Andhra Pradesh Industrial Infrastructure Corporation Limited ...

Andhra Pradesh Industrial Infrastructure

Corporation Limited

DPR for Diversion of Forest

Lands for Establishment of

Industrial Parks

at Ramasingavaram Forest Block

in West Godavari District, Andhra Pradesh

Final Detailed Project Report

April 2016

B1152201

RP017, Rev.A

Prepared By

L&T INFRASTRUCTURE ENGINEERING LIMITED

L&T Infrastructure Engineering Ltd. Client: Andhra Pradesh Industrial Infrastructure Corporation

Limited (APIIC) Parisramabhavanam, 6th Floor, Fateh Maidan Road, Hyderabad – 500 004

Project: DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP

Project No.:

B1152201

Title: Final Detailed Project Report for Ramasingavaram Forest Block

Document No.:

RP017

Rev.:

A

This document is the property of L&T Infrastructure Engineering Ltd. (formerly known as L&T-Rambøll Consulting Engineers Limited) and must not be

passed on to any person or body not authorised by us to receive it nor be copied or otherwise made use of either in full or in part by such person or body without our prior permission in writing.

File path: i:\roads & airports\02-b jobs\b1152201-gbd roads n airports 2015-2016\dpr for eluru forest lands\004-revised final dprs\005-rp017-ramasingavaram-final dpr\005-rp017-ramsingavaram-final dpr.doc

Notes:

1. Revised based on the feedback received from client (Email dated on April 18, 2016 from ZM, Kakinada, APIIC and Email dated on April 01, 2016 from Manager, Eluru, APIIC).

Revision Details:

A 20.04.2016 Second Submission LPN KRM TKSS

0 14.08.2015 First Submission

LPN

SJV

KRM

TKSS KRM

Rev. Date Details Init. Sign. Init. Sign. Init. Sign.

Prepared Checked Approved

Table of Contents

DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP B1152201 Final Detailed Project Report for Ramasingavaram Forest Block RP017 rev. A

Table of Contents Page i

TABLE OF CONTENTS

1 Introduction .....................................................................................................................................1

1.1 Preamble ...................................................................................................................................1 1.2 Data Collection ..........................................................................................................................2 1.3 Site Visit and Meetings .............................................................................................................2 1.4 Structure of the Report ..............................................................................................................2 1.5 Acknowledgement .....................................................................................................................2

2 Site Appreciation ............................................................................................................................3

2.1 Project Site ................................................................................................................................3 2.2 Details of Forest ........................................................................................................................3

2.2.1 Site Map ..........................................................................................................................3 2.2.2 Rehabilitation and Resettlement (R&R) Issues ..............................................................4 2.2.3 Flora and Fauna .............................................................................................................4

2.3 Existing Habitations around Project Site ...................................................................................5 2.4 Demographic Pattern ................................................................................................................5 2.5 Regional Connectivity ...............................................................................................................5

2.5.1 Road ...............................................................................................................................6 2.5.2 Rail ..................................................................................................................................6 2.5.3 Airport and Port Connectivity ..........................................................................................6

2.6 Topography ...............................................................................................................................7 2.7 Soil Profile .................................................................................................................................7 2.8 Climate and Rainfall ..................................................................................................................7 2.9 Infrastructure Availability ...........................................................................................................8

2.9.1 Water ..............................................................................................................................8 2.10 Environmental Considerations ..................................................................................................8

3 Market Study and Demand Assessment ......................................................................................9

3.1 Preamble ...................................................................................................................................9 3.2 Information Sources ..................................................................................................................9 3.3 Location USP ............................................................................................................................9 3.4 Industrial Park Competition .................................................................................................... 10 3.5 Criteria of Assessing Opportunity/Activity Mix for Industrial Park .......................................... 10

3.5.1 Activity Mix ................................................................................................................... 10 3.5.2 Strategic Strengths of Location/ Site ........................................................................... 10 3.5.3 Market Scenario ........................................................................................................... 11

3.6 Evaluation of Target Sector(s) for Proposed Site .................................................................. 11 3.7 Focus Sectors of Industrial Park and Their Impact ................................................................ 12 3.8 Estimated Demand for Space of Focus Sectors .................................................................... 13 3.9 Estimated Revenue ................................................................................................................ 13

4 Site Master Plan ........................................................................................................................... 14

4.1 Preamble ................................................................................................................................ 14 4.2 Planning Concepts ................................................................................................................. 14

4.2.1 Consideration ............................................................................................................... 14 4.2.2 Product Mix .................................................................................................................. 14

4.3 Site Master Plan ..................................................................................................................... 15 4.3.1 Proposed Entry/Exit ..................................................................................................... 15 4.3.2 Circulation and Road Hierarchy ................................................................................... 16 4.3.3 Green /Open Areas ...................................................................................................... 16 4.3.4 Infrastructure Utilities / Common Amenities / Industry Related Facilities .................... 16

4.4 Housing .................................................................................................................................. 17

5 Infrastructure Assessment and Cost Estimation ..................................................................... 18

5.1 Infrastructure Demand Assessment ...................................................................................... 18 5.1.1 Internal Road Network ................................................................................................. 18 5.1.2 Power Supply ............................................................................................................... 18 5.1.3 Water Supply ............................................................................................................... 19 5.1.4 Wastewater Management ............................................................................................ 19


Table of Contents Page ii

5.1.5 Solid Waste Management............................................................................................ 19 5.1.6 Storm Water Management........................................................................................... 19

5.2 Block Cost Estimates ............................................................................................................. 19

6 Cost Benefit Analysis .................................................................................................................. 21

6.1 Introduction ............................................................................................................................ 21 6.2 Overall Approach & Methodology .......................................................................................... 21 6.3 Revenue generation ............................................................................................................... 21 6.4 Cost incurred .......................................................................................................................... 21

6.4.1 Project Investment ....................................................................................................... 21 6.4.2 Land Cost: ................................................................................................................... 21 6.4.3 Cost on Afforestation ................................................................................................... 21 6.4.4 Foregone revenue from the forest land ....................................................................... 21 6.4.5 Interest ......................................................................................................................... 21 6.4.6 Depreciation: ................................................................................................................ 22

6.5 Details of Cost and Benefit .................................................................................................... 22 6.6 Conclusion ............................................................................................................................. 22

7 Financial Analysis ....................................................................................................................... 23

7.1 Introduction ............................................................................................................................ 23 7.2 Objective ................................................................................................................................ 23 7.3 Overall Approach & Methodology .......................................................................................... 23 7.4 Key Assumptions in Financial Modelling ............................................................................... 23 7.5 Flexibility in Financial Model .................................................................................................. 24 7.6 Construction Period and Project Life ..................................................................................... 24 7.7 Project Cost............................................................................................................................ 24 7.8 Financing Structure ................................................................................................................ 25

7.8.1 Funding Structure for the project ................................................................................. 26 7.8.2 Financial Instruments & Cost of Funding ..................................................................... 26

7.9 Depreciation ........................................................................................................................... 27 7.10 Operating Expenses .............................................................................................................. 27

7.10.1 Operation and Maintenance Expenses ....................................................................... 27 7.10.2 Administrative Expenses ............................................................................................. 27 7.10.3 Insurance expenses ..................................................................................................... 27

7.11 Revenue Estimates ................................................................................................................ 28 7.12 Income Tax Calculations ........................................................................................................ 28 7.13 Financial Analysis - Base Case Scenario .............................................................................. 28

7.13.1 Key Parameters ........................................................................................................... 28 7.14 Observations .......................................................................................................................... 29 7.15 Conclusion ............................................................................................................................. 29

8 Conclusion ................................................................................................................................... 30


Table of Contents Page iii

LIST OF FIGURES

Figure 1-1: VCIC Location ........................................................................................................................1 Figure 2-1: Project Location .....................................................................................................................3 Figure 2-2: Location and Views of Project Site ........................................................................................4 Figure 2-3: Existing Settlements within 2km from Project Site ................................................................5 Figure 2-4: Road Rail Connectivity...........................................................................................................6 Figure 2-5: Seaports and Airports Distances from Project Site ...............................................................7 Figure 4-1: Planning Concepts .............................................................................................................. 14 Figure 4-2: Proposed Entry/ Exit Points ................................................................................................ 16 Figure 5-1: Methodology for Infrastructure Assessment ....................................................................... 18

LIST OF TABLES

Table 2-1: Environmental Sensitivity around the Project .........................................................................8 Table 4-1: Proposed Land Use Break up for Industrial Park ................................................................ 15 Table 5-1: Block Cost Estimates ........................................................................................................... 19 Table 7-1 Project Development Schedule ............................................................................................. 24 Table 7-2 : Capital Cost of the Project (2015 prices in Rs Mn) ............................................................. 25 Table 7-3 : Different phases of an infrastructure project ....................................................................... 25 Table 7-4 : Means of Finance ................................................................................................................ 26 Table 7-5: Details on Debt ..................................................................................................................... 27 Table 7-6 : Depreciation Rates .............................................................................................................. 27 Table 7-7: Revenue Details ................................................................................................................... 28 Table 7-8 : Key Input Parameters – Base Case Scenario .................................................................... 28 Table 7-9 : Key results – Base Case Scenario ..................................................................................... 29

LIST OF DRAWINGS

FD0201: Boundary of Ramasingavaram Forest Block on 1:50,000 SOI Topo Sheet FD0401: Site Master Plan FD0402: Circulation Plan FD0403: Typical Cross Sections Rigid 45m & 30m RoWs FD0404: Typical Cross Sections Rigid 24m & 12m RoWs FD0405: Green Area and Green Belt Layout FD0406: Infrastructure Utilities / Common Amenities

LIST OF ANNEXURES

Annexure 1.1: Form A for seeking prior approval under section 2 of the proposals by the state governments and other authorities Annexure 6.1: Annual Benefit from the Project Annexure 7.1: Interest During Construction (IDC) Annexure 7.2: Debt Service Coverage Ratio (DSCR) Annexure 7.3: Profitability Statement Annexure 7.4: Cash Flow Statement Annexure 7.5: Balance Sheet Annexure 7.6: IRR Calculation


Table of Contents Page iv

LIST OF ABBREVIATION AND ACRONYMS

ADB : Asian Development Bank

APIIC : Andhra Pradesh Industrial Infrastructure Corporation Limited

APPCB : Andhra Pradesh Pollution Control Board

BAS : Building Automation System

CAGR : Compound Aggregate Growth Rate

CETP : Common Effluent Treatment Plant

DGPS : Differential Global Positioning System

FIRR : Financial Internal Rate of Return

GBPD : Green Building Performance Disclosure

GoAP : Government of Andhra Pradesh

HVAC : heating, ventilation, air-conditioning

Hectares : Ha

IRR : Internal Rate of Return

KLD : Kilolitres per Day

km : Kilometre

Kmph : Kilometre per hour

L&TIEL : Larsen & Toubro Infrastructure Engineering Limited

MLD : Million Litres per Day

mm Millimetre

Mn : Million

MoEF : Ministry of Environment and Forests

NCAER : National Council of Applied Economic Research

NH : National Highway

NHAI : National Highway Authority of India

R&R : Rehabilitation and Resettlement

RoW : Right of Way

Sq. f : Square Feet

Sq. m : Square Meter

STP : Sewage Treatment Plant

TPD : Tonnes Per Day

VCIC : Vizag – Chennai Industrial Corridor

VK-PCPIR : Visakhapatnam Kakinada Petroleum Chemical Petro-chemical Investment

Region

WACC : Weighted Average Cost of Capital

1

Introduction


1 Introduction Page 1

1 Introduction

1.1 Preamble

Government of Andhra Pradesh (GoAP) has proposed to develop Vizag – Chennai Industrial

Corridor (VCIC) with the financial assistance of Asian Development Bank (ADB). VCIC is a

key segment of the East Coast Economic Corridor and also India’s first coastal economic

corridor. VCIC is aimed at fulfilling the objectives of the Government of India, Make in India

Policy which aimed to promote manufacturing activities. Following Figure 1-1 shows the

VCIC Location.

Figure 1-1: VCIC Location

The initial studies carried out for VCIC projected tremendous growth for Andhra Pradesh in

the next 20 years. Once VCIC becomes functional, the manufacturing output would reach Rs

3,000 billion by 2025 and Rs. 7,825 billions by 2035. The proposed corridor is likely to have a

strong influence on the industrial activities in all the 13 districts of Andhra Pradesh and

therefore there is a need for large tracts of industrial land to keep pace with the projected

industrialisation.

