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DELHI METRO
DELHI METRO
Amol Azad
Rajat Singla
Quote by E. Sreedharan
• The scheduled 60-month contract for the 7km-long, mainly bored tunnel section from
the ISBT station to Central Secretariat, with five open-cut stations and an NATM mined
station at Chawri Bazaar, was awarded for Rs. 1700 crores to: International Metro Civil
Contractors (IMCC) comprising Dyckerhoff & Widmann (Germany – leader), Shimizu
Corporation (Japan), Larsen & Toubro (India), Samsung (Korea), IRCON International
(India) and with lead design consultant Mott MacDonald, UK.
• The construction methodology for the underground Corridor was finalized after taking
into account the availability of open space above the alignment, ground conditions,
conditions of nearby existing structures and likely settlement in the vicinity.
• In addition to the civil works, design for the design-build contracts also includes station
& services, ventilation, air conditioning, lighting, station finishes, landscaping, and the
provisions for the fitting of platform edge doors at a later date.
• Delhi Metro Rail Corporation (DMRC) has awarded a contract to Alcatel TAS the design,
installation and commissioning of the full Integrated Rail Communication system for the
metro.
Indigenization
• A month later, Sreedharan went to Fernandes with a well-charted out plan. "I told
him that we will have to work in a different fashion," he recalls. Probably his
enthusiasm infected Fernandes, who got cabinet approval for the project within
three days. Maharashtra and Kerala immediately agreed to the project, but
Karnataka chief minister Virendra Patil objected.
4) Subordinate Debt 3% 4%
The Funding
• More than 60 percent of the funds required for investment are
raised as debt capital.
• Around 30 percent of total investments of DM are raised through
equity capital with the Government of India (GOI) and GNCTD
having equal shares in it.
• The remaining 10 percent of the investments of DM will be covered
out of the revenues it earns.
• DM had been provided with the following concessions by GOI to
make the project viable, namely
(a) The cost of land equivalent to Rs. 2180 million has been provided
as an interest free subordinate loan by GOI/GNCTD to be repaid by
the DM within 5 years after the senior debt is repaid fully by the
twentieth year of taking the loan
(b) The risk associated with the exchange rate fluctuations is borne by
government in case of foreign debt
(c) The DM is exempted from payment of income tax, capital
gains tax, property tax and customs duty on imports.
(d) The DM is permitted to generate resources through property
development over a period of 6-20 years.
(e) No dividend is paid on GOI share of equity till the senior debt
is repaid fully by the twentieth year.
A financial analysis of the Metro
• What it gets:
– Fare box revenues
– Revenue from property development
– Advertisements
– Tax Revenues from goods or services bought for the
metro
– Saved cost of road infrastructure
– Saved cost of operating buses
Net Benefits to the Government
• What it loses
– Heavy revenue losses due to displaced
buses(Estimated 2400 buses will be displaced by
2012).
– Investment and operation and maintenance of the
metro.
• What it gets:
– Social premium on investment and foreign exchange
– Environmental benefits of reduced pollution due to
the Metro.
– Social Premium: reduced fossil fuel consumption due to a
change in the mode of transport .