Delhi: From consultancy to construction projects, Delhi Metro on a global journey to boost revenue

Agla station Alexandria hain (next station is Alexandria). It’s a possibility. After operating metros in the nation’s capital for the past two decades, Delhi Metro has embarked on a global journey, aggressively seeking consultancy and construction projects overseas, including in the port city of Delhi. ‘Alexandria in Egypt. Last month, India’s first and largest metro company submitted tender documents for consultancy jobs for a metro project in Alexandria. Earlier this week he made a bid to build a full metro line in Mauritius. Three other metro systems – in Tel Aviv in Israel, Manama in Bahrain and Ho Chi Minh City in Vietnam – are also on its radar. In neighboring Dhaka, where Delhi Metro has been contracted as a consultant on three routes since 2013, it is preparing to bid for a new line. Hard hit by the Covid-19 pandemic and a massive loss of income, Delhi.

Metro is looking to bolster its revenue streams from sources other than box office by throwing its hat in the ring for lucrative projects around the world. According to people aware of Delhi Metro’s shift in strategy, this is just the beginning. Delhi metro world journey will not be easy. In Bahrain, for example, it could oppose its Chinese counterparts, while in Mauritius, Indian construction heavyweights such as L&T could be its main opponents, according to metro officials who are familiar with the matter. . Vikas Kumar, managing director of Delhi Metro Rail Corporation (DMRC), confirms to ET that the city carrier is in the running for new metro projects in five countries, adding that the pandemic has played a role in its new approach to exploring projects worldwide. “We want to increase our revenue share in consulting activities, in particular. So we decided that we needed to expand our business outside of India using our core competency. This will bring us additional income,” he says. A senior Delhi Metro official said on condition of anonymity that the carrier, owned equally by the Center and the Delhi government, has taken a call to increase its share of consultancy business to 30% of revenue. total business.

Prior to Covid 2019-2020, DMRC earned 505 crore from non-ticketing business including real estate, advertising and consultancy work compared to 3,391 crore from ticketing. Non-ticketing revenue was only 13%, and the consultancy share was tiny, says one officer. In India, the company provides advice to two projects – in Mumbai and Patna. The Delhi Metro takes different routes for its overseas projects. In the Mauritius project, he decided to go solo while for the 29 km Bahrain Metro Phase 1 works, he is partnering with Virtue Global Holding Ltd with an agreement that he would execute the EPC contract ( engineering, procurement and construction) if the Dubai-based finance company, which has already qualified in the pre-tender stage, manages to win the bid.

The final auction is expected to take place in November. An official Delhi Metro campsite in Bahrain tells ET over the phone that he has a good chance, as 70% weighting is given for credentials and only 30% for the financial offer. This means that the winner will not necessarily be the lowest bidder. For the Tel Aviv project, Delhi Metro partnered with a local company, Poran Shrem Engineering and Appraisal, as well as a company owned by Indian Railways,

, to get consulting jobs. The consortium has pre-qualified for the call for tenders.

The financial tender is expected by the end of the year. According to a June 2 report by The Times of Israel, the Israeli government has allocated $1.8 billion for the project so far, and some municipalities were also expected to contribute funds. In addition, owners located near the proposed metro lines could be called upon to pay higher taxes to meet the expenses. In Alexandria, Delhi Metro is partnering with RITES and an Egyptian company, CEG. For an 11 km long metro section in Ho Chi Minh City, he signed a JV with RITES and another company called ICT. The offer is expected to be submitted by the end of this month, according to

Kumar. NVS Reddy, MD of Hyderabad Metro says some of India’s experienced metro companies such as DMRC, Bangalore Metro Rail.

Details of the list of bidders for the Mauritius project are not readily available. Regarding the Bahrain project, at least three Chinese companies – China Harbor Engineering Co, China Railway Group and CRRC (Hong Kong) Co – qualified in the pre-tender phase. In the upcoming Dhaka Metro projects, which also include train operation and maintenance, the Delhi Metro challenger is not a Chinese company. It could be Japanese. An officer said that Delhi Metro, during a recent informal talk with the Foreign Ministry, proposed that metro projects should be tied to India’s aid to African countries, just like ODA Japan (official development assistance), which has such provisions while offering cheaper loans. The officer adds that Delhi Metro is planning to engage in the proposed Dublin Metro project in Ireland. “This is just a preliminary deliberation,” he said. It will take time to find out its winning percentage but Delhi Metro spares no effort to give its business a global footprint.

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