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FLANDERS INVESTMENT & TRADE ZOCHT HET VOOR U UIT

INFRASTRUCTURE

IN INDIA

Infrastructure in India

Study made by FIT office in Mumbai

Flanders Investment & Trade Consulate General of Belgium TCG Financial Centre, 7th Floor C-53 G-Block, Bandra-Kurla Complex Bandra (E) Mumbai 400.051 India E-mail: [email protected] T.: +91 22 66 71 06 27

mailto:[email protected]

Infrastructure in India | 2014 _________________________________________________________________________________ 1

Table of Contents

EXECUTIVE SUMMARY .................................................................................................................................... 3

SCOPE OF OUR STUDY .................................................................................................................................... 4

METHODOLOGY ................................................................................................................................................ 4

OVERVIEW OF INFRASTRUCTURE IN INDIA ................................................................................................ 5

WHY INVEST IN INDIA ..................................................................................................................................... 6

FOREIGN DIRECT INVESTMENT IN INFRASTRUCTURE ............................................................................. 7

FDI ROUTES ................................................................................................................................................... 8

LOGISTICAL INEFFICIENCIES IN INDIAN INFRASTRUCTURE .................................................................... 9

OPPORTUNITIES IN INDIA ............................................................................................................................ 10

ROADS AND HIGHWAYS ........................................................................................................................... 10

RAILWAYS .................................................................................................................................................... 16

PORTS AND AIRPORTS .............................................................................................................................. 22

POTENTIAL FOR CONSTRUCTION EQUIPMENT IN INDIA ...................................................................... 24

PUBLIC PRIVATE PARTNERSHIPS IN INFRASTRUCTURE ......................................................................... 27

TAX FOR ENGINEERING AND CONSTRUCTION COMPANIES ................................................................. 29

STRUCTURAL CONSIDERATIONS FOR DEVELOPERS............................................................................ 31

INTERNATIONAL TAX CONSIDERATIONS .................................................................................................. 31

ENTRY AND EXIT STRATEGY ..................................................................................................................... 31

HOLDING THE INVESTMENT .................................................................................................................... 32

CASH AND PROFITS REPATRIATION ....................................................................................................... 32

ENGINEERING, PROCUREMENT & CONSTRUCTION (EPC) CONTRACTS:ON-SHORE VS OFF-

SHORE........................................................................................................................................................... 32

MARKET CHALLENGES................................................................................................................................... 34

SUCCESS STORIES OF BELGIAN COMPANIES IN INDIAN INFRASTRUCTURE ..................................... 36

TRAFFICON (NOW KNOWN AS FLIR) ...................................................................................................... 36

EURO STATION AND EURO IMMOSTAR ................................................................................................ 36

NEY AND POULISSEN ................................................................................................................................. 37

TPF ................................................................................................................................................................ 38

PORT OF ANTWERP AND ESSAR ............................................................................................................. 39

JOINT INFRASTRCUTURE FUND WITH IL&FS ........................................................................................ 39

MAJOR INDIAN PLAYERS IN INFRASTRUCTURE SECTOR ....................................................................... 41

GMR GROUP ................................................................................................................................................ 41

LANCO INFRATECH LIMITED .................................................................................................................... 41


MAN INFRACONSTRUCTION LIMITED .................................................................................................... 41

SIMPLEX INFRASTRUCTURES LIMITED .................................................................................................. 41

IVRCL LIMITED ............................................................................................................................................ 42

HINDUSTAN CONSTRUCTION CO. LIMITED .......................................................................................... 42

RAMKY INFRASTRUCTURE LIMITED ....................................................................................................... 42

IL&FS ENGINEERING AND CONSTRUCTION COMPANY LIMITED ..................................................... 42

GAMMON INDIA ......................................................................................................................................... 43

NODAL AGENCIES IN MAHARASHTRA ....................................................................................................... 44

MUMBAI METROPOLITAN REGION DEVELOPMENT AUTHORITY (MMRDA) ................................. 45

CITY AND INDUSTRIAL DEVELOPMENT CORPORATION OF MAHARASHTRA LTD (CIDCO) ......... 46

ROAD AHEAD .................................................................................................................................................. 48

FLANDERS INVESTMENT AND TRADE, MUMBAI AND MMRDA MOU ................................................. 49

INDUSTRY CONTACTS ................................................................................................................................... 51

WEST INDIA CONTACTS ............................................................................................................................ 51

REST OF INDIA CONTACTS ....................................................................................................................... 58

INDUSTRY ASSOCIATIONS AND EXHIBITIONS .......................................................................................... 60

BIBLIOGRAPHY ................................................................................................................................................ 61


EXECUTIVE SUMMARY

Whilst the need for greater infrastructure investment is clear, equally important is the need to

sustainably manage such investments. The Indian Government’s success in infrastructure provision

will be measured not by the quantum of funds invested, but on how infrastructure contributes to

the achievement of India’s economic, social and environmental objectives. Importantly,

infrastructure investment should be considered as a means to an end, not an end in itself.

Challenges in infrastructure provision are not unique to India. Uncertainty, scarcity of available funds

for investment and competing priorities present challenges to all governments in infrastructure

planning and delivery. Sustainability requires that future generations are not compromised by the

investment decisions of current generations. Sustainably managing infrastructure through

appropriate pricing, funding and prioritisation frameworks is important to ensure the benefits that

accrue from the significant investment that India is currently making in key social and economic

infrastructure are maximized. Global climate change creates further challenges. New infrastructure

must not only support social and economic goals, it must also do so within acceptable environmental

parameters.

Given that India’s growth rate is likely to continue at steady levels, it is important that considerations

of issues such as fuel mix, encouraging more fuel efficient modes of transport such as rail, improved

technology, come fully into discussion and are implemented whenever possible. In our view, it is

imperative that debate on the issue of sustainability in infrastructure provision is heightened and

that the challenge that it presents is effectively met. Government and infrastructure agencies will

also need to retain sufficient focus on issues of feasibility and prioritisation when the primary focus

shifts to delivery. Engineering and construction companies looking to bid on major projects need to

ensure that they are taking a holistic approach which incorporates sustainability issues into the

design of the project, both in the planning and the delivery stages. Those that do so have a unique

opportunity to make a major difference in a growing economy while enhancing their own bottom

line.

May 2014, Mumbai


SCOPE OF OUR STUDY

The scope of the report is to estimate the potential available for Flemish companies in the Indian

infrastructure sector. The study provides information related to the infrastructure sector in India, the

opportunity and growth for players catering to this sector. The report also talks about nodal agencies

in Maharashtra who are responsible for implementing and executing public private partnerships and

several other projects within the infrastructure space.

METHODOLOGY

The study involves desk based research (company websites, press releases and reports) and

collection of data through interviews and conversations with players and government agencies in

India.

India being a large country with relatively low penetration and incomplete availability of organized

data, it is important for companies to understand that there is an element of ‘subjectivity’ in this

report. The key findings and recommendations need to be considered in this context before taking

major decisions with respect to India.


OVERVIEW OF INFRASTRUCTURE IN INDIA

India’s economy is big and getting bigger. Liberalisation of government regulations and a deliberate

strategy on the part of the Indian Government to promote infrastructure spells opportunity for

engineering and construction companies. Nearly all of the infrastructure sub sectors present

excellent opportunities, with roads and highways, ports and airports, railways and power standing

out as particular bright spots, with staggering sums of investment planned. Public-private

partnerships (PPPs) are gaining importance and are benefiting from government support. Companies

experienced in structuring these types of deals should be able to use their expertise to good effect

in the Indian marketplace.

Operating in India requires a thorough understanding of the local market. Companies need to do

their homework in order to understand a host of tax and regulatory issues before bidding on projects

or setting up operations. Whether or not a permanent establishment is created, how on-shore versus

off-shore services and supplies are managed in a particular contract and indirect tax implications can

all have a major impact on the bottom line. Further, foreign players are likely to identify promising

local companies, and then make a case for a profitable partnership, in order to achieve a win-win

situation in India. Still, there is a strong rationale for many engineering and construction companies

to invest in India sooner, rather than later. Not only are there substantial opportunities now, but

establishing relationships and a presence in the market can help to ensure continuing project

potential over the medium and long-term. Collaboration with an Indian company also provides an

opportunity to bid for projects outside of India, mainly in and around South East Asia, African

countries and some part of Middle-East.

From a market standpoint, it is imperative that infrastructure development occurs in a sustainable

manner. The Indian Government must maintain a commitment to ensuring that rapid growth does

not happen at an untenably high environmental cost and infrastructure projects will play a key role

in ensuring the success of ‘green growth’. Those engineering and construction companies taking a

holistic approach to building a sustainable infrastructure will have a strong competitive advantage.


WHY INVEST IN INDIA

One of the world’s fastest growing economies – and growth expected to continue at 6-7%.

Few restrictions on foreign direct investment (FDI) for infrastructure projects.

Tax holidays for developers of most types of infrastructure projects, some of which are of

limited duration.

Opening up of the infrastructure sector through Public-private partnerships (PPPs).


FOREIGN DIRECT INVESTMENT IN INFRASTRUCTURE

Major infrastructure development requires a substantial influx of investment capital. The policies of

the Indian Government seek to encourage investments in domestic infrastructure from both local

and foreign private capital. Foreign direct investment flow into India in 2013 increased 17 per cent

to US $28 billion, but its ranking among the top 20 attractive global destinations slipped one notch

to 16. In order to increase FDI inflows, particularly with a view to catalysing investment and

enhancing infrastructure, the Indian Government now permits 100% FDI under the automatic route

for a broad range of sectors – only certain post investment intimation is required. For FDI in a few

sectors, a prior approval is required, which takes around 6-8 weeks. The Indian Government is

constantly simplifying the approval route process, including setting up several agencies to expedite

FDI approval. Government keeps laying emphasis on infrastructure investment; liberalization will be

the key to the future developments in this sector.

A recent press report stated that Morgan Stanley was looking to invest up to a quarter of its US $4

billion global infrastructure fund in emerging markets, notably India and China – and that in India,

Morgan Stanley would face competition from Australia’s Macquarie Group, JP Morgan, Goldman

Sachs and Deutsche Bank all looking to channel foreign investors’ money into Indian infrastructure.

While some of this planned investment may be reduced or delayed given the current market

situation, India is still likely to garner substantial FDI, particularly if its economy is able to maintain a

fairly steady rate of growth.

From an exchange control perspective, India is moving towards full current account convertibility.

Most revenue transactions are freely permitted, except certain transactions like royalty, consultancy

fees, etc., which are subject to certain limits. Capital account transactions need prior approval,

except where specifically permitted. In order to promote the construction sector, the Indian

Government has relaxed some of the exchange control restrictions.

Hurdles to investment remain. Although India has a well-developed legal system, the current legal

and regulatory environment sometimes acts as an obstacle to the necessary injections of foreign

private capital into India’s infrastructure. Major infrastructure projects are governed by the

concession agreements signed between public authorities and private entities. Tariff determination

and the setting of performance standards vary somewhat by sector. In the roads and highways

sector, the ministry generally sets tolls – while in major port projects, and many of those in electricity

generation, an independent regulator will decide relevant tariffs. In the airport sector, a new

independent regulator AERA (Airports Economic Regulatory Authority) plays a major role in

determining tariffs in concession agreements for the segment.

