WELCOMES

DISTINGUISHED INVITEES & GUESTS

WELCOMES

DISTINGUISHED INVITEES & GUESTS

April 2006April 2006

2

Corporate vision

Corporate vision:

“A world class integrated power major, powering

India’s growth, with increasing global presence”

Core Values:

BCOMIT

B-Business Ethics

C-Customer Focus

O-Organizational & Professional pride

M-Mutual Respect and Trust

I-Innovation & Speed

T-Total quality for Excellence

3

Company overview

A national generation company, supplying electricity to all major states (28 states)

Installed capacity of 24,249MW, projects spread geographically across the country

Diversified generation portfolio

High capacity utilization of 87.5% for fiscal 2006

Experienced professional management team with proven track record

One of the foremost power generation companies, with comprehensive in-house capabilities in building and operating power projects

4

1975

Total shareholder’s funds of USD10.213 billion as on 31st December 2005.

Total Asset base of USD 15.409 Billion as on 31st December 2005.

NTPC was set up in 1975 with 100% ownership by the Government of India. In the last 30 years, NTPC has grown into the largest power utility in India.

In 1997, Government of India granted NTPC status of “Navratna’ being one of the nine jewels of India, enhancing the powers to the Board of Directors.

NTPC became a listed company with majority Government ownership of 89.5%.

NTPC becomes third Largest by Market Capitalisation of listed companies

Key milestones to market dominance

Stakeholder

Value Creation

Disciplined and focused investments aimed at

maximizing returns; adherence to best practices

Strong Management team, Professional and dedicated

organization

Sound business concept & investment philosophy, High standards of

Corporate Governance

1997 2004

Today, NTPC is the largest power utility in India, accounting for about 20% of India’s

installed capacity

Exchange rate used: 1 USD = 45.07 INR

2005

The company changed its name to NTPC Limited to change its business portfolio and transform itself from a thermal power utility to an integrated power utility.

5

Corporate structure of NTPC group

Subsidiaries

NTPC Vidyut Vyapar Nigam Limited

100%

Pipavav Power Development Co.

Limited

100%

NTPC Electric Supply Co. Limited

100%

NTPC Hydro Limited

100%

Joint ventures

NTPC-SAIL Power Company Pvt. Limited

50%

NTPC Alstom Power Services Pvt. Limited

50%

Bhilai Electric Supply Co. Pvt. Limited

50%

Utility Powertech Limited

50%

NTPC Tamilnadu Energy Co. Limited

50%

PTC India Limited

8%

Ratnagiri Gas & Power Private Ltd

28.33%

6

Key competitive strengths

Dominant market share in India

High off take security

Proximity to fuel sources

High operating and cost efficiency

Strong management team with solid track record

Strong Relation with Government of India

Strong credit ratings

Str

ate

gic

imp

ort

anc

e t

o In

dia

Low Operational Risk Profile

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Market leader and dominant power provider in India

Market leadership – The next largest power utility owns 5.9% of market share in terms of capacity and 7.2% of share in terms of units generated

More than one-fourth of India’s generation with one-fifth capacity

A national level generation company, supplying electricity across the country.

Possesses comprehensive in-house capabilities in building and operating power plants

NTPC has contributed to over 27% of Generating Capacity addition in the country during last 23 years

NTPC's share in total capacity and total generation in India

Generation (All India 617.293 Bus)

NTPC 170.88 BUs(27.7%)

Total capacity (All India 124,237MW)

NTPC 24,249 MW

(19.52%)

Tentative figures as of 31st March 2006

35,781

99,988

24,249

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1982 Mar-06

(MW)

Others NTPC

Installed and generation capacityNTPC’s contribution to total installed

capacity

0

5

10

15

20

25

30

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2006

020406080

100120140160180

Installed Capacity Generation

000' MW bn units

Capacity as on date - 24,249Own - 22,929Taken-over - 1,320

NTPC Generation CAGR 25% Vs All India 6.70%

NTPC Capacity CAGR 20% Vs All India 5.30%

8

NTPC’s nationwide footprint

Owns multi-fuel stations

At multiple locations

NTPC is India’s premier national generating company

In addition, NTPC also manages Badarpur Thermal Power Station (705 MW ) of GOI in Delhi

