NLC India Limited Formerly Neyveli Lignite Corporation Limited

NLC India Limited (Formerly Neyveli Lignite Corporation Limited) A “Navratna” – Government of India Enterprise CORPORATE PRESENTATION

Disclaimer This presentation report is for distribution only under such circumstances as may be permitted by applicable law. It is published solely for information purposes, it does not constitute an advertisement and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments in any jurisdiction. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, except with respect to information concerning NLCIL’s past performance, its subsidiaries and affiliates, nor is it intended to be a complete statement or summary of the future proposals , strategies and projections referred to in the report. NLCIL does not undertake that investors will obtain profits, nor will it share with investors any investment profits nor accept any liability for any investment losses. Investments involve risks and investors should exercise prudence in making their investment decisions. The report should not be regarded by recipients as a substitute for the exercise of their own judgment. Past performance is not necessarily a guide to future performance. The value of any investment or income may go down as well as up and you may not get back the full amount invested. Any opinions expressed in this report are subject to change without notice and may differ or be contrary to opinions expressed by other business groups of NLCIL as a result of using different assumptions and criteria. This presentation report may contain certain “forward-looking statements”. These forward-looking statements generally can be identified by words or phrases such as “aim”, “anticipate”, “believe”, “expect”, “estimate”, “intend”, “objective”, “plan”, “project”, “shall”, “will continue”, “will pursue” or other words or phrases of similar import. Similarly, statements that describe our strategies, objectives, plans or goals are also forward-looking statements. All forward-looking statements are subject to risks, uncertainties and assumptions about us that could cause actual results to differ materially from those contemplated by the relevant statement. These forward looking statements are based on our current plans and expectations. Actual results may differ materially from those suggested by the forward-looking statements due to risks or uncertainties associated with our expectations with respect to, but not limited to, regulatory changes pertaining to the industries in which we have our businesses and our ability to respond to them, our ability to successfully implement our strategy, our growth and expansion, technological changes, our exposure to market risks, general economic and political conditions which have an impact on our business activities or investments, the monetary and fiscal policies of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices, the performance of the financial markets in India and globally, changes in Indian laws, regulations and taxes and changes in competition in our industry etc. NLCIL reserves the right to alter, modify or otherwise change the presentation without notifying any person of such changes or revision. Neither the author or NLCIL shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from this presentation report. Further, NLCIL is under no obligation to update or keep current the information contained herein. The disclosures contained in this presentation report produced by NLCIL shall be governed by and construed in accordance with laws of India. NLCIL specifically prohibits the redistribution of this material in whole or in part without the written permission of NLCIL and NLCIL accepts no liability whatsoever for the actions of third parties in this respect. Images may depict objects or elements which are protected by third party copyright, trademarks and other intellectual property rights. All rights reserved. June-2017 NLC India Limited 2

Contents Company Overview & Performance Highlights Financial Performance Industry Opportunities Future Growth Sustainability Measures Awards & Recognition Glossary June-2017 NLC India Limited 3

NLC India Ltd| Introduction A ‘Navratna’ Company Rich Heritage with Over 6 Decades of Glorious Existence Core Business – Mining & Power Generation with Expertise in operation & maintenance of open-cast mining, power generation Robust Financial Performance – FY 16 -17 Total Income - Rs. 9, 347. 25 crore; PAT – Rs. 2, 368. 81 crore; Market Capitalization * - Rs. 16, 416. 82 crore Conferred with AAA rating – Highest domestic credit rating Present Board of Directors comprise of 13 Directors– 6 Functional Directors, 2 Government Nominees and 5 Independent Directors including 2 Women Directors Strong Parentage with Government of India – equity holding 89. 32% * Based on closing share price in BSE as on 01. 06. 2017 – BSE Rs. 107. 40 Post buyback equity shares June-2017 NLC India Limited 4

Rich Heritage 60+ years of glorious journey 2011 Received Navratna Status 2010 2003 Mine I A Mine I Expn TPS I Expn 1994 Listed on BSE 2000 TPS 1 Listed on NSE Incorporation 2012 Barsingsar TPS Formation of NUPPL 2005 1970 1956 Mine II Expn Barsingsar Mine 2015 TPS II Expn Wind & Solar NTPL TPS Formation of NTPL 1993 Mine II TPS II 1962 Mine I June-2017 1 One of the Largest Lignite Mining Companies in India 2 With Expertise in Mining & Power Generation moving towards Renewable NLC India Limited 5

