Delhi Metro A Project Management Bench Mark Presentation

Delhi Metro A Project Management Bench Mark Presentation By Kumar Keshav Director (Project &Planning), DMRC 23 rd June, 2011

Delhi Metro Rail Corporation (DMRC) • Set up in May’ 95 under the Indian Companies Act. • A joint venture between the Federal Government of India and the Provincial Government of Delhi State, with equal equity. • DMRC has the responsibility for construction and operation of Delhi Metro. 2

Delhi Metro Rail Corporation (DMRC) • A Master Plan had been drawn up for Delhi Metro expansion, consisting of 12 lines, covering 420 kms. to be completed by 2021 in four Phases. • Works started on Phase I on 1 st October, 1998 and completed in December, 2005. • Phase-I – 65 kms. Cost US $ 2. 5 billion. Completed in 7 years and 3 months (2 years & 9 months ahead of schedule) 3

Delhi Metro Rail Corporation (DMRC) • Phase-II covers 124 kms. This also includes a high speed Metro connection from centre of the city to the new airport in 18 minutes. Phase-II works commenced in January 2006 and completed in October, 2010 – 5 months ahead of schedule. • Phase-III will consist of about 104 km at a cost of US $ 8. 6 billion. The first contract for Phase-III has since been awarded. 4

Funding of the Metro – 20% of the cost is borne by the Federal Government. – 20% of the cost is borne by the State Government. – About 50 – 60% of the cost through JICA Loan. – 5% of the cost by DMRC through Property Development. 5

Operation Highlights • 2500 train trips with 200 train sets on 6 lines. • Each train used to consist of 4 coaches. Trains progressively being lengthened to 6 coaches and finally to 8 coaches. • Average daily ridership - About 16. 5 lakh passengers with average lead of 14 kms. • Frequency during peak hours – 2 m 30 sec. • System fully Barrier Free for Physically challenged. • DMRC has introduced feeder bus short loop services • Punctuality measured with a least count of 60 Sec. and average punctuality percentage is above 99%. 6

Financial Success of Delhi Metro • Fare : From Rs. 8/- (17 cents) to Rs. 30/- (65 cents) - fare structure lowest in the world except Kolkata. • The system making operational profit from Day-1. • Delhi Metro receives no subsidy from the two Governments. • We are able to meet the operating and maintenance expenditure fully. • In addition we are servicing and repaying the loans taken from JICA. • 20% of DMRC’s revenue is from Non-operational sources – mainly real estate development and advertisements. 7

Challenges in Implementation • Delhi Metro Project is the biggest urban intervention since Independence. • Project is to be executed in very difficult urban environment. • Being in the capital city all actions under close scrutiny of VVIPs. • Project approved on completion cost. • The Project implementation period extremely compressed and strict completion targets. • Metro being constructed to world class standards with frontline technologies.

Challenges • The sensitivities of the city to be respected during construction – No hardship or inconvenience to the public – Calcutta Experience. • Each day’s delay in completion of project costs DMRC Rs. 2. 3 Cr (Rs. 1. 4 Cr by way of escalation and Rs. 90 lakh by loss of revenues).

Constraints in Project Implementation • Large scale land acquisition in the city • Tree cutting permission - Substantial No. of trees are transplanted. - For every tree cut, compulsory afforestation of 10 trees is undertaken. • Utility diversions for Telecom, Electrical, Sewerage & Water pipe lines • Special permissions such as for Ridge (Reserve Forest) Land, from Archaeological Survey of India , National Monument Authority

How Challenges have been met

Work Culture & Organizational Values of DMRC 1. Punctuality. 2. Integrity – highest premium 3. Professional Competence. 4. Physical Fitness. 5. Quick Decision Making 6. High Discipline and loyalty to the Organization. 7. Prompt response to the needs of the Public and Contractors.

