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SIEMENS Energy

Siemens AG, E T HS PM 41 BA, F reyes lebens t r. 1 , 91058 Er langen,Siemens L td.PTD H -H3 Q&IN INS-AWM r . R IS H I M A G G O N4-A, R ing Road, I . P . Esta te

NameDepartmentTelephoneFaxE-mail

Stefan Hartmann / Claudia SchpsE T H S P M 4 3 B A+49 (9131) 7-33995 / -31304+49 (9131) 7-32888Stefan.hartmann@siemens.comClaudia.schoeps@siemens.com

New De lh i Date December 2ne, 2 0 0 9India Reference: ETH SPM43/ IND/AG/P-008938

D ear Sir,S ubj .: Quotat ion for supply of 245 kV GIS Pa lchan S ubstat ionWe tha nk you for your inqui ry and are p lease d to sub m it herew i th our G A-of fe r fo r the above m ent ionedpro jec t , w h ich i s based on t he S tanda rd -Ag reem en t ZR G1 in connec t ion w i t h ZR G C i rcu la r No . 01 /2005dated 04.04.20 05, and the fo l low ing con d i t ions:

1. Definit ionsPurchaser :Contractor:Enduser :Contract:

Siemens Ltd. , IndiaS iemens AG , E r langen - Ge rmanyHP Power Transm iss ion C orpora tion L imi tedAgreemen t be tw een the Purchase r and the C on trac to r

2. Scope ofsupplyThe fo llow ing is inc luded in our p r ices:

. Source o f Or ig in f rom Europe Ma nufacture o f 245 kV GIS swi tchgear comp onents as per enc losed drawings (w i thout LCC ) Engineer ing and Des ign for GIS (w i thout LCC ) Factory Accep tance Tests Tra in ing Tools and Spares as per enc losed l is tP lease a lso re fer to the Scop e o f Supp ly and o f fe r d rawings enc losed.

Siemens AGEnergy Secto r ; Management : Wol fgang DehenPower T ransm iss ion Div is ion; Managem ent : Udo NiehageHigh Vo l tage Subs tat ions ; Managem ent : Michael Jesberger

Freyeslebenstr. 191058 Er langenGermany

Tel .: +49 (9131) 18 0

Siemens Aktiengesel lschaft: Chairman of the Supervisory Board: Gerhard Cromme;Managing Board: Peter Loescher, Chairman, President and Chief Executive Off icer; Wolfgang Dehen, Heinrich Hiesinger,Joe Kaeser, Barbara Kux, Hermann Requardt, Siegfried Russwurm, Peter Y. SolmssenRegistered off ices: Berl in and Munich, Germany; Commercial registries: Berl in Charlottenburg, HRB 12300, Munich, HRB 6684WEE E-Reg.-No. DE 23691322SCF 12/2008 V08.12 Page I o f 6

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SIEMENS t o L e t t e r o f D e c e m b e r 2 n d , 2 0 0 9 S i e m e n s L t d .3. G A- P r i c e s

The to ta l GA -pr ice is :GIS (CIF ) w i thou t LCC , Gas & S tee lSpa re P a r ts (C IF )One po le C B w i th ope ra t ing m echan ismOne p o le Iso la tor w i th opera t ing me chan ismOne p o le Ma in tenance Ea r th ing Sw i t chOne phase current t ransformerOne phase vo lt age t rans fo rmerMa in tenance T oo ls (C IF )Di lo Serv ice Truc k B57R01SF 6 leak detector Di lo 3-033-R002SF6 Dew Po in t Me te rAcou st ic PD Moni tor ing Device (A IA f rom Doble)CB Ana lyse r

