Renovation, Modernization and Life Extension service of Power Plant Lack of available expertise in Indian market for Scope Determination of R & M projects Presented By: Sapath Dutta Gupta / GM – BD, Power & Systems TUV SUD South Asia Pvt Ltd, India TÜV SÜD Industry Service slide 1 / Dan Rosca 14-04-21 R & M and RLE

TÜV SÜD image presentation (Asia Pacific) 2017/4/12 Topics to discuss 1 TUV SUD: Corporate Overview 2 Lack of Technical Expertise for scope determination 3 Measurable benefits for the clients 4 Solution to overcome the problem for Lack of Technical expertise 5 Project References 14-04-19 R & M and RLE Department

Our heritage: 146 years of business success 12/04/2017 Establishment of a Mannheim-based steam boiler inspection association by 21 operators and owners of steam boilers, with the objective of protecting man, the environment and property against the risk emanating from a new and largely unknown form of technology 1866 First vehicle periodic technical inspection (PTI) 1910 1926 Introduction of the “TÜV mark / stamp” in Germany 1958 Development of a Bavaria-wide network of vehicle inspection centres in the late 1950s 1990s Conglomeration of TÜVs from the southern part of Germany to form TÜV SÜD and the expansion of business operations into Asia 2006 Expansion of services in ASEAN by acquiring Singapore-based PSB Group 2009 Launch of Turkey-wide vehicle inspection by TÜVTURK TÜV SÜD continues to pursue a strategy of internationalisation and growth Today 14-04-19 R & M and RLE TÜV SÜD Corporate Presentation

TÜV SÜD in numbers: Growing from strength to strength 12/04/2017 1 one-stop technical solution provider 150 years of experience 800 locations worldwide 1,820 million Euro in sales revenue 2012 18,800 Speakers notes This slide provides you with a quick overview of TÜV SÜD in numbers. We are a 1 stop technical solution provider, powered by about 150 years of experience in the safety, quality and sustainable business. With 800 locations worldwide and a stable revenue of 1.7 billion Euros, our 17,200 employees act as process partners to our customers wherever their business is located. employees worldwide TÜV SÜD 14-04-19 R & M and RLE TÜV SÜD Corporate Presentation

Global expertise. Local experience. 12/04/2017 Global Headquarters: Munich, Germany INTERNATIONAL Euro 690 mio 8,600 staff GERMANY Euro 1,130 mio 10,200 staff Legend: Countries with TÜV SÜD offices Regional headquarters 14-04-19 R & M and RLE TÜV SÜD Corporate Presentation

Technical expertise & broad industry knowledge 12/04/2017 Testing & product certification Inspection Auditing & system certification Knowledge services Training Chemical, physical, mechanical, electrical and environmental testing and product certification. Product, system, building, plant and infrastructure inspection. Audits system certification in a variety of fields including quality, safety, energy, social compliance and environment. Safety, quality, risk, environmental protection and regulatory advisory. Training in work safety, technical skills, management systems and executive programs. Speakers notes Our technical expertise and broad industry knowledge enable us to provide the following technical services: Testing & product certification Inspection Auditing & system certification Knowledge services: Technical support such as design reviews and identification of resource optimization. Training 14-04-19 R & M and RLE TÜV SÜD Corporate Presentation

INDUSTRY: Minimise risks. Optimise results. 12/04/2017 Chemical, oil & gas Power & energy Manufacturing & industrial machinery Services for investors, operators and equipment manufacturers of upstream, midstream and downstream installations include: Quality assurance and control Periodic inspection Owners’ engineer Acceptance checks and tests Material testing Auditing System certification Training Services for investors, owners, operators and equipment manufacturers of conventional, nuclear and renewable energy plants include: Due diligence Design reviews Risk management Owners’ engineer Construction monitoring Material testing Periodic inspection Regulatory compliance assessment System certification Training Services for components manufacturers, contractors, installation providers, equipment & material manufacturers and operators include: Component testing Periodic inspection of equipment Failure analysis System certification Training 14-04-19 R & M and RLE TÜV SÜD Corporate Presentation

CERTIFICATION: Achieve market success 12/04/2017 Manufacturing & industrial machinery Consumer products & retail Healthcare & medical devices Telecommunications & IT Services for components manufacturers, contractors, installation providers, equipment & material manufacturers and operators include: Component testing Periodic inspection of equipment Failure analysis System certification Training Services for manufacturers, retailers, buyers and suppliers of electrical & electronics, food, health & beauty, hardlines, softlines, toys & children’s products: Testing Auditing Inspection Product certification Knowledge services System certification Training Services for medical device manufacturers and healthcare providers include: Clinical approvals Market approvals and certification Testing Evaluation Quality control System certification Training Services for equipment manufacturers and operators of infrastructure equipment and radio frequency wireless equipment include: Design reviews Testing Software escrow Product certification System certification Training 14-04-19 R & M and RLE TÜV SÜD Corporate Presentation

