Draft CP 24.05.2016 Celebi-Delhi-Cargo 3aera.gov.in/upload/uploadfiles/files/pn/Annex 1...

Draft CP 24.05.2016 Celebi-Delhi-Cargo 3

1.7 The online forms and the supporting documents describe all the calculations behind projections for the building blocks of aggregate revenue requirements for the second control period.

1.8 The Authority had approved regulation of tariffs under the Light Touch Approach for the first control period vide Order No. 1412011-12 and we request the Authority to continue with the same approach.

1.9 Considering that we are operating under the "Light Touch Approach", we request AERA to maintain complete confidentiality of the contents of the MYTP.

1.10 Further, in accordance with Section 7.4 of the Guidelines, please also find enclosed Form B and Form 14(b) along with evidence of stakeholder consultation.

1.11 Celebi would like to bring to Authority's attention that it is fully committed to provide seamless experience to users of the cargo terminal. Celebi has infused significant capital investment to renovate and modernize the complete infrastructure of the brown field terminal in the past and has brought several stateof-the art equipment. It has continued to enhance the operational efficiency of the existing processes and systems to reduce the cargo turn-around time that has resulted in a significant time and cost savings for its customers.

1.12 Celebi is also planning to invest a significant amount of capital (Le. INR 76.9 Cr) during the second control period towards enhancing the operational efficiency of the terminal and streamlining the business processes . Some of the key investments include:

L Automated Storage and Retrieval System (ASRS)

ii. Planned replacement of IT software and packages:

a. New Cargo Handl.ing Software

b. SAP Enterprise Resource Planning Package

iii. Expansion of domestic cargo terminal

iv. Installation of Solar Power Plant

v. Euro pallets, tabs and electronic gadgets

1.13 However, the intense competition at the Indira Gandhi International Airport has deterred Celebi from levying tariffs which would have been permissible under the single till regulatory approach. As a result, Celebi has a revenue shortfall of INR 72.6 Cr. from the first control period, which needs to be recovered in the subsequent years.

1.14 Further, contrary to earlier expectations of growth, the cargo volume handled by Celebi during the first control period were considerably lower as compared to projections in MYTP FY 2012 - FY 2016.

Table 1: Actual and Projected traffic for international and domestic cargo traffic for Celebi during the first control period

Cargo Traffic (MT) FY 12 FY 13 FY 14 FY 15 FY 16 Actuals International 371,062 348,490 325,506 352,880 317,441 Domestic 35,779 45,368 Total 371,062 348,490 325,506 388,659 362,809

Regd. Off. : Room No. CE-05, First Floor, Import Building II, Internationsl Carg o Terminal, IGIAirport, New Delhi - 110037, INDIA Tel: +91-11-25601300, +91-11-25601310, +91-11-25601000 (exchange) Fax: +91-11 -25601320

CIN No. U74900DL2009FTC191359

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Projected (for 1st control period) International 407,681 425,918 415,717 398,546 339,129 Domestic 43,056 71,443 105,372 145,702 161,174 Total 450,737 497,361 521 ,089 544,248 500,302 Shortfall in Traffic International -36,619 -77,428 -90,211 -45,666 -21,688 Domestic -43,056 -71,443 -105,372 -109,923 -115,806 Total -79,675 -148,871 -195,583 -155,589 -137,493

As a result of the lower cargo volume at the airport, competition and lower tariff, Celebi has not been able to generate sufficient returns on its investments. This is evident from the profit margins of Celebi from the first control period, as shown below:

Table 2: Profit Margins from the first control period (FY 2012 - FY 2016)

.' Parameter ' FY 12 FY 13 FY 14 FY 15 FY 16

Operating profit / EBITDA (INR Cr)

36.1 44.6 27.5 59.8 41.8

EBITDA Margin (%) 12.9% 16.6% 10.2% 18.9% 13.6%

Net Profit 10.1 3.9 0.3 20.1 11.9

Net Profit Margin (%) 3.6% 1.5% 0.1% 6.3% 3.9%

1.15 Celebi would also like to submit to the Authority that the shortfall in the projected revenues in the first control period, if not recovered, would have a considerable impact on the financial viability of Celebi. Celebi has not been able to generate returns commensurate to the investments made by it for modernizing the terminal.

1.16 Taking all the above reasons into careful consideration, Celebi proposes an increase of 12% in the city side tariffs (i.e. applicable on PDA / CHA) over previously approved tariffs.

1.17 Celebi has undertaken stakeholders' consultation process for the proposed tariffs for FY 2016-17 and has provided evidence of the same with this Annual Tariff Proposal for FY 2016-17. Celebi has made earnest efforts to address any concerns raised by the stakeholders and to provide just and fair rationale for any proposed revision in the tariffs.

