ROAD DEVELOPMENT IN INDIA 2015 Research report with weekly newsletters and monthly updates Research Report 52 Weekly Newsletters 11 Monthly Updates India Infrastructure Research www.indiainfrastructure.com
SECTION I: SECTOR PERFORMANCE AND OUTLOOK 1. Executive Summary 2. Overview Network Size and Growth Traffic Trends Policy and Regulatory Framework Experience with Implementation of Models (PPP vs EPC) Financing Trends Key Industry Players Growth Drivers Future Outlook and Opportunities Issues and Concerns 3. New Government Policy and Initiatives Key Announcements Recent Policy Initiatives Other Key Developments Likely Impact on the Sector Proposed Plans Industry Perspectives Issues and Challenges Policy Outlook and The Way Forward 4. EPC Opportunity Rationale for EPC Historical Experience Targets vs Awards NHDP Project Pipeline State Highway Project Pipeline Future Outlook 5. Way Forward for PPP Experience So Far PPP and NHDP State Project Pipeline Issues and Challenges Future Outlook 6. Project Performance Comparison Overall Analysis Cost Per Lane-km Time Overruns Cost Overruns Traffic Revenues 7. Developer Performance Comparison Overall Performance of Leading Developers Inter-Developer Comparison Road Segment Revenues Table of Contents 8. Financing Trends and Requirements Financing Sources Terms and Structures Financing Trends Recent Initiatives to Ease Financing Investment Projections Future Opportunities for Financial Investors Key Concerns 9. OMT Experience and Market Outlook The OMT Concept Current Scenario Tolling Methods and Technologies Progress under ETC Implementation Key OMT Players Market Outlook for OMT Contracts Issues and Challenges 10. Equipment/Materials Market Outlook and Projections Equipment Materials Cement Steel Bitumen SECTION II: CENTRAL SECTOR PROGRAMMES 11. Progress under NHDP Project Scope Investment and Financing Strategy Progress in 2014-15 Progress during FY2006-14 Current Bidding Scenario Phase-wise Progress Report Project Pipeline Key Initiatives to Revive Activity Focus on NHIIP Key Issues and Challenges 12. Update on SARDP-NE Project Scope Investment and Financing Strategy Project Update National Highways and Infrastructure Development Corporation Limited Key Issues and Challenges SECTION III: STATE ROAD DEVELOPMENT 13. Interstate Comparison
Network Size Institutional and Policy Framework Current Project Portfolio Project Pipeline The Way Forward 14. Profiles of Key States Andhra Pradesh Bihar Chhattisgarh Gujarat Haryana Himachal Pradesh Jammu & Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra North Eastern Region (Eight States) Odisha Punjab Rajasthan Tamil Nadu Telangana Uttar Pradesh Uttarakhand West Bengal SECTION IV: PROFILES OF LEADING DEVELOPERS 15. Profiles of Leading Developers Ashoka Buildcon Limited Gayatri Projects Limited GMR Infrastructure Limited Hindustan Construction Company Limited IL&FS Transportation Networks Limited IRB Infrastructure Developers Limited Jaypee Infratech Limited KMC Constructions Limited Larsen & Toubro Limited Navayuga Engineering Company Limited NCC Limited Oriental Structural Engineers Limited Reliance Infrastructure Limited Sadbhav Engineering Limited Other Key Players 16. Appendix Monthly Updates The 11 monthly updates will comprise 16-24 pages on: - Summary of Key New Developments - Analysis of Major Monthly Trends - Latest Status of Key Projects (NHDP/Others) - Analysis of Policy and Regulatory Developments - Upcoming Bids, Contracts, Tenders, etc. - Information on New Projects - Key Data and Statistics Weekly Newsletters The weekly newsletter will comprise 4-6 pages. It will cover news developments in the Indian road sector relating to: - Policy - Projects - Developers - NHDP and Other Programmes - Construction Contracts - Loans and Investments - Mergers and Acquisitions - Etc. About Us India Infrastructure Research is a division of India Infrastructure Publishing Private Limited, a company dedicated to providing information on the infrastructure sectors through magazines, conferences, newsletters and research reports. It publishes five magazines Indian