Dharmshala Hydro Power Limited (DHPL)

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Dharmshala Hydro Power Limited (DHPL) developed a 4.5 MW hydro power plant (“Maujhi Phase I”). DHPL was owned by Ind-Barath Power Infra Private Ltd. (99.7%). The power plant was commissioned in June 2004. Power was sold to PTC India on merchant basis. The project was registered under the United Nations Framework Convention on Climate Change (“UNFCCC”) and hence is eligible for generating and selling CERs under the Kyoto Protocol’s Clean Development Mechanism (“CDM”) project. Pursuant to an agreement dated July 9, 2002 with the Himachal Pradesh State Electricity Board (“HPSEB”), DHPL sells power generated from Maujhi Phase I at an average tariff rate of Rs. 2.50 per kWh. If the power generated from Maujhi Phase I is sold to third parties or outside the state of Himachal Pradesh, DHPL is obliged to provide 10.0% of power generated from Maujhi Phase I to HPSEB, free of cost, from the commercial operation date. If the power generated from Maujhi Phase I is sold by DHPL exclusively to HPSEB, this levy is waived for fifteen years from the commercial operation date. After 15 years from the commercial operation date, DHPL will be obliged to provide 10.0% of power generated from Maujhi Phase I to HPSEB, free of cost. All power generated by DHPL is currently sold to HPSEB This agreement is valid until June 2044 and is renewable for an additional term of 20 years by the Government of Himachal Pradesh. The total cost of Maujhi Phase II was estimated to be Rs. 300 million (US$6.5 million). Maujhi Phase I reached financial closure in 2003 and was funded through a combination of equity contributions from our Company and other investors and secured debt. As of March 31, 2010, the total equity investment made by our Company in DHPL (for both Maujhi Phase I and Maujhi Phase II) is Rs. 171.94 million including share application funds. Financing secured amounted to Rs. 185.70 million for the implementation of Maujhi Phase I, from three lenders, including Indian Renewable Energy Development Agency Limited and Punjab National Bank. As of March 31, 2010, Rs. 74.70 million in principal amount of secured loans remains outstanding. DHPL added an additional 5.0 MW power project (Maujhi Phase II) at Kangra, Himachal Pradesh, which became operational in June 2010. The implementation agreement for Maujhi Phase II with the Government of Himachal Pradesh was signed on July 25, 2006. Under the terms of the Maujhi Phase II implementation agreement, DHPL was required to hand over Maujhi Phase II to the Government of Himachal Pradesh in January 2049. DHPL was also required to reserve at least 70.0% of the workforce for the power project, for residents of Himachal Pradesh. This quota did not apply to executive level positions, but DHPL is required to give priority to residents of Himachal Pradesh for such executive level positions. The Government of Himachal Pradesh agreed to assist in acquiring the land required by the Maujhi Phase II project and in providing a rehabilitation plan for any persons displaced by the Maujhi Phase II project. The total cost of Maujhi Phase II was estimated to be Rs. 339.32 million (US$7 million). Maujhi Phase II reached financial closure in 2009 and was funded through a combination of equity contributions from our Company and other investors, and secured and unsecured debt. As of March 31, 2010, the total equity investment made by our Company in DHPL (for both Maujhi Phase I and Maujhi Phase II) is Rs. 171.94 million including share application funds. The company secured financing of Rs. 236.80 million for the implementation of Maujhi Phase II from Indian Renewable Energy Development Agency Limited.