While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the proposed investment will have impacts which must be managed in a manner consistent with the following Performance Standards: PS 1: Social and Environmental Assessment and Management System;PS 2: Labor and Working Conditions;PS 3: Pollution Prevention and Abatement; andPS 4: Community Health, Safety and SecurityNo involuntary resettlement will occur due to the Project as the WTG sites are free of residences and the access road alignments, electricity line right-of-ways and substation site will avoid settlements and individual houses. The purchases of private land has commenced and will continue on a willing seller – willing buyer basis, with no involuntary resettlement (physical or economic) expected, therefore PS5 (Land Acquisition and Involuntary Resettlement) is not applicable. The Developer has been and will continue undertaking negotiated purchase of private land at market rates through its land agent. In the case of interconnecting 33 kV lines between WTGs and Hiwarwadi substation, and the 220 kV transmission line connection from Hiwarwadi substation and the existing 220 kV grid line, the Developer will pay lump sum compensation negotiated with each affected landowner for every parcel of land affected by these lines, either per pole/tower site and/or for the line right-of-way (RoW). No nationally or internationally endangered avifauna species exist on the Project site or in the immediate vicinity, nor are any protected areas on or close to the Project site. Part of the site is located on Government Forest land that will be utilized for 19 WTGs and associated access roads and interconnection lines. This Forest land mainly supports open grassland only, with occasional scattered shrubs. The Mayani bird sanctuary, an informal and ungazetted wetland, is located 8 km south-west of the nearest proposed WTG site. Accordingly, no significant adverse impact on biodiversity (PS6) is likely to be caused by the Project. With regard to PS7 (Indigenous Peoples), no material degradation or adverse impact is expected on land resources on which indigenous peoples are dependent. Regarding PS8 (Cultural Heritage), no cultural heritage is expected to be adversely impacted as the site does not contain any archaeological monuments or sites as per the Archaeological Survey of India, or any historical and cultural monuments. A small Bhiroba temple of a local deity is located on the main Project ridge between proposed WTGs 23 and 24. These turbine sites are set back 120 m and 150 m respectively from the temple to minimize disturbance and access to the temple will not be disrupted.

The proposed investment in the Project is classed as Category B because a limited number of specific environmental and social impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines and design criteria. Potential adverse construction impacts are likely to be limited to project sites, short term, able to be effectively managed and mitigated, and likely to have no or limited impact on environmentally sensitive features and sites. Project operational impacts are also manageable and generally mitigable through appropriate design and the implementation of suitable engineering and management measures. BGEL will manage its environmental and social performance in accordance with applicable national and local laws and regulations and international standards, including IFC’s Performance Standards on Social and Environmental Sustainability.

BGEL has prepared a Social and Environmental Management Plan as part of the ESIA, for measures to avoid and manage potential adverse Project impacts with the aim of compliance with environmental and social requirements during construction and operation. Compliance will be in accordance with applicable Indian laws and regulations and IFC’s Performance Standards. The main management measures that will be implemented are summarized below, with additional information provided in the attached documentation. PS 1: Social and Environmental Assessment and Management SystemBGEL plans to develop a Project-specific Environmental Management System under ISO 14001:2004 and an OHSAS Management System under BS 18001. The system will set out the purpose, scope, management responsibility, performance criteria and management activities for: legal and other requirements; hazards and risks; the management program; training; communication; documentation; emergency preparedness and response; monitoring; and reporting. BGEL will ensure adherence to the IFC Performance Standards that are applicable to the Project through the implementation of this system. Wind power projects in India do not require the preparation of an environmental and social impact assessment for planning approval purposes, but BGEL commissioned SENES, an independent consultant, to prepare an ESIA to assess potential impacts and design appropriate avoidance and mitigation measures in accordance with IFC Performance