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    POW EROctober 2007

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    POWEROctober 2007

    Contents

    Prole o Indian Power Sector

    Policy and Regulation

    Opportunities in the Indian Power Sector

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    PROFILE OF INDIANPOWER SECTOR

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    The Indian Power Sector has a less than 100 year history

    1880s First electrication small hydel

    in Darjeeling

    1889 Commercial production & Distribution

    starts in Calcutta

    Indian Electricity Act, 1910.

    1947 Power generating capacity only 1,362 MW The Electricity (Supply) Act, 1948 SEB ormation

    Creation o central generation companies

    CEA constituted

    1956 Industrial Policy Resolution reserves

    production o power or public sector

    1960s and 70s Impetus or expansion o ruralelectrication

    PROFILE OF INDIAN POWER SE CTORPOWER October 2007

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    The Indian Power Sector has a less than 100 year history

    1975 NTPC and NHPC set up

    1989 NPTC set up. Renamed POWER GRID

    in 1992.

    1991 Liberalisation; amendments in Electricity

    (Supply) Act

    1992 Ministry o Power constituted 1995 Policy or Mega power projects introduced

    1998 CERC and SERCs set up

    2001 Energy Conservation Act

    2003 New Electricity Act

    2006-07 Power generation capacity stands

    at 551.7 Billion Units

    PROFILE OF INDIAN POWER SE CTORPOWER October 2007

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    The Indian Power Sector has a less than 100 year history

    From humble beginnings in the 1880s, the Indian

    Power Sector has come a long way

    From one small unit in 1880s to 1362 MW

    in 1947 to over 550 Billion Units in 2006-07

    PROFILE OF INDIAN POWER SE CTORPOWER October 2007

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    The sector has multi-tier institutional arrangement

    The primary agency responsible or the power

    sector in India is the Ministry o Power, which

    started unctioning with eect rom 2nd July 1992

    Policy

    Plan

    Regulations

    Generation

    Transmission

    System Operations

    Distribution

    Trading

    Appeal

    Centre

    Ministry o Power

    CEA

    CERC

    CentralGenerating Units

    CTU

    NRLDC RLDC

    State

    Trading Licencee

    Appellate Tribunal

    State Government

    SERC

    GENCOs IPPs

    STU

    SLDC

    DistributionLicencee

    Trading Licencee

    Appellate Tribunal

    Some

    PrivatePlayers inGeneration

    &Distribution

    PROFILE OF INDIAN POWER SE CTORPOWER October 2007

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    A range o key organisations perorm several unctions

    Organisation Established Core Expertise

    Damodar Valley Corporation (DVC) 1948 Generation, Transmission and Distribution in speciied region.

    Bhakra Beas Management Board (BBMB) 1967 Administration, Operation and Maintenance o projects under Board.

    Rural Electriication Corporation (REC) 1969 Financing and implementing rural electriication schemes.

    National Thermal Power Corporation (NTPC) 1975 Thermal plants: concept to commissioning and operations.

    National Hydro Electric Power Corporation (NHPC) 1975 Hydro plants: concept to commissioning and operations.

    North Eastern Electric Power Corporation (NEEPCO) 1976 Developing power projects in North Eastern region o the country.

    Power Finance Corporation (PFC) 1986 Financing o power development schemes.Tehri Hydro Development Corporation (THDC) 1988 Development o hydro potential in speciic river/valley.

    Satluj Jal Vidyut Nigam (SJVN) 1988 Development o hydro potential in speciic basin.

    Powergrid (Powergrid) 1989 Transmission system or evacuation o central sector power and

    establishment/operation o inter-regional grids, load despatch centres.

