The Tata Power Company Limited

Analyst Meet – March 2008

1
Disclaimer
Certain statements made in this presentation may not be based on historical information or facts and may be
“forward looking statements”, including those relating to The Tata Power Company Limited’s general business plans
and strategy, its future outlook and growth prospects, and future developments in its industry and its competitive
and regulatory environment. Actual results may differ materially from these forward-looking statements due to a
number of factors, including future changes or developments in The Tata Power Company Limited’s business, its
competitive environment, its ability to implement its strategies and initiatives and respond to technological changes
and political, economic, regulatory and social conditions in India.

This presentation does not constitute a prospectus, offering circular or offering memorandum or an offer to acquire
any Shares and should not be considered as a recommendation that any investor should subscribe for or purchase
any of The Tata Power Company Limited’s Shares. Neither this presentation nor any other documentation or
information (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 any
responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information or
opinions contained herein. The information contained in this presentation, unless otherwise specified is only current
as 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 without
notice and past performance is not indicative of future results. The Tata Power Company Limited may alter, modify
or otherwise change in any manner the content of this presentation, without obligation to notify any person of such
revision 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 ANY
OTHER SECURITY OF THE TATA POWER COMPANY LIMITED.

2
Management Team

Prasad Menon S Ramakrishnan

Managing Director Executive Director
(Finance)

S Padmanabhan Banmali Agrawala

Executive Director Executive Director
(Operations) (Strategy & Business Dev)
3
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

4
Part A: Overview of Tata Power

5
A Tata Company

6
Tata Power: Introduction
• Largest private, integrated utility company in India today with presence across the
value chain in fuel, generation, T&D and trading
• Founded in 1906, to supply hydro-electric power to Mumbai. Set-up thermal
generation in Trombay in 1960s
• Expanded outside Mumbai with IPP (Belgaum) and CPP (Tata Steel) in 1990’s
• Thrust on renewables including wind, hydro and solar
• Successful Public Private Partnerships in generation, transmission and distribution

7
 Pioneer in Power Sector
First 800 MW
thermal unit

First pump
storage unit
in the country
of 150 MW Capacity
First to Introduce
SCADA and
Fibre Optic
ground wire
communication

Flue Gas
De-sulphurisation
plant using
220 kV
sea water
Cable
Transmission
220 kV Network
transmission
Computerized
lines in
grid control
First four circuit
and energy
gas towers
First management
insulated
500 MW switch system
First
150 MW thermal gear
thermal unit
unit

8
Existing Presence in Power Sector

Tala Transmission
NDPL

Jojobera 428 MW
Trombay 1330 MW
Supa 17 MW
Mumbai Distribution
Mumbai Transmission Khandke 51 MW
Hydro 471 MW Bramanvel 11 MW
Thermal (1839 MW)
Belgaum 81 MW
Hydro (471 MW)

Wind ( 79 MW)

Transmission

Distribution

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Vision, Mission and Values

10
Tata Power Group – Major Companies
Tata Power

Subsidiaries Joint Ventures Associates

Coastal Gujarat Tata BP Solar Ltd

100% Power Ltd 49%
30% KPC
100% Tata Power Trading Tubed Coal
Company Ltd` 40% Mine Ltd
30% Arutmin
100% TPC Asia Pte Ltd Mandakini Coal
33% Mine Ltd
74% Maithon Power 40% Tata Ceramics Ltd
Ltd
Industrial Energy
74%
Ltd

51% North Delhi

Power Ltd
51% Powerlinks
Transmission Ltd

50% Nelco Ltd

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 • Trombay
• Hydro
• Jojobera
Businesses •
•
Belgaum
Haldia
• Wind Farm
• Solar PV
• Mundra
Division
Generation • Maithon
• Tata Steel JV (IEL)
Other Entities • Tata BP Solar

Transmission
• Mumbai
• Tala

Power Business Distribution • Mumbai

• Delhi

• Tata Power Trading

Tata Power Trading

• Indonesian Coal Mines

• Coal Bed Methane
Fuel & Logistics • Mandakini
• Tubed
• TPC Asia
Other Business • SED
• Tata Ceramics
• NELCO

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Strategic Directions
Integrated Play
• Presence across
value chain
• Fuel supplies
& logistics
Competency
Management
• Operations Focus on Large
Indian Opportunity
• Project
• Create strong
Execution
project pipeline
• New Business
Models

Grow Subsidiary
Businesses Thrust on
sustainable
development
• Renewables
• CSR Initiatives

International
Play

13
 Part B: Global Scenario

14
World Primary Energy Needs
‘000’ Mtoe

18 Other renewables
Biomass and waste
Hydro
Nuclear
14

10 Gas

6 Oil

2 Coal

2005 2015 2030

• Projected to grow from about 11.4 billion to about 17.7 billion tonnes of oil
equivalent from between now & 2030
• 74% of that increase will be accounted for by developing countries (India & China
would account for 45% of that increase)
Source: International Energy Agency
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World Primary Energy Needs by Fuel
000’ Mtoe
6

