INTRODUCTION Indian Power Sector Power sector is going through a hyper growth phase.

Power or electricity is one of the most critical components of infrastructure affecting economic growth and wellbeing of nations. The existence and development of adequate infrastructure is essential for sustained growth of the Indian economy. Infrastructure Power or electricity is one of the most critical components of infrastructure affecting economic growth and wellbeing of nations. The existence and development of adequate infrastructure is essential for sustained growth of the Indian economy. Infrastructure investment in India is on the rise, but growth may be constrained without further improvements. The power sector provides one of the most important inputs for the development of a country and availability of reliable and inexpensive power is critical for its sustainable economic development. To sustain GDP growth rate of around 8-9 %, it is imperative that the power sector also grows at the same rate. Even after the considerable growth in the power sector infrastructure and the supply of electricity, many parts of the country continue to face severe power shortages as consumption by commercial and industrial consumers has been increasing at much faster rate than electricity supply. Power is one area of infrastructure where India lags far behind even in comparison to other developing countries. The per capita annual consumption of electricity in India is one of the lowest in the world at approximately 734(2008-09) kwh

History and Evolution Power Sector has come a long way since Independence.

Electricity, as we know it, is largely a product of eighteenth and nineteenth century scientific and engineering developments. Many electro-scientific discoveries were made in the early part of the nineteenth century, but it was only when significant engineering breakthroughs were made resulting in the development of electro-mechanical generators and transformers that substantial amounts of electricity could be produced and distributed. Very soon it became possible to generate electricity at large central power stations, where economies of scale meant that widespread electrification switched from dream to reality. The US was the first country that generated electricity followed by United Kingdom after 6 years. CESC Limited is the pioneer in the history of generation of electricity in India. It commenced power generation and distribution in Kolkata, in 1899. CESC started as Kilburn & Co when the company acquired the license to provide electricity to Calcutta city on January 7, 1897. The electrification of Kolkata city took place seventeen years after New York, which boasted of Electricity in 1882 and eleven years after London, which was electrified in 1888. India also started hydro electric generation by the end of 19th century. The power plant at Darjeeling and Shimsha (Shivanasamudra) was established in 1898 and 1902 respectively and is one of the first in Asia. The 4.5 megawatt hydroelectric power station near Sivasamudram falls of the Cauvery in Karnataka was the first major power station in India. The Indian power sector has been regulated for almost a century and the Electricity Act 1910 was the first act that was introduced to govern the Indian power sector. The Electricity (Supply) Act 1948 was introduced after independence, but it did not achieve the desired results. , as the power sectors performance started to deteriorate and a need was felt to restructure the sector. Several regulatory changes were made since 1991, which transformed the industrys performance. Based on the governments regulations and policies, the evolution of the Indian power industry can be divided into two broad phases, pre-reform and post-reform phases. The pre-reform phase

(up to 1991) can be divided into pre-independence phase (prior to 1947) and post-independence phase (1947-1990) and post-reform phase. Post-independence, the Government of India decided to entrust the development of the electricity sector to respective states through the creation of State Electricity Boards (SEBs). SEBs were expected to develop networks of transmission lines which till then had been quite underdeveloped, and add generation capacity. But SEBs fared miserably and by the 70s, many of the SEBs started incurring losses because of many factors including direct political interference in SEBs operation by their respective governments, mismanagement, poor industrial relations, etc. The low tariffs for agricultural sector were sought to be covered through higher tariffs on industrial and commercial consumers. But the distortions of such cross subsidization, resulted in increasing theft and leakages, loss of accountability of revenue and misreporting. Losses of the SEBs mounted this made SEBs increasingly dependent on budgetary allocations from their respective governments reducing their ability to add generating capacity, and most importantly to carry out the periodic maintenance and upkeep of their distribution assets. Given the deteriorating financial performance and poor operating performance of SEBs, the onus of setting up new generation capacities fell increasingly on the Central Government. It was in such a situation that the central government set up two central sector utilities; NTPC (National Thermal Power Corporation Limited) for thermal generation and NHPC (National Hydro Power Corporation Limited) for hydro power. Over the 1980s, energy shortages and poor financial condition of SEBs continued. The need to control fiscal deficit led to initiation of reforms in the Electricity Sector in early 1990s with opening of the sector for private Independent Power Producers (IPPs). Following the liberalisation and reform of the economy in 1991-92, the electricity sector too witnessed major policy and regulatory initiatives. Recognizing that electricity and other infrastructure sectors required substantial investments in the face of resource constraints; investment by the private sector (including foreign capital) were allowed in electricity generation. Prior to this, save some private sector licensees operating in a few urban areas, the electricity sector was mostly in the hands of state electricity boards (SEBs) or central government owned utilities created to supplement the efforts of SEBs in generation and

