Transmission and Distribution - Role of Indian Electrical Equipment in the XII Year Plan.

1. Transmission and Distribution - Role of Indian Electrical Equipment in the XII Year Plan. Presentation by: Sterlite Grid Ajay Bhardwaj COO

2. Index • Sterlite Technologies – A Vedanta Group Company. • 2. Transmission Industry in India – Growth Prospects. • 3. Sterlite Technologies Presence in Private Transmission Sector.

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4. STERLITE TECHNOLOGIES A Vedanta Group Company

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7. Transmission Industry In India Growth Prospects

8. Thrust on transmission Sector reflecting in the capacity buildup and planned expenditures for the 12th Plan Snapshot of Transmission Industry Xth Plan registered maximum growth in terms of capacity addition through 400 kV lines (backbone of transmission infrastructure in India) 10th Plan: 2002-07, 11th Plan 2007-12, 12th Plan: 2012-17 Huge thrust on Transmission sector, expected to increase further to USD 40 Bn in 13th Plan Clear thrust on T&D sector reflected in the increasing plan expenditure on T&D Source: CEA, Analyst Reports

9. Huge Investment planned in the Indian transmission space, very attractive growth opportunities High Growth Industry Investment of USD 36 bn is expected in transmission sector over FY13-17 • India has huge power deficits with peak deficits in range of 10.6%* in FY2012 • An expenditure of around USD 247 bn has been planned for the Indian power sector in the 12th five year plan (2013-17) • Of this, about USD 36 Bn Investments planned in the power transmission in 12th five year plan • Open access and power trading will ensure need of greater investment • Significant investment will come from private sector • About ~29% of this investment ~ USD 10.50 Bn anticipated from private sector Source: CEA Source: CEA, Planning Commission Working Committee Report, Analyst Reports *Peak Deficit 1US$= Rs.50

10. Government Policies point to huge thrust to transmission sector Government program to bring down AT&C loss and revamp transmission lines with outlay of USD 10 bn in XI th plan 9 High Capacity Power Transmission Corridors at a CAPEX of USD 12 bn Boost due to open access and power trading Rural electrification Program of Government with outlay of USD 5.6 bn in XI th plan Poised for high growth and offering huge potential for private players Aggressive generation targets coupled with inadequate investments in transmission RGGVY : Rajeev Gandhi Grameen Vidutikaran Yojana (Rural electrification program), R-APDR : Restructured Accelerated Power Development and Reforms Programme, HCPTC- High Capacity Power Transmission Corridors

11. Sterlite Technologies Presence in Private Transmission Sector

12. Map – Sterlite’s Projects CoD by Mar 2013 CoD by Jan 2013 CoD by Mar 2014 CoD by Mar 2014 CoD by Mar 2014 JTCL ENICL CoD by Mar 2014 BDTCL JTCL BDTCL ENICL

13. Sterlite has emerged to be one of the most competitive and competent private sector transmission company • Sterlite has emerged to be one of the top private sector transmission companies in India. The company has already bagged three (3) out of eight (8) IPTC projects with a total value of INR 4000 crores. • The project entails about 2,200 km of transmission lines and 2 sub-stations. • Details of projects executed by Sterlite Technologies • Source: CERC, Adoption of tariffs

14. Engineering & Innovation

15. Value Chain in Grid Business Simplest Business Model within all asset classes of Infrastructure. Acquisition Construction & Financing Operations & Refinancing Pre-Acquisition 1) Opp. identification 2) Liasioning 3) PQ determination • Route optimisation. • Cost estimation • Prebid EPC tie ups • Risk estimation • Financial Modelling • Design Engineering • BOQ optimisation • Contract award • Financial closure • Regulatory work • O&M activities • Re-financing debt

16. Create collaborative eco system among various Stake holders • In order to achieve faster growth,improved productivity & more efficient usage of resources it is essential that a more trusting relationship is built & created among different stake holders. • Between Developers and Regulators. • Between Developers and Planning bodies like CEA & CTU. • Between Developers and EPC Contractor & Suppliers for • transmission sector.

17. Create collaborative eco system among various Stake holders • Collaborative approach in project award and execution. We need to move away from the culture of creating defenses by buyers and sellers to a more cooperative model which reduces the total risk being assessed by buyer and supplier. NGC procurement model is an established example in this regard. • Long term relationship instead of project based tendering in each instance. This will lead to lower cost of procurement for buyer and sellers will have assurance of better planning. • 3) Sellers offering and organizing long term credit. Private sector developer will be looking for cheaper funds and lower involvement of fund and equity. Suppliers can help on this aspect.

18. Create collaborative eco system among various Stake holders • Following the telecom model we need to develop a model where the payment for the goods & services is spread over a longer period involving both construction and operation. • Longer the payment during opex better it will be for developers. • 5) Developers and goods & service providers also need to work closely with planners to bring more innovation solution on board to make the most optimize use of natural resources. • As a private sector developer we want to see a paradigm shift in the way business is done so far.

19. Thank you