Roads
IDFC has represented and advised NHAI in structuring a unique method for undertaking BOT projects known as the "annuity approach". Under the model, private developers build and maintain BOT projects with a fixed term, generally 15 years, and are compensated by a fixed annuity. Beginning in 2000, several road projects have been developed with this approach.
IDFC has played a key role in opening up of the road sector to private investment and has successfully financed more than 80 road projects in India including the Jaipur - Kishangarh Expressway, Tuni - Anakapalli highway and Tambaram - Tindivanam and has a total exposure of Rs. 7,922 crore in the sector as on March 31, 2008. The road sector has been one of the success stories for the effective implementation of infrastructure projects in PPP format in India and over the next four years the cumulative investment of private developers in the road sector is expected to be in the range of USD 28.125 Billion.
IDFC Projects leverages the core strengths of its parent in the road sector and intends to build and operate large and complex projects in collaboration with national and international project developers and contractors. In addition, the company intends to significantly improve road operation and maintenance procedures in the country by adopting advanced techniques in collaboration with leading international developers.
IDFC Projects, in consortium with PLUS Expressways, has been included in the 'Top 6' bidders short listed for the RFP stage of the Indore-Dewas project being developed by the National Highway Authority of India (NHAI) under the NHDP Phase V on DBFO pattern.
