SECTOR UPDATE 31 JAN 2020

NHAI
Counting on positives
NHAI finally seems to be firing on multiple fronts to make the  NHAI toll collection hits record high: NHAI recorded its
NHAI Ordering
Highway ecosystem more stakeholders/investor friendly. highest daily toll collection number of Rs 862mn in NHAI Ordering Till FY19 FY20 FY21 FY22
Slew of measures have been announced viz (1) Arbitration January. Though implementation of FASTag technology Length (km) 7,494 4,000 5,200 5,200
settlement though conciliation (2) FASTag implementation has resulted in fixing toll leakages (especially on NHAI
(3) Tweaking of the ToT model & (4) Improving visibility on Rs bn 1,349 743 962 962
operated stretches), increase in traffic volume during the
awarding. These measures add to positives and will benefit festive season after muted traffic growth witnessed in
Road EPC players with strong balance sheet. September (monsoon impact) is also a factor resulting in NHAI Capital Structure
KEY DEVELOPMENTS high toll collection numbers. Our Industry channel checks (Rs tn) FY19 FY20E FY21E FY22E
suggest about 5-8% normalized increase in NH daily toll
 Settlement of arbitration claims through conciliation: collections post FASTag. Equity 1.93 2.23 2.64 3.16
With arbitration claims of ~Rs 700bn and ~180 cases
Debt 1.79 2.39 3.02 3.97
under hearing, NHAI is resorting to settlement of majority  NHAI to hit peak debt of Rs 5.4tn by FY25 (end of BM1),
of the claims through conciliation. NHAI is expected to net D/E 1.08x: We forecast NHAI debt to peak at Rs 5.4tn D/E 0.93 1.07 1.15 1.25
reduce its liabilities through this process as it will ensure by completion of Bharat Mala - 1. Increase in toll revenue,
faster disbursement of settlement proceeds to ToT monetization, Toll securitization and GOI funding
developers. This is a big positive for the sector as NHAI-Receipts (Estimated)
support will provide sufficient cash flows for debt
developers can expect faster resolution of arbitration (Rs bn) FY19 FY20E FY21E FY22E
servicing.
cases eliminating the need for developers/NHAI to
Cess 161 161 177 195
challenge awards by lower courts in higher courts, leading STANCE
to elongated timelines for reaching settlement in such Toll 92 95 129 179
Road EPC players’ fortunes are linked to NHAI ordering. High
cases. Innovative structures are also being worked out ToT - 50 100 150
land acquisition cost (~30% of Total NH cost) has led to
with HCC initiating a carve-out for around Rs 21bn of debt
ballooning of NHAI debt and concerns on sustainable Total 253 306 406 523
with arbitration awards claims as security. These shall be
ordering. GOI commitment to Infra build-out in India as
moved to an SPV with third party ownership.
envisioned in the NIP program seems positive but lacks
 Bidding activity picking up, listed developers on wait and financial detailing (Union Budget 2020 may lend some
watch mode: Historical trends suggest NHAI ordering to visibility). On the positives, NHAI ordering has resumed.
Banking environment is improving with no shortage of Parikshit D Kandpal, CFA
be heavily loaded during Jan-Mar period. NHAI has
capital for companies with strong balance sheet. HAM parikshitd.kandpal@hdfcsec.com
already awarded Rs 202bn worth of projects during
monetization has picked up and most of projects have +91-22-6171-7317
9MFY20. Bid pipeline looks strong with Rs 361bn of
received ‘Appointed Date’. Interest rate has been supportive.
projects lined up for grabs until Feb-20. Further, Mar-20 Shrey Pujari
We maintain our positive stance on the sector going into
bid pipe is awaited. Unlisted players have taken lion share FY21E. We believe peak ordering is still 2yrs away and P/E shrey.pujari@hdfcsec.com
of 9MFY20 NHAI awards. Chinese player Jiangxi has valuation is supportive (average peer P/E 8x FY21E EPS a 50% +91-22-6639-3035
entered the fray and won about Rs 20bn of awards and is discount to long term averages). Top Picks: KNR, PNC, HG
L1 in Rs 17.2bn. Listed bidders have adopted watch and Infra and Ashoka Buildcon. In building segment we prefer Rohan Rustagi
watch mode and are not giving into aggressive bidding. Capacite and Ahluwalia Contracts. rohan.rustagi@hdfcsec.com
+91-22-3021-2079
HDFC securities Institutional Research is also available on Bloomberg ERH HDF <GO> & Thomson Reuters
 NHAI: SECTOR UPDATE

