"- There are health and other environmental benefits to thepublic due to reduced pollution from the transport sector ofDelhi. - Land and house property owners have gained from theincreased valuation of house property prices due to the Metro. - The Metro has the effect of increasing the income of theregional economy of Delhi vis-a-vis the rest of the Indianeconomy. Given that the per capita income of Delhi is farhigher than the national per capita income, the redistributionof income in favor of Delhi may not be desirable from the pointof view of income distribution in the Indian economy. - The Metro provides employment benefits to the unskilled laborespecially during its construction period.Financial Challenges of DMRC:? Project financing issues – DMRC faced a lot of fundingproblems as the Central Govt. didn’t had enough moneyand no foreign investment was accrued due to economicsanctions after the Pokhran - 2 Nuclear Test. Now in orderto attract foreign investment, GOI decided to construct apart of the project. This in turn attracted The Japan Bankfor International cooperation to invest in the project.? Low Financial IRR was a major concern in the early stagesof the project.? One project day lost accrued huge losses of INR 5 million.? Cost control issues – Due to very high expenditure, efficientcontrol of money became a problem for which DMRC splitoverall expenditure into three heads namely Manpower,Energy and Material including maintenance.? Recruitment problem – Skill shortage, training problem, lackof experience.17 ? Corruption rendered obstacles to the DMRC project but theGovt. of India ensured a corruption free model for theproject and attracted heavy foreign investments.? Planning obstacles – Lack of funds, political interference andlack of professionalism and accountability issues.? Land acquisition and property disputes.? Relocation of people evicted from their property proved to bea major problem.? Legal problems as an outcome of the Delhi Metro Act underwhich 400 cases were filed against DMRC.Conclusion and Future Prospects:Through this study and the case of interest, we have observed thatProject Financing has emerged as the new method of financing highend projects. Since Corporate projects are of a different nature thanthat of Govt. projects and similar kinds, thus the concept of ProjectFinancing holds strong. With the non-recourse nature of ProjectFinancing, we have learnt that proper forecasting and estimation offuture cash flows of any project becomes a crucial element for theproject’s feasibility.As it is evident from the case study of DMRC, funding challenges doarise even for the Govt. to undertake any Infra project; thus a needfor traditional infrastructure investors is high. Attracting Greenfieldinvestments to the Infrastructure sector is also needed. For this,controlled market regime needs to come to an end.Competitive Restructuring of policies and regulatory agencies seemsto be the first and foremost priority for a developing economy likeours. Engaging private investors into clearer projects and ensuringGovt. cooperation shall help minimizing the funding risks in theInfrastructure sector.18 Also, PPPs need to be strengthened, as many a time public agenciesare unable to negotiate with the private institutions ontechnological, legal and financial grounds. Thus, institutionalcapacities need to be strengthened. With all the limitations in mind, such as time and our knowledge ofthe sector, we perceive that Project Financing is one method bywhich any developing economy like India can grow provided marketconditions remain favorable and political framework remainstransparent and robust. From the recent Budget, we have observedthat the Govt. of India is pushing the Infrastructure sector with thenecessary funds and strengthening the PPP concept. With this inpurview, Infrastructure Project Financing seems to have new doorsfor sustainable development. 19 Works CitedDelhi MRTS, C. a. (n.d.). http://www.delhimetrorail.com/otherdocuments/funding.pdf. Retrieved fromdelhimetrorail.M N Murty, K. K. (2006, October). Social Cost-Benefit Analysis of Delhi Metro.UNTT Working Group on Sustainable Development Financing. (n.d.). Challenges in raising private sectorresources for financing.20 "