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					                                          INDIA
                                       FASTEST GROWING
                                       FREE MARKET DEMOCRACY




               RAILWAYS




               Delhi Metro Project: Indian Project
               Managers Show the Way




www.ibef.org                        India Brand Equity Foundation
                                                                          P A G E 2

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                           DELHI METRO PROJECT: INDIAN PROJECT
                           MANAGERS SHOW THE WAY
Eighteen months from       When E Sreedharan took over as the managing director of Delhi Metro
now, the venture’s         Rail Corporation in November 1997, two doubts were raised about the
overground and             subway rail venture: was it worth the effort? Equally important, would it
                           finish on time?
underground network
is expected to carry 2.1
                           After all, putting together a subway railway system in a crowded
million passengers per
                           metropolitan city isn’t easy. A large number of utilities like water pipes,
day across 59 stations.    sewerage lines, telephone and electric cables need to be relocated to
A train will run every     facilitate the construction work; people have to be relocated…. In fact,
three minutes during       India’s first metro project in the eastern city of Kolkata took more than
peak hours, and the        25 years to complete. In the case of Delhi, as many as 35 studies have
service, when running      been done on the transport problems of Delhi since 1950 – and a
at full capacity, will     number have suggested the Metro Rail for a solution in Delhi.
carry 60,000 – 75,000
passengers per hour        Circa 2004
each way.                  Twenty-two kilometers of the metro project are up and running. Not
                           only has the DMRC has stuck within the completion targets, some
                           stretches have finished six months ahead of time and the entire project is
                           expected to be completed by December 2005. To finish the project
                           faster, work is going on three fronts simultaneously: utility diversion,
                           barricading and actual civil construction.

                           Eighteen months from now, the venture’s overground and underground
                           network is expected to carry 2.1 million passengers per day across 59
                           stations. A train will run every three minutes during peak hours, and the
                           service, when running at full capacity, will carry 60,000 – 75,000
                           passengers per hour each way.

                           Already, the Delhi Metro project rivals similar services in London, Seoul
                           and New York.

                              o   The station air-conditioning and ventilation system in tunnels
                                  have been planned to meet the rigorous climatic conditions of
                                  Delhi. The coaches are all air-conditioned.

                              o   Ticketing is fully automatic. Contact-less smart cards serve the
                                  purpose of tickets for metro passengers.

                              o   All entrances of the metro stations are controlled through
                                  automatic flap gates through which 45 to 60 passengers can exit

www.ibef.org                                                                India Brand Equity Foundation
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                           DELHI METRO PROJECT: INDIAN PROJECT
                           MANAGERS SHOW THE WAY
But the real marvel                 and enter per minute. The entire fare collection system is
of the Delhi Metro                  monitored through a central commuter in the operational
project stems from                  control centre of the DMRC.
two counts. First is the
way in which a foreign     But the real marvel of the Delhi Metro project stems from two counts.
dependent project has      First is the way in which a foreign dependent project has been localised
                           and re-engineered. This was done by roping in Indian companies as
been localised and
                           consortium members at each stage of the project.
re-engineered.
                           Operation                Contractors                    Indian Partners
                           Civil Works; Ventilation Kumagai Gumi Co, Shimizu       IRCON International
                           & Air Conditioning       Corporation Itochu             Hindustan Construction
                                                    Corporation (Japan)            Co Larsen & Turbo Ltd.
                                                    Samsung Corporation
                                                    (Korea) Skanska
                                                    International (Sweden)
                                                    Dyckerhoff & Windmann
                                                    (Germany)

                           Supply of coaches &       Mitsubishi Corporation,       Bharat Earth Movers
                           engine                    Japan- KOROS, Korea

                           Signaling &               Alstom Transport, France Alstom Transport
                           communication             Alcatel Portugal Sumitomo
                                                     Corporation, Japan

                           Traction & power          Corba, Spain- ELIOP, Spain IRCON International
                           distribution technology

                           Supply, Installation,                                   ABB Ltd Best &
                           Testing and Commission                                  Crompton- Engineering
                           of power supply

                           Supply, Installation,     MVM, Australia                IRCON International
                           Testing and
                           Commissioning of
                           ballast less tract

                           Over the course of the seven-year venture, several capabilities have
                           been acquired by the Indian partners. In 2002 Indian engineering firm
                           Bharat Earth Movers Ltd signed a contract with South Korean firm
                           Rotem for manufacturing rust-proof and has fibre-reinforced interiors
                           steel coaches within India under a transfer of technology agreement. A

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                           DELHI METRO PROJECT: INDIAN PROJECT
                           MANAGERS SHOW THE WAY
                           year later, Bharat Earth Movers (BEML) released the first rake comprising
                           two engines and four trailer coaches. By 2005, BEML will supply 180
                           coaches.

