INFRASTRUCTURE

January 2021
For updated information, please visit www.ibef.org
Table of Contents

Executive Summary 3

Advantage India 4

Market Overview and Trends 6

Strategies Adopted 13

Growth Drivers and Opportunities 15

Key Industry Contacts 27

Appendix 29

2
Executive summary

2 INCREASING PRIVATE 3 IMPROVEMENT IN LOGISTICS

SECTOR INVOLVEMENT
 Private sector is emerging as a key player • The logistics sector in India is growing
across various infrastructure segments, 10.5% annually and is expected to
ranging from roads and communications to reach US$ 215 billion in 2020.
power and airports. • India was ranked second* in the 2019
 Private investment into physical and social Agility Emerging Markets Logistics
infrastructure is key to putting India in a high Index.
growth trajectory, which will make it a US$ 5
trillion economy by 2024-25.
1 HIGH BUDGETARY  Yearly private equity (PE) and venture capital
ALLOCATION FOR (VC) investment in India is expected to
INFRASTRUCTURE surpass US$ 65 billion in 2025.

• In Union Budget 2020-21, the

Government has given a massive
4 RISING FOREIGN
push to the infrastructure sector DIRECT INVESTMENT
by allocating Rs. 1,69,637 crore
(US$ 24.27 billion) to enhance the 2 3 (FDI) IN THE SECTOR
transport infrastructure. • FDIs in the construction
• Government of India allocated Rs. development sector (townships,
111 lakh crore (US$1.4 trillion) housing, built up infrastructure
under the National Infrastructure and construction development
Pipeline (NIP) for FY2019-25. projects) and construction
Sectors such as energy (24%),
roads (18%), urban (17%) and
1 4
(infrastructure) activities stood
at US$ 25.78 billion and US$
railways (12%) amount to ~71% 17.22 billion, respectively,
of the projected infrastructure between April 2000 and
investments in India. September 2020.

Note: * prepared by Agility for ranking emerging countries in terms of their logistics performance
Source: Media sources, DPIIT, Equirius Capital, EY, National Infrastructure Pipeline

3
Advantage India

4
Advantage India

3 POLICY SUPPORT
2 ATTRACTIVE OPPORTUNITIES  With initiatives like ‘Housing for All’ and ‘Smart Cities Mission’,
the Government of India is working on reducing bottlenecks and
• Favourable valuation and earnings outlook makes this impeding growth in the infrastructure sector. Rs. 2.05 lakh crore
sector an attractive opportunity. (US$ 31.81 billion) will be invested in the smart cities mission.
• Only 24% of the national highway network in India is  100% FDI is permitted under the automatic route across various
four-lane, therefore there is an immense scope for infrastructure sectors.
improvement.  The ‘North Eastern Region for Social and Infrastructure
• The Regional Connectivity Scheme (RCS) gives Development Fund (SIDF)’ projects worth Rs. 586.20 crore (US$
opportunity for development of airports. 80 million) were sanctioned.

4 INCREASING
INVESTMENT
 Huge investments in
infrastructure (e.g., Reliance
Digital Fibre Infrastructure Trust
1 ROBUST DEMAND
• India is expected to become the
2 3
Investment of US$ 1 billion)
have provided momentum to
overall PE/VC investments in
third-largest construction market India.
globally by 2022.  Construction development sector
• India has a requirement of and
investment worth Rs. 50 trillion infrastructure activities sector
(US$ 777.73 billion) across
infrastructure by 2022 for a 1 4
received FDI
inflows amounting to US$ 25.78
sustainable development in the billion and US$ 17.22 billion,
country. respectively, between April 2000
and September 2020.

Note: UDAY - Ujwal Discom Assurance Yojana

Source: Media Sources, DPIIT, PricewaterhouseCoopers

5
 MARKET OVERVIEW AND TRENDS

MARKET OVERVIEW

6
Performance of eight core infrastructure industries

 The eight core infrastructure industries include coal, crude oil, natural
gas, refinery products, fertilisers, steel, cement and electricity. Index of eight core Industries

 In November 2020, the combined index of eight core industries stood

180
at 125.9.

