Opportunity to Invest in Urban Infrastructure in the fastest growing State of Andhra Pradesh (“AP”) in India

  • 8th Largest State in India with a population of over 50mn.
  • GDP of over US$100bn with double digit growth @11.6%
  • 1st Rank among Indian States in the DIPP-World Bank Ease of Doing Business Study in 2015-16.
  • 1st Rank in Infrastructure Category by India Today ,a leading Indian Publication.
  • 3 Industrial Corridor Criss Crossing the State and is Gateway to the East with a coastline of 974KMs and 6 existing ports.

Urbanization is Projected to contribute to 70-75% of the GDP by 2020

  • Urbanization in AP at 29.6%, expected to group to 50% by 2029
  • To continue with Double Digit Economic Growth requires Structured Urban Growth and Development.
  • Investment in Urban Infrastructure is projected at US$30bn
  • Government of Andhra Pradesh (“GoAP”) is focused on evolving a Comprehensive Framework for Urban Development.

Andhra Pradesh Urban Infrastructure Asset Management Limited (“APUIAML”) has been established as a Fund Manager for APUDF

  • APUIAML is a joint venture between Government of Andhra Pradesh and IL&FS Group.
  • GoAP holds 49% stake in the venture and IL&FS Investment Managers Ltd (“IIML”), a 100% subsidiary of IL&FS Group holds 51% stake.
  • APUIAML will perform the roles of Project Development, Fund Management and Project Management as well as Capacity Building of the Project Companies, an end to end proposition to deliver value for both the State and the Investors.
  • The value creation is being targeted using following channels:
    • For each Investment, a Comprehensive Asset Management Program will be put in place.
    • Introduce at SPV/ULB level-operational efficiencies, Strengthened Internal controls, bring in best practices, Optimise Financing.
    • Structure projects to be bank able, reduce operating losses and contribution by Government/ULB and leverage Government Grants.
    • Manage projects on an arm's length basis with strong Conflict Management Processes.