Tamal Bandyopadhyay’s HDFC Bank 2.0 book narrates the Puri legacy.

Indian banking industry is not in the pink of health now but that’s largely the story of the government-owned banks. If we look at the private sector, barring a few odd banks which are not the best examples of corporate governance, over the last three decades, the industry has witnessed phenomenal growth with consumerism. The privitisation push in 1991 was a defining moment for the financial sector in India. What we have achieved today would not have been possible without India’s private sector banks like HDFC Bank. It is a child of economic liberalisation.

In the 1990’s, talking about banks as dinosaurs, Bill Gates of Microsoft famously said, “We need banking, but we don’t need banks anymore”. Three decades later, a bank is still relevant and will continue to do so if it’s willing to reinvent itself to be in sync with the changing milieu where it operates – by embracing digitalisation.

From a nimble start-up in 1995 to India’s most valuable banking brand, HDFC Bank has a made  gigantic strides into the world of digital banking under the leadership of Mr Aditya Puri. In a sector marred by controversies, Mr Puri has not just been the longest serving chairman of any bank globally but the face of a world class bank in India. Tamal Bandyopadhyay’s latest book “HDFC Bank 2.0: From Dawn to Digital” narrates this unique story of the  transformation of India’s most valued lender from a life cycle bank to a lifestyle bank. 

For starters, let me remind you that this book is not a sponsored project. It chronicles the HDFC Bank story warts and all. While highlighting the bank’s unique features, Tamal also criticises the unforgivable mistakes done by HDFC Bank during this journey through his unparalleled  writing skills. 

One of the key reasons why Indian banks were largely unaffected  during the Global Financial Crisis of 2009 was the fact that they were truly connected with their roots. During that  period, Mr Puri had guided HDFC Bank to add branches and ATM network in tier three cities and rural areas. The expansion drive created the credit card, auto and home loan boom. The book describes how  a bank reaching out to person for a loan – and not  the other way round - creates a new sense of trust in the aspirational class of India.

The era of Digital Disruption

Mr Puri believes that digitalisation and disruption are intertwined. Whenever there’s change, people tend to panic but if handled correctly, it can open up new beginnings. HDFC Bank saw this transformation ahead of others. During his Silicon Valley trip in 2014, Mr Puri saw how the fintech companies – the new kids on the  tech block – were venturing into fund transfers, mobile banking and shopping. They could build products that could give instant loan with slick user interface on their phones. Home grown fintech innovations like the United Payments Interface (UPI) were set to transform the way we Indians bank.

“Why don’t we disrupt ourselves instead of waiting to be disrupted by fintech companies? Why can’t we give a loan in 10 seconds? Why can’t we invent something to transfer money in just a click? HDFC Bank aspires to become a financial marketplace. It wants to be India’s Alibaba or Netflix when it comes to banking”. - Mr Aditya Puri, Chairman & Managing Director, HDFC Bank.

HDFC Bank first tied up with Chillr, an app which sends money over the phone using a UPI technology. A BharatQR code-based payments service named PayZapp is popular in many stores. The bank has also used AI for many applications like chatbots and social media interactions. Indigenously developed IRA robots have been deployed at several branches to solve customer queries. 

While adopting this technological shift, there were times when the bank failed on the customer front. For instance, the HDFC bank app crash in November 2018 became a hot topic in the media and  the bank was subjected to national outrage and ridicule. The book – “HDFC Bank 2.0: From Dawn to Digital” – clinically  chronicles the journey over the years.

About the book

Tamal Bandyopadhyay’s HDFC Bank 2.0: From Dawn to Digital is published by Jaico Publishing House. The book was launched by Rajnish Kumar, Chairman, State Bank of India at Nehru Centre, Mumbai. Aditya Puri, Managing Director, HDFC Bank Ltd  and many  luminaries in the financial services industry were present there. Tamal Bandyopadhyay is an author, columnist and keen watcher of banking and finance. His Banker’s Trust column, which now appears every Monday in Business Standard, is the most popular column on banking and finance with over half a million followers on the Linkedin platform.