1 ,218,650. -- Euro

21,480. -- Euro6,750. . - - Euro3,620. -- Euro6,750. -- Euro6,750. -- Euro

47,560. -- Euro779. -- Euro10,891-- Euro58,300.-- Euro31,510. -- Euro

Of f Shore T ra in ingOn Shore Tra in ing 11,410.-- Euro14,670. -- EuroTotal 1,439,120.-- Euro( In W ords: EURO One m illion four hundred thirty nine thousand one hundred twenty only)The to ta l p r ice above i s quo ted as G A-p r ice C IF Mu mba i o r any o the r su i tab le ha rbour nea rby inc lus ive o fsea f re ight and seaw orthy packag ing accord ing to lncoterm s 2000 a nd is va l id fo r de l ivery be fore31.03.2011.Taxes, cus toms dut ies or other charges outs ide the Federa l Repub l ic o f Germa ny are not considered in ouro f fe r , i .e . a l l and a ny Ioca l t ranspor t , customs dut ies, insurances, taxes, lev ies and s imi la r or re la ted costsar is ing in connect ion w i th the impor t sha l l be borne by the Pu rchaser or to be ca lcu la ted by S iem ens Ind ia .

4. Exclusions:The following is no_._~t considered in our offer / not included in our prices:

Loca l Con t ro l Cub ic les (LCC ) inc lud ing e ng inee r ing / eng inee r ing suppo r t Wir ing between opera t ing cub ic les and LC C an d cab le t rays for it Any bonds and gua ran tees Insurance o f the equipm ent outs ide m anufacturer s count ry Taxes , customs dut ies and fees paya b le outs ide the ma nufacturer s count ry Superv is ion and Commission ing Renta l Too ls an d Inst ruments fo r e rect ion a nd com mission ing An y civi l works / c ivil work draw ings / c ivi l work calculat ions Any Ioca l transpor t , c ranes and l i f ting equipm ent , Ioca l transpor t o f Too ls. HV - Test tool. Loca l t ranspor t o f superv isors and comm ission ing eng ineers All t ravel costs for customer engineers Analys is / s tud ies / ca lcu la t ions Typ e tests or rep et i tion o f type test fo r GIS Any o ther tests on s i te a f te r comm ission ing is f in ished (such as t r ia l run or on- load tests) Site of f ice ( for erect ion and commissioning) Sw itchg ear bui ld ing , outdoor foundat ions, convent iona l type outdoor equipm ent Air cond i t ion ing equ ipm ent / l igh t ing / c rane

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SIEMENS ~ o L e t t e r o f D e c e m b e r 2 n d , 2 0 0 9 S i e m e n s L t d . Em bedded f la t s tee l par ts /p la tes G IS-suppor ts to be emb edded in the concre te by c iv i l workcompany Addi t iona l R&D deve lopm ents Groun d ing gr id / ear th ing system Conn ect ion o f GIS to the ear th ing system Protect ion , remote cont ro l equipme nt Cont ro l and power cab les Ca ble , transformer and l ine connect ion mater ia l , sea l ing ends, c lamp s and conn ect ion work HV ca ble tes ts AC /DC-sup pl ies, me asur ing , a la rm system s and o ther cont ro l equipm ent Transla t ions o f correspondence or docum ents o ther than En g l ish or Ge rman langu age Any Rem ote Transmit ta l Un i t (RTU) Spa re par ts and s pec ia l too ls excep t as spe c i f ica l ly ment ioned in our o f fe r Al l de l iver ies a nd se rv ices not exp l ic i t ly m ent ioned in our s pec i fica t ion5 . P a y m e n t T er m s

100% o f the o rder va lue fo r equ ipme nt sha l l be i nvo iced imm ed ia te l y upon de l i ve ry C IF M um ba i accord ingto Incoterms 2 000.In case the de t ivery is de layed due to reasons beyond Con t ractor s cont ro l , o rder va lue for equipment sh a l lbe invo iced 1 m onth a f te r issuan ce o f cont rac tors note o f read iness for despa tch.Paym ent sha l l be m ade v ia ICC . Par t ia l payme nt sha l l be a l lowed.

6. S t a n d a r d s :A l l our equ ipm en t w i l l be m anufac tu red acco rd ing to t he IEC, VDE and DIN s tanda rds .

