GAMMON INDIA LIMITED

Our inability to obtain, renew or maintain the statutory and regulatory permits and approvals required to
operate our business may have a material adverse effect on our business.
Certain statutory and regulatory permits and approvals are required for our business. Laws or regulations in
India and other countries in which we operate may require us to obtain licenses, consents or permits in order
to bid for contracts or otherwise conduct our operations. In some jurisdictions, activities related to
construction of our projects may be subject to the prior granting of environmental licenses or permits or to
prior notification. Additionally, in the future, we may be required to renew such permits and approvals and
obtain new permits and approvals for any proposed operations. There can be no assurance that the relevant
authorities will issue any of such permits or approvals in the time-frame anticipated by us or at all. Failure
by us to renew, maintain or obtain the required permits or approvals may result in the interruption of our
operations and may have a material adverse effect on our business, financial condition and results of
operations.
We require certain approvals or licenses in the ordinary course of business and the failure to obtain or
retain them in a timely manner, or at all, may adversely effect our operations.
We require certain approvals, licenses, registrations and permissions for operating our business, some of
which may have expired and for which we may have either made or are in the process of making an
application for obtaining the approval or its renewal. In some jurisdictions, activities related to construction
of our projects may be subject to the prior granting of environmental licenses or permits or to prior
notification. If we fail to obtain or retain any of these approvals or licenses, or renewals thereof, in a timely
manner, or at all, our business may be adversely affected. Furthermore, our Government approvals and
licenses are subject to numerous conditions, some of which are onerous and require us to make substantial
expenditure. If we fail to comply, or a regulator claims we have not complied, with these conditions, our
business, financial condition and results of operations would be adversely affected.
Our project sites may face inclement weather and natural disasters that may cause significant
interruption of operations.
Our project involve many risks and hazards which may adversely affect our profitability, including:
political, regulatory and legal actions that may adversely affect a project‘s viability;
adverse changes in market demand or prices for the products or services that the project, when
completed, is expected to provide;
the willingness and ability of consumers to pay for construction services;
shortages of or adverse price movement for construction materials;
design and engineering defects;
breakdown, failure or substandard performance of equipment;
improper installation or operation of equipment;
labor disturbances;
environmental hazards;
industrial accidents; and
terrorist activity.
Additionally, procurement and construction works carried out in respect of our projects involve a number of
hazards including earthquakes, flooding, tsunamis and landslides. In December 2004, Southeast Asia,
including the eastern coast of India, experienced a tsunami and in October 2005, the state of Jammu and
Kashmir experienced an earthquake, both of which caused significant loss of life and property damage.
Such weather conditions and other phenomena could affect or interrupt the supply of raw materials or
damage the project site and could adversely affect our revenues and results of operations. Earthquakes may
destroy, damage or interrupt the construction activities and have a material adverse effect on our business,
results of operations and prospects. Natural disasters may cause significant interruption to our operations,
disruption to our properties and damage to the environment that could have a material adverse impact on us.
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