Adani Institute of Infrastructure Management (AIIM)

PGDM 20219-21 (Trim. IV)

Transport – Policy, Economics & Management - I

End-term Exam October 7, 2020

Time: 2 hours Maximum Marks: 45

General Instructions:

1. Total time allotted for the question paper is 02 hours 15 Min. which includes 15
Min. of submission time i.e scanning and uploading it on teams.
2. Please adhere to the time-limit strictly. Any submission after 12:15 PM will be
considered as late submission and appropriate deduction of marks will be
applicable.
3. To answer the paper, open a fresh word document and name it as
Program_Course_Name_Enrollment No. The file name will look like this:
PGDM_IM/LAW_TPT_Raj_2019210123.
4. Start typing answers of questions in that word file. Ensure you keep saving your
word file periodically and have kept your laptop in charging.
5. After you finish your paper, you have to upload the answer sheet via teams’
assignment option.
6. If you have opted for paper pen method then scan your answers and upload final
PDF file (with lesser MB) via team’s assignment option. The PDF file name
should also look like this: PGDM_IM/LAW_TPT_Raj_2019210123.

Question Paper Related Instructions:

 All questions are compulsory. Write brief answers, preferably in bullet points.
 Substantiate your answer with real life example wherever possible.
1. Why is the gauge selection for any new rail project (metro, high speed) not an easy
decision in India? What could be the pros and cons of deploying the same rail gauge
(say broad gauge) for all rail-based transport services? [6 Marks]

2. What lessons can be learnt from the Singapore experience in managing the road
congestion? Why it may not be feasible to implement ERP in India? [5 Marks]

3. Given that the road share in freight and passenger transport is much higher than what
is desirable, the government is providing significant budget for Bharatmala Pariyojana.
Why these road projects may still be desirable even though the policy objective is to
shift traffic to other modes? [5 Marks]

4. Why integrating transport policies with environment and land use policies may have
larger benefits for the society? Substantiate your answer with examples. [4 Marks]

5. Read the text carefully and answer the questions given below the article.

The Delhi Metro Rail Corporation (DMRC) has taken over the operations and
maintenance of the Rapid Metro Link, Gurugram from 22 October 2019.

The two special purpose vehicles (SPVs) of IL&FS – Rapid Metro Rail Gurgaon Limited
(RMGL) and Rapid Metro Rail Gurgaon South Limited (RMGSL) -- which have been
running the Rapid Metro in Gurugram since 2013 and 2017, respectively, have served
their termination notices to the state government. The concessionaire expressed its
inability to run the metro due to low footfall and high expenditure.

The project was undertaken in two phases: The initial 5.1-km stretch was awarded in
July 2009 to a sole bidder Rapid MetroRail Gurgaon Ltd, a special purpose vehicle
floated by IL&FS and DLF-promoted firms and executed at a cost of Rs 1,088 crore; and
the second 6.5-km stretch proposed by RMGL and again allotted in October 2012 to a
single bidder Rapid MetroRail Gurgaon South Ltd, another SPV promoted by IL&FS
group firms, at a cost of Rs 2,143 crore.

In its original proposal, DLF estimated the average daily ridership for the 5.1-km stretch
– from Sikanderpur Metro Station on DMRC Yellow Line to its properties running
through DLF Phase II, Phase III and Cybercity – at approximately 2 lakh in 2015 and 2.6
lakh in 2021. The numbers were bumped up in the detailed project report (DPR)
prepared by RMGL to 3,11,246 in 2015 and 3,72,560 in 2020. The first phase started
commercial operations in November 2013.

Similarly, for the 6.5-km stretch, from Sikanderpur Metro Station to Sector 56, passing
through big projects — Aralias, Magnolias, DLF Belaire, Florence Marvell, Palm Springs,
Emaar MG — RMGL’s feasibility report in May 2011 estimated average daily ridership at
147,150 in 2015 and 167,400 in 2020. At the DPR stage, this was hiked further by the
sole bidder RMGSL to 222,450 in 2015 and 266,630 in 2020. This route became
operational on March 31, 2017.
While the two phases cumulatively estimated a daily ridership of over 6 lakh, the actual
ridership is less than a tenth at about 55,000.

These studies were based on multiple factors involving overall infrastructure

development including development of feeder routes, allocation of parking at station,
comprehensive mobility plan, multi-modal access, pedestrian pathways and integrated
traffic policy framework. Absence of some/ all such development by State had huge
impact on ridership.

During the operational phase, about 60% of the realized revenue came from
advertisements while the traffic revenue was only 39%. 65% of the operational cost
was of financing.

Ruling on a dispute over sharing of liabilities of Rs 3,771 crore, the Court on September
20 asked two retired judges to oversee a smooth takeover of the project by HSVP, and
asked the Comptroller and Auditor General to undertake a thorough audit of the
project.

Answer the following questions:

a) Given the fate of this project and the earlier Delhi Airport Metro Express line and
this, what are the larger issues in development of metro projects with private
participation? [7 Marks]

b) How can transit oriented development help improve the viability of metro projects?
[4 Marks]

c) Why do smaller stretches of metro projects have higher operational costs?

[4 Marks]

d) The ridership estimates drastically go wrong in many projects, leading to much

lower revenues than estimated. How can this risk be minimized/mitigated for
private players? [4 Marks]

e) While on one hand, financing public transportation is a concern in developing

countries, some cities in the world are promoting free public transport system (no
fare charged to users). What arguments would you give to support and criticize this
measure? [6 Marks]

***************ALL THE BEST***************