Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Save to My Library
Look up keyword
Like this
46Activity
0 of .
Results for:
No results containing your search query
P. 1
Case Study on Panipat-Jalandhar Toll Road Project

Case Study on Panipat-Jalandhar Toll Road Project

Ratings: (0)|Views: 6,593|Likes:
Published by Neeraj Kumar Ojha
This project is one of the first road projects in India to use Design-Build-Finance-Operate (DBFO) structure on a revenue-sharing basis to build roads. Hence, successful implementation of this project would encourage other projects to follow this model. The project would be financed with a mix of debt and equity capital with debt part covering 75% of the project cost. The total project cost has been estimated to be around Rs 5000 crore.
This project is one of the first road projects in India to use Design-Build-Finance-Operate (DBFO) structure on a revenue-sharing basis to build roads. Hence, successful implementation of this project would encourage other projects to follow this model. The project would be financed with a mix of debt and equity capital with debt part covering 75% of the project cost. The total project cost has been estimated to be around Rs 5000 crore.

More info:

Published by: Neeraj Kumar Ojha on Apr 29, 2010
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

12/10/2012

pdf

text

original

 
1
Project FinanceA Case Study
On
Panipat
 – 
Jalandhar Toll Road Project
Written by:Deepti MishraMithlesh JhaNeeraj Kumar Ojha
 
2
National Highway 1 Panipat 
Jalandhar Toll Road Project 
On October 23, 2008, the board of Asian Development Bank (ADB) was presented a proposalto approve a loan of $ 240 million for National Highway 1 Panipat-Jalandhar Toll RoadProject. This Project would help address the problem of capacity shortage in the road sector inIndia and is important from the point of socio-economic development and economic growthof the country. The President of ADB, Mr Haruhiko Kuroda, was confident that the proposedloan would serve ADB's strategy of poverty reduction through infrastructure-led growth.The proposed highway runs through the so called "bread basket" of India. It is part of thehistorical Grand Trunk road which runs from Sonargaon in Bangladesh to Peshawar inPakistan. The road was upgraded to four lanes in the past decade and is now being expandedto six lanes due to rapid growth in traffic and increasing congestion. There was little debateon the merits of loan as it satisfied all the existing criteria of ADB. The loan was consistentwith ADB's private sector development strategy, country strategy, sector strategy and the longterm strategy of infrastructure development through increased private sector participation. Theproposed ADB financial assistance would be catalytic, allowing the Project to raise long-termdebt financing.
___________________________________________________________________________
MBA students Deepti Mishra, Mithilesh Jha, Neeraj Ojha wrote the case under thesupervision of Professor Anoop Singh of IME Department, IIT Kanpur. The case study ispurely for academic purpose. It is not meant to serve as endorsement or source of primarydata.
 
3
1.1 Introduction to Indian Roadways
Roads are considered to be one of the most cost effective and preferred modes of transportation. Roads are critical for country's overall socio-economic development. Anefficient and well-established road network is inevitable for promoting trade and commerce aswell as meeting the needs of a sound transportation system in the country. Road transportaccounts for about 65 per cent of freight (in ton-km) and 86.7 per cent of passenger traffic (inpassenger-km) in India. India has one of the largest road networks in the world with a totalroad length of 3.34 million kilometres. Indian road network consists of expressways, nationalhighways, state highways, district roads and village roads. The number of vehicles has beengrowing at an average rate of 10.16 per cent per annum over the five years (2003-2008). Theshare of road in total traffic has grown from 13.8 per cent of freight traffic and 15.4 per centof passenger traffic in 1950-51 to an estimated 65 per cent of freight traffic and 86.7 per centof passenger traffic by the end of 2004-05. This rapid growth in traffic has led to deteriorationof road infrastructure, traffic congestion and increase in the cost of transportation. Thereforethe road infrastructure needs to be improved for better energy efficiency, lesser pollution andenhanced road safety. The Indian economy has been one of the fastest growing economies inthe world. To sustain this growth, there is a need to improve and expand the roadinfrastructure.
1.2 Indian Road Network 
India has the second largest road network in the world. Indian roads can be broadly classifiedin four categories as shown in the table below.
Table 1: Indian Roads Classification
1 National Highways/Expressways 66754 km2 State Highways 128000 km3 Major and other District Roads 470000 km4 Rural Roads 2650000 kmSource:
 Department of Road Transport and Highways, Ministry of Shipping, Road Transport and Highways, Government of India. 2008. Annual Report 2007 
 – 
2008. India.
 

Activity (46)

You've already reviewed this. Edit your review.
1 hundred reads
1 thousand reads
mouh48 liked this
Upalika Prasad liked this
himan2361 liked this
Eshank Goyal liked this
Navin Goyal liked this
Navin Goyal liked this
reddyharee liked this
Amit Vijay Gupta liked this

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->