 On September 23, 2020, National Thermal Power Corporation Ltd. 160

158.5
(NTPC) announced plans to establish industrial parks inside its

154.1
152.6
140

145.7
power projects and has invited Expression of Interests (EOIs) from

133.6

131.6
Indian firms.

129.4
120

123.3

115
 In September 2020, Andhra Pradesh government stated that it is

114.2
113.5
110.2

109.8
108.9
100
conducting a comprehensive survey to provide required
infrastructure to the industries in the state. 80

84.5
80.4
 In October 2020, NITI Aayog and Quality Council of India (QCI) 60

65.1
launched the ‘National Program and Project Management Policy

58.4
Framework’ (NPMPF), envisaged to bring radical reforms in the way 40
infrastructure projects are executed in India.
20

Fertilisers
Coal

Natural Gas

Cement

Overall
Crude Oil

Steel

Electricity
Products
Refinery
FY20 FY21*

Note: *- until November 2020

Source: Ministry of Commerce and Industry

7
Growth in infrastructure related activities

 National highway construction recorded the highest increase of 15% Growth in infrastructure related activities during FY20 (in
in line with government’s increased focus on improving logistics. percent)
18
 In March 2020, NHAI accomplished the highest ever highway 15.00
15
construction of 3,979 km of national highways in FY20.
12
 Freight earnings in FY20 stood at Rs. 113,480.65 crore (US$ 16.10
9
billion), while its gross revenue stood at Rs. 174,660.52 crore (US$
6
24.99 billion) during the same period.
3 0.82
 Cargo traffic handled stood at 707.4 million tonnes (MT) in FY20. 0.26
0
 Electricity production in India reached 1,252.61 BU in FY20. -3

 In December 2020, Prime Minister Mr. Narendra Modi inaugurated -6

the 351-km ‘New Bhaupur- New Khurja section’ in the Eastern -9
-8.06
Dedicated Freight Corridor (EDFC), Uttar Pradesh. -12 -10.95
 In December 2020, the Cabinet Committee on Economic Affairs -15

major ports
Rail freight
National Highway Construction
Electricity Generation

earnings
Railway

Cargo at
earning
(CCEA) approved three infrastructure proposals worth Rs. 7,725
crore (US$ 1.06 billion) to set up greenfield industrial cities to
enhance connectivity to major transportation corridors such as the
eastern and western dedicated freight corridors, expressways and
national highways.

Note: Data is as per latest available information, P - Provisional

Source: Economic Survey, Ministry of Railways, Union Budget 2018-19, Indian Ports Association, Central Electricity Authority

8
Strong momentum in expansion of roadways

 Highway construction in India increased at a CAGR of 21.44 between

Highway construction in India (kms)
FY16-FY19. In FY19, 10,855 km of highways were constructed. The
Government of India aims to construct 65,000 km of national highways at
a cost of Rs. 5.35 lakh crore (US$ 741.51 billion) by 2022. 12,000 CAGR 21.44%

 The Government will use plastic waste for the construction of roads. One
10,855
of the roads has been recently constructed with plastic waste near 10,000
Dhaula Kuan (New Delhi), while there are plans to construct Delhi- 9,829
Meerut Expressway and Gurugram-Sohna road. 8,784
8,000
8,231
 In January 2021, the Government of India & NDB signed two loan
agreements for US$ 646 million for upgrading state highway network and
district road network in Andhra Pradesh. 6,000
6,061
 In December 2020, Mr. Nitin Gadkari, the Union Minister for Road
Transport, Highways and MSMEs, inaugurated 33 highway projects 4,000 4,410
4,260
worth Rs. 11,000 crore (US$ 1.50 billion) in Karnataka.

 In December 2020, Mr. Nitin Gadkari, the Union Minister for Road 2,000
Transport, Highways and MSMEs, inaugurated and laid the foundation
stones for 15 Nagaland National Highway (NH) projects. These NH
0
projects have a length of ~266 kms, including costs of ~Rs. 4127 crore
FY14 FY15 FY16 FY17 FY18 FY19 FY20 (till
(US$ 560.45 million). February
2020)

Note: E - Estimate, Figures are as per latest data available, CAGR until FY19
Source: Ministry of External Affairs, Economic Survey-2019-20

9
Strong revenue growth for Indian railways

 Revenue growth has been strong over the years. Indian Railways’
revenue increased at a CAGR of 2.57% during FY16-FY19 and Gross revenue trends over the years (US$ billion)
reached US$ 27.71 billion in FY19. The gross revenue stood at Rs.
174,660.52 crore (US$ 24.99 billion) in FY20. 28.00
 The Indian Railways received allocation under Union Budget 2020-21

27.71
at Rs. 72,216 crore (US$ 10.33 billion). 27.50

 The Ministry of Railways is working on a plan to earn Rs. 15,000 crore 27.00
(US$ 1.56 billion) over the next 10-20 years through rail display
network (RDN), enabling real-time information to passengers. 26.50
 Indian Railways will require investment of Rs. 35.3 trillion (US$ 545.26
billion) by 2032 for capacity addition and modernisation. The capital 26.00
expenditure in the sector is expected to increase by 92% annually.

