PPP IN DELHI

GURGAON
EXPRESSWAY
Source: indiantollways.com

BACKGROUND
Stakeholders
Public Institution: National
Highway Authority of India (NHAI)
Private Institution: DS
Construction
Independent consultants:
RITES Corporation
Governments: Haryana State
Government ,Delhi state
Government.
Users: Patrons
Source: en.wikipedia.org

SALIENT FEATURES
Cost: INR 10 Billion
Length of Expressway: 27.7km
No. of Flyovers &

overpasses:11
Toll Lane: 32 lane state of the
Art plaza (Asias Biggest Worlds
3rd Biggest)
CCTV Survelliance till IGI
Airport & SOS Telephony every
1.5kms

Source: en.wikipedia.org

PUBLIC PRIVATE PARTNERSHIPS

What they are

Agreement between Government and the

Private Sector for the Provision of a Public

Good or Service by the Latter.
Generally but not always involving:
Long Term Contracts
User Charges and/or Payments flowing between

the Parties
Shared Investments but Mainly Private
Risk Sharing by the Parties

Must be a

Partnership

Why adopt a PPP Model ?

Limitation of government resources and capacity
to meet infrastructure requirements.
Government resources are not able to keep up
with rising demand for social goods.
Rapid economic growth
Growing urban population.
Increased rural urban migration.
Need for new financing
institution.

Source: articles.economicstimes.india

PPP MODEL
PPP

Greater
efficiency
Greater
value for
money for
public
procureme
nt

Better
access to
project
finance

Better
project
design

Implementati
on

PPP structure of the

Project
The project was awarded to the consortium of Jaiprakash industries

Ltd and DS Construction Ltd on built-Operate-transfer (BOT) basis

for a period of 20 year.
The concessionaire was required to design, construct, operate and

maintain the expressway in accordance with the specification as

approved by NHAI.
The concession period included the construction period to

encourage the concessionaire to complete the construction early.

A Special Purpose vehicle called the Delhi Gurgaon Super

connectivity Ltd created for execution of project.

Construction phase
Issues

Source: www.indiantollways.com

Concession Agreement New Model

DPR preperation given more importance
Responsibility & cost bearers clearly outlined.
Safety issues were clearly tackled.
Toll charges exemption for local traffic.

Source: www.indiantollways.com

Efficiencies Achieved
Particulars

Earlier

Now

Average Travel Speed

25.65km/hr

66km/hr

Average Travel Time from

Delhi to Gurgaon

65 minutes

25 minutes

Capacity (in terms of

lanes)

6 lane- 5km
4 lane- 22.7 km

8 lane-22.3km
6 lane- 5.4 km

Intersections

20

10

IMPACT ON
STAKEHOLDERS
More than desired profits.
Environmental NGOs protested.
Patrons were happy but not satisfied.

Source: realstateindia.