THE TATA POWER COMPANY LIMITED

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THE TATA POWER COMPANY LIMITED The Tata Power Company - An Overview Introduction Led by a powerful vision, Tata Group pioneered the generation of electricity in India. It has now successfully served the Mumbai consumers for over ninety years and has spread its footprints across the nation. Today, Tata Power is countrys largest private player in the sector. It does detailed distribution of Electricity and value added services to more than 1 Million consumers at Delhi. Apart from Mumbai and Delhi, the company has generation capacities in Jojobera, Jharkhand and Karnataka. Tata Power over nine decades has spearheaded sustained growth in electricity generation, transmission and distribution in India. It is credited with several benchmarks and innovations in providing greater value to consumers and reliable supply of electricity. About Tata Group The Tata Group comprises 96 operating companies in seven business sectors: information systems and communications; engineering; materials; services;energy; consumer products; and chemicals. The Group was founded by Jamsetji Tata in the mid 19th century, a period when India had just set out on the road to gaining independence from British rule. Consequently, Jamsetji Tata and those who followed him aligned business opportunities with the objective of nation building. This approach remains enshrined in the Group' ethos s to this day. The Tata Group is one of India' largest and most respected business s conglomerates, with revenues in 2005-06 of $21.9 billion (Rs 967,229 million), the equivalent of about 2.8 per cent of the country' GDP, and a market capitalisation of s $47.5.Tata companies together employ some 202,712 people. Tata Group is present in seven business sectors having a huge gamut of products and services in its basket, almost covering all spheres of economy. The Group' 28 publicly listed enterprises among them s stand out names such as Tata Steel, Tata Consultancy Services, Tata Motors and Tata Tea have a combined market capitalisation that is the highest among Indian business houses in the private sector, and a shareholder base of over 2 million. The Tata Group has operations in more than 54 countries across six continents, and its companies export products and services to 120 nations.

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The Tata family of companies shares a set of five core values: integrity, understanding, excellence, unity and responsibility. These values, which have been part of the Group' s beliefs and convictions from its earliest days, continue to guide and drive the business decisions of Tata companies. The Group and its enterprises have been steadfast and distinctive in their adherence to business ethics and their commitment to corporate social responsibility. This is a legacy that has earned the Group the trust of many millions of stakeholders in a measure few business houses anywhere in the world can match. About Tata Power Company (TPC) A pioneer in the Indian power sector, TPC) is one of Indias largest energy utilities. Started as the Tata Hydroelectric Power Supply Company in 1911, it is an amalgamation of two entities namely Tata Hydroelectric Power Supply Company & Andhra Valley, Power Supply Company. TPC provides services in power generation, distribution and transmission and value added services. Tata Power has an installed power generation capacity of above 2300 Mega Watts, with the Mumbai power business, which has a unique mix of thermal and Hydro Power, generated at the Thermal Power Station, Trombay, and the Hydro Electric Power Stations at Bhira, Bhivpuri and Khopoli, accounting for 1797 MW. Its diverse generation capability facilitates the company in producing low cost energy, thereby giving its consumers a greater value for money. It has also undertaken projects in power plant/utility operations and management in Saudi Arabia, Liberia, Kuwait, Iran, UAE, Malaysia, Sierra Leone and Algeria. Areas of business TPC has marked presence in all three aspect of power business, namely _ Generation, _ Transmission and _ Distribution. _ Value-added services in Broad-Band Band Width services, EPC Services. Subsidiaries Subsidiaries/Joint Ventures /TPC has the following Subsidiaries/Joint Ventures to additionally support its growth plan North Delhi Power Limited The Strategic Electronics Division Tata Power Trading Company PowerLinks Transmission Limited

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Generation Tata Power Company with the installed capacity of 2203 MW is the largest private generating utility in the country country. While its adding capacity of about 3000 MW coal based, it has recently bagged the Ultra Mega 4000 MW capacity project through International competitive bidding. Running Generation capacity break break-up Thermal 1,739 - Trombay (Mumbai) 1350 - Jojobera (Jharkhand) 308 - Belgaum (Karnataka) 81

Hydel : 448 MW - Bhivpuri, Bhira, Khopoli (Maharashtra) 448 Wind Farm : 78.65 MW Ahmednagar (Maharashtra) 17 MW Khandake (Maharashtra) 50.4 MW Bramanwel (Maharashtra) 11.25 MW

Total 2,266 MW It has the distinction of having the lowest T&D losses in India of 2.4% with Plant availability of 94% with unique islanding system ensures uninterrupted power to Mumbai during grid disturbance. The Company embraces the latest state of the art technology and environment friendly with Latest technology to reduce emissions (e.g., Fly Ash Aggregator, Flue Gas De-sulphurisation etc.) and the plant is among the lowest SO2 emissions in the world Transmission

