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Second largest roadnetwork

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

Rising investments inroad sector

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

Growing private sectorinvolvement

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

Rapid growth in national

highways

National highways are expected to reach 85,000 kilometres by the end of the 12 th Five

Year Plan from 71,772 kilometres currently

Source: Planning Commission, Aranca Research

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The engineering sector is delicensed;100 per cent FDI is allowed in thesector

Due to policy support, there wascumulative FDI of USD14.0 billion intothe sector over April 2000 February2012, making up 8.6 per cent of totalFDI into the country in that period

Growing demand

Source: NHAI, MoRTH, Planning Commission, Business Monitor International, Aranca Research

Notes: NHAI - National Highways Authority of India, MoRTH - Ministry of Road Transport and Highways

Robust demand

Greater connectivity betweendifferent cities, towns and villageshas led to increased road trafficover the years

Growth in automobiles and freight

movement commands a betterroad network in India

Attractive opportunities

Roads and bridgeinfrastructure industry to beworth USD21 billion by FY17

Approximately 9,500

kilometres of projects areexpected to be awarded byNHAI during 201213

Policy support

Road infrastructure is a keygovernment priority; the sector has

received strong budgetary supportover the years

Financial institutions have receivedgovernment approval to raise moneythrough tax-free bonds

Increasing investments

USD1 trillion worth of expenditure oninfrastructure is estimated over

FY1317

Government of India aims to developa total of 66,117 kilometres of roads

Growing participation of privatesector through Public-PrivatePartnership (PPP)

2009

Roads &bridges

infrastructurevalue:

USD6.9

billion

FY17E

Roads &bridges

infrastructurevalue:

USD19.2

billion

AdvantageIndia

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

Roads

(Total length: 4.7 millionKms)

State Highways National Highways District and RuralRoads

Total Length: 155,716

kilometres

Share: 3.3 per cent of

the total roads in India

Total Length: 79,116

kilometres



Total Length: 44,55,010

kilometres



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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 nationalhighways (kilometres)

Passenger vehicle sales(Million)

NHDP toll collection(USD million)

Highway projects

awarded (kilometres) byNHAI

Share of infrastructure intotal bank funding (%)

2.3

677

64.5

0.71

58,112

14.4

6,491

435*

3.1

71,772

FY03

FY12

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

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Roads/ bridges infrastructure value in India(USD billion)

The value of total roads and bridges infrastructure in India isexpected to grow at a CAGR of 17.4 per cent over FY12-17to reach USD19 billion

Currently, the Government of India aims to develop a totalof 66,117 kilometres of roads under various programmessuch 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 becompleted by the end of the 12th Five Year Plan

Source: Business Monitor International (BMI), Aranca ResearchNote: 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 NorthEastern Region and LWE - Left Wing Extremism Programme

6.96.8 8.3

8.6 8.6

11.0

13.4

16.1

19.2

FY09 FY10 FY11 FY12F FY13F FY14F FY15F FY16F FY17F

CAGR: 13.6%

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Lane composition of national highways (FY13)National highways account for 1.7 per cent of the total roadnetwork in India

Under the 12th Five Year Plan (FY1317), the governmentplans to develop 20 kilometres of national highways perday, which implies a total development of 7,300 kilometresper year

Double-lane highways constitute the largest share ofhighways in India (40,658 kilometres)

Double-lane highways are followed by single-lane (19,330kilometres) and multi-lane (19,128 kilometres) highways

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

currentlySource: MoRTH, Aranca Research

24.4%

51.4%

24.2%Single lane

Double lane

Four/ Six/ EightLane

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The National Highway Authority of India (NHAI) is a government agency responsible for construction, maintenance anddevelopment 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

Porbandar

Mumbai

Kanyakumari

Chennai

Kolkata

Silchar

Delhi

SrinagarNorth SouthEast WestCorridor

Golden Quadrilateral

NHAI

Golden Quadrilateral (GQ): It is the highwaynetwork that connects four major

metropolises

North South & East West Corridor (NSEW NHDP Phase I and II): It connects the

countrys extreme ends

NHDP Phase III to VII: Construction andimprovement of roads in the remaining

urban and suburban regions

Source:NHAI, Aranca Research

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NHDP Phase Project descriptionTotal length

(Kms)Cost Development Model

Phase IDevelopment of Golden Quadrilateral, NorthSouth & East West (NS-EW) corridor, port

connectivity and other national highway7,522 USD7.0 billion

EPC (Engineering-Procurement and

Construction)