“Tamal combines his financial knowledge, eye for detail, and an excellent storytelling style to create a vivid portrait of India’s most valued bank and its path to future” - Nandan Nilekani, Co-foundar & Chairman, Infosys & founding chairman of UIDAI, has written in his forward to the book.

HDFC Bank 2.0: From Dawn to Digital (ISBN: 978-93-88423-35-9) are now available at Crossword, Amazon, Flipkart and other leading book stores.

Expats ❤️ India

Working in India is in demand as expats here earn more than double salary than the global average.

With the world opening up its markets for business, multi-national companies have established their business presence all over the world. Due to regional and religious disturbances, the global economy is going through turbulent times. Countries like India, China and ASEAN economies have cushioned the damages with its high growth markets. In the words of PM Modi, India has 3Ds to offer to the world - Democracy, Demography and demand. India is the youngest democracy in the world. Doing business all over the world is made possible by the personal and professional commitment of expats. Expats, despite being having political and cultural difference make key decision making roles for the organisation. HSBC Expat Survey is an online survey taken in 46 countries with the input from lakhs of expats working globally. The report sheds some unique insight on expats living in India and Indians working abroad.

Key Findings - HSBC Expat Survey

- Singapore is the world's best overall destination for expats.

- New Zealand is the best destination for an experience. 58% of expat respondents felt an improvement in the quality of life.

- The Netherlands is the best destination for family. Expats feel it has one of the best education and healthcare systems.

- Switzerland is the best destination for economics. It is the highest rank country for confidence in the local economy and political stability.

- 41% of expats feel that the move has given them a positive outlook on life.

- 62% of expats own property somewhere in the world, with 9% both at home and abroad.

- USD 99,990 is the average income of an expat.

- 47% of expats retired abroad did so for a better climate and 44% for an appealing lifestyle.

Expats ❤️ India

India draws many expats for work and financial opportunities, but new arrivals often find an improvement in family ties. Family forms an essential part of the Indian culture, thus reflecting in family-friendly labour laws. Pregnant women here enjoy one of the highest paid leaves. India enjoys a higher work-life balance than other European or American countries.

India is always on the move. India has earned its fastest growing economy tag due to consistent large-scale economic reforms. Expats living in India are confident in the local economy. Despite having many regional and national political parties, India enjoys political stability due to its democratic style of functioning.

India has recently taken a giant leap in Ease of Doing Business. More than half of expats living in India feel that it is easy to start and do business in India. Expats in India also enjoy one of the highest salaries in the world. An average expat working in India draws an annual salary of USD 1,76,000.

India has a long way to go. Mumbai, the financial capital of India currently lacks world-class infrastructure. Morning and evening rush hours are deadly with more than 10 deaths in the super jam-packed Suburban railway system. Mumbai is investing heavily in developing metro systems and expressways, but higher domestic demand and limited supply may not be enough. Despite this, real estate prices in Mumbai rival to Manhatten.

Despite being looted and tortured by white skins for several hundred years, Indians strongly believe in Athihi Devo Bhava (Guests are equivalent to God) and Vasudhaiva Kutumbakam (The World is one family). Expats working in India feel that their family life is improved significantly. Expat children easily make good friendship with Indian kids. The role of common language - English also plays a significant role in nurturing cordial relations.

In contrast, the HSBC expat survey reports that Indians working abroad draw lower salary than the global average. Expats working in India's largest city, Mumbai can typically expect to bring home a sizable $217,165 salary whereas Indians expats working abroad draw an average salary of USD 86,000.

- Chaitanya Kulkarni

Virgin Hyperloop signs MoU to develop network between Mumbai and Pune

Virgin Hyperloop has signed MoU with Government of Maharashtra to develop the network between Mumbai and Pune.