West Godavari, one of the key districts coming within the immediate influence of VCIC has

all the potential to become an industrial hub. GoAP has embarked on major initiative of

positioning West Godavari District as the central hub for various sunrise sectors in an

endeavour to attract investments from National and International Players across the globe.

The district is known as Rice Granary of India and therefore GoAP proposed to promote the

industrialisation in non agricultural lands. In this regard, GoAP identified around 6573.38 Ha

of Reserve Forest Lands located at Unguturu, Nallajerla, Dubacherla, IS Jagannadha Puram,

Bhogolu and Ramasingavaram within the district for the purpose of industrialisation.


1 Introduction Page 2

In order to divert the identified forest lands for Industrial use, it is mandatory to seek approval

from Ministry of Environment and Forests (MoEF) by submitting an Application along with a

Detailed Project Report.

Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC), a wholly owned

subsidiary of Government of Andhra Pradesh (GoAP) been entrusted the task of pursuing

with Ministry of Environment and Forests (MoEF) to procure the forest lands and develop

sector specific Industrial Parks as a part of VCIC development.

APIIC has appointed L&T Infrastructure Engineering Limited (L&TIEL) as Consultants to

prepare the Detailed Project Report and also Application to MoEF for all the six sites

(prescribed Proforma included as Annexure 1.1).

1.2 Data Collection

The project area maps, DGPS survey details, flora and fauna, affortestation costs, details of

existing and proposed industries were collected from West Godavari Collectorate, Forest

Department and APIIC.

1.3 Site Visit and Meetings

L&TIEL Team carried out a detailed visit of the Ramasingavaram Reserved Forest Block on

22nd May 2015. APIIC officials and DGPS survey agencies accompanied the team for the

visit. Further L&TIEL had also attended the weekly review meetings scheduled at of office of

the District Collector.

1.4 Structure of the Report

The present report, Final Detailed Project Report is prepared based on the information

collected from District Collectorate, APIIC, information available on public domain and

internet. Prior to this report, L&TIEL delivered two reports, Preliminary Report and Draft

Project Report and the suggestions given on the earlier reports were accordingly considered

in the present report. The report is structured in the following pattern.

Chapter 1 – Introduction

Chapter 2 – Site Appreciation

Chapter 3 – Market Study and Demand Assessment

Chapter 4 – Site Master Plan

Chapter 5 – Infrastructure Assessment and Cost Estimation

Chapter 6 – Cost Benefit Analysis

Chapter 7 – Financial Analysis

Chapter 8 – Conclusion

1.5 Acknowledgement

L&TIEL sincerely thanks the District Collector and Magistrate for all the courtesy extended to

the project team. L&TIEL also acknowledges the support provided by the officers of the

Forest Department, Industries Department and APIIC.

2

Site Appreciation


2 Site Appreciation Page 3

2 Site Appreciation

2.1 Project Site

The project site, covering an area of about 1,295 Ha (as per the details provided by APIIC

and DGPS survey conducted by Sumadhura Geo Matica Pvt.Ltd) is located in Pedavegi

Mandal of West Godavari District, Andhra Pradesh. The site is connected to NH-16 (NH-5)

on the South, SH-44 on the East, SH-43 on the West. The following Figure 2-1 shows the

location of site.

Figure 2-1: Project Location

2.2 Details of Forest

2.2.1 Site Map

The proposed site comes under Ramasingavaram Block as per the forest department. A map

(DGPS Survey Boundary) showing the Ramasingavaram Block with boundaries is included

as Figure FD0201.

Pictorial illustrations of the project site are given as Figure 2-2.

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Figure 2-2: Location and Views of Project Site

2.2.2 Rehabilitation and Resettlement (R&R) Issues

The entire land is with the Department of Forest and as informed by the authorities, the land

is free from Rehabilitation and Resettlement issues.

2.2.3 Flora and Fauna

The Floristic composition of the Ramasingavaram Forest Block is as follows:

Memecylon edule (Alli)

Zizyphus xylopyrus (Gotti)

Carissa spinarum (Vaka)

Randia dumetorum (Manga chettu)

Mimusops hexandra (Pala)

Azadirachta indica (Vepa)

Dodonaea viscose (Bandedu)

Webera corymbosa (Papidi)

Diospyros sylvatica (Tellagatha)

Maba buxifolia (Tella Alli)

Erythroxylum monogynum (Devadaru)

As per the information from the department, there are no endangered flora and fauna

reported in Ramasingavaram Block.



2.3 Existing Habitations around Project Site

The forest area is surrounded by plantations. The following Figure 2-3 shows the

settlements located within 2 km from the project site.

Figure 2-3: Existing Settlements within 2km from Project Site

2.4 Demographic Pattern

The nearest urban centre to the site is Eluru which is the district head quarters.

As per provisional data of 2011 census, Eluru urban agglomeration had a population of

5,15,000, out of which males were 2,60,000 and females were 2,55,000. The literacy rate

was 75.9%. Eluru Municipal Corporation had a population of 3,27,533. The town has primary

schools, upper primary schools and high schools. With regard to health and medical facilities,

the town has primary health centres, hospitals and dispensaries.

2.5 Regional Connectivity

The proposed site is strategically placed in terms of connectivity (road, rail, air and sea) to

the hinterland markets. The regional connectivity in terms of Road and rail is shown in

Figure 2-4.



2.5.1 Road

The project site is well connected to the other parts of India through NH-16 (NH-5) which is

13km south of the site.

2.5.2 Rail

Chennai - Kolkata Broad Gauge Line is located around 15km from southern boundary of the

Site. Eluru is the nearest station.

Figure 2-4: Road Rail Connectivity

2.5.3 Airport and Port Connectivity

The regional connectivity in terms of Ports & Airports is shown in Figure 2-5.



Figure 2-5: Seaports and Airports Distances from Project Site

The nearest operational port is Kakinada Port (123km). The site has also the advantages of

the proposed Narasapuram Port (91km) and Machilipatnam Port (77km).

2.6 Topography

The overall project site relatively slopes from west to east towards the coast. The site

appears to be plain.

2.7 Soil Profile

The Soils in the district are made up of Alluvial, Black Regur and Red Ferruginous besides a

small belt of arenaceous sandy soils along coastal belt.

2.8 Climate and Rainfall

The climate is moderate both in winter and summer seasons in delta area. The uplands

areas in the district witness severe summer. The normal maximum and minimum

temperatures recorded in the District are 48°C to 19°C respectively.

The District receives its rainfall predominantly from South West Monsoon (785.6mm) as well

and also from North East monsoon (254.6mm).



2.9 Infrastructure Availability

2.9.1 Water

Polavaram Right Bank canal is located in the close proximity and once operational can be

water source for the proposed industrial hub.

2.10 Environmental Considerations

Table 2-1: Environmental Sensitivity around the Project

S.

No Areas Name / Identity

Aerial Distance

(within 15 km)

1 Areas protected under international conventions,

national or local legislation for their ecological,

landscape, cultural or other related value

Nil Nil

2 Areas which are important or sensitive for

ecological reasons - Wetlands, watercourses or

other water bodies, coastal zone, biospheres,

mountains, forests

Nil Nil

3 Areas used by protected, important or sensitive

species of flora or fauna for breeding, nesting,

foraging, resting, over wintering, migration

Nil Nil

4 State, National Highways NH-16 (NH-5), SH-

43 and SH-44

13 km, 9 km and

10 km

5 Defence installations Nil Nil

6 Routes or facilities used by the public for access

to recreation or other tourist, pilgrim areas

SH-43 and SH-44 9km and 10km

7 Inland, coastal, marine or underground waters Polavaram Right

Canal

7km

8 Densely populated or built-up area Eluru 15 km, South

9 Areas occupied by sensitive man-made land

uses (hospitals, schools, places of worship,

community facilities)

Primary Health

Centre

Several PHCs in

different villages

The activities proposed in the IP are mostly green and orange category type of industries.

3

Market Study and Demand Assessment


3 Market Study and Demand Assessment Page 9

3 Market Study and Demand Assessment

3.1 Preamble

West Godavari District with abundant natural,

mineral and agricultural resources and better

connectivity to the New Capital of Andhra

Pradesh would be positioned in the state of

Andhra Pradesh as “the happening district”.

With right initiatives coming from the

government, such as VCIC, the investment

climate will soon transform the District as one

of the key Destination in Andhra Pradesh.

The proposed VCIC is expected to bring a

major industrialisation for the district.

The district is extremely fertile, getting water

abundantly throughout the Cotton barrage built on the Godavari River at Dhavaleswaram.

The barrage channels water through two canals. Topographically the district is divided into

the Delta and the uplands.

In the Delta, aquaculture, coconut, lemon and rice are cultivated. The district is popularly

known as the Granary of India since about 50% of the state's rice production comes from the

district. In the uplands, oil palm, sugarcane, corn, mango, banana and other fruits as well as

tobacco and cotton are produced. In the coastal belt of the district, prawns and fish is

exported to Japan and the United States.

Considering the location advantages, availability of raw materials, connectivity to hinterland,

proximity to three major ports and the land availability, Mega Food Processing seems to be

ideal at Ramasingavaram. The following sections will provide a brief discussion on the

proposed product mix at Ramasingavaram.

3.2 Information Sources

The sector has been evaluated based on the following reports available on the public domain

Agro Processing - Industrial Hubs Investment Forum

India as an Agri and High Value Food Powerhouse: A New Vision for 2030, 2013 - CII-

Mckensey

Overview of Indian Food Processing Industry - D&B-SMERA

The information provided in the above reports have been reviewed and produced in the

following sections.

3.3 Location USP

A Mega Food Processing and Export Hub is one that will allow companies procure, store,

process and export from a single location. The hub will thus help put in place the necessary

backward and forward linkages between industry and agriculture/horticulture sectors along

with storage infrastructure and provide for end-to-end processing facilities across the value

chain. The hub would provide access to world class post-harvest infrastructure by farmers

and processors in the command area covering West Godavari, East Godavari, Krishna,

Guntur (A.P) and Khammam (Telangana) districts.



The comparative locational advantages of the proposed mega food processing and export

hub at Ramasingavaram village in West Godavari district are reflected in the following

factors:

West Godavari and neighbouring districts are agrarian economies endowed with suitable

soils and agro-climatic conditions and fertile soils for the cultivation of cereals and fruits

and vegetables.

The location is part of a vast command area supplying fairly large crop volumes.

The proposed location can be easily accessible to raw material and end products

markets, highways and sea and air ports.

Skilled and technical manpower is abundantly available around the location given the

presence of a large number of technical educational institutions.

3.4 Industrial Park Competition

The food processing sector in the district and the region is predominated by a reasonably

large number of SMEs. The enterprises are widely scattered and vary significantly in scale

and scope of operation. As a result the development of food processing sector in the region

has been more autonomous and unorganised. Supply chain linkages, especially in the fruits

and vegetables processing sub-sector, are weak and value addition very low. Developing an

integrated food processing hub would therefore help forge inter-firm linkages and enhance

the competitive advantage of firms at the sector level in the region.

Notwithstanding the strong raw materials supply base and a meaningfully processing base

no dedicated and well planned food processing hub is present in the region. The proposed

food processing hub near Ramasingavaram will thus be first one of its kind in the region and

does not face competition from similar pre-existing facility.

3.5 Criteria of Assessing Opportunity/Activity Mix for Industrial Park

3.5.1 Activity Mix

The food processing sub-sectors planned to be developed as part the proposed food

processing hub at Ramasingavaram are:

Sub-sector Products

Fruits and Vegetables Pulps, Concentrates, Juices and nectars, Concentrates, Frozen & dehydrated products

Consumer Foods Snack foods, Namkeens, Biscuits, Ready-to-eat foods

Diary Pasteurised and homogenised milk, Whole/skimmed milk powder, Ice cream, Butter and ghee

The choice of the sub-sectors and potential products is based primarily on the strengths of

the region in terms of raw materials base, market potential for the end products, availability of

skilled labour, availability of potable water and accessibility to end products markets and

distribution network.

3.5.2 Strategic Strengths of Location/ Site

The strategic strength of the proposed location lies in its being an integral part of a large

catchment area for a variety of agricultural and horticultural products. Principal crops raised



are paddy, maize, sugarcane, mango, citrus, banana, cashew and oil palm. The proposed

location is also amenable for augmenting power and potable water conveniently.