    Power Trading Coprporation (PTC) 2001 Trading o power

    Bureau o Energy Eiciency (BEE) 2002 Responsible or spearheading the improvement o energy eiciency o economy through regulatory and promotional instruments

    PROFILE OF INDIAN POWER SE CTORPOWER October 2007

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    Generation has increased over the years

    From humble beginnings in the 1880s, the Indian

    power sector has come a long way

    From one small unit in 1880s to 1362 MW in

    1947 to over 550 billion units in 2006-07

    Generation (Billion Units)

    2006-07(up to Jan. 07)

    2004-05

    551.7

    2002-03

    2000-01

    1990-91

    617.5

    587.4

    558.3

    531.4

    515.3

    499.5

    380.1

    264.3

    PROFILE OF INDIAN POWER SE CTORPOWER October 2007

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    Generation installed capacity

    In terms o installed capacity, the state sector

    accounts or the most, ollowed by the Central

    and private sectors

    Installed Capacity (Mega Watt)

    State

    Private

    Central

    70681

    18418

    45905

    Installed Capacity (%)

    n State n Private

    n Central

    34%

    14%

    52%

    PROFILE OF INDIAN POWER SE CTORPOWER October 2007

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    Generation mix dominated by thermal and hydro

    Thermal power accounts or much o the power

    produced in India, ollowed by hydro. Other

    means o generation are negligible in comparison.

    Generation Type %

    n Thermal n Nuclear

    n Renewables n Hydro

    26%

    64%

    7%3%

    Generation Type

    Hydro

    Thermal

    Nuclear

    Renewables

    34,654

    86,935

    4,120

    10,175

    Mega Watt

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    Generation plant load actor has been improving

    PLF o generating plants has improved consistently

    over the last ew years. The all India average PLF

    on January 2007 stood at 75.6 % compared

    to 53.8 % in 1990-91

    PLF o central plants in 2006-07 stood at 83.3

    % while the average PLF o the state sector units in

    2006-07 was 69.5 %

    PLF (%) during last year o the place

    n Central Sec nState Sec

    n Private Sec nOverall

    90.085.0

    VI VII VIII IX X

    75.070.065.060.055.050.045.040.0

    PROFILE OF INDIAN POWER SE CTORPOWER October 2007

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    Per capita consumption has sky-rocketed

    Per capita consumption o power in India has

    gone up signicantly since the 1990sTrend in per Capita Consumption

    2012 1000

    631

    582

    408

    238

    131

    Projected

    2006

    2004

    2001

    1990

    1980

    19701960

    1950

    8435

    18

    No. o Units

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    The demand supply gap is growing

    Energy requirement during 2006-07 (upto Jan 07)

    stood at 572,812 MU and energy availability

    during the same period was 519,656 MU resulting

    in energy shortage o 53,156 MU (9.3%)

    Peak demand or energy in 2006-07 (upto Jan 07)

    was 100,403 MW whereas peak demand met

    during the same period was 86,425 MW andhence the peak shortage stood at 13,978

    MW (13.9%)

    Deamand Supply Gap Energy (BU)

    n Average Energy Demand (BU)

    n Generation during last year o the plan period (BU)

    Energy(BU)

    VI VII VIII IX X

    620.9559.4

    266.4

    447.3

    168.1

    156.8245.4

    395.9

    517.4559.4

    Plan Period

    DemandSupply gap

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    Planned capacity additions (MW) 11th Plan

    Signicant capacity additions to generation

    are being planned under the 11th Plan

    Central State Private Total

    Hydro 11289 2637 3263 17189

    Thermal 25860 16152 4102 46114

    Nuclear 3160 0 0 3160

    Renewables NA NA NA 14000

    Total 40309 18789 7365 66463

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    Generation backend - uels outlook

    Coal

    Vast reserves mineable coal in excess o 2,800

    million tonnes identied

    Oil

    Reserves estimated at 700 MMT o oil: Ministry

    o petroleum and Natural gas

    Gas

    Discoveries o gas to the tune o 700 bcm2 in

    the last decade

    Nuclear

    One o the largest reserves o the nuclear

    uel thorium. Indo-US deal +ve

    Hydro

    Potential o about 150,000 MW; only 17 percent

    harnessed so ar

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    Generation backend - uels outlook

    Renewables

    Vast potential - Solar power, biomass and wind power;

    current installed capacity 9220 MW, constituting about

    7.3 % o total installed

    generation capacity. India already ourth largest

    in the world in terms o wind energy installations

    Signicant reserves o coal and gas exist and

    signicant potential to harness renewables

    PROFILE OF INDIAN POWER SE CTORPOWER October 2007

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    Transmission has grown signicantly