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Tata Power has been effectively managing its transmission system in Mumbai since long which is truly manifested in the good quality and power availability that Mumbai has witnessed all these years. TPC has also marked its presence in the field of Transmission outside Mumbai through its subsidiary Powerlink Transmission Ltd., wherein TPC is the majority equity shareholder with 51% of stake in the countrys first independent transmission project Power Links Transmission, in Joint Venture (JV) with the Power Grid Corporation of India on BOOT basis to evacuate power from Tala Hydro Electric Power Project (in Bhutan) and surplus power from North - Eastern region and wheel to power starved Northern region. It covers a geographical span from Siliguri to Mandaula which is about 1200 Km. It is the longest power transmission corridor from Eastern India to Northern India and has since been commissioned in August 2006. Leading multi lateral funding agencies like IFC and ADB are a part of this prestigious project. Distribution TPC has been supplying power to the city of Mumbai par excellence since its inception. The Company also supplies power directly to such bulk consumers as Central and Western Railways, Mumbai Port, refineries, textile mills, fertilizer factories, BARC, Municipal Corporation water pumping plants and other major continuous processes industries requiring uninterrupted power supply. Tata Power has a 935 km HT and LT cable distribution network connecting 17 major receiving stations and over 85 sub-stations in its Mumbai License area.

North Delhi Power Limited North Delhi Power Limited (NDPL), the power distribution arm of Tata Power serves a populace of 50 lakh inhabiting North and North West Delhi. It is a joint venture between Tata Power Company and the Government of NCT of Delhi with the majority stake being held by the Tata Group. The company started operations on July 1, 2002 post the unbundling of erstwhile Delhi Vidyut Board. With a registered consumer base of around 9 lakh and a peak load of around 1100 MW, the companys operations span across an area of 510 sq kms. The overwhelming success that the reform has ushered in NDPL is

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unparallel. All round improvements have been done on consumer service, distribution network augmentation and reliability etc. The unprecedented AT&C Loss Reduction of about 25% in four years has catapulted the benchmark of performance excellence in power distribution in India.

International Projects Leveraging upon its engineering skills and understanding of the power business,Tata Power has carried out several overseas projects and successfully completed erection, testing and commissioning of major power projects in Saudi Arabia, Bangladesh, Kuwait, Algeria, Myanmar and Thailand. The company has also undertaken projects pertaining to power plant / operations management and plant operations training. Apart from the above line of business, TPC also has a Strategic Electronic Division which is pursuing development and production activities for Indian defense sector. Achievements TPC has pioneered many first in the power sector in India. Among its many achievements that Tata Power can proudly boast of following; _ First Hydro Electric power plant in India _ First 500 MW thermal unit in India _ First to commission 245 and145 kV Gas Insulated Switchgear Sub Station _ First Flue Gas De-Sulphurization plant _ First to introduce SCADA and Fibre Optic ground wire communication _ First Pumped Storage Hydel Plant in India _ Successful Delhi distribution in public-private partnership with Govt. of Delhi _ First public-private partnership in transmission line with Power grid

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Awards & Recognition Amongst the various recognition that has been conferred on TPC, a few of them are as follows CII EXIM Bank Award 2005-Certificate for Strong Commitment to Excel for TPC & NDPL Energy Efficient Unit Award at the National Award for Excellence in Energy Management 2005 for T&D divisions conducted by CII. Jojobera has been declared as the winner of Golden Peacock Special Commendation Certificate for the year 2005 (11 June 2005). Tata Power among the top 13 Best Managed Companies in India by Business Today- AT Kearney (11 March 2005). The 2nd Wartsila-Mantosh Sondhi Award for outstanding contribution to the Indian Power Sector in 2004. Greentech Environment Excellence Award: Platinum to Jojobera Thermal Power Plant, Jharkhand in 2004. Greentech Safety Award: Gold to Trombay Thermal Power Station, Mumbai in 2004. The Power Plant Award, instituted by Electric Power International, to theTrombay Thermal Power Station in 1995. Outstanding Structures of the Year by the American Concrete Institute: Bronze Award to the Trombay Thermal Power Station for the year 1988- 1989. Achievers Award for NDPL for settling 10,000 cases in record time Asian Power Awards for Excellence in Service Enhancement for NDPL Most Admired Organization in the Joint Sector/Private Sector award for NDPL/TPC by Power Line which was given by Mr Sushil Kumar Shinde, Union Minister of Power CII EXIM AWARD for Strong Commitment to Excel for NDPL NDPLs Amity International Award for CSR Intelligent Enterprise Award to NDPL by Indian Express Group for billing system and other consumer friendly IT interventions. Financial Highlights Financials for year 2005-06

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Turnover Rs 4,888 crs (US $ 1051 Mn) PAT Rs 610 crs (US $131 Mn) EPS Rs 29 Dividend 85% Net Worth Rs 4131 crs (US $ 888 Mn) Return on Net Worth 14% Gross Fixed Assets Rs 5928 crs (US $ 1275 Mn) D:E Ratio 0.50

Credit Rating AAA (Crisil) LAA+ (ICRA)

Over the years profit have constantly increased touching Rs.551 crores in the year 2005. EBITDA have shown a CAGR of 8.5% (2001-2005) and in the year 2005 it has touched 1,340 crore. As a testimony to our commitment toward the shareholders, our EPS has shown sustained growth.