Infrastructure, Renewable Watch, Power Line, tele.net and Gujarat Infrastructure. India Infrastructure Research publishes research reports in the areas of power, oil & gas, ports & shipping, roads & bridges, telecommunications, aviation and water. Our reports are acknowledged as high-quality, user-friendly, up-to-date, accurate and comprehensive sources of information. The report is available along with a presentation in PDF format. Release Date: March 3, 2015 Our clients include most organisations involved in the infrastructure sectors multinationals, top Indian corporates, commercial and investment banks, consulting companies, public sector companies, government agencies, multilateral agencies, and legal firms. India Infrastructure Research
LIST OF TABLES Size and Growth of Indian Road Network (km) Road Passenger Traffic Estimates during 2012-17 (billion passenger km) Institutional Set-up in the Roads Sector Key Acts, Policies and Agencies at the State Level Key Projects to be Developed on an EPC basis instead of PPP basis (as of October Financing Experience Major Players in the Roads Sector Details of Projects to be Undertaken by NHIDCL OMT Opportunity in Key States Land Acquired by the NHAI during 2012-13 and 2013-14 Policy Initiatives by Key States in the Past 12 months Key Finance-related Initiatives since May 2014 Key Policy Measures and the Expected Impact on Road Development Key National Highway Projects Stalled due to Land Acquisition Issues Details of EPC Length Awarded under NHDP EPC Targets and Awards (2012-13 to 2014-15) Key NHDP Projects Floated on an EPC basis (as of February 12, 2015) State-wise EPC Opportunity Status of BOT (toll) Projects under NHDP (as on December 31, Status of BOT (annuity) Projects under NHDP (as on December 31, Key Projects Achieving Financial Closures during 2013 and 2014 Details of Delayed PPP Projects under NHDP (as on December 31, Details of State-wise Completed and Under Implementation PPP Projects Details of PPP Projects under NHDP Awarded during 1999-2005 and 2005-14 Planned PPP Investments at the State Level (Rs billion) Key Upcoming PPP Projects at the State-level (as of December Key Issues faced by Private Road Developers and Remedial Measures Undertaken Details of State-wise Completed Road Projects between 2012 and 2014 Analysis of Cost per lane-km of Completed Road Projects during 2012 and 2014 (Rs million) State-wise Analysis of Cost per lane-km of Completed Projects during 2012 and 2014 (Rs million) Analysis of Time Overruns during 2012 and 2014 (no. of projects) State-wise Analysis of Time Overruns during 2012 and 2014 (in months, no. of projects) Analysis of Cost Overruns during 2012 and 2014 (no. of projects) State-wise Analysis of Cost Overruns during 2012 and 2014 Toll Revenues of Key Road Projects Completed in the Last Three Years Financial Performance of Major Players during 2011-12 to 2013-14 (Rs billion) Financial Performance of Road Developers during 2014-15 (April-December) Key Finance-related Initiatives Undertaken by Developers during 2014 Indicative Share of Projects Secured by Key Developers during 2011-12 to 2014-15* (%) No. of Projects Financially Closed since 2011-12 Company-wise details of Projects Completed between 2011-12 to 2014 Budgetary Support to MoRTH (Rs billion) Allocations under the Central Road Fund (Rs billion) Financing National Highways through Toll Collection (Rs billion) Key Projects Funded by IDFC Limited Details of Key Projects Financed by IFIN Key Projects' Finance Deals of L&T Infra Key World Bank-Funded State and Rural Road Projects (as of January 2015) ADB Funding for Key State and Rural Road Improvement Projects (as of January 2015) List of Tables and Figures Key CDR Cases Reported in 2014 Key Project Equity Deals Announced since January 2013 Details of Projects Involving Premium Rescheduling Financial Closure of Major Projects since October 2013 List of Key QIP Issuances in 2013 and 2014 (till October) Key PE Exits Announced during 2013 and 2014 Key National Highway Projects Yet to Achieve Financial Closure Opportunity at the State-level Year-wise OMT Contracts Awarded