Road Development In Monthly – June 2020

 Policy and Regulatory Developments  New Developments  Upcoming Tenders and Bid Postponements  Project Updates  Key Data and Statistics

1 Roads Monthly Policy and Regulatory Initiatives

Key Policy Developments

Government plans to revamp NHAI

• To make highway projects more financially viable, the Ministry of Road Transport and Highways (MoRTH) is planning to revamp the National Highways Authority of India (NHAI). The ministry has reportedly asserted that the need of the hour is to devise bankable projects suitable for the market with acute precision and accuracy.

NHAI to offer smaller bundles under TOT

• Reportedly, NHAI will now offer smaller bundles of operational assets worth Rs 5 billion and above, under its asset monetisation programme through the TOT model. • The proposal has been mooted by MoRTH keeping in mind the limited financial capability of the domestic investors. Large assets on offer could be taken up only by big-pocket foreign investors in the current scenario.

MoRTH to bid out more projects on EPC mode

• Reportedly, MoRTH has planned to bid out more projects on engineering, procurement and construction (EPC) mode. The ministry claims that the number of companies which could arrange finance and take projects is much lower compared to EPC firms. • According to the ministry, the current market conditions may not support build-operate-transfer (BOT) projects but the investor interest level must be gauged. • Besides, delay in financial closures on projects implemented on hybrid annuity model (HAM) has also encouraged MoRTH to focus on impending projects on EPC mode and later monetise them.

NHAI becomes first construction sector organisation to go 'fully digital’

• NHAI has gone ‘fully digital’, with the launch of cloud-based and artificial intelligence-powered Big Data Analytics platform – Data Lake and Project Management Software in view of the deadly Covid-19 pandemic. • With advance analytics, the Data Lake software will forecast the delays, likely disputes, and will give advance alerts.

2 Roads Monthly New Developments

Covid-19-related Developments

• Amid the Covid-19 outbreak, fundraising plans for NHAI may be reworked by the central government. The government has already formed a panel to rework financing for NHAI and may invite some unconventional ideas to optimise future investments by the authority.

• The Delhi High court (HC) has issued a notice to Centre, RBI and NHAI on a plea seeking a onetime restructuring of loans by all banks and Nonbanking Finance Companies (NBFCs) to the petitioners in wake of the lockdown in the country and keeping in view the spread of Covid-19. • The plea seeks direction to allow a one-time restructuring of loans as a relief measure to the industries/ companies/ retail customers so they are not classified under non-performing assets (NPA) after the lockdown is lifted. • The plea also seeks direction to the respondents of extending the period of moratorium on payment of all term loans, and working capital facilities till the final disposal of the petition.

• The slow transmission of the RBI’s prescribed bank rate cuts in project lending rates will impact debt service coverage ratios in operational HAM based projects, according to a note by ratings agency India Ratings and Research. • Sluggish transmission in project’s interest rate was not originally envisaged by developers during the bidding stage and therefore may also impact their equity returns. • While NHAI bound concessions receive grants on a timely basis, a concession grantor with a weak credit profile, late annuity payments combined with delayed transmission could pose a risk to HAM projects. • NHAI plans to release monthly grants proportionate to the completion of project construction, and the agency believes this will have a salutary effect on the working capital requirements of developers.

• Expediting settlement of claims through conciliation, NHAI has settled claims worth Rs 133.49 billion for Rs 37.43 billion, since 2017-18. • In its endeavour for faster settlement of claims and reducing liabilities thereby, NHAI has rigorously started the process of conciliation by constituting three Conciliation Committees of Independent Experts (CCIE) of three members each. Till date, about 108 cases have been referred to CCIE.

3 Roads Monthly New Developments

Covid-19-related Developments

• Reportedly, most of the 162 build-operate-transfer (BOT-toll) concessionaires, including private equity players, have decided to take the arbitration route to recover about Rs 6.5 billion as interest and operation and maintenance (O&M) costs from NHAI for the 25-day toll collection suspension period. • The concessionaires are allegedly upset with NHAI for not declaring the toll collection suspension period during the COVID-19 pandemic as a force majeure political event, and thus rescuing itself from compensating the loss to concessionaires on the O&M and interest costs.

