Power Generation & Transmission

20,000 MW

4620 MW
Current FY 2020

Adani Power: Power Generation & Transmission

Adani Power projects are in high growth states of India. No
Kawai August 2013 Under Implementation: 1,320 MW Chhindwara Under Planning : 1,320 MW

Power Generation
Location
Mundra (Gujarat)* Tiroda (Maharashtra) Kawai (Rajasthan) Total - Implementation Under Planning
(Pench, Dahej & Bhadreshwar)

Capacity (MW)
4,660 3,300 1,320 9,280 7,260 16,540

1 2 3

Bhadreshwar
Under Planning 3,300 MW
Dehgam

Mohindergarh

Grand Total

Power Transmission
Sr. No. Connecting Locations Mundra Dehgam 1000 MW, 400 KV Tiroda Warora 1000 MW, 400 KV DC Mundra Mohindergarh 2500 MW, 500 KV HVDC Tiroda Aurangabad1 4500 MW, 765 KV SC Total
Notes: 1 Project under AEL Subsidiary
Warora

Mundra Commissioned: 4,620MW

Aurangabad

Length (Kms) 433 219 1000 1290 2,942 2

Tiroda July 2013 Under Implementation: 3,300 MW

1 2 3 4

Dahej Under Planning: 2,640 MW

40 MW Operational Solar Power Project in Gujarat1 * In Operation 4660 MW

Power Scenarioin India at a Glance

As per the 17th Electric Power Survey (EPS), energy demand is estimated to increase at a CAGR of 7.4%, to 1392 billion kWh during the Eleventh Five-Year Plan period (2012-17). The government has targeted a capacity addition of 1,00,00 MW during the Twelfth Five-Year Plan period. The central sector is expected to account for a major portion of the capacity additions (21.5%), followed by the state sector (15%) the private sector (45.5%) and captive power addition of 12%. The total installed capacity in the Northern region was 53,925 MW as on 31th March, 2012. The peak power deficit in Haryana as recorded in June, 2008 was 10.2% which is greater as compared to the overall figure for the entire northern region. The peak deficit for the whole of northern region was recorded at 8.5%.

Power Generation & Transmission: The Story So Far Adani

Thermal Operational Capacity 4,620 MW Five operational Super Critical units (660 MW each) first time in India Lower carbon and green house emission Current Projects under implementation At Advanced Stage : 4,620 MW (Tiroda 3,300 MW & Kawai 1,320 MW) At Development Stage : 7,260 MW (Pench 1,320 MW, Dahej 2,640 MW, Bhadreshwar 3,300 MW) Long term off take arrangement for 7,269 MW in place (79 % of 9,240 MW Mundra, Tiroda, Kawai)

Installed Capacity in Haryana as on 30.06.2008

Sector

Hydro

Thermal

Nuclear

R.E.S

Total

Coal

Gas

Diesel Total

State

884.2 1,602.5

0.0

3.9 1,606.4

0.0

0.3

2,553.3

Private

0.0

0.0

0.0

0.0

0.0

0.0

6.0

6.0

Central

366.9

380.0

534.0

0.0

914.0

53.0

0.0

1,333.9

Total

1,313.5 1,982.5

534.0

3.9 2,520.4

53.0

6.3

3,893.2

Supply and Demand situation in Haryana 30.06.2008

Period

Peak Demand (MW)

Peak Met (MW)

Peak Deficit / Surplus (MW)

Peak Deficit / Surplus (%)

Energy Requirement (MU)

Energy Availability (MU)

Energy Deficit / Surplus (MU)

Energy Deficit / Surplus (%)

9th Plan End 2002-03 2003-04

3,000 3,411 3,465

2,900 3,325 3,278

-100 -86 -187

-3.3 -2.5 -5.4

18,138 20,298 20,743

17,839 19,688 19,779

-299 -610 -964

-1.6 -3.0 -4.6

2004-05
2005-06 2006-07 2007-08 Apr 08 June 08

4,037
4,333 4,837 4,956 4,965 4,965

3,621
3,931 4,201 4,821 4,461 4,461

-416
-402 -636 -135 -504 -504

-10.3
-9.3 -13.1 -2.7 -10.2 -10.2

21,801
23,791 26,249 29,353 6,396 2,180

20,562
21,631 23,132 25,652 5,809 2,089

-1,239
-2,160 -3,117 -3,701 -587 -91

-5.7
-9.1 -11.9 -12.6 -9.2 -4.2

HVDC Project Back Ground

ADANI POWER LIMITED has acquired an order for 1424 MW of Power sale for 25 years to Haryana State from Haryana Vidyut Prasaran Nigam Lt. ( HVPNL) under stiff competition with other Independent Power Producers in India.

