Second largest road network

India has the second largest road network in the world, spanning a total of 4.7 million kilometres. This is used to transport over 60 per cent of all goods in the country and 85 per cent of total passenger traffic

Rising investments in road sector

The Planning Commission of India aims to spend nearly 20 per cent of the total investment of USD1 trillion during the 12th Five Year Plan (201217) to develop roads

Growing private sector involvement

The private sector is emerging as a key player in the development of road infrastructure in India

Rapid growth in national highways

National highways are expected to reach 85,000 kilometres by the end of the 12th Five Year Plan from 71,772 kilometres currently

Source: Planning Commission, Aranca Research

2009
Roads & bridges infrastructure value: USD6.9 billion

Robust demand demand Growing

Greater connectivity between different cities, towns and villages has led to increased road traffic over the years Growth in automobiles and freight movement commands a better road network in India

Attractive opportunities
Roads and bridge infrastructure industry to be worth USD21 billion by FY17 Approximately 9,500 kilometres of projects are expected to be awarded by NHAI during 201213

FY17E
Roads & bridges infrastructure value: USD19.2 billion

Advantage India
Increasing investments

USD1 trillion worth of expenditure on infrastructure is estimated over FY1317 Government of India aims to develop a total of 66,117 kilometres of roads

Growing participation of private sector through Public-Private Partnership (PPP)

The engineering sector is delicensed; Road infrastructure is a key 100 per cent FDI is allowed in the government priority; the sector has sector received strong budgetary support over the years Due to policy support, there was cumulative FDI of USD14.0 billion into the sector institutions over April 2000 received February Financial have 2012, making up 8.6 per cent ofmoney total government approval to raise FDI into the country in that period through tax-free bonds

Policy support

Source: NHAI, MoRTH, Planning Commission, Business Monitor International, Aranca Research Notes: NHAI - National Highways Authority of India, MoRTH - Ministry of Road Transport and Highways

Roads (Total length: 4.7 million Kms)

State Highways

National Highways

District and Rural Roads

Total Length: 155,716 kilometres Share: 3.3 per cent of the total roads in India

Total Length: 79,116 kilometres Share: 1.7 per cent of the total roads in India

Total Length: 44,55,010 kilometres Share: 95.0 per cent of the total roads in India

Source: Ministry of Road, Transport and Highways (MoRTH) Annual Report 2012-13, Aranca Research

India has the second largest road network in the world (4.7 million kilometres) Roads bear about 85 per cent of the countrys passenger traffic and 60 per cent of freight traffic

Length of national highways (kilometres) Passenger vehicle sales (Million) NHDP toll collection (USD million)

58,112

71,772

0.71

FY12

3.1

64.5

435*

Highway projects awarded (kilometres) by NHAI

Share of infrastructure in total bank funding (%)

677

6,491

2.3 FY03

14.4

Source: National Highway Authority of India (NHAI), National Highway Builders Foundation, ICRA Ltd, Reserve Bank of India (RBI) Notes: FY - Indian Financial Year (April-March), NHDP - National Highway Development Project, Aranca Research; Note: * - Data for FY11

The value of total roads and bridges infrastructure in India is expected to grow at a CAGR of 17.4 per cent over FY12-17 to reach USD19 billion Currently, the Government of India aims to develop a total of 66,117 kilometres of roads under various programmes such as NHDP, SARDP-NE and LWE Of the total roads, 20,945 kilometres have been developed, while a major share of the remaining is estimated to be completed by the end of the 12th Five Year Plan

Roads/ bridges infrastructure value in India (USD billion)

19.2

CAGR: 13.6%
13.4

16.1

11.0
6.9 6.8 8.3 8.6 8.6

FY09

FY10

FY11 FY12F FY13F FY14F FY15F FY16F FY17F

Source: Business Monitor International (BMI), Aranca Research Note: CAGR - Compounded Annual Growth Rate, FY - Indian Financial Year (April - March), F - Stands for forecast, NHDP - National Highway Development Project, SARDP-NE: Special Accelerated Road Development Programme for the North Eastern Region and LWE - Left Wing Extremism Programme