transmission sub-sectors. As the entities got unbundled and the role of the private sector in electricity was set in motion through the IPPs, the need for independent regulators was obvious since now there was private sector when the state itself had a significant market role. The institution of independent regulation, the Central Governments guidance and direction of reform efforts, unbundling of the sector, legal initiatives to bring in competition, programmes to improve technical and operational efficiency of the sector to effectively procure power on a long term basis on behalf of state governments, have been initiated since then. The changes that these initiatives have brought about, while significant, have not necessarily been in the direction intended, and the core problems of leakage, viability of distribution, tariff reform and competition still remain to be addressed successfully. The most important amongst all the policies announced by the government is the enactment of the Electricity Act. The year 2003 marked a new beginning of reforms in the Electricity Sector in India with enactment of the Electricity Act replacing the legal framework for the sector hitherto governed by the Electric Supply Act of 1948 and the ERC Act of 1998. There have been a slew of regulatory changes after the enactment of the Electricity Act in 2003 which have opened up the power generation sector and driven the sector on a high growth trajectory. In pursuance of the provisions of the Electricity Act 2003, the Central Government came out with National Electricity Policy on 6th February 2005. Over the past few years, the Government of India has undertaken several legislative measures and carried out extensive policy reforms with a view to accelerating the growth of the power sector and encouraging greater private participation. Some of these measures include National Tariff Policy, National Electricity Plan, Competitive Bidding Guidelines, and Ultra Mega Power Projects. Now 100 percent Foreign Direct Investment (FDI) is allowed in generation, transmission and distribution segments. Incentives are given to the sector through waiver of duties on capital equipments under the Mega Power Policy. These policy initiatives have resulted in building up investor confidence in the power sector and have created an ideal environment for increased participation by the private sector.

Demand Supply Situation India today is the third largest producer of power in Asia. The Indian power sector has grown significantly since 1947 and India today is the third largest producer of power in Asia. The power generating capacity has increased from 1,362 MW in 1947 to over 160,000 MW by mid of 2010. Despite significant growth in electricity generation over the years, the shortage of power continues to exist primarily on account of growth in demand for power outstripping the growth in generation and capacity additions in power generation. Historically, India has experienced shortages in energy and peak power requirements. The average energy deficit was 9.1 percent and the average peak power deficit was 12.8 percent between 2003 and 2010. The gap between demand and supply has not decreased in the last few years, leading to persistent power shortages.

Generation Statistics Power generation capacity has increased from 1,362 MW in 1947 to 160,000 MW by mid of 2010.

As of March 31, 2012 India had an installed power capacity of almost 2,00,000 MW Hydro Thermal Coal STATE PRIVATE 27,380 49,457 2,525 23,450 39,115 Gas 4,965 6,713 6,702 Diesel Total 603 597 0 55,025 30,761 45,817 0 0 4,780 Nuclear R.E.S. (MNRE) 3,514 20,990 0 24,503 85,919 54,276 59,683 199,877 Total

CENTRAL 9,085 TOTAL

38,990 112,022 18,381 1,200

131,603 4,780

Regulatory Developments The government has introduced regulations providing opportunities in the sector.

