Index

Ahmadabad Municipal Corporation (AMC), 25

Air India, 24

Airport Authority of India (AAI), 56–57

Allergan Plc., 30–32

Ashok Leyland, 26

Authorized capital, 4

Bases of pricing

alternative fee basis in cost plus contracts, 68

cost control with design build approach, 67

cost plus fee basis, 65–66

for design and build approach, 64–70

lump sum fixed price basis, 64–65

Bharat Heavy Electricals Limited (BHEL), 26

Bonds, 12–18

generally obligation (GO) bonds, 13

long-term funds, comparison of, 17

revenue bonds (RB), 13

taxable municipal bonds, 16

tax-free municipal bonds, 14–15

Build, operate, and transfer (BOT), 60–61, 66, 69

Build, own, operate, and transfer (BOOT), 60–61, 66, 69, 97

Capital contribution, 2

Central Sector Projects Coordination Committees (CSPCCs), 95–96

Collaboration, 58

Commercialization, 59

Compounded annual growth rate (CAGR), 8

Conceptualization, 59

Concession, 60–61

Contractor-own-work portion (CWP), 65

Cost escalation, causes of, 95

Cost overrun

in projects, 96–97

sector-wise details of, 90

Credit rating, 19

Debentures, 12–18

Delhi International Airport Limited (DIAL), 56, 66

Design and build approach, PPP, 64

alternative fee basis in cost plus contracts, 68

bases of pricing for, 64–70

cost control with, 67

cost plus fee basis, 65–66

lump sum fixed price basis, 64–65

Design, bid, and build approach, PPP, 64

Divesture, 61, 78

Engineering-procurement-construction (EPC), 70

Equity shares, 3

Factoring, 27

Financing facilities, by banks, 26–28

cash credits/overdrafts, 26–27

commercial paper, 27

cost of credit, 28

discount of bills, 27

factoring, 27

letter of credit, 27

loans from banks, 27

terms of credit, 28

trade credit, 27–28

Flash Report, 88, 89, 92, 93

Flexible financing scheme, 10–11

General Chemical Industrial Products (GCIP), 33

Generally obligation (GO) bonds, 13

Greenfield projects, 61, 77, 78, 80

Hindustan Lever Chemicals (HLCL), 32–33

Hindustan Unilever (HUL), 36

Housing Development Finance Corporation (HDFC), 25

Housing and Urban Development Corporation (HUDCO), 24

Indian Oil Corporation (IOC), 26

Infrastructure and project monitoring division (IPMD), 84–87

infrastructure sector performance, 86–87

major activities of, 85

role of, 84

Infrastructure Debt Fund (IDF), 53

Infrastructure indicators, 43

Infrastructure privatization, 47

Infrastructure projects

comparative infrastructure indicators, 43

and economic development, 39–45

and economic reforms, 45–48

features of, 41

government scheme to support PPP in, 51–53

infrastructure privatization, 47

infrastructure sector performance in India, 44–45

investment during five year plans, 48–51

meaning, 38–39

overview, 38

and private sector involvement, 45–48

sector-wise investment, 50–51

Innovation, 59

Institutional finance, 8–11

Internal accruals, 4

Issued capital, 4

Larsen & Toubro, 26

Lease financing, 5–8

Leasing, 60

definition of, 6

financial lease, 6–8

operating lease, 7

types of, 6–7

Loan funds, from financial institutions, 4–5

Long-term funds, 2–4

Management contract, 60

Merchant banker, 18–19

Municipal Securities Rule Making Board (MSRB), 12

National Highways Authority of India (NHAI), 71

Nongovernmental organization (NGO), 56

Oil & Natural Gas Commission (ONGC), 26

Ordinary shares. See Equity shares

Original issue discount (OID), 12

Owners’ funds, 2–4

Payment on maturity, 19

Pfizer Plc., 30–32

Preference shares, 3

Private Finance Initiative (PFI), 58

Project financing

bonds or debentures, 12–18

brief case examples, 29–32

case studies, 32–36

financing facilities by banks, 26–28

institutional finance, 8–11

issues concerning project manager, 28

lease financing, 5–8

loan funds from financial institutions, 4–5

long-term funds, 2–4

owners’ funds, 2–4

securitization, 18–25

characteristics, 21–22

feasible areas, 25

illustration, 19–21

origins and position in India, 22–24

prerequisites, 22

process, 18–19

short-term funds, 25–26

Project management, in India

brief case example, 97–98

cost escalation, causes of, 95

infrastructure and project monitoring division (IPMD), 84–87

infrastructure sector performance, 86–87

initiatives, introduction of, 95–96

overview, 83–84

performance report of projects, 88–92

remedial measures/systemic improvements, 95

time and cost overrun in projects, 96–97

time overrun, reasons for, 92–94

Public deposits, 25–26

Public Investment Board (PIB), 84

Public–private partnership (PPP), 46

approaches, 64

bases of pricing for design and build approach, 64–70

contract award method in India, 73

design and build approach, 64

design, bid, and build approach, 64

vs. factors priority, 63

features of, 58–59

forms comparison, 61–64

government scheme to support, 51–53

infrastructure projects under PPP in different countries, 74–77

meaning of, 56–58

vs. operating features, 62

overview, 55–56

vs. private participation objectives, 63

private sector involvement and, 59, 70–74

project database, 74

projects across regions and sectors, 75, 76

projects in India and China, 77–81

sector-wise projects in India, 71

spectrum of, 60–61

state-wise projects in India, 72

Public Sector Undertakings (PSUs), 85

Reliance India Limited (RIL), 17, 23

Reserve Bank of India (RBI), 8

Reserves. See Internal accruals

Revenue bonds (RB), 13

Risk allocation, 59

Securities Exchange Commission (SEC), 12

Securitization, 18–25

characteristics, 21–22

feasible areas, 25

function of, 18

illustration, 19–21

origins and position in India, 22–24

prerequisites, 22

process, 18–19

as source of infrastructure finance, 15, 17–18

Service contract, 60

Short-term funds, 25–26

Special purpose vehicle (SPV), 5, 18, 21, 56

Steel Authority of India Ltd (SAIL), 26

Tata Chemicals Limited (TCL), 32–35

Term loans, 4–5

Time overrun

geological surprises, 93

law and order problems, 93

in projects, 96–97

reasons for, 92–94

regulatory mechanism, 92

sector-wise details of, 90

sound project management practices, lack of, 93

Trade credit, 27–28

Viability gap funding (VGF) scheme, 52–53

Whole-of-life costing, 59

“Wrap-around” financing, 7

Zee Entertainment, 35–36

Zero interest bond, 12, 28