Dynamic Management Style • Corporate Mission and Corporate Culture • A slim but effective organization - No ineffective layers such as clerks, peons • Reverse Time clocks. • Democracy in management – Weekly HOD meetings and Monthly Dy. HOD meetings. • Discourage paper oriented work – replies to outsiders within 10 days. • Predominant use of information systems. • High premium for integrity in the organisation

• • • Dynamic Management Style Ample delegation of powers – accountability with delegation Redefined the role of Finance – Finance equally accountable with executive. Officers encouraged to take decisions on the spot. The fear of Audit and Vigilance not allowed to cramp the style. Leading from the front and not pushing from the rear. - Top Management readily available for decisions. Management based on trust

Project Monitoring at all Stages

Tendering & Award of work • General philosophy – success of the project depends upon success of the contractors. • Tenders from Pre-qualified list of bidders • A unique filtering criterion evolved for prequalification covering vital items of technical & financial capabilities of the tenderers • Objective evaluation criteria based on ‘scoring system’ • The tender conditions finalized keeping in view the JBIC Procurement guidelines, FIDIC document and Indian Contract Act. • Full powers for dealing with the tenders within organization • Tenders are decided fast – so that no lobbying is possible.

Monitoring during execution • Contractors prepare detailed Base – line work schedule for execution including duration of activities and identification of critical activities/path • Close monitoring of work schedule, mobilization of ‘Manpower’, ‘Machinery & Plant’ and ‘Materials’ • Weakly meetings with Contractors for planning the work and solving their problems. • Practical approach to solve the genuine problems of contractors. • Failing contractors are enabled to perform by timely assistance. • Streamlined prompt payment procedure and quick decision-making.

Monitoring during execution • Stringent penalties for failures to deliver. • Prompt resolution of claims. • Round the clock supervision guaranteed • Strict independent quality & safety audit. • Monthly progress presentations by the contractors • DMRC directly handles works pertaining to other Government and Civic Departments to speed up. Have been able to establish that we are different than the normal executing agencies and mean business.

Interface Management • Interface Management - “Access dates” and “Key dates” listed in contract document itself. • The important items which require interface with other contractors are clearly identified and indicated in contracts. • Other contractors with whom the contractor has to interface are also clearly defined.

Monitoring during Testing & Commissioning • Each activity of testing identified and duration of all these activities pre-determined • Trials conducted as per schedule pre-determined jointly by System Contracts • Service trial schedules also laid out in advance • Sufficient time provided before actual commissioning

Training and motivation of employees – A rigid screening process for inducting staff and officers. – Training and exposure in the appropriate areas. – Management objectives and philosophy clearly shared with executives and staff. – Chief Executive and Top Managers themselves set an examples. – Immediate appreciation and reward for good work done but no castigation for failures. – No witch hunting for genuine mistakes. Officers encouraged to take quick decisions. Tendency to push decisions to higher levels curbed.

Public relations initiative – Works planned and managed with the least inconvenience to the public. – Press regularly briefed on the progress and programmes. – Community interaction at difficult work sites. – Proper barricading and good house keeping. – Proper signages, security men to guide traffic. – Special measures taken to protect the environment. • Control on noise levels and vibrations during work. • Washing tyres of vehicles. Performance is our best publicity. Have been able to establish credibility with the public by delivery on time.

Benefits of Delhi Metro • A study by CRRI has brought out benefits of Delhi Metro Phase-I and worked out EIRR = 19. 96%. Thus the entire cost of Phase-I recovered by the city of Delhi in 5 yrs by 2010.

DMRC: An organisation with a difference…. .

Thanks DMRC Ltd. Metro Bhawan, Fire Brigade Lane, Barakhamba Road, New Delhi - 110 001.

