automatic train control (CATC) comprising
automatic train operation (ATO), automatic train protection (ATP) and automatic
train signaling (ATS) systems. However, incidents of problem in signaling has been
recorded especially on Blue line Delhi which is an area of concern and improvement
as the whole city gets Metro connectivity. Therefore, the Delhi Metro for its Phase
III is planning to replace the current signaling system with new radio-based system
will replace the current signaling system, which relies on track circuit boxes that
determine the speed of the train and its frequency (Railway-technology.com 2011).

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In addition to this, DMRC partnered with Google India in an effort to provide train
schedule and route information to mobile devices with Google Maps. This free of
cost service will help the commuters to plan their journeys more efficiently by
accessing latest information on the schedule (Railway-technology.com 2011).
SWOT Analysis
The fact that the Delhi Metro managed to stay within the estimated budget and was
completed without significant delays once construction had started is a testament
to its unique role in Indian culture against historical realities and against statistical
odds. It is also proof that large-scale development projects in developing nations
need not be sinks of corruption and mismanagement, but instead can shine as
examples of efficient, well-run state intervention.
Strenghts
- In 2011, UN certified Delhi metro project for
“carbon credits " for reducing greenhouse gas
emissions”
- Flap-doors operated by 'smart-cards' and contact
less tokens I Due to its monopolistic nature acts as
a pro-active government
- An ecofriendly connectivity for the capital and
adjoing areas.
- Feeder buses
Weakness
- Costs more than the bus travelling
- Unable to cope with growing number of
commuters
Opportunity
- Growing public transport demand with growing
population
- No close substitute available for the Delhi metro
- Scope of extension to adjoining areas and other
cities
- To improve the infrastucture and realted
facilities
Threat
- Other public and private mode of transport
- Reducing number of ridership due to lack of
adequte infrastucure
- Secruity

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Finance- Role of JICA (formerly known as JBIC)
The Delhi Metro project was executed and implemented with 50:50 JV between
Government of India and the Government of the National Capital Territory of Delhi.
However, Japan International Cooperation Agency (JICA) an arm of the Japanese
government has been a major contributor for providing technical and financial aid
to DMRC. It lent as much as 60 % funding for Phase I. Till date the major funding
in the form of soft loans approximately 5, 02,644 million Japanese Yen has been
credited by the Japanese Bank of International Cooperation and about 3% came
from property development (Metro, 2011)
Figure 2 Funding Pattern (Singh, 2011)
Mangu Singh acting Director at DMRC told Business standards that in order to avoid
the land acquisition issues a major thrust to underground construction was
implemented. However, this cost was traded off with per-km cost of construction
which went up from Rs 162 cr in phase-I to Rs 303 cr in phase-III. A notable proof

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of efficient project Management is visible from the decreased cost in phase-II even
though the underground component was more as compared to phase-I.
Table 2 Delhi Metro's Phase-Wise Anatomy
Phase I Phase II Phase III Airport*
Length (km) 65 125 116 23
Underground
component (%)
20 27 40 69
Cost (Rs cr) 10,571 19,131 35,242 5,800
Cost per km (Rs cr) 162 153 303 252
*Airport Express line: Built on public-private partnership basis at total cost of Rs
5,800 cr; it is run by Reliance Infrastructure subsidiary DAMEPL. DMRC has done
civil construction for the line
Therefore, it is clear that the Finance department in the DMRC played a vital role
under the steering of Chief Executive Officer. Effective communication between the
Finance department and the Executive was the source of success. Finance
department of Delhi Metro ensured timely payments to the contractors and
suppliers with almost no time lag. Even the disputed sum was assured to be sorted
out within a week's time and payments were released to the respective contractors.
This timely payment fashion discouraged corruption, as and when the contractors
were enquired if they are facing any problem from DMRC with regard to payments.
All transactions were conducted electronically to keep a track on payments status.
“Unbundling of contracts and a higher number of domestic contractors allowed us
to pull down per-km cost of construction in the second phase”
Mangu Singh
S