25.69
25.50
 Railways is leading India’s fight against climate challenge and is taking
significant steps towards meeting its ambitious goal of being a net zero
25.00
carbon emissions organisation by 2030 and meeting India’s Intended

25.02

24.99
Nationally Determined Contributions (INDC) targets.
24.50

24.64
 In November 2020, RailTel announced its highest ever consolidated
income of Rs 1,16,600.50 lakh (US$ 1.56 billion) for the 2019-2020 24.00
fiscal year in its 20th Annual General Meeting.
23.50
 In November 2020, the National High Speed Rail Corporation Limited
(NHSRCL) signed a contract with Larsen & Toubro (L&T) to design and
construct a 237 kms long viaduct between Vapi (Maharashtra-Gujarat 23.00

FY16

FY17

FY18

FY19

FY20
border village of Zaroli) and Vadodara (Gujarat). This high-speed rail
corridor implementation agreement is the biggest infrastructure
contract for construction and design in the country.

Note: CAGR - Compound Annual Growth Rate, E - Estimates, P-Provisional, FY - Indian Financial Year (April-March)
Source: Vision 2020, Ministry of Railways

10
Power generation capacity has increased at a healthy pace

 In November 2020, total thermal installed capacity in the country

stood at 374.20 GW, while renewable, hydro and nuclear energy Installed
Visakhapatnam
electricity
port
generation
traffic (million
capacity
tonnes)
(GW)
installed capacity totalled 90.39 GW, 45.69 GW and 6.78 GW,
CAGR^ 7.19%
respectively.
400
 Indian energy sector is expected to offer investment opportunities
worth US$ 300 billion over the next 10 years.

374.20
370.11
350
 On December 31, 2020, the Asian Development Bank (ADB) and the

356.10
344.00
Government of India signed a US$ 100 million loan to modernise and

326.84
upgrade the power distribution system to boost the quality and 300
efficiency of electricity supply in Bengaluru, Karnataka.

280.33
 On December 30, 2020, the Asian Development Bank (ADB) and the 250
Government of India signed a US$ 231 million loan to increase
electricity generation capacity in Assam through the construction of a 200
hydroelectric power plant of 120 megawatts (MW) that will boost
availability of household electricity.
150
 In December 2020, Oil Minister, Mr. Dharmendra Pradhan stated
that as the government pushes for increased use of cleaner fuels to
100
reduce carbon emissions, India is likely to see a US$ 66 billion
investment in the construction of gas infrastructure.
50
• The government is planning to increase the share of natural gas
in its energy portfolio from the existing 6.3% to 15% by 2030.
0 FY16

FY17

FY18

FY19

FY20

FY21*
Note: GW - Gigawatt, ^- CAGR until FY20, *- until November 2020
Source: CEA (Central Electricity Authority), News Article

11
Key private players

Major projects: Mumbai-Pune BOT Project, Pune-Nashik BOT Project, Bharuch-Surat BOT

1 Project, Thane-Bhiwandi by-pass 4 Lane Project, Thane Ghodbunder BOT Project, Ahmedabad-
Baroda NH-8, 6 laning of Agra - Etawah bypass, Gandeva-Ena section of Vadodara-Mumbai 8
lane expressway

Major projects: NH6 Dhankuni to Kharagpur, Sambalpur Baragarh, NH4 Belgaum Dharwad,

2 NH-3 Pimpalgaon - Nashik - Gonde Road (JV with L&T), Jaora - Nayagaon Road, Chennai
Outer Ring Road, Modhul - Nippani Road, Indore Edalabad Road, Wainganga Bridge,
Ahmednagar Aurangabad Road

Major projects: Bandra-Worli Sea Link, Badarpur Elevated Highway Project, Delhi Faridabad

3 Elevated Expressway, Breakwater construction for new port at Ennore, Chennai, New
Railway Line Project from Jiribam - Tupul, New Railway Line Project from Rishikesh-
Karnaprayag

Agra Lucknow Expressways—Uttar Pradesh, Outer Ring Road, Hyderabad Growth

4 Corridor—Telangana, Nagpur Mumbai Express Way, Pune Metro Package 1 & 2, Nagpur
Metro, Chennai Metro, Delhi Metro, 4 Lane Elevated Highway Project on NH-7 in
Bangalore City