    Transmission lines have grown rom 3,708 ckm

    in 1950 to more than 265,000 ckm now

    Country divided into ve regions or transmission

    systems, namely, northern, north eastern, eastern,

    southern and western

    X Plan XI Plan Total

    POWERGRIDs Outlay 21,370 28,258 49,628

    Private Sector participation 9,710 11,185 20,895

    Total Central Sector 31,080 39,443 70,523

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    Transmission has grown signicantly

    National Grid on the cards

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    Extensive distribution networks but high losses

    Extensive network o sub-transmission and

    distribution systems have been set up in India

    T & D losses have been consistently on the higher

    side and are presently in the range o 18 percent

    to 62 percent in various states

    APDRP was identied in 2000-01 as the key area

    to bring about the eciency and improve nancial

    health o the power sector - payos beginning to

    trickle in

    Extensive distribution networks but high losses

    n March 2006 n2001

    40 60 800 20 100

    11 KV Feeder

    Consumer 92

    78

    96

    81

    Percentage

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    Financial perormance

    Financial perormance o the State power sector

    1991-92 2003-04(P) 2004-05(RE) 2005-06(AP)

    A. Gross Subsidy involved

    (i) On account o sale o electricity to

    (a) Agriculture 5,938 23,246 23,805 25,377

    (b) Domestic 1,310 8,885 9,639 10,033

    (c) Inter-State Sales 201 923 866 591

    Total 7,449 33,154 34,311 36,002

    (ii) Subventions Received rom State Governments 2,045 11,081 9,825 9,831

    (iii) Net Subsidy 5.404 22,073 24,486 26,170

    (iv) Surplus Generated by sale to other sectors 2,173 6,133 6,967 8,640

    (v) Uncoverred Subsidy 3,231 15,941 17,520 17,530

    B. Commercial Losses

    (i) Commercial Losses (excluding subsidy)@ 4,117 20,379 20,715 22,013

    (ii) Commercial Losses (including subsidy) NA 9,298 10,890 12,182

    C Rate o Return (ROR%)# -12.70 -28.32 -27.97 -28.13

    D Revenue MibilisationAdditional Revenue Mobilisation rom achieving

    (a) 3% ROR 4,959 22,538 22,936 24,362

    (b) From introducing 50 paise per unit romAgriculture/irrigation

    2,176 540 755 773

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    Financial perormance

    RE: Revised Estimates * Provisional

    AP: Annual Plan Project # or losses without subsidy

    @ Commercial losses are dierent From uncovered subsidy because they include nancial results o other activities undertaken by the SEBs.

    Source: Planning Commission

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    Non-realisation o revenue or power generated

    has led to nancial degradation and spiral o

    worsening perormance

    The power sector in India suers huge nancial

    losses to the tune o US$ 6 billion per annum.

    These losses have accumulated over time and

    resulted in inadequate nancial resources orcapacity augmentation

    Financial perormance

    PROFILE OF INDIAN POWER SE CTORPOWER October 2007

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    In the expectation o greater private investment,

    the Eighth (19921997) and the Ninth Five-Year

    (19972002) plans o India included a sharp

    reduction in plan allocation in proportion to the

    total plan outlay

    A not-so-encouraging response rom private

    investors led to its enhancement in the TenthFive-Year plan (200207).

    Trends in public investment

    Trends in public investment

    n Power Sector Expenditure (Rs. Billion)

    n Power Setor Outlay (Rs. Billion)

    IV

    0 3000200015001000500 2500

    V

    VI

    VII

    VIII

    IX

    X

    III

    II

    I

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    Socio-political infuences

    High level o network losses

    High level o nancial losses

    Inadequate generation and transmission capacity

    Poor quality o supply

    Key issues conronting the sector

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    POLICY AND

    REGULATION

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    Power market structure

    Stakeholder outlook has been slowly improvingGeneration CGS

    Mega PowerProjects

    CERC

    IPP/ CPPStateOwned

    Licenseeowned

    Transmission

    Distribution

    PowerGrid (CTU)

    Consumers

    DistributionLicensee

    DistributionLicensee

    SERC

    STURPC/RLDC

    Trader

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    Improved policy & regulation regimes

