Comprehensive Risk Assessment of Delhi Metro Rail Corporation Limited

This report provides a risk assessment of the Delhi Metro Rail Corporation Limited (DMRC). It identifies and evaluates various risks, categorizing them into noise pollution, vibration issues, accidents during construction, land acquisition challenges, design flaws, financial and investment concerns, political influences, and natural disaster vulnerabilities. The assessment includes risk ratings (Extreme, High, Medium, and Low) for each identified risk, along with specific examples and references. The report highlights significant risks such as accidents during construction, the impact of noise and vibration, the rising cost of electricity, and the potential for natural disasters. It also considers the effects of political agendas and design issues on the DMRC's operations. The report concludes by emphasizing the importance of addressing these risks to ensure the safety, efficiency, and financial stability of the Delhi Metro.

Running head: RISK ASSESSMENT OF DELHI METRO RAIL CORPORATION
LIMITED
Risk Assessment of Delhi Metro Rail Corporation Limited
Name of the Student
Name of the University
Authors Note

1RISK ASSESSMENT OF DELHI METRO RAIL CORPORATION LIMITED
Risk Assessment of DMRC
Assessment of
business risk
Identification of existing risks and
their Ratings
Number of existing
Extreme, High, Medium,
and Low risks
Noise Pollution On December 2017, Children
complained of the alleged noise
pollution as the Delhi Metro Trains
prompted by NGT. There are several
types of the other issues which are
associated with noise pollution
(Firstpost 2017). The risk rating for
such an issue is considered as 3/5.
Medium Risk- The risk of
noise pollution is seen to be
having a significant effect on
the local community.
Therefore, such a risk is seen
with medium severity.
Vibration Issues The noise and vibration generated
from mass-transit at was the
environment both during the
operation and construction. The
major forms of noise pollution caused
by the operation of DMRC is
depicted with airborne noise, ground
borne vibration in neighbourhood
buildings, airborne noise inside trains
and ground borne noise in
neighbourhood buildings. The risk
rating for such an issue is considered
as 3/5.
Medium Risk-It can be
clearly seen that the emitting
of noise and vibration is
clearly a threat to not only
the railway commuters but
also neighbourhood
surrounding the facility.
Therefore, such a risk is
categorised as having
medium consequences.

2RISK ASSESSMENT OF DELHI METRO RAIL CORPORATION LIMITED
Accidents During
Construction
Phase
1. Incident 1- Bridge collapse:
This incident occurred on 12
July 2009 at 5 AM. Based on
the preliminary report it was
revealed that the accident
caused the appear to get
displaced. This supported
both the segment and
launcher. Due to such an
incident around 30 people
were working at the site and
out of this 15 were injured
and 6 died. This risk rating for
such an incident is identified
as 4/5.
2. Incident II- Crane accident:
This incident is seen to take
place on 13th July at 11:39
a.m. in 2009 at the site of
construction. There was a
mechanical fault for which the
first crane had developed
cracks and then it snapped.
This led to an additional
weight on the remaining
High Risk: The incidence of
accidents at the time of
construction cannot be
overlooked. Therefore, the
severity of such a risk is
classified under high-risk.
High Risk: The increased
probability of mechanical
failure at the time of
construction is recognised
with high-risk.

3RISK ASSESSMENT OF DELHI METRO RAIL CORPORATION LIMITED
cranes. The entire incident
happened within three
seconds due to which five
people were injured at the site
(Imia.com 2018).
Land Acquisition
Risk
These risks are mainly seen at the
time of expansion of the DMRC
phase. Such risk is rated as 1/5 (Mail
Online. 2014).
Low Risk- The hurdles of
land acquisition risk are
considered to be short
termed. Therefore, they can
be categorised as low risk.
Design Risks 1. The increasing number of
commuters for the metro is
seen to be a major issue with
the present design of the
Metro Railway
(Delhimetrorail.com 2018).
This risk rating is identified as
4/5.
2. The present design of the
railways is depicted to be
running in the energy saving
mode however, the increasing
number of commuters will
High Risk- The increasing
number of commuters is
depicted as a major threat to
the changes which are to be
proposed in DMRC.
Low Risk- The changes
pertaining to shifting from
power saving mode to
separate mode is seen to be a
major problem for DMRC in
the long run.

4RISK ASSESSMENT OF DELHI METRO RAIL CORPORATION LIMITED
mean that the DMRC needs to
shift from power saving mode
to some other mode of power.
This risk rating is identified as
2/5.
Financial and
Investment Risks
1. The mounting amount of the
electricity bills has been
depicted with no fare revision
in the last seven years. As per
the information in the annual
report of the company. The
DMRC is further seen to be
revising its fares in September
2009 and this resulted in
increasing the fares from Rs.
6 to Rs. 8 (for the minimum)
and maximum amount from
Rs. 30 from Rs. 22
(Manchanda 2018). This risk
rating is identified as 3/5.
2. It needs to be also seen that
there has been a significant
increase in the cost of
electricity. Moreover, the cost
of per unit of power has been
Medium Risk- The existence
of the medium-term risk was
high as there was no revision
of fare since September
2009.
Medium Risk- Increasing
expenditure for the financial
services for electricity
consumption.