Arbitration awards pending for major developers

Arbitration in
With NHAI emphasizing on Current Status
favour (Rs bn)
settlement of majority of the claims NHAI has opted to contest the award of these claims in higher
through conciliation, this will come courts.
KNR Constructions 7.6
as a major relief to the sector as the Difficulty in securing Bank Guarantees for 75% claim amount as
developers can expect faster receipt banks insist on 100% cash margin
of proceeds against the arbitration Received arbitration award in its favour but has only received Rs
claims. This is expected to improve GR Infra 1.3 500mn till date. Balance Rs 759mn arbitration award is yet to be
paid by NHAI
the liquidity across the sector as
NHAI has opted to contest the award of these claims in higher
well as for financial institutions as Gayatri Projects 5.0
courts
they are expected to receive Kalpataru Power Transmission Ltd/ JMC NHAI has opted to contest the award of these claims in higher
significant proceeds towards 1.5
Projects courts
repayment of debt NHAI has opted to contest the award of these claims in higher
courts.
The company has Rs 11bn of claims under consideration at
Ashoka Buildcon 6.0
arbitration panel level the outcome of which is yet to be decided.
The company is also under the process of filing additional claims
of Rs 8bn
NHAI has opted to contest the award of these claims in higher
courts. Difficulty in securing Bank Guarantees for 75% claim
amount as banks insist on 100% cash margin.
Sadbhav Engineering 3.7
The company has Rs 5bn of claims under consideration the
outcome of which is yet to be decided. The company also has Rs
2bn stuck under change of scope clause
The company has secured arbitration award in its favour but is yet
Gammon Infra 3.0
to receive the proceeds from NHAI
Simplex Infra 2.0 The company has secured arbitration award in its favour
Total 30.1
Source: Company, HDFC sec Inst Research

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 NHAI: SECTOR UPDATE

During 9MFY20, NHAI awarded Bidding Activity During 9MFY20 (Rs bn)
Grand
projects of ~Rs 201bn with ~86% of Contractors EPC HAM Item Rate
Total
the projects awarded through the
GR Infra Projects Ltd. 43.9 - - 43.9
EPC mode (with balance projects
KCC Buildcon Pvt. Ltd. 22.5 - - 22.5
awarded through Item Rate Mode Gawar Construction Ltd. 12.4 - 9.5 21.9
and HAM) Jiangxi Construction Engineering (Group) Co. Ltd. 20.2 - - 20.2
Centrodorstroy India Pvt. Ltd 18.8 - - 18.8
Awarding wins for the period was J.Kumar Infraprojects Ltd. 15.4 - - 15.4
driven by unlisted players with GR Krishna Constructions 14.7 - - 14.7
Infra leading the charts having Others 8.9 - - 8.9
secured 22% of the total projects Ashoka Concessions Limited - 7.4 - 7.4
awarded VRC Constructions (India) Pvt. Ltd. 7.1 - - 7.1
S.P.K. and Co. - - 5.2 5.2
Chinese player Jiangxi has won NKC Projects Private Ltd. 4.5 - - 4.5
projects worth Rs 20.2bn and is L1 EKK Infrastructure Limited - - 3.9 3.9
in Rs 17.2bn in 4QFY20. This will be VRC Construction (India) Pvt. Ltd. - Varindera Construction Ltd. - S&P
3.5 - - 3.5
big Chinese foray in Indian NH Infrastructure Developers Pvt Ltd (JV)
construction we will wait to see if it SD Infra - - 1.7 1.7
impact local players bid pattern BP Sangle Constructions 1.3 - - 1.3
Jandu Construction Company 0.6 - - 0.6
J Kumar and Ashoka Buildcon Grand Total 173.9 7.4 20.2 201.5
secured 6th/9th position respectively Source: NHAI, HDFC sec Inst Research
having secured orders worth Rs
15.4bn/7.4bn respectively  Jiangxi Construction Engineering, a Chinese Jiangxi Indian partner MKC Infra abridged financials
developer, has emerged as the 3rd largest bidder for
Rs mn FY18 FY19
Jiangxi Construction has also bid for NHAI EPC projects awarded during FYTD20. It has
Revenue 3,590 5,307
EPC packages on Delhi- Vadodara also secured L1 position in 2 EPC orders worth Rs
EBITDA 289 366
stretch (packages 29,30 and 31) in a 17.2bn awarded recently during 4QFY20, in a JV
JV with MKC Infrastructure, which is with MKC Infra, taking the total orders secured to PAT 175 234
Rs 37.3bn. Jiangxi secured the position by bidding at Networth 760 994
a Gujarat based contractor.
a discount of ~2.5% to NHAI cost vs bids placed at a Total Debt/NW 0.3 0.3
premium by other developers. Current Ratio 1.3 1.4
Majority of the orders are secured by the unlisted Source: Brickworks Ratings, HDFC sec Inst Research
players in the road segment, with GR Infra securing
~22% of the orders during 9MFY20.