The Power to Haryana will be supplied from Adani Power Ltd.(APL) 4620 MW Mundra Power Plant situated in Gujarat.

The Task
The 1424 MW of Power will be delivered at HVPNLs 400 kV Mohindergarh Substation in Haryana state which is situated 960 kM away from Mundra Power Plant in Gujarat. The Power Delivery date to HVPNL is August 2012.

Criteria
The system decision is based on the fulfillment of the following criteria: i) Minimum Losses in Transmission ii) Minimum Right of way for Line corridors (to save environment and save time and avoid disputes for obtaining ROW). iii) High reliability under system/ grid disturbances. iv) High availability to take care of contingencies.

v) Proven Technology.
vi) Possibility to control the Power flow. vii) Most optimum cost of the system to control investment.
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POWER DELIVERY TO HARYANA VARIOUS OPTIONS:

In addition to PPA agreement with Haryana for 1424 MW of Power, about 416 MW of Power is available for trading and Northern Region is already in need of Power, it is considered prudent to deliver this additional power to Northern Grid through Central Transmission Utility (CTU). Therefore the Transmission system to Haryana should have Power handling capacity = 1508 + 412 MW = 1920 MW ( say 2000 MW). Whatever opotion is chosen, any single contingency should be able to deliver atleast 1424 MW power to Haryana to fulfill PPA commitment.

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POWER DELIVERY TO HARYANA VARIOUS OPTIONS: Contd..

3 Nos 400 kV Double Circuit quad conductor Lines with switching stations at every 300 kM with Reactive compensation and Series compensation. 2 Nos Single Circuit 765 kV quad conductor Lines with 400/765 kV station at Mundra, 2 Nos 765 kV Switching stations in between with Reactive compensation and Series compensation. 2500 MW, +/- 500 kV HVDC Bipole system with Quad Bipole line, 2 Nos.Electrode stations 25 to 35 kM from Mundra and Mohindergarh, 2 Nos. Optical communication booster stations. From the Techno- Economic Analysis, the 2500 MW, HVDC System becomes an obvious choice.

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Power Limited FINANCIALS

Project Cost
The Project cost has been estimated to be Rs. 2,750 crores which includes the turnkey cost of the EPC Contractor, Project management fee, financing charges and IDC, other miscellaneous expenditure, development

expenses, contingency and margin money towards

working capital.

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Details of Project Cost

Sr.No 1. 2. 3. 4 5. Particulars Land HVDC Converter stations, Electrode station and booster stations Transmission Lines and other Tower materials Conductor Insulators Hardware and Line Accessories Earth Wire PTCC/Forest Clearance Earth Electrode Miscellaneous Fixed Assets Sub Total Contingency Pre Operative Expenses Margin money Interest during Construction Sub Total Total Project Cost Amount 50.00 1,457.81 304.88 181.91 126.81 29.00 7.00 1.50 22.66 30.00 2,211.57 245.20 48.00 6.49 238.25 537.94 ~ 2,750.00

7. 8. 9. 10.

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Means of Finance of the Project

Particulars Capital Contribution - Adani Power Limited

Amount

Percentage

550.00 Cr

20%

Debt Finance - Rupee Term Loans - Sub-Ordinate Debt Total

2,062.50 Cr 137.50 Cr 2,750.00 Cr

75% 5% 100%

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PROJECTED FINANCIAL INDICATORS - ASSUMPTIONS

Notice to Proceed (NTP) Line Capacity (MW) Base Case Capacity for Transmission Revenues (MW) Levelised Tariff for PPA with Haryana (Rs./kWh) Transmission Service Charge (Rs.)