• The Delhi High Court has directed that ‘status quo’ shall be maintained in respect of invocation of bank guarantees and other securities on a plea by Skylark Infra Engineering Private Limited against NHAI and MoRTH, in a dispute arising due to lack of toll collection on account of COVID-19 in respect of the contracts relating to the toll plazas in Assam and Meghalaya. • The court added in its order that the petitioner shall continue to deposit the entire toll collected at the various toll plazas with NHAI, after deducting the retention amount as per the respective contracts. • The petitioner had stated that the COVID-19 lockdown and toll suspension has affected the company's toll collections and payments to NHAI.

• According to CRISIL, the revenue earned by EPC companies in the roads sector is expected to contract by 8-10 per cent in 2020-21, with the COVID-19 pandemic-driven lockdowns severely curtailing activity. • With a slow award activity by NHAI in the last two fiscals, revenue growth was expected to taper to some extent. However, this fiscal, the slowdown in execution due to lockdowns and the resultant labour shortage is expected to push revenue growth into negative territory. • Besides, the pickup in execution and mobilisation after the lifting of the lockdown will be gradual.

4 Roads Monthly New Developments

Covid-19-related Developments

• Highway developers have urged NHAI to widen compensation coverage and treat Covid-19 impact at par with demonetisation. The National Highways Builders Federation (NHBF) has requested NHAI to extend Covid-19 related relief to all operating projects regardless of them being old, and not keep it limited to the model concession agreement (MCA). • The industry body claims that there has been an unprecedented drop in traffic. Various states ordering lockdown, despite central government lifting traffic restrictions, has made the situation worse for highway developers and operators. • It has also for treating the pandemic-afflicted lockdown as political force majeure event and demanded more support from NHAI.

• According to ICRA, the extension in concession period by NHAI with the idea of compensating companies for loss in toll collection during the first phase of the nationwide lockdown fails to be adequate, as it does not compensate for loss in net present value terms for majority of BOT (toll) projects. • The recent relief package announced by NHAI for BOT (toll) concessionaires has two parts- the revenue loss during and after toll suspension period will be compensated in the form of extension by three to six months in concession period and, covid-19 loan is provided for concessionaires to the extent relief is not granted under moratorium under RBI guidelines. • ICRA claims that this approach may end up becoming contentious with concessionaires disputing the proposed relief measures. • Besides, this measure discriminates between concessionaires, since entities that have not opted for loan moratorium earlier are better off – they would now have access to covid-19 loan from NHAI at a much cheaper rate of bank rate plus 200 bps with flexible repayment terms.

5 Roads Monthly New Developments

Other Key Developments

Loans/Bonds

• NHAI will go ahead with a plan to raise Rs 500 billion through a special purpose vehicle (SPV) with the National Investment and Infrastructure Fund (NIIF) for the Delhi-Mumbai expressway project. Reportedly, the authority is expected to appoint a merchant banker soon in this regard. • NHAI’s external financing route has been approved by the Ministry of Finance recently, and the financing model is expected to be finalised by end-July 2020.

• Reportedly, Cube Highways and Infrastructure Pte. Limited is likely to raise funds worth about Rs 35 billion from the State Bank of India (SBI) to fund its purchase of long-term toll collection rights under the toll-operate-transfer (TOT) model. • Thus, Cube Highways, which has been declared as the highest bidder for TOT Bundle III, is set to achieve financial closure for the same soon. • Cube Highways needs to pay Rs 50.11 billion to NHAI for the deal, of which more than 25 per cent is expected to be put in by the company promoters. The rest will be funded by the long-term SBI loan, negotiations on the final terms of which are currently going on.

• The Expressways Industrial Development Authority (UPEIDA) has signed a loan agreement worth Rs 15 billion with the Bank of India (BoI) and the Central Bank of India (CBI) for the - expressway project ( expressway). • With the new agreement, the total loan amount from various banks for the expressway has crossed Rs 105 billion. • The project involves construction of a 340.82 km access-controlled greenfield expressway from Chandsarai node near Lucknow to Haideria node in the district of Uttar Pradesh at an estimated cost of Rs 225 billion.

6 Roads Monthly New Developments

Other Key Developments

Loans/Bonds

• The Punjab National Bank (PNB) has released funds worth Rs 7.5 billion as the first installment to the Uttar Pradesh government for the Gorakhpur Link six-lane expressway project (NH27, SH-5). • Of the total civil work cost of Rs 58.77 billion, funds worth Rs 22.5 billion have been sought from a consortium of banks, of which PNB approved a Rs 7.5 billion loan. • Meanwhile, the Union Bank of India (UBI) and Canara Bank have granted in-principle approval for funds worth Rs 2.5 billion and Rs 3 billion, respectively. Besides, funds worth Rs 10 billion have been sought from the Indian Bank and are yet to be approved.

