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Jaiprakash Power Ventures Ltd. Company History and Annual Growth Details

Incorporation

Our promoters (erstwhile JIL, now JAL) and GoHP executed a Memorandum
of Understanding dated November 23, 1991, recording GoHP's acceptance
of our promoters proposal to implement the Power Plant and detailing
the terms and conditions of its implementation. Subsequently, the
Agreement for Implementation dated October 1, 1992 was executed between
our promoters and GoHP, whereby our promoters agreed to establish,
operate and maintain the Power Plant for an initial period of 40 years
from the date of commissioning, extendable for a further period of 20
years.

The Company was incorporated on December 21, 1994 with the object,
inter alia, to set up hydro-electric or Thermal power projects and for
the supply of general electric power. The Certificate of Commencement
of Business was granted on January 9, 1995. Our registered office is at
C-16, Lane 1, Sector 1, SDA Housing Colony, New Shimla 171 009. Our
Head Office is at 'JA Annexe' 54, Basant Lok, Vasant Vihar,
New Delhi - 110 057.

Pursuant to the Tripartite Agreement dated October 17, 1995 between the
GoHP, our promoters and us, all the assets, liabilities, obligations,
privileges and benefits relating to the Baspa II project were
transferred and assigned from JAL to the Company on the terms and
conditions contained therein. JHPL paid a consideration of Rs.608.30
million to JAL for the transfer of assets of the Power Plant. This was
funded through equity participation by JAL in the Company.

History and Key Events

Year/Date Key Events

1991 GOI announcement of the policy for opening up of
the power sector for private sector participation

November 3, 1991 Execution of MOD between JAL and GoHP, wherein GoHP
accepted the proposal of JAL for setting up the
Baspa Stage II 300 MW hydropower project and
accorded in-principle approval to JAL for
implementing the project

May 1992 Detailed project report submitted by JAL to GoHP
for the project after carrying out a detailed
technoeconomic feasibility study

October 1, 1992 Implementation Agreement executed between GoHP and
JAL wherein GoHP granted the right to establish,
own, operate and maintain the project and
permission to generate and sell power from the
project for an initial period of 40 years from the
date of commissioning, extendable by another
20 years.

December 17, 1993 Approval by Ministry of Environment and Forest, GOI
for the Project

April 24, 1994 Techno-economic clearance granted by CEA for the
Project

December 21, 1994 Incorporation of JHPL by JAL under the terms of
MOU with GoHP to implement the Project

March 1995 Approval of the Project by Financial Institutions
at an estimated project cost of Rs.11,020 million
and inter-alia signing of PPA as one of the
pre-disbursement conditions

October 17, 1995 Execution of a tripartite agreement between JHPL,
JAL and GoHP consenting the transfer of all assets,
liabilities, obligations, privileges and benefits
arising out of MOU from JAL to JHPL

June 4, 1997 Signing of PPA with HPSEB pursuant to
Implementation Agreement with GoHP

June, 1997 Reappraisal of the project by the Financial
Institutions with a revised cost of
Rs.12,630 million.

January 7, 1998 Amendment made in the PPA to include provisions
for escrow mechanism and letter of credit for
realization of payment from HPSEB

July 2, 1998 Promulgation of The Electricity Regulatory
Commissions Act

January 21, 1999 Submission of financial package of
Rs.13,650 million by JHPL to HPSEB and CEA pursuant
to the terms of techno economic clearance

January 25, 1999 Execution of agreement with Siemens AG Consortium,
Germany and Alstom T & D, France for import of
electromechanical equipment and GIS/GIB
respectively

February 2000 Reappraisal of project cost by FIs at
Rs.13,450 million.

July 31, 2000 Occurrence of flash floods in river Sutlej
disrupting communication and transportation links
to the project site, resulting into delay in the
implementation of the project by more than a year

March 22, 2002 Reappraisal of the Project consequent to the
flash floods at a cost of Rs. 16,120 million

May 14, 2001 Submission of revised financial package of
Rs. 16,201.50 million by JHPL to HPSEB and CEA
consequent to increase in the cost on account of
the flash floods

December 4, 2002 GoHP/HPSEB in-principle approval for project cost
at Rs.15,500 million or actual whichever is less

February 28, 2003 Execution of Supplementary Agreement to PPA between
JHPL and HPSEB in regard to payment of dues (as per
entitlement under the PPA) based on actual
realization for the sale of power to HPSEB

June 8, 2003 Commencement of commercial production of the
Power Plant (as notified by HPSEB)

September 6, 2003 Order issued by HPERC declaring the Supplementary
Agreement to PPA void ab initio, non est or
inoperative: (a) directing HPSEB and JHPL to
restructure the debts to reduce the interest costs
and to file the financial package after the
approval of CEA (b) directing HPSEB to continue to
pay to JHPL the revenue realised from sale of
energy pending determination of tariff

December 11, 2003 Meeting of lenders agreeing in-principle for
restructuring the debt with re-aligning the
interest rate at 10.50% p.a. and re-fixation of
repayment schedule


2005

- The public offer for buying stake in Jaiprakash Hydro Power Ltd, promoted by Delhi-based Jaiprakash Associates, was oversubscribed within minutes after the offer opened on March 22, 2005. At the end of the day, the offer was subscribed almost two times. The public offer is a first by any private hydro-power company and aims to raise Rs 576 crore to fund a 1,000 mega watt project in Himachal Pradesh. The company is offering 18-crore equity shares or 36.7 per cent stake in Jaiprakash Hydro-Power Ltd at between Rs 27 and Rs 32 each. The final price will be determined on the basis of bids received from investors.

- Jaiprakash Hydro-Power stock fell below initial offer price on the first day of trading. The stock began trading on the Mumbai stock exchange at Rs 33.45 against the issue price of Rs 32. But, it closed weak at Rs 31.85 soon after.

2006

-Jaiprakash Hydro enters into MoU with Power Grid Corporation of India

2007

- Jaiprakash Hydro Power Ltd has appointed Shri Rajiv Ranjan Bhardwaj as additional Director on the Board of the Company.

2008

-Jaiprakash Hydro Power Ltd has appointed Shri. Suresh Chandra as Whole-time Director of the Company w.e.f. January 08, 2008.

-Jaiprakash Hydro Power Ltd has appointed Shri. S S Gupta as Non-Executive Independent Director w.e.f. July 26, 2008.
 
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