MyValueResearch

NOIDA TOLL BRIDGE COMPANY LIMITED

Business Profile

Noida Toll Bridge Company Limited (NTBCL) is incorporated in India on April, 1996, was set up to develop, establish, construct, operate and maintain a project relating to the construction of the Delhi Noida Toll Bridge under the build-own-operate-transfer (BOOT) basis. The Delhi Noida Link Bridge comprises the Delhi Noida Link Bridge, adjoining roads, and other related facilities and the Ashram flyover, which has been constructed at the landfall of the Delhi Noida Link Bridge. The Company has a wholly owned subsidiary, DND Flyway Limited. DND Flyway Limited, promoted by Noida Toll Bridge Company Limited (NTBCL) was incorporated with the object of carrying out development activities on the surplus land around the Delhi Noida Bridge (DND Flyway). The surplus land from NTBCL was proposed to be transferred to the Company in one or more tranches.

Investment Rationale

· The DND Flyway, the name given to the Noida Toll Bridge facility, continues to compete with the two free bridges which cross the Yamuna River in the same influence area as the Delhi Noida Toll Bridge, namely Nizamuddin Bridge and Okhla Bridge. Both these bridges, however, are close to saturation point, particularly, during peak hours. The maximum capacity of the Delhi Noida Bridge is 220,000 vehicles per day. The main advantage of using the bridge is the savings in time, distance and fuel consumption for travelers between South Delhi and Noida.

· Despite the toll charges, NTBCL has seen an overall 15% growth in traffic volumes, which is expected to continue, given the increasing development activity in Noida and rise in the number of corresponding commuters.

· NTBCL was awarded the project “The Mayur Vihar Link Road “ to construct link between Mayur Vihar and Noida on a BOT basis. This road is fully operational now. The company expects the new link road to attract over 10,000 vehicles daily.

· NTBCL also has access to developmental rights of over 200 acres in Delhi and 30 acres in Noida as part of its current projects. This land bank is valued at 1500crores.

· Traffic levels on the Delhi Noida Bridge are expected to increase as Noida and Greater Noida experience development and population growth and with the onset of the Commonwealth Games in 2010.

· Currently, around 80,000-85,000 vehicles pass through the toll bridge every day, which translates to toll collections of about Rs60 crores in a year whereas the capacity of the bridge is 220,000 vehicles per day, so there is longevity and a huge scope for the increasing traffic.

· Noida has become a hub for multinational firms outsourcing IT service, BPO, automobiles, prominent shopping malls which have become visitor attractions. Moreover, Upcoming townships are likely to cater traffic on the toll bridge.

· The company is one of the first toll road/bridge projects implemented on a BOOT basis in the country and has acquired an international reputation for high quality of services and deployment of state-of-art technology.