Gmr Energy Acquires 100% Ownership In EMCO Energy Ltd.

Bangalore, 27th July, 2009 :

GMR Energy Limited (GEL), has acquired 100% ownership interest in EMCO Energy Ltd., (a subsidiary of EMCO Ltd.), a Public Limited Company on July 24, 2009. EMCO Energy Ltd. is developing a 600 MW coal based power plant, in two phases (of 300 MW capacity each), in the Warora Taluka, District Chandrapur in the state of Maharashtra. The acquisition has helped the Group to establish a firm foothold in the Western region of the country. With this, the Group enjoys a pan-India presence spanning the Northern, Southern, Eastern and North Eastern parts of the country.

The land for both the phases has been acquired. In addition, the requisite approvals such as coal linkage, water allocation and MoEF for Phase 1 have been obtained. The approvals for Phase II are expected in to be in place in the 2-3 months. The project is proposed to be commissioned by the end of the 11th Five Year Plan.

The project will have a relatively short implementation schedule, given that the regulatory approvals are mostly in place and the construction activities are likely to commence in the last quarter of 2009. Moreover, the delivery schedule of main Boiler Turbine Generator (BTG) equipment for the project is relatively short. The global tender for the proposed BTG equipment configuration has already been floated and the project had received offers from several vendors. The BTG contract is expected to be finalised shortly. The project is also ideally located in terms of the transportation infrastructure and enjoys good rail, road and air connectivitities. It is also close to critical infrastructure such as housing, education, and medical facilities.

With this acquisition the energy portfolio of the Group will receive a significant boost. The project will partly contribute to reducing the energy-deficit in the state of Maharashtra.

Besides this project, the Group is implementing two mega thermal projects - a 1050 MW in Orissa and 1200 MW in Chattisgarh. The Group also has five hydro projects under development with a cumulative capacity of 1500 MW. In addition, it has three operating plants with a total capacity exceeding 800 MW.