GAMMON INDIA LIMITED

As of June 2009, India faced an energy shortage of approximately 9.50% of total energy requirements and
13.80% of peak demand requirements. (Source: CEA, "Power Scenario at a Glance", July 2009) Further,
despite a significant increase in recent years, per capita consumption of power in India continues by a large
margin to be below that in other economies, as illustrated in the following table.
Source: International Energy Agency (IEA), Key World Energy Statistics 2008
A key risk to the continued growth of the Indian economy is inadequate infrastructure. The Government of
India has identified the power sector as a key sector of focus to promote sustained industrial growth by
embarking on an aggressive mission – ―Power for All‖ by 2012. According to the Integrated Energy Policy
report issued by the Planning Commission, India would require additional capacity of approximately 73-86
gigawatt (―GW‖) by 2012, 159-190 GW by 2017 and 278–341 GW by 2022, respectively, based on
normative parameters in order to sustain a 8.00-9.00% GDP growth rate (Source: IEP, Expert Committee on
Power) The following table sets forth the additional capacity required by 2012, 2017, and 2022 under
different GDP growth rate scenarios:
Assumed
GDP
growth
Electricity
generation
required
65
Capacity
addition
required (1)
Peak Installed
demand capacity
(%) (BU) (GW) (GW) (GW)
By Fiscal 2012 ......... 8.0 1,097 158 220 73
9.0 1,167 168 233 86
By Fiscal 2017 ......... 8.0 1,524 226 306 159
9.0 1,687 250 337 190
By Fiscal 2022 ......... 8.0 2,118 323 425 278
9.0 2,438 372 488 341
__________
Note:
(1) Based on the existing installed capacity of 147 GW in India.
Source: IEP Report, Expert Committee on Power
The following table shows planned capacity additions under the 11 th Five-Year Plan by power source and
funding entity:
Source Central State Private Total
(additional MW of capacity)
Hydroelectric 8,654.0 3,482.0 3,491.0 15,627.0
Thermal 24,840.0 23,301.0 11,552.0 59,693.0
Nuclear 3,380.0 — — 3,380.0