Blue solutions for a sustainable future 12/04/2017 Energy efficiency Services for manufacturers, planners, owners and operators of buildings, products and equipment, production plants, power plants, municipalities and regions include: Energy audits Energy optimisation Energy efficiency certification Testing Product certification Compliance evaluation System certification Training Renewable energy Services for investors, manufacturers and operators of biomass, geothermal, hydropower, photovoltaic, solar thermal and wind components and plants include: Feasibility & bankability assessments Construction monitoring Safety and licensing support services Equipment and component testing and certification Periodic inspection Training 14-04-19 R & M and RLE TÜV SÜD Corporate Presentation

Credentials TÜV SÜD South Asia is accredited by: Central Electricity Authority (CEA) Bureau Of Energy Efficiency [BEE : Regulatory Body for Energy Efficiency, Ministry of Power, Govt. of India.] Gujarat Energy Development Authority [GEDA] Ministry of New & Renewable Energy [MNRE] Petroleum Conservation Research Association [PCRA] Maharashtra Energy Development Authority [MEDA] Indian Green Building Council ( IGBC ) / Confederation of Indian Industry ( CII ) 12 April 2017

Footprint in South Asia TÜV SÜD South Asia is a fully owned subsidiary of TÜV SÜD AG Operating in India since 1995 Extensive network of over 30 offices including 12 labs across India, Bangladesh and Sri Lanka Employee strength of over 1500 Sales revenue of Rs.170 crore in 2013 Over 12000 customers 14-04-19 R & M and RLE

CPP Competency Hub at TÜV SÜD TÜV SÜD Conventional Power Plant Competence Hub is a complete solution in order to determine the necessary technical, regulatory, jurisdictional and economical viable measures for New Building / In-Service inspection / R & M / LE of Power Plants The Competence Hub has a highly trained and a highly qualified team of Experts, coordinated and managed from Munich, Germany The Competence Hub has a multinational, multicultural and very experienced team of Experts The Competence Hub has an international global approach, with local TÜV SÜD Experts & expertise involved The Competence Hub has an extensive international experience proved by the reference list, with similar jobs completed worldwide 14-04-19 R & M and RLE

Topic of Presentation Lack of available technical expertise in Indian market for Scope Determination of R & M projects 14-04-19 R & M and RLE

Owner Operator of Power Plant Limited agencies to carry out R&M studies competently because of lack of technical expertise. Lack of internal expertise to evaluate actual condition of equipment and costs for repair / renovation Cost escalation on account of surprises found during project execution and the difficulty to build them into the contract Problems of ensuring expected and sustained plant performance after completion of R&M 14-04-19 R & M and RLE

Bidders Time gap between study of RLA and actual initiation of R&M bidding process Uncertainty about the exact scope of work which makes it difficult to estimate the actual work to be undertaken Unforeseen items / surprises during execution and impact on cost – how to build them into the estimate and how to reduce risk on this account. Functional Guarantees which form part of the contract are often difficult to achieve owing to lack of clarity on how verification will be carried out. World Bank requires that the R&M Consultant shall do the energy audit / baseline assessment for the identified thermal power station. 14-04-19 R & M and RLE

Accuracy of the estimated costs Funding Agencies Accuracy of the estimated costs Ensuring a strategy that takes care of unforeseen items / surprises and their impact on project cost and time for execution Delays in regulatory clearances Lack of appropriate infrastructure for project execution Ensuring that the study preceding the preparation of Detailed Project Report reflects actual conditions in the plant Credit worthiness of the utilities Material market fluctuations 14-04-19 R & M and RLE

Regulator The regulator is concerned about the justification of the expenditure on R&M projects and would like to ensure that the investment results in the least additional cost to the public for the power generated after R&M. An objective judgment of the justified expenditure is complicated since it is difficult to establish which portion of the expenditure is based on genuine LE requirements and what is needed to make up for poor O&M practices. 14-04-19 R & M and RLE

Measurable benefits for the clients 14-04-19 R & M and RLE

Measurable benefits for the clients Performance assessment as per ASME standard and by using online calibrated inspection instruments. Cost reduction by using a single team of highly qualified Experts Our services add certain value measured by the client in terms of time reduction, cost savings, safety and quality TÜV SÜD Brand Name has a world wide recognition for technical competence, for independence, for impartiality and for reliability of the services provided TÜV SÜD Brand Name is recognized and accepted by Finance sector, by Insurance sector and by Jurisdictional authorities 14-04-19 R & M and RLE

