Brookfield sponsored India Infrastructure Trust (InvIT) to acquire East-West Pipeline for Rs. 13,000 crore

Mumbai, 14th March 2019: Brookfield has filed the preliminary placement memorandum, in terms of which India Infrastructure Trust, an InvIT set up by Brookfield as Sponsor and 90%
investor, will invest Rs. 13,000 crore to acquire the East West Pipeline (“Pipeline”). As a part of
the transaction, the InvIT will acquire 100% equity interest in Pipeline Infrastructure Private
Limited (“PIPL”) which currently owns and operates the Pipeline.

Pursuant to this acquisition by Brookfield, the existing pipeline usage agreement has been reworked as follows:
• The reserved capacity reduced to 33 MMSCMD against the 56 MMSCMD.
• Any unutilized capacity payment by RIL will be the difference between Rs. 500 crore a
quarter and actual revenue earned by PIPL.
• RIL will continue to be entitled to transport gas, either by itself or of any customers, free of
cost against any outstanding unutilized capacity payments.
At the current approved final tariff of Rs. 71.66/MMBTU, if the average volume of gas
transported is 22 MMSCMD, RIL will not be liable to make unutilized capacity payments.
The next review of tariff in April 2020 will also consider upward revision to tariff arising from
determination of lower revised capacity of the pipeline.
Considering the new investments in the upstream sector in the KG basin, and the growing LNG
imports, ability to swap gas, the average volume expected to be transported through the pipeline
is expected to be significantly higher compared to the current levels.
RIL will be entitled to a significant participation in the net earnings of PIPL under the mechanism
specified in the pipeline usage agreement.
RIL’s current investment in preference shares valued at Rs. 4,000 crore to continue and will be
converted into equity at the end of 20 years.
Further at the end of 20 years, RIL has the right to acquire equity shares of PIPL held by the
InvIT at an equity value of Rs. 50 crore.