Reigniting Private Sector Interest

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• Re-igniting Private Sector Interest
• In
• Developing Country Electricity Sector
• Workshops on Electricity Sector Reforms Private
  Participation
• Experiences, Lessons and Outlook

Anil Kr. Sardana Chief Executive Officer North
Delhi Power Limited, New Delhi, India
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• Presentation Outline
• Brief Overview of TATA Power/Group
• Brief Overview of NDPL
• Road Map of Indian Power Sector Issues of
  Reforms
• Opportunities for Investment Growth
• Risk Mitigation

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Brief Profile of TPC
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TATA Power -Company Snapshot
Telecom
Energy
Power
Broadband
Generation
Transmission
Tata Petrodyne
Mumbai city MumbaiPune fibre optic network
Distribution
Tata Teleservices (TTSL)

• sale of 0.4 Mio. Barrels of Oil 2500 MMCF of
  Gas
• Revenues of Rs. 795 Mio. and PBT of Rs. 270 Mio.

Mumbai
Mumbai
1,200 kms. of FOP network
Mumbai
1. Licenses for basic telecom services in six
states of Gujarat, A.P., Delhi, Tamil Nadu,
Karanataka Maharashtra. 2.O.2 Mio. Fixed Line
0.15 Mio. Mobile Connections
1,797 MW
1200 Ckt. kms. 220 KV and 110 KV
13 Rec. Distn Stations, 300 Cons. Sub-stations
and 1000 Kms. of HT / LT Cable Network.
Independent Power Generation (IPP)
Tala Project
North Delhi Power Ltd. (NDPL)
Tata Teleservices Maharashtra Limited
81.3 MW
1,150 km 400 kV
0.8 mm consumers 850 MW Load 6000 MUs Energy
Distd. 2600 Ckt. Kms. of Network
Captive Power Generation (CPP)

• Acquisition of existing operational network of
  Hughes Tele.
• About 0.2 Mio. Fixed Line Phones

Panatone Finvest (45 stake inVSNL)
382.5 MW
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Brief Profile of NDPL
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North Delhi Power Limited (NDPL)Profile
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NDPL Key Goals
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Opportunities for Investment Growth
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Driving Factors for Reforms

• The demand for power is increasing and so is the
  gap between demand supply
• To achieve a GDP target of 8, power sector has
  to grow by a rate of 10
• Only Reforms can bring the financial viability
  and hence the augmentation of capacity.
• Abundance of fuel resources Hydro, Coal, Gas
• Political awareness and realization

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Electricity Act 2003 Opportunities in Indian
Power Sector

• Consumers allowed to source electricity directly
  from generating station.
• No License for generation /distribution in
  Forward Rural Areas-Opportunities for Distributed
  Generation
• Third party sale through Open Access
• Freedom for setting up Captive Power Plant
• Antitheft Legislation
• Concept of Distributing Electricity through
  Franchisee
• Other businesses including JVs, Associations etc.

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Current Losses Revenue Gap
.. Severe Tariff Shocks to reduce the Gap -
Unsustainable
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Distribution Reforms
Need for Government Support During Transition
Phase for Sustainable Reforms
Without reforms perpetual drain on Govt.
resources
With reforms Limited Support as back ended loan
during transition period.
Transition Period
. Reforms to release Govt. funds for priority
sectors
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Indian Power Sector Reforms Risk Mitigation
Issues
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Indian Power Sector Reforms Risk Mitigation
Issues
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Way Forward .

• Congenial environment for private investors.
• Lower amount of investment needed due to open
  access.
• Lot of risks are mitigated (Power Off take and
  Returns) Distribution along-with Generation.
• Competitiveness will bring improvement in quality
  and reliability of power supply.
• Consumer Demands would lead to Efficiency thus
  Satisfaction.

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Thank You For Patient HearingAnd Looking
Forward For Interactions