Recent Developments There have been multiple reforms aimed at increasing participation and introducing competition in the sector. The government is keen to provide a level playing field for all participants and has hence introduced regulations providing opportunities in domains earlier not available to the private sector and more clarity on various aspects. The government is also taking a long term view of how things ought to be shaped and has introduced regulations which will help in the long and sustainable growth of the sector. Some key regulatory changes have been introduced recently were as below: Regulation on Renewable Energy Certificates (REC) The REC regulation provides an opportunity for the Renewable Energy (RE) generators either to sell the renewable energy at preferential tariff fixed by the State Electricity Regulatory Commissions (SERC) or to sell the electricity generation and environmental attributes associated with RE generation separately, which can be exchanged in the form of REC. Considering the scope of getting high returns, the new regulation is expected to stimulate extensive capacity addition in renewable energy. Terms and Conditions For Tariff Determination From Renewable Energy Sources Regulations, 2009 The regulations provide normative capital costs for projects based on different renewable technologies. The normative Return on Equity shall be pre-tax 19 percent per annum for the first 10 years and Pre-tax 24 percent per annum 11th year onwards. The high returns will encourage more capacity addition in renewable energy segment.

Jawaharlal Nehru National Solar Mission Launch of Jawaharlal Nehru National Solar Mission (JNNSM), which aims to ensure that solar energy technologies in the country achieve grid parity by 2022. It has plans for deployment of 20 GW of solar power by 2022. The programme is going to act as a propellant for growth and development of renewable energy in the Country. Regulations on Transmission Pricing The new regulation is a big improvisation over the existing methodology of sharing of transmission charges & losses. The new approach is distance and direction sensitive and addresses various lacunae in the existing model Power Market Regulations Provisions of these regulations would govern transactions in various contracts related to electricity. These regulations shall apply to various types of inter-state contracts related to electricity whether these contracts are transacted directly, through electricity traders, on power exchanges or on other exchanges. The regulations are expected to boost the implementation of open access of power in the country and result in an efficient price discovery.

Future Outlook Future holds greater role of private sector in power generation and increase in FDIs.

Proposed Capacity Additions during 11th Plan (2007-12):The 11th Plan recommends generation planning based on an estimated 9.5% growth in required energy each year. As a result, a capacity addition of 78,577 MW is recommended in the 11th Plan as given below: Sector Central Hydro 9,685 Thermal 26,800 Nuclear 2,658 Total (%) 39,865 (50.7%) 27,952 (35.6%) 10,760 (13.7%) 78,577 (100%)

State

3,605

24,347

Private

3,263

7,497

All India

16,553

58,644

3,380

Source: Working Group on Power-11th Plan (2007-12)

Required capacity additions foreseen by the 12th Plan: The requirement of installed capacity and capacity addition to meet the generation requirement during the 12th Plan period is given in table below: Capacity addition required during 12th plan (2012-17): GDP Growth GDP / Electricity Elasticity Electricity Peak Demand Installed Generation (MW) Capacity Required (BU) (MW) Capacity Addition Required During 12th Plan (MW) 70,800 82,200 82,200 94,300 92,800 107,500

8%

0.8 0.9 0.8 0.9 0.8 0.9

1,415 1,470 1,470 1,532 1,525 1,597

215,700 224,600 224,600 233,300 232,300 244,000

280,300 291,700 291,700 303,800 302,300 317,000

9%

10%

Source: Working Group on Power-11th Plan (2007-12) Under various growth scenarios, the capacity addition required during 12th plan would be in the range of 70,800 - 107,500 MW, based on normative parameters. The 11th Plan Working Group recommends a capacity addition of 82,200 MW for the 12th Plan based on the scenario of 9% GDP growth rate and an elasticity of 0.8%.

Long term demand of power The Ministry of Power has set a goal - Mission 2012: Power for All. Based on the 17th EPS, the total energy requirement in India will increase to 968,659 GWh by fiscal year 2012, 1,392,066 GWh by fiscal year 2017 and to 1,914,508 GWh by fiscal year 2022. This would lead to an annual Electric Peak load of 152,746 MW in fiscal year 2012, 218,209 MW in fiscal year 2017 and 298,253 MW in fiscal year 2022. The northern region is expected to contribute 30.1% and the western region contributes 28.4% of the overall annual electric peak load in fiscal year 2022. The Government has estimated the total investment potential of the sector at Rs. 9,000 billion for a specified period up to fiscal year 2011. This represents a significant opportunity for capacity expansion and growth opportunity for power generation companies, both in the public and the private sector Current outlook of generation capacity addition In line with the aggressive targets set by the government, a comprehensive Blueprint for Power Sector development has been prepared encompassing an integrated strategy with following objectives

Sufficient power to achieve GDP growth rate of 8%; Reliability of power Improved quality of power Optimum power cost to ensure availability at affordable prices; and Commercial viability of power industry to make it attractive for private sector participation.