In some instances, ministry or regulator control over potential proceeds can act as a disincentive to

the private infrastructure developer. As is the case in many countries, there is no single regulator

which formulates the policy for all infrastructure projects. There is also no standardisation in the

concession agreements across the different infrastructure sectors. As a result, the development of

certain sectors in India may be hampered due to lack of adequate and coordinated planning. Projects

which are approved may face difficulties if related projects are substantially delayed. One example

is Bangalore international airport, one of the largest PPP projects to date. The project has been facing


growing pains related to insufficient road and rail connections to the new facility, in part due to

delays of expected high speed rail and highway projects under the auspices of other government

bodies. Apart from logistics and poor connectivity, the private players executing the project faced

tax complications.

Source: Reuters, September 18, 2012, Morgan Stanley Infrastructure fund for emerging markets

FDI ROUTES

Approval Route – Permission required Automatic Route – Freely permissible (100%)

Existing Airports – beyond 74%

Atomic Minerals

In case of joint venture or technology

collaboration agreement in the same

field

Greenfield airports

Construction and maintenance of

infrastructure like ports, harbors, roads

and highways

Power generation, transmission and

distribution and power trading (atomic

energy not permitted)

Mass rapid transport systems

Townships, housing, built-up

infrastructure and construction

development projects


LOGISTICAL INEFFICIENCIES IN INDIAN INFRASTRUCTURE

Losses due to inefficiency in logistics infrastructure in India could treble to US $140 billion annually

in the next one decade from US $45 billion in 2007 if increased usage of rail and optimal utilisation

of waterways is not achieved, according to McKinsey & Co.

About US $500 billion of investment is envisaged in the logistics infrastructure in the next ten years

in the country.

The McKinsey report, ‘Transforming the nations logistics infrastructure’, estimates that by 2020 India

would require five dedicated freight corridors (DFCs) against the currently planned. It also

recommends around 30 expressways against the 6 expressways during the period. It emphasizes on

increasing usage of rail and waterways in India, against burdening the road network. If India fails to

achieve this, waste caused by poor logistics infrastructure will increase up to US $140 billion by 2020.

Freight movement is expected to increase three fold in the next decade.

McKinsey said India needs to increase investments in logistics infrastructure from the planned US

$500 billion to US $700 billion in the next decade. Based on Mckinsey’s analysis if investments are

increased from US $500 billion to around US $700 billion by 2020, the losses in the system would

decline from over 4% to under 3% of GDP in 2020.

Current losses due to an inefficient logistics system account to around 4.3% of today’s gross domestic

product (GDP), which is expected to increase to up to 5% of the GDP by 2020. The total estimated

loss has been calculated by a detailed analysis of a flow of three main commodities — coal, auto

components and agricultural goods.

If the current trajectory continues, movement by railways is likely to reduce to 25% and waterways

to 5%, while major pressure would continue to remain on the road sector, which would see its share

in the freight movement rising to 69% by 2020.

On the other hand, if India succeeds to shift more than 45% of its freight movement to the railway

segment by 2020, losses could be reduced to up to 4% of the GDP against the estimated 5% of the

GDP for 2020 if the current trajectory continues.

McKinsey recommends a new modal mix wherein freight traffic movement would comprise 47% by

road, 46% by rail, 6% by water and less than 1% by air.

To have a balanced modal mix of this kind the country needs a road rail balanced network of five rail

DFCs — Delhi-Mumbai, Delhi-Kolkata, Mumbai-Chennai, Delhi-Chennai, Mumbai-Kolkata and two

coastal corridors — Kandla-Kochi and Kolkata-Chennai. These corridors will need to be supported by

20 to 30 expressways, road and rail links across the 150 connectors and 700 last mile links. The report

also seeks a change in the pattern in which these investments are likely to be disbursed across

segments.

Source: Daily News Analysis, Sept 2010, India loses US $45 billion yearly due to inefficient logistics

Infrastructure in India | 2014 ________________________________________________________________________________ 10

OPPORTUNITIES IN INDIA

The Planning Commission of India has planned extensive expansion in the roads and highways, ports,

civil aviation and airports and power infrastructure segments – all of which provide substantial

opportunities for engineering and construction companies. Mentioned below is a brief description

in terms of the recent happenings, projects, growth potential and allocation for each of the

segments.

ROADS AND HIGHWAYS

India has the second largest road network in the world, spanning a total of 4.7 million kilometers.

This is used to transport over 60 per cent of all goods in the country and 85 per cent of total passenger

traffic. The Planning Commission of India aims to spend nearly 20 per cent of the total investment of

US $1 trillion during the 12th Five Year Plan (2012–17) to develop roads. The private sector is

emerging as a key player in the development of road infrastructure in India. National highways are

expected to reach 85,000 kilometers by the end of the 12th Five Year Plan from 79,116 kilometers in

FY 2013.

Greater connectivity between different cities, towns and villages has led to increased road traffic

over the years. Growth in automobiles and freight movement commands a better road network in

India.

Roads and bridge infrastructure industry to be worth US $19.2 billion by FY17. During FY14, around

8,270 km of the National Highways are to be improved along with construction/rehabilitation of 100

bridges and 4 bypasses.

US $1 trillion worth of expenditure on infrastructure is estimated over FY13–17. Government of India

aims to develop a total of 66,117 kilometers of roads by growing participation of private sector

through Public Private Partnership (PPP).

Road infrastructure is a key government priority; the sector has received strong budgetary support

over the years. Financial institutions have received government approval to raise money through tax-

free bonds.


Source: Ministry of Road, Transport and Highways

(MoRTH) – Annual Report 2012-13, Aranca Research

State Highways; 3,30% National

Highways; 1,70%

District and Rural Highways; 95%


Source: National Highway Authority of India (NHAI), National Highway Builders Foundation, ICRA Ltd, Reserve Bank of

India (RBI) Notes: FY - Indian Financial Year (April-March), NHDP - National Highway Development Project, Aranca

Research; Data is target figure for toll collection in 2012-2013

Roads bear about 85 per cent of the country’s passenger traffic and 60 per cent of freight traffic.

The value of total roads and bridges infrastructure in India is expected to grow at a CAGR of 17.4 per

cent over FY12-17 to reach US $19 billion. Currently, the Government of India aims to develop a total

of 66,117 kilometers of roads under various programs such as NHDP, SARDP-NE and LWE Of the total

roads, 20,945 kilometers have been developed, while a major share of the remaining is estimated to

be completed by the end of the 12th Five Year Plan.

Source: Business Monitor International (BMI), Aranca Research

National highways account for 1.7 per cent of the total road network in India. Under the 12th Five

Year Plan (FY13–17), the government plans to develop 20 kilometers of national highways per day,

which implies a total development of 7,300 kilometers per year. Double-lane highways constitute

the largest share of highways in India (40,658 kilometers). Double-lane highways are followed by

single/intermediate-lane (19,330 kilometers) and four/six/eight-lane (19,128 kilometers) highways.

National highways are expected to reach 85,000 kilometers by the end of the 12th Five Year Plan

from 79,116 kilometers in FY13.

0

5

10

15

20

25

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

Compound Annual GrowthRate (CAGR)

ROADS/BRIDGES INFRASTRUCTURE VALUE IN INDIA (USD BILLION)

CAGR: 13.6%


Source: MoRTH, Aranca Research

The National Highway Authority of India (NHAI) is a government agency responsible for construction,

maintenance and development of highways. The Government of India has formulated a seven-phase

program known as ‘National Highway Development Project (NHDP)’, vested with NHAI, for the

development of national highways in the country.

25%

51%

24%

LANE COMPOSITION OF NATIONAL HIGHWAYS (FY13)

Single Lane

Double Lane

Four/Six/Eight Lane


As on 31 March 2012, India had 2,409 PPP projects across the infrastructure sector, of which 874 are

dedicated towards roads and highways. The BOT (build operate and transfer) model’s share in total

highway projects has increased sharply over the years; it rose to 31 per cent in FY10 from 10 per cent

in FY05.

Roads/NationalHighways

36%

Others64%

TOTAL PPP PROJECTS IN INDIA (MARCH 2012)


Source: MoRTH, Aranca Research

Road construction projects awarded to BOT companies recorded a CAGR of 17.1 per cent over FY06-

13. The total projects awarded in FY13 by both NHAI and Ministry of Road Transport and Highways

is 1,933 km.

Source: NHAI, Crisil, Aranca Research, Note: FY13* - Projects awarded by NHAI

4 7 9 917

53

912 12

20

20

27

8

1315

19

22

23

FY05 FY06 FY07 FY08 FY09 FY10

COMPOSITION OF TOTAL HIGHWAY PROJECTS AWARDED

BOT SPV Public Funded

2%2%

3%

5%

15%

34%

33%

6%

AWARDS WON BY BOT PRIVATE PLAYERS YEAR ON YEAR

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13


Until 2005, the road construction market was dominated by public sector companies. However, the

emergence of private players over the last decade has made the road construction market

fragmented and competitive; the players bidding for projects also vary by size.

Government policy to increase private sector participation has proved to be a boon to the

infrastructure industry with a large number of private players entering the business through the

Public Private Partnership (PPP) model. The type of PPP models used in road projects is (BOT) toll

and BOT annuity.

With the Government of India permitting 100 per cent FDI in the road sector, most foreign companies

have formed partnerships with Indian players to participate in the sector’s growth story.

Infrastructure is the key to supporting double-digit GDP growth in India during the medium to long

term.

The government has hence made infrastructure development a key policy issue and plans to spend

US $1.0 trillion during FY13-17 on the sector.

Example of foreign partnerships in India infrastructure sector: IL&FS Transportation Networks (ITNL)

partnered with Japanese road construction firm East Nippon Expressway Co to tap public private

partnership (PPP) projects in India.

Source: Daily News Analysis, July 1, 2013, Infra companies rope in foreign partners.

RAILWAYS

Indian Railways is the ninth largest employer in the world employing 1.4 million people. As a part of

the government budget, Indian railways have a dedicated slot for presenting the planning and

expenditure for the next fiscal year. Though over the years Indian railways have added new trains,

services, expanded capacity, very little has been done in terms of modernizing the railway engines

railway terminals and tracks.


As of FY12, Indian Railways had 12,335 passenger trains carrying over 30 million passengers daily. On

the commercial front, 975.2 million tons of freight was transported via trains in FY12.

Private sector companies are being encouraged to participate in rail projects, which were largely in

the public domain. In December 2012, the Cabinet approved “participative models for rail-

connectivity and capacity augmented projects”, which allows private ownership of some railway

lines. Indian Railways is undertaking the construction of dedicated freight lines along the country’s

Eastern and Western corridors; this would increase productivity and reduce transportation cost. A

special purpose vehicle has been set up for the same. Moreover, in March 2013, the Cabinet

approved the “Automobile Freight Train Operator Scheme” to encourage automobile transportation

through railways. Indian Railways has launched mobile ticketing services, which enable customers to

receive tickets on short message service (SMS). Additionally, it plans to upgrade its current systems

to support bookings of 7,200 tickets per minute compared with the current capacity of 2,000 tickets.

Increasing urbanisation coupled with rising incomes (both urban and rural) is driving growth in the

passenger segment. Growing industrialisation across country has increased freight traffic over the

last decade. Freight traffic is set to increase manifold, thanks to investments and private sector

participation. Metro rail projects are being envisaged across many cities over the next ten years. The

government has been investing heavily to upgrade railway infrastructure. Sector has been witnessing

increasing level of FDI participation over FY08–12. Cumulative FDI inflows from April 2000 – August

2013 stood at US $366.3 million. Government has increased the scope of PPP, to beyond providing

maintenance and other such supporting roles. Government is providing new lines, increasing the

rolling stock to build up capacity.