National highways account for 1.7 per cent of the total road network in India Under the 12th Five Year Plan (FY1317), the government plans to develop 20 kilometres of national highways per day, which implies a total development of 7,300 kilometres per year Double-lane highways constitute the largest share of highways in India (40,658 kilometres) Double-lane highways are followed by single-lane (19,330 kilometres) and multi-lane (19,128 kilometres) highways

Lane composition of national highways (FY13)

Single lane
24.2% 24.4%

Double lane

51.4%

Four/ Six/ Eight Lane

National highways are expected to reach 85,000 kilometres by the end of the 12th Five Year Plan from 71,772 kilometres currently
Source: MoRTH, Aranca Research

The National Highway Authority of India (NHAI) is a government agency responsible for construction, maintenance and development of highways The Government of India has formulated a seven-phase programme known as National Highway Development Project (NHDP), vested with NHAI, for the development of national highways in the country

Srinagar Golden Quadrilateral (GQ): It is the highway network that connects four major metropolises Delhi

Golden Quadrilateral North South East West Corridor Silchar

NHAI

North South & East West Corridor (NS EW NHDP Phase I and II): It connects the countrys extreme ends

Porbandar Kolkata Mumbai

NHDP Phase III to VII: Construction and improvement of roads in the remaining urban and suburban regions

Chennai Kanyakumari
Source: NHAI, Aranca Research

NHDP Phase

Project description
Development of Golden Quadrilateral, North South & East West (NS-EW) corridor, port connectivity and other national highway Development of North South & East West (NS-EW) corridor and other national highway Development of Four lane national highways

Total length (Kms)

7,522

Cost

Development Model
EPC (EngineeringProcurement and Construction) EPC PPP (Build-OperateTransfer) PPP

Phase I

USD7.0 billion

Phase II

6,647

USD7.2 billion

Phase III

12,109

USD18.5 billion

Phase IV

Upgradation of single lane to two-lane

20,000

Source: NHAI, Aranca Research

NHDP Phase

Project description

Total length (Kms)

Cost

Development Model

Phase V

Upgradation of four-lane highways to six-lane and port connectivity

6,500

USD9.3 billion

PPP

Phase VI

Development of Expressway Development of ring roads, bypasses and flyovers

1,000

USD3.8 billion

PPP-(Design-BuildFinance-Operate) PPP (Build-OperateTransfer)

Phase VII

700

USD4.2 billion

Source: NHAI, Aranca Research

The Special Accelerated Road Development Programme for the North Eastern region (SARDP-NE) is aimed at developing road connectivity between remote areas in the North Eastern region with state capitals and district headquarters SARDP-NE is vested with the development of double-/four-lane national highways of about 4798 kilometres and doublelaning/improving about 5343 kilometres of state roads Implementation of the road development programme will facilitate connectivity of 88 district headquarters in North Eastern states to the nearest national highways The project will be undertaken in three phases:

Phase

Project description
Improvement of national highways

Total length (Kms)

2,041

Date of Completion
March 2015

A Improvement of state roads Development of double-lane of national highways B Double-laning and improvement of state roads Arunachal Pradesh package of roads and highways Development of roads 2,438 2,319 2,058 1,285

Not Disclosed

March 2017

Source: NHAI, MoRTH, PPPinIndia, Aranca Research

The government has approved a Road Requirement Plan (RRP) for the development of 1126 kilometres of national highways and 4351 kilometres of state roads in Left Wing Extremism (LWE) affected districts The project has been implemented in the states of Andhra Pradesh, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha and Uttar Pradesh for a total value of USD1.6 billion The project will be vested with the Ministry of Road Transport and Highways (MoRTH) and is scheduled to be completed by FY15

Total length (Kms) Approved Awarded Completed (By December 2012) 5,477 5,049 1,960