The Government, through the Ministry of Power, has laid out the following broad strategies to achieve the objectives:

Power Generation Strategy: focusing on low cost generation, optimization of capacity utilization, controlling input costs, optimization of fuel mix, technology upgrades and utilization of non-conventional energy sources;

Transmission Strategy: focusing on developing the National Grid, including interstate connections, Technology upgrades and optimization of transmission cost;

Distribution Strategy: achieving distribution reforms by focusing on system upgrades, loss reduction, theft control, consumer service orientation, quality power supply commercialization, decentralized distributed and supply for rural areas

Regulation Strategy: protecting consumer interests and making the sector commercially viable;

Financing Strategy: to generate resources for required growth of the power sector; Conservation Strategy: to optimize the utilization of electricity with a focus on demand side management, load management and technology upgrades to provide energy efficient equipment; and Communication Strategy: forming political consensus with the media support to enhance public awareness.

Key risks in the sector

Power sector is a highly capital intensive business with long gestation periods before commencement of revenue streams (construction periods of 4-5 years) and an even longer operating period (over 25 years). Since most of the projects have such a long time frame, there are some inherent risks in both the internal and external environment. We monitor the external environment and manage our internal environment to mitigate the concerns on a continuous basis. Some of the key concerns being faced by the sector currently are. Coal supply position More than 50 percent of Indias generation capacity is coal based. According to the Integrated Energy Policy, by FY31-32, India requires 2,040 million tonnes of coal for power generation, more than 5 times its current consumption levels. The shortage of coal is so acute that most of the power generation companies are looking at imported coal as a viable alternative to domestic coal.

Coal requirement of power sector (in million tonnes per annum) Target CAGR 8% Target CAGR 8%

Increasing importance of the private sector India has emerged as one of the fastest growing economies in the world. Its current economic performance reflects a healthy trend based on increased consumption, investment and exports. Over the next five years, this growth is expected to continue. A key risk to the continued growth of the Indian economy is inadequate infrastructure. Infrastructure investment in India is on the rise, but growth may be constrained without further improvements. The Government of India has identified the power sector as a key sector of focus to promote sustained industrial growth. It has embarked on an aggressive mission Power for All by 2012 and has undertaken multiple reforms to make the power sector more attractive to private sector investment.

Company Profile

Reliance Power Limited is a part of the Reliance Group, one of Indias largest business houses. The group operates across multiple sectors, including telecommunications, financial services, media and entertainment, infrastructure and energy. The energy sector companies include Reliance Infrastructure and Reliance Power . Reliance Power has been established to develop, construct and operate power projects both in India as well as internationally. The Company on its own and through its subsidiaries has a portfolio of over 35,000 MW of power generation capacity, both in operation as well as capacity under development. The power projects are going to be diverse in terms of geographic location, fuel type, fuel source and off-take, and each project is planned to be strategically located near an available fuel supply or load centre. The company has 1,540 MW of operational power generation assets. The projects under development include seven coal-fired projects to be fueled by reserves from captive mines and supplies from India and elsewhere; two gas-fired projects; and twelve hydroelectric projects, six of them in Arunachal Pradesh, five in Himachal Pradesh and one in Uttarakhand. Reliance Power has won three of the four Ultra Mega Power Projects(UMPPs) awarded by the Indian Government so far. These include UMPPs in Sasan( Madhya Pradesh),Krishnapatnam( Andhra Pradesh) & Tilaiya(Jharkhand).UMPPs are a significant part of the Indian government's initiative to collaborate with power generation companies to set up 4,000 MW projects to ease the countrys power deficit situation. Besides these, Reliance Power is also developing coal bed methane (CBM) blocks to fuel gas based power generation. The company is registering projects with the Clean Development Mechanism executive board for issuance of Certified Emission Reduction (CER) certificates to augment its revenues.

