RIL has been selected from among renowned companies such as IOC, Sky Tanking, BPCL, ONGC, HPCL, Swissport and WFS through a highly transparent and competitive bidding process. The contract is valid for a period of 7 years, which can be further extended on mutual agreement.

GHIAL and RIL signed the contract on October 6, 2006, in Hyderabad. As per the contract, the GHIAL is setting up `Open Access Model' Fuel Farm consisting of three huge storage tanks with an initial capacity of 13,500 KL of aviation turbine fuel (ATF) and hydrant in the new airport premises for supply of fuel to the aircrafts. The RIL, in turn, will operate and maintain the Farm, as well as provide `into-aircraft' service.

Aviation Fuel is an important component of the aviation activity and it constitutes around 30% of the airline operating cost in India. Apart from the cost, safety and secured refueling process are important from airlines' point of view. Therefore, provision of a reliable and cost efficient facility is essential for garnering confidence of airlines in the airport.

The Open Access Model means any oil company can supply fuel to airlines as per their agreements entered into with the latter. This Model is the-first-of-its-kind in India and has successfully been deployed in major international airports like Hong Kong Airport. It has been developed in consultation with internationally reputed companies: Red Mallee, an Australian based consultant, and Hong Kong Airport Services, Hong Kong.

• The airlines have a choice of suppliers and Hyderabad could be part of their global or pan Indian supply contracts
• Increased competition among oil companies for supply of fuel
• Enhanced service and competitive pricing

It is worth noting that both IATA and Naresh Chandra Committee have recommended this type of model for all airports in the country.

The storage tanks will be connected to the Apron through underground pipelines forming the Hydrant System. They will cater to the fuel needs of all airlines. Anyone, who is authorized by the Government of India and has a valid contract with the airline companies, will be allowed to supply fuel through these pipelines.

Speaking on the occasion, Mr. T Srinagesh, COO, GHIAL, commented: "This model of Fuel Farm is being implemented for the first time in India and is expected to provide a wider choice for airlines in selecting fuel suppliers thereby causing competition among the fuel suppliers. As a result, the airlines are expected to get the ATF at a very competitive price with the highest level of service. This model has been very successful at Hong Kong and many other international airports."

Mr.A. Janakiraman, President of RIL, expressed happiness at bagging the contract for operating, maintaining and providing `into-aircraft' service in the new international airport in Shamshabad.

GMR-HIAL is a joint venture company promoted by GMR Infrastructure (63 pc); Malaysian Airports Holding Berhad (11 pc), Airports Authority of India (13 pc) and Government of Andhra Pradesh (13 pc), which has been mandated to develop a world-class international airport in about 5,500 acres in Shamshabad. The airport is estimated to cost Rs 1,760 crore in the first-phase, which is expected to become operational by the first quarter of 2008.

GHIAL has awarded the Passenger Terminal Building (PTB) and Air Traffic Control (ATC) works to China State Construction Engineering (Hong Kong) Limited (CSCEHK) for Rs 615 crore. The GHIAL has also given airside and runway works to L&T at a cost of Rs 495 crore.

It has recently awarded In-flight Catering to two renowned companies named LSG Sky Chef and Sky Gourmet.

The work on the airport is progressing at a very brisk pace as per schedule.