14 th Sustainable Energy Summit New Delhi : 25 th Nov., 2014 Sanjeev Gupta, Managing Director Financing Indian Solar Aspirations NEXGEN Financial Solutions Pvt. Ltd. Renewable Energy – Dynamic Role in Power Sector Success Strategies Presented by :

Financing Large Solar Projects GOI : 5yr Target & C S F  Tariff Assurance; ‘FiT v/s Bid’ ; Off-take Guarantees  Catalyze REC market for Solar projects ; make RPOs mandatory  Tax Exemptions ; Other fiscal incentives  Supplement (by GoI ) Revenue shortfalls Revenue  Inadequate Sources - RE ( incl. Solar) included in Energy Sector (at Banks)  Designate RE as Priority Sector Status: Lowering Cost of Debt  Long Tenor; Higher D/E - Better Leverage (Lower Equity)  Promote Innovative Financing : Takeout, Credit Enhancement & Refinancing Sources of Debt  Quasi Equity being accepted as Equity for DE Calculation  ROE to be ensured; Catalyze Eq. Contribution from NBFCs etc.  NFSM to be considered till grid - parity  ‘10/80/10’ model to be allowed for RE projects, at the earliest. Requirements of Equity 1  Aggregate: 1 Lakh MW ; PSUs: 40K ; Ministries:40K ; Pvt. Sec: 20K  Aggregate Project Cost : `. 6.5 L Cr  Debt : ` 4.5L to 5.2 L Cr ; ` Equity : 2 L Cr (approx)  CSF : Revenue Assurance, Availability of D & E, NFSM (VGF ) by GOI RE- Dynamic Role in Power Sector

NEXGEN : Overview Introduction  Power Generation : Govt, Public & Pvt. Sector (in Thermal,Hydro,Wind &Solar)  Power Transmission & Distribution : especially GETCO  Roads & Highways : Private Sector – MSRDC & NHAI Domain Area  Financial Advisor - Gujarat Solar Mission – 2009  Largest Solar Debt Syndicator – 23% GSM Share i.e around 10% National Share  Interest Savings : achieved for all Guajrat Companies since aggregating to ` Cr.  Catalyzing an Innovation & Incubation Fund (IIF) at PDPU, Gandhinagar. Focus : RE ( esp. Solar)  Valuation Advisors to : ExxonMobil Corporation, USA Schneider Electric, S.A First Solar Inc., USA Other Major Clients 2  A SEBI Registered Merchant Banker  Provides integrated Debt & Equity Solutions especially to the Energy Sector  Transactions aggregating ` Cr (US$ 8 bn approx.) including: - Gujarat State undertakings : ` 32,000 Cr. (approx.) ; Pvt. Sector : ` 10,000 - Other States : Maharashtra, Rajasthan, Andhra Pradesh, Himachal, Madhya Pradesh & others RE- Dynamic Role in Power Sector Nestle, S.A. LinkedIn Corporation, USA Fabindia Overseas Pvt. Ltd., India & others….

THANK YOU ! Further Deliberations Invited : Sanjeev Gupta, Managing Director 14 th Sustainable Energy Summit E: W : Renewable Energy – Dynamic Role in Power Sector