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Exhibit 32: NHAI projects awarded recently
Road segment: Improvement in order inflow, but at a cost
In the past six months (April 2011 onwards), NHAI (National Highways Authority of India) awarded projects
worth Rs164bn (around 1,851km) and gave a clear timeline (with project-wise details) for awarding projects
worth nearly Rs483bn during the next six months. However, the delay in order NHAI pick-up in FY11 and
lack of momentum in other sectors, coupled with existing projects nearing completion, increased the
competition for projects. This is visible in the bidding pattern for nine projects awarded this year (NHAI had
estimated aggregate outflow as grants, but on the other hand the developers promised a certain premium in
most of the projects).
Traction in road segment’s order inflow
NHAI is expected to tender road projects of around 24,000km in the next three years, out of which around
8,000km road projects are expected to be awarded in FY12. During the past six months (April 2011 onwards),
NHAI awarded projects worth Rs164bn (around 1,851km) and gave a clear timeline (with project-wise details)
for awarding projects worth around Rs483bn in the next six months. During FY10-11, NHAI had planned to
award around 18,800km, but only 8,450km of road projects (around 50% of planned projects) were awarded
due to a variety of reasons like (land acquisition problems, shifting of utilities, inaccurate preparation of
detailed plan report (DPR), non-receipt of environmental, forest and railway clearances, cost over-run, delay in
commissioning, legal disputes and corruption cases). We believe that most of the issues relating to the project
have been resolved after the implementation of the B. K. Chaturvedi report recommendations (refer Exhibit
no.36) and NHAI seems better placed to speed up the award of projects and meet its target unhindered. The
recent momentum in awarding projects (~25% of planned projects in four months) and newer achievable
targets give us more confidence.
NHDP status (as on 30 April 2011) Phase Total
I II III IV V VI VII
Total length (km) 7,609 7,300 12,109 14,799 6,500 1,000 700 50,017
Completed till date (km) 7,076 5,683 2,294 0 596 - - 15,649
Completion rate as a % of total 93.0 77.8 18.9 - 9.2 - - 31.3
Completion from 30 April 2010- 31 March 2011 (km) 97 616 645 - 353 - - 1,711
Under implementation (UI) (km) 513 1,038 5,805 765 1,918 0 41 10,080
UI as a % of total 6.7 14.2 47.9 5.2 29.5 0.0 5.9 20.2
Balance length for award (BFA) (km) 20 421 4,010 14,034 3,986 1,000 659 24,130
BFA as a % of total 0.3 5.8 33.1 94.8 61.3 100.0 94.1 48.2
Investments ($bn) 1.26 6.60 9.97 8.85 3.71 3.71 34.09
Source: NHAI, Nirmal Bang Institutional Equities Research
Exhibit 33: State-wise PPP road projects
Completed Ongoing Upcoming
Length Project cost Length Project cost Length Project cost Project cost
(km) (Rsmn) (km) (Rsmn) (km) $ bn Rsbn
Rajasthan 416 1,200 352 6,600 1,309 0.4 17.20
Madhya Pradesh 1,629 14,200 974 24,900 914 0.4 17.70
Karnataka 63 1,900 238 5,800 2,650 1.3 56.43
Gujarat 507 32,600 644 29,300 329 0.5 21.30
Maharashtra 403 25,000 2,267 50,500 1,839 1.6 74.20
Andhra Pradesh 45 2,100 655 55,900 2,086 1.4 60.90
Tamil Nadu 113 600 52 15,000 251 - -
Uttar Pradesh - - 1,117 400 2,924 3.9 177.00
Total 3,176 77,600 6,299 1,88,400 12,302 9.4 424.7
Source: NHAI, Nirmal Bang Institutional Equities Research
15 Infrastructure Sector