RT-29: Energy Department - Sanction of Rs.1,90,72,147/- (i.e., Rs.1,90,00,000/- towards principal and Rs.72,146/- towards interest) to AP Power Finance Corporation Ltd., on A.P. Power Bonds Series 1/2004 on put Option under option ‘B’ due on 18.03.2012 – Administrative orders - Issued

GOVERNMENT OF ANDHRA PRADESH ABSTRACT Energy Department - Sanction of Rs.1,90,72,147/- (i.e., Rs.1,90,00,000/- towards principal and Rs.72,147/- towards interest) to AP Power Finance Corporation Ltd., on A.P. Power Bonds Series 1/2004 on put Option under option ‘B’ due on 18.03.2012 – Administrative orders - Issued. --------------------------------------------------------------------------------------------- ENERGY (POWER.III) DEPARTMENT G.O.Rt.No.29, Dated:01-03-2012. Read the following:- 1. Govt.Lr.No.230/Pr.III(2)/2011-8, Energy (Pr.III) Department, dated.22.03.2011. 2. G.O.Rt.No. 84, Energy (Power.III) Department, dated.21.04.2011. 3. G.O.Rt.No.159, Energy (Power.III) Department, dated.25.11.2010. 4. G.O.Rt.No.88, Energy (Power.III) Department, dated.05.05.2011. 5. G.O.Rt.No.131, Energy (Power.III) Department, dated.19.08.2011. 6. G.O.Rt.No.3805, Finance (DCM-I) Department, dated.17.10.2011. 7. G.O.Rt.No.166, Energy (Power.III) Department, dated.24.10.2011. 8. G.O.Rt.No.4127, Finance (DCM-I) Department, dated.21.11.2011. 9. G.O.Rt.No.187, Energy (Power.III) Department, dated.07.12.2011. 10. G.O.Rt.No.4482, Finance (DCM-I) Department, dated.27.12.2011. 11.G.O.Rt.No.3, Energy (Pr.III) Department, dated 05.01.2012. 12. G.O.Rt.4497, Finance (DCM.I) Department, dated 30-12-2011. 13. G.O.Rt.No.4,Energy (Pr.III) Department, dated 09.01.2012. 14. G.O.Rt.No.288,Finance (DCM.I) Department, Dt.28-01-2012. 15. G.O.Rt.No.19, Energy (Pr.III) Department, dated 02.02.2012 16. From the MD, APPFCL, Lr.No.MD/APPFCL/Power Bonds (1/2004)/ D.No.81/2012, Dt.01-02-2012. 17. G.O.Rt.No.658, Finance (DCM.I) Department, Dt.27-02-2012. -o0o- O R D E R:- The Managing Director, APPFCL, Hyderabad in his letter 16th read above, has stated that, as per the terms and conditions contained in Information Memorandum, the bond holders of A.P. Power Bonds (Series 1/2004 under Option ‘B’) will have the right to “PUT” the bonds, i.e., get them get them redeemed at par at end of the “PUT” option date from the date of allotment by forwarding request at least 60 days, but not earlier than 120 days prior to the due date (put date), the Investors of A.P. Power Bonds (Series 1/2004) have forwarded their requests for exercising “PUT” option which are having due (Put Option) on 18-03-2012 for an amount of Rs.1.90 Crores (on or before 18-01-2012 within 60 days). 2. The Managing Director, APPFCL has further stated that, a notice received from M/s Karvy Computershare and informed that 3 investors have forwarded their requests for an amount of Rs.1,90,00,000/-, on which final interest for an amount of Rs.72,147/- totaling to Rs.1,90,72,147/- payable on 18-03-2012. 3. The Managing Director, APPFCL has requested the Government to arrange funds of Rs.1,90,72,147/- (i.e., Rs.1,90,00,000/- towards principal and Rs.72,147/- towards final interest) before 10 days (i.e 08-03-2012) to the due date (i.e. 18-03- 2012) to APPFCL for onward transfer to No-Lien Account at SBH, Gunfoundry, Hyderabad for payment on due date. 4. The Finance (DCM-I) Department has issued BRO for Rs.190.73 lakhs vide G.O.Rt.No.658, Finance (DCM-I) Department, dated.27-02-2012 to the A.P.Power Finance Corporation, in relaxation of Treasury Control Orders and quarterly regulation orders, during the financial year 2011-12. Contd..2.::2:: 5. In terms of the orders issued in the G.O. 17th read above, Government hereby accord administrative sanction for an amount of Rs.1,90,72,147/- (i.e., Rs.1,90,00,000/- towards principal and Rs.72,147/- towards final interest) to AP Power Finance Corporation Ltd., A.P. Power Bonds Series I/2004 under Option ‘B’ due on 18-03-2012, for onward transfer to No-lien Account at SBH, Gunfoundry, Hyderabad for payment on due date. 6. The expenditure sanctioned in para (5) above, shall be debited to the following heads of accounts (a) “2049.Interest payments - 01.Interest on Internal Debt - MH.200 Interest on other Internal Debts - SH(25) Interest payable on Bonds raised by A.P. Power Finance Corporation- 450. Interest (Charged)” for Rs.72,147/- and (b) “6003. Internal Debt of State Government –MH. 109. Loans from other Institutions – SH. (13).Loans from A.P. Power Finance Corporation-560.repayment of Borrowings (Charged)” Rs.1,90,00,000/- during the financial year 2011-12 by the A.P.Power Finance Corporation, in relaxation of Treasury Control Orders and quarterly regulation orders, during the financial year 2011-12. 7. The Assistant Secretary to Government, Energy Department shall draw and disburse the amount through a cheque obtained in favour of the Managing Director, A.P. Power Finance Corporation Limited, Hyderabad. 8. The Managing Director, A.P. Power Finance Corporation Limited, Hyderabad shall submit the bills against the due dates mentioned at para (5) above and also submit the utilization certificate for the said amount. (BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH) DINESH KUMAR PRINCIPAL SECRETARY TO GOVERNMENT To The Managing Director, A.P. Power Finance Corporation Limited, Hyderabad. The Director of Treasuries & Accounts, Andhra Pradesh, Hyderabad for issue of authorization. The Pay and Accounts Officer, Hyderabad. The Dy. Pay and Accounts Officer, Secretariat Branch, Hyderabad. The Energy (OP-claims) Department. Copy to:- The Accountant General, A.P., Hyderabad. The Finance (DCM.I) Department. SF/SCs (C.No.230/Pr.III(2)/2011) //Forwarded:: By Order// SECTION OFFICER