Reliance Power Limited

Investor Presentation
Forward looking statements – Important note

This presentation and the discussion that follows may contain “forward looking statements” by Reliance
Power Ltd that are not historical in nature. These forward looking statements, which may include
statements relating to future results of operation, financial condition, business prospects, plans and
objectives, are based on the current beliefs, assumptions, expectations, estimates, and projections of the
directors and management of Reliance Power Ltd about the business, industry and markets in which
Reliance Power Ltd operates. These statements are not guarantees of future performance, and are
subject to known and unknown risks, uncertainties, and other factors, some of which are beyond
Reliance Power Ltd’s control and difficult to predict, that could cause actual results, performance or
achievements to differ materially from those in the forward looking statements. Such statements are not,
and should not be construed, as a representation as to future performance or achievements of Reliance
Power Ltd. In particular, such statements should not be regarded as a projection of future performance of
Reliance Power Ltd. It should be noted that the actual performance or achievements of Reliance Power
Ltd may vary significantly from such statements.

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Reliance Power Ltd
Reliance Power – journey so far
Portfolio of
Company with the ~35,000 MW
largest coal
reserves in the
Largest power private sector
generation portfolio
Commissioned
under development
Rosa Stage I, first
in the private sector
operational capacity
2010

Financial closure of Sasan 2009

UMPP, largest project financed Won Tilaiya UMPP
debt in India (` 14,550 cr) (3,960 MW, 1,230 MT coal)
2009 Won 3 out of 4 UMPPs

Won Sasan UMPP

2007
(3,960 MW, 700 MT coal) Won Krishnapatnam UMPP
2007 (3,960 MW, imported coal)

2005
Formation of Reliance
ADA Group
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Reliance Power – project portfolio

Projects in Arunachal
Urthing Sobla (400 MW) Pradesh (4220 MW)
Dadri Gas

Rosa (1200 MW)

Chitrangi (5,940 MW)

Tilaiya (5940 MW)

Sasan (5,940 MW)
Bharuch Gas

Shahapur Gas Butibori (600 MW) Diversification of projects

Shahapur Coal (1200 MW) North East, North,

4220, 12% 1600, 5% Hydro,
4620, 14%
Samalkot (220 + 2,400 MW)
Goa IPP (48 MW) East,
Krishnapatnam (5,940 MW) 3960, 12%
Region-wise Gas, 8433, Fuel-wise
break up West, 25% break up Coal,
17348, 20820,
South, 51% 61%
6745, 20%
Kochi IPP (165 MW)

Operating projects Projects under construction Projects under development

Generation capacity growth

35,000
MW
Cumulative Installed Generation Capacity

25,000
MW

5,000
MW

1,033
MW
Currently
2012 2015 2017
operating

Largest power generation portfolio under development in the private sector

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Development status of captive coal based projects

17,820 MW 17,820 MW 11,880 MW 17,820 MW

17,820 MW

18000

16000

14000

12000

10000

8000

6000

4000

2000

0
Water Coal Environmental Land
Clearance

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Development status of gas based projects

10,000 MW 10,000 MW 10,000 MW

10,000 MW

10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
Water Environmental Clearance Land

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Operational projects
Operating portfolio
Rosa Stage 1
•600 MW subcritical coal based
•25 year PPA with UPPCL – cost plus
Operational capacity: •Coal supply from CCL (Ashoka mines)
•COD: 12 March 2010 (Unit 1) and 30
1,033 MW June 2010 (Project)

Goa Power Project

•165 MW Combined cycle gas based
•Power off take
•15 year PPA with Govt of Goa – 40%
•Industrial consumers supply – 60%
•Naphtha supply from MRPL
•COD: 14 August 1999

Samalkot IPP
•220 MW Combined cycle gas based
•15 year PPA with AP Transco – cost
Kochi IPP plus
•165 MW Combined cycle gas based •Natural gas supply from GAIL (APM
•15 year PPA with Kerala Govt – cost gas) & RIL (KG Basin)
plus •COD : 7 November 2002
•Naphtha supply from IOCL
•COD: 23 November 2001

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Coal based projects under construction/development
Power Project portfolio - snapshot
Sasan I Krishnapatnam I Tilaiya I

Capacity 3,960 MW (6 units) 3,960 MW (6 units) 3,960 MW (6 units)

•Jharkhand: 990 MW
•Madhya Pradesh: 1485 MW •Uttar Pradesh: 643.5 MW
•Punjab: 594 MW •Bihar: 495 MW
•Uttar Pradesh: 495 MW •Punjab: 445.5 MW
Beneficiaries (25 year •Andhra Pradesh: 1584 MW
•Delhi, Haryana: 445.5 MW •Gujarat, Maharashtra:
PPA) •Tamil Nadu, Karnataka,
each 297 MW each
Maharashtra: 792 MW each
•Rajasthan: 396 MW •Rajasthan: 247.5 MW
•Uttarakhand: 99 MW •MP, Haryana: 198 MW each
•Delhi: 148.5 MW

