bhilwara energy limited (bel) corporate profile october 2014

Bhilwara Energy Limited (BEL)Corporate Profile

October 2014

LNJ Bhilwara Group - Parent

• Established in 1961 by Mr. L. N. Jhunjhunwala, the Group has grown into a conglomerate with a strong global presence and turnover in excess of US$ 1bn

• 6 Group companies listed on the Stock Exchanges• Over 1,000,000 stakeholders in the Group• Production units & corporate offices spread across the country at 38 locations with over 26,000 strong workforce

World’s largest single site plant of Graphite electrodes

Over 200% expansion witnessed over the last decade

Sales: INR14,573mn, EBITDA: INR 1,213mn, Net Worth: INR 7,155 mn for FY14

Specialists in software development and IT manpower outsourcing

Amongst the top 10 healthcare BPOs in India

Sales: INR 570mn, EBITDA: INR 370mn, Net Worth: INR 3660mn for FY14

Largest producer and exporter of polyester/viscose blended yarn

Second highest spindle capacity in India

Sales: INR 45,868 mn, EBITDA: INR 5,881mn, Net Worth: INR 7,493mn for FY14

278MW of operational hydro power portfolio First merchant power plant and independent

IPP with interstate electricity wheeling arrangement

Strategic partnership with AECOM, IFC and Statkraft

Sales: INR 5,753mn, EBITDA: INR 4,136mn, Net Worth: INR 22,586mn for FY14

PowerGraphite Electrodes

Textiles Information Technology & other

LNJ Bhilwara is a well-diversified and highly credible group from India with revenues in excess of US$1bn

40,0

00

47,3

90

53,6

90

61,7

67

66,7

62

0

20,000

40,000

60,000

80,000

2009-10 2010-11 2011-12 2012-13 2013-14

Turnover Export Sales

Gross Fixed Assets Net Worth

Key Financials of LNJ Bhilwara Group

(INR mn)

18,3

90 22,5

20

24,6

30

27,1

01

28,6

42

0

5,000

10,000

15,000

20,000

25,000

30,000

2009-10 2010-11 2011-12 2012-13 2013-14

58,9

60

61,8

00

68,7

30

73,8

52

79,7

41

0

20,000

40,000

60,000

80,000

100,000

2009-10 2010-11 2011-12 2012-13 2013-14

(INR mn)

(INR mn)

30,34

0

34,05

0

36,02

0

39,60

6

40,89

6

0

10,000

20,000

30,000

40,000

50,000

2009-10 2010-11 2011-12 2012-13 2013-14

(INR mn)

Executive Summary

Bhilwara Energy Ltd. (“BEL”) is India’s leading ‘Renewable Energy’ power company– Portfolio of Hydro and Wind energy assets with total rated capacity of 1592 MW

– Execution track record of 2 hydro power plants aggregating to 278 MW and 3 wind power assets of 84 MW

– Attractive return profile through an optimum mix of long-term PPAs and merchant power for its projects

– Strategic partnerships with marquee investors such as Statkraft , AECOM (previously RSW Inc.) and IFC, Washington

– Highly experienced management team in power sector and have previously worked with organisations such as NHPC, NTPC, CWC, BHEL, Suzlon and Jaypee group

Robust pipeline of projects– Wind power asset (20 MW) under commissioning and more than 100 MWs are under evaluation

– One hydro power project (50 MW) in Nepal is ready for immediate construction

– 1 hydro power asset (total 780 MW) under pre-construction

– 3 HEPs (total 430 MW) which are at development stage.

– Building of a portfolio of wind power assets with an operating capacity of 200 MW over the next 3 years

Attractive industry dynamics– India is amongst the lowest per capita consumers of electricity across the world, which is expected to change over the

next few years

– Significant capacity addition is required to reduce the peak power deficit of ~10 to14% in the country

– Unlike thermal power plants, renewable energy assets have minimal cost of operations and provide sustainable cash flows

– The Government of India has undertaken significant policy initiatives to increase private sector investment in the power sector with specific focus on renewable energy through a number of fiscal incentives and supportive regulations

Value Proposition

One of India’s leading diversified renewable energy company with portfolio of hydro and wind power assets under various stages