3.5.3 Market Scenario

Food processing in India is a sunrise sector that has gained prominence in the recent years.

Availability of raw materials, changing lifestyles and liberalised policy environment have

given a considerable push to the industry’s growth. This sector is among the few that serves

as a vital link between the agriculture and industrial segments of the economy. Strengthening

this link is of critical importance to improve the value of agricultural produce; ensure

remunerative prices to farmers and at the same time create favourable demand for Indian

agricultural products in the world market. A thrust to the food processing sector implies

significant development of the agriculture sector and ensures value addition to it.

Indian food processing sector is in a nascent stage. Processing of fruits and vegetables is a

low 2%, around 35% in milk, 21% in meat and 6% in poultry products. Value addition to

agricultural produce in India is just 20%; wastage is estimated to be valued at around US$ 13

billion (Rs. 580 billion).

Notwithstanding the obtaining situation, food processing holds huge potential for

development and making significant contribution to country’s industrial economy in terms of

production, consumption and exports. It could transform the country to be the global food

processing hub and thus attract immense investment opportunities. The Confederation of

Indian Industry (CII) has estimated that the sector has the potential of attracting an aggregate

investment of US$ 33 billion in the next 10 years and generating employment to the tune of 9

million persons.

In the recent years, the sector has recorded rapid growth fuelled by the economic impact of

globalization, rising disposable incomes and changing lifestyles. The sector has an estimated

domestic market size of about US $ 30 billion (Rs.100, 000 crores) and accounts for 32% of

the total food market.

Fruits and vegetables processing is an important sub-sector with a fairly large and diverse

base. It is almost equally distributed between the organized and unorganized sectors, with

the organized sector holding 48% of the share. While products like juices and pulp

concentrates are largely manufactured by the organized sector, the unorganized sector’s

foothold is more visible in traditional areas of processed items like pickles, sauces and

squashes. By size, pickles form the strongest category.

India is major exporter of fresh and processed fruits and vegetables. Exports of fresh fruits

from the country during 2010-2011 are valued at Rs. 1,064.54 crores, while those of fresh

vegetables at Rs.892.94 crores. During the same period, exports of processed fruits and

vegetable aggregated Rs.2,646.90 crores. Middle East and South East Asia, UK and the

Netherlands are the major export destinations. The government expects the processing in

this sector to grow to 10% in 2015 and 25% by 2025.

3.6 Evaluation of Target Sector(s) for Proposed Site

In the fruits and vegetables sub-sector, Andhra Pradesh ranks first in the country in the

production of mangoes, papaya and chillies. More importantly, the state is a major hub for

process able varieties of mango, papaya, tomato, acid lime, pomegranate, okra and onion.



Notwithstanding the presence of strong supply-demand base for fruits and vegetables in the

state, food processing sector has many challenges to confront with. The major challenges

meriting attention are:

Weak linkages between farmers and processors/retailers

Fluctuating and non-remunerative sale prices for the farmers

Inadequate storage and processing facilities within the reach of farmers

High level of post-harvest losses

Considering the growing market on the one hand and the supply side bottlenecks on the

other, the sector offers major opportunities with respect to:

Creating state of the art processing facilities for value addition

Developing Cold Chain facilities

Grading and Packaging support

Distribution and Logistics systems

Dry Warehousing

Irradiation facilities

Considering the strong agro resources and the large potential for developing food processing

industries, the Industrial Policy of Andhra Pradesh, 2015-2020 strategically focuses inter alia

on giving a push to the development of agro & food processing sector.

West Godavari district has been identified as a potential source for value added processing

of tropical fruits and vegetables. The National Horticulture Mission identifies West Godavari a

focus district for the intensive development of mango, Banana, Sapota, Cashew and Loose

Flowers. The key elements of the development strategy emphasise crop area expansion,

rejuvenation/replacement of orchards, strengthening post-harvest infrastructure and value

addition through processing.

3.7 Focus Sectors of Industrial Park and Their Impact

Fruit processing and dairy processing sub-sectors enjoy a natural advantage in West

Godavari and neighbouring districts. West Godavari district has a strong base for fruits and

vegetables cultivation facilitated by fertile soils, suitable agro-climatic conditions, fairly large

crop volumes and most importantly the presence of a large number of small and marginal

farmers who could be nurtured as part of backward linkage. The district is surrounded by

agrarian districts similar agro-climatic conditions which form a large catchment area for raw

materials sourcing.

However, creation of world class industrial infrastructure alone will attract entrepreneurs,

both from across the country and abroad, to invest in fruit and vegetables processing sector.

As a result of reorganisation of Andhra Pradesh recently, there has been a felt shortage of

such infrastructure in the State.

The proposed mega food processing hub will have facilities for:

Well-developed industrial plots and physical infrastructure.

Common infrastructure with the state of the art technology for processing, packing,

branding, quality guaranteeing, storage, traceability and market development.

Cold chain facilities.

Business incubation centres to support innovative agripreneurship ideas.

Anchor tenants for guaranteed demand offtake.

Extension and research support of world class agricultural and technological universities

and institutions.



System of land aggregation in the command area through long term leases while

protecting ownership rights of contract farmers.

The full scale implementation and operation, the proposed hub is expected to:

Channelize aggregate private industrial investments to the tune of Rs. 1800 crores

Provide sustainable employment to an estimated 6,000 skilled and semi-skilled

persons directly and 30,000 persons indirectly. Besides, it would help strengthen

backward linkages with nearly 10,000 farmers in and around the location.

Foster backward linkages with about 20,000 rural poor households for procurement of

fresh milk.

3.8 Estimated Demand for Space of Focus Sectors

Industrial land requirement of anchor firms – 216.50 Ha

Industrial land requirement by complementary firms - 12.14 Ha

Land for common facilities - 8.1 Ha

Land for CETP - 4.05 Ha

Land for administrative buildings, information centre etc. - 2.02 Ha

India is expected to emerge as a major food production and processing hub catering to the

world markets by 2025. As a sequel to the growth prospects for food processing in the

country, sizeable FDIs are likely to flow in. With a strong raw material base and proactive

investment promotion policy, Andhra Pradesh will be the preferred destination for FDIs.

The surplus land of 758 Ha near Ramasingavaram could be utilized for leveraging this

opportunity. Therefore, from the long run perspective, the land could be utilized for

developing: Phase-II of Mega Food and Export Hub; New Rice Milling Cluster, Veterinary

Food Processing Complex; Maize and Millets Processing Complex. The balance of the land

could be utilized for setting up of a Food Production and Processing R&D facility.

3.9 Estimated Revenue

S. NO Name of Forest Block Type of industry Revenue Per Ha

(Rs Crore)

1 Ramasingavaram

Mega Food Processing Hub

39.52 Fruits and Vegetables

Consumer Foods

Diary

4

Site Master Plan


4 Site Master Plan Page 14

4 Site Master Plan

4.1 Preamble

A state-of-the-art Master Planning incorporating holistic and sustainable industrial

development concepts shall include:

Long term vision with focus on international competence

Focus on integrated infrastructure

Optimal utilisation of available land and flexibility in plot division

Optimal use of natural resources including energy conservation measures

Traffic management

Integration of operation and management aspects

Such an approach shall ensure that various stake holders of the project as well as the

environment are benefited.

4.2 Planning Concepts

The planning concepts considered for the site master planning are presented in the following

Figure 4-1.

Figure 4-1: Planning Concepts

4.2.1 Consideration

The site boundary provided by APIIC is the base for preparation of the Site Master Plan

for the project site.

Surrounding land use and wind direction taken into consideration for the land use plan

proposed within the site

Existing connectivity to the site are NH-16 (NH-5), SH-43 and SH-44 at a distance of 13

km, 9 km and 10 km respectively.

4.2.2 Product Mix

Based on the Market Study Assessment, product mix considered is Mega Food Processing.



There is a demand of 242.81 Ha for food processing units in the project site. It is proposed to

develop 237.96 Ha of industrial land in the project site in the first phase and the remaining

industrial land of 757.98 Ha to be developed in the second phase – which may include future

industrial demand, R&D, other allied infrastructure. Master plan is shown for both the phases.

4.3 Site Master Plan

The following land uses are proposed in the Industrial Parks.

Industrial Use

Common Amenities (admin, training canters, QA, QC testing canters, Fire Station etc)

Infrastructure Utilities (Water Treatment Plant, Common Effluent Treatment Plant, Power

Stations, Landfill Site etc)

Green Areas and Green Belt

Logistics

Road Network

The area break up of all the proposed activities in the project site (two phases) is shown in

the following Table 4-1.

Table 4-1: Proposed Land Use Break up for Industrial Park

S. No Type of activity Area in Ha % to total area

1. Industrial 932 72.0

2. Common amenities 28 2.2

3. Infrastructure Utilities 35 2.7

4. Logistics 19 1.4

5. Green Area 48 3.7

6. Green Belt 130 10.0

7. Roads 103 8.0

Total Area 1,295 100

The total industrial land proposed in the industrial park covers 72% of the total area. Green

areas/green belt cover around 14% and the roads cover around 8%. The balance land is

proposed for the infrastructure utilities, common amenities, administrative building, common

parking space and industry related facilities which accounts to around 6%.

Site master plan is provided as Figure FD0401.

4.3.1 Proposed Entry/Exit

Proper planning of Entry/Exit is essential for effective functioning of the Industrial Park. There

is one entry/exit proposed in the Industrial Park area and is shown as Point 1. Exclusive

emergency entry/exit is proposed and is shown as Point 2 in Figure 4-2. In the case of

emergency, the Industrial Park users can utilise the emergency entry/exit which is linking to

the existing SH-44 via Kuchimpudi village road.

25 Ac.

ENTRY/EXIT

EMERGENCYENTRY/EXIT

TO SH4325 Ac.

15 Ac.

50 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

20 Ac.25 Ac.

17 Ac.

28 Ac.

25 Ac.

25 Ac.22 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

15 Ac.

25 Ac.25 Ac.

50 Ac.

50 Ac.

23 Ac.

25 Ac.

50 Ac.

50 Ac.

22 Ac.

50 Ac.

50 Ac.

50 Ac.

50 Ac.

50 Ac.

10 Ac.

42 Ac.

50 Ac.

32 Ac.

25 Ac.

30 Ac.

30 Ac.

16 Ac.20 Ac.

46 Ac.

50 Ac.

50 Ac.

32 Ac.

50 Ac.

50 Ac.

50 Ac.

32 Ac.

20 Ac.20 Ac.

20 Ac.20 Ac.

20 Ac.20 Ac.

13 Ac.

18 Ac.

20 Ac.22 Ac.

20 Ac.20 Ac.

20 Ac.

15 Ac.

43 Ac.

20 Ac.

20 Ac.

18 Ac.

INFRASTRUCTURE UTILITIES

PHASE-2 INDUSTRIAL AREA (723 Ha.)COMMON AMENITIES

LOGISTICSGREEN AREASGREEN BELT

LEGEND

0.5 Km

SCALE IN KILO METRES

0 Km 1 Km

2 Ac.

RAMASINGAVARAM - 1295 Ha. AREA (Ha.) %INDUSTRIAL (MEGA FOOD PROCESSING HUB) 932 72.0COMMON AMENITIES 28 2.2INFRASTRUCTURE UTILITIES 35 2.7LOGISTICS 19 1.4GREEN AREA 48 3.7GREEN BELT 130 10.0ROADS 103 8.0

TOTAL 1295 100%STREAM AREA 38

Road Lengths In Metres In km45 M Row 8973 9.030 M Row 11887 11.924 M Row 5278 5.312 M Row (Periphery Road) 15499 15.5

N

45 M WIDE ROW

45 M WIDE ROW

45 M

WID

E RO

W

45 M

WID

E RO

W

45 M WIDE ROW

45 M WIDE ROW30 M

WID

E RO

W

30 M

WID

E RO

W

45 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

30 M

WID

E RO

W

30 M

WID

E RO

W

30 M

WID

E RO

W

30 M

WID

E RO

W

30 M

WID

E RO

W

30 M WIDE ROW

24 M WIDE ROW

30 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

TO SH 44/ELURU

KEY MAP-WEST GODAVARI DISTRICT

East Godavari

Krishna

Khammam

DEVARAPALLI

BHIMADOLE

PARIMPUDI

SH 6

SH 42

SH 44

NH 5 (AH 45)

ELURU

TANUKU

TOVIJAYAWADA/

CHENNAI

TO KHAMMAM/HYDERABAD

YERRA KALUVARESERVOIR

RIVER GODAVARI

SCR MAIN LINE

DWARAKATIRUMALA

JANGAREDDIGUDEM

GNT ROAD

TORAJAHMUNDRY/

VISAKHAPATNAM/KOLKATA

SH 43

SH 42

SH 42

TADEPALLIGUDEM

NH165(NH 214)

NH 216

NH 214A

PHASE-1 INDUSTRIAL AREA (209 Ha.)