Total cost (USD billion) USD1.6 USD1.5 USD0.5

Source: NHAI, MoRTH, PPPinIndia, Aranca Research

During 2011, India had 758 PPP projects across various sectors, of which 405 are dedicated towards roads and highways The BOT models share in total highway projects has increased sharply over the years; it rose to 31 per cent in FY10 from 10 per cent in FY05

Total PPP projects in India (2011)

Composition of total highway projects awarded

4% Roads 9% 47% 53%

7%

9%

9%

17% 53%

12%

12%

20%

20% 27%

Others 8% 13% 15% 19% 22% 23% FY05 FY06 BOT FY07 SPV FY08 FY09 Public Funded FY10

Source: MoRTH, Aranca Research

Road construction projects awarded to BOT companies went up at a CAGR of 62 per cent over FY05-12 to about 6,067 kilometres In FY12, highway projects awarded to private companies rose to 6,067 kilometres

Awards won by BOT private players

6,067

6,144

CAGR: 61.8%

2,677

877 209 FY05 369 FY06 464 FY07 470 FY08 FY09 FY10 FY11 FY12

Source: NHAI, Aranca Research

Until 2005, the road construction market was dominated by public sector companies However, the emergence of private players over the last decade has made the road construction market fragmented and competitive; the players bidding for projects also vary by size Major projects: MumbaiPune BOT Project, PuneNashik BOT Project, BharuchSurat BOT Project, ThaneBhiwandi by-pass Four-Lane Project

Major projects: North Karnataka Expressway, West Gujarat Expressway, Noida Toll Bridge

Major private sector players

Major projects: NH6 Dhankuni to Kharagpur, Sambalpur Baragarh, NH4 Belgaum Dharwad
Major projects: BandraWorli Sea Link, Badarpur Elevated Highway Project

Major projects: TuniAnkapalli Highway, TambaramTindivanam Highway, AmbalaChandigarh Highway

Source: Aranca Research Notes: NH National Highway

Increasing private sector participation

Government policy to increase private sector participation has proved to be a boon to the infrastructure industry with a large number of private players entering the business through the Public Private Partnership (PPP) model The type of PPP models used in road projects are Build Operate Transfer (BOT ) toll and BOT annuity

Partnerships between Indian and foreign firms

With the Government of India permitting 100 per cent FDI in the road sector, most foreign companies have formed partnerships with Indian players to participate in the sectors growth story

Indias renewed focus on infrastructure

Infrastructure is the key to supporting double-digit GDP growth in India during the mediumto long-term The government has hence made infrastructure development a key policy issue and plans to spend USD1.0 trillion during FY13-17 on the sector

Success of Indias Five Year plans

Through Five-Year Plans, India has increased the length of national highways from 21,378 kilometres during the late 1940s to 71,772 kilometres by the end of the 11th Five-Year Plan (FY08-12) The total length of national highways is expected to touch 85,000 kilometres by the end of 12th Five Year Plan
Source: NHAI, MoRTH, Aranca Research Notes: FDI - Foreign Direct Investment

Growing demand

Policy support

Increasing investments

Rise in two-wheeler and four-wheeler vehicles Inviting

Greater government focus on infrastructure Resulting in Standardised processes for bidding and tolling; clear policy framework

NHAI implementing one of the largest road projects

Increasing freight traffic

Rising private sector participation

Strong trade and tourist flows between states

Tax sops, FDI, FII encouragement

Strong projected demand making returns attractive

Source: Aranca Research

Higher individual discretionary spending has led to increasing spending on cars, motorbikes and scooters Growing domestic trade flows have led to rising commercial vehicles and freight movement Roads traffic share of the total traffic in India has grown from 13.8 per cent to 65 per cent in freight traffic and from 15.4 per cent to 90 per cent in passenger traffic from 1951 to 2011

Better quality roads makes road travel cheaper and safer Growing movement of goods within the country due to economic integration Increasing roadways leading to greater accessibility between different cities/towns/villages