Phase IIDevelopment of North South & East West

(NS-EW) corridor and other national highway6,647 USD7.2 billion EPC

Phase III Development of Four lane national highways 12,109 USD18.5 billionPPP (Build-Operate-

Transfer)

Phase IV Upgradation of single lane to two-lane 20,000 - PPP

Source: NHAI, Aranca Research

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NHDP Phase Project descriptionTotal length

(Kms)Cost Development Model

Phase VUpgradation of four-lane highways to

six-lane and port connectivity6,500 USD9.3 billion PPP

Phase VI Development of Expressway 1,000 USD3.8 billion PPP-(Design-Build-Finance-Operate)

Phase VIIDevelopment of ring roads, bypasses and

flyovers700 USD4.2 billion

PPP (Build-Operate-Transfer)


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The Special Accelerated Road Development Programme for the North Eastern region (SARDP-NE) is aimed at developingroad 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 double-laning/improving about 5343 kilometres of state roads

Implementation of the road development programme will facilitate connectivity of 88 district headquarters in North Easternstates to the nearest national highways

The project will be undertaken in three phases:

Phase Project descriptionTotal length

(Kms)Date of

Completion

AImprovement of national highways 2,041

March 2015Improvement of state roads 2,058

BDevelopment of double-lane of national highways 1,285

Not Disclosed

Double-laning and improvement of state roads 2,438

Arunachal Pradesh packageof roads and highways

Development of roads 2,319 March 2017

Source: NHAI, MoRTH, PPPinIndia, Aranca Research

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Total length (Kms) Total cost (USD billion)

Approved 5,477 USD1.6

Awarded 5,049 USD1.5

Completed (By December 2012) 1,960 USD0.5

The government has approved a Road Requirement Plan (RRP) for the development of 1126 kilometres of national highwaysand 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 byFY15

Source: NHAI, MoRTH, PPPinIndia, Aranca Research

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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 from10 per cent in FY05

Total PPP projects in India (2011) Composition of total highway projects awarded

53%

47%

Roads

Others

8% 13% 15% 19% 22%23%

9% 12% 12% 20%20%

27%

4% 7% 9% 9% 17%

53%

FY05 FY06 FY07 FY08 FY09 FY10

BOT SPV Public Funded

Source: MoRTH, Aranca Research

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Awards won by BOT private playersRoad construction projects awarded to BOT companieswent up at a CAGR of 62 per cent over FY05-12 to about6,067 kilometres

In FY12, highway projects awarded to private companiesrose to 6,067 kilometres

209 369 464 470

877

2,677

6,144 6,067

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

CAGR: 61.8%


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Source:Aranca Research

Notes: NH National Highway

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 andcompetitive; the players bidding for projects also vary by size

Major privatesector players

Major projects: MumbaiPune BOT Project, PuneNashik BOTProject, BharuchSurat BOT Project, ThaneBhiwandi by-pass

Four-Lane Project

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

Major projects: NH6 Dhankuni to Kharagpur, Sambalpur Baragarh,NH4 Belgaum Dharwad

Major projects: BandraWorli Sea Link, Badarpur ElevatedHighway Project

Major projects: TuniAnkapalli Highway, TambaramTindivanamHighway, AmbalaChandigarh Highway

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Source: NHAI, MoRTH, Aranca ResearchNotes: FDI - Foreign Direct Investment

Increasing privatesector participation

Government policy to increase private sector participation has proved to be a boon to theinfrastructure industry with a large number of private players entering the business throughthe Public Private Partnership (PPP) model

The type of PPP models used in road projects are Build Operate Transfer (BOT ) toll andBOT annuity

Partnerships betweenIndian 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 sectorsgrowth story

Indias renewed focus

on infrastructure

Infrastructure is the key to supporting double-digit GDP growth in India during the medium-to long-term

The government has hence made infrastructure development a key policy issue and plansto 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 21,378kilometres 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 of12th Five Year Plan

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Source:Aranca Research

Policy support

Greater governmentfocus on

infrastructure

Standardisedprocesses for

bidding and tolling;clear policyframework

Tax sops, FDI, FIIencouragement

Rise in two-wheelerand four-wheeler

vehicles

Increasing investments

NHAI implementingone of the largest

road projects

Rising private sectorparticipation

Strong projecteddemand makingreturns attractive

Inviting Resulting in

Increasing freighttraffic

Strong trade andtourist flows

between states

Growing demand

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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 15.4per cent to 90 per cent in passenger traffic from 1951 to 2011