                           Alongside the manufacturing practices, project management processes
                           have also been transferred seamlessly. When the metro project started,
                           a five-member consortium managed it. Four of them were global firms:
                           Pacific Consultants International, Railway Technical Services and Tonichi
                           Engineering Consultants from Japan, and Parson Brinkerhoff International
                           from the US. Rail India Technical and Economic Services (RITES) was the
                           only Indian consultant.

                           Now, for the final stretch of the metro project, DMRC and RITES are
                           confident enough to navigate the venture from here alone, even though
                           the third stretch will pass through some of the most congested areas of
                           Delhi.

                           Better still, DMRC’s domain expertise acquired over the last seven years
                           is now being used to develop feasibility studies for other metro projects.
                           The studies include route alignment, utility mapping, and projected
                           demand for transport in the next five decades, soil testing, environmental
                           impact and system designing.
"We (DMRC and its
partners) have acquired     For example, the West Bengal government asked DMRC to prepare a
the expertise for most     detailed project report to connect the eastern city of Kolkata’s existing
of the work. We have       metro rail with Howrah, an industrial hub on the other side of the river
always wanted to have      Hooghly which runs through the city. DMRC will use construction and
                           technology similar to that used in English Channel albeit on a smaller
a more patriotic
                           scale.
approach in our work
and are proud that we
                           At another level, RITES, on behalf of Delhi Metro Rail Corporation, is in
can do the job             the process of completing a detailed project report for the southern
ourselves in such little   cities of Bangalore and Hyderabad. Other metro projects in the pipeline
time," says DMRC           include the western cities of Mumbai, and Ahmedabad, the northern city
managing director          of Lucknow, and the southern cities of Thiruvananthapuram and Kochi.
E. Sreedharan said in
a recent interview.        ‘‘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



www.ibef.org                                                               India Brand Equity Foundation
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                            DELHI METRO PROJECT: INDIAN PROJECT
                            MANAGERS SHOW THE WAY
The cost of the Delhi       time,’’ says DMRC managing director E. Sreedharan said in a recent
metro project at US         interview.
$2.3 billion for 66 kms
of tracks is higher since   An important reason why DMRC’s skills are being taken to other cities is
most of the technology      the cost factor. At a presentation made to the Andhra Pradesh
                            government in 2003, Sridharan pointed out that the cost of a 39.45 km
has been sourced from
                            metro project in Hyderabad was estimated at US$ 712 million at April
abroad
                            2003 prices, which translated into a per km cost of US$ 18 million.

                            “The cost of the Delhi metro project at US $2.3 billion for 66 kms of
                            tracks is higher since most of the technology has been sourced from
                            abroad,” Mr Sridharan said during the presentation.

                            DMRC not only brings in experience and lower costs, it also shows the
                            rest of India and the world how to put together a world-class project
                            within a world-class timeframe.

                            Related Resources

                            1.     E Sreedharan, Managing Director, Delhi Metro Rail Corporation,
                                   Phone: 91-11-24365202 / 4 Fax: 91-11-24365370

                            2.     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.
                                   To get a copy of the book, contact:

The most positive                  Anuj Dayal
outcome of a strong                Chief Public Relations Officer
external management                Delhi Metro Rail Corporation Ltd.
strategy has been a                First Floor, N B C C Place, Bhishma Pitamah Marg
strong reserves                    Pragati Vihar, New Delhi - 110003, INDIA.
position. India’s foreign          Tel: +91-11-24365851 Email: anuj@delhimetrorail.com
exchange reserves are
in excess of US$108
billion.



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                  M A Y 2 0 0 4




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