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 NHAI: SECTOR UPDATE

Southern region dominates the bid 4QFY20 Expected to be an ‘Order-heavy’ Quarter

pipeline (declared till date) with  Though 9MFY20 has seen limited activity on the to be awarded in the region. During 9MFY20, NHAI
~48% of orders by length and ~40% ordering front, 4QFY20 is expected to be an ‘order- awarded road projects for ~1,120km majority of
of orders by NHAI BPC constituted heavy’ quarter for NHAI. NHAI has a bid pipeline of which were through EPC mode (one project was
by the four southern states ~Rs 361bn (1,215km) up to Feb 2020 with ~55% of awarded through HAM). Thus with an initial bid
the projects to be awarded through the EPC mode. pipeline of 1,215km during 4QFY20, we expect
heightened awarding activity with the aim of
 The southern states are expected to witness closing in on its target of ~4,500km of awarding
With an initial bid pipeline of significant activity with ~41% of the projects by
1,215km during 4QFY20, we expect during FY20.
BPC and ~51% of the projects by length expected
heightened awarding activity with
the aim of achieving its target of Bid Pipeline for 4QFY20 (declared till date)
~4,500km of project awarding NHAI BPC Percentage of Total
Length (km) Likely
during FY20 State (Rs bn) Total NHAI BPC Total Length (%) developer
(Rs bn) (km)
EPC HAM EPC HAM BPC Length participation
Central 13 16 45 110 29 155 8% 13%
NHAI awarding is traditionally
Chhattisgarh 6 39 6 39 2% 3% DBL
back-ended as has been witnessed
MP 13 10 45 70 23 115 6% 9% DBL
during FY18 and FY19, with ~70% of
the awarding activity taking place North 90 13 128 97 103 225 29% 19%
in the 4th quarter Delhi 45 - 53 45 53 12% 4% HG Infra
Haryana 11 - 37 11 37 3% 3% HG Infra
Jharkhand 18 13 22 97 31 119 9% 10% PNC
PNC, DBL,
UP 17 - 16 17 16 5% 1%
Ashoka
South 14 135 113 508 149 621 41% 51%
KNR, Ashoka,
Karnataka 9 28 58 126 37 184 10% 15%
DBL
Kerala 1 56 2 150 57 153 16% 13% KNR
Tamil Nadu 5 22 54 88 27 142 8% 12% KNR
KNR,Ashoka,
Telangana 28 142 28 142 8% 12%
DBL
West 80 - 215 80 215 22% 18%
Gujarat 24 - 63 24 63 7% 5% DBL, Ashoka
Rajasthan 56 - 151 56 151 16% 12% DBL, Ashoka
Grand Total 197 164 501 714 361 1,215
Source: NHAI, HDFC sec Inst Research

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 NHAI: SECTOR UPDATE

The record high average daily toll
collection can be attributed to
factor such as (1) Mandatory
implementation of FASTag, which
has plugged leakages in toll to
some extent (primarily on NHAI
operated projects based on our
channel checks), (2) Volume based
growth during the festive season
after muted toll collections in the
previous quarter owing to delayed
monsoon retreat and (3) Toll
revision and new toll length
addition
NHAI sees record high average daily toll collection in January 2020
NHAI has stated that its average daily toll collection
has touched a record high of Rs 862mn/day. This
collection number takes into account collections from
toll plaza’s from both BOT Toll projects and those
stretches under NHAI operations. This can be
attributed to the following factors:
 FASTags: Mandatory implementation of FASTag
has aided this to some extent. FASTag was
implemented across all NH stretches starting
December 15, 2019. This has resulted in reduction
of leakage in toll collection to a large extent.
Through our channel checks, we observed that
though toll leakage in privately operated toll plazas
wasn’t as rampant, leakage in toll collection was as
high as 20% in certain NHAI operated stretches.
With full implementation of FASTag technology
starting January 15, 2020 toll leakages are
expected to reduce further. This is a huge positive
for NHAI as this will help it ascertain the true value
of the project stretch and hence it stands to
receive better valuation for its stretches through
ToT asset monetization.
 Seasonality factor: On a broad level, toll
collections show an improvement in the 2nd half of
the year after the conclusion of monsoon season.
Volume-led growth during the festive season in the
early parts of January is another factor which may
have contributed to average daily toll collections
hitting above mentioned levels. Considering a 10%
factor for seasonality as per our channel checks,
the normalized average toll collection can be
assumed to be Rs 783mn. Also, as per our channel
checks, toll collections were muted during
September due to extended monsoon. Thus due to
base-effect the toll collections appear to have
increased on a percentage basis during September
to December period.

