Some of the companies which got the clearance from Udyog Mitra.

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1 Devanahalli Aero SEZ is Expected to have a 25 Billion USD Investments. Government of Karnataka has approved 1.25 Billion USD worth of investment proposals from the industries which want to put up their industrial units in the upcoming Aero SEZ just behind the new international airport. Udyog Mitra, the governments sigle window agency for industrial projects is the apex body for the SEZ projects. Some of the companies which got the clearance from Udyog Mitra. 1.Unnamed US Major -Civil and Militry aviation -Rs.3100 Crores 2.EADS European Aeronautic Defence and Space -Rs.8600 Crores with initial investment of 94 crores now out of total 2 billion USD. 3.Sobha Nadathur Aerospace Pvt Ltd -Rs. 200 Crores. 4.Dynamatic Technologies -Rs. 466 Crores. More Information about the SEZ s and other industrial friendly policies can be had from. Karnataka Udyog Mitra 3rd Floor, South Block, Khanija Bhavan Race Course Road, Bangalore Bengaluru s International Airport at Devanahalli To join the recently launched Hyderabad s Rajiv Gandhi International airport is the soon-to-be-operational Bengaluru International Airport at Devanahalli in Bengaluru (known as Bangalore in the West). Bengaluru International Airport is spread across 4,300 acres of land area. The airport, it is said, will be the third busiest in India and is expected to have at least 7.5 million passengers every year. At peak hours, the terminal building can accommodate 2733 passengers. With a second runway and expansion, a future capacity of 50 million passengers is targeted. The airport will have 900 domestic flights a week.. Bangalore s northern region growing as a commercial and residential zone Bangalore, the leading contributor to India s IT industry attained significance and title as the Silicon Valley of India. Recently, CNN rated Bangalore as one of the best places to do business in the wired world. Developments have

2 been on fast stride in the northern region since the airport project was launched in According to a Knight Frank report, northern Bangalore is estimated to have residential space of around 8 million square feet by the end of The reason is attributed to the soon-to-be operational Bengaluru International Airport. Over the last year, residential property prices have shown an increase of 30%. Residential properties are currently priced at Rs.2,400-4,500 ($60-$110)per square foot, with villas, at a higher range of between Rs.5,000-6,700 ($125-$170) per square foot. The northern Bangalore area, including Devanahalli, where the airport itself is located, is attracting investors seeking to capitalize on the new national and international air links once the airport is functioning. Hebbal, Yelahanka, Bellary Road, Jayamahal and R T Nagar are teeming with several new commercial projects, as these regions lie close to the new airport at Devanahalli. Several builders have acquired land for proposed commercial, residential and integrated townships in Devanahalli, off Bellary Road, Hoskote,vijipura and Doddaballapur Road. With luxury projects likely to find more customers in this part of Bangalore, the northern region is considered as a leading property investment area. Sobha Developers recently announced Sobha Lifestyle, the largest villa project by the builders in Bangalore. The Rs.250 crore (US $62.5 million) project is spread over 58 acres and is located 7 kilometers away from the airport. This is just a start and with time, more luxury projects are expected to be the flavor of Devanahalli and nearby northern regions of Bengaluru. Development of around 309 acres in DBP near Bengaluru International Airport on B-O-T model EOI Invitation Page 1 September 15, 2008 GOVERNMENT OF KARNATAKA KARNATAKA STATE INDUSTRIAL INVESTMENT & DEVELOPMENT CORPORATION LIMITED (KSIIDC) 4th Floor, East Wing, Khanija Bhavan, #49, Race Course Road, BANGALORE

