PROJECT INFORMATION MEMORANDUM/FEASIBILITY REPORT Development of Amusement Park (including Snow Park) in Shilparamam, on PPP Basis

For

Andhra Pradesh Shilparamam Arts, Crafts & Cultural Society (APSACCS) Vijayawada, October, 2018 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

TABLE OF CONTENTS Disclaimer ...... 3 1. INTRODUCTION...... 4 1.1. Background of AP Shilparamam...... 4 1.2. The Objectives of the Report...... 7 1.3. Methodology of Assessment ...... 7 2. TOURISM & AMUSEMENT INDUSTRY IN ...... 8 2.1. Industry Overview ...... 8 2.2. Market Size...... 8 2.3. Indian Amusement Industry – Market Trends...... 9 2.4. Popular Amusement Parks in India ...... 10 3. TOURISM & AMUSEMENT INDUSTRY IN ANDHRA PRADESH 11 3.1. Overview of Andhra Pradesh...... 11 3.2. Tourism Sector in Andhra Pradesh...... 14 3.3. Amusement Sector in Andhra Pradesh...... 14 3.4. Investment Climate...... 15 3.5. Partnership Summits ...... 16 4. DEMAND ASSESSMENT ...... 17 4.1. Tourism Sector in Visakhapatnam ...... 17 4.2. Type of Visitors Frequenting Visakhapatnam...... 17 4.3. Amusement Sector in Visakhapatnam ...... 18 4.4. Growth Potential...... 18 5. PROJECT PROPOSAL ...... 22 5.1. Site Location and Connectivity ...... 22 5.2. Site Inherent Resources...... 22 5.3. Market Study and Configuration of the Project...... 23 5.4. Positioning on the Site ...... 25 5.5. Land Use & Development Controls ...... 26 5.6. Proposed Site Plan...... 29 5.7. Block Cost estimates (Assumptions) ...... 29 5.8. Basic Market Value of the Land & Lease Rentals ...... 30 6. FINANCIAL ASSESSMENT & BUSINESS PLAN...... 31

1 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

6.1 Project cost assumptions...... 31 6.2 Means of finance ...... 32 6.3 Revenue Assumptions...... 32 6.4 O& M Assumptions ...... 33 6.5 Other Assumptions ...... 33 6.6 Revenue projections ...... 33 6.7 Projections of O & M costs...... 34 6.8 Project Profitability ...... 34 6.9 Viability Ratios...... 34 7. IMPLEMENTATION STRUCTURE...... 36 7.1. Institutional Structure ...... 36 7.2. Payments to APSACCS ...... 36

2 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

Disclaimer

The information contained in this Project Information Memorandum/Feasibility Report document (the “PIM”/ the “FR”) or subsequently provided to Bidder(s), whether verbally or in documentary or any other form by or on behalf of the Authority or any of its employees or advisors, is provided to Bidder(s) on the terms and conditions set out in the Request for Proposal (RFP) and such other terms and conditions subject to which such information is provided.

The purpose of this PIM/FR is to provide interested parties with information that may be useful to them in making their financial offers (Bids) pursuant to the RFP. This PIM/FR includes statements, which reflect various assumptions and assessments arrived at by the Authority in relation to the Project. Such assumptions, assessments and statements do not purport to contain all the information that each Bidder may require. This PIM/FR may not be appropriate for all persons, and it is not possible for the Authority, its employees or advisors / Project Advisors to consider the investment objectives, financial situation and particular needs of each party who reads or uses this PIM/FR. The assumptions, assessments, statements and information contained in the PIM/FR, may not be complete, accurate, adequate or correct. The various assumptions and assessments arrived at by the Authority in this PIM/FR are based on the Authority’s and its Project Advisor’s independent assessment. Each Bidder should, therefore, conduct its own investigations and analysis and should check the accuracy, adequacy, correctness, reliability and completeness of the assumptions, assessments, statements and information contained in this PIM/FR and obtain independent advice from appropriate sources.

The Authority, its employees and advisors / Project Advisors make no representation or warranty and shall have no liability to any person, including any Applicant or Bidder under any law, statute, rules or regulations or tort, principles of restitution or unjust enrichment or otherwise for any loss, damages, cost or expense which may arise from or be incurred or suffered on account of anything contained in this PIM/FR or otherwise, including the accuracy, adequacy, correctness, completeness or reliability of the PIM/FR and any assessment, assumption, statement or information contained therein or deemed to form part of the PIM/FR or arising in any way for participation in this Bid Stage.

The Authority also accepts no liability of any nature whether resulting from negligence or otherwise howsoever caused arising from reliance of any Bidder upon the statements contained in this PIM/FR.

The Authority may in its absolute discretion, but without being under any obligation to do so, update, amend or supplement the information, assessment or assumptions contained in this PIM/FR.

3 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

1. INTRODUCTION 1.1. Background of AP Shilparamam

Consequent to Re – organization of the erstwhile State of Andhra Pradesh into State of and Residuary State of Andhra Pradesh and thereby bifurcated the Shilparamam Arts, Crafts & Cultural Society (SACCS) between the two States, the Andhra Pradesh Government decided to register ‘The Andhra Pradesh Shilparamam Arts, Crafts & Cultural Society’ as a separate Society for the State of Andhra Pradesh.

Accordingly, “The Andhra Pradesh Shilparamam Arts, Crafts and Cultural Society (The APSACCS)” has been registered as a society on 5th July, 2018 under the Andhra Pradesh Societies Registration Act., 2001 by the Registrar of Societies Vijayawada (East) with its office situated at 54-16-1/18C, Road No. 2/ Central Excise Colony Loyola College Road / Vijayawada, Krishna District, Andhra Pradesh.

The APSACCS has crafts villages in various key locations of Andhra Pradesh like Visakhapatnam, Tirupati, Kadapa, Pulivendula, Puttaparthi, Anantapuram where the emphasis is on showcasing the ethnic culture in the midst of beautiful landscapes and enchanting rural settings. New Shilparamams are fast coming up at Kakinada, Guntur, Vizianagaram, Srikakulam and Kurnool. A few other projects are in pipeline.

4 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

1.1.1. Configuration of the APSACCS Craft Villages

The APSACCS craft villages are developed around and/or surrounded by natural settings to house:  The retail outlets for craftsmen to display and sale  Amphitheaters & places for various artists to stage performances  Eateries from different regions of the nation (seasonal)  Pedal boating and water-based activities, where ever possible  Convention facility / Party lawns etc.

Apart from the above, other utilities and administration blocks along with parking facilities are provided.

5 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

1.1.2. Proposal of PPP Projects in Visakhapatnam and Tirupati Shilparamams

In light of the increasing tourism inflow both Domestic and International to the State on one hand and the new requirements of business conventions and social events in locations away from the busy and dense city life on other hand, there is a huge potential for Shilparamam Craft Villages to tap the opportunities and it is order of the day for the APSACCS to facilitate these requirements in a diversified manner.

In this context, the APSACCS envisages up-gradation of existing Shilparamams while developing the new one with state-of-the-art facilities. It has engaged Master Planning & Architectural Consultancy firms and got the Master Plans prepared. The Master Plans for Visakhapatnam and Tirupati have been approved by the Government and the APSACCS is in the process of implementation of the same on priority.

In this context, as part of the approved Master Plans, the following projects are proposed to be developed on PPP basis in Visakhapatnam and Tirupati Shilparamams, initially.

Visakhapatnam: Package – 1: Hotel & Convention facility, Auditorium, Exhibition and Health Centre. Package – 2: Amusement and Game Zone, Water Park Zone, Snow Dome.

Tirupati: Package – 1: Convention Centre, Guest Rooms with Spa and Light & Sound Show. Package – 2: Adventure Rides and Water Rides.

APSACCS has appointed IL&FS Township and Urban Assets Limited (ITUAL), to provide the project advisory consultancy services to develop the above

6 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

four projects on best available commercial format of PPP to attract private investment and offer the projects for a stipulated lease period through transparent bidding process.

As a first step of the Project Development Cycle, ITUAL has prepared this Feasibility Report for the project – ‘Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam’.

1.2. The Objectives of the Report

The objectives of this Feasibility Report are as below:

a. To carry out the due diligence on the land matters – reviewing the titles, land use matters as per the local master plan and applicable development control regulations.

b. Conceptualizing project development cycle including approvals and permissions required for the project development on PPP format.

c. Undertaking the feasibility study for project sizing which includes market assessment & financial analysis for establishing the project viability.

1.3. Methodology of Assessment

The methodology of the study is broadly divided into two key modules: Module I: Site Visit & Secondary Data Collection Module II: Market Research & Opportunity Assessment

7 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

2. TOURISM & AMUSEMENT INDUSTRY IN INDIA

2.1. Industry Overview

The Indian tourism & amusement industry has emerged as one of the key drivers of growth among the services sector in India. Tourism in India has significant potential considering the rich cultural and historical heritage, variety in ecology, terrains and places of natural beauty spread across the country. Tourism is also a potentially large employment generator besides being a significant source of foreign exchange for the country.

