Ind-Barath Energies Maharashtra Limited (IBEML)

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Ind-Barath Energies Maharashtra Limited (IBEML) developed a 20.0 MW biomass coal based power plant. IBEML was owned by Ind-Barath Power Infra Private Ltd. (79.2%). The power plant was commissioned in January 2009. Power sold directly to SEDCL under a long term purchase agreement. 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. The estimated project cost was Rs 757.27 million (US$18.3 million). The project reached financial closure in 2007. The IBEML Power Project 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 IBEML is Rs. 192.57 million. We secured financing of Rs. 564.70 million for the implementation of the IBEML Power Project, from two lenders, IDBI and Indian Overseas Bank. As of March 31, 2010, Rs. 442.13 million and Rs. 157.29 million in principal amount of secured and unsecured loans, respectively, remains outstanding. IBEML has entered into a biomass energy purchase agreement dated October 18, 2006 with MSEDCL. IBEML presently sells all of its power generated to MSEDCL at the prevailing tariff determined by the Maharashtra Electricity Regulatory Commission (“MERC”). Under the terms of the agreement, the tariff was determined at Rs. 3.08 per kWh, which was subject to an annual increase of between Rs. 0.04 and Rs. 0.03 per kWh. The agreement is valid for a period of 13 years from the commercial operation date in January 2009. On September 23, 2008, the Maharashtra Biomass Energy Developers Association filed a petition with the MERC, seeking an increase in biomass-based power tariffs. In an interim order dated December 14, 2009, MERC has set the tariff at Rs. 4.98 per kWh, which is valid until March 31, 2010. As of date, no supervening order has been issued and we will continue to bill MSEDCL at Rs. 4.98 per kWh until such order is issued.