3 Development of around 309 acres in Devanahalli Business Park (DBP) adjoining Bengaluru International Airport, Bangalore on B-O-T model EOI Invitation September 15, 2008 Project Advisor KSIIDC - IL&FS Project Development Company Limited 4th Floor, East Wing, Khanija Bhavan, #49, Race Course Road, BANGALORE KARNATAKA STATE, INDIA 1 BANGALORE: CITY PROFILE 1. Bangalore, Information Technology (IT) & Bio-technology (BT) capital of India, is the fifth largest metropolitan city in India and capital of Karnataka state with population of around 8 million spread over an area of around 1,307 sq.km. 2. Over 2,000 IT & IT Enabled Services (ITES) companies, including more than 100 Fortune- 500 companies have established their operations in Bangalore generating IT & ITES exports of around INR 700 billion (US$ 16.3 billion) and directly employing over 650,000 professionals. East Bangalore (Whitefield, International Tech Park Bangalore (ITB) developed by Ascendas), South-East Bangalore (Electronic City spread over 440 acres, Sarjapur-Outer Ring Road). However, with the International Airport becoming operational near Devanahalli (30 kms North of Bangalore), major real estate projects and developments are witnessed between Bangalore city and new International Airport. 3. Govt. of India has approved development of Airport related SEZ near the International Airport, 22 IT-ITES Special Economic Zones (SEZ), 1 Bio-tech SEZ in and around Bangalore, while 1 Aerospace SEZ is proposed to be developed near Devanahalli. These SEZs are Free Trade Zones with tax exemptions for 10 years to encourage exports. Many of these SEZs are under development currently.

4 2 INTERNATIONAL AIRPORT & RELATED DEVELOPMENTS The following are some of the major infrastructure initiatives implemented/under implementation in and around Bangalore to meet the growing needs of the City: 1. Bengaluru International Airport (BIA): BIA is developed on Public-Private Partnership (PPP) basis by the consortium of Siemens (40%), Zurich Airport (17%) and Larsen & Toubro (17%) along with Airports Authority of India (13%) and Karnataka State Industrial Investment & Development Corporation Ltd (KSIIDC) (13%) near Devanahalli, which is around 30 kms. north of Bangalore, to initially handle 11 million passengers p.a. scalable to handle 40 million passengers p.a. over next few years. The airport is expected to act as regional hub for global connectivity and would accelerate infrastructure & real estate development in and around the airport. As part of BIA project, a Special Economic Zone and commercial developments are proposed within the Airport. BIA and DBP falls under the jurisdiction of Bangalore International Airport Area Planning Authority (BIAAPA) formed by Government of Karnataka to ensure organized development of an area of 985 sq.km. comprising part of Bangalore North, Devanahalli, Dodaballapur taluks.chicballapur taluks. 2. Hi-Speed Airport Rail Link: In order to ensure fast and easy connectivity from Bangalore City Centre to the International Airport, Hi-Speed Airport Rail link of around 34 kms from CBD to the Airport is under development, which will enable passengers to reach the Airport around 25 minutes. 3. Widening of NH-7 to 8-lanes: NHAI is in the process of widening the existing NH-7, along which the International Airport and DBP are situated, from existing 6-lanes to 8-lanes, which can sustain higher

5 traffic due to airport expansion and expected real estate developments on either sides of the NH-7 4. Improved connectivity to the Airport Government of Karnataka (GoK) has widened and improved the major district roads from the city and neighbouring areas to the Airport, which would enable passengers to reach the Airport from the city and surrounding areas easily. In addition, GoK has initiated the development of Peripheral Ring Road (PRR), Intermediate Ring Road (IRR) and Satellite Towns Ring Road (STRR), which will significantly improve connectivity to different parts of the Bangalore Metropolitan Region and the Airport 5. Major Real Estate Developments near the Airport Major real estate developers are in the process of creating land banks in and around the International Airport, including announcement of a few SEZs. Figure 2 depicts the major real estate developments Development of around 309 acres in DBP near Bengaluru International Airport on B-O-T model EOI Invitation Page 6 September 15, 2008 in and around the International Airport and DBP, wherein the land rates are as high as Rs. 3,500 per sq.ft. along the NH-7, as per JLLM market study report. Source: JLLM s Market Study Report 6. Satellite Town Ring Road (STRR) and Integrated Townships Government of Karnataka is developing 8-lane STRR expressway connecting 5 satellite towns in the outskirts of Bangalore with total road length of 204 kms around Bangalore along with development of 5 integrated townships at Bidadi, Ramanagara, Solur, Sathanur and Nandagudi totaling around 61,000 acres on PPP basis. 4 DEVANAHALLI BUSINESS PARK (DBP) 4.1 BACKGROUND 1. Karnataka State Industrial Investment & Development Corporation Limited (KSIIDC), at the behest of Government of Karnataka (GoK), is developing DBP on the site of

