The Public-Private Partnership Hurdle Race: The Case Of Delhi International Airport

Prachee Javadekar; Gandhali Divekar; Girija Lagad; DVR Seshadri

Product #:ISB-224

Supplier:Indian School of Business

Discipline:Operations Management

Setting:2007

Details:Case (PDF) • 29 pages • 2020-12-01 (Rev: 2023-04-06)

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Business services sector

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The case “The Public-Private Partnership Hurdle Race: The Case of Delhi International Airport” is about the various challenges faced by the GMR Group who was the private partner in the Delhi Airport Modernization project. The modernization of the Delhi international airport was done under a public-private partnership (PPP). The GMR Group won this bid for the development and modernization, becoming the first private player to work with the government on an airport development venture under the PPP model. Through the experience of the GMR Group, related by its Chairman, G. M. Rao, the case explores the various setbacks and challenges to project implementation posed by the nascent and evolving PPP policy environment in he country. At the same time, the case also presents the government’s viewpoint and efforts to deal with the evolution of the aviation sector in India by strengthening the PPP framework. Further, the case underlines the importance of having a strong, well-defined, unambiguous and forward looking policy environment for the successful implementation of PPP projects in India. The case also presents the complexities of making policy decisions in a democratic political system such as India’s

Learning Objectives

1. To understand the PPP policy environment in India with reference to airport infrastructure development. 2. To examine the relationship between public and private players under the PPP framework. 3. To evaluate the key challenges that can arise in a large PPP project due to policy uncertainty and consequent issues at the time of project implementation.