India Globalization Capital, Inc. Retires Note

Thu Apr 5, 2012 8:30am EDT

* Reuters is not responsible for the content in this press release.

  BETHESDA, MD, Apr 05 (Marketwire) -- 
India Globalization Capital, Inc. (NYSE Amex: IGC), a company competing
in the rapidly growing materials and infrastructure industry in India and
China, announced it had retired a note of $2,232,627.79. 

    The loan was paid off with 4,377,702 shares of newly issued common stock
of the Company. "This loan has carried an annual interest rate of 30%
along with heavy penalties for non-payment. It has been a large drag on
our earnings in the past. Going forward, the elimination of this expense
will be one factor in bringing us back to profitability in our current
fiscal year which started on April 1st. Also, the de-leveraging of our
balance sheet will also give us additional flexibility to finance the
growth of our business using more traditional forms of capital," said Ram
Mukunda, CEO of IGC. 

    About IGC:
 Based in Bethesda, Maryland, India Globalization Capital
(IGC) is a materials and infrastructure company operating in India and
China. We currently supply iron ore to Steel Companies operating in China
and rock aggregate to the infrastructure industry in India. For more
information about IGC, please visit IGC's Web site at

    Forward-looking Statements:
 Some of the statements contained in this
press release that are not historical facts constitute forward-looking
statements under the federal securities laws. Forward-looking statements
can be identified by the use of the words "may," "will," "should,"
"could," "expects," "plans," "anticipates," "believes," "estimates,"
"predicts," "intends," "potential," "proposed," or "continue" or the
negative of those terms. These forward-looking statements are based on
the existing beliefs, assumptions, expectations, estimates, projections
and understandings of the management of IGC concerning PRC Ironman with
respect to future events at the time these statements are made. These
statements are not a guarantee of future developments and are subject to
risks, uncertainties and other factors, some of which are beyond IGC's
control and are difficult to predict. Consequently, actual results may
differ materially from information contained in the forward-looking
statements as a result of future changes or developments in our business,
our competitive environment, infrastructure demands, iron ore
availability and governmental, political, economic, legal and social
conditions in China. 

    Factors that could cause actual results to differ, relate to the (i)
ability of IGC to successfully execute on contracts and business plans,
(ii) ability to raise capital and the structure of such capital including
the exercise of warrants, (iii) exchange rate changes between the U.S.
dollar, the Chinese RMB and the Indian rupee, (iv) weather conditions in
China and India, (v) uncertainties with respect to the People's Republic
of China's legal and regulatory environment, and (vi) ability of the
Company to access ports on the coasts of India. Readers are cautioned not
to place undue reliance on these forward-looking statements. The Company
undertakes 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 IGC's amended Annual Report on
Form 10-K for the year ended March 31, 2011 and Schedule 14A filed on
December 9, 2011 with the Securities and Exchange Commission.


Contact Information
Investor Relations Contact: 
Mr. John Selvaraj

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