Major Projects: Hyderabad Metro Rail, Construction of a 6-lane bridge over the Ganges
river, Mechanise Track Laying for India's first 626 km Dedicated Freight Corridor, Monorail in
5 Mumbai, Railway electrification works and Rigid Overhead Contact System for the Delhi
Metro, Kakrapar nuclear power project and Srinagar Hydel Power Project, Uttaranchal, Navi
Mumbai Airport

Source: Company websites and News Article

12
 STRATEGIES ADOPTED

RECENT TRENDS AND STRATEGIES

13
Strategies adopted

 The company has secured strong infrastructure projects to ramp up its presence in the industry.
 In January 2021, the construction arm of L&T has secured orders from Metallurgical & Material Handling Business
to construct a metallurgical plant in the domestic market.
 L&T’s Power Transmission & Distribution Business has secured an Engineering, Procurement, Construction and
Commissioning (EPCC) Contract to construct a 500kV transmission line in Malaysia.
 In November 2020, L&T Construction's transportation infrastructure firm, Larsen & Toubro's construction arm,
secured National High-Speed Rail Corporation Limited (NHSRCL)’s mega contract to build 87,569 kms of
Mumbai-Ahmedabad High-Speed Rail (MAHSR) project.
 To expand nuclear energy portfoilo, efforts to increase scope by offering products beyond conventional island in
nuclear business is under way.
 BHEL's collaborative initiatives to address the growing demand potential in Railway Transportation including
Metro and Suburban Railways include initiative with Indian Railways for setting up a greenfield Mainline Electrical
Multiple Unit (MEMU) Coach Factory in Rajasthan.
 In December 2020, the company secured orders worth Rs. 3,200 crore (US$ 437.31 million) for hydro projects in
Andhra, Telangana.

 GMR Airports Limited (GAL) bagged the development and operation rights of the greenfield international airport
proposed at Bhogapuram in Vizianagaram district from the state Government in April 2020.
 GMR Airport’s international partner, Groupe ADP of France, has raised US$ 2.47 billion in bonds in two-parts.

 Adani Ports and Special Economic Zone (APSEZ) Ltd. handled 27.2 million tonnes (MT) of cargo in December
2020 through its ten port network, reporting a 47% increase on a YoY basis. The port operating unit of the
infrastructure conglomerate, Adani Group, announced that its flagship plant, the Gujarat Port of Mundra, handled
15.24 MT of freight, with an annual growth rate of 44%.

Source: Company websites, Media sources

14
 GROWTH DRIVERS AND OPPORTUNITIES

GROWTH DRIVERS

15
Growth drivers for Infrastructure in India

1 Government initiatives 5 Public Private Partnerships (PPP)

5
1

2 Infrastructure needs
4 4 4 International investment

3 Housing development

16
Government initiatives driving growth in the sector

2 ROADS AND AIRPORT

• 2,000 km of coastal connectivity roads have been
3 TELECOM AND ENERGY
identified  Rs. 8,350 crore (US$ 1.16 billion) was allocated in
for construction and development. Union Budget 2019-20 for creation and augmentation
• The Government of India will construct 65,000 km of of telecom infrastructure in the country.
highways by 2022.  In the second phase of Strategic Crude Oil reserves,
• Bharatmala phase II is going to be launched reserve capacity will be increased to 15.33 MT.
to develop the state road networks  In the second phase of Solar Park Development, an
• The Government of India invited proposals to install additional capacity of 20,000 MW will be generated.
charging infrastructure on major highways and
expressways in the country.
4 CONSTRUCTION
 In Union Budget 2020-21, the
Government announced Rs.
91.82 billon (US$ 13.14 billon)
1 RAILWAYS AND
METRO RAIL
2 3 for road transport and highway.
 As per Union Budget 2019-20,
the investment of Rs. 50 lakh
• For 2019-20, the total capital crore (US$ 750 billion) for
expenditure of railways was railways infrastructure between
expected to be Rs.1.59 trillion 2018-2030 is needed.
(US$ 22.04 billion).  The Central Government
• As per Union Budget 2020-21,
the Ministry of Railways have
1 Total allocation for
infrastructure in Union 4 awarded a total of 322 projects
to construct 12,413 km roads
been allocated Rs. 72,216 Budget 2020-21 stands at under the 'Bharatmala
crore (US$ 10.33 billion). Pariyojana’.
US$ 63.20 billion

Source: Union Budget 2019-20, Media sources

17
Affordable Housing

Growth in Household Incomes and Residential Prices (CAGR

Visakhapatnam port traffic (million tonnes) Mortgage
Visakhapatnam
Payment asport
% oftraffic
Post-Tax
(million
Income
tonnes)
in India
2011-19)
12% 40%

10% 35%

36%
10%

34%

34%
30%

32%
9%

9%

8%

30%
8%

8%

8%

8%
25%
6%

26%
20%

22%
4% 5%
15%

4%
3%

3%

3%

3%
2%
2%
10%
0% 5%
Chennai
Mumbai

Hyderabad

Delhi NCR
Bengaluru
Kolkata

Pune

0%

2012

2013

2014

2015

2016

2017

2018
Household Incomes Residential Prices

 In Budget 2017-18, affordable housing was given infrastructure status. “Housing for All” programme was launched in June 2015 to build 20 million
urban homes and 30 million rural houses by 2022.

