Hyderabad, August 11, 2008: IL&FS Engineering and Construction Company Limited, a Hyderabad based construction and infrastructure development Company today announced that their Consortium comprising of Navabharat Ventures Limited, IL&FS Engineering and Construction Company Limited, Ital Thai Development Public Company Limited and Infrastructure Leasing and Financial Services Limited (‘NMII Consortium’) has received a Letter of Award (LoA) from Government of Andhra Pradesh. The Government of AP has awarded the Concession for undertaking the development of Hyderabad Metro Rail Project (MRTS) on Design, Build, Finance, Operate and Transfer (DBFOT) basis.

The project cost as per Government of AP (GoAP) estimate is around Rs. 12,000 crores and will comprise 3 lines totaling 71km – Line 1: Miyapur to L.B. Nagar, approx length being 30 Km, Line 2: Jubiliee Bus Station to Falaknuma, approx length of 15 Km, Line 3: Nagole to Shilparamam, approx length being 26 Km. Additionally, GoAP is also providing real estate development rights to the Consortium for 18.5 million sq. ft.

Commenting on the development, Mr. Mohan Gurunath, CEO, Maytas Infra Assets Limited said, “We are in an era of massive infrastructure projects being developed across the country – projects that will have widespread impact and seek to change the way we do things, – the Metro is one such project. We needed to ensure that the collective experience and expertise in project management of the Consortium partners to execute such projects was projected in the right manner. We also ensured an innovative financing proposal – one that is a win-win for all was submitted. We are very proud of the fact that we have been chosen amongst several global players to execute this project”

The Consortium will be paying an amount to GoAP, which has a net present value equal to Rs. 1240 crores over a 34 year period – based on a discount rate used by GoAP of 13.5%.

The Concession Agreement to be entered into between GoAP and NMII Consortium is based on an initial concession period of 35 years (incl. construction period) and a possible extension in concession period of 25 years. As per the draft Concession Agreement the project has to be constructed over a five and a half year development period.

GoAP would subscribe to equity of Rs.250 crore, while various financing options are looked at for the project.