WELCOMES DISTINGUISHED INVITEES GUESTS April 2006 1 Corporate

WELCOMES DISTINGUISHED INVITEES & GUESTS April 2006 1

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 2

Company overview A national generation company, supplying electricity to all major states (28 states) Installed capacity of 24, 249 MW, 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 3

Key milestones to market dominance 1975 § 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. 2004 1997 § NTPC became a listed company with majority Government ownership of 89. 5%. § 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 becomes third Largest by Market Capitalisation of listed companies Stakeholder Value Creation 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. n Total shareholder’s Disciplined and focused investments aimed at maximizing returns; adherence to best practices Strong Management Sound business concept & team, Professional investment philosophy, High and dedicated standards of Corporate organization Governance funds of USD 10. 213 billion as on 31 st December 2005. n Total Asset base of USD 15. 409 Billion as on 31 st December 2005. 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 4

Corporate structure of NTPC group Subsidiaries 100% NTPC Vidyut Vyapar Nigam Limited 100% Pipavav Power Development Co. Limited NTPC Electric Supply Co. Limited 100% NTPC Hydro Limited Joint ventures 50% NTPC-SAIL Power Company Pvt. Limited 50% NTPC Alstom Power Services Pvt. Limited Bhilai Electric Supply Co. Pvt. Limited 50% NTPC Tamilnadu Energy Co. Limited 8% PTC India Limited 5 50% Utility Powertech Limited 28. 33% Ratnagiri Gas & Power Private Ltd

Key competitive strengths High off take security Proximity to fuel sources High operating and cost efficiency Low Operational Risk Profile Strong Relation with Government of India Strong management team with solid track record Strong credit ratings 6 Strategic importance to India Dominant market share in India

Market leader and dominant power provider in India 1. Market leadership – NTPC's share in total capacity and total generation in India Total capacity (All India 124, 237 MW) Generation (All India 617. 293 Bus) NTPC 24, 249 MW (19. 52%) 2. NTPC 170. 88 BUs (27. 7%) Tentative figures as of 31 st March 2006 3. NTPC’s contribution to total installed capacity Installed and generation capacity NTPC Generation CAGR 25% Vs All India 6. 70% NTPC Capacity CAGR 20% Vs All India 5. 30% 4. 5. 7 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 inhouse 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 nationwide footprint n Owns multi-fuel stations At multiple locations n n In addition, NTPC also manages Badarpur Thermal Power Station (705 MW ) of GOI in Delhi Source: Company Data NTPC is India’s premier national generating company 8

High off take security [source] n Commercially attractive source of power n Average selling price is US 3. 4 cents approx. per KWh in fiscal 2005 compared to: n Malaysia Average: US 6. 3 cents per KWH n Thailand Average: US 7. 2 cents per KWH n Singapore Average: US 9. 4 cents per KWH n Philippines Average: US 10. 5 cents per KWH n Supply decisions based on commercial principles n Allocation of power to customers with ability to pay n flexibility to reduce sale to defaulting Customers n Energy sale assured through long-term Power Purchase Agreements (“PPAs”) n Off take secure with entire output being contracted n Strong payment security mechanism in place n 25 years life span for coal supply agreement and 15 years for gas agreements n Realized 100% amounts due from SEBs Since fiscal 2004 n New collection mechanism has minimized delays in customer payments n 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 9

Proximity to fuel sources n Fuel constitutes nearly 70% of total operating costs n n Optimal cost and timely availability of fuel is a must Therefore, proximity to fuel sources is critical n Lower fuel transportation costs n 9 of the 13 coal based stations are “pit head” plants n Most gas fired plants located along major gas pipelines n NTPC has fuel linkages tied-up prior to commencement of construction n Furthermore, NTPC has secured fuel sources via allotment of 8 mining blocks 10

Leads to high utilisation rates Capacity Utilization Turn Around Ability 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 ’ 05 Recorded highest ever PLF of 87. 5% 11

Operating efficiency Low cost operations… Supply price (in US cents per k. Wh. ) Source: S&P Report Generation per employee Exchange rate used: 1 USD = 45. 07 INR 12

Project Implementation … a proven track record Reducing project completion time n Track record in project implementation and completion n An integrated system for planning, scheduling, monitoring, control of projects and capital costs n Strong in-house engineering strength 13

Low Operational Risk Profile Diversified Generation Portfolio Reduced Tariff Collection Risk Minimal External Risk due to “Pass Thru” Tariff Low Off-take Risk n Low site risk – generating stations spread across 20 locations in India n Minimal risk of coal unavailability – favourable position of most of its coal based stations at mine mouths n Billings secured by Letter of Credit n In case of default, NTPC has access to Central Government’s fund allocation to State n Tariff, as determined by CERC, enable complete pass through of changes in fuel cost and foreign exchange to the customer n With the announcement of Tariff Policy in Jan 06 the uncertainty of determinants of Tariff is eliminated n Long term power purchase agreements with SEB n Energy deficient market and NTPC’s cost competitiveness minimize offtake risk 14