6 around acres owned by KSIIDC along the National Highway-7 (NH- 7) and adjoining the northern boundary of Bengaluru International Airport (BIA) near Devanahalli, around 35 kms north of Bangalore city. KSIIDC-IL&FS Project Development Company Limited (KIPDC) is the Project Advisor for the DBP project. 2. Of the total site area of around acres, GoK has retained around 105 acres for its use, while balance of around 309 acres is proposed to be bid out through transparent & competitive bidding process for commercial development on Build- Operate-Transfer basis for initial period of 30 years with automatic renewal for another 30 years. 3. KPTCL and BESCOM will supply Power to the Project, as per estimated phase wise requirements and on fulfillment of requisite formalities, including but not limited to payment of prescribed charges, by the Preferred Bidder and occupants of DBP. 4. At present, the requisite infrastructure for supply of potable water by BWSSB to the Bengaluru International Airport is fully functional and is situated near the DBP. BWSSB will supply potable water to the Project, based on the Preferred Bidder s application to BWSSB with phase wise requirements and fulfilling requisite formalities, including but not limited to payment of prescribed charges. Selected bidder shall establish the requisite infrastructure in terms of roads and utilities within DBP. 5. Existing railway line from Bangalore city and Yelahanka to Chikballapur passes through DBP, which would be available for cargo movement of DBP, if the Preferred Bidder of DBP project approaches South Western Railway as may be required, apart from connectivity through 6-lane National Highway-7 (NH-7) to various parts of India, including major ports of India.

7 6. Bengaluru International Airport, which is well connected to the adjoining DBP, provides connectivity to all major cities across the world. 4.2 SITE LOCATION & CONTOUR 1. DBP is situated on the National Highway-7 (NH-7) from Bangalore to Hyderabad and adjoining the northern boundary of recently opened Bengaluru International Airport (BIA) in Devanahalli Taluk, Bangalore Rural district under the jurisdiction of Bangalore International Airport Area Planning Authority (BIAAPA). 4.3 MARKET STUDY & SUGGESTED LAND USE PLAN 1. Jones Lang LaSalle Meghraj Property Consultants Pvt. Limited, Bangalore (JLLM) was appointed to carry out detailed market study, best option analysis and business plan preparation for DBP. 2. Major findings and recommendations of JLLM are listed below: a. With the Bengaluru International Airport becoming operational to the north of Bangalore, focus of real estate developments has been shifting to the north of Bangalore, especially around the new International Airport over the past 1-2 years. b. Demand-Supply gap of commercial/office, retail & entertainment and hospitality sectors in Bangalore, as provided by JLLM, are tabulated in Table 1. As can be inferred from the table, there is significant demand-supply gap in all the three sectors over next few years: 40 km BIAAPA Devanahalli Taluk Bangalore City Bengaluru International Airport (BIA) Devanahalli Business Park (DBP)

8 Development of around 309 acres in DBP near Bengaluru International Airport on B-O-T model EOI Invitation Page 10 September 15, 2008 Table 1: Demand-Supply Gap in commercial, retail & hospitality sectors in Bangalore Commercial/Office (Million sq.ft.) Retail & Entertainment (Million sq.ft.) Hospitality (Rooms) FY Cumulative Demand ,410 Cumulative Supply ,956 Demand-Supply Gap ,454 FY Cumulative Demand ,644 Cumulative Supply ,633 Demand-Supply Gap ,011 c. World Health Organization (WHO) recommends three beds for a population of 1,000. However, present bed capacity of hospitals in Bangalore is around 6,000 beds (0.91 per 1000 population), while the demand is estimated to be around 19,500 beds considering Bangalore s urban population of 6.5 million. In addition, more than 200,000 medical tourists visited India in 2007 for treatment to the tune of US$ 600 million, which is expected to increase to US$ 2 billion by d. Prevailing lease rentals for commercial/office space (warm-shell) is around INR (US$ ) per sq.ft. per month in the CBD, INR (US$ ) per sq.ft. per month in sub-urban & peripheral areas e. Prevailing lease rentals for retail & entertainment space is around INR (US$ ) per sq.ft. per month in the CBD, INR (US$ ) per sq.ft. per month in sub-urban & peripheral areas f. Prevailing Average Room Realisation (ARR) of major 5-star hotels in Bangalore is the highest in India at INR 13,434 (US$ 312) per room-night and has one of the highest occupancy levels in India.