Group Companies Reliance Group ranks among India's top three private sector business houses. The group has a market capitalization of Rs 138,126 cr, net assets in excess of Rs 174,469 cr, and net worth to the tune of Rs 83,924 cr. Reliance Anil Dhirubhai Ambani Group has a customer base of over 230 million, the largest in India, and a shareholder base of over 11 million, among the largest in the world. The Reliance Group has a business presence that is spread over 4,500 towns and 300,000 villages in India, and 5 continents across the world. The interests of the Reliance Group span communications, financial services, generation, transmission and distribution of power, infrastructure and entertainment. Companies of Reliance Group

Reliance Communications Limited Reliance Communications Limited is India's largest private sector information and communications company.RCOM has a subscriber base of more than 100 million. The company is the culmination of the late Dhirubhai Ambani's dream of bringing about a digital revolution that would provide every Indian with affordable means of communication and a ready access to information. Reliance Communications started operations in 1999 and has well over a 100 million subscribers today. It has established a pan-India, high-capacity, integrated (wireless and wireline), convergent (voice, data and video) digital network, to offer services spanning the entire infocomm value chain.

Reliance Capital Reliance Capital is one of India's leading and most valuable private sector financial services companies, with interests in asset management and mutual funds; life and general insurance; commercial finance; stock broking; investment banking; wealth management services; distribution of financial products; exchanges; private equity; asset reconstruction; proprietary investments and other financial services activities. Reliance Mutual Fund is India's largest mutual fund with over seven million investor folios. Reliance Life Insurance and Reliance General Insurance are among the country's leading insurers in their space. Reliance Securities is one of Indias leading broking houses while Reliance Money is among the country's top distributors of financial products and services.

Reliance Power Limited Reliance Power Limited currently generates more than 600 MW of electricity through its Rosa plant located in Shahjahanpur in Uttar Pradesh. It also has power stations located in Maharashtra, Madhya Pradesh, Andhra Pradesh, Jharkhand, Gujarat, Kerala, Karnataka and Goa. Reliance Power is currently pursuing a number of gas, coal, wind and hydro-based power generation projects in several States adding up to a capacity in excess of 35,000 MW.

Reliance Infrastructure Reliance Infrastructure Limited operates in various segments and is actively engaged in transmission and distribution of electrical power at various locations. It distributes over eight billion units to 2.73 million consumers. Segments includes

trading of electricity, engineering, procurement, construction (EPC) and contracts that render value-added services in construction, erection and commissioning. Other operations include businesses such as operation and maintenance of toll roads, metro rail transit system and real estate projects, including special economic zones.

Reliance Media and Entertainment Reliance Media and Entertainment has interest in films, music, sports, gaming, internet & mobile portals, digital cinema, IPTV, DTH and Mobile TV. In 2005, Reliance ADA Group acquired Adlabs Films, one of the largest entertainment companies in India with interests in film processing, production, exhibition and digital cinema. Reliance Entertainment is also in the FM Radio business with BIG 92.7 FM.

Reliance Health Reliance Health aims at providing integrated health services through one of the finest hospitals in Asia Kokilaben Dhirubhai Ambani Hospital at Andheri, Mumbai. It also plans to venture into diversified fields like insurance administration, health care delivery and integrated health, health informatics and information management and consumer health.

Company Structure

Mission & Vision Reliance Power aims to provide reliable, low cost 24X7 power supply. Mission

To attain global best practices and become a leading power generating company. To achieve excellence in project execution, quality, reliability, safety and operational efficiency. To relentlessly pursue new opportunities, capitalizing on synergies in the power generation sector. To consistently enhance our competitiveness and deliver profitable growth. To practice highest standards of corporate governance and be a financially sound company. To be a responsible corporate citizen nurturing human values and concern for society. To improve the lives of local community in all our projects. To be a partner in nation building and contribute towards Indias economic growth. To promote a work culture that fosters learning, individual growth, team spirit and creativity to overcome challenges and attain goals. To encourage ideas, talent and value systems and become the employer of choice. To earn the trust and confidence of all stakeholders, exceeding their expectations. To uphold the guiding principles of trust, integrity and transparency in all aspects of interactions and dealings.