Year-wise trend for average daily toll collection (Rs mn)

Daily toll collection (Rs mn) 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
BOT Toll* 187.4 218.9 274.9 338.3 345.4 422.2 474.1
EPC^ 65.2 93.1 113.3 134.3 146.2 179.2 194.2
Total 252.7 312.0 388.2 472.6 491.6 601.3 668.4
YoY Growth (%) 31.1 23.5 24.4 21.7 4.0 22.3 11.2
Source: NHAI, HDFC sec Inst Research, *Project stretches under PPP model, ^Stretches under NHAI Toll-able length

 Annual escalation in toll rates also contributes to
the increase in toll collection. There has been a
~4% revision in toll rate in FY20 owing to a 3% flat
escalation for every year of operation since the
base year (FY07-08) plus 40% of the WPI increase
since the base year. Adjusting for seasonal
anomalies, toll hikes and new length addition, we
assess 5-8% improvement in NHAI toll collection
post the FASTag implementation

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 NHAI: SECTOR UPDATE

NHAI financial position at the end of Bharatmala Implementation period

(Rs bn) FY19 FY20E FY21E FY22E FY23E FY24E FY25E
NHAI’s external borrowing is
expected to peak to Rs 5.4tn by the Total Equity 1,929 2,234 2,640 3,164 3,732 4,363 5,062
end of Bharatmala Implementation Total Borrowings 1,794 2,394 3,024 3,969 4,809 5,159 5,459
period in FY25. Outflow towards D/E 0.93 1.07 1.15 1.25 1.29 1.18 1.08
implementation activities includes Outflow towards implementation activities 851 1,041 1,465 1,370 1,096 1,033
construction outlay towards EPC Source: NHAI, HDFC sec Inst Research
and HAM projects, annuity
payments towards HAM projects Year-wise capital inflow and outflow towards Bharatmala Phase-1 Implementation*
entering commercial operations, (Rs bn) FY20E FY21E FY22E FY23E FY24E FY25E
interest and other expenditure on Cash Inflow
bonds and cost towards acquisition
Cess Fund 161 177 195 214 236 259
of balance land for Bharatmala
Revenue from tolls 95 129 179 254 295 340
Phase-1. For awarding balance
projects, we have assumed a 50/50 Monetization through TOT/Securitization 50 100 150 100 100 100
breakup between EPC and HAM IEBR (Net) (External borrowings and repayments) 600 630 945 840 350 300
projects for estimating the Total Capital Inflow 906 1,036 1,468 1,408 981 999
construction outlay Interest Income and Capital Reserve 32 31 35 33 26 24
Total Cash Inflow 938 1,067 1,503 1,440 1,007 1,023
Cash Outflow - - - - - -
NHAI equity inflow comprise of
budgetary allocation through Cess Construction and Annuity Outlay 567 628 1,125 1,107 796 714
Fund, revenue from toll collection Land Acquisition 158 250 130 - - -
(toll plough-back) and monetization Interest and other expenditure on Bond 126 163 210 263 299 319
of assets through TOT / Total Cash Outflow towards BM-1 851 1,041 1,465 1,370 1,096 1,033
Securitization. The allocation from Other Expenses 36 16 85 23 (54) (23)
Cess Fund is assumed to increase by
Total Cash Outflow 887 1,057 1,550 1,394 1,042 1,010
10% annually while Rs 600bn is to
be raised through asset Net Cash Surplus/Deficit 50 10 (47) 46 (35) 13
monetization over FY20-25. Closing Cash Position 61 71 24 70 36 49
Revenue from toll collections is Source: NHAI, HDFC sec Inst Research, assuming Bharatmala Phase-1 implementation till FY25
estimated assuming incremental
addition to the toll-able length with
HAM and EPC projects entering into
commercial operation