Rising incomes leading to increasing number of vehicle owners

Higher road traffic

Growth in small and medium enterprises in India

Source: MoRTH, World Bank, Aranca Research

Total auto sales across categories are estimated to rise 6-8 per cent in FY14 Sales of passenger vehicles are expected to increase at a CAGR of 15.0 per cent to 3.5 million during FY07-14 Sales of commercial vehicles are expected to rise at a CAGR of 13.5 per cent to 8,52,000 during FY07-14 Rising per-capita income and growing middle class coupled with easier access to finance and a wider price range of vehicles have led boosted car sales

Trends in passenger vehicle sales (in million)

Trends in commercial vehicle sales (in 000)

783 852

3.5

800

CAGR: 15.0%
2.4

3.0

3.1

3.2

CAGR: 13.5%

676

1.6 1.3

1.8 351

468

494

533

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

Source: SIAM, Aranca Research

Road addition in the 3rd Five Year Plan was only 179 kilometres this increased to 10,228 kilometres in the 11th Plan The 12th Five Year Plan (FY13-17) is estimated to carry the momentum forward with projects to the tune of 36,500 kilometres

Length of National Highway added in the various Five-Year Plans (kilometres)

36,500

23,814

9,008 10,228 4,819 2,867 158 1,902 609

- 1,514 179 1st 2nd 3rd 4th

5th

6th

7th

8th

9th 10th 11th 12th*

Source: NHAI, MoRTH, Aranca Research Note: * - Estimated

Infrastructure is a priority of the governments economic policy; funding for the sector from both private and public sectors is set to increase sharply in the near term Infrastructures total share in bank funding rose from 2.3 per cent in 2002 to about 14.4 per cent in 2012

Share of infrastructure in total bank funding

14.4% 14.0% 11.5% 8.5% 7.5% 6.9% 3.5% 4.2% 2.3% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012* 7.3% 9.5%

Source: RBI, ICRA Limited, Aranca Research Note: 2012* - March 2012

The government has been eager to involve private sector funding for infrastructure projects and thereby reduce strains on the budget The PPP model has emerged as the favoured one for private sector participation in roads projects
9.9%

Combined fiscal deficit of the centre and state governments (% of GDP)

9.6% 8.5% 7.2% 8.5% 7.3% 6.5% 5.4%

9.5%
8.2%

Notes: PPP - Public Private Partnership, NHDP - National Highway Development Project, BOT - Build Operate Transfer

7.1%

4.1%
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12E FY13E

Source: RBI, Morgan Stanley, Aranca Research E - Estimate

Phase I and Phase II of NHDP were mostly developed by public funds with the BOT share at 14.8 per cent and 28.6 per cent respectively Public Private Partnership (PPP) model will be the favoured way of executing the remaining NHDP phases

% of BOT share in different phases of NHDP

Phase VII
Phase VI Phase V Phase IV Phase III Phase II Phase I 29.6% 14.8%

100.0% 100.0% 100.0% 83.1% 95.9%

Source: NHAI, MoRTH, Aranca Research Note: NHDP - National Highway Development Phase, BOT - Build Operate Transfer

Infrastructure is a key government priority

Infrastructure investment is a major focus area for the government The Government targeted USD500 billion worth of spending on infrastructure in the 11th Five-Year Plan (FY08-12); the amount is set to double to USD1 trillion in the 12th Five Year Plan (FY13-17)

Support from the Union Budget

The FII investment limit in infrastructure corporate bonds was raised from USD5 billion to USD25 billion in the Union Budget An increase in road development fund was also announced The Indian government plans to establish a Road Regulator Authority in FY14 to address financial issues, construction risk and contract management in the road sector The Prime Ministers Gram Sadak Yojana (PMGSY) is a scheme for development of rural roads in India The Construction of Rural Roads Project (CRRP) is another initiative focused on rural development

