The Ministry of New and Renewable Energy (“MNRE”), Government of India, through the National Institute of Wind
Energy (NIWE), an autonomous institute of MNRE, has announced the “Indian Wind Resource Atlas : Online
GIS”, with a tracking level of 100 metres, using scientific combination of satellite and one of the world’s largest
number of measured (1,300 locations ) ground data. The NIWE (formerly C-WET) had released the Indian Wind
Atlas at 50m and indicative values at 80m hub heights in April 2010 in collaboration with RISO-DTU, Denmark.

The new Indian Wind Atlas is an important online GIS (Geographic Information System) tool for identification of
the regional and local wind energy potential in India. It contains average annual values of Wind Speed (m/s), Wind
Power Density and Capacity Utilization Factor (CUF) calculated for an average 2 MW turbine at 100 m.
India has an installed capacity of renewable power of about 36,500 MW, of which wind power has a significant
contribution by way of 24,000 MW installed capacity – mainly in the states of Tamil Nadu, Maharashtra, Gujarat,
Rajasthan, Karnataka, Andhra Pradesh and Madhya Pradesh.

In order to meet the Government’s ambitious goal of 60,000 MW of wind power by 2022, it is necessary to provide
reliable background information on the geographical variation and magnitude of Indian wind resource and an
estimated gross technical potential spread across entire country at today’s wind turbine hub heights. This
information is essential for policy makers, private parties, Government agencies and other stakeholders of the
industry to move towards achieving the ambitious goal as envisaged by the Government. The Atlas module can
also be used for solar power projects to check parameters for selecting a site.

                                                   Policy for Marginal Fields of ONGC and OIL

The Union Cabinet has given its approval to the Marginal Fields Policy (MFP), for development of hydrocarbon
discoveries made by national oil companies, Oil & Natural Gas Corporation Ltd. (ONGC) and Oil India Ltd. (OIL),
which could not be monetized for many years due to reasons such as isolated locations, small size of reserves,
high development costs, technological constraints, fiscal regime, etc.

Under the MFP, 69 oil fields (with estimated 89 million tonnes of oil and gas equivalent worth Rs 700 billion at
current prices), which have been held by ONGC and OIL for many years, but have not been exploited, will be
offered for competitive bidding. With appropriate changes in policy, it is expected that these fields can be brought
into production. For example, significant changes have been proposed in the design of the contracts for
development of these discoveries. Instead of the profit sharing concept being currently used under the production
sharing contracts, it is proposed that a gross revenue sharing concept will be used. Unlike the profit sharing
methodology presently followed where the Government scrutinized cost details of private contractors which led to
delays and disputes, under the new regime the Government will not be concerned with the cost incurred and will
receive a share of the gross revenue from the sale of oil, gas, etc.

Further, it is proposed that the licence granted to the successful bidder will cover all hydrocarbons discovered in
the field. Earlier, the licence was restricted to one item only (for example, oil) and a separate licence was required
if any other hydrocarbon (for example, gas) was discovered and exploited. The MFP also allows the successful
bidder to sell at the prevailing market price of gas, rather than at an administered price.
It has been suggested that bidders will be evaluated on the basis of two parameters – minimum work programme
and revenue share – in a ratio of 20:80. The bidders will have to quote revenue share at the minimum and maximum
revenue points decided by the government for all fields.

If successful, the Government’s decision will stimulate investment as well as higher domestic oil and gas
production. It will also increase the role of the private sector in oil and gas. The Government is likely to announce
a new policy for major fields in three months or so that would include provisions for revenue sharing as well as
uniform licensing but not free pricing of gas.