SUB-LEASE DEED

This Deed of lease made this …………….. day of …………, Two Thousand Six
between The Karnataka Renewable Energy Development Limited having its registered
office at 19, Maj. Gen. A.D. Loganadhan INA Cross, Queen’s Road, Bangalore-560
052 represented by its Managing Director (hereinafter referred to as “the Lessor”
which expression shall include his successors and assigns) of ONE PART and M/s
Bhoruka Power Corporation Limited having its registered office at 48, Lavelle Road,
Bangalore – 560 001 represented by Mr. R Gunasekaran, Manager - Commercial
(hereinafter referred to as “the lessee” which expression shall include all its
successors and assigns) of the other part.

WHEREAS, the Governor of Karnataka has granted the lease of the land described in the
schedule below to the Managing Director, Karnataka Renewable Energy Development
Limited, 19, Maj. Gen. A.D. Loganadan INA Cross, Queen’s Road, Bangalore-560 052
for the purpose of Sub-leasing the same to M/s. Bhoruka Power Corporation Limited
(BPCL). and Government have approved vide GO No. EN 318 NCE 2005, Bangalore
dated 20.10.2005 for setting up 5 MW wind farm at Nargund by M/s. Bhoruka Power
Corporation Limited for their Windfarm Project for a period of 30 years commencing
from 11.8.2003 by way of lease deed dated 14.2.2006 (and expiring on 10.8.2033)
registered as document no.BKI /NRD. CD NO.4 / 789 / 2005-06 of the year 2006 in the
office of Sub-registrar, Nargund.

WHEREAS, Karnataka Renewable Energy Development Limited (herein after called the
Company) is engaged inter-alia in the business of promotion and development of
renewable energy in the State of Karnataka.

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 : 2 :

WHEREAS, the lessee is a Company incorporated under the Companies Act, 1956 and is
empowered by its Memorandum of Association and the Lessee was allotted wind farm
project vide agreement-dated 27.10.2005 to Construct, run, manage and erect the Wind
Electric Generators.
Where as the lessee claims that they are experienced in and capable of establishing and
running wind farms.
WHEREAS Managing Director, Karnataka Renewable Energy Development Limited, 19,
Maj. Gen. A.D. Loganadan INA Cross, Queen’s Road, Bangalore-560 052 (herein after
called Managing Director) hereby grants the sub-lease of the land described in the
schedule below to M/s Bhoruka Power Corporation Limited for the purpose of
establishment of Wind Electric Generator for generation of electricity for a period of
Thirty Years commencing from 11.8.2003 subject to the following conditions to which
the aforesaid lessee has agreed.

1. The Lessee has the necessary power to enter into this deed and perform its
obligations under this deed and has taken all necessary action to authorize the
execution, delivery and performance of this deed in accordance with the terms
stipulated by the Company.

2. The lessee shall duly comply with any condition which may from time to time, be
imposed by the Government and shall indemnify and keep indemnified the
Company against the consequences for any breach or non-compliance of any
provision or conditions as aforesaid.

3. The sub-lease is liable to cancellation if it be found that it was grossly inequitable

or was made under a mistake of fact or owing to misrepresentation or fraud or that
there was irregularity in the procedure.

4. In the event of such cancellation of the Sub-lease the lessee shall not be entitled to
any compensation for any loss caused to him by the cancellation.

5. The lessee shall, so long as the lease be in force pay clear of all deductions a sum
of Rs.40,000/- (Rupees forty thousand only) per annum for the first 10 years, at
11th year onwards (the lease rent has to be increased by 10 % i.e. Rs.44,000/- per
annum and similarly at 21st year lease rent has to be increased by another 10% i.e.
Rs.48,400/- per annum), shall be in force for payment of lease rental for credit to
the general revenues of the Town Municipality through lessor, the first advance
installment of Rs.4,00,000/- (Rupees four lakhs only) which has been paid vide
General receipt No. 009745, Book No. 98 dated 23.3.2004 for a period of 10
years (i.e. upto 2013) and further sum of Rs.NIL on account of rates, taxes,
assessments and outgoings payable by the Government to the Corporation /
Municipality as a
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 (3)

result of his occupation of the land. The consolidated charge shall be payable to
the Town Municipality in advance annually made on the first day of August every
year commencing from the year 2013 and the first monthly payment to be made
and the subsequent annul payments on the corresponding day and month of the
succeeding years / months.

6. In the event of the Corporation Municipality/Panchayat varying its demand the

Lessor shall be at liberty to revise, without notice, the second part of the charge
referred to in condition (5) as the sum payable by the Lessee on account of
taxation by the Corporation / Municipality / Panchayat and, on such revision and
balance due shall become immediately payable by the Lessee.

