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1 Townhall Presentation 1

2 IDFC Infrastructure Index 2

3 Indices National infrastructure index which includes power, telecom, roads, ports and airport State infrastructure index which includes power, telecom and roads Sectoral indices (power, telecom, roads, ports and airports) Time period:

4 Methodology A. Normalize variables Step 1: Obtain the maximum value (across states) for each of the variables in the base year Max (C s,t=2006 ) Step 2: Normalize the value of each of the variables (across states and years) by dividing the actual values by the corresponding maximum value from step 1 V s,t = C s,t /Max(C s,t=2006 ) B. Combine variables and normalize Step 3: Combine the normalized value of all the variables through appropriate weights to get the sub-index or overall index I s,t = w i V i,s,t

5 Sectoral Representation in National Index State sectors Power Telecom Roads National Ports Airports

6 National Index Power Telecom Road Port Airport Combined

7 State-wise Combined Index Variables Power Index (1/3 rd weight) Telecom Index (1/3 rd weight) Road Index (1/3 rd weight) 7

8 State-wise Combined Index Values

9 State-wise Combined Index Values Combined infrastructure index for states has grown between 57% (Goa) to 126% (Arunachal Pradesh). Average for country is 78% growth between

10 Regional trends South North East Closing the Gap within the region Kerala Tamil Nadu Karnataka Andhra Pradesh BIMARU - Galloping Rajasthan New states have lagged their parents except Chattisgarh Rajasthan Uttar Pradesh Bihar Madhya Pradesh Uttarakhand Chattisgarh Jharkhand 10

11 Key insights Combined Index Dispersion among states has increased Himachal has moved from 3 rd place to 1st (largely due to telecom) Among the developed states, during , Karnataka & Andhra Pradesh have moved three places down (due to Telecom) Maharashtra & Gujarat have moved two places up (largely driven by Power & Telecom) Among less developed states, during Rajasthan has moved from 20 th to 9 th place Bihar has moved down (Largely due to Telecom) All North Eastern states have moved up on the Combined Index with the exception of Assam. They have been propelled by the Telecom Index.

12 Top Movers on Combined Index State Rank Change State Rank Change Rajasthan 11 Uttarakhand -8 Jammu & Kashmir 5 Assam -6 Meghalaya 5 Goa -5 Nagaland 3 Jharkhand -5 Arunachal Pradesh 3 Bihar -5 Himachal Pradesh 2 Karnataka -3 Gujarat 2 Andhra Pradesh -3 Maharashtra 2 West Bengal -2 Manipur 2 Sikkim -2 These states have move >1 place up or down 12

13 Fastest & Slowest Growers - Combined Index Fastest Growers Slowest Growers State CAGR State CAGR Arunachal Pradesh 23% Goa 12% Rajasthan 20% Assam 13% Himachal Pradesh 19% Uttarakhand 13% Gujarat 18% Bihar 13% Maharashtra 17% Jharkhand 13% 13

14 Top 10 & Bottom 10 - Combined Index Top 10 States Rank Base Year Last Year Goa Himachal Pradesh 2 Kerala Kerala 3 Himachal Pradesh Punjab 4 Punjab Tamil Nadu 5 Tamil Nadu Haryana 6 Haryana Goa 7 Karnataka Gujarat 8 Andhra Pradesh Maharashtra 9 Gujarat Rajasthan 10 Maharashtra Karnataka Bottom 10 States Rank Base Year Last Year Arunachal Pradesh Madhya Pradesh 27 Madhya Pradesh Jharkhand 26 Chattisgarh Chattisgarh 25 Jammu & Kashmir Arunachal Pradesh 24 Mizoram Assam 23 Meghalaya Mizoram 22 Jharkhand Bihar 21 Manipur Uttarakhand 20 Rajasthan Jammu & Kashmir 19 Nagaland Manipur 14

