GE Power India Chairman Speech

Dear Shareholders,



It gives me great pleasure to present the Annual Report on performance

of the Company during the year ended 31 March 2012.



At the outset I would like to announce that the name of your Company

has changed from ALSTOM Projects India Limited to ALSTOM India Limited

with effect from 06 June 2012, pursuant to the Scheme of Amalgamation

amongst ALSTOM Projects India Limited (the "Amalgamated Company"),

ALSTOM Holdings (India) Limited (the "Amalgamating Company") and their

respective shareholders as approved by the shareholders of the Company

on 12 January 2012 and sanctioned by the Hon''ble High Courts of Bombay

and Delhi on 31 March 2012 and 23 February 2012 respectively.



ALSTOM has been committed to India since 1911. One hundred years. Not a

mean feat. And God willing will remain committed for the next hundred.

We have set up manufacturing facilities in India in all areas of

expertise we possess and policies of India allow us to. In Durgapur we

have expanded our boiler facility to keep pace with the demand through

our licensing relationship with BHEL for supercritical boilers. Your

company has a showpiece facility that has all the capacity to supply

hydro power equipment in Vadodara. Your company has the best in

Thermal Power services and in Engineering your Company has skilled

engineers second to none. In air-quality control systems and power

automation and controls your Company is a leading supplier in the

country.



Over these years, your Company has been contributing significantly to

the growth and development of infrastructure in India and moving

forward, will continue to partner the nation in its growth to success.



Before I dwell upon about the performance of your Company in the year

under review and our future plans, I would briefly outline the major

developments that framed our operating environment.



Business environment



To be sure, despite some signs of recovery in both the national and

global economies in the past year, uncertainty remains. However,

developing markets like China and India are experiencing fast growth,

while much of the developed world is dealing with sluggish growth and

fiscal constraints. By 2013, India will have all the needed capacity

to manufacture, supply, erect and commission its own power generation

plants in all manner and type of power – coal, hydro, nuclear, wind and

solar as well as do the in-house EPC for gas, with the latest in

transmission in 765 kV and 1200 kV being locally supplied. Electricity

is going to be to the economy of India from here onwards what wheat,

rice and milk were in the formative years of the Republic of India. It

is well established that the contribution of electricity growth to the

GDP growth is now 1:1.



Indian Railways is expanding its network rapidly by executing several

new lines, doubling and gauge conversion projects though the need for

improvements in infrastructure and technology is immense to keep pace

with the economic growth forecast for the country.



Your Company is poised to participate and contribute in the emerging

opportunities in both power and rail transport sectors.



Company''s Performance



I would like to inform you that during the financial year ended 31

March 2012, your Company has achieved revenues of Rs. 24,121 million

and Profit after tax of Rs. 1,678 million as against the revenues of

Rs. 18,036 million and Profit after Tax of Rs. 1,689 million in the

previous fiscal 2010-11. This has resulted in slightly lower earnings

per share of Rs. 24.95 as compared to Rs. 25.20 in the previous year.



Keeping this in view, your Board of Directors has recommended a

dividend of Rs.10/- (100%) per share on the equity shares of the

Company.



I would now like to briefly highlight the two sectors in which your

Company operates:



Power



The year 2011-12 witnessed sluggishness of market mainly due to fuel

constraint for Thermal (Coal & Gas) and statutory clearances for Hydro

projects. Given the aggressive targets being set for the 12th Five Year

Plan of the Government of India, it is still expected that the demand

for power equipment and services will continue to grow in near future.

Coal will still be the major fuel for power generation; growth is also

expected in hydro and renewable energy. However, India is rapidly

increasing its generating capacity.



Major orders received during the year for hydro mechanical products was

Tehri for Rs.6,047 million, Tashiding for Rs.1,080 million, Dikchu for

Rs.805 million and Khatima (retrofit) for Rs.752 million and export

orders of Itezhi Tezhi, Revin and Salamonde for Rs.1,439, Rs.587 and

Rs.397 million respectively. Further, the orders for heat recovery

steam generators from Tuymenskaya (Russia) for Rs.1,811 million, for

supply of Environmental Control Systems from NALCO Angul for Rs.441

million, Rastriya Ispat Nigam, Vizag for Rs.374 millon. The Transport

segment won contract for Train control Systems for Jaipur Metro for

Rs.487 million. In addition to the above, your company won the orders

relating to the Tanjung Bin (Malaysia) project for auxiliaries and

Environment control systems for Rs.1,892 million.Sales at Rs.24,121

million reflect execution schedule of orders in hand.



