 While extensive technical studies and the raising of finance for the project were in progress , the city expanded significantly resulting in a twofold rise in population and a fivefold rise in the number of vehicles between 1981 and 1998 . Consequently , traffic congestion and pollution soared , as an increasing number of commuters took to private vehicles with the existing bus system unable to bear the load . An attempt at privatising the bus transport system in 1992 merely compounded the problem , with inexperienced operators plying poorly maintained , noisy and polluting buses on lengthy routes , resulting in long waiting times , unreliable service , extreme overcrowding , unqualified drivers , speeding and reckless driving . To rectify the situation , the Government of India and the Government of Delhi jointly set up a company called the Delhi Metro Rail Corporation ( DMRC ) on 3 May 1995 , with E. Sreedharan as the managing director . 