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 NHAI: SECTOR UPDATE

National Infrastructure Pipeline- Road Sector Plan

~20% of the planned investments
under National Infrastructure
Pipeline are targeted towards the
road sector
Under NIP, the NH network is
planned to be expanded by
~60,000km with ~20,000km in
major economic corridors, strategic
areas and tourist destinations
 GoI has constituted a task force for
implementation of the National Infrastructure
Pipeline for FY19-25 targeting Rs 102tn of
investment in the Infrastructure space over the
next five years.
 The role of the task force is to (1) Identify
technically feasible and financially/ economically
viable infrastructure projects that can be initiated
in fiscals 2020 to 2025 (2)Estimate annual
infrastructure investment/capital costs
(3)Identifying appropriate sources of financing
(4)Project monitoring to minimize time and cost
overrun.
The government plans to front-end the investment
phasing with the expectation that tangible outputs are
will be visible by the end of the five year
implementation period.
 Current Status of the road sector: The total length
of NHs in India stands at ~132,000km of which
expressways constitute ~1,600km. However,
private sector participation continues to be low at
~15% due to stressed balance sheet of developers
owin g to legacy issues with BOT Toll and
implementation of Hybrid Annuity Mode as a
result, requiring lower private investment vs earlier
models.

Planned Investment in Road Sector (Rs bn)* Vision Going Forward: Over the next 5 years, the govt has
Centre State Private planned to expand the NH network by ~60,000km with
4.0 about 20,000km in major economic corridors, strategic
3.5 areas and major tourist destinations. The government
3.0
expects increased private sector participation at ~39%.
1.4
1.3 Going forward, asset aggregators/PE investors are
2.5 1.2 1.2
expected to maintain asset ownership, signaling NHAIs
2.0 0.9 intentions of scaling up of asset monetization plans.
0.9
1.5
1.2
1.3 1.2 1.2
Of the total planned investments, ~ 34% of the projects
1.0 0.9 0.8
are under implementation, ~27% of the projects are
1.2 1.3 under development, ~ 36% of the projects are under
0.5 0.8 0.9 0.9 0.8
0.6 0.6 conceptual stage and the balance projects are
0.0 unclassified.
FY18 FY19 FY20* FY21 FY22 FY23 FY24 FY25

Source: NHAI, NIP Report of the task force

*Assuming same annual investment phasing by implementation
agencies over FY20-25

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 NHAI: SECTOR UPDATE

Peer Group Valuation Summary (Core EPC Operations)

MCap Adj. EPS (Rs/sh) P/E (x) EV/EBITDA (x) ROE (%)
CMP TP
COMPANY (Rs RECO
(Rs) (Rs) FY19 FY20E FY21E FY19 FY20E FY21E FY19 FY20E FY21E FY19 FY20E FY21E
bn)
We summarize the valuations of the Dilip Buildcon 55.4 405 BUY 717 55.6 45.0 48.0 4.8 5.9 5.5 4.5 3.9 3.5 26.9 17.5 15.8
core EPC operations of our coverage PNC Infratech 50.4 197 BUY 340 9.1 12.4 15.9 15.6 11.5 9.0 8.6 5.1 5.0 11.9 15.3 15.4
universe and excluding the value of KNR Constructions 42.9 305 BUY 378 12.3 14.1 17.7 19.9 17.4 13.9 8.7 7.7 6.3 13.5 13.0 13.7
the asset portfolio, land and any
NCC 33.5 56 BUY 111 10.4 5.6 6.9 4.6 8.5 7.0 3.2 4.2 3.2 13.8 6.9 7.8
other investment
Ashoka Buildcon 32.1 114 BUY 206 11.5 9.5 11.2 3.7 4.4 3.8 3.8 3.5 3.2 15.5 12.6 13.2
Sadbhav
21.8 127 BUY 241 10.9 11.0 13.2 7.7 7.6 6.3 6.9 4.9 4.5 9.2 8.6 9.4
Engineering
Ahluwalia Contracts 21.4 320 BUY 388 17.5 18.3 25.0 17.5 16.8 12.3 8.8 8.5 6.2 17.3 15.4 18.0
PSP Projects 18.6 518 NEU 590 25.1 33.1 39.4 20.7 15.7 13.2 11.2 9.6 7.9 26.8 28.3 26.9
HG Infra 16.6 254 BUY 441 19.0 26.4 33.2 11.2 8.0 6.4 5.7 4.7 3.8 20.6 22.8 22.7
JMC Projects 16.5 98 BUY 175 8.5 9.7 10.9 8.7 7.5 6.7 5.7 4.6 3.9 16.6 16.4 15.8
Capacite
13.2 194 BUY 360 14.1 15.8 27.2 17.1 11.5 6.7 5.3 4.3 3.2 12.0 12.0 17.8
Infraprojects
JKIL 10.4 153 BUY 276 23.4 27.8 34.5 6.5 5.5 4.4 3.8 3.1 2.7 11.1 12.0 13.4
ITD Cementation 10.2 59 BUY 83 3.2 4.8 6.9 18.4 12.4 8.5 5.8 4.8 4.2 6.8 7.7 10.3
Average 12.0 10.2 8.0 6.3 5.3 4.4 15.5 14.5 15.4
Source: HDFC sec Inst Research