 Homes in India are currently most affordable in nearly two decades with overall mortgage payment accounting for 22% of average post-tax
income.

 As per Union Budget 2019-20, Government has finalised the model tendency law for promotion of rental housing.

 As per Union Budget 2020-21, the total expenditure for the Ministry of Housing and Urban Affairs is estimated at Rs. 50,040 crore (US$ 6.85
billion)

 In October 2020, the Ministry of Housing and Urban Affairs (MoHUA) launched an affordable rental housing complex portal.

Source: Bloomberg, Economic Times, JLL, Anarock

18
Infrastructure development in northeast India

 In December 2020, a US$ 4.21 million project readiness financing (PRF) facility was signed today by the Asian Development Bank (ADB) and the
Government of India to plan infrastructure development projects to boost urban amenities and build tourism infrastructure in Tripura.

 The government sanctioned Rs. 586.20 crore (US$ 80 million) for the ‘North Eastern Region for Social and Infrastructure Development Fund
(SIDF)’ projects.

 On October 27, 2020, Minister for Road Transport and Highways, Mr. Nitin Gadkari laid the foundation stones for nine National Highway projects in
Tripura worth Rs. 2,752 crore (US$ 369.60 million).

 In August 2020, Union Road Transport and Highways Minister, Mr. Nitin Gadkari, laid foundation for 13 highway projects, with construction value
worth Rs. 3,000 crore (US$ 409.52 million) , to improve connectivity in Manipur.

 For 2020-21, budgetary allocation for the Ministry of Development of Northeastern Region has been increased to Rs. 3,049 crore (US$ 432.54
million) from Rs. 2,629 crore (US$ 376.16 million) in 2018-19.

 Indian Prime Minister launched three transport links in February 2019 - a strategically important region abutting the Chinese border in the
Northeast.

 The Civil Aviation Ministry launched UDAAN 3.1 in February 2019 as it invited bids for airlines to fly over 28 to 30 routes to cover northeast.

 Mr. Conrad K. Sangma, Chief Ministry of Meghalaya, inaugurated the First Swadesh Darshan Scheme in January 2019. Quality of infrastructure
was aimed in the scheme.

 With an eye on China, India is working on a slew of road and bridge projects to improve connectivity with Bangladesh, Nepal and Myanmar.

 Government announced plans to invest US$ 6.98 billion across northeast states.

 Arunachal Pradesh was brought on the railway map of India with India’s longest rail-cum-road bridge — the 4.94-km long Bogibeel bridge over
Brahmaputra.

 Government has also announced plans to convert all meter gauge tracks in northeast to broad gauge tracks.

 In FY20, Rs. 53,370 crore (US$ 7.64 billion) was provided for infrastructure and socio-economic development of northeast region.

Source: Media sources

19
Logistics and warehousing

 Logistics and warehousing play an important role in the industrial Logistics market size
advancement of the country. They are a fundamental part of business (US$ billion)
infrastructure and one of the key enablers in the global supply chain.
250
 By 2022, market size of logistics sector is expected to reach US$ 215
billion.

215.0
 In 2017, the logistics sector was given infrastructure status in India. 200
Logistics market in India stood at US$ 160 billion in 2017. The sector
is expected to grow at a CAGR of 10.5% to reach US$ 215 billion by
the end of 2020. 150

160.0
 Investment in the logistics sector is expected to reach US$ 500 billion
annually by 2025. Warehousing in India is expected to get investment
of Rs. 50,000 crore (US$ 7.12 billion) by the end of 2020. 100

 In July 2020, Amazon India announced its plan to establish 10 new

fulfilment centres across Delhi, Mumbai, Bangalore, Patna, Lucknow,
Kolkata, Hyderabad, Chennai, Ludhiana and Ahmedabad, to cater to 50

the surge in demand for online shopping for the upcoming festive
season.
0
 In October 2020, Flipkart acquired a 140-acre land at Rs. 432 crore 2017 2020E
(US$ 58.87 million) to establish their largest fulfilling centre in Asia, in
Manesar, Gurgaon, in a bid to scale their fulfilment infrastructure to
cater to increased demand post COVID-19.