Rural development

Taxes and other sops

Companies enjoy 100 per cent tax exemption in road projects for five years and 30 per cent relief for the next five years The companies are also granted a capital of up to 40 per cent of the total project cost to enhance viability
Source: Aranca Research, Notes: FDI - Foreign Direct Investment, FII - Foreign Institutional Investors

Issue of tax-free infrastructure bonds

Infrastructure finance companies, such as India Infrastructure Finance Corporation (IIFCL), National Highways Authority of India (NHAI), Housing and Urban Development Corp (HUDCO), Power Finance Corporation (PFC) and India Railway Finance Corporation (IRFC), have been allowed to issue tax-free bonds for a total value of USD9.2 billion for FY14 Institutions were allowed to raise tax-free bonds of about USD5.5 billion in FY12 and up to USD4.6 billion in FY13

Encouragement of Infrastructure Debt Funds (IDFs)

The Government of India has set up the India Infrastructure Finance Company (IIFCL) to provide long-term funding for infrastructure projects Interest payments on borrowings for infrastructure are now subject to a lower withholding tax of 5 per cent vis--vis 20 per cent earlier IDF income is exempt from income tax

Central Road Fund (CRF)

The Central Road Fund (CRF) assists the state government and union territories in the development of state roads For FY13, USD3.6 billion was allocated for the development of roads

Project
Four Laning of Coimbatore-Mettupalayam Four Laning of Walayar -Vadakkancherry section Walajapet-Poonamalee 2-Laning with paved shoulder of Raebareli to Jaunpur Six- Laning of Anandapuram-Visakapatnam-Anakapalli Six-Laning of Gundugolanu Rajamundry Vijayawada-Gundugolanu Section Six Laning of Kishangarh Udaipur Ahmedabad Etawah -Chakeri (Kanpur) Agra-Etawah Bypass Four Laning of Kiratpur-Ner Chowk Section

Length (kilometre)
67 54 93 166 58 120 103.6 556 160 125 84

Cost (USD million)

123 142 268 118 174 336 351 1,122 328 251 400

Company
Transstroy - OJSC Consortium KNR Constructions Ltd ESSEL Infra Projects Ltd PNC Infratech Ltd Transstroy (India) Ltd - OJSC Corporation IVRCL Assests & Holding Limited Gammon Infrastructure Proj GMR Infrastructure Ltd Oriental Structural Engineers Ltd Ramky Infrastructure Ltd IL & FS Transportation Networks Ltd

Source: NHAI, MoRTH, Aranca Research Notes: BOT - Build Operate Transfer, UB - Union Budget

For updated information, please visit www.ibef.org

Roadways has been a key focus area of budget allocations over the years For FY14, the Planning Commission has provided an outlay of USD6.9 billion for the road sector The budget outlay for road transport and highways increased at a robust CAGR of 19.4 per cent between FY09 and FY14

Outlay for roads under respective Union Budgets (USD billion)

6.9

CAGR: 19.8%
3.5 2.8 3.2

5.6

6.4

In FY14, the government plans to improve about 8,270 kilometers of the National Highways along with construction/rehabilitation of 100 bridges and four bypasses for an estimated cost of USD4.3 billion
FY09 FY10 FY11 FY12 FY13 FY14

Source: Respective Union Budgets, Aranca Research Note: CAGR - Cumulative Annual Growth Rate

For updated information, please visit www.ibef.org

IRB Infrastructure is one of Indias leading BOT operators with a built-length of around 8,000 lane kilometres So far, the company has undertaken BOT projects (completed/under execution) worth USD3.5 billion The company has 19 BOT projects currently, of which three are complete, nine operational, and seven under construction As on 31 December 2012, IRB Infrastructures order backlog stood at about USD1.7 billion

Toll revenue: IRB Infrastructure Limited (USD million)

256

CAGR: 35.0%
176

201

96 77

FY08

FY09

FY10

FY11

FY12

Source: Company Annual Report, Aranca Research Notes: CAGR - Compounded Annual Growth Rate, BOT - Build Operate Transfer

