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effect of Delhi metro on other transport systems. This research paper concludes with justified results that the Delhi Metro is an economically feasible and time saving venture of DMRC (Delhi Metro Rail Corporation). ridership in other modes of transportation in coming years. It will help in reducing traffic and pollution in the capital and more important save a lot of time for the daily commuters. etc. pollution and high fuel consumption. Considering all this ―THE DELHI METRO‖ comes as a huge relief for the people of Delhi. Objective To analyze the strength and weakness of the Delhi Metro from socio-economic perspective To model the demand-supply curve and various revenue functions To estimate the break-even for Delhi Metro To understand the effect of Delhi Metro on other modes of transportation To study the effects of common wealth games on revenues Scope of the work This analysis will help the other metro proposals in pipe-line to streamline the process of planning and assist the Delhi Metro to improvise its revenue generation & further expansion. Considerable effort has been put into understanding the economic viability of the Delhi Metro. There are no doubts about the social benefits of the Delhi metro. The success of the Delhi Metro has already triggered similar ventures in other Indian cities like Mumbai and Bangalore. Page | 1 . revenue generation from advertising and property development.Abstract Being the capital city of India. A lot of analysis is done taking into consideration past and present data. Cost-volume profit analysis. the Delhi Metro has been analyzed from the economic point of view. It also provides the assistance for Delhi government to plan for the other modes of transport like Light Rail Transit System. it does not come as a shock that New Delhi is the most populated city in India in term of people and vehicles. effect of common wealth games on Delhi metro. Mono Rail and dedicated bus corridor. Modeling of revenue functions. Demand-supply analysis. The population of Delhi and vehicles on road are ever increasing leading to problems like traffic. As a part of this project. The various analysis are SWOT . Break-even point. and justified future assumptions like effect of common wealth games on ridership of Delhi metro. ridership on full functioning of two phases of the metro project.
......................................................................................................................................................................................................................................................................................................................................................Table of Contents About Delhi Metro ................................. 6 Modeling of Revenue functions ............................................. 15 References ..... 11 Saving of Passenger time with Metro and without Metro ...................................................................................................................................................................... 12 Conclusion ...................................................................................................... 3 Need for Metro ...................................................................................... 11 Savings in fuel consumption .................................................................................................................................................................................................................................................................................................................................................. 9 Using Cost-Volume Profit Analysis method .............................................................. 5 Demand – Supply Curves ...................................................... 7 Break-Even Point .................................................................. 3 SWOT Analysis ..................................... 4 Literature Review...... 10 Effect of Delhi Metro on other modes of transport................. 11 Effect of Commonwealth Games on MRTS ............. 15 Page | 2 ....................................................................................................................
respectively. The growing demand for the transport in mega cities has serious effects on urban ecosystems. which is introduced in the country for the first time. but the model itself has become the standard for the development of other systems across India. 80. The Metro will totally transform our social culture giving us a sense of discipline. And yet the current metro system. autos. The total capital cost of DM at 2004 prices for Phase I and Phase II are estimated as Rs. which started in 2005-2006 is expected to be completed by 201011. Ticketing and passenger control are through Automatic Fare Collection System. The success of this transport network that began operations in December 2002 now sees it as not only the public transportation of choice. or Delhi Metro as it is known. it is equipped with the most modern communication and train control system. It has state-of-art air-conditioned coaches. Phases III and IV of DM will cover most of the remaining parts of Delhi and even extend its services to some areas such as NOIDA and Gurgaon belonging to the neighboring states of Delhi and come under the National Capital Territory. adequate number of escalators has been installed at the metro stations. This population growth has two components in it: 1) the normal population growth and 2) the movement of huge number of working people from other parts of the countries. feeder buses for metro stations are operating. 64. By the time Phase IV is operational. In short. especially due to the increased atmospheric pollution. Recently Delhi has become the most populous city in India according to a survey with a population of approximately 14 million. Unique feature of Delhi Metro is its integration with other modes of public transport. The increase in per capita income due to healthy economy and the growing population in urban areas lead to steep increase in ridership on the road (two-wheelers.060 and Rs. Travelling in Delhi Metro is a pleasure with trains available at a frequency of 5 minutes at off-peak hours and 3 minutes at peak-hours.260 million. the Delhi Metro will have found its place ahead of the London system as the largest public metro rail network in the world. known as Phase I. is itself set to grow with another three phases. Delhi Metro is a trendsetter for such systems in other cities of the country and in the South Asian region. enabling the commuters to conveniently interchange from one mode to another. 2015 and 2020. An Page | 3 . 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. Entries and exits to metro stations are controlled by flap-doors operated by 'smart-cards' and contact less tokens. For convenience of commuters. Delhi‘s extended population is approaching 22 million people. cars and public transport buses). Delhi Metro is a world-class metro. scheduled for completion in 2010. thus in turn lead to tremendous traffic congestions on the urban road. To ensure reliability and safety in train operations. and has created crowded conditions with extremely high demands on the public transportation element. This led to the development of the Delhi Mass Rapid Transit System. Need for Metro Today. To increase ridership of Delhi Metro. cleanliness and enhance multifold development of this cosmopolitan city.About Delhi Metro The capital city of New Delhi lies within India‘s second largest metropolitan area simply called Delhi. urban area experiences the drastic population growth. Today.
