Dear Shareholders
 
 Amidst various challenges faced by the power generation companies
 during recent quarters and the power sector as a whole in India, I am
 pleased to report that KSK Group has continued its asset setup progress
 and now crossed 900 MW of aggregate generation capacity on ground. As a
 result of Company''s continuous focus on optimizing generation from
 earlier operational power plants and with addition of new generation
 capacities from VS Lignite and Wardha, the generation stood at 2,793
 million units as against 1,001 million units during the previous year.
 
 KSK has registered an impressive growth in operational capacity while
 simultaneously experiencing pressures and volatilities with respect to
 fuel supplies, government policies and tariff realization. It is our
 belief that, while these developments could last for few quarters, this
 is only a temporary passing phase as the company has marshalled
 multiple efforts and strategies to deal and further strengthen the fuel
 security issues in the fast changing environment and emerge as one of
 the more stable and stronger player in the Indian power generation
 landscape.  Also, the Company''s effort to the alternative coal linkages
 has begun and we expect this to provide necessary impetus to margin
 improvements.
 
 Further on the construction side, significant progress has been made
 with respect to the 3600 MW KSK Mahanadi Power Project at Nariyara,
 Chhattisgarh with boiler drum lifting for two units having been
 achieved in recent months and hydro test targeted to be completed for
 both the units before end of the current financial year. With continual
 progress in the construction activity at this project site, the Annual
 Report 2010-11 | KSK Energy Ventures Limited
 
 Company anticipates to commission these two units during the second
 half of 2012 and the balance units thereafter through 2013 and 2014. We
 believe upon successful completion, this will be one of the largest
 single location green field projects in India and reinforce the strong
 project development capabilities of KSK.
 
 While the Company continues its dedicated focus on the construction and
 setup of the main power plant, the parent and its group companies are
 supplementing the same through the development of necessary ancillary
 infrastructure that supports the large power project being developed by
 KSK. We believe this synergy would enable an immediate synchronized
 development approach on ground and also provides the Company necessary
 flexibility to consolidate the power plant with the ancillary
 infrastructure at a later stage based on internal accruals.
 
 We believe that economic empowerment of our communities alone can help
 us ensure sustainability of the development that we undertake. At KSK,
 sustainability initiatives are an integral part of the corporate
 strategy and we contribute to the community by carrying our business in
 such a way that ensures overall socio economic development of the areas
 in which we setup or operate.
 
 Despite certain sectoral challenges and project specific issues such as
 fuel supplies that are being addressed, it is our belief that the
 Company is well positioned to catapult itself, in the next few years,
 to be the single largest independent private power producer with an
 established operating track record, strong technical, financial and
 commercial capabilities. A great deal of dedication and commitment has
 been shown by operating team which enabled us to meet our growth
 objectives. I would like to take this opportunity to acknowledge their
 important contributions.
 
 With the best yet to come, I would conclude that there are exciting and
 challenging times ahead of us and thank all the partners of our growth
 and shareholders for their continual support.
 
 T.L. Sankar 
 
 Chairman