Andhra Pradesh Industrial Infrastructure Corporation Limited

Andhra Pradesh Industrial Infrastructure Corporation Limited

DPR for Diversion of Forest Lands for

Establishment of Industrial Parks at Bhogolu and Kalarayanagudem Forest Block

in West Godavari District, Andhra Pradesh

FINAL DETAILED PROJECT REPORT

August 2015

Prepared By

L&T INFRASTRUCTURE ENGINEERING LIMITED

B1152201

RP012, Rev.0

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

Limited (APIIC) Parisramabhavanam, 5th 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 Bhogolu and Kalarayanagudem Forest Block

Document No.:

RP012

Rev.:

0

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.

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Notes:

1.

Revision Details:

0 14.08.2015 First Submission

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SJV

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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 Bhogolu and Kalarayanagudem Forest Block RP012 rev. 0

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 ...................................................................................4 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 Seaport Connectivity ....................................................................................7

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 Criteria of Assessing Opportunity/Activity Mix for Industrial Park .......................................... 10 3.4 Location USP ......................................................................................................................... 10 3.5 Industrial Park Competition .................................................................................................... 10 3.6 Activity Mix ............................................................................................................................. 11 3.7 Evaluation of Target Sector (s) for Proposed Site ................................................................. 11 3.8 Focus Sectors of Industrial Park and Their Impact ................................................................ 12 3.9 Estimated Demand for Space of Focus Sectors .................................................................... 12 3.10 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 .................................................................................................................. 15

4.3 Site Master Plan ..................................................................................................................... 15 4.4 Proposed Entry/Exit ............................................................................................................... 15

4.4.1 Circulation and Road Hierarchy ................................................................................... 16 4.4.2 Green / Open Areas ..................................................................................................... 16 4.4.3 Infrastructure Utilities / Common Amenities / Industry Related Facilities .................... 16

4.5 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 5.1.5 Solid Waste Management............................................................................................ 19 5.1.6 Storm Water Management........................................................................................... 19


Table of Contents Page ii

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 ............................................................................................. 28 7.10.3 Insurance expenses ..................................................................................................... 28

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 2 km from Project Site ...............................................................5 Figure 2-4: Road and Rail Connectivity ...................................................................................................6 Figure 2-5: Seaport and Airport 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 ....................................................................... 26 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 .................................................................... 29 Table 7-9 : Key results – Base Case Scenario ..................................................................................... 29

LIST OF DRAWINGS

FD0201: Boundary of Bhogolu and Kalarayanagudem 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

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 billion 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 16,258

acres 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 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 Bhogolu and Kalarayanagudem 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 2,989 acres (as per the details provided by APIIC

and DGPS survey conducted by Sri Sai Krishna Eng) is located in Lingapalem Mandal, West

Godavari District of Andhra Pradesh. The site is connected to NH-5 (AH-45) 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 Bhogolu and Kalarayanagudem Block as per the forest

department. A map (DGPS Survey Boundary) showing the Bhogolu and Kalarayanagudem

Block with boundaries on Survey of India 1:50,000 scale 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 Bhogolu and Kalarayanagudem 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 the Bhogolu and Kalarayanagudem Block.

2.3 Existing Habitations around Project Site

The forest area is surrounded by plantations. The following figure shows the settlements

located within 2 km from the project site.



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

2.4 Demographic Pattern

The nearest urban centre to the sites 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.



Figure 2-4: Road and Rail Connectivity

2.5.1 Road

The project site is well connected to the other parts of India through NH-5 (AH-45) which is

16 km south of the site.

2.5.2 Rail

Chennai – Kolkata Broad Gauge Line located around 18 km south of the project site and

Eluru is the nearest station.



2.5.3 Airport and Seaport Connectivity

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

Figure 2-5: Seaport and Airport Distances from Project Site

The nearest operational port is Kakinada Port (125km). The site has also the advantages of

the proposed Narasapuram Port (92km) 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 Reger 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 (254.6).

2.9 Infrastructure Availability

2.9.1 Water

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

good water source.

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-5 (AH-45) and

SH-43

16 km and 4.5

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 4.5 km

7 Inland, coastal, marine or underground waters Polavaram Right

Canal

12km

south

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 Assessment1

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 uplands, oil palm, sugarcane, corn, mango, banana and other fruits as well as

tobacco and cotton are produced. 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 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, Palm Oil Processing Hub seems to be

ideal at Bhogolu and Kalarayanagudem. The following sections will provide a brief discussion

on the proposed product mix at Bhogolu and Kalarayanagudem.

3.2 Information sources

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

A Study of Palm Oil Cultivation in A.P - Prof. V Narasimha Rao, ANR College, Gudiwada

Palm Oil Market and Sustainability in India, 2013 - WWF

Responsible Business Practices in the Indian Palm Oil Sector, 2014 - Centre for

Responsible Research

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

following sections.

1 Market study and demand assessment is based on available data on public domain.



3.3 Criteria of Assessing Opportunity/Activity Mix for Industrial Park

The proposed industrial park near Bhogolu-Kalarayanagudem is conceived considering the

following factors:

Edible oils production is a Government policy priority and aims at achieving self-

sufficiency.

West Godavari district already enjoys the top performer advantage in terms of a strong

catchment for oil palm procurement and establishing processing facilities.

Nearly 1 lakh Ha are targeted to be brought under oil palm cultivation in the districts of

West Godavari and East Godavari during the next three years.

Creation of world class industrial infrastructure will thus help attract further investments

into processing and producing value added products.

It would also help attract FDI into the region for oil palm cultivation and palm oil

production.

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

markets, highways and sea and air ports.

Skilled manpower is abundantly available in the district.

3.4 Location USP

Andhra Pradesh is the largest oil palm cultivating State in India with an estimated 1.35 lakh

Ha, accounting for nearly 85% of the total area under cultivation in the country.

West Godavari district tops in respect to the area under oil palm cultivation and production of

Crude Palm Oil (CPO). The major factors contributing to the top performance of the district

are the innovative practices adopted by the farmers in cultivation and realizing higher yields;

willingness of a relatively large number of progressive farmers across the district to take to oil

palm cultivation and more importantly the first hand support received from the Directorate of

Oil Palm Research headquartered in the district.

With an estimated area of 0.70 lakh Ha under oil palm cultivation, West Godavari accounts

for nearly 60% of oil palm and palm oil production. Considering the progress achieved by the

district in oil palm cultivation and palm oil production, another 0.8 lakh Ha is targeted to be

brought under cultivation during the next three years.

