Investor Presentaiton

Reg Return Assets - Tariff Determination (Baspa II) Operating and Maintenance expenditure O&M expenditure is as per contracts with our providers and is fixed @2.5% p.a. of the Project cost with escalation at annual intervals based on CPI & WPI annual escalation factor Depreciation on assets Interest on Term Loan / Working Capital Loan Return on Equity and tax on Return on Equity Annual Revenue Requirement Fixed Charge Depreciation on assets is available @4.31% currently and will end on FY 25 Interest on permitted debt is also added to the costs to arrive at the Annual Revenue Requirement 16.0% of the equity investment is added to the above costs to arrive at the ARR. Further, this prescribed rate is post tax Accordingly, the tax on return on equity is also added Incentive: Interest on T/L and depreciation are paid monthly For each additional 1% of availability beyond normative availability addition RoE of 0.35% is paid with maximum of 2% of additional RoE Variable Charge ROE, Tax, O&M and Interest on WC is payable on a per unit basis the minimum design energy Incentive: Any Secondary Energy, energy produced in excess of design energy up to 155 MUs is eligible for incentive and is billed at Rs. 3.15 per kwh Design energy - Minimum energy threshold required to be produced by plant. If any year Design Energy is not met due to lower flow of water in the river, the shortfall amount is recovered in the next year. JSW Energy 2 27

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