GAMMON INDIA LIMITED

ITEA
ACCAM S.p.A. Incinerator Plant: Europower is responsible for providing full O&M services of an
incinerator plant, which has a total capacity of 500 tons per day and steam production of 60 tons per day
and electric power generator of nine MW, for ACCAM S.p.A. in Busto Arsizio, Italy. The services include
plant operation, ordinary maintenance, programmed and preventive maintenance, extraordinary
maintenance, spare parts supply and management, supply of chemicals, supply of expendable materials for
maintenance, handling and disposal of scraps, ashes and dusts, handling and disposal of liquid effluents,
management of the flue gas monitoring system, direction and coordination of the service, and assistance to
the ACCAM S.p.A. for the registers, and carrying out the test trials and check-ups required by law. The
duration of the contract is from 2000 to 2010. The contract value of this project is €95.00 million.
ITEA, of which 77.97% is held by Sofinter and 11.99% is held by Ansaldo, specializes in areas such as boilers,
EPC, flameless combustion technology and water treatment systems. In particular, ITEA has developed and patented
Isotherm technology, an innovative flameless oxy-fuel pressurized combustion technology using waste and low
grade coal. The new technology offers high yield waste-to-power recovery, safe treatment capabilities of highly
toxic residues, environmentally friendly process and fully computerized operations control. ITEA, since 2004, has
operated a five MW demonstration unit at Ansaldo Caldaie Combustion Research Centre located at Gioia del Colle.
In 2008, a 15 MW Isotherm industrial unit at Jurong Island, Singapore, was completed. The plant, which is fed by
petrochemical and chemical industrial waste, has also passed the operability and environmental compatibility tests,
and is expected to provide steam to customers in early 2010.
Some selected ongoing major projects currently undertaken by ITEA are set forth below:
Project Enel: This project involves the development of an oxy-coal combustion pilot plant in 2011 for Enel
S.p.A. in its Brindisi site. The plant will operate on coal water slurry and have a combustor power of 48
MW. The estimated sales realization of this project is approximately €33.00 million. In addition, Enel
S.p.A plans to build a 320 MW coal fired, zero emission plant by 2015, based on ITEA‘s Isotherm Pwr®
technology, with the main equipment supply by ITEA.
Project Arzignano: This project involves the construction of two 15 MW units for the treatment of a
tannery sludge for Acque del Chiampo in Italy. This project is scheduled to be completed by 2012. The
estimated sales realization of this project is approximately €55.00 to €60.00 million.
Franco Tosi Meccanica
With a history of more than 125 years, FTM is a permanent Westinghouse licensee for a complete range of steam
turbines and has proprietary technology for a range of hydro turbines. FTM designs and manufactures steam turbines
on its own and Siemens Westinghouse technology, and has the capability to design and supply electro-mechanical
BOP and HP piping systems as well as in growing waste-to-energy and biomass segment. FTM has installed base of
over 75,000 MW across 40 countries and over 2,000 units. FTM is headquartered in Legnano, a city near Milan, and
its manufacturing facilities are located on over 350,000 sq. m. of land with a covered area of approximately 162,000
sq.m..
We acquired a 75.10% stake in FTM for a consideration of €40.00 million in June 2008 through our subsidiary
Gammon Holdings B.V. Netherlands. FTM has an in-house production of 500,000 to 700,000 manhours per year,
corresponding to approximately 10 to 12 complete steam turbine sets of 150-160 MW each aggregating to 1100 to
2000 MW per year. Currently, FTM can produce steam turbines with capacity up to 660 MW and hydro turbines
with capacity up to 400 MW.
For the six months ended June 30, 2009, the turnover, EBITDA and loss of FTM, as certified by its board of
directors, was €47.35 million, €2.11 million and €2.79 million, respectively.
Some selected ongoing major projects currently undertaken by FTM are set forth below:
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