    Recent policy/regulatory actions

    EA 2003 introducing

    Non-discriminatory open access to

    transmission

    at least

    Section 63 and ERCs to ollowcompetitive

    bidding process

    Section 79(2) - CERC to advise GoI on

    promoting competition

    Section 60 Controlling abuse o

    market power

    Market evolving -- competitive structure

    & minimal regulatory micro-management

    market power

    Evolving market structure in power sector

    NationalTari Policy

    2006

    Facilitating openaccess, supporting

    comp bidding ,separating wiresbusinesses

    enorcing USO

    ContestablePrice Discovery

    Competitive newgeneration

    Open Access, Sec 63/Section 79( 2)/ Sec 60

    Possible Wholesale/Retail Competition

    ElectricityAct 2003

    +

    +

    Redu

    cingne

    edformicr

    omanag

    emen

    tbyre

    gulat

    ors

    Increasin

    gpo

    tential

    com

    petit

    ion

    Comp. Bidding

    Guidelines -2004/5

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    Improved policy & regulation regimes

    Competitive Bidding Guidelines - 2004/05

    Competitive acquisition o new generation

    contestability

    National Tariff Policy 2006

    Promoting retail competition

    Supporting competitive acquisition o generationcapacity

    Enabling choice

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    Enabled Market Model under EA 2003

    Genco Genco Genco

    Open Access in

    Transmission

    Creating wholesale competition

    Creating Retail

    Competition

    Open Access inDistribution

    Traders

    Customer CustomerCustomer

    Disco Disco Disco

    Traders

    Distribution

    Transmission

    Generation

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    Impact on Industry structure under EA 2003

    Generators Long Term PPAs Licensing o capacity;

    extended project leadtimes

    Need or guarantees

    Restrictions on captivegeneration

    Transmission

    Bulk Supply Taris (BST)

    Single Buyer Model (SBM) Natural monopolies No private investment

    Distribution Retail Supply Taris Monopoly over consumers

    Lopsided tari structure Power Thet Poor collections

    Unreliable supply Poor quality

    Consumers

    Free access to consumers and traderso choice

    No restrictions on captive generation Reduced lead times Reduced nancial and regulatory risk

    Provisions to develop a robust powertrading market

    Will mitigate o-take risk or generators

    Will balance inter-regional disparitiesin power availability

    Non -discriminatory open access

    to transmission lines Multi Buyer Model Private captive investment allowed

    Open access (in 5 years) Surcharge on open access (not

    applicable to captive generation) No monopoly over consumers Parallel distribution networks allowed 100% metering in 2 years

    Consumer choice available

    Generators

    Traders

    Transmission

    Distributinon

    Consumers

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    EA 2003 provides institutional ramework

    Government Owned Vertically

    Integrated Monopoly

    Unbundled Utilities

    Privatized Distribution

    Multiple Distribution Licensees

    Non-discriminatory Open Access

    Expected Outcomes

    Reduction in Losses

    Regulated Cost Refective Tari

    phasing out cross subsidies

    Competition in Generation and

    Retail Supply

    Internal resource generation

    Private sector resource

    mobilization

    Improved Reliability and Quality

    o Supply

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    Mega Power Policy

    Exemption rom Custom duties, excise & central

    levies.

    Section 10(23) G benet on und raising.

    Increased ECB capital limits.

    State Implementation support. Decreased import duty on uel i.e. coal

    & liquid uel

    100% FDI allowed in Indian Power Sector

    (except Nuclear)

    A range o scal incentives have been introduced

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    OPPORTUNITIES IN THEINDIAN POWER SECTOR

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    Electrication o households by 2010 about

    50% yet to be electried

    Perspective Announced: 2012

    Per capita availability o 1000 units 631 units

    at present.

    Installed capacity over 2,00,000 MW 1,35,006 MW installed at present.

    Inter Regional Transmission Capacity

    37,000 MW 9500 MW at present.

    Energy Eciency/conservation savings about

    15%.