17 Ac.

25 Ac.

25 Ac.

9 Ac.

15 Ac.

15 Ac.

13 Ac.

24 Ac.

55 Ac. 25 Ac.

50 Ac.

50 Ac.

2 Ac.

TO ONGOLE

&T

In

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Point 1

Point 2

Figure 4-2: Proposed Entry/ Exit Points

4.3.2 Circulation and Road Hierarchy

The entire IP will have different hierarchy of roads, with the primary road of 45m and 30m

RoW. The secondary roads are of 24m and 12m RoW. The entire circulation plan is shown in

Figure FD0402.

Typical Cross sections of the RoW are provided in Figure FD0403 and Figure FD0404.

Green belt proposed along the boundary will have peripheral road for maintenance purpose.

The cross sections also include utility corridor (water, power, wastewater, telecom network,

etc) and foot path for pedestrian traffic.

4.3.3 Green /Open Areas

Green belt is proposed along the site boundary. Green areas are also proposed near the

infrastructure utilities to serve as recreational facilities and lung spaces. In addition to this, all

the industrial units shall develop green areas within their premises as per the prevailing

Andhra Pradesh Pollution Control Board (APPCB) provisions.

The green areas proposed are shown in Figure FD0405.

4.3.4 Infrastructure Utilities / Common Amenities / Industry Related Facilities

The following amenities are proposed in the site and proposed location is shown in Figure

FD0406.

Truck parking and dormitory

Administrative building

Fire station at prominent locations near the entrances

Community hall, recreational spaces, banks and ATMs, post office, restaurants,

cafeterias, fuel filling station, hotel, convention centre, etc at convenient locations

distributed so that it can be easily accessed

Wastewater treatment plant (CETP)

Solid waste management

Hospital/ Clinic at convenient locations

LEGEND

0.5 Km0 Km 1 Km

RAMASINGAVARAM AREA (Ha.) %LOGISTICS 19 1.4

ROADS 48 8.0

TOTAL 67Road Lengths In Metres In km

45 M Row 8973 9.030 M Row 11887 11.924 M Row 5278 5.312 M Row (Periphery Road) 15499 15.5

24 M WIDTH RoW

45 M WIDTH RoW

30 M WIDTH RoW

12 M PERIPHERAL ROAD

LOGISTICS



25 Ac.

ENTRY/EXIT

EMERGENCYENTRY/EXIT

TO SH4325 Ac.

15 Ac.

50 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

20 Ac.25 Ac.

17 Ac.

28 Ac.

25 Ac.

25 Ac.22 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

15 Ac.

25 Ac.25 Ac.

50 Ac.

50 Ac.

23 Ac.

25 Ac.

50 Ac.

50 Ac.

22 Ac.

50 Ac.

50 Ac.

50 Ac.

50 Ac.

50 Ac.

10 Ac.

42 Ac.

50 Ac.

32 Ac.

25 Ac.

30 Ac.

30 Ac.

16 Ac.20 Ac.

46 Ac.

50 Ac.

50 Ac.

32 Ac.

50 Ac.

50 Ac.

50 Ac.

32 Ac.

20 Ac.20 Ac.

20 Ac.20 Ac.

20 Ac.20 Ac.

13 Ac.

18 Ac.

20 Ac.22 Ac.

20 Ac.20 Ac.

20 Ac.

15 Ac.

43 Ac.

20 Ac.

20 Ac.

18 Ac.

2 Ac.

N

45 M WIDE ROW

45 M WIDE ROW

45 M

WID

E RO

W

45 M

WID

E RO

W

45 M WIDE ROW

45 M WIDE ROW30 M

WID

E RO

W

30 M

WID

E RO

W

45 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

30 M

WID

E RO

W

30 M

WID

E RO

W

30 M

WID

E RO

W

30 M

WID

E RO

W

30 M

WID

E RO

W

30 M WIDE ROW

24 M WIDE ROW

30 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

TO SH 44/ELURU


East Godavari

Krishna

Khammam

DEVARAPALLI

BHIMADOLE

PARIMPUDI

SH 6

SH 42

SH 44

NH 5 (AH 45)

ELURU

TANUKU

TOVIJAYAWADA/

CHENNAI



RIVER GODAVARI

SCR MAIN LINE

DWARAKATIRUMALA

JANGAREDDIGUDEM

GNT ROAD

TORAJAHMUNDRY/


SH 43

SH 42

SH 42

TADEPALLIGUDEM

NH165(NH 214)

NH 216

NH 214A

17 Ac.

25 Ac.

25 Ac.

9 Ac.

15 Ac.

15 Ac.

13 Ac.

24 Ac.

55 Ac. 25 Ac.

50 Ac.

50 Ac.

2 Ac.

&T

In

fra

stru

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Ltd

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L&

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am

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ultin

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in

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L

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&T

In

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stru

ctu

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E

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in

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rin

g

Ltd

.

L&

T-R

am

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ultin

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GREEN AREAS

GREEN BELT

LEGEND

0.5 Km


0 Km 1 Km

RAMASINGAVARAM AREA (Ha.) %GREEN AREA 48 3.7

GREEN BELT 130 10.0

TOTAL 178Road Lengths In Metres In km

45 M Row 8973 9.030 M Row 11887 11.924 M Row 5278 5.312 M Row (Periphery Road) 15499 15.5



25 Ac.

ENTRY/EXIT

EMERGENCYENTRY/EXIT

TO SH4325 Ac.

15 Ac.

50 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

20 Ac.25 Ac.

17 Ac.

28 Ac.

25 Ac.

25 Ac.22 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

15 Ac.

25 Ac.25 Ac.

50 Ac.

50 Ac.

23 Ac.

25 Ac.

50 Ac.

50 Ac.

22 Ac.

50 Ac.

50 Ac.

50 Ac.

50 Ac.

50 Ac.

10 Ac.

42 Ac.

50 Ac.

32 Ac.

25 Ac.

30 Ac.

30 Ac.

16 Ac.20 Ac.

46 Ac.

50 Ac.

50 Ac.

32 Ac.

50 Ac.

50 Ac.

50 Ac.

32 Ac.

20 Ac.20 Ac.

20 Ac.20 Ac.

20 Ac.20 Ac.

13 Ac.

18 Ac.

20 Ac.22 Ac.

20 Ac.20 Ac.

20 Ac.

15 Ac.

43 Ac.

20 Ac.

20 Ac.

18 Ac.

2 Ac.

N

45 M WIDE ROW

45 M WIDE ROW

45 M

WID

E RO

W

45 M

WID

E RO

W

45 M WIDE ROW

45 M WIDE ROW30 M

WID

E RO

W

30 M

WID

E RO

W

45 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

30 M

WID

E RO

W

30 M

WID

E RO

W

30 M

WID

E RO

W

30 M

WID

E RO

W

30 M

WID

E RO

W

30 M WIDE ROW

24 M WIDE ROW

30 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

TO SH 44/ELURU


East Godavari

Krishna

Khammam

DEVARAPALLI

BHIMADOLE

PARIMPUDI

SH 6

SH 42

SH 44

NH 5 (AH 45)

ELURU

TANUKU

TOVIJAYAWADA/

CHENNAI



RIVER GODAVARI

SCR MAIN LINE

DWARAKATIRUMALA

JANGAREDDIGUDEM

GNT ROAD

TORAJAHMUNDRY/


SH 43

SH 42

SH 42

TADEPALLIGUDEM

NH165(NH 214)

NH 216

NH 214A

17 Ac.

25 Ac.

25 Ac.

9 Ac.

15 Ac.

15 Ac.

13 Ac.

24 Ac.

55 Ac. 25 Ac.

50 Ac.

50 Ac.

2 Ac.

TO ONGOLE

&T

In

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stru

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Ltd

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L&

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INFRASTRUCTURE UTILITIES

COMMON AMENITIES

LEGEND

0.5 Km


0 Km 1 Km

RAMASINGAVARAM AREA (Ha.) %COMMON AMENITIES 28 2.2

INFRASTRUCTURE UTILITIES 35 2.7

TOTAL 63


East Godavari

Krishna

Khammam

DEVARAPALLI

BHIMADOLE

PARIMPUDI

SH 6

SH 42

SH 44

NH 5 (AH 45)

ELURU

TANUKU

TOVIJAYAWADA/

CHENNAI



RIVER GODAVARI

SCR MAIN LINE

DWARAKATIRUMALA

JANGAREDDIGUDEM

GNT ROAD

TORAJAHMUNDRY/


SH 43

SH 42

SH 42

TADEPALLIGUDEM

NH 214

NH 214A



25 Ac.

ENTRY/EXIT

EMERGENCYENTRY/EXIT

TO SH4325 Ac.

15 Ac.

50 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

20 Ac.25 Ac.

17 Ac.

28 Ac.

25 Ac.

25 Ac.22 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

25 Ac.25 Ac.

15 Ac.

25 Ac.25 Ac.

50 Ac.

50 Ac.

23 Ac.

25 Ac.

50 Ac.

50 Ac.

22 Ac.

50 Ac.

50 Ac.

50 Ac.

50 Ac.

50 Ac.

10 Ac.

42 Ac.

50 Ac.

32 Ac.

25 Ac.

30 Ac.

30 Ac.

16 Ac.20 Ac.

46 Ac.

50 Ac.

50 Ac.

32 Ac.

50 Ac.

50 Ac.

50 Ac.

32 Ac.

20 Ac.20 Ac.

20 Ac.20 Ac.

20 Ac.20 Ac.

13 Ac.

18 Ac.

20 Ac.22 Ac.

20 Ac.20 Ac.

20 Ac.

15 Ac.

43 Ac.

20 Ac.

20 Ac.

18 Ac.

2 Ac.

N

45 M WIDE ROW

45 M WIDE ROW

45 M

WID

E RO

W

45 M

WID

E RO

W

45 M WIDE ROW

45 M WIDE ROW30 M

WID

E RO

W

30 M

WID

E RO

W

45 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

30 M

WID

E RO

W

30 M

WID

E RO

W

30 M

WID

E RO

W

30 M

WID

E RO

W

30 M

WID

E RO

W

30 M WIDE ROW

24 M WIDE ROW

30 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

TO SH 44/ELURU


East Godavari

Krishna

Khammam

DEVARAPALLI

BHIMADOLE

PARIMPUDI

SH 6

SH 42

SH 44

NH 5 (AH 45)

ELURU

TANUKU

TOVIJAYAWADA/

CHENNAI



RIVER GODAVARI

SCR MAIN LINE

DWARAKATIRUMALA

JANGAREDDIGUDEM

GNT ROAD

TORAJAHMUNDRY/


SH 43

SH 42

SH 42

TADEPALLIGUDEM

NH165(NH 214)

NH 216

NH 214A

17 Ac.

25 Ac.

25 Ac.

9 Ac.

15 Ac.

15 Ac.

13 Ac.

24 Ac.

55 Ac. 25 Ac.

50 Ac.

50 Ac.

2 Ac.

TO ONGOLE

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In

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Apart from the above common amenities, Industrial park will also include industry related

facilities like R&D centres, material testing centres, QC laboratories, training centres,

weigh bridge, exhibition cum business centre, etc.

4.4 Housing1

Proposed park will generate employment and it is proposed that the nearest urban centres

will be serving the housing needs of the employees.

1 This proposal on housing was based on the discussions on submission of the Preliminary Report and review

meeting on May 29, 2015 at Collector & District Magistrate Office, Eluru, W.G District, Andhra Pradesh.

5

Infrastructure Assessment and Cost Estimation


5 Infrastructure Assessment and Cost Estimation Page 18

5 Infrastructure Assessment and Cost Estimation

The following infrastructure is proposed for the Industrial park.

Road Network

Water supply

Wastewater management

Storm water management

Solid waste management

Power supply system

Infrastructure demand and block cost are estimated for the land to be developed in phase I.

