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JASDEEP SINGH 111018 P SWETHA 111030 VAIBHAV BAWEJA 111056 VINAY DHOK 111059
Shivaji Stadium(CP)
2 Km
Underground
Dhaula Kuan
8.5 Km
Elevated
15.8 Km
Underground
19.2 Km 22.7 Km
Underground Underground
Lack of Good Public Transit System Passenger movement to/fro airport by private vehicles
Concessionaire
Special Purpose Vehicle (SPV) Delhi Airport Metro Express Pvt. Ltd. (DAMEPL), a Special Purpose Vehicle formed by Reliance Infrastructure in consortium with CAF of Spain
Built Operate Transfer (BOT) Rs 946 crores Provided by Authority
Length :
Concession Period : Award Date :
Parties Involved
Sl No. 1 2 Company Name Delhi Metro Rail Corporation Reliance Infrastructure Role played in project Authority Concessionaire - 95% of equity in project, EPC Contractor 3 CAF, Spain Concessionaire - 5% equity in project, Supply of metro cars 4 5 6 Siemens, Faiveley Indra, Spain Alcatel Supply of automatic doors for stations Supply of ticketing machines Communication Systems
Terms of Contract
Obligations of Authority (DMRC) Providing right of way and necessary clearances prior to handing over to Delhi Airport Metro Express Pvt Ltd Concessionaire Scope (DAMEPL) Design, Procurement of systems and equipment, Developing, Financing, Installing, Operation, Maintenance and eventually Transfer of systems related to the Delhi Airport Express Payment of Concession fee to DMRC during the operation of the service Ownership for risks: Traffic Risk Revenue collection risk Project completion risk Operation Risk the concessionaire had to pay a concession fee of Rs51 crore per year The Revenue Sharing arrangement was as follows: 1% of gross revenue to be paid from first year to fifth year 2% of gross revenue to be paid from sixth year to tenth year 3% of gross revenue to be paid from eleventh year to fifteenth year 5% of gross revenue to be paid from fifteenth year to expiry
Acquisition and clearing of land to be handed over to concessionaire Tunnelling and Civil Works for Underground segment, which will be handed over to DAMEPL
Demand Forecast
S. No. Mode of Transport Time Price Remarks
Cabs
1:45 hr
Rs. 600
Bus
2:15 hr
Rs. 50
Auto-Rickshaw
2:00 hr
Rs. 250
DMRC
1:00 hr
Indigo 26%
Airport line express metro cater to the passenger whose flight is in day time. More demand for night flights as cabs are difficult/unsafe International flights are scheduled at night. Metro not functional in night 59% of traffic flies from Terminal 1-D. These consumers are price sensitive low cost carrier users It is difficult to reach Terminal 1-D with the help of airport line metro
WHAT HAPPENED?
August 2006 September 2007 January 2009 March 2009 November 2009 August 2010
Delhi Metro Rail Corp Ltd. finalise the detailed project DMRC awarded first contract for construction DMRC awards 30 year build operate transfer contract to the Reliance. Reliance Infrastructure Ltd (R-Infra) formed a special purpose vehicle named Delhi Airport Metro Express Pvt. Ltd to build airport line from new Delhi railway station to IGI airport. DMRC completed 95% of civil construction work and was ready to hand over the site to R- Infra for laying tracks. R-Infra misses first deadline to start the operations and one month time was gives as DMRC delayed in handing over the station. The express line failed to get clearance from commissioner Metro Rail Safety (CMRS). DMRC fined R-Infra Rs.37.5 lakh per day for missing the deadline. CMRS gives safety clearance to the airport express, except for the Dhaula Kuan and Delhi Aerocity stations. The airport line started its operation from New Delhi railway station to IGI airport.
September 2010
August 2011
CMRS grants safety clearance to Dhaula Kuan and Delhi Aerocity stations
December 2011
DMRC managing director meets R-Infra executives to discuss the areas that need improvement.
DMRC chief expresses dissatisfaction with the performance of operations. DMRC hire consultants to conduct a detailed inspection of the tracks due to safety concerns.
July 2012
The R-Infra suspends services indefinite duration for safety repairs. The ministry of urban development form a two member committee to probe the defects in the civil construction of the railway line
R-Infras Stand
Civil defects were present from the beginning and R-Infra had already pointed out to DMRC
DMRC did not work upon the issues The project was not handed over at scheduled time Conditions are not suitable for operation
540 out of 2100 bearing were defective Supporting clips was found damaged Speed slowed down to 80 from 105 over security concern Operation was getting risky
There are no serious damages so as to call off the operations All the issues are under acceptable level R-Infra are using civil defects as exit route
They do not want to go further in DMRC forced procurement from PPP approved vendor Gurgaon extension is scrapped
Issues in Contract
All risks passed on to concessionaire DMRC assumed the role of regulator Penalty on Reliance Infra by DMRC for delay Concession fee and revenue percentage from handover stage
Quality
Civil construction done by DMRC DMRC forced procurement from approved vendor only Seepage and mud was issue in tunnel 90% of supporting clips has been changed Speed slowed down to 80 from 105 DMRC estimated Rs.20 Crore budget for repair
Exit Route
If R-Infra defaults, it will pay 20% of loan with equity If DMRC defaults, it will pay 130% of debt and equity
Closing Note
E Sreedharan suggested the Govt. that PPP model wouldnt work
Reliance Infra has over estimated market demand for express line DMRC is not only the authority in the project but also is trying to assume the role of a regulator Both R-Infra and DMRC are reluctant to work under PPP with each other Reliance floated a SPV and transferred the losses to the SPV. This puts the doubt on the intension of the Reliance After the operating the metro for over a year, Reliance closed the operation citing the safety issues Maintenance estimates by DMRC is Rs20 crore which is comparatively a small fee compared to the capital invested on the project Reliance is trying to exit PPP contract by blaming DMRC for adopting poor construction measures