Indian Railways is a departmental undertaking of Government of India (GOI), which owns and

operates most of India's rail transport, overseen by the Ministry of Railways. It has a total route

network of about 64,600 kilometers (of which 29.98 per cent is double/multi-track) spread across

7,146 stations. Operates more than 19,000 trains every day. It has 239,321 wagons, 61,899 coaches,

and 9,549 locomotives. Indian Railway’s total assets at the end of FY12 amounted to US $53.8 billion.

Source: Ministry of Railways, Aranca Research


Source: Ministry of Railways, Aranca Research

Indian Railways revenues grew the fastest in three years to US $23.0 billion in FY13, a 10 per cent

year on year growth. The Railway Ministry estimates revenues to grow 15 per cent in 2014. Overall,

revenues are expected to expand at a CAGR of 12 per cent during FY07–14. Revenue growth has, in

fact, been strong over the years; during FY07–13, revenue expanded at a CAGR of 11 per cent For

FY14, the government has estimated revenues to expand at a CAGR of 17 per cent over FY12.

14,3

18,3 17,818,8

20,821,7

23

26,5

0

5

10

15

20

25

30

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14B

GROSS REVENUES TRENDS OVER THE YEARS(USD BILLION) Gross revenues trends over the

years(USD billion)

CAGR 12.1%


In the last seven years, revenues from the passenger segment have expanded at a CAGR of 11 per

cent. The FY14 Budget provides for a CAGR of 22 per cent in revenues over FY12 Freight segment’s

revenues have been on the rise; in FY13, revenues were up 27 per cent over last year, the highest

growth rate in the last five years.

Source: Ministry of Railways, Planning Commission, Aranca Research, Notes: F – Forecast, FY – Indian Financial Year

(April–March)

Key players in the market

3,84,9 4,8 4,9

5,6 5,9 5,9

9,1

11,5 11,312

13,314,1

15,8

0

2

4

6

8

10

12

14

16

18

FY07 FY08 FY09 FY10 FY11 FY12 FY13

Passenger Earnings Freight Earnings

EARNINGS COMPARISON (PASSENGER VS FREIGHT)

IN USD BILLION


Rail projects in India have typically been in the public sector domain. Private players were involved

in allied activities such as track laying and maintenance, maintenance of coaches and wagons,

construction of bridges, stations, signaling, and telecommunications works.

In December 2012, the Cabinet approved the new policy of “participative models for rail-connectivity

and capacity augmented projects”. The policy addressed private investors’ concerns, which included

ownership of the railway line and repayment of investment. This has led to renewed investor interest

in the rail sector. Since then, railway authorities have received various proposals from private

investors and have already given approval (can now acquire land and begin construction) for four

port connectivity projects, which would ease congestion. This is in line with the government’s 12th

Five-Year Plan. It intends to raise investments worth US $18 billion through PPP route. Areas

proposed for private investment during this period are likely to include elevated rail corridor in

Mumbai, some parts of dedicated freight corridor, freight terminals, re-development of stations, and

power generation/energy saving projects. Other measures taken/proposed include - Setting up of a

modern signaling equipment facility at Chandigarh through the PPP route Construction of new lines

– Bhupdeopur-Raigarh (Mand Colliery), Gevra Road-Pendara Road – and doubling of Palanpur -

Samakhiali section through the PPP route. The Railways Ministry has already proposed for the

development of 50 new stations in the PPP mode to improve and enhance rail infrastructure in the

country.

There is a rapid increase in demand for urban mass transportation systems in the country. Several

metro rail projects are in progress to improve connectivity within cities; the Delhi Metro has emerged

as an internationally acclaimed venture.

Indian Railway has attracted increasing investments from overseas through strategic alliances with

various countries over the last few years. Subsidiaries of foreign companies are being set up to cater

to the huge demand offered by Indian Railway.

Example of foreign company in railway: Delhi Metro Rail Electrification – Ph. III contract was awarded

to Siemens


Source: Siemens, July 2008

Passenger traffic went up by more than 15 times over FY1951–2012. Increasing incomes, both urban

and rural, has made rail travel affordable to a large number of Indians. Urban population in India

increased from 17 per cent of the total population in 1951 to 31 per cent in 2011; this has led to

increase in traffic between urban and rural areas in the country. Improvement of urban-rural

connectivity by rail has been another major contributor to passenger growth.

Investments expected in metro rail networks in India: US $42 billion by 2020. Amount invested so

far: US $16.7 billion.


PORTS AND AIRPORTS

Ports and airports increasing connectivity with inland transport networks is just one of many

challenges currently facing India’s ports, which have seen massive swells in the amount of goods

transported. Traffic is estimated to reach 877 million tons by 2011-12, and containerised cargo is

expected to grow at 15.5% (CAGR) over the next 7 years. India’s existing ports infrastructure is not

sufficient to handle the increased loads – cargo unloading at many ports is currently inadequate,

even where ports have already been modernised. The National Maritime Development Programme

includes 276 projects, with a required investment of about US $15 billion over the next ten years,

with private investment targeted at around US $8 billion. In addition to improving road and rail

connections, projects related to port development (construction of jetties, berths, container

terminals, deepening of channels to improve draft, etc.), will provide major opportunities for

engineering and construction companies.

Recent deregulation of the sector now permits 100% FDI and an independent tariff regulatory

authority has been set up to facilitate projects at major ports.

Air traffic has increased rapidly in recent years, although this slowed in 2007. While a number of

Indian airlines have faced challenging market conditions in 2008 and the rate of growth is likely to

be significantly less than initially projected, Indians are still flying in much greater numbers. Estimates

made in 2007 by the Indian Government’s Committee on Infrastructure suggest that passenger traffic

will grow at a CAGR of over 15% in the next 5 years. Indian manufacturers are also looking to the

skies – the same source anticipates that cargo traffic will grow at over 20% per annum over the next

five years.

Even if these estimates prove somewhat optimistic, the growth already achieved has put tremendous

pressure on airport infrastructure. In order to cope with additional demand, private sector

participation is expected to play a key role. The private sector has already stepped up to the challenge

of airport infrastructure development in several cases, with private participation in recent years at


Delhi, Mumbai, Hyderabad, Cochin and Bangalore supplementing the efforts of the Airports

Authority of India.

The Government has established Airport Economic Regulatory Authority (AERA) to promote

efficiency, competitive pricing and a customer-focused service. State governments are also getting

involved and looking to facilitate the development of new airports. The total investment on new

airports has been proposed at about US $14 billion by 2014. Greenfield airport projects are planned

in resort destinations and emerging metros such as Goa, Pune, Navi Mumbai, Greater Noida and

Kannur. Further, 35 non-metro airports are proposed for development. Prequalification of bidders

for development of Amritsar and Udaipur airport has already been completed, and bids for 10 non-

metro airports are scheduled to be invited shortly.

As the density of airports increases in various regions, increased competition is likely to bring new

issues into focus, such as corporate performance management. Airports will look to diversify their

revenue sources through the development of city side infrastructure. Airlines will also be looking for

new technology solutions to maximize revenues and reduce costs. MRO (Maintenance, Repair and

Overhaul) facilities could therefore also present new business opportunities.

The need for improved aviation infrastructure extends beyond the construction of new airports –

existing metro airports also require significant modernization and upgrading. EPC (Engineering

Procurement and Construction) contractors are expected to be sought for Chennai and Kolkata

airports in the immediate future.


POTENTIAL FOR CONSTRUCTION EQUIPMENT IN INDIA

Procurement of major equipment is important to capital project effectiveness. Equipment represents

a significant investment. On average, at least 20 percent of a capital project’s total cost is made up

of procured equipment. Reduction of equipment costs reduce project costs and provide the

competitive advantage. Timely delivery, equipment quality are important factors needed to achieve

schedule goals.

Over the last decade, capital equipment procurement has undergone rapid and profound changes.

The current increase in project activity in India is putting upward pressure on pricing and delivery

times. The market has witnessed overstretched vendors, a decline in skill levels and a limited number

of contractors with the capability to transport and install heavy pieces of equipment. Ultimately, this

leads to a decline in capital project cost performance as well as schedule and operability results.

These are some of the factors surrounding capital equipment market in India critical to infrastructure

development. These factors also elevate the market potential for foreign players, in particular

Flemish companies who have very strong hold in the capital equipment sector. Taking into account

the demand and supply dynamics, Flemish companies who are willing to do business in India are in

a very good position to cater to the demand of capital equipment.

India's growth story has witnessed many cyclical changes across a wide range of industries. Volatility

in real estate and related industries, such as construction equipment, has resulted in demand supply

gaps that hamper analysis of the sector and its trends.

Demand for construction equipment is a reflection of broader macroeconomic trends such as

interest rates, infrastructure investment and liquidity, which themselves indicate the health of the

overall economy. This demand equipment is expected to grow in line with the expansion of real

estate development from India's key urban centers into tier-2 and tier-3 cities.

India's construction equipment market, meanwhile, outpaced global growth trends with the market

estimated at INR 208 billion at the end of 2012. Revenue is expected to reach INR 461 billion by 2016,

CAGR of 20 per cent.


Figure 1: Overview of the construction equipment sector

Source: Datamonitor, BMI

Figure 2: Construction equipment market share by segment, 2012

Source: Datamonitor, BMI

The sector is made up of five main segments: earthmoving equipment, road construction equipment,

concrete equipment, material handling equipment, and material processing equipment.

Earthmoving equipment and road construction equipment account for close to 70 per cent of India's

construction equipment market. Backhoe loaders, which comprise tractors, front shovel/bucket

208,4

252,3

308,2

377,1

461,5

0

50

100

150

200

250

300

350

400

450

500

2012 2013 2014 2015 2016

MARKET SIZE (INR BN)

Market Size (INR Bn)

Earth Moving68%

Material Processing

6%

Material Handling11%

Concrete15%

Market Share by Segment


backhoes and small backhoes, account for 65 per cent of the earthmoving equipment and road

construction segment.

Concrete equipment is the second largest segment with a market share of approximately 14 per cent.

It comprises asphalt finishers, transit mixers, concrete pumps and batching plants. Material handling

equipment and material processing equipment account for 10 per cent and 6 per cent of the market

respectively. Cranes are the largest category within the material handling equipment.

Major national and international players such as ECEL, JCB and Action Construction Equipment

dominate India's construction equipment market. The recent influx of foreign direct investment in

the construction sector saw many new entries to market, either in the form of joint ventures with

Indian companies or by foreign firms setting up their own local manufacturing facilities. Key players

operating across most market segments are JCB, Escorts, ACE and BEML.


PUBLIC PRIVATE PARTNERSHIPS IN INFRASTRUCTURE

Funding India’s wide ranging, US $500 billion programme of infrastructure expansion over a five year

period is likely to be beyond the means of total government funding, so policies have been designed

to facilitate private investment to the maximum level possible.

If the Indian Government’s targeted level of private sector involvement and investment are met

(approximately 30%), the quantum of funding required would be around US $150 billion – dwarfing

the investment achieved over the past decade by comparison. Achieving this level of investment is

ambitious. Several frameworks and plans are already in place, however, that may facilitate reaching

these goals.

The PPP (Private Public Partnership) /PFI (Private Finance Initiative) market in India is still at a

relatively early stage. However, over the past decade or so, there has been an increasing trend at the

central as well as state government level to use PPPs (Private Public Partnerships) for meeting critical

infrastructure gaps. The results have been quite encouraging.