2013 2012

2011 Signed contract with NHAI for four-laning of NH-17 from Goa/ Karnataka to Kundapur

2010

Won first ultra-mega NHAI road project worth USD750 million Won three road projects worth USD411 million

Acquired MVR Infrastructure & Tollways Pvt Ltd

Source: Company Annual Report, Aranca Research

ITNL has the largest BOT road asset portfolio (in terms of lane kilometres) in India, with presence in 16 states The company has 11,859 lane kilometres under its road asset portfolio; this comprises 28 projects

Revenue trends: IL&FS Transportation Networks Limited (USD million)

1,168

CAGR: 66.1%

ITNL has 24 PPP projects currently, of which 11 are complete and 13 under construction
502 255

843

FY09

FY10

FY11

FY12

Source: Company Annual Report, Aranca Research Notes: CAGR - Compounded Annual Growth Rate, BOT - Build Operate Transfer, Km - Kilometers

2013 2012

2011 Won USD312 million contract for six-laning Barwa-AddaPanagarh sector of National Highway 2

Four-laning of BeawerGomti Road Project

2010 Was awarded order for 1,129 lane kilometres for a total value of USD1.5 billion

Was awarded order for 1,086 lane kilometres for a total value of USD1.5 billion

Source: Company Annual Report, Aranca Research

Infrastructure Leasing and Financial Services Ltd (IL&FS) promoted National Toll Bridge Company Limited (NTBCL) as a special purpose vehicle (SPV) for the development of the 22-km Delhi-Noida Direct (DND) flyway on a Build Own Operate Transfer (BOOT) basis Incorporated in Uttar Pradesh, India in 1996, NTBCL is a publicly listed company and operates only in India

Revenue trends: Noida Toll Bridge (USD million)

CAGR: 13.9%
16.6 17.2 17.9 18.9 19.9

10.4

SALIENT FEATURES Eight-lane dual carriageway connecting Noida and Delhi One major and three minor bridges over Yamuna river
FY07 FY08 FY09 FY10 FY11 FY12

Eight-lane approach road on embankment

31-lane, 200m-wide, fully computerised toll plaza Extensive tree planting and landscaping Noise barriers and river training works

Source: Company Annual Report, Aranca Research

National Highway Authority of India (NHAI) aims to award 2500 kilometres of projects in FY14 vis--vis 787 kilometres during the last fiscal Currently, around 23,120 kilometres of NHDP projects are in the pipeline, with the highest share for NHDP IV (16,632 kilometres)

Projects to be awarded (in kilometres)

6,491

Projects to be awarded (in kilometres) by NHDP phases

16,682

3,899

2,500
1,840 787 2,519 1,000 NHDP III NHDP IV NHDP V 659

420 FY14E FY15E

NS - EW Ph. I & II

FY12

FY13E

NHDP VI NHDP VII

Source: NHAI, MoRTH, Aranca Research Note: NHDP stands for National Highways Development Project

Development of national highways through Public-Private Partnership (PPP) is expected to remain the key focus area for the government During the next five years, investments through PPP are expected to be over USD41 billion for national highways and around USD10 billion for state highways

PPP opportunity over the next five years

USD 41.2 billion

USD 9.9 billion

National Highways

State Highways

Source: NHAI, MoRTH, Aranca Research

In India, roads remain the most important means of transport; it accounts for 85 per cent of passenger traffic and 65 per cent of freight traffic Passenger cars are expected to grow at a CAGR of 15 per cent to 677 millions in FY15 and LCV to grow at a CAGR of 21 per cent over FY10-15 to 3 million in FY15

Projected growth of vehicles

3.5 3 2.5 2 750 600 450 300 150 0 FY10 FY11E FY12E FY13E FY14E FY15E LCV units in 000s (right axis) PC units millions (left axis)