Vision

To build a global enterprise for all our stakeholders To be the largest private sector power generation company in India To be the largest hydro power generation company in India To be the largest green power company in India To be the largest coal mining company in India

Strengths and Strategies Power projects are planned to be diverse in geographic location, fuel type, fuel source and off-take. STRENGTHS Largest Portfolio portfolio of projects include those in operation, those under construction and projects under development.Together, it constitutes an installed capacity of over 35,000 MW which is nearly 20% of Indias current installed generation capacity. We are the largest and the only power generation company in India to have bagged three of the four Ultra Mega Power Projects (UMPP) awarded by the Government of India till date. Diversified Fuel Sources and Technologies We are developing a portfolio of power projects utilizing a variety of fuel sources and technologies. Upon completion our power projects will produce almost 20,000 MW of coal-fired capacity, 10,000 MW of gas-fired capacity and 5,292 MW of hydroelectric capacity. We are also developing renewable energy based projects of over 300 MW. Most of the coal-fired power projects, will employ supercritical or ultra-supercritical technology, which will entitle the company to earn carbon credits. The entire gas-fired capacity will employ fuel and cost efficient advanced class turbines. Strategically Located Power Projects Our projects are situated in close proximity to the sources of fuel or load centres. In addition the geographic spread of power projects in Western, Southern, Eastern

and North-Eastern parts of India across seven states will enable us to supply power to different load centres. This geographic proximity to load centres and sources of fuel helps us to minimize the added costs of fuel transport and power transmission. Also this geographic spread and fuel diversification mitigates the dependence on a particular region and fuel type or source. Fuel Access Security With substantial captive coal reserves in India and Indonesia, we expect to meet most of our fuel needs for our coal fired capacity. The four captive coal mines in India that have been allocated have coal reserves of almost 2 billion tones. We have also acquired economic interest in three Indonesian coal mines, from which we will import coal for some of our coal-fired power projects. Diversified Power Off-take Arrangements We have entered into a variety of long-term and medium-term power off-take arrangements which will ensure stable and committed revenues and short-term offtake arrangements which will allow generation of higher returns from the premium on power sold in the spot market

STRATEGY Reduction of Cost of Power Generation We intend to continue our focus on reducing the cost of power generation by acquiring and developing captive fuel sources that will insulate us from the volatility in the market price of fuel and thus allow us to leverage our operating efficiencies. We are doing this by pursuing economies of scale, securing favorable financing and sharing resources among our various power projects and with our affiliates.

Ensuring Fuel Supply Securing adequate supplies of fuel is critical to the success of a power project. We continue to take proactive steps to ensure access to sufficient coal reserves domestically and globally by investing in additional overseas opportunities that are a strategic fit with our business. While we have secured fuel supplies for our entire coal-fired portfolio, we will continue to strive to control the entire supply chain to ensure continued and uninterrupted availability and enable us to control costs.

Focusing on Power Deficit Regions We intend to locate our power projects and enter into off-take arrangements in power deficit regions that typically support higher market-wide tariffs. We will continue to concentrate our off-take arrangements on the Western and Northern

regions of India, which we believe will comprise the bulk of power demand in India. We also intend to focus our merchant off-take sales in these two regions to derive better returns on power generated from our projects.

Establishing an Optimal Mix of Off-take Arrangements We intend to continue to pursue an optimal mix of long and short-term PPAs to minimize the risks and maximize returns for our shareholders. For power projects situated closer to load centers, we have entered into and will continue to enter into a mix of long and short-term PPAs to maintain a balanced portfolio. For power projects located in other locations, we intend to continue to focus on long-term PPAs. Further, we will continue to maintain a significant portion of merchant power in our portfolio to take advantage of favorable prices in the electricity spot market.

Targeting Additional Revenue Sources We are actively pursuing opportunities to target additional revenue sources, including by selling carbon credits. Our Sasan, Krishnapatnam and Tilaiya power projects will be eligible for the CDM benefits as a result of the supercritical technologies.

Corporate Social Responsibility Reliance power believes in integrating with the local community and promotes inclusive growth. Reliance Power in its continuous efforts to positively impact the society, especially the areas around its sites and offices, has formulated policies for social development that are based on the following guiding principles:

Adopt an approach that aims at achieving a greater balance between social development and economic development.

Adopt new measures to accelerate and ensure the basic needs of all people. Work towards elimination of all barriers for the social inclusion of disadvantaged groups- such as the poor and the disabled

Give unfailing attention to children for in their hands lies the country's future. It is for their sake that health, education and environment get topmost priority in our programmes and investments.