Virgin Hyperloop One Chairman Sir Richard Branson announced the Framework Agreement in the presence of the PM Narendra Modi and Maharashtra CM Devendra Fadnavis to begin the development of the route. This historic signing at the Magnetic Maharashtra Convergence 2018 event. The event portrays Maharashtra as an investment destination and showcases its infrastructure projects.

Recognizing the Maharashtra government’s contribution to the country’s economy, Indian Prime Minister Narendra Modi said, “51 per cent of total investments in India have come to Maharashtra, and the state is attracting global investors. The state’s overall development in the past few years is a shining example of change thinking and improving conditions in the country. Maharashtra government was ahead of all other Indian states in terms of infrastructure spend and the state is on its way to achieving its bold vision of a trillion dollar economy.”

“I believe Virgin Hyperloop One could have the same impact upon India in the 21st century as trains did in the 20th century. The Pune-Mumbai route is an ideal first corridor as part of a national hyperloop network that could dramatically reduce travel times between India’s major cities to as little as two hours,” said Sir Richard Branson. “Virgin Hyperloop One can help India become a global transportation pioneer and forge a new world-changing industry.”

Pune to Mumbai via Navi Mumbai International Airport in just 25 minutes.

The Hyperloop route will link central Pune, Navi Mumbai International Airport, and Mumbai in 25-minutes, connecting 26 million people and creating a thriving, competitive megaregion. The high-capacity passenger and cargo hyperloop route eventually will support 150 million passenger trips annually, saving more than 90 million hours of travel time, and providing citizens with greater opportunities and social and economic mobility. The Hyperloop system will also have the potential for the rapid movement of palletized freight and light cargo between the Port of Mumbai and Pune, creating a robust backbone for on-demand deliveries, supply chains, and next-generation logistics.

The Pune-Mumbai route could result in USD $55 billion (INR ₹350,000 crores) in socio-economic benefits (time savings, emissions and accident reduction, operational cost savings, etc.) over 30 years of operation, according to an initial pre-feasibility study completed by Virgin Hyperloop One. The 100% electric, efficient hyperloop system will ease severe expressway congestion and could reduce greenhouse gas emissions by up to 150,000 tons annually.

The Pune-Mumbai hyperloop route will be an economic catalyst for the region and create tens of thousands of jobs for India’s world-class manufacturing, construction, service, and IT sectors and aligns with Make in India initiatives.

The Pune-Mumbai hyperloop project will begin with a six-month in-depth feasibility study which will analyze and define the route alignment including environmental impact, the economic and commercial aspects of the route, the regulatory framework, and cost and funding model recommendations. The feasibility study will build upon the findings of the pre-feasibility study signed in November 2017 between the Pune Metropolitan Regional Development Authority and Virgin Hyperloop One.

The project will enter a procurement stage upon the successful completion of the feasibility study to determine the public-private partnership structure. Construction of the Pune-Mumbai hyperloop route would commence after procurement and will be completed in two phases, beginning with an operational demonstration track built between two points on the route. The demonstration track will be constructed in two to three years from the signing of the agreement and serve as a platform for testing, certifying, and regulating the system for commercial operations. The second phase will target to complete construction of the full Pune-Mumbai route in five to seven years. Future projects could also extend the route to link central Pune with the New Pune International Airport and Jawaharlal Nehru Port in Mumbai with Pune’s industrial economic zones.

“The Pune-Mumbai hyperloop project will ultimately be executed by a public-private partnership which will save taxpayer money while delivering a transport option that will help the State of Maharashtra support economic growth, improve sustainability, and meet the transport demands,” said Kiran Gitte, CEO of the Pune Metropolitan Region Development Authority.

The city of Amaravati and Vijayawada also plans to develop a hyperloop network. India is now considering a 10,000km long high-speed bullet train network. While bullet train is tested technology for long distance travel, a close intra-state travel could be served well by Hyperloop.

