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No. CS-II-1/2002(Pt.I)/ 703(227)
Dated. 26.12.2003

NOTIFICATION for All Bond Holders

To

ALL BONDHOLDERS.

Sub : 15.25% GRIDCO Power Bond Series-II/98 "Call option"-notice of redemption for residual paid-up value of Rs.50,000/- per bond.

Ref : ISIN_INE610F09028.

Dear Sir,

You are a registered Bondholder of captioned Bonds. Consequent to exercise of "Call Option" by GRIDCO on 21.12.2003 for partial redemption of the bonds, your bond holding as on date stands as under:

No. of Bonds:

Residual face value/paid-up value per bond : Rs.50,000/-(w.e.f. 21.12.2003)

Grid Corporation of Orissa Ltd.(GRIDCO) in exercise of the right under the terms of the issue of the captioned bonds hereby gives further notice for exercise of "Call Option" for redemption of the residual face value/ paid-up value of Rs.50,000/- per bond w.e.f. 26.02.2004 ("Effective Date") together with interest on the amount to be redeemed.

Further,the bondholders by this notice are advised as under:

• The Record Date for the redemption has been fixed as 11.02.2004.
• The bond(s) shall stand cancelled from the effective date and no interest will be accrued/payable thereafter.

The bondholders who hold the bonds in physical form shall have to surrender the bond certificate, to the office of the undersigned for cancellation. In case of the bondholders who have already sent their bond certificates for endorsement of partial redemption under the earlier "call option" shall be retained by GRIDCO for cancellation.

In the event of the bondholder who hold the bonds in physical form and do not send the bond certificate(s) for cancellation, the balance redemption amount shall be paid to the registered bondholder, whose name appears in the Bond Register of GRIDCO as on the Record Date.

In respect of the bonds which are in dematerialized form, the Registrar and Transfer Agent (RTA), M/s Cameo Corporate Services Ltd., Subramanian Building, No.1, Club House Road, Chennai - 600 002, on full redemption of the bonds, shall cancel the bonds under intimation to NSDL/CDSL.

In the meanwhile, the company is making arrangement to notify the depositories (NSDL/CDSL) to carry out the formalities to debit the above securities from the accounts of NSDL/CDSL upon full redemption of the bond.

Thanking you,

Your faithfully,

For & on behalf of GRIDCO

COMPANY SECRETARY