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1 inum Banking Cement Cotton & Cotton Ya Construction Educat Chlor-Alkali CRAMS Crude Oil Gems & J Natural Gas Pesticides Power Generation Steel Pa anganese Ore Pharmaceutical Refining & Marketing ight Transport Commercial Vehicle omponent Business Process Management (BPM) arel oal Shipping Sugar Tractor Telecom Tower Wheeler Tyre Sources Two Whee Pipe Telecom-Wireless Seed n Made Fibre Paper Housing Finance Passenger Vehicl Hospital Roads & Highways Zinc & L Shipbuilding Aluminum nking Express Service The Steel Two Indian Wheeler Pesticide Gems & Jewellery Express Service Cr Passenger Vehicle CRAMS ble Sources otel ads Freight Transport ed July 2013 Reta Cotton & Cotton Yarn Tracto Natural Gas

2 CARE Research expects lower renewable capacity addition v/s MNRE estimate ~18.5GW in the 12th Plan ( ) due to lower-than-anticipated wind capacity addition coupled with sluggish growth in SHP, WTE and Biomass. CARE Research expects a gradual pick-up in wind capacity addition even after the reintroduction GBI incentives due to weak economic conditions. State level policy issues related to other segments also need to be addressed to improve the 12th Plan capacity addition. 12th Plan to add over 17 GW; funding requirement Rs.1.09 trillion India to reach solar grid parity by FY17, few states to achieve it earlier Solar grid parity would be achieved with a combination reducing solar systems costs coupled with a rise in conventional tariffs by FY17E. Solar power tariffs are expected to fall due to aggressive bidding, efficiency gains and reduction in capital costs by FY17E. On the other hand, conventional power tariffs are expected to rise due to increase in tariffs by the state distribution companies to match the cost power purchased and private IPPs increasingly demanding fuel pass through. Few states such as Delhi, Rajasthan, Gujarat and Tamil Nadu are expected to achieve solar grid parity. The Biomass sector is facing high raw material prices due to policy lacunae. Additionally, CARE Research understands from its industry sources that the state regulators have not taken into account the actual fuel costs into the calculation tariffs, leading to under recovery variable costs. CARE Research believes that the sector would remain under stress and capacity addition to remain muted for the 12th Plan, unless regulators allow tariff hikes in proportion to fuel costs and address policy lacunae. High raw material costs and underestimation costs haunt the biomass sector REC market faces glut given weak enforcement RPO mechanism non-solar REC market is facing price discovery problems. REC market is also facing supply glut with inventory 2 million certificates remaining unsold till May The oversupply situation is led by poor financial DISCOM health and weak enforcement mechanism for RPO purchase for obligated entities. However, the solar segment is relatively better due to supply constraint with approximately 153MW installed capacity vis-a-vis much higher demand by the obligated entities. CARE Research believes that the REC market can only improve with meaningful progress in financial restructuring package (FRP) for DISCOMs and enforcement RPO mechanism by the central regulator i.e. CERC.

3 Outlook on Indian Sources Table Section- I Care Research's Outlook 12th Plan ( ) to add 17GW; funding requirement Rs1.09tn Gujarat is emerging as top wind destination, while TN is losing sheen Solar Grid Parity by 12th Plan-end; few states to reach even earlier High raw material costs; cost underestimation to haunt biomass sector REC market faces glut given weak enforcement RPO mechanism Section- II Section Indian Policy & Regulatory Evolution Electricity Act, 2003 National Electricity Policy, 2005 National Tariff Policy, 2006 Rural Electrification Policy, 2006 Integrated Policy National Action Plan for Climate Change Feed in Tariffs Generation Based Incentives Rationale Jawaharlal Nehru National Solar Mission Purchase Obligation and REC Mechanism National Clean Fund Carbon Credits The Kyoto Protocol Clean Development Mechanism How to Register for CDM benefits? Methodologies to Calculate CER benefits for renewables Applicability Identification Baseline Scenario Monitoring Methodology Doha Amendment,2012 Carbon financing What went wrong with the carbon market Wind Global wind scenario Indian Wind resource potential and installed capacity Wind tariffs and Generation Based Incentives (GBI) Wind technology improvements and trends in India Indian Repowering potential Benefits and challenges State-Wide repowering potential Wind technology improvements and trends in India Group captive model gaining traction Wind Attractiveness Score

