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Corporate Presentation October 2009 Contents Slide No. Disclaimer - PDF document

Corporate Presentation October 2009 Contents Slide No. Disclaimer 3 Power Sector 04-07 Power Generation 04 Hydro Power Industry in India 05 Solar Power Industry in India 06 Madhya Pradesh Attractive Investment Destination 07


  1. Corporate Presentation October 2009

  2. Contents Slide No. Disclaimer 3 Power Sector 04-07 Power Generation 04 Hydro Power Industry in India 05 Solar Power Industry in India 06 Madhya Pradesh – Attractive Investment Destination 07 Entegra 08-09 Business Overview 08 Group Shareholding Structure 09 Shree Maheshwar Hydro Power Corporation Limited 10-12 Project Overview 10 Project Details 11 Other Technical Details 12 Project Strengths 13-16 Mitigated Project Risk 17 Dynamic Leadership Team 18 Experienced Management Team 19 2

  3. Disclaimer No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of Entegra Limited (“Company” or “Entegra”), which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments. This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person . This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration therefrom. This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner. 3

  4. Power Generation Deficit Overhang & Inefficiency Entails Massive Investments Installed Capacity (‘000MW) Generation has been leading the reform in the power sector � 250 212 Generation capacity has grown manifold from 1,712 MW in 1950* to � more than 150,000 MW** 200 150 17% of the total power is generated by the private sector � 150 Despite significant installed capacity addition India has a peak � demand deficit of 12%; energy deficit of 11%** 100 66 Peak deficit has been growing year on year and is likely to continue � 50 in the northern and the western region 28 13 5 2 Policy Drivers 0 1950 1960 1970 1980 1990 Present 2012 Enabling policy and regulatory framework in power sector – � Source: Power Sector at a Glance, July 09 CEA Electricity Act, 2003 and Accelerated Power Development and Peak Demand/Supply Deficit Reform Program (APDRP) Government encouraging private investments to realize targets - � 120 20 Dem and ('000 M W) 100% FDI permitted in Generation, Transmission & Distribution 18 Supply ('000 M W) 100 Deficit (RH S) (%) 16 Independent Regulators: Central Electricity Regulatory Commission � 14 for Central PSUs and inter-State issues. Each State has its own 80 Electricity Regulatory Commission 12 60 10 8 40 6 4 20 2 0 0 Source: 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 * Power Development Strategy, Power Ministry Source: Power Sector at a Glance, July 09 CEA ** Power Sector at a Glance – Central Electricity Authority, Planning Wing – July 2009 4

  5. Hydro Power in India Hydro Power – Huge Untapped Opportunity Fuel-wise installed capacity (in MW , July 09) 4120, 3% Hydro Power accounts for 25% of the total installed capacity � 12194, 8% Hydro Power Projects have a longer life and cost of generation is � free from inflationary effects after the initial installation 36348, 25% Higher efficiency (~90%) vs. thermal (~35%) and gas (~50%) � Govt. targets to add 15,627MW in the 11 th Five Year Plan and � 92893, 64% targets to reach potential generation of ~150GW by the 14 th year plan Private sector contributes only 3.5% of existing hydro capacity � Therm al Hydro Other Renewable* Nuclear Given govt. estimate of potential capacity ~150GW there is a huge � * Other Renewable means Wind, Small Hydro & Solar untapped opportunity for the private sector Source: Power Sector at a Glance, July 09 CEA Entegra, Jaiprakash Hydro and NHPC are the three significant listed Opportunity – Hydropower ( in MW) � players operating in India in this space R egion Identified C apacity C apacity R emaining C apacity C omplete/ to be Opportunity U nder developed C ons truction N orthern 53,395 20,490 32,905 62% Western 8,928 6,184 2,744 31% Southern 16,458 10,156 6,302 38% Eastern 10,949 5,260 5,689 52% N orth- Eastern 58,971 3,927 55,044 93% A lll India 148,701 46,017 102,684 69% Source: Hydro Power Policy, 2008, MoP * Source: Power Sector at a Glance, July 09 CEA 5

  6. Solar Power in India � The total installed solar power capacity in India is 2 MW* � Accounts for less than 0.01% of total installed renewable energy capacity Market � Huge untapped potential - ~300 clear sunny days in a year- equivalent to over 5,000 trillion kWh per year* � A target of 50 MW has been set for solar power generation during the Eleventh Five Year Plan* � Drivers: Positive government policies, entry of new players in polysilicon market, abundant solar radiation in India, export demand for solar equipment Drivers & Challenges � Challenges: High unit cost of solar energy, volatility in polysilicon prices, and dependence on raw material imports � Increase in M&A activity in renewable energy sector Emerging � Domestic and international players are moving in solar energy space Trends � Public and private investments have increased in solar energy market � Players include Tata BP Solar, Moser Baer PV Ltd, Reliance Industries, Entegra etc � New players entering the solar space include Suzlon Energy Players � Companies have increased their investments in solar technology and products * Source: Ministry of New and Renewable Energy 6

  7. Madhya Pradesh – Attractive Investment Destination Fuel-wise installed capacity (in MW , Mar 09) � Madhya Pradesh (MP) has nearly 5.5 % of the total installed Project Agency Type Capacity Year capacity of India with 8,274 MW* (MW) Omkareshwar NHDC Hydro 520 2007-08 � ~ 39% of installed capacity in the state is of hydro power (presence Birsinghpur - Ext MPGENCO Coal 500 2007-08 Amarkantak U-5 MPGENCO Coal 210 2008-09 of large river – Narmada)* Satoura Ext U-1,2 MPGENCO Coal 500 2011-12 Maheshwar (SMHPCL) Entegra Hydro 400 2010-11 � Energy deficit of 17% in 2008-09* Sasan UMPP U-1,2 Reliance Coal 1,320 2011-12 � The demand for energy in the State is estimated to increase by 45% Source: MPIDC by the year 2011-12 (Source: MPIDC) Projects lined up for the XIth Plan (2007-2012) � The increasing energy shortages and peak deficit indicates a need for rapid increase in power generation capacity of the State 3224, 39% � Players such as Reliance (4,000MW), Essar (1,000 MW), Jaypee Group (1,000MW) and Entegra (400MW) have already invested in the state 4524, 55% 263, 3% 273, 3% Thermal Nuclear Other Renewable Hydro * Other Renewable means Wind, Small Hydro & Solar * Source: Power Sector at a Glance, July 09 CEA Source: Power Sector at a Glance, July 09 CEA 7

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