Strong Relationship with Government of India n Navratna status has given autonomy in making investment decisions n Facilitated tripartite agreements for one time settlement of outstanding dues and future payment security n Supported new initiatives: n Coal mining n Participation in LNG value chain n Entry into power trading, distribution and hydro power generation n Assigned NTPC the consultant role to modernize and improve several plants across the country n Partnering in GOI Rajiv Gandhi Grameen Vidyutikaran Yojana n Chose NTPC to disseminate technologies to other players in the sector 15

Partners in Progress - NTPC’s Contribution to National Reform n 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. n NTPC has been assigned a role of consultant for undertaking Renovation and Modernization of old plants of State Utilities. n NTPC has been appointed as advisor cum consultant for Project Monitoring and quality Assurance and inspection of assigned Accelerated Power Development & Reforms Program projects. n NTPC also provides training to engineers of state electricity boards through its Power Management Institute. n Assigned Rural Electrification work under Rajiv Gandhi Grameen Vidyutikaran Yojana Scheme 16

Strong credit ratings Current credit rating Standard & Poor’s: BB+ (Stable outlook) Fitch: BB+ (Stable outlook) S&P Fitch n “Standard and Poor’s believes the government n “The rating reflects NTPC’s strong operating 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. ” record, its cost competitiveness relative to its domestic peers, and its strong financial profile based on low debt levels and stable cash flows” n “NTPC is largely insulated against a significant n “The rating also reflects NTPC’s flagship status 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 minemouth locations, resulting in lower fuel transportation costs, and a lower risk of interruption in fuel supply. ” as a leading CPSU and its market prominence as the largest generator in India” n December 2005 n January 2005 17

Snap Shot of growth strategies Maintain sector leadership position through rapid capacity expansion Further enhance fuel security Prudent financial strategies Other initiatives Exploit new business opportunities Technology initiatives 18

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 19

Revenues & Income Operating revenues (Million USD) % CAGR = 8. 8 Net income (Million USD) . 4% CAGR = 20 Exchange rate used: 1 USD = 45. 07 INR 20

Financial discipline Capital structure n Diversified sources of funds n Prudent financial profile - Debt to Net Worth of 0. 41: 1 n Highest ever dividend for fiscal 2005 @ 24% Dividend policy n Interim dividend for fiscal 2006 @ 20%. n NTPC will continue to balance dividend pay-out and growth to take advantage of country’s deficit power position n Access to large credit lines, both from financial institutions, Banks, Multilateral and Liquidity Bilateral agencies n Net cash flow of USD 1. 12 bln generated from operating activities in FY 2004 -05 n Leveraging borrowing with a debt-to-equity ratio of 70: 30 Exchange rate used: USD = 45. 07 INR 21

In a nutshell Dominant market share in India 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 Strong Financial Position 22 Government support High off take security

Industry Dynamics

Industry dynamics n Energy is an industry essentially driven by GDP and disposable income growth Global drivers n India’s GDP outlook remains strong with demand for energy expected to rise significantly in the future High potential for growth Per capita energy consumption in kwh (CY 2002) India - A supply deficit power market 591 600 559 580 World avg. Positive supplydemand balance (Demand expected to outstrip supply) 2, 465 560 13, 456 USA 11, 299 Australia 6, 614 UK 2, 183 Brazil China 1, 484 Egypt 1, 287 India 546 569 523 540 520 500 480 460 440 7. 1% 8. 8% 507 7. 5% 548 519 498 7. 8% 483 467 2001 2002 Requirement Source: UN Development Program, Human Development Indicators, 2005 7. 3% 2003 Availability 2004 % Energy Deficit All figures are in bn units, except where stated otherwise Source: Annual Report, Ministry of Power, 2002 -2003, CEA Executive Summary India is a very attractive energy market Demand has consistently outstripped supply in the last few years 24 2005

Industry dynamics – New initiatives National Electricity Policy Tariff Policy Competitive Bidding Process Appellate Tribunal Rajiv Gandhi Grameen Vidhyutikaran Yojana n Providing policy guidance to Electricity Regulatory Commissions and to Central Electricity Authority (CEA) for preparation of National Electricity Plan n Provides guidance to regulatory commission for tariff setting n Guidelines for procurement of electricity through competitive bidding n Has been set up to expedite the process of settlement of appeals against the rulings of regulatory commissions n For providing electricity to all rural households in five years n A joint venture company namely ‘Ratnagiri Gas and Power Private Limited’ Revival of Dabhol Power Project Launch of Ultra-Mega Power Projects with shareholding of NTPC, GAIL, Indian Financial Institutions and Maharashtra State Electricity Board has taken over the assets of the Dabhol Power Project n Government is facilitating the setting up of ultra-mega power projects with capacity of 4000 MW each 25

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 26

DISCLAIMER 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 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 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 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, could have been or could be converted into United States Dollars at such a rate or any other rate.

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