4 Solar Solar Plant and technology types Photovoltaic Concentrating Solar Power (CSP) plants Global Scenario Why Globally Solar PV Module prices crashed? JNNSM Phase wise analysis Gujarat Solar Policy, 2009 Charanka Solar Park Other state policies Grid based attractiveness score RPO compliance and fate REC projects JNNSM policy update 12th Plan solar capacity addition Small Hydro Power (SHP) SHP resources and potential State policies Problems associated with SHPs Biomass/Biogas and Cogeneration Biomass/Biogas installed capacity and capacity addition roadmap Conversion Biomass to electricity Problems associated with Biomass Lower variable tariff Raw Material scarcity Lack Fuel Pass-through arrangements Lack regular tariff revision Effective Plantation policy Waste to (WtE) generation Types Waste Installed capacity and potential Present situation Municipal Solid Waste (MSW) generation in India Solid Waste management Per Capita MSW generation MSW composition Issues and challenges in WtE WtE Technologies Issues and challenges in WtE Off-grid renewable energy applications Off-grid renewable applications-impact assessment for Rural Electrification

5 List five cities for solar ro top in Gujarat Suggested metering system Commercial tariff over the years across the states Parameters and weightage for state ranking Off grid solar attractiveness index for states RPO & REC Framework RPO targets for states during FY13-17 State wise installed capacity under REC as on 28th June, 2013 Non solar REC markets trends towards price discovery issues While REC solar segment remains constrained with supply issues Comparative Benchmarking RPO & REC Framework Benchmarking various renewable Levellised tariffs across renewable sources for financing Indian Wind Business model comparison Options for financing for a wind project Funding requirement for RE Projects in the 12th Plan Orient Green Power Company Limited Ëxisting Wind operations Capacity Expansion Wind Ëxisting Biomass operations Ëxisting Projects Biomass power plants Capacity Expansion Biomass Consolidated Financial Performance Mytrah Limited Öperations Projects under construction Azure Power Projects Bermaco Limited Completed Projects Öngoing Projects SECTION- III Company Section

6 Advantages Saving transmission costs Lowering T&D losses Disadvantage High costs Can Hybrid systems have better economic viability? Net-metering and Rotop based PV systems Solar powered rural telecom towers can soon become a reality Solar ro top Gaining Traction Is distributed solar ready to pick up? RPO & REC Framework Purchase Obligation Salient Features REC framework Advantages REC mechanism Inter-state transmission Promotion Stand-alone systems Competition in Electricity market Overcoming the barrier natural diversity Alternative to meet Purchase Obligation Attract investment How can REC mechanism aid renewable market development? Comparative Analysis financing funding scenario Wind Business models and financing Solar project financing Various problems faced by financial institutions in solar projects Lenders vary projects with aggressive bidding Non development solar REC Market Limited availability Solar irradiation data Weak financial position distribution companies EPC Contractors and Performance guarantee Other RE financing issues Funding requirement in the 12th Plan Orient Green Power Company Limited Background Corporate action & remarks Existing wind operations Capacity expansion wind Existing Biomass operations Capacity expansion Bio mass Consolidated Financial Performance SECTION- III Company Section

7 Mytrah Limited Background Corporate action & remarks Operations Azure Power Background Corporate Action & Remarks Projects Bermaco Limited Background Corporate Action & Remarks Completed projects Ongoing projects Annexure 1 State wind power potential Annexure 2 - Manufacturers Offering Class II and Class III wind turbines Annexure 3 State-wise solar installed capacity Annexure 4 Benchmark capital cost for solar PV Annexure 5 MSW generation potential and fossil fuel (coal) displacement Annexure 6 Capacity Factors in the Key states Annexure 7 State-wise identified SHP sites and power potential (as on ) Annexure 8 Status RPO and REC regulations SERCs as on Outlook on Indian 12th Plan capacity addition - Base Case 12th Plan capacity addition - Best Case Funding Requirement for RE Projects in 12th Plan (Rs bn) Wind attractiveness scoring for states Declining solar tariffs Solar grid parity not far f Few States to achieve Grid Parity faster SECTION- IV Annexures List Graphs & Tables Section- I Care Research's Outlook Non-solar wind REC market facing huge inventory accumulation Solar REC segment fairs better with restricted supply vis-a-vis demand Capital Cost break-up Solar PV based projects under JNNSM Indian Policy & Regulatory Evolution Status and achievement in JNNSM as on 31st March, 2013 Carbon Credits Carbon Financing Wind Section- II Section Growth across major global wind markets over the last decade

