Press Release

New Delhi , 23 Mar 2006

JHPL signed an MOU with the Power Grid Corporation of India Limited (PGCIL)

Jaiprakash Hydro-Power Limited (JHPL), subsidiary of leading infrastructure conglomerate Jaiprakash Associates Limited announced the signing of an MOU with the Power Grid Corporation of India Limited (PGCIL).

The Memorandum of understanding between PGCIL and JHPL is for formation of a Joint Venture company to lay a 230 km (approx.) long transmission system to evacuate power from the 1000 MW Karcham-Wangtoo Hydro Electric Project in Himachal Pradesh.The Joint Venture will have an equity contribution of 74% by JHPL and 26% by PGCIL.

The Karcham-Wangtoo HE Project is being developed by Jaypee Karcham Hydro Corporation Ltd. The transmission line is to be completed by 2011 coinciding with the commissioning of the Karcham Wangtoo Project and is likely to cost between Rs 500-750 crore.

JHPL is one of the listed companies of the Rs 3000 crore Jaypee group and owns and operates the 300 MW Baspa-II H.E Project in district Kinnaur of Himachal Pradesh. The project located on river Baspa a tributary of River Satluj is the largest hydropower station in the private sector.

Shri Jaiprakash Gaur, who founded the Jaypee Group four decades back, is credited with the vision of leading the Group’s foray in “Build, Own and Operate” segment of power business in early 90’s when Government of India initiated reforms and invited Private Sector participation in development of power sector.

Shri Jaiprakash Gaur’s farsightedness has ensured that the Group has the largest footprint of 1700 MW through its subsidiaries Jaiprakash Hydro Power Limited [BASPA-II HEP (300 MW) already operational], Jaiprakash Power Ventures Limited [Vishnuprayag HEP (400 MW) – slated for commissioning in April 2006] and Jaypee Karcham Hydro Corporation. Limited [Karcham Wangtoo HEP (1000 MW) – slated for commissioning in 2011] in the Private Hydro Power Sector of the country.

The group has also recently signed Memorandum of Agreement with Govt of Arunanchal Pradesh for setting up two hydroelectric projects totaling to 2100 MW on BOO basis and will be setting up a 500 MW Pit head Coal based Thermal Power Plant in Madhya Pradesh. These will take the total generating capacity of the group to 4300 MW.