1.5
1

Source: SIAM Report, Aranca Research Notes: PC - Passenger Cars, LCV - Light Commercial Vehicles, SIAM - Society of Indian Automobile Manufacturers

Foreign contractors were awarded projects worth about USD1.69 billion during 1999-2011; Malaysian and Russian* contractors have topped the foreign contractors list About 55 per cent of all such contracts were funded via BOT, BOT-Annuity and BOT-SPV routes

Summary of foreign contract awards

688 568 429 339

A joint venture between SVBTG Consortium (USA) and Stradcom Corp (Philippines) had won the largest contract during that period (project cost of USD134 million)
Malaysian Russia*

199 105 137 149 134 6 Russian China USA Taiwan 101 107 48 45 S. Korean 41 Indonesian 51

Project Cost (USD mn)

Length (kms)

Source: NHAI, MoRTH, Aranca Research Note: BOT - Build operate transfer, * - Russian joint venture with Indian firm

Significant potential for construction & EPC companies

Strong focus on infrastructure

Major government initiatives to boost private and foreign investment

About two-thirds of NHDP road

Infrastructure

projects (ex-phase IV) are yet to be awarded, thereby offering a huge opportunity for private players over the next five years.
For the 12th Five Year Plan, the

spending is expected to touch USD1 trillion in the next Five-Year Plan (FY13-17) Budget FY14 allows financial institutions to raise USD9.2 billion from tax-free bonds

Increased

FII limit in infrastructure corporate bonds from USD5 billion to USD25 billion in FY12 is a step in the right direction FDI inflow for FY200013 (February) in construction development and infrastructure sector (including roads and highways) stood at USD24.1 billion

Union

Cumulative

government targets to develop National Highways at the rate of 20 km per day

Indias construction sector is

The budget also proposed key

expected to grow at about 35 per cent over FY09-13

steps such as relaxing ECB guidelines, removal of cascading effect of DDT and reductions in WHT

Source: NHAI, MoRTH, Union Budget, Aranca Research Notes: FDI - Foreign Direct Investment, FII - Foreign Institutional Investor; EPC - Engineering, Procurement and Construction; ECB - External Commercial Borrowings; WHT - Withholding Tax; DDT - Dividend Distribution Tax

Ministry of Roads Transport and Highways

Transport Bhavan 1, Parliament Street New Delhi 110001 Phone: 91-11-23719097, 23719955 E-mail: ifcmost@nic.in

National Highway Authority of India

G 5 and 6, Sector 10, Dwarka New Delhi 110 075 Phone: 91-11-25074100, 25074200 Fax: 91-11-25093507, 25093514

Indian Roads Congress

Sector 6, (Near RBI Quarters), RK Puram, New Delhi 110022 Phone: 91-11-26185303 Secretariat: 91-11-26716778, 26183669, 26185273, 26185315, 26185319 Fax: 91-11-26183669 E-mail: secretarygen@irc.org.in

BOT: Build Operate Transfer CAGR: Compound Annual Growth Rate EPC: Engineering, procurement and construction FDI: Foreign Direct Investment FY: Indian Financial year (April to March) So FY10 implies April 2009 to March 2010 GOI: Government of India INR: Indian Rupee LCV: Light Commercial Vehicles MoRTH: Ministry of Roads Transport and Highways NH: National Highway NHAI: National Highway Authority of India

NHDP: National Highway Development Project USD: US Dollar Conversion rate used: USD1= INR54.43

Exchange Rates (Fiscal Year) Year

2004-05 2005-06 2006-07

Exchange Rates (Calendar Year) Year

2005 2006 2007 2008

INR equivalent of one US$

44.95 44.28 45.28

INR equivalent of one US$

45.55 44.34 39.45 49.21

2007-08
2008-09 2009-10 2010-11 2011-12 2012-13

40.24
45.91 47.41 45.57 47.94 54.31

2009
2010 2011 2012 2013

46.76
45.32 45.64 54.69 54.45
Average of the year

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