Source: Economic Survey 2017-18, KPMG Report, News Articles

20
Airports infrastructure investment

1
Metro airports
 The Airports Authority of India (AAI) aims to bring around 250 airports under operation across the country by the end of 2020.
 AAI has developed and upgraded over 23 metro airports in the last 5 years.
 AAI plans to develop city-side infrastructure at 13 regional airports across India with help from private players for building of hotels,
car parks and other facilities, and thereby boosting its non-aeronautical revenues.
 Airport housing will also have height restrictions to avoid interference with flight paths. They will also have to be far from the runway
and 45m above a defined level of the airport, which will allow 4-5 floors to be built.
 The development of Navi Mumbai airport has been approved. The project will be developed on 74:26% partnership between
Mumbai International Airport Limited (MIAL) and City & Industrial Development Corporation of Maharashtra (CIDCO) and airport’s
phase I with annual handling capacity of 10 million passengers each year rephrasing it from the origin.

2
Non-metro airports
 AAI plans to spend over Rs. 21,000 crore (US$ 3.2 billion) between 2018-22 to build new terminal and expand capacity of existing ones.
 Upfront subsidy has been proposed through which non-metro airports would be funded by imposing 2% levy on both domestic and
international airfares.
 About 22 airports will be connected under regional connectivity scheme of AAI.
 Over 30 airport development projects are under progress across various regions in northeast India.
 AAI plans to develop over 20 airports in tier II and tier III cities in the next 5 years.
 To boost air connectivity, 100 new airports will be developed in the country by 2024.
 In October 2020, the Airports Authority of India (AAI) announced a plan to upgrade runways at seven airports across the country by
March 2022. The seven airports included are at Jammu (Jammu and Kashmir), Kolhapur (Maharashtra), Jabalpur (Madhya Pradesh),
Barapani (Meghalaya), Kadapa (Andhra Pradesh), Tirupati (Andhra Pradesh) and Tuticorin (Tamil Nadu).

Source: Media sources

21
Metro rail and monorail infrastructure investment

1
Metro rail
 At least 10 Indian cities are working on metro railway projects and the Government initiated a plan in 2012 to study the feasibility of
such networks in all cities with a population of more than 2 million.
 Metro rail projects worth over Rs. 500 billion ($7.7 billion) is underway.
 Metro rail network reached 637.2 kms as of September 2020.
 A new Metro Rail Policy was announced in August 2017, to give boost to private investments by mandating PPP component in new
projects. A new committee to lay down standards for metro rail systems was approved in June 2018.
 In June 2020, A&M Development Group, a European infrastructure development company, announced its plans to invest Rs. 100
crore (US$ 14.19 million) in Mumbai metro project along with RCC Infra Ventures through its recently formed Indian arm, Oberoi-
A&M Infra-Consortium.
 In November 2020, Alstom announced that it has successfully completed production of its 500th metro car at its ‘SriCity’ factory in
Andhra Pradesh that manufactures ‘Rolling Stock’ (metro trains) for urban metro projects.

2
Monorail
 Monorail has made its beginning in India with Mumbai being the first city in the country to have this transport system in place.
 It took more than six years from the date of inviting Request for Qualification for MMRDA (Mumbai Metropolitan Region
Development Authority) to complete a part of the project, involving a stretch of 8.26 km.
 Monorail Projects are being developed in Chennai, Pune, Thiruvananthpuram, Bengaluru, Thane, Delhi, Port Blair, Dehradun,
Chandigarh etc.

Source: Media sources

22
Increasing investments in Indian infrastructure

 In December 2020, the US International Development Finance Corporation (DFC) announced plan to invest US$ 54 million in equity for the
National Investment and Infrastructure Fund (NIIF) in India to support the development of critical infrastructure projects.

 The government and New Development Bank (NDB) signed a loan agreement worth US$ 1 billion to support rural infrastructure-related activities,
natural resource management (NRM) and rural employment generation under MGNREGS (Mahatma Gandhi National Rural Employment
Guarantee Scheme). The loan agreement spans a contract period of 30 years, including a 5-year grace period.

 To build four transmission projects in the country, electricity transmission infrastructure company Sterlite Power formed a 50:50 partnership with
global investment manager AMP Capital in December 2020. For constructing 1,800 km of transmission lines, AMP Capital and Sterlite Power will
likely invest US$ 150 million each.

 In November 2020, Warburg Pincus-backed logistics real estate firm, ESR India signed an agreement with the Maharashtra government to invest
Rs. 4,310 crore (US$ 578.88 million) to set up 11 industrial and logistics parks around Mumbai and Pune.

