1. GMR’s Terminal 3 for Delhi Airport:
A successful Project Execution Model for Public-Private
Partnership Initiative?
Case Presented by:
Himanshu Vashisht
Rakesh M G
Sagar Bhatt
Sandhya Sharma

2. Why Terminal 3?
Need of International standards Infrastructure to support Economic growth
Entry of International and Low cost Private Airlines as a result of liberalization
Requirement of technological up-gradation to cope with the raising air traffic
Lack of passenger facilities, runways and parking base for aircrafts
Revamp the tarnished image of Delhi Airport

3. Who built it?
 DIAL (Delhi International Airport Private Limited), A joint venture of
Indian Government and GMR Group (Public Private Partnership)
 GMR (Grandhi Mallikarjuna Rao) is Bangalore based leading
Infrastructure group which includes Power, Road, Airport and Urban
Infrastructure Development.

4. What is PPP?
“A Public-Private Partnership is a contractual agreement between a public agency
(federal, state or local) and a private sector entity. Through this agreement, the
skills and assets of each sector (public and private) are shared in delivering a
service or facility for the use of the general public. In addition to the sharing of
resources, each party shares in the risks and rewards potential in the delivery of
the service and/or facility.”

5. Sectors where PPP Model is used
Transportation
Water/Waste water Treatment
Urban Development
Energy
Financial Management
Social Services

6. Sector wise Advantages
PUBLIC
Legal Authority
Protection of Procurement Policies
Broad prospective/balance the competing
Goals to meet public needs
Personnel – dedicated but constrained
Capital resources

7. Contd…
PRIVATE
Management Efficiency
Newer Technologies
Workplace Efficiencies
Cash Flow Management
Personnel Development
Shared Resources

8. Synergy
 Maximizes the use of each sector’s strength
 Reduces development risk
 Reduces public capital investment
 Mobilizes excess or underutilized assets
 Improves efficiencies/quicker completion
 Better environmental compliance
 Improves service to the community
 Improves cost effectiveness
 Shares resources
 Shares/allocates risks

9. Terminal 3 at a Glace
Features Details
Foundation Stone Laid on February 17, 2007 by Sonia Gandhi
Inaugurated July 3, 2010 by Hon. PM Manmohan Singh
Used for All international Flights and full service domestic
flights
Cost 127 Billion Rupees
Commercial Operation starts
from
July 28, 2010 – International Flights
November 14, 2010 – Domestic Flights
Total Levels 9
Floor Area 502000 square meter (8th largest)

10. Features Details
Passenger capacity 34 million per year
Aerobridges 78 ( 3 are exclusively for A380)
Elevators 63
Escalators 34
Automatic Walkways
/Travelator
92 which are 118m long..longest in Asia . 8 are
inclined
Immigration counters 95, 49-outbound : 46 Inbound
Check –In counters 168

11. Features Details
Baggage Handling Advanced 5-level-in-line baggage
handling system , 12800 bags /hour
Rooms 100 transit hotel rooms – 68 domestic:
32 international
Parking Seven-level air conditioned parking for
4300 cars
Retail space 20000 square meters

14. The Suppliers
Items/Products/Services Suppliers
Air- conditioning Carrier India
Electrical Products and systems ABB Group
Different types of fans Systemair , a leading ventilation company
Preferred currency exchanger Thomas Cook
Caterers Ambassador’s Skychef , Chef Air , Taj – Sats ,
Oberoi Flight Services , Sky Gourmet Catering Pvt
Ltd, Club one air
Fuelers BPCL, HPCL, IOC
Ground handlers NACL, GlobeGround India , Airworks India ,
Cambata Aviation , Livewel Avaition Services Pvt
Ltd , Concord Aviation Pvt Ltd

15. Items/Products/Services Suppliers
Set –up of Duty Free outlets A consortium of ARI, IDFS and DIAL for 10 years
Baggage Handling system Siemens
Substation Package Areva’s Transmission and Distribution Division
(T&D) India Ltd
Neutral Host Shared
Communication Solution
Quippo Telecom Infrastructure Limited (QTIL),
with Ericsson
IT Infrastructure Wipro for ten years
Roof Infrastructure and services Geodesic Techniques Private Limited
Prefabricated Walls and False
Ceilings around the terminal
Saint –Gobain Gyproc

16. Items/Products/Services Suppliers
Telephone and mobile services Bharti Airtel
Carpet Material Brintons , UK…developed in Pune ( world’s
largest commercial carpet order from single
buyer )
Civil work Design HOK
Engineering and development
Consultancy
Mott Macdonald
Landscaping Work EDAW and Beyond built
Smoke Detectors and sensors US- Based Company

17. PPP model may provide profits to the private players through deals offered
by government
High Toll fees
Critics stated instead of spending Rs127 billion on the construction , it
could have been used for safety in 40 Indian airports which does not have
safety licenses .
Funds could also have been used for railway network
PPP involves high agency cost and low performance
The Limiting Factors

18. PPP Projects have long development period
More complicated
Contract renegotiation
Contd…

19. How to overcome limitations?
Statutory and Political Environment
 Organized Structure
 Detailed Business Plan
 Guaranteed Revenue Stream
 Stakeholder Support
 Pick Your Partner Carefully

20. THANK YOU