Presentation on PTC

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10th Power India Forum - CEOs Forum on New
Initiatives in Generation 11th September 2007
by Arun Bhalla Executive Vice President PTC
India
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Key Indicators

• Indias high growth rate since 2003 represents a
  structural increase rather
• than simply a cyclical pattern.
• Indias potential for sustainable growth rate is
  expected at 8 till 2020.
• Energy prime mover to economic growth and
  overall development.
• Energy security, energy cost, demand-supply
  mismatch, energy consumption levels, energy
  intensity, reliability, climate change issues are
  among the major concerns today.
• Addressing these concerns hinges on generating
  power through through cost- effective, clean and
  safe forms of energy, in a technically efficient,
  economically viable and environmentally
  sustainable manner.

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MISSION 2012

• Electricity on demand.
• Energy and Peaking shortages to be overcome and
  spinning reserves (5)
• to be available.
• Per capita availability of 1000 KwH and minimum
  lifeline consumption
• of 1 unit/household/day.
• Supply of reliable and quality power at
  reasonable rates.
• Financial turnaround and commercial viability of
  Electricity Sector.
• Rural Electrification.

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Steps initiated

• Large power projects including Ultra Mega Power
  Projects.
• Thrust on Hydro Power development.
• Merchant Power Plant schemes.
• Captive Power Plants and Group Captive schemes.
• Enhanced thrust on New/Renewable sources.
• Integrated Energy Policy.
• National Power Management Board.

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Concerns

• Level of investments from Private Developers.
• Differential tax duty structure.
• Competitive bidding for procurement of power.
• Fear of overcharging by Merchant Plants.
• Concentration of generation near fuel supply
  source.
• Unutilized existing capacities..

Contd
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Concerns

• Environmental concerns.
• Declining Hydro/Thermal mix.
• ATC losses.
• Transmission Constraints.
• Non implementation of EA-2003 provision in
  letter and spirit.
• Thinning of Managerial and Technical expertise

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Way Forward

• Rationalizing of tax duty structures for Large
  and Small projects
• Open Access in Distribution and Transmission on
  ground level.
• Implementation of RPS and 3rd party sale of
  RE power.
• Developing new equipment suppliers and EPC
  contractors.
• Incentivising Private participation by ensuring
  level playing field
• and conducive policies.
• Unlocking the unutilized existing capacities by
  prioritizing fuel linkages and facilitating trade.

Contd
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Way Forward (contd)

• Technology upgradation and investment in RD,
  RM.
• Training HRD.
• Decentralized Generation - A parallel strategy to
  deal with gestation and transmission constraints
• Energy Management Supply / Demand Side
  Management
• Preparing roadmap for Nuclear power generation.

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PTC Value Proposition

• Intermediary
• Develop a market for short term surpluses in
  power.
• Promote development of long term capacity.
• Promote development of power from R.E. sources.
• Risk mitigator, offers payment security
  mechanism.
• Advisory Service Provider
• Market structures, financing and risk management
  options.
• Project developers ancillary requirements.
• Energy consumers ancillary requirements.
• Equity Participation
• Promoting CPP/GCPP through equity participation.
• Credit Enhancement.

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Thank You! Visit us at www.ptcindia.com
Statements in this presentation represent
personal and not the companys view.