APIIC proposes to develop a Sustainable Palm Oil Processing Hub over an area of 500

acres near Bhogolu and Kalarayanagudem villages (Lingapalem Mandal) in West Godavari

district of Andhra Pradesh as a forward linkage. Ease of access to oil palm growing pockets

in West Godavari and other neighbouring districts is the location has the inherent strength of

the proposed location.

3.5 Industrial Park Competition

The proposed sustainable hub will be a pioneering effort. There is no similar facility existing

across India and as such there is no pre-existing competition for the proposed facility.

The concept of sustainable hub focuses on effectively integrating all the activities across the

value chain of palm oil right from cultivation, procurement of bunches, processing, quality

certification, packing, branding and storage. The sustainability dimension of the project

emphasizes environment protection by encouraging and extending oil palm cultivation to

waste and low productive soils instead of forest lands.

The proposed palm oil hub will thus facilitate large anchor firms to contribute to planned

cultivation of oil palm, procure, process and store from a single location. The hub will thus



help put in place the necessary backward and forward linkages between industry and

horticulture sectors on a sustainable basis. 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, Visakhapatnam (A.P) and Khammam (Telangana)

districts.

3.6 Activity Mix

The proposed industrial park for palm oil processing will have:

Anchor tenants who adopt systematic land aggregation in the command area, support

farmers through guaranteed demand off take and set up facilities for value added

processing of palm oil.

Common facilities with the state of the art technology for packing, branding, quality

guaranteeing, storage, traceability and market development.

Extension and research support of Directorate of Oil Palm Research.

Common effluent treatment facility for treatment and safe discharge of effluents.

3.7 Evaluation of Target Sector (s) for Proposed Site

Global consumption of palm oil stands at ~48.7 Mn MT as of 2011-12. Consumption has

been increasing by ~6.1% over the last five years on the back of growing demand for the

oil, especially from developing countries like India and China.

India’s palm oil consumption, as a part of the overall global consumption has increased

from 13% in 2007-2008 to 15% in 2011-2012.

India’s growth in consumption is outpacing the global rate and hence, India plays a vital

role in driving the production of palm oil globally.

India is followed by Indonesia, which is now a larger consumer of palm oil than China,

contributing 23% of global palm oil consumption in 2011-2012.

India is world’s largest importers of edible oils. India’s edible oil import bill stands around

Rs. 30,000 crores per annum. Palm oil accounts for 80% of the total edible oil imports.

Indonesia and Malaysia are the two sources for palm oil imports. Domestic production of

palm oil caters to less than 1% of the total consumption requirement.

Palm oil is used widely as cooking oil, frying fats and a cheaper substitute for butter. It is

also used for the production of vanaspati/vegetable ghee, margarine and spreads,

confectionary and bakery fats (specialty fats) ice cream, coffee creamers and filled milk,

emulsifiers, vitamin E supplements etc. Palm oil is consumed only in the refined form by

the edible/food industry.

As a non-food ingredient, palm oil finds application in the production of cosmetics,

toiletries, soaps and detergents. It is also used in the FMCG market, used in the oleo

chemical industry, as a base material for the production of surfactants (washing active

substances) for laundry detergents, household cleaners and cosmetics. Derivatives like

palm stearin and PFAD (palm fatty acid distillate), and refined palm kernel oil are used for

industrial applications.

According to USDA estimates, 75% of the global palm oil consumption is for food

purposes, while 22% is for industrial/non-food purposes. The remaining is used in

biodiesel production.

Palm oil is currently the single largest consumed vegetable oil in India. Over the last 25

years, factors such as change in consumption patterns, availability, pricing, policy

changes towards imports and domestic production of other oilseeds have all contributed

to higher palm oil consumption.



India’s over all edible consumption is projected to rise annually by 4-6% during the next

five year period, while that of palm oil higher around 8%. The key factors underscoring

the outlook are: - Palm oil is expected to be price competitive vis-à-vis other varieties of edible oils. - Production shortages are expected in respect of substitute oil seeds. - A 10 – 12% rise in per capita consumption in palm oil is anticipated touching the

level of 15 kg per annum during the next five years in view of the wider acceptance of palm as healthy oil.

3.8 Focus Sectors of Industrial Park and Their Impact

The establishment of the industrial park for the development of a sustainable palm oil hub is

expected to:

Channelise estimated industrial investments to the tune of Rs. 1500 crores by about 10

anchor investors into edible oil refining over the next five years.

Channelise estimated industrial investments to the tune of Rs. 200 crores in about 50

complementary industrial and service enterprises.

Strengthen backward linkages and channelise sizeable investments into oil palm

cultivation and crop husbandry systems.

Provide sustainable employment to an estimated 8,000 skilled and semi-skilled persons

directly and 24,000 persons indirectly at full occupancy level.

Help strengthen backward linkages with nearly 30,000 farmers in the region.

Increase acreage under oil palm cultivation especially in wastelands and degraded soils.

Raise tax revenues to the local and State Governments.

Contribute to reduction of about Rs.1500 crores per annum in the country’s edible oil

import bill through import substitution.

3.9 Estimated Demand for Space of Focus Sectors

The indicative initial requirement of land in the Palm Oil Industrial Park is as given below:

- Anchor Units : 423 acres - Complementary units : 60 acres - Common facilities : 10 acres - CETP : 5 acres - Administrative buildings : 2 acres

Consumption of palm oil in India is expected to rapidly in the years to come driven mainly by

its price competitiveness and nutritional value. As a non cooking medium, demand for palm

oil and derivatives is expected to firm up in the manufacture of cosmetics, pharmaceuticals

and bio diesel. India is therefore eyeing on a strategy to enhance domestic production oil

palm and palm oil rather than continue to depend on imports of crude palm oil. In the light of

the emerging scenario, the surplus land could be utilized for meeting the infrastructure

requirements for developing: Phase-II of Palm Oil Production Hub (300 acres); Integrated Oil

Palm Research Development Institute (200) acres; Bio Diesel Production Hub (100 acres);

Integrated Herbal Park (200 acres). The remaining land could be utilized for allotting to

intending overseas entrepreneurs who wish to set up integrated ventures for production of

value added palm oil products. Across India, West Godavari and East Godavari districts

enjoy the distinct advantage of being endowed with the right agro-climatic conditions for oil

palm cultivation.



3.10 Estimated Revenue

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

(Rs Crore)

1 Bhogolu and

Kalarayanagudem Palm oil hub (processing) 12

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-5 (AH-45) and SH-43 at a distance of 16 km and

4.5 km respectively



4.2.2 Product Mix

Based on the Market Study Assessment, product mix considered is Palm Oil Processing.