9 g. Govt. of India has approved establishment of Airport related SEZ near the International Airport, 22 IT-ITES Special Economic Zones (SEZ), 1 Bio-tech SEZ in and around Bangalore, while 1 Aerospace SEZ is proposed to be developed near Devanahalli, which will further boost real estate developments in and around Bangalore 3. Based on JLLM s recommendations after conducting detailed market study and best use option study, the following suggested Land Use Plan of DBP was prepared by Mahindra Consulting Engineers Limited (MACE) appointed by KSIIDC. MACE has also prepared detailed Utility Master Plan for the DBP project, as part of its consultancy assignment. Figure 4 depicts the suggested Land Use Plan of DBP, the enlarged view of which can be seen in the enclosed PDF file. The selected private sector developer for development of around 309 acres shall establish roads and utility infrastructure for DBP as a whole at its cost. Development of around 309 acres in DBP near Bengaluru International Airport on B-O-T model EOI Invitation Page 11 September 15, 2008 Description Area allocated (in Acres) For Development on PPP basis (Suggested Land Use Plan) 1. IT & ITES Parks/SEZs (2 Nos.) Central Business District Multi-Specialty Hospitals (3 Nos.) Finance District Light Goods Manufacturing/ Assembly Retail & Entertainment star Hotel Office Complexes (2 Nos.) Aviation Academy Vehicle Parking spaces Roads & Utilities Greenery Sub-Total (Site for development on PPP basis): Retained by Govt. for its agencies 1. Department of Tourism (International Convention Center & Hotel on PPP basis)

10 2. MSIL (Cargo Warehousing) Directorate General of Civil Aviation (DGCA) KPTCL (for Power Sub-station) Customs Department Metreological Dept Social Forest Other Government Agencies Sub-Total (Retained by Government) Grand Total (DBP Site Area) Development of around 309 acres in DBP near Bengaluru International Airport on B-O-T model EOI Invitation Page 12 September 15, BUSINESS PLAN 1. Based on the Market Study & suggested Land Use Plan, JLLM has made the following recommendations and has prepared the detailed 30-years Business Plan for each of the marketable lots/sectors identified for development in the DBP, the salient features of which are mentioned below: a. Development of 4-5 Nos. IT-ITES/Electronic Hardware SEZs inside the DBP, after taking into consideration (a) significant demand for SEZ office space in the market, (b) around 16% savings in initial capital costs due to exemptions of taxes and duties for SEZ construction, and (c) 10-years tax & duty exemptions on operations of both the SEZ developer and SEZ occupants. b. In order to meet the significant demand-supply gap of non-sez office space in Bangalore, development of office complexes on around acres is proposed. c. Due to significant domestic demand-supply gap for quality hospitals and encouraging trends of Medical Tourism, development of 3 Multi-specialty hospitals with around 1,800 hospital beds on a site of around 26 acres is proposed. d. Due to significant demand-supply gap of hotel rooms Bangalore witnessing one of the highest room tariffs in India over past few years and due to the fact that DBP is located quite close to the International Airport, development of a 5-star deluxe hotel

11 with around 900 rooms on 10 acres site in 2 phases and another 5-star deluxe hotel and high-end service apartments with 220 rooms and 1,300 rooms respectively inside the Central Business District of 35 acres is suggested. e. In order to meet the manpower requirements of the Aviation industry and the adjacent International Airport, development of a multi-faceted aviation academy on 10 acres site in DBP is suggested. f. It is estimated that more than 250,000 people will be working and visiting DBP on daily basis on completion of the anticipated real estate developments, which is a captive demand and opportunity for establishing retail & entertainment malls in DBP. Such malls would also cater to the needs of the anticipated influx of population to the residential spaces created around the International Airport. Development of Retail & Entertainment zone on around 12 acres site and another Retail & Entertainment Mall on 8 acres site inside Central Business District of 35 acres is recommended. g. In order to augment the vehicle parking capacity of the DBP, vehicle parking sites totaling an area of around 2.73 acres are provided at various locations of the DBP. h. Table 3 summarize the salient features of the suggested real estate development on around 309 acres, in addition to which the Preferred Bidder of the Project needs to establish common area infrastructure for the DBP (roads, storm water drains, street lighting, water & sewerage infrastructure, greenery and other utility infrastructure as per applicable laws and business park requirements)