Reliance Energy wins 1,200 MW EPC Contract of Rs.3,725 crore from Damodar Valley Corporation

EPC Order Backlog of over Rs.10,000 crore

New Delhi, 30th November, 2007:

• Damodar Valley Corporation (DVC) has embarked on an accelerated power capacity addition plan for the 11th Five Year Plan. DVC's most ambitious power plant based on 2 x 600 MW Units in State of West Bengal is coming up at Raghunathpur in West Bengal, District Purulia. DVC has entrusted the implementation of this power project based on coal to Reliance Energy Limited on Engineering, Procurement and Construction (EPC) basis.

• The contract valued at Rs.3,725 crore has been bagged by Reliance Energy's EPC division through international competitive bidding. The contract will be implemented in an accelerated schedule of up to 38 months.

• DVC has reposed full faith in Reliance Energy based on the successful track record of EPC implementation of the 2 x 300 MW Yamunanagar as well as 2 x 600 MW Hisar power projects in the state of Haryana.

• With the above, Reliance Energy will be implementing coal based power projects of capacity exceeding 3,000 MW on EPC basis, the largest in the private sector.

The EPC Group of Reliance Energy currently has orders on hand for execution aggregating over Rs.10,000 crore.

Reliance Energy Limited:

Reliance Energy, a part of Reliance - Anil Dhirubhai Ambani Group, is India's leading private sector utility Company.
Reliance Anil Dhirubhai Ambani Group currently has a market capitalisation of over Rs.2,70,000 crore, net worth in excess of Rs.40,000 crore, cash flow of Rs.9,000 crore, net profit of Rs.5,000 crore and zero net debt.

Reliance Energy is ranked amongst India's top 20 listed private companies in terms of all major financial parameters, including assets, sales, net worth, profits and market capitalisation

Note:
A Group Company of Reliance Energy Limited, Reliance Power Limited is proposing, subject to market conditions and other considerations, an initial public offering of its equity shares and has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The DRHP is available on the website of SEBI at www.sebi.gov.in and the respective websites of the BRLMs and CBRLMS at www.kotak.com, www.ibb.ubs.com/Corporates/indianipo, www.abnamroindia.com, www.db.com/India, www.enam.com, www.icicisecurities.com, www.jmfinancial.com, www.jpmipl.com, www.sbicaps.com and www.macquarie.com/in.

This media release does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any equity shares, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. Any potential investors should note that investment in equity shares involves a high degree of risk. For details, potential investors should refer to any Red Herring Prospectus that may be filed with the Designated Stock Exchange in future including the section titled "Risk Factors".

This announcement has been prepared for publication in India and may not be released in the United States. This announcement does not constitute an offer of securities for sale in any jurisdiction, including the United States, and any securities described in this announcement may not be offered or sold in the United States absent registration under the US Securities Act of 1933 or an exemption from registration.

For further Information Please contact:
Venkatesh Somayaji on 9312782480 or at venkatesh.somayaji@relianceada.com

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