Time and Cost Overrun in Hyderabad Metro Rail Project

ail project.

Complex project

The Hyderabad metro rail project is the largest projects taken up in the Public-private partnership (PPP) mode and made huge investments in the project. This huge investment is not only in terms of the cash ,but in terms of the knowledge ,also that needs years of experience and technological advantages for accomplishing the entire project. Reddy and Pimplikar, (2015)  illustrate that this project is a huge mess from the starting day due to failure of the clarity over starting operations and reinstates their irresponsible attitude and lack of commitment towards the city. Moreover, in this case, the project engineers failed to deploy traffic marshals that at the starting of the project ensures the smoothness of the movement of vehicles and diminishes the woes of people at many station of the metro stations like Punjagutta, SR Nagar and Habsiguda (Bharath et al., 2015). In addition to that, the lack of transparency between the government and project concessionaire that is the Larsen & Toubro (L&T) is another major reason for delaying the project.

Impact of cost  metro rail project

The impact of cost on this project is high and the state government and central government have made a collaborative investment. Sharma et al., (2013) illustrates that this project already invests a huge amount in the completion of the project. This author also opts that not only the investments is utilized for the raw materials and the resources but a huge portion of amount is also utilized in supporting the workers and the professionals who are in charge of the project. The delay of cost and time affects the overall project and the extra investment of the money from the government.

Impact of time in metro rail project

Das (2014) argues that the state government has ordered the company to complete the project on time. The major concern of this research is to identify the reasons behind these problems. This particular study will try to investigate on these two overrun issues in Hyderabad metro rail project. The impact of time is facing by the local people that can be evaluated by the issues of Traffic on the Khairatabad-Punjagutta stretch, where the roads are chocked owing to metro work ("NDTV", 2016). Whitworth, (2015) also added that between Begumpet and Paradise circle the lanes become shorter due to the huge pillars that is constructed for the metro rail project.

Impact of social development due to delay in metro rail project

In this section, the impact of social development is going to be discussed. It is evident that the delay of project affects other work and way of living of the local people. The half-constructed pillars for this metro rail project create traffic jams that result in delay of daily works of the people. Moreover, the human culture in these places is not bothersome about the inconvenience and to traffic. This amount can be utilized in the education system and better housing system so that  they can also feel the development in their society. In addition to that, the natural resources that are used in the project causes deforestation and affects land include plants, water resources and landscape. McMichael, (2016) depicts that sometimes neighborhood infrastructures needed to be collapsed and the people living there have to be shift to another place. This creates a huge conflict and feeling of annoyance in the communities for the state government. All these factors diminish the overall social development. Bayley, (2015) on the other hand mentions that, India is a country where political plays a crucial role and there are several oppositional parties, who always oppose these activities that also creates an additional adversity in the state.

Aim of the research

The aim of the research is to evaluate the current problem of the Hyderabad Metro Rail project in terms of cost, money and problem faced by the locals. As a result, this research is used to analyze the reasons behind this major issue in Hyderabad metro rail project. The total timeline cost for conducting the entire research will be $50,000 where the monetary finance is required to collected the data primarily directly from the local people. The project resources are the engineers, who are associating in the metro rail project and the managers, who are supervising the project and the community who defines the exact impact for the delay of the project.

Research Objectives

• To evaluate the status of Hyderabad metro rail project
• To find out the overruns reasons of time happened in the metro rail project in   Hyderabad
• To uncover the facts of overruns of cost occurred in the metro rail project in Hyderabad

• To determine the impact of the social development in Hyderabad by this delayed metro rail project

Research Questions

• What is the status of Hyderabad metro rail project?
• Why overruns of time happened in the metro rail project in Hyderabad?
• Why overruns of cost occurred in the metro rail project in Hyderabad?
• How the social development in Hyderabad has been affected by the delay in the metro rail project?

Structure of the research

Figure 1: Conceptual framework

The conceptual framework of the research is illustrated in the above diagram, which comprise of the introduction of the research topic and then followed by the literature review. This section comprises the current state of Hyderabad metro rail project that emphasizes on the pending clearance and investment made on the complex project. In addition to that the literature of the research highlights the impact of cost and time in metro rail project and the impact on the social development due to delay in metro rail project. Furthermore, the research will comprise of the research aim, objectives and methodology through which the data is collected. Data collection and data analysis are two procedures under data collection. Data are being collected for accomplishing the data, which is further analyzed through methodological analysis and gather an overall idea through various research made by other authors and news blogs and government updates. Lastly, the project cost will be present for estimated cost for conducting the research and find out how the social development in Hyderabad has affected by this delayed metro rail project.