2005 2030
Coal Oil Gas Nuclear Hydro Biomass and waste Other renewables

• 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
Source: International Energy Agency
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Energy Related CO2 Emissions

High Growth Scenario

45
41.9 68%
4
Reference 57%
35 Scenario

Alternative Policy 27%

26.6 Scenario
25

15

1980 1990 2000 2010 2020 2030

• Energy related CO2 emissions will go up by 57% from 26.6 to 41.94 billion tons
and 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.
Source: International Energy Agency
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 Energy & Electricity Consumption
Per Capita Energy Consumed Per Capita Electricity Consumed

Kgoe kwh
7,000 12,200

1,000 2,150
500 625

US China US China India

India

• Per capita energy consumption of India is 500 Kgoe as compared to US which is

at 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)

Source: International Energy Agency

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 Part C: Power Business
– Section 1: Generation
– Section 2: Fuel & Logistics
– Section 3: T & D
– Section 4: Power Trading

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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

Huge capacity additions will be required Private participation is likely to increase

This presents a great opportunity for Tata Power

Source: Planning Commission Documents
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Generation: Business Models

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Tata Power: Existing Operations
Mumbai Licence Area (1777 MW)
Trombay - Thermal Hydro Power Generation

Unit 4 150 MW Oil & Gas Khopoli 72 MW

Unit 5 500 MW Oil, Coal & Gas Bhivpuri 75 MW
Unit 6 500 MW Oil & Gas Bhira 300 MW
Unit 7 180 MW Gas Total 447 MW
Total 1330 MW

Wind 79 MW

Jojobera 428 MW Belgaum 81 MW

CPP IPP
23
Thermal Projects Under Implementation

Maithon1050 MW

Jojobera/Jamshedpur 240 MW
Mundra 4000 MW Haldia 120 MW
Trombay 250 MW

Thermal (5660 MW)

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Project Capacity • 4000 MW (5 x 800 MW)

Ownership Structure • 100% subsidiary: Coastal Gujarat Power Limited

Customers • 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

Mundra
UMPP

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Project Capacity • 1050 MW (2 x 525MW)

Ownership Structure • Maithon Power Limited 74: 26 JV of Tata Power and Damodar
Valley Corporation
Business Model • Regulated

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

Maithon

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 JAMSHEDPUR (PH #6) JOJOBERA (Unit #5)
Project Capacity • 120 MW • 120 MW

Ownership Structure • IEL (74:26 JV of Tata • IEL

Power and Tata Steel)
Business Model • CPP • CPP

Funding • Project Cost: Rs 490 Crores • Project Cost: Rs 640 Crores

• D/E 70:30 • D/E 70:30
Completion • August 2008 • September 09

Project Status • Fuel: Coke oven gases of • Fuel: Linkage from West Bokaro and
Tata Steel Mahanadi Coal field.
• Land: Provided by Tata Steel • Land: Provided by Tata Steel

Captive Power
Plants

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Project Capacity • 250 MW

Ownership Structure • Tata Power Division

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

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

Trombay Unit 8

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

Ownership Structure • Tata Power Division

Business Model • Regulated

Customers • Hoogly Metcoke, PPA with Tata Power Trading and WBSEDCL

Funding • Project Cost Rs 605 Crores

• D/E 70:30
Completion • March 2008 (45MW)
• October 2008 (75 MW)
Project Status • Fuel: Hot flue gases from Hoogly Metcoke
• Land: Subleased from Hoogly Metcoke

Haldia

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Projects in Pipeline

Total 5670

Planning & development activities initiated

30
Generation Capacity (Tata Power Group)

12861
Capacity (MW)
11261

5261
2389 2474 3041 3161

2007 2008
2009 2010
2011 2012 2013

Fiscal Year
(Ended 31st March)

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Future Opportunities In Thermal Generation

Bid Based Tata Power qualified for about 8000 MW of bidding based generation
projects such as Tillaiya, Dhopave and Shahpura.
Further opportunities to be explored as available

Captive Growth in Tandem with Tata Steel requirements

Opportunity to grow with similar other customers

IPP/Merchant Further IPPs being explored based on coal mine allocation

Opportunity to set up CBM based projects

International Actively exploring opportunities for acquisition and greenfield

expansion

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Hydro Electric Power
• Oldest and one of the largest private sector players with capacity of 447 MW

• Several awards and recognitions – Bhira and Bhira Pump Storage Scheme received
the CEA Silver Shield this month

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

33
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
Other the Indian market
Initiatives • Exploring feasibility of standalone biomass based power plants
• Exploring possibilities of geothermal generation

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Installed Capacity • 79 MW

Project Under • 123 MW

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

Ownership Structure • Tata Power division

Business Model • Regulated

Funding • Project Cost: Rs 633 Crores

• September 2008 (23 MW)

Completion
• February 2009 (100 MW)
Project Status • Turnkey projects by Enercon
• Substations ready at Gujarat and Karnataka

Wind Farms

35
Wind Projects Under Implementation

Samana 50 MW

Sadawaghapur 23 MW

Gadag 50 MW
Wind (123 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

• India’s first Polycrystalline Solar cell manufacturing plant and 45 MW module

manufacturing facility (largest in the region)