5.1 Infrastructure Demand Assessment

Infrastructure demand assessment for the site is carried out considering the proposed land

use, area break up. The following Figure 5-1 shows the methodology adopted for

infrastructure assessment of the site.

Figure 5-1: Methodology for Infrastructure Assessment

5.1.1 Internal Road Network

The master plan of project site is proposed such that it provides an efficient road network.

This network ensures that all parts of the site are effectively connected with each other with

efficient traffic movements. Proposed different RoW in project site are 45 m, 30 m and 24 m.

12 m wide road is used as peripheral road for service and also for emergency exit at the time

of fire hazard. The road cross-sections is proposed based on the RoW for various categories

of roads in the master plan.

5.1.2 Power Supply

The total power demand for the industries in the project site will be 41MVA.



5.1.3 Water Supply

Total water demand for various uses in the industrial park includes process water, green belt

maintenance, fire demand, drinking, flushing, etc. The total water demand for the park is

estimated at 10 MLD.

5.1.4 Wastewater Management

Wastewater is generated from the industrial use, common amenities proposed in the project

site. It is broadly classified as industrial effluents and domestic wastewater. The total

wastewater estimated to be generated from the site is 8 MLD.

To increase the treatment efficiency, it is proposed to mix the industrial effluent with the

sewage and treated in the Common Effluent Treatment Plant (CETP).

5.1.5 Solid Waste Management

The total solid waste generation from the project site is estimated at 3 TPD.

5.1.6 Storm Water Management

Storm water drains are proposed within the RoW of Roads.

5.2 Block Cost Estimates

Block cost estimates for the infrastructure development of the site is based on the

infrastructure demand and line estimates.

Site grading will costs around Rs.57 Crores

The total cost for development of road network in the industrial parks is estimated at Rs.

70 Crores

Cost for development of streetlights is estimated at Rs.3 Crores

Total cost for development of water supply and distributions costs Rs.7 Crores

Drainage costs around Rs.19 Crores

Wastewater management costs about Rs.40 Crores

Cost for solid waste management is estimated as Rs.1 Crores. Industrial waste is

proposed to be managed by contractor to be engaged by industry/APIIC

Cost for development of green belt, landscaping, admin and security cabin is estimated at

Rs.7 Crores

For power component, it is assumed that power will be supplied by the Government

(APTRANSCO) and the industries will be charged based on the usage

Table 5-1: Block Cost Estimates

S. No Item Cost (in Rs. Crores)

1. Site Grading 57

2. Road network and signages 70

3. Street lights 3

4. Water supply network including storage 7

5. Drainage 19

6. Wastewater Management 40

7. Solid Waste Management 1



S. No Item Cost (in Rs. Crores)

8. Green belt, landscaping, admin & security cabin 7

Sub Total 204

Engineering and project management @ 2.5% 5

Contingency@ 5% 10

TOTAL COST 219

6

Cost Benefit Analysis


6 Cost Benefit Analysis Page 21

6 Cost Benefit Analysis2

6.1 Introduction

Government of Andhra Pradesh (GoAP) decides to utilise forest land for setting up of

industrial parks. As required by the GoI policy, the cost and benefit from the forest land

conversion has to be estimated prior to the conversion of forest land to industrial lands. This

Chapter covers the Cost Benefit analysis of Mega food processing Hub at Ramasingavaram,

Andhra Pradesh.

6.2 Overall Approach & Methodology

The cost benefit analysis has been carried out by analysis the benefit generated by the

business that will be established in the converted land against the expense / cost incurred in

the conversion process.

6.3 Revenue generation

The revenue from the converted land comes to Rs.395.2 Mn per Ha. The revenue

generating space in the project comes to 238 Ha with that the total revenue from the project

is estimated at Rs.94,080 Mn.

6.4 Cost incurred

The details of the cost incurred while converting the forest land to the industrial land are

given in the following paragraphs.

6.4.1 Project Investment

The capital outlay incurred for the development is estimated at Rs.20,040 Millions.

6.4.2 Land Cost:

APIIC has to pay Forest Department an amount of Rs 0.8 Mn per Ha as the cost of forest

land.

6.4.3 Cost on Afforestation

APIIC has to carry out a compensatory afforestation effort for utilising the earmarked for the

development of Industrial Park. The capital expenditure for afforestation efforts comes to

about Rs 0.54 Mn per Ha where as the maintenance expenses for the same comes to

around Rs 0.25 Mn per Ha per annum.

6.4.4 Foregone revenue from the forest land

The foregone revenue from the forest land comes to around Rs 1.20 Mn per Ha. Same has

been considered for the cost – benefit analysis.

6.4.5 Interest

The interest incurred in funding the project comes to 12% per annum. The interest expense

has been considered on the development cost estimated for the project.

2 Cost Benefit Analysis is carried out for Phase I development of the site.


6 Cost Benefit Analysis Page 22

6.4.6 Depreciation:

The details of the depreciation to be charged on the project assets are given in the following

table.

Depreciation Rate of Depreciation % w.r.t to capital cost

Civil 3.33% 55%

Electrical 7.42% 15%

Mechanical 7.42% 20%

Msc Assets 7.42% 10%

The total depreciated amount comes to Rs.1036 Mn.

6.5 Details of Cost and Benefit

The Overall benefits from the project comes to Rs.94,080 Mn where as the expenses

incurred on converting forest land comes to Rs.24,177 Mn. The details of the analysis is

given in Annexure 6.1

6.6 Conclusion

The revenue from the converted land justifies the cost incurred for the conversion exercise

as the overall B/C (Benefit / Cost) ratio comes to 3.89:1.

7

Financial Analysis


7 Financial Analysis Page 23

7 Financial Analysis3

7.1 Introduction

Financial feasibility is a key determinant in a business oriented investment decision. A project

will attract investors and all other stakeholders only if the project generates sufficient

revenues, during the project life, to cover the initial and additional investment costs, if any,

plus a sufficient return on investment.

The viability study on financials include the key standard parameters like Post Tax Project

Internal Rate of Return (IRR), Equity IRR and Coverage ratios to ascertain the debt servicing

capability of the project.

This Chapter covers the financial viability for the Development of Mega food processing Hub

at Ramasingavaram, Andhra Pradesh.

7.2 Objective

The primary objectives of the financial analysis are to evaluate the financial viability of the

project and to ascertain whether the project shall be attractive for its various stake holders.

7.3 Overall Approach & Methodology

The overall approach to evaluate financial feasibility of the project involves determination of

Financial Internal Rate of Return (FIRR) for the Project and comparing it with the Weighted

Average Cost of Capital (WACC). This approach is preferred for infrastructure projects in

which tariffs/ user fees can be levied and recovered with a reasonable certainty. The

emphasis is on checking the adequacy of projected revenue streams to recover the capital

investment and desired returns. The steps followed under this approach are:

Project Phasing and estimation of Capital Expenditure

Means of Finance

Identifying revenue sources and estimating the project revenues

Estimation of capital costs, operating expenses and financing costs over the project horizon

Drawing up of profit & loss and cash flow statements for project

Estimation of net operating cash flows for the project

Calculation of IRR and ADSCR

7.4 Key Assumptions in Financial Modelling

The financial model takes inputs from the detailed technical studies done for the project &

other data sources for financial assumptions.

1. The financial analysis has been carried at nominal prices, as the nominal price method attempts to capture the effect of economic environment of the project.

2. The capital costs for all the project elements of Industrial park have been taken and same shall be escalated by 5% per annum on 2015 prices to derive the subsequent project development costs.

3 Financial Analysis is carried out for Phase I development of the site.



3. The project will developed in single phase.

4. Indigenous capital cost and operating cost escalation has been assumed at 5% p.a.

5. Economic assumptions have been derived from the values of base indicators for the Year 2015-16.

6. Financing Assumptions and data relating to loans, interest rates, tenure etc. have been taken on the basis of prevailing market trends.

7. Depreciation rates, tax rates and concessions applicable to infrastructure projects have been taken as per the guidelines of Companies Act and Income Tax Act.

7.5 Flexibility in Financial Model

The financial analysis is based on the master plan. However, the model provides flexibility in

choosing and executing a different land absorption forecasts. The model also provides

flexibility in choosing financing mix for the project. The funds requirement in a particular year

can be met through various sources of debt and equity. The model incorporates the flexibility

of using different capital structures (D/E mix) for different phases.

7.6 Construction Period and Project Life

The project shall be developed in single phase in tandem with the land absorption projection

made for the project. As per the proposed schedule of implementation, the construction is

assumed to begin from April 01, 2016. The construction period, including post construction

activities like commissioning, is assumed to be requiring 18 months for the development. The

COD may thus be assumed as 30 September, 2017. The details on major project milestones

are given in Table 7-1.

Table 7-1 Project Development Schedule

Construction Details- Phase I

Construction Start Period 01-Apr-16

Construction period ( in months) 18

First FY during Construction 31-Mar-17

Completion of Construction 30-Sep-17

Fy after completion of Construction 31-Mar-18

No of Operating Months in the first year after COD 12

Period considered for viability study (in years) 30

Last Financial Year 31-Mar-46

Working months in the last F Year 12

7.7 Project Cost

The cost of the project is estimated at Rs. 2,897 Million (at 2015 prices). This cost is spread

over a period between years 2016 and 2017. The cost includes civil development cost, water



supply and distribution network, external road connectivity, green belt development,

Equipment cost etc. The land cost is estimated at Rs 1.33 Mn per Ha, which consist of Rs

0.8 Mn per Ha to be paid to Forest department and the compensatory afforestation cost of

Rs 0.54 Mn per Ha. The break-up of this cost (major heads) are given in Table 7-2.

Table 7-2 : Capital Cost of the Project (2015 prices in Rs Mn)

PROJECT LANDING COST IN RS Mn Amount in Rs Mn

Civil Cost 1,122

Electrical 306

Mechanical 408

Msc Assets 204

Block capital Cost 2,040

Land and Site Developments 439

Contingency @ 5% 102

Engineering and Project Management @ 2.5% 51

Preoperative expenses 42

Financing cost 21

Interest During Cost 201

Landing Project Cost 2,897

7.8 Financing Structure

The financing structure reflects the risk of the projects, the security requirements of the

lenders and financing requirements of the sponsors. The financing structure of a project also

depends on the stage in lifecycle of the project. Infrastructure projects have three distinct

phases with different risks. Both equity investors and lenders can be expected to seek

different rewards and expect different guarantees depending upon which phase they are

investing in. A typical Infrastructure project would involve the following phases as given in

Table 7-3.

Table 7-3 : Different phases of an infrastructure project

Phase Risks Financing

Development phase Very high risk Only equity, mainly from sponsors

Construction/start-up phase

High risk Large volume of finance required. Mixture of equity & Senior debt is used under this phase.

Public utility/operation phase

Lower risk Refinancing with bonds or equity possible; high D/E ratios could be explored.



Also in the initial years of a project, greater equity participation may be more appropriate

mode of funding, since if debt is used, interest cost would mount substantially due to the lack

of any cash income in the development and construction phases of the project. But the

availability of equity is bound to pose problem due to the magnitude of risks involved.

The challenge for developers in structuring financing packages is to secure debt with

maturities long enough to match capital servicing cash flow requirements with the limited

inflows in the initial phases.

Financing has been exclusively based on loans from the commercial banks, bilateral

agencies and equity from the sponsors. Capital market sources have hardly been used in

these projects. Also, equity financing has contributed a relatively small share of the financing.

Infrastructure projects in developing countries usually have a financing pattern of 30-40%

equity & 60-70% debt.

7.8.1 Funding Structure for the project

It is considered that APIIC would raise sufficient fund in the form of Own fund and through

debt raised from multilateral agencies / commercial banks. The funding structure refers to the

mix of debt and equity components used as means of finance. We have considered a

conservative D/E ratio of 1.5:1 for funding the project. The details of Means of finance are

given in Table 7-4.

Table 7-4 : Means of Finance

Source of Fund Amount in Rs Mn Composition %

Equity 1132 39.1%

Debt 1698 58.6%

Non Refundable Deposit 67 2.3%

Total 2897 100%

7.8.2 Financial Instruments & Cost of Funding

The preferable financing sources/instruments, their tenure and dividend/interest on them are

given below:

Equity Structure

The equity contribution would be from the project promoter raised from own sources. The

Equity structure can either be consisting of a single member or may be of a consortium

formed by various equity contributors (state agencies) having interest in the same project.