India welcomed a total of 10.18 mn foreign visitors in 2017, up 15.6% compared to 2016, with the E-visa programme, strong growth in the aviation sector, additional investment in improving infrastructure across the country and the emergence of alternative tourism formats. The country took around 27 years to cross the 5 mn FTAs mark from 1 mn, back in 2007, while it took just a decade more to cross the next 5 mn in 2017. This milestone was achieved at a CAGR of 7.2% (India Hospitality Industry Review 2017).

Amusement Parks in India are attracting over three crores visitors annually and contributing nearly 40 per cent of the total leisure industry turnover which are key drivers of growth among the services sector. In the three crores visitors, about 30-35 per cent visitors are from outstation and thus a major source of tourism. Children and youth visit the parks either in school groups or with families and constitute 50 per cent of parks visitors, while adults constitute the remaining as they either visit with their families or in corporate groups.

2.2. Market Size

According to Indian Association of Amusement Parks and Industries, "The Indian amusement and theme park industry has been growing at a compounded annual growth rate of more than 17.5 per cent with annual revenue of around Rs 17 billion, is estimated to grow to at least Rs 40 billion (Rs 4,000 crore) by 2020".

India’s rising middle class and increasing disposable incomes continued to support the growth of domestic and outbound tourism. Domestic Tourist Visits (DTVs) to the States/Union Territories (UTs) grew by 12.68 per cent with 161.35 crores during 2016

8 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

over the year 2015 with the top 10 States/UTs contributing about 84.2 per cent to the total number of DTVs, as per Ministry of Tourism. The number of Foreign Tourist Arrivals (FTAs) increased 5.92% per cent with 2.47 crores during 2016 over the year 2015.

The travel & tourism sector in India accounted for 8 per cent of the total employment opportunities generated in the country in 2017, providing employment to around 41.6 million people during the same year. The number is expected to rise by 2 per cent per annum to 52.3 million jobs by 2028. International hotel chains are increasing their presence in the country, as it will account for around 47 per cent share in the Tourism & Hospitality sector of India by 2020 & 50 per cent by 2022. (Source: IBEF).

2.3. Indian Amusement Industry – Market Trends

The amusement and theme park industry in India is about four decades old and it is relatively new when compared to its origin in USA & Europe. This industry found its roots in India during mid and late 1980s when a few innovative entrepreneurs took challenge of pioneering few amusement parks in , , Mumbai and . The growth in this industry started only in the last decade.

 Currently, the amusement industry in India is at a growing stage with more and more developments happening in this industry all across the country.  Currently for a population of 1.15 billion in the country, there are only 120 amusement parks and 45 Family Entertainment Centres. This indicates that the growth potential of Indian amusement and theme park industry is substantial.  Global leaders in entertainment parks and attractions like Universal Studios, Disney, Sony and Ripley Entertainment are mulling over investments of billions of dollars in India considering the vast potential in this region. Private equity funds are also aggressively dedicating resources towards this sector.  The Indian small and big players in the Amusement Industry are looking at the tremendous growth potential of this industry in the next 5 years.  Growth of India's retail sector had been the main driving force for the amusement industry in India.  Globally, domestic and international tourists comprise more than 50% of the total footfall at popular amusement parks.

9 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

 Transport corridors like expressways and the Metro line are bringing an increasing number of people closer to entertainment hubs.  The high growth potential of the industry in highly populated India will boost tourism, social infrastructural development as well as employment generation.  The success and growth potential of this industry is resulting into the advent of new manufacturers of amusement parks' rides in India. (source: insight alpha)

2.4. Popular Amusement Parks in India

There are dozens of big theme parks and amusement parks in India. Only a few of them are world class and outstanding. The ones listed are having the best rides and worthy visiting, comparatively.

Few of Popular Amusement Parks in India

Sl. No. Name of the Park Location Size (in acres) 1 Essel World & Water Kingdom Mumbai 64 2 Kolkata 40 3 Adlabs Imagic Pune 110 4 15 5 Wonders of World Noida NA 6 Wonder La Hyderabad 50 7 Snow Park Hyderabad 02 8 Hyderabad 12 9 Queensland Chennai 70 10 GRS Fantasy Park Mysore 30

10 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

3. TOURISM & AMUSEMENT INDUSTRY IN ANDHRA PRADESH

3.1. Overview of Andhra Pradesh

Andhra Pradesh is the 10th largest state in the Country, in terms of population. As per 2011 Census, the State accounts for 4.10% of the total population of the country. With a geographical area of 1, 62,970 sq km, Andhra Pradesh ranks as the 8th largest State in the Country. Situated in a tropical region, the state has the 2nd longest coastline with a length of 974 km and as per the forest records, the state ranks 9th in India having forest cover area of 36909.38 Sq. Kms which accounts to 23.04% of the total geographical area

The density of population for Andhra Pradesh is 304 persons per square kilometre, as against 382 persons per square kilometre at all India level in 2011. The sex ratio in the state was up from 983 in 2001 to 997 in 2011 and is higher than all India figure of 943 in 2011. The literacy rate of the State is 67.35 percent in 2011 as compared to 62.07 percent in 2001. Urbanization has been regarded as an important component for growth realization. The percentage of urban population to the total population in the State is 29.47 percent in 2011 as compared to 24.13 percent in 2001. (Compiled from the Socio- Economic Survey 2017-18).

11 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

Physiographic Features

The State has a variety of physiographic features ranging from high hills, undulating plains to coastal and deltaic environment. The run through the state in a discontinuous manner, parallel to the coastline. To the east of the Ghats lie the coastal plains which are for most part the delta regions formed by Godavari, Krishna and Penna rivers. Most of the coastal plains are put to intense agricultural use. Kadapa Basin, in the southern part of the state, formed by two arching branches of the Eastern Ghats is a mineral rich area.

‐ Climate

The climate of Andhra Pradesh varies considerably, depending on the geographical region. Monsoons play a major role in determining the climate of the State. Summers last from March to mid June. In the coastal plain, the summer

temperatures are generally higher than the rest‐ of the State, with temperature ranging between 20°C and 41°C. Mid-June or July to September is the season for tropical rains in Andhra Pradesh.

The State receives heavy rainfall from the Southwest Monsoon during these months. About one third of the total rainfall in Andhra Pradesh is brought by the Northeast Monsoon. October and November see low pressure systems and tropical cyclones form

in the which, along with‐ the Northeast Monsoon, bring rains to the southern and coastal regions of the State.

November, December, January, and February are the winter months in Andhra Pradesh. Since the State has a long coastal belt the winters are not very cold. The range of winter temperature is generally 12°C to 30°C.

Infrastructure and Connectivity

The State has a good network of national highways, state highways, seaports, airports and rail network as shown in the following figures.

12 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

The Golden Quadrilateral (GQ) and the North South (NS) Corridor of NHDP pass through the State with the following highways: ‐

GQ: NH 5 – (Baharagora – Cuttack – – Visakhapatnam – Vijayawada – Chennai) and NH 4 (Thane – Pune – Belgaum – Hubli – Bangalore – Chittoor – Ranipet – Chennai).

NS Corridor: NH -7 (Varanasi – Jabalpur – Nagpur – Hyderabad – Kurnool – Bangalore – Krishnagiri – Salem – Dindigul – Madurai – Kanyakumari).

The main seaports with commercial operation in the State are , , Kakinada Deep Water Port and Krishnapatnam Port. The Chennai Howrah, Mumbai Vijayawada and Chennai Mumbai trunk lines of the Indian

Railways‐ also pass through‐ the State. The operational‐ airports in the State are Visakhapatnam, Vijayawada, Tirupati, Rajahmundry and Kadapa.

The Government has proposed to develop 3 new Greenfield International Airports at Bhogapuram Mandal of Vizianagaram District near Visakhapatnam, Dagadarthi in Nellore and Orvakal in Kurnool.

Amaravati, is envisioned as the people’s capital with world’s best infrastructure and as a global destination of people, investments and jobs. The planning principles of Amaravati ensure to make it the most liveable, efficient, sustainable blue and green city. Amaravati is destined to become the Happy City on the globe.

13 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

3.2. Tourism Sector in Andhra Pradesh

With the second longest coastline of 974 kilometres in the country, a rich historical and cultural heritage, ancient and spiritual temples, serene valleys and hills, the new state of Andhra Pradesh holds vast tourism potential with many distinctions and the traditional hospitality of the people.

Andhra Pradesh as one of the leading tourism destinations in India occupied top most position in domestic tourism category in the year 2016 with more than 15 (fifteen) crores domestic tourist visits to the State. The tourist statistics and growth rate of Andhra Pradesh State published by the Ministry of Tourism, Government of India for the years 2015 and 2016 are as below.