15 Power Index Variables Per Capita Input Energy Index (1/3 rd weight) Villages Electrified % (1/6 th weight) BPL Households Electrified % (1/6 th weight) Peak Deficit (1/6 th weight) Energy Deficit (1/6 th weight) 15

16 State-wise Power Index Values

17 State-wise Power Index Values

18 Regional Trends Power BIMARU - lighting up Rajasthan Madhya Pradesh Uttar Pradesh Bihar Rural is driving the growth for BIMARU except in M.P. -20 Rajasthan Madhya Pradesh Uttar Pradesh Bihar -40 Deficits Input energy per capita % villages electrified % rural BPL households electrified 18

19 Top Movers on Power Index Improvement Decline State Rank Change State Rank Change Andhra Pradesh 8 Mizoram -11 Chattisgarh 7 Sikkim -7 Uttar Pradesh 7 Jammu & Kashmir -5 Gujarat 5 Kerala -5 Rajasthan 5 Nagaland -4 Arunachal Pradesh 4 Madhya Pradesh -4 Haryana 2 Tripura -3 West Bengal 2 Uttarakhand -3 Bihar 2 Manipur -2 Jharkhand 2 These states have move >1 place up or down 19

20 Fastest & Slowest Growers - Power Index Fastest Growers Slowest Growers State CAGR State CAGR Andhra Pradesh 6.6% Mizoram -2.9% Uttar Pradesh 5.9% Manipur -0.5% Chattisgarh 5.8% Nagaland -0.5% Gujarat 5.5% Tripura 0.0% Arunachal Pradesh 4.7% Goa 0.1% 20

21 Contributors to growth of Power Index States Input Energy Per Capita Index % Villages Electrified Index % Rural BPL Households Electrified % Peak Deficit % Energy Deficit Andhra Pradesh 29% 0% 77% -1% -5% Arunachal Pradesh 93% 8% 2% 0% -3% Assam ( R ) 31% 33% 85% -24% -25% Bihar 6% 42% 67% -1% -15% Chattisgarh 27% 14% 42% 12% 5% Goa 282% 0% 0% -91% -91% Gujarat 49% 1% 26% 20% 5% Haryana 64% 0% 19% 8% 9% Himachal Pradesh 87% 30% 3% 28% -48% Jammu & Kashmir 216% 5% 50% -104% -68% Jharkhand 15% 54% 41% -2% -8% Karnataka 31% 3% 84% -2% -15% Kerala 115% 0% 17% -9% -23% Madhya Pradesh 70% 0% 28% 21% -19% Maharashtra 69% 3% 15% 7% 6% Manipur -6% -58% -225% 194% 194% Meghalaya 14% 2% 36% 31% 16% Mizoram ( R ) 41% 0% -2% 32% 29% Nagaland -60% -18% -63% 132% 108% Orissa 33% 32% 34% 1% 1% Punjab 61% 0% 32% 23% -15% Rajasthan 25% 10% 46% 17% 2% Sikkim 461% 0% 4% -161% -205% Tamil Nadu 73% 0% 28% 14% -15% Tripura ( R ) -2086% 244% 1649% -55% 348% Uttar Pradesh 11% 27% 59% -3% 6% Uttarakhand 64% 8% 20% 16% -8% West Bengal 42% 33% 28% 1% -3% 21

22 Top 10 & Bottom 10 - Power Index Top 10 States Rank Base Year Last Year Goa Goa 2 Himachal Pradesh Haryana 3 Tamil Nadu Himachal Pradesh 4 Haryana Tamil Nadu 5 Punjab Andhra Pradesh 6 Kerala Punjab 7 Jammu & Kashmir Gujarat 8 Sikkim Karnataka 9 Karnataka Chattisgarh 10 Uttarakhand Maharashtra Bottom 10 States Rank Base Year Last Year Jharkhand Mizoram 27 Uttar Pradesh Manipur 26 Bihar Jharkhand 25 Manipur Nagaland 24 Assam Bihar 23 West Bengal Assam 22 Rajasthan Tripura 21 Nagaland West Bengal 20 Arunachal Pradesh Uttar Pradesh 19 Tripura Madhya Pradesh 22

