Metro Rail
Metro Rail

The Need

Traffic Congestion  on Delhi Roads

Delhi, the National Capital with a population of about 12 million is, perhaps, the only city of its size in the world, which depends almost entirely on buses on it sole mode of mass transport.bus services are inadquate and heavily over-crowded. This sitution had led to proliferation of personilsed vehicles, so much so that Delhi has more registered vehicle than the total number of vehicles in Mumbai,Calcutta and Chennai put together. Nearly 70% of these are two wheelers. The result of extreme congestion on the road, ever slowing speeds, increasing accident rate, fule wastage and enviromental pollution . Delhi has now become the fourth most city in the world, with automobiles contributing more than two thirds of the total atmospheric pollution. Pollution related health peoblems aer reaching disconcerting levels.

To meet forecast transport demand for the year 2001, the number of buses will have to be atleast dobuled and personlised vehicles will grow three fold. This sure to lead to futher worsening of the levels of congesting and pollution, Which had already crossed acceptable limits in many part of the city.

Immediate steps are, therfore, needed to improve both the quality and availabilty of mass trasport service. This is possible only if a rail-based mass transit system, which is non-polluting, is introduced in the city without futher delay.

Delhi MRTS Project

Delhi Metro

With a view to reducing the problems of Delhiā€™s commuter, the launching of an Integrated Multi Mode Mass Rapid Transport System for Delhi had long been under consideration. The first concrete step in this direction was, however, taken when a feasibility study for developing such a multi-modal MRTS system was commissioned by GNCTD (with support from GOI) in 1989 and completed by RITES in 1991. It is recommended a 198.5 km predominantly rail based network, with first phase to cover a length of 55.3 km, report was completed by RITES during 1995.

Delhi Metro

The present proposal of modified first phase of the Delhi MRTS project approved by the Union Cabinet will cost approximately Rs. 4860 crores (at April, 1996 prices) and will comprise a network of 11 km to underground (METRO) corridor along with 44.30 km of elevated / surface (RAIL) corridors. It will have 45 station in all. The project will require the acquisition of about 340 ha of land, of which about 58% is government land, 39% is private agricultural land and 3% is private urban land . The project is been implemented through a joint venture company (viz., Delhi Metro Rail Corporation Ltd.) set up on 50:50 partnership basis by GOI and GNCTD in May, 1995 and will be completed within 10 years.

Economic Benefits

The Delhi MRTS is essentially a "social" sector project, whose benefits will pervade wide sections of economy. The modified first phase will generate substantial benefits to the economy by the way of:

  • Time saving for commuters
  • Reliable and safe journey
  • Reduction in atmospheric pollution
  • Reduction in accident
  • Reduced fuel consumption
  • Reduced vehicle operating costs
  • Increase in the average speed of road vehicles
  • Improvement in the quality of life
  • More attractive city for economic investment and growth

Economic IRR of the project works out to 21.4%, even though the financial IRR is less than 3%.

Financing Plan

As urban MRT projects are mean to provide a safe, speedy and affordable mode of travel to the commuters, they have not generally been found to be financially viable in the most cities of the world, despite their large economic benefits. MRT fares cannot be fixed purely on the basis of commercial principles, without drastic decrease in ridership and defeating the very object of setting up such mass transit system. Hence, the city dwellers must necessarily supplement the contributions to be made by the system users to meet the costs of setting up. as well as running the system. Delhi being National Capital and international city, the GOI and GNCTD must also contribute to meet part of these costs. It has accordingly been decided that the project will be financed by way of equity contributions from the GOI / GNCTD, soft loan from the OECF (Japan), property development revenue and certain decided levies / taxes on the city dwellers.

The loan will rapid partly from surpluses from the box revenue, partly through dedicated levies / taxes in the NCT.

The financial plan of the project has been approved by the GNCTD and GIO on 24.7.1996 and 17.9.19996 respectively.

S.No. Source of Fund Percentageof Total Cost
1. Euity contribution from GOI& GNCTD 15% each
2. OECF (Japan) Loan Approx. 56%
3. Revenue from Property Development Approx. 6%
4. Subordinate Debt towards Cost and Land Approx. 8%
The above financial plan is based on :
  • Debt Equity ratio 2:1
  • Fare: Base rate rs. 5.00 (at April, 1995 prices) per passenger trip of 7.12 km.







For Further details please visit website of Delhi Metro Rail Corporation

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Last Updated : 23 Mar,2014