Renovation, Modernization and Life Extension service of Power Plant

1. Renovation, Modernization and Life Extension service of Power Plant • Lack of available expertise in Indian market for Scope • Determination of R & M projects Presented By: Sapath Dutta Gupta / GM – BD, Power & Systems TUV SUD South Asia Pvt Ltd, India TÜV SÜD Industry Service slide 1 / Dan Rosca R & M and RLE

2. Topics to discuss R & M and RLE

3. Our heritage: 146 years of business success • 1866 • Establishment of a Mannheim-based steam boiler inspection association by 21 operators and owners of steam boilers, with the objective of protecting man, the environment and property against the risk emanating from a new and largely unknown form of technology • Today • TÜV SÜD continues to pursue a strategy of internationalisation and growth • Expansion of services in ASEAN by acquiring Singapore-based PSB Group • 2006 • 1910 • First vehicle periodic technical inspection (PTI) • 1958 • Development of a Bavaria-wide network of vehicle inspection centres in the late 1950s • Introduction of the “TÜV mark / stamp” in Germany • 1926 • Conglomeration of TÜVs from the southern part of Germany to form TÜV SÜD and the expansion of business operations into Asia • 1990s • 2009 • Launch of Turkey-wide vehicle inspection by TÜVTURK R & M and RLE

4. TÜV SÜD in numbers: Growing from strength to strength 1 one-stop technical solution provider 150 years of experience 800 locations worldwide million Euro in sales revenue 2012 1,820 employees worldwide 18,800 TÜV SÜD R & M and RLE

5. Global expertise. Local experience. Global Headquarters: Munich, Germany Legend: GERMANY INTERNATIONAL Countries with TÜV SÜD offices Euro 1,130 mio10,200 staff Euro 690 mio 8,600 staff Regional headquarters R & M and RLE

6. Technical expertise & broad industry knowledge Testing & product certification Inspection Auditing & system certification Knowledge services Training Chemical, physical, mechanical, electrical and environmental testing and product certification. Product, system, building, plant and infrastructure inspection. Audits system certification in a variety of fields including quality, safety, energy, social compliance and environment. Safety, quality, risk, environmental protection and regulatory advisory. Training in work safety, technical skills, management systems and executive programs. R & M and RLE

7. INDUSTRY: Minimise risks. Optimise results. Chemical, oil & gas Power & energy Manufacturing & industrial machinery • Services for investors, operators and equipment manufacturers of upstream, midstream and downstream installations include: • Quality assurance and control • Periodic inspection • Owners’ engineer • Acceptance checks and tests • Material testing • Auditing • System certification • Training • Services for investors, owners, operators and equipment manufacturers of conventional, nuclear and renewable energy plants include: • Due diligence • Design reviews • Risk management • Owners’ engineer • Construction monitoring • Material testing • Periodic inspection • Regulatory compliance assessment • System certification • Training • Services for components manufacturers, contractors, installation providers, equipment & material manufacturers and operators include: • Component testing • Periodic inspection of equipment • Failure analysis • System certification • Training R & M and RLE

8. CERTIFICATION: Achieve market success Consumer products & retail Healthcare & medical devices Manufacturing & industrial machinery Telecommunications & IT • Services for components manufacturers, contractors, installation providers, equipment & material manufacturers and operators include: • Component testing • Periodic inspection of equipment • Failure analysis • System certification • Training • Services for manufacturers, retailers, buyers and suppliers of electrical & electronics, food, health & beauty, hardlines, softlines, toys & children’s products: • Testing • Auditing • Inspection • Product certification • Knowledge services • System certification • Training • Services for medical device manufacturers and healthcare providers include: • Clinical approvals • Market approvals and certification • Testing • Evaluation • Quality control • System certification • Training • Services for equipment manufacturers and operators of infrastructure equipment and radio frequency wireless equipment include: • Design reviews • Testing • Software escrow • Product certification • System certification • Training R & M and RLE

9. Blue solutions for a sustainable future Energy efficiency Renewable energy • Services for manufacturers, planners, owners and operators of buildings, products and equipment, production plants, power plants, municipalities and regions include: • Energy audits • Energy optimisation • Energy efficiency certification • Testing • Product certification • Compliance evaluation • System certification • Training • Services for investors, manufacturers and operators of biomass, geothermal, hydropower, photovoltaic, solar thermal and wind components and plants include: • Feasibility & bankability assessments • Construction monitoring • Safety and licensing support services • Equipment and component testing and certification • Periodic inspection • Training R & M and RLE