Marquee partners such as Statkraft, AECOM (previously RSW, Inc.) and IFC, Washington Company follows a strategy of assured off-take arrangements through long-term PPAs combined

with merchant power. The interplay minimizes cash-flow risk while retaining upside potential

Robust pipeline of projects

Plans to install additional 200 MW of wind power assets over the next 3 years Hydro power projects with aggregate capacity of 830 MW to be installed during the course of next

6 years 430 MW of hydro power projects are in the development stage Additional various hydro-electric projects are in planning stages

Highly credible pedigree and strict corporate governance standards

Company is Group’s flagship entity which is a conglomerate with a strong global presence Group is one of India’s most credible & trusted business house with turnover in excess of US$1bn Company has a strong Board with eminent personalities and follows strong corporate governance

standards Experienced and qualified professional team with capabilities of executing complex projects in the

renewable energy segment

Leading renewable energy company in India

Strong execution capabilities

Company has successfully commissioned two HEPs with aggregate capacity of 278 MW and commissioned three wind power asset of 84 MW.

Malana HEP holds the distinction of first hydro IPP and first merchant power producer in the country

Company through its JV company, ICCS, has expertise in power project consultancy with cumulative project experience of over 7000 MW in hydro, thermal projects

Brief Overview

Bhilwara Energy is LNJ Bhilwara group’s flagship entity for the development and operation of renewable energy assets in India

and overseas Company has successfully commissioned 2 run of the river Hydro Power Projects, 3 Wind Power Projects and has a robust

pipeline of renewable energy assets under various stages aggregating to 1,592MW The company has strategic partnership with globally reputed companies and development funds such as Statkraft, AECOM (1)and

IFC (2) Washington

Company Overview

Notes: (1) RSW Inc. was acquired by AECOM, world’s leading design and engineering company, (2) International Finance Corporation

Project portfolio summaryShareholding Pattern

27.56%

58.10%

14.34% Individual Promoters

Promoter Companies

Private Equity

Historical Financials Snapshot

INR mn Mar-10 Mar-11 Mar-12 Mar-13 Mar-14

Aud Aud Aud Aud Aud

Total Income 2,099 2,176 3,119 4,082 4,008

EBITDA 1,813 1,353 2,116 3,062 2,968

EBITDA margin 86% 62% 68% 75% 74%

PAT 981 -788 -368 -277 -674

Net Worth 9,882 11,340 10,916 10,654 10,780

─ India Clean Energy: 7.21%─ IFC(2): 5.04%─ NYLIM/Jacob Ballas: 2.08%

Type StatusNo. of

projects

Aggregate

Capacity (MW)

Hydro Operational 2 278

Wind Operational 3 84

WindUnder

Commissioning 1 20

Hydro Pre-construction 2 830

Hydro Development 3 380

Total 11 1,592

Key Milestones

86 MW Malana HEP commissioned in a record time of 30 months at a cost of INR 38.6mn/MW

JV with Statkraft Norfund Power Invest AS (SN Power) Norway to facilitate technical know-how exchange

192 MW Allain Duhangan (AD Hydro) HEP commissioned in Jul 2010 Ist Phase.

IFC and FE Clean Energy invested US$ 50mn in BEL

IFC, Washington decided to do debt financing and 12% equity investment in 192 MW AD Hydro HEP

First phase of Private Equity investment In BEL worth INR 1,050mn by Wachovia, NYLIM and Jacob Ballas India

Diversifying into wind energy generation with a 49.5 MW wind energy project in Satara, Maharashtra

192 MW AD Hydro becomes fully operational

Wind project in Satara, Maharashtra commissioned

2011

2004

2003

2007

2010

2012

2001

2013

20 MW wind project commissioned in Jaisalmer, Rajasthan

2013

Another 20 MW wind project in Bhendewade, Maharashtra

BEL Structure

Holding Structure

Co-Investors/JV Partners Operating projects Pre-construction projects Development stage projects

Date of Investment` Investor(s) Amount Invested (US$mn) Stake AcquiredProject Level/

Holding Co Level

Mar 2007 IFC 15 12% Project (A D Hydro)