Research Methodology

Introduction

This section emphasizes on the research approach that is taken into consideration for accomplishing the entire research work. Mackey and Gass, (2015) argues that research methodology is a systemic process that describes the numerous types of relevant concepts and ideas that help to obtain the overall conclusion of the research. This section comprises of Analysis of the problem, research paradigm, unit of analysis, data collection process and analysis, research method and data analysis technique.

Analysis of the problem

The problem that will be analyzed in the research is the effect of cost and time that is caused due to the delay of the Hyderabad metro Rail project. The rationale of the research is to find the reason for the delay of the Hyderabad metro rail project and the locals are facing problem during this delay.

Research paradigm

Research paradigm provides the dimension and knowledge that helps to proceed with the research and attain basic facts, knowledge and concepts and are of three types- positivism, interpretivism and realism. Positivism signifies the ideas and concepts that is directly associated with the literature, interpretivism defines that the personal belief and value that highlight the real facts and realism demonstrates the existing beliefs and theories that support the research problem. In this research, interpretivism is used as people depict their view to interpret their trouble regarding the delay of the project. In the research the secondary sources like newspaper articles and blogs that are being selected is a personal and social reflection of the journalists or some experts. These sources highlights the existing situation of the metro rail project which will help to get an appropriate reason for the delay of the metro rail project and finally how much time and cost is extra used for completing he project.

Unit of analysis

The units of analysis are the selected cases that are used for accomplishing the research. In this case, the published literature that has been analyzed is the unit of analysis.

Selection criteria for the research method

In this research study, both the quantitative and qualitative data method will be used. The statistical data that is collected from the newspaper article will be analyzed statistically and hence signifies the quantitative data and the opinion that is collected from the papers and the blogs or the journals written by authors and experts is analyzed though qualitative methods. Thus, both of this method will effectively support the research outcome effectively. 

Research Purpose

Research purpose is of three types- exploratory, descriptive and explanatory research purpose. Hertzog (2014) stated that research purpose is done for provision of accurate structural purpose, which is used for a well-defined research so that the objective of the research can be fulfilled. Exploratory research is used when there will be a long-term process of the research; whereas, explanatory research study helps to understand the cause and effect of the research by connecting it with different idea. Lastly, in descriptive research purpose, detailed information is provided with more exploration as well as explanation.

In this research, exploratory research purpose will be provided so that exact reason for the delay of the Hyderabad metro rail project can be evaluated. Moreover, exploratory research will also help to find the exact time and budget overrun, which is the primary objective of this research.  In this research, the previous research done in this context by other authors and the recent news published reading Hyderabad metro rail project will be taken and will be analyzed to study the aim of the research that is to find out the reason for the delay of the concerned project.

Data collection process and analysis

Sampson et al. (2015) depicts that data can be collected through secondary data collection. Secondary data are collected by published data like journals, books, company’s portal and blog.

Selection criteria for data analysis techniques

In this research study, the secondary data is collected from the published data and status of the Hyderabad metro rail project and the technique that is used for analysis will be of explanatory research. Moreover, these secondary data will be collected from the newspaper journal like ‘The Economic Times’ and ‘The Times of India’ and from their blogs so that recent data can be taken into consideration. The gathered data is analyzed through thematic analysis where the themes taken for the reason behind the time overrun and the reason behind the cost or budget overrun can be evaluated. Moreover, some personal opinion through other author’s view through internet blogs and magazine article columns and  are also taken so that detailed  evaluation can be done for accomplishing the research.

Content analysis

Krippendorff (2012) defines that in content analysis is the evaluation of the political orientation of the selected article, background of the research topic, visual perception of the tone of the research writing and the style of the writer. Content analysis can be of two types- quantitative content analysis and qualitative content analysis.