7. If the Lessee fails to pay the Lessor any sums payable under the lease on the
respective dates on which they are made payable, it shall pay interest at 12
percent per annum on such amounts from the dates on which they were so payable
until the date of payment or recovery shall be levied.

8. The Lessee shall not do any act, which is permanently injurious to the land.

9. The lessee shall not make any excavation upon any part to the said land hereby
sub leased nor remove any stone, sand, gravel, clay or earth there form except for
the purpose of executing the work pursuant to the terms of this sub-lease.

10. The lessee shall not commence any erection, building, or structure to be erected
hereafter unless and until specification, plans, elevation, sections and other details
thereof shall have been previously submitted by the lessee for scrutiny and
approval by the concerned authorities and obtaining such certification by any
other authorities concerned.

11. The lessee may erect Wind Electric Generator in accordance with the Plan (s).

12. The lessee shall not use the premises sub-leased by the Lessor or immoral or illegal
purposes. The land and the buildings(s) thereon shall not be used for political
meetings. Nor shall any material prohibited under the Explosive Substance Act any
other acts shall be stored in the demised premises.

13. The lessee shall not do or permit anything to be done on the leased premises which
may be a nuisance, annoyance or disturbance to the owners, occupiers or residents
of other premises in the vicinity.
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 (4)

14. The Lessee shall not, except as provided erect buildings, fences or structures of a
permanent or temporary character on the land without the previous written sanction
from the Managing Director, KREDL, other than construction of project related
structures and buildings for the Wind Power Project.

15. The Lessee shall maintain the said land in a clean and sanitary condition to the
satisfaction of the lessor and shall also maintain the structures, if any, erected
thereon as aforesaid, in good and substantial repair to the satisfaction of the lessor.

16. The lessee shall not be compensated for any damage to his property on account of
fire, earthquake, lightening, storm riots, civil commotion or other irresistible force
or any other act of God.

17. The lessee shall fence the said plot of land leased at its own cost and expense and
keep it fenced during currency of the lease.

18. The lessee shall not prevent the officers and authorized employees of the lessor
with or without workmen at all times to enter upon the lands aforesaid to view the
conditions and state thereof.

19. The lessee shall not assign, mortgage, underlet the benefits arising under this lease
or give on lease and license the demised premises or any part thereof or any intent
therein or any paid thereof without the prior written consent of the lessor.

20.
(a) The lessor reserve to themselves the right to all sandalwood trees and their
branches and roots which exist at the time of lease (which are described in
the schedule attached) as well as those which may grow subsequently on the
lands leased and the Lessor shall be at liberty to cut or dig out any such
trees or their roots and branches and remove them from the land in question
be entitled to cut or remove them or cause them to be cut or removed
without the permission of the Managing Director, KREDL.

(b) The lessee shall take all reasonable measures to the satisfaction of the lessor
for the protection of the sandalwood trees from theft or damage and for the
careful protection of immature trees growing on the land.

(c) The lessee shall take steps to see that the marks made by the officers of the
Lessor on the sandalwood trees are preserved and are not tampered with and

(d) In the event of the infringement of, or failure to observe any of the
conditions mentioned in (a), (b), (c), above, the lessee shall pay the Lessor
such compensation as is determined by the lessor for any loss or damage
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 (5)

caused by such infringement or failure on his part. The lessor shall also be at
liberty to cancel the lease and re-enter on the land and the whole land shall
thereupon vest absolutely in the lessor. In that case the lessee shall not be
entitled to any compensation whatsoever.

21. The lessee may uproot, cut down or destroy such trees, plants, groves or bushes as
in the opinion of the lessor it is necessary to uproot, cut down or destroy to make
the land fit for the purpose of making approach roads to windfarm and may take
them free of charges and dispose of them in any manner he likes. The lessee may
level the ground by removing embanked pathways and filing up low-lying places on
the lane so as to make the ground fit for the purpose of making approach roads and
structures to the Wind Power Project and may mow and cut the grass thereon and
dispose of the same in any manner he likes and do any work on the lane, which in
the opinion of the lessor is necessary for such purposes.

