DELHI GURGAON

EXPRESSWAY

AMIT TIWARI 09BM8078

PROJECT DESCRIPTION
 The National Highways Authority of India
(NHAI), under the Ministry of Road Transport
& Highways (MoRT&H), was entrusted the
responsibility for implementation of the
Golden Quadrilateral project.
 As a part of this project, it proposed the
conversion of a very busy section of NH-8
connecting Delhi to Gurgaon into a 6/8 lane
access controlled divided carriageway.
 The then existing 4 lane, 27.7 km section of
NH-8 between Delhi and Gurgaon with as
many as 20 intersections, experienced high
vehicular density (145,000 Passenger Car
Units (PCUs)/day in 2000) and non-
segregation of traffic that led to increase in
accidents, acute congestion, wastage of fuel
and excessive pollution.
 The project was awarded to the consortium of
Jaypee Industries and DS Construction Ltd to
design, finance, construct, operate &
maintain the facility for a concession period
of 20 years.
 As a BOT highway project, the Concessionaire
was 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.
 This was the first BOT project in India to
have been awarded on negative grant basis
 Concessionaire offered to pay an upfront fee
to NHAI in return of the concession as against
a capital grant from the Government.
 In consideration of robust traffic
projections, the selected bidder offered to
pay Rs. 61.06 crore to NHAI.
PPP STRUCTURE OF THE
PROJECT
 The Concessionaire was required to design,
construct, operate and maintain the
expressway in accordance with the
specifications as approved by NHAI.

 The concession period included the

construction period to encourage the
concessionaire to complete the construction
early.  
 An SPV - Delhi Gurgaon Super Connectivity
Ltd was created for execution of the
project. 
 While at the time of bidding, Jaiprakash
Industries had a controlling stake of 51% and
DS Constructions held 49%, during the course
of project implementation, Jaiprakash
Industries reduced its stake in the SPV to
about 1.2%.
KEY OBLIGATIONS OF NHAI
 NHAI was responsible for undertaking land acquisition. A notional
concession fee of Re.1/- was to be paid annually by the
Concessionaire to NHAI.
 During the development period, NHAI undertook the operation
and maintenance of the existing highway at its own cost.
 The shifting of utilities and related expenses was the
responsibility of NHAI.
 NHAI was also required to have necessary environmental
clearances, permits etc. granted to the Concessionaire.
 A loan facility, in case of the revenue falling short of subsistence
revenue level, was made available by NHAI at the SBI PLR. Such a
loan could also be provided by NHAI to cover a shortfall in
meeting debt service payments.
KEY OBLIGATIONS OF THE
CONCESSIONAIRE
 The Concessionaire was required to comply with the all the
requirements needed for clearances, approvals, permits etc. from
various government agencies.

 A performance security was to be paid by the Concessionaire on or

before the date of the Agreement for its due and faithful
obligation during the Construction Period.

 To allow recovery of investment and to earn a suitable return, the

Concessionaire is entitled to collect toll from the users of the
expressway during the operation period.

 The toll is notified by the MoRTH and there is an annual revision

linked to the extent of variation in the WPI. The toll has to be
shared with NHAI if more than 130,000 PCUs are tolled on the
expressway.
FINANCING INFORMATION
 Debt Rs. 383.3 crore. Equity Rs. 164.2 crore. TOTAL Rs. 547.5
crore
 Rs. 200 crore of the debt was provided by the Housing and Urban
Development Corporation Limited (HUDCO). The other lenders
included State Bank of Mysore (Rs. 30 crore), Punjab National
Bank (Rs. 30 crore), Srei International Finance (Rs. 25 crore) and
Jammu & Kashmir Bank (Rs. 15 crore). The SPV also issued non
convertible debentures amounting to Rs. 50 crore to LIC and Rs.
37.30 crore to UTI Bank.
 The actual cost of the project was eventually Rs. 1,175 crore.
The project cost overrun was funded by the promoters, by
withholding payments to DSC Limited (EPC contractor) and from
the amount received from NHAI (Rs. 155.25 crore) on account of
changes in scope.
CURRENT STATUS
 The expressway has been operational for three years now after it
was opened to traffic in January 2008.

 It carries more than 180,000 PCUs per day, which is much higher
than the traffic estimates for the project by 13,000 to 15,000
PCUs per day.

 The substantially higher number of vehicles using the facility has

often led to a queuing up of vehicles at the toll plazas.

 The expressway consists of 9 flyovers, 4 underpasses and 2 foot-

over bridges and 3 toll-plazas. Smart tags have been introduced
to enable cashless automatic payment. 
PAST, PRESENT AND FUTURE
 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.

 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.
REFERENCES
 http://dgexpressway.com/index-1.htm
 http://toolkit.pppinindia.com/solid-waste-m
anagement/module3-rocs-dge1.php?links=dg
e1
Thank You!!