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 NHAI: SECTOR UPDATE

Annexure: Bid Pipeline for 4QFY20 (declared till date)

S. Bid Opening NHAI
Projects Lanes Mode Length State Region
No. Date BPC
RFP for Construction of Eight Lane access-
controlled Expressway carriageway from
Kandarwasa village to Bawadi village (near
1 Shivgarh) of Ratlam district section of Delhi- 07/01/2020 8 EPC 10 25 MP Central
Vadodara Greenfield Alignment (NH-148-N)
under Bharatmala Pariyojana in the State of
Madhya Pradesh on EPC mode
RFP for 4-lane with paved shoulder configuration
of Pathrapali-Kathghora (Pkg. II) of Bilaspur-
2 Kathghora section of NH-111 (New NH-130) in 08/01/2020 4 HAM 6 39 Chhattisgarh Central
the State of Chhattisgarh under Bharatmala on
Hybrid Annuity Mode.
Four laning of Katni-Bypass of National Highway
3 – 7 (old) in the State of Madhya Pradesh on EPC 15/01/2020 4 EPC 2 20 MP Central
Mode
Construction of Eight Lane access-controlled
expressway from junction with SH-175 near
Baletiya village of Panchmahal district to junction
with SH-63 near Pratap Nagar village of
4 16/01/2020 8 EPC 8 22 Gujarat West
Vadodara district section of Delhi – Vadodara
Greenfield Alignment (NH-148N) on EPC Mode
under Bharatmala Pariyojana in the State of
Gujarat.
Construction of Eight Lane access-controlled
expressway starting from Junction with NH-47
near Bhamaiya village and ending at Junction
5 with SH-175 in Baletiya village in Panchmahal 16/01/2020 8 EPC 8 23 Gujarat West
district section of Delhi – Vadodara Greenfield
Alignment (NH-148N) on EPC MODE under
Bharatmala Pariyojana in the State of Gujarat
Construction of Eight Lane access-controlled
expressway starting from junction with SH-63
near Pratap Nagar village and ending at junction
6 with NE-1 near Dodka village of Vadodara District 16/01/2020 8 EPC 8 19 Gujarat West
section of Delhi – Vadodara Greenfield
Alignment (NH-148N) on EPC Mode under
Bharatmala Pariyojana in the State of Gujarat.

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 NHAI: SECTOR UPDATE

S. Bid Opening NHAI

Projects Lanes Mode Length State Region
No. Date BPC
RFP for Construction of Eight Lane Carriageway
starting near Major Bridge on Mej River to
Junction with SH-37A section of Delhi – Vadodara
7 21/01/2020 8 EPC 11 28 Rajasthan West
Access Controlled Green field Alignment (NH-
148N) on EPC Mode under Bharatmala
Pariyojana in the State of Rajasthan.
RFP for Construction of Eight Lane Carriageway
starting from Major bridge over Takli river near
Nayagaon Jageer village to Rajasthan/MP Border
8 section of Delhi - Vadodara Access Controlled 21/01/2020 8 EPC 7 25 Rajasthan West
Green field Alignment (NH-148N) under
Bharatmala Pariyojana in the State of Rajasthan
on EPC mode
Construction of Eight Lane Carriageway starting
near Junction with NH-76 to Junction with NH-12
near village Ummedpura section of Delhi -
9 Vadodara Access Controlled Green field 21/01/2020 8 EPC 8 31 Rajasthan West
Alignment (NH-148N) under Bharatmala
Pariyojana in the State of Rajasthan on EPC
Mode
Construction of Eight Lane access controlled
Expressway from Hardeoganj village near
Indergarh to Major Bridge on Mej river section of
10 21/01/2020 8 EPC 12 12 Rajasthan West
Delhi - Vadodara Green field Alignment (NH-
148N) under Bharatmala Pariyojana in the State
of Rajasthan on EPC Mode
Construction of Eight Lane Carriageway start at
the end approach of interchange on NH-116 at
village Mui and end at Hardevganj village near
11 Indergarh section of Delhi - Vadodara Access 21/01/2020 8 EPC 9 26 Rajasthan West
Controlled Green field Alignment (NH-148N)
under Bharatmala Pariyojana in the State of
Rajasthan on EPC mode
Construction of Eight Lane access controlled
Expressway starting near Junction with SH-37A
to Junction with NH-76 section of Delhi -
12 21/01/2020 8 EPC 9 29 Rajasthan West
Vadodara Green field Alignment (NH-148N) on
EPC Mode under Bharatmala Pariyojana in the
State of Rajasthan

