We believe there are significant opportunities in financing roads especially given our experience with similar projects. Our existing relationship with developers in the road sector enables us to selectively target projects.

The Government recently introduced a number of initiatives to facilitate road development including the implementation of the recommendations of the B K Chaturvedi Committee Report. This report includes changes to the bid document and model concession agreement to incentivize private sector participation.

Going forward, more than three-fourths of the construction under the National Highways Development Programme (“NHDP”) is envisaged to be undertaken through PPP (Toll or Annuity). The National Highways Authority of India (“NHAI”) proposes to award several mega road projects (400-700 km) in the next few years. A number of road projects have been awarded recently and we believe that a large number of them are likely to be awarded over the next 2-3 years.

At IDFC Project Finance, our activities in road financing have focused on projects involving the construction, operation and maintenance of new and existing stretches of national and state highways and expressways, as well as providing related advisory services. We believe we have played a key role in opening up the road sector to private investment.

At IDFC Project Finance

We have financed a number of “build, operate and transfer” (“BOT”) highway projects.

We represented and advised the NHAI in structuring a unique method for undertaking BOT projects known as the “annuity approach”.

We have financed national and state highways, bridges and bypasses and participated in the securitization of toll receivables in existing road projects in a number of states across India.

We are lead lenders in several prominent road projects including national highways in Rajasthan, Andhra Pradesh, Punjab and Maharashtra.

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