• IRB MP Expressway Private Limited, a special purpose vehicle (SPV) of IRB Infrastructure Developers Limited has achieved financial closure for its first TOT project, the Mumbai-Pune Expressway. • IRB had been managing the tolling and operations of the expressway for 15 years until August 2019, following which the Maharashtra State Road Development Corporation (MSRDC) called for bids for a new tolling contract of 10 years and two months. IRB won the bid in February 2020. • IRB is required to pay Rs 82.62 billion to the state agency for the deal, and the payments will be made in multiple tranches. The company tied up the funds required for the tolling contract from a SBI-led consortium that included Union Bank of India, and made an upfront payment of Rs 65 billion as Tranche I payment to MSRDC.

• Ashoka Buildcon Limited is likely to achieve financial closure for Package III and IV of Tumkur-Shivamogga highway project and KandiRamsanpalle highway project by September 2020. • Besides, the construction work on the three projects is expected to commence by October 2020.

7 Roads Monthly New Developments

Other Key Developments

InvITs

• NHAI has set up a four-member search-cum-selection panel to manage its Infrastructure Investment Trust (InvIT). • The authority is in the process of setting up an InvIT. As a part of the process, a new company is being set up to act as the investment manager to the proposed InvIT. • The idea is to set up a competent entity of experts that can professionally run the infrastructure trust to mobilise resources from the market for monetising completed highway projects of NHAI. • NHAI has already filed papers with the Securities Exchange Board of India (SEBI) to launch its first InvIT. • The authority plans to offer 19 projects worth Rs 350 billion under the InvIT model, of which two-three projects worth Rs 50-60 billion are expected to be taken up first.

8 Roads Monthly Upcoming Tenders and Bid Postponements

Key Bid Postponements Total Bid Due Date Implementing agency Project State Extension Appointment of contractor for four-laning of Rajauli-Bakhtiyarpur section of July 13, 2020 to NHAI NH-31 (new NH-20) from km 101.63 to km 152.52 (Package-III) on hybrid August 10, 2020 annuity model in Bihar.

Appointment of contractor for four-laning of Rajauli-Bakhtiyarpur section of July 9, 2020 to NHAI NH-31 (new NH-20) from km 54.41 to km 101.63 (Package-II) on hybrid Bihar August 10, 2020 annuity model in Bihar.

Appointment of EPC contractor for four-laning of -Pararia section of NH- April 13, 2020 to NHAI 319 (old NH-30) from km 0 to km 54.53 (design chainage) in Bihar under Bihar August 6, 2020 Phase I of Bharatmala Pariyojana Phase-I (Package I). Appointment of EPC contractor for four-laning of Pararia-Mohania section of April 13, 2020 to NHAI NH-319 (old NH-30) from km 54.53 to km 115.33 (design chainage) in Bihar Bihar August 6, 2020 under Phase I of Bharatmala Pariyojana Phase-I (Package II). Appointment of EPC contractor for construction of eight-lane access- controlled expressway starting from junction with SH-152 near Matariya Vadi March 30, 2020 to NHAI Gujarat and near Bhamaiya village in Panchmahal district (Ch.756.052-781.282) August 20, 2020 section of Delhi-Vadodara Greenfield Alignment under Bharatmala Pariyojana Appointment of EPC contractor for construction of eight-lane access- controlled expressway starting after the end of Bridge over Hadaf River near March 30, 2020 to NHAI Hathiyavan village with SH-152 near Matariya Vadi in Panchmahal Gujarat August 20, 2020 (Ch.729.700-756.052) of Delhi-Vadodara Greenfield Alignment under Bharatmala Pariyojana in Gujarat. Source: NHAI

