PTC India Financial Services Limited

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Corporate PresentationCorporate Presentation3131stst March 2009 March 2009

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PFS - It’s Genesis & GrowthPFS - It’s Genesis & Growth

• PTC India Ltd (PTC) was setup in 1999 as an initiative of Government of India (GoI), to establish power market in India and as well as to act as a credit mitigating agency for Indian power projects from the private sector.

• PTC conceptualized and developed the trading of short term power market in India.

• After having established itself in the short term market, PTC started entering into long term Power Purchase Agreements (PPAs) with IPPs and to sell electricity being generated to various utilities through long term back to back Power Sale Agreements (PSAs) leaving some capacity merchant for sale in short term.

• PTC’s portfolio size has grown more than 12000 MW of PPAs and about 33,000MW of MoUs for power purchase. With changes in the dynamics of the energy sector, there are huge investment opportunities for PTC to act as a integrated energy player.

• Accordingly, PTC formed financial services subsidiary, as an investment special purpose vehicle with the mandate to provide financial services in the entire energy value chain.

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PTC India Financial Services Ltd (PFS), was incorporated under the Companies Act 1956 and registered with Reserve Bank of India as a non deposit taking Non Banking Financial Company.

Authorized share capital of PFS is USD125 Million with the paid up capital of USD 125 Million.

PTC holds 77.60% of the equity stake and Goldman Sachs and Macquarie Group holds 11.20% equity stake each.

In about a years time, PFS has committed equity investment upto USD 123 Million with disbursement of USD 41.5 Million. PFS has also committed debt assistance to projects to tune of approx USD 59 Million with disbursement of USD 4.2 Million.

About 10 projects are currently in pipeline at various stages

*1USD=Rs 48

PFS - It’s Genesis & Growth……PFS - It’s Genesis & Growth……contd.contd.

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PFS – Its Vision and MissionPFS – Its Vision and Mission

Vision: Be the most preferred financial services partner in the entire energy value chain.

Mission: To partner and forge strong relationships with credible stakeholders to provide complete financial services for all links in the energy value chain.

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Investments in Energy Value Chain: PFSInvestments in Energy Value Chain: PFS

Scope of business activities

Invest in Greenfield projects, Brownfield

projects and provide expansion capital on an

ongoing basis

To the companies engaged in

identified target sectors

Investment in identified projects

Power Exchange

Tolling projects

Biomass projects

Wind project

Coal Projects

Investment in cross border

transmission link

Term Financing

Financial solutions and advisory

Strategic financial partnership in PTC India Financial Services to bring in: Fund management best practices Strong relationship with global investors

To provide Investment and Financing solutions for the broader Energy Value Chain

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Stakeholders of PFS – Strong LineageStakeholders of PFS – Strong Lineage• PTC India Limited:

– PTC started as leading provider of power trading solutions in India. Its primary objective is to develop a commercially vibrant power market in the country.

– In its endeavor to provide holistic services that address the sustainability of the power market model, PTC has diversified its operations by providing advisory services across the energy value chain, entering into the long term PPA with the various power utilities and generators, providing equity support to the projects in the energy value chain, entering and providing fuel linkages to power utilities and generators participating in the power market and development of power projects through JVs.

– GoI owned power sector undertakings NTPC, NHPC, PFC and POWERGRID collectively holds 20.4% stake in PTC.

– PTC has net worth of USD 309 Million and continuous to be leading power trader in the country with market share of about 50%.

• Goldman Sachs: – GS is a leading global investment banking, securities and investment management firm headquartered in

New York, United States with assets under management amounting to ~US$868 billion and total assets of US$ 1,119 billion as on 31 March 2008.

• Macquarie Group:

– The Macquarie group is a diversified international provider of banking, financial, advisory and investment services, headquartered in Sydney, Australia. Macquarie is a global leader in infrastructure investments and has been an established infrastructure owner and operator for over 13 years. Macquarie manages 31 infrastructure funds world-wide that hold over 100 infrastructure assets. As on 31 March 2008, the Macquarie Group had total assets of ~US $ 167 billion with a further US $ 232 billion in assets under management.

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Board of DirectorsBoard of Directors

Name Years of Experience

1. Mr. T. N. Thakur - CMD 31

2. Dr. Ashok Haldia 27

3. Mr. Deepak Amitabh 23

4. Mr. Shashi Shekhar 27

5. Mr. P. Abraham 31

6. Mr. Kelvin Flynn, Nominee Director of GS Strategic Investments Ltd

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7. Mr. Neil Kant Arora , Nominee Director of Macquarie India Holdings Ltd

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Portfolio Investment of PFSPortfolio Investment of PFS PFS since its inception in 2007, has committed investments in equity of various projects in the energy value chain, some of these projects are:

Renewable Energy Investments 26% equity in a 10 MW biomass power project in Maharashtra. The project will primarily use rice husk as raw material and was commissioned on 17th Feb 2009.

