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March 30, 2015 April 05, 2015

Policy
The government has approved amendments to the public private partnership (PPP)
guidelines to enhance financial support to projects in infrastructure sector. The Cabinet
Committee on Economic Affairs has approved the change in the definition of a 'private sector company'
in the guidelines for financial support to PPP projects in the infrastructure sector under the Viability Gap
Funding Scheme (VGF Scheme). The definition of a 'Private Sector Company' has been amended to
mean a company which is not a 'Government Company'. This has been done to remove any ambiguity
in interpretation of the term 'Private Sector Company' and to align it with the definition of 'Government
Company' in the Companies Act, 2013.
The government has received Rs 107.91 billion from Bharti Airtel, Vodafone India, Idea
Cellular and Reliance Jio Infocomm Limited (RJIL) as the upfront payment for spectrum acquired
in the recently concluded auctions. The remaining portion of the total upfront payments (Rs 290
billion) will need to be made by April 8, 2015. According to the Department of Telecommunications
(DoT), the cumulative upfront payments to be received are: Bharti Airtel (Rs 78.32 billion), Idea Cellular
(Rs 77.90 billion), Vodafone India (Rs 68.67 billion), RJIL (Rs 25.19 billion), Tata Teleservices (Rs 20.13
billion), Reliance Communications (Rs 11.06 billion) and Aircel (Rs 7.42 billion). As per the spectrum
auction guidelines, the operators have to pay either 25 per cent or 33 per cent of the winning bid
amounts within 10 days and the balance in 10 equal installments after a two-year moratorium. In the
recently concluded spectrum auctions, the maximum amount of spectrum has been allocated to Bharti
Airtel (111.6 MHz), followed by Idea Cellular (79.4 MHz) and Vodafone India (78.4 MHz). Meanwhile,
Reliance Communications has won 47.05 MHz of spectrum and Reliance Jio Infocomm Limited has
won 66.35 MHz of spectrum, while Tata Teleservices Limited was allocated 13.85 MHz of spectrum.
Sanctions/Grants
The Union Government has sanctioned the Gurupriya Bridge Project at an estimated cost of
Rs 9.7 billion. The project involves construction of a high-level bridge of 910 metres over the Gurupriya
river at Janbai in Malkangiri district in Odisha. The proposed bridge, after completion, will connect 140
villages of Janbai, Papermatla, Jodamba, Badapadara, Raleguda and Panasput panchayats under
Kudumulugumma block in the district.
The Mumbai Metropolitan Region Development Authority (MMRDA) sanctioned funds for
three road projects in Maharashtra on March 26, 2015. The projects for which funds have sanctioned
are: Construction of Flyovers at Chheda Nagar Junction along the Eastern Express (EEH) Highway
Road Project involves construction of three flyovers and an underpass at Chheda Nagar Junction along
the EEH. The three flyovers will connect: Kurla to Thane, Navi Mumbai to Thane and Ghatkopar to Navi
Mumbai.The Chunabhatti Rail-Over-Bridge (RoB) Road Project envisages construction of a 1.6 km long
rail-over-bridge (RoB) on the V.N.Purav Marg at the level crossing at Chunabhatti in the state. The
Andheri-Ghatkopar Link (AGLR) Road Project involves widening and strengthening of the AndheriGhatkopar Link Road stretching from Western Expressway Highway (WEH) to Eastern Expressway
Highway (EEH) (Sainka).
The Ghaziabad Development Authority (GDA) has sanctioned funds for the implementation of
the Ghaziabad Northern Peripheral and the six-lane Ghaziabad Hindon elevated road projects The
Ghaziabad Northern Peripheral road project involves construction of a 15 km six-lane access-controlled
expressway and six-laning of approximate 5 km. The GDA has sanctioned Rs 1.5 billion for the project.
The Ghaziabad Hindon elevated road project entails construction of a six-lane access-controlled
elevated road on a transit oriented development (TOD) basis. The GDA has sanctioned Rs 700 million
for the project.
Loans/Bonds
The Ministry of Finance (MoF) and the Asian Development Bank (ADB) have signed a loan
agreement for the SASEC Road Connectivity Investment Programme (SRCIP) on March 26, 2015.
ADB will provide a loan worth Rs 31.3 billion ($500 million), of which the agreement has been signed for

