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Investor Presentaiton

Reg Return Assets - Tariff Determination (Karcham Wangtoo) Operating and Maintenance expenditure O&M expenditure is as per contracts with our providers and is fixed @2% p.a. of the project cost with escalation with escalation at annual intervals based on CPI & WPI annual escalation factor Depreciation on assets Depreciation on assets is available @5.18% for the first 12 years of operation and balance value of the assets upto the 90% of the assets value is depreciated life being charged across the period of the remaining PPA Interest on Term Loan / Working Capital Loan Interest on permitted debt is also added to the costs to arrive at the Annual Revenue Requirement Further, any savings in interest cost on refinancing up to normative debt accrue 50% to us Return on Equity and tax on Return on Equity 16.5% 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 Annual Revenue Requirement Fixed Charge 50% is payable as fixed amount on monthly basis Variable Charge 50% is payable as variable charge on a per unit basis the minimum design energy Incentive: Any increase in availability of plant beyond normative availability is eligible for incentive through pro rata increase in fixed charge payable recovered on a monthly basis Incentive: Any Secondary Energy, energy produced in excess of design energy is eligible for incentive and is billed at Rs. 1.20 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 26
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