Standards. The ESIA (March 2011) assessed the primary potential impacts of the Project (noise; bird strike; and land acquisition), as well as secondary potential impacts (air quality; other ecological impacts on flora and fauna; land use change; water, wastewater and sewage; hazardous and solid waste; cultural heritage; air navigation; visual effects; community health, safety; and socio-economic impacts. The ESIA also provided a Social and Environmental Management Plan (SEMP) for the avoidance and mitigation of adverse impacts. Project construction and operation will be undertaken by ReGen, a company highly experienced in the in this field. The Developer will implement its quality, environment, health and safety management system for wind power construction and O&M activities, consisting of its certified ISO 9001, ISO 14001 and OHSAS 18001 management systems. BGEL will ensure that the mitigation measures described in the ESIA are fully implemented during Project construction and operation by the Developer. The site is not a known bird migratory corridor. The nearest waterbody to the site is 4 km away and no nationally or internationally endangered bird species use the site as habitat. While a significant impact on birds is not expected, BGEL, through the Developer, will: (a) improve blade visibility by colouring the tips orange; (b) train staff on undertaking bird/bat strike monitoring; (c) implement a bird/bat strike monitoring program; and (d) if the proposed monitoring program indicates significant bird/bat strikes, consult with and implement measures recommended by ornithologists/wildlife specialists to address the impacts, including, if required, a shutdown protocol and enhanced collision monitoring program.Land use change will be restricted to the conversion of around 30 ha of grassland and a minor area of marginal cultivation to WTG sites, transformer switchyards, access roads and support facilities. Grazing will be allowed to continue on the remainder of Project acquired land (around 45 ha) as these areas will not be fenced. BGEL will implement procedures to ensure that: (a) the Developer / O&M contractor implements its ISO 9001, ISO 14001 and BS OHSAS 18001 certified management systems during Project construction and operation; (b) mitigation and monitoring measures for construction and operation phases delineated in the ESIA and any additional mitigation measures described here are implemented; (c) site risk management and emergency response plans are developed and implemented; and (d) environmental, occupational health and safety (EHS) incidents are investigated and corrective actions are implemented. PS 2: Labor and Working ConditionsBGEL will develop a specific Construction Site Occupational Health & Safety Management Plan that will be OHSAS 18001 certified. This management system will be in accordance with Indian law and IFC requirements. It will contain: management aims/goals; responsibilities; safety program, procedures and rules; occupational health requirements; emergency response plan; and a summary of Indian safety standards. The Developer has a policy of employing local people for construction labor and security personnel. The Developer will employ around 200 workers during the 7-8 month construction period, primarily coming from local villages to whom it will give employment preference where skills match available jobs. Workers will be issued personal protective equipment (PPE) in the form of hard hats, boots, gloves and any other protective gear required for specific tasks. Safety harnesses will be compulsory for working at height, including climbing the WTG for maintenance purposes. Construction workers from outside the area (around a maximum of 15-20) will be housed offsite in existing accommodation. The Developer will employ 6-10 staff for Project operation and provide facilities that include: potable water that meets national standards; toilets, washing and cleaning facilities; canteen/mess or fuel for cooking; and waste management. The Developer will provide adequate safety training to all construction and operation staff and follow all health and safety norms, undertaking supervision and monitoring as required. Safety signage will be erected on and within each tower and on the transformer yard fence, and a first aid kit and fire extinguisher will be provided inside each tower. The Developer’s general workplace training program covers PPE use, use of first aid kits and fire extinguishers, working at height procedures and emergency procedures. BGEL will periodically review the OHS performance of the Developer during Project construction and operation. PS 3: Pollution Prevention and AbatementA temporary impact on ambient air quality is expected during construction from the generation of dust from foundation and road excavation, concrete batching and vehicle movement. Dust will be minimized by covered loose material during transport, suppressing dust at the batching plant and avoiding