Source: Company Data

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High off take security [source]

Commercially attractive source of power Average selling price is US 3.4 cents approx. per KWh in fiscal 2005 compared to:

Malaysia Average: US 6.3 cents per KWH Thailand Average: US 7.2 cents per KWH Singapore Average: US 9.4 cents per KWH Philippines Average: US 10.5 cents per KWH

Supply decisions based on commercial principles Allocation of power to customers with ability to pay flexibility to reduce sale to defaulting Customers

Energy sale assured through long-term Power Purchase Agreements (“PPAs”) Off take secure with entire output being contracted Strong payment security mechanism in place 25 years life span for coal supply agreement and 15 years for gas agreements

Realized 100% amounts due from SEBs Since fiscal 2004 New collection mechanism has minimized delays in customer payments One-time settlement of overdue receivables, which were converted into bonds bearing tax-free

interest of 8.5%, and were issued by the respective state government-owners of the defaulted SEUs

Long-term contracts with clients

Source: S&P Report

Exchange rate used: 1 USD = 45.07 INR

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Proximity to fuel sources

Fuel constitutes nearly 70% of total operating costs

Optimal cost and timely availability of fuel is a must

Therefore, proximity to fuel sources is critical

Lower fuel transportation costs

9 of the 13 coal based stations are “pit head” plants

Most gas fired plants located along major gas pipelines

NTPC has fuel linkages tied-up prior to commencement of construction

Furthermore, NTPC has secured fuel sources via allotment of 8 mining blocks

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Leads to high utilisation rates

Unchahar Plant PLF

18.0

92.2

0

20

40

60

80

100

Taken over in 1992 2005

%

Capacity UtilizationCapacity Utilization

Talcher Plant PLF

18.7

79.3

0

20

40

60

80

100

Taken over in 1995 2005

%

Tanda Plant PLF

14.9

86.07

0

20

40

60

80

100

Taken over in 2000 2005

%

Turn Around Ability Turn Around Ability

64.8

81.8

66.4

81.1

68.7

83.6

68.8

84.4

69.9

87.5

70

87.5

0

10

20

30

40

50

60

70

80

90

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Rest of India NTPC

Data for coal based power plants

Source: Ministry of Power Annual Reports, CEA Executive Summary, Planning Commission Annual Report

Operational availability at 91.2% in fiscal ’05Recorded highest ever PLF of 87.5%

Operational availability at 91.2% in fiscal ’05Recorded highest ever PLF of 87.5%

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Operating efficiency

Low cost operations…

4.14.5 4.6

5.1 5.35.6

6.1 6.36.6

7.17.4

0

1

2

3

4

5

6

7

8

94-9

5

95-9

6

96-9

7

97-9

8

98-9

9

99-0

0

00-0

1

01-0

2

02-0

3

03-0

4

04-0

5

MUGeneration per employee

3.4

7.8

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

NTPC Industry Average

Supply price (in US cents per kWh.)

Exchange rate used: 1 USD = 45.07 INR

Source: S&P Report

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Project Implementation … a proven track record

39 3936

59

50

39

0

10

20

30

40

50

60

70

Singrauli (1988) Vindhyachal(1999)

Simhadri (2002)

Talcher - II (2003)

Simhadri (2002) Ramagundam-III (2004)

(No. of Months)

Reducing project completion time

Track record in project implementation and completion

An integrated system for planning, scheduling, monitoring, control of projects and capital costs

Strong in-house engineering strength

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Low Operational Risk Profile

Minimal External Minimal External Risk due to “Pass Risk due to “Pass

Thru” TariffThru” Tariff

Tariff, as determined by CERC, enable complete pass through of changes in fuel cost and foreign exchange to the customer

With the announcement of Tariff Policy in Jan 06 the uncertainty of determinants of Tariff is eliminated