Quantitative content analysis: It is a research method, which is a subjective interpretation of the data collected from the newspaper article (Flick 2015). Thus, secondary data has been collected and they are drawn from the newspapers and blog news to find out the reason for delay of the metro rail projects and the statistic data that represent the evidence of the time and budget overrun from the destined metro rail project.  The statistical data that is taken from other news sources and articles written by journalists is taken and evaluated and if monthly details will be found then statistical interpretation can be done by using MS EXCEL to get a un-biased result regarding the true reason for the delay of the Hyderabad Metro rail project.

Qualitative content analysis: In this case, the details regarding the metro rail project for obtaining the actual knowledge of the predetermined agenda of the entire project. Moreover, the actions the managing authorities and the administrators of the state are taking to overcome the delayed metro rail project will also be considered for qualitative content analysis. This approach help to evaluate the internal knowledge and the reason for the metro rail project delay.  This can be done by selecting most updated news and facts about the Hyderabad metro rail project and what government is doing for completing the project so that community people can take maximum advantage of this new project for their ease of transport.

Conclusion

Thus, it can be concluded that in the research paradigm, interpretivism is used as people depict their view to interpret their trouble regarding the delay of the project. Moreover, the secondary sources like newspaper articles and other published data and news blogs will be analyzed so that appropriate result can be obtained. In this research, the selection criteria for the research method both the quantitative and qualitative data method are used. In context of the data analysis, both the Quantitative content analysis and Qualitative content analysis will be used so that statistical data can be analyzed quantitatively as it represent the numerical data and qualitative data will highlight all the internal data and reports for the delay of the Metro Rail Project.

Data Analysis and Results

Introduction

Punch, (2013) describes that collecting data and information for the research study is helpful but analyzing it mathematically provides an exact illustration of the research. Data analysis is performed for modeling data so that accurate research can be formulated.

Data editing

De Waal et al. (2014) depicts that some data has been collected from the newspaper article may lose their validity with the passage of time and thus, these data have to be replaced by the updated data and to ensure the consistency and legibility of those data. In this case, the data that is collected from the 2012 new article have difference with the data obtained in the year 2015. For instance, the cost and the time estimated to complete the project may be updated, thus, data editing have to be done based on the recent updates in the data of the Hyderabad metro rail project. In this context, for the future dissertation the updated results in the changing situation of the metro rail project have to be continuously evaluated for the accurate research output. 

Data screening

Data screening is a process where the statistical data that is collected from the secondary sources are analyzed for the research outcome. The prime objective for this method is to ensure that the data is accurate so that the further statistical analysis can be done without any problem. In this case, the statistical data that will be collected from the news articles and the previous research done by other experts. This procedure is evaluated similar to the data analysis that is to find out the continuous updates from government, architect and the project manager so that most updated results can be used to fulfill the objective of the research that is to find out the reason for the delay of metro rail project in Hyderabad.

Analysis and results

The result is analyzed according to the secondary research data. The secondary data will be analyzed by qualitative and quantitative data analysis. The statistical data that will be collected from the newspaper article and the budget get from the blog and research done by other authors on the Hyderabad metro rail project’s delay is evaluated through methodological analysis (See Appendix, Figure 2). Lastly, the project cost will be present that represents an estimated cost for conducting the research and find out how the social development in Hyderabad has affected by this delayed metro rail project.

The primary objective to use these statistical data is to evaluate the central tendency of the data collected from the research. There are different authors, who are researched on same topic and from the year 2012, they have researched about the delay of the project. Throughout these years, they may have collected data primarily by conducting surveys to local people and the problem they face by delay and what factors they thing is responsible for the delay, interview with the managers and engineers. The survey is done by preparing a questioner to the local people. The different authors in different year from 2012 onwards if collected data primarily, in the research those statistical data will be considered for every each as a one set of data.

Moreover, in the Appendix, Figure 2, several articles are selected as secondary sources by the respective author. Some research are accomplished qualitatively that is analyzing case studies, while some are done quantitative that is by conducting survey. All these researches help in this research to gather an overall idea regarding the reason for which the Hyderabad metro rail project is delayed.