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 NHAI: SECTOR UPDATE

S. Bid Opening NHAI

Projects Lanes Mode Length State Region
No. Date BPC
Construction of Additional Structures in Tamil
Nadu / Kerala Border – Kanyakumari section of
13 NH-47 in the state of Tamil Nadu through an 31/01/2020 4 EPC 5 54 Tamil Nadu South
Engineering, Procurement and Construction
(EPC) Contract.
Development of six – lane access controlled in
Uttar Pradesh portion of Delhi – Saharanpur
Highway from Delhi/UP Border to EPE Junction
14 31/01/2020 6 EPC 17 16 UP North
in the State of Uttar Pradesh on EPC mode
under Economic Corridor in phase-1 of
Bharatmala Pariyojana
Development of six – lane access controlled in
Delhi portion of Delhi – Saharanpur Highway
from Akshardham NH-9 (Old NH-24)Junction to
15 31/01/2020 6 EPC 11 15 Delhi North
Delhi/UP border in the State of Delhi on EPC
mode under Economic Corridor in phase-1 of
Bharatmala Pariyojana
4 laning of Harda -Betul Section of National
Highway(NH-47) from Chicholi to Betul under
16 BHARATMALA Pariyojana Economic Corridor 04/02/2020 4 HAM 5 40 MP Central
(Phase- I) in the State of Madhya Pradesh on
Hybrid Annuity Mode.
4-laning of Harda to Temagaon (Harda-Betul
17 Pkg-I) on Hybrid Annuity Mode under 04/02/2020 4 HAM 5 30 MP Central
Bharatmala Pariyojna Phase-I.
Six Laning of Thalapady to Chengala section of
NH-17 (New NH-66) in the State of Kerala on
18 Hybrid annuity Mode under Bharatmala 06/02/2020 6 HAM 13 39 Kerala South
Pariyojna in the category of residual works
under NHDP
Six Laning of Chengala to Neeleshwaram section
of NH-17 (New NH-66) in the State of Kerala on
19 Hybrid Annuity Mode under Bharatmala 06/02/2020 6 HAM 12 37 Kerala South
Pariyojna in the category of residual works
under NHDP

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 NHAI: SECTOR UPDATE

S. Bid Opening NHAI

Projects Lanes Mode Length State Region
No. Date BPC
Construction of 4 lane Access Controlled
Greenfield Highway Section of Khammam-
Devarapalle National Highway from
20 Ramanujavaram village to Telangana/AP Border 06/02/2020 4 HAM 9 45 Telangana South
under Inter Corridor Route under Bharatmala
Pariyojana, Phase-I on Hybrid Annuity mode in
the State of Telangana
Construction of 4 lane Access Controlled
Greenfield Highway Section of Khammam-
Devarapalle National Highway from
21 Thallampadu village to Ramanujavaram village 06/02/2020 4 HAM 10 45 Telangana South
under Inter Corridor Route under Bharatmala
Phase-I on Hybrid Annuity mode in the state of
Telangana
RFP for Four laning of NH-363 from Repallewada
to Telangana/Maharashtra Border in the State
22 07/02/2020 4 HAM 9 53 Telangana South
of Telangana under NH (O) on Hybrid Annuity
Mode.
Construction of 6 lane NH-344N - Package 5 NH
344 M, Delhi till Bahadurgarh bypass of NH-10
23 11/02/2020 6 EPC 3 7 Haryana North
near Bahadurgarh in Haryana as spur of NH-
344M on EPC mode
Construction of 4 lane NH-344P - Package 4
from Bawana Industrial Area, Delhi till Sonipat
24 11/02/2020 4 EPC 7 30 Haryana North
bypass of NH-352A at Village Barwasani, Sonipat
in Haryana as spur of NH-344M on EPC mode
Construction of 6 lane NH-344M - Package 3
25 From Nangloi Najafgarh Roadto Dwarka Sector 11/02/2020 6 EPC 7 10 Delhi North
24 Road in State of Delhi on EPC mode.
Construction of 6 lane NH-344M - Package 2
26 From Karala-Kanjhawala Road to Nangloi 11/02/2020 6 EPC 11 13 Delhi North
Najafgarh Road in State of Delhi on EPC mode.
Construction of 6 lane NH-344M - Package
27 1From NH 1 to Karala-Kanjhawala Road in State 11/02/2020 6 EPC 16 15 Delhi North
of Delhi on EPC mode

