Essar Global's Power business today signed a Licensing Agreement with REpower Systems AG for the design and manufacture of 1.5 MW (and 2 MW) Wind Turbines in India and marketing in South East Asia. The two corporations have agreed to set up a joint venture in the near future which will allow access to 3MW and 5 MW turbines as well other future developments and wider market reach.

Commenting on the occasion, Mr. Anshuman Ruia Director, Essar Power said, "We are happy to be associated with REpower for our foray into the wind energy business. We are confident that this is the beginning of a long and mutually beneficial relationship. The agreement comes at a time when there is a huge demand for power in India and it also fits in perfectly with our strategy of diversifying into renewable energy sources."

This wind turbine technology is widely accepted for usage Europe for generation of power. REpower's 1.5 megawatt turbine installations in Germany operate with an average availability of approx. 99%. This technology is ideally suited for Indian wind conditions.

Essar proposes to set up the manufacturing plant in a port based location which the Group hopes to finalize soon. The initial investment required to set up the plant is in the region of Rs. 50 crore and this will be financed through internal resources. Essar expects to start commercial production by the middle of next year.

India with approx. 5300 megawatts of installed wind power capacity (as on March 2006) will see additional capacity of 1700 MW -1800MW in the current financial year. The Indian market for wind energy is the largest in Asia and the fourth largest on a global scale. India has wind resources to harvest around 45000 MW of power.

About Essar's power business :

Essar has been in power generation business for the last one decade. It currently operates four power plants with a capacity of over 1000 MW. Essar, with its proven experience of developing power projects is well positioned to implement large sized power projects.

About Essar :

The Essar Group is one of India's largest corporate houses with interests spanning the manufacturing and service sectors - Steel, Shipping, Power, Oil & Gas, Telecom & BPO and Construction. The Group has an asset base of over US $ 6 billion (Rs.27, 000 crore).

About REpower :

REpower Systems AG is one of the leading manufacturers of onshore and offshore wind turbines. The international engineering company develops, produces and sells wind turbines with outputs ranging from 1.5 to 5 megawatts and rotor diameters of 70 to 126 metres for almost all locations. It also provides a comprehensive service and maintenance range. The high performance, reliable turbines are designed at the REpower development centre in Rendsburg and produced at the sites in Husum (North Frisia) and Trampe (Brandenburg).

Listed on the German stock exchange since March 2002 and with around 700 employees worldwide, the Hamburg-based company relies on its experience in the production and installation of more than 1,400 wind turbines worldwide. REpower is represented in European markets such as France, the United Kingdom, Italy, Portugal and Spain and in the international markets of Japan, China and Australia through its subsidiaries and investments..