7. D el ivery per iodDel ive ry t ime C IF M um ba i accord ing to Inco te rms 2 000 fo r the G IS w i ll be 14 mon ths a f te r techn i ca ll y andcom m erc ia l ly c l a r if ied o rde r . T ime pe r iod nece ssa ry fo r w i tness ing o f rou t ine tes t w i l l be ad ded a s pe rac tua l . Mod i f ica t ions o f the HV GIS equ ipm en t a f te r rece ip t o f the o rde r , wh i ch a re e f fec t ing p r i ce and /o rde l ive ry pe r iod, mu s t be m utua l ly ag reed . P a r tia l Sh ipmen t and T ransh ipme n t sha l l be a l low ed .Th is del ivery time a s wei l as app l ianc e of L iqu idated Dam age s is subject to timely rece ip t of a l l app rovals ,requi red in format ion, and l icenses, w hatsoever f rom P urchaser .

8. C u s t om s D u t ie s /T a x e sOur p r i ces a re exc lus i ve o f any taxes , cus toms du t ies an d o ther f ees payab le in the cou n t r ies o ther thanG e r m a n y . S h o u l d th e C o n t ra c t r e q u ir e t h e C o n t r a c to r to m a k e a n y s u c h p a y m e n t t h e P u r c h a s e r s h a l limme dia te ly re fund the C ont rac tor on basis a t ac tua l costs.Pub l ic charges b ecom ing due w i th in Germ any up to the prese nt da te are inc luded in our pr ices.

9. Force Ma jeureForce M a jeure as used he re in sha l l mean any c i r cumstance beyond the con t ro l o f the p a r ties inc lud ing bu tnot l imited to:a) wa r and o ther hos t il it ies (wh e ther wa r be dec la red o r no t ) , i nvas ion , ac t o f fo re ign e nem ies , mob i l i-zat ion , requis i t ion or em bargo;b) rebe l l ion , revo lut ion , insurrec t ion , mi l ita ry or usu rped p ower a nd c iv i l warc) r iot, comm otion or d isorderd) st r ike an d Iockoute) acts o f god, na tura l ca tast rophes, ep idem ics, ear thquake, f loods, l igh tn ing

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Let ter of Decembe r 2nd, 2009SIEMENS to Siemens Ltd.f) delays or accidents occurring in connection with transportation, but not limited to:- shortage s of sui table t ransp ort fac i li t ies,

- t raff ic acc identsg) res t r ic t ions by or act ions, om iss ions, in tervent ions of pu bl i c author i t ies ( inc lud ing but n ot l im i ted tochang es in law, regu la t ions or impor t /expor t, secu r i ty rest r ic t ions)

In case o f Fo rce M a jeure e i the r pa r t y sha l l take reasonab le s teps to m in im ize t he consequence o f such aneven t . The pa r ty wh i ch w i shes to p lead F orce M a jeu re sha l l in fo rm the o ther pa r t y on the e f fec t t he case o fForce M ajeure has on the fu l fi lme nt o f the Purch ase or Work Order concerned.Should any condition cause as stated before cause an increase in the cost of or time required forperformance of any part of supplies and services, an equitable adjustment shall be made in thecomp ensat ion , the t ime requi red for per forman ce and s uch o ther prov is ions as ma y be a f fec ted .In the even t o f occu r rence o f any c ond i ti on me n t ioned be fo re i n th i s c lause , the Con t rac to r sha l l p repa reand su bm it to the P urcha ser an est ima te o f the increase in the cost o f sup p l ies and serv ices and sh a l l a lsoi n fo r m t he P u r cha s e r a s t o whe t he r s u ch co n d i ti o n m a y r e q u i re a n e x t e n s i on o f t im e t o co m p l e t e thesupp l ies /and or serv ices . A ch ang e order desc r ib ing the ch ang e or condi t ion involved and the e f fect on thecomp ensa t ion and comp le ti on fo r the supp l ies and serv ices sha l l be ag reed and s i gned b y the Pu rchaserand the Cont rac tor.

