Private Placement Offer Letter Private & Confidential-not for circulation

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NTPC LIMITED (A Government of India Enterprise)

Registered Office and Corporate Office: NTPC Bhawan, Scope Complex, 7, Institutional Area, Lodi Road, New Delhi 110003.

Tel: (011) 24387333 Fax: 91-11- 24361018 ; E-mail: isd@ntpc.co.in;Website: www.ntpc.co.in ; CIN : L40101DL1975GOI007966

THIS IS A PRIVATE PLACEMENT OFFER LETTER ISSUED IN CONFORMITY WITH FORM PAS-4 PRESCRIBED UNDER SECTION 42 AND RULE 14(1) OF COMPANIES (PROSPECTUS AND ALLOTMENT OF SECURITIES) RULES, 2014, THE COMPANIES (SHARE CAPITAL AND DEBENTURE) RULES, 2014, SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE AND LISTING OF DEBT SECURITIES) REGULATIONS, 2008 ISSUED VIDE CIRCULAR NO. LAD-NRO/GN/2008/13/127878 DATED JUNE 06, 2008, AS AMENDED, SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE AND LISTING OF DEBT SECURITIES) (AMENDMENT) REGULATIONS, 2012 ISSUED VIDE CIRCULAR NO. LAD-NRO/GN/2012-13/19/5392 DATED OCTOBER 12, 2012, AS AMENDED, SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE AND LISTING OF DEBT SECURITIES) (AMENDMENT) REGULATIONS, 2014 ISSUED VIDE CIRCULAR NO. LAD-NRO/GN/2013-14/43/207 DATED JANUARY 31, 2014, AS AMENDED AND SUCH OTHER APPLICABLE CIRCULARS ISSUED BY SEBI FROM TIME TO TIME (SEBI DEBT REGULATIONS). (Our Company was incorporated on November 7, 1975 under the Companies Act 1956 as a private limited company under the name, National Thermal Power Corporation Private Limited. The name of our Company was changed to National Thermal Power Corporation Limited on September 30, 1976 consequent upon a notification issued by the Government of India exempting government companies from the use of the word private. On September 30, 1985, our Company was converted from a private limited company into a public limited company. The name of our Company was changed to NTPC Limited and a fresh certificate of incorporation was issued on October 28, 2005.)

PRIVATE PLACEMENT OFFER LETTER FOR PRIVATE PLACEMENT OF 8.18% SECURED, NON-CUMULATIVE, NON-CONVERTIBLE, REDEEMABLE, TAXABLE, BONDS IN THE NATURE OF DEBENTURES (SERIES 58) HAVING FACE VALUE OF RS. 10 LAKH EACH AGGREGATING UPTO RS. 300 CRORE (THE ISSUE). TRUSTEE FOR THE BONDHOLDERS REGISTRAR TO THE ISSUE BANKER TO THE ISSUE

IL&FS TRUST COMPANY LIMITED Registered Office

The IL&FS Financial Centre, Plot C 22, G Block, Bandra Kurla Complex, Bandra (East), Mumbai 400 051 Tel: (+91 22) 2659 3612 Fax: (+91 22) 2653 3297 Email:itclcomplianceofficer@ilfsindia.com

BEETAL Financial & Computer Services (P) Ltd. Registered Office

BEETAL House, 3rd Floor 99,Madangir New Delhi-110062 Tel No: (011) 29961281,282 Fax No. 91-11-29961284 E-Mail:beetalrta@gmail.com

Jawahar Vyapar Bhavan 11th Floor,1, Tolstoy Marg New Delhi-110 001. Tel No: 011-23353115 Fax: 011-23353101