Term Loan from Commercial Banks

The potential sources of rupee debt include Indian Term Lending Institutions, Scheduled

Commercial Banks, and Infrastructure Development Financing Agencies. These institutions

are generally lent to infrastructure projects at rupee term loan interest for a longer tenure of

upto 10 to 12 years. Commercial Banks loans would have a moratorium period of 1year.

The current prime lending rate of Commercial Banks is 11.50 to 13.50 % per annum. Most

infrastructure projects get term loans at PLR less 0.5 to 1.5%, depending upon the promoter

and the project revenue stream. In view of the continual decrease in prime lending rates over

the last few years, a rate of 12.00% is considered for the project. The details on debt are

given in Table 7-5.



Table 7-5: Details on Debt

Details on Debt

Interest on Senior Debt 12.00%

Processing charges 0.75%

Tenor

Period under construction (in years) 1.5

Moratorium ( in years) 1

Repayment Period (in years) [Ballooned Repayment] 3

7.9 Depreciation

Depreciation rates have been taken based on the current statutory requirements of Income

Tax Act and Companies Act. The Written down Value Method has been used for the purpose

of Income Tax, and the Straight Line Method is adopted for the Companies Act purposes.

The rates are assumed based on the following categories of charges:

Table 7-6 : Depreciation Rates

Depreciation Rates Rate SLM (%) Rate WDV (%)

Civil Cost 3.34% 10.00%

Electrical 7.42% 15.00%

Mechanical 7.42% 15.00%

Msc Assets 7.42% 15.00%

7.10 Operating Expenses

Expenses are recurring in nature and would be incurred on day to day basis. These include

Operating and Maintenance expenses, administration expenses, insurance premium etc. The

expenses details are given in following paragraphs.

7.10.1 Operation and Maintenance Expenses

For the operation and maintenance of the park, a provision of 2.50% on the block cost has

been considered which will be escalated by 5% per annum.

7.10.2 Administrative Expenses

The administrative expenses for the project are estimated at 1% of the Block cost. The

expense will be escalated by 5% per annum.

7.10.3 Insurance expenses

Insurance shall be taken so as to mitigate any unforeseen events which may damage project

assets. It is assumed that the project will incur insurance fee, annually, which would be

equivalent to 0.75% on WDV of Fixed Assets.



7.11 Revenue Estimates

The Industrial Park (I.P) will have revenue streams in the form of an upfront premium and the

maintenance expenses collected from the occupants. The leasable space in the IP comes to

23,79,636 Sqm. The Upfront premium lease rent and the respective escalation factor

considered for the viability study are given in Table 7-7.

Table 7-7: Revenue Details

Revenue Sources Upfront Premium / Sqm In Rs

Annual Maintenance charge / Sqm In Rs

Annual Escalation

Industrial Area 1525 35 5%

The agreement with the occupant shall be made for a period of 30 years wherein 2% of the

initial premium shall be collected from the occupants as annual maintenance fee during the

term of the agreement. The annual maintenance fee shall be escalated by 5% per annum.

7.12 Income Tax Calculations

The Income Tax rate assumed for the project is 32.45%.

7.13 Financial Analysis - Base Case Scenario

7.13.1 Key Parameters

The key project parameters computed are Project IRR (pre-tax), Project IRR (post-tax) and

Equity IRR.

The Project IRR (pre-tax) has been calculated based on the project outflows in the form of

capital investment while the inflows have been considered based on the revenue net of

operating expenses (excluding interest and tax) i.e. Profit Before Tax Plus: Interest Plus:

Depreciation.

The Project IRR (post-tax) calculation is similar to Project IRR (pre-tax) except that in the

inflows, the tax payments have also been considered i.e. Profit After Tax Plus: Interest Plus:

Depreciation.

The equity IRR is based on the equity contribution being made by the investor as an outflow

and the inflow is the net cash available for payment of dividend i.e. Profit After Tax Plus:

Depreciation Less: Loan Repayment Obligation.

The DSCR has been calculated for the entire loan tenure. The details of Interest During

Construction (IDC) is provided in Annexure 7.1. Further, DSCR calculations, the projected

Profitability statement, Cashflow statement, Balance sheet, IRR calculations are given in

Annexure 7.2, Annexure 7.3, Annexure 7.4, Annexure 7.5 and Annexure 7.6,

respectively.

Based on the above analysis a base case scenario, with the following mix of key input

variables and revenue estimates has been prepared.

Table 7-8 : Key Input Parameters – Base Case Scenario

D/E ratio 1.5 :1

Cost of INR debt 12.00%

Term of INR debt Ballooned Repayment



Project Cost Sensitivity 100% of base case

Lease premium and Annual Maintenance expense

Sensitivity 100% of base case

Table 7-9 : Key results – Base Case Scenario

SL. No Project Parameters Returns

1 Pre tax IRR 21.87%

2 Post Tax IRR 14.53%

3 Equity IRR 19.42%

4 Average Debt Service Coverage Ratio with DSR 1.59

7.14 Observations

Project IRR

The project has IRR (post tax) of 14.53 %, considering the cashflow generated by the

business till 2046. No terminal value on the project assets has been considered for the

viability assessment. The Industrial Park development is a ‘Greenfield’ project and has a high

perceived commercial risk; however this level of return may be just sufficient to get nullify the

same.

7.15 Conclusion

It is concluded that the project is financially viable based on the assumptions considered by

the consultant on project cost, capital structuring, cost of capital, revenue and cost

assumptions etc.

8

Conclusion


8 Conclusion Page 30

8 Conclusion

It is concluded that the project is financially viable based on the assumptions considered by

the consultant on project cost, capital structuring, cost of capital, revenue and cost

assumptions etc.

Industrial development is proposed in the forest area for the following reasons.

Ramasingavaram block comes under the influence of the proposed Vizag – Chennai

Industrial Corridor (VCIC). Initial studies projected tremendous growth for Andhra

Pradesh in the next 20 years. Once VCIC becomes functional, the manufacturing output

would reach Rs 3,000 billion by 2025 and Rs 7,825 billion by 2035. The proposed

corridor is likely to have a strong influence on the industrial activities in all 13 districts of

Andhra Pradesh and therefore there is a need for large tracts of industrial land to keep

pace with the projected industrialisation.

Ramasingavaram Block is located between Kakinada and Gannavaram Nodes in West

Godavari District.Most of the agricultural land in West Godavari District is three/two crop.

To meet the industrial demand it is proposed to avoid the agricultural land and develop

the industrial parks in the forest area. This will also help in preserving the agricultural land

getting converted into industrialisation and also improves food security

As a compensation it is proposed for forestry in Anantapur and Chittor districts to the

equal extend of area to be diverted for industrial area in West Godavari district

Considering the location strengths Mega Food Processing Hub has been proposed at

Ramasingavaram.

Annexures

Annexure 1.1 Form A for seeking prior approval under

section 2 of the proposals by the state governments and other authorities

Annexure 6.1 Annual Benefit from the Project

DPR for Diversion of Forest Lands for Establishment of Industrial Parks in W.G District, AP

Final Detailed Project Report for Ramasingavaram Forest Block

B1152201

RP017, Rev.A

Annexure 6.1

Ramasingavaram -Mega food processing Hub

Annual Benefit from the project

A Benefit from the industrial landRevenue (in

Rs Mn) / Ha

Area

earmarked

in Ha

In Rs Mn

Revenue 395.2 238.05668

Annual benefit 94,080

B Investment required for the industrial development In Rs Mn 20,040

Infrastructure Cost

Site Grading 570

Roads 650.00

Street lighting 30.00

Water 70.00

Drainage 190.00

Waste water 400.00

Signage 50.00

Solid waste Management 10.00

Admin Green area etc 70.00

Sectorwise investment 18000.00

C Land cost to Forest Department in Rs Mn per Ha 0.80

Area (in Ha) 326.99 262

D Cost incurred on afforestation (In Rs Mn per Ha) 89000 29

Maintenance cost in Rs Mn per Ha/annum 40000 13

E Foregone revenue from the forest land per Ha ( Rs Mn) 1.20

Total Revenue from the forest land ( Rs Mn) 392

F Interest Rate 12%

Interest on investment ( B*E) 2,405

G Depreciation % cost

Civil 3.33% 55% 367

Electrical 7.42% 15% 223

Mechanical 7.42% 20% 297

Msc Assets 7.42% 10% 149

H Total annual cost 24,177

I BC Ratio = Annual benefit/ Total Annual cost (A/H) 3.89

Page 1

Annexure 7.1- Interest During Construction Annexure 7.2 - Debt Service Coverage Ratio Annexure 7.3 - Profitability Statement Annexure 7.4 - Cash Flow statement Annexure 7.5 - Balance Sheet Annexure 7.6 - IRR Calculation



B1152201

RP017 rev. A

Annexure 7.1 Interest During Construction (IDC)

In Rs Mn Fy Basis 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28 31-Mar-29 31-Mar-30 31-Mar-31 31-Mar-32

Interest capitalised 106.91 94.30 - - - - - - - - - - - - - -

IDC in Quarterly Basis in Rs Mn

Quarters 30-Jun-16 30-Sep-16 31-Dec-16 31-Mar-17 30-Jun-17 30-Sep-17 31-Dec-17 31-Mar-18 30-Jun-18 30-Sep-18 31-Dec-18 31-Mar-19 30-Jun-19 30-Sep-19 31-Dec-19 31-Mar-20

Financial Charges from CF 16.84 25.01 30.25 34.81 43.36 50.94 50.94 50.94 50.94 50.94 49.92 48.90 46.86 44.83 41.77 38.71

Interest to be charge in P&L - - - - - - 50.94 50.94 50.94 50.94 49.92 48.90 46.86 44.83 41.77 38.71

IDC 16.84 25.01 30.25 34.81 43.36 50.94 - - - - - - - - - -

- - - - - - - -

IDC in Quarterly Basis in Rs Mn 30-Jun-20 30-Sep-20 31-Dec-20 31-Mar-21 30-Jun-21 30-Sep-21 31-Dec-21 31-Mar-22 30-Jun-22 30-Sep-22 31-Dec-22 31-Mar-23 30-Jun-23 30-Sep-23

Quarters 34.64 30.56 25.47 20.38 14.26 7.13 - - - - - - - -

Financial Charges from CF 34.64 30.56 25.47 20.38 14.26 7.13 - - - - - - - -

Interest to be charge in P&L - - - - - - - - - - - - - -

IDC

1



B1152201

RP017 rev. A

Annexure 7.2 Debt Service Coverage Ratio

DSCR Calculation 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25 31-Mar-26

PAT - 164.42 386.95 579.87 786.59 577.26 7.96 8.59 9.30 10.07

Interst - 101.88 200.69 172.17 111.04 21.39 - - - -

Amortisation of expenses 7.71 72.36 124.32 118.02 112.13 106.62 101.45 96.61 92.07 87.82

Deferred Tax - 24.95 18.59 (7.48) (6.42) (5.50) (4.71) (4.03) (3.44) (2.94)

Total Cash flow 7.71 363.61 730.56 862.59 1,003.34 699.77 104.69 101.17 97.92 94.95

Debt Obligation

repayment - - 67.92 339.58 611.25 679.17 - - - -

interest - 101.88 200.69 172.17 111.04 21.39 - - - -

Total Debt Obligation - 101.88 268.61 511.75 722.29 700.56 - - - -

Overall DSCR 1.59 - - - - - - - - -

Min DSCR 1.00 - 3.57 2.72 1.69 1.39 1.00 - - - -

2



B1152201

RP017 rev. A

Annexure 7.3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Profitability statement In Rs Millions

Revenues 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

FY 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28 31-Mar-29 31-Mar-30 31-Mar-31 31-Mar-32

No of Operating Months - - 6.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00

Non Refundable Deposits - - - - - - - - - - - - - - - - -

Processing Area - - 388.66 812.19 1,020.83 1,250.52 833.68 - - - - - - - - - -

Commercial Area - - - - - - - - - - - - - - - - -

Residential Area - - - - - - - - - - - - - - - - -

Maintenance charges - - - - - - - - - - - - - - - - -

Processing Area - - 3.61 20.32 44.04 73.42 103.64 113.01 118.66 124.59 130.82 137.36 144.23 151.44 159.01 166.96 175.31

