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September 24, 2021

Delhi-Mumbai Expressway to spur NMP…

The Delhi Mumbai expressway is likely to be a sustainable template for road
assets development and monetisation. With construction and residual
ordering process in full swing, we see it as a vital cog in the wheel for road

Sector Update
asset monetisation and overall growth opportunity, going ahead. If the traffic
and toll expectations play out on expected lines, it is likely to fetch ~| 50000-
80000 crore worth of monetisation proceeds, thereby providing a major
boost to ambitious National Monetisation plan (NMP) wherein the
government is aiming to monetise | 6 lakh crores through core assets
(~| 1.6 lakh crore from road assets) over FY22-25E.

Major connectivity mode an important corridor

Kickstarted in 2018 with the foundation stone being laid on March 9, 2019,
the world’s largest 1,380 km long eight-lane wide access-controlled
Expressway connecting Delhi with Mumbai is on its way to become
operational by March, 2023 (targeted). The expressway will not only shorten
the travelling time between Delhi and Mumbai by ~50% (to ~12 hours) but
is also likely to smoothen the connectivity between major cities of key states
such Haryana, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra.
Furthermore, 94 wayside amenities like ATMs, hotels, retail shops, food
courts and charging stations are also proposed to be built on the

ICICI Securities – Retail Equity Research

expressway to provide world-class transport facilities. As on September 10,
2021, contracts for 1,200+ km have already been awarded with construction
being picked-up on 910 km+.

Cost and funding details of project

The total cost of the Delhi-Mumbai expressway project is estimated to be
~| 95,000 crore (including land acquisition cost of ~| 20,600 crore). The
total capital expenditure during construction period is likely to be ~| 53,850
crore, which is planned to be funded through a combination of debt and
equity. Thus, in order to fund the project, NHAI’s dedicated SPV for Delhi-
Mumbai Expressway - DME Developers Ltd has raised ~ | 9,731 crore in
CY21 and aims to mop up ~| 49000 crore as debt proceeds). With most
packages being executed by EPC and HAM mode (31: EPC; 21: HAM), the
major expense has to be made by the road authorities. Research Analysts
Bhupendra Tiwary, CFA
To pave way for NMP with potential of | 50,000-80,000 crore bhupendra.tiwary@icicisecurities.com
Lokesh Kashikar
Being a high traffic density stretch, the Union Road Transport and Highways lokesh.kashikar@icicisecurities.com
Minister has said that monthly toll revenues of ~| 1000-1500 crore are
expected from the project (Link). Thus, it is estimated that Delhi-Mumbai
expressway has monetisation potential of | 50,000-80,000 crore.
Additionally, the project is likely to pave the way for the success of the
ambitious National Monetisation plan (NMP) wherein roads assets worth
| 1.6 lakh crore are being targeted to get monetised primarily via toll operate
transfer (ToT) and infrastructure investment trust (InvITs) mode.
We also envisage that the monetisation model, if successful, would provide
a visible long term financing mode and thus ordering opportunity in the road
space. The key beneficiary of such ordering would be road based EPC/HAM
contractors. From our coverage universe, we see KNR Construction, HG
Infra, PNC Infratech and Ashoka Buildcon benefiting from such a huge
opportunity.
 Sector Update | Infra ICICI Direct Research

Exhibit 1: Alignment of expressway

Source: NHAI, Media Articles, ICICI Direct Research

Exhibit 2: State wise length

States Length (in Km)
Delhi 9
Haryana 129
Rajasthan 373
MP 244
Gujrat 426
Maharashtra 171

A link road connecting to Jewar Airport in UP 31

Grand Total 1,380

Source: NHAI, MoRTH, ICICI Direct Research

Exhibit 3: Stretch wise break-up

Section Length (in km) Awarded (in km) Expected completion schedule
Delhi–Faridabad–Sohna 90 60 FY24
Sohna - Vadodara 845 812 FY23
Vadodara - Virar 355 355 FY23
Virar - JNPT 90 - FY23
Total 1,380 1,227
Source: NHAI, MoRTH, ICICI Direct Research

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 Sector Update | Infra ICICI Direct Research