Higher roadtraffic

Rising incomesleading to

increasing numberof vehicle owners

Growing movementof goods within the

country due toeconomicintegration

Better quality roadsmakes road travelcheaper and safer

Increasingroadways leading togreater accessibilitybetween different

cities/towns/villages

Growth in small andmedium enterprises

in India

Source: MoRTH, World Bank, Aranca Research

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Trends in passenger vehicle sales (in million)

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 commercial vehicle sales (in 000)

Source: SIAM, Aranca Research

1.31.6

1.8

2.4

3.0 3.13.2

3.5


CAGR: 15.0%

351

468494 533

676

800783

852


CAGR: 13.5%

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

Road addition in the 3rd Five Year Plan was only 179kilometres this increased to 10,228 kilometres in the 11 thPlan

The 12th Five Year Plan (FY13-17) is estimated to carry themomentum forward with projects to the tune of 36,500kilometres

- 1,514 179

4,819

158

2,867

1,902 609

23,814

9,008 10,228

36,500

1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th*

Source: NHAI, MoRTH, Aranca ResearchNote: * - Estimated

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Share of infrastructure in total bank fundingInfrastructure is a priority of the governments economicpolicy; funding for the sector from both private and publicsectors is set to increase sharply in the near term

Infrastructures total share in bank funding rose from 2.3 percent in 2002 to about 14.4 per cent in 2012

2.3%

3.5%

4.2%

6.9%

7.5%

7.3%

8.5%9.5%

11.5%

14.0%14.4%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*

Source: RBI, ICRA Limited, Aranca ResearchNote: 2012* - March 2012

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Combined fiscal deficit of the centre and stategovernments (% of GDP)

The government has been eager to involve private sectorfunding for infrastructure projects and thereby reducestrains on the budget

The PPP model has emerged as the favoured one forprivate sector participation in roads projects

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

9.9% 9.6%

8.5%

7.2%

6.5%

5.4%

4.1%

8.5%

9.5%

7.3%

8.2%

7.1%

FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12E F Y13E

Source: RBI, Morgan Stanley, Aranca ResearchE - Estimate

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% of BOT share in different phases of NHDPPhase I and Phase II of NHDP were mostly developed bypublic funds with the BOT share at 14.8 per cent and 28.6per cent respectively

Public Private Partnership (PPP) model will be the favouredway of executing the remaining NHDP phases

14.8%

29.6%

95.9%

83.1%

100.0%

100.0%

100.0%

Phase I

Phase II

Phase III

Phase IV

Phase V

Phase VI

Phase VII

Source: NHAI, MoRTH, Aranca ResearchNote: NHDP - National Highway Development Phase,

BOT - Build Operate Transfer

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Source:Aranca Research,Notes: FDI - Foreign Direct Investment, FII - Foreign Institutional Investors

Infrastructure is a keygovernment priority

Infrastructure investment is a major focus area for the government The Government targeted USD500 billion worth of spending on infrastructure in the 11 th

Five-Year Plan (FY08-12); the amount is set to double to USD1 trillion in the 12th FiveYear Plan (FY13-17)

Support from the Union

Budget

The FII investment limit in infrastructure corporate bonds was raised from USD5 billion toUSD25 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 addressfinancial issues, construction risk and contract management in the road sector

Rural development

The Prime Ministers Gram Sadak Yojana (PMGSY) is a scheme for development of ruralroads in India

The Construction of Rural Roads Project (CRRP) is another initiative focused on ruraldevelopment

Taxes and other sops

Companies enjoy 100 per cent tax exemption in road projects for five years and 30 percent relief for the next five years

The companies are also granted a capital of up to 40 per cent of the total project cost toenhance viability

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Issue of tax-freeinfrastructure bonds

Infrastructure finance companies, such as India Infrastructure Finance Corporation(IIFCL), National Highways Authority of India (NHAI), Housing and Urban DevelopmentCorp (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 forFY14

Institutions were allowed to raise tax-free bonds of about USD5.5 billion in FY12 and up toUSD4.6 billion in FY13

Encouragement ofInfrastructure Debt

Funds (IDFs)

The Government of India has set up the India Infrastructure Finance Company (IIFCL) toprovide long-term funding for infrastructure projects

Interest payments on borrowings for infrastructure are now subject to a lower withholdingtax 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 thedevelopment of state roads

