India

ROADIS is the biggest European highway concession operator in India

It enjoys a solid position in the country as a result of the knowledge and experience it has acquired in terms of project development and management in the country. We signed an exclusive collaboration agreement with the National Investment and Infrastructure Fund (NIIF) to create an investment platform.

707

km of highway managed

91.776

vehicles per day in 2019

3

% Traffic increase

Projects

India is a key market for our growth, where we have a total network of 707 km that is already managed in accordance with the strictest quality standards.

NH-1: Panipat-Jalandhar

Awarded in 2008, this project involved the expansion to 6 lanes of the NH-1, Panipat-Jalandhar section (291.1 km), in the states of Haryana and Punjab. ROADIS has a 61% stake in this concession.

The concession is a stretch of the Grant Trunk Road that connects Delhi with the northern cities of Ludhiana and Jalandhar; and from there, with the border with Pakistan.

NH-2: Varanasi-Aurangabad

Awarded in 2010, this project involved the expansion to 6 lanes of the NH-2, Varanasi-Aurangabad section (192.4 km), in the states of Uttar Pradesh and Bihar. ROADIS has a 50% stake in the project.

This stretch is on the Delhi - Kolkata highway, and connects the cities of Aurangabad (in Bihar) and Varanasi (in Uttar Pradesh). The importance of Varanasi as one of the main pilgrimage sites in India should be mentioned; the area is surrounded by sand and coal mines, which generate significant commercial traffic.

NH-6: Surat-Hazira-Maharastra

Awarded in 2009, this project involved the construction of 4 lanes of the NH-6 on the section that connects the port of Hazira (131.5 km) with Gujarat. ROADIS has a 78% stake in the project.

This stretch connects the city of Surat (the eighth most populous city in India and the second in the state, after Ahmedabad) with the port of Hazira, which is one of the main industrial and commercial ports along the industrial corridor between Delhi and Mumbai, with the border with Maharashtra.

NH-8: Kishangarh-Beawar

Awarded in 2009, this project involved the expansion to 6 lanes of the NH-8, Kishangarh-Ajmer-Beawar section (93.56 km) in the state of Rajasthan. ROADIS has a 50% stake in the project.

This stretch is on the Ajmer-Jaipur highway, one of the most important roads in Rajasthan. India’s main limestone and cement producers, as well as other construction material companies are located in this region.

In India, ROADIS focuses on the management of existing assets and on the acquisition of long-term stable projects, both in the country and in other countries in the Asia-Pacific region.

India is a key market for our growth, where we have a total network of 707 km that is already managed in accordance with the strictest quality standards. In the country, we are one of the main road operators and we have demonstrated our ability to deliver in the field.

We have a strong reputation thanks to focused strategic growth, solid partnerships and dedicated operations capabilities. All the assets in India are in the operational toll phase and have already reached significant milestones in the completion of their construction.

In 2019 ROADIS partnered with the National Investment and Infrastructure Fund (NIIF), a sovereign fund manager owned by the Government of India, with the intention of creating a platform with significant investment capacity.

The platform will focus on the acquisition of existing or new road concessions, and on the different parts of the country's road sector (TOT, HAM, BOT, etc.). A partnership perfectly suited to our objective to invest in infrastructure and guarantee their efficient management.

In addition, the performance of existing assets has been reasonably good and some of the inherited issues have been resolved; for example, the ROADIS team in the country has received final approval to certify completion of 113 km of the NH-2 project.
According to the IMF, the Indian economy grew by 6.1% in 2019: the lowest growth in the last seven years. This requires public policymakers and markets to rethink India's prospects, although they are still very positive in the long-term. The inflation rate was the same as the previous year: 3.7%, below the historical rates.

Slower domestic consumption affected growth; and tighter credit conditions led to lower private investment, which reduced the number of jobs. Three of four sources of growth—private consumption, private investment and exports—have slowed significantly. The considerable fall in consumption—which contributes most to growth—indicates poor consumer confidence and low purchasing power. In this context, the Government announced a collection of reforms to stimulate the economy, which will be affected by changes to the COVID-19 crisis during 2020. Before dealing with the pandemic, it was predicted that the Indian economy would pick up its previous rate of growth.

