Aurang –Raipur Toll Road Project of Raipur Expressways Limited

A Group Company of

D S Constructions LIMITED

GROUP MEMBERS Arun Kedia (9) Ashis Kumar Chattopadhyay (10)

DSC Limited’s illustrious odyssey in India dates back three decades when. coupled with extensive experience spanning seven decades. About DSC Limited The flagship company of the DSC Group.000 employees across 11 locations. With a balanced portfolio of high margin EPC construction projects and investment in lucrative BOT oriented infrastructure projects. Starting as an Indian construction company 70 years ago. to hospitality. However. trading. USA and UK.S.About DSC Group MISSION ‘CREATING INFRAWEALTH’ . The next thirty years saw it delivering myriad prestigious projects across various sectors including roads & highways. the DSC Group is well positioned to leverage the opportunities in the infrastructure sector. power substations. Constructions emerged as one of the largest overseas construction companies and was conferred the President of India’s “Building the Nation” Award in recognition of its contribution in the construction space. D. The DSC Group is a diversified global business with varied interests spread across the world. the Group has been delivering excellence across the globe. Uniquely placed as a high quality.infrastructure that creates wealth for the nation. sewage & water treatment plants and other commercial projects. Middle East. Constructions won its first project in Libya in 1979 and from thereon has ranked as one of the foremost and most trusted construction companies in that country. it shifted focus overseas in the 1980s with the aim of seizing the construction opportunities abroad. in 1978. since 2002. the Group’s major operations span projects across infrastructure sectors in India and abroad through the various Group companies.S. notably in India. D. Constructions. Reinforcing its scale. financing and constructing infrastructure projects. size and commitment. the Group is again re-focussing on the infrastructure sector in India. real estate and retailing. it commenced operations as D. Diversified across multiple verticals from developing. North Africa. international-grade infrastructure company. Armed with a talented workforce of around 20.S. Capitalising on the post liberalisation opportunities which opened up the . globally. Vindicating its efforts. it steadfastly pursued lucrative opportunities in North Africa and Middle East. hospitals.

DSC Limited’s vertical integration capabilities are demonstrated in its turnkey solutions and end-to-end involvement across the project lifecycle. the Company’s project portfolio in this sector extends across Roads. the Company has selected Transportation as its focus sector given that an efficient and well-integrated transport system not only sustains and drives economic development but more importantly promotes and strengthens national integration.Indian Infrastructure sector in the late 1990s. features as one of Indias leading vertically integrated infrastructure companies through its full service capabilities in both EPC (Engineering. to managing and operating the projects. Within the framework of BOT projects. To deliver on its promise. EPC. As a testament of its differentiated approach and agility. It has health and safety systems in place across all its major project locations. DSC Limited is an ISO 9001:2000 certified company. Expressways and Railways. power. Constructions commenced its operations in the country in 2002. Right from planning to investing and constructing. Procurement & Construction) and Asset Management. coupled with ISO 9000 & 14000 accreditation. Committed to quality and timely completion & delivery of projects. Steered by a visionary management and guided by a futuristic strategy. DSC Limited ranks as a pioneer in the BOT (Build. rapid and innovative development of quality infrastructure to create infrastructure wealth for the nation. axiomatic for a geographically large country like India. today. Our Vision To be the leading infrastructure developer of choice. Power and Real Estate & Urban Infrastructure and straddles a broad spectrum of sectors namely roads and expressways. pipelines. DSC Limited has been creating assets that span diverse verticals comprising Concessions. Strengthening DSC Limited’s presence in this space is the fact that it was among the . and after completion. Operate and Transfer) space and is one of the fastest growing infrastructure developers in India. Concessions Realizing the critical importance of BOT projects in infrastructure development.infrastructure that creates wealth for the nation. With an impeccable track record of successful execution and operation of unique mega BOT projects. Our Mission Efficient. The organization has since then been rechristened as DSC Limited and is built on its mission of ‘Creating Infrawealth’ . DSC Limited. D. DSC Limited has emerged as an active participant in this growth model. railways.S. which facilitates direct private sector investment in large scale infrastructure projects. urban infrastructure and real estate.