For FY13, USD3.6 billion was allocated for the development of roads

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For updated information, please visit www.ibef.org

ProjectLength

(kilometre)Cost (USD

million)Company

Four Laning of Coimbatore-Mettupalayam 67 123 Transstroy - OJSC Consortium

Four Laning of Walayar -Vadakkancherry section 54 142 KNR Constructions Ltd

Walajapet-Poonamalee 93 268 ESSEL Infra Projects Ltd

2-Laning with paved shoulder of Raebareli to Jaunpur 166 118 PNC Infratech Ltd

Six- Laning of Anandapuram-Visakapatnam-Anakapalli 58 174 Transstroy (India) Ltd - OJSC Corporation

Six-Laning of Gundugolanu Rajamundry 120 336 IVRCL Assests & Holding Limited

Vijayawada-Gundugolanu Section 103.6 351 Gammon Infrastructure Proj

Six Laning of Kishangarh Udaipur Ahmedabad 556 1,122 GMR Infrastructure Ltd

Etawah -Chakeri (Kanpur) 160 328 Oriental Structural Engineers Ltd

Agra-Etawah Bypass 125 251 Ramky Infrastructure Ltd

Four Laning of Kiratpur-Ner Chowk Section 84 400 IL & FS Transportation Networks Ltd

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

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For updated information, please visit www.ibef.org

Outlay for roads under respective Union Budgets(USD billion)

Roadways has been a key focus area of budget allocationsover the years

For FY14, the Planning Commission has provided an outlayof USD6.9 billion for the road sector

The budget outlay for road transport and highwaysincreased at a robust CAGR of 19.4 per cent between FY09

and FY14

In FY14, the government plans to improve about 8,270kilometers of the National Highways along withconstruction/rehabilitation of 100 bridges and four bypassesfor an estimated cost of USD4.3 billion

2.8

3.53.2

5.66.4

6.9


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

CAGR: 19.8%

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Toll revenue: IRB Infrastructure Limited(USD million)

IRB Infrastructure is one of Indias leading BOT operatorswith 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 threeare complete, nine operational, and seven under

construction

As on 31 December 2012, IRB Infrastructures orderbacklog stood at about USD1.7 billion

Source: Company Annual Report, Aranca ResearchNotes: CAGR - Compounded Annual Growth Rate,

BOT - Build Operate Transfer

77

96

176

201

256

FY08 FY09 FY10 FY11 FY12

CAGR: 35.0%

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Won three roadprojects worthUSD411 million

Won first ultra-megaNHAI road projectworth USD750 million

Acquired MVRInfrastructure &Tollways Pvt Ltd2010

2011

2012

2013

Signed contract with

NHAI for four-laningof NH-17 from Goa/Karnataka toKundapur

Source: Company Annual Report, Aranca Research

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Revenue trends: IL&FS TransportationNetworks Limited (USD million)

ITNL has the largest BOT road asset portfolio (in terms oflane kilometres) in India, with presence in 16 states

The company has 11,859 lane kilometres under its roadasset portfolio; this comprises 28 projects

ITNL has 24 PPP projects currently, of which 11 arecomplete and 13 under construction

Source: Company Annual Report, Aranca ResearchNotes: CAGR - Compounded Annual Growth Rate,

BOT - Build Operate Transfer, Km - Kilometers

255

502

843

1,168

FY09 FY10 FY11 FY12

CAGR: 66.1%

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Was awardedorder for 1,086 lanekilometres for a

total value ofUSD1.5 billion

Was awarded orderfor 1,129 lanekilometres for a totalvalue of USD1.5billion

Four-laning of Beawer-Gomti Road Project

2010

2011

2012

2013

Won USD312 millioncontract for six-laningBarwa-Adda-Panagarh sector ofNational Highway 2


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Revenue trends: Noida Toll Bridge(USD million)

Infrastructure Leasing and Financial Services Ltd (IL&FS)promoted National Toll Bridge Company Limited (NTBCL)as a special purpose vehicle (SPV) for the development ofthe 22-km Delhi-Noida Direct (DND) flyway on a Build OwnOperate Transfer (BOOT) basis

Incorporated in Uttar Pradesh, India in 1996, NTBCL is apublicly listed company and operates only in India


SALIENT FEATURES

Eight-lane dual carriageway connecting Noida and Delhi

One major and three minor bridges over Yamuna river

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

10.4

16.617.2

17.918.9

19.9


CAGR: 13.9%

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Projects to be awarded (in kilometres)

