Recent 4 GW Project Win Is Value Accretive

Glossary of Select Terms Accelerated Depreciation - Accelerated depreciation can be elected at the project level, such that projects that reach COD in the first half of the fiscal year can expense 100% of eligible project costs in year 1, and otherwise can expense 50% of project costs in year 1 and the remainder thereafter. After March 31, 2017, projects that reach COD in the first half of the fiscal year will be eligible to expense 60% of project costs in fiscal year 1 Balance of System (BOS) – The non-module costs of a solar system Committed Projects - Solar power plants that are allotted, have signed PPAs, or are under construction but not commissioned Contracted Projects - Solar power plants that have signed PPAs, or are under-construction but not commissioned. Day Sales Outstanding (DSO)- Days Sales Outstanding (DSO) = Outstanding amount +Period Total Sales for the period DSO represents the average no of days taken to recognize the revenue against sale of power Cash Flow to Equity (CFe) - profit before tax (the most comparable GAAP metric), adjusted for net cash provided for used/in operating activities, other than changes in operating assets and liabilities, income and deferred taxes and amortization of hedging costs; less: cash paid for income taxes, debt amortization and maintenance capital expenditure. LTM are actuals and projections assume normalized debt amortization over 20 years. - Levelized Cost of Energy (LCOE) – A cost metric used to compare energy alternatives, which incorporates both upfront and ongoing costs and measures the full cost burden on a per unit basis Ministry of New and Renewable Energy (MNRE) - A Government of India ministry whose broad aim is to develop and deploy new and renewable energy to supplement India's energy requirements National Operating Control Center (NOCC) – Azure Power's centralized operations monitoring center that allows real-time project performance monitoring and rapid response Power Purchase Agreement (PPA) shall mean the Power Purchase Agreement signed between off-taker and the Company for procurement of contracted capacity of solar power Renewable Purchase Obligations (RPO) - Requirements specified by State Electricity Regulatory Commissions (SERCs) as mandated by the National Tariff Policy 2006 obligating distribution companies to procure solar energy by offering preferential tariffs. Safe Guard Duty (SGD) – a tax on imported modules from most countries outside India which is 15% from January 30, 2020, to July 29, 2020. - Section 80-IA Tax Holiday - A tax holiday available for ten consecutive years out of fifteen years beginning from the year Azure Power generates power, for the projects commissioned on or before April 01, 2017. Solar Auction Process – A reverse bidding process, in which participating developers bid for solar projects by quoting their required tariffs per kilowatt hour, or their required VGF in order to deliver certain tariffs. Projects are allocated to the bidders starting from the lowest bidder, until the total auctioned capacity is reached 38|Copyright © 2020 Azure Power |www.azurepower.com ® Azure Power®

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