Operations-Maintenance-Transfer Contracts Awarded by NHAI Operations-Maintenance-Transfer Projects Awarded by MPRDC (as of August Key Tolling Projects Awarded by MSRDC OMT Projects for which Bids were Invited during 2014-15 (as of October Comparison of Manual and Automated Tolling Techniques Comparison of ETC Technologies Representative Assignments of Feedback Brisa Highways (OMT) Private Limited Project Portfolio of EGIS Road Operation India Project Portfolio of Prakash Asphalting & Toll Highways Limited Key Operation and Maintenance Projects of Elsamex Key OMT Projects of MEP Infrastructure Developers Limited Tentative List of Operations-Maintenance-Transfer Projects to be Awarded by the NHAI OMT Contracts Currently Under Bidding (as of February 2015) Operations-Maintenance-Transfer Projects Identified by MPRDC Operations-Maintenance-Tolling Contracts Identified by KRDCL Production and Sales of Construction Equipment in India (units) Equipment-wise Sales in India (units) Scope of NHDP.................................... 159 Year-wise NHDP Financing Details (Rs billion) Funds Sanctioned by Multilateral Agencies (as of December BOT Projects under NHDP (as of December Projects Awarded under NHDP during 2014-15 (as of December Bidding Scenario for PPP Projects under NHDP Decline in No. of Bids for PPP Projects under the NHDP Road Stretches under Road Improvement and Maintenance Component (as of May National Highways Projects Stalled due to Land Acquisition Issues (as of August Delays Recorded due to Pre-construction Issues (no. of projects) Key Projects Delayed Due to Difficulty in Environmental/Forest Clearances (as of December Phase-wise Details of SARDP-NE (as of October Financial Allocations under SARDP-NE (Rs billion) Sanction of Funds under SARDP-NE during 2011-12 to 2014-15* (Rs billion) Details of Projects Sanctioned under SARDP-NE (2006-07 to 2014-15) Year-wise Length Completed under SARDP-NE (km) Progress of Phase A and Arunachal Pradesh Package under SARDP-NE (as of July Details of Projects to be Undertaken by NHIDCL Key Indicators for Interstate Comparison Institutional Framework at the State-level Details of Completed and Ongoing Projects at the State-Level Details of Completed and Ongoing Projects by Investment Type Loans Extended by the World Bank and ADB to Indian States ($ million) State-wise Details of Pipeline Projects Loans Expected from Multilateral Agencies during 2015 Key Acts/Policies in Andhra Pradesh Completed PPP Projects in Andhra Pradesh PPP Projects under Implementation in Andhra Pradesh Upcoming Government-funded Projects in Andhra Pradesh PPP Projects in the Pipeline in Andhra Pradesh Key Road Development Agencies in Bihar Road Stretches under Bihar State Highways Project I Road Stretches under Bihar State Highways Project II Road Stretches under Bihar State Highways Project II (Additional Financing) Details of Works under Bihar State Highways Development Programme Private Investment in Bihar PPP Projects Under Implementation in Bihar Fund Allocation for Road Development in Bihar during 2014-15 to 2016-17 (Rs billion) PPP Projects in the Pipeline in Bihar Key Road Development Agencies in Chhattisgarh Stretches under the Chhattisgarh Accelerated Road Development Programme Road Projects in the Pipeline in Chhattisgarh Key Road Development Agencies in Gujarat Key PPP-related Policies in Gujarat Government-funded Road Projects in Gujarat (as of October Details of Project Stretches under Gujarat State Highways Project II (as of October Key Completed PPP Road Projects in Gujarat Key PPP Road Projects Under Implementation in Gujarat Upcoming PPP Projects in Gujarat Road Sector Investment Requirements Identified under Vision 2020 Document in Gujarat (Rs billion) Completed PPP Projects in Haryana PPP Projects Under Implementation in Haryana PPP Project Pipeline in Haryana Pipeline of Government-Funded projects in Haryana Upcoming Bridge Projects in Haryana Road Works Undertaken in 2013-14 through Budgetary Resources in Himachal Pradesh Number of Bridges Constructed in Himachal Pradesh during 2001-14 Contracts Awarded Under the