Establishing a PPP (Private Public Partnership) is now considered to be the default option for major

infrastructure projects in sectors such as roads, railways, airports, ports and other transport

segments. First preference will be given to the PPP model, and only in cases where projects are

expected to fail to attract private sector interest will more traditional models be considered.

Most infrastructure sectors have an overall long term plan and programme that provides guidance

on the projects that are likely to come up for development. Key policy frameworks for procurement

of projects through PPPs have also been drafted. For example, the NHDP (National Highway

Development Programme) discussed earlier details a long term plan for the roads and highways

segment, with seven defined phases and largely clearly identified projects (along with project costs)

and an agreed timeframe. The roads and highways segment also has a generally successful PPP

model concession framework. The NHDP is mandated to a dedicated agency that also has clearly

earmarked source of funding coming in to support the programme. Almost all the other sectors have

similar plans.

Over the last 3-4 years, there has been a push towards expanding the scope of PPPs for the provision

of urban infrastructure through establishment of another government programme for urban renewal

across the country. This is likely to further increase the scope, scale and number of PPPs in the

country. Not surprisingly, international interest in Indian PPPs has soared in 2008, with over 50

international players showing interest in a variety of types of projects in the first three quarters of

the year. Local players are also increasing their interest. Until recently, only a very limited number of

large domestic players were fully conversant with PPP models and had the capability to deliver on

them. However, local developers and contractors are catching up fast and domestic capacity has

increased substantially in recent months. Engineering and construction companies looking to

participate in this burgeoning segment do face certain hurdles. The typical PPP project design and

preparation process is still largely technically-oriented, with limited appreciation of the overall

financial and commercial risk issues involved. Often information distortions in the market have led

to large variations in the bids/ offers received during the procurement process. Further, the

procurement process is often highly prescriptive, rather than participative. The emphasis is on


conforming to public sector requirements, which may not offer value for money and does not

encourage innovative solutions, rather than evolving the project configuration to be delivered over

the long-term in a partnership approach. And while the public sector is dictating the terms, it is quite

often not willing to shoulder concomitant risk. The current concession structure is highly asset

oriented, rather than focusing on service delivery. Private sector participants are often required to

assume considerable risk, including demand risk, and the apportionment of risk is in some cases quite

inefficient.

Financing for PPP/PFI projects can also be a key constraint, as long term financing instruments have

been in scarce supply. PPP projects have so far been largely financed domestically using plain vanilla

debt with relatively low gearing. Commercial banks are the major source of debt with generally short

tenure (being about 50% of concession period). At the current time, it is difficult to predict how the

financing situation will evolve over the short-term. Certainly, access to credit has become far more

restrictive on a global basis, however if India’s growth continues to outperform most other

economies, it could emerge as a preferred destination for investment.

India has become an attractive PPP market and its attractiveness is likely to increase in the future.

Contractors able to negotiate and partner with the relevant ministries should find excellent

opportunities, particularly companies with a longer term view.


TAX FOR ENGINEERING AND CONSTRUCTION COMPANIES

Engineering and construction companies looking to invest in India need to consider a variety of tax

issues. Overall tax rates can be relatively high, so careful tax planning is vital. Some of the relevant

taxes applicable to engineering and construction companies are listed below:

Transfer pricing regulations were introduced in India in 2001. Although transfer pricing regulations

are a relatively recent phenomenon, the authorities have taken an aggressive stance. There is no

advance pricing arrangement (APA) yet in India, so the implications of transfer pricing remain

somewhat uncertain. The Government’s strong focus on promoting infrastructure development also

extends to tax policy, with a number of policy measures and incentives now in place for the

construction of infrastructure facilities, including a numbers of tax holidays, although minimum

Alternate Tax (MAT) of 11.33% may be payable on book profits during this period. Relevant tax

holidays, their applicability, and the eligibility of each infrastructure sector are detailed in table

below:


STRUCTURAL CONSIDERATIONS FOR DEVELOPERS

Dividends paid by an Indian company are subject to a Dividend Distribution Tax (‘DDT’) of around

17%. In February 2008, the Finance Minister announced some relief whereby a dividend paid to a

parent company by its subsidiary would not be liable to DDT, subject to prescribed conditions. Earlier,

corporates had a lean structure with one company having many divisions catering to different

businesses. Following the recent change in DDT, many corporates may be considering restructuring

their corporate structure so that different business streams have separate Indian operating

companies with one common Indian parent. While such types of structuring may help the parent

company to unlock shareholder value and should impose any additional levy of DDT, it should be

noted that introducing a new corporate layer at the Indian level will bring the shares in the Indian

operating company within the Indian capital gains tax net.

Additionally, even if DDT is not due on dividend payments, there would be an up to 10% cash trap in

the Indian operating companies, as in accordance with Indian regulatory provisions, only 90% of a

company’s distributable reserves may be paid as dividends. Therefore, a construction company

working on multiple projects in India should consider all relevant factors bespoke to their

requirements before structuring their operations.

INTERNATIONAL TAX CONSIDERATIONS

Effective tax structuring into India is vital as this impacts on how attractive a project is to target

investors and has a direct influence on the net internal rate of return. It is therefore particularly

important that international investment opportunities are structured appropriately to take into

consideration tax, accounting, regulatory and legal aspects. We have outlined below some of the key

areas to consider:

ENTRY AND EXIT STRATEGY

Holding company location – Appropriate planning in respect of a holding company jurisdiction is

necessary to minimise Indian withholding tax and Indian capital gains on the sale of shares in Indian

companies. Financing – In order to introduce debt into India, there are various issues that need to

be considered such as the Indian External Commercial Borrowings (ECB) rules, withholding tax issues

on distributions out of India and the availability of a tax deduction for the distribution at the Indian

level.


HOLDING THE INVESTMENT

Permanent Establishments – One of the risks with managing investments in India is managing the

Indian permanent establishment position, where if the Indian tax authorities successfully argue that

there is an Indian permanent establishment of the foreign operations in India, then there may be

significant adverse tax implications. It is therefore important to carefully manage the operations

carried out at the Indian level. In practical terms in the engineering and construction industry,

activities generally take a long duration to complete, and hence PE clauses (especially fixed base and

service PE) come into play in this industry more often. Table below indicates common types of PEs

and their considerations.

CASH AND PROFITS REPATRIATION

Profit repatriation – There are various options on repatriating profits from the structure, such as

dividend distributions, share sale, capital reductions, etc., all with differing tax impacts.

ENGINEERING, PROCUREMENT & CONSTRUCTION (EPC) CONTRACTS: ON-SHORE VS OFF-SHORE

In the engineering and construction industry, the execution of projects is undertaken substantially

by way of an engineering, procurement and construction (EPC) contract. A typical EPC contract will

have the following scope of work in a single project:

Supply of equipment (off-shore and on-shore)

Installation/commissioning


Services (offshore and onshore)

Software/technology transfer (offshore and onshore)

Under a typical EPC contract, a non-resident contractor performs a multitude of activities. The scope

of work under an EPC contract would include both on-shore and off-shore activities. Taxability of

payments received by foreign companies under EPC contracts has become a matter of great debate

and litigation. On-shore supplies and services are normally taxable in India. Off-shore supply of goods

and services under a composite contract are something of a grey area. The Indian revenue authorities

often attempt to bring the entire EPC contract, including off-shore supplies and services, within the

range of taxes in India. The tax authorities may site a business connection in India, and also note the

presumed indivisibility of the EPC contracts.

Nonetheless, some recent landmark judicial rulings with regards to EPC contracts in India suggest

that the tax outcomes for each of the components of the contract must be determined

independently. These rulings have brought about a general principal that profit from off-shore

supplies would not be taxable in India, subject to the following conditions:

Principal to principal transaction

Title (i.e.: risk and ownership) in the off-shore supplies passed to the buyer on high seas

(outside India)

Sale consideration is received outside of India.

Sale is at arm’s length

Although the above rulings suggest that off-shore supply and services may not be taxed in India, the

tax liability depends on the specifics of each case. Further, the revenue authorities have not accepted

the above rulings and matter is pending before the higher judicial authority. Engineering and

construction companies should take care to structure contracts in a tax efficient manner, taking into

account the particulars of each subject.


MARKET CHALLENGES

Without doubt, there is huge opportunity in the Indian infrastructure space in the short and medium

terms at least. The recent ruling and regulations of the Indian Government, which have been evolving

very rapidly in recent years, continue to encourage the private sector in taking on a larger and more

diverse role – from being an infrastructure builder (under a publicly financed arrangement) to an

infrastructure developer (under PPP structures which include private finance).

These developments have led to a large number of infrastructure projects open up as many

opportunities for the private sector. Considering the FDI guidelines, these lucrative projects present

both an opportunity and a threat to local players. In many cases, foreign players are believed to have

greater technological expertise, deeper pockets and more extensive experience compared to

domestic companies. These advantages could mean overseas companies winning work at the

expense of local players, or partnering with them. Domestic engineering and construction companies

may therefore look at foreign entrants in the market as tough competitors – or as strong potential

partners.

If most of the forecasted projects go ahead as planned, there should be more than enough work for

everyone. Wharton Business School’s 2007 analysis of India’s construction boom pointed out that

the proposed US $50 billion infrastructure spend per year in India is nearly two and half times the

current turnover of the entire existing domestic construction industry (US $15 billion and growing

fast) and that many of the major engineering and construction companies have massive order

backlogs. Wharton also flagged talent shortages as an issue in key skilled trades such as fitting,

welding, masonry and plumbing – so drawing on the talent pool of foreign partners may help in

supplementing and training local tradesmen. India is also facing shortages of construction equipment

and machinery providing an opportunity to Flemish companies to come cater to the market

requirement.

Domestic production of equipment and machinery is ramping up fast, but in the short term, a foreign

partner may be able to help fill in any gaps. There are many factors that influence the role of the

local players vis-à-vis foreign players – for example, the criteria used for the selection of developers

is an important influencer on what role the foreign players will take.

Risk sharing on a PPP project also needs to be carefully considered. The revenues of most

infrastructure projects in India will be denominated in the local currency. Foreign players will need

to consider the currency and tax issues already mentioned in some detail, particularly on a PPP

project where significant private investment is also sought.

International engineering procurement and constructions contractors, including Toyo Engineering,

Jacobs, H&G, Uhde, Tecnimont and Aker Kvaerner are already leading players in India. At the same

time, many Indian companies e.g. Larsen and Toubro, Gammon, Bharat Heavy Electrical Limited

(‘BHEL’), Engineers India Ltd and Thermax have either scaled up their skill sets or extended their

operations to overseas projects.

India has a very well established infrastructure developer market. Local firms have evolved in recent

times into full-fledged national players (and in some cases international players). In certain sectors,


such as highways, power and water, the local firms also have significantly progressed on the

technological front. Some of the India based companies such as L&T, Punj Lloyd, Reliance, GMR,

Suzlon, Tata Power, etc. are very active in the international markets and thus, can no more be

deemed ‘local’ engineering and construction companies. Indeed, they are global organisations based

out of India. These and other large firms clearly look at foreign players as both partners and

competitors. However, smaller and medium sized infrastructure construction companies and

developers (such as KMC, Nagarjuna, IVRCL, Gammon, etc.) are often happy to partner with foreign

players without necessarily considering them as competitors. The recent guidelines issued by the

Indian Government for the selection of PPP developers have also led to a slightly distorted behaviour

in the local marketplace. The guidelines favour larger players, even when the project investments

and execution can be easily carried out by mid-sized companies. This has led to situations where

many of the small/medium-sized local players are looking at partnering with the foreign players

primarily for the purpose of getting qualified and winning the job, rather than to actually bring in

investment or expertise. It is expected that such behaviour will soon change as the guidelines

become more reflective of market dynamics and mid-sized Indian companies mature.