Aug 2007Jacob Ballas, NYLIM India,

Wachovia24 8.5% HoldCo Level

Jan 2010 IFC, FE Clean Energy 50 10.8% HoldCo Level

Jul 2010FE Clean Energy

(Buyout of Wachovia’s stake)11 2.37% HoldCo Level

Marquee Investors

S N Power

Malana 86 MW

AD Hydro 192 MW

Chango Youngthang 180 MWBara Banghal 200 MW

Balephi 50 MW Likhu-IV 50 MWNyam Jang Chu 780 MWICCS

IFC

AECOM Triveni Group (Nepal)49%

12% 88%

51% 51%49% 75%80% 20%20%Nepalese Investor

5%100%

100% 100%

BGEL 49.5 MW

100%

LNJ PV 20 MW

74%

RSWM

26%

100%

BEL 20MW

Marquee International Partnerships

Statkraft

AECOM

IFC

Commercial investor and developer of hydro power projects, operating exclusively in the emerging markets

Entered the Indian power market in 2004 by acquiring 49% stake in Malana Power Company Limited

One of the very few foreign investor in hydro power in India with an objective of becoming a significant IPP in the next few years

World’s leading hydropower engineering consulting company Executed some of the largest hydro projects in the world in

countries such as Canada , Turkey , Argentina, China, India, Pakistan and Peru

Offers world-class services in the areas of civil, mechanical and electrical engineering, hydrology, hydraulics, and structural and geotechnical engineering

Member of the World Bank Group Invested over US$5.35bn in 199 companies in India till date Already invested debt of about US$67mn and equity of about US$15mn (12%

stake) in AD Hydro project Made an equity investment of US$26 mn in BEL ( 5.25%) Invested Debt of US$ 20 mn in wind projects

Snapshot of projects

Project / LocationCapacity

(MW)PLF (%)

BEL ownership

Start Date / CODLicense/BOOT

details (years)

Key Project Highlights

Malana HEP(H.P) 86 45.1 51% Operational 40

Project implemented 30 months ahead of scheduleFirst IPP in the hydro power sectorFirst merchant power producer in India

AD Hydro HEP(H.P) 192 47.7 44.9% Operational 40

IFC, Washington holds 12% equity in the projectSuccessful project execution in spite of challenging geological terrain

Satara Wind (Maharashtra) 49.5 24.8 100% Operational

March, 2012 25Wind assessment studies carried out by reputed international consultants such as S Gurr and AWS Truepower. 30 MW registered for GBI

Dangri Wind

(Rajasthan) 20 20.00 74% Jan’13/Mar’16 25 GL GH & WinDForce had carried out independent study. The project is fully operational.

Bhendewade Wind

(Maharashtra) 14 23.00 100%14 MW op. Mar

201425 GL GH & WinDForce had carried out independent study. The

project is under execution.

Likhu IV(Nepal) 50 50.9 75%

April’15 / Apiri18

27Favorable hydrology and easily accessible project siteOne of the most advanced hydro projects in Nepal. Financial Closer has completed.

Nyamjang Chhu

(Arunachal Pradesh)

780 49.3 100%April ’16 /

April’2140

Average gross generation potential over past 4 years is significantly higher than approved design energy. Project site, power house and barrage are located in well-accessible locations Tender documents for packages under preparation.

Chango Yaungthang

(H.P.)180 47.3 100% Apr’16 / Apr’21 40 DPR under review at CEA

Bara Banghal Phase I (H.P.) 92 (Ph I) 50.4 51%

Apr’17 / Apr’21

(Phase I)40 DPR under review at CEA

Balephi(H.P.) 20 52.0 80% Apr’17/ Apr’20 27 Major approvals and fall-back PPA in place

Will be commenced after the completion of Likhu Project

Bara Banghal Phase II (H.P.)