Reduced Tariff Reduced Tariff Collection RiskCollection Risk

Billings secured by Letter of Credit

In case of default, NTPC has access to Central Government’s fund allocation to State

Diversified Diversified Generation Generation

PortfolioPortfolio

Low site risk – generating stations spread across 20 locations in India

Minimal risk of coal unavailability – favourable position of most of its coal based stations at mine mouths

Low Off-take RiskLow Off-take Risk

Long term power purchase agreements with SEB

Energy deficient market and NTPC’s cost competitiveness minimize offtake risk

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Strong Relationship with Government of India

Navratna status has given autonomy in making investment decisions

Facilitated tripartite agreements for one time settlement of outstanding dues and future payment security

Supported new initiatives:

Coal mining

Participation in LNG value chain

Entry into power trading, distribution and hydro power generation

Assigned NTPC the consultant role to modernize and improve several plants across the country

Partnering in GOI Rajiv Gandhi Grameen Vidyutikaran Yojana

Chose NTPC to disseminate technologies to other players in the sector

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Partners in Progress - NTPC’s Contribution to National Reform

NTPC has been identified as expert partner under the ‘Partnership in Excellence’ program taken up by Ministry of Power in conjunction with Central Electricity Authority. This program aims in improving the performance of power stations with lower PLF.

NTPC has been assigned a role of consultant for undertaking Renovation and Modernization of old plants of State Utilities.

NTPC has been appointed as advisor cum consultant for Project Monitoring and quality Assurance and inspection of assigned Accelerated Power Development & Reforms Program projects.

NTPC also provides training to engineers of state electricity boards through its Power Management Institute.

Assigned Rural Electrification work under Rajiv Gandhi Grameen Vidyutikaran Yojana Scheme

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Strong credit ratings

Current credit rating

Standard & Poor’s: BB+ (Stable outlook)

Fitch: BB+ (Stable outlook)

“Standard and Poor’s believes the government of India is likely to offer moderate support to NTPC in the event of a financial crisis, given its important role in a critical economic service.”

“NTPC is largely insulated against a significant loss in revenues in the event of a breakdown in one or two of the generation units, given its generation portfolio of 20 stations spread throughout the country. Furthermore, most of its generating plants have favorable mine-mouth locations, resulting in lower fuel transportation costs, and a lower risk of interruption in fuel supply.”

December 2005

S&P

“The rating reflects NTPC’s strong operating record, its cost competitiveness relative to its domestic peers, and its strong financial profile based on low debt levels and stable cash flows”

“The rating also reflects NTPC’s flagship status as a leading CPSU and its market prominence as the largest generator in India”

January 2005

Fitch

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Snap Shot of growth strategies

Exploit new business

opportunitiesTechnology initiatives

Further enhance fuel security

Maintain sector leadership position

through rapid capacity expansion

Other initiativesPrudent financial

strategies

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Financial Summary

USD MILLIONS

Exchange rate used: 1 USD = 45.07 INR

(1) Revenue = Sales + Other income excluding Provisions written back;

(2) EBITDA = Revenue- Operating Expenses

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4,2164,175

4,994

2002-03 2003-04 2004-05

Revenues & Income

CAGR = 8.8%

Operating revenues

800

1,1671,288

2002-03 2003-04 2004-05

Net income

(Million USD)

(Million USD)

CAGR = 20.4%

Exchange rate used: 1 USD = 45.07 INR

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Financial discipline

Capital structure

Diversified sources of funds

Prudent financial profile - Debt to Net Worth of 0.41:1

Dividend policy

Highest ever dividend for fiscal 2005 @ 24%

Interim dividend for fiscal 2006 @ 20%.

