1. Power Sector - India
March 2009

2. Executive Summary
India has 5th largest electricity generation capacity in the world
Market The installed capacity of India as of July 2008 was X MW
Overview & India is facing acute power deficit with peak power deficit of about x%
Value Chain Power trading is still at nascent stage with merely y% of the power generated traded in 2007-08
Distribution is primarily controlled by state electricity boards (SEBs)
LE
Government policies are aimed at encouraging investment in the sector and increasing the
competition
Government
Policies &
Incentives
MP
Government allows 100% FDI under the automatic approval route in all segments of the industry
(except atomic energy)
A
5-year tax holiday is given for power generating projects
S
Import duty at the confessional rate of x% has been set for import of equipment
Key Trends: Increase in per capita consumption of electricity, Increase in corporate investments,
Increase in FDI, increasing interest shown by PE/VC firms in power sector and surge in captive
Key Trends & production
Challenges
Challenges: Shortage of coal, power loss in transmission and distribution, ageing and improperly
maintained infrastructure
Public sector undertakings like AA Ltd , BB Ltd hold the majority of the total installed capacity
Private players including ABC, XYZ have presence across value chain and making significant
Competition investments in power sector
Foreign players like XY, ZY, AY have entered/planning to enter Indian power market
POWER SECTOR - INDIA.PPT 2

3. • Introduction
• Power Sector – Overview
• Value Chain Analysis
• Government Policies and Initiatives
• Key Trends & Challenges
• Competitive Landscape
• Key Developments
• Appendix
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4. Installed capacity has been increasing continuously to meet the need of
growing economy..
Supply Side Plan-wise Installed Capacity
• India has 5th largest electricity generation capacity in MW
the world 140,000
Z
• Installed capacity of X MW as of July 2008 120,000
Nuclear Renewable Y
100,000
LE
Gas-based X
y% v%
80,000 W
P
z%
Hydel power x%
60,000
w%
M
Plan
Thermal
VII VIII IX X
Demand Side
• Demand for power is growing at x% per annum
• Demand has five key components:
SA Current and projected demand
250,000
MW Energy Required bn units
1,500
Planned Demand Z
Industry, commercial, residential, agriculture, and others
200,000
• Key drivers of increasing demand are growth in: Y 1,000
Household consumption 150,000
X
Electrification of rural areas 100,000
500
Manufacturing growing faster
50,000
Realization of suppressed demand due to load-shedding
• Required investment of ~USD X bn by 2017 0 0
X XI XII
Source:
POWER SECTOR - INDIA.PPT 4

5. Public sector companies or State Electricity Boards (SEB) have
presence across the value chain
Raw
materials
Generators • ------
• ------
Traders
PLE
• ------
Transmission S M
• ------
A
• ------
• ------
Distribution • ------
• ------
End user
Source:
POWER SECTOR - INDIA.PPT 5

6. Public Private Partnership (PPP) model is not witnessing much activity
compared to other sector in infrastructure
PPP Model - Overview
• India has around x projects under the public private Airports Railways
partnerships in infrastructure Energy
z%
• The power sector in India has not witness much PPP y% u%
activity as compared to other sectors Urban Development
x%
LE
Power sector witnessed investments worth USD XX bn
• Government is encouraging PPP model to meet the
P
w% v%
capacity addition target of XY MW in XIth Plan Road
Ports
M
Government plans to promote PPP model in ash utilization,
augmentation of transmission lines and distribution
SATypes of public private partnerships in India
Ultra Mega Power
Distribution Franchisee
Projects (UMPP)
Source:
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7. Key Trends
Increase in per capita
consumption
Increase in captive Increase in domestic
power production investments
Trends
PE firms showing
Increase in FDI
interest in power sector
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8. Challenges
Inability to meet the capacity
Shortage of coal
addition targets
Challenges
Ageing and improperly- Huge power loss in transmission
maintained infrastructure and distribution
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9. Majority of the installed power capacity in India with public sector
undertakings
Public Sector Players
Company Name Generation Transmission Distribution Revenues EBITDA Total Capacity
(FY2007-8) (FY2007-8)
AA Ltd USD – bn USD – bn -- MW
LE
BB Ltd USD – mn USD – mn -- MW
P
CC Ltd USD – bn USD – mn -- MW
M
DD Ltd USD – bn USD – mn
EE Ltd
SA USD – mn USD – mn
• AA Ltd is the sixth largest thermal power producer in the world and India’s largest power producer. It accounts for x%
of the country’s installed capacity. It plans to invest up to USD XX bn by 2012 to transform itself into an integrated
regional energy player and have an installed capacity of over X MW
• BB Ltd plans to increase the power generation capacity to over X MW by 2011–12
• CC Ltd has 5 plants under construction adding X MW by 2012
• DD Ltd is responsible for inter-state transmission of electricity. The company reported revenue of USD X bn in FY2007-
08
• EE Ltd is the Government of India initiated public private partnership, formed for the purpose of trading of power
Source:
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10. Thank you for the attention
The Power Market report is a part of Netscribes’ Power Industry Series.
For more detailed information or customized research requirements please contact:
Natasha Mehta, CFA Subhash Chennuri
Phone: +65 9651 6382 Phone: +91 98190 59664
E-Mail: natasham@netscribes.com E-Mail: subhashr@netscribes.com
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