Mr. Ashok Punj is the Managing Director and the main Sponsor of the Company. He has a Bachelors degree and a Masters degree in engineering from the Illinois Institute of Technology located in Chicago, Illinois. Mr. Punj has over 20 years experience in setting up industrial enterprises in diverse fields and managing them successfully.

On 30th Sept 2005, the promoters (Mr. Punj and his family) and affiliated companies held 71% of the Company’s equity and the balance of 29% was held by non promoters, including mutual funds, bank, FIIS, NRIs, the general public, etc.

Details of the project cost are given on the attachment found below:



IFC is exploring possible cooperation with the company to finance part of the project.

20.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	15.0
Equity	5.0

* These investment figures are indicative

The project is proposed to be located at the company’s facilities at the following locations:

- Anjar, in the state of Gujarat, is an industrial/port city about 850 km north of Mumbai on the main Western railway line. The plant site is 22 km from the main Gandhidham Railway station and is linked to the country’s large railway network. Anjar is also well connected by road, as it is on one of the major north-south national highways, giving the company additional logistical flexibility.

- Mehsana, in the Indian state of Gujarat, 35 km from Ahemdabad an industrial cum port city about 550 km north of Mumbai on the Western railway line. The plant site is 20 km from the Railway station. Mehsana is well connected by road as it is on one of the major north-south national highways.

- Bisalpur, in the Indian State of Rajasthan, in the district of Kota, is about 400 km south of Delhi on the main Mumbai Delhi railway line. It is well connected to Delhi and Mumbai. The plant site is 15-20 km from the main Mumbai-Delhi line and is linked to the country’s large railway network. It is also well connected by road, as it is on one of the major north-south National Highways, giving the company additional logistical flexibility.

- Vishakhapatnam (Vizag), in the Indian state of Andhra Pradesh, is an industrial city south east of Delhi on the main Southern railway line to Chennai. It is well connected by train to both Delhi and Chennai. The plant site is 7 km from the main railway line and is linked to the country’s large railway network. It is well connected by road, as it is on one of the major east-south National Highways, giving the company additional logistical flexibility.

- Panipat, in the Indian State of Punjab, is about 100 km north of Delhi railway line, is well connected to Delhi by road and railways.

- Daman, is a union territory about 200 km north west of Mumbai on the main Western railway line, is well connected by 3 hours by train to Vapi (industrial city of Indian state of Gujarat). The plant site is 2-3 km from the main Railway station at Vapi, The nearest airport is about 150 km away at Diu, Daman.

- Pipavav, Distt. Kutch, in the Indian state of Gujarat, a port city about 950 km North West of Mumbai on the main Western railway line, is well connected to both cities 8-10 hours by train to Ahemdabad (capital city of Indian state of Gujarat) and overnight to Mumbai. The plant site is 10 km from the main Rajula Railway station and is linked to the country’s large railway network. The nearest airport is about 150 km away at Diu, Pipava.

The development impact of the project includes the following:

- Help a Mid-Sized Company Significantly Upgrade Its Competitiveness:
The project will support an experienced and successful operator in its drive to become a regional player in the ongoing expansion of the oil, gas, and water sectors. The Company can serve as a model for firms that want to go from being national to regional players.

- Development of Advanced Technology:
The project includes the setting up of two-stage welding process pipe mills. This new technology will enable the mill to produce at more than two times the speed of a conventional spiral pipe mill. The successful implementation of the project will increase the efficiency of the Company. This new technology will require the Company’s workers to upgrade their technical skill levels and will have a demonstration effect on other medium-sized companies.

- Development of Good Quality Infrastructure:
PSL’s increased efficiency and capacity will contribute to the supply of pipes which are needed to meet the increased demand in infrastructure, especially in water as well as oil and gas (e.g. the Krishna Godavari Basin). This will help meet commitments by the state governments to provide water, sanitation services and irrigation to a much larger section of the population. Improved availability of good quality water will have the added benefit of improving the environment and the health of the domestic population.

- Assist Regional and Local Economic Development:
The project will help to support business development in the area. Expansion of four mills (to be completed by 2007) will create hundreds of new jobs during its operation and provide opportunities for local businesses during the construction period.

IFC''s primary role will be to support the long-term viability of a second tier Indian corporation by:

- providing long-term capital to and assisting in completing the company’s balance sheet restructuring;
- helping to enhance company’s current corporate environmental and occupational health and safety management practices, ensuring compliance with both local and World Bank environmental and social guidelines;
- contributing to the upgrading of the company’s management information systems and working capital management practices; and
- making the company more attractive to local and international customers and investors through IFC’s support.

This is a Category B project according to IFC''s environmental and social review procedure because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.

The environmental and social issues associated with this project which were assessed during the appraisal were corporate environmental, social, and occupational health and safety management systems; compliance with local and national environmental and occupational health and safety laws; land acquisition for the new production facilities and physical or economic resettlement if applicable; source of power, including fuel storage if applicable; air emissions from existing and new sources; ambient air quality and noise impacts on nearby receptors; handling and storage of hazardous materials; minimization, recycling and disposal of solid and hazardous wastes; fire and life safety and emergency response; and employee relations and retrenchment.
Location of environmental documents In locally affected community
Environmental documentation will be made available at the following location:

PSL Towers
615, Makwana Road
Marol, Andheri (E)
Mumbai – 400 059