NLCIL’s Footprint Barsingsar, Rajasthan • Mines – 2. 1 MTPA • TPS – 250 MW Neyveli, Tamil Nadu * New Delhi Barsingsar * Lucknow Tirunelveli, Tamil Nadu • Wind – 46. 5 MW *Kolkata * Bhubaneshwar Mumbai * * Hyderabad Tuticorin, Tamil Nadu Bangalore * • NTPL (JV with TANGEDCO) - Coal based TPS – 1, 000 MW Neyveli Tirunelveli Tuticorin Note : Map not to scale and is presented only to provide an indication of approx locations of our operations. Existing Capacity as on 01. 06. 2017 June-2017 NLC India Limited • Corporate Office • Lignite Mines • Mine I – 10. 5 MTPA • Mine IA – 3. 0 MTPA • Mine II – 15. 0 MTPA • Power • TPS I – 600 MW • TPS I Expn – 420 MW • TPS II – 1, 470 MW • TPS II Expn– 500 MW • Renewable Energy * Liaison Offices • Solar * Project Liaison Offices – 10 MW 6

NLCIL’s Core Business Mining Power Generation ü Lignite based TPSs – 3, 240 MW ü Renewable Energy ü Solar – 10 MW ü Wind – 46. 5 MW ü Lignite Mining – 30. 60 MTPA • Physical Performance Lignite Production - LT • Physical Performance Power Generation - MU 276 262 266 265 Mining Power Generation 19, 902 19, 989 19, 729 21, 031 19, 182 2012 -13 2013 -14 2014 -15 2015 -16 2016 -17 255 Plant Load Factor % 83 2012 -13 2013 -14 2014 -15 2015 -16 2016 -17 Note : Source from NLCIL Annual Reports and figures representing NLCIL Standalone LT – Lakh Tons MW – Mega Watt MTPA – Million Tone Per Annum June-2017 70 2012 -13 Including TS II Exp, Wind & Solar NLC India Limited 83 NLC All India 81 76 66 65 62 2013 -14 2014 -15 2015 -16 73 63 2016 -17 Source : All India PLF from Central Electricity Authority 7

Strong In-House Capabilities Expertise in Open Cast Mining & Power Generation • Long experience and expertise in operation, maintenance and project management in open- cast mining & power generation • Asset bank of specialised mining equipments for open cast mining: − German excavation technology − Bucket wheel excavators, conveyors and spreaders June-2017 Lignite Resources for Captive Consumption Nodal Agency for Lignite Data Base • Captive fuel source with power plants located at the pit heads of Lignite mines • Nodal Agency for Lignite database appointed by Ministry of Coal • Greater flexibility in terms of adjusting the lignite production to adjust for variations in power demands and power generation at thermal power plants • Competitive advantage in identifying and exploiting new lignite deposits in India Strong Financials • Consistent growth in turnover • Highest domestic credit ratings • Competitive tariff rates comparing other sources of power generation • Internal Financial Control Framework is in place in line with international practices NLC India Limited 8

Strength & Opportunities Strength Opportunities • Availability of lignite and water for power generation. • Expertise in operation & maintenance of open-cast mining, power generation. • Potential area for diversification – Coal blocks, Renewable energy & Power trading • Harmonious Industrial relations. • Pioneering positions in opencast lignite mining with SME technology and lignite fired power station. • GOI’s commitment to improve the quality of life of its citizen through higher electricity consumption. • GOI aims to provide each household access to electricity, round the clock and improve the quality of life of people through 24 x 7 power supply. • Rise in the per capita consumption of power. • Huge potential for Renewable Energy • Launch of 100 smart cities mission by GOI. June-2017 NLC India Limited 9

Contents Company Overview & Performance Highlights Financial Performance Industry Opportunities Future Growth Sustainability Measures Awards & Recognition Glossary June-2017 NLC India Limited 10

Financial Performance NLCIL Share Price movement 9, 347 Total Income (Rs in Crore) 709 372 6, 992 6, 797 1046 740 586 484 7, 177 6, 173 602 504 554 401 Share price movement from 01 -04 -2016 to 20 -062017 8266 5067 Earning Per Share 6222 5573 5360 Source: BSE 20 15. 5 15 10 8. 7 8. 95 2012 -13 2013 -14 9. 42 5 2012 -13 2013 -14 2014 -15 Power Mine 2015 -16^ Other 2016 -17 2014 -15 1. 36 2015 -16^ 2016 -17 Total Income Note : Source from NLCIL Financial Results & Annual Reports and figures representing NLCIL Standalone June-2017 0 NLC India Limited ^ Restated as per Ind AS 11