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Latest Technology
Although the concept of a mass rapid transit for New Delhi first emerged from
traffic and travel characteristics study which was carried out in the city in 1969. But
physical construction of the Metro work started on 1 October 1998, allowing the
DMRC to go for an old and conventional Metro System or to adopt the latest
technical features from other Megacities such as Singapore and Hong Kong. DMRC
with a view to build an international standard metro rail preferred to adopt
extremely modern air conditioned rolling stock with Automatic Train Protection and
Automatic Train operations system over conventional suburban trains. TETRA was
adopted to ensure trouble free communication and DMRC became the first Metro to
adopt 25 kV rigid OHE systems for an underground Metro (Asic et al. 2012). In an
effort to reduce paper waste, token in the form of tickets was adopted with the AFC
system. DMRC being the first Metro in terms of advancement decided to have
contactless tokens for the journeys. In metro train DMRC used advanced technology
for observation of sound and installed motors for generating electric current. Metro
Cards and Token works on NFC technology. For tokens and smartcards scanning
machines on all the metro stations have NFC reader and writer machines, station
codes are written in the card on entry and exit from a station distance is calculated
(Times of India , 2012).
Negative Externalities of Delhi Metro
This section highlights some of the major negative externalities associated with it.
The main negative externalities include: accidents occurred during construction,
one of the majorly affected stakeholders as the residents were displaced due to
land requirements as reported earlier, last but not the least impact on environment
due to emissions during the construction, maintenance and operation phase in
addition to the production of the attributed electricity. Refer to the table 3 in
appendix at the bottom of the report.

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Leadership
Leadership can be defined as a style of behavior designed to integrate both the
organizational requirements and personal interests in the pursuit of some
objectives. Managers have a leadership responsibility. An effective leader will be
able to adapt a style or combination of styles of leadership to suit the
circumstances (Zulch, 2014). According to the studies the success of a project
largely depends on the influence of the Project Managers. Successful execution of a
project requires a project manager not just with appropriate competencies, but also
with appropriate focus for their work (Müller & Turner ,2007). With a special
reference to class learnings, projects with a territorial mission demands a project
manager with an unparalleled leadership trait. There are different leadership styles
which may be applied individually, selectively or in combination, depending on
different situations.
For Delhi Metro project a person with a personality to influence others and follows a
leadership that motivates others to achieve the desired goal was needed. Hersey
and Blanchard believe that leadership must adapt to the ‘maturity’ of employees
referring to work maturity, that is, a desire to achieve, a willingness to accept
responsibility, as well as working knowledge and working experience (Zulch, 2014).
Elattuvalapil Sreedharan, popularly known as “Metro Man” is a retired IES officer
was appointed as the CEO with all the desired qualities and in terms of experience
and a 'charisma' which comes from a person who is spiritually enlightened. His aura
and strength worked as a fuel for the project as a project manager.
“He is credited for changing the face of public transport in India by his leadership
for building the Konkan Railway and the Delhi Metro when he served as the
managing director of Delhi Metro 1995–2012”

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The project manager needs to establish cooperative relationships with the project
team members ensure a good climate for communication, identify participants for
the project to ensure commitment and adopt an appropriate leadership style
(Zulch, 2014).He played the role of a true leader to give directions, clear cut
decisions and solutions on every issue. He possessed the unique ability to make
every officer and other staff members feel as an important resource to the project
and organization. Under his serving tenure (1997-2002) as MD, the project was
completed ahead of its scheduled time. The early completion of the project with
little hassles to commuters, unlike Kolkata Metro, made it a milestone of Indian
Railway’s construction history. Due to which E Sreedharan’s tenure was extended
by a further three years in 2005 till the completion of the second phase of Delhi
Metro.
His resignation for taking moral responsibility for the collapse of the under
construction bridge that killed five people in the capital truly represents behavioral
leadership style (Zulch, 2014).
“Let’s Deadline Motivate you not pressurize you”
Dr. E. Shreedharan
“For his dedication E. Sreedharan was awarded the Padma Shree and Padma
Vibhushan by the Government of India in 2001and 2008 respectively, the Man of
the Year by The Times of India in 2002”

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Stakeholder
In a project stakeholder could be person or group of people with similar or
dissimilar interest including the environment within which the success of a project
operates (Olander & Landin, 2005).The various stakeholders identified in the Delhi
Metro project are local authorities, the affected residents, metro riders,
government, and representatives of various interest groups (funding agency,
suppliers, contractors, NGOs) and the general public.
Figure 3 Stakeholder Analysis
The above figure depicts the stakeholder evaluation where a relationship between
different stakeholders and their role in and attitude to the project. If the
stakeholder has a primary role it is indicated as 1 and 2 for the secondary role.
Different stakeholders have different attitude towards the project some may be
happy such as the government, local authorities and the riders while the affected

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residents may have a negative attitude as they had to vacate their houses for the
construction to take place. It also assess the kind of relationship they had with the
project managers. If it had been strong prior to this project is regarded as a strong
else weak relationship. The project managers needs to have a communication with
the identified stakeholders which may be direct via phone, email or in person or
indirect via third party.
Table 3 Stakeholder Mapping
High
Keep Satisfied
(Local authorities, Staff,
Riders )
Key Players
(GOI, GNTCD, JICA)
Power
Low
Minimal effort
(General public, Riders,
NGOs, Affected
residents)
Keep Informed
(Contractors, Suppliers,
Media)
Low Level of interest High
Johnson et al., 2008 formulated the power/interest matrix that groups the different
stakeholders and basically analyses the following 1) The vested interest of each
stakeholder group to impress its expectations concerning the project decision 2)
The power they possess in doing so. As a useful tool in project management the
power/interest matrix, can help in drawing inferences on how communication and
relationships between stakeholders has impacted the project in general and its
implementation process.

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Conclusion
Keeping in view the difficulties of working in an urban environment and under space
restricted conditions the project has been a huge success. It has defied India’s
reputation for maladministration to claim to be not only ahead of schedule but
within budget. This can only be possible under a sound leadership guidance who
has a clear direction and planning to deal with risks and challenges. The DMRC had
to cut through the red tape which is certainly not easy for organizations. Even
during the Phase III construction process it faced financial challenges but due to its
profound record for repaying the debt on time, JICA has agree to provide funding.
In the past, DMRC has proven itself as a responsible organization and to avoid the
delays in the project, it took the charge of diverting the utilities rather than waiting
for respective agencies to divert them. Although MRTS are very capital intensive in
their construction period but Delhi Metro is among one of the five Metros namely
the Singapore, Hong Kong, Taipei, and Tokyo that are making an operational profit.
In other words, the daily earnings exceed the expenditure incurred by the
organization every day. Clearly, the success of this mega project depends on
number of factors such as decision of choosing E. Sreedharan as CEO and
empowering him, which helped in cutting multi-layered bureaucracy levels. In
addition to this his expertise and working style was always motivating for the staff.
An element of extensive planning for the project, for example convincing and
obtaining required timely funding from JICA. Project managers defined the realistic
and achievable deadline and budgets, then adopted the systematic approach to
follow those deadlines. Even though media posed questions on the DMRC’s safety
and security practices after the accidents but DMRC practiced and maintained
unique work culture of punctuality, integrity, social responsibility and professional
competence to deliver the high quality metro services. Certainly, Delhi metro
project portrays a story of successful project management and skills especially in
Indian public sector. Acknowledging, the success of Delhi Metro, DMRC has been
assigned with consultancy projects for other Indian states such as Bangalore,
Hyderabad and Mumbai.

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Appendix
Table 4 Incidents Reported
Incidents Source Phase Time
period
Impact
Fatalities and
Injuries
Right to
Information
(RTI) Act,
2005, in
December
2007
Construction 2000-
2007
60 (Fatal)
26 (Non-fatal)
Fatalities and
Injuries
Civil Society,
2009
Construction Until
2009
Loss of life-261
Injuries-481
Displacement of
Households
Tiwari, 2003 Construction
and Planning
2000-
2004
More than 100,000
Jhuggies, relocated- On
an average reduced in
their income due to
inaccessibility to the
city and income
avenues, Increase in
travel distance which
required use of RTVs
adding a cost factor.
Real Estate Swamy, 2008 Construction
and planning
stage
For residential and
commercial areas, on
average, land value
within 500 m of a metro
line increased by 11.3%
and 18.1%,
respectively
Emissions from
electricity
generation used
for its operation
Senapati, 2011 Operation Due to electricity
production from coal in
India that has high fly
ash content leads to the
formation of particulate
matter (PM10 /PM2.5)
– a source of air
pollution in the form of
fly ash and 25 to 30%
of the total operating
cost of the Delhi Metro
(Low & Transport, 2014)

Reserach study on Delhi Metro project

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