There is a demand of 500 acres for the Palm Oil processing in the project site. It is proposed

to develop 520 acres of industrial land in the project site in the first phase and the remaining

industrial land of 1535 acres 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, Desalination Plant, Landfill Site etc)

Green Areas and Green Belt

Logistics

Road Network

The area break up of all the proposed activities in the project site 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 Acres % to total area

1. Industrial 2055 69

2. Common amenities 116 3.9

3. Infrastructure Utilities 87 2.9

4. Logistics 71 2.4

5. Green Area 164 5.5

6. Green Belt 185 6.2

7. Roads 311 10.4

Total Area 2,989 100

The total industrial land proposed in the industrial park covers 69% of the total area. Green

areas/green belt cover around 11.7% and the roads cover around 10.4%. The balance land

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

common parking space and industry related facilities which accounts to around 9.2%.

Site master plan is provided as Figure FD0401. Out of the total industrial land, an area of

520 acres is proposed to be developed in Phase I and the balance area of 1,535 acres is

proposed to be developed in the Phase II.

4.4 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.

70 Ac.

23 Ac.

50 Ac.

50 Ac.

38 Ac.

25 Ac.

48 Ac.

58 Ac.

TO RAMACHANDRAPURAM

40 Ac.

50 Ac.

50 Ac.50 Ac.

75 Ac.

70 Ac.50 Ac.

50 Ac.50 Ac.

50 Ac.

20 Ac.

15 Ac.

20 Ac.20 Ac.

20 Ac. 4 Ac.

20 Ac.20 Ac.

20 Ac.12Ac.

14Ac.20 Ac.20 Ac.

20 Ac.

9 Ac.10 Ac.

10 Ac.10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.10 Ac.

10 Ac.10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.10 Ac.

10 Ac.10 Ac.14 Ac.

14 Ac.

20 Ac.20 Ac.

20 Ac.20 Ac.

20 Ac. 15 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

15 Ac.18 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

5 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

15 Ac.

3 Ac.2 Ac.

18 Ac.

13 Ac.2 Ac.

8 Ac.

50 Ac.

50 Ac.

42 Ac.

50 Ac.28 Ac.

13 Ac.

8 Ac. 3 Ac.

3 Ac.

7 Ac.

4 Ac.

2 Ac.

0.5 Km

SCALE IN KILO METRES

0 Km 1 Km

LEGEND

KEY MAP-WEST GODAVARI DISTRICT

N

INFRASTRUCTURE UTILITIES

PHASE-2 INDUSTRIAL AREA (1535 Ac.)COMMON AMENITIES

LOGISTICSGREEN AREASGREEN BELT

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

NH 214

NH 214A

BHOGOLU&KALARAYANAGUDEM AREA (Ac.) %

INDUSTRIAL (PALM OILPROCESSING) 2055 69.0

COMMON AMENITIES 116 3.9INFRASTRUCTURE UTILITIES 87 2.9LOGISTICS 71 2.4GREEN AREA 164 5.5GREEN BELT 185 6.2ROADS 311 10.4

TOTAL 2989 100%Road Lengths In Metres In km

45 M Row 9865 9.930 M Row 12329 12.324 M Row 11985 12.012 M Row (Periphery Road) 13302 13.3

45 M WIDE ROW

45 M WIDE ROW

45 M WIDE ROW

45 M WIDE ROW

45 M WIDE ROW

45 M WIDE ROW

45 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

30 M WIDE ROW

30 M WIDE ROW

30 M

WID

E RO

W30

M W

IDE

ROW

30 M

WID

E RO

W

30 M

WID

E RO

W30

M R

OW

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

WID

E RO

W

45 M

WID

E RO

W

45 M

WID

E RO

W

45 M

WID

E RO

W

45 M

WID

E RO

W

45 M

WID

E RO

W

30 M

WID

E RO

W

30 M

WID

E RO

W

30 M

WID

E RO

W

24 M

WID

E RO

W

24 M

WID

E RO

W

24 M

WID

E RO

W

30 M

WID

E RO

W

30 M

WID

E RO

W

45 M

WID

E RO

W

45 M

WID

E ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

30 M WIDE ROW

30 M WIDE ROW

TO BHOGOLU

12 M WIDE PHERIPHERAL ROAD


TADEPALLIGUDEM

ENTRY / EXIT

EMERGENCYENTRY / EXIT

TO SH 43

PHASE-1 INDUSTRIAL AREA (520 Ac.)

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Exclusive entry/exit is proposed and the location of emergency entry/exit 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 Bhogolu village road.

Figure 4-2: Proposed Entry/ Exit Points

4.4.1 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.

4.4.2 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.

4.4.3 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)

Point 1

Point 2

70 Ac.

23 Ac.

50 Ac.

50 Ac.

38 Ac.

25 Ac.

48 Ac.

58 Ac.

TO RAMACHANDRAPURAM

40 Ac.

50 Ac.

50 Ac.50 Ac.

75 Ac.

70 Ac.50 Ac.

50 Ac.50 Ac.

50 Ac.

20 Ac.

15 Ac.

20 Ac.20 Ac.

20 Ac. 4 Ac.

20 Ac.20 Ac.

20 Ac.12Ac.

14Ac.20 Ac.20 Ac.