Developed research model

Figure 2: Developed research model

(Source: Created by Author)

Research Risks

Fink (2013) depicts that risk associated during the research are physical, psychological, social, legal and emotional. Rea and Parker (2014) on the other hand denotes that risks of randomization, risks of breach of confidentiality and risk of long term effects are some of the other risk that should also taken into consideration. However, in this research, the risk that will occur is the legal obligation that on violation will result in penalization. The primary reason is that due to some political issues, the managing authority will not ready to disclose their exact data for the delaying of the metro rail project. In context of the psychological and emption risk, the community of the Hyderabad may feel offended, as they are not much concerned about the completion of the project. Moreover, they have their daily household work which may is delayed and as a results actual details may not be gathered when data from the community. The risk of over-budget may be a crucial risk while conducting the research that may be exceeded depending on the social situation. In addition to that, due to incomplete project, the nearby communal may hurt by the infrastructural products.

Time Scale

Main activities/ stages	1st Week	2nd-4th Week	5th- 7th Week	8th-10th Week	11th-13th Week	14th-15th Week	Desired Cost
Topic Selection	ü						₹ 0
Data collection from secondary sources	ü	ü					₹ 0
Literature review		ü	ü	ü			₹ 0
Research Plan Formulation			ü	ü			₹ 10,000
Selecting the Research Techniques				ü	ü		₹ 0
Secondary data gathering and detailed analysis					ü	ü	₹ 25,000
Summary of the Significance						ü	₹ 0
Submission of Final Work						ü	₹ 0

Figure 3: Time Scale for the entire project

The timescale is given to represent the estimated time to complete the research. The entire process of conducting the research comprises of topic Selection, Data collection from secondary sources which us followed by the literature review, research plan formulation, selection of the research techniques, secondary data analysis of collected data and lastly the submission of final work. The topic selection is competed on the first week as the research topic is already given and selected for the future dissertation. The topic of the search is “Investigating on the Reasons of Time and Cost Overrun in Hyderabad Metro Rail Project”. The total time estimated for collecting secondary data will be 4 weeks so that detailed data can be taken. Moreover, for accomplishing the detailed data on the literature review will take 3 weeks where most recent data are taken that can explain the exact reason of the time and cost overrun due to the delay of the Hyderabad metro rail project. Three weeks are estimated for the research work planning so that the research work can be completed in a systematic way; however, the selection of the research techniques that is which method to analyze the collected data and selecting the process for data screening and editing. Six weeks are taken as a required time so that the data collected can be proper gather and analyzed and it may require ₹ 25,000 to complete the entire analysis. After the completion of the entire data analysis, an overview of the most probable reason for the reason for the delay of the Metro rail project will be gathered.

Summary

In this research proposal, the impact of delay of Hyderabad Metro rail project is been highlighted. In this case, not only the cost but it also affects the time and the social development of the Hyderabad city. Moreover, the project is delayed and the engineers that the project needs an additional of 18 months to accomplish the same. It is also found that the project cost 16,375 crore in which L&T builders spend 5,000-6,000 crore for civil construction and for developing 6 million sq. ft of real estate, Rs 2,000 crore is required. 

Significance

The significance of this research proposal is to evaluate the reason behind the delay of the metro rail project when the work is extended further and to reinstates their irresponsible attitude and lack of commitment towards the city. The further research work will highlight or have the significance of the current situation of the metro rail project and whether there are any changes made in the delivery date of the project as according to the current estimation the project will be completed till 2018.

Discussion of the results

Introduction

After the completion of the data collection and analysis, the discussion is important to make the reader get an overall idea about the result of the projects. Even though the discussion of the data is being mentioned when it is presented in the research paper, yet the section for discussion of the results gives the final evaluation of the paper in a nutshell. The data that has been collected in the previous chapters are linked with the research questions and the objectives of the research. By linking the objectives and the questions, it becomes easier for the researcher as well as the readers to understand whether the questions and the objectives that have been considered in the beginning have been fulfilled in the research or not.

Summary of the research questions results

• What is the status of Hyderabad metro rail project?

The status of the Hyderabad metro rail project states that the project will be completed by December 2018 (Bharath et al., 2015). The lack of funds from various sources along with the government and the unavailability of professional expertise is the main reason behind the delay. The completion of the projects takes another 18 months. Thus, it can be seen that lack of funds and expertise are some of the major factors for the delay.

• Why overruns of time happened in the metro rail project in Hyderabad?

The clearance that is needed to complete the project is taking more than it should take. Due to formation of the new state, Telangana, the safety clearance is required from the places like, Nagole, SR Nagar , Mettuguda and Miyapur (Annavarapu, 2016). Investment is another issue that is poising a problem for the people of Hyderabad. Due to lack of availability of finds from the private investors has also resulted in the overrun of time ("Hyderabad Metro Rail", 2016). Even though, the investments issues have been cleared in many areas, yet the cost escalations and the delay in the investment has resulted in the overrun of time further.