– Chaitanya Kulkarni

ONGC makes major oil and gas discoveries at Mumbai High

State-run Oil and Gas company, ONGC has made significant oil and gas discovery west to Mumbai High fields. Bombay High (now Mumbai High) is an offshore oilfield located in the Arabian Sea, approximately 160km west of the Mumbai coast. Discovered in 1974, the field started production in 1976 and is operated by Oil and Natural Gas Corporation (ONGC).

The Mumbai High field currently holds 1,659 million metric tonnes (MMT) and is producing approximately 16 MMT of oil per annum, which is 44% of India’s total crude oil production of 36 million tonnes.

The information was received by a reply to LokSabha by Dr. Dharmendra Pradhan, India’s Petroleum and Natural Resources minister. Dr. Pradhan said that the discovery was made in the well WO-24-3 (WO-24-C) drilled west of Mumbai High fields. Based on the data generated during drilling, 9 objects/zones were identified and on testing all the objects flowed oil/gas. The discovery has indicated potential in-place reserves of about 29.74 million tonnes of oil and oil equivalent gas.

Dr.Pradhan informed the lower house,“ the 9th object on testing flowed oil at the rate of 3,310 barrels per day and gas at the rate of 17,071 cubic meters per day,” the minister said. “This multi-layered oil and gas accumulation in this well opened up the new area for exploration/development.” Mumbai High, India’s biggest oil field, currently produces 205,000 barrels of oil per day (just over 10 million tonnes per annum) and the new find would add to that production in less than two years’ time.

Upon the discovery, ONGC’s stock on Bombay Stock Exchange traded in green by a jump of 2% in an intra-day.

Recently, India opened 2.8 million sq km of sedimentary basins for oil and gas exploration with a view to raise domestic production and reduce dependence on oil and gas imports. Under Open Acreage Licensing (OAL), $5-6 billion in exploration activities and another $20-30 billion for development activities is expected.

Source – PTI.

Originally published on MarineBharat.com

The economics behind bullet train

The best way to travel in India is the Indian Railways. The glory of India, the railways is one of the largest rail networks in the world. It is well connected with major cities and district heads and comparatively cheap when compared to Roadways. Sleeper class ticket on Vivek Express, India’s longest running train from Kanyakumari to Dibrugarh (4244 km and 80-hour journey) costs little more than Rs 1000. Indian Railways has prospered growth wherever it reached. It is extremely well connected but it is very slow when compared to High-Speed Rail Systems. India’s second fastest train, the New Delhi – Bhopal Shatabdi express covers a distance of 708km in 8 hours and 25 minutes averaging at 83 kmph. In comparison, the Beijing – Guangzhou covers the distance of 2,298 km in just 8 hours averaging at 287 kmph.

India has the demography and the money to implement high speed railway to its length and breadth. High-speed corridors currently under consideration are Mumbai – Ahmedabad, Bengaluru – Chennai, Delhi – Chandigarh, Mumbai – Nagpur, Trivandrum - Kannur and Vijayawada – Amaravati. Mumbai – Ahmedabad is one of the oldest planned routes for HSR and the first to be implemented.

As planned by National High-Speed Rail Corporation of India, the Mumbai – Ahmedabad HSR route will be 508 km long and would have 12 stations namely – Bandra Kurla Complex, Thane, Virar, Boisar, Vapi, Billimora, Surat, Bharuch, Vadodara, Anand, Ahmedabad and Sabarmati. The Shinkansen E5 series train is likely to connect two International Financial Services Centres in just 2 hours. G block in BKC is proposed to be Mumbai’s IFSC centre and aims to bring trillion-dollar investment with its 6,05,000 sq metre investment arena. Gujarat International Financial Tech City (GIFT City) is amongst India’s finest emerging smart cities (359 hectares) and IFSC centre. It plans to create 1 million jobs in finance, fintech and arbitration by 2022 and has recorded transactions worth $4 billion since operations. GIFT City was recently ranked 10^th in Global Financial Centre Index, ahead on Luxembourg, Seoul, Abu Dhabi and Beijing. BKC – Sabarmati bullet train routes will also connect major tier 2 cities namely Surat and Vadodara and is likely to spur the growth of emerging smart cities on the route.