dust generating activities during periods of high wind. Baseline daytime noise levels in local villages marginally exceed the national standard, while night time levels are within the standard. Construction noise will mainly be generated during the daytime at WTG sites that are 400 m or more from local villages, therefore the impact is expected to be negligible. Water consumption for project construction is estimated to require 9,000 L/day for the workforce and 50,000 L per tower foundation. Construction water will be pumped from local surface or ground water sources agreed to with local villagers, while bottled drinking water will be provided for consumption. Water requirements during operation are estimated at 500 L/day for domestic purposes/toilet water for operation staff, which will be obtained from a source agreed to by the local communities and possibly through rainwater harvesting. Sanitary wastewater volumes generated during construction and operation will average an estimated 7,200 L/day and 400 l/day respectively. Wastewater will be disposed of via soak pits that will be located at least 500 m from any bore wells or other underground water sources. As the groundwater is estimated to be around 45 m deep no contamination should occur from wastewater disposal. The small volume of hazardous wastes that will be generated, such as empty paint and transformer oil containers, will be disposed of in an appropriate manner. Site erosion will be minimized by limiting WTG site disturbance to the minimum are required, providing adequate road drainage and revegetating disturbed areas. Surplus excavated earth from WTG foundations (around 30 m3 of spoil per site) will be used in road works or formed into a raised pad adjacent the WTG foundation. Solid waste (e.g. packing material, metal and debris) will be collected, stored and disposed of appropriately. The Developer / O&M contractor will ensure that hazardous materials (paints, lubricants and oils etc) brought onto the Project site and hazardous waste generated by Project activities (leftover paint, oil soaked material, empty oil and paint drums, filters etc.) are: securely stored; handled/used with appropriate care and personal protective equipment; segregated; and disposed of through entities authorized to handle and dispose of hazardous wastes. The Developer shall ensure that: transformers do not use PCB containing oils; and ozone depleting substances banned/phased out under Montreal Protocol are not used.  The Project will result in a reduction of GHG emissions by offsetting an equal amount of electricity generated by the current mix of grid generation sources. BGEL will develop the Project as a clean development mechanism (CDM) project under the Kyoto Protocol and earn carbon credits annually. The Project is expected to result in avoidance of 36,240 t CO2e per annum.  PS4: Community Health, Safety and SecurityThe Project area is relatively sparsely populated, a function of the overall agricultural productivity of the area (low fertility ridges interspersed with deeper valley soils used for cropping). Construction sites are generally remote from local settlements, but adverse impacts on the local community during Project construction and operation may include noise, dust, traffic, and an impact on water supply. Measures to minimize community health and safety risks during construction, described in the ESIA, include restricted working hours, sourcing water from sources agreed to by local communities, appropriate disposal of sanitary wastewater and hazardous waste, and providing outside workers with adequate facilities. The Developer will implement the measures contained in the ESIA and BGEL will monitor adherence to these measures. The Developer will prepare and implement an Emergency Response and Preparedness Plan to deal with emergencies such as electrocution, fire, community safety incidents and natural disasters. Emergency numbers will be displayed at site (viz. nearest police station, health centre) at the site for use by staff. The Project is not expected to result in community exposure to disease through the influx of migrant labor due to the Developer’s policy of employing local people for construction labour and security personnel wherever possible. Potential operational impacts on the local community and safety related impacts include noise, WTG failure, air navigation hazard, and reduced scenic quality of the area. The main noise sources from an operating wind farm are from blade movement through the air and tonal noise from the gearbox. The selected turbines (Vensys 77) do not have a gearbox therefore this noise source will be absent. Noise from blade movement is greatest downwind at lower wind speeds (generally between 3-8 m/s). The 1.5 MW turbine has a predicted noise level of 16.9 dB(A) at 2,600 m, making it a relatively quiet machine. The nearest residences to proposed WTGs are in Pulakewadi village, located 1,000 m to the north and at