Appraising Kolkata Metro Railway Corporation's East West Metro Corridor Project

            
 
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Case Details:

Case Code : FINC068
Case Length : 21 pages
Period : 2009-2010
Pub. Date : 2011
Teaching Note : Available (6 Pages)
Organization : Kolkata Metro Rail Corporation
Industry : Transportation
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Introduction cont..

Having learned a bitter lesson from the previous incidents and their fallout, the Buddhadeb Bhattacharya-led leftist government in West Bengal decided this time around to do away with some of the important metro railway stations along this much hyped corridor rather than get into a series of fresh controversies that would provide fresh ammunition to the government's political opponents and critics. The most significant of these opponents was Mamata Banerjee, leader of the largest opposition party in the state, the Trinamool Congress, and Railway Minister in the cabinet of the Government of India (GoI). Though the Trinamool Congress supported the project in principle, it said it was against the eviction of farmers and local traders from the

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proposed metro station sites. Having learned a Contending that the project sanctioned under the GoI's Jawaharlal Nehru National Urban Renewal Mission (JNNURM)10had not been handled properly by the KMRC, the leaders of the Trinamool Congress demanded that it be awarded to the Railway Ministry under the GoI11. These political issues apart, critics pointed out that the existing Kolkata North-South Metro Railway had been suffering losses since its very inception. Questions were therefore raised about the financial justification for the current project.

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10] The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) is an infrastructure development scheme by the GoI launched in December 2005 with the aim of improving the quality of urban life and infrastructure in Indian cities. The planned expenditure under the mission was Rs. 122047.4 million and the mission was to be completed by end of the year 2012 through its two sub missions.
11] "TMC Wants East-West Metro Under Railway Ministry," Business Standard, August 7, 2009


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