DND FLYWAY (Project Financing)

GROUP MEMBERS: 1. Anshul Dhir 2. Poorva Bansal 3. Shaurya Sharma

Location
Over 30% of Delhi's population lives on the eastern side of the

river Yamuna.
Vehicular traffic across the river Yamuna to Delhi is served by

several links.
One is the Delhi Noida Direct (DND) Flyway, which is owned

and operated by the Noida Toll Bridge Company Limited.

Brief Description
The DND Flyway was opened in February 2001.
The Flyway is 6 km long and comprises eight lanes. It has interchanges with the Ring Road at the western end and

the Delhi-Noida link road at the eastern end. The Flyway includes a 552 metre long bridge with 13 spans.
Traffic on the DND Flyway has grown steadily to exceed

50,000 vehicles per day.

 Toll rates on DND Flyway are revised annually according to

changes in the Consumer Price Index (CPI) for urban nonmanual employees.
Initially, the Flyway gave substantial discounts to vehicles

using electronic toll collection. Over time, these discounts have been reduced and now vary from 5 to 22% for the various classes of vehicle.

Form of Financing
The Noida Toll Bridge Company Ltd. (NTBCL) has been promoted by Infrastructure Leasing and Financial Services Ltd. (IL&FS) as a special purpose vehicle (SPV) to develop construct, operate and maintain the DND Flyway on a Build Own Operate Transfer (BOOT) basis.
NTBCL is a public listed company, incorporated in Uttar

Pradesh, India, in 1996 and operates only in India.

 The total issued and subscribed Equity Capital of the Company

is Rs. 186,19,50,020/- (18,61,95,002 Equity shares of Rs. 10/each). As on December 31, 2008 there are 39,25,095 Equity Shares and 7,85,019 GDRs ( representing 39,25,095 underlying equity shares) . These GDRs are listed on AIM. The Equity Shares of the Company are not listed on AIM The Company had issued 1,24,99,999 Global Depository Receipts (GDRs) (including the Green Shoe Option of 11,36,363 GDRs) each representing 5 underlying ordinary shares of Rs. 10 each), in March/April 2006. As on December 31, 2008, there were 7,85,019 GDRs outstanding, representing 39,25,095 underlying equity shares.

Credit Rating
Subsequent to the implementation of the Scheme of

Arrangement, as approved by Honorable High Court of Allahabad, the Company has received a revised credit rating of A minus (A-) for the restructured Deep Discount Bonds (DDBs), from Credit Analysis & Research Limited (CARE).
The Board of Directors of the company had, at their meeting

held on July 19, 2006 accepted this rating.

Shareholding Pattern

DND FLYWAY

Financials
Despite the sustained growth of population and commercial

developments east of the Yamuna, the Noida Toll Bridge Company Ltd has incurred persistent losses.
In 2005, the Company generated revenue from all sources of

290.08 million rupees but incurred a loss of 91.09 million rupees before depreciation and taxes.

In 2005, the estimated population of Noida and Greater Noida was 660,000. By 2007, this was estimated to grow by 128,266 and generate 2,212 additional daily trips on the DND Flyway.

 NTBCL realised that it could not get requisite clearances for

acquisition of land from the Uttar Pradesh government on time, it immediately decided to go for pre-paying its debt. Thus, it turned its failure to start the Mayur Vihar link project on time into a success.
The pre-payment of debt has resulted in a saving of Rs 19 crore

post the GDR issue. This is expected to shore up the cash flow position during the current financial year, say sources.

Concession Agreement
The concession agreement for operating the Noida toll bridge

assures a 20 per cent annual internal rate of return (IRR) on the project, pending which the concession period may be increased by another two years.
NTBCL estimates that if the project had an IRR of 20 per cent,

it would have earned an additional Rs 900 crore by March 2006.

A portion of this potential income will be converted to reserves

and then set off against the accumulated losses.

The impact is expected to be Rs 3 crore-4 crore on net profits.

 NTBCL had got a three-year exemption from the Ministry of

Company Affairs on provision from depreciation, which ended in 2005-06.

The profits are sustainable as both its toll and operation and

maintenance expenditure are linked to inflation, hence the company has got its margins covered
The companys finance charges have come down to Rs 17

crore from Rs 36 crore in 2005-06.

In addition, the revised operations and maintenance (O&M)

agreement has led to a reduction in expenditure.

Operation and Maintenance of DND FLYWAY

On June 22, 2007, ITNL Toll Management Services Limited

(ITMSL) was incorporated as a joint venture company with IL&FS Transportation Networks Limited, who have singnificant experience in operations and maintenance of toll road projects.
The Company was set up to carry out O&M services for Noida

Toll Bridge and other similar ventures on a pan- India basis. The O&M services of the bridge have been taken over by ITMSL since August 1, 2007.

Tariff chart of DND FLYWAY

Tariff Chart (w.e.f. April 1, 2008)

Vehicle Class

Vehicle Description

Cash Tariff Per Passage

Silver Card Tariff/Per Passage

Silver Card Tariff For 50 Passages

Admin Fee. One Time NonRefundable

First Time Payment Individual

1.
2. 3. 4.

Two Wheelers
Cars/Jeeps LCV s Buses/Trucks

10/20/40/50/-

9/20/40/50/-

450/1000/2000/2500/-

50/75/75/75/-

500/1075/2075/2575/-

5.

Large Vehicles

65/-

65/-

3250/-

75/-

3325/-

6.

Extra Large Vehicles

85/-

85/-

4250/-

75/-

4325/-