reduction in traffic congestion and fuel savings.ecologically sustainable urban transport system could be obtained by an appropriate mix of alternative modes of transport resulting in the use of environmentally friendly fuels and land use patterns. hunger strikes. Increase in cost of the parts. general public and unskilled labor. Reduce congestion on roads making movement easier. Ultra-modern technology and visually striking design. time saving to passengers. and protests. SWOT Analysis Strengths Cost-effective mode of transport for the general public of Delhi. passengers. negotiations and legal action have all been initiated. The next Metro line in the city will be 10-15 per cent cheaper than the previous phases based on the learning curve theory. The voluntary International Standardization Organization (ISO) 14. dynamic and modern. competitive and ‗World Class‘. petitions. The success of the Delhi Metro has encouraged other Indian cities to seriously attempt to introduce Metro systems. The introduction of CNG in certain vehicles and switching of some portion of the transport demand to the metro rail have resulted in a significant reduction of atmospheric pollution in Delhi. The Delhi Metro provides multiple benefits: reduction in air pollution. Less ridership than estimated. Safer Mode of transport for Women. Risk of cost overruns and ridership shortfalls. Difficulties in acquiring land and Opportunity Revenue from property development and advertisements. High development cost Displaced many economic backward people. Security threat. Weakness Metro considerably more expensive than the bus. Reduce atmospheric pollution to a great level making the environment healthy. Tax rebate given to the DMRC because of the 2010 Commonwealth Games in Delhi. Page | 4 . Threats A struggle on the part of those being displaced. reduction in accidents.000 certification. Potential to achieve higher ridership. There are incremental benefits and costs to a number of economic agents: government. Reduce travel time: One hundred per cent punctual operations. private transporters.
2005. Kashmere Gate – Central Secretariat has been commissioned on 3.Central Secretariat Vishwavidyalaya – Kashmere Gate section has been commissioned on 20.7.2006 The Phase II of the project will consist of the following: Vishva Vidyalaya – Jahangir Puri Central Secretariat – Qutab Minar Shahdara – Dilshad Garden Indraprastha – New Ashok Nagar Page | 5 .10. Line 1 Shahdara – Rithala Shahdara-Tis Hazari section has been completed and commissioned on 24.Literature Review The social cost-benefit analysis of Delhi Metro has been already done by the people of institute of economic growth. Tis Hazari – Inderlok section has been commissioned on 3.7 percent.12. Line 2 Vishwavidyalaya . reduction in accidents.6 million. Inderlok – Rithala section has been commissioned on 31. foreign exchange and unskilled labor as well as the social time preference rate for the Indian economy for a study commissioned by the Planning Commission.Indraprastha commissioned on 11.12. Its financial internal rate of return was estimated as 17% while the economic rate of return is 24%. Barakhamba Road .4.2002. Estimates of the social benefits and costs of the projects were obtained using the recently estimated shadow prices of investment. 419979. The estimated net present social benefit (NPSB) of the Metro at 2004-05 prices and the 8 percent social time preference rate for the Indian economy was Rs. Extension of Line 3 Extension into Dwarka sub-city commissioned on 1. reduction in traffic congestion and fuel savings in terms of monetary term. Line 3 Barakhamba Road – Kirti Nagar – Dwarka Barakhamba Road – Dwarka section has been commissioned on 31.12. time saving to passengers. The findings were: The financial cost-benefit ratio of the Metro was estimated at 2.2005. The social rate of return on investment in the Metro was calculated as 22. This could be explained by the provision of incremental income to the Delhi public by Delhi Metro.2004.2003.2004. Also they made an attempt to measure the costs from Phase I and Phase II projects covering a total distance of 108 kms in Delhi.11.92 at 8% and 10% discount rates respectively.3. They tried to measure all the benefits provided by Delhi Metro such as reduction in air pollution. Government of India and done at the Institute of Economic growth.2006.30 and 1.