1.18 Celebi would also like to commit in this submission that it would continue to honor the exist ing long-term agreements which have been signed with various customers in the past and are valid for FY 2016-17. The existing tariffs and other terms and condi t ions for such existing contracts would continue to remain valid for FY 2016-17 unless mutually agreed by Celebi and the customer to revise the same.

1.19 We hope that AERA would accept and approve our tariffs proposed in this Annual Tarif f Proposal for FY 2016 - 17.

1.20 Please find enclosed the copies of the online submitted forms for MYTP, ATP and ACS along with the respective attachments for each form.

Thanking you,

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Regd. Off. : Room No. CE-05, First Floor, Import Building 1I,Int ernationai Cargo Ter minal,lGI Air por t, N ew Delhi - 110037, INDIA Tel: +81-11-25601 300, +8 1- 11-2 5 6 0 13 10 , +8 1-11 -2 5 6 01 0 0 0 (excha nge) Fax: +81-1 1-2 560 13 2 0

CIN No. U74800DL2008FTC181358


Yours sincerely ,

For Celebi Delhi Cargo Ter:..mi nj:ll Management India Pvt. Ltd

Email: ramesh. [email protected]

Tel : +91 11 47630900

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C;:ELEBI OELHI CARGO TERMINAL MANAGEMENT INOlA PVT. LTO. E-Mail. : info@celebiaviat ion.in

Regd. Of f. : Room No . CE-05, Firs t Floor, Impor t Building II, Int er nat ional Cargo Ter minal, 181 Airport, New Delhi - 110 0 37, INDIA Tel : + 81-1 1- 256 0 13 0 0 , +81-11 -25601310, + 81-11-256 01 0 0 0 (exchange) Fax: +81-11 -25601320

CIN No. U74 800DL20 08FTC 18135 8 Draft CP 24.05.2016 Celebi-Delhi-Cargo 6

mailto:[email protected]


2. Enclosures # ~orm Number Description Supporting documents for MYTP FY 2017 FY 2021 (Online Forms and Celebi's Calculations)

, I.

1 Form A Submission Letter for Multi - Year Tariff Proposal 2 Form F1 (a) Historical and proposed Aggregate Revenue Requirement 3 Form F1(b) Competition assessment 4 Form F2 Historical & projected balance sheet 5 Form F3 Historical and projected profit & loss account 6 Form F4 Historical and projected cash flow statement 7 Form F5 Cost of equity and post-tax FRoR forecast 8 Form F6(a) l.oan master 9 Form F6(b) Summary statement of interest and finance charges 10 Form F7 Format for identifying initial Regulatory Asset Base 11 Form F9 Forecast and Actual Roll-forward RAB 12 Form F10(b) Forecast and Actual Roll Forward RAB

13 Form F10(c) Year wise capital expenditu re financing plans for next 10 years

14 Form F10(e) Additional capital projects summary 15 Form F11 (a) Employee strength 16 Form F11 (b) Payroll related expenditure and provisions 17 Form F11(c) Administration and general expend iture 18 Form F11(d) Repair and maintenance expenditure 19 Form F11 (e) Utilities and outsourcing expenditure 20 Form F11 (f) Other outflows 21 Form F11 (g) Current assets and liabilities 22 Form F12(a) Historical and projected cargo volumes in tonnes 23 Form F13(a) Historical tariffs and revenues from Regulated Services

24 Form F13(b) Historical and projected revenues from services other than regulated service

25 - Shortfall Calculations Supporting documents for ATP FY 2016 - 2017 (Online Forms and Celebi's Calculations) 26 Form B Submission Letter for Annual Tariff Proposal 27 Form F14(b) Annual Tariff Proposal for tariff year 1 (FY 2016 - 17) 28 .- Evidence of stakeholder consultation 29 .. Presentation used during stakeholder consultation 30 - Minutes of Meeting for stakeholder consultation

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I;:ELESI CELHI CARGO TERMINAL MANAGEMENT INCIA PVT. LTC. E-Mail. : [email protected]

Regd . Off . : Room No . CE-0 5, First Floor, Impor t Building II, International Cargo Terminal, IGIAirp or t, New Delhi - 11003 7, INDIA Tel: +91 -11 -25601300, +91 -11 -25601310, +91 -11 -25601000 (exchan ge) Fax: +91-11-256 0 13 2 0

CIN No . U749 00DL2009FTC1 91359



3. Supporting Documents In addition, the following supporting documents are being provided as requested in the

tariff determination guidelines 2011 :

# Document I 1 DIAL Concessionaire Agreement

Audited Financial Statements 2 3 Loan Agreements

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CELEBI OELHI CARGO TERMINAL MANAGEMENT INOlA PVT. LTO. E-M ail. : info@celebiaviat ion.in