10. Credentials • TÜV SÜD South Asia is accredited by: • Central Electricity Authority (CEA) • Bureau Of Energy Efficiency [BEE : Regulatory Body for Energy Efficiency, Ministry of Power, Govt. of India.] • Gujarat Energy Development Authority [GEDA] • Ministry of New & Renewable Energy [MNRE] • Petroleum Conservation Research Association [PCRA] • Maharashtra Energy Development Authority [MEDA] • Indian Green Building Council ( IGBC ) / Confederation of Indian Industry ( CII ) 19 September 2014

11. Footprint in South Asia TÜV SÜD South Asia is a fully owned subsidiary of TÜV SÜD AG Operating in India since 1995 Extensive network of over 30 offices including 12 labs across India, Bangladesh and Sri Lanka Employee strength of over 1500 Sales revenue of Rs.170 crorein 2013 Over 12000 customers R & M and RLE

12. CPP Competency Hub at TÜV SÜD TÜV SÜD Conventional Power Plant Competence Hub is a complete solution in order to determine the necessary technical, regulatory, jurisdictional and economical viable measures for New Building / In-Service inspection / R & M / LE of Power Plants The Competence Hub has a highly trained and a highly qualified team of Experts, coordinated and managed from Munich, Germany The Competence Hub has a multinational, multicultural and very experienced team of Experts The Competence Hub has an international global approach, with local TÜV SÜD Experts & expertise involved The Competence Hub has an extensive international experience proved by the reference list, with similar jobs completed worldwide R & M and RLE

13. Topic of Presentation Lack of available technical expertise in Indian market for Scope Determination of R & M projects R & M and RLE

14. Owner Operator of Power Plant • Limited agencies to carry out R&M studies competently because of lack of technical expertise. • Lack of internal expertise to evaluate actual condition of equipment and costs for repair / renovation • Cost escalation on account of surprises found during project execution and the difficulty to build them into the contract • Problems of ensuring expected and sustained plant performance after completion of R&M R & M and RLE

15. Bidders • Time gap between study of RLA and actual initiation of R&M bidding process • Uncertainty about the exact scope of work which makes it difficult to estimate the actual work to be undertaken • Unforeseen items / surprises during execution and impact on cost – how to build them into the estimate and how to reduce risk on this account. • Functional Guarantees which form part of the contract are often difficult to achieve owing to lack of clarity on how verification will be carried out. • World Bank requires that the R&M Consultant shall do the energy audit / baseline assessment for the identified thermal power station. R & M and RLE

16. Funding Agencies • Accuracy of the estimated costs • Ensuring a strategy that takes care of unforeseen items / surprises and their impact on project cost and time for execution • Delays in regulatory clearances • Lack of appropriate infrastructure for project execution • Ensuring that the study preceding the preparation of Detailed Project Report reflects actual conditions in the plant • Credit worthiness of the utilities • Material market fluctuations R & M and RLE

17. Regulator The regulator is concerned about the justification of the expenditure on R&M projects and would like to ensure that the investment results in the least additional cost to the public for the power generated after R&M. An objective judgment of the justified expenditure is complicated since it is difficult to establish which portion of the expenditure is based on genuine LE requirements and what is needed to make up for poor O&M practices. R & M and RLE

18. Measurable benefits for the clients R & M and RLE

19. Measurable benefits for the clients Performance assessment as per ASME standard and by using online calibrated inspection instruments. Cost reduction by using a single team of highly qualified Experts Our services add certain value measured by the client in terms of time reduction, cost savings, safety and quality TÜV SÜD Brand Name has a world wide recognition for technical competence, for independence, for impartiality and for reliability of the services provided TÜV SÜD Brand Name is recognized and accepted by Finance sector, by Insurance sector and by Jurisdictional authorities R & M and RLE

20. Advisory services along the capital value chain Investment Operation Feasibility Planning Procurement Construction Commissioning In-service Rehabilitation Decommissioning Refurbishment Decommissioning Owner´s Engineer Technical Advisor Retrofit Management Plant Status Assessment QA / QC TDD Plant Optimization Failure Analysis (RCFA) Compliance Certification In-service Inspection Licensing Consenting Pre-Qualification Claim Management Efficiency Consultancy Tender & Contract Management Performance Tests Noise / Vibration / Emissions Testing Design Review Design Approval Due Diligence (TDD - technical, EDD - environmental) Staff Training / Qualification I