Financial Performance EBITDA & EBIT (Rs. in crore) 3, 006 2, 981 2, 592 PBT & PAT (Rs. in crore) 2, 464 3, 028 2, 634 2, 323 2, 194 2, 080 2, 383 2, 209 2, 048 1, 780 1, 502 1, 460 2, 369 1, 856 1, 138 228 2012 -13 2013 -14 2014 -15 EBITDA 2015 -16 ^ 2016 -17 2012 -13 2013 -14 EBIT PBT 73. 4% 1, 400 28. 0% 30. 0% 600 200 80. 0% 60. 0% 1, 000 28. 0% 470 470 503 1, 122 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 2016 -17 Dividend 2016 -17 PAT 2012 -13 OPM (%) 2013 -14 2014 -15 2015 -16^ 2016 -17 35. 94 32. 78 31. 62 20. 43 29. 21 ROCE (%) 11. 5 12. 11 12. 81 1. 41 16. 18 20. 0% RONW (%) 11. 29 10. 82 10. 69 1. 79 19. 66 0. 0% Current Ratio 3. 78 3. 44 3. 55 3. 46 3. 05 Quick Ratio 3. 46 3. 16 2. 98 2. 47 40. 0% Dividend % Note : Source from NLCIL Financial Results & Annual Reports and figures representing NLCIL Standalone June-2017 2015 -16^ Key Financial Ratios Dividend Trend 28. 0% 2014 -15 ^ Restated as per Ind AS NLC India Limited 12

Financial Performance Reconciliation of Retained Earnings – IGAAP vs. Ind AS Reconciliation of Profit – IGAAP vs. Ind AS Particulars Profit and loss (IGAAP) for the year ended March 31, 2016 Add : Reinstatement of prior period adjustment passed in 2016 -17 Reinstatement of Closing Stock of Lignite for 2015 -16 Less : Reversal of reinstated of Closing Stock of Lignite for 2014 -15 Reinstatement of prior period adjustment passed in 2015 -16 Remeasurement of actuarial gains and interest cost Regulatory deferral balance Total comprehensive income (Ind AS) for the year ended March 31, 2016 For the year ended March 31, 2016 Rs. In Crore 1, 204. 15 Particulars As at March 31, 2016 Rs. In Crore Total equity as at 31 March 2016 (IGAAP) Ind AS adjustments (as on Opening Balance Sheet Date) Ind AS adjustments (for the period April 1, 2015 to March 31, 2016) Retained Earnings: 1. 15 Reversal of proposed dividend since it is a non-adjusting event (2015 - 16) Reversal of prior period adjustment - 2015 - 16 adjusted in the previous year 16. 00 Reinstatement of prior period adjustment passed in 2016 -17 Reinstatement of Closing Stock of Lignite for 2014 -15 Remeasurement of actuarial gains and interest cost -8. 77 Accounting for dividend paid during the year Reinstatement of Closing Stock of Lignite for 2015 -16 -0. 05 Rate Regulatated defferal balances upto 2014 -15 Rate Regulatated defferal balances for 2015 -16 -12. 62 Power revision reclassified from sales to regulatory balances Others (misc expenses) -971. 86 Other Reserves: 2 Remeasurement of actuarial gains and interest cost under OCI 28. 00 Reversal of reclassification of capital reserve to other non-current liability Total Ind AS adjustments (for the YE March 31, 2016) Balance as at 31 March 2016 (Ind AS) 15, 468. 64 -1, 621. 50 242. 30 0. 05 1. 15 -8. 77 -12. 62 -202. 88 16. 00 -906. 34 -43. 41 -24. 56 2. 45 12. 62 2. 37 -921. 64 12, 925. 50 Note : Source from NLCIL Financial Results & Annual Reports and figures representing NLCIL Standalone June-2017 NLC India Limited 13

Financial Performance Net Worth Loans Outstanding Credit Ratings (Rs. in crore) Agency 3, 164 3, 150 3, 524 3, 540 5, 413 Rating CRISIL AAA/Stable ICRA AAA/Stable CARE AAA/Stable Brickwork AAA/Stable Contribution to Exchequer (Rs. in crore) 12, 925 13, 881 14, 772 2012 -13 Central Government 12, 721 12, 047 2013 -14 2014 -15 2015 -16^ 2016 -17 1, 678. 64 4, 579. 15* Tamilnadu 227. 92 270. 75 274. 22 289. 57 373. 43 Rajasthan 9. 25 9. 61 7. 26 6. 54 11. 95 237. 17 280. 36 281. 48 296. 11 385. 38 1, 642. 96 2, 097. 92 1, 974. 75 4, 964. 53 Total 2016 -17 Note : Source from NLCIL Financial Results & Annual Reports and figures representing NLCIL Standalone June-2017 1, 362. 60 1, 816. 44 2015 -16 State Government Total - State 2012 -13 1, 566. 77 2013 -14 2014 -15 NLC India Limited 1, 803. 94 ^ Restated as per Ind AS * including Buyback of Rs. 1, 431. 01 crore 14