CE UR IRP I UR I PL A 18 AR GA R HA NG NG IRP AR SH NA JAJ HA A AL IM ARK NG LOI RLY NA. ST NG N LOI SUR AJM AL STA UD DIU YO M GN AG AR PEE RAG ARH I PAS CH IM VIH RIT AR HA PAS W LA RO CH IM HIN VIH IW AR RO EST E HIN MA I EA DIP PIT ST UR AM BA PU SHI DL RA VA JI P KO I ARK HA RO TE HI NC NI LA VE SE N S PLAC C. E SH AD M WN R TO PU EL R YA OD LA GA M YA NA VID TB G WA HA RM GR VIS AB VP N NS HA IYA MAUJPUR ES HA A K TE VID NH ES GA KA LIN E IL MER ATE R JAFFRABAD SHAKURPUOK CIVSH E G ASH KA ER PARK HM S WELC H OME KA BAG JABI R PUN LAL QUILA BHOLANATH NAGA S MARG SR BI CHANDNI CHOWK AM ESI SH SPITAL UN NAGAR ARJ HO U I CHAWRI BAZA KA AL R JAMA MASJID ISH NDLS VA I` JAGATPURI UR DELHI GATE R K ASHRAM YAP MA A AL ITO W IP EXTN N M DE HA AN RD JH MANDI HOUSE VINOD NAGAR HA M I S 2 T WK DIU AK AR INA HO TA IH NT IND RA I S SECEL C RAP JA CA RV NA AJ Central PAT TT I U NA RAS IV THA LH AY Central SECTT PA SH TRILOKPURI M DE TH 1 1 UDYOG BHAWAN NA R AI MAYUR VIHAR ph. KHAN M RDHAULA KUAN ARKET NG NA OK URSE RACE CO H 15 AS HAZARAT OR W DIUM NIZ CT AMUDDIN 16 NE N STA SE JL 8 A JOR BAGH A OR ID UR R 1 CT GP TO NO SE N EC A INA AR JA G S ID T NA A NOIDA CITY CENTRE ID LAJPA NO NO S GOLF COURSE IM AI ND LCHA K MOO Y BOTANICAL GARDEN PAR OLON BOTANICAL GARDEN SH C EN DELHI AEROCITY KAILA GRE AMITY NOIDA ACE LA HAS RU PL NEH SO. T. UZ K JA I. IHA ANDIR AJI M GAR KALK ATE A NA EST VIY AN MAL OH M SAKET D ABA LAK UGH AR T QUTAB MIN GARDEN DILSHAD JHILMIL KARKAR DUMA SHAHDAR A MANSARO VAR PARK PREET VIHAR NIRMAN VIHAR YAMUNA BANK LAXMI NAGAR PARK SEELAMPU R SHASTRI ZARI TIS HA ND VI A AN HUDA CITY CENTRE T. EX R HA AY U R IFFCO CHOWK M KU H HA R JA SOL AV IHA R VIH AR JOK ASHRAM HAL VI AP N OK D P IS H-III HL UR HWA R N A I AG IT A VI GO KALINDI KUNJ SA R NEHRU PLACE CHIRAG DELHI G. K. ENCLAVE PANCHSHEEL PARK AM PU R K. R. ARJAN GARH SRINIVASPURI AR NAG OJIN I SAR A RK NI SULTANPUR GHITORNI SOU EXT TH N A M PL IKA AC JI E KA CHHATARPUR JAM AR NAG IA JOK HAL AR A AG IB OT M SAN NACHARYA GURU DRO SIKANDAR M G ROAD PUR VA DWARKA SEC 21 ARP BAD UR T SB RI HA VI NGASH PULBA R PRATAP NAGA SHASTRI NA GAR K RL O DE IN SHADIPU R TEL NA GA R RA JEN DR AP L KA RO LB AG H AN DW BH C 8 SE MU A TV DW K AR R -9 EC IHA S KA AR PO RT A DW A UL HA -10 EC AS RK AIR AR DW I. G. AIR D. PO RT D -11 EC S KA PA RAJOURI GARDEN TAGORE GARDEN RAMESH NAGAR MOTI NAG AR KIRTI NAG AR AGAR SUBHAS N TILAK NAG NAWADA AR NA T UTTAM N AGAR WES UTTAM N AGAR EA ST JANAKPU RI WEST JANAKPU RI EAST KA AN IP DH ND RAJ MU MOR DWARKA KA AR DW MN AR DW PALAM -12 C SE AG -13 EC S KA PR C SE RD K B K OW H VC KA DABRI MOR DHSRATH PURI -14 AR -2 B RI C KPU A JAN AZ JI RA DWARKA DW ` YAMUNA VIHAR AD SHALIMAR BAGH S JANAKPURI WEST R DPU N UKU