9 Roads Monthly Upcoming Tenders and Bid Postponements

Key Bid Postponements Total Bid Due Date Implementing agency Project State Extension Appointment of EPC contractor for construction of eight-lane access- controlled expressway starting starting near Junction with NH-12 near village March 16, 2020 to NHAI Ummedpura to Major bridge over Takli river near Nayagaon Jageer village Gujarat August 6, 2020 (Ch.419.000-427.300) section of Delhi-Vadodara Greenfield Alignment under Bharatmala Pariyojana in Gujarat. Appointment of contractor for four-laning of Dewas-Ujjain from Design Ch.0.000-19.733, construction of four-lane Ujjain Bypass Ch.19.733-26.900 Madhya February 17, 2020 to NHAI (Part-I) and construction of four-lane Dewas Bypass from design Ch.0.000- Pradesh August, 2020 14.520 (Part-II) with a total design length of 41.42 km in Madhya Pradesh on hybrid annuity model. Appointment of contractor for construction of eight-lane access-controlled expressway from km 103.4 to km 128 of Vadodara-Mumbai expressway January 3, 2020 to NHAI Gujarat (Talasari to Karvad Section) on hybrid annuity model under Phase I of August 18, 2020 Bharatmala Pariyojana (Package X). Appointment of contractor for construction of eight-lane access-controlled January 3, 2020 to NHAI expressway from km 154.6 to Km 190 of Vadodara-Mumbai expressway Gujarat August 18, 2020 (Jujuwa to Gandeva section) on hybrid annuity model (Package VIII). Appointment of contractor for construction of eight-lane access-controlled expressway from km 128 to km 154.6 of Vadodara-Mumbai Expressway January 3, 2020 to NHAI Gujarat (Karvad to Jujuwa section) in Gujarat on hybrid annuity model under Phase I August 18, 2020 of Bharatmala Pariyojana (Package IX).

Source: NHAI

10 Roads Monthly Upcoming Tenders and Bid Postponements

Upcoming Tenders Implementing Cost (Rs Bid Issue Bid due Scope of the project agency billion) Date date 4-laning of Dhangaon Boregaon section of NH-347BG 753L (Indore to Boregaon Pkg July 6, August 20, NHAI IV) Design Ch. 81.000 to 139.000 (Length 58.000 Km) under Bharatmala Pariyojana 6.85 2020 2020 PhaseI in Madhya Pradesh on Hybrid Annuity Mode

Appointment of Safety Consultant for Construction of Road tunnel Viaduct and July 6, August 4, NHAI NA Churhat Bypass of Rewa Sidhi section of NH 75E from Km 33.200 to Km 55.400 2020 2020

IE Services for O and M of Four laning of Biaora to Dewas Section from km 426.100 to NHAI July 4, August 3, km 566.450 of NH3 in the State of MP under NHDP PhaseIV in BOT (Toll) basis on NA 2020 2020 DBFOT pattern Independent Engineer services for Improvement and Construction of Ahmednagar NHAI bypass Design Ch. km 0.000 to km 40.60 Existing Ch. 163.400 of Sinnar Shirdi July 2, August 3, NA Ahmednagar NH-160 road to km 228.700 of NH-222 new NH-61 in the State of 2020 2020 Maharashtra on HAM Independent Engineer services for balance works for Four Laning of Amravati Chikhli July 2, August 3, NHAI section of NH 6 Package IV from km 315.000 Near Nandura to km 360.000 Near NA 2020 2020 Chikhli in the state of Maharashtra to be executed on HAM under BMP Consultancy Services as IE during Operation, Maintenance and user fee collection of July 2, August 13, NHAI 4/6 lane divided carriageway facility of Nelamangala Junction on NH4 with NH48 to NA 2020 2020 Devihalli from Km. 28/20 to Km 110/0 Independent Engineer services for Balance works for Four Laning of Amravati Chikhli July 2, August 3, NHAI section of NH-6 Package III from km 270.000 Near Shelad to km 315.000 Near NA 2020 2020 Nandura in the state of Maharashtra to be executed on HAM under BMP. Independent Engineer services for Balance works for Four Laning of Amravati-Chikhli July 2, August 3, NHAI section of NH-6 Pkg II from km 220.000 Near Kurankhed to km 270.000 Near Shelad in NA 2020 2020 the state of Maharashtra to be executed on HAM under BMP Source: NHAI

