GMR Industries update

With reference to the earlier announcement dated February 02, 2007 regarding the Company was declared successful bidder for taking on lease the partly completed sugar factory of M/s. Sri Dhanalaxmi Sahakari Sakkare Karkhane Niyamit, Belgaum District on Build, Own, operate and Transfer (BOOT) basis for a period of 25 years, GMR Industries Ltd has informed BSE that on October 24, 2007, the company has entered into the Lease Agreement with M/s. Sri Dhanalaxmi Sahakari Sakkare Karkhane Niyamit, Belgaum District, after the Hon'ble High Court of Karnataka dismissed the writ petition and writ appeals and upheld the grant of lease in favour of the Company.

The sugar Factory with a capacity of 2500 TCD and Cogen plant is in partially completed stage i.e. 80% completed stage. The lessee M/s. GMR Industries Limited shall complete the balance work of supply and erection and shall commence crushing operations during 2008-09 Sugar Season. The Plant capacity shall be expanded from 2500 TCD to 4000 TCD and the Cogen capacity shall be expanded in a phased manner. The plant is located in the Belgaum district, where plenty of cane is available and historically has been a high sugar recovery area endowed with favorable climatic conditions.