National Highway Authority of India (NHAI) aims to award 2500 kilometres of projects in FY14 vis--vis 787 kilometresduring the last fiscal

Currently, around 23,120 kilometres of NHDP projects are in the pipeline, with the highest share for NHDP IV (16,632kilometres)

Projects to be awarded (in kilometres) by NHDP phases

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

6,491

787

2,500

3,899

FY12 FY13E FY14E FY15E

4201,840

16,682

2,519

1,000 659

NS - EWPh. I & II

NHDP III NHDP IV NHDP V NHDP VI NHDP VII

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PPP opportunity over the next five yearsDevelopment of national highways through Public-PrivatePartnership (PPP) is expected to remain the key focus areafor the government

During the next five years, investments through PPP areexpected to be over USD41 billion for national highwaysand around USD10 billion for state highways

Source: NHAI, MoRTH, Aranca Research

USD 41.2billion

USD 9.9billion

National Highways State Highways

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Projected growth of vehiclesIn India, roads remain the most important means oftransport; it accounts for 85 per cent of passenger traffic and65 per cent of freight traffic

Passenger cars are expected to grow at a CAGR of 15 percent to 677 millions in FY15 and LCV to grow at a CAGR of21 per cent over FY10-15 to 3 million in FY15

Source: SIAM Report, Aranca Research

Notes: PC - Passenger Cars, LCV - Light CommercialVehicles, SIAM - Society of Indian Automobile Manufacturers

0

150

300

450

600

750

1

1.5

2

2.5

3

3.5

FY10 FY11E FY12E FY13E FY14E FY15E

LCV units in 000s (right axis) PC units mill ions (left axis)

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Summary of foreign contract awardsForeign contractors were awarded projects worth aboutUSD1.69 billion during 1999-2011; Malaysian and Russian*contractors have topped the foreign contractors list

About 55 per cent of all such contracts were funded viaBOT, BOT-Annuity and BOT-SPV routes

A joint venture between SVBTG Consortium (USA) and

Stradcom Corp (Philippines) had won the largest contractduring that period (project cost of USD134 million)

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

688

339

199

137 134 101

4841

568

429

105 149

6

107

4551

Malaysian

Russia*

China

Russian

USA

Taiwan

S.

Korean

Indonesian

Project Cost (USD mn) Length (kms)

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

Significant potential forconstruction & EPC

companies

About two-thirds of NHDP road

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

government targets to develop

National Highways at the rate

of 20 km per day

Indias construction sector is

expected to grow at about 35

per cent over FY09-13

Strong focus on infrastructure

Infrastructure spending is

expected to touch USD1 trillion

in the next Five-Year Plan

(FY13-17)

Union Budget FY14 allows

financial institutions to raise

USD9.2 billion from tax-free

bonds

The budget also proposed key

steps such as relaxing ECB

guidelines, removal of

cascading effect of DDT and

reductions in WHT

Major government initiativesto boost private and foreign

investment

Increased FII limit in

infrastructure corporate bonds

from USD5 billion to USD25

billion in FY12 is a step in the

right direction

Cumulative FDI inflow for

FY200013 (February) in

construction development and

infrastructure sector (including

roads and highways) stood atUSD24.1 billion

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Ministry of Roads Transport and HighwaysTransport Bhavan1, Parliament StreetNew Delhi110001Phone: 91-11-23719097, 23719955E-mail: [email protected]

National Highway Authority of India

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

Indian Roads CongressSector 6, (Near RBI Quarters), RK Puram, New Delhi 110022Phone: 91-11-26185303Secretariat: 91-11-26716778, 26183669, 26185273, 26185315,26185319Fax: 91-11-26183669E-mail: [email protected]

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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 2009to 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

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NHDP: National Highway Development Project

USD: US Dollar Conversion rate used: USD1= INR54.43

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Year INR equivalent of one US$

2004-05 44.95

2005-06 44.28

2006-07 45.28

2007-08 40.24

2008-09 45.91

2009-10 47.41

2010-11 45.57

2011-12 47.94

2012-13 54.31

Exchange Rates (Fiscal Year)

Year INR equivalent of one US$

2005 45.55

2006 44.34

2007 39.45

2008 49.21

2009 46.76

2010 45.32

2011 45.64

2012 54.69

2013 54.45

Exchange Rates (Calendar Year)

Average of the year

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