Our initial portfolio of assets include the following eight Projects, which comprises National Highways that are located in the states of Karnataka, Telangana, Gujarat, Bihar and Tamil Nadu proposed to be acquired by way of [100% shareholding] in seven Project SPVs and 49% shareholding in one Project SPVs:

The Projects are based on public private partnership (“PPP”) on a hybrid annuity mode (“HAM”). HAM was introduced in January 2016 by the Government with an intent to share the financial risk with the developers, given that infrastructure projects are capital intensive in nature. In a HAM project, the concessioning authority shares a portion of the total project cost during the construction phase. As a mix of EPC and annuity models, HAM reduces the financial burden of a concessionaire during the project construction phase and provides an assured revenue in form of annuities, interest on reducing balance of completion cost (BCC) and O&M payments linked to inflation in the operational phase. Annuity payments eliminate the risk of income fluctuations resulting from changes in traffic volumes. The Concessioning authority for all the Projects is NHAI.