In areas around its power plant sites in Sasan,Rosa,Krishnapatnam,Butibori,Chitrangi and others, Reliance Power has been actively involved in various social and environmental organizations to address the issue of sustainable development and social uplift. The Company in discharge of its responsibility as a corporate citizen actively contributes to community welfare measures and takes up several social initiatives every year. Reliance Power Ltd. has been closely working with institutions and social organizations and supporting their programmes for social development, adult literacy, adoption of village, tree plantation schemes etc.

Health Health and safety are of universal concern across the spectrum of communities. As a company, we are not only committed to compliance with legal norms but its is our endeavor to voluntarily go beyond that and provide quality healthcare facilities in the regions around our site. We are committed to providing all possible support to create awareness on various health related issues impacting the local people. We believe in a multidimensional approach that considers the needs of the area leading to an effective plan to address all issues in consultation with the local administration, community workers and NGOs working in the area. At its various project sites, Reliance Power sites runs medical facility center, physiotherapy center, and mobile medical vans that dispenses free medicines and provide free health check-ups. Also periodically we come up with health camps like general health checkup camps, gynecology camps, eye checkup camps and corrective surgery camps for disabled children. Education Education is a basic tool to bring development to an area and its people. We aim to create an awareness pool of human resource both within and across our area of operations. We are committed to bridging the digital divide between the haves and have nots in educational infrastructure and facilities. Exposure to technology along with a sustainable education model could be strengthened through partnership with government and quasi-government agencies. Reliance Power is involved in a surfeit of activities that have changed the lives of the people residing at the sites or the PAFs (Project Affected Families).Education is the main thrust of these activities. Major contributions made in the area include building of a DAV school at the site for the children of the PAFs and the children

of the villages around the sites, free school bus facility for the students, stipend to every child who attends school (a boy child gets Rs. 250 per month while a girl child gets a stipend of Rs. 300 per month), free uniforms, study tours for children, teaching aids to the teachers, training of teachers, as well as night schools for uneducated adults etc. Employment Community is an integral part of the business environment and the basic commitment lies towards augmenting the overall economic and social development of local communities by discharging our social responsibilities in a sustainable manner. Reliance Power invests significantly in skill upgradtion of people around the sites. The trained manpower available for construction will ensure quality and accident free working. CIDC, a Government of India initiative has been engaged and has trained about 300 project affected youths as electricians, welders, carpenters and masons and bar benders in batches of 40 each. To further encourage them we paid them, a monthly stipend of Rs.1000 per month. In addition efforts are on to enroll the oustees in short term courses at the ITI operating in the region. Apart from these, training is also provided are:

Computer coaching centre English speaking classes Personality development classes Physiotherapy training center

Training by NAC (National Academy of Construction)and use them for future requirement of the construction.

For the women folk of the villages, in an effort to empower them the company trains them in soft skills like tailoring and poultry farming etc. Reliance Power provides assistance to women keen on starting their own businesses. The Human Touch beyond policy imperatives. Although the main thrust of Reliance Powers CSR lies in providing quality education, health care and livelihood, we dont restrict ourselves to it. In order to better lives around our areas of interest and business, we strive to provide basic amenities like electrification in the villages, augmentation and development of roads connecting the village to the main roads, old age support for senior citizens of the project affect families, development of the grazing lands for the cattle of the villagers, afforestation and veterinary camps for domestic cattle. Moral and financial support is extended during social occasions like marriages, community prayers, funerals and other such occasions.

Environmental Initiatives Minimize environmental impact through generation of clean and green power. Reliance Power strives to preserve and uphold natural resources and reduce the environmental impact of its products and services throughout their lifecycle in order to be a responsible corporate citizen The guiding principle for our environmental initiatives is the 5Rs: Reduce, Reuse, Recycle, Renew and Respect. The imperative is to use natural resources efficiently to leave a minimal carbon footprint and impact on biodiversity. Reliance Power strives to develop and promote processes and newer technologies to make all our products and services environmentally responsible. Employees, the supply chain and other stakeholders are sensitized through personal interactions and other channels of effective communication. Initiatives can be measured through resource savings in all cases. The company aims to engage with government and non-government agencies to promote conservation. Environmental initiatives for Reliance Power townships Strategies are in place for sustainable township development in various sites of Reliance Power by designing structures with minimum disturbance to the topography and ecology. The various steps towards building an eco-friendly composition are:

In the township phase I of all sites, the construction, hostel and housing blocks modified to accommodate and preserve existing big trees.