11 Roads Monthly Upcoming Tenders and Bid Postponements

Upcoming Tenders Implementing Cost (Rs Bid Issue Bid due Scope of the project agency billion) Date date Independent Engineer services for balance work for Four Laning of Amravati Chikhli July 2, August 3, NHAI section of NH-6 Package-1 from km 166.000 Amravati to km 220.000 Near Kurankhed NA 2020 2020 in the state of Maharashtra to be executed on HAM under BMP Independent Engineer Services for Four-Laning of Viluppuram-Puducherry section of June 26, August 10, NHAI NH-45A (New NH-332) from km 0 to km 29 (Design Chainage) under Bharatmala NA 2020 2020 Pariyojana Phase I (Residual NHDP IV works) on HAM in Tamil Nadu and Puducherry Consultancy services for Independent Engineer for supervision of Construction of Six NHAI Lane access controlled Highway from DND Maharani Bagh to Junction with Jaitpur- June 26, August 20, NA Pushta Road Section of NH-148NA (Design Ch. 0.000 to 9.000) in Delhi on HAM under 2020 2020 BMP Construction of 6 Lane Grade Separated structures along with SR ITC Junction in NHAI Kurnool Town Kambalapadu Junction Dhone Dhone Exit Dhone and SR from Km June 24, August 6, 1.07 204.800 to Km 205.800 Both Sides RHS Both Sides on NH 44 old NH 07 in the State of 2020 2020 AP on EPC mode Independent Engineer services for construction of 4-laning of Dhangaon Boregaon June 24, August 10, NHAI section of NH-347BG 753L (Indore to Boregaon Pkg IV) Design Ch. 81.000 to 139.000 NA 2020 2020 (Length 58.000 Km) under Bharatmala Pariyojana Phase I in MP on Hybrid Annuity. IE services of 4laning Dewas Ujjain sectionOld SH18 from DesignCh. 0to 19.733 Construction of 4lane Ujjain Bypass Design Ch. 19.733 to 26.900 and construction June 24, August 10, NHAI NA 4lane Dewas BypassDesign Ch. 0 to 14.520 (PartII)design length of 41.42 km in MP on 2020 2020 HAM. Independent Engineer services for construction of Four laning of Harda Betul section June 24, August 10, NHAI of NH-47 from Chicholi Existing Ch. Km 235.800/ Design Ch. Km 81.000 to Betul NA 2020 2020 existing chainage km 275.000/Design Ch. Km 121.248 (length 40.248 km) in MP IE services for construction of Four laning of Nanasa to Pidgaon section of NH47 (Old June 24, August 10, NHAI NH59A) (Indore Harda Pkg-III) (Length-47.445 km) Design Ch. 95.000 Km to 142.445 NA 2020 2020 km under Bharatmala Pariyojana Phase-I (Economic Corridor) in MP on HAM Mode. Source: NHAI

12 Roads Monthly Upcoming Tenders and Bid Postponements

Upcoming Tenders Implementing Cost (Rs Bid Issue Bid due Scope of the project agency billion) Date date Independent Engineer services for construction of Four laning of Harda to Temagav section from(Design Ch. 0.000 Existing Ch 141.750)to(Design Ch.30.000 Existing June 23, August 6, NHAI NA Ch.180.500)section of NH-47(Old NH-59A)(Design Length 30.000km)in the State of 2020 2020 MP. Construction of 8Lane AC expressway starting from MP-Gujarat Border near Chhayan village and ending after Bridge Over Hadaf River near Hathiyavan village (Ch.696.920 June 23, August 27, NHAI 14.18 to 729.755) section of Delhi-Vadodara GA(NH-148N) on EPC Mode under BMP in 2020 2020 Gujarat 6-laning of Kanhauli-Ramnagar section of SH-78 (declaration of NH under NHAI June 19, August 6, consideration) from design Ch.Km 0.000 to Km 39.160 on EPC Mode in the State of 7.27 2020 2020 Bihar under Bharatmala Pariyojana

Consultancy services for IE for supervision of Construction of Eight lane access NHAI June 15, August 6, controlled Expressway from Km 190.00 to Km 254.430 of Vadodara Mumbai 28.94 2020 2020 Expressway (Gandeva to Kim Section) in the State of Gujarat on HAM under BP.

CS for IE for supervision of Construction of 6 Lane ACR with Jaitpur Pushta Road to June 15, August 6, NHAI 20.07 JunctionNH148NSection of NH148NA Design Ch. 9.000 to 59.063 2020 2020

Four laning of Rajauli-Bakhtiyarpur section of NH-31 New NH-20 from Km 101.630 to May 28, August 10, NHAI 19.89 Km 152.520 Pkg-III on Hybrid annuity mode in the State of Bihar 2020 2020

Four laning of Rajauli Bakhtiyarpur section of NH-31(New NH20) from Km 54.405 to May 26, August 10, NHAI 8.46 Km101.630 (Package II) on Hybrid annuity mode in the State of Bihar 2020 2020 4 laning of Arrah to Pararia section of NH-319 old NH-30 from km 0.000 to km 54.530 February August 6, NHAI design chainage in the state of Bihar under Bharatmala Pariyojana Phase-I on EPC 6.90 27, 2020 2020 mode package I Source: NHAI