1 0 . W a r r a n t yThe Warranty Pe r iod sha l l be 12 m onths a f te r comm ission ing (or par t ia l comp le t ion) o f the su bsta t ion or 18 m onthsf rom not i fica t ion o f read iness for sh ipme nt , which ever occu rs f i rs t .For de fect ive par ts repa i red or rep laced, the wa rranty per iod sha l l be 6 m onths as pe r ZRG, not exp i r ing before thewarranty p er iod o f the m ater ia l o rig ina l ly de l ivered un der th is cont rac t .P lease no te war ran ty i s on l y va l id dur ing th i s pe r iod i f our G IS w i l l be e rec ted and c om m iss ioned b y a qu a l if iedSup erv isor / Comm ission ing Eng inee r cer ti fied by S iemens A G.

1 1 . L i q u id a t ed D a m a . q e s fo r D e l a yIf the Contractor is responsible for a delay in delivery by reasons other than Force Majeure and thePurchaser suffers Ioss, the Contractor undertakes to pay for each week or part of a week of delayl iqu ida ted dam ages a t t he ra te o f 0 .5% o f the p r ice o f t ha t por t ion , wh i ch , beca use o f t he de lay , cou ld no tbe p u t to the i n tende d use , b u t no t m ore i n aggreg a te than a to ta l o f 5 .0 % o f the con t rac t p r i ce re l a t ing totha t por ti on o f t he equ ipm ent wh i ch i n conseque nce o f such de lay cannot be comm erc ia ll y and e f fec t ive lyused.Suc h paym ent sha l l be i n f u ll sa ti s fac t i on o f dam ages su s ta ined by the P u rchase r due to any such de layand sh a l l be in fu l l l ieu o f any o ther r ight the Pu rchas er ma y have ag a inst the Cont rac tor .I n t h e e v e n t P u r c h a s e r s us p e n d s t h e p r o v is i o n o f th e W o r k , P u r c h a s e r s h a l l re i m b u r s e C o n t r a c tor a l ladd i tiona l costs and expenses incurred due to such s uspens ion.

12. Lia bi l i tyI f the C ontractor i s respons ib le for persona l in jury , he sh al l be l iab le as p rov ided by law . The C ontractor , ifrespons ib le f o r p rope r ty dam age a nd pe cun ia ry Ioss , sha ll be l i ab le to t he P urchase r u p to 250 ,000 . -- EURper event , but not more than up to the cont rac t pr ice fo r a l l events wh ich m ay occur .The Contractor, however, shalt not be liable for indirect or consequential damages such as Ioss ofprodu ct ion, produc t ion stoppag e, Ioss of prof i t or Ioss of inform at ion and data a s we il as Ioss of interest .An y l iab i l ity for dam age s excee ding sa id ma rgin and scope sh al l be exc luded. The S upp l ier s liab i li ty endsa t the end o f wa r ran ty p e r iod . These l im i ta t ions o f l i ab i li ty sh ou ld a l so ap p l y fo r the b ene f i t o f Sup p l ie r sSubcont rac tors, Su ppl ie r s A gents, Advisors, Di rec tors and Em ployees.SCF 12/2008 V08.12 Page 4 of 6

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Let ter of Decemb er 2nd, 2009SIEMENS to Siemens Ltd.

13. Chang es in the scope of supply an d services/legisla t ionIn case tha t a f te r con t rac t award the C on t rac to r acc rue s add i t iona l cos ts wh ich can be d em ons t rab l yproved due to the fo! !owing reasons:

chan ges in leg is la tionchanges in s tandardschanges in app rova l p rocedurechan ges i n the scope o f supp l y and serv i ces ins t ruc ted by the Pu rchase r and mu tua l ly ag reed bythe C ont rac toro ther c i rcum stances w hich are be yond the reasonab le cont rol o f the Cont rac tor

Those have to be com pensa ted by the Pu rcha ser . Th i s s t ipu la t ion i s no t va l id , if t he add i t iona l cos ts i ncu rdue to reasons for which the C ont rac tor can be h e ld responsib le .Impacts on de l ivery/comple t ion t im e, warranty, pass o f r isk and add i t iona! costs sha l l be agreed mu tua l ly .

