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The Tata Power Company Limited

Analyst Meet March 2008

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Disclaimer

Certain statements made in this presentation may not be based on historical information or facts and may beforward looking statements, including those relating to The Tata Power Company Limiteds general business plansand strategy, its future outlook and growth prospects, and future developments in its industry and its competitiveand regulatory environment. Actual results may differ materially from these forward-looking statements due to anumber of factors, including future changes or developments in The Tata Power Company Limiteds business, its

competitive environment, its ability to implement its strategies and initiatives and respond to technological changesand political, economic, regulatory and social conditions in India.

This presentation does not constitute a prospectus, offering circular or offering memorandum or an offer to acquireany Shares and should not be considered as a recommendation that any investor should subscribe for or purchaseany of The Tata Power Company Limiteds Shares. Neither this presentation nor any other documentation orinformation (or any part thereof) delivered or supplied under or in relation to the Shares shall be deemed to

constitute an offer of or an invitation by or on behalf of The Tata Power Company Limited.

The Company, as such, makes no representation or warranty, express or implied, as to, and do not accept anyresponsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information oropinions contained herein. The information contained in this presentation, unless otherwise specified is only currentas of the date of this presentation. Unless otherwise stated in this document, the information contained herein is

based on management information and estimates. The information contained herein is subject to change withoutnotice and past performance is not indicative of future results. The Tata Power Company Limited may alter, modifyor otherwise change in any manner the content of this presentation, without obligation to notify any person of suchrevision or changes. This presentation may not be copied and disseminated in any manner.

THE INFORMATION PRESENTED HERE IS NOT AN OFFER FOR SALE OF ANY EQUITY SHARES OR ANYOTHER SECURITY OF THE TATA POWER COMPANY LIMITED.

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Management Team

Prasad MenonManaging Director

S RamakrishnanExecutive Director

(Finance)

S PadmanabhanExecutive Director(Operations)

Banmali AgrawalaExecutive Director(Strategy & Business Dev)

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Agenda

Part A: Overview of Tata Power

Part B: Global Scenario

Part C: Power Business

Section 1: Generation

Section 2: Fuel & Logistics

Section 3: T & D

Section 4: Power Trading

Part D: Other Businesses

Part E: Financial Performance

Part F: Beyond Business

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Part A: Overview of Tata Power

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A Tata Company

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Tata Power: Introduction

Largest private, integrated utility company in India today with presence across thevalue chain in fuel, generation, T&D and trading

Founded in 1906, to supply hydro-electric power to Mumbai. Set-up thermalgeneration in Trombay in 1960s

Expanded outside Mumbai with IPP (Belgaum) and CPP (Tata Steel) in 1990s

Thrust on renewables including wind, hydro and solar

Successful Public Private Partnerships in generation, transmission and distribution

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Pioneer in Power Sector

First150 MWthermalunit

First500 MWthermalunit

Firstgasinsulatedswitchgear

Computerizedgrid control

and energymanagementsystem

220 kVtransmissionlines in

four circuittowers

220 kVCableTransmissionNetwork

Flue GasDe-sulphurisationplant usingsea water

First to IntroduceSCADA andFibre Opticground wirecommunication

First pumpstorage unitin the country

of 150 MW Capacity

First 800 MWthermal unit

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Existing Presence in Power Sector

Tala TransmissionNDPL

Belgaum 81 MW

Thermal (1839 MW)

Hydro (471 MW)

Wind ( 79 MW)

Transmission

Distribution

Jojobera 428 MW

Khandke 51 MWBramanvel 11 MW

Trombay 1330 MW

Hydro 471 MW

Mumbai Distribution

Mumbai Transmission

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Supa 17 MW

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Vision, Mission and Values

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Tata Power Group Major Companies