23 Key Observations Power Index Goa ranks first in the base as well as last year though the index value has remained unchanged 6 of the top ten states still remain in the top ten (J&K, Kerala, Sikkim and Uttarakhand being replaced by Andhra, Gujarat, Maharashtra and Chattisgarh) Performance of BIMARU States has improved. Except Madhya Pradesh, all have gained ranks. In terms of CAGR ranks, BIMARU states figure in the top half of the table with Uttar Pradesh being the best performer and Madhya Pradesh being the only state to figure in the bottom half of this table Performance of North-Eastern states has been disappointing. Exceptions are Arunachal Pradesh and Meghalaya (to some extent). All figure in the bottom half of the rank table in 2010 Performance of Southern States has been mixed. Andhra Pradesh gained 8 ranks, Kerala lost 5 ranks. Karnataka and Tamil Nadu have gained and dropped 1 rank respectively. Andhra Pradesh tops the CAGR rank table in the Power Index 23 whereas the other three figure in the middle

24 Telecom Index Variables Urban Teledensity (1/3 rd weight) Rural Teledensity (1/3 rd weight) VPTs/No. of Villages (1/3 rd weight) 24

25 Telecom index

26 Telecom Index Index has grown between 4.7 times (North East) and 2.63 times (Kerala). Average for India is 3.33 times. 26

27 Contribution to growth in telecom index Telecom growth is now rural driven 120% 100% 80% 60% 40% 20% 0% -20% % of villages with VPTs Urban Teledensity Rural Teledensity Rural teledensity in India is 24 (ranges from while the urban teledensity is 120. Urban teledensity ranges from 91 in M.P. to 298 in H.P. The rural teledensity range is between 15 (Bihar) to 52 in H.P. 27

28 Top Movers on Telecom Index Improvement Decline State Rank Change State Rank Change Rajasthan 6 Assam -4 J & K 5 Karnataka -3 North East 4 Andhra Pradesh -3 Bihar -3 West Bengal -2 Orissa -2 These states have move >1 place up or down 28

29 Fastest Growers - Telecom Index 50% The Fast Five 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% North East Rajasthan J & K Maharashtra Haryana 29

30 Key insights Telecom Index The North Eastern group of states has been an outperformer on this index recording the highest CAGR of 47% and improving by 4 positions from 18 to 14 The growth in the BIMARU States has been largely driven by the Rural Teledensity Subindex which has contributed anywhere between 62% (in case of Bihar) to 74% (in case of Rajasthan) Rajasthan has gained 6 places, the most among all circles and is 7 th in It was also the second fastest CAGR grower among all circles at 43% Uttar Pradesh has gained 1 place whereas Madhya Pradesh and Bihar have both dropped by 1 and 3 places respectively and are at the 18 th and 17 th position respectively in All of these states grew between 30-33% CAGR Dispersion from Himachal Pradesh (top state in the base year) has widened in case of all states Southern states have given mixed performance Kerala and Tamil Nadu have maintained their places at 2 and 4 respectively whereas, Andhra Pradesh and Karnataka have lost 3 places each and appear at place 11 and 9 respectively The Index is driven by the Rural Teledensity which has contributed anywhere between 70% (for Karnataka) to 85% (for Tamil Nadu) Dispersion from Himachal Pradesh (top state in the base year) has widened in case of all states. Kerala in the base year had an index value equivalent to Himachal Pradesh but has it lower by one-fifth that of Himachal Pradesh in the last year With the exception of Tamil Nadu (which occupies the 6 th position in CAGR ranks growing at 37%), all Southern States figure in the bottom half of the CAGR rank table

