Building economics

and sociology
- PPP IN RGIA,HYDERABAD
BRIEF
Hyderabad Rajiv Gandhi International Airport is operated by the
Hyderabad International Airport Limited (HIAL) which signed a
concession agreement with the Government of India in December 2004
for a period of 30 years. The inauguration of the airport was in March
2008.
Hyderabad International Airport Limited is a joint venture formed as a
consortium between GMR Group (63%), Government of India (13%),
Government of Telangana (13%) and Malaysia Airports Holding Bhd
(11%). The model of PPP for Hyderabad Airport is based on a Build-
Own-Operate-Transfer (BOOT) basis.
During the period of concession, the consortium was incorporated to
design, finance, build and maintain the greenfield Hyderabad Airport,
which has the flexibility to increase capacity to handle over 40 million
international and domestic travelers per annum.
RGIA
State : Telangana
Location : Shamshabad, R.R district, Telangana
About 20km south of old airport in Begumpet, Hyderabad\
Capacity/Size : Initial phase to have capacity of 5 million passengers per
annum
Ultimate development as per master plan is 40mppa
Type of PPP: BOOT (Build, Own, Operate, Transfer)
Contract period : 30 years
Contracting authority : Ministry of civil aviation, govt. of India.
Constructed on unused land where there is no need to remodel or demolish
and existing structure.
Partners in the project
GMR group
Malyasia airports holdings Berhad (MAHB)
Government of Andhra Pradesh
Airport authority of India (AAI)
Efficiency of resource use
Built on the waste piece of land.
All the facilities required haven been taken care of in minimum
utilisation of space.
Link road construction from city.
Fully ready by dead line-efficient use of time.
 PPP – Advantages
• Easing budgetary constraints
• Value for money issues
• A realistic control of costs
• Transfer of technology
• Social benefits
• Project stability
PPP – Disadvantages
• Both partners seek to gain from
the relationship
• Public authority is looking to
maximise the socio economic
of public sector investment
• Private sector operator is
looking to maximise the
financial profits that is inc.
return of capital outlay.
• Here the user would be paying
toll/ user charges for the service
they provide.