Exhibit 4: Package details and ordering status

Package Section Name of Contractor Length State Physical Progress* - Scheduled/Ex pected
(in km) as on 10th Sept 2021 completion date
1 Delhi-Vadodara APCO Infratech 19.0 Haryana 62% Mar'21
2 Delhi-Vadodara APCO Infratech 29.0 Haryana 55% Mar'21
3 Delhi-Vadodara Centrodorstroy India Pvt Ltd 32.0 Haryana 84% Mar'21
4 Delhi-Vadodara HG Infra 37.0 Rajasthan 82% Mar'21
5 Delhi-Vadodara KCC Buildcon 36.0 Rajasthan 75% Mar'21
6 Delhi-Vadodara KCC Buildcon 31.0 Rajasthan 79% Mar'21
7 Delhi-Vadodara Gawar Constructions 31.0 Rajasthan 84% Mar'21
8 Delhi-Vadodara HG Infra 33.0 Rajasthan 39% Jan'23
9 Delhi-Vadodara HG Infra 46.0 Rajasthan 29% Jan'23
10 Delhi-Vadodara Dhaya Maju Infra - Crescent EPC Projectrs 26.0 Rajasthan 7% Jan'23
11 Delhi-Vadodara L&T Ltd 12.0 Rajasthan 10% Jan'23
12 Delhi-Vadodara GR Infra 28.0 Rajasthan 11% Jan'23
13 Delhi-Vadodara CDS Infra 29.0 Rajasthan 24% Jan'23
14 Delhi-Vadodara Dhaya Maju Infra - Crescent EPC Projects 31.0 Rajasthan 4% Jan'23
15 Delhi-Vadodara Dilip Buildcon - Altis - Holding Corp 8.3 Rajasthan 0% Jan'23
16 Delhi-Vadodara Dinesh Chandra R. Agrawal 25.0 Rajasthan 21% Jan'23
17 Delhi-Vadodara JiangXi Construction Eng- MKC Infra 32.0 Madhya Pradesh 43% Nov'22
18 Delhi-Vadodara GR Infra 33.0 Madhya Pradesh 66% Nov'22
19 Delhi-Vadodara JiangXi Construction Eng- MKC Infra 30.0 Madhya Pradesh 22% Nov'22
20 Delhi-Vadodara GHV (India) 25.0 Madhya Pradesh 52% Nov'22
21 Delhi-Vadodara GR Infra 30.0 Madhya Pradesh 65% Nov'22
22 Delhi-Vadodara L&T Ltd 25.0 Madhya Pradesh 41% Nov'22
23 Delhi-Vadodara GR Infra 25.0 Madhya Pradesh 44% Nov'22
24 Delhi-Vadodara GR Infra 21.0 Madhya Pradesh 54% Nov'22
25 Delhi-Vadodara GR Infra 23.0 Madhya Pradesh 51% Nov'22
Bids-Received - Under
26 Delhi-Vadodara Yet to be awarded 30.0 Gujarat Jan'23
evaluation
27 Delhi-Vadodara GHV (India) 29.0 Gujarat 0% Jan'23
28 Delhi-Vadodara GHV (India) 26.0 Gujarat 0% Jan'23
29 Delhi-Vadodara PNC Infratech 23.0 Gujarat 15% Jan'23
30 Delhi-Vadodara Patel Infrastructure 22.0 Gujarat 0% Jan'23
31 Delhi-Vadodara PNC Infratech 19.0 Gujarat 10% Jan'23
32 Vadodara - Mumbai Section IRB Infrastrcture 24.0 Gujarat 80% Mar'21
33 Vadodara - Mumbai Section IRCON International 32.0 Gujarat 81% Mar'21
34 Vadodara - Mumbai Section Patel Infrastructure 31.0 Gujarat 82% Mar'21
35 Vadodara - Mumbai Section Ashoka Buildcon 13.0 Gujarat 92% Mar'21
36 Vadodara - Mumbai Section Sadbhav Engineering 25.0 Gujarat 10% Jan'23
37 Vadodara - Mumbai Section GR Infra 37.0 Gujarat 0% Jan'23
38 Vadodara - Mumbai Section IRB Infrastrcture 27.0 Gujarat 0% Jan'23
39 Vadodara - Mumbai Section Roadway Solutions India Infra 36.0 Gujarat 0% Jan'23
40 Vadodara - Mumbai Section Roadway Solutions India Infra 26.0 Gujarat 0% Jan'23
41 Vadodara - Mumbai Section Roadway Solutions India Infra 25.0 Gujarat 0% Jan'23
42 Vadodara - Mumbai Section RKC Infrabuilt 26.0 Maharashtra 0% Jan'23
43 Vadodara - Mumbai Section Montecarlo 26.0 Maharashtra 0% Jan'23
44 Vadodara - Mumbai Section GR Infra 27.0 Maharashtra 0% Jan'23
45 Delhi Spur Dinesh Chandra R. Agrawal 9.0 Delhi 0% Oct'23
46 Delhi Spur Dinesh Chandra R. Agrawal 25.0 Haryana 1% Oct'23
47 Delhi Spur Dinesh Chandra R. Agrawal 26.0 Haryana 1% Mar'23
48 Delhi Spur Yet to be awarded 30.0 Uttar Pradesh 1% Oct'23

49 JNPT Spur Yet to be awarded 17.0 Maharashtra Bids - Yet to be Invited Oct'23

50 JNPT Spur Yet to be awarded 23.0 Maharashtra Bids Invited Oct'23

51 JNPT Spur Yet to be awarded 27.0 Maharashtra Bids Invited Oct'23
52 JNPT Spur Yet to be awarded 9.0 Maharashtra Bids Invited Oct'23

Bids - Yet to be Invited

53 JNPT Spur Yet to be awarded 15.0 Maharashtra ( to be developed by Oct'23
MMRDA)

Source: NHAI, MoRTH, ICICI Direct Research

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 Sector Update | Infra ICICI Direct Research

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stocks according to their notional target price vs. current market price and then categorises them as Buy, Hold,
Reduce and Sell. The performance horizon is two years unless specified and the notional target price is defined as
the analysts' valuation for a stock

Buy: >15%;
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Reduce: -5% to -15%;
Sell: <-15%

Pankaj Pandey Head – Research pankaj.pandey@icicisecurities.com

ICICI Direct Research Desk,

ICICI Securities Limited,
1st Floor, Akruti Trade Centre,
Road No 7, MIDC,
Andheri (East)
Mumbai – 400 093
research@icicidirect.com

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 Sector Update | Infra ICICI Direct Research

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