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

vi

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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

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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 gasemissions”

- Flap-doors operated by 'smart-cards' and contactless tokens I Due to its monopolistic nature acts asa pro-active government

- An ecofriendly connectivity for the capital andadjoing areas.

- Feeder buses

Weakness

- Costs more than the bus travelling

- Unable to cope with growing number ofcommuters

Opportunity

- Growing public transport demand with growingpopulation

- No close substitute available for the Delhi metro

- Scope of extension to adjoining areas and othercities

- To improve the infrastucture and realtedfacilities

Threat

- Other public and private mode of transport

- Reducing number of ridership due to lack ofadequte 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)