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Investor Presentation

Industry and Regulatory Update 14 GWs of new tenders released and only ~10 GWs allocated in FY'21 so far, significantly below the level in FY’20. Recent drop in tariffs and concerns about COVID has delayed signing of PPAs for about 19 GWs of auctions already undertaken. Azure's access to low cost capital and established platform can enable significant further growth with projects that have returns well above our cost of capital. Increased competition in recent auctions likely temporary and was driven by the lack of auctions during COVID. We believe that competition in future auctions could moderate with normal levels of auction activity. The maximum solar capacity developed in a year has been ~10 GWs, well below Govt of India's target of 25 30GWs of new capacity annually through 2030. - Significant supply constraints for modules and glass from China. Azure's large development pipeline and supplier relationships are providing a local advantage. An additional 20 GW of transmission from Rajasthan is being planned as part of Solar Energy Zone Ph-III scheme with a target to commission the new transmission system prior to June 2023. Favorable policy/ regulatory changes. Clarity that recovery will occur under change in law for Basic Custom Duty (BCD) imposition. Restrictions related to the Approved List of Modules and Manufactures (ALMM) will only apply to bids that close 30 days after ALMM is notified. ALMM could create a short term module supply disruption as foreign module manufactures may have to be accredited. No Azure project is impacted by ALMM and BCD. Increased focus on developing new ultra-mega solar parks. A new 30 GW solar park in Gujarat is being planned and a 7.5 GW solar park in Leh & Kargil is expected to be retendered. Solar park options could absorb foreign capital due to lower development risks reducing competition for non solar park projects that Azure has a competitive advantage in. Budget proposals to improve DISCOMs and introduce customer choice for supply. The central government is allocating $40bn over five years to upgrade DISCOM infrastructure and technology to make them more efficient and improve DISCOMS financial health. Supply competition is also being introduced to allow greater customer choice, including low cost renewable energy. 14|Copyright © 2021 Azure Power |www.azurepower.com Azure Power®Ⓡ
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