• Why overruns of cost occurred in the metro rail project in Hyderabad?

The cost of building the metro project is not only limited to the resources or raw materials but also on the people who are associated with the projects. Thus, whenever there is overrun of time, there is overrun of cost. The builders have to increase the contracts with the workers and the professionals who are associated with the project (Sharma et al., 2013). Extra investments and funds are required to support the workers and the professional experts who are associated with the project.

• How the social development in Hyderabad has affected by this delayed metro rail project?

Whenever there is any kind of construction coming up in the vicinity, the most affected part of the society are people living in it. The construction operations result in traffic jams, which make it difficult for the people to move around. In addition to this, due to the delay in the construction extra amount of funds go into the construction operations (McMichael, 2016). If the amount of money us being used for development of the housing system or for the educational system, the fund would have been used for the right purpose and better development of the future of the younger generation. On the other hand, a number of demolitions take place to make place for the development of the bridge for the metro rail paths. Even though, the government takes charges for the people who have to shift their houses, yet it is difficult for them to adjust in the new locality (Bayley, 2015). Finally, the oppositional parties of a particular state are always coming up with new problems, which created further issues in the development of projects. Thus, it can be seen that the social life of the people get hugely affected not only by the delay but also due to the social and political issues are making things difficult for the people of the state.

7.2.1 Key factors

• Delayed work in the industry
• Increase in cost of the project
• Hammering the social development

Research objectives

To fulfil the objectives of a research paper, the researcher give rise to the research questions. Thus, research questions and the objectives are related to each other. The main objectives that have been taken into consideration by the researcher are to evaluate the status of the metro railway projects, the reasons behind the overruns of time and the overruns of costs and study the impact on the social development due to the delay in the metro projects. However, after looking onto the data collected for various sources after linking them with the research questions, it can be seen that the formation of new state, Telangana and the unavailability of funds are some of the main reasons that is affecting the entire project as a whole. Once a clearance is delayed, it increases the total amount of time required to complete the project. Once more time is required, the basic cost of completion of the project also increases accordingly. On the other hand, if the investor does not provide funds in a timely manner, it ends up with the requirement of more funds for the projects. Hence, it can be seen that huge amount of money are being used without any proper utilization of the money. The same amount of money could have been spent for other social developments, which might have helped the people of the state but the extra funds are being used for making up for delay, which is are completely unwelcomed by the people of Hyderabad.

Conclusion and Recommendation

Conclusions

Once the data collection, analysis and the discussion of the results have been done, the conclusion and the recommendations are introduced for the readers to get an idea about the other aspects of the research work. as the researcher has evaluated the problems with the help of the data and discussed it thoroughly, hence the person has an idea about the shortcomings faced by various companies in the construction industry. Thus the, researcher will be the best person to give the recommendations. The recommendations can be give both to the subject of the research as well as the future researchers who might be working on the similar field depending on the problems that have been faced by the present researcher to complete the projects. The recommendations mainly act as the solutions to the problems that have been highlighted in the research work. The theoretical and managerial implications are been given in this section mainly to help the researcher and the managers who are working in the similar field. The researcher will be able to make use of the theories of the present research work and the manager will be able to make use of the paper in practical field. The limitations and the scope for future research is mentioned so that the reader get an idea about the areas where the paper has not been able to throw light.

Key recommendations

The first and the most important recommendation is directed to the government of India and more importantly, the local government who has taken up  the initiative to give the people of Hyderabad a better way of commuting from one place to another place. The delay in the project is not only creating problem for the people of the state but also for the movement, which has to give out huge amount of funds for the development of the projects. It is recommended for the government to first take the clearance from various places through which the metro will run and then start the construction of other places. Once the construction starts, it naturally creates problem for the people who are moving on the road. If the government has to get full clearance for any location, then it should wait for the clearance and the start the project. Half-built constructions create many problems by increasing the traffic of the place.

