Presented By:

GROUP - 26
 CWG 2010- Boost to Delhi
Infrastructure

• New Network of Roads and

Roads Flyovers connecting with Domestic
and International Terminals

• Delhi Metro Railway System

Railways connecting the NCR region

• Domestic and International Airport

Airport Beautification and Expansion
 Current Scenario Sector MW %

Size State 80844 52.5

Central 51867 34
Private 32124 13.5
• Generation capacity of 164 GW (5th in the
world); CAGR of 4.6% over the last four years Total 164835
• Low per capita consumption at 606 units;
less than half of China % of power generation
•T & D network of 5.7 million circuit km – the
POWER

3rd largest in the world Thermal

Hydel
Structure Gas Based
•Majority of Generation, Transmission and 5%
Nuclear
Distribution capacities are with either public
Other Renewable
sector companies or with State Electricity
Boards (SEBs) 3%
• Private sector participation is increasing 10%
especially in Generation and Distribution
- Distribution licences for several cities are
already with the private sector 25% 57%
- Many large generation projects have been
planned in the private sector
 Future Potential
•Large demand-supply gap: All India average energy shortfall of 7% and peak
demand shortfall of 12%

• The implementation of key reforms is likely to foster growth in all segments:

Unbundled SEBs; Open Access networks; privatised distribution circles; Tariff
reforms
POWER

•Opportunities in Generation for:

Coal based plants(imported coal); Natural Gas/CNG based turbines; 150 GW Hydel
power potential; MRO of old plants; Private/ foreign player entry in NPPs

•Opportunities in Transmission network ventures - additional 60,000 circuit km of

transmission network expected by 2012

•Opportunities in Distribution through bidding for the privatisation of distribution in

thirteen states that have unbundled/corporatised their State Electricity Boards –
expected to take place over the next 2-3 years

Total investment opportunity of about US$ 200 billion over a seven year horizon
 Policy Initiatives
Positive Outlook

• 100% FDI permitted in Generation,

Transmission & Distribution - the
Government is keen to draw private
investment into the sector

•Policy framework in place: Electricity Act

POWER

2003 and National Electricity Policy 2005

•Incentives: Income tax holiday for a block of

10 years in the first 15 years of operation;
waiver of capital goods import duties on
mega power projects (above 1,000 MW
generation capacity)
Major Players currently
•Independent Regulators: Central Electricity
Regulatory Commission for Central PSUs and
inter-State issues. Each State has its own
Electricity Regulatory Commission.
 Petroleum Industry Petroleum Sector

Upstream Strategic
PETROLEUM

Importance
Exploration and Production
• ONGC, RIL, Cairn India, OIL
Foreign
Downstream Policy

Refining and Marketing

• IOCL, BPCL, HPCL, RIL, Essar 75%
Imported
Steps to Boost Crude Oil Production

• NELP-VIII:36 blocks awarded in 2009

• NELP-IX: Bids invited for 34 Blocks for

NELP 2011
• KG Basin: 80 MMSCMD
PETROLEUM

• Barmer Oil field: 6.5 Bn barrels/day

Overseas • National Oil companies encouraged to

acquire oil fields abroad
• OVL, IOC-OIL, BPCL-Videocon
Acquisition • OVL 7 blocks; IOC-OIL 3 blocks
Refining Capacity

120 MMTPA 180 MMTPA

60 MMTPA
PETROLEUM

Domestically Refining
Exported
Consumed Capacity

300

250

200

In MMTPA 150

100

50

0
Year 2010 Year 2012
 Grass root refineries by
Expansion projects at
IOCl, BPCL and HPCL at
Paradip, Bina and Bhatinda Existing Refineries
PETROLEUM