108 (Ph II) 50.4 51% 40 Approval of the wildlife department awaited

BEL has an attractive portfolio of projects at excellent locations with strong commercial dynamics

Bhilwara Energy Limited

HYDRO ASSETS

Project Type Run-of-the-River HEP

Location Located on Malana river in Dist. Kullu of Himachal Pradesh, India

Installed Capacity 86 MW

COD July 2001

Project Cost INR 3,320 mn

Debt-Equity Ratio 80:20 (2,650:670)

Power Evacuation Through 132 KV DC transmission line, constructed and owned by MPCL

Off-take arrangement 100% merchant power sale agreement since inception

Past Operational Performance

Malana Power Corp.Ltd.(MPCL) – Project Overview

Key Highlights

The project was implemented ahead of schedule in 30 months against the envisaged schedule of 60 months

MPCL is the first Independent Power Producer (IPP) in the hydro-power sector, as well as the first merchant power producer in India

The plant has consistently recorded over 99% availability (PAF)

Running successfully for past 12 years

Year ending March 31, 2009 2010 2011 2012 2013Total Generation (MUs) 360 306 334 376 333 Plant Load Factor (PLF) 47.80% 40.60% 44.30% 49.80% 44.21%Plant Availability 99.90% 99.92% 99.54% 99.92% 99.80%Avg. Tariff Realisation Rs. per unit (INR)PAT ( Rs. MN) 1,274 989 433 246 157Net Worth (Rs. Mn.) 7,673 8,662 9,095 9,341 9,495

6.41 6.63 5.47 3.73 3.62

Project Type Run of River HEP

Location Allain and Duhangan River; near Manali, Himachal Pradesh, India

Installed Capacity 192 MW

COD July 2010 (First Phase) and March, 2012 (Second Phase)

Project Cost INR 20,213 mn

Debt-Equity Ratio 72:28 (14,611:5,602). (Sub Debt 4,638)

Power Evacuation A 220 KV, DC transmission line of approximately 175 km. length , from the power plant to Nalagarh (Himachal Pradesh) substation of PGCIL to evacuate power from power plant to the inter connection point

Off-take arrangement 100% Merchant Power Sale

Past Operational Performance

AD Hydro – Project Overview

Key Highlights Successful project execution displayed Group’s expertise in delivering projects under arduous geological conditions

Dedicated transmission line of 175 kms developed under difficult conditions.

(1) Total generation subject to water flow from Allain side of the project only(2) Duhangan side of the project was commissioned in Feb.2012 and hence water flow was available from Allain side of the project for power generation for major part of the year.

Year ending March 31, 2011 2012 2013Total Generation (MUs) 145 527 681 Plant Load Factor (PLF) N.A 31.26% 40.50%Plant Availability N.A 99.50% 98.89%Avg. Tariff Realisation Rs. per unit (INR)EBITA ( Rs. MN) N.A 1,267 1,962Net Worth (Rs. Mn.) 8,845 8,597 8,339

N.A 3.97 3.67

S.No. Particulars Details1 Project Name Nyam Jang Chu HEP2 SPV NJC Hydro Power Ltd. 3 Project Type Run of River HEP

4 Location

Along Nyam Jang Chu river between Zimithang and Khangteng

in Tawang district, Arunachal Pradesh

5 Ownership 40 years BOOT arrangement 100% equity ownership with BEL

6 Installed Capacity 780(6x130)MW

7 Gross Energy Generation Potential

3365.74 MU as approved by CEA for 90% dependable year

8 Project Cost INR 63,700mn (at 2011 level)9 Debt: Equity Ratio 75:25

10 Free Power12% Free power to GoAP and 1%

free power for Local Area development

11 Current Stage Pre-construction stage

12 Capex So Far INR2000mn (till March, 2014)

13 Financial Closure Complete financial closure expected soon (90% tied up)

14 Construction Start Date April 2017

15 Commercial Operation Date (COD) March 2022

16 Power Evacuation Arrangement

PGCIL to provide grid connectivity at bus bar

17 Power Sale Arrangement 60% - PPA; 40% - Merchant as of now

18 Power Purchase AgreementDiscussions with PTC India Ltd. for long term PPA agreement with West

Bengal in final stages

Nyamjang Chhu – Project Overview

Project particulars Project location

Current Status

BEL and GoAP have entered into a Memorandum of Agreement (MoA) on

May 28, 2009 for setting up of the NJCHEP. The project is awarded on BOOT

basis for a lease period of 40 years from the Commercial Operation Date

(COD) of the project

GoAP will get free power @ 12% of the power generated at the bus bar

All clearances including TEC from CEA and Environmental Clearances from

MoEF are in place.

Final forest clearance & Consent to Establish from State Govt are under

progress.

NOC for 80% of land already obtained

The Project including barrage is accessible through black top road.

Project involves simple 11 m high barrage components 28 km long HRT and

an underground power house.