Advisory services along the capital value chain Investment Operation Feasibility Planning Procurement Construction Commissioning In-service Rehabilitation Decommissioning Refurbishment Decommissioning Owner´s Engineer Technical Advisor TDD QA / QC Plant Status Assessment Retrofit Management Compliance Certification Plant Optimization Failure Analysis (RCFA) Licensing Consenting Pre-Qualification Claim Management In-service Inspection Efficiency Consultancy Tender & Contract Management Performance Tests Asset life cycle - 7 project steps Design Review Design Approval Noise / Vibration / Emissions Testing Due Diligence (TDD - technical, EDD - environmental) Staff Training / Qualification 13-12-06 I

Advisory services along the capital value chain Investment Operation Feasibility Planning Procurement Construction Commissioning In-service Rehabilitation Decommissioning Refurbishment Decommissioning Owner´s Engineer Technical Advisor TDD QA / QC Plant Status Assessment Retrofit Management Compliance Certification Plant Optimization Failure Analysis (RCFA) Tender & Contract Management Pre-Qualification Claim Management In-service Inspection Efficiency Consultancy Design Review Design Approval Performance Tests Asset life cycle - 7 project steps Noise / Vibration / Emissions Testing Due Diligence (TDD - technical, EDD - environmental) Staff Training / Qualification 14-04-19 R & M and RLE

Solution to overcome the problem for Lack of Technical expertise 14-04-19 R & M and RLE

Need for standardization The large fleet of 200/210 MW units which are coming up for R&M provides an opportunity to standardize documents for tendering for R&M to ensure acceptable levels of quality and to harmonize the requirements of all the stakeholders to a reasonable level of satisfaction to permit efficient execution of projects in this crucial programme to meet the power needs of India. 14-04-19 R & M and RLE

Operational Goal The management of a CPP rehabilitation / modernization (R&M) has to monitor the fulfillment of some important operational goals for entire plant, as: Plant load factor improvement; Plant heat rate increasing, as well as component individual efficiency; Plant availability and reliability increasing; Parts life extension; Environmental performances improvement. 14-04-19 R & M and RLE

Performance evaluation tests (PET); Energy Efficiency, Condition Assessment & RLA consultancy from a single source Detailed Project Report (DPR) preparation, on which purpose, some studies and evaluations may be necessary, that means: Performance evaluation tests (PET); Energy audit (EA) on main CPP parts/systems; Residual Life Assessment (RLA) on all relevant parts, subjected to mechanical, thermal and chemical stresses; Condition Assessment (CA) 14-04-19 R & M and RLE

RLA consultancy & Performance Guarantee from a single source Technical Assistance After DPR elaboration, the project Consultant will assist the customer /owner in preparing as follows: Preparation of Specification for EPC Contractor selection; Bid documents and evaluation; Preparation of Quality Plan; Procurement supervision; Erection & Commissioning supervision. Performance Guarantee 14-04-19 R & M and RLE

BTG & BOP consultancy for RLA from a single source In case of a general R&M plant consultancy, the scope of works has to cover the following systems : Boilers and Auxiliaries; Turbines and their Auxiliaries; Generators and their Auxiliaries; Power Transformers (generator, auxiliary units, switch yard); Balance of Plant (cooling water, compressors, motors, piping, switch gear panels, Hydrogen generation); Instrumentation & Control (including distributed control system); Coal & Ash Handling Systems (if the case); Civil & Structures (RLA, concrete works, machine foundations, steel structures). 14-04-19 R & M and RLE

Repair Supervision from a single source. A CPP parts/systems repair process has to fulfill the following important Operation & Maintenance (O&M) goals: Plant availability and reliability increasing; Parts life extension; Minimization of maintenance costs; Inventory optimization; Environmental performances observance. The parts repair / replacements occur typically during the plant overhauls, as regular scheduled maintenance activities. Repairs due to part damaging (causing unexpected breakdowns) are incidental cases, which will be treated as special interventions. 14-04-19 R & M and RLE