20 Ac.

9 Ac.10 Ac.

10 Ac.10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.10 Ac.

10 Ac.10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.10 Ac.

10 Ac.10 Ac.14 Ac.

14 Ac.

20 Ac.20 Ac.

20 Ac.20 Ac.

20 Ac. 15 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

15 Ac.18 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

5 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

15 Ac.

3 Ac.2 Ac.

18 Ac.

13 Ac.2 Ac.

8 Ac.

50 Ac.

50 Ac.

42 Ac.

50 Ac.28 Ac.

13 Ac.

8 Ac. 3 Ac.

3 Ac.

7 Ac.

4 Ac.

2 Ac.

0.5 Km


0 Km 1 Km

LEGEND


N

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

NH 214

NH 214A

45 M WIDE ROW

45 M WIDE ROW

45 M WIDE ROW

45 M WIDE ROW

45 M WIDE ROW

45 M WIDE ROW

45 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

30 M WIDE ROW

30 M WIDE ROW

30 M

WID

E RO

W30

M W

IDE

ROW

30 M

WID

E RO

W

30 M

WID

E RO

W30

M R

OW

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

WID

E RO

W

45 M

WID

E RO

W

45 M

WID

E RO

W

45 M

WID

E RO

W

45 M

WID

E RO

W

45 M

WID

E RO

W

30 M

WID

E RO

W

30 M

WID

E RO

W

30 M

WID

E RO

W

24 M

WID

E RO

W

24 M

WID

E RO

W

24 M

WID

E RO

W

30 M

WID

E RO

W

30 M

WID

E RO

W

45 M

WID

E RO

W

45 M

WID

E ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

30 M WIDE ROW

30 M WIDE ROW

TO BHOGOLU



TADEPALLIGUDEM


LOGISTICS 71 2.4ROADS 311 10.4

TOTAL 382Road Lengths In Metres In km

45 M Row 9865 9.930 M Row 12329 12.324 M Row 11985 12.012 M Row (Periphery Road) 13302 13.3

24 M WIDTH RoW

45 M WIDTH RoW

30 M WIDTH RoW

12 M PERIPHERAL ROAD

LOGISTICS

ENTRY / EXIT


TO SH 43


PHASE-2 INDUSTRIAL AREA (1535 Ac.)&

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70 Ac.

23 Ac.

50 Ac.

50 Ac.

38 Ac.

25 Ac.

48 Ac.

58 Ac.

TO RAMACHANDRAPURAM

40 Ac.

50 Ac.

50 Ac.50 Ac.

75 Ac.

70 Ac.50 Ac.

50 Ac.50 Ac.

50 Ac.

20 Ac.

15 Ac.

20 Ac.20 Ac.

20 Ac. 4 Ac.

20 Ac.20 Ac.

20 Ac.12Ac.

14Ac.20 Ac.20 Ac.

20 Ac.

9 Ac.10 Ac.

10 Ac.10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.10 Ac.

10 Ac.10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.10 Ac.

10 Ac.10 Ac.14 Ac.

14 Ac.

20 Ac.20 Ac.

20 Ac.20 Ac.

20 Ac. 15 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

15 Ac.18 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

5 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

15 Ac.

3 Ac.2 Ac.

18 Ac.

13 Ac.2 Ac.

8 Ac.

50 Ac.

50 Ac.

42 Ac.

50 Ac.28 Ac.

13 Ac.

8 Ac. 3 Ac.

3 Ac.

7 Ac.

4 Ac.

2 Ac.

0.5 Km


0 Km 1 Km

LEGEND


N

GREEN AREAS

GREEN BELT

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

NH 214

NH 214A


GREEN AREA 164 5.5GREEN BELT 185 6.2

45 M WIDE ROW

45 M WIDE ROW

45 M WIDE ROW

45 M WIDE ROW

45 M WIDE ROW

45 M WIDE ROW

45 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

30 M WIDE ROW

30 M WIDE ROW

30 M

WID

E RO

W30

M W

IDE

ROW

30 M

WID

E RO

W

30 M

WID

E RO

W30

M R

OW

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

WID

E RO

W

45 M

WID

E RO

W

45 M

WID

E RO

W

45 M

WID

E RO

W

45 M

WID

E RO

W

45 M

WID

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W

30 M

WID

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W

30 M

WID

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W

30 M

WID

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W

24 M

WID

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W

24 M

WID

E RO

W

24 M

WID

E RO

W

30 M

WID

E RO

W

30 M

WID

E RO

W

45 M

WID

E RO

W

45 M

WID

E ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

30 M WIDE ROW

30 M WIDE ROW

TO BHOGOLU



TADEPALLIGUDEM

ENTRY / EXIT


TO SH 43



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70 Ac.

23 Ac.

50 Ac.

50 Ac.

38 Ac.

25 Ac.

48 Ac.

58 Ac.

ENTRY / EXIT


TO RAMACHANDRAPURAM

40 Ac.

50 Ac.

50 Ac.50 Ac.

75 Ac.

70 Ac.50 Ac.

50 Ac.50 Ac.

50 Ac.

20 Ac.

15 Ac.

20 Ac.20 Ac.

20 Ac. 4 Ac.

20 Ac.20 Ac.

20 Ac.12Ac.

14Ac.20 Ac.20 Ac.

20 Ac.

9 Ac.10 Ac.

10 Ac.10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.10 Ac.

10 Ac.10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.10 Ac.

10 Ac.10 Ac.

10 Ac.10 Ac.10 Ac.

10 Ac.10 Ac.14 Ac.

14 Ac.

20 Ac.20 Ac.

20 Ac.20 Ac.

20 Ac. 15 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

15 Ac.18 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

5 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

15 Ac.15 Ac.

15 Ac.

3 Ac.2 Ac.

18 Ac.

13 Ac.2 Ac.

8 Ac.

50 Ac.

50 Ac.

42 Ac.

50 Ac.28 Ac.

13 Ac.

8 Ac. 3 Ac.

3 Ac.

7 Ac.

4 Ac.

2 Ac.

0.5 Km


0 Km 1 Km

LEGEND


N

INFRASTRUCTURE UTILITIES

COMMON AMENITIES

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

NH 214

NH 214A


COMMON AMENITIES 116 3.9INFRASTRUCTURE UTILITIES 87 2.9

TO SH 4345 M WIDE ROW

45 M WIDE ROW

45 M WIDE ROW

45 M WIDE ROW

45 M WIDE ROW

45 M WIDE ROW

45 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

30 M WIDE ROW

30 M WIDE ROW

30 M

WID

E RO

W30

M W

IDE

ROW

30 M

WID

E RO

W

30 M

WID

E RO

W30

M R

OW

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

WID

E RO

W

45 M

WID

E RO

W

45 M

WID

E RO

W

45 M

WID

E RO

W

45 M

WID

E RO

W

45 M

WID

E RO

W

30 M

WID

E RO

W

30 M

WID

E RO

W

30 M

WID

E RO

W

24 M

WID

E RO

W

24 M

WID

E RO

W

24 M

WID

E RO

W

30 M

WID

E RO

W

30 M

WID

E RO

W

45 M

WID

E RO

W

45 M

WID

E ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

24 M WIDE ROW

30 M WIDE ROW

30 M WIDE ROW

TO BHOGOLU



TADEPALLIGUDEM



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Solid waste management

Hospital/ Clinic at convenient locations

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.

4.5 Housing2

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

will be serving the housing needs of the employees.

2 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 45m, 30m and 24m.

12m 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 28 MVA.



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 9 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 7 MLD.

5.1.5 Solid Waste Management

The total solid waste generation from the project site is estimated at 8 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.

