Reliance Energy clarifies on news item

With reference to the news item appearing in a leading financial daily titled "REL bags Rs 6,400 cr Hyderabad projects", Reliance Energy Ltd (REL) has clarified to BSE that the Chairman of the Company at the Annual General Meeting held on July 10, 2007 while appraising the shareholders on the various initiatives of the Company's group, had reported about the Company having emerged as the preferred bidder for the development of a business district over an area of 75 acres, with a built up area of 11 million sq. ft. including the construction of 100 storey trade tower - likely to be the tallest in South East Asia, in Hyderabad city at a cost of Rs 6,500 crore. Immediately on the conclusion of the AGM, the speech was uploaded on the website of the Company and the same continues to remain accessible at the website. The Company has received the Letter of Allotment for the project.

The newspaper report is purposely based on the statement to the media made by the Vice Chairman & Managing Director of APIIC, Shri. B P Acharya as stated on the media report.

The Company will keep informed upon executing the project agreement with APIIC for executing the above project.