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 NHAI: SECTOR UPDATE

S. Bid Opening NHAI

Projects Lanes Mode Length State Region
No. Date BPC
Four laning of Honnavar Port Connectivity road
from Kasarkod side of Honnavar Port to NH-66
connecting Honnavar Port with NH-66 and to
28 12/02/2020 4 EPC 1 3 Karnataka South
improve NH-66 to integrate port connectivity
road on EPC mode under Bharatmala Phase-I in
the State of Karnataka
Six Laning of Neeleshwaram to Thaliparambha
29 section of NH 17 in the State of Kerala on Hybrid 18/02/2020 6 HAM 16 41 Kerala South
annuity Mode under Bharatmala Pariyojana
4-laning of Palma – Gumla Section of NH-23 in
30 18/02/2020 4 HAM 8 63 Jharkhand North
the State of Jharkhand on Hybrid Annuity Mode.
Six Laning of Thaliparambha- Muzhapilangad
section of NH-17 (New NH-66) in the State of
31 18/02/2020 6 HAM 15 33 Kerala South
Kerala on Hybrid annuity Mode under
Bharatmala Pariyojana
Construction of four lane Minor Bridge (Paloli
Palam), Major Bridge (Moorad) & allied works
like 4lane Main Carriageway with Service Road
32 19/02/2020 4 EPC 1 2 Kerala South
for the section of NH-17 (New NH-66) under
Bharatmala Pariyojana in the State of Kerala on
EPC mode
Four Laning of Tumkur-Shivamogga, Banwara to
Bettadahalli section of NH-206 in the State of
33 24/02/2020 4 HAM 9 46 Karnataka South
Karnataka, on Hybrid Annuity Mode under
Bharatmala Priyojana (Package – III)
4 laning of NH-98 in the State of Jharkhand
34 25/02/2020 4 HAM 5 34 Jharkhand North
under Hybrid Annuity Mode
4 laning of Channarayanpatna Bypass and
providing, Grade Separator Structures, Service
Road and other safety measures in Devihalli to
35 25/02/2020 4 EPC 4 9 Karnataka South
Channarayanpatna section of NH-75 (old NH-
48), on EPC Basis in the State of Karnataka on
EPC Mode
Construction of new link (NH-133B) from of
Sahibganj Bypass in Jharkhand to Manihari
36 Bypass and construction of Manihari Bypass to 25/02/2020 4 EPC 18 22 Bihar North
Narenpur of NH-131A in Bihar including Ganga
Bridge to 4 lane standard on EPC mode.

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 NHAI: SECTOR UPDATE

S. Bid Opening NHAI

Projects Lanes Mode Length State Region
No. Date BPC
Two Laning with paved shoulder of Aurad - Bidar
Section of NH-161A on EPC Mode under
37 Bharatmala Pariyojna in the state of Karnataka 03/03/2020 2 EPC 3 46 Karnataka South
On Engineering, Procurement & Construction
(EPC) Mode
4 laning of Dodaballapur Bypass to Hoskote
section of NH-648 (Old NH-207) on Hybrid
38 14/02/2020 4 HAM 9 38 Karnataka South
Annuity Mode under Bharatmala Pariyojna, in
the state of Karnataka (Package-II)
RFP for 4 Laning of Dobaspet to Dodaballapur
Bypass section of NH-648 ( Old NH-207) on
39 14/02/2020 4 HAM 10 42 Karnataka South
Hybrid Annuity Mode under Bharatmala
Pariyojna, in the state of Karnataka (Package-I).
RFP for Four Laning of Poondiankuppam to
Sattanathapuram section of NH-45A (New NH -
40 25/02/2020 4 HAM 18 57 Tamil Nadu South
332) in the State of Tamil Nadu under NHDP
Phase-IV on Hybrid Annuity Mode.
Two laning with Paved Shoulder of Meensurutti
to Chidambarm Section of NH-227 on Hybrid
41 Annuity Mode under Bharatmala Pariyojana 31/01/2020 2 HAM 5 32 Tamil Nadu South
Phase – I (Residual Projects under NHDP) in the
State of Tamil Nadu (2nd Call).
Total 361 1,215
Source: NHAI, HDFC sec Inst Research, NHAI BPC in Rs bn

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 NHAI: SECTOR UPDATE

Rating Definitions
BUY : Where the stock is expected to deliver more than 10% returns over the next 12 month period
NEUTRAL : Where the stock is expected to deliver (-)10% to 10% returns over the next 12 month period
SELL : Where the stock is expected to deliver less than (-)10% returns over the next 12 month period

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 NHAI: SECTOR UPDATE

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Institutional Equities
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Senapati Bapat Marg, Lower Parel, Mumbai - 400 013
Board : +91-22-6171-7330 www.hdfcsec.com

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