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Rs 18.79 billion ($300 million). The project aims at improving the regional connectivity in the North
Bengal-North Eastern (NBNE) Region. Under this programme, about 500 km of roads will be
constructed in NBNE region. The members of this group are Bangladesh, India, Nepal and Bhutan.
Tata Power Company Limited has achieved financial closure for its 187 MW hydro electric plant
in Georgia. The company has secured long-term project financing for the $400 million project from
International Finance Corporation, ADB and European Bank for Reconstruction and Development.
Punjab National Bank has raised Rs 18 billion through long-term bonds for funding
infrastructure projects. The 10-year bonds were issued at an annual coupon rate of 8.35 per cent on
private placement basis on March 24, 2015. In order to encourage infrastructure development and
affordable housing, the Reserve Bank of India (RBI) last year exempted long term bonds from mandatory
regulatory norms like cash reserves ratio (CRR), statutory reserves ratio (SLR) if the money raised is
used for funding of such projects.
Public Offerings/Qualified Institutional Placements
Logistics company Navkar Corporation Limited, which provides container freight station
services and trading activities, has filed its draft red herring prospectus (DRHP) with the Securities
and Exchange Board of India to float its initial public offer (IPO). The proposed public issue comprises
fresh issue worth Rs 5.1 billion ($82 million) besides an offer for sale of Rs 0.9 billion ($14 million) from
its promoters. This makes it the second logistics company queuing up for a public float after agri
commodities-focused supply chain firm Shree Shubham Logistics Limited.
Equity Moves
Japanese mobile telecom firm SoftBank Corp is reportedly in discussions to buy a 20 percent
stake in handset maker Micromax Informatics for up to $1 billion. The investment would likely value
Micromax at around $5 billion.Earlier, Micromax had filed for a public listing in 2010, but shelved those
plans citing poor market conditions. At present, Micromaxs key investors include private equity firms
Sequoia Capital and TA Associates. The company entered the Indian mobile handset market in 2008
and is credited with fuelling the demand for smartphones in the country.
JSW Energy Limited has initiated the process to raise about Rs 20 billion from the stake sale of
10-15 per cent through qualified institutional placement. Reportedly, the proceeds from the sale
would be utilised to fund acquisitions and restore the companys healthy leverage ratio following the
companys acquisition of Jaiprakash Power Ventures Limiteds two hydropower plants. JPMorgan, Bank
of America Merrill Lynch and CLSA have been appointed as the managers of the issue.
Miscellaneous
Reportedly, the lenders for the Kundli-Manesar-Palwal (KMP) expressway have moved the
Supreme Court to seek their pending financial dues. IDBI Bank and State Bank of India have
reportedly sought Rs 14.19 billion as compensation in lieu of their pending dues towards the project.
Recently, bids were invited to appoint a contractor for completion of balance work on the expressway.
The National Highways Authority of India (NHAI) is likely to shortly issue tenders for the fourlaning of the Vijayawada-Machilipatnam section of NH-9 from km 0 to km 63.8 in Andhra Pradesh.
Of the total land required for the project, 92 per cent has already been acquired. The decision on delinking the Benz Circle flyover from the project is yet to be taken by the concerned authorities. The
project will be implemented under Phase III of National Highways Development Programme.
The Roads and Buildings (R&B) Department of Telangana has announced the Radial Roads
project. The R&B Department has reportedly sought financial assistance from the Japan
International Cooperation Agency, and the projects proposal will be finalised after it is approved by
the state government. The project involves the upgrading of 16 major routes in Hyderabad at an
investment of Rs 27.5 billion. The state government has already accorded an administrative sanction of
Rs 3.04 billion for the first phase of the project and a government order is expected to be issued shortly
in this regard.

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Note: Rs 1 crore = Rs 0.01 billion; Rs 1 lakh = Rs 0.1 million; Rs 1,000 million = Rs 1 billion