Capacity
Expansion

Expansion by Reliance and Ashok Leyland, Nippon

Denro and Soros Foud
Essar
entering Refinery Business
 Inv
•H igehstwmaeyns/tEinxprroeasdswseacytsocrodnusrtin
abgtethe
tu
ROADS AND HIGHWAYS bil
ca rliorvouyent40
Ele n6th6,of
P5lthe
9a0n road traffic
kismpsro(2je%ctoefdaalltr$oa7d8s.5) 0and
%
•Annual growth projected at 12-15%
Ind
fo r ipaahsasesnagneer xttreanffsiciv, eanroda1d5-
ne
ca rtgwfor
18% ork
o of 3.3 million kms - the
Quadrilateral
second largest in the world
Ttrhppo
aeffG (GQ-5846
icolden kms of 4 lane
•O hritguhnwitayyos)r
Threat?
 Potential
ROADS AND HIGHWAYS
Road development is recognised as essential to
sustain India's economic growth

The Government is planning to increase spends on

road development substantially with funding already
in place based on a cess on fuel

A Rs.41,200 crores (US $ 5 billion) project plans to lay

6 lane roads over 6,500 kms of National Highways on
the Design Build Finance and Operate (DBFO) basis -
in Golden Quadrilateral and other high traffic
stretches.
 Current Scenario
Size and Structure

•World’s Largest Number Of Employees

•Third Largest Rail Network in the World
•Owned and Controlled by Indian Government – Headed by
Mamata Banerjee

Launch of New Trains

RAILWAYS

•Izzat Scheme–Uniformly Priced Monthly Season Tickets(MSTs)

•Matrabhumi Train Services – Targeted at only Ladies
•Yuva Trains – Targeted at unemployed youth

Up gradation of Passenger Amenities

•Computerization of Passenger and Freight Services

•Development of Adarsh Stations - Basic Facilites
like drinking water, toilets
•Multi-functional Complexes –shopping, food stalls, restaurants
 Future Potential
Usage of Bio-Fuel

•Largest Consumer of High-Speed Diesel (HSD) currently

•Potential for B10 blend – 10% bio-diesel in HSD oil
•Plantation of Jatropha curcas on vacant Railway Land
RAILWAYS

Establishment of Rail Land Development Authority

• Utilization of vacant Railway Land and air space

• Setting up of Infrastructural Projects - Generate Employment

Improvement of Financial Health

•New milestone in incremental freight loading this year by g 5.70mTonnes

carryin
•Hiving off Non – Core Activities
 Policy Initiatives
Dedicated Freight Corridors

•Investment – Rs. 22,000 crores

•Western and Eastern High Density Routes

Privatization of Container Trains

RAILWAYS

•Monopoly of CONCOR –public sector entity till now

•14 applicants for container train operation

National Rail Vikas Yojana

•Strengthening of the golden Quadrilateral to run more long-distance mail

•Strengthening of rail connectivity to ports
•Development of multi-modal corridors to hinterland

Tariff Rationalization

• Methodology for indexing the fare structure to line haul costs

•Introduction of commercial accounting and information technology systems
 •Total 125 airports in India.
• 11 International airports.

100% FDI is permissible

for existing airports; FIPB
approval required for FDI
beyond 74%
AVIATION

In 2004-05, Indian
100% FDI under 100 million 100% tax airports handled 60
automatic route passengers p.a. by exemption for
is permissible for 2010 airport projects million passengers and
greenfield
airports. Cargo to cross 3.3
for a period of
10 years
1.3 million tonnes of
million tonnes by cargo
2010

•Passenger traffic grew

at over 22% in 2004-05
over 2003-04; Cargo
‘Open Sky’
Policy of the grew at 21.6% over the
Government
previous year
 •12 major ports
•200 non-major ports

•95% of India’s
exports & imports
PORTS

moved by sea 100% FDI Automatic

18 Billion investment
Route
•Traffic estimated
to reach 877
million tonnes by 5% of World
2011-12 Exports(2020)

100% IT exemption for

PPP on BOT basis
10 years
 Present Statistics

Total Subscribers (Wireless+Wireline) 671.69 million

Urban Subscribers 452.59 million (67.4%)
Rural Subscribers 219.09 million (32.6%)
Teledensity 56.83
TELECOM

