Business Update

KSK Power Ventur PLC
17 January 2007

For Immediate Release                                          17th January 2007

                                Business update

                              KSK Power Ventur plc

                            ('KSK' or the 'Company')

KSK Power Ventur plc (AIM: KSK.L), the power project development company with
interests in multiple power plants across India, floated on the AIM market of
the London Stock Exchange in November 2006, raising £30.9 million.

Since flotation, the Company is pleased to report significant progress in its
target business areas and sustained demand for new plant opportunities, further
complementing its project pipeline. Further details are set out below.

Projects under construction

  • The Sai Regency captive plant has now been successfully commissioned,
    having paralleled and synchronised with the local electricity Grid for open
    cycle supplies of 36 MW. The Company anticipates combined cycle output of
    the remaining 22 MW capacity by March 2007.

  • In the case of the 43 MW Sitapuram plant, the Company is pleased to
    announce progress at site works and project commissioning is expected to be
    completed as scheduled by March 2007.

  • The 15 MW Avantika hydroelectric plant - KSK's first foray into
    hydroelectric power generation - has now achieved financial closure. The
    Company is anticipating increasing the capacity by an additional 3 MW to 18
    MW.

  • The 135 MW Marudhar Power group captive power plant in the state of
    Rajasthan has reached financial closure and also entered into power purchase
    agreements with a large pool of industrial consumers with significant power
    requirements. The Company has been allotted the additional fuel block of
    Lunsara in the State of Rajasthan for further lignite supplies to the
    project.

  • At Warora Maharsahtra, Wardha Power has moved forward in its construction
    of the 270 MW (2 X 135 MW) power project. The Company has concluded a power
    purchase agreement for the entire capacity of 270 MW with a single customer.
    With this, Wardha Power will rank as India's largest outsourced captive
    power plant. Encouraged by this response, the Company has decided to double
    the capacity to 540 MW in response to anticipated demand from multiple
    industrial customers.

Projects under development

  • Wardha Power at Morga, Chattishgarh is developing a 1,000 MW power plant
    in the proximity of the block from which a coal supply commitment to KSK by
    Gujarat Mineral Development Corporation (GMDC) has been secured.

  • Further, the Company is in advanced discussions for an additional 1000 MW
    project based on coal supplies from GMDC. In all, therefore, this equates to
    2,500 MW of capacity, across multiple locations, for Wardha Power.

  • Lafarge has now committed to expand its 43 MW power plant to 86 MW at the
    same location in Arasmeta, in the state of Chattisgarh.

  • As announced with its interim results on 20th December 2006, the Company
    is seeing significant opportunities in hydroelectric power generation. In
    line with its growing reputation and the credibility of KSK as a significant
    private power project developer, the Company has now been invited to
    participate as a co-developer in India's largest public private partnership
    hydroelectric power project to date - a 1,200 MW hydroelectric power station
    in Sikkim.

Commenting on the progress so far, S. Kishore, Executive Director said:

'We are pleased with the progress we have made in recent months with our
projects and the additions to our pipeline. KSK has developed or is currently
developing, power stations capable of generating 4,000 MW of electrical power.
We have also secured access to further fuel resource which gives us every
confidence for the future.'




For further information, please contact:           www.ksk.co.in
                                                   ---------------

KSK Power Ventur plc                               +(91) 40 2355 9922 - 25
S. Kishore, Executive Director
K.A. Sastry, Executive Director

Arden Partners plc                                 [phone]
Richard Day/Steve Pearce

Hogarth Partnership Limited                        [phone]
Nick Denton/Barnaby Fry



                      This information is provided by RNS
            The company news service from the London Stock Exchange