    Quality and Reliable power supply

    tremendous gaps

    Above opens up signicant opportunities

    Opportunities Macro perspective

    OPPORTUNITIES IN THE INDIAN POWER SECTORPOWER October 2007

    Source: MoP, GoI

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    Annual GDP growth rate o about 8 % would

    necessitate a minimum 10 % growth rate in the Indian

    power sector

    At this rate, economy would be 8 times the

    present size by 2020

    Sustained GDP growth will require similar growth

    in the power sector Indias GDP Growth rate %(Base year : 1993-94)

    2006-07

    7.8

    8.6

    9.0

    7.5

    4.4

    5.6

    4.4

    6.1

    6.5

    4.8

    7.8

    2005-06

    2004-05

    2003-04

    2002-032001-02

    2000-01

    1999-00

    1998-99

    1997-98

    1996-97

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    Foreign Investment:

    100% FDI is allowed in all segments o power

    sector including Trading

    No discrimination between domestic or oreign

    investors

    Fiscal incentives: Zero customs duty on import o capital goods

    or Mega Power Projects

    Income tax holiday or generating plants or

    10 years

    Multiple Investment Opportunities

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    Impressive progress in project execution:

    Public sector investment also stepped up to

    supplement the private sector 40,000 MW o

    generation capacity already under execution and

    US$ 43 bn already committed

    Financial closure o 4400 MW capacity

    in generation projects in private sector

    Financial Closure o another 2200 MW

    is in advanced stage

    Another 10000 MW being appraised

    by Financial Institutions

    Multiple Investment Opportunities

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    Huge opportunity spaces exist in the Power

    Sector, considering the demand

    Power requirement projections show scale o opportunity

    Year Total Energy Required(Billion kWh)

    Required(Billion kWh)

    Projected PeakDemand (GW)

    Required(GW)

    Installed Capacity

    At GDP Growth Rate At GDP Growth Rate At GDP Growth Rate

    8% 9% 8% 9% 8% 9%

    2011-12 1097 1167 158 168 220 233

    2016-17 1524 1687 226 250 306 337

    2021-22 2118 2438 323 372 425 488

    2026-27 2866 3423 437 522 575 6852031-32 3880 4806 592 733 778 960

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    For a capacity addition program o 1,00,000 MW,

    investments o about US$ 100 Billion needed

    Additional US$ 100 Billion needed or

    augmentation o Transmission, sub-transmission

    and Distribution networks, and Rural electrication

    Total US$ 200 Billion

    20% o the Total requirement expected by Private

    players

    Electricity Act 2003 provides enabling ramework

    Required investment scale - ample scope or sector investments

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    Enablers

    Generation Delicensed

    Clear and transparent tari setting principles

    Competitive bidding or power procurement

    by licensees

    Open access Captive policy

    Incentives or Rural Electrication

    Evolution o power markets

    A range o generation opportunities exist

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    Opportunities

    IPP

    CPP

    Target Markets

    Distribution licensees

    Industrial Consumers

    Rural areas

    A range o generation opportunities exist

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    Independent Power Transmission Company

    Private players can construct, operate and

    maintain transmission lines

    Interregional Link Operations

    Private transmission acilities may either take

    the orm o an independent power transmission

    company or a joint venture with the state-owned

    transmission utilities

    Transmission opportunities abound

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    Merchant Transmission Capacity or Open

    Access Customers

    Transmission licensees to allow non-discriminatory open

    access to their network on payment o

    - Transmission charges

    - Surcharge or cross subsidy, applicable to direct

    consumers only

    The rst Transmission Line on JV Route is being

    executed with M/s TATA Power or Transmission system

    associated with Tala HEP & East-North inter-connector.

