Gujarat NRE Coke to capitalize on export benefits & looking at power projects
(Press Release, March 28, 2005)

Gujarat NRE Coke Limited, Largest Coke Manufacturer in the country is setting up its third plant at Dharwar (Karnataka) to produce 400,000 MTPA of Coke. After completion of this project, total capacity of the Company will be more than 1 Million MTPA.

With the sky rocketing prices and uncertain availability of high quality coking coal, the company has decided to go for state of the art �Stamp Charging Facility� which is being imported from China. The Company will have benefit of using low cost coking coal also without compromising with quality of coke.

Once the stamp charging facility with technology for heat recovery oven is implemented, coke oven plants set up with heat recovery technology are capable of producing power at nominal cost, which may be taken up as forward integration project at a later date once full reform in power sector is in place.

Gujarat NRE, the only exporter of coke from India, already exported coke of value Rs.70 Crores since its first ever export to Brazil in July 2004. �The Company will save Rs.7 Crores by way of duty free import of capital goods under EPCG SCHEME and the proposed project will be more competitive in terms of cost of project and pay back period.

At present, we are having firm export contracts of FOB value Rs.135 Crores to be executed within March 2006, besides various other negotiations at advanced stage.

The other advantage of export is natural hedge against currency risk, as our country is dependent on imported coking coal.