Tourist Statistics & Growth Rate during 2015-16

Year 2015 Year 2016 Growth Rate Domestic Foreign Domestic Foreign Domestic Foreign 12,15,91,054 2,37,854 15,31,63,354 3,41,764 25.97 43.69 (Source: compiled from the official Tourism Statistics of MoT, GoI)

It is surprising to see that in the year 2016 the State has witnessed a growth of 25.97% in domestic tourist visits and 43.69% in foreign tourist visits which is much beyond the national growth of 12.68% in domestic tourist visits and 5.92% foreign tourist visits in the same year.

3.3. Amusement Sector in Andhra Pradesh

The Amusement Sector in the State appears to be on a growth path. As the state government get in the way to begin work on building a new capital city, Amaravati, the

14 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

number of travellers to the state, especially to major cities like Visakhapatnam, Vijayawada, Tirupati etc. have been on the rise. Thus, leisure tourism followed by business tourism is particularly noticeable in Vijayawada and Visakhapatnam. Also, many business people are looking to set up their enterprises across the major cities in Andhra Pradesh. Hence, the rise in business travel is helping in reviving the leisure tourism industry state wide.

3.4. Investment Climate

Government of Andhra Pradesh aims to create an enabling environment to encourage private investments in the State. The State is providing potential private investors with excellent support infrastructure and access to a host of scenic locations and divine destinations for developing world – class tourism infrastructure projects. With a view to make the State more conducive and attractive for potential investors and provide an impetus to the tourism sector, the State Government introduced the Andhra Pradesh Tourism Policy 2015 – 20. The Policy remains in force up to 31st March, 2020 and the tourism projects achieved commercial operation on or before this date will be eligible for many benefits under this policy.

For example, as per the Policy, for setting up of Tourism Infrastructure projects that are proposed on government land, lease rent of 2% of ‘Basic Market Value’ of the land from the Date of Possession, as per the valuation of the concerned sub – registrar office, will be charged to the developers with a 5% annual increase.

As per the Policy, Amusement Parks are also eligible tourism infrastructure projects under this policy. The following areas could be explored for investment opportunities in the tourism sector:

. MICE tourism and Heritage . touLeirsismure tourism . Adventure tourism . Religious tourism . Sea & inland water cruise tourism . Pilgrim Tourism . Health tourism . Buddhist circuit & Buddhist sites . Science and technology tourism Beach tourism . 15 . Eco tourism . Wild life tourism . Fairs and Festivals and . Rural / Village tourism Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

3.5. Partnership Summits The State is a microcosm within itself – offering unmatched tourism potential to investors and tourists. It offers multitude of theme-based options to explore across its length and breadth. As part of its Tourism Mission strategy, the State offers nine major Tourism themes which includes Beach & Water based, Eco-tourism, Buddhist, Religious, Heritage, Spiritual and Medical.

During the Partnership Summit held in Visakhapatnam in January 2017, 665 Memorandum of Understandings (MoUs) were signed with an investment of Rs. 1,054,594 crore and an employment potential of 2,234,096. Of these, almost 109 MoUs were worth more than Rs.1000 crore investments in total. Some marquee investments were signed by various departments of Government of AP, some of the major focus sectors were Aerospace and Defence, Electronics, Pharmaceuticals & Biotechnology, Food Processing, Automobiles and Tourism.

In the recently concluded Partnership Summit 2018, the Government signed another 734 MoUs with investment potential of Rs 4.39 lakh crores and employment potential of 11 lakhs. (Source: Socio Economic Survey 2017-18).

16 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

4. DEMAND ASSESSMENT

4.1. Tourism Sector in Visakhapatnam

Visakhapatnam is the biggest city in Andhra Pradesh situated in the North East Coast of the State. Popularly known as Vizag, it has grown from a small fishing town to a bustling, industrial city. Though, primarily it is an industrial city, but also attracts lot of tourists due to its unspoilt sandy beaches like Rama Krishna beach, Rishikonda, Gangavaram, Yarada, Bhimili, well maintained lush green parks, Museums like Submarine Museum (only submarine museum of the sub-continent), Naval Museum & Matsyadarshini Aquarium, Naval Base, Ship Yard and many other Tourist attractions like , Bojjana Konda, Thotla Konda, Bhavi Konda, Famous Simhachalam Temple etc. In a nut shell, Visakhapatnam has everything to make a perfect tourist destination with a salubrious climate.

In the A.P. Tourism Policy, one of the two key aspects of tourism sub – mission is ‘destination – based development through Hub & Spoke model’ where the emphasis will be on developing five important tourism hubs in the State in which ‘Visakhapatnam’ is also one.

4.2. Type of Visitors Frequenting Visakhapatnam

 Domestic Tourists largely from and and various parts of Andhra Pradesh and Telangana.  Passengers Traveling on the National Highway-16 – Odisha, Kolkata, (Long Hauling) and Vijayanagaram, Srikakulam.  Officials of different State & Central Government, Banks.  Corporate Executives of Steel plant, NTPC, Port Trust, Coromandel Fertilizers, Hindustan Zinc, Refineries.  Executives of upcoming d s in SEZ and Apparel parks

17 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

 Executives of existing & upcoming ITES.  Executives of Pesticides, Seeds, Automobile, Telecom, Insurance and Medical & Health etc.

4.3. Amusement Sector in Visakhapatnam

A slice of Visakhapatnam city provides the perfect backdrop for a leisure getaway. Its spectacular setting creates the ideal destination for world class amusement parks with water rides taking the advantage of city’s long coast line. Whereas, the amusement sector in Visakhapatnam is just the urban parks developed by the local authorities for relaxation and leisure of locals.

As of now, there are no big amusement parks in Visakhapatnam or its surroundings. Amusement park nearest to Visakhapatnam would be probably the Haailand near Vijayawada. There was an MGM World in Visakhapatnam, which was closed down long back. At present, there are no good recreational places in Visakhapatnam except the beach road and Kailasagiri Park and the several urban parks like VUDA Central Park, , , etc.

One of the primary sources of entertainment for many in Visakhapatnam are movies. Movies became an important part of their recreational life since decades. Visakhapatnam being one of the most industrialized cities in the state of Andhra Pradesh serves home to many multiplexes and single screen theatres.

Bengaluru – based amusement park operator Holidays Limited, in the year 2015, announced an investment of Rs. 250 crores in the next five years in Andhra Pradesh. Wonderla has signed an MoU with the Andhra Pradesh Government to set up a large-scale amusement park in Andhra Pradesh. It plans to build an amusement park at a land parcel of 50 acres between Guntur and Visakhapatnam in Andhra Pradesh.

4.4. Growth Potential

Visakhapatnam is the largest city in the State. It has the largest seaport in the State and is home to the Eastern Naval Command of Indian Navy. The three Partnership summits held in Visakhapatnam consecutively for three have facilitated great investment friendly environment and the progress of investments is very encouraging. The Chennai-

18 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

Bengaluru Industrial Corridor (CBIC) is one of the mega infrastructure projects of Government of India which passes through the State conceived with the main objective to increase the share of manufacturing sector in the GDP of the country. This also aims and to create smart sustainable cities which will have world-class infrastructure, convenient public transport, power management and an efficient water and waste management system.

The Vizag Chennai Industrial Corridor (VCIC) is a key part of the planned East Economic Corridor and India’s first coastal corridor. Nearly 800-kilometer corridor links India with the Association of Southeast Asian Nations (ASEAN) and East Asian economies that form the bedrock of global manufacturing economy. The corridor traverses nine districts of the state of Andhra Pradesh. VCIC intends to complement the ongoing efforts of the Government of Andhra Pradesh (GoAP) to enhance industrial growth and create high quality jobs.

The Government has proposed to develop a new Greenfield International Airport at Bhogapuram mandal of Vizianagaram District near Visakhapatnam. This will improve direct and indirect employment opportunities, revenue generation, commercial and industrial activities, therefore resulting in positive impact on the employment generation and economic growth of the region.

Recent development in beach tourism, Government interventions in developing corridor, emerging gated residential communities and IT/ ITES parks, etc. promises high potential for hospitality industry in the near future. A good demand for the 3-star category accommodation catering to the domestic & international business clientele and local recreational segment are also anticipated.

As per the latest statistics, the population of Visakhapatnam is around 20.00 Lakhs. Apart from this, lakhs of visitors are visiting Visakhapatnam for various purposes, some being Tourists. The year wise data of domestic & foreign tourist arrivals to Visakhapatnam District for the year 2008 to 2018 are as given below.