Flemish players looking to enter into the Indian market place and team with local players need to

evaluate carefully the cost competitiveness of their prospective participation. India has witnessed

huge interest from a number of foreign infrastructure companies in the past, but not many have

really been able to offer a cost competitive proposal. Since India has evolved its own model of cost

competitive delivery in many sectors (for example, in telecoms), local players have an incentive to

work with foreign companies only if the partnering offers a competitive edge over other bidders.

There have been few such success stories so far where the foreign player has offered a particularly

cost competitive product or service. For instance, we have seen successful entry of foreign players

(such as in the port sector), foreign companies with technological edge or management advantages

or expanded reach into international markets to supplement the capabilities of local partners.

Source: PRICEWATERHOUSE COOPERS, Nov 2008, Infrastructure in India, ERNST AND YOUNG, 2012, Accelerating Private

Public Partnerships in India, DELOITTE, 2009, a background paper on Infrastructure in Maharashtra


SUCCESS STORIES OF BELGIAN COMPANIES IN INDIAN INFRASTRUCTURE

TRAFFICON (NOW KNOWN AS FLIR)

Traficon, the world’s leading video detection specialist, was awarded a contract for delivering over

700 vehicle presence detectors for intelligent traffic control in the cities of Mumbai and Chennai. For

Traficon, this major contract was an important strategic breakthrough into this fast growing Indian

market.

Traffic management has been a challenge in India for some time – and it’s becoming more difficult

with every passing day. In addition to increasing traffic congestion and complexity, the urban areas

are also faced with other transport related problems such as increasing CO2 emissions and depleting

fuel resources, which adversely impact the well-being of any major city. But cities like Mumbai and

Chennai are taking up the challenge. Next to building new roads, they are investing heavily in

advanced technologies and intelligent solutions that optimize traffic management. And this is where

Traficon’s field proven technology comes in. It’s being utilized as part of Area Traffic Control (ATC)

project to ensure the traffic flows safer and smoother.

In Mumbai, nearly 700 vehicle presence detectors - both TrafiCam and TrafiCam x-stream – have

been installed at various busy road junctions controlled by traffic signals. By detecting both waiting

and approaching vehicles, these intelligent 'all-in-one' cameras will be used for optimization of traffic

signal timings and to cut down waiting time at traffic lights. TrafiCam x-stream being an IP-

addressable device also provides MPEG- 4 colour streaming video in the control center for general

intersection surveillance.

The use of these above ground detectors forms part of the Mumbai City Mobility Management

project. This project includes the implementation of an Adaptive Traffic Control System (ATCS),

provided and coordinated by Telvent. Based on the information coming from the sensors or

surveillance devices, this state of the art system alters traffic signal cycles in real time to respond to

changing traffic conditions. ATCS is expected to cut down waiting time at traffic signals by almost

half.

For the city of Chennai, the decision to use Traficon’s integrated video sensor technology was taken

after a competitive bidding around mid-2010. Today up to 100 TrafiCam sensors are installed and

operational to detect waiting vehicles at multiple intersections across the city.

Source: Road Traffic Technology (Online Magazine), March 24, 2011, Traficon awarded major smart intersection control

contract in India.

EURO STATION AND EURO IMMOSTAR

Indian Railways have signed an agreement with Belgium to modernise and make some of the

country's railway stations world class. Indian and Belgian railways will benefit with mutual


consultation and exchange of information services on development and modernisation of railway

stations based on the Memorandum of Understanding signed between the Belgian Deputy Prime

Minister Didier Reynders, who is also Belgian Minister for Foreign Affairs, Foreign Trade and

European Affairs and Indian Government. Ties between the countries would strengthen with sharing

of design and current practices in railway infrastructure and deputation of experts in areas of mutual

interest. The countries have decided to form steering and working groups of experts to determine

and define scope and modalities of activities and projects.

Belgian government owned companies such as Euro Station and Euro Immostar have vast experience

in developing stations. These companies have extensive expertise in transforming historical railway

stations into the modern international terminals and the experience gained by them can be emulated

in India after suitable adaptation to Indian conditions.

Several Belgian or Belgium-based companies are already present in India and their activities ranged

from fastening and coating of rails to delivery of parts for train construction and software for safety

and network management.

A two-member expert team from Belgium has expressed interest in further developing the Nagpur

railway station into a world-class terminal. After visiting Nagpur station, the team from Euro Station

has agreed to draft a master plan to be prepared within six months.

The station building which has completed 83 years is a heritage structure and utmost care will be

taken to develop it without damaging its original fabric. Nagpur Railway station part of the Central

Railway which connects north-south and east-west, is the pilot project to start with. Things will begin

with master planning, followed by technical feasibility. Within next 8-10 months time all the ground

work will be done by steering and working groups of experts to determine and define scope and

modalities of activities and projects.

Source: IBN Live, August 03, 2012,’Belgium to help India modernise railway stations. NDTV, May 25, 2013, Experts from

Belgium to develop Nagpur railway station into world class terminal.

NEY AND POULISSEN

A proposed elevated corridor to Navi Mumbai from the Eastern Express Highway near Ghatkopar

took off from the drawing board with the MMRDA signing a deal with a foreign firm to work out the

cost and concept.

The 6.48 km corridor will originate near Ghatkopar on the Eastern Express Highway and culminate

on the Palm Beach Road extension near Koparkhairane.

An MoU was signed with Belgium-based consultancy firm, Ney & Poulissen, engineer and contractors

for this project. The firm is expected to suggest the design, work out the cost and also prepare the

bid documents for the project.


The consultancy will cost about 1 million Euros, half of which is being borne by the Belgium

government.

Of the 6.48 km corridor, about 2.33 km will be the bridge above the creek. The entire corridor will

be on stilts as it will pass over mangroves. The consultant will decide if it will have four or six lanes.

The MoU includes consultancy for a sea-link between Rewas and Karanja. The proposed eight km

road, including a bridge over the Rewas creek, will shrink travel time between Mumbai and Alibaug.

As of now, one has to take the road via Khopoli-Pen-Poinad, a distance of 70 km, or take the ferry

service, which stops during the monsoons.

Source: Projects Today, 28 Nov 2013, MMRDA signs MoU with Ney Poulissen

TPF

In 2006, TPF acquired a majority stake in S.N. Bhobe and Associates Pvt. Ltd. www.snbapl.com,

headquartered in Mumbai, allowing the Indian company to offer engineering and consulting services

with a global perspective.

At the end of 2011, TPF completed the acquisition of two sister companies in Kolkata: C.E. Testing

Company Pvt. Ltd. www.cetestindia.com and Survtech Pvt. Ltd. www.survtech.in

Thanks to those additional acquisitions, TPF targets INR 1 billion as Indian turnover with 1,000

employees by the end of Indian fiscal year 2013-14.

TPF is active in the field of airports, buildings, hospitals, bridges, flyovers, roads, viaducts, motorways,

expressways, tunnels, energy efficiency, renewable energies, industrial plants, water and waste

water plants, utilities. The clients include not only domestic and international private sector

companies but also public sector entities in addition to a large number of government developments.

Among the latest projected awarded to TPFs Indian sub subsidiaries, notable projects would include

the execution of the Bangalore metro stations, a large architectural projects like the Rajasthan

Bhavan and the 400 km+ detailed project report (DPR) for highways for the Maharashtra

government.

Source: Wallonia Foreign Trade & Investment Agency, 2006, Success Stories in India

http://www.snbapl.com/

http://www.cetestindia.com/

http://www.survtech.in/


PORT OF ANTWERP AND ESSAR

Essar Ports recently formed a strategic alliance with Port of Antwerp International (PAI), the

international investment arm of Belgium's Antwerp Port Authority. PAI has picked up a 4 per cent

stake in Essar Ports for US $31.3 million.

As part of this partnership, Essar Ports, the country's second largest private sector port and Terminals

Company, will look at building a port city at its harbour at Hazira in Gujarat. The joint venture will

also help the company to increase trade volumes by attracting cargo traffic from Antwerp, currently

landing at other Indian ports, at concessional rates.

This partnership with Europe's second largest port will promote growth of traffic between Port of

Antwerp and ports of Essar and help Essar in developing world class port facilities with a focus on

quality, productivity and environment.

The Antwerp Port Authority and Essar Ports will collaborate in the areas of training and consultancy

services, port planning, traffic flow, quality and productivity improvement. The port city planned will

be along the lines of the one at Antwerp, where several industrial units surround the port.

According to Essar, most of the proceeds from the stake sale will be used to reduce debt. PAI is

picking up the stake in the form of global depositary receipts. Indian regulations do not allow Essar

Ports to raise equity till the promoters bring down their stake to 75 per cent or below. Once that

happens, the global depositary receipts will be converted to equity shares. Currently, the promoters

hold around 84 per cent in the firm.

PAI will also play a role in the management of the firm as well. Jan Adam, chief financial officer of the

Port of Antwerp, will be appointed as a non-executive director on the board of Essar Ports.

Source: Essar, July 09, 2012,Essar steams ahead

JOINT INFRASTRCUTURE FUND WITH IL&FS

Belgium has floated the idea of its sovereign wealth fund Federal Holding Company jointly with

India's Infrastructure Leasing and Financial Services (IL&FS), to create a fund that will invest in

infrastructure projects as well as in listed and privately held companies.

Belgium’s deputy Prime Minister Didier Reynders said an agreement to set up such a fund was signed

during his meeting with commerce minister Anand Sharma in New Delhi. However, he declined to

disclose the corpus of the proposed fund, or when it will be operational.

The Federal Holding Company holds the stakes of the Belgian government in a host of firms across

sectors and borders including the French banking major BNP Paribas. Belgium already has such tie-

ups with local funds in all the other BRICS countries for a decade.


The goal is to work together to develop infrastructure in India, to develop some new firms in different

fields. Belgium is India's second biggest trading partner in the 27-member EU. The Belgian

Government is now waiting for some proposals, what kind of infrastructure projects are on the table

and then they will see with the new fund on both sides, what are the possible projects to support.

Nevertheless, FTA between India and EU will make it easier to operationalise the fund.

Source: Infrawindow News Bureau, Nov 29, 2013, not waiting for Indo-EU FTA India, Belgium to jointly set up

infrastructure fund.


MAJOR INDIAN PLAYERS IN INFRASTRUCTURE SECTOR

GMR GROUP

Website – www.gmrgroup.in | Business – Construction

Corporate Office – Bangalore, Karnataka | Establishment – 1978

One of the fastest growing construction company in India having implemented many project

successfully across India as well as abroad. They focus mainly on Highways, Airports, Urban

Infrastructure sectors and Energy.

LANCO INFRATECH LIMITED

Website – www.lancogroup.com | Business – Construction

Corporate Office – New Delhi, India | Establishment – 1986

One of the best construction companies in India working innovatively to achieve quality and

excellence. They have a foothold in the sector of Procurement, Construction (EPC), Engineering,

Natural Resources, Infrastructure and Power.

