IFC, Cairn open enterprise centre in Rajasthan

Barmer, February 8, 2008: IFC, a member of the World Bank Group, has reinforced its partnership with Cairn India with the opening of an enterprise center to support community and local small businesses development initiatives in and around the Barmer area of Rajasthan, India, where Cairn has made significant oil and gas discoveries.

Lars Thunell, IFC Executive Vice President and CEO, and Rahul Dhir, CEO of Cairn India, today inaugurated the new facility at the Industrial Training Institute at a premises provided by the Government of Rajasthan.

Speaking at the opening ceremony, Rahul Dhir, CEO of Cairn India said, "This is an important facility which we hope will be of great value to the local communities in and around our operations in Rajasthan. We aim to make a positive difference wherever we operate and skills developed at the enterprise centre can be of long term benefit for the people of this region. The consistent support we have experienced in Rajasthan has been critical to our success and we value all our relationships highly."

A central component of the IFC-Cairn development programme is the establishment of an Enterprise Centre, which will help to provide information, and expertise on business practices to local small and medium-sized firms in Barmer, supporting them to become potential suppliers and service providers to the oil and gas operation and other ventures in the region.

"IFC's goal is to make a difference by reducing poverty in emerging markets. We believe that the private sector is key to development since it is the most important engine for growth and job creation," said IFC's Lars Thunell. "The Enterprise Centre, the Rural Dairy Development project and the Child and Maternal Health Initiative are an outcome of the IFC-Cairn partnership and exemplify the larger role that the private sector needs to play in emerging economies."

Thunell added, "The Enterprise Centre will help local firms become suppliers to Cairn and other businesses. These firms will in turn create jobs and generate other opportunities to support communities across the Barmer region."

IFC and Cairn India's partnership aims to leverage the company's investments in the region. The two institutions signed a Linkages Cooperation Agreement in June 2007 to design, fund, and implement sustainable socio-economic development programmes in Rajasthan over a three-year period. The programme includes an enterprise center for local development and vocational skills training, a rural dairy project to create alternative income-generating activities for rural households, and a child and maternal health awareness project for women and children in rural areas.

IFC will spearhead and manage operations at the Enterprise Centre, sharing its knowledge and experience from similar initiatives in Azerbaijan, Chad, Mozambique, and Peru. IFC will also adapt the project to the local environment. The International Centre for Entrepreneurship and Career Development together with the Centre for Development and Population Activities and Society to Uplift Rural Economy will implement the activities.

About IFC

IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC's vision is that poor people have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit www.ifc.org.

About Cairn India

Cairn India focuses on oil and gas in India. The company holds material exploration and production positions in eastern and western India, and new exploration rights elsewhere in the country. It has made a number of recent oil and gas discoveries, including the Mangala oil field in Rajasthan. Cairn India has an agreement for an $850 million facility with major international banks, led by IFC and the Royal Bank of Scotland, to fund Cairn's share of development costs of the Mangala field. In January 2007, Cairn successfully concluded the floatation of Cairn India Limited by listing on the Bombay Stock Exchange and National Stock Exchange of India. Cairn Energy PLC holds a 69 percent stake in Cairn India Limited. For more information, visit www.cairnindia.com.