BHARAT FORGE had established the Financial Services division in the year 1990 to effectively deploy and leverage the financial resources of the company. The division performed extremely well and its assets grew rapidly. The Windmill Division was formed in late nineties to harness the wind energy for captive consumption of Bharat Forge and other group companies. The total capacity of this project is 18.33 MW. However, with a view to concentrate on the core activity of Forging and also for financial restructuring and better control over operational efficiencies, the Financial Services and Wind Mill Divisions were de merged by Bharat Forge into BF Utilities in the year 2001.

Future Prospects of Wind Energy in India vis-a-vis benefits to the Company / Kalyani Group In India there has been upsurge for the development of Non-Conventional Energy projects since last five years. With the likely depletion of fossil fuels it has been necessary for all of us to depend more and more non- fossil fuel based energy. This will also help Kalyani group in giving thrust to encourage green Power development and reduce the emission of Green House Gasses (GHG). In India has of March 2001 there are 1300 MW capacity wind power projects. India has the fifth position in the world. Wndmill project of total 190 MW capacity are set up in Maharashtra and is likely to cross 400 MW by the coming year-end with the ranking of Second amongst all the states in India. With the Government of India's proactive policy and also with the support of State Government by introducing incentive schemes, Kalyani group has decided for setting up Wind Power Projects. Kalyani group would rank among the top five in Maharashtra

With Kyoto Protocol and subsequent deliberations on the subject, additional benefits for Green Power Development Projects such as Windmill are expected for countries like India to offset the mandatory reduction of the emission of GHG Gases by the developed countries. The Certificate of Clean Energy Development Mechanism (CDM) issued to a Green Power Project in one country could be traded with another countries. The mechanism for such trading is being worked out at various levels, which will set the necessary policies and procedures. Kalyani Group will benefit from such mechanism in future.