83 Crores

Cost for development of streetlights is estimated at Rs.4 Crores

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

Drainage costs around Rs.22 Crores

Wastewater management costs about Rs.37 Crores

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

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

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

Rs.8 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 83

3. Street lights 4

4. Water supply network including storage 7

5. Drainage 22

6. Wastewater Management 37

7. Solid Waste Management 1

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

Sub Total 219



S. No Item Cost (in Rs. Crores)

Engineering and project management @ 2.5% 5

Contingency @ 5% 11

TOTAL COST 235

6

Cost Benefit Analysis


6 Cost Benefit Analysis Page 21

6 Cost Benefit Analysis3

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 Development of Palm Oil park at Bogolu and

Kalarayanagudem, Andhra Pradesh.

6.2 Overall Approach & Methodology

The cost benefit analysis has been carried out by analysing 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.120 Mn per Acre. The revenue

generating space in the project comes to 520 acres with that the total revenue from the

project is estimated at Rs.62,400 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.19,190 Millions.

6.4.2 Land Cost:

APIIC has to pay Forest Department an amount of Rs 0.32 Mn per acre 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 0.22 Mn per acre where as the maintenance expenses for the same comes to

around Rs 0.10 Mn per acre per annum.

6.4.4 Foregone revenue from the forest land

The foregone revenue from the forest land comes to around Rs 0.49 Mn per acre. 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.

3 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.992 Mn.

6.5 Details of Cost and Benefit

The Overall benefits from the project comes to Rs.62,400 Mn where as the expenses

incurred on converting forest land comes to Rs.23,385 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 2.67:1.

7

Financial Analysis


7 Financial Analysis Page 23

7 Financial Analysis4

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 Palm oil park at Bogolu and

Kalarayanagudem, 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. The project will developed in single phase.

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



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 2015-2016.

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. 3067 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, greenbelt development,



Equipment cost etc. The land cost is estimated at Rs. 0.54 Mn per Acre, which consist of Rs

0.32 Mn per acre to be paid to Forest department and the compensatory afforestation cost of

Rs. 0.22 Mn per acre. 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 1,205

Electrical 329

Mechanical 438

Msc Assets 219

Block capital Cost 2,190

Land and Site Developments 434

Contingency @ 5% 110

Engineering and Project Management @ 2.5% 55

Preoperative expenses 45

Financing cost 22

Interest During Cost 211

Landing Project Cost 3,067

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

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 the funding structure are

given in Table 7-4.

Table 7-4 : Means of Finance

Source of Fund Amount in Rs Mn Composition %

Equity 1200 39.2%

Debt 1795 58.5%

Non refundable deposit 71 2.3%

Total 3067 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

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.



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 has been adopted for the Companies Act

purposes. The rates have been 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 2104440 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 1825 40 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 21.55%

2 Post Tax IRR 14.01%

3 Equity IRR 18.84%

4 Average Debt Service Coverage Ratio with DSR 1.59

7.14 Observations

Project IRR

The project has IRR (post tax) of 14.01 %, 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.

Bhogolu and Kalarayanagudem 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.

Bhogolu and Kalarayanagudem Block are 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 Palm Oil Processing Hub is proposed at Bhogolu and

Kalarayanagudem.

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 Bogolu and Kalarayanagudem Forest Block

B1152201

RP012, Rev.0

Annexure 6.1

Palm oil Park at Bhogolu and Kalarayanagudem

Annual Benefit from the project

A Benefit from the industrial landRevenue (in

Rs Mn) / Acre

Area

earmarked

in acre

In Rs Mn

Revenue 120 520

Annual benefit 62,400

B Investment required for the industrial development In Rs Mn 19,190

Infrastructure Cost

Site Grading 570

Roads 770

Street lighting 40

Water 70

Drainage 220

Waste water 370

Signages 60

Solid waste Management 10

Admin Green area etc 80

Sectorwise investment 17,000

C Land cost to Forest Department in Rs Mn per Acre 0.32

Area (in acres) 798 258

D Cost incurred on afforestation (In Rs Mn per acre) 219830 175

Maintenance cost in Rs Mn per acre/annum 98800 79

E Foregone revenue from the forest land per Acre ( Rs Mn) 0.49

Total Revenue from the forest land ( Rs Mn) 388

F Interest Rate 12%

Interest on investment ( B*E) 2,303

G Depreciation % cost

Civil 3.33% 55% 351

Electrical 7.42% 15% 214

Mechanical 7.42% 20% 285

Msc Assets 7.42% 10% 142

H Total annual cost 23,385

I BC Ratio = Annual benefit/ Total Annual cost (A/H) 2.67

Page 1

Annexure 7.1 Interest During Construction (IDC)



B1152201

RP012 rev. 0

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 111.82 99.58 - - - - - - - - - - - - - -

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 17.39 26.13 31.72 36.58 45.73 53.85 53.85 53.85 53.85 53.85 52.78 51.70 49.55 47.39 44.16 40.93

Interest to be charge in P&L - - - - - - 53.85 53.85 53.85 53.85 52.78 51.70 49.55 47.39 44.16 40.93

IDC 17.39 26.13 31.72 36.58 45.73 53.85 - - - - - - - - - -

- - - - - - - -

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 36.62 32.31 26.93 21.54 15.08 7.54 - - - - - - - -

Financial Charges from CF 36.62 32.31 26.93 21.54 15.08 7.54 - - - - - - - -

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

IDC

1

Annexure 7.2 Debt Service Coverage Ratio (DSCR)



B1152201

RP012 rev. 0

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 - 173.49 408.40 612.03 829.67 606.97 2.32 2.99 3.72 4.24

Interst - 107.71 212.19 182.03 117.40 22.62 - - - -

Amortisation of expenses 7.61 76.33 132.09 125.34 119.02 113.10 107.56 102.37 97.50 92.94

Deferred Tax - 26.77 19.95 (8.02) (6.89) (5.91) (5.06) (4.33) (3.70) (3.15)

Total Cash flow 7.61 384.30 772.62 911.37 1,059.20 736.79 104.82 101.03 97.53 94.03

Debt Obligation

repayment - - 71.81 359.03 646.26 718.07 - - - -

interest - 107.71 212.19 182.03 117.40 22.62 - - - -

Total Debt Obligation - 107.71 284.00 541.06 763.66 740.68 - - - -

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

Min DSCR 0.99 - 3.57 2.72 1.68 1.39 0.99 - - - -

2

Annexure 7.3 Profitability Statement



B1152201

RP012 rev. 0

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 - - 411.33 859.56 1,080.37 1,323.46 882.30 - - - - - - - - - -