Urban Teledensity 128.20

Rural Teledensity 26.43

450
50
400 391.76 45
350 40
SUBSCRIBERS (in millions)

Revenue (US billion $)

300 35

250 261.07 30

200 25
165.11 20
150
15
100 98.77
10
50 52.22
33.69 5
0
0
Jan/04 Jan/05 Jan/06 Jan/07 Jan/08 Jan/09
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Source: trai.gov.in
 New Growth Horizons for Teleco m
service providers

3G
Telecom
Mobile
Services
Rural Number
Telephony Portabili
TELECOM

ty

Value
Managed
Service
TELECOM added
Services

Enterprise
Telecom WiMax
Services
Manufac
turing
 MAJOR POLICY INITIATIVES
(FDI)
• FDI ceiling in telecom services
TELECOM
raised to 74%
• Introduction of a unified access
licensing regime for telecom
services on a pan-India basis
• Mobile Number Portability.
• Bharat Nirman programme.
• Bidding for 3G spectrum by
foreign companies.
TARGET SET BY THE
GOVERNMENT
ons by the year
2012.
• 200 million rural subscribers by 2012.
• 20 million broadband connections by
2010.
• Broadband coverage for all secondary &
higher secondary schools and public
health care centres by the end of year
2010.
• Achieving exports of 10 billion during
11th Five year plan.
• Quadrupling production in 2010.
Sources of funds for infrastructure projects are
very much similar to those for a corporate

FINANCING OF INFRASTRUCTURE
Sources of
Fund

Instruments Institutions Promoters

Debt Equity Govt. Foreign Private

Banks Government PPP
Financing Financing Institutions Investors Sector

Facts about Infrastructure Financing

•11th Five Year Plan (2007-2012) calls for more than doubling
the financial outlay for infrastructure
•Share of private investment in total to rise from 17% to 30% by 2012
•Key foreign players include 3i, Blackstone, Citigroup, Macquarie
•International funding also comes from ADB, World Bank, etc
•Mismatch of funding period – major hitch
Many Infrastructure sectors have consistently featured in
t top 10 sectors in terms of FDI fundings

FDI INVESTMENT IN INFRASTRUCTURE

he
2010-11 Cumulative Inflows % age of Total Inflows
Rank Sector
(April- August) (April ’00 - August ‘10) (In terms of US$)

1 SERVICES SECTOR 1,260 24,862 21%

COMPUTER SOFTWARE &

2 458 10,330 9%
HARDWARE

3 TELECOMMUNICATIONS 1,054 9,985 8%

4 HOUSING & REAL ESTATE 539 8,895 7%

5 CONSTRUCTION ACTIVITIES 294 8,347 7%

6 POWER 677 5,305 4%

7 AUTOMOBILE INDUSTRY 114 4,710 4%

8 METALLURGICAL INDUSTRIES 613 3,743 3%

9 PETROLEUM & NATURAL GAS 218 2,883 2%

10 CHEMICALS 146 2,642 2%

Source: Department of Industrial Policy & Promotion Ministry of Commerce and Industry
Key sources of funds in India are initiatives like PPP
and institutes like IFCL

FINANCING OF INFRASTRUCTURE
Public Private Partnerships India Infrastructure Finance Company

180 projects undertaken till date Addresses need for long term
Projects undertaken mainly in debt
Roads Funds up to 20% of capital costs
& transport sector of
Introduces private sector expertise project
and cost reducing technology Raises funds, on Govt.
Fast approval through PPPAC guarantees,
Composition
from domestic of IIFC Funding
& external markets
Projects under PPP (in $ billions)
(in $ billions) Direct approval 0.1
for PPP projects

16 14.4
14 11.1 1.4
12
10 7.5 2.2
8
6 3.9
4 1.4
2
0
2006 2007 2008 2009 2010
(Till June) Private (Non PPP) PPP Public Sector

Source: PPP India Website Source: PPP India Website

 Group - 26

Anubhav Agarwal
Pradeep Tewani
Preethi Natarajan
Osama Abdullah
Sidharth
SurbhiSrninivasan
J
ain