MAN INFRACONSTRUCTION LIMITED

Website – www.maninfra.com | Business – Construction

Corporate Office – Mumbai, Maharashtra | Establishment – 1964

One of the leading company having expertise in Industrial Constructions, Commercial & Institutional

Constructions, Road constructions, Residential Constructions and Port Infrastructure.

SIMPLEX INFRASTRUCTURES LIMITED

Corporate Office – Kolkata, West Bengal | Business – Construction

Website – www.simplexinfrastructures.com | Establishment – 1924

Simplex is among the top ten construction companies in India providing solutions in construction and

infrastructure sector and was the first to introduce driven cast-in-situ concrete piling in India and

South East Asia.


IVRCL LIMITED

Website -www.ivrcl.com | Business – Construction & Engineering

Corporate Office – Hyderabad, Andhra Pradesh | Establishment – 1987

IVRCL tops the list of top construction companies in India. IVRCL has expertise in water segment,

industrial structures, buildings, flyovers, bridges, real estate, highways, power transmission, roads,

power transmission, railways, real estate & water treatment plants. They have also set-up sea water

desalination plant.

HINDUSTAN CONSTRUCTION CO. LIMITED

Website -www.hccindia.com | Business – Real estate development, Construction & Engineering

Corporate Office – Mumbai, Maharashtra | Establishment -1926

HCC is a major provider of construction and engineering services. HCC has developed some of the

significant projects which includes Lavasa which is a planned hill city near Pune and nuclear power

generation plants.

RAMKY INFRASTRUCTURE LIMITED

Website -www.ramkyinfrastructure.com | Business – Real estate development & Construction


Ramky Infra is a construction company having done many infrastructure and construction projects in

different sectors which includes the Railways, Irrigation and Roads. Company has five zonal offices in

India and an office in UAE to handle international projects.

IL&FS ENGINEERING AND CONSTRUCTION COMPANY LIMITED

Website -www.ilfsengg.com | Business – Construction & Engineering


One of the leading infrastructure development company working in various segments which includes

Thermal and Hydel Power, Buildings and Industrial Structures, Roads and Irrigation and with their

innovative approach company is trying to extend their business in new segments.


GAMMON INDIA

Website -www.gammonindia.com | Business – Civil Engineering & Construction

Corporate Office – Mumbai, Maharashtra | Establishment – 1922

One of the best civil engineering and construction company in India. Some of the toughest projects

executed by company includes Gateway of India and fast breeder reactor. The companies core

competencies comprises of transmission lines, infrastructure management and power sector.


NODAL AGENCIES IN MAHARASHTRA

Maharashtra is the third largest state in the country and the second largest in population after Uttar

Pradesh. Maharashtra is one of the prosperous states of the country and houses some of the largest

businesses and Financial Institutes in India and holds many records for its contribution in the nation’s

economic development including:

• 18 % of fixed capital investment

• 20 % of value of production

• 49 % of total tax collection

• 13 % of total factory employment

Mumbai is the capital city which plays the dual role of being both the financial and the cinematic hub

of the country. Mumbai is the economic hub of most of the financial and business activities of the

country. The Island city contributes no less than 60% of customs duty collections, 40% of income tax

collections and 20% of central excise tax collections of India. Maharashtra has thirty five revenue

districts, which are grouped into six divisions: Aurangabad Division, Amravati Division, Konkan

Division, Nagpur Division, Nasik Division and Pune Division. These are official revenue divisions of

government of Maharashtra. Geographically, historically and according to political sentiments,

Maharashtra has five main regions viz Vidarbha or Berar (Nagpur and Amravati divisions),

Marathwada (Aurangabad Division), Khandesh and Northern Maharashtra (Nasik Division), Desh or

Western Maharashtra (Pune Division), and Konkan (Konkan Division).

In contrast to the agrarian economy that characterises India, Maharashtra stands out, with the

highest level of urbanisation of all Indian states.

The State of Maharashtra is a major contributor to the nation’s economy accounting for almost 21 %

of the industrial output, 13 % of the national GDP, 13.7% of total factory employment. Mumbai, the


state capital is the headquarters of many of the large business establishments and financial

institutions.

The state industrial growth rate has remained at around 10 % over the past few years and efforts are

required to push this growth rate by creating an efficient infrastructure for facilitating sustained

industrial production. The State’s average annual GSDP (Gross state domestic product) for the 10th

five year plan has been around 9%. Although Maharashtra is a highly industrialised state of India,

agriculture continues to be the main occupation of the people. About 61% of the people directly or

indirectly depend on agriculture and allied activities for their livelihood. The average annual GSDP

growth of agriculture and allied activities sector for the state in the 10th five year plan from 2002 to

2007 has been around 3%, which is less than the growth of 4% achieved in the 9th five year plan. The

slowdown in the state agriculture output is acting as a bottleneck for the overall economic growth

of the State. Maharashtra is rated as one of the most preferred investment destination in the

country. Though Maharashtra receives a higher number of investment proposals, the state lags

behind Gujarat in terms of the actual implementation of such proposals due to infrastructural

deficiencies and lack of measures to facilitate smoother project implementation.

The Human Development Index (HDI) is the normalized measure of life expectancy, literacy,

education, standard of living, and GDP per capita of a region. As per the National Human

Development Report 2001 by Planning Commission, Maharashtra scores 0.523 as on 2001, improving

its score of 0.363 of 1981. However during the past two decades, Maharashtra’s ranking in the State

HDI index has fallen one place below to that of fourth in the index ranking.

MUMBAI METROPOLITAN REGION DEVELOPMENT AUTHORITY (MMRDA)

Website: www.mmrda.maharashtra.gov.in

The Mumbai Metropolitan Region Development Authority (MMRDA) was established in accordance

with the Mumbai Metropolitan Development Act, 1974, on 26th January, 1975.

Since its inception, MMRDA is engaged in long term planning, promotion of new growth centers,

implementation of strategic projects and financing infrastructure development. The Regional Plan

provides for a strategic frame work of Mumbai Metropolitan Region's sustainable growth. The object

behind establishing MMRDA was to make Mumbai Metropolitan Region a destination for economic

activity by promoting infrastructure development and improving the quality of life.

The MMRDA prepares plans, formulates policies and programs, implements projects and helps in

directing investments in the Region.

The broad responsibilities of the Mumbai Metropolitan Region Development Authority includes:

Preparation of Regional Development Plans

Providing financial assistance for significant regional projects

Providing help to local authorities and their infrastructure projects

Coordinating execution of projects and/or schemes in Mumbai Metropolitan Region

http://www.mmrda.maharashtra.gov.in/


Restricting any activity that could adversely affect appropriate development of Mumbai

Metropolitan Region

In particular, it conceives, promotes and monitors the key projects for developing new growth

centres and brings about improvement in sectors like transport, housing, water supply and

environment in the Region.

E-Tendering Link: http://etendermmrda.maharashtra.gov.in/login

Government of Maharashtra has issued a Government Resolution (GR) dated 6th August 2010,

mandating the implementation of E-Tendering solution for processing of tenders above the value of

INR 5 million the same has been revised to INR 1 million on 16th January, 2013. Accordingly, MMRDA

has decided to implement the E-Tendering solution which will provide the following benefits:

Contractors would benefit from a fair, open and secure tendering process.

The process of E-Tendering is not dependent on physical presence of bidder it enables the

contractors to bid from anywhere Office, home etc.

Information on all the tenders is available to the contractors as well as to MMRDA divisions at one

place.

Details pertaining to projects being implemented by MMRDA - http://202.54.119.40/projects.htm

CITY AND INDUSTRIAL DEVELOPMENT CORPORATION OF MAHARASHTRA LTD (CIDCO)

Website: www.cidco.maharashtra.gov.in

City and Industrial Development Corporation of Maharashtra Ltd (CIDCO), is a company wholly

owned by the Govt. Of Maharashtra and was incorporated on 17th March 1970, with the specific aim

of Mumbai city and at the same time creating a new planned, self-sufficient and sustainable city on

the mainland across Thane creek adjoining Mumbai. What began as a mission to Mumbai ended up

in the creation of one of the largest planned city known today and elevated CIDCO into the position

of India’s premier town planning agency.

With a wide spectrum of activities, CIDCO is a multi-faceted and multi-disciplinary organization

having 1,750 employees, which includes planners, architects, engineers and other professionals.

Since its inception, CIDCO has diversified its working spectrum to accommodate new activities, even

though its primary attention is still concentrated in overlooking the constant development of Navi

Mumbai. The multidimensional activities undertaken today by CIDCO can be classified under these

three broad concepts:

• Planning and Development of New Towns

• Consultancy

• Project Management and Designing.

http://etendermmrda.maharashtra.gov.in/login

http://202.54.119.40/projects.htm

http://www.cidco.maharashtra.gov.in/


The Concept of New Towns has evolved manifolds under the competent expertise of CIDCO. CIDCO

is designated Special Planning Authority by Government of Maharashtra for new towns to fulfill the

following objectives:

Reduction of population overcrowding in core cities

Absorption of emigrants and preventing the emigration of present population by providing

better conditions and new opportunities

Setting the industrial pace of the State with the help of balanced urban development

Provision of excellent socio-economic facilities, thereby improving the quality of life

E-Tendering Link: https://cidco.maharashtra.etenders.in/common/home.asp

Details pertaining to projects being implemented by CIDCO –

www.cidco.maharashtra.gov.in/MP_Costal_Road.aspx

Navi Mumbai International Airport (NMIA)

http://www.cidco.maharashtra.gov.in/NMIA_AbouttheProjects.aspx

Navi Mumbai Metro (NMM)

http://www.cidco.maharashtra.gov.in/NMM_Introduction.aspx

https://cidco.maharashtra.etenders.in/common/home.asp

http://www.cidco.maharashtra.gov.in/MP_Costal_Road.aspx

http://www.cidco.maharashtra.gov.in/NMIA_AbouttheProjects.aspx

http://www.cidco.maharashtra.gov.in/NMM_Introduction.aspx


ROAD AHEAD

Although it may not always be easy to navigate the plethora of views, opinions and perceptions

expressed by various local stakeholders, a vast opportunity exists for foreign contracting companies

looking to invest in Indian infrastructure. Already, a number of contractors from Europe, Australia,

China, Malaysia and Korea have made their presence felt in India. Further, many engineering and

construction companies, particularly from Japan, Spain, France and UK is also now aggressively

looking out for opportunities to enter India for business.

Overall, the opportunities to develop a significant business in India are extremely promising for

engineering and construction companies, if they have carefully selected strong local partners,

structured contracts sensibly to maximise tax benefits where appropriate and taken a long-term,

sustainable perspective. Foreign companies who do not acknowledge the opportunity in good time

may miss out on a critical opportunity to establish a long-term presence in one of the world’s largest

growth markets.


FLANDERS INVESTMENT AND TRADE, MUMBAI AND MMRDA MOU

During the 2013 Princess Mission, Flanders Investment and Trade – Mumbai and MMRDA (Mumbai

Metropolitan Region Development Authority) have entered into a Memorandum of Understanding.

The purpose of the MoU is to promote exchange of new technologies and knowledge between

MMRDA and Flemish companies and organizations involved in the urban infrastructure and urban

planning, engineering development and management. Interested Flemish companies in the

infrastructure development space may contact Flanders Investment and Trade – Mumbai office for

direct assistance with regards to MMRDA and any other query pertaining to infrastructure in India.