 In October 2020, Hughes India partnered with Bharat Broadband Nigam Limited (BBNL) and Telecommunications Consultants India Ltd.(TCIL) to
provide high-speed satellite connectivity to 5,000 remote gram panchayats.

 In November 2020, the Union Cabinet approved Rs. 2,480 crore (US$ 337.35 million) foreign direct investments (FDIs) in ATC Telecom Infra Pvt.
Ltd.

 Construction development sector and infrastructure activities sector received FDI inflows amounting to US$ 25.78 billion and US$ 17.22 billion,
respectively, between April 2000 and September 2020.

 Under Pradhan Mantri Awas Yojana (PMAY-Urban), over 8.1 million houses with an investment of about Rs. 483,000 crore (US$ 69.10 bullion)
were sanctioned, out of which, construction started on around 4.7 million houses. Over 2.6 million houses were completed, of which, nearly 2.4
million houses were delivered to respective beneficiaries.

 Brookfield’s US$ 1.9 billion acquisition of Pipeline Infrastructure India in first quarter of 2019 was the largest PE investment in the sector.

Note: FDI - Foreign Direct Investment,

Source: DPIIT, Media sources, Venture Intelligence & mint Research, EY

23
New investments in Indian infrastructure

New Investment (US$ billion)

Sub-Sectors
FY16 FY17 FY18 FY19 FY20

Roads 37.7 44.5 70.0 36.8 16.3

Railways 23.9 47.8 23.3 33.5 12.3

Power Distribution 7.8 5.9 1.3 13.1 0.5

Power 37.0 22.2 13.7 25.5 13.9

Real Estate 16.1 15.2 19.9 17.9 17.5

Manufacturing 55.5 46.9 43.3 88.6 23.6

Mining 18.1 6.2 9.9 13.7 8.6

Source: Dolat Capital Construction and Infrastructure September 2020

24
Key highlights of union budget 2020-21

 The Government of India has given a massive push to the infrastructure sector by allocating Rs. 1.69 lakh crore (US$ 24.27 billion) for the
transport sector.

 Communication sector allocated Rs. 38,637.46 crore (US$ 5.36 billion) to the development of post and telecommunications departments.

 Indian railways received Rs. 72,216 crore (US$ 10.33 billion), of which, Rs. 64.587 billion (US$ 8.95 billion) is capital expenditure.

 Rs. 91,823 crore (US$ 13.14 billion) has been allocated towards road transport and highway.

 Allocation of Rs. 888.00 crore (US$ 110.88 million) for the upgradation of state Government medical colleges (PG seats) at district hospitals and
Rs. 1,361.00 crore (US$ 188.63 million) for Government medical colleges (UG seats) and Government health institutions.

 The Government has suggested the investment of Rs. 5,000,000 crore (US$ 750 billion) for railways infrastructure between 2018-2030.

 Metro rail network has reached 657 kms.

 To upgrade 1,25,000 km of road length over the next five years, the estimated cost of Rs. 80,250 crore (US$ 12.03 billion) is envisaged under
Pradhan Mantri Gram Sadak Yojana 3 (PMGSY)

 30,000 km of PMGSY roads have been built using Green Technology, Waste Plastic and Cold Mix Technology.

 Government has ensured power availability to states at affordable rates through model - One Nation, One Grid.

 Government has proposed to permit investments made by Foreign Institutional Investor’s (FIIs)/Foreign Portfolio Investments (FPIs) in debt
securities issued by Infrastructure Debt Fund.

 Bharatmala phase 2 to be launched to develop state road networks.

 Government proposed National Mission on Quantum Technologies and Applications with an outlay of Rs. 8,000 crore (US$ 1.14 billion) over a
period of five years.

