WELCOME

PRESENTATION

ON

CURRENT CAPACITIES AND WAY FORWARD

BY

R. VENKATESWARANREGIONAL EXECUTIVE DIRECTOR(SOUTH)NTPC LTD

29 MARCH 2010 August’2014

Indian Power Sector

India is the World’s 3rd largest economy…

Source: World Bank, IEA - Key World Energy Statistics-2014, CEA

16.2 14.86.4 4.5 3.4 3.4 2.9 2.4 2.2 2.2

GDP (PPP) Trillion USD

…but our per capita electricity consumption is amongst the lowest

* Provisional

13227

101627847 7083 6533

3298 2933 2441 1677 917*

Kwh India among the lowest per capita consumers of electricity globally, lagging China by over 3.6:1

Per capita consumption 31% of the world average

4.4%

5.8%

3.8%

8.5%

7.5%

9.5% 9.7%

9.3%

6.7%

8.6% 8.9%

6.7%

4.5% 4.7%

Source: Economic Survey February 2014 and RBI, CMIE

Services contribute 60% to GDP (Manufacturing 15%)

Manufacturing share to increase to 25% by 2025

Manufacturing is power intensive

Energy demand growth closely linked to GDP growth

Current Power Scenario

India’s Energy Sector - Structure

TransmissionTransmission

Distribution

GenerationState Power

Utility

CPSUs

IPPs & Private

Captive

Generation

State Trans. Utility

CTUPowergrid

Private Utilities

Transmission

SEBs

Discoms

PrivateLicensees

Distribution

End Consumer

CaptiveConsumer

Consumption

Power Trading Companies

Open

Coal

Oil & Natural Gas

Power

Central Subjects Concurrent Subject

Nuclear Energy

• Govt. Coal Companies• Private Captive Coal

Producers

Both Exploration & Production • Govt. • Private

Govt. Company

Planning Commission – The Apex Planning Agency in the country

Under the VIIth Schedule of the Indian Constitution, power is in the “concurrent list”

Legislative function

Executive Function

Execution

Cen

tre

Sta

tes

Parliament MOP, GOI

Central PSEs

State Assemblies

State Govts.

SEBs/State Utilities

/IPPs/Lic.

Regulatory Function

CERC

SERCs

CEA

BEE

Power – the concurrent subject

Power Sector - Policy InitiativesPower sector development can distinctly be divided into ‘four stages’:

•Regulatory framework created

•SEBs’ unbundling

•EA2003 seeks to promote competition, rationalize tariff

•Private participation incentivized

4,50,000 MW

1,50,000 MW

15,000 MW

1900 1948 1998/ 2003 2020

Year

Ca

pa

cit

y

Stage- 1 Stage- 2

Stage- 3

Stage- 4

1975

• Sector infancy

• In a few cities

• Very small capacity – 1365 MW

•Power - state subject

•State electricity boards (SEBs) created

•SEBs vertically integrated

•Slow growth – ~16,500 MW

•For rapid growth, power made concurrent subject

•Central utilities viz. NTPC, NHPC created

• Worsening SEBs’ condition

De-licensed generation.

Freedom to captive generation including group captive

Recognizing trading as an independent activity.

Open access in transmission

Open access to consumers above 1 MW

Multiple licenses in distribution.

Regulatory Commissions at the State & Central Level

Power Policy Framework Electricity Act 2003: The hallmark of power reforms in India

Ambitious capacity expansion program underway One time settlement scheme for outstanding dues of CPSUs

National Electricity Policy Tariff Policy New Hydro Policy UMPP Policy Re-structured - Accelerated Power Development and

Reforms Programme (R-APDRP) Rural Electrification – RGGVY National Mission for Enhanced Energy Efficiency under

National Action Plan for Climate Change

Power Policy Framework

Other Policy Initiatives

100% Foreign Direct

Investment

Tariff Based Bidding for

Generation & Transmission

Franchisee Model for

Distribution

Increasing Private

Participation

Coal – The main-stay for Power

Generation

Adopting Super / Ultra-Super Critical Technology

Large size UMPPs Power Trading

Through Exchanges

Energy efficiency &

Demand Side Management

Trading of E-Certs under PAT

Mechanism

Open Access in Transmission &

Distribution

Domestic Manufacturing capacity being

increased

Renewable Energy

Development

Generation Based Incentive for Renewables

Renewable Purchase

Obligation

Trading of Renewable Certificates

Power Policy Framework

Source: Central Electricity Authority,

Installed Power Generating Capacity

Total Capacity – 250 GW*

*Excluding Captive CapacityAs on 30.07.2014

94, 38%

68, 27%

88, 35%

GW

State Central Private

31833; 13%

4780; 2%

40799; 16%

149178; 60%

22608; 9%1200; 0%

Capacity in MW

RES Nuclear Hydro Coal Gas Diesel

Installed Power Generating Capacity

Total Capacity – 250 GW*

~55 GW added in 11th Plan (2007-12)- Highest ever capacity in any plan since independence