LISTING The Bonds are proposed to be listed on Wholesale Debt Market segment of the National Stock Exchange of India Limited (NSE) and BSE Limited. NSE is proposed to be the Designated Stock Exchange. ARRANGER(S) TO THE ISSUE ICICI BANK LIMITED This Bond issue is being made strictly on a private placement basis. It is not and should not be deemed to constitute an offer to the public in general. It cannot be accepted by any person other than to whom it has been specifically addressed. The contents of this Private Placement Offer Letter are non-transferable and are intended to be used by the parties to whom it is distributed. It is not intended for distribution to any other person and should not be copied / reproduced by the recipient for any purpose whatsoever. The information contained in this document has certain forward looking statements. Actual result may vary materially from those expressed or implied, depending upon economic conditions, government policies and other factors. Any opinion expressed is given in good faith but is subject to change without notice. No liability is accepted whatsoever for any direct or consequential loss arising from the use of this document. NTPC does not undertake to update this Private Placement Offer Letter to reflect subsequent events and thus it should not be relied upon without first confirming the accuracy of such events with NTPC.

mailto:isd@ntpc.co.inhttp://www.ntpc.co.in/mailto:itclcomplianceofficer@ilfsindia.com

Private Placement Offer Letter Private & Confidential-not for circulation

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TABLE OF CONTENTS

I. DEFINITIONS/ABBREVIATIONS ............................................................................................................................. 4

II. DISCLAIMER .......................................................................................................................................................... 6

III. GENERAL INFORMATION.................................................................................................................................. 7

Name and address of the registered and corporate office of the issuer ............................................. 7 Date of Incorporation ........................................................................................................................... 7 Business carried on by the company and its subsidiaries with the details of branches or units ......... 7 Compliance officer and company secretary ....................................................................................... 11 Nodal Officer ...................................................................................................................................... 11 Chief Finance Officer: CFO ................................................................................................................. 11 Trustee for the Bondholders .............................................................................................................. 11 Registrar and Transfer Agent to Issue ................................................................................................ 11 Names and addresses of the credit rating agencies for the Issue...................................................... 11 Names and address of Joint Statutory Auditors ................................................................................. 12

IV. OUR MANAGEMENT ...................................................................................................................................... 12

Details of change in Directors since last three years ......................................................................... 15 V. MANAGEMENT PERCEPTION OF RISK FACTORS ................................................................................................. 19

VI. BRIEF SUMMARY OF THE BUSINESS/ACTIVITIES OF THE ISSUER AND ITS LINE OF BUSINESS ....................... 35

Overview : Business of the Company ................................................................................................. 35 Corporate Structure ........................................................................................................................... 36 Ownership .......................................................................................................................................... 36 Projects profile ................................................................................................................................... 37 Operational Performance................................................................................................................... 38 Capacity expansion............................................................................................................................. 40 Business Strategy ............................................................................................................................... 40 Financial performance of NTPC for last three financial years (Standalone & Consolidated) ............. 44 Profits of the Company before and after making provision for Tax for three financial years ........... 44 Gross Debt: Equity Ratio of the Company on Standalone basis ......................................................... 45

VII. BRIEF HISTORY OF ISSUER SINCE INCORPORATION, DETAILS OF ACTIVITIES INCLUDING ANY REORGANIZATION, RECONSTRUCTION OR AMALGAMATION, CHANGES IN CAPITAL STRUCTURE, (AUTHORIZED, ISSUED AND SUBSCRIBED) AND BORROWINGS .......................................................................................................... 47

Capital structure as on last quarter end ............................................................................................. 50 Equity shares Capital History of the Company ................................................................................... 51 Details of an Acquisition or Amalgamation in the last 1 year ............................................................ 52 Details of any Reorganization or Reconstruction in the last 1 year ................................................... 52 Statement showing Shareholding Pattern ......................................................................................... 52 Top 10 Equity Shareholders ............................................................................................................... 54 Details regarding the Statutory Auditors of the Company ................................................................. 54 Details of change in Statutory Auditors since last three years .......................................................... 55

VIII. FINANCIAL INDEBTEDENESS - DETAILS OF OTHER BORROWINGS (DETAILS OF SECURED & UNSECURED LOAN FACILITIES, NON CONVERTIBLE DEBENTURES (NCDs), PARTICULARS OF DEBT SECURITIES ISSUED FOR CONSIDERATION OTHER THAN CASH OR AT A PREMIUM OR DISCOUNT OR IN PURSUANCE OF AN OPTION, TOP TEN DEBENTURE H