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Cost estimate Essay

The Kolkata Metro’s construction work started in 1973-74 since which the project faced the several problems one of which being non-availability of sufficient funds till 1977-78. Funds came in dribbles and the project never got the support of the state government, which saw it as a central government project, since it is under the Indian Railways. The North South metro project was allotted only $14.38 million during the first 7 years. The cost of construction escalated to $32.55million at 1993-94 price level due to delay. The metro, which started its journey Oct 24, 1984, was constructed entirely by Indian Railway engineers, without help from a single foreign consultant or foreign contractor. The major stretch of the metro lies below sea level.

The East-west metro project is estimated to be a Rs4,874.58 crores ($1.1 billion) project. The EW metro’s major stake is with Indian Railways and rest with Japan Bank of International Cooperation. To avoid the mistakes in construction of North south metro project , the east west project would be operated by a separate and new company called Kolkata Metro Rail Corporation. The following table depicts the components of capital cost for Kolkata Metro East west corridor project: The State Government of West Bengal initially

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had not been as supportive towards the metro project in there city as the Delhi State Government has been towards its own project.

The operations of Trams in the city were heavily subsidized as they were provided cheaper electric power while no subsidy was provided to Metro Railway as it was operated by central government. The previous table compares the fare of Delhi metro (DMRC) and Kolkata Metro. Kolkata metro provides the cheapest fares in the world but this also has led to continuous loss generation. There have been hefty hike in the salaries of staff as well however the earnings have not increased in the same ratio.

Comparison:- Project Time “Project Time Management describes the processes required to ensure timely completion of the project. It consists of activity definition, activity sequencing, activity duration estimating, schedule development, and schedule control.” Delhi Metro:- Delhi Metro Railway Corporation (DMRC) works on business principles which follow strict adherence to timelines. The phase I of the Delhi Metro project was to be completed in 10years time however the project was completed two years and nine months ahead of its schedule. Phase II of the project was to be completed in 4years time and was successfully completed in year 2010-11.

If the project is delayed by one day it costs Rs, 1.3 crores to DMRC whereas in case of phase II it would cost them Rs. 4.5 crores. This was communicated to everyone in the organization so that they would realize the importance of completing deadlines. To ensure completion of projects on time Delhi Metro followed the system of Reverse Clocks in which the clock indicates how many days are left for that particular segment of the project to be completed. This kept everyone in the organization on their feet. There were also weekly meeting scheduled with the top managers of the site mangers or the contractors in order to find out any problems which the contractors might face which would result in failure of duty. This way delays in project were avoided.

Kolkata Metro:- Approved in 1972, Kolkata Metro’s 16.45 km route between Dum Dum and Tollygunj was constructed over a period of 23 years, unlike the Delhi Metro which set records by constructing 65.1 km of lines in eight years. Kolkata metro was more of trial and error affair as the construction period of the Kolkata project was also saddled with issues such as non-availability of funds till 1977-78, shifting of underground utilities, court injunctions and irregular supply of vital materials.

Recently the officials of the executing agency, Kolkata Metro Railway Corporation (KMRC), said problems like land acquisition in Salt Lake that had been slowing down the project nine months ago still had not been solved. Execution delays caused the East-West Metro project to fall behind schedule. Kolkata Metro took 22years for completion and the cost went up by 14times.

Comparison:- Project HR Management At DMRC staff council meetings are held on a weekly and monthly basis to discuss day-to-day affairs, staff members are encouraged to make suggestions and recommendations for improvement. Competency building workshops are organized to educate staff members in time management, team building and motivational techniques for their personal and professional development.

The Delhi Metro Training School, established in 2002, is the only specialized training institute in South Asia in metro operations and maintenance technology. It imparted training to the metro maintenance and operations staff and was certified by the International KMRC on the other hand is bursting with staff with 140 employees per km DMRC being a learner organization with two main departments project organization and operations & maintenance has only 34 employees per km.

Project Autonomy The decision making process of DMRC is very fast and this has been helped by the structure of the organization. The structure of the DMRC is such that it is owned 50% by the Government of India and 50% by the Government of Delhi. Hence neither of the Governments can fully control giving the board of directors the final authority for any decision to be taken in the organization. The board of directors in their wisdom and their trust in Mr. E. Sreedharan who is the managing director of DMRC) have delegated most of the powers to him so that more decisions can be taken in the organization itself.

DMRC have awarded many contracts such as contracts covering even thousand tonnes of coal. The average can be taken for a civil engineering contract for 18 days. This is the speed with which DMRC takes decision. There are cases where the organization has decided tenders in hours. The tenders are decided and there is so much of mutual trust in the whole organization because integrity is seen to be carried by everyone. The level of mutual trust is so much that when a tender is due, a discussion takes place and they know what they require and it is all finalized very fast.

However in case of Kolkata Metro since the power of authority laid with the Indian Railways the whole decision making process was quite slow. They didn’t have a separate independent body like Delhi metro and hence had to face lot of government interferences and bureaucratic games which resulted in delays in the project. Decision with the Government, normally will take 2 years which DMRC may take in 2 days for reaching their purpose.

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