3 captive coal mines 3 coal mines acquired in 1 captive coal mine

Fuel supply (reserves: 707 MT) South Sumatra, Indonesia (reserves: 1.23 bn tonne)

COD as per PPA 2013 2013 2015

Implementing three out of four UMPPs awarded by GoI till date

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 Status of coal based projects
Rosa Stage 2 Butibori Sasan I Krishnapatnam I

Capacity 600 MW (2 units) 600 MW (2 units) 3,960 MW (6 units) 3,960 MW (6 units)

Land acquisition Completed Completed Completed Completed

EC approval Obtained Obtained Obtained Obtained

Financial closure Achieved Achieved Achieved Achieved

Reliance Infra/ Reliance Infra/ Reliance Infra/

EPC/BTG contract Shanghai Electric
Shanghai Electric Shanghai Electric Shanghai Electric

Cost plus: 300 MW Captive / Case I / Case II bid Case II bid

Off take
Merchant: 300 MW Merchant

CCL; linkage awarded WCL; Linkage awarded Captive coal mines Acquired 3 coal mines in
Fuel supply
(E Grade coal) (D Grade coal) being developed ** Sumatra, Indonesia **

Expected COD 2012 2012 2013 2013

** Details on coal reserves available separately 13

 Status of coal based projects (contd.)
Chitrangi I Tilaiya I

Capacity 3,960 MW (6 units) 3,960 MW (6 units)

Land acquisition and site Land available and Land available and construction to
status construction commenced commence

EC approval Obtained Obtained

Financial closure In advanced stages In progress

Case I Bids/Merchant
Case II Bid
Off take

Fuel supply Captive coal mines Captive coal mines

Expected COD 2014 2015

90% of coal based portfolio being developed based on captive coal mines
** Details on coal reserves available separately 14
Coal reserves and mining activities
Coal linkage,
Imported coal, 1,800 , 9%
5,160 , 25%
Total reserves : 2.05 bn tonnes
Largest coal reserves in the private
sector in India Captive coal,
13,860 , 66%

Expected coal production: over 65 MTPA

Two third of coal based portfolio
based on domestic captive coal

Sasan coal mines (707 MT)

Mine plans prepared & approved
Production (mine plan): 25 MTPA
CV of coal: avg 4700 kcal/kg
Tilaiya coal mines (1230 MT)
Sasan UMPP reqd: 14 MTPA
Mine plans being prepared
Production (mine plan): 40 MTPA
Rampia coal mines (113 MT) CV of coal: avg 4200-4400 kcal/kg
Allocated to Reliance Infrastructure Tilaiya UMPP reqd: 15 MTPA

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Coal mines in Indonesia
Kalimantan
Resources 32906 MT;
Reserves 4262 MT

Brayan Bintantiga Energi

Sumatra
Resources 27396 MT
Reserves 2744 MT

Significant coal resources available in Indonesia Sugico

Pendragon
Energi

2 billion tonnes of coal resources in 3 coal

mines acquired
Sriwijaya
• Production: over 20 MTPA Bintantiga
• CV of coal: 4000-4200 kcal/kg Energi
• Requirement in Krishnapatnam: 16 MTPA

Acquired 100% economic interests in 3 coal mines from Sugico Group

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Gas based projects under development
Gas based portfolio of Reliance Power

Gas based portfolio:

8,433 MW *

Dadri Gas

8.000 MW of capacity to be
distributed across regions
Bharuch Gas

Shahapur Gas

Samalkot (220 MW)

Goa IPP (48 MW)

Brownfield expansion possibilities

at Samalkot, Goa and Kochi
Kochi IPP (165 MW)

* 433 MW from R-Infra subject to regulatory approval

Operating projects Projects under construction Projects under development

Status of gas based projects

Samalkot Expansion Other gas projects

Capacity 2,400 MW TBD

East Godavari Dist,

Location UP, Maharashtra & Gujarat
Andhra Pradesh

EC approval Obtained

EPC/BTG contract Awarded TBA

Off take Case I Bids & merchant sale across states in North, West & South India

Gas supply Gas allocation by Govt. of India

Expected COD 2012 2013-2015

Gas portfolio to be divided optimally across North, West and South India

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Hydroelectric projects under development
Hydroelectric portfolio of Reliance Power

Hydroelectric portfolio:
4,620 MW
Portfolio in Arunachal
Pradesh (4220 MW)
Urthing Sobla (400 MW)

All run of the river projects across

Siyom (1000 MW) Amulin (420 MW)
the Himalayan range in North India
Tato (700 MW) Emini (500 MW)
Mihundon (400 MW)

Kalai (1200 MW)