The researcher while completing the research work has faced various limitations. Thus, recommendation are being given to the researcher who is carrying out the research work. It is better to start collecting the secondary data in the initial stage of the research work and complete the secondary data collection after the primary data has been collected and analysed by other authors and considering their work for attaining idea for the delay of the Hyderabad metro rail project. In this way, the researcher will get the latest data available for the research work. Completing the primary data collection first will help the researcher to get time to incorporate the changes that might have to happened in the development of the construction projects. The researcher will get an idea about the further development that might happen later and can mention those areas in the future scope of the research work. The readers will get an idea about the sections that have not been covered in the research paper and make use of the paper accordingly.

Theoretical and managerial contributions of the study

Theoretical research implications

The future researchers could take help from the data that has been presented in the present research work. Even though, the present research mainly talks about the problems of the metro railway project of Hyderabad, there are other projects as well that are lying undone. Some of the problems that have been discussed in this research work might affect those projects as well (Jonassen & Land, 2012). If any such construction problems are being studied in future, the factors that have been mentioned in this project could evaluated in the future discussions as well to know whether similar problems persist in those construction projects (Gopnik, 2012). Thus, theoretically, the future researcher will get an introduction to the types of problems that are being faced in the construction sites and it will be easier for them to frame their future projects.

Conceptual model for further research

Figure 4: Conceptual model for further research

Managerial implications

The research paper could be used by the managers well who are working for various construction companies. They might have also faced similar issues while completing their projects on time. The research paper will help those managers to get an idea about the problems that he or she might face while carrying out a research work (Taylor & Taylor, 2012). On the other hand, the managers can use the solutions that have been given in the form of the recommendations in the paper if they face nay such kind of problems in the business (Edmans, 2012). On the other hand, the problems that might be faced by the people while a construction is going on and the workers will help the manager to make the situations better while they are working on other projects.

Study limitations and future research

Study limitations

In such construction projects, developments happen on a regular basis. The developments can be negative as well as positive. The researcher has used the latest data required for the completion of the research work. However, it might happen that in the period of completion of the project, submission and publication of the project some more changes have happened in the field, which have not been recorded in the present research work. Similarly, the researcher has maintained a timetable to carry out the project. Some amount of time has been kept between the submission of the project and the collection of the data. New data might come in the period between the time of data analysis and the submission, which are not being analysed by the researcher. Thus, the readers might get a paper where some data is missing that have developed after the publication of the project.

The secondary data is most important for the present research work. Many websites do not let all users access the data. The users either have to sign up for membership with website or might have to pay for a particular. In this way, the research gets affected. The researcher might not be able to sign up for the membership or pay for the paper due to various constraints. The readers will only get the data that could be accessed freely by the researchers. On the other hand, various governmental data is associated with the research work. The government websites might not give out all the information to the people and hence, the researcher has not been able to provide accurate data for the research. Moreover, it takes time for the government to incorporate all the data in the websites. If the government takes time to make the data available online, then also it will limit the research to the data that is available online in that period.

Future research

The present researcher talks about the social development of the place where the metro project is going on. The future researchers can carry out another researcher can the perspectives of the people who are the sufferers due to the delay in the project. The primary data could be collected from the people who could present their view. In the present research, the effects on the budget of the government are mainly discussed. Once a researcher will present the problems faced by the people who are living near the construction sites then the government will take special steps to complete the projects and work in a faster manner than it is doing in the present. The research should also have the statistics that will present the number of accidents that have taken place in the area where the construction is going on. The data will make the government realise the urgency of completing the projects in a timely manner

Further research could be done on the life of the construction workers who are working for the metro projects and the duty is never ending for them. They would be able to throw light on the safety measures taken up by the government officials to protect the workers. The safety measure is another issue that is related to the construction project and the government should keep a part of the funds for the safety of the workers. When there is lack of funds the worker are also affected as they might not receive timely wages. In addition to this, they are unable to take up work elsewhere as they are already working for this project, which is getting delayed. Most of the construction companies pay the workers on daily basis. Thus, if the project is delayed, their income gets affected accordingly.

A number of issues have been stated in the present research that speaks about the reason behind the delay in the project. Future researcher could carry out investigations in the areas which are causing delay in the projects. The people have the right to know the operations of the place, which is creating the delay in the projects. Once the problems in those areas will be highlighted, there is a chance that the problems might be solved accordingly. The construction of a particular site can then be completed within the given time once the problems of the associated parties are solved in a proper manner.

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