October 2009 2500 1873 2.94 0.40

Debt Equity Ratio Upfront Equity Tenure of Loan Construction & Moratorium period Repayment period Interest Rate of the Project Term Debt

4:1 25% 12.5 years 30 months 10 years 11.25%

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PROJECTED FINANCIAL INDICATORS

Financial Yearend Total Transmission(MW) Net generation(In MU) Transmission Tariff (Rs.) Revenue Expenditure EBITDA Depreciation Interest PBT EBITDA Margin TTL TOL Interest Coverage FACR 2012 557 0.4 196.9 9.2 187.7 46.5 82.7 58.5 2013 1873 0.4 661.7 30.2 631.5 139.6 239.7 252.2 2014 1873 0.4 663.1 31.0 632.1 139.6 214.9 277.6 2015 1873 0.4 662.7 31.9 630.8 139.6 190.1 301.2 2016 1873 0.4 662.4 32.8 629.5 139.6 165.3 324.7 2017 1873 0.4 48.6 2018 1873 0.4 49.6 2019 1873 0.4 50.7 2020 1873 0.4 51.8 2021 1873 0.4 53.0

22.3% 74.9% 74.9% 74.9% 74.9% 74.9% 74.9% 74.9% 74.9% 74.9% 662.0 661.6 661.2 660.9 660.5 613.4 612.0 610.6 609.1 607.5 139.6 139.6 139.6 139.6 139.6 140.5 114.7 89.8 65.0 40.2 333.3 357.8 381.1 404.5 427.7

95.3% 95.4% 95.3% 95.2% 95.0% 92.7% 92.5% 92.3% 92.2% 92.0% 2062.1 1855.9 1649.7 1443.5 1237.3 1031.1 824.9 618.6 412.4 206.2 2206.1 1999.1 1779.2 1559.3 1339.4 1119.5 899.6 679.7 459.8 239.9 2.20 1.31 2.38 1.38 2.65 1.47 2.98 1.58 3.40 1.73 3.89 1.94 4.74 2.25 6.00 2.78 8.24 13.23 3.83 6.98

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PROJECTED FINANCIAL INDICATORS - COMPANY

Financial Year Revenue Expenditure EBITDA Depreciation Interest PBT PAT Cash Accruals EBITDA Margin PAT Margin Equity Capital Res. & Surplus TNW TTL TOL ROCE TTL/TNW TOL/TNW Int. Coverage FACR 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 464 2,108 5,172 9,025 9,069 9,110 9,152 9,204 9,058 9,116 9,180 241 1,053 2,372 3,647 3,709 3,773 3,907 4,090 4,161 4,235 4,311 223 1,055 2,801 5,378 5,359 5,337 5,246 5,114 4,897 4,881 4,869 49 80 94 84 133 213 551 935 935 935 935 935 935 969 935 793 935 616 383 1,225 1,841 1,678 1,501 1,325 1,149 394

459 1,025 2,601 2,746 2,901 2,986 3,030 2,992 3,153 3,318 804 1,872 1,983 2,100 2,172 2,659 2,623 2,764 2,908 608 1,355 2,807 2,918 3,035 3,107 3,594 3,558 3,699 3,843

48.0% 50.0% 54.2% 59.6% 59.1% 58.6% 57.3% 55.6% 54.1% 53.5% 53.0% 18.0% 18.7% 15.5% 20.7% 21.9% 23.1% 23.7% 28.9% 29.0% 30.3% 31.7% 5,689 5,689 5,689 5,689 5,689 5,689 5,689 5,689 5,689 5,689 5,689 84 478 1,282 2,880 4,589 6,416 8,132 10,335 12,503 14,811 17,263 5,773 6,167 6,971 8,569 10,279 12,105 13,821 16,024 18,192 20,500 22,953 6,759 11,324 14,578 13,350 11,829 10,309 8,789 7,268 5,748 4,227 2,707 7,100 12,460 16,675 15,970 14,813 13,365 11,871 10,294 8,694 7,108 5,523 1.4% 1.17 1.23 2.67 1.30 4.8% 10.4% 20.3% 20.0% 19.6% 19.1% 17.9% 16.5% 16.0% 15.3% 1.84 2.02 2.59 1.19 2.09 2.39 2.06 1.32 1.56 1.86 2.47 1.37 1.15 1.44 2.68 1.47 0.85 1.10 2.97 1.60 0.64 0.86 3.29 1.77 0.45 0.64 4.07 2.01 0.32 0.48 4.62 2.38 0.21 0.35 5.62 3.01 0.12 0.24 7.19 4.36
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Key Financial indicator - Project

Financial Indicator Minimum DSCR Average DSCR Project IRR Estimated Value 1.26 1.73 20.27 %

Key Financial indicator - Company

Financial Indicator Minimum DSCR Average DSCR Project IRR Estimated Value 1.41 1.74 24.50 %

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 Own transmission lines for Power evacuation