90% of portfolio in Arunachal

Pradesh, the highest potential state

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Status of hydroelectric projects
Kalai II, Amulin,
Siyom Tato II Urthing Sobla
Emini and Mihundon

Capacity 1,000 MW 700 MW 400 MW Combined 2,520 MW

Land acquisition Acquisition in progress Acquisition in progress Not yet initiated Not yet initiated

In progress In progress
EC approval Obtained In progress

•NHPC DPR updated

•DPR prepared
•To be submitted to
•Submitted to CEA and
Detailed Project CEA/CWC soon for
CWC for approval DPR being prepared To be initiated soon
Report (DPR) approval process
•Water availability study
•Water availability study
approved by CWC
approved by CWC

Kalai II – L&T MHW;

DPR consultant Halcrow, UK SNC Lavalin, Canada SMEC, Australia
Others to be done

60% cost plus & 40%

Off take 60% cost plus & 40% merchant power Merchant
merchant power

Expected COD 2016 2015 2016 2017

Development activities in progress for each project as per schedule

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Additional revenue generators
Carbon credits
Available CERs for sale per year

Coal based portfolio 7 mn To generate

Gas based portfolio 8 mn
revenues of over
Rs 1,000 crore p.a.
Renewable energy 1.6 mn at current CER prices
Total 16.6 mn

•Consultant: Ernst & Young

Sasan UMPP •Validation of project concluded and project submitted for registration
Status of projects

with CDM Executive Board

Krishnapatnam •Consultant: Perspective GmbH

UMPP •Global stakeholder consultation process completed

•Host country clearance obtained and global stakeholder consultation

Tilaiya UMPPP
process underway

Gas based and

•Initial documentation work in progress
hydroelectric portfolio

Installation of clean and high efficiency technology to result in significant CER revenues
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Fly ash sale
Available fly ash for sale per year

Rosa I and II 1.2 mn

To generate
Sasan UMPP 4 .0 mn revenues of
Rs 450 crore p.a.
Chitrangi 6 .0 mn at fly ash price of
Rs 300 per tonne
Tilaiya UMPP 4 .0 mn

To 15.2 mn

•Cement manufacturing companies

•Ready mix concrete (RMC) and construction companies
Business

Major procurers
details

•Asbestos manufacturing companies

•Brick kilns

•Reliance Power supplying fly ash to procurers in NCR and Western

Current status
Uttar Pradesh from Rosa Stage 1

High ash content in Indian coal (average 25-30%) makes fly ash sale a lucrative option
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Businesses of RNRL
Key assets in RNRL

Operating business
Coal transportation logistics for Dahanu TPP

Natural gas supply business

Contract with RIL for 28 mmscmd gas

4 coal bed methane (CBM) blocks

Estimated reserves: 193 bcm

Oil and gas block in Mizoram

Estimated reserves: 28 bcm

Shipping and logistics business

for coal and gas based projects

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CBM blocks

4 blocks awarded to RNRL under CBM -III

Area CBM Gen.

Block State Resource capacity
(sqkm) s BCM (MW)
Barmer (4) Rajasthan 1168 82.0 600
Barmer (5) Rajasthan 739 38.0 500
Kothagudem A.P. 735 57.2 650
Sohagpur M.P. 609 16.7 250
Total 3251 193.9 2,000

To support natural gas based generation

capacity of over 2,000 MW **

** Not yet included in existing generation portfolio 28

Other assets

Shipping business
To transport 15-20 MTPA of coal from Indonesia to
India

Require 7 cape-size vessels for coal

transportation
Oil and gas block

Oil and gas block in Mizoram – MZ-ONN-2004/2

Acreage 3,619 acres

Estimated reserves: 28 bcm

Estimated peak production of 8 mmscmd

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People

Over 2,000 employees (R Power and R

Infra – EPC contractor) working at various
project locations

Over 80% of workforce comprises

engineers

5,000 Target people with a mix of

people in entrepreneurial mindset and techno
2015 commercial orientation

500
people in Team leading execution have strong
2010 experience in power project planning and
execution oriented roles
5 People
in 2005

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Key strategies for value creation

Minimize cost of generation

Through captive coal mining, economies of scale, shared resources and cheaper financing

Ensure fuel security

Tied up fuel supplies and control over supply chain for 100% of generation portfolio (diversified
across captive coal mines – domestic and international, coal linkages & gas supply)

Focus on power deficit regions

Over 60% of projects located in and 80% of power supplied to states in the Northern and Western
regional grids – India’s most power deficit regions

Optimum mix of long term & short term off-take

One sixth of portfolio earmarked for merchant power and balance healthy mix of Case I, Case II and
cost plus tariffs

Target additional revenue sources

Key avenues: carbon credits, fly ash sale, renewable energy sector (wind and solar energy), etc

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Thank You