The proposed cost of Mumbai – Ahmedabad high-speed rail is estimated at Rs 1,10,000 crore. Japan International Cooperation Agency has come forward to provide the loan of 88,000 crore at just 0.1%, much less than London Inter-Bank Operating Rate of 4%. International loans to India are generally provided at the rate of 5% (LIBOR 4% + 1% interest). India has agreed to pay back the loan amount in Yen after 50 years from today and with the moratorium period of 15 years.  The per km cost is expected to be (110000 cr divided by 508 km) 216 crores. The state government of Maharashtra and Gujarat will share 25% cost respectively.

There has been a national debate in Indian Media on the cost and need of the project in the wake of Mumbai Stampede incident which killed 23. Bullet Train is an inter-city model and it cannot be compared with 150-year old Mumbai Suburban Railway. Similarly, investments in Shatabdi and Rajdhani Express cannot be compared with Mumbai local. The only valid comparison with Mumbai local would be intra-city Mass Rapid Transport Systems like metro, monorail, Maglev or Metrino Pod technology.

Per Kilometre Cost of Proposed projects along with Bullet Train

Mumbai Metro 3 (24,000 crore divided by 33 km) = Rs 727 crore

Mumbai Metro 2 (17,000 crore divided by 42 km) = Rs 404 crore

Mumbai Trans Harbour Sea Link (18,000 crore divided by 22 km) = Rs 818 crore

Bandra Versova Sea Link (7500 crore divided by 17 km) = Rs 441 crore

CSTM – Panvel Fast Corridor (12,000 crore divided by 48 km) = Rs 250 crore

BKC Sabarmati Bullet Train = Rs 216 crore

Mumbai Monorail (4,000 crore by 20 km) = Rs 200 crore.

Political opportunists are unaware about financial models of bullet trains and are spreading misinformation about the project to gain political points in upcoming elections. Japan is willing to lend us a huge amount at low rates keeping in the account of demography and financial strength of India’s growing middle class. The project is not intended towards the rich and speculations regarding the fare being high as Rs 5,000 is totally untrue. With Mumbai – Vadodara expressway (Rs 44,000 crore project) in tendering, people who are on a low budget could also travel to Ahmedabad in ST corp. bus under 6 hours.

theindiancapitalist.com is of an opinion that the fare of economy class of BKC – Sabarmati bullet train will be below Rs 1000 for a single journey.

Projected income* of BKC – Sabarmati Bullet Train route

Total passengers per train - 1,200.

Trains per hours – 8 trains from both direction. Each train departs with the gap on 15 minutes on average.  

Total operating time – 5 am to 12pm (19 hours)

Projected passenger ridership per day – 1,82,400. (1200 x 8 x 19 hours)

Average fare per person = Rs 800.

Projected daily income = Rs 14.5 crore

Projected yearly income from passenger fare = 5325 crore.

Non-fare revenue model – Vehicle parking, electric charging of e-vehicles, feeder transport, passenger amenities, food in trains, shopping malls in stations, duty-free liquor store in Maharashtra state, advertising revenue, station renaming (SBI Thane station), in-train entertainment system, passenger lounges.

Projected yearly non-fare revenue – Rs 3,000 crore

Total projected revenue = Rs 8325 crore.

Projected commercial profitability = Rs 1,10,000 crore divided by 8325 crore = 13 years & 2 months.

*- Subject to approximation.