Moreover, as the Reserve Bank of India cut its central interest rate five times in the first 10 months of 2019, the room for manoeuvre for aggressive monetary policy was limited. The economy will aim to achieve a more stable price system and to improve the business climate, with a reform program which aims to consolidate public accounts, promoting investment and industrial development.

The Government implemented a tax decree on key goods and services (which aims to convert the 29 federal states to a single common market), and raised the permitted limits for direct foreign investment in some sectors, with different economic reforms which include administrative and government changes. Public debt levels remain high at 70%, which should continue in the coming years.

It is estimated that India will surpass China as the most populated country on the planet by 2024. It has the biggest youth population in the world. However according to the OECD, over 30% of Indian youth is a NEET (no employment, education or training).

India remains a poor country: per capita income is very low, with almost 25% of the population still living below the poverty line (nearly a third of the world's population living on less than USD 1.90 a day lives in India); and social inequality is significant: the richest 1% holds 53% of the country's wealth. According to the World Bank, the unemployment rate remained at 2.5%.
India has the second biggest road network in the world, with a total of approximately 5.8 million kilometres.

Over 64.5% of all goods in the country are transported by road, whilst 90% of total passenger traffic uses the road network to travel.

Within the framework of the Union budget for 2019-20, the Government of India has allocated 1.12 trillion rupees ($15.48 billion) to the Ministry of Transport. With this, it is estimated that for 2019-20, the Ministry of Transport will have a total expenditure of 83.016 billion rupees (USD 118.4 billion).

Over the next five years, the National Highways Authority of India (NHAI) will be able to generate 1 lakh crore ($14.3 billion) annually from tolls and other sources.

The Government of India intends to build 200,000 km of national roads by 2022; road construction in India increased by 23.25% of the annual consolidated growth rate between 14 and 18 February.

In the 2018 financial year, 9,829 km of roads were built, with an expenditure of 1.16 trillion rupees ($18.05 billion). The Government of India intends to build 65,000 km of national roads at a cost of 5.35 lakh crore ($741.51 billion) in 2022.

In March 2019, national road projects worth 110.154 billion rupees were unveiled. The Ministry of Road Transport and Highways planned to build 12,000 km of roads before the end of the 2020 financial year (as of March 2020).

The national highways are within the framework of the Bharatmala Pariyojana programme, which aims to improve the productivity of the movement of goods and passengers by addressing some of the most critical gaps in its infrastructure. The number of districts with national highway connections is also expected to increase from 300 to 550.

The proportion of road traffic as total traffic in India has increased from 13.8% to 65% in freight traffic; and from 32% to 90% in passenger traffic for the 1951-2017 period.

The National Highway Development Project (NHDP) is a seven-phase project totalling $60 billion. The projects aim to expand, improve and restore 47,054 kilometres of national roads.

How does ROADIS create value in the communities?

ROADIS assets in India have created a very significant volume of direct and indirect jobs in their communities. In addition, with the high-quality transport network provided by our roads, communities in the areas of operation have improved access to infrastructure and basic socio-economic services (markets, schools, health centres etc.), thus reducing travel times and costs.

ROADIS remains committed to protecting the environment in India. Thus, it complies with the environmental requirements management framework as provided by the NHAI for the four existing projects. In addition, it adheres to the Environmental Management Plan approved in the O&M manual, which monitors various environmental parameters during the operation phase for these projects.

Know our CR projects

Associations

to which the SBU belongs

National Safety Council of India. (Corporate Membership of National Safety Council of India for NH-2 SPV)

HOAI (Highway Operator Association of India)

INDO SPAIN CHAMBER OF COMMERCE

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India

ROADIS is the biggest European highway concession operator in India

707

91.776

3

Projects

How does ROADIS create value in the communities?

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