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

37
 Part C: Power Business
– Section 1: Generation
– Section 2: Fuel & Logistics
– Section 3: T & D
– Section 4: Power Trading

38
Fuel
s
ye ar
Fuel supplies -2 5
for new proje 2 0
cts for

39
Indonesian Coal Mines
Deal Highlights Off Take Agreement: Key Features
• Acquired 30% equity stake in KPC and • Pricing in line with Mundra assumptions
Arutmin from PT Bumi Resources, for first 5 years
Indonesia
• Prices linked to CERC index post 5 years
• Acquisition value of USD 1.1 bn
• Off-take contract of 10.5 mtpa ± 20%

Loading port – all

Mining operations weather, capable of
are efficient – Rio handling cape size
Tinto and BHP vessels
practices followed

Loading port at KPC Coal conveyor belt at KPC

40
TPC Energy Asia Private Limited
• SPV incorporated in Singapore for owning ships to meet shipping requirements
and 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

41
 Part C: Power Business
– Section 1: Generation
– Section 2: Fuel & Logistics
– Section 3: T & D
– Section 4: Power Trading

42
 Inter Region Transmission Opportunities
Northern Region

+ 4000 MVA
• Interregional transmission
North-Eastern Region
capacity is inadequate and
leads to network congestion
+ 3500 MVA
+ 5500 MVA 5000 MVA • Accumulating utility / zone
2300 MVA access charges lead to high
Western Region
tariff for power flow from East
1250 MVA
+ 1000 MVA to demand centers (North and
Eastern Region West)
+ 5700 MVA
2800 MVA • Longer term allotment (> 7
yrs) prioritized over short term
+ 1000 MVA
1700 MVA
• Capacity to be increased to
3150 MVA 37 GW by 2012
Southern Region

Capacity to be implemented

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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

44
Mumbai: Transmission and Distribution

• 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

45
North Delhi Power Limited (NDPL)
• 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

AT&C Losses

Re
du
ce
d
Privatized July 2002
fr o
m
53
%
to
23
%

46
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 region

to 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

47
 Part C: Power Business
– Section 1: Generation
– Section 2: Fuel & Logistics
– Section 3: T & D
– Section 4: Power Trading

48
 Power Trading
Traded Power (MU) Power Trading Projections (MU)

%
3 1.7
G R
CA

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
49
Tata Power Trading Company Limited

TPTCL Sales (MU) Market Share Position

as of Feb 2008

Source : Compiled from RLDC web sites

50
 Part D: Other Businesses

51
Strategic Electronics Division (SED)
• 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

52
• 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 Gas
etc.
• Tie-ups with international players for defence, weather management systems, VSAT,
SCADA etc.

53
 Tata Ceramics

• 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 and
retail

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Part E: Financial Performance

55
Financials
Nine Months Ending December 31 2007

56
Tata Power – Financials (Standalone)
Annual Sales (MU) Profit After Tax (In Billion Rs.)
14,422
13,616
12,318 12,231 12,663 6.97
6.11
5.19 5.51
5.09

2003 2004 2005 2006 2007 2003 2004 2005 2006 2007

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

34 44.67
40.10
28 29 35.36 36.19
26 26 32.01

2003 2004 2005 2006 2007 2003 2004 2005 2006 2007

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Dividend History

Earnings (Rs.)
40
Dividends (Rs.)
Payout ratio (%) 30

30

20 %
Rs. 20

10
10

0 0
2003 2004 2005 2006 2007

58
Funding by Tata Power - Projects under
Implementation
Own Funds Debt
(Rs 6,000 Crores) (Rs 18,000 Crores)
• Internal accruals: Rs 2900 Crores • Domestic loans through domestic
• Preferential Issue/warrants - Tata financial institutions, banks and
Sons: Rs 1900 Crores capital markets
• Remainder • Foreign loans through external
– Disinvestment of various holdings Credit Agencies and Multilateral
or assets Agencies: ADB, IFC
– Equity dilution through warrants,
preferential issue and/or rights if
required

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

59
Sensex vs Tata Power
Rs / share Points

60
 Part F: Beyond Business

61
Socially Responsible
Environment
• Over thirty year old eco-restoration and eco-development program in the
Western Ghats – One of the most sensitive ecosystems in the world
• Over 7 million saplings of 60 tree species planted in the area. Over 600,000
trees 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
Community
• 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 in
the breeding of fishes
• Supplying drinking water from the Company’ lakes to local communities

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Environment: Achieving Global Norms
• 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

Source : PwC Report

63
63
Drive Energy Efficiency & Conservation Measures
• Launched “I will Mumbai will”, a joint advertising campaign
with REL and BEST to educate Mumbai consumers on
energy conservation. Key messages were:
– Shift consumption away from the 10 am - 8 pm peak
times
– AC at 24 degree centigrade
– Switch off the devices from the plug point
• Ongoing education of Mumbai consumers to invest in
energy efficient devices/appliances

64
Thank you

65