Transport



The rail transport sector in India has expanded manifold in fifty

years after independence, both in terms of spread and capacity. The

growth in the importance of rail transport within the transport sector

is borne out by its growing share in GDP.



During the financial year under review, several opportunities of the

Indian Railways and Metro projects did not materialize as anticipated

due to deferment and rescheduling. We are optimistic to participate in

the demands and requirements of Indian Railways to upgrade its

infrastructure and technology opportunities as and when they do arise

in future.



This year witnessed your Company''s consortium delivering the signalling

and train control systems for Reach 1 (Baiyapanhalli Terminal to MG

Road of Phase 1) of Bangalore Metro on which revenue services commenced

in October 2011. We also successfully commissioned in February 2012

digital audio frequency track circuits on the Western Railway''s

suburban line to Churchgate under a World Bank financed project of

Mumbai Rail Vikas Corporation. The other on going projects includes the

balance of work on Bangalore Metro Signalling project and the contracts

for Chennai Metro.



The TIS (Transport Information Systems) operation in Bangalore has

expanded its activities this year assuming a greater role in

engineering and R&D projects, both in India and globally. We expect the

expansion of activities in Bangalore TIS to continue in the forthcoming

year as well. Company''s Transport Unit in Coimbatore is gearing up for

the manufacture of traction components which will be used on the Metro

trains for Chennai Metro.



With the advent of several new metro and Indian Railway opportunities,

your Company will be in a position to increase the volume of its

current activities in the transport business.



Environment, Health & Safety (EHS)



Your Company lays great emphasis on the health and safety of its

employees, customers, contractors and stakeholders. The Company

maintains high standards of safety, health and environment care at all

its operating locations, always ensuring scale of operations without

compromising on the standards of safety, health and environment.

Compliance with relevant regulations and effective management of these

issues is an integral part of Company''s operating philosophy. EHS is

managed and controlled in your Company through an integrated EHS

Management System providing continuous improvement in the EHS

Performance. Established systems and procedures are constantly revised

for improvement to achieve higher standards of safety, occupational

health and environment protection. The most recent initiative at the

Group level called "Fatality Prevention Plan" aims to prevent

fatalities by focusing on high-risk activities and on sub-contractors.



All major locations of ALSTOM have well equipped health care facilities

/ arrangements. Your Company enables awareness programs on EHS for

creating and maintaining awareness among employees about safety and

health related issues. The extensive EHS specific training modules

covering various target participants help in upgrading EHS skills and

knowledge throughout the Company.



Corporate Social Responsibility



ALSTOM has a rich history of corporate social responsibility, a history

that has grown and evolved to meet and address the complexities of

today''s business challenges. Under the aegis of ALSTOM FOUNDATION, that

supports a wide range of initiatives based in the heart of communities,

this legacy today continues to grow and guide our company and our

people.



In a recent initiative, a unique project launched by Husk Power System

to electrify rural India has received the support of ALSTOM Foundation.

The project aims at improvement of power plants by retro-fitting dry

gasifiers to 65 small existing biomass plants in the state of Bihar in

India. It will also provide vocational programmes and training for

women through manufacture of incense sticks using the ash from these

plants. In Bhutan, ALSTOM Foundation is involved in the supply of

energy-efficient, low-carbon emitting gas-stoves to promote social

progress driven by environmental improvements and awareness.



Acknowledgements



I wish to take this opportunity to express my sincere gratitude to the

members of the Board of Directors for their professionalism and

dedicated contribution to steer the Company towards excellence. My

special thanks also go to the management team and staff members for

their continued contributions and commitment towards the Company. I

also wish to extend our thanks to our valuable shareholders, customers,

business associates, investors as well as banking institutions and

relevant authorities for their continued support, guidance and

confidence in the Company. In addition, I am particularly thankful for

the strong support of the ALSTOM Group throughout the year as always.



I look forward to reporting to you on our successes and progress in

2012-13.



With warm regards,



Sunand Sharma



Chairman



ALSTOM India Limited