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

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

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

Processing Area - - 3.65 20.53 44.51 74.21 104.75 114.22 119.93 125.92 132.22 138.83 145.77 153.06 160.71 168.75 177.19

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

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

Total revenue - - 414.97 880.09 1,124.88 1,397.66 987.05 114.22 119.93 125.92 132.22 138.83 145.77 153.06 160.71 168.75 177.19

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

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

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

Administative expenses - - 11.78 24.45 25.67 26.95 28.30 29.71 31.20 32.76 34.40 36.12 37.92 39.82 41.81 43.90 46.10

Operation and Maintenance including marketing expenses- - 29.46 61.12 64.17 67.38 70.75 74.29 78.00 81.90 86.00 90.30 94.81 99.55 104.53 109.76 115.24

Insurance premium - - 9.19 17.38 16.14 14.99 13.93 12.96 12.06 11.23 10.46 9.76 9.10 8.50 7.93 7.41 6.93

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

Total expenses - - 50.44 102.95 105.98 109.32 112.98 116.96 121.26 125.89 130.86 136.17 141.84 147.87 154.28 161.07 168.27

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

PBDIT - - 364.54 777.14 1,018.90 1,288.34 874.07 (2.74) (1.33) 0.03 1.36 2.66 3.93 5.19 6.44 7.68 8.91

Depreciation - - 61.10 116.86 110.11 103.79 97.88 92.34 87.14 82.28 77.72 73.44 69.42 65.65 62.12 58.79 55.67

Amortisation of Land Leasehold - - 7.61 15.23 15.23 15.23 15.23 15.23 15.23 15.23 15.23 15.23 15.23 15.23 15.23 15.23 15.23

PBIT - - 295.82 645.06 893.57 1,169.32 760.97 (110.31) (103.70) (97.47) (91.58) (86.00) (80.71) (75.69) (70.91) (66.34) (61.99)

Financial Charges - - 107.71 212.19 182.03 117.40 22.62 - - - - - - - - - -

PBT - - 256.83 564.96 836.87 1,170.94 851.45 (2.74) (1.33) 0.03 1.36 2.66 3.93 5.19 6.44 7.68 8.91

Income Tax - - 56.57 136.61 232.87 348.16 250.39 - - 0.01 0.27 0.53 0.79 1.04 1.29 1.54 1.78

Deffered Tax - - 26.77 19.95 (8.02) (6.89) (5.91) (5.06) (4.33) (3.70) (3.15) (2.68) (2.27) (5.19) (6.44) (7.68) (8.91)

PAT - - 173.49 408.40 612.03 829.67 606.97 2.32 2.99 3.72 4.24 4.81 5.42 9.35 11.59 13.82 16.04

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 186.05 195.35 205.12 215.37 226.14 237.45 249.32 261.79 274.87 288.62 303.05 318.20 334.11 350.82 -

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


Total revenue 186.05 195.35 205.12 215.37 226.14 237.45 249.32 261.79 274.87 288.62 303.05 318.20 334.11 350.82 -

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

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

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

Administative expenses 48.40 50.82 53.36 56.03 58.83 61.78 64.86 68.11 71.51 75.09 78.84 82.78 86.92 99.16 -

Operation and Maintenance including marketing expenses 121.01 127.06 133.41 140.08 147.08 154.44 162.16 170.27 178.78 187.72 197.11 206.96 217.31 247.89 -

Insurance premium 6.49 6.07 5.69 5.33 4.99 4.68 4.39 4.13 3.87 3.64 3.42 3.22 3.03 2.85 -

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

Total expenses 175.89 183.95 192.46 201.44 210.91 220.90 231.42 242.50 254.17 266.45 279.37 292.96 307.26 349.90 -

PBDIT 10.15 11.40 12.66 13.93 15.23 16.55 17.90 19.28 20.71 22.17 23.68 25.24 26.85 0.92 -

Depreciation 52.74 49.98 47.40 44.96 42.66 40.50 38.47 36.55 34.75 33.04 31.43 29.92 28.49 27.13 -

Amortisation of Land Leasehold 15.23 15.23 15.23 15.23 15.23 15.23 15.23 15.23 15.23 15.23 15.23 15.23 15.23 15.23 -

PBIT (57.82) (53.81) (49.97) (46.26) (42.66) (39.18) (35.80) (32.50) (29.27) (26.10) (22.98) (19.91) (16.87) (41.44) -

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

PBT 10.15 11.40 12.66 13.93 15.23 16.55 17.90 19.28 20.71 22.17 23.68 25.24 26.85 0.92 -

Income Tax 2.03 2.28 2.53 2.79 3.05 3.31 3.58 7.56 12.19 12.74 13.27 13.78 14.28 5.82 -

Deffered Tax (10.15) (11.40) (12.66) (13.93) (15.23) (16.55) (17.90) (19.28) (20.71) (22.17) (23.68) (25.24) (26.85) (0.92) -

PAT 18.27 20.52 22.78 25.08 27.41 29.79 32.22 31.01 29.22 31.60 34.09 36.70 39.42 (3.98) -

3

Annexure 7.4 Cash Flow statement



B1152201

RP012 rev. 0

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 808.12 392.09 - - - - - - - - - - - - - -

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

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

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

Non Refundable Deposit - 411.33 859.56 1,080.37 1,323.46 882.30 - - - - - - - - - -

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

Lease receipts - 3.65 20.53 44.51 74.21 104.75 114.22 119.93 125.92 132.22 138.83 145.77 153.06 160.71 168.75 177.19

Deferred Tax liability - 19.61 15.29 (6.82) (6.19) (5.12) (203.45) (336.30) 11,367.06 212.09 86.61 46.62 75.69 70.91 66.34 61.99

Total Inflow 808.12 826.68 895.37 1,118.06 1,391.48 981.93 (89.24) (216.37) 11,492.98 344.31 225.44 192.39 228.75 231.62 235.09 239.17

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

Land 434.02 - - - - - - - - - - - - - - -

Construction 1,465.20 921.49 - - - - - - - - - - - - - -

Administrative expenses 4.71 16.94 24.45 25.67 26.95 28.30 29.71 31.20 32.76 34.40 36.12 37.92 39.82 41.81 43.90 46.10

Operation and Maintenance + Marketing 11.79 42.36 61.12 64.17 67.38 70.75 74.29 78.00 81.90 86.00 90.30 94.81 99.55 104.53 109.76 115.24

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

Insurance Premium - 9.19 17.38 16.14 14.99 13.93 12.96 12.06 11.23 10.46 9.76 9.10 8.50 7.93 7.41 6.93