India, being the IT hub of the world shouldn’t shy away in adapting new transportation technologies. The Mumbai – Ahmedabad bullet train project is set to provide reliable and comfortable service with high standards of safety. When the first Rajdhani Express was introduced in 1969, it collapsed the journey from New Delhi to Dibrugarh to just 17 hours from 24 hours. The ticket price of brand new Red Rajdhani was just Rs 90 for AC Chair Car. It was immediately branded by politicians and media as elitist.

One must be careful not to confuse leapfrogging technology development with elitism whether it is mobile phones, satellite launches, regional air-connectivity or high-speed rail.

- Chaitanya Kulkarni

Welcome FY 2017-18. What it means for you and India

FY 2016-17 was a unique year for Indian financial systems. Breaking the age-old tradition of presenting budget on the last day of February. Finance Minister Arun Jaitley, for the first time in the history of India presented the combined rail and general budget on the first day of February. In the era of uncertainty, India stood as a shining star with the tag of ‘Fastest Growing Economy on the planet’. Industry players were sceptical about India’s growth story after the controversial move of demonetisation. The sudden banning of big notes costed India a dip of 0.6% in its GDP but a large section of people supported the move as some referring it to a ‘Surgical Strike on Black Money’. For the very first time, millions of Indians got the chance to use digital payments platforms. PayTM and the government promoted BHIM is now on the ‘Never to delete’ list in our smartphones. Will FY2017-18 be the beginning of the ‘Achhe Din’? Let’s analyse.

India’s role in the Global Economy

The world economic growth for 2016 at 3.1% was the lowest since the 2008 Financial Crisis. The never ending Middle East war, China’s slowdown, low oil prices, Brexit impacted with major cuts in growth estimates. The situation looks slightly better for upcoming year.

India has become the sixth largest manufacturing nation in the world, rising from the previous ninth position. Recognising the strength of strong economic fundamentals and consumer demand, the impact of demonetisation will gradually fade away. The World Bank expects India’s economy to grow at 7.6% in FY2017-18. Here are the key takeaways from Central Statistic Organisation outlook for FY2017-18.

Retail Inflation - 4% to 4.5% | Fiscal Deficit – 3.2% of India’s GDP | INR - ₹64 to ₹66

Among emerging economies, if there is any growth, that is in India. India is among the few bright spots in the global economy – Christine Lagarde, Chief, IMF

Goods and Service Tax

GST is the most anticipated single indirect tax for the entire country, which aims to make India one unified common market. Important bills related to Central GST, State GST, Inter-state GST and UT-GST are currently under consideration in Rajya Sabha. The four tier GST structure of 5%, 12%, 18%, and 28% is likely to be implemented by July 1, 2017. The bill is hailed by industry experts as it likely to lead to ease of doing business, competitiveness and spurring growth. CBEC GST Mitra helpdesk is well equipped to deal with queries related to GST.

The JAM troika

Jan dhan, Aadhaar and Mobile. These three words changed the way we pay. To ensure last mile reach, government encouraged people all from the sections of the society to open a bank account and use RuPay debit card.  With 40 crore Aadhaar linked accounts, more attention was given to ‘the way we pay’. The game changer move of payments bank was quickly adopted by India Post, PayTM, NSDL and others. India Post Payment Banks has plans to create 1.55 lakh access points in 650 districts across the postal networks through-out India. Payments Bank operating in rural India have herculean task to ensure that Rural Bharat and Urban India is on the same page when it comes to digital payments.

Aadhaar enabled fingerprint payments are more sophisticated than Apple Pay and Samsung Pay as it rules out the need of internet. Fintech experts are cautious about the security concerns in Aadhaar Pay but ‘When there is will, there is a way’.

Digital India – Internet for everyone.

Last year, Kerala became the first state in India to declare internet as basic necessity. Internet is key for last mile delivery of government services in future. Bharat Net, a massive fibre optic cable laying initiative in all village panchayat across India will complete 2 lakh kilometres by the end of FY2017-18. Nearly 500 railway stations in India will enjoy high speed internet services.

