This document provides a case study of the Delhi-Gurgaon Expressway public-private partnership project in India. It describes the key details of the project, including that it was awarded to a consortium as a Build-Operate-Transfer project for 20 years. The expressway was commissioned in 2008 after facing delays from land acquisition and changes to the scope of work. Risks were allocated between the private concessionaire and the public National Highway Authority of India, with the concessionaire bearing most construction and operation risks. The project achieved efficiencies like reduced travel time between Delhi and Gurgaon.

1. Public Private Partnership Projects in
India- Case Study
Delhi-Gurgaon Expressway
Twinkle Melina J V

2. Delhi-Gurgaon Expressway Overview
• The expressway is a part of the Golden Quadrilateral project
• West End- Manesar Gurgaon
• East End- Delhi

3. PROJECT DESCRIPTION
• The National Highway Authority of India(NHAI) which implemented Golden
Quadrilateral project, proposed the conversion of NH-8 connecting Delhi-Gurgaon
into 6/8 lane access carriageway.
• The project was awarded to the consortium of Jaypee Industries and DS
Construction Ltd to design, finance, construct, operate and maintain the facility for
a concession period of 20 years.
• In a typical BOT highway project, the concessionaire is allowed to collect toll from
the users of the project facility during the operation period to recover his
investment and the expressway is required to be transferred back to the
Government at the end of the concession period.

4. • It was the first BOT(Built-Operate-Transfer) project awarded in India on Negative
Grant basis, where Upfront was paid by the concessionaire for capital grant.
• The expressway was commissioned in January 2008, delayed by land acquisition
and change of scope of work, It carries 180,000 PCU(passenger car unit) per day.
Negative Grant-Private player pays the government to get a
contract because the returns from it are so good.
Capital Grant- a contribution usually by a government to an
independent governmental body or authority to cover part
of the cost of the latter's facilities

5. PPP STRUCTURE
• The project was awarded to the consortium of Jaiprakash Industries Ltd and
DS Construction Ltd basis for a period of 20 years.
• A special purpose Vehicle (SPV) called the Delhi Gurgaon Super Connectivity
Ltd was created for execution of the project.
KEY OBLIGATIONS OF NHAI
o It is responsible for land acquisition and RoW also required to be responsible
for environmental clearance and permits.

6. KEY OBLIGATIONS OF NHAI
• It is responsible for land acquisition and RoW also required to be responsible
for environmental clearance and permits.
• It is responsible of expenses related to shifting of utilities.
• Loan could be provided by NHAI to cover a shortfall in debt payments at State
Bank of India Prime lending rate.

7. KEY OBLIGATIONS OF THE CONCESSIONAIRE
• The Concessionaire is required to comply with all requirements needed from
Government Agencies
• The Concessionaire was made to legally bound to enter into a state support
agreement with NHAI, GoNCTD and GOH.
• The concessionaire is entitled to collect Toll from users of Expressway during
operation period. The Toll charges are notified by MoRTH.
• The Toll has to shared with NHAI if the 1,30,000 PCU’s are tolled on the
expressway.
• The Expressway should be transferred to the Government at the end of the
Tenure Period.

8. CURRENT STATUS
• The expressway is blocked of 200m from 16 March 2022 for 6 months due to
construction of clover intersection near Khekri daula toll plaza.
• The concessionaire will construct a temporary lanes in between the green belt
and carriageway.
• Commuters have been informed of different routes such as Dwaraka
expressway to travel towards West and North Delhi and NH48 to travel towards
Jaipur and south-Central Delhi

9. FINANCING STATUS
Particulars Amount
Debt 383.3 crores
Equity 164.2 crores
Total 547.5 crores
Lenders Amount
Housing and Urban Development
Corporation Limited (HUDCO)
200 cores
State Bank of Mysore 30 crores
Punjab National Bank 30 crores
Srie International Finance 25 crores
Jammu and Kashmir Bank 15 crores

10. PROCESS ANALYSIS
Inception
• The expressway plan was initiated in 1990’s and DPR was also prepared
by the time.
• In 2000s MRT&H decided to increase the capacity of the the most
prestigious Golden Quadrilateral in order to manage the traffic intensity.
• NH-8 was found to be top prioritized, and it was finalised to upgrade to
6/8 Lane reducing the travel time from 65 minutes to 20 minutes.