Subsidiaries Joint Ventures Associates

Coastal GujaratPower Ltd

Nelco Ltd

Tata Ceramics Ltd

KPC

Arutmin

Tata BP Solar Ltd

Tata Power

Tata Power TradingCompany Ltd`

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100%

100%

100%

74%

51%

51%

50%

40%

49%

40%

33%

30%

30%

Maithon PowerLtd

PowerlinksTransmission Ltd

Industrial EnergyLtd

North DelhiPower Ltd

TPC Asia Pte Ltd

74%

Mandakini Coal

Mine Ltd

Tubed CoalMine Ltd

Trombay

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Businesses

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Generation

Transmission

Distribution

Trading

Fuel & Logistics

Tata Power

SED Tata Ceramics

NELCO

Power Business

Other Business

Trombay Hydro Jojobera Belgaum Haldia

Wind Farm Solar PV Mundra Maithon Tata Steel JV (IEL) Tata BP Solar

Indonesian Coal Mines Coal Bed Methane Mandakini Tubed TPC Asia

Mumbai

Delhi Tata Power Trading

Mumbai Tala

Division

Other Entities

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Strategic DirectionsIntegrated Play

Presence acrossvalue chain

Fuel supplies& logistics

Focus on LargeIndian Opportunity

Create strongproject pipeline

New BusinessModels

Thrust onsustainable

development Renewables

CSR Initiatives

InternationalPlay

CompetencyManagement

Operations

ProjectExecution

Grow SubsidiaryBusinesses

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Part B: Global Scenario

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Source: International Energy Agency

Projected to grow from about 11.4 billion to about 17.7 billion tonnes of oilequivalent from between now & 2030

74% of that increase will be accounted for by developing countries (India & China

would account for 45% of that increase)

2

6

10

14

18

2005 2015 2030

000 Mtoe

Coal

Oil

Gas

Nuclear

HydroBiomass and wasteOther renewables

World Primary Energy Needs

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Fossil fuel will continue to dominate this scenario

84% of the increase would come from fossil fuel, and coal use will increase

significantly. Electricity demand will double


1

2

3

4

5

6

2005 2030

000 Mtoe

Coal Oil Gas Nuclear Hydro Biomass and waste Other renewables

World Primary Energy Needs by Fuel

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1980 1990 2000 2010 2020 2030

15

25

35

45High Growth Scenario

ReferenceScenario

Alternative PolicyScenario

27%

57%

68%

26.6

41.94


Energy related CO2 emissions will go up by 57% from 26.6 to 41.94 billion tonsand US, China, Russia and India will contribute 2/3 of this increase.

India will become the 3rd largest emitter by 2015, with China & US above it.

Energy Related CO2 Emissions

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US China India

7,000

1,000500

Kgoe

US China India

12,200

2,150625

kwh


Per capita energy consumption of India is 500 Kgoe as compared to US which isat 7,000 & China at 1,000 (2005)

Per capita electricity consumption of India is 625 kWh as compared to US of

12,200 & China 2,150 (2007)

Per Capita Energy Consumed Per Capita Electricity Consumed

Energy & Electricity Consumption

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Part C: Power Business Section 1: Generation Section 2: Fuel & Logistics

Section 3: T & D


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The Indian Power Industry: Snapshot

Plan Achievements (GW) Deficit Scenario

(92-97) (97-02) (02-07) (07-12)

Source: CEA, CrisInfac

Capacity addition has not kept pace with demand leading to significant shortages

Investment tilted towards Generation:

G to T & D 1 : 0.5

In developed markets. 1 : 1

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Generation

Up to 2032, Indian GDP (USD per capita) expected to jump 6x from $ 646 to $ 4119... creating a potential energy demand (BU): 690 to over 1800

Installed Capacity (GW) Private Contribution Expected

6x

Private participation is likely to increase

This presents a great opportunity for Tata Power

Huge capacity additions will be required

Source: Planning Commission Documents

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Generation: Business Models

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Tata Power: Existing Operations

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Mumbai Licence Area (1777 MW)

Trombay - Thermal Hydro Power Generation

Unit 4 150 MW Oil & Gas

Unit 5 500 MW Oil, Coal & Gas

Unit 6 500 MW Oil & Gas

Unit 7 180 MW Gas

Total 1330 MW

Khopoli 72 MW

Bhivpuri 75 MW

Bhira 300 MW

Total 447 MW

Wind 79 MW

Jojobera 428 MW Belgaum 81 MW

CPP IPP

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Thermal Projects Under Implementation

Thermal (5660 MW)

Trombay 250 MW

Mundra 4000 MWJojobera/Jamshedpur 240 MW

Haldia 120 MW

Maithon1050 MW

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MundraUMPP

Project Capacity 4000 MW (5 x 800 MW)

Ownership Structure 100% subsidiary: Coastal Gujarat Power LimitedCustomers Gujarat (1805 MW), Maharashtra (760 MW), Punjab (475 MW),

Haryana (380 MW), Rajasthan (380 MW)

Funding Project Cost: Rs 17,000 Crore (D/E: 75:25)

Financial closure expected by April 08

Completion Targeted by 2012 vs 2014 as per bid conditions

Project Status Fuel: 10 mtpa offtake agreement with KPC/Arutmin - 50% for Mundra.Pricing part fixed and part linked to CERC index.