Social Cost-Benefit Analysis of Delhi Metro.e. from their desire or want for the commodity backed by the income) to purchase the commodity.07 Crores Assumption #2: The services provided by the Delhi Metro can meet this annual ridership and Delhi Metro will not invest any further on rolling stock unless otherwise it is required. The demand for a commodity arises from the consumer‘s willingness and ability (i. Expected annual ridership in 2006 : 121. Yamuna Bank – Anand Vihar ISBT Kirti Nagar – Mundka (along with operational link to Inderlok) The second phase of Delhi metro will be essentially an extension of the 1st phase. Delhi metro decided to keep the fare rates same till 2006. For example a person who had to commute the distance between Qutab Minar and Jahangir puri earlier when only phase 1 was operational had to go to central secretariat using a different mode of transport and then catch a metro till Vishwavidyalaya and then again take a different mode of transport to reach Jahangirpuri. Assumption #1: Though the above Fare Rates are the base values in the year of 2002.But the same person after the completion of phase 2 will catch the metro directly from Qutab Minar and reach Jahangirpuri. as the services demanded per time period increases. Meenakshi Ghosh and Rashmi Singh. In case of Delhi metro. the passengers are willing to pay lesser amount. Kishore Kumar Dhavala. This explains the fact that the ridership will not go up steeply when phase 2 is operational because the people who had been using the metro earlier would still be using it but for a longer distance now and will be paying more money for the increased distance travelled Demand – Supply Curves The demand for a commodity faced by the firm depends on the size of the total market or industry demand for the commodity. Page | 6 . which in turn is the sum of the demands for the commodity of the individual consumers in the market. October 2006. Also consumer demand theory postulates that the quantity demanded of a commodity per time period increases with a reduction in its price. Table 1: Fare Sensitivity of Ridership on the Metro (2006) Fare Rate (In Rs/Passenger trip) 3 4 5 6 100% 90% 75% 50% % Ridership *source: M N Murty. Assumption #3: The services provided by the Delhi Metro remains same throughout the year.
It implies that Delhi Metro acts like a Monopoly since there is no metro rail service provider and it is managed by the government. an individual will be willing to pay on an average Rs. This can be explained by the increase in ridership (majorly due to re-distribution of ridership between various transports). in Crores Figure 1: Demand Supply curve in 2006 Figure 2: Change in Demand In the above figures. 9 8 Change in Demand across the years 6 5 4 3 2 1 0 50 100 150 200 Demand 7 6 5 D2014 D2006 Supply A B C 2006 2010 2014 A Supply 4 3 2 1 0 50 100 150 Supply 200 Annual Ridership. The investment expenditures made by the project in one of the years during its life time constitutes the purchase of capital goods. On the other hand. At the same time. material inputs for maintenance and payments made to skilled and unskilled labour. Modeling of Revenue functions Delhi Metro as a commercial organization operates with the objective of maximizing the profit. advertising revenue and property development revenue per passenger also will decrease. 7 Demand-Supply curve in 2006 Rs. Rs. in Crores Annual Ridership.6/trip if the ridership is 50% and Delhi Metro also will charge the same so as to maximize the revenue per year. point A. cost of acquisition of land and material inputs for project construction. Figure 2 shows the change in demand across the year. 3/trip if the ridership is 100%. With reference to the demand-supply curve in 2006. But in real time. The financial benefits from the Metro are the Page | 7 . So it is required to consider the above before proceeding with any financial evaluation of a project. So.Individual demand curve can be obtained by plotting Fare Rate/Passenger trip versus the ridership in a particular year. the excess expenses incurred due to the increase in ridership can be overcome by the other revenues (advertising and property development revenues). change along the supply curve indicates that Delhi Metro follows the incremental pricing strategy to overcome mainly the maintenance cost incurred. It was assumed that the change in demand is proportionate to the increase in ridership. B & C indicates the fare rate/trip at 100% ridership for a particular year. The financial capital cost of DM represents the time stream of investment made by it during its lifetime. it may decide to change the price after a span of years. Also these points are the equilibrium points for a particular year and are the minimum fare rate that the Delhi Metro would like to charge. as the ridership per year comes down. one will be willing to pay Rs. Why because. The operation and maintenance (O & M) cost of the project constitutes the annual expenditure incurred on energy.
