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1. Executive Summary

This is the ‘Executive Summary’ of the report ‘Project Financing and Implementation Strategy - Dehradun Cricket Stadium’. The executive summary intends to provide in brief the contents of the report, specifying the objectives of the study, the methodology followed, the outputs, and finally the recommendations and action plan.

1.1 Project Background

The Directorate of Sports, Government of Uttarakhand intends to develop an international cricket stadium with a sports complex in Dehradun, in order to improve the available sports infrastructure in the city and to promote ancillary developments.

About the Stadium Plan The stadium is planned to be developed as a state-of-art, modern international standard Cricket Stadium at Raipur, Dehradun. The following are the guiding principles for station designing:

� To create a Sports, Entertainment and Tourist destination for the state and region, to serve the community at large

� To provide an “Iconic” stadium

facility that reflects the growth of Sports in Uttarakhand and is a showcase for the sports and the state nationally and internationally.

� To provide a facility that can be utilized all year for a number of events, in order to maximize opportunity for revenue generation and sustainability.

� To provide a highly cost effective, safe and low maintenance facility.

� To provide a facility that will allow the State of Uttarakhand to successfully host international sports events

The stadium is located 8 km. from Dehradun city and 30 km. from the Jolly Grant airport.

Current Status The state of Uttarakhand has formed a society named “Rajiv Gandhi International Cricket Stadium and

The team ascertained that the total corporate grants required for the proposed facility is `75 crores.

Bundle 3 Objective The objective of bundle 3 is to fund the capital expenditure for clubhouse and stadium enhancements, and to meet operational expenditure of the stadium. The cash outflow pattern for the capital expenditure is provided as below:

Strategy The private player is required to arrange funding for `66 crores. Private Player can generate upfront proceeds from selling of club membership to the tune of `27

crores. Of this, the private player can use up to `20 crores after payment of taxes towards funding the capital expenditure. The remaining funding shall be arranged in a debt equity ratio of 2:1. The table below describes the funding schedule for the capital expenditure.

The private player shall generate revenues from the following recurring sources of revenues. The table below describes the potential revenues over a period of next 30 years.

The private player shall incur the following expenditure over a period of next 30 years.

Based on the above calculations, the private developer shall be able to generate equity IRR of 15.1%. An equity return of 15.1% is decent to

attract a private developer to run this facility.

1.4 Recommended Action Steps

Action strategy is prepared keeping in mind the timing of cash outflows and availability of potential sources of funding. The chart below describes the phase-wise cash outflow pattern of the entire capital expenditure for the stadium.

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3. Scope of the Engagement

The section provides a broad scope of the engagement of the project. The scope of the project can be summarized into the following categories:

� Developing a Project Plan

� Ascertaining the Financial Viability

� Finalization of Project Structure and Financing Plan

� Identification of Risks and Mitigation Strategy

� Preparation of Detailed Business Plan

� Assistance in Project Marketing and search of Investment Partner

� Details of each of the above mentioned categories are provided in the following subsections.

3.1 Developing a Project Plan

Following are the key activities performed while preparing a detailed project plan.

� Market analysis and assessment of demand - supply dynamics to determine potential demand drivers for the sports stadium.

� Benchmarking case studies to analyze best practices for successful implementation of similar projects.

� Estimation of in-stadium and outstadium revenues to ascertain potential revenues.

� Assessment of real estate revenue potential as an add-on component to augment the project revenues.

� Estimation of capital expenditure to build the facility and operational expenditure to run and maintain the facility.

3.2 Ascertaining the Financial Viability

Once the project plan was finalized, the next step was to assess the financial viability of the project. The financial viability has been ascertained by carrying out the following activities:

� Cash flow projections over the project life to ascertain the cash inflows and outflows from the project.

� Financial and ratio analysis to determine project strengths.

� Financial structuring of the project and determination of sources of finance at different intervals.

� Assessing project sustainability.

3.3 Finalization of Project Structure and Financing Plan

After finalization of the financial model, the team worked towards

finalization of the project structure and financing plan. The detailed project structure provides:

� Determination of funding support from the government as central/ state viability gap funding

� Other grants from state government to support funding

� Grants from corporates as a part of corporate social responsibility

� Cross-subsidization of the capital expenditure through support real estate development

3.4 Identification of Risks and Mitigation Strategy

Once the project structure was frozen, due-diligence was carried out to identify the potential risks that may arise in the due course of project implementation, and to prepare adequate strategies to address and mitigate such risks. The task involved the following activities:

� Identification of potential risks.

� Quantification of identified risks

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4. Benchmarking Studies

As a first step towards business plan preparation, the team identified a set of national and international stadia. The section details out the study of comparable facilities, and lessons drawn out of study of these facilities. The objective of this exercise was to analyze the funding and revenues strategies followed in the comparable facilities, and analyze their relevance for the proposed facilities. The comparable facilities comprises of both national and international facilities.

4.1 National Benchmarks

The team has studied the following existing facilities in India

� Eden Gardens; Kolkata, West Bengal

� Rajiv Gandhi International Cricket Stadium; Hyderabad, Andhra Pradesh

� M. Chinnaswamy Stadium; Bengaluru, Karnataka

� Feroz Shah Kotla; Delhi

� Maharashtra Cricket stadium; Pune/ Mumbai, Maharashtra

� Sardar Patel Stadium; Ahmedabad, Gujarat

� Wankhede Cricket Stadium; Mumbai, Maharashtra

� Vidarbha Cricket Stadium; Nagpur, Maharashtra

� Roop Singh Stadium; Gwalior, Madhya Pradesh

� D.Y Patil Stadium; Mumbai, Maharashtra

� ACA - VDCA Stadium; Vishakhapatnam, Andhra Pradesh

� JSCA International Cricket Stadium; Ranchi, Jharkhand

� Barabati Stadium; Cuttack, Orissa

� Punjab Cricket Association Stadium; Ajitgarh, Punjab

In addition, the team has also analyzed the funding structure of proposed outdoor stadium at Thiruvananthapuram, Kerala.

Existing Facilities The detailed analysis of each of the above mentioned facility is provided in the annexures.

However, the key observations drawn out of the study are noted as below:

� Majority of these facilities are public and operated by the respective regional government

� D.Y. Patil Stadium is funded and managed by D.Y. Patil Sports Academy, a part of D.Y. Patil group

� Most of the stadia are old, and have been constructed prior to 2005.

� Only few stadia, i.e. Roop Singh Stadium, JSCA International Cricket Stadium, Vidarba, and D.Y. Patil cricket stadium were constructed post 2008.

� The new stadia developments are supplemented by the support real estate that can be utilized to generate upfront/ regular

revenues for the project. This can be utilized either for funding the capital expenditure or meeting regular expenditure.

Proposed Outdoor Stadium at Thiruvananthapuram, Kerala An outdoor stadium is proposed for the 35th National games to be hosted in Kerala on a 30 acre land parcel at Karyavattom, Trivandrum accessible from NH-47. The proposed development is envisioned to include a 50,000 seat cricket/football stadium, indoor sports arena, convention & exhibition center and retail cum F&B facilities. After the National games, the sports complex is expected to host international and national cricket/football games, league matches, collegiate sports events, concerts and other entertainment events.

The stadium is executed on a PPP contract, wherein a private player is selected to execute the contract. The private player shall be responsible for construction of the entire facility, and will run the operations on the facility.