Thanks for all your help ban.s and firefly, I was able to submit my application successfully on 2nd December.
I will update my experience on this page itself, so whoever lands on this page (I think ban.s posted the link on a main sticky thread, that's how I came here in the first place) will read this.
1. I was there just before 6:30 AM by which time 4 people were in the OCI queue (first one came at 5 AM!).
2. By 6:45 AM, security started forming the queue lines similar to what you explained above.
3. OCI queue started getting longer after 7:30 AM whereas OCI Collections queue was the slowest to grow longer, even after 8:15 there were very few of them...Passport services queue was reasonably building up.
4. By 9:00 AM we started to enter with the usual application verification, and by 9:15 AM we were in.
5. Counters started opening one after other, and I was called by 9:35 AM
6. Documents submitted: Application Form 3x Part A and 1 x Part B (3 member family) with 51mmx51mm photo glued, British Passport (photo page and observation page - self attested copy, 3 x Surrender Certificates - self attested copies, 1 x Minor birth certificate copy, Cash for 3 applicants - better to keep exact change)
7. Only Surrender certificate original was asked for verification
8. Receipts were given at the end - one for each of the applicants
9. Whole process finished in 2 minutes and I was out before 9:45 AM
Overall it was a pleasant experience except for standing in the queue for 3 hours, but hey, you have lot of things to discuss; IN and UK current affairs
with your co-queue members. Any questions, I am happy to answer.
Tips: If you are going early, I would suggest to carry some sandwich/water as there are no refreshments available during that time around and it gets inconvenient as you have to stand there for 3 hours!!