Commercial Area - - - - - - - - - - - - - - - - -

Residential Area - - - - - - - - - - - - - - - - -

Total revenue - - 392.27 832.50 1,064.87 1,323.94 937.32 113.01 118.66 124.59 130.82 137.36 144.23 151.44 159.01 166.96 175.31

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

Expenses - - - - - - - - - - - - - - - - -

Administative expenses - - 10.98 22.77 23.91 25.11 26.36 27.68 29.06 30.52 32.04 33.64 35.33 37.09 38.95 40.90 42.94

Operation and Maintenance including marketing expenses- - 27.44 56.93 59.78 62.77 65.90 69.20 72.66 76.29 80.11 84.11 88.32 92.73 97.37 102.24 107.35

Insurance premium - - 8.57 16.20 15.04 13.97 12.98 12.08 11.24 10.46 9.75 9.09 8.48 7.92 7.39 6.91 6.46

Land lease rent to Sponsorer - - - - - - - - - - - - - - - - -

Total expenses - - 46.99 95.90 98.73 101.84 105.25 108.95 112.96 117.27 121.90 126.85 132.13 137.74 143.71 150.04 156.75

- - - - - - - - - - - - - - - - -

PBDIT - - 345.28 736.60 966.15 1,222.10 832.07 4.05 5.70 7.32 8.92 10.51 12.10 13.70 15.30 16.92 18.56

Depreciation - - 56.94 108.90 102.60 96.71 91.20 86.03 81.19 76.65 72.40 68.41 64.67 61.16 57.86 54.77 51.87

Amortisation of Land Leasehold - - 7.71 15.42 15.42 15.42 15.42 15.42 15.42 15.42 15.42 15.42 15.42 15.42 15.42 15.42 15.42

PBIT - - 280.63 612.28 848.12 1,109.97 725.46 (97.40) (90.91) (84.75) (78.90) (73.32) (67.99) (62.88) (57.98) (53.27) (48.72)

Financial Charges - - 101.88 200.69 172.17 111.04 21.39 - - - - - - - - - -

PBT - - 243.40 535.91 793.98 1,111.06 810.68 4.05 5.70 7.32 8.92 10.51 12.10 13.70 15.30 16.92 18.56

Income Tax - - 54.03 130.36 221.58 330.89 238.92 0.81 1.14 1.46 1.78 2.10 2.42 2.74 3.06 3.39 3.71

Deffered Tax - - 24.95 18.59 (7.48) (6.42) (5.50) (4.71) (4.03) (3.44) (2.94) (2.50) (2.12) (13.70) (15.30) (16.92) (18.56)

PAT - - 164.42 386.95 579.87 786.59 577.26 7.96 8.59 9.30 10.07 10.91 11.80 24.65 27.54 30.45 33.41

2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047

FY 31-Mar-33 31-Mar-34 31-Mar-35 31-Mar-36 31-Mar-37 31-Mar-38 31-Mar-39 31-Mar-40 31-Mar-41 31-Mar-42 31-Mar-43 31-Mar-44 31-Mar-45 31-Mar-46 31-Mar-47

No of Operating Months 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 -

Sales Realisation - - - - - - - - - - - - - - -

Processing Area - - - - - - - - - - - - - - -

Commercial Area - - - - - - - - - - - - - - -

Residential Area - - - - - - - - - - - - - - -

Non Refundable Deposits - - - - - - - - - - - - - - -

Processing Area - - - - - - - - - - - - - - -

Commercial Area - - - - - - - - - - - - - - -


Maintenance charges - - - - - - - - - - - - - - -

Processing Area 184.08 193.28 202.95 213.09 223.75 234.94 246.68 259.02 271.97 285.57 299.84 314.84 330.58 347.11 -

Commercial Area - - - - - - - - - - - - - - -


Total revenue 184.08 193.28 202.95 213.09 223.75 234.94 246.68 259.02 271.97 285.57 299.84 314.84 330.58 347.11 -

Expenses - - - - - - - - - - - - - - -

Land amortised - - - - - - - - - - - - - - -

Construction cost - - - - - - - - - - - - - - -

Administative expenses 45.09 47.34 49.71 52.19 54.80 57.54 60.42 63.44 66.61 69.95 73.44 77.11 80.97 92.37 -

Operation and Maintenance including marketing expenses 112.72 118.35 124.27 130.49 137.01 143.86 151.05 158.61 166.54 174.86 183.61 192.79 202.43 230.92 -

Insurance premium 6.04 5.66 5.30 4.96 4.65 4.36 4.10 3.84 3.61 3.39 3.19 3.00 2.82 2.65 -

Land lease rent to Sponsorer - - - - - - - - - - - - - - -

Total expenses 163.85 171.35 179.28 187.64 196.47 205.77 215.57 225.89 236.76 248.20 260.24 272.90 286.22 325.93 -

PBDIT 20.23 21.93 23.67 25.45 27.28 29.17 31.11 33.12 35.21 37.37 39.61 41.94 44.36 21.17 -

Depreciation 49.14 46.57 44.16 41.89 39.75 37.74 35.84 34.06 32.37 30.79 29.29 27.88 26.55 25.29 -

Amortisation of Land Leasehold 15.42 15.42 15.42 15.42 15.42 15.42 15.42 15.42 15.42 15.42 15.42 15.42 15.42 15.42 -

PBIT (44.33) (40.06) (35.91) (31.86) (27.89) (23.99) (20.15) (16.36) (12.59) (8.84) (5.10) (1.37) 2.40 (19.54) -

Financial Charges - - - - - - - - - - - - - - -

PBT 20.23 21.93 23.67 25.45 27.28 29.17 31.11 33.12 35.21 37.37 39.61 41.94 44.36 21.17 -

Income Tax 4.05 4.39 4.74 9.47 13.14 14.05 14.91 15.73 16.52 17.29 18.06 18.82 19.58 12.02 -

Deffered Tax (20.23) (21.93) (23.67) (25.45) (27.28) (29.17) (31.11) (33.12) (35.21) (37.37) (39.61) (41.94) (44.36) (21.17) -

PAT 36.41 39.47 42.60 41.43 41.42 44.28 47.32 50.52 53.89 57.44 61.16 65.06 69.14 30.33 -

3



B1152201

RP017 rev. A

Annexure 7.4 In Rs Mn

Cash Flow statement 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28 31-Mar-29 31-Mar-30 31-Mar-31 31-Mar-32

Inflows - - - - - - - - - - - - - - - -

Promoter's contribution 767.16 364.91 - - - - - - - - - - - - - -

Un secured loan - - - - - - - - - - - - - - - -

Grant from GOI - - - - - - - - - - - - - - - -

Sales receipts gross - - - - - - - - - - - - - - - -

Non Refundable Deposit - 388.66 812.19 1,020.83 1,250.52 833.68 - - - - - - - - - -

Lease Deposit - - - - - - - - - - - - - - - -

Lease receipts - 3.61 20.32 44.04 73.42 103.64 113.01 118.66 124.59 130.82 137.36 144.23 151.44 159.01 166.96 175.31

Deferred Tax liability - 18.32 14.28 (6.36) (5.77) (4.78) 113.24 64.31 39.86 25.96 17.41 11.90 62.88 57.98 53.27 48.72

Total Inflow 767.16 775.50 846.78 1,058.51 1,318.17 932.54 226.25 182.97 164.45 156.78 154.78 156.13 214.33 217.00 220.24 224.04

Outflow - - - - - - - - - - - - - - - -

Land 439.46 - - - - - - - - - - - - - - -

Construction 1,365.62 858.60 - - - - - - - - - - - - - -

Administrative expenses 4.39 15.78 22.77 23.91 25.11 26.36 27.68 29.06 30.52 32.04 33.64 35.33 37.09 38.95 40.90 42.94

Operation and Maintenance + Marketing 10.98 39.46 56.93 59.78 62.77 65.90 69.20 72.66 76.29 80.11 84.11 88.32 92.73 97.37 102.24 107.35

Marketing Expenses - - - - - - - - - - - - - - - -

Insurance Premium - 8.57 16.20 15.04 13.97 12.98 12.08 11.24 10.46 9.75 9.09 8.48 7.92 7.39 6.91 6.46

Interest on term loan 106.91 196.17 200.69 172.17 111.04 21.39 - - - - - - - - - -

Interest on unsec loans - - - - - - - - - - - - - - - -

Repayment of quasi equity - - - - - - - - - - - - - - - -

Income Tax - 39.68 100.12 188.64 297.49 214.98 - - - - - - - - - -

Land lease rent to Sponsorer - - - - - - - - - - - - - - - -

Total outflow 1,927.37 1,158.27 396.72 459.54 510.38 341.62 108.95 112.96 117.27 121.90 126.85 132.13 137.74 143.71 150.04 156.75

Bank Loan - - - - - - - - - - - - - - - -

Opening Balance - - 154.94 537.09 796.48 993.02 904.77 1,022.07 1,092.08 1,139.26 1,174.14 1,202.07 1,226.08 1,302.66 1,375.94 1,446.13

Monthly Surplus / (Deficit) (1,160.21) (382.77) 450.06 598.97 807.79 590.92 117.30 70.01 47.18 34.88 27.93 24.01 76.58 73.28 70.19 67.28

Cumulative Cash (1,160.21) (382.77) 605.01 1,136.06 1,604.27 1,583.94 1,022.07 1,092.08 1,139.26 1,174.14 1,202.07 1,226.08 1,302.66 1,375.94 1,446.13 1,513.42

Loan from Bank 1,160.21 537.71 - - - - - - - - - - - - - -

Repayment of bank loan - - 67.92 339.58 611.25 679.17 - - - - - - - - - -

Cumulative loan 1,160.21 1,697.92 1,630.00 1,290.42 679.17 - - - - - - - - - - -

Closing Balance - 154.94 537.09 796.48 993.02 904.77 1,022.07 1,092.08 1,139.26 1,174.14 1,202.07 1,226.08 1,302.66 1,375.94 1,446.13 1,513.42


Inflows - - - - - - - - - - - - - - -

Promoter's contribution - - - - - - - - - - - - - - -

Un secured loan - - - - - - - - - - - - - - -

Grant from GOI - - - - - - - - - - - - - - -

Sales receipts gross - - - - - - - - - - - - - - -

Non Refundable Deposit - - - - - - - - - - - - - - -

Lease Deposit - - - - - - - - - - - - - - -

Lease receipts 184.08 193.28 202.95 213.09 223.75 234.94 246.68 259.02 271.97 285.57 299.84 314.84 330.58 347.11 -

Deferred Tax liability 44.33 40.06 35.91 31.86 27.89 23.99 20.15 16.36 12.59 8.84 5.10 1.37 (2.40) 19.54 -

Total Inflow 228.41 233.34 238.85 244.95 251.64 258.93 266.83 275.37 284.56 294.41 304.95 316.20 328.18 366.65 -

Outflow - - - - - - - - - - - - - - -

Land - - - - - - - - - - - - - - -

Construction - - - - - - - - - - - - - - -

Administrative expenses 45.09 47.34 49.71 52.19 54.80 57.54 60.42 63.44 66.61 69.95 73.44 77.11 80.97 92.37 -

Operation and Maintenance + Marketing 112.72 118.35 124.27 130.49 137.01 143.86 151.05 158.61 166.54 174.86 183.61 192.79 202.43 230.92 -

Marketing Expenses - - - - - - - - - - - - - - -

Insurance Premium 6.04 5.66 5.30 4.96 4.65 4.36 4.10 3.84 3.61 3.39 3.19 3.00 2.82 2.65 -

Interest on term loan - - - - - - - - - - - - - - -

Interest on unsec loans - - - - - - - - - - - - - - -

Repayment of quasi equity - - - - - - - - - - - - - - -

Income Tax - - - - - - - - - - - 0.09 1.06 2.30 -

Land lease rent to Sponsorer - - - - - - - - - - - - - - -

Total outflow 163.85 171.35 179.28 187.64 196.47 205.77 215.57 225.89 236.76 248.20 260.24 272.99 287.27 328.24 -

Bank Loan - - - - - - - - - - - - - - -

Opening Balance 1,513.42 1,577.97 1,639.96 1,699.54 1,756.84 1,812.01 1,865.17 1,916.43 1,965.91 2,013.71 2,059.92 2,104.63 2,147.84 2,188.75 2,227.16

Monthly Surplus / (Deficit) 64.55 61.99 59.57 57.30 55.17 53.16 51.26 49.48 47.79 46.21 44.71 43.21 40.91 38.41 -