19 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

Year Wise Data of Tourist Arrivals from 2008 to 2017

YoY growth on tourist No Year Domestic Foreign Total arrivals (in %) 1 2008 31,46,092 28,964 31,75,056 --- 2 2009 40,01,538 21,607 40,23,145 21.08 3 2010 52,62,218 17,775 52,79,993 23.80 4 2011 51,39,627 28,677 51,68,304 -2.16 5 2012 52,73,228 53,859 53,27,087 2.98 6 2013 67,00,675 57,476 67,58,151 21.18 7 2014 67,82,784 54,272 68,37,056 1.15 8 2015 1,04,16,500 64,178 1,04,80,678 34.77 9 2016 1,74,53,853 78,266 1,75,32,119 40.22 10 2017 2,12,99,785 92,958 2,13,92,728 18.05 (Source: Department of Tourism, Visakhapatnam) The above data shows a good year on year growth (except in the year 2011) in tourist arrivals to Visakhapatnam and it is expected to grow rapidly, once the green field international airport is operational. State is also focussing all its efforts to promote Visakhapatnam as an attractive tourism destination.

Highlights

After formation of New State of Andhra Pradesh, Visakhapatnam became largest population city in Andhra Pradesh. Further, the IT boom is the present trend in and around Visakhapatnam in addition to the Pharma City, Health City, Special Logistic Corridor, Industrial corridor, VSEZ, Coastal Corridor, Bhogapuram International AirPort etc. Many companies having national and global reputation and network are in queue to open vistas for their operations. Hence, Visakhapatnam city has got tremendous potential for future development as compared to other cities of Andhra Pradesh after Amaravati – the new capital city.

Hence, the rationale behind identified project – Amusement Park at Shilparamam, Visakhapatnam is:  The growing tourism in Visakhapatnam is making it as one of the most visited destinations in Andhra Pradesh.  The increasing requirements of hospitality facilities both in quantum and quality by business and tourist clientele.

20 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

 Growing industrial and Port based activities, and upcoming ITES/IT parks in the city.  Proposed New International Air Port at Bhogapuram.  Rapid expansion of the Visakhapatnam city towards Madhurawada locality and beyond.  Growing culture of weekend getaways, partying, social get together and leisure meets.  Organized events of national and international important right from investor summits, eastern command naval shows to regular conferences, conventions.  The strong growth potential was an outcome of strong demand but still there is a slag momentum in development and opening of amusement parks.  In the recent past, due to the state’s favourable government policies and infrastructure, the city has emerged as an upcoming destination for IT/ITeS, rivalling that of Hyderabad.

21 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

5. PROJECT PROPOSAL

APSACCS proposes to develop an Amusement and Game Zone, Water Park Zone, Snow Dome in the existing premises of Shilparamam, Visakhapatnam on Public Private Partnership (PPP) basis.

5.1. Site Location and Connectivity

The proposed site is located in Survey No. 228 of Madhurawada, Visakhapatnam which is a growth centre for the new townships within 5 Km radius, and IT parks along the Rushikonda beach corridor. The Project site is nearest to the National Highway 16.

City level connectivity of the proposed site (Key Transport Nodes) Estimated No Major Landmarks Location Distance (km) Travel Time 1 Airport (Existing) NH – 16 18-20 km 40-50 mins 2 Railway Station - 10-12 km 20-30 mins 3 Bus Complex Dwaraka Nagar 8-10 km 20-30 mins 4 Visakhapatnam Port - 12 – 15 km 25-40 mins

5.2. Site Inherent Resources

The Site is conveniently located nearest to the National Highway (NH-16) at Madhurawada and in the vicinity of the growth centres like Bheemili, Rushikonda, , Kottavalasa, Tagarapuvalasa, Bhogapuram of Visakhapatnam and Vizianagaram.

22 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

Inherent Resources  Natural Surroundings (Water body, Mountains)  Upcoming Townships / Residential Area  Upcoming IT Parks, Health City  Better positioned for proposed Greenfield International Airport etc.

5.3. Market Study and Configuration of the Project

A team of Consultants from and on behalf of ITUAL have undertaken a market study on the status of amusement parks, flow of visitors, business potential of the segment etc and detailed deliberations have been made on the project proposal in Visakhapatnam City. The team having the diversified knowledge and network in their domains have visited relevant parks, destinations, met the business communities, developers, tourists, general public and of course the Shilparamam officials to understand the local market pulse of the tourism & amusement industry in Visakhapatnam City.

The team also visited relevant Government departments like Visakhapatnam Urban Development Authority, Greater Visakhapatnam Municipal Corporation, Tourism Department etc for the needful records and data requirements.

By the deep and wide consultations with the relevant stakeholders, the following market dynamics have been outlined about the Amusement Parks in Visakhapatnam in General and in Madhurawada area (Shilparamam area), in particular.

The Amusement Parks sector is at a very nascent stage in Visakhapatnam as compared to the other big cities amusement parks segment. The sector presently is on a verge of transition in the city and large investments are expected in the near future both on Public Private Partnership (PPP) basis and by private players. Industry experts believe that majority of the proposed investments are expected to follow the PPP model which would allow the private players the required support from the Government in terms of land acquisition, incentives, taxes etc. for development of such large capital-intensive projects.

However, the sector is facing numerous challenges in the present-day scenario with no incentive towards tax breaks, double taxation of this sector with entertainment tax and

23 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

the increased service tax etc. Other challenges such as inadequate basic infrastructure facilities like power and water, seasonality of the business, lack of awareness about safety, land acquisition issues with unavailability of contiguous land parcels at affordable rates, etc.

Whereas, there are some strong enablers such as increasing domestic and international tourism, rising urbanization and demographic advantage, higher percentage of working age group with discretionary spending power, the sector is estimated tremendous growth over the next five years offering immense business opportunities.

Preliminary observation of the Vishakhapatnam with reference to Madhurawada particularly revealed that the target area has no water parks and snow domes. Only few medium scale urban parks are existing in the city, mainly beach road, Kailasagiri hill and valleys are catering to the recreational needs of the locals as well as tourists. In order to better understand the scenario of amusement sector in the target location, some existing parks from Vishakhapatnam were brought under the domain of the study. As city is growing in all aspects such as population, urbanization and economy, the life style of people has seen a change over the years. As the income has seen an increase and people have become more adventurous. There is an increased case of people seeking more recreational facilities to refresh physically and mentally and make their leisure time more interesting and enjoyable which at this point in time are very inadequate in the area.

A prominent suburb on the Visakhapatnam - Vizianagaram stretch of NH 16, Madhurawada is now one of the most promising developing destinations in Visakhapatnam. The area is developing as a major hub for sports, entertainment, education, business establishments and the most recent trend – luxury homes and gated communities. Initially it was the proximity to IT companies and industrial sectors that attracted a smattering of populace here, but with the availability of abundant space and considerably easy connectivity to the main city, many more institutions, colleges, entertainment and sport establishments, and eventually a number of residential townships sprang up here, drastically changing the landscape in the last decade.

24 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

In addition to the existing Gitam University Campus, IT & ITES SEZ, Innovation Valley, Iconic Towers (IT & ITeS) etc in the Madhurawada influence zone, there are many mega projects are upcoming like IIM Visakhapatnam, Bhogapuram International Airport, Visakhapatnam – Anandapuram 6 lanes high way, Walmart Retail, Health Zone etc.

As of now, there is a minimal competitive rivalry existing since there are very rare numbers of players operating in Amusement industry. As coming up with such concept requires a large amount of investment in terms of money as well as efforts. Further, it is a game of brand and developing the brand requires a huge amount of cost there is no anticipated threat of quick entry by new entrants into the business.

However, the industry also opines that the Visakhapatnam city has about 15 to 18 lakhs population and 60% of them are salaried segment. Any facility with right pricing will have a great scope. Since, Visakhapatnam city attracts large number of domestic as well as foreign tourists and as the city itself has about 20 lakhs population including floating population, Visakhapatnam needs an amusement park.

Hence, with reference to the above dynamics, the project has been conceived as a combination of an Amusement Park with inclusive product mix of dry and wet rides and a snow dome in an extent of 3.00 acres.

It is opined that the dearth of amusement parks to cater the increasing needs of the business and tourist clientele of Visakhapatnam in general and Madhurawada in particular can be addressed by proposed project facility within the Shilparamam site keeping in view of the configuration of APSACCS and the potential demand.

5.4. Positioning on the Site

APSACCS wants the facility to be developed towards east of the site facing the National Highway with a common entry gate to enter into the premises but with a provision of an internal entry gate to the project site, exclusively. Since, the project site is a defunct water body; this is the ideal location for the proposed project facility to come up.

25 1

Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam 2 Location 1  Directly accessible from the NH 16.  Ideal for the proposed facility with exclusive access.  Separate identity from the other activities of Shilparamam but visually connected.

5.5. Land Use & Development Controls

Land Use 2 As per the local master plan, the present land use of the site is categorized as Public and Semi-Public Zone.

