Almost every major Indian city is planning a metro rail system as a solution to its urban transportation. Rajeev Jyoti talks to Venugopal Pillai on the various aspects concerning metro rail projects and why Bombardier is optimistic about rapid urbanisation and the growing market for transport solutions.

Metro projects in India are progressing slower than expected. What are the typical problems that metro projects face?
Developing a metro system is a very capital intensive exercise and needs huge investment. It is much more than construction. A metro system is a complex engineering feat. Talking about rapid urbanisation in India, there is a huge market. A metro system is not merely a mode of transport but also forms the backbone for further transportation modes and also of urban development in the city. This has happened in cities like London, Paris and New York. In any city, construction of metro can never be accomplished soon. It takes intensive planning and coordination, besides investment and technical expertise. Metros are developed in cities that are congested; hence implementation will always be difficult. If cities were not crowded and there were no land constraints, there would have been no need for a metro rail!
In India, there is an ongoing debate on whether the EPC route or the public-private partnership route should be followed for metro rail project. What is your view?
There is no universal law that governs the selection of EPC or PPP routes. It varies from case to case. A good implementation mode is one that works in the interest of everybody. As said earlier, a metro system needs huge investment and when the expected returns to the private developer are low, it is better to use the EPC route. It must also be remembered that a metro system is not just a transport solution but also the harbinger of urban development.
A PPP model is generally a large and complex model where there are multiple partners working together. It is also clear that when we look at PPP model, one needs to be very clear about the long-term commitment that the private consortium has to give to the public authority or government (grantor of concession). When we look at any public transportation, it is clear that these are not very easy to handle for a 30-35 year period, which is usually the concession period. Several "external" situations can develop over a period of time that could go against the transportation mode conceived at any point. Before entrusting large responsibility in private hands, a lot of research has to be done.
Take, for example, Mumbai Metro (Line 1) which is a 17-km elevated corridor between Versova and Ghatkopar via Andheri. Assuming that the line is made, there is a competitive mode of transport that could take riders away from the metro system. The entire economics of a project is based on returns, which is determined by the usage pattern of the metro system. There is also the issue of pricing. Passengers cannot be charged high amount for their travel, and there will be certain regulation from the government. Thus if a private consortium is governed by the authority for ticketing and it has invested heavily in infrastructure, the economics of the project might be defeated.
There is also a point of competing infrastructure. While granting a concession for a metro project, the government would ensure that no competing infrastructure would be created so as to maintain the economic viability of the project. However, there could be a possibility where the government, in true social interest, thinks that the mass rapid transit system is just not working. In this case, the government could be compelled to create or abet the creation of a competing infrastructure. Also in PPP projects, the government has an equity stake, however small. Thus, there could be some "government influence" and there is an element of uncertainty on the ramifications that this could have during the concession period.
How do you see the market for Bombardier's products from India given that almost every major city has planned a metro rail system?
Like anywhere else in the world the metro rail (metro) culture in India is an ever-expanding process. A metro never ends. It keeps growing with the city. This growth opens up newer markets for solution providers like Bombardier. Entering a metro system in any city is more than supplying services. It means establishing a long-term relationship because it means working side-by-side with the customer to optimise the system.
In India, Delhi Metro Rail Corporation has been a big client for Bombardier. Delhi Metro is also expanding and this will continue. In future, there will also be scope for fleet renewal. We are very encouraged by the prospects in India and are confident of increasing our presence in the country.
Mumbai has been grappling with an ideal transportation solution. Growing population and land shortage are major constraints. What is your view?
Mumbai is a crowded city and an efficient public transport solution is absolutely fundamental. Given its linear geographical shape and ever-growing population, there are constraints while devising an ideal transportation system.
Mumbai, in fact, has been lucky to have a very efficient system in the form of the suburban railway that is an effective and efficient public transportation system. It is very well defined for city's geography and population. However, the system is now proving inadequate and sufficient investment is being made to improve the carrying capacity of the system. For instance, the conversion of DC (direct current) system to AC (alternating current) system to enable the running of more and longer trains is an important step. Urban planners are also now working on integrating the three suburban lines—Western, Central and Harbour—and this is where the Mumbai metro has come in.
Working within the constraints of land and growing population, alternatives are being suggested. But again, these should be economically feasible. Underground metro can be a technically feasible solution as was the case with the Delhi Metro where lines have been built 20-30m below the ground with no impact whatsoever felt on the surface.
Monorail is an alternative but these can be used only where routes are not very dense. Monorail cannot carry large number of passengers, as a railway or a metro, but are lighter and easier to install.
What is the current status of Bombardier’s plant to manufacture coaches in collaboration with the Indian Railways.
Land has been acquired at Vadodara in Gujarat. Civil construction has begun. With work progressing rapidly, we hope that the plant should be ready by the end of 2008. We would be investing 25-30 million euros in plant and machinery. The overall investment would be higher considering the softer issues like technology, knowledge etc.
Bombardier is happy with the fact that it would be the first multinational to set up manufacturing facility for railway and metro coaches in India.