IRCON INTERNATIONAL LIMITED

CHHATTISGARH RAIL CORRIDORS

PRESENTATION TO SEMINAR DELEGATES

ON 09.12.2014BY

IRCON INTERNATIONAL LIMITED

PRESENTATION STRUCTURE

• About IRCON• Introduction of Chhattisgarh Coal Corridors• Historical Background• Details of the Corridors• Present Status• East Corridor• East-West Corridor• Planning of Execution

ABOUT IRCON

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Incorporated 1976

Mini Ratna 1998

Schedule ‘A’ status 2006

Cumulative Dividend Paid INR 676 Crore

Net Worth(as on 31.03.2014)

INR 2993 Crore

ABOUT IRCON

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• The largest construction PSU in the country having International presence in developing countries

• Earning profits since inception

• Among the only 4 Indian companies which could make it to the list of top 250 International Contractors 2014 by ENR and Ranked 173.

• Highest credit rating of AAA by CARE

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Areas of Operation

• Railways – Infra, Track, Electrification and Signalling & Telecommunication

• Highways / Roads

• Electrical Sub-stations, Transmission & Distribution

• Buildings – Commercial, Township

• Metro Railways, High Speed railway

• Special Structures – ROBs, Cable Stayed Bridge

Countries of Operation

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Projects Completed -Iraq, Iran, Turkey, Indonesia, Malaysia, Algeria, Bangladesh, Nepal, Afghanistan, Ethiopia, Srilanka etc.

Projects under Execution - Malaysia, Sri Lanka, Algeria, Bangladesh

Turnover

(INR Crore)

04-05 05-06 05-07 07-08 08-09 09-10 10-11 11-12 12-13 13-140

500

1000

1500

2000

2500

3000

3500

4000

4500

1014 1113

1543

2093

27393217

32543782

4481 4306

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Malaysia Design, Construction, Testing and Commissioning and Maintenance of the Double Track project between Seremban and Gemas

Value USD 1.04 Billion.

.

Major Completed Railway Projects

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Malaysia• Rehabilitation of 327 km track (mtr.

Gauge) from Paloh to Singapore & from Slim river to Seremban main line

• Double tracking of Rawang - Seremban railway line ( 126 km )

• Double tracking of KL Port Klang railway line– 105 km

• Design and Construction of Pelabuhan Tanjung Pelepas (31.5 km) Rail Link

Major Completed Railway Projects

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India

Kashmir Valley New BG rail link Qazigund- Baramulla railway project- Value USD 456 Million.

Gauge Conversion from Rewari to Ajmer in Rajasthan.

.

Major Completed Railway Projects

FROM IDEA TO IMPLEMENTATION

CHHATTISGARH COAL CORRIDORS

Historical Background

• Committee headed by Sri A. K. Misra, Chief Secy. (Retd.), Chhattisgarh identified three rail corridors critical for movement of coal.

• MoR and GoCG entered into a MOU in Feb’2012 to take up these projects on PPP basis.

• MoR nominated IRCON to participate in the JV as per the Policy on Private Participation in JV Model for two of the three corridors considered bankable.

Introduction

The two identified Corridors being: Bhupdeopur-Gharghoda-Karichhapar-Dharamjaigarh-Korba with a spur from Gharghoda to Donga Mauha

And Gevra Road to Pendra via Katghora, Passan and

Sendurgarh It was decided that IRCON being the domain

expert will be the implementing agency.

System Map

EAST_WEST CORRIDOR

EAST CORRIDOR

Traffic Potential in Raigarh Mand Region

Traffic Projection

YearTraffic in Million Tonnes No. of Rakes Per Day

SECL Private SECL Private Total

2019 – 20 15 2 12 2 14

2020 – 21 18 3 15 3 18

2021 – 22 20 4 16 4 20

2022 – 23 24 6 20 5 25

2023 – 24 26 8 21 6 27

2024 – 25 30 10 24 8 32

2026 – 27 33 12 28 9 37

2031 – 32 45 14 36 11 47

2036 – 37 60 16 48 12 60

Present Status

MoR had included the two corridors in the Pink Book 2013-14 as sanctioned projects.

This enabled MoR to declare these projects as Special Railway Projects for the purpose of land acquisition under the Railway Act.

Railway Act is exempt from the purview of the new Land Acquisition Act.

Ircon and its consultants have identified the land and its classification for the purpose of starting acquisition proceedings.

Present Status

• DPR work for Kharsia-Dharamjaigarh has been completed. The detailed survey revealed why connectivity at Bhupdeopur was not possible and Kharsia was feasible and advantageous.