Land: Acquisition for construction activities completed

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Maithon

Project Capacity 1050 MW (2 x 525MW)

Ownership Structure Maithon Power Limited 74: 26 JV of Tata Power and DamodarValley Corporation

Customers DVC (300 MW), Active discussions with PSEB, NDPL and WBSEB

Funding Project Cost: Rs 4450 Crores (D/E: 70:30)

Debt syndication completed

Completion Unit 1: 2010, Unit 2: 2011

Project Status Fuel: Linkage Coal, initial supply by DVC

Site works initiated

Business Model Regulated

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Captive PowerPlants

Project Capacity 120 MW

Ownership Structure IEL (74:26 JV of TataPower and Tata Steel)

Funding Project Cost: Rs 490 Crores

D/E 70:30

Completion August 2008

Project Status Fuel: Coke oven gases ofTata Steel

Land: Provided by Tata Steel

Business Model CPP

120 MW

IEL

Project Cost: Rs 640 Crores

D/E 70:30

September 09

Fuel: Linkage from West Bokaro andMahanadi Coal field.

Land: Provided by Tata Steel

CPP

JAMSHEDPUR (PH #6) JOJOBERA (Unit #5)

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Trombay Unit 8

Project Capacity 250 MW

Ownership Structure Tata Power Division

Funding Project Cost: Rs 1066 Crore D/E 70:30

Completion August 2008 (ahead of schedule)

Project Status Fuel: Imported coal

Land: Existing land at Trombay

Business Model PPA with TPC D, BEST (150 MW)

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Haldia

Project Capacity 120 MW (2 x 45 MW + 30MW)

Ownership Structure Tata Power Division

Customers Hoogly Metcoke, PPA with Tata Power Trading and WBSEDCL

Completion March 2008 (45MW)

October 2008 (75 MW)

Project Status Fuel: Hot flue gases from Hoogly Metcoke

Land: Subleased from Hoogly Metcoke


Funding Project Cost Rs 605 Crores

D/E 70:30

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Projects in Pipeline

5670Total

Planning & development activities initiated

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Generation Capacity (Tata Power Group)

2007 2008 2009 2010 2011 2012

2013

2389 2474 3041 3161

5261

11261

12861Capacity (MW)

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Fiscal Year(Ended 31st March)

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Oldest and one of the largest private sector players with capacity of 447 MW

Several awards and recognitions Bhira and Bhira Pump Storage Scheme receivedthe CEA Silver Shield this month

Actively exploring additional 1000 MW in large hydel projects including India, Nepal,Bhutan etc

Hydro Electric Power

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Initiatives In Renewables

79 MW operational & 23 MW under commissioning

101 MW ordered will be commissioned by Dec 2008

300 MW being additionally explored

Developing a 3 MW grid connected solar PV farm in Maharashtra Evaluating potential for concentrated solar thermal (CST) generation

Exploring micro hydel opportunities Actively looking for fuel cell technology partners to pursue opportunities in

the Indian market

Exploring feasibility of standalone biomass based power plants

Exploring possibilities of geothermal generation

OtherInitiatives

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Wind Farms

Installed Capacity 79 MW

Project Under

Implementation

123 MW

(50 MW Karnataka, 50 MW Gujarat, 23 MW Maharashtra)

Funding Project Cost: Rs 633 Crores

Completion September 2008 (23 MW)

February 2009 (100 MW)

Project Status Turnkey projects by Enercon

Substations ready at Gujarat and Karnataka

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Ownership Structure Tata Power division


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Wind Projects Under Implementation

Wind (123 MW)

Samana 50 MW

Sadawaghapur 23 MW

Gadag 50 MW

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Tata BP Solar

51:49 JV between BP Solar and Tata Power

Market leader in Solar Photovoltaic technology in India with turnover of Rs 660 Crores

