on Concession:

A concession agreement was agreed between NTBCL, NOIDA and
IL&FS on November 12, 1997. According to the terms and conditions of the agreement,
the NTBCL has the right to BOOT (Build, Own, Operate and Transfer) the Toll
Bridge connecting Delhi and Noida and other project facilities. If we are able
to recover the total cost of the project with returns of 20% then the
concession period is 30 years or even earlier depending on the returns. NTBCL
can use the net toll revenues after setting aside expenses for maintenance and
operating activities to pay debt. However, NTBCL lenders cannot have access to
assets or income of IL&FS, Noida or Administration of Delhi.  

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Distinctive Features of Concession Agreement include:

Recovery through Toll Fees:

NTBCL has the right to recover project costs, operating costs
and maintenance costs by charging Toll Fees over the concession period

Review Mechanism:

FRC – Fee Review Committee will be formed, the chairman of
which would be Concessionaire appointed by the representative members of NOIDA
who are part of FRC. FRC decides the fee based on the CPI data for urban
non-manual employees which would be revised every year on Feb 1st. Toll
rate will be calculated on %increase in CPI and then rounded off to next rupee
for class I and class II vehicles else it will be rounded off to next 5 rupees.

 3.Assured returns:

As per the concession agreement, the NTBCL has the right to receive
assured returns of 20% net of taxes which is calculated on the total capital in
INR. Independent Project Engineer and Independent Auditor calculates the total
capital employed by taking project costs, major repair costs and shortfall in retrieval
of assured returns in the previous year (if any). In Case, if the assured
returns are not achieved then the concession period can be extended to a maximum
of 2 years beyond the agreed period of 30 years. Additionally, NOIDA has the
preference to grant land developmental rights to fund revenue shortfalls (if
any) to solace 20% assured returns. Once the target is achieved, project
facilities will return to NOIDA for a Rs.1/- nominal value