The launch of SWAYAM online platform with over 1500 courses and its tie up with DTH channels is a welcome move to take quality education to the masses. The launch along-side Bharat Net will enable students across India to learn new skills and yield institute approved certificates. The IITs and IIMs of this country will now go online, certainly a great initiative for avid learners of India.

Basic healthcare information on a smart Aadhar Card will be the first step as unique health identifier for the country. This will be critical in identifying beneficiaries for social healthcare insurance programs. E-health through Aadhar would substantially save patient’s time during emergencies.

The way we travel

A great start to a great year. Gurgaon Rapid Metro has commenced operations for its 6.6 km phase II. Kochi Metro (25.1 km), Delhi Metro Magenta Line (38 km) and Lucknow Metro (8.4 km) will commence operations in FY2017-18. Construction of all 9 additional lines ie. Line 2 to Line 10 (approx. 160 km) of Mumbai Metro project will begin after monsoons. The metro rail policy will be introduced with the focus on innovative models of implementation, financing, standardisation and indigenization of metro related hardware and software.

India’s semi-speed initiative, the Tejas express is likely to run between Mumbai – Goa, Mumbai – Surat and Delhi – Amritsar in FY2017-18. Indian Railways plan to redevelop 400 railway stations before 2025. Bids for more than 25 stations will be placed by the end of the year. Indian Railways may become the first railway in the world to run solar enabled trains.

Mumbai becomes the first city in India to implement electric buses on a large scale. BEST will run 25 electric hybrid buses made by Tata Motors on BKC route. 2017 will be the founding year for green mobility in India. Governments plans to implement green mobility projects worth Rs. 70,000 crores in upcoming years. This includes 2,000 kms of Bus Rapid Transport Corridors, hybrid buses, cycle & walk tracks, public cycle sharing schemes and intelligent transport solutions.

In bid to revive regional connectivity via air, Ude Desh ka Aam Nagarik (UDAN) scheme will connect to more than 75 small cities under Rs. 2,500. In Phase 1, 43 airports and 5 carriers were selected. It is the largest ever attempt for regional connectivity in the world. The move may attract airline manufacturers to set up plants in India.

Cheers for New India

The world’s fastest growing economy is changing rapidly with the innovative use of technology. The urge to do better and transform the lives of masses fuels the energy for new India. Emerging economies like India are a support system for global economy in the times of slowdown. Cheers for cleaner, greener and better India.

- Chaitanya Kulkarni

India Infrastructure Update - Operational Metro Systems ( August 2016 )

Urban transportation infrastructure in India needs big investment and a massive upgradation. It is estimated by various studies that 60% of Indians will be living in urban areas by 2050. After the success of Delhi Metro, lots of Indian cities are exploring the option to implement metro rail project across the country. As per Ministry of Urban Development (MoUD), about 316 kilometres of Metro rail is under operation and more than 500 kms of Metro rail is under construction across the country. This includes metro/mono rail systems promoted by state governments and private bodies under their own arrangements. It is important to note that urban transport is a state subject. Thus, the planning, execution and development of urban transport facilities are done by the states and union territories.

Smart Cities which are under execution of MoUD are incomplete with metro rail systems. China has 20 metro rail systems under operations and additionally investing trillions of Chinese Renminbi on bullet trains and maglev. India's first mono-rail ( Phase 1 ) is operational in Mumbai and final phase is expected to be completed by December 2016. Meanwhile, MoUD and National Highways Authority of India gave final approval to Metrino Pods system in Gurugram. As India mulls innovation in public transport, transport analyst are aware of the fact that Metro is the only viable option for India looking as population and financial constraints.

Metro Systems operational in India 

Delhi Metro

Operational: 213 km | Under Construction: 136 km | Proposed: 105.93 km

Brown Line - Janakpuri West - Botanical Garden will use Hyundai Rotem Driverless train

The 65.1 km Phase 1 was completed in 2006 while the 124.93 km km Phase 2 was completed in 2011. Currently the 159.327  km Phase 3 is under construction of which 23 kms has become operational. The rest 136 km of lines will open in sections one after the other from 2016 – 2018. Phase 4’s initial new lines & extensions have been finalised and construction is expected to begin in 2018. Within the next 3 years, more routes are expected to be added to Phase 4.