83 726.22 181.6 2442. Meenakshi Ghosh and Rashmi Singh.2 3489.7 16543.7 13330. Also. Assumption #4: Contribution from Property Development to Total Revenue is 39%.12 463. one can formulate the revenue equations for the two scenarios mentioned above.12 4.52 1894.60 9234.21 394.9 Year 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Revenue 6772.8 1001.24 4.89 4. Revenue streams for Phases I and II.2 1573.5 956.20 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Using the above data.40 890.7 12792.57 3165.3 Year 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 O & M cost 1048. October 2006.82 809. as reported by RITES.2 8280.08 1088. in Rs.24 647.53 3542.8 3285.1 Year 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 O & M cost 2014.53 2099.78 3.01 4.23 Total 1715.1 1150.7 11606.7 11912.63 4.7 4451. Table 4: Estimated Total Revenue Break Up Revenue.6 874.2 7428.34 979.7 15465.31 2881.7 16394.95 5471.8 2604. Social Cost-Benefit Analysis of Delhi Metro. 2005-2010 is Pre-common wealth games and 2010-2040 is Post-common wealth games.7 367. in Crores 121.6 10624.36 914. in Crores Year Annual Ridership.4 1503. both the phase 1 & 2 will be fully operational.3 1437.03 1908.3 338.67 3.11 131.38 2309.39 148.93 735.9 4199.30 1735.5 914.2 4105.28 683.37 4.00 6220.2 800.44 769.70 5627.90 6772. Assumption #6: Fare/passenger trip increase proportionately with the increase in annual ridership.2 11555. as reported by RITES (1995b. 3. 2005b) have been taken.7 352.1 4963.7 Year 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 Revenue 12868.22 176.55 1433.1 3376.91 1577.20 7428. That is.05 1303.7 13947.06 161.7 12389.2 3711.88 3857.25 2794.56 685.7 Table 3: Estimated O & M cost Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 O & M cost 312.70 4451.2 1940.3 *source: M N Murty.66 166.3 325.52 4825.66 192.00 3.37 186.39 3.82 946.7 5627 6220.37 544.8 3095.60 2442.3 5084.93 2343.7 12322.7 13417.2 2756.30 5084.40 968.69 Property Advertise developm ment nt 668.2 9912.7 15594.53 3.46 2088. by plotting Annual Ridership versus the various revenues.8 1731.6 9234.20 3711.9 2125. it was given that by 2010.7 11971.6 3944.25 3.7 1212.72 Fare per passenger trip.24 502.70 2182.37 171. Page | 8 .83 2821.73 142.61 157.30 152.32 2540.7 1376.6 836.8 1649.73 4255.07 126.20 1940.4 1098.10 4963.58 2536.5 2462.12 3.6 1819.7 2182.7 14768.38 1077.49 815.5 1914. The above data has been divided into two scenarios for the sake of analysis.20 4105.29 136.96 577.32 1185.10 197. Kishore Kumar Dhavala.09 863.7 14654.90 Traffic 363.2 1715.76 4.06 810. Table 2: Estimated Total Revenue Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Revenue 1505.49 4.1 3708.4 782.2 2919.10 3376. Assumption #5: Growth rate of Property Development Revenue is ~ 10% per annum.7 14047.06 427.20 8280.traffic earnings and the revenues from advertisement and property development.07 611.
