JAIPRAKASH POWER VEN. Share price

OUR HISTORY AND CERTAIN CORPORATE MATTERSIncorporationOur promoters (erstwhile JIL now JAL) and GoHP executed a Memorandumof Understanding dated November 23 1991 recording GoHP's acceptanceof our promoters proposal to implement the Power Plant and detailingthe terms and conditions of its implementation. Subsequently theAgreement for Implementation dated October 1 1992 was executed betweenour promoters and GoHP whereby our promoters agreed to establishoperate and maintain the Power Plant for an initial period of 40 yearsfrom the date of commissioning extendable for a further period of 20years.The Company was incorporated on December 21 1994 with the objectinter alia to set up hydro-electric or Thermal power projects and forthe supply of general electric power. The Certificate of Commencementof Business was granted on January 9 1995. Our registered office is atC-16 Lane 1 Sector 1 SDA Housing Colony New Shimla 171 009. OurHead Office is at `JA Annexe' 54 Basant Lok Vasant Vihar New Delhi - 110 057.Pursuant to the Tripartite Agreement dated October 17 1995 between theGoHP our promoters and us all the assets liabilities obligationsprivileges and benefits relating to the Baspa II project weretransferred and assigned from JAL to the Company on the terms andconditions contained therein. JHPL paid a consideration of Rs.608.30million to JAL for the transfer of assets of the Power Plant. This wasfunded through equity participation by JAL in the Company.History and Key EventsYear/Date Key Events 1991 GOI announcement of the policy for opening up of the power sector for private sector participationNovember 3 1991 Execution of MOD between JAL and GoHP wherein GoHP accepted the proposal of JAL for setting up the Baspa Stage II 300 MW hydropower project and accorded in-principle approval to JAL for implementing the projectMay 1992 Detailed project report submitted by JAL to GoHP for the project after carrying out a detailed technoeconomic feasibility studyOctober 1 1992 Implementation Agreement executed between GoHP and JAL wherein GoHP granted the right to establish own operate and maintain the project and permission to generate and sell power from the project for an initial period of 40 years from the date of commissioning extendable by another 20 years.December 17 1993 Approval by Ministry of Environment and Forest GOI for the ProjectApril 24 1994 Techno-economic clearance granted by CEA for the ProjectDecember 21 1994 Incorporation of JHPL by JAL under the terms of MOU with GoHP to implement the Project March 1995 Approval of the Project by Financial Institutions at an estimated project cost of Rs.11020 million and inter-alia signing of PPA as one of the pre-disbursement conditions October 17 1995 Execution of a tripartite agreement between JHPL JAL and GoHP consenting the transfer of all assets liabilities obligations privileges and benefits arising out of MOU from JAL to JHPL June 4 1997 Signing of PPA with HPSEB pursuant to Implementation Agreement with GoHP June 1997 Reappraisal of the project by the Financial Institutions with a revised cost of Rs.12630 million.January 7 1998 Amendment made in the PPA to include provisions for escrow mechanism and letter of credit for realization of payment from HPSEBJuly 2 1998 Promulgation of The Electricity Regulatory Commissions Act January 21 1999 Submission of financial package of Rs.13650 million by JHPL to HPSEB and CEA pursuant to the terms of techno economic clearanceJanuary 25 1999 Execution of agreement with Siemens AG Consortium Germany and Alstom T & D France for import of electromechanical equipment and GIS/GIB respectively February 2000 Reappraisal of project cost by FIs at Rs.13450 million.July 31 2000 Occurrence of flash floods in river Sutlej disrupting communication and transportation links to the project site resulting into delay in the implementation of the project by more than a yearMarch 22 2002 Reappraisal of the Project consequent to the flash floods at a cost of Rs. 16120 millionMay 14 2001 Submission of revised financial package of Rs. 16201.50 million by JHPL to HPSEB and CEA consequent to increase in the cost on account of the flash floods December 4 2002 GoHP/HPSEB in-principle approval for project cost at Rs.15500 million or actual whichever is lessFebruary 28 2003 Execution of Supplementary Agreement to PPA between JHPL and HPSEB in regard to payment of dues (as per entitlement under the PPA) based on actual realization for the sale of power to HPSEBJune 8 2003 Commencement of commercial production of the Power Plant (as notified by HPSEB) September 6 2003 Order issued by HPERC declaring the Supplementary Agreement to PPA void ab initio non est or inoperative: (a) directing HPSEB and JHPL to restructure the debts to reduce the interest costs and to file the financial package after the approval of CEA (b) directing HPSEB to continue to pay to JHPL the revenue realised from sale of energy pending determination of tariff December 11 2003 Meeting of lenders agreeing in-principle for restructuring the debt with re-aligning the interest rate at 10.50% p.a. and re-fixation of repayment schedule