13 Roads Monthly Upcoming Tenders and Bid Postponements

Upcoming Tenders Implementing Cost (Rs Bid Issue Bid due Scope of the project agency billion) Date date 4 laning of Pararia to Mohania section of NH-319 old NH-30 from km 54.53 to km February August 6, NHAI 115.33 (design chainage) in Bihar under Bharatmala Pariyojana Phase-I on EPC mode 7.28 27, 2020 2020 package II

Construction of 8Lane access-controlled expressway starting from junction with SH- February August 20, NHAI 152 near Matariya Vadi and near Bhamaiya village in Panchmahal district (Ch.756.052- 8.03 21, 2020 2020 781.282) section of Delhi-Vadodara GAon EPC Mode under BMP in Gujarat Construction of 8Lane access-controlled expressway starting after the end of Bridge NHAI over Hadaf River near Hathiyavan village with SH-152 near Matariya Vadi in February August 20, 8.74 Panchmahal (Ch.729.700-756.052) of Delhi-Vadodara GA on EPC Mode under BMP in 21, 2020 2020 Gujarat Construction of 8 Lane Expressway starting near Junction with NH-12 near village NHAI Ummedpura to Major bridge over Takli river near Nayagaon Jageer village January August 6, 12.37 (Ch.419.000-427.300) section of Delhi-Vadodara GFA (NH-148N) under BMP in 30, 2020 2020 Rajasthan on EPC Mode 4-Laning of Dewas Ujjain from Design Ch.0.000-19.733 Construction of 4-Lane Ujjain Bypass Ch.19.733-26.900 (Part-I) and construction of 4-Lane Dewas Bypass from January 1, August 4, NHAI 5.96 Design Ch.0.000-14.520 (Part-II) with a total design length of 41.42 km in MP on HAM 2020 2020 Mode Construction of Eight lane access controlled Expressway from Km 103.400 to Km 128.000 of Vadodara Mumbai Expressway (Talasari to Karvad Section) in the State of November August 18, NHAI 9.81 Gujarat UT of DNH and Maharashtra on HAM under Bharatmala Pariyojana (Phase 15, 2019 2020 IPackage X). Construction of Eight lane access controlled Expressway from Km 154.600 to Km November August 18, NHAI 190.000 of Vadodara Mumbai Expressway Jujuwa to Gandeva Section in the State of 14.07 14, 2019 2020 Gujarat on HAM under BMP Phase I-Pkg VIII

Source: NHAI, MoRTH

14 Roads Monthly Upcoming Tenders and Bid Postponements

Upcoming Tenders Implementing Cost (Rs Bid Issue Bid due Scope of the project agency billion) Date date Construction of Eight lane access controlled Expressway from km 128.000 to km November August 18, NHAI 154.600 of Vadodara Mumbai Expressway (karvad to jujuwa section) in the state of 9.73 14, 2019 2020 Gujarat on Hybrid Annuity mode under Bharatmala Pariyojna (Phase I-Package IX)

Consultancy services for Authority Engineer for Supervision of Construction of New Six July 3, August 3, MoRTH Lane Bridge including its approaches across River Ganga on NH-96 (New NH-330) at NA 2020 2020 Phaphamau, Prayagraj in Uttar Pradesh on EPC mode Consultancy services for Authority Engineer for Supervision of Widening Strengthening of existing IL or 2lane to 2lane with PS from km 678.555 to km 699.655 July 2, August 4, MoRTH NA of Nirmal to Khanapur section of NH 61 Extended in the state of Telangana on EPC 2020 2020 mode Design and Construction of Sungal Tunnel Total Length of Tunnel 2.79 km including approaches from Existing Chainage Km 49/150 to Km 64/535 Design Chainage Km July 1, August 18, MoRTH 6.34 46.450 to Km 55.800 to 2Lane with Paved Shoulder Pkg II under 13 TF on Akhnoor 2020 2020 Poonch Road. Consultancy services for Authoritys Engineer supervision of Civil Construction work for June 29, August 13, MoRTH Rehabilitation and up-gradation of NH-544E from Km 56/803 to Km 99/179 of NA 2020 2020 Madakasira to Sira section (till AP/Knt border) to two lane with paved shoulder in AP Widening from two lane with paved shoulder to Four Lane from Km 51.4 to 52.8,55.9 June 18, August 5, MoRTH to 56.8,57.0 to 57.8 including Construction of Centre Median at selected stretches of 0.1 2020 2020 NH 532 in the State of Tamil Nadu on Engineering Procurement Construction (EPC) Construction of New 4-lane Bridge Across River Kosi at Phulaut including Rehabilitation and Upgradation of existing Birpur-Bihpur Section of NH-106 from km June 12, September MoRTH 11.69 106.000 to km. 136.000 to 2-lane with Paved Shoulder in the State of Bihar on EPC 2020 14, 2020 mode