    Transmission opportunities abound

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    Witnessing the Changes

    Regulatory Commissions constituted in 22 states

    Tari orders, perormance standards, terms and

    conditions o supply and tari notied

    Unbundling o the State Electricity Boards (SEBs)

    Distribution reorms initiated Orissa and Delhi distribution privatized

    Recovery rom SEBs regularized ater securitization

    Principles o multi-year-tari (MYT) regime

    proposed or urther privatization

    Stability o past contracts (except Dabhol Power)

    Power Sector investment Development scenario

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    Development Initiated

    Large capacity addition plans rmed up by Central

    PSUs and private sector majors (Tata Power,

    Reliance, Torrent)

    Smaller players also have major expansion plans

    (GVK, GMR)

    Earlier ringe players (captive generation) entry

    into the IPP sector (Jindal, Essar)

    Entry o more number o players or takeover

    o new privatized distribution

    Power Sector investment Development scenario

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    Generation

    National Thermal Power Corporation Limited

    Sixth largest thermal power producer in

    the world and Indias largest power producer;

    state owned player operating across the country

    Tata Power The Tata group pioneered power generation

    in India nine decades ago. Tata company has

    presence in all segments - Thermal, Hydro, Solar,

    Wind Energy, Transmission & Distribution

    Key Domestic Players

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    Generation

    Reliance Energy Ltd

    Indias leading integrated power utility company

    in the private sector. It has a signicant presence

    in generation, transmission and distribution o

    power in the states o Maharashtra, Goa and

    Andhra Pradesh.

    Torrent Power

    Entered the power sector by acquiring two old

    state owned electricity companies and turned

    them into power utilities comparable with the best.

    Key Domestic Players

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    14 Manuacturing plants

    279 Coal based Thermal Utility Sets o BHEL,

    including 29 Sets o 500 MW and 157 Sets o

    195-250 MW installed in the Country (As on

    31.03.07)

    During 2006-07, out o 279 Coal based Thermal

    Utility Sets o BHEL in the Country, 77 setsoperated at PLF > 90% (6 sets at 100%; 18 sets

    at 95 100% and 53 sets at 90-95%)

    Key Domestic Players

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    Strengths of BHEL

    Improvement on design philosophies to suit Indian

    conditions based on vast experience.

    Developed technologies/retrots to improve the

    perormance e.g.

    * Smart Wall Blower System

    * Gravimetric eeders with micro processor controls

    * Steam Tube Leakage Detection (STLD) system

    * By-pass Over Fire Air System NOx Control

    * High eciency BFP cartridge.

    Key Domestic Players

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    Foreign players entered/planning to enter India

    AES Corporation

    CLP Power

    Sumitomo

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    Major investors in the Indian Power include CMS

    Energy, Unocal, Woodside Petroleum, Siemens, ABB,

    AES Transpower, Powergen, CLP, PSEG, Tractabel.

    CMS holds around 20% stake in 235 MW

    gas/naptha uelled combined cycle power project

    promoted by GVK Reddy group at Jogurupadau

    in Andhra Pradesh. CMS Energy and ABB are the major promoters

    o the 250 MW lignite based power project at

    Neyveli, Tamil Nadu.

    CMS Energy along-with Unocal, Woodside

    Petroleum and Siemens are part o a consortium

    which plans to set up a 1885 MW LNG based

    power project at Ennore, Tamil Nadu.

    Private and oreign participation in Power sector

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    Joint Venture between Ansaldo Caldaie (85%)

    and GB Engineering (15%)

    Product Range:

    - Design, Manuacture and Supply o Utility Boilers

    and HRSGs

    Manufacturing Facilities in India:

    - Trichy - In JV with existing manuacturers

    (established)- Specialized Manuacturing bays or

    products like Burners, Ljungstorm Airheaters, etc.

    - Tuticorin - New Facility to augment the

    manuacuturing capability in India investments

    or uture big projects including large (Year 2008)

    Ansaldo Caldie (India)

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    Projects Handled in India:

    - 1980s 3 X 200 MW Coal Fired Boilers or NTPC

    Ramagundam

    - 1990 2 X 500 MW Coal Fired Boilers or NTPC

    Farakka

    - 1998 1 X HRSG or 230 MW GT or Reliance

    Energy, Samalkot

    - 2003 2 X 210 MW Lignite Fired Tower Boilers

    or NLC, Tamil Nadu

    Ansaldo Caldie (India)

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    JV Established on April 18 2007 by L&T (Larsen

    & Toubro Ltd.) 51% Shares MHI (Mitsubishi

    Heavy Industries) 49% Shares

    Investment : $ 167 Million

    Capability : 3,000 - 4,000 MW per annum

    Factory : Operation within 18 months

    Employee : 1,250

    Location : Delhi and Surat

    L&T MHI Boilers Pvt Ltd

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    ALSTOM HYDRO has developed the BARODA

    acility rom 2004 as an autonomous Manuacturing

    and Project Execution acility with two objectives:

    - to participate in the expansion o the Indian

    domestic market or hydro power with a strong

    determination to execute major projects

    - to execute export hydro projects rom India.

