OREANDA-NEWS. January 11, 2013.  Hitachi, Ltd. (TSE: 6501, "Hitachi") today announced that a consortium comprising Hitachi and Hyflux Ltd. (the "Consortium") signed Water Purchase Agreement ("WPA") concerning water supply volume, price and other details with Dahej SEZ Ltd. ("DSL"), the management company of the Dahej Special Economic Zone ("Dahej SEZ") in Gujarat, the Republic of India ("India"), in relation to a seawater desalination project (the "Project") in Dahej SEZ. Going forward, the Consortium intends to obtain environmental assessment approval and meet other requirements to successfully implement the Project.

The Project will see the Consortium construct a seawater desalination plant in an industrial park within Dahej SEZ in Gujarat and provide a stable supply of industrial water over a period of 30 years (including the construction period). The Project is one of the Delhi-Mumbai Industrial Corridor Projects being promoted jointly by the Japanese and Indian governments, involving the construction of industrial parks between Delhi and Mumbai (approximately 1,500 km) utilizing private sector capital.

This Project has been reviewed for its commercialization feasibility under the "Feasibility study of smart community business in global markets" and is supported by the Japanese Ministry of Economy, Trade and Industry. This feasibility study was conducted following a joint statement issued at the Japan-India Annual Bilateral Summit held in December 2009, in which Japan pledged to contribute to the construction of a model of energy saving and low carbon smart community. The Consortium has advanced discussions with DSL since signing Co-Developer Agreement with DSL in March 2012.

The Consortium has signed the WPA, agreement with DSL for the supply of industrial water to industrial parks within Dahej SEZ in Gujarat. This agreement includes the water supply volume (336,000 m3/day), the water supply period (30 years, including construction period), the water supply price and purchasing conditions for DSL. The Consortium will conduct discussions toward the final agreement with DSL planned for around fall 2013, after obtaining environmental assessment approval and achieving the financial close.

Mr. Hiroaki Nakanishi, the President of Hitachi, Ltd. said "I am extremely pleased that the Consortium has signed the WPA with DSL regarding the seawater desalination project. Hitachi will work closely with Hyflux to successfully implement the Project.