8 Wind Power Re-assessment studies (GW) State-wise wind capacity addition Average Size WTG installations Various State-wide repowering potential State wise policy analysis in wind energy Parameters and weightage for state ranking Wind attractiveness scoring for states Solar Diagram showing working solar PV Diagram showing working solar CSP Growth in global solar PV installed capacity (GW) Status and achievement in JNNSM as on 31st March, 2013 Status Batch I JNNSM (Grid and f-grid projects) JNNSM Batch I bidding summary Status Batch II JNNSM (Grid and f-grid projects) Gujarat state policy, 2009 Installed solar capacity breakup in India as on 9th March, 2013 Charanka solar park Various state solar policies Parameters and weightage for state ranking On grid attractiveness rank for the states RPO targets for states during FY13-17 Non solar REC markets trends towards price discovery issues While REC solar segment remains constrained with supply issues Highlights JNNSM Phase II Project guidelines under JNNSM Timeframe for solar projects in JNNSM Phase II CARE Research estimates solar capacity addition during the 12th Plan Small Hydro Power (SHP) Small Hydro power polices for key states Biomass/Biogas and Cogeneration 12th Plan ( ) target 13th Plan ( ) target Biomass power generation process State wise comparison biomass power Waste to (WtE) generation Types Waste Per Capita MSW generation (kg/day) WtE Technologies List municipal and urban waste power project taken up Off-grid renewable energy applications Deployment various renewable energy systems in India Grid power availability pattern DoT study on payback periods for various solar wind based towers

9 Credit Analysis & Research Ltd. (CARE), promoted in 1993 by some the leading Indian banks and financial institutions including Industrial Development Bank India (IDBI), Canara Bank and others is amongst the premier credit rating agencies in India and provides credit rating, research and information services. CARE Ratings is well equipped to rate all types debt instruments including Commercial Papers, Fixed Deposits, Bonds, Debentures, Hybrid Instruments, Preference Shares, Loans, Structured Obligations, Asset Backed Securities, Residential Mortgage Backed Securities etc. CARE's rating methodologies are in line with the best international practices. CARE Research & Information Services (CARE Research) is an independent division CARE. CARE Research services a variety business research needs with credible, high-quality research and analysis on various facets the Indian Economy and Industries. The Publications include Reports, Debt Market Review, Budget Analysis and other policy impact analysis and special commentaries on topical issues.care Research fers both subscription-based reports as also customized reports on request. The reports by CARE Research provide insightful data and analysis on various industry sectors and CARE's outlook on the same. The one-year subscription to the report on ' ' by CARE Research includes access to quarterly updates from the date subscription. To view list industries under our coverage you can visit For any queries regarding the content & scope the report kindly reach us at careresearch@careratings.com To place an order, please contact: Manish Sukhija Business Development - CARE Research Credit Analysis & Research Ltd. 503, Kaledonia, Sahar Road, Off Western Express Highway, Andheri (E), Mumbai Cell: , Tel.: (Direct), (Board) CORPORATE OFFICE MUMBAI Credit Analysis & Research Ltd. 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai Tel: , Fax: , care@careratings.com 503, Kaledonia, Sahar Road, Off Western Express Highway, Andheri (E), Mumbai Tel.: REGIONAL OFFICES AHMEDABAD 32, Titanium, Prahaladnagar Corporate Road, Satellite, Ahmedabad Tel: Fax: BENGALURU Unit No , 11th Floor, Prestige Meridian II, No.30, M. G. Road, Bangalore Tel: , Telefax: CHANDIGARH 2nd Floor, S.C.O , Sector 34-A, Chandigarh CHENNAI Unit No. O-509/C, Spencer Plaza, 5th Floor, No. 769, Anna Salai, Chennai Tel : / Fax: HYDERABAD 401, Ashoka Scintilla, , Himayat Nagar, Hyderabad Tel: Fax: JAIPUR 304, Pashupati Akshat Heights, Plot No. D-91, Madho Singh Road,Near Collectorate Circle, Bani Park, Jaipur Tel: / 14 KOLKATA 3rd Floor, Prasad Chambers, (Shagun Mall Building), 10A, Shakespeare Sarani, Kolkata Tel: / 02 Fax: NEW DELHI 3rd Floor, B-47, Inner Circle, Near Plaza Cinema, Connaught Place, New Delhi Tel: / / Fax: PUNE 9th Floor, Pride Kumar Senate, Plot No. 970, Bhamburda, Senapati Bapat Road, Shivaji Nagar, Pune Tel: MALDIVES 4th Floor, CHAMPA Center Point, Chandhanee Magu, Male' Republic Maldives. Tel: / Mobile: / Fax: