0. Harsh Dhingra India Infra Opportunity –
Accelerating investments - Railway Segment A perspective by Bombardier Transportation
Harsh Dhingra
Chief Country Representative,
Bombardier Transportation , India
Sept ‘2016

1. Overview of Bombardier
Indian Railways – Opportunity

2. BOMBARDIER Overview
Bombardier is the world’s largest manufacturer of both planes and trains, with a worldwide workforce of 74,000* people.
Bombardier is headquartered in Montréal, Canada. Our shares are traded on the Toronto Stock Exchange (BBD) and we are listed on the Dow Jones Sustainability World and North America indexes. In the fiscal year ended December 31, 2015, we posted revenues of $18.5 billion USD.
* As at December 31, 2015, including contractual and inactive employees

3. Our Solutions to Improve Public Transport in india
Proven technologies MOVING MILLIONS ACROSS THE WORLD
In addition to Rolling Stock, Bombardier can also support India with Turnkey projects by local manufacturing of Propulsion equipment and Bogies along with supplying Signalling systems and Servicing the transit systems to improve life cycle costs
MOVIA metro car
ZEFIRO high speed trains
INNOVIA Monorail
INNOVIA APM for Urban and airport transportation
FLEXITY trams and Light Rail Vehicles (LRT)
PRIMOVE
e-mobility solution
TRAXX
Electric locomotives
Intercity and Commuter Trains
MOVIA, INNOVIA, ZEFIRO, TRAXX, FLEXITY and PRIMOVE are trademarks of Bombardier Inc. or its subsidiaries .

4. Delivered more than 1200 Bogies to
Make in India for India
Delivered Traffic Management System for Mumbai Suburban Western and Central Railways and delivering signalling solutions for Delhi Metro Line 5& 6 with extensions and Line 7
Transfer of Technology for Bombardier’s WAP5 and WAG9 electric locomotives in 1993 and continuous Propulsion and Control Systems supply to Indian Railways for tractions and communication devices
578 metro cars manufactured and delivered from Savli site for Delhi Metro. Manufacturing for 162 metro cars to Delhi Metro started
Delivered more than 1200 Bogies to
Delhi Metro and will deliver around 330 more Bogies to Delhi Metro for 162 car order
Delivering Propulsion and Non Propulsion equipment for Mumbai suburban trains

5. BOMBARDIER TRANSPORTATION Committed to India
1. Presence in India
Registered and Corporate office in New Delhi
Railway Vehicle Manufacturing Site in Savli, Gujarat – Established in 2008
Propulsion and Control Site in Vadodara, Gujarat – Established in 1997
Rail Control Solutions Centre in Gurgaon, Delhi NCR – Established in May 2014
Rail Control Solutions EAPD Centre in Gurgaon, Delhi NCR – Established in Nov’15
Engineering centre in Hyderabad, Andhra Pradesh in JV – Established in 2003
IS/IT hub in Gurgaon, Delhi NCR – Established in November 2015
Bogie Technical Centre, India – Established in January, 2016
Project offices in New Delhi, CLW, Chennai and Mumbai (Supports Indian Railways, DMRC & MRVC projects)
2. Over 2000 employees in India
3. Key Partner to Indian Railways and Mass Transit operators in India
Rail Control Solution Centre, EAPD Centre and IS India hub, Gurgaon, Delhi NCR
Maneja Site, Vadodara
Engineering Centre and Bogie Technical Centre, Hyderabad
Savli Site, Vadodara

6. BOMBARDIER TRANSPORTATION Foreign Direct Investment in India ( Investment - Money , Technology Manpower , Skill and Vendor Base )
Investment
INR 2.3 billion investment for setting up recent state-of-the-art facility at Savli, Gujarat in 2007
In the last two decades, invested around USD 100 million in setting up and expanding at our two manufacturing sites, Rail Control Solutions Centre (signalling) and an engineering centre
Indigenisation
Our commitment and investment has attracted other world class suppliers and specialist sub-contractors to India making our local content and sourcing around 70% from India itself.
Developing Local Talent and Skills
With all our employees fully trained in specialized manufacturing processes, our sites in India have evolved into truly global production and engineering hubs, meeting consistently high international quality standards.
Local Capabilities and Expertise
Bombardier is the first foreign multinational company with the capacity to manufacture complete railway vehicles in India
Includes bogies, carbody production units, a final assembly area, signalling systems, propulsion and non propulsion equipment and state-of-the-art rail equipment along with local engineering capabilities.
Investing in India for over 5 decades in manufacturing facilities, proven technologies, local engineering , building local supplier base and most important local talent
Bombardier transportation

7. Indian Railways - Facts and Opportunity
Lifeline of the nation
Source IR bud 2015

8. Indian Railways – A perspective
Largest transportation and logistics network of the world which runs 19,000 trains
12,000 trains to carry over 23 million passengers per day
7,000 freight trains per day carrying about 3 million ton of freight every day
8000 stations
Amongst the top 4 railway network in the world
Share of Railways in India GDP is around 1%
Considerable under-investment in last several years resulted in
Capacity augmentation has suffered
Technological improvements has slowed down
Customer satisfaction and Safety affected
If Indian Economy has to 8 % - Indian railway system requires 10% growth or else it will create a bottleneck
Indian Railways -
Lifeline of the nation
Source IR budget