Therefore has not made an economic profit or a loss. A better understanding of break-even—for example in this case.352 R Advt 1E 25 * N 3. construction cost. expressing break-even ridership as a percentage of actual revenues—can give us a chance to understand when to expect to break even. Total Cost = Fixed Cost + Variable Cost Fixed Cost: Capital Cost (land cost. N: Annual Ridership *All revenues are in rupees. costs and profits. etc) Variable Cost: Operation & Maintenance cost Page | 9 . rolling stock.258 R Advt 4E 19 * N 3. The break-even point is one of the simplest yet least used analytical tools in management. specifically cost accounting. the break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain.831 Scenario 2: (Post-Common Wealth Games) Revenue from the traffic Revenue from Property & Development Revenue from Advertisement Where. It helps to provide a dynamic view of the relationships between sales. Total Revenue : : : : RT 2E 09 N 2 RP&D 1E 20 * N 3.133 TR RT RP&D R Advt Break-Even Point In economics. and one has "broken even".Scenario 1: (Pre-Common Wealth Games) Revenue from the traffic Revenue from Property & Development Revenue from Advertisement : : : RT 2E 09 N 2 RP&D 3E 12 * N 2.
94 991.48 215.09 8275. in Crores Total Cost.83 -3497.73 6187.49 3947.47 8789.94 33208.40 3999.15 883.41 15482.23 9597.20 3518.92 43407.76 203.30 21279.84 15175.63 157.89 27581.40 2960. the fare rate per passenger trip is to be Rs.79 5195.45 16195.48 3926.23 16527. in Crores 2964.68 5703.57 -8171.33 16096.13 -10856.25 176.44 1483.38 36307. the fare rate per passenger trip should remain constant. Figure 3: Break Even Point Economic Profit: The profit earned after the adjustments made towards all the costs (Explicit Costs & Implicit Costs) or simply total revenue minus total costs.49 2638.91 10716.17 10934.16 15544. in Crores 152.87 -2435.31 Economic Profit.47 13661.54 30248.89 228.133 ) + (1E 20 * N 3.28 5194.27 1408.39 5668.49 17070.72 271.31 TC.54 O&M cost.09 161.72 25457.43 322.31 15680.43 6260.27 15840.88 33530.72 39889.49 15266.34 6871.44 15915. Using Cost-Volume Profit Analysis method The basic limitation when we do a cost-volume profit analysis.41 1050.66 -7560.07 17226.88 8497.52 -10505.Table 5: Break Even Point Calculation Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 Annual Ridership.40 17392.63 16783.49 18379.96 30375.63 2351. Explicit Costs: Implicit Costs: Fixed Cost & Variable Cost Opportunity cost (in this case opportunity cost is considered to be zero) Normal Profit: The yearly profit earned after the adjustment made towards the variable costs.39 15610.04 241.34 287.15 197.84 743.11 14924. PT Total Revenue : : Traffic Earnings + Advt.73 8049.37 235.19 -5350.13 4310.30 39697.83 17818.94 15423.08 1867.43 16003.90 248.56 3255.97 4760.25 19471. it will break-even in the year of 2028.88 47962.87 -10121.45 1763. Let us assume.58 935.38 18739.46 2219.25 181.84 4627.40 17753.58 332.258 ) Page | 10 .72 20905.34 -1270.72 6473.60 12505.40 3321.08 16299.91 -6156.35 23257.56 1978.13 1322.94 TR.21 -9236.56 16410.40 27786.83 -6890.31 1248.23 263.43 787.58 15367.89 304.86 47467.07 2794.88 22929.20 -9699.91 25148. in Crores.01 18158.15 15315.04 25420. Revenue + Property & Development Revenue PTN + (4E 19 * N 3.85 43740.01 3726.30 4362.17 7541.91 10482.02 17375.16 1112.00 3135.90 36376. Though Delhi Metro makes the profit every year.24 7.84 16306.00 17567.87 3575.23 2095. in Crores 15133. in Crores -11467.85 29308.32 -8728.90 21944.76 14439.53 313.40 186.39 1178.09 1400.89 13149.59 221.80 4732.09 6753. in Crores 701.56 9965.16 2490.00 341.13 15754.67 361.00 11448.54 15816.38 33171.20 17950.39 171.44 -4466.58 7372.70 192.69 351.96 256.42 279.84 19059.67 166.44 -11176.53 209.50 295.46 16651.22 60000 50000 40000 30000 20000 Break Even Point 10000 0 2000 2010 2020 2030 2040 2050 Total Revenue.49 834.81 9081.09 15832.13 11996. in Crores 3666.37 51909.02 2943.33 1664.43 15219.66 13161.22 Normal Profit.43 1571.16 16922.