Regd. Off. : Room No. CE-0 5, Fir s t Floor, Import Bu ilding II, Internat ional Car go Terminal, 181 Air port, New Delhi - 110037, INDIA Tel ; + 91 -1 1-2 5601300, +91 - 11-2 56013 10, +91 - 11-256 0 100 0 (exch ange) Fax; +91 - 11-25 6 01 3 2 0

CIN No. U749 00DL2009FTC191359


4. Form A (To be printed on Celebi letterhead) BEFORE THE AIRPORTS ECONOMIC REGULATORY AUTHORITY OF INDIA AT NEW DELHI

SUBMISSION OF MULTI YEAR TARIFF PROPOSAL FOR AND ON BEHALF OF:

Mis Celebi Delhi Cargo Terminal Management India Pvt. Ltd International Cargo Terminal, Indira Gandhi International Airport, New Delhi - 110037

I, Ramesh Mamidala, aged 47 years, resident of F-1002,10TH Floor Celebrity Tower, Ansals Palam Vihar Gurgaon acting in my official capacity as Chief Executive Officer in Mis Celebi Delhi Cargo Terminal Management India Pvt. Ltd having its registered office at Room 23, Import Building 3, International Cargo Terminal, IGI Airport, New Delhi 110037, India do hereby state and affirm as under that:

1. That I am duly authorized to act for and on behalf of Mis Celebi Delhi Cargo Terminal Management India Pvt. Ltd in the matter of making this submission before the Airports Economic Regulatory Authority of India, New Delhi ('the Authority');

2. I am competent to make this submission before the Authority; 3. I am making this submission in my official capacity and the facts stated herein are

based on official records; 4. The contents of this submission which include (i) Business Plan; (ii) Information

relating to the Regulatory Building Blocks; (iii) Competition Assessment; (iv) Historical and Forecasted volumes; and (v) Historical revenues, are correct and true to my knowledge and belief and nothing material has been concealed therefrom.

inal Management India Pvt. Ltd

Place: New Delhi

Date: 11-03-2016

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l;:ELEBi DELHI CARGO TERMINAL MANAGEMENT INDIA PVT. LTD. E-M ail. : info@celebiaviat ion.in

Regd. O f f. : Room No. CE-05, Fir st Floor, Import Bu ilding II,Int er national Car go Terminal, IGI Airport, New De lhi - 110037. INDI A Tel : + 91 - 11-2 560 13 0 0 , +91-11 -25601310, +91- 11-2 5 6 0 1000 (exchange) Fax: +91- 11-2 5 601320

CIN No. U74900DL2009FTC191359



5. Form B: (ref: Section AI. 8 of Appendix I)

BEFORE THE AIRPORTS ECONOMIC REGULATORY AUTHORITY OF INDIA

AT NEW DELHI

SUBMISSION OF PROPOSAL FOR DETERMINATION OF ANNUAL TARIFF FORAND ON BEHALF OF:

C;:elebi Delhi Cargo Terminal Management India Pvt. Ltd International Cargo Terminal, Indira Gandhi International Airport, New Delhi - 110037

I, Ramesh Mamidala, aged 47 years resident of F-1002, 10TH Floor Celebrity Tower, Ansals Palam Vihar Gurgaon acting in my official capacity as Chief Executive Officer in C;:elebi Delhi Cargo Terminal Management India Pvt. Ltd having its registered office at Room 23, Import Building 3, International Cargo Terminal, IGI Airport, New Delhi 110037 do hereby state and affirm as under that:

1. That I am duly authorized to act for and on behalf of C;:elebi Delhi Cargo Terminal Management India Pvt. Ltd in the matter of making this submission before the Airports Economic Regulation Authority of India, New Delhi ('the Authority');

2. I am competent to make this submission before the Authority; 3. 1 am making this submission in my official capacity and the facts stated herein

are based on official records; 4. The contents of the Annual Tariff Proposal submission which include inter alia

i. Proposed detailed break-up of Tariff(s) based on Clause 11.2

ii. Justifications, are correct and true to my knowledge and belief and nothing material has been concealed there from.

Place New Delhi Date: 11-03-2016

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C;:ELE81 cELHI CARGO TERMINAL MANAGEMENT INOlA PVT. LTC. E-Ma il. : info@celebisviat ion.in

Regd. Off. : Room No . CE-05, First Floor, Import Building II, International Cargo Terminal, IGIAirport, Ne w Delh i - 110037, INDIA Tel: +81 -11 -25601300, +81 -11 -25601310, +81-11 -25601000 (exchange) Fax: +81-11-25601320

CIN No . U74800DL2008FTC181358


Draft CP 24.05.2016 Celebi-Delhi-Cargo 3aera.gov.in/upload/uploadfiles/files/pn/Annex 1...

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