The rate of increase is often tied to a combination of internal and external variables. wherein a private entity receives a concession from the private or public sector to finance. During this period the private party has the responsibly to raise the finance for the project and is entitled to retain all revenues generated by the project but is not the owner of the regarded facility. The bank will be expected to finance the project on “non-recourse” basis meaning that it has recourse to the special purpose entity and all its assets for the repayment of the debt. WHAT IS A BOT PROJECT Build-operate-transfer (BOT) is a form of project financing. Some or even all of the following different parties could be involved in any BOT project: The host government: Normally. for example the Public administration. the political and economic circumstances are main factors for this decision. without any remuneration of the private entity involved. delegates to a private sector entity to design and build infrastructure and to operate and maintain these facilities for a certain period. and operate a facility stated in the concession contract. In the BOT framework a third party. In addition. operating and maintenance expenses in the project. such projects provide for the infrastructure to be transferred to the government at the end of the concession period BOT finds extensively application in the infrastructure projects and in Public. the government is the initiator of the infrastructure project and decides if the BOT model is appropriate to meet its needs. (provision of the land/ changed laws) • The concessionaire: The project sponsors who act as concessionaire create a special purpose entity which is capitalised through their financial contributions. The facility will be then transferred to the public administration at the end of the concession agreement. construct.first companies in India to offer a negative grant for a BOT project and among the first private sector companies to undertake a Railway BOT project. The government provides normally support for the project in some form.private partnership. This enables the project proponent to recover its investment. it will subcontract a third party to perform its • . design. allowing the proponent to reach a satisfactory internal rate of return for its investment. Traditionally. Due to the long-term nature of the arrangement. the fees are usually raised during the concession period. • Lending banks: Most BOT project are funded to a big extent by commercial debt. • Other lenders: The special purpose entity might have other lenders such as national or regional development banks • Parties to the project contracts: Because the special purpose entity has only limited workforce.

RISKS INVOLVED:  Political risk: especially in the developing countries because of the possibility of dramatic overnight political change. Additionally. a project is financially viable for the private entity if the revenues generated by the project cover its cost and provide sufficient return on investment. for example unforeseen soil conditions. On the other hand. . the viability of the project for the host government depends on its efficiency in comparison with the economics of financing the project with public funds.obligations under the concession agreement.Therefore the private entity bears a substantial part of the risk.Even the host government could borrow money on better conditions compared to that of the public sector other factors could offset this particular advantage. breakdown of equipment .  Technical risk: construction difficulties. the expertise and efficiency that that the private entity is expected to bring as well as the risk transfer. it has to assure that it has adequate supply contracts in place for the supply of raw materials and other resources necessary for the project BOT Model In general. For example.

6 minor bridges.4 243. of Arunachal Project Pradesh PROJECT NAME- Aurang –Raipur Toll Road Project Objective of Raipur-Aurang Toll Road Project The Raipur Aurang Road will upgrade the Raipur Aurang Section on NH -6 in Chattisgarh from the existing 2-lane road into a 4-lane road. income risk (Cash flow forecasts are overoptimistically) and cost overrun risk Table 7.2 33. Crore) 93 97. Karnataka PWD.4 797 1648.1 Major Projects of DSC Name of Project Client Contract Price (Rs.7 395. combined with the Raipur-Durg Expressway will be the first high speed urban expressway in Chhattisgarh linking Raipur with the surrounding industrial areas like Raigarh.5 km long road project. Financing risk: foreign exchange rate risk and interest rate fluctuation. market risk (change in the price of raw materials) . This 43.5 3500 Completed Projects Viramgam Mehsana Project Ltd Railways Raipur Durg Project MoRT&H In Progress Projects Delhi-Gurgaon Highway NHAI Kundli Manesar Palwal HSIDC Expressway Aurang-Raipur Highway NHAI Lucknow Sitapur Road Project NHAI Sandur Bypass. Chapa. Korba and Sipat. 2 railways over-bridges. Brief Details of the Company (Special Purpose Vehicle-SPV) . Karnataka 1000 MW Naying Hydro-Electric Govt. The project involves construction of 1 major bridge. 1 flyover and 6 underpasses.

One Crore Only) divided into 10. envisages the improvement.(Rs.. 100. Apollo Enterprises .00. Operate and Transfer (BOT) basis. New Delhi (DSC).Name of the Company Date of Incorporation Constitution Sector Registered Office Site Location Authorized Capital : : : : : : : Raipur Expressways Limited (REL) May 06.00 to Km 281.000 equity shares of Rs. 2005 Limited Company.00. New Delhi 110049 Districts: Raipur State: Chhattisgarh Rs. Project Description : rehabilitation and strengthening of the existing 2-lane road and widening it to a 4-lane divided highway from Raipur to Aurang section of National Highway 6 (NH 6) from Km 239. C-66. Constructions Ltd. S. Infrastructure – Roads & Highways.10 each (to be enhanced later to the requisite amount) The proposed project operation.00 in the state of Chhattisgarh on Build. South Extension Part II. maintenance.000/. Executive Summary The consortium of D.