The ring rail network in Delhi is grossly underutilized. Savings in fuel consumption The savings in fuel consumption is due to the diversion of a part of the Delhi road traffic to Metro and reduced congestion to vehicles on the roads. Time taken in decongested situation (With Metro) = D/Sd Page | 11 . Saving of Passenger time with Metro and without Metro Sc = Average Speed in congestion situation Sd = Average Speed in decongested situation D = Daily Run of Vehicles (in km) Time taken in congested situation (Without Metro) = D/Sc.002 ) Setting N = 248. then it should charge Rs. Buses cater to about 60% of the total demand while personal vehicles account for 30%.5% of the total number of vehicles in Delhi.2% of vehicles on road in Delhi. Overall about 5 million people travel by bus each day in Delhi. hence adding to the traffic and this cycle continues. The number of buses increases by 8% every year. And break-even annual ridership would be 252 Crores. Total Revenue = Total Cost) would be ~ Rs. This has lead to increase in number of personal vehicles. The bus service is hence unreliable.2. over-crowded and also time consuming with long waiting periods at bus stops. 5. 3/passenger trip till break-even. if Delhi Metro decides to charge Rs. Fuel savings arising out of the Metro could result in the savings of foreign exchange for the Indian economy given that a very large proportion of domestic demand for petroleum products in India is met out of imports. Among personalized vehicles.6% of the total vehicles. with the railways catering to only about1% of the local traffic. The number of buses running on Delhi roads was 42639 as on 31st march 2007. Delhi is predominantly dependent on road transport. The ridership by Buses is 60% of the total ridership. the calculated fare rate per passenger trip to achieve the break-even (where. motor cycles and scooters comprise about 64.2/passenger trip. while cars and jeeps account for 26. Buses constitute only 1.96 Crores.2% of the total number of vehicles. then it breaks even in the year of 2029 instead of 2028. Buses currently meet the mass transport needs of Delhi. Effect of Delhi Metro on other modes of transport Buses constitute for about 1. which is about 14 kms takes about 55-60 minutes. and these figures are increasing every year because of increase in traffic. 5. If Delhi Metro decides to maintain its fare rate per passenger trip till it is broken even. On the other hand. but cater to 60% of the total traffic load. Use of electricity for the Metro will reduce the petrol and CNG consumption that could result in savings of foreign exchange and will also reduce air pollution.Total Cost : : Total Fixed Cost + Total Variable Cost (14432E 07) + (3E 09 * N 2. The average trip length.
The difference between the D/Sd and D/Sc curve shows the time saved because of introduction of MRTS.e. four years from now. Also as the no of vehicles on the road reduces the average speed will also increase. New Delhi will play host to the third largest multi-sporting event in the world. Overall this shows that one of the main objectives of MRTS to decongest the Delhi roads will be achieved in the due course of time. in hrs 45 40 35 30 25 20 15 10 5 0 without metro with metro Figure 5 The above chart shows the comparison for time saved for the bus and auto travel.Table 6: Daily Time Taken by a bus Daily time taken by the passenger travelled by bus. the Commonwealth Games. Tens of thousands of visitors will descend upon the Page | 12 2021 . in hrs 50 45 40 35 30 25 20 15 10 5 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 without metro with metro Figure 4 Table 7: Daily Time Taken by a bus Daily time taken by the passenger travelled by auto. without Metro and D/Sd shows time saved in case of Metro. Effect of Commonwealth Games on MRTS In 2010. The time saved in the later case in more because of reduced congestion on the roads. D/S c shows time saved in case of congestion i.