21. Advisory services along the capital value chain Investment Operation Rehabilitation Decommissioning Feasibility Planning Procurement Construction Commissioning In-service Refurbishment Decommissioning Owner´s Engineer Technical Advisor Retrofit Management Plant Status Assessment QA / QC TDD Plant Optimization Failure Analysis (RCFA) Compliance Certification In-service Inspection Pre-Qualification Claim Management Tender & Contract Management Efficiency Consultancy Design Review Design Approval Performance Tests Noise / Vibration / Emissions Testing Due Diligence (TDD - technical, EDD - environmental) Staff Training / Qualification R & M and RLE

22. Solution to overcome the problem for Lack of Technical expertise R & M and RLE

23. Need for standardization The large fleet of 200/210 MW units which are coming up for R&M provides an opportunity to standardize documents for tendering for R&M to ensure acceptable levels of quality and to harmonize the requirements of all the stakeholders to a reasonable level of satisfaction to permit efficient execution of projects in this crucial programme to meet the power needs of India. R & M and RLE

24. Operational Goal The management of a CPP rehabilitation / modernization (R&M) has to monitor the fulfillment of some important operational goals for entire plant, as: • Plant load factor improvement; • Plant heat rate increasing, as well as component individual efficiency; • Plant availability and reliability increasing; • Parts life extension; • Environmental performances improvement. R & M and RLE

25. Energy Efficiency, Condition Assessment & RLA consultancy from a single source Detailed Project Report (DPR) preparation, on which purpose, some studies and evaluations may be necessary, that means: • Performance evaluation tests (PET); • Energy audit (EA) on main CPP parts/systems; • Residual Life Assessment (RLA) on all relevant parts, subjected to mechanical, thermal and chemical stresses; • Condition Assessment (CA) R & M and RLE

26. RLA consultancy & Performance Guarantee from a single source Technical Assistance After DPR elaboration, the project Consultant will assist the customer /owner in preparing as follows: • Preparation of Specification for EPC Contractor selection; • Bid documents and evaluation; • Preparation of Quality Plan; • Procurement supervision; • Erection & Commissioning supervision. • Performance Guarantee R & M and RLE

27. BTG & BOP consultancy for RLA from a single source In case of a general R&M plant consultancy, the scope of works has to cover the following systems : • Boilers and Auxiliaries; • Turbines and their Auxiliaries; • Generators and their Auxiliaries; • Power Transformers (generator, auxiliary units, switch yard); • Balance of Plant (cooling water, compressors, motors, piping, switch gear panels, Hydrogen generation); • Instrumentation & Control (including distributed control system); • Coal & Ash Handling Systems (if the case); • Civil & Structures (RLA, concrete works, machine foundations, steel structures). R & M and RLE

28. Repair Supervision from a single source. A CPP parts/systems repair process has to fulfill the following important Operation & Maintenance (O&M) goals: • Plant availability and reliability increasing; • Parts life extension; • Minimization of maintenance costs; • Inventory optimization; • Environmental performances observance. The parts repair / replacements occur typically during the plant overhauls, as regular scheduled maintenance activities. Repairs due to part damaging (causing unexpected breakdowns) are incidental cases, which will be treated as special interventions. R & M and RLE

29. Project References R & M and RLE

30. TÜV SÜD: References for Fluidized Bed Boilers

31. TÜV SÜD: References for Lignite Fired Power Plants

32. TÜV SÜD: References for Lignite Fired Power Plants

33. Thank you for your attention. September 19, 2014 Sapath Dutta Gupta TÜV SÜD South Asia General Manager - Business Development Industrial Services - Power & Systems TÜV SÜD South Asia Pvt. Ltd. Solitaire, 4th Floor, ITI Road, Aundh,Pune - 411 007, Maharashtra, India. Boardline : +91-020-66841212 Directline : +91-020-66841215 Cell : +91-7767803522Fax            : +91-020-66841261 E-mail        : sapath.duttagupta@tuv-sud.in Website     : www.tuv-sud.in