As a part of the MoU both parties (here Flanders Investment and Trade, Mumbai and MMRDA) have

agreed to assist each other in order to promote and boost infrastructure in India. Following are the

points agreed by both parties:

From Flanders Investment and Trade Mumbai : Assist Flemish companies in their prospection efforts

in India and by offering integrated support to Indian companies in setting up or expanding their

activities and investments in Flanders, Belgium.

From MMRDA : Will offer long term planning , promotion of new growth centers, implementation of

strategic projects and financing infrastructure development in the Mumbai metropolitan region.

MMRDA will assist in preparation of plans, formulating policies and programs, implements projects

and helps in directing investment in the region.

Support that will be provided by Flanders Investment and Trade – Mumbai as a part of the MoU:

Figuring out business opportunities in Mumbai metropolitan region and Flanders for

companies from both sides.

Assisting Flemish companies’ individual tailor made business strategies in order to expand

reach out in India market.

Co-organizing group events in Mumbai metropolitan region such as seminars, trade missions.

Assist MMRDA with suppliers for technology or products or services, co-operation partners

or investment opportunities in Flanders.

Co-financing of feasibility studies, based on integral approach, including a complete

integration of all infrastructure requirement in the landscape and urban space, with a focus

on economic, technical, environmental, social and financial aspects.

Support that will be provided by MMRDA as a part of the MoU:

Share information about plans and projects undertaken or proposed by MMRDA.

Share various reports and studies conducted by MMRDA from time to time.

Facilitating information from other governmental agencies working in Mumbai metropolitan

region related to urban planning and infrastructure.

MoU’s field of work includes: Urban planning and infrastructure, planning and engineering,

development and management, waste water treatment, including processing of water, solid water

treatment and contaminated soil management.


At Flanders Investment and Trade, we promote sustainable international business, in the interest of

both Flanders based companies and overseas enterprises.

Be it any sector, FIT will help you establish contact with the Flemish companies. This includes not

only products or services, but also various types of business relationships, from joint ventures to

technology transfers.

At another level Flanders Investment and Trade enhances Flanders’ position as the gateway to

Europe for inward investors. The agency identifies, informs, advises and supports overseas

enterprises by establishing production and research facilities, contact centers, headquarters, logistics

operations and the like in Flanders, the northern region of Belgium.

Services offered by Flanders Investment and Trade – Mumbai

Market Studies

Sector focused mission

B2B Program

Financial Support

Market Feasibility Studies

Market Prospection


INDUSTRY CONTACTS

WEST INDIA CONTACTS

LARSEN AND TOUBRO

ADDRESS: Ballard Estate, P.O. Box 278, Mumbai 400 001, India

TELEPHONE: +91 22 67525656/67525729

FAX: +91 22 6705 1628

EMAIL: [email protected] , [email protected]

WEBSITE: www.lntenc.com

CONTACT PERSON: Mr. AM Naik

DESIGNATION: Chairman & Managing Director

DETAILS: Larsen and Toubro one of the prominent names in the engineering and

construction industry, they cater to segments such as building materials;

construction and infrastructure; engineering consultancy and projects;

construction and infrastructure roads; ICT; machinery and equipment and

real estate.

UDHE ENGINEERINGS

ADDRESS: Uhde House, LBS Marg, Vikhroli(W), Mumbai 400 083, India

TELEPHONE: +91 22 6796-8004

MOBILE: +91 98200 90937

FAX: +91 22 2579 2207

EMAIL: [email protected]

WEBSITE: www.uhdeindia.com

CONTACT PERSON: Dr I. Dayasagar

DESIGNATION: Executive Director

DETAILS: A premier Indian engineering company for EPCM / EPC-LSTK

implementation of Chemical and Industrial Plants.

KEC INTERNATIONAL LIMITED

ADDRESS: RPG House, 463 Annie Besant Road, Worli, Mumbai - 400030, India

TELEPHONE: +91 22 66670227

MOBILE: +91 9833292661


WEBSITE: www.kecrpg.com

CONTACT PERSON: Mr. Ramesh Chandak

DESIGNATION: Chief Executive Officer

DETAILS: KEC International Limited, the flagship Company of RPG Group is a global

infrastructure Engineering, Procurement and Construction (EPC) major.

The Company has powered infrastructure development in over 45

countries across South Asia, Middle East and North Africa (MENA), rest

of Africa, Central Asia and Americas. While Power Transmission is the



http://www.lntenc.com/


http://www.uhdeindia.com/


http://www.kecrpg.com/


largest business vertical, the Company also has a growing presence

across Power Systems, Cables, Railways, Telecom and Water.

HINDUSTAN CONSTRUCTION COMPANY

ADDRESS: Hincon House, LBS Marg, Vikhroli (W), Mumbai - 400083

TELEPHONE: +91 22 2575 1000

MOBILE: +91 98204 55830

FAX: +91 22 25775732


WEBSITE: www.hccindia.com

CONTACT PERSON: Mr. Ajit Pradhan

DESIGNATION: VP Strategy Development

DETAILS: HCC Group delivers world-class engineering and construction services.

They are pioneers in the Indian infrastructure industry. Continuing their

legacy of innovation, they have achieved new milestones with every

endeavour. HCC is responsible for landmark projects that have defined

the country's progress. Surging ahead with presence in multiple sectors

and involvement in revolutionary projects, they are creating

opportunities for everyone.

VOLTAS

ADDRESS: Voltas House `A`, Dr Babasaheb Ambedkar Road, Chinchpokli 400033

Mumbai

TELEPHONE: +91 22 66656580 / 66656666


WEBSITE: www.voltas.com

CONTACT PERSON: Mr. Anindya Ganguly

DESIGNATION: Vice President – Construction Equipment

DETAILS: Voltas is India's largest air conditioning company, and one of the world's

premier engineering solutions providers and project specialists.

Founded in India in 1954, Voltas Limited offers engineering solutions for

a wide spectrum of industries in areas such as heating, ventilation and

air conditioning, refrigeration, electro-mechanical projects, textile

machinery, mining and construction equipment, water management and

treatment, cold chain solutions, building management systems, and

indoor air quality.

TATA CONSULTING ENGINEERS

ADDRESS: Matulya Centre A, 249 Senapati Bapat Marg, Lower Parel (West),

Mumbai 400 013, India

TELEPHONE: +91 22 6662 4743 / 61148285

FAX: +91 22 6662 4723



http://www.hccindia.com/


http://www.voltas.com/



WEBSITE: www.tce.co.in

CONTACT PERSON: Mr. P K Pal

DESIGNATION: Chief Manager (Civil)

DETAILS: Tata Consulting Engineers Limited (TCE) is one of India's leading

engineering consulting organizations. Established as Tata-Ebasco

Consulting Engineering Services in 1962, the company is now a wholly-

owned subsidiary of Tata Sons Limited. TCE is ISO 9001 - 2008 certified

by Lloyd's Register Quality Assurance.

UNITY INFRA PROJECTS

ADDRESS: 1252,Pushpanjali Apartments, Old Prabhadevi Road,Prabhadevi,

Mumbai 400 025

TELEPHONE: +91 22 6666 5500

MOBILE: +91 9167407532

FAX: +91 22 6666 5599


WEBSITE: www.unityinfra.com

CONTACT PERSON: Mr. Abhijit Avarsekar

DESIGNATION: CEO

DETAILS: Promoted by Shri. K K Avarsekar and his associates, Unity Infraprojects

Limited (UIL) was incorporated in 1979. Headquartered in Mumbai,

mainly engaged in construction and allied activities, company operates

in 4 verticals: buildings and housing; transportation; water supply and

irrigation. Having achieved ISO 9001:2008, ISO 14001:2004 and OHSAS

18001:2007 the company has gained credibility owing to its quick

turnaround time, in time and within cost deliveries, organizational

strength and financial stability and above all, international standards.

GAMMON INFRA

ADDRESS: A-201,209, Chandivali Farm Road, Andheri (East), Mumbai - 400 072.

TELEPHONE: +91 22 6197 9665

MOBILE: +91 9819877234

FAX: +91 22 6197 9666


WEBSITE: www.gammonindia.com/home/gammon-india.htm

CONTACT PERSON: Mr. Ankur Goyal

DESIGNATION: Manager - Business Development & Marketing

DETAILS: Gammon India is amongst the largest physical infrastructure construction

companies in India. Its track record spans significant landmark projects

built over several decades, with a prominent presence across all sectors

of civil engineering, design and construction. It has a track record of

building landmark structures, some of which have become iconic. This

includes’ The Gateway of India’, the piling and civil foundation work for

http://www.tce.co.in/


http://www.unityinfra.com/


http://www.gammonindia.com/home/gammon-india.htm


which was successfully executed by Gammon as its maiden project way

back in 1919.

HINDUSTAN DORR OLIVER

ADDRESS: Dorr-Oliver House, Chakala Andheri (East), Mumbai - 400 099.

TELEPHONE: +91 22 2835 9400 Ext 9402


WEBSITE: www.hdo.in/main

CONTACT PERSON: Mr. Sekaran S.C

DESIGNATION: Executive Director

DETAILS: A leader in the industrial EPC market, Hindustan Dorr-Oliver Limited, has

been providing state-of-art technology solutions to its clients for about 7

decades now. They have come a long way from our humble beginnings as

supplier of proprietary solid-liquid separation equipment to being a major

engineering EPC player, assimilating new technologies and providing the

best, most cost effective and integrated turnkey solutions. They have a

pan India presence, with offices in every major city in India - Mumbai,

Bangalore, Chennai, Kolkota, Delhi and Ahmedabad.

PETRON ENGINEERING

ADDRESS: Level 6, Swastik Chambers, Sion -Trombay Road, Chembur, Mumbai – 400

071.

TELEPHONE: +91 22 6797 3523 / 2526 1130

FAX: +91 22 6797 3509


WEBSITE: www.petronengineering.com

CONTACT PERSON: Mr. TS Das

DESIGNATION: Managing Director

DETAILS: Petron Engineering Construction Limited, came into existence nearly

thirty years back. Based on the professional deliverance and commitment

levels of its employees and with the focused management vision, the

group today has successfully executed nearly 600 projects, for renowned

public as well as private sector companies nationwide. These were in

diversified sectors like refineries (reformers and crackers), oil and gas,

power, cement, fertilizer and petrochemical, including specialized

insulation and refractory work, fabrication work along with electrical and

instrumentation work.

TOYO ENGINEERING INDIA LTD

ADDRESS: Lal Bahadur Shastri Marg,Kanjurmarg (West), Mumbai - 400 078.

TELEPHONE: +91 22 25737636/25737000


WEBSITE: http://www.toyoindia.com/


http://www.hdo.in/main


http://www.petronengineering.com/


http://www.toyoindia.com/


CONTACT PERSON: Mr A.K.Rehlan

DESIGNATION: Senior Manager Construction

DETAILS: Toyo Engineering India Ltd (Toyo India) was established in 1976 by Toyo

Engineering Corporation (Toyo Engineering - Japan). During early days,

Toyo India was primarily supporting Toyo Engineering Japan for their

Middle East and India projects. Today Toyo India is professionally

managed corporate entity undertaking EPC, PMC or EPCM project

assignments by leveraging its vast and varied experience, large pool of

technically competent manpower, excellent office infrastructure and

other requisite resources.