All India Generation FY14: ~960 Billion KwhrSource: Central Electricity Authority, *Excluding Captive CapacityAs on 30.07.2014

Source: MNRE,

Installed Power Generating Capacity

Total Renewable Energy based Capacity ~32 GW

As on 31.05.2014

21,262, 67%

3,804, 12%

1,365, 4%

2,648, 8%2647, 8% 107, 1%MW

Wind Small HydroBomass Bagasse CogenerationSolar Waste to Power

Future Growth Plans

Economic growth

Plan to increase manufacturing sector’s share in GDP

Electrification of rural India

Realization of latent & suppressed demandGrowth in residential consumption due to demographic changes

Electricity growth outlook in India

FY17 FY22 FY27 FY32

306 425 575778

337 488685

9608% GDP Growth 9% GDP Growth

FY17 FY22 FY27 FY32

1524 2118 286638801687

24383423

4806

GWs

BUs

India faces energy deficit of 4.0% and peak deficit of 3.7% Source: Planning Commission, CEA

Capacity Addition in 12th Plan

Total Capacity Planned – 88.5 GW*

*Excluding RES capacity of 30 GW

~43 GW added in the current plan till 31st July 2014

17%

30%53%

GW

State Central Private

Source: 12th Plan Document, Planning Commission, CEA

12%

78%

3% 6% 1%

GW

Hydro CoalGas/LNG NuclearLignite

Power Sector Fund requirement

Source: Draft report of 12th Plan Working Group on Power

12th Plan fund requirement in Power Sector – $270 Billion

46%

13%

22%

1%

10%8%

Generation

Transmission

Distribution

DSM & EE

Renewbles

Others

•20 GW by 2022 (NTPC playing an important catalytic role)

National Solar mission

•Mechanisms to promote Energy efficiency (Labeling, Audits, PAT)

National Mission for Enhanced Energy Efficiency

•Building efficiency, recycling

National Mission on Sustainable Habitat

•Increase water use efficiency by 20%

National Water Mission

•Sustaining and safeguarding the Himalayan ecosystem

National Mission for Sustaining the Himalayan Ecosystem

•Forest cover from 23% to 33%

National Mission for a Green India

•Develop new crops

National Mission for Sustainable Agriculture

•Innovative technology

National Mission on Strategic Knowledge for Climate Change

A sub-mission for development of clean coal technologies

India’s low carbon growth

National Action Plan on Climate Change (NAPCC)

Challenges Facing the

Indian Power Sector

Challenges facing the Indian Power Sector

Shortage of fuel – Coal & Natural gas

Delay in Land acquisition

Environment & Forest Clearances

Ash Utilization

Financial health of state discoms

Other Challenges

Rail, Road, Port infrastructure for fuel transportation

Inter-regional transmission capacity

Open Access in Distribution

Linking intermitted Renewable power with national grid – Renewable transmission corridor under consideration

Reducing the capital cost of Renewables particular Solar, Offshore wind etc.

THANK YOU

NTPC Limited

- An Overview

NTPC’s Growth Journey

1982 1992 2002 2012

9900 16

294

37049

5984

Growth of Capacity - MW

Coal Gas

200

Total

1433

3955

Today

11333

20249

43128*

1975

NTPC incorporated

1997

Became a Navratna Company

2004

Listed on Indian Stock Exchanges(GoI holding

89.5%)

2010

• Became a Maharatna Company

• GOI divested 5% equity

1982

First 200 MW unit

commissioned

2013

• GOI further divested 9.5% equity

*Including 95 MW Solar PV

National /Global Ranking

The largest Power Generator in India

424th largest company in the world (FORBES ranking – 2014)

Tenth largest power generator in the world

No.1 IPP in world (Platts-250 ranking–2013)

Source: Platts, Forbes, International Consultant, CEA, The Economic Times & Great Place to Work Institute Inc.

Third largest Power Generator in Asia

Ranked 42nd Best Company to Work For in India (Best among the public sector companies) (The Economic Times and Great Places to Work Institute-2014)

21 Joint Ventures and 4 Subsidiaries For Synergistic Business Diversification

Group NTPC

Power Generation

Power TradingPower

DistributionPower Equipment

ManufacturingPower Services

Coal Mining

NTPC Limited

The Largest Power Generator in India

Northern15%

NCR15%

Western34%

Eastern21%

Southern15%

No. of plants Capacity (MW)

Share

NTPC Owned

Coal 17 33,015 76.6%

Gas/Liquid fuel 7 4017 9.3%

Solar 7 95 0.2%

Sub-Total 31 37,127 86.1%

Owned by JVs

Coal 6 4034 9.4%

Gas 1 1967 4.6%

Sub-Total 7 6001 13.9%

Total 38 43,128 100.0%

With 18% share in installed capacity, NTPC Group’s contribution in electricity generation is 26%