HRT shall have 8 adits and the critical reach from one face is around 2 km.

All pre-construction investigations and detailed surveys complete.

Work on 2 small hydro project totaling to 10 MW for meeting construction

power requirement are in progress. Civil works for 7.5 MW project are almost

80% complete.

Tender Documents for all civil packages and main E&M package ready.

Arunachal Pradesh

S.No. Particulars Details1 Project Name Likhu IV HEP2 SPV Green Ventures Pvt. Ltd. (GVPL)3 Project Type Run of River HEP

4 Location Along Likhu river, ~150km from Kathmandu

5 OwnershipBOOT arrangement with NEA

upto (11 March 2042)6 Installed Capacity 50 MW with 15% overload capacity

7Gross Energy

Generation Potential293 MU (~66.82% PLF)

8 Free Power2% of gross generation to NEA for the first 15 years and 10% of gross generation thereafter

9 Project Cost INR 6,102 mn

10 Debt: Equity Ratio 70:30

11 Current Stage Pre-construction stage

12 Capex So Far INR 730mn (till March, 2014)

13 Financial ClosureCompleted for 120 MW, the revalidation is in

progress for 50 MW14 Construction Start Date April -16

15Commercial Operation

Date (COD)March -20

16 Power Evacuation 25 km long, double circuit

17Power Sale

ArrangementFixed PPA

18Power Purchase

Agreement

PPA with NEA @5.995 US cent per unit, with an annual escalation of 3.0% p.a. upto 11

times

Likhu IV – Project Overview

Project Particulars Project location

Shareholding pattern

Triveni Group is a diversified business conglomerate based out of Nepal with interests in:– Impex and Trading– Manufacturing of vegetable oils, yarn and cement– Real estate development and tea gardening– Banking and Insurance

Chango Yangthang – 180 MW

Chango Yangthang Hydroelectric Project is contemplated as a run of the river scheme

utilizing the water of Spiti, a tributary of Satluj located near Chango in Spiti Valley,

Distt. Kinnaur of Himachal Pradesh, India

Project Status Letter of Allotment for 140 MW Chango Yangthang HEP received from Govt. of

Himachal Pradesh (GoHP) in 2007 Pre implementation agreement signed with GoHP on April 28,2008. DPR stands examined by CEA and approved in the concurrence meeting held on 30

01 2104. Final TEC letter is awaited. Implementation agreement signed on November 4, 2011 followed by signing of

Supplementary IA on March 28, 2014 for enhanced capacity of 180 MW

Power Evacuation arrangement The 220KV switch yard of Chango Yangthang HEP is located near Leo village. It is proposed to inject the power generated at Chango Yangthang HEP into 220 KV

pooling substation at village Ka-Dogri. 220 KV D/C line from Ka-Dogri to 220 KV/400 KV Jangi Pooling Station will wheel the

power pooled at Ka-Dogri Power off-take arrangement The project is being developed as a merchant power plant - Proposes to sell its power

mainly to consumers in the Northern Region through short-term PPAs Free power royalty will be given to GoHP @ 12% of its generation for the first 12

years from COD, 18% for the next 18 years and 30% for the balance 10 years

Hydrology Annual PLF of the plant is around ~ 47.3%

Dam Site

Power House

Bara Bangahal HEP – 200 MW

Bara Bangahal Hydroelectric project is contemplated as run-of-the-river scheme to

utilise water of Ravi river. The Project is located in Chamba / Kangra Districts of

Himachal Pradesh. The Project is being developed by Malana Power Company Ltd

Project Status Letter of Allotment received from Govt. of HP in 2007 Pre implementation agreement signed with GoHP on April 28, 2008 Due to part of the project located in Dhauladhar Wild Life Sanctuary, the Project is

approved to be developed in two stages. Stage I 92MW (Outside the Sanctuary area) : DPR under preparation for

submission to CEA and HP government Stage II 108 MW : Approval of the National Board of Wildlife under process.

