Nuclear Power - India February 2009

Executive Summary SAMPLE Government monopoly in nuclear power generation, mining and plant installation Nuclear power generation cost is highest in comparison to other sources of energy Dependence on foreign sources for uranium fuel supplies Limited role for domestic companies due to lack of expertise Market Issues & Challenges Future Outlook Installed capacity in 2008: X MWe; Accounts for a% of total power capacity Estimated capacity in 2012: Y MWe; Target capacity by 20--: Z GW Government has the sole right to nuclear power generation via A Indo-US nuclear deal and NSG waiver expected to boost nuclear commerce An estimated business potential of USD X-Y bn Targeted capacity is A GW by 20-- Strong opportunities in manufacturing reactors, components as well as related areas such as consulting, engineering & construction etc. C reactors are under construction with a total capacity of B MWe High level of activity with domestic and foreign firms signing or evaluating partnerships Large domestic engineering and infrastructure companies showing active interest E.g U,V,W,X Public sector enterprises also actively pursuing partnerships Large investment outlays being made to capitalize on government’s ambitious plan Activity

Government monopoly in nuclear power generation, mining and plant installation

Nuclear power generation cost is highest in comparison to other sources of energy

Dependence on foreign sources for uranium fuel supplies

Limited role for domestic companies due to lack of expertise

Installed capacity in 2008: X MWe; Accounts for a% of total power capacity

Estimated capacity in 2012: Y MWe; Target capacity by 20--: Z GW

Government has the sole right to nuclear power generation via A

Indo-US nuclear deal and NSG waiver expected to boost nuclear commerce

An estimated business potential of USD X-Y bn

Targeted capacity is A GW by 20--

Strong opportunities in manufacturing reactors, components as well as related areas such as consulting, engineering & construction etc.

C reactors are under construction with a total capacity of B MWe

High level of activity with domestic and foreign firms signing or evaluating partnerships

Large domestic engineering and infrastructure companies showing active interest

E.g U,V,W,X

Public sector enterprises also actively pursuing partnerships

Large investment outlays being made to capitalize on government’s ambitious plan

Market Overview Market Activity Issues & Challenges Government Organizations Future Projects

Market Overview

Market Activity

Issues & Challenges

Government Organizations

Future Projects

Nuclear energy currently accounts for a small share of total power generation with installed capacity of X GW in 2008 The Government has the sole right to nuclear power generation via NPCIL Capacity in 2008 stood at B MW compared to original target of C MW set in the Xth 5-year plan ending in 2007 Nuclear power accounts for a miniscule share of total power generated with the bulk accounted by coal and hydro projects SAMPLE Source: Installed Nuclear Power Capacity Z 2008 a% MWe V 2004 W 2005 X 2006 Y 2007 Regional Distribution of Nuclear Power e% Nuclear f% Coal a% Gas b% Diesel c% Hydro d% RES Share of Total Capacity b% South c% West a% North Overview

The Government has the sole right to nuclear power generation via NPCIL

Capacity in 2008 stood at B MW compared to original target of C MW set in the Xth 5-year plan ending in 2007

Nuclear power accounts for a miniscule share of total power generated with the bulk accounted by coal and hydro projects

The Atomic Energy Commission (AEC) is solely responsible for managing nuclear power in India SAMPLE Atomic Energy Commission (AEC) Nuclear Power Corporation of India Ltd Bhartiya Nabhikiya Vidyut Nigam Ltd Electronics Corporation of India Ltd Uranium Corporation of India Executing projects and operating nuclear power plants for electricity generation Installation of fast reactors Reactor control and implementation Mining and processing of nuclear fuel Atomic Energy Regulatory Board (AERB) Department of Atomic Energy (DAE) Heavy Water Board Production of heavy water used as a moderator and coolant in reactors, operates 6 plants Nuclear Fuel Complex Supply of nuclear fuel bundles and reactor core components Source:

Domestic private players are capitalizing on the growth prospects through large investments and joint ventures SAMPLE Source: Recent Deals (1/2) U: Formed a joint venture, in 20--, with V primarily for manufacturing state-of-the-art power plant equipment in India which is expected to extend to nuclear applications V: It signed an MOU with V to set up a manufacturing facility of heavy forges. The plant is expected to be operational by 20-- Y A JV: Entered into a joint venture with A to focus on nuclear power engineering W Y: It signed an MOU with Y towards providing advisory services to players with regard to investment opportunities available in the market Z B: In Jan 2009, an agreement was signed with B to build its Z nuclear reactors. This would enable C to utilize indigenous capabilities for the construction of nuclear power plants including supply of reactor equipment and systems, valves, electrical & instrumentation products and fabrication of structural, piping and equipment modules for B V plants C: Another agreement was signed with D to manufacture W reactors at their facility in Z, Gujarat X Partnerships and Investments Company

U: Formed a joint venture, in 20--, with V primarily for manufacturing state-of-the-art power plant equipment in India which is expected to extend to nuclear applications

V: It signed an MOU with V to set up a manufacturing facility of heavy forges. The plant is expected to be operational by 20--

A JV: Entered into a joint venture with A to focus on nuclear power engineering

Y: It signed an MOU with Y towards providing advisory services to players with regard to investment opportunities available in the market

B: In Jan 2009, an agreement was signed with B to build its Z nuclear reactors.

This would enable C to utilize indigenous capabilities for the construction of nuclear power plants including supply of reactor equipment and systems, valves, electrical & instrumentation products and fabrication of structural, piping and equipment modules for B V plants

C: Another agreement was signed with D to manufacture W reactors at their facility in Z, Gujarat

Company A SAMPLE Overview Financial Performance Source: 100% 100% a% b% c% d% e% f% Ancillary schemes Modifications in operating stations Kundalam 1&2 New projects Kaiga 3&4 RAPP 5&6 u% v% w% x% y% z% a% Interest Depreciation Profit Fuel charges Heavy water charges Repair & maintenance Other operating expenses Future Outlook Operating the atomic power stations Currently operates U nuclear power plants with a combined capacity of V We with W under construction adding X MWe Emphasis on development of nuclear power technology as an economical source of electrical energy Generated Y bn units of electricity under the 10th Five Year Plan exceeding the target by a% Capital Expenditure (2007-08) Revenue distribution (2007-08) Targeted capacity addition of X MW by 20-- and projected capacity of Y GW by 20-- Construction of B units of C MW PHWRs and U units of V MWe LWRs with option to import ancillary products Developing indigenous capability by initiating manufacturing facilities in partnership with leading industry partners has been initiated X 2005-06 Y 2006-07 Z 2007-08 Profit Total Income Profit INR mn Revenue INR mn

Operating the atomic power stations

Currently operates U nuclear power plants with a combined capacity of V We with W under construction adding X MWe

Emphasis on development of nuclear power technology as an economical source of electrical energy

Generated Y bn units of electricity under the 10th Five Year Plan exceeding the target by a%

Targeted capacity addition of X MW by 20-- and projected capacity of Y GW by 20--

Construction of B units of C MW PHWRs and U units of V MWe LWRs with option to import ancillary products

Developing indigenous capability by initiating manufacturing facilities in partnership with leading industry partners has been initiated

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