433 Kms, 400 KV to transmit 1,000 MW - Operational 1000 Kms, 500 KV HVDC to transmit 2,500 MW - Operational

Carbon Credits: Projects certified as CDM Projects by UNFCCC

Mundra Ph III (2 x 660 MW): First Super Critical technology project in the world
Mundra Ph III - 1.84 Mil CER p.a. for 10 years from commissioning. Tiroda Ph I - 1.19 Mil CER p.a. for 10 years from commissioning

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Thank You

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Back up Slides

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Current Structure
Adani Power Limited (APL) owns the following transmission lines: - 400 kV D/C from Mundra Dehgam - 500kV HVDC Bipole Trans. Line Mundra Mohindergarh - 400 kV D/C from Mohindergarh - Bhiwani - 400 kV D/C from Mohindergarh Dhanonda

Adani Power Maharashtra Limited (APML), subsidiary of APL, owns the following transmission line: - Tiroda Warora MEGPTCL, subsidiary of Adani Enterprise Limited (AEL), owns the following transmission line: - Tiroda - Aurangabad

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Power Sector Scenario

Original Target s f or Capacit y Addit ion in Power Sect or during t he Elevent h Plan (in MW) Source Central State Private Total Hydro 8 ,6 54 3,4 8 2 3,4 9 1 15,6 27 Thermal 24 ,8 4 0 23,30 1 11,552 59 ,6 9 3 Nuclear 3,38 0 --3,38 0 Tot al 36 ,8 74 26 ,78 3 15,0 4 3 78 ,70 0

Source: document o n M id-Term A ppraisal o f the eleventh Five Year P lan. P lanning Co mmissio n, Go I

Revised Target s f or Capacit y Addit ion in Power Sect or during t he Elevent h Plan as per Mid Term Appraisal of Planning Commission (in MW) Source Central State Private Total Hydro 2,9 22 2,8 54 2,4 6 1 8 ,237 Thermal 14 ,9 20 18 ,50 1 17,336 50 ,757 Nuclear 3,38 0 --3,38 0 Tot al 21,222 21,355 19 ,79 7 6 2,374

Source: document o n M id-Term A ppraisal o f the eleventh Five Year P lan. P lanning Co mmissio n, Go I

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Power Sector Scenario

Capacity Addition - (April 11 to February 12) Source Target (MW) Acheivement Hydro 1,980 1,281 Thermal 14,636 12,052 Nuclear 1,000 Res @ Total 17,616 13,333

@ Renewable Energy Sources (RES) includes Small Hydro Project(SHP), Biomass Gas(BG), Biomass Power(BP),

Source : CEA

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Growth of Transmission Sector

SINCE 6 TH FIVE YEAR PLAN
Transmission Lines (ckm) 4 0 0 kV transmission Lines At the end of 6 t h Plan 7t h Plan 8 t h Plan 9 Th Plan 10 t h Plan 11t h Plan upt o Feb 12
Source: CEA

220 kV Transmission Lines Total 4 6 ,0 0 5 59 ,6 31 79 ,6 0 0 9 6 ,9 9 3 1,14 ,6 29 1,39 ,4 0 2

Central State JV/ Pvt 1,8 31 4 ,19 8 -13,0 6 8 23,0 0 1 29 ,34 5 50 ,9 9 2 75,337 6 ,756 13,14 1 20 ,0 33 24 ,730 33,39 9 ----7,520

Total

Central State JV/ Pvt 1,6 4 1 4 4 ,36 4 -6 ,0 29 4 ,56 0 55,0 71 -19 ,8 24 36 ,14 2 6 ,56 4 8 ,6 8 7 9 ,4 4 4 10 ,9 19 73,0 36 8 8 ,30 6 1,0 5,18 5 1,28 ,0 53 ---4 30

4 9 ,378 75,722 1,16 ,256

Sub Stations (M VA) 4 0 0 kV Sub-Stations At the end of 6 t h Plan 7t h Plan 8 t h Plan 9 Th Plan 10 t h Plan 11t h Plan upt o Feb 12
Source: CEA

220 kV Sub-Stations Central State JV/ Pvt 50 0 36 ,79 1 -9 ,330 1,8 8 1 51,8 6 1 -21,58 0 2,56 6 2,8 6 6 4 ,276 5,9 56 8 1,6 11 1,13,4 9 7 1,52,221 2,13,735 ---1,56 7 Total 37,29 1 53,74 2 8 4 ,177 1,16 ,36 3 1,56 ,4 9 7 2,21,258