Power Evacuation arrangement As per the power evacuation plan proposed by CEA and HP Govt, apprx.18 km long

transmission line is proposed from switchyard of Bara Bangahal HEP to substation

of downstream Bajoli Holi HEP Combined power from BBHEP, Bajoli Holi and Kuther HEPs will be fed to pooling

station near village Khadamukh through a 35 km long 220 KV transmission line

Power off-take arrangement The project is being developed as a merchant power plant - Proposes to sell its

power mainly to consumers in the Northern Region through short-term PPAs Free power royalty will be given to GoHP @ 12% of its generation for the first 12

years from COD, 18% for the next 18 years and 30% for the balance 10 years

Hydrology Annual PLF of the plant is around 50.1%

Underground Powerhouse

WIND ASSETS

Satara – 50 MW Wind Power Project

Overview

Location Vill. Kukudwad, Dist.Satara, MH

Land 22.8 hectares

Supplier & EPC Contractor ReGen Powertech Pvt. Ltd.

O & M Contractor ReGen Powertech Pvt. Ltd.

Project Capacity 49.5 (33x1.5) MW

Wind Turbine Generator Vensys V-77 (1.50MW)

Project Cost Rs 3,191 mn (Rs 64.46 mn/MW)

Debt: Equity Ratio 70:30

Current Status Commissioned (49.5MW)

Lenders IREDA and IFC

Construction Start Date Nov-11

EPC Contract LSTK signed with Regen Powertech

Power Evacuation With Regen

CDM StatusRegistered with UNFCCC and CERs generated since Oct’ 12

Power Purchase Agreement 13 Year fixed tariff PPA with MSEDCL

Capacity Phasing

Details 30MW 4.5MW 6MW 6MW 3MW

COD Mar’12 May’12 Sep’12 Aug’13 Sep’13

PPA Tariff (Rs./kwh) 5.37 5.67 5.67 5.81 5.81

GBI Registration a a a a aPPA a a a a

Financials

Means of Finance Rs. Mn %

Equity 569 18%

CCDs* 388 12%

Term Loan 2,234 70%

Total Means of Finance 3,191

Financials (Rs. Mn) FY13 FY12

Revenues from Operations 300.2 0.7

Other Income 73.9 -

Total Revenues 371.8 0.7

Expenses 24.1 1.3

EBITDA 350.0 -0.6

Depreciation 174.8 3.4

Finance Cost 150.2 1.0

PBT 25.0 -5.0

PAT 25.0 -5.0

Wind Resource Assessment Studies

WIND ASSETS

Dangri – 20 MW Wind Power Project

Overview Project Data

Financials


Location Dangri; Dist. Jaisalmer, Rajasthan

Land 10 hectares

Supplier & EPC Contractor INOX Wind and Group Cos.

O & M Contractor INOX Wind Infrastructure


Wind Turbine Generator Inox WT2000DF (2.0 MW)

Project Cost Rs 1,173 mn


Current Status Commissioned –Mar 31, 2013

LendersYes Bank (Rs 432.9mn) and IFC (Rs 409.5mn)

Construction Start Date Dec 12

EPC Contract Signed in Dec’ 12

Power Evacuation With INOX

Power Purchase Agreement20 Year PA with RSWM Ltd, under Group Captive Scheme

Project Cost Rs 58.5mn/MW

PLF YTD-FY14 ~ 18 %** (As of Oct 31, 2013)

Gen. YTD- FY14 ~ 18.5 MUs

Tariff (Rs/unit) 5.75- fixed for 20 years

GBI Availability No – As the power is not sold to DISCOM

CDM Status Validation under process


Equity 10.0 1%

CCDs* 317.6 27%

Term Loan 842.4 72%

Total Means of Finance 1,170.0

Shareholding Pattern - Equity Rs. Mn %

Bhilwara Energy Limited 7.4 74%

RSWM Limited 2.6 26%

Total - Equity 10.0

*CCD’s carry a coupon of 14% payable semi-annually and have tenure of 15 years, subscribed by RSWM Limited.

WIND ASSETS

Bhendwade – 14 MW Wind Power Project


Financials


Location Bhendwade, Maharashtra

Supplier & EPC Contractor INOX Wind Ltd




High Wind Season May - September

Project Cost INR 924.50 mn


Current Status 14 MW March 2014

Lenders IREDA

Power Evacuation At 33/132 kV Shirla s/s

Power Purchase Agreement 13 Year PPA MSEDCL @Rs.5.81

Project Cost Rs 65.7 mn / MW

COD 14 MW March 2014,


GBI Registration Eligible

PPA Execution Status Will be after commissioning


Equity 235.42 25%

Term Loan 689.08 75%

Total Means of Finance 924.50 100%

WIND ASSETS

BG WIND POWER – 20 MW


Financials


Location Dangri; Dist. Jaisalmer, Rajasthan

Land 10 hectares (Revenue)

Supplier & EPC Contractor INOX Wind and Group Cos.