NTPC will continue to balance dividend pay-out and growth to take advantage of country’s deficit power position

Liquidity

Access to large credit lines, both from financial institutions, Banks, Multilateral and Bilateral agencies

Net cash flow of USD 1.12 bln generated from operating activities in FY 2004-05

Leveraging borrowing with a debt-to-equity ratio of 70:30

Exchange rate used: USD = 45.07 INR

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In a nutshell

Dominant market share in India

High off take security

Proximity to fuel sources

High operating and cost efficiency

Strong management team with solid track record

Strong Financial Position

Strong credit ratings

Go

ve

rnm

en

t s

up

po

rt

Strong Relation with Government of India

Industry Dynamics

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India is a very attractive energy market

Demand has consistently outstripped supply in the last few years

Industry dynamics

Global drivers

Energy is an industry essentially driven by GDP and disposable income growth

India’s GDP outlook remains strong with demand for energy expected to rise significantly in the future

Positive supply-demand balance

(Demand expected to outstrip supply)

High potential for growth India - A supply deficit power market

Source: UN Development Program, Human Development Indicators, 2005

Per capita energy consumption in kwh (CY 2002)

569

1,287

1,484

2,183

6,614

11,299

13,456

2,465

India

Egypt

China

Brazil

UK

Australia

USA

World avg.

All figures are in bn units, except where stated otherwiseSource: Annual Report, Ministry of Power, 2002-2003, CEA Executive Summary

7.3%

507

523

546

559

591

467483

498519

548

440

460

480

500

520

540

560

580

600

2001 2002 2003 2004 2005

7.8%

7.5%

8.8%

Availability % Energy DeficitRequirement

7.1%

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Industry dynamics – New initiatives

National Electricity National Electricity PolicyPolicy

Providing policy guidance to Electricity Regulatory Commissions and to Central Electricity Authority (CEA) for preparation of National Electricity Plan

Tariff PolicyTariff Policy Provides guidance to regulatory commission for tariff setting

Competitive Bidding Competitive Bidding ProcessProcess

Guidelines for procurement of electricity through competitive bidding

Appellate TribunalAppellate Tribunal Has been set up to expedite the process of settlement of appeals against the

rulings of regulatory commissions

Rajiv Gandhi Rajiv Gandhi Grameen Grameen

Vidhyutikaran YojanaVidhyutikaran Yojana

For providing electricity to all rural households in five years

Revival of Dabhol Revival of Dabhol Power ProjectPower Project

A joint venture company namely ‘Ratnagiri Gas and Power Private Limited’ with shareholding of NTPC, GAIL, Indian Financial Institutions and Maharashtra State Electricity Board has taken over the assets of the Dabhol Power Project

Launch of Ultra-Mega Launch of Ultra-Mega Power ProjectsPower Projects

Government is facilitating the setting up of ultra-mega power projects with capacity of 4000 MW each

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CONCLUSION

•GOVT HAS PUT IN PLACE LEGAL FRAMEWORK FOR ENABLING POLICIES

•INDIAN ECONOMY IS ON GROWTH PATH

•DEMAND FOR ELECTRICITY IS IMMINENT

•REFORMS STARTED YIELDING RESULTS

•MARKET IS ENORMOUS

•INDIA IS PREFERED DESTINATION FOR INVESTMENT

DISCLAIMER

The information contained in this document relating to projections and estimates are forward looking The information contained in this document relating to projections and estimates are forward looking statements based on existing laws & Regulations. Actual result may vary materially from those statements based on existing laws & Regulations. Actual result may vary materially from those expressed or implied, depending upon economic conditions, government policies and other expressed or implied, depending upon economic conditions, government policies and other incidental factors. Any opinion expressed is given in good faith but is subject to change without incidental factors. Any opinion expressed is given in good faith but is subject to change without notice. No liability is accepted whatsoever for any direct or consequential loss arising from the use notice. No liability is accepted whatsoever for any direct or consequential loss arising from the use of this documents. The Financial figures as reported in Indian rupees have been translated into US of this documents. The Financial figures as reported in Indian rupees have been translated into US Dollars using Reserve Bank of India Reference Rate for US Dollar solely for the purpose of Dollars using Reserve Bank of India Reference Rate for US Dollar solely for the purpose of convenience of the readers. No representation is made that the Indian Rupee amounts have been, convenience of the readers. No representation is made that the Indian Rupee amounts have been, could have been or could be converted into United States Dollars at such a rate or any other rate.could have been or could be converted into United States Dollars at such a rate or any other rate.

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