Himachal Pradesh State Roads Project (as of December Upcoming PPP Projects in Himachal Pradesh Key Road Development Agencies in Jammu & Kashmir Status of Special Bridges Programme in Jammu and Kashmir Ongoing PPP Project in Jammu and Kashmir Upcoming Projects in Jammu and Kashmir Key Road Development Agencies in Jharkhand Details of Road Works under the Jharkhand State Roads Project (as of December Completed PPP Projects in Jharkhand Under Implementation PPP Project in Jharkhand EPC Road Projects being implemented by SHAJ in Jharkhand Announced PPP Project in Jharkhand Key Road Development Agencies in Karnataka Completed Road Projects in Karnataka Details of Road Works under KSHIP I in Karnataka Key Components of Stage I of KSHIP II in Karnataka Key Components of Stage II and Status of KSHIP II in Karnataka Completed PPP Road Projects in Karnataka Ongoing PPP Projects in Karnataka Upcoming Government-funded Projects in Karnataka Upcoming PPP Road Projects in Karnataka Projects to be awarded on OMT basis by KRDCL in Karnataka Key Road Development Agencies in Kerala Projects under Kerala State Transport Project II Progress of Projects under Kerala State Transport Project II Ongoing Projects of Roads and Bridges Development Corporation of Kerala Limited Kerala's Plan Outlay for the Roads Sector under State Budget 2014-15 Projects Approved by the Kerala Government under Central Road Fund Funding Completed PPP Projects in Kerala Details of Rehabilitation and Upgradation Works under Kerala State Road Improvement Project PPP Projects in the Pipeline in Kerala Key Road Development Agencies in Madhya Pradesh Projects Completed through Regular Contracts in Madhya Pradesh Ongoing Regular Contract Projects in Madhya Pradesh Details of ADB-funded Projects in Madhya Pradesh Projects under Madhya Pradesh State Roads Project III (as of March Private Investment in Madhya Pradesh Completed PPP Projects in Madhya Pradesh Under Implementation PPP Projects in Madhya Pradesh Ongoing OMT Projects in Madhya Pradesh (as of August Key Civil Work Contracts to be Implemented under MPDCSP
PPP Projects in Pipeline in Madhya Pradesh OMT Projects Identified by MPRDC Key Road Development Agencies in Maharashtra Key Projects Completed by MSRDC (as of August Key Ongoing Projects of MSRDC (as of August Progress of the Nagpur-Aurangabad-Sinnar-Ghoti Road Project (as of August Private Investment in Maharashtra Completed PPP Projects in Maharashtra PPP Projects Under Implementation in Maharashtra Projects Recently Approved by the MMRDA PPP Projects in the Pipeline in Maharashtra Details of State Demographic and Road Network in North Eastern Region Key Road Development Agencies in North Eastern Region State-wise Accruals and Releases under CRF (Rs billion) Financial Details of the North Eastern State Roads Investment Programme (Rs million) NHIDCL's Upcoming Projects in Eight NER States (as of January 2015) PPP Projects in the Pipeline in Assam Key Road Development Agencies in Odisha Details of Projects under Odisha State Roads Project Key Contracts Awarded under Odisha State Roads Project during 2013-14 Private Investment in Odisha Details of Road Works under Odisha State Highway Development Programme Other Upcoming Road Projects in Odisha PPP Projects in the Pipeline in Odisha Key Road Implementing Agencies in Punjab Funds Accrued and Released under CRF in Punjab (Rs billion) Stretches under Phase II of Punjab State Road Sector Programme Key Ongoing Road Projects in Punjab Private Investment in Punjab Completed PPP Projects in Punjab PPP Projects under Implementation in Punjab PPP Projects in the Pipeline in Punjab Key Road Development Agencies in Rajasthan Road Works under SRF in Rajasthan for 2013-14 (Rs billion) Year-wise Expenditure under SRF in Rajasthan (Rs billion) Progress of Works under SRF in Rajasthan (as of May 2013) Progress of Works under Inter-State Road Scheme in Rajasthan (as of May 2013) Progress of Works under Thirteenth Finance Commission Scheme in Rajasthan (as of May 2013) Private Investment in Rajasthan Completed PPP Projects in Rajasthan PPP Projects under Implementation