Contents Company Overview & Performance Highlights Financial Performance Industry Opportunities Future Growth Sustainability Measures Awards & Recognition Glossary June-2017 NLC India Limited 15

Lignite Reserves in India Depth wise resources In MT as on 31. 03. 2016 STATE <150 m Depths 150 -300 m Depths Tamil Nadu Puducherry Rajasthan Gujarat J&K Kerala West Bengal Total % 6, 176. 98 416. 61 1, 941. 68 707. 72 27. 55 9. 65 1. 15 9, 281. 34 20. 81 8, 752. 81 0. 00 3, 016. 88 2, 014. 33 0. 00 1. 62 13, 785. 64 30. 91 >300 m Depths 20, 750. 14 0. 00 777. 40 0. 00 21, 527. 54 48. 28 Total % 35, 679. 93 80. 02 416. 61 0. 93 5, 735. 97 12. 86 2, 722. 05 6. 10 27. 55 0. 06 9. 65 0. 02 2. 77 0. 01 44, 594. 53 100. 00 Gujarat - Others - 39. 97 Rajasthan- 2, 722. 05 5, 735. 97 Puducherry 416. 61 Tamil Nadu 35, 679. 93 Source : Geological Survey of India June-2017 NLC India Limited 16

Power Sector in India Power Position (MU)-2016 -17 Per Capita Consumption (k. Whr) Installed Capacity - 3, 19, 606 MW 1, 142, 092 1, 134, 631 Requirement Availability 1, 075 Other Resources; 12, 305 Solar; 9, 013 1, 010 914 884 631 717 672 734 779 957 819 Wind ; 28, 700 2005 -062006 -072007 -082008 -092009 -102010 -112011 -122012 -132013 -142014 -152015 -16 All India Plant Load Factor % Hydro; 44, 478 68 Coal; 192, 163 67 64 62 59 61 Gas & Diesel; 26, 167 Nuclear; 6, 780 61 61 60 58 62 65 63 60 60 62 58 58 54 52 April May June July August September October 2015 -16 November December January February 2016 -17 Source -Central Electricity Authority – Executive Summary Mar -17 Report June-2017 64 63 NLC India Limited 17 March

Contents Company Overview & Performance Highlights Financial Performance Industry Opportunities Future Growth Sustainability Measures Awards & Recognition Glossary June-2017 NLC India Limited 18

NLCIL – Growth Plan over 10 Years – Vision 2025 Sl. No Project Existing Capacity 1 Addition Proposed Total 2 30. 60 31. 55 62. 15 0 31. 00 1 Lignite (MTPA) 2 Coal (MTPA) 3 Power - Lignite Based (MW) 3, 240 3, 540 6, 780 4 Power - Coal Based (MW) 1, 000 5, 940 6, 940 5 Power - Renewable (MW) 56. 50 4, 194. 50 4, 251 6 Acquisition of Power Assets (MW) 0 3, 000 4, 296. 50 16, 674. 50 20, 971 Total Power (MW) TOTAL CAPEX : Rs. 1. 28 lakh crore with a debt-equity ratio of 70: 30. 1 Note: Existing Capacity as on 01. 06. 2017 2 Note: Total Expected Capacity by 2025 – based on the Corporate Plan 2025 which is available in the Company Website June-2017 NLC India Limited 19

On going / Upcoming Projects Mining Projects On Going Projects Lignite Projects MT Expansion of Mine-IA from 3 MTPA to 7 MTPA 4. 00 Bithnok Lignite Mine, Rajasthan 2. 25 Hadla Lignite Mines, Rajasthan 1. 90 Power Projects Upcoming Projects Lignite Projects On Going Projects MT Lignite based TPS 11. 5 NNTPP Mine. III Neyveli 11. 5 Bithnok TPS 250 Total 23. 00 Barsingsar TPS Expn 250 Total 900* Palayamkottai & Vellar 1, 000* Coal based TPS Barsingsar Expansion, Rajasthan Total Talabira II & III Coal Blocks MW Lignite based TPS NUPPL UP Renewable MT 20. 00 South Pachwara Coal Block 11. 00 Total 31. 00 1, 980 MW Solar – TN 630 Wind Power – TN 4. 50 Total 634. 50 MW TPS-II 2 nd Expn 2, 640 Coal based TPS Odisha / NTPL Expn. 0. 40 8. 55 Coal Projects MW Upcoming Projects MW 3960** Renewable MW 3, 360 Solar – in various States Wind Power - TN 200 Total 3, 560 Power Assets Acquisition MW Raghunathpur – JV with DVC 1, 200 Power Assets Acquisition 1, 800 Total 3, 000 *Note: NNTPS to replace existing TPS I of 600 MW accordingly 400 MW has been considered for arriving the total. ** Note : likely to be upgraded to 4000 MW (5 x 800 MW) from 3960 MW (6 x 660 MW) June-2017 NLC India Limited 20