11. • The project was estimated of 555 crores, Malaysia’s Construction Industry
Development Board (CIDB) was proposed to do the project on basis of MoU. But
later due to construction period and grant cost it was rejected.
• The GOI was keen in promoting PPP in India, and decided to undertake project on
BOT basis. NHAI used the DPR to proceed its process.
.

12. Procurement
• MoRT&H invited pre-qualification bids in 2001, however due to prediction of
traffic production using robust method plans were changed.
• Initially the project was to be on the basis of capital grant by NHAI but later it
was changed to the basis of Negative grant.
• The L1 bidder Jaiprakash Industries and DS Constructions was awarded the
project in 2002. L2 bidder was RBM Malaysia with 55 crores of negative
grant.

13. Development
• The construction of expressway commenced in January 20033. The SPV
finalised the Financial closure in May 2003.
• Despite being the lead promoter, Jaiprakash Industries sold its stake to DS
Construction and retained 1.2%
• Due to land acquisition delay and change of scope, the project was delayed.
• Due to major approval issues, the Expressway had nearly 15 government civic
bodies approvals such as Delhi Jal Board(DJB), GAIL, BPCL, DDA , HUDA, GoH,
GoNCTD, Haryana Tourism, AAI were affected.
GAIL-Gas Authority of India Ltd
BAPL-Bharath Petroleum Corporation Litd
GoNCTD- Government of National capital Territory of Delhi

14. • Change in the scope of work , considering future requirement and
convenience of commuters nearly 9 out of 11 structures need design
modification. Due to thick population environment structures were closely
spaced the entire alignment of the project was disrupted.
• Also DDA and HUDA had many connected projects made delay in the project.
• The change of scope was finalised in July 2005. Due to traffic on the route, the
partial opening of expressway was held back due to safety reason according
to Indian Roads Congress Provisions even after completion in certain
locations.

15. Delivery
• The project was commissioned on 25 January, 2008. The expressway is fully
operational and is handling a significant traffic volume of more than 180,000
PCUs per day, growing at 9% year-on-year.
Exit
• The concession period is for 20 years and the projected end date is 11 January
2023 when the expressway will be handed over to the government.

16. RISK ALLOCATION FRAMEWORK
Pre-operative
Risks
Sensitivity Risk Period Risk Bearer
Delay in land
acquisition risk
0-5 years NHAI
Financing risk 0-5 years Private Sector
approvals 0-5 years Private Sector
Sensitivity Colour
High
Medium
Low

17. Construction Phase
Risk
Sensitivity Risk Period Risk Bearer
Design Risk 0-5 years Private sector
Construction Risk 0-5 years Private sector
Operation Phase Risk Sensitivity Risk Period Risk Bearer
Operation and
Maintenance Risk
Throughout Private Sector
Material Risk Throughout Private Sector
Financial Risk Throughout Private Sector

18. Handover Risk
Events
Sensitivity Risk Period Risk Bearer
Handover Risk 2.5 - 5 years Private Sector
Concessionaire event
of default
Throughout Private Sector
NHAI’s event of
default
Throughout NHAI
Other Risk Sensitivity Risk Period Risk Bearer
Change in Law Throughout Private Sector and
NHAI
Force Majeure Throughout NHAI

19. Post facto VfM analysis
• a category of research design in which the investigation
starts after the fact has occurred without interference from
the researcher.
• the lack of access to the feasibility report for the project
• Remunerative for the Government

20. EFFICIENCY ACHIEVED
Particulars Earlier Present
Average Travel Speed 25.65Km/Hr 66 Km/Hr
Average Travel Time
from Delhi to Gurgaon
65 Minutes 25 minutes
Capacity (in terms of
lanes)
6 Lane – 5 km-
4 Lane - 22.7 Km
8 Lane - 22.3 Km
6 Lane - 5.4 km
Intersections 20 Intersections 10 Grade Separated
Intersections

21. Risk of Time and Cost Overruns largely borne by the Private Sector:
Due to change ins cope of the project resulting in cost and time increase. NHAI
contributed due to scope change in the project.

22. KEY LEARNING
• Land acquisition Process
• Support from Stakeholders for the project
• Approvals from multiple entities
• Traffic Risk is lower in case of brown-field projects
• Outdated Traffic forecasts
• Fee sharing requiring efficient contract management

23. THANK YOU

24. GAIL-Gas Authority of India Ltd