SHAPOORJI PALLONJI INFRASTRUCTURE CAPITAL COMPANY LIMITED (AFCON IS A GROUP

COMPANY)

ADDRESS: SP Center, 41/44 Minoo Desai Marg, Colaba, Mumbai 400 005

TELEPHONE: +91 22 67490291

EMAIL: [email protected]/[email protected]

WEBSITE: www.shapoorji.com

CONTACT PERSON: Mr. Mukundan Srinivasan / Mr. Paras Vishwakarma

DESIGNATION: Chairman / Senior General Manager

DETAILS: Over the last hundred years, the company’s expertise has been repeatedly

showcased on projects which involved a major advance in construction

technology or whose size was beyond the capacity of most others. Blessed

with a rich legacy and heritage, it has marched into the new millennium

with modern management skills, state-of-the-art technology and the ideals

of innovation and customer satisfaction.

AFCONS INFRASTRUCTURE

ADDRESS: AFCONS House, 16, Shah Industrial Estate, Veera Desai Road, Azadnagar,

Andheri (West),400053, Mumbai

TELEPHONE: +91 22 67191143


WEBSITE: www.afcons.com

CONTACT PERSON: Mr. Arun C Deore

DESIGNATION: Jt. G. Manager (Tendering & Business Development)

DETAILS: Afcons Infrastructure Limited is part of the Shapoorji Pallonji Group, the

third largest construction group in India. It is one of the prominent

infrastructure companies in India with its presence in various parts of the

world.

RELIANCE INFRASTRUCTURE

ADDRESS: Santacruz – East, Mumbai, 400055

TELEPHONE: +91 22 30099274

MOBILE: +91 9322853488




http://www.shapoorji.com/


http://www.afcons.com/



WEBSITE: www.relianceada.com

CONTACT PERSON: Mr. Vishnu Chhatre

DESIGNATION: VP Commercials and Contracts

DETAILS: Reliance Infrastructure Ltd is not only India’s largest private sector

enterprise in power utility but also the largest private sector player in

many other infrastructure sectors such as MRTS, Sealink and Airports,

Specialty Real Estate.

PRATIBHA INDUSTRIES

ADDRESS: Universal Majestic, 13th & 14th Floor, Off. Eastern Express Highway, P.L.

Lokhande Marg, Ghatkopar Mankhurd Link Road, Behind RBK

International School, Govandi, 400 043

TELEPHONE: +91 22 39559999 / 1511

FAX: +91 22 39559900

MOBILE: +91 9930458418


WEBSITE: www.pratibhagroup.com

CONTACT PERSON: Mr. Kamran Kharbe

DESIGNATION: General Manager Business Development

DETAILS: Pratibha Industries, a registered partnership firm is a medium sized ISO

9001:2000 certified company engaged in the business of infrastructure

development.

IL&FS

ADDRESS: The IL&FS Financial Centre,Plot No. C-22, G-Block,Bandra Kurla Complex,

Bandra (E), 400 051, Mumbai

TELEPHONE: +91 22 26523018

MOBILE: +91 9820040334


WEBSITE: www.ilfsindia.com

CONTACT PERSON: Mr. Vibhav Kapoor

DESIGNATION: Chief Investment Officer

DETAILS: Infrastructure Leasing & Financial Services Limited (IL&FS) is one of India's

leading infrastructure development and finance companies. IL&FS has

developed the requisite capabilities to take infrastructure projects from

concept to commissioning. In each sector, IL&FS has established specific,

replicable, stand-alone, scalable prototypes for developing self-sustaining

infrastructure projects. In parallel, IL&FS has devised innovative

mechanisms and products to facilitate project financing.

GVK

ADDRESS: 1st floor, Terminal 1B, Santacruz (E), Mumbai - 400 099

TELEPHONE: +91 22 66850771


WEBSITE: www.gvk.com

http://www.relianceada.com/


http://www.pratibhagroup.com/


http://www.ilfsindia.com/


http://www.gvk.com/


CONTACT PERSON: Mr. Frank McCrorie

DESIGNATION: Director Operations

DETAILS: GVK is a leading Indian conglomerate with experience and expertise

spanning across diverse sectors including Energy, Resources, Airports,

Transportation, Hospitality and Life Sciences.

IVRCL

ADDRESS: IVRCL House, 35 Suyojana CHS, Koregaon Park, 411001, Pune

TELEPHONE: +91 20 26137741/ 26111224/ 30520641


WEBSITE: www.ivrcl.com

CONTACT PERSON: Mr. Dinesh Degwekar

DESIGNATION: General Manager

DETAILS: IVRCL deals with the following core infrastructure sectors: Water &

Environment, Transportation, Buildings and Power

SIMPLEX INFRASTRUCTURE

ADDRESS: 'Simplex House', 27, Shakespeare Sarani, Kolkata – 700 017

TELEPHONE: +91 22 23011600

FAX: +91 22 2283 5966 / 65 /64


WEBSITE: www.simplexinfra.com

CONTACT PERSON: Mr. Rajiv Mundhra

DESIGNATION: Director

DETAILS: Simplex Infrastructures Ltd. is a diversified company established in 1924

and executing projects in several sectors like transport, energy and

power, mining, buildings, marine and real estate etc.

MAN INFRACONSTRUCTIONS

ADDRESS: Man Infraconstruction Ltd. 12th Floor, Krushal Commercial Complex,

Above Shoppers Stop, G M Road, Chembur (West), Mumbai 400 089,

India

TELEPHONE: +91 22 2526 0582-88, +91 22 42463999


WEBSITE: www.maninfra.com

CONTACT PERSON: Mr. Parag K Shah

DESIGNATION: Managing Director

DETAILS: One of the leading company’s having expertise in industrial constructions,

commercial and institutional constructions, road constructions,

residential constructions and port infrastructure.


http://www.ivrcl.com/


http://www.simplexinfra.com/


http://www.maninfra.com/


REST OF INDIA CONTACTS

RAMKY INFRASTRUCTURE

ADDRESS: Ramky Grandiose,Floor 10 & 11, Sy. Nos: 136/2 & 4, Gachibowli,

Hyderabad- 500 032.

TELEPHONE: +91 40 23310091

FAX: +91 40 23302553

MOBILE: +91 8978801071


WEBSITE: www.ramkyinfrastructure.com

CONTACT PERSON: Neeraj Srivastava

DESIGNATION: GM (Business Development)

DETAILS: Ramky Infrastructure Limited (Ramky Infra) is an integrated construction,

infrastructure development and management company in India. Since

the commencement of its business in 1994, the Company has done a

range of construction and infrastructure projects in various sectors such

as water and waste water, transportation (including terminals), irrigation,

industrial construction (including SEZs & industrial parks), power

transmission and distribution, buildings (including residential,

commercial & retail property).

LANCO INFRATECH

ADDRESS: Plot no. 397, Udyog Vihar, Phase-3, Gurgaon, 122 016 New Delhi Region,

India

TELEPHONE: +91 124 4741 000


WEBSITE: www.lancogroup.com

CONTACT PERSON: Mr. V Sreenivas

DESIGNATION: Director- Corporate Communications

DETAILS: Lanco infratech has subsidiaries and divisions across a synergistic span of

vertical that include engineering, procurement and construction, power,

solar, natural resources, infrastructure, and property development. Lanco

infratech's projects, operational and underway are spread across India

and abroad.

GMR

ADDRESS: IBC Knowledge Park, Phase 2, "D" Block, 11th Floor, 4/1, Bannerghatta

Road, Bangalore - 560 029, Karnataka, India

TELEPHONE: +91 80 40432000

EMAIL: [email protected] , [email protected]

WEBSITE: www.gmrgroup.in


http://www.ramkyinfrastructure.com/


http://www.lancogroup.com/



http://www.gmrgroup.in/


CONTACT PERSON: Mr. A Subbarao , Arun Bhagat

DESIGNATION: Croup CFO , Corporate Communications

DETAILS: GMR Group is one of the fastest growing infrastructure enterprises in the

country with interests in airports, energy, highways and urban

infrastructure sectors. Employing the Public Private Partnership model,

the Group has successfully implemented several iconic infrastructure

projects in India.


INDUSTRY ASSOCIATIONS AND EXHIBITIONS

BUILDERS ASSOCIATION OF INDIA

www.baionline.in

INDIAN INFRASTRUCTURE SHOW

http://indianinfrastructureshow.com

CONSTRUCT INDIA

www.construindia.com

EXCON

www.excon.in

http://www.baionline.in/

http://indianinfrastructureshow.com/

http://www.construindia.com/

http://www.excon.in/


BIBLIOGRAPHY

PRICEWATERHOUSE COOPERS

Report: ‘Infrastructure in India’

Date: November 2008

ERNST AND YOUNG

Report: ‘Accelerating Private Public Partnerships in India’

Date: 2012

FICCI (FEDERATION OF INDIAN CHAMBERS OF COMMERCE AND INDUSTRY)

Report: ’Urban Infrastructure in India’

Date:October 2011

IBEF (INDIA BRAND EQUITY FOUNDATION)

Report: ’Roads in India’

Date: March 2014

IBEF (INDIA BRAND EQUITY FOUNDATION)

Report: ‘Railways in India’

Date:March 2014

DELOITTE

Report: ‘A background paper on Infrastructure in Maharashtra’

Date: 2009

IPSOS BUSINESS CONSULTING

Report: ’Understanding India's Construction Equipment Market’.

Date: October 2013

TIMES OF INDIA

Article: ’Urban infrastructure not keeping pace with increasing migration’

Date: April 2014

THE HINDU – BUSINESS LINE

Article: ’FDI inflows into India in 2013 rose 17% to US $28 billion’.

Date: January 29, 2014

DAILY NEWS ANALYSIS

Article: ’India loses US $45 billion yearly due to inefficient logistics’.

Date: September 18, 2010

DAILY NEWS ANALYSIS

Date: July 1, 2013

Article: ‘Infra companies rope in foreign partners’

ROAD TRAFFIC TECHNOLOGY (Online Magazine)

Article: ’Traficon awarded major smart intersection control contract in India’.

Date: March 24, 2011

IBN LIVE

Article: ’Belgium to help India modernise railway stations’.

Date: August 03, 2012


NDTV

Article: ‘Experts from Belgium to develop Nagpur railway station into world class terminal’.

Date: May 25, 2013

ESSAR

Article: ’Essar steams ahead’

Date:July 09, 2012

SIEMENS

Date: July 2008

Article: ‘Siemens bags projects in India’

PROJECTS TODAY

Date: November 28, 2013

Article: ‘MMRDA signs MoU with Ney Poulissen’

WALLONIA FOREIGN TRADE & INVESTMENT AGENCY

Date: 2006

Success Stories in India

INFRAWINDOW NEWS BUREAU

Date: November 29, 2013

Article: ‘Not waiting for Indo-EU FTA India, Belgium to jointly set up infrastructure fund’


TOM VERMEULEN

Trade and Investment Commissioner

RANJAN APTE

Invest Deputy

SHERLYNN D’COSTA

Trade Assistant

SOMA SENGUPTA

Trade Assistant


Flanders Investment and Trade

Consulate General of Belgium 7 ׀th Floor TCG Financial Centre

C-53 "G" Block Bandra - Kurla Complex,

Bandra (E), ׀ Mumbai - 400 051

E-mail: [email protected]

Website: www.flandersinvestmentandtrade.com

Disclaimer: We, at Flanders Investment and Trade have provided the information in good faith and

intentions and is not a substitute for your own due diligence. Flanders Investment and Trade is not liable

for any consequences arising out of the contents of this report.


http://www.flandersinvestmentandtrade.com/

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