31 Road Index Variables Lane Length of National Highways per unit of Geographical Area (1/3 rd weight) Length of Rural Roads per unit of Geographical Area (1/3 rd weight) Habitations Coverage in % (1/3 rd weight) 31

32 Road Index Values

33 Road Index Values

34 Contribution to Growth of Road Index 120% Rural roads are driving the growth in rural states 100% 80% 60% 40% 20% 0% -20% % of habitations connected Rural roads by population NH-LaneKm by population Note: In above figure, rural states refer to those with 75% or more rural population 34

35 Top Movers on Road Index Improvement Decline State Rank Change State Rank Change Rajasthan 5 Meghalaya -7 Gujarat 4 Jharkhand -5 Assam 3 Kerala -2 Uttar Pradesh 2 Nagaland -2 West Bengal 2 Manipur -2 Himachal Pradesh 2 These states have move >1 place up or down 35

36 Fastest & Slowest Growers - Road Index Fastest Growers Slowest Growers State CAGR State CAGR Arunachal Pradesh 10% Kerala 1% Uttar Pradesh 7% Meghalaya 1% Madhya Pradesh 6% Goa 1% Haryana 5% Mizoram 1% Chattisgarh 5% Nagaland 1% 36

37 Top 10 & Bottom 10 - Road Index Top 10 States Rank Base Year Last Year Goa Tamil Nadu 2 Tamil Nadu Goa 3 Punjab Punjab 4 Kerala Uttar Pradesh 5 Haryana Haryana 6 Uttar Pradesh Kerala 7 Tripura Tripura 8 Nagaland Karnataka 9 Karnataka West Bengal 10 Manipur Nagaland Bottom 10 States Rank Base Year Last Year Arunachal Pradesh Jammu & Kashmir 27 Jammu & Kashmir Arunachal Pradesh 26 Madhya Pradesh Chattisgarh 25 Chattisgarh Sikkim 24 Sikkim Madhya Pradesh 23 Rajasthan Mizoram 22 Mizoram Jharkhand 21 Gujarat Meghalaya 20 Maharashtra Maharashtra 19 Assam Uttarakhand 37

38 Key insights Road Index Barring Arunachal Pradesh andassam, the North Eastern States have not done so well. Both Arunachal Pradesh and Assam have gained in ranks and are the 1st and 9th fastest growers in CAGR. All other states in this basket appear in the last 8 in terms of CAGR ranks Arunachal Pradesh and Meghalaya s growth has been driven by the National Highways sub-index whereas, in all the other states, the rural sub-indices have driven growth Dispersion from Goa (top state in the base year) has widened in the case of Meghalaya and Mizoram, remained constant in the case of Nagaland and narrowed in all other cases The performance of BIMARU States has been good with each of the states having moved up in ranks. Rajasthan moved up the most i.e. 5 places and Bihar the least by 1 place All four states figure in the top eight states in ranking the CAGR growth, with Uttar Pradesh being the best performer within the pack The contribution to growth in Uttar Pradesh and Bihar has come equally from the National Highways Index as well as the Rural Indices, whereas in the case of Madhya Pradesh and Rajasthan, the rural indices have been the bigger contributors (60% for Rajasthan and 70% for Madhya Pradesh) The performance of Southern States has been mixed with Tamil Nadu topping the road index in 2010 gaining 1 rank over the period. Karnataka too gained 1 rank but on the other hand, Andhra Pradesh has dropped 1 rank and Kerala has dropped 2 Kerala is at the bottom in CAGR rank and Tamil Nadu (the best performer in this pack is at 6 th position) With the exception of Kerala, all other states derive majority (close to 70%) of their growth from the contribution of National Highways Dispersion from Goa (top state in the base year) has narrowed in all states except Kerala where it has increased by 1 point. Tamil Nadu has been an exception. 38

39 Port Index Major Ports 140 Non-Major Ports 120 Total Ports Non-Major Ports have clearly dominated the growth of the sector 39

40 Airport Index Airport Index

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