Mumbai; Sept 07, 2009

Infrastructure Development Finance Company Limited ("IDFC") and India Infrastructure Fund ("IIF") invest in GMR Kamalanga Energy Limited

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IDFC and IDFC Project Equity Company Limited which manages India Infrastructure Fund ("IIF") have executed definitive documents to invest in 20% equity share capital in GMR Kamalanga Energy Limited ("GKEL"). IIF is subscribing to 15% of GKEL equity capital with the remaining 5% being invested in by IDFC. GKEL is an SPV floated by GMR Energy Limited (the energy holding company of the GMR group) to implement a 1,050 MW captive coal based thermal power plant in Dhenkanal district, Orissa with a project cost of Rs 4,540 crores. The project has a dedicated coal block allotment along with a tapering linkage thus ensuring fuel security and has tied up a large portion of its offtake arrangements by means of long term PPAs. The project achieved financial closure in May 2009 and has commenced construction with the commissioning being scheduled in August 2012.

Commenting on the investment, Aditya Aggarwal from IDFC Project Equity who led the deal remarked "IDFC group's relationship with GMR group is almost a decade old and this investment further consolidates the same. GMR group is one of the very few industrial houses in India which has an exhibited track record of executing large scale infrastructure projects within budgeted time and costs. We continue to be selectively bullish on opportunities in the Indian power sector and are quite excited to partner with the GMR group for their GKEL project which is one of the more advanced power projects in Orissa.

"We at GMR group value long term relationships. IDFC group has over the years been our partner in various projects and we have fostered our relationship in this prestigious project. We trust that this continued relationship will lead to both the groups making further leaps in their business growth." said Mr. B.V.N Rao, Group Chairman - Energy.

Speaking on the occasion, Mr Raaj Kumar, Chief Executive Officer and Director of GMR Energy Limited said "We believe that IDFC and IIF will bring significant value and their support will be vital for timely implementation of our 1050 MW power project in Orissa. We believe the teams at IDFC and IIF are well-suited to help GKEL build on its strong foundation and accelerate its growth."

About IDFC:

IDFC was set up in 1997 to act as a financier and catalyst for the development of private sector sponsored infrastructure projects in India. Over the last 12 years - and more so since the initial public offering (IPO) in July 2005 - IDFC has pursued a focused growth strategy to evolve rapidly into a 'one-stop-shop' for infrastructure finance in India, capable of meeting the increasingly complex and ambitious requirements of a expanding client base. IDFC's expertise lies in a deep understanding of the risks and opportunities associated with the different phases of a project's life-cycle, and appropriately packaging differentiated financial solutions that best meet the requirements of investors and customers at the different stages by progressively expanding the range of its skills, products and services beyond the traditional project lending to investment banking as well as different types of asset management. Building on this diversified range of product and service capability has strengthened IDFC's core business model and has propelled IDFC into one of India's premier financial services platforms leveraging knowledge and talent to span the areas of infrastructure project finance, asset management and investment banking.

About IIF:

IIF has been set up as part of the 'India Infrastructure Financing Initiative', a collaborative effort between the Government of India and leading Indian and Global financial institutions to deploy USD 5 billion in capital for infrastructure projects in India. IIF currently manages a corpus of USD 925 million. IIF invests directly or indirectly in companies that primarily derive their value from infrastructure concessions/projects/assets ("Infrastructure Projects") with principal exposure to core infrastructure sub-sectors including transport, energy and utilities, telecommunications infrastructure and urban infrastructure. The fund targets assets that have visibility of strong, predictable and strong cash flows in the form of regular dividend distribution, low volatility of returns and potential for capital growth.

About GMR group:

GMR group is a Bangalore headquartered global infrastructure major with an established implementation and operating track record across the infrastructure spectrum- Airports, Energy, Highways and Urban infrastructure (including SEZ). In addition, the other focus area of the group is the Agri-business with sugar as its main product-line. The group is an early entrant in the Indian power sector post its liberalization and has created a niche for itself in the sector. It has already set up three power plants which are under operation. These include a 200 MW - the world's largest diesel power plant in Chennai, the first Independent Power Producer (IPP) in Tamilnadu; a 220 MW - world's largest Barge Mounted Power Plant in the State of Karnataka and a 370 MW - Gas Based Power Project at Vemagiri in the State of Andhra Pradesh. In addition to these operational plants, the group has several concrete plans to enhance its generation capacity over the next five years to meet its vision of being a significant energy player in the country.
www.gmrgroup.co.in

For further details, please contact

IDFC
Ravi P Muthreja , Group Head-Corporate Communications
Phone: +91 90043 02000,
Email: ravi.muthreja@idfc.com
ccd@idfc.com