DMRC was facing a Mammoth problem of Funding, the then Central Government didn't had enough money for the project and no foreign fundings were available due to Economic sanctions after the Pokaran-2 Nuclear Tests. The then, BJP led NDA, Central Government took a Bold Decision, The Government decided to Construct a Segment of whole Project, by concentrating all available funds. This was done to show that India can handle such projects and Attract Foreign Investors, specifically from Japan. Red Line was the first line of the Delhi Metro constructed and opened. The first Segment was construed from Tis Hazari to Shahdara. The Strategy worked in favor of DMRC, Foreign Investors, specifically, The Japan Bank for International cooperation invested in the project, they were really Impressed with the Indian attempt, especially by the corruption free model. The money invested was utilised to complete the rest of the segments in phase-I and then in construction of the phase-II.
An extension from Rithala to Bawana (6.1 km), originally planned for Phase I, has been moved into Phase III for completion by 2016. Phase III plans also include an eastward extension of 9.5 km from Dilshad Garden to Ghaziabad ISBT which was approved by the DMRC in January 2014 with work expected to begin after the general elections in 2014.