Project References 14-04-19 R & M and RLE

TÜV SÜD: References for Fluidized Bed Boilers Year Client Location Boiler technology / Steam parameter Fuel / SOx emission limit TÜV SÜD Services ongoing Bertsch. Austria / Outotec, Germany Çorlu, Turkey   Bubbling fluidized bed 96 t/h (62 bar, 380°C) Fuel mix: biological sludge, paper sludge, rejects, natural gas, etc. SOx < 50 mg/Nm³ Design examination boiler assembly                  Design examination external piping and balance of plant (BoP) Final assessment boiler and BOP assembly         BASF, Germany Ludwigshafen, Germany 2x 80 MW(th) Fuel mix: industrial sludge, coal, light oil In-service inspections, Notified Body UPM, Germany Schongau, Circulating fluidized bed 50 MW(th) Paper waste 2011-2013 Kraftanlagen München, Germany / Foster Wheeler, Finland Kladno , Czech Republic 326 MW(th) Lignite Design examination external piping and balance of plant (BoP) Final assessment boiler and BOP assembly       2009-2010 Stora-.Enso, Germany Karlsruhe-Maxau, Germany 156 MW(th) Fuel mix: paper waste, biomass, hard coal Construction supervision, Nofified Body, Site acceptance test 2008-2009 hse, Germany Strambolijski, Bulgaria 42 t/h (100 bar, 480°C) Biomass Design Examination               Final assessment at workshop (Romania) Final assessment on site Assembly           2007 -2008 Austrian Energy & Environment, Austria Wittenberg,  62 t/h (160 bar, 535°C) Final assessment at workshop (Croatia) Final assessment on site Assembly  2003 - 2004 Alstom, Canakkale, 2x160 MWe Lignite, Manufacturing supervision, Compliance certification, Design review , Design approval, Site acceptance test 12.04.2017

TÜV SÜD: References for Lignite Fired Power Plants Year Client Location El. Output Fuel , Combustion Technology TÜV SÜD Services 2011-2013 Kraftanlagen München, Germany / Foster Wheeler, Finland Kladno , Czech Republic 135 MWe Lignite, Circulating fluidized bed Design examination boiler assembly                  Design examination external piping and balance of plant (BoP) Final assessment boiler and BOP assembly       2010 Vattenfall, Germany Schwarze Pumpe, Germany 2x 750 MWe Pulverized coal firing Evaluation and optimization of the O&M scheme for the entire power plant (boiler, steam turbine, balance of plant, etc) 2003/2004 Alstom, Canakkale, Turkey 2x160 MWe Manufacturing supervision, Compliance certification, Design review , Design approval, Final assessment on site 1997-2000 Boxberg (Block Q), 860 MWe Manufacturing supervision, Design review , Design approval, Construction supervision, Final assessment on site / Site acceptance test 2006 Vemagiri Power Generation Limited, GMR Group (India) Vemagiri, AP India 388 MW Combined Cycle Gas Turbine Power Plant Thermal Performance Test on Combined Cycle Power Plant Vemagiri, India, 2009 RRVUVN Kali Sindh Thermal Power Project Kali Sindh & Chhabra India 2 x 600 MW and 2 x 25 MW Coal Third Party Inspection of structural steel fabrication and erection of main power house building and mill building of 2 x 600 MW Kali Sindh Thermal Power Project and 2 x 250 MW Chhabra Thermal Power Project 2008 Reliance Sasan Mega Power Project Sasan, India 6 x 660 MW Third Part Inspection services of all the pipelines of the Balance of Plant for 6 x 660 MW Sasan Mega Power Project 2005 to 2008 BHEL Santaldih ( Unit V) Project Santaldih, India 1 x 250 MW Field Quality Assurance Services for Civil, Structural, Boiler & Piping, Electrical & C & I Works and Safety Services at 1 x 250 MW Santaldih ( Unit V) Project 12.04.2017

TÜV SÜD: References for Lignite Fired Power Plants Year Client Location El. Output Fuel , Combustion Technology TÜV SÜD Services 2011 Essar Power Limited Hazira, Gujarat, India Coal Energy Audit of a Power Plant 2012 Nalwa Steel and Power Ltd Raigarh, India G.R. Sponge & Power Ltd 2014 Hira Power & Steel Ltd 12.04.2017

TÜV SÜD image presentation Asia Pacific 2017/4/12 Thank you for your attention. April 12, 2017 Sapath Dutta Gupta TÜV SÜD South Asia General Manager - Business Development Industrial Services - Power & Systems   TÜV SÜD South Asia Pvt. Ltd. Solitaire, 4th Floor, ITI Road, Aundh, Pune - 411 007, Maharashtra, India. Boardline : +91-020-66841212 Directline : +91-020-66841215 Cell : +91-7767803522 Fax            : +91-020-66841261 E-mail        : sapath.duttagupta@tuv-sud.in Website     : www.tuv-sud.in 12 April 2017 Department