Adani Power Limited - Annual Report 2019-2020

Opportunities in cross-border power supply The Godda Project We are developing a 1,600 MW power project at Godda in Jharkhand for supplying power to Bangladesh. Located just 100 kilometres away from the Indo-Bangladesh border and being built on a more efficient and environment-friendly Ultra-supercritical technology, the project—once commissioned—will enable us to address power deficit in Bangladesh. The Government of Bangladesh has set in motion its Power Systems Master Plan 2016 (PSMP 2016), as part of its ambition of becoming a high-income country by 2041, which details initiatives to be undertaken to increase power generation capacity and improve efficiency. The PSMP 2016 aims for capacity addition of ~24,000 MW by 2033, including ~2,000 MW from renewable energy sources. Liquid fuel sources account for one- third of Bangladesh’s total installed capacity (FY19). These sources have very high generation costs ranging from BDT 8.45/kWH to BDT 36.49/ kWh, which pushes up electricity tariffs. Thus, PSMP 2016 puts significant emphasis on increasing the share of coal-fired power plants in the generation mix. The Government of India and the Government of Bangladesh entered into a Framework Agreement on Cooperation in Generation, Transmission and Distribution of Electricity on September 6, 2011. A Memorandum of Understanding (MoU) was signed on April 11, 2015 between Adani Power Limited (APL) and the Bangladesh Power Development Board (BPDB) to develop a 1,600 MW Ultra- supercritical thermal power project in India for cross-border supply of power to Bangladesh. A power purchase agreement (PPA) was subsequently signed between Adani Power (Jharkhand) Limited (APJL), a wholly owned subsidiary of APL, and the BPDB on November 5, 2017, for supplying 1,496 MW (net) of power to Bangladesh through a dedicated transmission line across the Indo- Bangladesh border for a period of 25 years. The PPA allows for a Project highlights 1,600 MW 100+ km January 2022 ` 148.2 Billion May 2022 Planned installed capacity (two units of 800 MW each) Dedicated transmission line to the Indo-Bangladesh border Expected time of completion of Unit 1 Estimated project cost Expected time of completion of Unit 2. combination of fixed and variable tariffs denominated in US dollars. APJL also signed an Implementation Agreement with the Government of Bangladesh and the Power Grid Corporation of Bangladesh (PGCB), under which the Bangladesh government has provided an unconditional and irrevocable guarantee on all payments due to the project. After receiving the 4 Adani Power Limited