e. REL would hand over the Project Highway to NHAI. operation and maintenance of the aforesaid project. The consortium has incorporated a Special Purpose Vehicle. 180 days from the date of signing the CA). based on the Model Concession Agreement of NHAI. including a construction period of 30 months.00 to Km 281. has already been executed between REL and NHAI on October 13. Kent. construction. On completion of the concession period. inter alia. for undertaking. UK (JLI) and Laing O'Rourke PLC. on Build. The CA provides the Concessionaire the right to collect and retain toll from various users over the entire concession period from the Commercial Operations Date (COD) of the Project Highway. Isle of Man UK (APOLLO). The Concession has been granted to REL for a period of 25 years from the Appointed Date (i. the design. by the name of Raipur Expressways Limited (REL). 2005.Limited. procurement. John Laing International Limited. connecting Kolkata – Surat. in the state of Chhattisgarh (hereinafter referred as “Project Highway”). Operate and Transfer (BOT) basis. .00) of National Highway 6 (NH-6). financing. the Concessionaire. Kent. UK (LOR) has been awarded the Concession by National Highways Authority of India (NHAI) for four laning of Aurang-Raipur section (from Km 239. engineering. Terms and Tenure of Concession The Concession Agreement (CA).

c. in the State of Chhattisgarh. . rehabilitation/strengthening of existing 2-lane road. Operate Upon completion of the Project Highway. REL shall be responsible for the following: a. In return. Transfer To hand over the Project Highway to NHAI upon expiry of the concession period. to manage.Project Description Scope of the Project NHAI has awarded the concession to REL for improvement. it will be given the rights to levy. widening to 4-lane divided carriageway and operations & maintenance of Km 239 to Km 281 (Aurang . Under the BOT framework. b. upgrading and rehabilitation works on the Project Highway. The Project is to be implemented on a BOT basis. demand. Build To provide financing and to undertake the design & construction of the widening. operate & maintain the Project Highway and regulate the use thereof by third parties during the agreed concession period.Raipur Section of NH-6 connecting Kolkata to Surat). a distance of about 42 km. collect and appropriate the Fees from vehicles and persons liable to payment of fees for using the Project Highway or any part thereof and refuse entry of any vehicle to the Project Highway if the due fee is not paid.

Madhya Pradesh and Jharkhand. 2000. The section of NH-6 under consideration carries mixed freight traffic and medium passenger volume.195 sq. The project is expected to gain significant . While Chhattisgarh has 30.7 percent of the total villages are in Chhattisgarh. Chhattisgarh. km. Chhattisgarh state as compared to Madhya Pradesh has a much lower population density of 130 persons to the 158 of Madhya Pradesh. Uttar Pradesh. through which the Project Highway passes. The Aurang-Raipur section also receives traffic from NH-2 and NH-3 as it links business city Surat in west and important city like Kolkata in the east. only 26. Both of these. It is bounded by Andhra Pradesh. It covers 1/4th part of erstwhile Madhya Pradesh with an area of 1. Nagpur and Akola.35. Along with the through traffic. It is located between 17°14' to 24° North longitude and 80° 15' to 84° 24' East latitude. Raipur. came into existence on November 1. was carved out of erstwhile Madhya Pradesh.49 percent of the land area of the undivided Madhya Pradesh.Project Location The State of Chhattisgarh. the project road section also collects the local traffic of Raipur city while it passes through it. a 21st century State. when taken together point to a state with relatively longer distances. NH-6 is an important link between Kolkata and Dhule and also connecting places like Sambalpur. Orissa.

it becomes necessary to develop a 4-lane road and improve the road condition at the earliest in this stretch. Milestones In its infrawealth creation odyssey the company has several accomplishments to its credit. Constructions set up in 1978 as an overseas construction company High quality prestigious projects delivered in North Africa and Middle East Projects executed include roads and highways. Further. Traffic volume has increased many fold compared to the capacity of a two-lane road and frequent accidents have become a common phenomenon in this section.advantage due to the connectivity with Raipur-Durg project and the complementary schedules of the projects.the ViramgamMahesana Project in PPP format Was awarded the prestigious accesscontrolled expressway .S.the DelhiGurgaon Expressway Awarded project for widening of NH-6 between Raipur and Durg • . sewage and water treatment plants and commercial plants • • • Commenced India operations with award of two World Bank funded road projects in UP Was awarded one of Indias first projects in rail sector . significant growth is being experienced on the travel corridors given the rapid development at Chhattisgarh. hospitals. power substations. Some significant milestones are as follows: • • • D. Therefore.

• • • Awarded project for widening and upgradation of the Raipur-Aurang section Concession agreement signed for Sandur Bypass Road Project Awarded road project for widening the Lucknow-Sitapur section • • • Received COD for widening of NH-6 between Raipur and Durg Concession agreement signed for Gwalior-Jhansi Highway Project Awarded Kundli-Manesar-Palwal Expressway Project • • Acquired Hydro Concessions for 4 projects in Arunachal Pradesh Received LOI for Automated Multi-Level Car Parking project at Kasturba Gandhi Marg in Delhi • • • • Completed the Delhi-Gurgaon Expressway Project Received LOIs for Barapullah Elevated Road and UP Link Road projects on cash contract basis Received LOIs for construction of drain and pipeline projects in Delhi & Jodhpur Awarded project for doubling of track for Bilaspur Railway section in Chhattisgarh .• • Received completion certificate for ViramgamMahesana Rail Project Completed road project between Bijnor and Najibabad.

