Hyderabad financing model for a public infrastructure task, for

Hyderabad Metro Rail Project is the World’s Largest Public-Private Partnership Project (PPP) in the Metro Sector. Metros and MRTS (Mass Rapid Transport System) are rising as a noteworthy territory for foundation advancement in significant urban areas with high populace (around 8 Million). The Metro Rail Project, once finished will change Hyderabad as the favored city in India; with incorporated urban transport arranging utilizing entomb modular network and advantageous sky-strolls, which will stamp the start of a period of consistent driving in India. The Hyderabad Metro Rail Network will cover an aggregate distance of 71.6 Km crosswise over three corridors:

·         Corridor I:   Miyapur to LB Nagar

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·         Corridor II:   JBS to Falaknuma

·         Corridor III:   Nagole to Shilparamam

The mascot of Hyderabad Metro Rail is ‘Niz’. It was gotten from the word Nizam, who governed the royal province of Hyderabad. HMR venture was displayed as one of the best 100 key worldwide foundation ventures at the Global Infrastructure Leadership Forum held in New York amid February– March 2013. Few points on the Metro Rail Project –

·         First Communication Based Train Control (CBTC) system to be used in India

·         State-of-the-Art Rolling Stock with high Regeneration of Power

·         Largest Precast yard in India

·         Largest Single Urban Development Project in India

·         Largest Investment made by L in one single City


PPP Model from Project Management Perspective

Public-private partnership (PPP) is a financing model for a public infrastructure task, for example, another media communications framework, air terminal or power plant. The public partner accomplice is spoken to by the administration at a neighborhood, state and additionally national level. The private accomplice can be an exclusive business, public enterprise or consortium of organizations with a particular subject matter.


PPP is an expansive term that can be connected to anything from a straightforward, here and now administration contract (with or without venture necessities) to a long haul get that incorporates subsidizing, arranging, building, operation, upkeep and divestiture. PPP game plans are valuable for substantial undertakings that require very talented laborers and a huge money expense to begin. They are likewise valuable in nations that require the state to legitimately claim any foundation that serves people in general. Metro Rail Project works on DBFOT PPP model

 Metro Rail Project Cost Management System is the way toward characterizing the expenses related with the metro rail venture, assessing the same, setting up the financial plan and controlling the same amid the execution time frame. The general undertaking cost was evaluated to be 16,375 Cr INR. L Metro Rail Hyderabad Ltd produced 3,338 Cr INR venture through Equity shares which are 30 % cost of the aggregate. Other 70% assets were produced through bank loans and debentures.To precisely develop cost estimation venture administration group had put vigorously as far as time for basic leadership and planning of the Metro Rail Project. Which comprises procedures of Initial Investment Intention, Investment design, Project cost design (both time and money), add up to cost estimation, and so on project cost administration process is vital as it decides the assets and nature of the assets which will be utilized as a part of the improvement of the Metro Rail Project. Cost evaluating characterize the method for building up a gauge of the expenses and assets expected to finish the venture. Cost planning is the means by which we will designate the general cost estimation to singular work things to set up a benchmark for estimating the execution. One can get ready cost evaluating flow graph, which incorporates Work Breakdown Structure(WBS) Development – in which we characterize what process will be finished utilizing the instruments and skill of L, what procedures and parts of the Metro must be outsourced, etc. On the bases of which we can get ready Project gauge advancement, information gathering investigation, cost component system, and so forth.The agreement budgeting characterizes the cost standard for the task. It implies that the real execution of the task. Which can be estimated as far as the cost contrasted with the genuine spending plan. This will help in distinguishing the proficiency of the task regarding venture use. Contract benchmark will likewise enable us in the usage of the venture to control measures to recognize the execution exceptions and enhance use of the assets. In view of the above data, when spending plan got built up, an agreement gauge can be characterized. It contains the agreement course of events and expenses for every action associated with the undertaking. The execution of the task can be estimated against the same. The administration at that point guarantees that all exercises occur inside the extent of all the individual components of the agreement standard. From the agreement standard one can get data like, Total Contract Price, Total Contract Cost, Profit/charges, Contract Budget Base, Performance Measurement Baseline, Management saves, Distributed Budgets, Undistributed Budgets, and so forth.