Interest on term loan 111.82 207.29 212.19 182.03 117.40 22.62 - - - - - - - - - -

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

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

Income Tax - 41.43 104.67 197.99 312.77 225.56 - - - - - - - - - -

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

Total outflow 2,027.54 1,238.71 419.80 486.00 539.49 361.16 116.96 121.26 125.89 130.86 136.17 141.84 147.87 154.28 161.07 168.27

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

Opening Balance - 0.00 163.71 567.47 840.50 1,046.23 948.93 742.73 405.10 11,772.19 11,985.64 12,074.91 12,125.46 12,206.35 12,283.69 12,357.71

Monthly Surplus / (Deficit) (1,219.42) (412.04) 475.57 632.06 851.98 620.77 (206.20) (337.63) 11,367.09 213.45 89.27 50.55 80.88 77.34 74.02 70.90

Cumulative Cash (1,219.42) (412.04) 639.28 1,199.54 1,692.48 1,666.99 742.73 405.10 11,772.19 11,985.64 12,074.91 12,125.46 12,206.35 12,283.69 12,357.71 12,428.61

Loan from Bank 1,219.42 575.74 - - - - - - - - - - - - - -

Repayment of bank loan - - 71.81 359.03 646.26 718.07 - - - - - - - - - -

Cumulative loan 1,219.42 1,795.16 1,723.36 1,364.32 718.07 - - - - - - - - - - -

Closing Balance 0.00 163.71 567.47 840.50 1,046.23 948.93 742.73 405.10 11,772.19 11,985.64 12,074.91 12,125.46 12,206.35 12,283.69 12,357.71 12,428.61


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

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

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

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

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

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

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

Lease receipts 186.05 195.35 205.12 215.37 226.14 237.45 249.32 261.79 274.87 288.62 303.05 318.20 334.11 350.82 -

Deferred Tax liability 57.82 53.81 49.97 46.26 42.66 39.18 35.80 32.50 29.27 26.10 22.98 19.91 16.87 41.44 -

Total Inflow 243.86 249.16 255.08 261.63 268.80 276.63 285.12 294.28 304.14 314.72 326.03 338.11 350.98 392.26 -

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

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

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

Administrative expenses 48.40 50.82 53.36 56.03 58.83 61.78 64.86 68.11 71.51 75.09 78.84 82.78 86.92 99.16 -

Operation and Maintenance + Marketing 121.01 127.06 133.41 140.08 147.08 154.44 162.16 170.27 178.78 187.72 197.11 206.96 217.31 247.89 -

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

Insurance Premium 6.49 6.07 5.69 5.33 4.99 4.68 4.39 4.13 3.87 3.64 3.42 3.22 3.03 2.85 -

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

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

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

Income Tax - - - - - - - - - - - - - - -

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

Total outflow 175.89 183.95 192.46 201.44 210.91 220.90 231.42 242.50 254.17 266.45 279.37 292.96 307.26 349.90 -

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

Opening Balance 12,428.61 12,496.57 12,561.79 12,624.41 12,684.60 12,742.49 12,798.22 12,851.92 12,903.70 12,953.68 13,001.95 13,048.61 13,093.75 13,137.47 13,179.83

Monthly Surplus / (Deficit) 67.97 65.21 62.62 60.19 57.89 55.73 53.70 51.78 49.98 48.27 46.66 45.15 43.72 42.36 -

Cumulative Cash 12,496.57 12,561.79 12,624.41 12,684.60 12,742.49 12,798.22 12,851.92 12,903.70 12,953.68 13,001.95 13,048.61 13,093.75 13,137.47 13,179.83 13,179.83

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

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

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

Closing Balance 12,496.57 12,561.79 12,624.41 12,684.60 12,742.49 12,798.22 12,851.92 12,903.70 12,953.68 13,001.95 13,048.61 13,093.75 13,137.47 13,179.83 13,179.83

4

Annexure 7.5 Balance Sheet



B1152201

RP012 rev. 0

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 808.12 1,200.21 1,200.21 1,200.21 1,200.21 1,200.21 1,200.21 1,200.21 1,200.21 1,200.21 1,200.21 1,200.21 1,200.21 1,200.21 1,200.21 1,200.21

Reserves & Surplus - 146.68 474.88 988.42 1,727.57 2,240.36 2,130.05 2,026.35 1,928.88 1,837.29 1,751.29 1,670.58 1,594.89 1,523.98 1,457.64 1,395.65

Total Owners fund 808.12 1,346.89 1,675.09 2,188.64 2,927.79 3,440.57 3,330.27 3,226.56 3,129.09 3,037.51 2,951.50 2,870.79 2,795.10 2,724.19 2,657.85 2,595.86

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

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

Secured Loan 1,219.42 1,795.16 1,723.36 1,364.32 718.07 - - - - - - - - - - -

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

Deferred Tax Liability - 19.61 34.89 28.07 21.89 16.76 (186.69) (522.99) 10,844.07 11,056.16 11,142.77 11,189.39 11,265.08 11,335.99 11,402.33 11,464.32

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

Total Liabilities 2,027.54 3,161.66 3,433.34 3,581.04 3,667.74 3,457.34 3,143.58 2,703.58 13,973.16 14,093.67 14,094.27 14,060.18 14,060.18 14,060.18 14,060.18 14,060.18

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

Gross Fixed Assets 2,027.54 3,066.67 3,066.67 3,066.67 3,066.67 3,066.67 3,066.67 3,066.67 3,066.67 3,066.67 3,066.67 3,066.67 3,066.67 3,066.67 3,066.67 3,066.67

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

Depreciation - 68.72 200.80 326.14 445.16 558.26 665.83 768.20 865.70 958.65 1,047.31 1,131.96 1,212.84 1,290.19 1,364.20 1,435.10

Net Fixed Assets 2,027.54 2,997.96 2,865.87 2,740.53 2,621.51 2,508.41 2,400.84 2,298.48 2,200.97 2,108.03 2,019.36 1,934.71 1,853.83 1,776.49 1,702.47 1,631.57

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

Cash balance - 163.71 567.47 840.50 1,046.23 948.93 742.73 405.10 11,772.19 11,985.64 12,074.91 12,125.46 12,206.35 12,283.69 12,357.71 12,428.61

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

Total Assets 2,027.54 3,161.66 3,433.34 3,581.04 3,667.74 3,457.34 3,143.58 2,703.58 13,973.16 14,093.67 14,094.27 14,060.18 14,060.18 14,060.18 14,060.18 14,060.18