9. Indian Railway– Network - Capacity utilisation
Line capacity utilization above 100 % impacts
Average speed of freight / passenger traffic
Freight – 25kmph
Passenger kmph
Passenger express – 90 kmph
Introduction of new trains
Capacity Constraints
65 % of high density network is saturated
40% of IR network is running at over 100 % capacity
Introduction of DFC - dedicated freight corridors shall create separate lines on main routes with
Traffic de- congestion on main routes
Increase of average speed by
Freight on DFC - up to 80 kmph
Passenger express – upto 130kmph
Passenger - upto 70 kmph
Introduction of new trains
New Technology for rolling stock and Signalling

10. Indian Railways – Investment plans
PROPOSED INVESTMENT PLAN ( )
Item
Amount (Rs in crore)
Network Decongestion (including DFC, Electrification, Doubling including electrification and traffic facilities)
199,320
Network Expansion (including electrification)
193,000
National Projects (North Eastern & Kashmir connectivity
39,000
Safety (Track renewal, bridge works, Bridges and Signaling &Telecom)
127,000
Information Technology / Research
5,000
Rolling Stock (Locomotives, coaches, wagons – production & maintenance)
102,000
Passenger Amenities
12,500
High Speed Rail & Elevated corridor
65,000
Station redevelopment and logistic parks
100,000
Others
13,200
TOTAL
Rs 8,56,000 Cr
Let us keep focus on this investments
Source IR bud 2015

11. Foreign companies are ready to invest with technological products
Indian Railways – Foreign Direct Investment 100% Allowed
FDI is permitted in the following activities of the Railway Transport sector:
Construction, operation and maintenance of the following:
(i) Suburban corridor projects through PPP,
High speed train projects,
Dedicated freight lines
Rolling stock including train sets, and locomotives or coaches
manufacturing and maintenance facilities,
Railway Electrification,
Signaling systems,
(vii) Freight terminals,
(viii) Passenger terminals,
Infrastructure in industrial park pertaining to railway lines or sidings
including electrified railway lines and connectivity's to main railway line
Mass Rapid Transport Systems.
Foreign companies are ready to invest with technological products
Source IR bud 2015

12. Indian Railways – Foreign Direct Investment Opportunity and Challenges
FDI - Foreign Direct Investment may bring in
Investment in India
Opportunity for Private sector to partner with IR
Promote “ Make in India “ initiative
Support Capacity augmentation / Network expansion and Technological up gradation of Railways
India as a market which cannot be ignored by MNCs
Challenges
Funding
IR continuous dependence on Central budgetary support
( Inr out of Inr 100,000 cr required)
Long term debt raising from domestic as well as Multilateral / Bilateral financial institution
Success of PPP Model ???
Annuity model of project execution with high interest rates in India
Thin line of difference between FDI and Privatization
Land availability for new projects
Source IR bud 2015

13. Indian Railways – Opportunities in Sectors
Following areas are expected to have excellent opportunities for Growth
Rolling stock manufacturers - Locomotives / Coaches / Wagons /
Electric Multiple units
Technology Suppliers in High Speed Segments
Signaling System
Track Laying
Railway Electrification
Investors who can undertake Station developments
Railway Turnkey project executors
Railway Equipment suppliers
Indian Industry shall invest in Capex and ready to accept the challenge by Collaboration and Cooperation
Source IR bud 2015

14. Indian Railways – Indian Industry Opportunity and Challenges
Expected High demand
Capex Investment
Opportunity for Private sector to partner with IR
Promote “ Make in India “ initiative
Support Capacity augmentation / Network expansion and Technological up gradation of Railways
Challenges
Funding
IR able to provide continuous funds
Success of PPP Model ??? Rewrite - Risk Reward Mechanism
Annuity model of project execution with high interest rates in India
Land availability for new projects
Procurement model to change from First Acquistion cost to Life Cycle cost
Source IR bud 2015

15. Indian Railways - Getting Ready for the Future
“ “ “ Indian Railways has a glorious past, a turbulent present and a bright future. It is a giant emerging out of a deep slumber.
Its network is congested and finances are not easy to come by. Resources for development and replacement are stressed. But, the spirit is still alive.
To make an attempt at resurrecting itself, Indian Railways has drawn up an ambitious five year action plan. The realization is there that if the vicious cycle of under - investment is to be turned into a virtuous cycle of prosperity; crutches of support will have to be abandoned. Indian Railways will have to generate its own resources for its development.
Indian Railways can lead the country to greater heights of accomplishment..
By 2020, IR would make all efforts towards delivering safe and punctual services, increase average speed by 50% and increase loading to 1.5 billion tonnes. “ “ “
Source – IR whitepaper 2015
Industry is positive on the outlook on Rail opportunities and so is the investors who believe in India Growth story