Source: NHAI, MoRTH

15 Roads Monthly Upcoming Tenders and Bid Postponements

Upcoming Tenders Implementing Cost (Rs Bid Issue Bid due Scope of the project agency billion) Date date Balance work of construction of Two_Four lane with paved shoulder from Km 54.370 February August 3, MoRTH to Km 101.400 (Bidar to Humnabad Section) of NH 50 in the state of Karnataka 3.01 20, 2020 2020 through an Engineering Procurement and Construction (EPC) Contract

Up Gradation of Nanded Kinwat Mahur Arni Road Section from Sarsam Budruk to September August 5, MoRTH Kothari (Design Ch 33.000 Km to Ch. 90.000 Km) to Two Lanes With Paved Shoulder of 3.24 19, 2019 2020 NH 161 A in the State of Maharashtra On EPC Mode (Balance work)

Rehabilitation and up gradation of Barasgaon Rahatee Bu. section from Km 558/200 September August 5, MoRTH to Km 615/000 of NH-222 to Two lane with paved shoulder in the state of 1.91 6, 2019 2020 Maharashtra under NHDP IV on EPC Basis Balance Work

Source: NHAI, MoRTH

16 Roads Monthly Project Updates

Impact of Covid-19 on Road Projects

• According to the ratings agency ICRA, the central government’s Bharatmala Pariyojana scheme may get delayed by about four years in the aftermath of the Covid-19 pandemic. The scheme, that was scheduled for completion in 2021-22, is now likely to get completed by 2025-26. • As of February 2020, a total of 246 road projects with an aggregate length of about 10,100 km were awarded under Phase I of the programme at a total cost of Rs 2.38 trillion. According to ICRA, the average cost of the award stood at Rs 238 million per km, 54 per cent higher than initial estimated cost of Rs 155.2 million per km. • The land acquisition cost for the National Highways Authority of India (NHAI) increased at a compounded annual growth rate (CAGR) of 27 per cent from FY2007 to FY2019 from Rs 2.1 million per hectare to around Rs 40 million per hectare.

• The six-lane national highway project from Anakapalle to Anandapuram, the work on which is scheduled for completion by July 2021, is likely to get delayed due to land acquisition issues. Progress of the work has already been affected by the lockdown imposed from the third week of March in the wake of the outbreak of Covid-19. • Besides, the Rs 20 billion project might be de-scoped due to cost escalations as a result of the delays.

• The Kharar flyover project has been delayed yet again, with the completion deadline now shifted to November 2020. • The project, after missing multiple deadlines, was expected to be completed by September 2020 however; labour shortage has hard hit the construction work on the project. • NHAI had handed over the Rs 3.68 billion project to Larsen & Toubro Limited, which began construction in November 2015.

17 Roads Monthly Project Updates

Other Project Updates

Updates on Key Announced/Approved/Awarded/Completed Projects Length Cost (Rs Project Status Contractors Details (km) billion) H.G. Infra Engineering Limited has received provisional completion certificate (PCC) dated H.G. Infra February 29, 2020, for the project entailing twolaning Balotra - Sanderao Completed NA 1.93 Engineering with paved shoulder for Balotra to Sanderao via Jalore highway Limited section of NH-325 from km 58 to km 91.6, excluding chainage (59.46 to 62.9), (73.12 to 75.92), (82.65 to 85.3) in Rajasthan. The Panjagutta bridge under the Greater Hyderabad Panjagutta bridge Completed NA NA NA Strategic Road Development Plan (SRDP) Project has been opened for public use. PNC Infratech Limited has received letter of award (LoA) from NHAI for project entailing fourlaning of PNC Meerut – Nazibabad 53.95 km Meerut - Nazibabad section of NH-119 (New Awarded 53.95 14.12 Infratech highway project NH-34) from design chainage km 11.500 (Meerut) to Limited km 39.25 (Behsuma) and from km 79.5 (Bijnor) to km 105.7 (Jalalabad) in Uttar Pradesh. L&T Limited has secured an EPC contract to construct Package 11 and 12 of Delhi-Vadodara expressway project. The scope of work broadly includes Delhi-Vadodara construction of 36 km eight-lane greenfield Expressway (Package 11 Awarded NA NA L&T Limited expressway with perpetual pavement, service/slip and 12) roads, interchanges, ROB, major/minor bridges, vehicular/pedestrian/cattle underpasses and animal underpasses/overpasses.