As per the G.O. Ms. No. 187 dated 25.07.2016 of Municipal Administration and Urban Development Department Government of Andhra Pradesh, orders were issued exempting the Tourism Projects which are notified by the Youth Advancement, Tourism & Culture Department from the purview of Zoning Regulations according to which no change of land use/payment of conversion charges is required to the Tourism Projects, if the land proposed for the project is falling in Residential, Commercial, Institutional, Industrial, Recreational zones (except layout open spaces, water bodies, tank bed lands, shikkam lands and the sites proposed for acquisition by the local bodies for development of recreational facilities), subject to conditions that the land area should be one acre and above.

Since, the proposed site is falling in Institutional Zone / Public & Semi Public Use Zone of the VUDA and the land area is above one acre, no change of land use/payment of conversion charges is required to take up the proposed project in the site.

However, if any such change is required The APSACCS shall get the land use conversion done as its responsibility. The necessary conversion charges shall have to be borne by the selected Bidder.

Development Control Norms

The project area falls in the purview of Visakhapatnam Urban Development Authority (VUDA) and all the development controls as mandated by the VUDA are applicable for this project also.

26 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

Government of Andhra Pradesh (GoAP) issued the common building rules vide G.O. Ms. No. 119, MA&UD, dt. 28.03.2017 that are applicable to all Urban Development Authority areas and Urban Local Bodies together with Gram Panchayat areas in the State covered in Master Plans / General Town Planning Schemes / Outline Development Plans and hence applicable to the proposed “Amusement Park” development at Shilparamam, Visakhapatnam.

As per section 3 (e) of the G.O., the total area of the site is 3.00 acres (12140 sq. m.) and the proposed construction area of the “Amusement Park” project is less than 20,000 sq. m., prior Environmental Clearance (EC) is not required from State Environmental Impact Assessment Authority (SEIAA), Ministry of Environment and Forests, Government of India as per the provisions laid under the EIA Notification S.O.1533, Dt.14.9.2006 and its amendments from time to time. Hence No EC is required for this Project.

As per section 4 (Requirement of approach road/access road for building sites / plots), the proposed development falls under B2 category and hence needs to have an approach road with a minimum existing width of 12 m. The site meets this requirement.

As per section 5 The minimum setbacks and permissible height (Buildings above 18m in height) Minimum Setbacks and Permissible Height Abutting Road Width Minimum Plot Size Height (in setbacks (in Sqm) Parking m) Above Above Above on Sl. No. Up to 12 Above Above – provision Permissi 12m & up 18m & up 24m & up remaining m 30m Up to ble upto to 18m to 24m to 30m sides (in m) 1 2 3 4 5 6 7 8 9 10 7 3 4 5 6 7.5 5 Stilt + 2 Above 15 3 4 5 6 7.5 6 1 or more 2500 cellars 18 3 4 5 6 7.5 7

The setbacks are to be left after leaving the affected area of the plot/ site, if any, for road widening.  In case of plots above 750 sq. m, it is permitted to transfer up to 2 m of setback from any one side to any other side without exceeding overall permissible plinth area,

27 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

subject to maintaining of a minimum 2.5 m setback on other side and a minimum building line. The transfer of setback from front setback is not allowed.  As per the provisions of the Andhra Pradesh Fire Service Act, 1999, Residential buildings of height more than 18 m, Commercial buildings of height 15 m and above plot area of 500 sq. m. and above or of height above 6m are required to obtain prior clearance from Andhra Pradesh State Disasters Response & Fire Services Department from fire safety point of view. The Project shall be planned considering the above setbacks requirements.

As per section 13 (parking requirements), in all buildings provision shall be made for parking spaces as per the following requirements:

S. Parking area to be provided as % to Category of building activity No total built up area All Municipal Corporations & UDA areas Municipalities All Municipal /N. Ps/G. Ps in Corporations UDA area 1 Multiplexes 60 50 Shopping malls (above 4000sq.m), information 2 50 40 technology enabling services complexes Hotels, restaurants, lodges, cinema halls, business buildings, other commercial buildings, Kalyana 3 30 25 mandapams, offices, & high-rise buildings/ complexes of non-residential category Residential apartment complexes, hospitals, institutional buildings, industrial buildings, schools, 4 20 20 colleges, other educational buildings & godowns & others

The project falls under Sl. No 3 of the above table hence 30 % of the total built up area is to be provided for parking. The APSACCS shall provide Parking & other amenities as per the above requirement.

As per Section 18 For certain areas as well as sites abutting major roads of 30m and above, the Competent Authority may enforce urban design and architectural control. These shall be detailed out keeping in view the development conditionalities and requirements given in these Regulations and the National Building Code norms. For this purpose, urban design and architectural control sheets / Plans approved by the Competent Authority shall be complied with.

28 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

5.6. Proposed Site Plan The following site plan is tentative. Due to highland values and project viability issues, only 3 acres land has been considered for the proposed project of Amusement Park including Snow Park.

5.7. Block Cost estimates (Assumptions) Based on the above project configuration, the estimated Project Cost is Rs. 20.37 crores considering cost escalations during the construction period. Based on the industry consultations and similar project experiences, the base assumptions have been considered.

Estimated Project Cost (INR Crores) Project Cost (INR Crores) With General Snow Food Particulars Total Escalation Rides Park Court Construction 2.00 12.00 1.00 15.00 15.38 /Procurement cost Preliminary & Pre- Operative Expenses/ Contingencies - - - 2.24 2.24 /Registration & Stamp Duty Charges Interest During - - - 0.98 0.98 construction Lease Rental (During - - - 1.52 1.52 Construction) Project Development Fee - - - 0.20 0.20 Total - - - 19.95 20.37

29 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

Note: For the purpose of project sizing and feasibility analysis, the cost assumptions have been arrived with ‘minimum’ facilities requirements. As it is unlikely that all potential developers will think the same way in terms of their business plan for the project, it is expected that the winning bidder will alter such assumptions, specifications as a result of which the actual project cost may vary.

5.8. Basic Market Value of the Land & Lease Rentals

As per the records of Sub Registrar, Madhurawada, the Basic Market Value of the proposed land is Rs. 35,000/- per Sq. Yard w.e.f. 01.08.2018 and the Total Land Value for 3 acres is Rs. 50.82 Cr. Accordingly, reserve lease rental is arrived as Rs. 1,01,64,000/- for the first year of lease (@ 2% on the land value).

30 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

6. FINANCIAL ASSESSMENT & BUSINESS PLAN General The financial analysis of the project has been carried out for Development of Amusement Park along with Snow Park at Shilparamam, Visakhapatnam on Public Private Partnership (PPP) project implementation format and the financial viability has been assessed with respect to key indicators such as Project Internal Rate of Return (IRR), Equity IRR, and Debt Service Coverage Ratio (DSCR) for the viability of the project.

Development Cost estimates for the project are based on recently completed projects, discussion with existing developers and few vendors. The total landed project cost works out to Rs. 20.37 crore.

For working out the landed project cost, Lease Registration Cost, Project Development Fees, Lease During Construction, Interest During Construction, contingencies etc. have been included. The funding of the project has been structured on 50% debt, amounting to Rs. 10.18 Crore; the balance funding is to be by way of equity, Rs. 10.18 Crore.

6.1 Project cost assumptions Landed project cost is estimated as Rs. 20.37 Crores. Following are the details: Estimated Landed Project Cost Project Cost (INR Crores) With General Snow Food Particulars Total Escalation Rides Park Court Construction 2.00 12.00 1.00 15.00 15.38 /Procurement cost Preliminary & Pre- Operative Expenses/ Contingencies - - - 2.24 2.24 /Registration & Stamp Duty Charges Interest During - - - 0.98 0.98 construction Lease Rental (During - - - 1.52 1.52 Construction) Project Development Fee - - - 0.20 0.20 Total - - - 19.95 20.37

Project Development Fee is assumed as 1% of the Project Cost. Lease Rentals during Construction assumed as 2% of the basic land value of the site (3 acres @ Rs 35,000 per square yard).

31 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

6.2 Means of finance Means of finance is assumed as 50:50 basis i.e. 50 Equity% and 50% Debt. The details are as below: Means of Finance (INR Crores) Means of Finance (INR Crores) With Particulars Total Escalation Promoters Contribution / Equity 9.97 10.18 Term Loan / Debt 9.97 10.18 Total 19.95 20.37

6.3 Revenue Assumptions Block Revenue Heads S. No Head of Account 1. General Rides 2. Snow Park 3. Restaurant / Food Court

Assumptions for Revenue

 Park will be operational for 330 days in a year  Average daily visitors for the General Rides are assumed at 300 people. Of this, 60% will be adults i.e. 180 and the rest 120 are children.  The average ride fee assumed is Rs. 750 per adult and Rs. 50 per child  Average daily visitors for the Snow Park are assumed at 500. Of this, 60% will be adults i.e. 300 and the rest 200 are Children.  The entry fee for the Snow Park is assumed at Rs. 300 per adult and Rs. 200 per child  The Food Court is expected to have an average daily footfall of 250 and the average spending assumed is Rs. 200 per person  The revenues are assumed to increase at the rate of 5% every third year  The concession period assumed is 30 years and the operation period assumed is 28 years 6 months after the period of construction of 18 months (i.e. 1 year 6 months).  The Debt Equity ratio assumed is 50:50. Term loans are assumed at a 12.5% interest rate with a 1-year capital moratorium from operations. The repayment for the loan is 8 years.

