DMRC poised to break even in 2 years

The environmental and social benefits from the Delhi metro will help it recover the entire cost two years earlier than anticipated
Sadiq Naqvi Delhi Hardnews

The Delhi Metro Rail Corporation (DMRC) is set to recover the entire cost of Phase I by 2011. This was estimated in a study conducted by the Central Road Research Institute (CRRI).

According to a recent report by the CRRI, the environmental and social benefits due to this mass transport system will help recover the cost two years earlier than what the CRRI had anticipated earlier in a previous report. As per the new study, the break-even point for the phase I cost will be achieved by 2011.

This, according to the CRRI, is due to the increasing popularity of the metro as the preferred mode of transport in Delhi. In 2007, 5,00,345 travelled everyday by the metro. The figure has increased to 8,50,170 in 2009. This has also increased the economic rate of return (ERR) which went up from 16.90 per cent to 19.98 per cent from 2007 to 2009. However, ERR should not be confused with the financial rate of return as it takes into account the effect of factors such as price controls, subsidies and tax breaks to compute the actual cost of the project to the economy.

The study points out that if the social and economic benefits are quantified then the value of accrued benefits of Phase-I by March 2012 will become  Rs 10,801.64 crore as against Rs 10,571 crore which was the cost incurred in the construction of Phase I. These benefits are a result of passenger time saved, fuel cost saved, reduction in capital and operating cost of vehicles, reduction in environmental damage, accidents prevented, time saving and low maintenance cost of infrastructure.

According to the study, the metro is helping the environment in a big way as it will prevent emission of 1,31,395.34 tonnes of greenhouse gases upto 2009.

The other main highlights of the latest CRRI study are:

• Saving in travel time: The annual cost saved by metro passengers on account of reduced travel time will go up three times from Rs 310.13 crore in 2007 to Rs 947.07 crore in 2009.
• Fuel cost saving of metro passengers: The annual saving on account of reduced fuel consumption will be Rs 180.89 crore in 2009.
• Number of vehicles off the road: In 2009, the Metro will take the daily share of 57,953 vehicles for all other modes of travel such as cars, buses, two-wheelers, auto-rickshaws, etc.
• Vehicle cost saving: The annual vehicle (capital and operating) cost saving will almost triple from Rs 93.21 crore in 2007 to Rs 276.24 crore this year.
• Emission cost saving: The emission cost saving will also increase almost three times from Rs 14.29 crore in 2007 to Rs 41.04 crore in 2009.
• Number of accidents avoided: The metro will help avoid a total of 255 accidents, including 51 fatalities, in 2009. In 2007, the respective figures were 196 and 21.
• Accident cost saving: The accident cost saving will be Rs 9.35 crore this year as against Rs 6.28 crore two years ago.
• Improvement in road journey: The annual cost saved by passengers traveling by road on account of reduced travel time will be Rs 240.18 crore in 2009.