129 MARCH 2010Presentation by NTPC at FOIR Workshop - October 20, 20131

Generation Capacity Addition in Electricity Sector in India

2

Agenda

Overview of NTPC

Installed Generation Capacity in India

Plan wise Growth

Power Supply Scenario

Demand Forecast

Capacity Addition Target

Capacity Addition Achieved

3

NTPC Limited An overviewNTPC Limited An overview

4

11333

20249

1975

NTPC incorporated

(100% GoI)

1997

Became a Navratna Company

2004

Listed on Indian Stock Exchanges

(89.5% GoI)

2010• Maharatna

status• GOI further

divested 5%

1133320249

41684

Journey so far

+ 10 MW Solar

3577

9

5

Well Diversified Power Maharatna

Total installed capacity of 41,684 MW including 5364 MW through JVs

20,079 MW under construction First hydro capacity to be commissioned in this fiscal 10 MW solar plant has been already commissioned. Also

developing other renewable energy projects, such as wind and solar.

Power G

enerationPow

er Trading

Global footprint in Bangladesh and Srilanka through JVs Also appointed for power supply to Bangladesh and nodal

agency for trading power with Bhutan

6

Well Diversified Power Maharatna

10 coal mining blocks awarded to NTPC by GoI 95 MTPA coal will be mined from these blocks. Awarded oil exploration blocks

Mining &

Oil

ExplorationPow

er Equipm

ent

Electricity distribution business through NESCL Consultancy services to SEBs, State Generating

Companies and other private companies 5 MTPA LNG Terminal at Dabhol through JV

Others

JVs for manufacturing power equipments, castings, forgings, high voltage equipment and Balance of Plant (BoP) equipment for Indian and International markets

7

National /Global Ranking The largest Power Generator in India

337th largest company in the world (FORBES – 2012)

Tenth largest power generator in the world

No.1 IPP in world (Platts-250 ranking–2012)

Source: Platts, Forbes, International Consultant, CEA

Third largest Power Generator in Asia

Ranked 3rd Best Company to Work For in India (Economic Times and Great Places to Work Institute-2012)

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Group NTPC

21 Joint Ventures and 5 Subsidiaries For Synergistic Business Diversification

NTPC LimitedNTPC Limited

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Power Generation Services Equipment

Manufacturing Power TradingCoal Acquisition

NTPC Hydro Ltd. (100%)

NTPC Electric Supply Company

Ltd. (100%)

NTPC BHEL Power Projects Pvt. Ltd.

(50%)

NTPC Vidyut Vyapar Nigam Ltd. (100%)

International Coal Ventures Pvt. Ltd.

(14.28%)

Kanti Bijlee UtpadanNigam Ltd. (64.57%)

Utility Powertech Ltd. (50%)

BF NTPC Energy Systems Ltd. (49%)

National Power Exchange Ltd.

(16.67%)

NTPC SCCL Global Ventures Pvt. Ltd.

(50%)

Bhartiya Rail Bijlee Company Ltd. (74%)

NTPC Alstom Power Services Pvt. Ltd.

(50%)

Transformers and Electricals Kerala Ltd.

(44.6%)Aravali Power

Company Pvt. Ltd. (50%)

National High Power Test Laboratory Pvt.

Ltd. (25%)NTPC Tamil Nadu

Energy Company Ltd. (50%)

Nabinagar Power Generating Company

Pvt. Ltd. (50%)

Meja Urja Nigam Pvt. Ltd. (50%)

NTPC SAIL Power Company Pvt. Ltd.

(50%) Ratnagiri Gas and

Power Pvt. Ltd. (30.17%)

Energy Efficiency Service Limited (25%)

NTPC has set up subsidiaries and JVs to pursue its growth objectives

5 21Subsidiaries

Joint Ventures

CIL NTPC Urja Private Ltd. (50%)

Anushakti Vidhyut Nigam Ltd. (49%)

Trincomalee Power Company Ltd.

(50%)Pan Asian

Renewables Pvt. Ltd. (50%)

Bangladesh India Friendship Power Company (Pvt.)

