Please find below this mornings announcement for Caparo Energy Ltd (AIM: CEL).
Best, Philippe
Caparo Energy Limited ("Caparo Energy" or the "Company")
Progress with Suzlon: Delivery of Initial Projects Ahead of Schedule 2,000 MW Gamesa Agreement Secured Land for up to 3,000 MW Update on Mezzanine Funding
The board of directors of Caparo Energy (the "Board") is pleased to announce a number of developments in connection with the Companys operations.
Suzlon In connection with the Companys agreement with Suzlon Energy Limited ("Suzlon"), the Board is pleased to report that first deliveries, meaning commissioned and connected to the grid, of the initial 100.8 MW of projects, as announced on 28 January 2011, are now anticipated to commence by the end of June 2011, several months ahead of the previously announced schedule of Q4 2011.

The company has also recently drawn down a tranche of senior debt from its lenders for these projects.


In addition, the Company is currently in the process of finalising the sites for the remaining 400 MW of projects, which are due to be commissioned and connected to the grid by March 2012, and anticipates placing purchase orders for these between July and September 2011.

On this basis, the Board believes that the Company is on track to meet the roll-out schedule announced in January 2011, which would result in a cumulative 500 MW of capacity being commissioned by March 2012 and a further 500 MW to be commissioned progressively by March 2013.
Gamesa The Company also announces that it has entered into, through its wholly owned subsidiary Caparo Energy (India) Ltd, an agreement with Gamesa Wind Turbines Pvt Ltd ("Gamesa"), a global leader in wind turbine manufacturing, for the supply, erection, commissioning and operation/maintenance of a further cumulative 2,000 MW of turbine capacity for wind power projects to be set up in India (the "Gamesa Agreement").

The Gamesa Agreement provides for the turbine capacity to be delivered progressively from 2012 up until the end of 2016.
The Board believes that the Gamesa Agreement is priced attractively, relative to current market prices for each of the models of turbines to be supplied, and is subject to certain adjustments, for deliveries after the first 450 MW, based on an agreed formula to reflect changes in applicable international indices.

In return for the delivery of up to 2,000 MW of capacity, Gamesa will receive certain commitment advances over a period of three years..
Under the Gamesa Agreement, Caparo Energy will be responsible, inter alia, for site assessments and the procurement of the land required for installation of the wind farms.


Land The Company has secured land that it believes will be suitable for the installation of 3,000 MW of wind power generation farms in sites across various wind-rich states.

These include leases and direct allotments, licences and sanctions from the respective state authorities and the initial permissions for the installation and connection of power generation farms.
Preliminary wind assessment studies undertaken by the Company through an internationally recognised firm in this field indicate that these sites will represent attractive wind resources once developed.

The Company has commenced the installation of wind masts on these sites, in order to collect more detailed wind data, and anticipates that the first wind power projects for these locations will be commissioned from Q4 2012.
The securing of independent access to land and turbines is part of the Companys long-term strategy for value creation, as previously disclosed in its AIM Admission Document.
Funding As previously announced on 28 January 2011, in order to limit the Companys reliance on its internal cash flow in the short and medium term and to ensure that the Company is able to acquire generating capacity in accordance with the delivery timeframes set out in both the Suzlon and Gamesa agreements, the Company announces that it is in advanced discussions with a number of parties in connection with the provision of additional mezzanine financing and that several non-binding term sheets have been agreed.

This financing, which is anticipated to fund in excess of 600 MW of projects to be delivered under both the Suzlon and the Gamesa agreements, is expected to be finalised in various tranches by the end of Q3 2011.

A further update on the outcome of these financing initiatives will be provided in due course.
Ravi Kailas, Caparo Energys Chief Executive Officer, said: "We have been working closely with Suzlon and are pleased with the advancement of the delivery schedule of the initial projects and the progress on placing our next purchase orders with them. "The long term agreement with Gamesa represents the kick-off of our second phase of building wind farm capacity.

This has been achieved sooner than we expected.

The Indian wind energy market has been very active and we view the terms of this new agreement as favourable to us. Through our strong relationships with market leaders Suzlon and Gamesa, the Company should, be able to secure its supply of wind power capacity in a rising market at preferential pricing.

"Successfully securing access to land required to meet this supply will create significant long-term value for the Company and its stake holders."
Further information on the Company can be found at www.caparoenergy.com.
- Ends -
Philippe Polman Account Manager Direct line: +44 (0)20 7861 3921 Mobile: +44 (0)7841 672 830 Pelham Bell Pottinger 5th Floor, Holborn Gate, 330 High Holborn, London, WC1V 7QD Tel: +44 (0)20 7861 3232 Fax: +44 (0)20 7861 3233 www.pelhambellpottinger.co.uk
....................................... A CarbonNeutral(r) company
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