1. WELCOME TO 85TH ANNUAL GENERAL MEETING 29TH JUNE 2004

2. Organisational Transformation
Company Focus
Organisational Transformation
Regulation
TBEM*
3 SCR
Growth
* Tata Business Excellence Model

3. Introduction to Management Team
Mr F A Vandrevala
Managing Director
Mr P K Kukde
Executive Director
Mr A Charan
VP Finance
Mr M Gurunath
VP S & BD
Mr M Bhandari
CRO
Mr S Deshpande
VP Technical
Mr R Sequeira
VP HR
Mr R Chaudhary
CEO- Broadband
Mr A Sardana
CEO-NDPL
Mr S Wadhwa
CFO-NDPL

4. Performance Highlights of FY 04
Highest PBT of
Rs 734 Crs so far
Tariffs reduced by
17 paise/Kwh in
Mumbai Area
Sales to outside SEBs
Commenced
Achieves fuel savings
Of Rs 166 Crs-Fuel Mix
Change
Three 100% Subsidiaries
Formed
Other Business of TPC
Revenue up
Operating profits higher at Rs 1192 Crs ( FY 03-Rs 1184 Crs)
Company proposes a dividend of 70 % -Highest so far

5. Revenue Mix
Revenues

6. Licensed Area SEB Sales- 650 MUs FY 04: Tot Sale- 9777 MUs
New Benchmark set for overhauling for 500 MW
Unit within 25 days ( Previous TPC best of 34 days)
Pumped Storage Unit Operations started

7. Power Business- Outside Licensed Area
Total Sales of Mus in FY 04 against 2473 Mus in FY 03 –less by 1%
Jojobera
Belgaum
Wadi
Jojobera Sales to DVC increase
to 71 Mus from 17 Mus
Belgaum Plant islanded 9 times for
feeding power to Belgaum City
Wadi PLF 72% -highest so far ( PY of 61%)

8. Other Business Revenue in Rs Cr Performance Highlights
I Power System Division
Orders in hand worth of Rs 428 Crores (previous year Rs 138 Cr)
II Strategic Electronics Division
Order booking doubled during the year compared to previous year (FY 04-Rs 74 Crs, FY 03-Rs 38 Crs)
III Broadband
PBT positive in first year of operation.

9. Contribution to the Exchequer
FY 04 Total : Rs 535 Cr
This contributes more than 12% of our Revenue

10. 3 SCR Programme Speedy Cost Reduction Significant Sustainable
Major Initiatives
Multiple schemes of Nallah diversion
Remotely controlling receiving stations
using SCADA
Leasing unutilised property
Reducing fuel logistics cost
Operational efficiency initiatives
Reducing auxiliary consumption
Ideas worth Rs 38 Crores of annual savings implemented
Ideas worth Rs 36 Crores of annual savings under implementation
Ideas worth Rs 9 Crores in pipe line

11. Cost Reduction Initiatives- Fuel Cost Reduction
Consumption of cheaper fuel in Licensed Area leads to reduction in Tariff
FY03
FY04
Change in fuel mix i.e Oil to Coal and Gas
Long Term Fuel Contract entered by TPC

12. TPC Coal Purchases -Spot Vs Long Term
10 Year Indonesian Spot Prices
Max 49 USD/MT in Jun' and Min 17 USD/MT in Aug'02 / Jun’03
Source: Platts Monthly Reports

13. Cost Reduction Initiatives- Cost of Capital Reduction
I Costly Loans Prepaid
Rs Cr
Commercial Banks 150
NCD 170
World Bank 245
Reduction of Interest by Rs 50 crores
II Loans Refinanced/Renegotiated
Rs Cr
NCDs 180
( 12.75% to 8.25%)
Interest Reduction of Rs 8 crores

14. New Subsidiaries Formed
Three 100% subsidiaries formed
Tata Power
Tata Power Broadband Ltd
Alaknanda Hydro Power Company Ltd
Tata Power Trading Co Ltd
Power Trading
Shrinagar Project
Broadband
Communication

15. Q1 –FY 05 Load Despatch centre of TPC dons a new look MERC Orders
Standby Charge
MERC Orders
Tariff for FY 05
Charter of Demands with Union signed
Estimated Sales for Q1 higher by 11% over Q1 of FY 04

16. Standby Charge- Developments
Background
Matter of dispute since Dec 98
The dispute is on sharing of Standby Charge levied by MSEB on TPC (Rs 396 Cr p.a). Standby Capacity 50:50
As per TPC the charges should be shared in the Ratio of 50:50
REL did not agree with this ratio
Matter referred to GOM to MERC
to High Court to Supreme Court
and back to MERC
Matter was referred by MERC
to CEA for Technical Advice

17. Standby Charge- Developments
TPC’s Stand
CEA recommendation
Standby is independent of Peak Demand
Required in the event of loss of any generating unit
In line with High Court and Supreme Court Order
Sharing of standby charge on the basis of Peak Demand of TPC and REL
MERC Order
MERC order on the basis of CEA report
Ratio of Sharing on 77:23 ( instead of 50:50)
Amt to be paid to REL –Rs 322 Cr
Amt to be paid to MSEB –Rs 275 Cr
The amount would be adjusted from Statutory Reserves
TPC has appealed in the High Court for stay and for review of order

18. Tariff Order for 2004-05 Average Tariff in FY 05 reduced by 9.2%
MERC Order
Average Tariff in FY 05 reduced by 9.2%
Impact of Standby Charge payable by TPC incorporated
TPC allowed to adjust against the Statutory Reserves
No Impact on General Reserves
Tariff allows TPC to earn 16% Reasonable Return as before

19. Growth -Audio Visual Presentation