Ltd. (50%)

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Turnaround of acquired from SEBs

1992

1995

2000

Talcher power station has an average life of ~38 years

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

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Commissioned 2490 MW in FY11-12Commissioned 4160 MW in FY 12-13JICA President’s award and IPMA award for Simhadri project IPMA award for Dadri Project Stage-II (2011), Vindhyachal-III (2008) IPMA award finalist – Talcher-II (2006) and Ramagundam-III (2006)

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

Robust project management translating to record capacity addition

1212

Profit after TaxRs. Crore

Total Revenue1

Rs Crore

CAGR: ~11%

Generation (NTPC Standalone) Capacity (NTPC Group) MW Units in Billions

CAGR: 11.3%

CAGR ~19% CAGR ~19 %

NTPC’s growth through the years

12

13

10%

Rs.1.38 Crs

Rs. 2.30 Crs

Rs 0.29 Crs

Rs. 0.38 Crs

Sales Per Employee

PAT Per Employee

Up67%

Up 31%

7.99MUs

9.27MUs

Generation Per Employee

Up 16%

Talent pool of ~25,000 employees Planned interventions at various stages of career Power Management Institute (PMI) – Playing a pivotal role in

individual and organizational learning. Leadership Development Centre to identify and groom potential

leaders. Training Simulators for 660 MW / 500 MW / 200 MW coal and gas

based plants

Ranked 3rd in the Aon Hewitt Best

Employers in India 2012

FY07 FY12

2012

Human Capital – Continuously Improving Productivity

1414

2012-13: The year of records

4,170 MW capacity added

4,830 MW declared commercial

8,576 MW awarded

Rs. 19,925 crores of CAPEX

Rs 11,500 Cr (48% of total disinvestment) raised through OFS for GoI. Oversubscribed 1.7 times. 45% from FII.

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HydroCoal Gas Nuclear Renewables

Planning for Accelerated Growth

Capacity under construction – 20079 MW

Today41684MW

2032~ 128000 MW

15Going High on Generation-Lower GHG

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Generation Capacity AdditionGeneration Capacity Addition in Indian Power Sector in Indian Power Sector

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Installed Generation Capacity

Thermal, 155968, 69%

Hydro, 39788, 17%

RES, 28184, 12%

Nuclear, 4780, 2%

Thermal Hydro Nuclear RES

Installed Capacity as on 30.09.2013 – 2,28,722 MW

Source: CEA

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Installed Generation Capacity

Central, 65732,

29%

State, 90062,

39%

Private, 72926,

32% Central

State

Private

Installed Capacity as on 30.09.2013 – 2,28,722 MW Source: CEA

Private sector’s share has increased from around 15% to 32% in last 5 years.

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Growth in Generation Capacity (Plan-wise)

Installed Capacity at the end of Plan ( in MW)

2,886 4,653 9,027 16,66326,680

42,58563,637

85,795105,046

132,329

199,877

223,344

0

50,000

100,000

150,000

200,000

250,000

1st Plan 2nd Plan 3rd Plan 4th Plan 5th Plan 6th Plan 7th Plan 8th Plan 9th Plan 10th Plan 11th Plan 2012-13

Source: CEA

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Power Supply Scenario

YearPEAK ENERGY

Requirement (MW)

Shortage (%)

Requirement (BU)

Shortage (%)

2010-11 1,22,287 9.8 861.591 8.5

2011-12 1,30,006 10.6 937.199 8.5

2012-13 1,35,453 9.0 998.114 8.7

Source: CEA

Shortage scenario is likely to continue in near future

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Demand Forecast – 18 EPS

Demand forecast 2012-13 2013-14 2016-17 2021-22 2026-27 2031-32

Energy Requirement at power station bus bar (BU)

985 1066 1355 1905 2710 3710

Peak load at power station bus bar (GW)

139.682 152.329 199.54 283.47 400.71 541.82

Source: 18th Electric Power Survey of India

CAGR of energy requirement projected for 2009-17 translates to 8.55%Actual Peak Demand met in 2012-13 was 123.294 GW

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Working Group on Power – XII plan

Working Group on Power for XII Plan had estimated capacity addition requirement of 75,785 MW during XII Plan and 93,400 MW during XIII Plan corresponding to 9% GDP growth

In addition capacity addition of 18500 MW during XII plan and 30500 MW during XIII Plan has been estimated from RES.

Fuel XII Plan XIII PlanThermal 63781 63400Hydro 9204 12000Nuclear 2800 18000Total 75715 93400

Source: Working Group on Power – 12th Plan

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Capacity Addition Target – XII plan

In order to reduce gap between peak demand and peak deficit and to provide for faster retirement of old inefficient plants, capacity addition target for XII Plan has been enhanced to 88,537 MW (excluding RES) by the Planning Commission.

In addition, 30,000 MW of capacity addition from RES (Wind – 15000 MW, Solar – 10000 MW, Small Hydro – 2100 MW and Biomass – 2900 MW) has been targeted for the XII Plan

Since the growth rate of GDP for the XII Plan is likely to be 8.2% and not 9%, the target for capacity addition contain an element of slack of about 10%.

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Capacity Addition Target –XII Plan

Sector Hydro Thermal Nuclear Total

Central 6004 14878 5300 26182

State 1608 13922 0 15530

Private 3285 43540 0 46825

Total 10897 72340 5300 88537

(in MW)

Source: Planning Commission, 12th Plan Document

Thank you