Statement regarding Press Comment

    RNS Number : 4344F
  KSK Emerging India Energy Fund Ltd
  09 October 2008
   

    Not for release, publication or distribution in, or into, the United States, Canada, Australia, Japan, Israel, the Republic of Ireland
or the Republic of South Africa.

 FINAL  9 October 2008
    

    KSK Emerging India Energy Fund Limited

    ("KEF" or "the Company")

    Statement regarding Press Comment

    KSK Emerging India Energy Fund Limited (AIM:KEF), an investment company focused on the Indian power and energy sector, notes recent
press comment in respect of KEF's possible investment in Athena Infraprojects Private Limited ('AIPL'), an India power developer, and can
confirm that the Company's Investment Manager and the board of AIPL are at an advanced stage of negotiation which may lead to an investment
by the Company of up to INR 2,100 million (approximately £25.1 million) for a minority equity interest in AIPL.

    The Company stated in its admission document dated 3 June 2008 that a 25 per cent. shareholding in Athena Projects Private Limited
('APPL') that was acquired by a subsidiary of KSK Power Ventur plc for INR 1,050 million (approximately US$25 million) would be offered for
acquisition by KEF at cost as soon as practicable following admission.  The Board can confirm that it still intends to acquire this interest
in accordance with the terms of the Relationship Agreement (further details of which can be found on page 57 of the Company's admission
document).

    In addition, the Company's Investment Manager is in negotiations to exchange this APPL interest for shares in AIPL and to invest a
further INR 1,050 million (approximately £12.5 million) into AIPL securities. AIPL is the holding company for the Athena group of companies
and currently holds a majority interest in APPL.

    Should the Board approve the aggregate investment of INR 2,100 million (approximately £25.1 million) into AIPL, that investment would
breach the Company's investment policy set out in its admission document which states that no single investment can exceed more than 20 per
cent. of the net asset value of the Company at the time the investment is made (the "Investment Restriction").  Accordingly, if the Board
were to approve the aggregate investment into AIPL, that part of the investment that breaches the Investment Restriction will be subject to
Shareholder approval.

    Further announcements will be made in due course as appropriate.

    - Ends -


    For further information:
 KSK Emerging India Energy Fund Limited
 Tanmay Das, Non-Executive Director      Tel: [phone]
                                              www.ksk-eiefund.com 

 Liberum Capital Limited
 (Financial Adviser and Broker)
 Steve Pearce                     Tel: [phone]
 [e-mail]     www.liberumcapital.com

 Grant Thornton UK LLP
 (Nominated Adviser)
 Philip Secrett             Tel: [phone]
 [e-mail]               www.gtuk.com

    Media enquiries:
 Abchurch Communications Limited
 Henry Harrison-Topham / Justin Heath  Tel: [phone]
 [e-mail]          www.abchurch-group.com

    Notes to editors

    KSK Emerging India Energy Fund Limited is a Guernsey registered closed ended investment company established to make investments in
companies engaged in the Indian power and energy sector. The Company will target investment in businesses that operate across the Indian
power and energy sector value chain including those involved in the development of the sector's infrastructure. Although the Company's
investments will primarily be focused on such businesses in India, the Company may, if deemed appropriate, invest in companies that are
based outside India but have the potential to benefit from the Indian power and energy sector. The Company's objective is to target
investment opportunities that have a projected realised IRR in excess of 20 per cent.
      
    Disclaimer

    This press release is not for distribution (directly or indirectly) in or to the United States, Canada, Australia, Japan, Israel, the
Republic of Ireland or the Republic of South Africa or any other jurisdiction in which the same would be unlawful. This press release is not
an offer of securities for sale in or into the United States, Canada, Australia, Japan, Israel, the Republic of Ireland or the Republic of
South Africa. This press release does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any
offer to purchase or subscribe for, any Ordinary Shares of the Fund.

    Interests in the Fund may not be offered directly to members of the public in the Bailiwick of Guernsey. The "public" means any person
not regulated under any of Guernsey's financial services regulatory laws within the Bailiwick of Guernsey.

    Some of the information contained in this press release contains statements that are, or may be deemed to be forward-looking statements.
Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future
conditions. Because forward-looking statements relate to the future, they are, by their nature, subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict. We caution you not to rely on any such statements as statements of historical fact
or as guarantees or assurances of future performance. Save as required by law, by the AIM Rules, by the CISX Rules or by the Listing Rules,
Disclosure and Transparency Rules or Prospectus Rules of the Financial Services Authority, we undertake no obligation publicly to release
the results of any revisions and updates to any forward-looking statements in this press release that may occur due to any change in our
expectations or to reflect events or circumstances after the date of this press release.

This information is provided by RNS
The company news service from the London Stock Exchange
 
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