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

Equity 1,200.21 1,200.21 1,200.21 1,200.21 1,200.21 1,200.21 1,200.21 1,200.21 1,200.21 1,200.21 1,200.21 1,200.21 1,200.21 1,200.21 1,200.21

Reserves & Surplus 1,337.83 1,284.02 1,234.05 1,187.80 1,145.13 1,105.95 1,070.15 1,037.66 1,008.39 982.29 959.31 939.40 922.53 881.09 881.09

Total Owners fund 2,538.05 2,484.23 2,434.26 2,388.01 2,345.34 2,306.16 2,270.37 2,237.87 2,208.60 2,182.50 2,159.52 2,139.61 2,122.75 2,081.30 2,081.30

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

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

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

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

Deferred Tax Liability 11,522.13 11,575.95 11,625.91 11,672.17 11,714.83 11,754.02 11,789.81 11,822.31 11,851.58 11,877.67 11,900.66 11,920.57 11,937.43 11,978.87 11,978.87

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

Total Liabilities 14,060.18 14,060.18 14,060.18 14,060.18 14,060.18 14,060.18 14,060.18 14,060.18 14,060.18 14,060.18 14,060.18 14,060.18 14,060.18 14,060.18 14,060.18

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

Gross Fixed Assets 3,066.67 3,066.67 3,066.67 3,066.67 3,066.67 3,066.67 3,066.67 3,066.67 3,066.67 3,066.67 3,066.67 3,066.67 3,066.67 3,066.67 3,066.67

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

Depreciation 1,503.07 1,568.28 1,630.91 1,691.09 1,748.99 1,804.72 1,858.42 1,910.20 1,960.17 2,008.44 2,055.10 2,100.25 2,143.97 2,186.33 2,186.33

Net Fixed Assets 1,563.60 1,498.39 1,435.77 1,375.58 1,317.69 1,261.95 1,208.26 1,156.48 1,106.50 1,058.23 1,011.57 966.42 922.71 880.34 880.34

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

Cash balance 12,496.57 12,561.79 12,624.41 12,684.60 12,742.49 12,798.22 12,851.92 12,903.70 12,953.68 13,001.94 13,048.61 13,093.75 13,137.47 13,179.83 13,179.83

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

Total Assets 14,060.18 14,060.18 14,060.18 14,060.18 14,060.18 14,060.18 14,060.18 14,060.18 14,060.18 14,060.18 14,060.18 14,060.18 14,060.18 14,060.18 14,060.18

5

Annexure 7.6 IRR Calculation



B1152201

RP012 rev. 0

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 (1,899.22) (921.49) - - - - - - - - - - - - - -

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

PAT - 173.49 408.40 612.03 829.67 606.97 2.32 2.99 3.72 4.24 4.81 5.42 9.35 11.59 13.82 16.04

depreciation+ Amortisation - 68.72 132.09 125.34 119.02 113.10 107.56 102.37 97.50 92.94 88.66 84.65 80.88 77.34 74.02 70.90

Interest and Tax benefit from Debt component - 72.76 143.33 122.96 79.31 15.28 - - - - - - - - - -

Net inflow post tax (1,899.22) (606.53) 683.82 860.33 1,027.99 735.35 109.88 105.36 101.23 97.18 93.47 90.07 90.23 88.93 87.83 86.94

Tax - 83.34 156.55 224.84 341.27 244.48 (5.06) (4.33) (3.69) (2.88) (2.15) (1.49) (4.15) (5.15) (6.14) (7.13)

Pre tax Cash flow (1,899.22) (523.19) 840.38 1,085.17 1,369.26 979.84 104.82 101.03 97.54 94.31 91.32 88.58 86.07 83.78 81.69 79.81

Pre Tax IRR 21.55% - - - - - - - - - - - - - - - -

Post Tax IRR 14.01% - - - - - - - - - - - - - - - -

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 18.27 20.52 22.78 25.08 27.41 29.79 32.22 31.01 29.22 31.60 34.09 36.70 39.42 (3.98) -

depreciation+ Amortisation 67.97 65.21 62.62 60.19 57.89 55.73 53.70 51.78 49.98 48.27 46.66 45.15 43.72 42.36 -

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

Net inflow post tax 86.24 85.73 85.41 85.26 85.30 85.52 85.92 82.79 79.20 79.87 80.75 81.84 83.14 38.38 -

Tax (8.12) (9.12) (10.12) (11.14) (12.18) (13.24) (14.32) (11.72) (8.52) (9.43) (10.41) (11.46) (12.57) 4.90 -

78.12 76.61 75.28 74.12 73.12 72.28 71.60 71.07 70.68 70.44 70.34 70.38 70.57 43.28 -

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

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

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 - 173.49 408.40 612.03 829.67 606.97 2.32 2.99 3.72 4.24 4.81 5.42 9.35 11.59 13.82 16.04

Add Depreciation+ Amortisation - 68.72 132.09 125.34 119.02 113.10 107.56 102.37 97.50 92.94 88.66 84.65 80.88 77.34 74.02 70.90

Add Deferred tax liability - 26.77 19.95 (8.02) (6.89) (5.91) (5.06) (4.33) (3.70) (3.15) (2.68) (2.27) (5.19) (6.44) (7.68) (8.91)

Less :Equity 808.12 392.09 - - - - - - - - - - - - - -

Less : Senior debt Repayment - - 71.81 359.03 646.26 718.07 - - - - - - - - - -

FCFE (Free Cashflow to Equity Holders) (808.12) (123.12) 488.63 370.31 295.54 (3.90) 104.82 101.03 97.53 94.03 90.79 87.80 85.04 82.49 80.16 78.03

Equity IRR 18.84%

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 18.27 20.52 22.78 25.08 27.41 29.79 32.22 31.01 29.22 31.60 34.09 36.70 39.42 (3.98) -

Add Depreciation+ Amortisation 67.97 65.21 62.62 60.19 57.89 55.73 53.70 51.78 49.98 48.27 46.66 45.15 43.72 42.36 -

Add Deferred tax liability (10.15) (11.40) (12.66) (13.93) (15.23) (16.55) (17.90) (19.28) (20.71) (22.17) (23.68) (25.24) (26.85) (0.92) -

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

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

FCFE (Free Cashflow to Equity Holders) 76.09 74.33 72.75 71.33 70.07 68.97 68.02 63.50 58.49 57.70 57.07 56.60 56.29 37.46 -

6

L&T INFRASTRUCTURE ENGINEERING LIMITED

(Formerly known as L&T-Ramboll Consulting Engineers 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

Documents