Update on Shree Maheshwar Project

RNS Number : 8219C

Infrastructure India plc

08 May 2012

 



Date:	8 May 2012
On behalf of:	Infrastructure India plc ("IIP" or the "Company" or, together with its subsidiaries,  the "Group")
Embargo:	7:00am

Infrastructure India plc

SHREE MAHESHWAR RECEIVES PERMISSION TO COMMENCE PARTIAL FILLING OF RESERVOIR

Infrastructure India plc, the investment company focused on India's Transport and Energy sectors, is pleased to announce that Shree Maheshwar Hydel Power Corporation Limited ("SMHPCL"), a hydropower developer and IIP portfolio company, received permission from the Ministry of Environment and Forests to commence partial filling of the reservoir it has created. The project will now transition from the "construction" phase to a "ramp-up" phase ahead of full production.

SMHPCL, promoted by Entegra Limited ("Entegra"), is constructing a 400MW hydropower project on the Narmada River in the state of Madhya Pradesh in Central India. Three of the ten turbine-generators planned for the project have already been installed. SMHPCL will imminently begin filling the reservoir to 154 meters above sea level, which will enable it to commence power production at partial load from the three completed units.

The project is expected to complete full commercial operation in the first quarter of 2013. 

SMHPCL has already signed a Power Purchase Agreement with the Madhya Pradesh Electricity Board, obliging the latter to acquire electricity production from the project for a period of 35 years.

IIP currently holds an equity interest of 17.7 per cent. in SMHPCL (7.9 per cent. on a fully diluted basis). 

Sonny Lulla, IIP's Chief Executive, said, "As an investor in the Shree Maheshwar project, we are encouraged that it will commence power production and start generating revenues shortly. There is a considerable and growing requirement for energy in India and our portfolio of high quality energy assets continue to play a role in helping to meet this demand."

Enquiries:

Infrastructure India plc	www.iiplc.com
Sonny Lulla	Via Merlin Financial Communications
Merlin Financial Communications	[phone]
Paul Downes / Toby Bates / Del Jones
Smith & Williamson Corporate Finance Limited	[phone]
Nominated Adviser & Joint Broker
Azhic Basirov / Siobhan Sergeant
Westhouse Securities Limited	[phone]
Joint Broker
Alastair Moreton / Hannah Young
Macquarie Capital (Europe) Ltd	[phone]
Joint Broker
Steve Baldwin / Daniele Iacopetti

 

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