    12 major high capacity machines in operation

    today; all have been ully reurbished between

    2005 and 2007.

    4 more heavy machines will be in operation

    by March 2008, increasing production capacity

    to 900,000 hours

    Alstom Hydro

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    Key Projects executed/under execution:

    - VishnuPrayag (2 x 100MW, India) -

    Pelton runner repair

    - Chuzachen (2 x5 5 MW, India ) -

    Complete Turbine & Generator

    - Chamera III (3 x 77 MW, India ) -

    Complete Turbine & Generator

    - Subansiri (8 x 250 MW, India) -

    Complete Turbine & Generator

    - Uri II (4 x 60 MW, India) -

    Complete Turbine & Generator

    Alstom Hydro

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    Toshiba hydro power projects in India

    - KOLDAM 4 x 200 MW, HEP

    - TEESTA-V (3x170MW)

    - UMIAM I&II HEP(4x10.5MW, 2x9MW)

    - UMIAM-I R&M (2003)

    - PURULIA PUMPED STORAGE, HEP (4x225MW)

    - DAM (2x10.6MW Turbine)

    - HAMPI (2x10.6MW Turbine, 1962)

    - SSNNL (6 x 200 MW), HEP

    Toshiba Corporation

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    VA TECH HYDRO is the FIRST oreign company

    to set-up hydro manuacturing acilities in India

    Capability or turnkey execution o complete

    electrical Electro-Mechanical works

    Manuacturing acilities or:

    - Turbines, Governors, MIV & Auxiliaries

    - Hydro Generator, Excitation, Automation

    & Protection Systems

    Orders in hand/completed

    - Over 3000 MVA installed/order booked

    - Hydro (New): 1600 MVA

    - Hydro (R&M): 1400 MVA

    VA Tech Hydro

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    - Over 550 MW o Compact Hydro plants

    executed

    - Over 144 nos. Excitation Systems installed/

    order booked

    - Over 200 nos. Governors installed/order

    booked

    - Supplies all over the world (18 countries

    in 5 continents)

    VA Tech Hydro

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    O O S A O S C O

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    FDI outlook has been improving steadily

    2000 2001 2002 2003 2004 2005 Total Total(US $

    Billion)

    FDI in power sector 4760.2 8225.1 30494.6 1907.4 2510.6 1518.5 49416.2 1.1

    TotalFDI inlow

    100923.1 158418.9 161233.5 95640 147813.7 192707.2 8567365 19.04

    Share o power

    sector (%)

    4.72 5.19 18.91 1.99 1.7 0.79 5.77 5.77

    Actual FDI infows in Power Sector 2000 to 2005 (Rs. Million) trend ispositive

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    FDI outlook has been improving steadily

    Sector Majorityownership

    30 June2004

    31December

    2004

    31December

    2005

    31March

    2006

    NTPC Generation Public -- 4.84 6.86 7.07

    BHEL Equipment Public 23.04 20.56 22.07 22.42

    Reliance

    Energy

    Generation &

    Distribution

    Private 14.20 17.73 18.22 16.16

    Jai Prakash

    Hydro

    Generation Private -- -- 3.59 3.79

    CESC Generation &

    Distribution

    Private 13.71 15.08 17.20 19.19

    Foreign holdings in select Indian power companies trend is +ve

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    DISCLAIMER

    POWEROctober 2007

    This presentation has been prepared jointly by the India Brand

    Equity Foundation (IBEF) and ICRA Management Consulting

    Services Limited, IMaCS (Authors).

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    This presentation is or inormation purposes only. While due

    care has been taken during the compilation o this presentation

    to ensure that the inormation is accurate to the best o the

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    The Author and IBEF neither recommend or endorse any

    specic products or services that may have been mentioned

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