2% LOR 0.8% DSC 94.• • Received COD for Sandur Bypass Road. Phase-II Shareholding Structure of REL APOLLO 4.1% REL Concession . Phase-I Completed Attur-Salem Railway Project Awarded 2 Automated MultiLevel Car Parking projects in Rohini and Nehru Place in Delhi • • Received COD for Sandur Bypass Road.9% JLI 0.

Project Structure The relationships among the Project’s various key parties are set out hereunder: Project Structure .

8% 0.2% 0. of Chhattisgar 4.DSC APOLLO JLI LOR 94.1% State Support Agreement Raipur Expressways Limited (REL) GOI/ NHAI Insurance Policies DSC Independen t Consultant Lenders Insurers .9% State Govt.

5 4.53 1.30 134.94 Mar' 13 Mar' 14 82.02 138.4 69.24 Mar' 11 82.Financing Concession Agreement Agreement s Independent Consultant EPC Contract Contract RAIPUR EXPRESSWAYS LTD Mar' 09 82.41 87.16 87.5 3 3.53 2.6 .40 153.47 Mar' 16 82.01 82.63 Mar' 15 82.5 3 2.5 3 3.9 24.45 89.53 1.05 91.53 2.5 3 2.47 2.78 82.06 86.32 Mar' 17 Mar' 18 Mar' 19 Mar' 20 Equity share capital Capital Reserve General/ Profit Reserves Net Worth 82.5 2.57 85.5 3 2.8 50.37 85.70 -0.09 Mar' 12 82.4 7.5 3 3.8 0.3 0.5 3 2.08 85.16 82.40 Mar' 10 82.53 2.16 108.85 82.8 54.9 1.

3 Mar' 11 39.13 5.70 .91 69.7 3 4.22 58.17 73.48 73.09 79.8 Mar' 15 Mar' 16 Mar' 17 Mar' 18 Mar' 19 Mar' 20 Total Income Total O&M Exp.54 35. PBDIT 50.2 5 31.95 46.6 5 9 3 7 5 0 5 4 0 3 RAIPUR EXPRESSWAYS LTD Mar' 09 17.41 56.06 15.03 62.79 88.74 90.7 Mar' 13 Mar' 14 56.51 97.96 6.8 8 4.1 2 24.00 5.34 32.0 Mar' 10 36.0 8 2.74 40.73 30.32 5.91 67.65 63.98 4.4 7 4.44 6.3 Mar' 12 45.

15 16.35 12.38 45.29 2.76 54.3 6 12.54 12.29 4.44 76.29 17.62 55.0 1 7 12.4 7 RAIPUR EXPRESSWAYS LTD Mar' 09 Mar' 10 Mar' 11 Mar' 12 Mar' 13 Mar' 14 Mar' 15 Mar' 16 Mar' 17 Mar' 18 .10 42.2 9 18.59 5.2 9 18.74 -0.42 45.87 12.29 1.92 3 12.2 9 15.58 11.29 13.29 6.67 10.50 -0.2 9 18.95 30.3 6 3.76 4 12.3 8 12.57 0.6 4 4.97 2.12 -1.57 9 12.9 6 1.41 1.0 8 10.83 1.31 13.32 20.29 9.50 74.2 6 12.23 26.0 8 12.14 0.49 6.09 9.29 11.2 Depreciation Interest PBT Taxes Profit after Tax (PAT) 6.14 43.7 5 3.49 2.88 39.38 0.

00 20.96 1.42 28.88 1.35 12.88 24.76 62.75 1.17 9.42 1.08 35.25 18.00 29.Net cash Accruals Int.36 17.15 12.95 20.76 28.33 18.17 11. on Term Loan Total I Repayment of Term Loan Int.64 1.08 8.50 1. on Term Loan Total II DSCR (Total I/Total II) 1.00 35.96 28.75 18.89 18.43 42.86 15.95 1.00 9.80 .76 1.67 9.64 30.09 9.38 29.00 22.75 45.50 0.53 55.56 13.00 37.95 48.08 1.00 33.88 54.35 34.15 1.05 17.52 18.00 33.00 34.15 40.50 11.00 26.42 57.60 18.29 11.96 2.61 15.37 23.20 17.98 6.13 9.63 9.51 47.64 4.29 18.61 13.74 6.