NTPC NTPC GROUP

200,010MW 82%

43,019 MW18%

728BUs, 74%

248BUs, 26%

Rest of India NTPC Group

As on Mar 31,

2014

205,984 MW

85%

37,045 MW 15%

728BUs 76%

233BUs24%

Rest of India NTPC

As on Mar 31,

2014

NTPC’s coal based stations registered a PLF of 81.5% against the national average of 65.5%

18% 19% 15%

32%

86%95% 93%

67%

Unchahar Talcher Tanda Badarpur

At Takeover date FY14

Talcher power station has an average life of ~40 years

ASIAN POWER PLANT OF THE YEAR AWARD 2006 BY ASIAN POWER MAGAZINE TO FEROZE GANDHI UNCHAHAR TPS

Turnaround capability

PLF

JICA President’s award for Simhadri project

IPMA award for Dadri Project Stage-II in the year 2011

IPMA award for Simhadri project in the year 2005.

IPMA award for Vindhyachal project in the year 2008.

Project ManagementUnit Commissioning (Achieving Full Load) Time in Months from investment approval

State-of-the-art Project Monitoring Center

FY13 FY14

68856

74708

FY13 FY14

12619

10975

Strong balance sheet (FY14)

Total Income Profit After Tax

12.9%

INR CroresINR Crores

Net Worth Rs 85,815 Cr.

Total Assets Rs. 1,79,554 Cr.

Paid up equityRs 8245.5 Cr.

8.5%

Reduced PAT due to exceptional item in FY13

10%

Talent pool of ~25,000 employees Power Management Institute (PMI) – Playing a

pivotal role in individual and organizational learning.

Training Simulators for 660 MW / 500 MW / 200 MW coal and gas based plants

Ranked 6th in the

Aon Hewitt Best

Employers in

India 2011.

Human Capital

2014

34

Our Vision

“To be the world’s largest and best power producer, powering India’s

growth”

86%

14%

Today ~43 GW*

Coal Gas Nuclear Hydro Renewables

2032 ~ 128 GW

Planning for Accelerated Growth

Capacity under construction: ~22 GW* 95MW Solar PV Projects

36

Implementing high efficiency technology

Sustainable Power Development…

Hydro, Renewable & Nuclear Energy forays

1499 MW hydro capacity under construction Developing Wind and Solar capacities – 1000 MW by 2017 Anushakti Vidhyut Nigam Ltd. - JV company formed with NPCIL for nuclear

power development - NTPC(49% ) & NPCIL( 51%)

NTPC along-with IGCAR & BHEL developing material for Advanced Ultra-Super-Critical Technology

3x660 MW (1980 MW) - Commissioned at Sipat 1x660 MW (660 MW) - Commissioned at Barh

16x660 MW (10,560MW) - Under construction at Barh, Mouda, Solapur, Meja & Nabinagar, North Karanpura

4X660 MW (2640 MW) - Under bidding

9x800 MW (7200 MW) - Under construction at Kudgi, Lara, Gadarwara & Darlipalli

Intend to invest up to 1% of distributable profit for R&D Activities and Climate Change studies

ECBC (Energy Conservation Building Code) compliant building

ISO/NABL 17025 Certified Labs

Research & Technology Development

NTPC Energy Technology Research Alliance

Focus Areas

Efficiency & Availability Improvement and Cost Reduction

Renewables and Alternate Energy

Climate Change and Environment

Scientific Support to Stations

• Majority of the future coal based capacities will be based on super critical technology

Technology choices

• Ambient Air Quality Monitoring System(AAQMS) installed in NTPC stations

Monitoring Systems

• Online energy management system to reduce auxiliary power consumption

• Energy AuditsEnergy Conservation

• Creation of green wealth of ~19 million trees Afforestation

38

Sensitivity towards Environment

Sri Lanka 2x250 MW coal based power project in Trincomalee through a JV Co. with Ceylon Electricity Board.

Bangladesh

1320 MW Coal Based Power Plant at Khulna being Developed through a 50:50 JV Co. with BPDB on BOO basis

NVVN appointed for supplying Power to Bangladesh

39

Tapping Global Business

Women Empowerment

Providing Health Care

Reaching out to the differently-abled

Promoting Employability & bridging skill gaps

Preserving Heritage40

Committed for Inclusive Growth

Consistent Independent Recognition of NTPC’s Excellence

Dun & Bradstreet American Express

Corporate Award

PLATTS TOP 250 GLOBAL

ENERGY COMPANY

Greentech Environment Excellence

Award

SCOPE Excellence

Award

IEEMA POWER AWARD IPMA AWARD

CII - ITC SUSTAINA

BILITY AWARD

ProjectManagement

Environment Management

Corporate Finance

Leading Power Company

Best CFOICAI AWARD

ICSI National Award For

Excellence in Corporate

Governance

Corporate Governance

Corporate Excellence

Awards and Accolades

NTPC Limited ( A Government of India Enterprise)

www.ntpc.co.in