Note: If the trees are valuable, it may be stipulated that the tree growth cut should
be handed over to the lessor or any officer deputed in this behalf for disposal.
22. The lessee shall remove immediately any unauthorized building, fence or structure on
receiving notice from the lessor and in default of immediately non-compliance with
any such notice, the lessor shall have power to remove the same and the lessee upon
demand made by or on behalf of the lessor pay the cost of removal and the cost of
the storage materials removed and take delivery of the same. The lessee shall have
no claim to any materials removed under this condition which shall not have been
taken delivery of or the cost of removal and storage of which shall have been paid
by the lessee on demand made as aforesaid.
23. The lessee shall not without the previous written sanction of the lessor permit any
person to use the land or any structure thereon or any portion of the land or
structure except as provided.
24 The lessee shall on termination or revocation of this grant, restore the said land to
the lessor in as good a condition as is consistent with the foregoing conditions.
25 The lessee shall be answerable to the lessor for all or any injury or damage done
to the said land and other Lessor property thereon except as is permitted by the
foregoing conditions.

26 The lessor may revoke the sub-lease wholly or in part if the sums specified in
conditions (5, 6 & 7) above or any part thereof shall remain unpaid for 15 days
after they have become payable whether formally demanded or not, or if the
lessee shall have contravened any of the conditions of the lease herein contained
and assume control or otherwise dispose of all or any part of the land and any
buildings, fences and structures thereon and the lessee shall not be entitled to any
compensation thereafter.
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 (6)

27 If the amount specified in condition (5, 6 & 7) above or any part thereof is in
arrear. It shall also be competent for the Lesser to recover the same from the
lessee as an arrear of land revenue.

28 The sub-lease hereby given may be revoked by the Managing Director, KREDL
acting on behalf of lessor after giving THREE month’s notice in writing with
sufficient reasons and shall be terminable by the lessee by giving to the Managing
Director THREE month’s notice in writing but without prejudice to any right of
action or remedy of the Lessor in respect of any antecedent breach of any of the
foregoing conditions. The lessee shall not in case of such revocation or
termination be entitled to any compensation in respect of any structures on the
land or any improvements effected by him to the land or for the loss caused by the
interruption of his occupation but he may, before the revocation or termination of
the lease takes effect or if the lease is revoked without notice within such time, as
may be allowed by the Managing Director in that behalf, remove such structures.

29 In the event of termination of the sub-lease under condition (26) or (28) the
Lessor shall be at liberty to levy proportionate rental up to the date of such
termination.

30 The lessor retains the right to utilize the free space available in the wind farm for
establishing Solar Photovoltaic based power plant for augmenting power
generation in the wind farm area sub-leased to lessee.

31. If any dispute or difference shall at any time hereafter arise between the
lessor and their officers, on the one part and the lessee as to the rights
duties or liabilities or either party in respect of any matter or thing relating
to arising out of the sub-lease or the construction or the meaning of all or
any of the provisions herein contained, the said dispute or difference shall
be referred for settlement to the arbitration of the lessor for the time being,
and its decision shall be final.

32. The sub-lease includes all rights, easements and appurtenances belonging
to the land or purports to belong to it or usually held or enjoyed with it.
The existing and customary right of lessor and the public in roads and
paths and rivers, streams and channels running through or bounding the
land and the right of lessor to the mines and quarries, adjacent to the land
are however reserved and are in no way affected by the sub-lease.

33. The execution, delivery and performance of this deed by the lessee does
and will not exceed any power granted to the lessee nor violate any
provisions of any law regulation or any order or decree of any
Government authority, agency or court to which the lessee is subject the
Memorandum and Articles of Association.
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 (7)

34. This agreement shall be governed by Indian laws for the time being in
force and civil courts at Bangalore shall have exclusively jurisdiction to
entertain and trying proceedings arising out of this Agreement.

SCHEDULE

DISTRICT : GADAG
TALUK : NARGUND
VILLAGE (S) : Dandapure and Peth

Boundaries
District Taluk Town or Sy No Area Area North South Sy East West Sy
village Acres guntas Sy No No. Sy No
No
(1) (2) (3) (4) (5) (6) (7)
Gadag Naragund Dandapur 527A1 16.00 05 1A/1 527A/13 502 273
e 527A/14 508
527A/15
Gadag Naragund Peth 1A/1 20.00 0 1A/9 527A1 1B 1A/2
1A/10 1C 1A/3
1A/11 1D 1A/4
1A/5
In witness whereof Managing Director, KREDL Bangalore acting for and behalf of and by
the order and direction of the Governor of Karnataka and the lessee aforesaid have
hereunto set their hands this________ day of ………….., Two Thousand and Six.
Execution:

Signed and delivered by the within named

KREDL represented by
For Bhoruka Power Corporation Ltd
Shri. ________________________

In the presence of ______________ R Gunasekaran

Authorised Signatory

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