Rainwater harvesting has been made mandatory for all sites. Solar heating for public buildings Use of energy efficient building material Minimum day lighting arrangements for over 75% of the area Energy efficient electric fixtures within minimum 3 star BEE rating Water efficient plumbing fixtures Use of lead free paints Treatment of sewage water and reuse for landscape and irrigation purposes

Use of Green Technology Reliance Power believes in using the best technology for all its businesses to lessen the environmental impact. The company would be using super-critical technology and ultra-super-critical technology that enables better combustion of coal and thereby reducing the emission levels apart from the Flue Gas-De-sulphurisation plant that reduces sulphur dioxide emissions in flue gas. For some sites of Reliance Power, we would be using imported coal with low ash content. Moreover to limit ground level concentration of pollutants, the chimneys are being made taller at all our plant sites. Apart from using major breakthrough technologies and initiatives, Reliance Power has been very keen on ensuring optimum utilization of the resources. Of the 4000 acres of the land available with the company towards building of the power plant, we are striving to build our plants within minimum possible use of

land using compact designs and creating more capacity within the existing sites. The rest of the land resource is utilized for strengthening the green belt around the plants. We therefore ensure that we are building a power plant in a forest. Water being another of the precious natural resource, Reliance Power endeavors that in all our plant sites the design and the technology will use only minimum required amount of water and further employ 100 per cent recycling too. The company is also involved in implementing green steps like the fly-ash collected from the plants which is further recycled for use by using it in manufacture of concrete bricks. Events and days of ecological importance are celebrated to raise awareness for conservation of natural resource. Environmental sanitation with special emphasis on solid waste management, waste segregation and vermin-composting is practiced at site locations.

Awards
Pathbreaking achievements within a short span of three years.

Reliance Power has won Euromoneys Deal of the year 2010 for its Sasan Ultra Mega Power Project. The $3-billion debt raising for Sasan UMPP is India's largest ever-project financing sourced solely from domestic lenders against the backdrop of the global financial crisis. This is the first such project to reach financial closure without multilateral or foreign commercial banking commitments in the quickest possible time world-wide.

CONCLUSION Reliance Power believe that enhanced use of natural and renewable energy sources is needed to help take the burden off our current dependancy on fossil fuels. power generation from renewable energy sources is increasingly becoming important all over the world as we strive to mitigate green house gases and climate change issues important for our survival on Planet Earth.We have a diversified portfolio of power projects in which green energy generation has an important share. We have successfully commissioned a 40 MW solar photovoltaic project, India's largest such project , in Pokharan, Rajasthan in March 2012. We are also developing a 100 MW solar thermal project at the same location which is expected to be commissioned by May 2013. We are also developing a 45 MW wind project in Vashpet, Maharashtra which is expected to be commissioned by the end of 2012. We also have around 94 MW of operational wind farms within the Group. We have finalized plans to develop 5,292 MW of hydroelectric power projects which are at various stages of development. We have also identified locations for setting up of wind and solar based capacities which would take our total renewable capacities to 1,000 MW. We expect that, of our total energy portfolio as much as ten percent will come from renewable energy capacities. India's potential for generating renewable energy is huge,especially solar power as well as hydroelectric and wind energy.With growing realization in the government of how important it is to harness all available energy sources, the potential that always existed is now transfroming into reality.

The key drivers are:

Increased Government focus Recent regulatory initiatives promoting development of renewable energy sources such as Mandatory Renewable Purchase Obligations Revised tariff guidelines Generation based incentives. Introduction of Renewable Energy Certificates (RECs)

Reliance Power's strategy for its renewable renewable energy business can be captured in the following bullet points:

Becoming one of the largest green portfolio company in the power sector A company with a diversified portfolio consisting of wind, solar and hydroelectric projects.

Striving for a portfolio which provides attractive returns Earning additional revenues through Carbon Credits and Renewable Energy Certificates

BIBLIOGRAPHY Webliography http://www.reliancepower.co.in www.scribd.com www.powermin.nic.in/ Newspaper Economic Times