SERVICES

Infrastructure Development: - Infrastructure development is most potential area for the development of industries and the growth of the country. Infrastructure is another area of potential weakness. Inadequate infrastructure is a key constraint to our economic progress.

The road transport bears 65 per cent of freight burden & 80 per cent of passenger traffic while the other modes of transportation (rail, water, air) have their own limitations, only roads connect 70 per cent of the rural population which is otherwise totally cut off with urban India.

Roads/Highways Construction: - National Highway (NH) network suffers from a number of deficiencies that must be greatly improved. A large section has inadequate road pavement thickness. Other deficiencies are inadequate capacity, poor riding quality, weak and distressed bridges/culverts, congested city sections, too many railway level crossings, lack of wayside amenities and weak road safety measures and a number of Highways passing through congested cities and towns. About 20 per cent of the National Highways need widening from single to double lanes, about 70 per cent of the two-lane roads have to be strengthened and selected corridors on National Highways need conversion to expressways.

The position of State Highways (SH) is no better; if anything, it is even more unsatisfactory. Between 70 to 80 per cent of SH network is of narrow single lane width as against 20 per cent for the NH network. About 60 per cent of the SH network thus needs widening besides other improvements in respect of surface condition, geometric, strength of bridges etc.

Highway construction has been company’s core business activity. PATH (I) LTD. has successfully completed a number of prestigious National highways and State highways projects. The projects has been taken as challenging jobs and completed in record time along with quality work. The company takes up all types of highways projects on contract as well as on BOT (Built Operate & Transfer) basis.

BOT: - BOT stands for Built Operate and Transfer. Road privatization is a well-accepted concept all over the world.

Privatization of the road construction industry would have sounded ridiculous. Recently however the Ministry of Surface Transport has taken rapid strides in the direction by opening many areas for privatization. This according to Ministry of Surface Transport came only as a result of the huge quantum of funds needed for upgrading of existing roads and building of new roads.

The first step was taken in 1992-93 when the National Highway Act was amended which allowed even the government to charge too on certain notified sections of the highway. Later in the year’s time the act was again amended to involve the private sector in the construction, maintenance and operation of National Highways. Under this amendment the private sector can now come under BOT (Built Operate Transfer) or BOOT (Built Own Operate Transfer).

In BOT projects the entrepreneurs are required to finance the construction operation and maintenance of the facility up to a specified period as specified as approved by the authority and collect fees on behalf of the government toward cost & profit. The said construction or road shall become property of the government after the said specified period.

Toll Collection: - The promoters have been in the business of toll collection for the past four generation. All four generations have been taken the contract of toll collection on Narmada River at Khalghat on A.B.Road N.H.3 and at Badwaha on Indore Khandwa Road several times in the past 50 years. All the three directors have successfully carried out the following toll collection contracts in the period from 1984-1989 in the partnership with others.

DETAILS OF OTHER BUSINESSES

PATH and its promoters acquired TAR Infrastructure Ltd., a running BOT company for RS. 65.00 Million in November 2004.

TAR has completed the Road BOT project 72 Kms. of Banswara Udaipur Road SH – 32 for Rajasthan PWD and is collecting toll on it. The balance concession period is 4 ^1/2 years.

FUTURE PLANS OF THE BUSINESS

Carrying out major Highway Infrastructure Projects with own capital independently as well as in Joint Venture with large Multinational / Indian Companies.

PATH has taken a lead by entering the highway management and toll collection business.

NHAI has decided to provide such facility on all Golden Quadrilateral and North-South and East-West Corridor sections. PATH has the potential to be a major player in the field.

Having a rich experience of Toll Collection, PATH plans to acquire completed projects and manage for Balance Concession Periods.