delhi metro risks

Topics: Cost overrun, Cost, Economics Pages: 1 (253 words) Published: December 4, 2013
Metro considerably more expensive than the bus.
Less ridership than estimated.
High development cost
Displaced many economic backward people.
Difficulties in acquiring land
A struggle on the part of those being displaced, and protests, petitions, hunger strikes, negotiations and legal action have all been initiated. Security threat.
Risk of cost overruns and ridership shortfalls.
Increase in cost of the parts.

Risks faced in Delhi Metro Implementation:
1. Risk of failure of project- Once metro would be completed the cost of travelling and using a metro as against bus for a commuter would be higher. One of the primary reasons for setting up metro was to reduce traffic congestions and air pollution but with higher ticket prices this project may not be efficient in mitigating this reason. This point was emphasised after completion of phase I and II of the project as the ridership observed was much lower than the estimated ridership. 2. One of the biggest project till date- This project was touted to be one of the biggest urban project since Indian independence. With increase in size of the project the risk of failure also increases. Apart from this due to the size of the project the duration of completion as well as the cost of development was very high. There was also an increase in the cost of parts over a period of time till phase I and II were implemented which further increased the cost of project. 3. Difficulty in acquiring land and acquiring various approvals- 4. Displaced many economic backward people-

5. Security threats-
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