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Feasibility Report on Integrated Multi Modal Mass Rapid Transport System of Delhi
(IMMRTS) prepared by RITES recommended for three-component system comprising of Rail
corridors, Metro corridors and dedicated bus way totalling to 184.5 Km and further addition of
14 km increased to 198.5 km. The total network contains 16 sections to be implemented in a
sequence based on passenger kilometer carried per kilometer length of each section.
The first phase of DM consists of 3 corridors divided in to eight sections with a total route of
65.1 kms, of which 13.17 kms has been planned as an underground corridor, 47.43 kms as
elevated corridors and 4.5 kms as a grade rail corridor. The second phase covers 53.02
kilometers of which the underground portion, grade and elevated section are expected to be
8.93 kilometers, 1.85 kilometers and 42.24 kilometers respectively. The construction of the
first phase of DM was spread over 10 years during 1995-96 to 2004-05 while that of the second
phase, which started in 2005-2006 is expected to be complete in the year 2011. The total capital
cost of DM at 2004 prices for Phase I and Phase II was estimated as Rs. 64,060 and Rs. 80,260
million, respectively. Phase II was further extended to some areas of Noida and Gurgaon
belonging to the neighbouring states of Delhi. Phases III and IV of DM will cover most of the
remaining parts of Delhi. Table 1 provides some of these details.
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pollution in Delhi. The Delhi Metro provides multiple benefits: reduction in air pollution, time
saving to passengers, reduction in accidents, reduction in traffic congestion and fuel savings.
There are incremental benefits and costs to a number of economic agents: government, private
transporters, passengers, general public and unskilled labour.
STRENGHTS
WEAKNESSES
Metro considerably more expensive than the bus.
Less ridership than estimated.
High development cost
Displaced many economic backward people.
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BENEFITS OF DELHI METRO ON OTHER MODES OF TRNSPORT
POST PROJECT
Delhi Metro aims at reducing this reliance on other modes of transportation. With the upcoming
of Delhi Metro the number of buses have reduced to 11000, as commuters prefer to travel by
metro instead of any other means due to the reasons like: heavy traffic, time consuming, high
level of exhaustion etc.
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distance saved by the relevant emission coefficient for different pollutants for each category of
vehicle.
Estimates of reduction in distance travelled every day due to the decongestion effect
are obtained for cars, two-wheelers and buses as 9.18 kms, 7.65 kms and 69.72 kms,
respectively.
The estimates of air pollution loads due to decongestion avoided due to Metro. The
monetary value of these pollution loads are estimated using the estimates of shadow
prices of pollutants made in some recent studies in India
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The vehicular technology complying with Euro II norms or using CNG as a fuel could have
similar effects on the air pollution in Delhi as estimated for the Metro. The monetary value of
the air pollution has reduced drastically with the upcoming of Delhi Metro
The estimated monetary value of reduction in air pollution due to coming of metro can be
explained with the help of the following table.
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Costs and Benefits to the stakeholders as given in the study are:
1. The government
The net benefits to the government in 2011-12 are 31760 million Indian rupees at 2004 prices.
2. The passengers
The cost to the passengers is only in terms of cost of fare of metro. The passengers pay a higher
fare for the metro than public bus transport at INR 35280 million.
The overall benefits to the passengers is estimated as 22440 million Indian rupees.
The private transporters face loss of revenue from displaced private buses of INR 9410 million.
The benefits to the transporters is savings on maintenance and operating costs estimated at INR
6550 million.
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4. Unskilled labour
Total benefits to unskilled labour employed in construction and maintenance estimated at INR
316.4 million.
5. General Public
Costs to general public is in terms foreign exchange cost equivalent to 60% of initial
investment.
Benefits:
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ANALYSIS
a) This CBA analysis should have been carried out using UNIDO approach technique
because here no method has been specified, since domestic prices are taken into
account but still all the aspects of UNIDO are not taken into account. Shadow Prices
and Domestic prices are used for analysis but step wise calculations are not being
shown in the study.
There is an ambiguity in the study whether the NPV or net benefits are calculated
are calculated by using market prices or Shadow prices.
c) The Expenses part has not been explained, not even the expenses heads are
explained, and directly net benefits are stated. This makes this study much more
opaque and ambiguous.
d) The Net Value of fixed costs and variable costs are not explained.
e) No financial report data is analysed to back the analysis. (If analysed then not stated
in report)
f) There could have been many other benefits like reduction in road-rage, faster
transfer of goods and its effect on business of people etc.
The study does not incorporate any relevant information in this stage of UNIDO
approach.
h) The final step regarding Adjustment for merit and De merit goods etc. is not carried
out clearly in the Analysis but, it is assumed that they have taken the economic value
of decrease in pollution into account considering this step.
The study neglects both the stages of UNIDO. Under Adjustment for the projects
impact on income distribution, relation between marginal utility of income and change
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in income has to be calculated to finally arrive at a net impact which is to be added to
present benefits calculated at stage three.
Concluding Remarks
The financial cost-benefit ratio of the Metro is estimated as 2.30 and 1.92 at 8 percent and 10
percent discount rates respectively while its financial internal rate of return is estimated as 17
percent.
The incremental changes in the incomes of various economic agents: passengers, transporters,
public and government and unskilled labour due to the Metro could be estimated by considering
the Delhi economy with and without the Metro. It is found that there are income gains to the
government, public, passengers and unskilled labour while there are substantial income losses
to the transporters because of the Metro.
The study appears to be poorly undertaken with no strict adherence to the stages laid out in the
UNIDO approach. There is no clarity on the NPV analysis and skips in total three stages of
UNIDO.