37% equity in a wind cum bio diesel 100 MW project in Maharashtra- The project is presently the largest wind farm in the country to be set up in single location. The entire land for the project is acquired and financing is in place. The project is expected to be commissioned by mid 2009.

Upto 26% equity in an SPV, which will undertake around 500 MW of biomass and renewable energy projects. This SPV will scout for investment opportunities across the country and around 50 MW of projects are already identified.

37% equity stake in 3 MW solar power project in Haryana. The entire land of the project has been identified and MoU has been signed with HAREDA for implementation of 3 MW Solar PV project in Haryana.

49% equity stake in a company which will manufacture raw materials for solar industry: Crystalline and amorphous silicon based thin film, solar power modules having the capacity of 500 MT each for polysilicon and silane; in state of Hyderabad

26% equity in a 12 MW biomass power project in Haryana. The project will primarily use crop residue as raw material and is expected to be commissioned by 2010.

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Conventional Sector Investments 26% equity in 189 MW imported coal based power project in Tamilnadu - The project is a merchant power plant and has three units of 63

MW each. The first phase of 2x 63 MW is expected to be commissioned by January 2009 and the second phase of 63 MW by May 2009.

26% equity in the first phase of 270 MW imported coal based power project in Andhra Pradesh - This is the first of its kind of tolling project in the country in which PTC India Ltd will be supplying coal to the project and will purchase the power by paying conversion charges. The project is expected to be commissioned in 2010.

Equity in stage I of 2*660 MW thermal based power project in Andhra Pradesh. 70% of coal required for the project has got the linkage by Ministry of Coal, GOI. The project is expected to be commissioned in 2012

India’s First Power Exchange – PFS is one of the promoters of the India’s first power exchange viz. Indian Energy Exchange and holds 26% equity in it.

Portfolio Investment of PFS…..Portfolio Investment of PFS…..contd.contd.

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Portfolio Investment of PFS…..Portfolio Investment of PFS…..contd.contd. Debt Assistance

to 350 MW Coal based power plant in Chhattisgarh.

to 24 MW Baggase based co-gen power plant in Karnataka.

to 54 MW Captive power plant of Cement Company in Orissa.

to 10 MW Biomass based power plant in Maharashtra.

to 12 MW Biomass based power plant in Haryana.

to 10 MW Biomass based power plant in Maharashtra.

to 1320 MW Coal based power plant in Haryana

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PFS uniquely positioned in Energy Value PFS uniquely positioned in Energy Value chainchain

• Deep Understanding of Indian Power Sector: – PFS leverages on PTC’s expertise in almost all parts of the energy value chain

with interests in fuel intermediation, power trading and trading with cross border entities and evaluating technical and commercial feasibility of power projects and experience in advising generation companies as well as distribution companies.

• One Stop Service:– PFS is the entry to whole gamut of the entire services that would be required in

energy sector ranging for tying up for the marketing and selling arrangement of the power to fuel intermediation and advisory services under PTC umbrella.

• Customer Focus Approach:– PFS is able to structure the product/ services catering to specific needs of the

project developers depending upon the risk and reward profile at competitive transaction costs and least response time.

• Knowledge Driven Management Team: – PFS’s management team comprises of the professionals from the power and

financial sector, who have in depth knowledge experience and knowledge of their respective area.

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• Enhancement of Project Profile:– The investment made by PFS adds to the valuation of the project (investee

company) by bringing the core competency of its promoter i.e. PTC in off-take and marketing of power, which also assists in tying up the balance funding for the project.

• Long Standing and established Relationship: – PFS has access to key stakeholders and emerging players in the Indian Power

Sector. PFS also has lineage of large available portfolio of PTC's long term power projects with 12,000MW of signed/initiated PPAs and another 30,000MW in the pipeline.

• Diversified Business Operations: – PFS has its target sectors across energy value chain including power generation,

transmission and distribution assets, fuel sources, related infrastructure like gas pipelines, ports, LNG terminals, and equipment manufacturers in power sectors.

PFS uniquely positioned in Energy Value chainPFS uniquely positioned in Energy Value chain

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PFS: Resource Mobilization PlansPFS: Resource Mobilization Plans

In order to meet the growth requirements, PFS is contemplating to mobilize resources in short to medium term through:

External Commercial Borrowings (ECBs)

Launching of Energy Sector focused Equity & Debt Fund

Initial Public Offer

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DisclaimerDisclaimer

• This presentation and the accompanying slides (the “Presentation”), which have been prepared by PTC India Financial Services Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever.

• This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.

• Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to: the performance of the Indian economy and of the economies of various international markets, the performance of the power industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

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