IL&FS, Gujarat to transform Alang

Chennai, March 31, 2008: IL&FS Ecosmart Ltd signed an agreement with the Gujarat Maritime Board on March 26, 2008 to prepare a comprehensive Master Plan for the Alang Shipyard. This unique assignment will result in a development Plan that will convert Alang into a commercially successful ship recycling yard that will achieve a new benchmark in environmental and social standards

The Plan will review various aspects including the regulatory framework for ship breaking in India; identification of infrastructure needs for Alang, introduction of recycling to improve the economics of the yard; safety and training of workers including upgrading worker health, and housing needs for workers. A key feature of the assignment includes the development of a Disaster Management plan and an Environmental Management Plan to ensure compliance and monitoring of performance. The Plan includes development of effluent treatment systems and hazardous waste management to transform Alang into a world class ship recycling facility.

The development Plan would assess the size and growth of the global ship-breaking market and potential market share that Alang could capture. The global trend towards phasing out of single hull tankers will enable Alang capture this opportunity and become a leading player in this market. The Plan would improve Alang's competitive advantage, both in terms of the cost of ship breaking and adherence to environmental and social best practices.

Alang will not only be compliant with international performance standards, but also be promoted as a "Green Recycling Facility" that uses higher end technologies and state-of-the-art infrastructure. A key outcome of this Plan would be the formation of a Special Purpose Vehicle (SPV) to Develop, Maintain and Operate the Alang Ship Breaking Yard a Public Private Partnership (PPP) basis

IL&FS Ecosmart is a wholly owned subsidiary of Infrastructure Leasing & Financial Services Limited. The Company focuses on environmental and social mandates related to infrastructure projects.