5RISK ASSESSMENT OF DELHI METRO RAIL CORPORATION LIMITED
seen to increase in 2009-10
which was Rs. 3.21 and
doubles to Rs. 7.25 per unit in
2015-16 (Delhimetrorail.com
2018). This risk rating is
identified as 3/5.
3. The energy expenditure of
DMRC in 2009-10 was Rs.
83.2 crore which increased to
Rs. 520.5 Cr in 2015-16.
DMRC with a consumption of
65% of the energy for traction
and additional 35%
consumption in the auxiliary
services like air conditioning,
lift escalators and lighting
(Delhimetrorail.com. 2018).
This risk rating is identified as
3/5.
Extreme Risk- The high
amount of increase in the
energy expenditure has been
identified to be extreme risk.
Political Risk 1. The consideration of the
political risk needs to be taken
into account as per the
political agenda. This needs to
be considered with the
Low Risk- The varied range
of the political agendas is
seen with mild threat as
bringing changes in the
policies which are to be

6RISK ASSESSMENT OF DELHI METRO RAIL CORPORATION LIMITED
different types of the political
agendas which are inferred to
affect the operations of the
Metro Railway
(Delhimetrorail.com 2018).
This risk rating is identified as
2/5.
implemented by the Metro
Rail Corporation in Delhi.
Natural Disaster
Risk
1. DMRC is seen to follow
“Indian Railway Standards
(IRS)”, “Indian Road
Congress (IRC)”, “Indian
Standards (IS)” and different
types of the other information
for the nations which are
highly prone to earthquake
(Delhimetrorail.com 2018).
The risk rating is recognised
as 4/5.
2. Zone 4 also known as the
seismic zones is considered to
be highly prone to the High
Damage Risk Zone. The risk
rating for this is seen to be
covering the areas such as
Indo-Gangetic basin. The
High Risk-The high risk has
been considered to be main
criterion for risk pertaining to
the breach of standards.
Extreme Risk- The risk of
natural disaster in the Zone 4
cannot be overlooked. This is
considered as extreme risk.

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earthquake measured in this
scale is identified to measure
as per Richter scale 7 to 7.5
(Delhimetrorail.com 2018).
The risk rating is recognised
as 5/5.

8RISK ASSESSMENT OF DELHI METRO RAIL CORPORATION LIMITED
References
Delhimetrorail.com. 2018. [online] Available at:
http://www.delhimetrorail.com/OtherDocuments/DMRCAEnglhYear20156.pdf [Accessed 31
Oct. 2018].
Delhimetrorail.com. 2018. [online] Available at:
http://www.delhimetrorail.com/otherdocuments/EIAReportN-D_Bs%20standCorridor.pdf
[Accessed 31 Oct. 2018].
Delhimetrorail.com. 2018. [online] Available at:
http://www.delhimetrorail.com/otherdocuments/922/INSIDE_TRAIN_TENDER_LINE-
7_8.pdf [Accessed 31 Oct. 2018].
Delhimetrorail.com. 2018. [online] Available at:
http://www.delhimetrorail.com/OtherDocuments/DMRC-AR-2017-WEB_23118.pdf
[Accessed 31 Oct. 2018].
Delhimetrorail.com. 2018. DMRC Structures well built to withstand earthquake eventuality .
[online] Available at: http://www.delhimetrorail.com/whatnew_details.aspx?
id=ck91jwaLkFYlld [Accessed 31 Oct. 2018].
Firstpost. 2017. Five-year-old moves NGT against noise pollution by Delhi Metro, tribunal
directs DMRC to follow environmental norms - Firstpost. [online] Available at:
https://www.firstpost.com/india/five-year-old-moves-ngt-against-noise-pollution-by-delhi-
metro-tribunal-directs-dmrc-to-follow-environmental-norms-4255061.html [Accessed 31
Oct. 2018].

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Imia.com.2018. [online] Available at:
https://www.imia.com/wp-content/uploads/2013/05/Metro-bridge-collapse-and-crane-
failture-CAR_2010_38.pdf [Accessed 31 Oct. 2018].
Mail Online. 2014. Delhi Metro extension faces a host of hurdles as land acquisition and
engineering issues cast doubt on 2016 deadline. [online] Available at:
https://www.dailymail.co.uk/indiahome/indianews/article-2348415/Delhi-Metro-extension-
faces-host-hurdles-land-acquisition-engineering-issues-cast-doubt-2016-deadline.html
[Accessed 31 Oct. 2018].
Manchanda. 2018. Delhi Metro risks going off the rails as expenses mount. [online] Business-
standard.com. Available at:
https://www.business-standard.com/article/economy-policy/delhi-metro-risks-going-off-the-
rails-as-expenses-mount-116110400009_1.html [Accessed 31 Oct. 2018].