in Rajasthan Twelfth Plan Outlay for Road Works in Rajasthan (Rs billion) PPP Projects in the Pipeline in Rajasthan Key Road Development Agencies in Tamil Nadu Details of Works under Comprehensive Road Infrastructure Development Programme in Tamil Nadu Private Investment in Tamil Nadu Completed PPP Projects in Tamil Nadu Ongoing PPP Project in Tamil Nadu Details of TNRSP II as of July 2014 (Rs billion) Priority Road Stretches Identified for Upgradation under TNRSP II Details of State Road Projects Envisaged under Vision 2023 (Phase II) List of Road Works Approved under the CRF Scheme for 2014-15 Key Road Development Agencies in Uttar Pradesh Corridor-wise Details of Agra-Lucknow Expressway Project Completed PPP Projects in Uttar Pradesh PPP Projects under Implementation in Uttar Pradesh Core Road Network Identified by Uttar Pradesh PWD Road Stretches Identified under Phase I of the UPCRNDP PPP Projects in the Tendering Stage in Uttar Pradesh Road Projects Identified by UPSHA (as of October Role of State Agencies in the Roads Sector in Uttarakhand Details of Work under the World Bank-funded Uttarakhand Disaster Recovery Project Key Road Restoration Works in Various Districts of Uttarakhand under UEAP (as of December List of Tables and Figures PPP Projects in the Pipeline in Uttarakhand Key Road Development Agencies in West Bengal Projects Being Implemented by WBHDCL (as of January 2015) Funds Accrued and Released under CRF in West Bengal (Rs million) Ongoing PPP Projects in West Bengal Key Parameters of Major Players in the Roads Sector ABL's Key Project Portfolio in India Consolidated Financials of ABL (Rs billion) Consolidated Profit from EPC and BOT for 2013-14 and 2014-15 (Rs billion) Gross Toll Revenue of ABL and Ashoka Concessions (Rs billion) Subsidiaries of GPL GPL's Key Road Projects Portfolio Financials of GPL (Rs billion) (standalone) GMR Infrastructure Limited's Key Project Portfolio in India Financials of GIL (Rs billion) (consolidated) Financial Performance of GMR Infrastructure Limited's SPVs Key Projects of HCC Standalone Financials of HCC (Rs billion) ITNL's Portfolio of Key Projects in India (as of December Financials of ITNL (Rs billion) (consolidated) Revenue Earned by ITNL's SPVs (Rs billion) IRB's Key Project Portfolio in India Financials of IRB (Rs billion) (consolidated) Toll Revenue Earned by IRB on Operational Projects (Rs billion) Jaypee Infratech Limited's Project Portfolio Financials of Jaypee Infratech Limited (Rs billion) (consolidated) KMC's Key BOT Projects Portfolio L&T IDPL's Portfolio of Key BOT Projects in India (as of December Consolidated Financials of L&T (Rs billion) Financials of L&T's SPVs for 2013-14 (Rs billion) Key BOT Projects of NECL Financial Performance of Navayuga Engineering Company Limited (Rs billion) Key Road Projects of NCC Limited Consolidated Financials of NCC (Rs billion) OSEL's BOT Project Portfolio in India Consolidated Financials of OSEL (Rs billion) RInfra's Key Project Portfolio in India Financials of RInfra (Rs billion) (consolidated) Sadbhav Engineering Limited's Portfolio of Key BOT Project in India Consolidated Financials of Sadbhav Engineering Limited (Rs billion) Toll Collection by Sadbhav Engineering Limited's Project SPVs (Rs million) Details of Key BOT Projects of DSC Limited Key Projects of Gammon Infrastructure Projects Limited Key Projects of GVK Power and Infrastructure Limited Key Road Projects of IVRCL Limited Key Projects of GVR Infra Projects Limited LIST OF FIGURES Road Densities of Key Developed and Developing Countries (km per 100 square km) Growth in Road Freight during 2009-10 to 2013-14 Policies for Different Stages of PPP Project Development Evolution of PPP and MCA Key Features of PPP and EPC Contracts Length Awarded on EPC and BOT Formats under the NHDP during 2005-15 (km) Financial Closures during 2013 and 2014 Growth Drivers of the Roads Sector Rationale for EPC Advantages of EPC Contracts Share of EPC and PPP length under NHDP (as of December Evolution of Policy and Legal Framework in the Road Sector Details of BOT Projects Awarded by the NHAI (as of December