THE 84th ANNUAL GENERAL MEETING WELCOME TO THE 84th ANNUAL GENERAL MEETING August 4, 2003

1. FY 03 Highlights 2. The Road Ahead Contents 1. FY 03 Highlights 2. The Road Ahead

1. FY 03 Highlights

Overall – Income Statement Rs Crores Highest profit ever Profit from sale of Investments. FY 02 – Rs. 91 Crs. FY 03 - Nil PAT of FY 03 – after providing for Rs. 17 Crs of Dividend tax.

Overall - Generation (MUs)

Overall – Revenue Mix Rs. Crs

Other Businesses – Revenue Mix Rs. Crs Turn around year for the Strategic Electronics division (62% increase in revenue) Broadband commenced operations in March 03

Power Business Highlights Company’s islanding system operated successfully ensuring uninterrupted power supply In Mumbai on three occasions In Belgaum on fifteen occasions Pursuance for excellence ISO 9001:2000 for Trombay ISO 9001:2000 for Power System Division ISO 14001:1996 for Jojobera Greentech award for safety received for Jojobera & Trombay First utility in the country to implement IS-U/CCS powered by SAP R/3 for comprehensive customer service

Setting Standards in Emission Source : Price Waterhouse Coopers Report for TPC’s Fuel Strategy at Trombay

Environment friendly Trombay Thermal Power Station Emission Permitted Actual Sulphur di-oxide 24 tonnes/ day 23 tonnes/ day Particulate Matter 150 mg/ NM3 50 mg/ NM3 Ash generation 500 tonnes/day 30-50 tonnes/day

MPLS Enabled DWDM Network Broadband MPLS Enabled DWDM Network Borivali Saki Versova North-West Mumbai Dharavi Salsette Vashi IT Park Three Ring Backbone with Self Healing rings North-East Mumbai Backbay Mahalaxmi Mahape South Mumbai Bombay House Towards Pune

Strategic Electronics Some major “Products” Servo Controlled Platforms: For accurate positioning and tracking Ruggedised PCs: Shock and vibration resistant Extreme weather conditions (- 20 deg C to + 50 deg C) Ruggedised Work Stations: Faster than Rugged PCs Real time for mission critical applications On Board Computers: Inside missiles for guidance

Power Systems Projects commissioned in FY 03 114 Kms 132 KV transmission line in Nepal 33 / 66 KV sub-station and transmission line supplies in Myanmar Received contract (~ Rs. 150 Crs) to build the highest altitude transmission line in the country in Jammu and Kashmir 184 Kms 400 KV transmission line

2. The Road Ahead

GoI’s Vision 2012 Mission - “Power for All by 2012” Generating capacity to be increased from 107,500 MW to 212,000 MW Share of private sector to be increased from 10% to 16.5% Augment inter-regional power transfer capacity from the existing 9,800 MW to 30,000 MW. Recovery of the power cost through the realised tariff from 70% to 100%

GoI’s Vision 2012 (Contd.) T & D losses to be reduced from 40% to 13% Peak energy shortage to be brought down to 0 from the existing 13% Average energy shortage to be brought down to 0 from the existing 8% Commercial losses of Rs. 26,000 crores per year to be eliminated and sector made financially viable

* Rules and regulations to be formulated Electricity Act 2003 Provision Timeline Delicensing of generation Immediate Delicensing of captive power for users Open access in transmission Immediate* Power trading * Rules and regulations to be formulated

EA 2003 – Distribution Reforms Open Access – decision by States More than one licensee in same area Franchisee Generators’ choice to select consumers and vice-versa Rural areas – no license Distribution Sector Reforms for posterity

Organisational Transformation Action Plan Organisational Transformation * Tata Business Excellence Model TBEM* Cost Reduction Growth

Our Vision To be an excellent and efficient organization To be a significant player in the National Power Sector To participate in adjacent infrastructure businesses that provide opportunities for growth To be the best in the Tata Group To enjoy the journey with all our Stakeholders

Thank You