The Delhi Metro Project: Effective Project Management in the Indian
Public Sector
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Case Details:
Case Code : PROM005
Case Length : 21 Pages
Period : 1998-2006
Pub Date : 2006
Teaching Note :Not Available Organization : DMRC
Industry : Construction
Countries : India
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"Everyone who has traveled by the Delhi Metro wants one in
his or her city. Today, there is a national resurgence in public interest in
urban public transport."1
- Dr. Manmohan Singh, Prime Minister of India, in 2006.
"The successful implementation of the Delhi Metro project
would not have been possible without timely availability of funds and the
necessary political support. An equally important role has been played by the
DMRC's corporate culture, which emphasizes that targets are most sacrosanct and
our dignity is in performing our duty well."2
- E. Sreedharan, Managing Director, Delhi Metro Rail
Corporation Ltd., in 2005.
Introduction
With a 6.5 km section of Line 3 becoming operational in April 2006, Phase I of
the Delhi Metro3 project was nearing
completion. Of the total length of 65.16 km of the first phase, 62 km had been
completed and opened for service. This phase was set to cost Rs. 98 billion. As
of early 2006, around 450,000 passengers were traveling by the Delhi Metro every
day.
The Delhi Metro was meant to solve Delhi's traffic problems, which had become
almost unmanageable. The first steps to build a metro system in the city were
taken in the early 1990s. In 1995, the Government of India (GoI) and the
Government of the National Capital Territory of Delhi (GNCTD) formed the Delhi
Metro Rail Corporation Ltd (DMRC) under the Companies Act to construct the Delhi
Metro.
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Conceived as a social sector project, a significant portion of the project cost
was funded through a soft loan provided by the Japanese government through
Japan Bank International Corporation (JBIC)4.
The rest was contributed by GoI and GNCTD through equity.
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E.Sreedharan (Sreedharan) was appointed managing
director (MD) of the DMRC and project manager for Phase I of the project
in November 1997. Work on Line 1 of Phase I started in October 1998.
DMRC formed consortiums to advise it on the project and to provide it
with the latest technology. It also saw to it that the foreign companies
worked with the Indian companies to ensure that the latter assimilated
their expertise and technological know-how.
The DMRC faced any number of technical and systemic challenges during
the construction of the metro. |
The Delhi Metro Project: Effective Project Management in the Indian Public
Sector
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