Award Targets and Achievements under NHDP during 2012-13 to 2014-15 Details of Year-wise Completed Road Projects Details of Ownership-wise Completed Road Projects between 2012 and 2014 Details of Format-wise Completed Road Projects between 2012 and 2014 Details of Completed Road Projects with regard to Type between 2012 and 2014 Details of Completed Projects with regard to Scope of Work between 2012 and 2014 Growth in Toll Revenues of Key Road Developers (Rs billion) Borrowings by NHAI through Capital Gain Tax Exemption Bonds (Rs billion) Gross Bank Deployment to the Road Sector IIFCL's Cumulative Disbursements to the Roads Sector (Rs billion) Projected Investment in Roads and Bridges in the Twelfth Plan (Rs billion) Phase-wise Investment Required under NHDP (as on November 30, Evolution of the OMT Concept in India OMT at the State-level (as of October ETC Architecture in the Indian Context Progress Recorded under ETC Implementation OMT Opportunity in the National Highway Segment Market Size and Growth of Indian Construction Equipment Industry (Rs billion) India's Export and Import of Earthmoving, Construction and Mining Equipment (no.) Trends in Cement Production (mt) Trend in Consumption of Cement (mt) Cumulative Installed Capacity of Cement Industry (mtpa) Trend in Capacity Utilisation of Cement Industry (per cent) India's Cement Exports and Imports from 2009-10 to 2014-15 ('000 tonnes) Trend in Finished Steel Production (mt) Trend in Steel Consumption (mt) Installed Capacity and Capacity Additions in Steel Production Capacity Utilisation of Steel Industry (%) India's Net Imports of Steel (mt) Trend in India's Steel Exports (mt) Movement in Wholesale Price Index of Steel (2004-05=100) Trend in Bitumen Production from 2009-10 to 2013-14 (mt) Trend in Bitumen Consumption from 2009-10 to 2013-14 (mt) Trend in Import and Export of Bitumen (mt) Movement in Wholesale Price Index of Bitumen (2004-05=Base Year) Mobilisation of Cess Funds by NHAI (Rs billion) Progress under the NHDP during 2014-15 (as of December 31, Project Award Progress under NHDP Completion Progress Recorded under NHDP (FY2006-14) Phase-wise Length Awarded and Completed under NHDP (as of October Balance Length for Award under NHDP (km) (as of December 31, Financing Structure of NHIIP State-wise Length to be Developed under SARDP-NE (km) State-wise Road Length Distribution under Phase A of SARDP- NE (km) State-wise Road Length Distribution under Phase B of SARDP- NE (km) Private Investment in Andhra Pradesh Bridge Works Completed by Bihar State Bridge Construction Corporation Private Investment in Gujarat Private Investment in Haryana Private Investment in Jharkhand Private Investment in Karnataka Trends in Total Expenditure on Development of Roads and Bridges in Kerala (Rs billion) Private Investment in Kerala CRIDP Budget Provisions (Rs billion) Non-plan Maintenance Allocation during 2011-12 and 2014-15 (Rs billion) Private Investment in Uttar Pradesh Financing Plan of the Uttarakhand State Road Investment Programme Private Investment in Uttarakhand
I would like to purchase Road Development in India 2015 Annual Subscription Package: Report Price Service tax (15%) Total Format (PDF) Rs 1,00,000 Rs 15,000 Rs 1,15,000 I am enclosing a cheque/demand draft for Rs, vide cheque/demand draft no. drawn on dated in favour of India Infrastructure Publishing Pvt. Ltd. Signature Name (BLOCK LETTERS) Designation Company Mailing Address Telephone Mobile Fax E-mail Wire transfer details: Beneficiary : India Infrastructure Publishing Pvt. Ltd. Contact details: Bank Name : The Hongkong and Shanghai Banking Corporation Ltd Bank Address : R-47, Greater Kailash 1, New Delhi - 110048 Account No. : 094179587002 Swift Code : HSBCINBB IFSC Code : HSBC0110006 Raktima Majumdar Manager-Information Products India Infrastructure Publishing Pvt. Ltd. B-17, Qutab Institutional Area. New Delhi - 110 016. India Tel: +91 11 46078365, 41034600, 41034601 Mobile: +91 8826127521 Fax: +91 11 2653 1196 majumdar.raktima@indiainfrastructure.com ROAD DEVELOPMENT IN INDIA 2015 India Infrastructure Research www.indiainfrastructure.com