As said above in the wake of performing cost estimation and cost planning process, cost of the metro venture was chosen to be around 16375 Cr INR. Alongside that, they concluded that they will work in 2 distinct stages and 6 unique stages to finish the task. The pattern was set to be 5-year assessments to finish all the 3 lines of the metro rail of Hyderabad.Project cost control takes care of various exercises which are inside the perspective of the task spending plan and contract benchmark. It includes the formation of a precise model of cost which will be reliable with the genuine spending of the undertaking. Cost patterns should be assessed and estimated all the time considering in regular vacillations. The primary concentration of cost control is the arrangement of reports of genuine and estimated expenses and correlation with the financial plans. This encourages administration to recognize differences from the arranged calendar and expenses. This would empower the administration to find a way to guarantee ideal execution of every movement. Another advantage of this action is that budget can be adjusted to exhibit a more practical picture after some time and the same can be utilized to raise and dispense assets all the more viably. Ultimately, project cost control likewise guarantee responsibility and enhances the productivity of the exercises through checking and announcing. To guarantee that task is chipping away at time we have to ensure that in the venture plan process we care for: Logical connections, length and asset necessity, development technique, and so forth.To help Hyderabad Metro framework working up to the stamp, CBET framework was presented. It was the principal venture in which such framework was got executed. To envelop the cost and the preparation of the framework different test are being led on the distinctive piece of the railroad arrange. The status of the Hyderabad framework is exceptionally proficient. It proposes that with the slack of 74 seconds we can present prepares on the system with speed of 80 km for each hour and we can productively and unsafely run the railroad arrange.Earned value management comprises an examination of the estimation of the genuine work played out, the estimation of the work planned and the real esteem earned through execution. It is an examination of scheduled, budgeted and actual cost. The correlation of the three components helps in deciding the fluctuation of the actual and scheduled execution and the difference between actual and budgeted expenses. This whole exercise helps in deciding the stage the project has come to and how proficiently the assets are being used. In all the distinctive phase of the undertaking, a portion of the errand relegated as a turning point. With the utilization of various procedures like weight strategy, graphical portrayal technique, measurements based weighting strategy, S bend, Gantt outline, aggregate advance chart, and so forth. As we are chipping away at people in public transport project, we have to ensure that the quality system and accessibility metro trains of the task ought to be high. To guarantee that we have to perform different tests. In this project, we need to check around 15 different key performance pointers to guarantee the accessibility, capacity, timeliness, and readiness of the prepare organize. Which can set aside more opportunity for more cash, if one found that schedule time fluctuation and cost time difference for the undertaking is under 1, It indicates whether we are lingering behind timetable or cost individually? In this sort of project, it winds up noticeably baffled circumstance for the task supervisors whether he/she ought to go for the quality or for the auspicious fulfillment of the undertaking. Project risk management, which primarily comprises schedule and cost uncertainties and risks, should be essentially carried out for the construction of metro rail. Benefits of Risk management -·         Improves project control by aiding the development of robust baselines and reducing surprises·         Improves program delivery by early identification of potential delays and bottlenecks; proactive management of threats to delivery; and actively seeking opportunities for improvement ·         Unnecessary cost increase and delays due to a lack of coordination and or retro fitting of solutions are avoidedRisk Management Process – ·        
Potential Risk
Risk Assessment and
Risk Evaluation·        
Risk Treatment·        
Risk Monitoring and Risk
Audit  Risk Mitigation Strategies  ·        
Transfer the risk – Transfer the risk to the contractor/ user using contractual incentives,
warranties, penalties towards project performance, cost or schedule measures·        
Avoid Risk – attempting to eliminate risky activities, minimizing system
complexity, using tested and certified construction equipment for cranes,
hydraulic excavators etc.·        
Reduce Risk – Establishing a standard safety department, computer-aided
system engineering tools, Hiring experts for critical review and assessment
Risk Contingency Planning·        
Accept the risk