Contents Company Overview & Performance Highlights Financial Performance Industry Opportunities Future Growth Sustainability Measures Awards & Recognition Glossary June-2017 NLC India Limited 21

Corporate Social Responsibility Amount Spent on CSR % of amount spent on CSR Activities 2016 -17 activities 2012 -13 : Rs. 14. 26 crore 2013 -14 : Rs. 26. 30 crore 2014 -15 : Rs. 47. 49 crore 19. 09% 0. 48% 0. 35% 0. 46% 24. 87% 5. 89% 19. 28% 29. 58% 2015 -16 : Rs. 81. 93 crore 2016 -17* : Rs. 37. 19 crore * Unspent Amount – Rs. 6. 27 crore due to pending clearance from District and other local Health & Sanitation Water & Irrigation Education Women Empowerment Sports in Rural areas Infrastructure Environmental Sustainability Others authorities for allocation of work front. June-2017 NLC India Limited 22

Green belt development June-2017 NLC India Limited 23

New Initiatives – Sustainable Development Energy Conservation • Formed 14 industrial service units for adoption of energy conservation measures • To utilise alternate source of energy wherever permissible Technology Absorption • Studies on synthesis of Zeolites from Lignite Fly Ash and its efficiency in cooling water treatment taken up based on the outcome production of Zeolite tablet for water treatment. • Development of organic coating paints for use in specialized Mining equipment/De-watering pipes to enhance its life. • Reclamation of Slag Dump areas in Mine-II suitable for development of Green Cover June-2017 NLC India Limited 24

Contents Company Overview & Performance Highlights Financial Performance Industry Opportunities Future Growth Sustainability Measures Awards & Recognition Glossary June-2017 NLC India Limited 25

Awards & Recognition • Best PSU Implementing CSR Award (2 nd Place) • Best Corporate Film in Hindi (2 nd Place) • Best PSU Implementing RTI (Special Award) • Golden Peacock Environment Award 2016 • National Award for Outstanding Industrial Relations’ (First Runner up) • SCOPE Excellence Award - Gold Trophy presented to NLCIL by Shri Pranab Mukherjee, Hon'ble President of India • Cost Excellence Award for best practices in Cost Management from The Institute of Cost Accountants of India for the third time. • The Ahmedabad and Hyderabad Chapters of Public Relation Society of India (PRSI) has honoured NLCIL with six awards in recognition of its performance in various categories • Corporate Vigilance Excellence Award 2015 -16 instituted by Institute of Public Enterprise (IPE), a well-known autonomous, non-profit organisation in Hyderabad • Golden Peacock Award for CSR – 2015 June-2017 NLC India Limited 26

Contents Company Overview & Performance Highlights Financial Performance Industry Opportunities Future Growth Sustainability Measures Awards & Recognition Glossary June-2017 NLC India Limited 27

Glossary Term BSE CAPEX CSR DVC EBITDA Expn. FY GOI JV k. Whr LT MTPA MU MW June-2017 Description Bombay Stock Exchange Capital Expenditure Corporate Social Responsibility Damodar Valley Corporation Earnings before Interest & Tax Earnings before Interest, Tax & Depreciation and Amortisation Expansion Financial Year Government of India Joint Venture Kilowatt-hour Lakh Ton Million Ton per Annum Million Units Mega Watt Term NLCIL NNTPP NSE NTPL NUPPL OPM PAT PBT PSU ROCE RONW RTI SCOPE SME TANGEDCO TN TPS UP NLC India Limited Description NLC India Limited New Neyveli Thermal Power Project National Stock Exchange NLC Tamilnadu Power Limited Neyveli Uttar Pradesh Power Limited Operating Profit Margin Profit after Tax Profit before Tax Public Sector Undertakings Return on Capital Employed Return on Net Worth Right to Information Standing Conference of Public Enterprises Specialised Mining Equipments Tamil Nadu Generation and Distribution Corporation Limited Tamil Nadu Thermal Power Station Uttar Pradesh 28

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