32 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

6.4 O& M Assumptions The O&M assumptions are as below: Operational Cost Assumptions Description Units Mar-21 General Rides Rs. lakh per month 0.50 Snow Park Rs. lakh per month 15 Snow Park – Power Cost Rs. lakh per month 15 Insurance Cost per annum % of net fixed assets 0.20% Repairs and Maintenance per annum % of gross fixed assets 1.25% Other Administrative overheads % of total Revenue 2.00% Sales and marketing expenses % of total Revenue 5.00%

 O&M and power costs increase is assumed at the rate of 2% every year.  Lease rentals have been considered at 2% of the basic market value of the land with an increment of 5% every year from the year 2020-2021.

6.5 Other Assumptions Summary of Financial Assumptions No. Assumptions 1. Land Price Rs 50.82 Crore 2. Debt: Equity 50: 50 3. Post Draw down Moratorium 1 year 4. Draw down 1 years 6 months 5. Repayment 8 Years 6. Total Loan Tenure 10 Years 6 Months 7. Interest Rate on term loans/ borrowings 12.5% p.a. 8. Cost escalation (with base year 2020) 1% per quarter. 9. Construction Period 1 years 6 months 10. Concession Period (including construction period) 30 years

6.6 Revenue projections The projections of revenues and cash flow are given below. Revenues for the first 14 years [at 3-year interval after 8 years] (Rs.in crores) Years FY ending No st 9 to 12 to 31 March 1 2 3 4 5 6 7 8 11 14 General 1 0.18 0.64 0.68 0.68 0.68 0.71 0.71 0.71 0.74 0.78 Rides 2 Snow Park 1.62 5.94 6.24 6.24 6.24 6.55 6.55 6.55 6.88 7.22 Restaurant/ 3 0.45 1.65 1.82 1.82 1.82 2.01 2.01 2.01 2.21 2.44 Food Court Total Revenue 2.25 8.23 8.73 8.73 8.73 9.26 9.26 9.26 9.83 10.44

33 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

6.7 Projections of O & M costs O&M for the first 10 years (Rs.in crores) Sl. FY ending 31st Years No. March 1 2 3 4 5 6 7 8 9 10 1 General Rides 0.02 0.06 0.06 0.06 0.06 0.07 0.07 0.07 0.07 0.07 2 Snow Park 0.45 1.84 1.87 1.91 1.95 1.99 2.03 2.07 2.11 2.15 Snow Park 3 – 0.45 1.80 1.84 1.87 1.91 1.95 1.99 2.03 2.07 2.11 Power 4 Insurance Cost 0.04 0.04 0.04 0.03 0.03 0.03 0.03 0.02 0.02 0.02 Repairs and 5 0.25 0.31 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 Maintenance Administrative 6 0.04 0.16 0.17 0.17 0.17 0.19 0.19 0.19 0.20 0.20 overheads Sales and 7 marketing 0.11 0.41 0.44 0.44 0.44 0.46 0.46 0.46 0.49 0.49 expenses Total O & M 1.37 4.62 4.77 4.85 4.92 5.04 5.11 5.19 5.31 5.40

6.8 Project Profitability Proposed P&L Statement for the first 10 years (Rs. In Crores) Sl. FY Ending Years st No. 31 March 1 2 3 4 5 6 7 8 9 10 Total 1 2.25 8.23 8.73 8.73 8.73 9.26 9.26 9.26 9.83 9.83 Revenue 2 Total O&M 1.37 4.62 4.77 4.85 4.92 5.04 5.11 5.19 5.31 5.40 3 Net Income 0.88 3.62 3.96 3.88 3.81 4.23 4.15 4.07 4.52 4.44 Lease 4 0.27 1.12 1.18 1.24 1.30 1.36 1.43 1.50 1.58 1.66 Rental 5 Depreciation 0.27 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 6 Interest 0.32 1.27 1.15 0.99 0.84 0.68 0.52 0.36 0.20 0.04 7 PBT 0.02 0.13 0.53 0.56 0.58 1.09 1.11 1.11 1.65 1.64 8 PAT 0.01 0.09 0.36 0.37 0.39 0.73 0.74 0.75 1.10 1.10

6.9 Viability Ratios The key financial indicators for Snow Park project computed are Project IRR (pre-tax and post-tax) and Equity IRR. The project IRR has been calculated based on the project outflows in the form of capital investment while inflow have been considered based on the revenue net of O&M expenses. The equity IRR is based on the equity contribution being made by the investor as an outflow and the inflow is the net cash available for payment of dividend. Thus, the cash flows of the project are given below:

34 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

Cash Flow Statement for the first 10 years Sl. FY Ending Years st No. 31 March 1 2 3 4 5 6 7 8 9 10 Profit Before 1 0.02 0.13 0.53 0.56 0.58 1.09 1.11 1.11 1.65 1.64 Tax Add: Interest 2 0.32 1.27 1.15 0.99 0.84 0.68 0.52 0.36 0.20 0.04 Paid on TL Add: 3 0.27 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 Depreciation 4 Less: Taxes - - (0.10) (0.10) (0.10) (0.20) (0.20) (0.20) (0.30) (0.30) Net cash flows from 5 0.62 2.47 2.67 2.53 2.39 2.64 2.49 2.34 2.61 2.45 operating activities

Estimated Viability Ratios (30-year period)

No Parameter Value 1 Pre-Tax Project IRR 10.27% 2 Post Tax Project IRR 9.99% 3 Equity IRR 9.40%

As per the above viability study, the Internal rate of returns for the equity invested by the developer is 9.40% after deducting the lease rentals to APSACCS which is lower than the benchmark of around 17% - 18% considered for the hospitality industry. However, the project seems to be reasonably viable. Hence, the project has been suggested for the 30 years of Concession Period.

35 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

7. IMPLEMENTATION STRUCTURE

It is proposed to implement the Project through a Public Private Partnership (PPP) model. The PPP approach allows an ideal combination of public interest with private sector efficiency and sensitivity to market requirements. Private Sector tends to be responsive to market requirements and with a motivation to optimize returns brings in efficiency and accountability.

In a PPP, while the private sector shall be responsible for financing, executing and operating the facility, Government shall facilitate the development by providing timely clearances and approvals. The Government shall define minimum development obligations for the private sector, yet leave adequate flexibility for the developer to build the project in response to market demand and hence optimize collective returns.

7.1. Institutional Structure As a standard practice all the demand, financial and Operational risks are normally passed on to the developer and risks related to land matters, security, involvement of other government departments, approvals and bilateral issues etc are retained with the government.

The private developer is selected through a competitive bidding process and would join as a business partner and enter into a Concession Agreement with APSACCS to jointly Develop, Build, Operate and Maintain the Project Facilities over the pre- agreed concession period and Transfer the same to the Grantor or it’s designated agency at the end of the concession period.

A Special purpose company shall be incorporated by the preferred bidder for exclusive implementation & operations of the projects as per the terms of Concession Agreement.

7.2. Payments to APSACCS

On the basis of the financial analysis and the various Sensitivity Analyses in the foregoing section, the recommended project payments are as under:

36 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam

7.2.1. Project Development Fee The Selected bidder / Developer should pay project development fee of about Rs. 0.20 Crore to APSACCS at the time of signing of the lease agreement.

7.2.2. Annual Land Lease Rentals

Selected Bidder/ Developer should pay the quoted amount of the annual lease rent (which is more than 2%) with an increment of 5% every year, for the entire concession period of 30 years, as per the terms specified in Concession/Lease Agreements.

7.2.3. Revenue Share

The developer shall be required to pay an amount equivalent to 2% of the Project Revenue, commencing 10th year from the date of Signing of the Concession Agreement, until the expiry of the Concession Period.

37 Annexure 1 Revenue Projections for the Concession Period (Figures in Rs. crore) Description Units Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26 Mar-27 Mar-28 Mar-29 Mar-30 Mar-31 Mar-32 Mar-33 Mar-34 Mar-35 Mar-36 General Ride INR Crores 0.18 0.64 0.68 0.68 0.68 0.71 0.71 0.71 0.74 0.74 0.74 0.78 0.78 0.78 0.82 0.82 Snow Park INR Crores 1.62 5.94 6.24 6.24 6.24 6.55 6.55 6.55 6.88 6.88 6.88 7.22 7.22 7.22 7.58 7.58 Food Court INR Crores 0.45 1.65 1.82 1.82 1.82 2.01 2.01 2.01 2.21 2.21 2.21 2.44 2.44 2.44 2.69 2.69 Total Revenue INR Crores 2.25 8.23 8.73 8.73 8.73 9.26 9.26 9.26 9.83 9.83 9.83 10.44 10.44 10.44 11.09 11.09

Annexure 1 (continued) Revenue Projections for the Concession Period (Figures in Rs. crore) Description Units Mar-37 Mar-38 Mar-39 Mar-40 Mar-41 Mar-42 Mar-43 Mar-44 Mar-45 Mar-46 Mar-47 Mar-48 Mar-49 Mar-50 Mar-51 Mar-52 General Ride INR Crores 0.82 0.86 0.86 0.86 0.91 0.91 0.91 0.95 0.95 0.95 1.00 1.00 1.00 1.05 1.10 1.16 Snow Park INR Crores 7.58 7.96 7.96 7.96 8.36 8.36 8.36 8.78 8.78 8.78 9.21 9.21 9.21 9.68 10.16 10.67 Food Court INR Crores 2.69 2.96 2.96 2.96 3.27 3.27 3.27 3.60 3.60 3.60 3.97 3.97 3.97 4.38 4.83 5.32 Total Revenue INR Crores 11.09 11.79 11.79 11.79 12.53 12.53 12.53 13.33 13.33 13.33 14.18 14.18 14.18 15.10 16.09 17.14 Annexure 2 O & M Projections for the Concession Period (Figures in Rs. crore) Description Units Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26 Mar-27 Mar-28 Mar-29 Mar-30 Mar-31 Mar-32 Mar-33 Mar-34 Mar-35 Mar-36 O&M - General Ride INR Crores 0.02 0.06 0.06 0.06 0.06 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.08 0.08 0.08 0.08 O&M - INR Crores 0.45 1.84 1.87 1.91 1.95 1.99 2.03 2.07 2.11 2.15 2.19 2.24 2.28 2.33 2.38 2.42 Power - Snow World INR Crores 0.45 1.80 1.84 1.87 1.91 1.95 1.99 2.03 2.07 2.11 2.15 2.19 2.24 2.28 2.33 2.38 Manpower Cost INR Crores Insurance Cost INR Crores 0.04 0.04 0.04 0.03 0.03 0.03 0.03 0.02 0.02 0.02 0.02 0.02 0.01 0.01 0.01 0.01 Repairs and Maintenance INR Crores 0.25 0.31 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 Administrative overheads INR Crores 0.04 0.16 0.17 0.17 0.17 0.19 0.19 0.19 0.20 0.20 0.20 0.21 0.21 0.21 0.22 0.22 Sales and marketing expenses INR Crores 0.11 0.41 0.44 0.44 0.44 0.46 0.46 0.46 0.49 0.49 0.49 0.52 0.52 0.52 0.55 0.55 Variable Cost INR Crores 1.37 4.62 4.77 4.85 4.92 5.04 5.11 5.19 5.31 5.40 5.48 5.61 5.70 5.79 5.92 6.02

Annexure 2 (continued) O & M Projections for the Concession Period (Figures in Rs. crore) Description Units Mar-37 Mar-38 Mar-39 Mar-40 Mar-41 Mar-42 Mar-43 Mar-44 Mar-45 Mar-46 Mar-47 Mar-48 Mar-49 Mar-50 Mar-51 Mar-52 O&M - General Ride INR Crores 0.08 0.08 0.09 0.09 0.09 0.09 0.09 0.09 0.10 0.10 0.10 0.10 0.10 0.11 0.11 0.11 O&M - Snow World INR Crores 2.47 2.52 2.57 2.62 2.67 2.73 2.78 2.84 2.90 2.95 3.01 3.07 3.13 3.20 3.26 3.33 Power - Snow World INR Crores 2.42 2.47 2.52 2.57 2.62 2.67 2.73 2.78 2.84 2.90 2.95 3.01 3.07 3.13 3.20 3.26 Manpower Cost INR Crores Insurance Cost INR Crores 0.01 0.01 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Repairs and Maintenance INR Crores 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 Administrative overheads INR Crores 0.22 0.24 0.24 0.24 0.25 0.25 0.25 0.27 0.27 0.27 0.28 0.28 0.28 0.30 0.32 0.34 Sales and marketing expenses INR Crores 0.55 0.59 0.59 0.59 0.63 0.63 0.63 0.67 0.67 0.67 0.71 0.71 0.71 0.76 0.80 0.86 Variable Cost INR Crores 6.11 6.26 6.36 6.47 6.62 6.73 6.84 7.01 7.12 7.24 7.42 7.54 7.66 7.85 8.05 8.25 Annexure 3 Project Profitability for Snow Park for the Concession Period (Figures in Rs. crore) Description Units Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26 Mar-27 Mar-28 Mar-29 Mar-30 Mar-31 Mar-32 Mar-33 Mar-34 Mar-35 No. of months of Operation No. 3 12 12 12 12 12 12 12 12 12 12 12 12 12 12 Revenue INR Crores 2.25 8.23 8.73 8.73 8.73 9.26 9.26 9.26 9.83 9.83 9.83 10.44 10.44 10.44 11.09 Gross Sales INR Crores 2.25 8.23 8.73 8.73 8.73 9.26 9.26 9.26 9.83 9.83 9.83 10.44 10.44 10.44 11.09 Net Sales INR Crores 2.25 8.23 8.73 8.73 8.73 9.26 9.26 9.26 9.83 9.83 9.83 10.44 10.44 10.44 11.09 O&M - General Ride INR Crores 0.02 0.06 0.06 0.06 0.06 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.08 0.08 0.08 O&M - Snow World INR Crores 0.45 1.84 1.87 1.91 1.95 1.99 2.03 2.07 2.11 2.15 2.19 2.24 2.28 2.33 2.38 Power - Snow World INR Crores 0.45 1.80 1.84 1.87 1.91 1.95 1.99 2.03 2.07 2.11 2.15 2.19 2.24 2.28 2.33 Insurance Cost INR Crores 0.04 0.04 0.04 0.03 0.03 0.03 0.03 0.02 0.02 0.02 0.02 0.02 0.01 0.01 0.01 Repairs and Maintenance INR Crores 0.25 0.31 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 Administrative overheads INR Crores 0.04 0.16 0.17 0.17 0.17 0.19 0.19 0.19 0.20 0.20 0.20 0.21 0.21 0.21 0.22 Sales and marketing expenses INR Crores 0.11 0.41 0.44 0.44 0.44 0.46 0.46 0.46 0.49 0.49 0.49 0.52 0.52 0.52 0.55 Total Costs INR Crores 1.37 4.62 4.77 4.85 4.92 5.04 5.11 5.19 5.31 5.40 5.48 5.61 5.70 5.79 5.92 Lease Rentals INR Crores 0.27 1.12 1.18 1.24 1.30 1.36 1.43 1.50 1.58 1.66 1.74 1.83 1.92 2.01 2.11 EBITDA INR Crores 0.61 2.50 2.78 2.65 2.51 2.87 2.72 2.57 2.94 2.78 2.61 3.00 2.83 2.64 3.05 EBITDA Margin % 27.24% 30.31% 31.84% 30.33% 28.77% 30.93% 29.36% 27.73% 29.91% 28.27% 26.57% 28.78% 27.06% 25.29% 27.52% Depreciation INR Crores 0.27 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 Operating Cost INR Crores 1.91 6.83 7.05 7.18 7.32 7.49 7.64 7.79 7.99 8.15 8.32 8.53 8.71 8.90 9.13 EBIT (Operating Profit) INR Crores 0.34 1.40 1.68 1.55 1.42 1.77 1.62 1.47 1.85 1.68 1.52 1.91 1.73 1.54 1.96 Operating Profit Margin % 15.04% 17.00% 19.29% 17.78% 16.21% 19.10% 17.53% 15.90% 18.77% 17.12% 15.42% 18.28% 16.56% 14.79% 17.64% Interest - Term Loan INR Crores 0.32 1.27 1.15 0.99 0.84 0.68 0.52 0.36 0.20 0.04 (0.00) - Profit Before Tax INR Crores 0.02 0.13 0.53 0.56 0.58 1.09 1.11 1.11 1.65 1.64 1.52 1.91 1.73 1.54 1.96 PBT % % 1% 1.60% 6.08% 6.39% 6.65% 11.80% 11.94% 12.03% 16.74% 16.67% 15.42% 18.28% 16.56% 14.79% 17.64% Tax expense INR Crores 0.00 0.03 0.11 0.11 0.12 0.22 0.23 0.23 0.34 0.33 0.52 0.66 0.63 0.60 0.73 Deferred Tax Assets/ Liabilities INR Crores 0.00 0.02 0.07 0.07 0.07 0.14 0.14 0.14 0.21 0.21 (0.02) (0.03) (0.06) (0.09) (0.08) Profit After Tax INR Crores 0.01 0.09 0.36 0.37 0.39 0.73 0.74 0.75 1.10 1.10 1.01 1.28 1.16 1.03 1.31 Net Profit (%) % 0.58% 1.07% 4.07% 4.28% 4.45% 7.90% 7.99% 8.05% 11.21% 11.16% 10.32% 12.24% 11.09% 9.90% 11.81% Annexure 3 (continued) Project Profitability for Snow Park for the Concession Period (Figures in Rs. crore) Description Units Mar-36 Mar-37 Mar-38 Mar-39 Mar-40 Mar-41 Mar-42 Mar-43 Mar-44 Mar-45 Mar-46 Mar-47 Mar-48 Mar-49 No. of months of Operation No. 12 12 12 12 12 12 12 12 12 12 12 12 12 12 Revenue INR Crores 11.09 11.09 11.79 11.79 11.79 12.53 12.53 12.53 13.33 13.33 13.33 14.18 14.18 14.18 Gross Sales INR Crores 11.09 11.09 11.79 11.79 11.79 12.53 12.53 12.53 13.33 13.33 13.33 14.18 14.18 14.18 Net Sales INR Crores 11.09 11.09 11.79 11.79 11.79 12.53 12.53 12.53 13.33 13.33 13.33 14.18 14.18 14.18 O&M - Snow Park INR Crores 2.42 2.47 2.52 2.57 2.62 2.67 2.73 2.78 2.84 2.90 2.95 3.01 3.07 3.13 Power - Snow Park INR Crores 2.38 2.42 2.47 2.52 2.57 2.62 2.67 2.73 2.78 2.84 2.90 2.95 3.01 3.07 Insurance Cost INR Crores 0.01 0.01 0.01 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Repairs and Maintenance INR Crores 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 Administrative overheads INR Crores 0.22 0.22 0.24 0.24 0.24 0.25 0.25 0.25 0.27 0.27 0.27 0.28 0.28 0.28 Sales and marketing expenses INR Crores 0.55 0.55 0.59 0.59 0.59 0.63 0.63 0.63 0.67 0.67 0.67 0.71 0.71 0.71 Total Costs INR Crores 6.02 6.11 6.26 6.36 6.47 6.62 6.73 6.84 7.01 7.12 7.24 7.42 7.54 7.66 Lease Rentals INR Crores 2.22 2.33 2.45 2.57 2.70 2.83 2.97 3.12 3.28 3.44 3.61 3.79 3.98 4.18 EBITDA INR Crores 2.85 2.65 3.08 2.85 2.62 3.07 2.83 2.57 3.04 2.76 2.48 2.97 2.66 2.34 EBITDA Margin % 25.73% 23.86% 26.11% 24.21% 22.25% 24.54% 22.55% 20.49% 22.82% 20.74% 18.58% 20.96% 18.77% 16.49% Depreciation INR Crores 1.10 0.69 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 Operating Cost INR Crores 9.33 9.13 8.90 9.13 9.36 9.65 9.90 10.16 10.48 10.76 11.05 11.41 11.72 12.04 EBIT (Operating Profit) INR Crores 1.76 1.96 2.88 2.66 2.43 2.88 2.63 2.37 2.85 2.57 2.28 2.78 2.47 2.15 Operating Profit Margin % 15.84% 17.65% 24.47% 22.57% 20.61% 22.99% 21.01% 18.95% 21.37% 19.29% 17.12% 19.59% 17.40% 15.13% Interest - Term Loan INR Crores Profit Before Tax INR Crores 1.76 1.96 2.88 2.66 2.43 2.88 2.63 2.37 2.85 2.57 2.28 2.78 2.47 2.15 PBT % % 15.84% 17.65% 24.47% 22.57% 20.61% 22.99% 21.01% 18.95% 21.37% 19.29% 17.12% 19.59% 17.40% 15.13% Tax expense INR Crores 0.69 0.65 0.78 0.72 0.67 0.80 0.74 0.67 0.81 0.73 0.66 0.80 0.71 0.63 Deferred Tax Assets/ Liabilities INR Crores (0.11) 0.00 0.18 0.16 0.14 0.15 0.13 0.11 0.14 0.12 0.10 0.12 0.10 0.08 Profit After Tax INR Crores 1.18 1.31 1.93 1.78 1.63 1.93 1.76 1.59 1.91 1.72 1.53 1.86 1.65 1.44 Net Profit (%) % 10.60% 11.82% 16.38% 15.11% 13.79% 15.39% 14.06% 12.68% 14.30% 12.91% 11.46% 13.11% 11.65% 10.12% Annexure 4 Cash Flows for Snow Park for the Concession Period (Figures in Rs. crore) Description Units Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26 Mar-27 Mar-28 Mar-29 Mar-30 Mar-31 Mar-32 Mar-33 Mar-34 Cash Flows From Operating Activities Profit Before Tax INR Crores 0.02 0.13 0.53 0.56 0.58 1.09 1.11 1.11 1.65 1.64 1.52 1.91 1.73 1.54 Add Interest Paid on TL INR Crores 0.32 1.27 1.15 0.99 0.84 0.68 0.52 0.36 0.20 0.04 (0.00) - - - Add Depreciation INR Crores 0.27 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 Add Preliminary Expenses written off INR Crores less: taxes INR Crores 0.0 (0.0) (0.1) (0.1) (0.1) (0.2) (0.2) (0.2) (0.3) (0.3) (0.5) (0.7) (0.6) (0.6) Net cash flows from operating activities INR Crores 0.62 2.47 2.67 2.53 2.39 2.64 2.49 2.34 2.61 2.45 2.09 2.35 2.19 2.04 Cash Flows From Investing Activities Capital Expenditure INR Crores (10.05) (10.32) ------Preliminary Expenses INR Crores ------Net cash provided by Investment activities INR Crores (10.05) (10.32) ------Cash Flows from Financing Activities Promoters' contribution INR Crores 5.02 5.16 ------Long-Term Debt INR Crores 5.02 5.16 ------Interest on LT Debt INR Crores (0.32) (1.27) (1.15) (0.99) (0.84) (0.68) (0.52) (0.36) (0.20) (0.04) 0.00 - - - Repayment of LT Debt INR Crores - - (0.32) (1.27) (1.27) (1.27) (1.27) (1.27) (1.27) (1.27) (0.95) - - - - Net cash provided (used) by financing activities INR Crores 10.05 10.00 (1.59) (2.43) (2.27) (2.11) (1.95) (1.79) (1.63) (1.47) (1.00) 0.00 - - - Net increase (decrease) in cash INR Crores - 0.30 0.88 0.25 0.27 0.29 0.69 0.70 0.71 1.13 1.45 2.09 2.35 2.19 2.04 Cash at beginning of period INR Crores - - 0.30 1.18 1.43 1.69 1.98 2.67 3.38 4.09 5.22 6.67 8.76 11.10 13.30 Cash at the end of period INR Crores - 0.30 1.18 1.43 1.69 1.98 2.67 3.38 4.09 5.22 6.67 8.76 11.10 13.30 15.34 Annexure 4 (continued) Cash Flows for Snow Park for the Concession Period (Figures in Rs. crore) Description Units Mar-35 Mar-36 Mar-37 Mar-38 Mar-39 Mar-40 Mar-41 Mar-42 Mar-43 Mar-44 Mar-45 Mar-46 Mar-47 Mar-48 Mar-49 Cash Flows From Operating Activities Profit Before Tax INR Crores 1.96 1.76 1.96 2.88 2.66 2.43 2.88 2.63 2.37 2.85 2.57 2.28 2.78 2.47 2.15 Add Interest Paid on TL INR Crores ------Add Depreciation INR Crores 1.10 1.10 0.69 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 0.19 Add Preliminary Expenses written off INR Crores less: taxes % (0.7) (0.7) (0.6) (0.8) (0.7) (0.7) (0.8) (0.7) (0.7) (0.8) (0.7) (0.7) (0.8) (0.7) (0.6) Net cash flows from operating activities INR Crores 2.32 2.16 2.00 2.30 2.13 1.95 2.28 2.09 1.90 2.24 2.03 1.82 2.17 1.95 1.71 Cash Flows From Investing Activities Capital Expenditure INR Crores ------Preliminary Expenses INR Crores ------Net cash provided by Investment activities INR Crores ------Cash Flows from Financing Activities Promoters' contribution INR Crores ------Long-Term Debt INR Crores Interest on LT Debt INR Crores ------Repayment of LT Debt INR Crores Net cash provided (used) by financing activities INR Crores ------Net increase (decrease) in cash INR Crores 2.32 2.16 2.00 2.30 2.13 1.95 2.28 2.09 1.90 2.24 2.03 1.82 2.17 1.95 1.71 Cash at beginning of period INR Crores 15.34 17.66 19.82 21.82 24.12 26.25 28.21 30.48 32.57 34.47 36.70 38.74 40.55 42.73 44.68 Cash at the end of period INR Crores 17.66 19.82 21.82 24.12 26.25 28.21 30.48 32.57 34.47 36.70 38.74 40.55 42.73 44.68 46.39