around 60-70 m lower elevation of the nearest tower. All other nearby villages are set back a minimum of 1,200 m from the nearest WTGs. Accordingly, all nearby villages will be unaffected by operational noise. If noise modeling indicates that excessive noise will be received in any village under certain wind conditions, the nearby turbine layout will be altered and/or the nearest turbine/s will be operated to minimize the noise received in the village. The Project is located in seismic zone III as per the seismic zoning map of India (IS 1893–1975). This moderate seismic hazard has been taken into account in the design of turbine foundations to prevent tower failure. Class lllA turbines have been selected for the site, capable of withstanding the estimated wind gust speeds that occur in this area without damage. Turbines are not proposed within any airport obstacle limitation surfaces, with the nearest airports being Kolhapur Airport (100 km), Solapur Airport (135 km) and Pune International Airport (145 km). Several wind power projects are operational in the Project area, while additional projects are being developed at Agaswadi and Vibudwadi by the Developer and other developers. These combined developments will cover a long length of ridgelines, but overall the cumulative visual impact of the combined developments on the landscape is deemed to not be excessive due to: (i) the absence of visually significant sites (e.g. heritage sites, unique landforms) in the immediate landscape; (b) the spacing of the combined developments on different ridges (all developments will not be visible from common vantage points such as roads and villages); and (c) the use of the same turbine across the sites, lowering the visual impact through uniformity of shape, size and colour. The nearest archaeological sites to the Project are Bhushangad Fort (13th century) 25 km from the nearest WTG, and Mahimangad and Wardhangad forts (17th century) 28 km and 46 km respectively from nearest WTG. The nearest notable temple is Gondawale Sansthan Temple, located 18 km from nearest WTG. The Developer/O&M operator will employ security personnel during Project construction and operation. Security personnel will not be armed, however the Developer will implement procedures to ensure that: past records of security personnel employed are screened; security personnel have clear objectives and permissible actions laid out; security personnel are trained in avoidance of human rights violations; security incidents are recorded, investigated and corrective action implemented; bona fide complaints against security personnel are investigated and appropriate disciplinary actions are implemented; and there is a grievance mechanism for aggrieved members of community or employees, in the event of a violation of the code for security personnel.

The ESIA consultants, as part of the impact assessment process, informally consulted with local villagers on the proposed project and construction and operation activities. Several local concerns were raised, including the effect of the turbines on rainfall. These concerns were addressed by MEDA on several occasions. BGEL will conduct stakeholder consultation meetings in Satara District to meet CDM requirements. BGEL will locally disclose the ESIA, in a culturally appropriate manner, and incorporate measures to address any concerns expressed by local community members. BGEL will also assist local communities, in consultation with the Gram Panchayat and local authorities, by exploring opportunities to contribute to local development and supporting some initiatives.The Developer is required to obtain a No Objection Certificate from the Panchayat (village level elected local self government institution) prior to implementation of a Project. The Developer is consulting affected households and communities on land and right-of-way purchase for the Project. The Developer has an unwritten policy of offering construction employment to local villagers. While there is informal and ongoing engagement with the nearest local communities, BGEL will further strengthen its engagement process by putting in place a formal community engagement plan in accordance with IFC’s Performance Standards. The community engagement plan will include procedures for receiving and responding to community concerns and requests, including a grievance redress procedure.

The Company will locally disclose the social and environmental information, including the Project ESIA, at the following location:The Gram Pradhan,Gram Panchayat Kukudwad, Panchayat UnionTaluk: MannDistt: SataraPost Office- KukudwadAny queries and/or comments about the Project may be directed to:Mr. Sanjay Prasad Gairola/Mr O.P. TanejaBhilwara Energy LimitedBhilwara Towers A-12,Sector-1, Noida NCR - DELHI, IndiaTelephone: +91 -1204390300 Fax: +91 91-120-2531648Email: sanjay.gairola@lnjbhilwara.com, opt@lnjbhilwara.com The EIA is also available on the company’s website at: www.lnjbhilwara.com