Cumulative Cash 1,577.97 1,639.96 1,699.54 1,756.84 1,812.01 1,865.17 1,916.43 1,965.91 2,013.71 2,059.92 2,104.63 2,147.84 2,188.75 2,227.16 2,227.16

Loan from Bank - - - - - - - - - - - - - - -

Repayment of bank loan - - - - - - - - - - - - - - -

Cumulative loan - - - - - - - - - - - - - - -

Closing Balance 1,577.97 1,639.96 1,699.54 1,756.84 1,812.01 1,865.17 1,916.43 1,965.91 2,013.71 2,059.92 2,104.63 2,147.84 2,188.75 2,227.16 2,227.16

4



B1152201

RP017 rev. A

Annexure 7.5 In Rs Mn

Balance sheet 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28 31-Mar-29 31-Mar-30 31-Mar-31 31-Mar-32

Liabilities - - - - - - - - - - - - - - - -

Equity 767.16 1,132.07 1,132.07 1,132.07 1,132.07 1,132.07 1,132.07 1,132.07 1,132.07 1,132.07 1,132.07 1,132.07 1,132.07 1,132.07 1,132.07 1,132.07

Reserves & Surplus - 139.07 450.54 937.85 1,639.29 2,128.37 2,030.97 1,940.06 1,855.31 1,776.41 1,703.09 1,635.10 1,572.22 1,514.24 1,460.97 1,412.24

Total Owners fund 767.16 1,271.14 1,582.61 2,069.92 2,771.35 3,260.43 3,163.04 3,072.13 2,987.38 2,908.48 2,835.16 2,767.17 2,704.29 2,646.30 2,593.03 2,544.31

Unsecured Loan - - - - - - - - - - - - - - - -

Grant from GOI - - - - - - - - - - - - - - - -

Secured Loan 1,160.21 1,697.92 1,630.00 1,290.42 679.17 - - - - - - - - - - -

Lease Deposits - - - - - - - - - - - - - - - -

Deferred Tax Liability - 18.32 32.60 26.24 20.47 15.69 128.93 193.24 233.10 259.07 276.48 288.39 351.27 409.25 462.52 511.25

- - - - - - - - - - - - - - - - -

Total Liabilities 1,927.37 2,987.38 3,245.21 3,386.57 3,470.99 3,276.12 3,291.97 3,265.37 3,220.48 3,167.55 3,111.64 3,055.56 3,055.56 3,055.56 3,055.56 3,055.56

Assets - - - - - - - - - - - - - - - -

Gross Fixed Assets 1,927.37 2,897.09 2,897.09 2,897.09 2,897.09 2,897.09 2,897.09 2,897.09 2,897.09 2,897.09 2,897.09 2,897.09 2,897.09 2,897.09 2,897.09 2,897.09

Deletion - - - - - - - - - - - - - - - -

Depreciation - 64.65 188.97 306.99 419.12 525.74 627.19 723.80 815.86 903.68 987.51 1,067.61 1,144.19 1,217.47 1,287.66 1,354.95

Net Fixed Assets 1,927.37 2,832.43 2,708.12 2,590.09 2,477.97 2,371.35 2,269.90 2,173.29 2,081.22 1,993.40 1,909.57 1,829.48 1,752.90 1,679.61 1,609.42 1,542.14

- - - - - - - - - - - - - - - - -

Cash balance - 154.94 537.09 796.48 993.02 904.77 1,022.07 1,092.08 1,139.26 1,174.14 1,202.07 1,226.08 1,302.66 1,375.94 1,446.13 1,513.42

- - - - - - - - - - - - - - - - -

Total Assets 1,927.37 2,987.38 3,245.21 3,386.57 3,470.99 3,276.12 3,291.97 3,265.37 3,220.48 3,167.55 3,111.64 3,055.56 3,055.56 3,055.56 3,055.56 3,055.56


Liabilities - - - - - - - - - - - - - - -

Equity 1,132.07 1,132.07 1,132.07 1,132.07 1,132.07 1,132.07 1,132.07 1,132.07 1,132.07 1,132.07 1,132.07 1,132.07 1,132.07 1,132.07 1,132.07

Reserves & Surplus 1,367.91 1,327.85 1,291.94 1,260.09 1,232.20 1,208.21 1,188.06 1,171.70 1,159.11 1,150.27 1,145.16 1,143.70 1,145.04 1,123.20 1,123.20

Total Owners fund 2,499.98 2,459.92 2,424.01 2,392.15 2,364.27 2,340.27 2,320.12 2,303.77 2,291.18 2,282.33 2,277.23 2,275.77 2,277.11 2,255.27 2,255.27

Unsecured Loan - - - - - - - - - - - - - - -

Grant from GOI - - - - - - - - - - - - - - -

Secured Loan - - - - - - - - - - - - - - -

Lease Deposits - - - - - - - - - - - - - - -

Deferred Tax Liability 555.58 595.64 631.55 663.40 691.29 715.28 735.43 751.79 764.38 773.22 778.33 779.69 777.30 796.84 796.84

- - - - - - - - - - - - - - - -

Total Liabilities 3,055.56 3,055.56 3,055.56 3,055.56 3,055.56 3,055.56 3,055.56 3,055.56 3,055.56 3,055.56 3,055.56 3,055.46 3,054.41 3,052.10 3,052.10

Assets - - - - - - - - - - - - - - -

Gross Fixed Assets 2,897.09 2,897.09 2,897.09 2,897.09 2,897.09 2,897.09 2,897.09 2,897.09 2,897.09 2,897.09 2,897.09 2,897.09 2,897.09 2,897.09 2,897.09

Deletion - - - - - - - - - - - - - - -

Depreciation 1,419.50 1,481.49 1,541.07 1,598.37 1,653.54 1,706.70 1,757.96 1,807.44 1,855.24 1,901.45 1,946.16 1,989.46 2,031.43 2,072.14 2,072.14

Net Fixed Assets 1,477.58 1,415.59 1,356.02 1,298.71 1,243.54 1,190.39 1,139.12 1,089.64 1,041.85 995.64 950.93 907.62 865.66 824.94 824.94

- - - - - - - - - - - - - - -

Cash balance 1,577.97 1,639.96 1,699.54 1,756.84 1,812.01 1,865.17 1,916.43 1,965.91 2,013.71 2,059.92 2,104.63 2,147.84 2,188.75 2,227.16 2,227.16

- - - - - - - - - - - - - - - -

Total Assets 3,055.56 3,055.56 3,055.56 3,055.56 3,055.56 3,055.56 3,055.56 3,055.56 3,055.56 3,055.56 3,055.56 3,055.46 3,054.41 3,052.10 3,052.10

5



B1152201

RP017 rev. A

Annexure 7.6

IRR Calculation (All figures in Rs Mn)

Period 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28 31-Mar-29 31-Mar-30 31-Mar-31 31-Mar-32

Project IRR (Pre tax) - - - - - - - - - - - - - - - -

Capex (1,805.08) (858.60) - - - - - - - - - - - - - -

Inflows - - - - - - - - - - - - - - - -

PAT - 164.42 386.95 579.87 786.59 577.26 7.96 8.59 9.30 10.07 10.91 11.80 24.65 27.54 30.45 33.41

depreciation+ Amortisation - 64.65 124.32 118.02 112.13 106.62 101.45 96.61 92.07 87.82 83.83 80.09 76.58 73.28 70.19 67.28

Interest and Tax benefit from Debt component - 68.82 135.57 116.30 75.01 14.45 - - - - - - - - - -

Net inflow post tax (1,805.08) (560.72) 646.84 814.20 973.73 698.33 109.41 105.20 101.36 97.89 94.74 91.89 101.24 100.82 100.64 100.69

Tax - 78.98 148.95 214.10 324.47 233.41 (3.90) (2.89) (1.98) (1.15) (0.39) 0.30 (10.96) (12.24) (13.53) (14.85)

Pre tax Cash flow (1,805.08) (481.73) 795.79 1,028.30 1,298.20 931.75 105.51 102.31 99.39 96.74 94.35 92.20 90.28 88.58 87.11 85.84

Pre Tax IRR 21.87% - - - - - - - - - - - - - - - -

Post Tax IRR 14.53% - - - - - - - - - - - - - - - -

Period 31-Mar-33 31-Mar-34 31-Mar-35 31-Mar-36 31-Mar-37 31-Mar-38 31-Mar-39 31-Mar-40 31-Mar-41 31-Mar-42 31-Mar-43 31-Mar-44 31-Mar-45 31-Mar-46 31-Mar-47

Project IRR (Pre tax) - - - - - - - - - - - - - - -

Capex - - - - - - - - - - - - - - -

Inflows - - - - - - - - - - - - - - -

PAT 36.41 39.47 42.60 41.43 41.42 44.28 47.32 50.52 53.89 57.44 61.16 65.06 69.14 30.33 -

depreciation+ Amortisation 64.55 61.99 59.57 57.30 55.17 53.16 51.26 49.48 47.79 46.21 44.71 43.30 41.97 40.71 -

Interest and Tax benefit from Debt component - - - - - - - - - - - - - - -

Net inflow post tax 100.96 101.46 102.17 98.73 96.59 97.44 98.58 100.00 101.69 103.65 105.87 108.36 111.11 71.04 -

Tax (16.18) (17.54) (18.93) (15.98) (14.14) (15.12) (16.20) (17.39) (18.69) (20.07) (21.55) (23.12) (24.78) (9.15) -

84.78 83.92 83.24 82.75 82.45 82.32 82.38 82.60 83.00 83.58 84.32 85.24 86.33 61.89 -

- - - - - - - - - - - - - - -

- - - - - - - - - - - - - - -

Equity IRR

Period 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28 31-Mar-29 31-Mar-30 31-Mar-31 31-Mar-32

- - - - - - - - - - - - - - - -

PAT - 164.42 386.95 579.87 786.59 577.26 7.96 8.59 9.30 10.07 10.91 11.80 24.65 27.54 30.45 33.41

Add Depreciation+ Amortisation - 64.65 124.32 118.02 112.13 106.62 101.45 96.61 92.07 87.82 83.83 80.09 76.58 73.28 70.19 67.28

Add Deferred tax liability - 24.95 18.59 (7.48) (6.42) (5.50) (4.71) (4.03) (3.44) (2.94) (2.50) (2.12) (13.70) (15.30) (16.92) (18.56)

Less :Equity 767.16 364.91 - - - - - - - - - - - - - -

Less : Senior debt Repayment - - 67.92 339.58 611.25 679.17 - - - - - - - - - -

FCFE (Free Cashflow to Equity Holders) (767.16) (110.89) 461.95 350.84 281.05 (0.79) 104.69 101.17 97.92 94.95 92.24 89.78 87.54 85.52 83.72 82.13

Equity IRR 19.42%

Period 31-Mar-33 31-Mar-34 31-Mar-35 31-Mar-36 31-Mar-37 31-Mar-38 31-Mar-39 31-Mar-40 31-Mar-41 31-Mar-42 31-Mar-43 31-Mar-44 31-Mar-45 31-Mar-46 31-Mar-47

- - - - - - - - - - - - - - -

PAT 36.41 39.47 42.60 41.43 41.42 44.28 47.32 50.52 53.89 57.44 61.16 65.06 69.14 30.33 -

Add Depreciation+ Amortisation 64.55 61.99 59.57 57.30 55.17 53.16 51.26 49.48 47.79 46.21 44.71 43.30 41.97 40.71 -

Add Deferred tax liability (20.23) (21.93) (23.67) (25.45) (27.28) (29.17) (31.11) (33.12) (35.21) (37.37) (39.61) (41.94) (44.36) (21.17) -

Less :Equity - - - - - - - - - - - - - - -

Less : Senior debt Repayment - - - - - - - - - - - - - - -

FCFE (Free Cashflow to Equity Holders) 80.74 79.53 78.51 73.28 69.31 68.28 67.47 66.87 66.48 66.28 66.26 66.42 66.74 49.87 -

6

L&T INFRASTRUCTURE ENGINEERING LIMITED

6-3-1192/1/1, 5th Floor, Block No.3

White House, Kundan Bagh, Begumpet, Hyderabad – 500 016

Ph: 91-040 – 40354444; Fax: 91-040-40354430, Web: www.lntiel.com

Andhra Pradesh Industrial Infrastructure Corporation Limited ...

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