SOURCE: India Globalization Capital, Inc.

India Globalization Capital, Inc.

August 04, 2009 09:40 ET

Indian Government Expects to Spend $22 Billion on Roads and Highways This Fiscal Year

$44 Billion to Be Spent Over Two Years

BETHESDA, MD--(Marketwire - August 4, 2009) - India Globalization Capital, Inc. (NYSE Amex: IGC), a company competing in the rapidly growing materials and infrastructure industry in India, today announced that the Indian Minister of Roads, Transports, and Highways, Kamal Nath, when speaking at an industry seminar on Friday, July 31st, 2009, commented that the Indian Government is going to spend about $44 billion, $22 billion this year and $22 billion next year, on roads and other critical infrastructure projects, with the goal of building 20 kilometers of road per day each fiscal year. "This year we will build more road kilometers than what was done between 1999 and 2004," said Kamal Nath. "The target of building 7,000 kilometers [of] road this year alone will make a visible difference in infrastructure," Minister Nath continued.

"The comments made by Minister Nath reflect the enormity of the breadth and depth, as well as the political will, of the new Indian government to aggressively address its critical infrastructure needs through major build-out programs and spending plans. In addition, it is clear that India Globalization Capital's market positioning within India's infrastructure and materials sectors could not be better. Taking advantage of these government initiatives and spending programs is one of our critical strategic goals for the foreseeable future, and something we expect to contribute to the top and bottom lines of our balance sheet," said Ram Mukunda, Chief Executive Officer of India Globalization Capital, Incorporated.

About:

India Globalization Capital, Inc. is a construction and materials company operating in India, which builds roads, bridges and highways, and provides materials to the infrastructure industry in India and China.

The Company has offices in Maryland, Mauritius, Nagpur, Cochin, Delhi, and Bangalore. Copies of the form S-3 and India Globalization Capital's other filings with the SEC containing information about India Global Capital, our Indian operations and other relevant documents are available at no charge on the SEC's website (http://www.sec.gov).

For more information about India Globalization Capital, please visit: www.indiaglobalcap.com.

Forward-Looking Statements:

This press release may contain forward-looking statements. These statements reflect management's current views and are subject to risks and uncertainties that could cause actual results to differ materially from those projected, expressed or implied in these statements. Factors that could cause actual results to differ, relate to: (i) ability of the parties to successfully execute on contracts and business plans, (ii) ability to raise capital and the structure of such capital including the exercise of warrants, and (iii) exchange rate changes between the U.S. dollar and the Indian Rupee. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. Other factors and risks that could cause or contribute to actual results differing materially from such forward-looking statements have been discussed in greater detail in the company's definitive proxy statement and supplement filed with the SEC and incorporated by reference into the Form S-3.

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