Nearly 75% of sales from exports largely to Europe and USA

Indias first Polycrystalline Solar cell manufacturing plant and 45 MW modulemanufacturing facility (largest in the region)

Growth plans include expansion of its module manufacturing facility and thrust on

domestic sales

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Part C: Power Business Section 1: Generation Section 2: Fuel & Logistics

Section 3: T & D


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Fuel

Fuelsuppliesfornewprojects for20-

25years

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Indonesian Coal Mines

Acquired 30% equity stake in KPC andArutmin from PT Bumi Resources,Indonesia

Acquisition value of USD 1.1 bn

Off-take contract of 10.5 mtpa 20%

Pricing in line with Mundra assumptionsfor first 5 years

Prices linked to CERC index post 5 years

Deal Highlights Off Take Agreement: Key Features

Loading port at KPC Coal conveyor belt at KPC

Mining operations

are efficient Rio

Tinto and BHP

practices followed

Loading port all

weather, capable of

handling cape size

vessels

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SPV incorporated in Singapore for owning ships to meet shipping requirementsand trading in fuels

Present shipping requirements of 8-9 vessels for Mundra

To be met through a combination of long term charters and out right purchases

Spare capacity may be used commercially

TPC Energy Asia Private Limited

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Part C: Power Business Section 1: Generation


Section 3: T & D


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I t R i T i i O t iti

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Inter Region Transmission Opportunities

Northern Region

Western Region

North-Eastern Region

Southern Region

Eastern Region

5000 MVA

1250 MVA

1700 MVA3150 MVA

2300 MVA

2800 MVA

+ 4000 MVA

+ 1000 MVA

+ 3500 MVA

+ 5700 MVA

+ 5500 MVA

+ 1000 MVA

Interregional transmission

capacity is inadequate and

leads to network congestion

Accumulating utility / zone

access charges lead to high

tariff for power flow from East

to demand centers (North andWest)

Longer term allotment (> 7

yrs) prioritized over short term

Capacity to be increased to37 GW by 2012

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Capacity to be implemented

Di t ib ti O t iti

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Distribution Opportunities

Second License parallel licensing unlikely to happen soon

Privatization not much progress in replicating Delhi model

Outsourcing opportunity for marginal players

Franchisee Opportunity window is open for private participation

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M mbai Transmission and Distrib tion

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23,000 customers with 2500 MUs of sales (mostly to high value bulk consumers)

17 receiving and distribution stations, 318 consumer substations and 1335 Kms of

HT & LT Cable network. Total asset base over Rs 1400 crores

MERC regulated tariff with 16% RoE on distribution and 14% on transmission.

Incentive on reducing ATC losses

Mumbai: Transmission and Distribution

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North Delhi Po er Limited (NDPL)

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North Delhi Power Limited (NDPL)

Privatized

July2002

Reducedfrom

53%to23%

AT&C Losses

51:49 JV of Tata Power and Delhi Vidyut

Praday Nigam A Govt. of Delhi

undertaking

Over 1 million consumers with 5000 MUs

of consumption and net asset base of

over Rs 1800 Crores

Assured returns upto 16%, plus

incentives on loss reduction

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Powerlinks Transmission Limited

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Powerlinks Transmission Limited

51:49 JV of Tata Power and Power Grid Corporation of India

1200 km 400 kV double-circuit transmission lines

Transmits power from Tala Hydroelectric Project and Eastern/North-Eastern regionto New Delhi and adjoining areas.

Total investment of Rs 1560 Crores (D/E 70:30)

CERC based tariff (14% ROE) with incentive of 10% (pre-tax) as majoration charges

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Part C: Power Business Section 1: Generation


Section 3: T & D


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Power Trading

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Power Trading

Traded Power (MU) Power Trading Projections (MU)

CAG

R31.7

%

Improvements needed: Cap on trading margins

Operational - scheduling delays, non-grant of intra-state corridors

Corridor congestion - inter-state and inter-regional power evacuation for merchant plants

Regulatory framework - long term commitments and forecasting is a challenge

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Tata Power Trading Company Limited

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Tata Power Trading Company Limited

TPTCL Sales (MU) Market Share Position

50

as of Feb 2008

Source : Compiled from RLDC web sites

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Part D: Other Businesses

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Strategic Electronics Division (SED)

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Revenues of Rs. 47.17 crores against Rs. 38.18 crores during the previous year. Current revenue contributors include electronics system for the Rocket Launchers, Fire Control

Computers for Arjun Tank and Command and Control systems.

