New York / Mumbai / New Delhi, 1 July, 2010: The Blackstone Group (NYSE: BX) today announced that it will be investing INR 2750 million (approximately USD 60 million) for 12.5% equity stake in Monnet Power Company Limited (“MPCL”), an independent power producer (“IPP”). MPCL is developing a 1,050 MW coal fired power plant in Orissa backed by pit-head captive coal mines, and has a pipeline of a further 2000 MW under development. MPCL is a 100% subsidiary of Monnet Ispat & Energy Limited (“MIEL”), which is India’s second largest manufacturer of integrated coal-based sponge iron.

Commenting on the association, Sandeep Jajodia, Executive Vice Chairman and Managing Director of MIEL and Director of MPCL, said: “I am glad to partner with one of the largest private equity investors in the world. Their interest in sharing knowledge with management and their deep understanding of the power industry globally and in India, will add value to MPCL in several ways for the benefit of its shareholders. We will be able to utilize our experience in setting up power plants and developing mines, while leveraging Blackstone’s global linkages and knowledge base”.

Akhil Gupta, Chairman and Managing Director of Blackstone Advisors India Private Limited, said: “Infrastructure development is critical for India’s growth and Blackstone is excited about participating in India’s growth through investments in the power sector. We believe that Monnet Power with its mine mouth coal plant has one of the lowest cost of producing power and, hence, is among the best positioned IPPs in the country. In addition, we have been impressed with the track record of Monnet’s management team in developing mines and executing projects. Our extensive experience in the power sector globally will enable us to be value-added partners to management and strengthen the Company’s position.”

Kotak Investment Bank acted as the exclusive financial advisor to MPCL on the transaction.

About Monnet Power Company Limited and Monnet Ispat & Energy Limited:

Monnet Power Company Limited: MPCL is an IPP that is in the process of developing power generation capacity of approximately 3000 MW.

Monnet Ispat & Energy Limited: MIEL is promoted by Mr. Sandeep Jajodia. Its principal activities include manufacturing and marketing of Sponge Iron, Steel and Ferro Alloys. In addition, MIEL is engaged in mining of coal and power generation for captive consumption. The Monnet Group has manufacturing facilities in Raipur and Raigarh in Chhattisgarh and is currently implementing a 1.5 Million Tons integrated steel plant to produce plates, structurals and rebars at its facility at Raigarh in Chhattisgarh to cater to the high growth infrastructure sector.

The Monnet Group recently entered into a JV with National Mineral Development Corporation (“NMDC”) to acquire and develop coal blocks in India with reserves of between 200 mm and 300 mm tons, some of which will be used to develop future power plants. Further information is available at http://www.monnetgroup.com

About The Blackstone Group

Blackstone is one of the world’s leading investment and advisory firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, the companies we advise and the broader global economy. We do this through the commitment of our extraordinary people and flexible capital. Our alternative asset management businesses include the management of private equity funds, real estate funds, funds of hedge funds, credit-oriented funds, collateralized loan obligation vehicles (CLOs) and closed-end mutual funds. The Blackstone Group also provides various financial advisory services, including mergers and acquisitions advisory, restructuring and reorganization advisory and fund placement services. Further information is available at http://www.blackstone.com

A memorandum of understanding for the proposed JV was signed on Tuesday. “As part of the agreement, Monnet will provide technology and expertise for coal mining,” said Ajay Bhatt chief financial officer of Delhi-based sponge iron maker Monnet Ispat. The coal will either be sold commercially or be used internally for power projects that the JV may intend to set up in future.

Besides developing its own mines the JV will also help explore and develop mines for other companies, Mr Bhatt said. The new venture is expected to be set up in the next few months and investments in the company will depend on the size of the coal mine to be developed. According to mining experts, the development of a 100 mt mine may entail investment of Rs 200 to 250 crore on an average.

NMDC has set a target to own at least 2 billion tonne coal assets in the country over the next five years. The iron ore miner has two thermal coal blocks in Madhya Pradesh. Sandeep Jajodia-led Monnet Ispat runs a 5-lakh tonne steel plant at Raipur in Chhattisgarh. It is establishing a 1.5 mt integrated plant along with an 80-mw power generation unit at the same location.

As per the agreement the various national teams – senior men, juniors and sub juniors along with the senior women, juniors and sub juniors — would be covered, a media release from IBF’s marketing agent Percept said.

Monnet would also launch ‘Fight Nights’ featuring India’s first-ever indoor exhibition boxing bouts between top Indian and international boxers all around the country at specific intervals, the release said.

The ‘Fight Night’ would be a mix of the entertaining sport of boxing with live entertainment combined with a premium experience for the audience already seen in the US and Europe.

The bouts would be held in malls, multiplexes, discos, clubs, open grounds, college campuses, amusement and theme parks, the release added.

Olympic bronze medallist Vijender Singh, the world number one in 75 kg Category, welcomed the deal and said the country had talented boxers who needed support to take the sport forward.

“We are extremely happy with these recent developments in boxing. We have the talent but boxing in India needs a supporter like the Monnet Group to take it forward,” he said.

IBF chief Abhay Singh Chautala said the deal was the ideal boost to Indian boxing into making them world-beaters.

“This is a sign of good work that we have been trying to do, this was just the right boost that we needed to keep working much harder into making our boxers the world beaters that they already are on their way of becoming,” he said.