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Exhibit 16: Road project portfolio
Road projects
Length
(kms)
Concession period
(yrs)
Project cost
(Rsbn)
Debt
(Rsbn)
Grant/(Premium)
(Rsbn)
Equity
(Rsbn)
Revenue
start
Namakkal Karur 44 20 3.45 2.46 0.24 0.45 Operational
Dindigul Samyanallore 53 20 4.15 3.32 0.31 0.52 Operational
Trichy Karur 80 30 7.3 5.1 1.5 0.7 FY12
Trichy Dindigul 88 30 5.37 3.22 1.07 1.08 FY12
Salem Ulenderpet 136 25 10.61 6.37 2.12 2.12 FY12
Gurgaon Faridabad 66 17 7.79 5.84 (1.5) 1.95 FY12
Jaipur Reengus 52 18 5.56 3.89 1.03 0.64 FY12
Pune Satara 140 24 19.85 10.9 (0.91) 8.9 Operational
Kandla Mundra 71 25 11.28 7.9 (0.42) 3.38 Q4FY13
Hosur Krishnagiri 60 24 9.24 6.47 (0.67) 2.77 FY12
Delhi Agra 180 26 29.44 20.61 1.8 7.03 FY12
Total 970 - 119.04 76.08 - 29.54 -
Source: Company, Nirmal Bang Institutional Equities Research
Metro rail projects execution on track
The company has a portfolio of three projects, of which Delhi Metro rail project was commissioned in February
2011, Mumbai metro line phase– I is expected to be operational by 4QFY12 and Mumbai metro line phase -II
by FY16.
Delhi metro rail reported heavy traffic in June 2011 of 12,000 passengers/day (initially estimated as FY12
traffic target) and leased out 25% of land parcels at New Delhi and Shivaji stations at Rs425/sq. ft. We have
assumed passenger traffic of 28,000 in FY12 and average leasing rate of Rs325 /sq. ft. at a majority of real
estate parcels in Dwarka. We have valued Delhi metro rail project based on FCFE methodology with a CoE of
16%, which accounts for Rs 18/share in our SOTP valuation.
Exhibit 17: Metro rail projects
Metro rail projects
Length Project cost Debt Grant Equity COD/Rev Concession
(km) (Rsbn) (Rsbn) (Rsbn) (Rsbn)
start period (years)
Stake (%)
Delhi 23 24.5 17.15 7.35 Feb-11 30 95
Mumbai - Phase 1 11 25 12.75 6.75 5.5 Q4FY12 35 69
Mumbai - Phase II 32 110 70.4 23.1 16.5 Within 5 year 35* 48
Source: Company, Nirmal Bang Institutional Equities Research *could be extended for further 10 yrs
Largest private player in power transmission projects
The company is developing five power transmission projects worth about Rs66bn, which includes WRSS,
Parabati-Koldam, Mumbai transmission, North Karanpura and Talcher II. The company has commissioned
two lines of WRSS project, i.e. Solapur-Karad and Limbdi-Vadavi, and expects the entire project to be
commissioned in FY12. We have valued the transmission business (WRSS project) at Rs14/share by
assuming CoE at 16%.
Exhibit 18: Power transmission projects
Transmission
projects
Project cost
(Rsbn)
Tariff
structure
Stake
(%)
Remarks
WRSS 13.8 Competitive 100 Commissioned two lines ,i.e Solapur Karad and Limbdi - Vadavi
Parabati-Koldam 10.7 Regulated 74 Signed financing agreement with PFC and REC for debt amount of Rs7.7bn
Obtained approval from MOP for commencement of work
Construction activity has commenced at project site
Mumbai transmission 18 Regulated 100 All major equipment orders such as for GIS, transformers, cables placed
Three receiving stations already charged in FY11
North Karanpura 15.5 Competitive 100 Acquisition process completed
Talcher II 8.2 Competitive 100 Acquisition process completed
Total 66.2 - - -
Source: Company, Nirmal Bang Institutional Equities Research
Transmission licence received and project execution commenced
Transmission license received and project execution commenced
47 Reliance Infra