Bhilwara Energy Ltd

1. Bhilwara Energy Ltd Corporate Presentation

2. CAUTIONARY STATEMENT AND DISCLAIMER • This document is not and should not be construed to be, directly or indirectly , an offer to sell or the solicitation of an offer to buy any Securities of Bhilwara Energy Ltd. • Certain statements contained in this document constitute “forward looking statements “.Such forward looking statements involve Risks, uncertainties and other factors which may cause the actual results ,performance or achievements of Bhilwara Energy Ltd., to be materially different from any future results ,performance or achievement expressed or implied by such forward looking statements . There can be no assurance that the results and events contemplated by the forward looking statements contained herein will in fact occur.

3. India - Low penetration and underserved market Per Capita Consumption of Electricity Comparison with China • Low penetration providing significant opportunities for future growth Over 400 million people without appropriate access to electricity Large investment required to achieve Govt. target of per capita consumption of 1,000 KWh by 2012 Source: World Energy Outlook, 2006; Human Development Report 2007-08, Source: China Electricity Council, China Power Year Book, Government of India, Ministry of Statistics & Programme Implementation

4. Indian Power Sector Long Term Trends Potentially 3rd largest electricity market globally By 20302 India is 3rd largest economy in PPP terms1 Indian Power Sector characterized by huge energy shortages(3) Estimated to be the fastest growing economy In the world by 20122 Source: (1) World Bank; (2) International Energy Outlook 2006; (3) Report of Working Group on Power for Eleventh Plan (2007-12)

5. Indian Power Sector: maturity following the right trend Perspective – pre reform period Current – encouraging scenario • Enactment of single unifying Electricity Act 2003 • Notified a National Electricity Policy, National Tariff Policy • Clarity on regulatory set-up POLICY CLARITY • Multiple acts and legislations governing operations of the sector • Ambiguity between role of centre and state • Regulatory powers vested with Government • Generation delicensed • 10,760MW capacity addition proposed by Private Sector during XIth plan • 100% FDI allowed in the power sector INVESTOR ENVIRONMENT • Low attractiveness of power sector • In most cases, competitive bidding for awarding projects AWARD OF PROJECTS • Projects awarded on MoU basis • Private and State sector maturing with participation from many more credible players STAKEHOLDER MATURITY • Number of stakeholders restricted to few PSUs with limited participation from other segments • Mandatory constitution of regulatory commissions – CERCs and SERCs REGULATORY DEVELOPMENTS • Slow progress on regulatory set-up with lack of clarity on key aspects Source: Planning Commission, CEA, Ministry of Power

6. Prospects of Hydropower Generation Initiatives to encourage Hydropower Share of Hydropower in Electricity Generation • Hydroelectric projects - Renewable, non-consumptive and environmentally benign source of energy. • GoI has identified 162 schemes for preliminary feasibility reports under the 50, 000 MW hydroelectric initiative during the 12th plan period (FY 2012 – 17). • Till recently, issues like dearth of adequately investigated projects, long clearance and approval procedures, resettlement and rehabilitation issues, land acquisition problems, power evacuation problems etc. had contributed to the slow pace of hydropower development in the country. However, considering the large hydropower potential in the country and the much required energy security, government is accelerating hydropower reforms. Some of the recent government initiatives in this space include • Preparation of a shelf of well- investigated projects and streamlining of statutory clearances and approvals for the same. • Establishment of independent regulatory commissions’ • - Providing for long-term financing for projects, • Govt. of India is also cooperating with Bhutan and Nepal in hydropower development for over a decade now. Indian companies are setting up hydropower plants in these countries as both Bhutan and Nepal have huge potential of hydropower generation. • Evacuation from North Eastern region and Nepal • North East India as well as Nepal have huge potential of hydropower generation. • North East India is already connected to Northern, Western and Eastern Grid. PGCIL is further strengthening the capacity to ensure that evacuation is not a constraint once the planned power plants in North East are commissioned. • To encourage setting up of hydroelectric plants in Nepal and attract private investment, Govt. of Nepal has set up a JV with ILFS to develop four 220 kv double circuit lines from Nepal to India. Source: IEA - Key World Energy Statistics 2006, CEA. Vast untapped Hydropower potential in India Note: Data as on December 1, 2006 - excludes schemes below 3 MW upto March 2003 and upto 25 MW thereafter.

