PERFORMANCE GUARANTEE GMR Infrastructure limited EPC Division 4/1, IBC Knowledge Park, Phase II, D Block, 4th

Floor, Bannerghatta Road, Bangalore 560 029 Sub:

Structure works on Chennai Outer Ring Road

In accordance with Subcontract Agreement No. GIL/R002/C&C/11-12/04, dated 14.03.2012 between GIL-EPC (Employer) and KNR Constructions Limited, KNR House, 3rd & 4th Floor, Plot No.114, Phase - I, Kavuri Hills, Hyderabad 500 033 for undertaking, inter alia, the Structure works on Chennai Outer Ring Road (the Works). The Employer desired to carry out certain Works through contractors, and invited bids from various Contractors and pursuant to the bid submitted by M/s. KNR Constructions Limited, a company incorporated under the Companies Act 1956 and having its registered office at

KNR House, 3rd & 4th Floor, Plot No.114, Phase-I, Kavuri Hills, Hyderabad 500 033 (hereinafter referred to as Contractor), the Employer vide letter
GIL/R002/C&C/11-12/04, dated 14.03.2012 (hereinafter referred to as Order) placed an order on the Contractor for the execution and completion of such Works and to remedy any defects therein, on terms and conditions in accordance in the Conditions of Contract attached thereto.

Contd.2

(2) Whereas, pursuant to the Order, the Contractor has to undertake such work and has to furnish a performance security by a Recognized Bank for the sum specified therein as security for compliance with the obligations in accordance with the contract pursuant to Clause 13 (performance Security) of the General Conditions. AND WHEREAS we IDBI Bank Ltd, 5-9-89/ 1&2, P.B.No.370, Chapel Road, Hyderabad 500 001, India have agreed to give the contractor such a Bank Guarantee. NOW THEREFORE we, IDBI Bank Ltd, 5-9-89/ 1&2, P.B.No.370, Chapel Road, Hyderabad 500 001, India hereby affirm that we are the Guarantor and responsible to you, on behalf of the Contractor, upto a total of Rs. 5,62,53,526/- (Rupees Five Crores Sixty Two Lakhs Fifty Three Thousand Five Hundred Twenty Six only ) such sum being payable in Indian Rupees in which the Contract Price is payable, and we undertake to pay you, upon your first written demand forthwith and without cavil or without demur or without argument, any sum or sums within the limits of Rs. 5,62,53,526/- (Rupees Five Crores Sixty Two Lakhs Fifty Three Thousand Five Hundred Twenty Six only ) as aforesaid without your needing to prove or to show grounds or reasons for your demand for the sum specified therein. We hereby waive the necessity of your demanding the said debit from the Contractor before presenting us with the demand. We further agree that no change or addition to or other modification of the terms of the contract or of the works to be performed there under or of any of the contract documents which may be made between you and the Contractor shall in any way release us from any liability under this Guarantee, and we hereby waive notice of any such change, addition or modification. We further agree that you can assign this Guarantee in favour of any persons without any prior notice to us and we shall be obligated to consider such Assignee of this Bank Guarantee, upon your intimating us of the said assignment. Notwithstanding anything contained hereinabove: Our liability under this Bank Guarantee shall not exceed Rs. 5,62,53,526/- (Rupees Five Crores Sixty Two Lakhs Fifty Three Thousand Five Hundred Twenty Six only ) This Bank Guarantee shall be valid upto 31.05.2014 and We are liable to pay the guaranteed amount or any part thereof / under this Bank Guarantee only and only if you serve upon us a written claim or demand on or before 31.05.2014. Dated this 15th day of March 2012

SIGNATURE AND SEAL OF THE GUARANTOR ________________________

NAME OF BANK _____________________ ADDRESS ____________________ DATE _____________________ In the presence of 1. _______________________________________________________________ (Name and Occupation)

2.

_______________________________________________________________ (Name and Occupation)