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CONFORMED COPY
LOAN NUMBER 4571 IN
CREDIT NUMBER 3396 IN
Guarantee Agreement
(Second Renewable Energy Project)
between
INDIA
and
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
Dated August 11, 2000
LOAN NUMBER 4571 IN
CREDIT NUMBER 3396 IN
GUARANTEE AGREEMENT
AGREEMENT, dated August 11, 2000, between INDIA (the Guarantor) and 
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the Bank).
WHEREAS (A) the Guarantor and INDIAN RENEWABLE ENERGY DEVELOPMENT AGENCY LIMITED 
(the Borrower), having been satisfied as to the feasibility and priority of the 
Project described in Schedule 2 to the Loan Agreement, have requested the Bank to 
assist in the financing of the Project; and
(B)
by the Loan Agreement of even date herewith between the Bank and the 
Borrower, the Bank has agreed to extend to the Borrower a loan in the amount of eighty 
million dollars ($80,000,000), on the terms and conditions set forth in the Loan 
Agreement, but only on condition that the Guarantor agree to guarantee the obligations 
of the Borrower in respect of such loan as provided in this Agreement; and
WHEREAS the Guarantor, in consideration of the Bank’s entering into the Loan 
Agreement with the Borrower, has agreed so to guarantee such obligations of the 
Borrower;
NOW THEREFORE the parties hereto hereby agree as follows:
ARTICLE I
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General Conditions; Definitions
Section 1.01. The “General Conditions Applicable to Loan and Guarantee 
Agreements for Single Currency Loans” of the Bank, dated May 30, 1995 (as amended 
through October 6, 1999) (the General Conditions) constitute an integral part of this 
Agreement.
Section 1.02. Unless the context otherwise requires, the several terms defined 
in the General Conditions and in the Preamble to this Agreement and in the Preamble to 
and Section 1.02 of the Loan Agreement have the respective meanings therein set forth.
ARTICLE II
Guarantee
Section 2.01. The Guarantor declares its commitment to the objectives of the 
Project as set forth in Schedule 2 to the Loan Agreement, and, to this end, without 
limitation or restriction upon any of its other obligations under the Guarantee 
Agreement, the Guarantor hereby unconditionally guarantees, as primary obligor and not 
as surety merely, the due and punctual payment of the principal of, and interest and 
other charges on, the Loan, and the premium, if any, on the prepayment of the Loan, 
and the punctual performance of all the other obligations of the Borrower, all as set 
forth in the Loan Agreement.
ARTICLE III
Other Covenants
Section 3.01. The Guarantor shall not take, or cause or permit any of its 
constituent States and Union Territories or any agency of any such constituent States 
and Union Territories to take, any action which would prevent or interfere with the 
performance by the Borrower of its obligations contained in the Loan Agreement and 
will take or cause to be taken all reasonable action necessary or appropriate to 
enable the Borrower to perform its obligations.
Section 3.02. The Guarantor shall enter into an agreement with the Borrower 
referred to in Section 6.01 (a) of the Loan Agreement.
Section 3.03. The Guarantor shall: (a) no later than October 31, 2001 formulate 
a time-based action plan for the future development of the Borrower, as agreed to with 
the Bank, taking into account the recommendations referred to the Guarantor by the 
Borrower pursuant to paragraph 3 (b) of Schedule 5 of the Loan Agreement; and 
(b) thereafter implement such action plan in accordance with the provisions of such 
plan.
Section 3.04. The Guarantor shall participate in carrying out the mid-term 
review of the Project referred to in paragraph 8 of Schedule 5 to the Loan Agreement. 
ARTICLE IV
Representatives of the Guarantor; Addresses
Section 4.01. Any Secretary, Additional Secretary, Joint Secretary, Director, 
Deputy Secretary or Under Secretary of the Department of Economic Affairs in the 
Ministry of Finance of the Guarantor is designated as representative of the Guarantor 
for the purposes of Section 11.03 of the General Conditions.
Section 4.02. The following addresses are specified for the purposes of Section 
11.01 of the General Conditions:
For the Guarantor:
The Secretary to the Government of India
Ministry of Finance
Department of Economic Affairs
New Delhi, India
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Cable address: 
Telex:
ECOFAIRS
953-3166175
New Delhi
For the Bank:
International Bank for Reconstruction
  and Development
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Cable address:
Telex:
INTBAFRAD
248423 (MCI) or
Washington, D.C.
64145 (MCI)
IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized 
representatives, have caused this Agreement to be signed in their respective names in 
New Delhi, India, as of the day and year first above written.
INDIA
By /s/ R. S. Sharma
Authorized Representative
INTERNATIONAL BANK FOR 
   RECONSTRUCTION AND DEVELOPMENT
By /s/ Edwin R. Lim
Country Director, India