Central State JV/ Pvt 715 8 ,6 15 -6 ,76 0 17,34 0 23,575 4 0 ,4 55 74 ,8 8 0 14 ,8 20 23,525 36 ,8 0 5 52,4 8 7 73,172 ----6 30

Total

4 0 ,8 6 5 6 0 ,38 0 9 2,9 4 2 1,4 8 ,6 8 2

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Growth of Transmission Sector

GROWTH OF TRANSMISSION SECTOR (As on 29-0 2-20 12)
Central Sector State Sector JV/ Pvt Transmission Lines (ckm) 765 kV 40 0 kV 220 kV +/- 50 0 kV HVDC Lines Substations (MVA) 765 kV 40 0 kV 220 kV +/- 50 0 kV HVDC Convert er BTB St n Convert er Terminal (MW)
Source: CEA

Total 6,474

6,0 0 1 75,337 10 ,919 5,948 13,50 0 74,8 8 0 5,956 9,50 0

473 -33,399 1,28 ,0 53 1,50 4 -73,172 2,13,735 1,70 0 7,520 430 1,98 0 --

1,16,256 1,39,40 2 9,432 13,50 0

630 1,48 ,68 2 1,567 2,21,258 -11,20 0

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Growth of Transmission Sector

Invest ment Planned in Transmission Sect or in Elevent h Plan Elevent h Five Year Plan Int er - St at e Int ra - St at e Tot al Rs in Billions 750 6 50 1,4 0 0

So urce: M inistry o f P o wer, Repo rt o f the Wo rking Gro up o n P o wer fo r Eleventh P lan (2007-201 2).

CEA est imat es f or Target t ed Invest ment in Transmission Sect or in Twelf t h Plan Twelf t h Five Year Plan Int er - St at e Int ra - St at e Tot al
So urce: CEA , Key Inputs fo r XIIth P lan Financing o f P o wer Secto r

Rs in Billions 2,4 0 0 4 ,0 0 0 6 ,4 0 0

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Transmission Sector
Transmission Lines (both AC 6th Plan 7th Plan and HVDC) 8th Plan 9th Plan At the end of Add. in first 10th Plan four years of 11th Plan (2007-11) 3,138 971 49,378 96,993 1,50,480 5,872 1,704 75,722 1,14,629 1,97,927 1,580 1,636 26,856 19,561 49,633 (values in ckm) Expected at Expected Expected by end of 11th addition end of 12th Plan during 12th Plan Plan 9,432 4,616 1,12,961 1,40,782 2,67,791 9,440 27,000 38,000 35,000 1,09,440 18,872 31,616 1,50,961 1,75,782 3,77,231

HVDC Bipole lines 765 kV 400 kV 6,029 220 kV 46,005 Total Transmission Line, ckm 52,034

19,824 59,631 79,455

1,634 36,142 79,600 1,17,376

Source Draft National Electricity Plan (Volume - II) Transmission [In fulfilment of CEAs obligation under section 3(4) of the Electricity Act 2003] Government of India Ministry of Power Central Electricity Authority Feb-12

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Transmission Sector
Draft National Electricity Plan (Volume II) considers 80 GW generation addition for 12th Plan over and above 62 GW target as per Mid Term Assessment for 11th Plan by Planning Commission. Fund requirement for development of Transmission System estimated to be of the order of Rs. 1,80,000 Crore.

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ATL Requested Sanction Terms

APL / APML would provide following securities to existing lenders for the period they give NOC for release of Security till the time their money is paid.

Undertaking from Adani Power Limited

Corporate Guarantee of Adani Enterprises Limited

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Proposed Mechanism
Part II AEL to infuse Funds to extent of 30% of Total Assets to take over share of APL and APML amounting to Rs. 1,397 Crores Funds from AEL will be utilized for repayment to APL (Rs 1201 Crs) & APML (Rs. 196 Crs.) Partnership Firm to be Converted in Company under Part IX of Companies Act, 1956 immediately which shall be WOS of AEL.

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Advantages of Separation to APL & APML

Transmission Lines shall be available for transferring Power generated by APL and other Power Generating Units and surplus capacity will be available to other power producers, Reduction in transmission cost for APL & APML To get priority on wheeling our power though other national gird in case of technical shut down / breakdown of our Transmission Line. Reduction in Debt of Rs. 3600 Crs in APL and Rs. 455 Crs in APML

Debt Equity Ratio to Improve

34