Future revenue to come from MBRL Pinaka production order and Air Defence System.

Defence spend over Rs. 400 bn, 40% indigenous. Expected growth ~ 15%. SED expected to be granted Raksha Udyog Ratna status which will provide access to technology, pre-

qualification benefits and defence R&D budgets

7 manufacturing licenses of SED to provide access to foreign vendors under domestic offset obligation

Strategic Electronics Division (SED)

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A subsidiary of Tata Power (50.04% stake) listed on BSE and NSE

Current Businesses structured around Automation & Control and Network Systems.

Caters to core industries like Defence, Railways, Steel, Cement, Automobile, Oil and Gasetc.

Tie-ups with international players for defence, weather management systems, VSAT,SCADA etc.

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Tata Ceramics

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Best quality fine bone chine products in the world.

Products exported to UK, Ireland, USA, Canada, Italy, Germany, Korea, Australia and

New Zealand Customers include Wedgewood, Churchill China, Royal Doulton and Villeroy & Boch

Future growth to be driven by domestic sales. Focus areas to include hospitality andretail

Tata Ceramics

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Part E: Financial Performance

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FinancialsNine Months Ending December 31 2007

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Nine Months Ending December 31 2007

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Tata Power Financials (Standalone)

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( )

Annual Sales (MU) Profit After Tax (In Billion Rs.)

EPS (in Rs.) Net Worth (In Billion Rs.)

12,318 12,231 12,66313,616

14,422

2003 2004 2005 2006 2007

5.19 5.095.51

6.116.97

2003 2004 2005 2006 2007

26 2628 29

34

2003 2004 2005 2006 2007

32.0135.36 36.19

40.1044.67

2003 2004 2005 2006 2007

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Dividend History

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y

0

10

20

30

40

2003 2004 2005 2006 2007

Rs.

0

10

20

30

Earnings (Rs.)

Dividends (Rs.)

Payout ratio (%)

%

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Funding by Tata Power - Projects underImplementation

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Implementation

Own Funds(Rs 6,000 Crores)

Internal accruals: Rs 2900 Crores

Preferential Issue/warrants - TataSons: Rs 1900 Crores

Remainder

Disinvestment of various holdings

or assets Equity dilution through warrants,

preferential issue and/or rights if

required

Debt(Rs 18,000 Crores)

Domestic loans through domestic

financial institutions, banks andcapital markets

Foreign loans through external

Credit Agencies and Multilateral

Agencies: ADB, IFC

Total Fund Requirement (2008-12): Rs 24,000 Crores

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Sensex vs Tata Power

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Rs / share Points

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Part F: Beyond Business

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Socially Responsible

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Over thirty year old eco-restoration and eco-development program in theWestern Ghats One of the most sensitive ecosystems in the world

Over 7 million saplings of 60 tree species planted in the area. Over 600,000trees being planted regularly

A green belt raised around Thermal Power Plants in Trombay and Jojobera

Health

Sponsored Lifeline Express - the world's first Hospital Train

Medical camps with the Doctors of Rotary Club for local communities

Education

Construction of Primary schools in rural areas Training imparted to more than 200 teachers

Livelihood

Distribution of fruit trees and providing fingerlings of fast growing fish species

Actively supports pisciculture activities at their hydro stations by assisting inthe breeding of fishes

Supplying drinking water from the Company lakes to local communities

Environment

Community

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Environment: Achieving Global Norms

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Source : PwC Report

Operates under one of the strictest SO2 emission norms in the world Recipient of various environment awards such as

Greentech Environment Excellence Silver Award 2004 Golden Peacock Award for Environment Excellence 2005

Golden Peacock Environment Management Award 2006

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Drive Energy Efficiency & Conservation Measures

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Launched I will Mumbai will, a joint advertising campaignwith REL and BEST to educate Mumbai consumers onenergy conservation. Key messages were:

Shift consumption away from the 10 am - 8 pm peaktimes

AC at 24 degree centigrade Switch off the devices from the plug point

Ongoing education of Mumbai consumers to invest inenergy efficient devices/appliances

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Thank you

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Investor 270308

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