• In a length of 74km, there are 6 stations, namely:Gurda, Chhal, Gharghoda, Karichhapar, Kudumkela and Dharamjaigarh.All stations will have passenger amenities as per scale.• Only single line planned beyond Karichhapar for

30km. Single line can evacuate about 25mt traffic while double line can evacuate up to 100mt.

Two Basic Prerequisites

Requirement of land—1100 Acre Requirement of funds at today’s cost Rs. 1646 Cr.

650180

220 LAND Pvt landGovt landForest land

1150

496

FUNDs

DebtEquity

Applicable Acts, Resettlement & Rehabilitation

Land Acquisition Act 1894 is not valid any more. Right to Fair Compensation, Resettlement and

Rehabilitation Act 2013 is in force since 1 Jan’ 2014. This Act exempts the Railway Act and some other Acts

from its purview. Hence, MoR agreed to apply the Railway Act for land

acquisition on these two projects. The process started in March 2014. The Railway Act says National Resettlement and

Rebilitation Policy 2007 is applicable.

Status of Land Acquisition

Identified Private Land has been notified once. Objections received at the end of statutory 30 days

period have been disposed of. Joint field measurement for identifying the actual

land losers completed. Differences noticed in the field due to

discrepancies of land records are being notified again.

The process to be completed by Dec’2014.

Resettlement and Rehabilitation

The present policies differentiate between an Affected Person and a Displaced Person.

Care has been taken to see that there are no more than 10 displaced families in the entire project length.

About 1250 families in 49 village are losing part of their land holding.

All land losers will get annuity in proportion to the land lost other than the compensation for land.

Amount of compensation is being worked out on the basis of the new Act, i.e. between 3 to 4 times the market value.

Lessons of Land Acquisition Process

Make State Govts. partner in land related projects. Land records are complicated and can not be interpreted

scientifically. They are best left to field level officials of the State Govt. to interpret.

Computerization of land records is a half truth or a myth.

Forest Management Maps are also highly unscientific. Any co-relation with field is plain luck.

Concession

As per the provisions of proposed Concession Agreement, the JVC gets to share 50% of the apportioned traffic receipts for making the infrastructure available including maintenance cost.

JVC has to manage maintenance of infrastructure. Railways take care of rolling stock, station operations and

energy costs. All maintenance facilities of rolling stock are outside the project area.

Railways may consider special tariff in case of viability gap.

Bankability and Financial Closure

As per the provisions of proposed Concession Agreement, the JVC gets to share 50% of the apportioned traffic receipts for making the infrastructure available including maintenance cost.

Based on the traffic projection ( Initial traffic and growth), the project is considered bankable.

There will be negative cash flow for the first 15 years ( up to the level of 40MT per annum).

There may be cause for concern in case traffic projections are not met.

Construction Schedule---East Corridor

ACTIVITYMar'14-Sept’14

Oct'14-Mar’15

Apr'15-Sept’15

Oct’15-Mar'16

Apr’16-Sept'16

Oct16-Mar'17

Apr17-Sept'17

DEATILED SURVEY

FINANCIAL CLOSURE

LAND ACQUISITION

FOREST CLEARANCE

AWARD OF EXECUTION WORK

EARTHWORK

BRIDGES

TRACKWORK

STATION YARDS AND BUILDINGS

ELECTRIFICATION, SIGNALING, TESTING AND COMMISSIONING

East-West Corridor

Pendra Rd

Gevra Rd

Salient Features

Connects mines of Korba Distt to Bilaspur Katni Section at Pendra Road. (total length: 145km)

Thus relieving Raigarh-Bilaspur section of line capacity constraints and reducing the path to North Indian states by nearly 200kms.

At present Korba-Champa carries more than 50MT coal traffic. All additional coal production from Kusmunda, Gevra and Dipka mines is likely to be diverted to the new corridor.

Estimated to cost Rs. 2700 Cr.

Execution Schedule---East West Corridor

ACTIVITY Oct’14-Mar'15

Apr’15-Sep'15

Oct’15-Mar'16

Apr’16-Sept'16

Oct’16-Mar'17

Apr’17-Sep'17

Oct’17-Sept'18

DEATILED SURVEY

FINANCIAL CLOSURE

LAND ACQUISITION

FOREST CLEARANCE

AWARD OF EXECUTION WORK

EARTHWORK

BRIDGES

TRACKWORK

STATION YARDS AND BUILDINGS

ELECTRIFICATION, SIGNALING, TESTING AND COMMISSIONING

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Thank you for your kind attention