Competition Risk
› High Competition In the infrastructure industry.
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of
almost all state and central government projects
› ’HAI says technical and financially sound will only
get the project.
› Lot of opportunities too -:
› The increased allocation made in the 11th Five year plan of
approx. US$ 500 billion. A third of the planned investment to
come from the PPP model.
› number of vehicles has been growing at an average pace of
10.16 per cent per annum
Competition Risk
› Mitigation has a lot of benefits ± closing of weak areas.
› Already some part taken care due to strengths ±
› Balanced diversification in different segment
› Excellent Track Record,
› Strong Competencies across all Stages of the Project Life Cycle
› Management strong - handled global projects
› To focus on -:
› Enhancing capacities
› Investment concerns- maintain lowed D/E ratio, better ratings.
› Relationship management with the Contractors.

› Can retain this risk without costly mitigation.

Taxation Risk
› Arises due to -:
› structuring deals where they don¶t get tax benefits or
› Failure to accumulate and consider relevant tax information may
result in non-compliance with tax regulations or adverse tax
consequences.
› Mitigation is necessary cause the implications are huge
› Hire external consultants or even take help of GMR consultants
when structuring such deals.
› Adequate training to managers for basic laws and
communications on any change in the laws.
› Also communication for any faults by other managers.
› Maintain better D/E and credit ratings on debt. Would not have
to go in for costlier methods (QIP¶s), can go in for debt.