Current Status WIP ; SCOD - Mar 31, 2015

Lenders Aditya Birla Finance Ltd (INR 1000 Mn)

Construction Start Date 15-Dec-2014

EPC Contract Signed in Nov’14

Power Evacuation With INOX at 220 KV Akal SS

Power Purchase AgreementTo be signed with Rajasthan State DISCOM for 25 Year under FiT Scheme from COD

Project Cost INR 66.7 mn/MW


GBI Availability Yes @ INR 0.50/ kWh. Max INR 10 Mn/ MW


Equity 333 25%

Term Loan 1000 75%

Total Means of Finance 1333 100%

WIND ASSETS

GL GH WINDFORCE Average15.0%

17.5%

20.0%

22.5%

25.0%

27.5%25.5%

24.1%24.8%

22.7% 22.5% 22.6%

20.1%21.1% 20.6%

P50 P75 P90

Strong Platform & Robust Strategy

Company has developed a well-rounded sound strategy to benefit from immense potential presented by the sector, the results of the strategy are already reflecting in the initial projects

Drivers / Strategy OutcomesPlatform

Geographic diversification

Vendor

Robust sale strategy

Technology

Financing

Strong Management

Preferred project size 20-40 MW , across 10-12 locations

Enables tapping high tariff states, high PLF sub-projects

Helps diversifying the SEB, wind profile risk

Different vendors for the 2 projects, no preferred vendor status

High bargaining power on pricing, contracting, others

Flexibility for FIT, APPC + REC, captive (Group & 3rd Party)

One of the most experienced groups in merchant power

Best-in-class turbine technologies from various vendors

Targeting larger size machines with high PLF potential

One of the strongest financing profile

Higher leverage than market at relatively lower cost of debt

Combined experience of over 50 years in wind sector

Strong financial engineering acumen with the team

Higher than Normal PLF

Execution Excellence

Strong IRRs

Strong Revenue + Cashflow

Projected PLFs of 23%+ (P:75) for all projects

Exceeding the expected PLF in the first two projects

Reduction in project timelines through superior project selection

High quality execution – strong negotiation & contracting skills

Equity IRRs > 18%

Commands one of the lowest cost of capital

Proven ability to raise long term low cost debt

Average PPA price > Rs. 5.75/ kwh, combined with other benefits

Strong WC Mgmt, Minimal impact of SEB financial health

300 MW Base Portfolio

+~50 MW / Annum over

time by internal accruals

WIND ASSETS

THANK YOU

Bhilwara Energy Limited (BEL)

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documents received from the Company without retaining any copies. In making this presentation, the Company undertakes no obligation to provide the recipient with access to any

additional information or to update this presentation or to correct any inaccuracies therein which may become apparent, and reserves the right, without advance notice, to change the

procedure for the sale of the securities of the Company or terminate negotiations at any time prior to the signing of any binding agreement for the sale of the securities of the Company.

This presentation is directed only at, (a) certain persons outside the United Kingdom (in the case of the United States, certain persons who qualify as “qualified institutional buyers” under

Rule 144A of the United States Securities Act of 1933 as amended), (b) persons who have professional experience in matters relating to investments who fall within Article 19(1) of the

Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (the “Order”) or (c) high net worth entities and other persons to whom it may otherwise lawfully be

communicated, falling within Article 49(1) of the Order (all such persons together being referred to as “relevant persons”). This presentation must not be acted on or relied on by persons

who are not relevant persons. Any investment or investment activity to which this presentation relates are available only to relevant persons and will be engaged in only with relevant

persons.

Any prospective purchaser interested in buying the securities of the Company is recommended to seek its own financial advice. The securities of the Company have not been and will not

be registered under the United States Securities Act of 1933, as amended, the securities laws of any state thereof or the securities laws of any other jurisdiction.

Disclaimer