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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"Earlier, we used to hear of the train travelling under the river Thames in London. Now, we will have the same engineering marvel in our country. This will be for the first time in our country that a train will go through a tunnel under a river" 1

- Pranab Mukherjee, the then External Affairs Minister in the Government of India Cabinet, in 2009

"India's first metro project in Kolkata took 22 years to construct a 17 km-stretch at 14 times the initial cost. It served as a dampener on future projects." 2

- E. Sreedharan, Managing Director, Delhi Metro Railway Corporation Ltd3 , in 2008

In late 2010, the 14.67 km long East-West Metro Corridor (EWMC) in Kolkata, that was initiated in March 2009 and was scheduled to be completed by October 31, 2014, at an estimated cost of Rs.4 46,760 million, was negotiating hurdles in procuring land at Howrah and Sealdah stations5. Observers noted that the episodes of Singur and Nandigram had left the West Bengal government extra cautious whereever any project involved a land acquisition issue. So critical was the issue that when it came back again in the form of the Kolkata Metro Railway Corporation (KMRC) expansion project through EWMC, few were left untouched about its impact on the future of the project itself.

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1] "Kolkata East-West Metro to Go Under River Hooghly," The Hindu, National, February 22, 2009
2] E. Sreedharan, "Great Ideas, Great Minds - Social Responsibility," India Today, September 25, 2008
3] Delhi Metro Railway Corporation (DMRC) Ltd. was incorporated as the project company responsible for the development and operation of the Delhi Metro Rail, a mass rapid transportation system (the second in India) which was constructed in Delhi, the national capital city of India.
4] Rs. = Indian rupees or INR. As of October 2010, 1 US$ was approximately equal to Rs. 44.39.
5] Sharmistha Mukherjee "A Million Journeys, Now," Business Standard, October 2, 2010.

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