due to the 2010 Games. aimed at extending the network much further in the city. 3. DMRC‘s revenue generation would go beyond Rs8. Phase II.5bn from lead corporate outlets. which is already beginning to have an impact on the city‘s congested roads.This increase is because of the Commonwealth Games -The advertisement revenue and the ridership increases drastically in year 2010. originally planned to be ready by 2010-2011 is now going to be operational by 2009. and is set to be ready before 2010. Through sale of tickets. The emphasis of the present Rapid Transport system is now on the Metro. This phase is going to require massive investment. 2. Revenue increases drastically at a rate of 38% from 2009 to 2010 . 4. will be able to make a much larger impact as its network and reach grows. The Total Revenue for the metro for the year 2007-2008 and the forecasted revenue for the year 2010. However more importantly. possibly unplanned? Is the amount spent on such events worth it? There are very good reasons for why developing nations are more adversely impacted by such events. Will the event lead to rampant and unchecked development. the city is planning a major overhaul of its urban infrastructure as well as its sporting facilities. etc. is already under construction. The revenue increases is because of alone. Figure 6: Total Revenue Generated The Revenue increases at a rate of 12% from the year 2007-2009. Unable to attract large numbers of spectators. High infrastructural development costs. They can be listed as: 1. the DMRC is Page | 13 . The second phase. Under-utilization of facilities post event. ATMs. The second phase is going to provide a vital transport link to East Delhi. To prepare itself for this. with a dedicated Games Village station. The metro.city. High opportunity cost of capital. over Rs 8000 Crores.
expected to earn nearly Rs7bn and about Rs6bn from space allocations to corporate advertisers. The red line gives the ridership revenue taking the commonwealth games into account And the blue line gives the revenue generated without taking commonwealth games in consideration. Page | 14 . The revenue created in the year 2010 has increased drastically in the year 2010 as the price of the ticket increases considerably pertaining to the commonwealth games. Ridership increases due to the increase in the foreign tourists. DMRC should keep the cost of the project under control as it might not even earn the fixed cost. Planning in future must be done keeping a realistic view. Figure 7: The Ridership impact taking the Commonwealth games into consideration. But the increase is not that drastic as not many foreign tourists turn to developing countries to watch the matches because of the state of infrastructure. The advertisement revenue earned increases as many corporate houses pay high prices for the advertisements as India will be in spotlight at that point of time. Figure 8: Advertisement Revenue The advertisement revenue forms the major portion of the revenue earned by the metro as the ridership is not up to the mark. The ridership dips in the year 2011 and the infrastructure created is underutilized.
indiatimes.nctr. The rate at which revenue increase will decrease subsequently after the commonwealth games. We can infer that the DMRC would suitably allocate rental and advertisement space to higher bidders after it has accomplished the metro projects in early 2010 especially before the commencement of forthcoming Commonwealth Games.uni-muenchen.in http://www.in http://www.niua.com/articleshowarchive.org http://web. reduction in accidents. References http://economictimes. private transporters. general public and unskilled labor.ub.delhimetrorail.cms?msid=2929040 http://delhiplanning. Delhi Metro which is part of MRTS (Mass Rapid Transport System) is an economically viable.com http://www.ac. passengers.de Page | 15 . Conclusion The Delhi Metro provides multiple benefits: reduction in air pollution. environment friendly mode of transport for the most populous city of India.iitd.nic. The analysis shows that the break even will be achieved in the year 2028. The demand supply analysis shows that in the future Delhi Metro will be a monopoly.in http://www. The commuter travel time saved over the period will increase in comparison with other modes of transport. time saving. reduction in traffic congestion and fuel savings.usf.delhigovt. There are incremental benefits and costs to a number of economic agents: government. time saving to passengers.nic.edu http://mpra. The common wealth games scheduled in 2010 will increase the ridership thus giving a boost to the total revenue.
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