Kolkata Metro

Operational: 28.14 km | Under Construction: 63.39 km  | Approved/On Hold: 32.48 km

AC variant of Kolkata Metro coach manufactured by ICF, Ministry of Railways. Kolkata Metro has also ordered 14 new trains from CNR Dalian, China. 

Construction for it started in 1972 and a small 3.40 km section between Esplanade and Netaji Bhavan opened in October 1984, making it the first metro system in the country. Between 1984 and 1995, more sections opened up bringing its total length to 16.45 km. Kolkata metro was extended by 10.94 km to New Garia station which is also known as Kavi Subhash station.

Mumbai Metro

Operational: 11.4 km | Under Construction: 0 km | Approved: 68.2 km | Proposed: 77.3 km

Western Expressway Bridge in Andheri

Operational : Versova – Andheri – Ghatkopar – 11.4 km

Executed & operated by a JV of Reliance Infra (69%), MMRDA (26%) & Veolia Transport (5%)

Approved ( Construction to begin in September/ October 2016)

- Colaba – BKC – SEEPZ –  33.5 km

To be executed & operated by Mumbai Metro Rail Corporation Ltd – GOI (50%) & GoMH (50%)

- Dahisar – DN Nagar – 18.2 km

This line is part of the larger 40 km line between Dahisar & Mankhurd. To be executed by the Delhi Metro Rail Corporation

- Dahisar (E) – Andheri (E) – 16.5 km

This line is part of the larger 24 km line between Dahisar (E) & Bandra (E). To be executed by the Mumbai Metropolitan Region Development Authority.

Namma Metro ( Bengaluru )

Operational: 30.3 km | Under Construction: 27.1 km | Approved: 59.32 km | Proposed: 102 km

Cubbon Park Metro Station on Namma Metro's underground stretch

Construction for the first phase started in April 2007 following which the Baiyyappanahalli – MG Road  section of the Purple line opened in 2011. The 42.3 km Phase 1 is expected to be completed in 2017. After Phase 2 is completed in 2024 (est), the metro network will become 114.4 km long.

Rapid Metro ( Gurugram )

Operational: 5.1 km | Under Construction: 7 km

In Phase 1 of the project which opened on November 14 2013, a 5.1 km line was built to link the Delhi Metro’s Sikanderpur station (Yellow line) with the business district of DLF Cybercity. As part of Phase 2, this line is currently being extended by 7 km on Golf Course Extension Road and is expected to be completed in 2018.

Chennai Metro

Operational: 10 km | Under Construction:  35.1 km | Approved: 9 km | Proposed: 132 km

Construction for the first phase started in April 2009 following which the Koyambedu – Alandur section of the Blue line opened in June 2015. The 45.1 km Phase 1 is expected to be completed in 2019. A further extension of the Blue line as part of Phase 1 to Wimco Nagar is expected to be completed by 2020. Phase 2 of the project is currently in the proposal stage and in its latest avatar has been proposed to be 123 km long.

Jaipur Metro

Operational: 9.63 km (Phase 1A) | Under Construction: 2.35 km (Phase 1B) | Proposed: 23.099 km

Construction for its 9.63 km Pink line under Phase 1A started in 2011 and became operational in June 2015. Construction on Phase 1B, a 2.35 km extension of the Pink line, started in January 2014 and is expected to be operational in 2018. Phase 2 of the project includes a new Orange line which will connect the heart of the city with the Airport and onward to the Sitapura Industrial Area. This line is planned to be built on the Public-Private Partnership (PPP) model and is yet to be approved.

Information Source - themetrorailguy.com

- Chaitanya Kulkarni