Source: Union Budget 2020-21

25
Opportunities in Infrastructure

Urban Indian real Government initiatives

estate • India plans to spend US$ 1.4 trillion on
infrastructure through ‘National
• With every sixth urban person
Infrastructure Pipeline’ in the next five
globally being an Indian, the real
years.
estate and construction sector holds
• In December 2020, Prime Minister Mr.
significant opportunity for both global
Narendra Modi laid the foundation stone
and domestic companies engaged
of the All India Institute of Medical
across the value chain.
Science (AIIMS), Rajkot, to boost health
• India will need to construct 43,000
infrastructure and medical education, and
houses every day until 2022 to
provide employment opportunities in
achieve the vision of Housing for All
Gujarat.
by 2022. Hundreds of new cities need
• In December 2020, the Ministry of Road
to be developed over the next
Transport and Highways signed a
decade.
Memorandum of Understanding (MoU)
• This has the potential for catapulting
on Technology Cooperation in the Road
India to the third-largest construction
Infrastructure Sector with the Federal
market globally. The sector is
Ministry of Climate Action, Environment,
expected to contribute 15% to the
Energy, Mobility, Innovation and
Indian economy by 2030.
Technology of the Republic of Austria.
• The recent policy reforms such as the
• In November 2020, the Union Cabinet
Real Estate Act, GST and REITs are
approved investments of Rs. 6,000 crore
steps to reduce approval delays and
are only going to strengthen the real
National Infrastructure (US$ 816.18 million) equity in the debt
platform of National Infrastructure
estate and construction sector. Pipeline Investment Fund (NIIF) for the next two
• As of December 2020, out of Rs. 111 lakh crore (US$ 1.52 years to drive infrastructure growth in the
trillion), projects worth Rs. 44 lakh crore (US$ 601.31 country. This step would assist the
billion), accounting for 40%, are under implementation and organisation to collect Rs. 1.10 lakh crore
projects worth Rs. 22 lakh crore (US$ 300.65 billion) that (US$ 15 billion) for infrastructure project
account for NIP's 20% are under development stages. funding by 2025.

Source: Media sources, Ministry of Finance, M-SIPS - Modified Special Incentive Package Scheme, EDF - Electronics Development Funds

26
Key Industry Contacts

27
Key industry contacts

Agency Contact Information

Address: G 5 and 6, Sector 10, Dwarka

National Highways Authority
New Delhi - 110 075
of India (NHAI)
Phone: 91-11-25074100, 25074200
Fax: 91-11-25093507, 25093514

Address: Rajiv Gandhi Bhawan, Safdarjung Airport,

Airports Authority of India
New Delhi - 110003
(AAI)
Tel: 91-11-24632950

Infrastructure Industry And Address: P-95, South Extension Part - II

Logistics Federation of India New Delhi - 110049
(ILFI) Phone: 91-11-41007091
Fax: 91-11-41007093
Email: dgoffice@ilfi.in , ilfi@ilfi.in
Website: www.ilfi.in

28
Appendix

29
Glossary

 FY: Indian Financial Year (April to March) - So, FY11 implies April 2010 to March 2011

 FDI: Foreign Direct Investment

 CAGR: Compounded Annual Growth Rate

 GOI: Government of India

 R&D: Research and Development

 JV: Joint Venture

 SEZ: Special Economic Zone

 BOT: Build-Operate-Transfer

 IBEF: Indian Brand Equity Foundation

 NHAI: National Highways Authority of India

 PPP: Public-Private-Partnership

 Wherever applicable, numbers have been rounded off to the nearest whole number

30
Exchange rates

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year Rs. Equivalent of one US$ Year Rs. Equivalent of one US$
2004-05 44.95 2005 44.11

2005-06 44.28 2006 45.33

2006-07 45.29 2007 41.29
2007-08 40.24 2008 43.42
2008-09 45.91 2009 48.35
2009-10 47.42 2010 45.74
2010-11 45.58 2011 46.67
2011-12 47.95 2012 53.49
2012-13 54.45 2013 58.63
2013-14 60.50 2014 61.03
2014-15 61.15 2015 64.15
2015-16 65.46 2016 67.21
2016-17 67.09 2017 65.12
2017-18 64.45 2018 68.36
2018-19 69.89 2019 69.89
2019-20 70.49 2020 74.18
2020-21 73.51 2021* 73.25

Note: As of January 2021

Source: Reserve Bank of India, Average for the year

31
Disclaimer

India Brand Equity Foundation (IBEF) engaged Sutherland Global Services private Limited to prepare/update this presentation.

All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF, delivered during the course of
engagement under the Professional Service Agreement signed by the Parties. The same may not be reproduced, wholly or in part in any material
form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this
presentation), modified or in any manner communicated to any third party except with the written approval of IBEF.

This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the
information is accurate to the best of Sutherland Global Services’ Private Limited and IBEF’s knowledge and belief, the content is not to be construed
in any manner whatsoever as a substitute for professional advice.

Sutherland Global Services Private Limited and IBEF neither recommend nor endorse any specific products or services that may have been
mentioned in this presentation and nor do they assume any liability, damages or responsibility for the outcome of decisions taken as a result of any
reliance placed on this presentation.

Neither Sutherland Global Services Private Limited nor IBEF shall be liable for any special, direct, indirect or consequential damages that may arise
due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation.

32