14. S ettlem ent of D isputeAl l d isputes ar is ing ou t of or in con nec t ion w i th th is cont ract , inc lud ing any quest ion rega rd ing i ts ex is tenc eshou ld fi rs t l y be mu tua l ly a r range d . If no a r rang em en t can be reach ed the d i spu tes sha l l f ina l l y se t t ledunder the Rules of Arbitration of the International Chamber of Commerce Paris by three nominatedarb i tra tors. P lace o f a rb i t ra t ion sha l l be Er langen, G erma ny.The lang uag e to be use d in the arb i t ra t ion proceed ing sha l l be Eng l ish .

1 5 . Ap p l i ca b l e La wAl l d ispu tes sha l l be h and led ac cord ing to the p rov is ions o f th i s con t rac t and a l l ag reem ents be twe en thepar t ies, o therw ise th is con t rac t, o r i ts su b ject mat ter , sha l l be sub ject to the su bstant ive laws o f Germ any.T he a pp l ica t io n o f t he U N C o n ve n t io n o n C o n t ra c t s f o r the i n te r n a t io n a l s a l e o f g o o d s ( C I S G ) s ha l l b eexc luded.

16. Technical Conditions16.1 Genera l comments

Al l equ ipm ent w i ll be des igned a nd m anu fac tu red accord ing to IEC, D IN, VDE an d /o r the re l evan tSieme ns regu lat ions. Labe ls and a l l o ther docum enta t ion w i ll be in Eng l ish langu age.16.2 Witness / inspect ion tests

A cc e p t a n ce t e s ti n g in a cco r d a n ce w i th t he r e s pe c t ive I E C s t a n d a r d s w i ll b e p e r fo rm e d o n 1se lec ted c i rcu i t b reaker , 1 d i sconnec to r and 1 ear th i ng sw i t ch o f one bay a ssem bly . Cu r ren t andvo l tage t rans formers w i ll be tested sep ara te ly in sub-cont rac tors works an d test cer t if ica tes w i l l besup pl ied before d ispatch.An y o the r tes t requ i red by the P urcha se r o r any o the r pa r ty w i ll be cha rge d a t add i ti ona l ac tua lrates.

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Let ter of Decemb er 2nd, 2009SIEMENS to Siemens Ltd.16 .3 Draw in .q and Docu m en ts

All drawings will be prepared according to Contractor standard.considered. Drawing s ize a nd d ime nsions w i l l fo l low D IN standards. Other standards are not

17. Term s a nd Cond it ions of ContractI n a l l o ther respec ts , the T erm s and Cond i ti ons as per ZRG C i rcu la r No. 01 /05 "Terms a nd C ond i ti ons forDel iver ies and Serv ices for S iemen s In terna l Transact ions" sha l l app ly .

18. Val id i ty of quotat ionOur qu ota t ion is va l id un t i l 01 .03.2010. A f te r th is date i t sha l l be s ub ject to out wr i t ten conf i rmat ion .

19. Export Proviso"S iem ens ob l i ga t ion to fu l fi l t h i s ag reem en t i s sub jec t to the p rov iso tha t the fu l f i lm en t i s no t p reven ted by a nyimped imen ts a r is i ng ou t o f na t iona l and i n te rna t iona l fo re i gn t rade and cus toms requ i rem ents o r any em bargos [o rother sanct ions] ."A l l add i t iona l costs ar is ing f rom impor t - regula t ions are not inc luded in cont rac tor s o f fe r and w i ll be en t ire ly borne b ythe pu rchas er . Any cer t i f ica t ion o f the o f fe red mater ia l is not inc luded in the pr ice m ent ioned in c lause 3 .The Da mex E c heck l is t need to be p repa red by S iemens Ind ia and subm i t ted to E T H S PM 43 BA .

20. EnclosuresTech n ica l OfferZR G Ci rcu la r No . 01 /2005

We h ope tha t th is o f fe r mee ts your requireme nts and rema inYou rs fa i th fu l lySiemens Akt iengese l lschaf t

S te fan Ha r tma nnDirector Projects, AsiaHigh Vo l tage Substa t ionsaP~ vel L~atos~)irec~f" Business Administrat ion, Asia1-31~gh Voltage Subs tations

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