7. Huge opportunity for private sector participation Failure to meet capacity addition targets has aggravated the demand and supply gap(2) Significant additional capacity requirement (in GW)1 Widening demand supply gap Huge opportunity for private sector participation Inability of Centre/ State to meet capacity addition Power sector reforms Source:(1) Source: IEP, Expert Committee on Power, based on existing installed capacity of 135GW in India (2) White Paper on Strategy for Eleventh Plan, CEA

8. LNJ Bhilwara Group’s foray into the Power Business • Formation of a Joint Venture with RSW Canada, specialist in hydropower generation and power transmission • Has experience of working on hydropower projects across the globe with total capacity of over 55,000 MW. • Commissioned 86 MW Malana HEP in a record time of 30 months at a cost of Rs. 38.6 million/ MW. • Implementation Agreement for 192 MW Allain Duhangan HEP signed with the Government of HP. • Formation of a Joint Venture with Statkraft Norfund Power Invest AS (SN Power) Norway effective through MPCL • To facilitate exchange of technical knowledge and hydropower generation expertise. 2001 2004 1995 2003 1997 2007 • Large hydro power generation portfolio under development. • International Finance Corporation, Washington decided to do debt financing as well as equity investment in 192 MW Allain Duhangan HEP. • Commissioned 13.5 MW captive HEP at Tawa (Madhya Pradesh) in a record time of 23 months at cost of less than Rs. 700 million. • One of the first private sector players to set up hydropower plant of this size & type in the country. Group has been one of the early players in the Power Sector => strong sector knowledge at the strategic as well as operational level within the Group

9. LNJ Bhilwara Group’s foray into Power Business-Contd • Successful and timely completion of 13.5 MW Captive Hydro-electric Project (HEP) in 1997 was the stepping stone for the Group in the Power Sector. • In 1999, Group started construction of 86 MW Malana HEP and it was completed in a record time of 30 months. It is being operated as merchant power plant since its commissioning in July 2001. • Malana HEP showcased Group’s capability and efficiency in execution of Power Projects in timely and cost effective manner • First merchant power plant in the country • First IPP with inter-state wheeling of Power • One of the few IPPs with a 100% promoter’s equity • After Malana HEP, the Group has started developing other power projects. Presently Allain Duhangan HEP is under construction and is expected to be commissioned by June 2009. • Indo Canadian Consultancy Services Ltd (ICCS), an engineering consultancy firm, has contributed to the success of group’s initiative in the Power sector by virtue of its expertise and extensive experience in the field of hydro plants engineering. Group has been one of the early players in the Power sector => Strong knowledge of the Power Sector at the strategic as well as operational level within the Group

10. ICCS - Distinctive experience in Hydro Power Consultancy • ICCS is an Engineering consultancy company, set up in 1995 by the Group in collaboration with RSW International, Canada for providing consultancy to power projects. • RSW International Inc (RSW) is a Canadian Engineering Consulting firm specializing in hydroelectric power generation projects and power transmission systems. It was founded in 1970 by a group of senior engineers drawn from large Canadian Consulting Organizations and public utilities. • ICCS made a modest beginning in 1995 and presently employs experts with extensive experience especially in the field of hydro power plants for major, medium, mini and micro hydel schemes. • ICCS has a professional strength of over 125 technicians and it specializing in the hydro electric projects and transmission systems. • It has to its credit in the field of consulting, successful execution of more than 50 hydro projects with total capacity of more than 2500 MW. Valuable experience of ICCS, in-house engineering consulting firm, across Hydro Power sector

11. Bhilwara Energy Limited Malana Power Co. Ltd Malana HEP(86 MW) Bara Bangal HEP (200 MW) SN Power, Norway 51% 49% 88% AD Hydro Power Limited Allain Duhangan HEP (192 MW) IFC Washington 12% RSW International, Canada ICCS Hydropower Engineering Consultancy Firm 51% 49% Other hydropower projects under development of total capacity ~ 2239 MW Bhilwara Energy Limited: An Overview • BEL – LNJ Bhilwara Group’s flagship entity to develop and operate power assets in India and overseas. • Major focus on Hydro Power Development • BEL recently entered into JV with Glitnir Bank Iceland for the development and operation of geothermal energy in India & Nepal. • Proposed foray into green power - Actively looking at geothermal and solar energy options. Proposed Proposed 91.5% ownership of BEL with promoters and group companies with remaining 8.5% held by New York Life Investment Management India Fund, Jacob Ballas Capital India Pvt. Ltd. and WIH Holdings.

12. Bhilwara Energy Ltd.–Leveraging on Hydro Power Sector potential • Bhilwara Energy is currently operating 86 MW Hydro Power Plant in and implementing another 192 MW Hydro Power Plant in Himachal Pradesh through its subsidiary Malana Power Company Ltd. • Bhilwara Energy has also bagged/ acquired license's to develop hydro power plant’s in the state of Punjab, Arunachal Pradesh and in Nepal. All these projects are at various stages of pre-implementation. The Company also intends to participate in various bids being invited by the state Govt. agencies in Hydro Power Sector. • Bhilwara Energy intends to achieve the installed capacity over 2700 MW by 2014. • Bhilwara Energy Ltd. is considering financing options for these projects ,including the issuance of Equity and the incurrence of Debt.