Page 118 - DMGT302_FUNDAMENTALS_OF_PROJECT_MANAGEMENT

Unit 6: Social Cost Benefit Analysis

Notes
On July 14, 2010, the first flight touched down at India’s newly built Terminal 3 (T3) of
Delhi airport, the swankiest and largest in the country, opening a new chapter in the
history of the airport and the Indian Aviation Industry. It was around 4:40 pm (IST) when
the first commercial flight, the Air India flight from John F Kennedy International Airport,
New York, touched down on the runway to be greeted by water cannon salutes from both
sides. The 220 passengers and 18 crew members of AI-102 flight were warmly welcomed
by the airport senior officers and staff and treated as special guests. They posed for media
cameras and received gifts and certificates for being the first group of passengers to arrive
at T3. Sunil Gupta (Gupta), Director of an IT firm in New York, who was among the first
passengers, said, “The old terminal was shabby and barely had basic facilities. This one
looks good and is up to international standards”.
Not too long ago, Delhi airport had been known for its poor management and poor
passenger services. Under-investment in airport infrastructure since independence was a
major cause for concern. Lack of funds and the expertise to develop and maintain the
growing airport infrastructure needs of the country forced the government to invite private
players to participate in infrastructure development under Public Private Partnership
(PPP). It was in January 2006, that a consortium led by the GMR Group won the bid to
develop the airport. Very soon, the PPP initiative yielded results, with two terminals

being renovated and one new runway and terminal 1D being opened up for commercial

operation. However, revolutionary change, as the experts called it, came about when the
T3 was inaugurated on July 3, 2010. At the inauguration of T3, Manmohan Singh (Singh),
Prime Minister of India, said, “The Delhi airport has improved its rank sharply in terms of

Air Service Quality (ASQ) performance, from 101 in 2007 to 21 in 2010. After the opening
of this new terminal we are hopeful that the airport will shortly rank within the first 10
airports of the world.”
About GMR Group
GMR Group (GMR), a Bengaluru, India-based leading Infrastructure group, had a stake in
almost all types of infrastructure development activities including power, road, airport,
and Urban Infrastructure. GMR was one of the first companies in India to take the initiative
in infrastructure projects when they were thrown open to the private sector in the 1990.
PPPs in India’s Infrastructure Development
Public Private Partnership (PPP) was a positive and sustainable solution to overcome
infrastructure deficit, analysts said. The PPP model aimed at shifting the responsibility for
financing, development.
GMR’s T3 & Dial

Analysts cited GMR’s T3 terminal as one of the successful PPP initiatives which had been
completed significantly before the scheduled time. On the occasion of its grand opening.
The Limiting Factors

Experts stated that T3 would serve as an example for upcoming infrastructure projects.
However, a few critics stated that the PPP model only provided profits to the private
players through deals.
Question
Analyse the case and discuss the case facts.

Source: http://www.icmrindia.org

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