18 Roads Monthly Project Updates

Other Project Updates

Updates on Key Announced/Approved/Awarded/Completed Projects

Length Cost (Rs Project Status Contractors Details (km) billion)

NHAI has re-allotted the contract of widening Welspun NH-44 into 12 lanes, including eight main lanes Mukarba-Panipat highway Awarded 71.1 21.22 Enterprises and four service lanes, to a new company, Limited Welspun Enterprises Limited.

Bihar government inaugurated the Sattarghat Sattarghat bridge project Completed 1.44 2.63 NA Bridge on June 16, 2020. The construction work on the project was completed in February 2020.

NHAI is planning to develop a 20 km road connecting to -Bakhtiyarpur section of Patna-Bakhtiyarpur Announced 20.00 2.00 NA NH30 from Sheikhpura Mor, as a global model highway road by March 2021. Currently, detailed project report (DPR) for the project has been prepared. Paratech Constructions has emerged as the Paratech lowest bidder (L1) for Irang bridge under the Irang bridge project Awarded NA 0.42 Constructions Imphal-Jiribam two-laning road project (NH-37), Private Limited being implemented on EPC mode. MoRTH has issued directions to NHAI to develop new expressway connectivity via Sultanpur Sultanpur-Amritsar Lodhi, Goindwal Sahib, Khadoor Sahib and Tarn Announced NA NA NA expressway Taran up to Amritsar to create a new Sikh circuit covering five religious shrines as part of the proposed Delhi-Amritar-Katra expressway.

19 Roads Monthly Project Updates

Other Project Updates

Updates on Key Announced/Approved/Awarded/Completed Projects

Cost (Rs Project Status Length (km) Contractors Details billion) NHAI has given its clearance to the Rs 80 billion Pathankot-Mandi highway four-lane project. Pathankot-Mandi The authority had discontinued the land Approved 171.00 80.00 NA highway acquisition process for the project in May 2019. Bids for the same are likely to be invited soon

The Government of Tamil Nadu has Two-tier flyover at Salem Completed NA 4.41 NA inaugurated the two-tier flyover at Five Road five road junction Junction (Salem).

MoRTH has granted approval for revised alignment of the Delhi-Katra expressway project. The scope of work under the revised alignment includes construction of a greenfield Delhi-Katra expressway Approved NA 300.00 NA signal free Delhi-Amritsar expressway providing connectivity to Amritsar, Sultanpur Lodhi, Goindwal Sahib, Khadoor Sahib and Kartarpur corridor in Punjab. Ashoka Buildcon Limited has received provisional completion certificate (PCC) for Ashoka completion of the Kharar-Ludhiana road Kharar-Ludhiana highway Completed 76.01 NA Buildcon project (NH-95 and NH21). The commercial Limited operation date (COD) for the stretch was March 31, 2020.

20 Roads Monthly Key Data and Statistics

Financial Performance of Key Players

Company Total Income Total Expenditure Profit After Tax (PAT) 2019-20 2018-19 2019-20 2018-19 2019-20 2018-19 Ashoka Buildcon Limited 51.5 50.1 48.4 48.2 1.6 -0.4 Dilip Buildcon Limited 97.6 94.6 92.6 88.8 4.0 5.4 IRB Infrastructure 70.5 69.0 59.1 54.3 7.2 8.5 Developers Limited J. Kumar Infraprojects 30.0 28.2 27.7 25.5 1.8 1.8 Limited* Larsen & Toubro Limited 1,478.1 1,370.6 1,343.8 1,236.2 101.7 96.7 KNR Constructions Limited 25.2 23.7 21.9 20.7 2.6 2.6 PNC Infratech Limited 57.8 38.2 50.7 34.6 5.4 2.8 Welspun Enterprises Limited 19.2 18.6 17.0 16.6 1.5 1.3 H.G. Infra Engineering 22.3 20.3 20.0 18.3 1.7 1.3 Limited Gayatri Projects Limited 34.4 34.7 34.8 32.7 -0.6 1.6 Sadbhav Engineering Limited 38.6 55.1 41.6 54.8 11.1 -0.5 MEP Infrastructure 18.3 29.4 18.9 28.1 -0.7 0.5 Developers Limited**

*standalone results; **financial results upto December 2019 Source: BSE corporate announcements of respective companies

21