DELHI METRO RAIL

CORPORATION(DMRC)
AIRPORT LINE(ORANGE LINE)

Presented By:Supriya Sharma

MBA III-B

Introduction of DMRC Orange Line

The Delhi Metro Rail Corporation (DMRC) was established in the mid-1990s as a company
owned 50 percent by the national government and 50 percent by the local Delhi
government.

Construction of the metro system began in 1998. The first line opened in 2002.

Due to increasing traffic to the airport, DMRC proposed to build a dedicated and high speed
metro line to the airport.

The line would reduce the travel time between New Delhi Railway Station and the airport
to 18 minutes.

This journey could otherwise take two hours by road due to traffic .

Objective of the Project

To reduce the time duration of journey (i.e.

from 2 hours to 20 minutes.)

To reduce the traffic.

To make journey more comfortable.

Duration of the Project

months

Project Budget
1.26 Billion US Dollar
( Rs.8353 Crore)

2 years, 11

Work Breakdown Structure (WBS)

Fabrication Area
Survey

Fabrication of
Girder/Beam

Layout
Excavation/Digging

Girder/Beam

Pilling

Platform Slab

Footing
Structure
Pair(Column)

Sheeting

Finishing

Fabrication of Orange Line

Work

Task

Preceding
Activity

Duration(Week
s)

Survey

---

Layout

Excavation

Pilling

Footing

Fabrication of Girder

---

Structure Pair(Column)

Girder

Platform Slab

Sheeting

12

Finishing

CPM Diagram
2

B(2)

C(2)
5

D(1)

E(1)
7

4)
(
A

1
F(
3)

H(3)

I(2)

10

J(12)

Critical Path:F

Project Duration:3+3+2+12+1=21 Weeks

11

K(1)

12

G(1)

Types of Risks and Strategies for Managing Them

Construction Risk -Including time and cost overruns due to contractor default, was borne by the operator.
Overruns due to delays completion and handover of civil works was borne by DMRC.
Operating Risk -Including design of the system, procurement, and O&M of equipment and systems, was borne
by the Operator. Design risks for overall route plan and the civil works undertaken were borne by the DMRC.
Performance Risk -Borne by the Concessionaire (excepting for Civil Works) through a Performance Guarantee,
initially valid for a period of 5 years and renewable from time to time.
Investment Risk -Shared between the two parties, since DMRC was responsible for civil works and the
Concessionaire for costs of procuring, installing and operating the rail link system
Revenue Risk -Including demand risk was borne by the Concessionaire since revenues were based on fare box
collections and revenue from advertisements, lease of commercial spaces etc. DMRC did not assure fixed
returns. Besides the Concessionaire had to pay DMRC a fixed annual concession and license fee irrespective of
the revenue generated.
DISPUTES RESOLUTION MECHANISM
All disputes were to be resolved amicably through direct discussion between the parties involved (with the help
of the independent oversight body where needed). In the event of non-resolution the dispute was to be settled
through arbitration processes as prescribed under the Arbitration and Conciliation Act, 1996.

Contractors
1) Reliance Infrastructure Ltd. of India &
2) Construcciones y Auxiliar de Ferrocarriles, S.A. (CAF) of
Spain

Reliance Infrastructure Ltd. held a 95 per cent stake in

DMRC Orange Line, with the remaining 5 percent held by the
Spanish firm.
Debt was arranged by the lead banker Axis Bank along with
India Infrastructure Finance and eight other banks.
The debt to equity ratio was 70:30

Source: www.google.com
Delhi Airport Metro Express_Rfoster.pdf
Wikipedia
http://www.railnews.co.in/category/metro-railsystems/delhi-airport-metro-express-ltd-new-delhi/