Reliance Power L Chairman Speech

My dear fellow shareowners,

Reliance Power Limited, is a constituent of Reliance Group which is a prominent business house, widely recognized in India and abroad as one of the leading creators of projects of national importance in infrastructure, power generation, transmission & distribution, financial services, defence manufacturing, entertainment and telecommunications, amongst others.

The Reliance Group has the largest investor base in India with over 15.5 million retail investors. Reliance Group has over 75,000 employees and serves over 200 million customers. The Reliance Group has assets under management of over Rs, 4,50,000 crore and also manages Government of India''s Employees'' Provident Fund Organization (EPFO), Pension Fund Regulatory and Development Authority (PFRDA) and Coal Mines Provident Fund Organization (CMPFO) funds.

Currently, the Reliance Group has assets worth Rs, 3,50,000 crore, net worth of Rs, 70,000 crore and cash flows of over Rs, 21,000 crore.

It gives me pleasure to share with you the highlights of our Company''s performance for the financial year 2017-18.

Reliance Power''s projects have demonstrated another year of consistent operational performance. Our flagship, 3,960 MW Sasan Ultra Mega Power Project (Sasan UMPp), the world''s largest integrated power plant cum coal mine, continued to deliver ''Best in Class'' operating performance in both coal and power sectors. Similarly, our other generating plants viz. 1,200 MW coal-based Rosa Power Plant located in Uttar Pradesh, 600 MW Butibori Power Plant located in Maharashtra, 40 MW Solar PV plant located in Rajasthan and 45 MW Wind power project located in Maharashtra, also delivered strong operating performance. The 100 MW Solar Thermal plant, located adjacent to the Solar PV plant in Rajasthan, generated 1 05 Million Units during the year, recording a sharp increase by 30% over the previous year.

Driving and sustaining operational and business excellence continued to be the focus of the year and we plan to build further on this platform to raise the level of excellence.

While your Company continues to deliver robust operational and financial performance, it is committed towards the society and environment through its various Environment, Health & Safety (EHS) and CSR initiatives.

The Company''s plants continued to receive recognition in the form of number of awards and accreditations for achieving all-round operational excellence as well as for achievements in Corporate Social Responsibility, Health, Environment and Safety initiatives during the year.

Performance Review

The highlights of the Company''s consolidated financial performance for the year are:

Total income of Rs, 10,123 crore as compared to Rs, 10,892 crore in the previous year;

Net profit of Rs,1,035 crore as compared to Rs, 1,104 crore in the previous year;

Earnings Per Share (EPS) of Rs, 3.69 as compared to Rs, 3.94 in the previous year;

Your Company has been delivering consistent profits, cash flows and enjoys a well-capitalized balance sheet with one of the lowest debt to equity ratios in the industry.

Your Company''s risk management initiatives with respect to Tilaiya UMPP achieved a key milestone with the transfer of Jharkhand Integrated Power Limited (JIPL), its wholly owned subsidiary and SPV for development of Tilaiya UMPP, to Procurers along with release of Performance Bank Guarantees of Rs, 600 crore by Procurers and receipt of termination payment by the Company, in accordance with the terms of Power Purchase Agreement (PPA) between JIPL & the Procurers. The implementation of first phase of 718 MW (net) Combined Cycle gas-based power project at Meghnaghat near Dhaka and 500 mmscfd LNG terminal at Kutubdia Island near Chittagong, both in Bangladesh achieved major milestones with execution of project agreements and securing debt financing and partial risk guarantees totalling US$583 million from Asian Development Bank (ADB).

Your Company will continue to explore value accretive growth through a mix of projects under development and inorganic growth opportunities offered by the consolidation phase in the power generation sector.

Corporate Governance

Your Company has always maintained the highest governance standards and practices by adopting, as is the norm for all constituent companies of the Group, the ''Reliance Group -Corporate Governance Policies and Code of Conduct''. These

Policies and Code prescribe a set of systems, processes and principles, which conform to the highest international standards and are reviewed periodically to ensure their continuing relevance, effectiveness and responsiveness to the needs of investors, both local and global, and all other stakeholders.

Social Commitments

Our portfolio of projects requires substantial use of natural resources such as land, water and minerals. We take adequate care in designing our power generation plants in a manner that optimizes the utilization of land, thereby bringing down the aggregate land requirement and minimizing the potential for displacement of local communities. We are also adopting cleaner technologies related to power generation that reduce the consumption of fuel and water required for plant operations, thereby conserving precious natural resources and contributing to a greener and healthier environment. Sasan UMPP has the distinction of being one of the most efficient super critical thermal plants in the country in terms of fuel and water consumption.

Our projects are operating in areas which are currently in development phase and we continue to contribute towards improving the quality of life of the communities living in these areas. Indeed, participatory development-oriented approach that strengthens our bond with the local population is at the core of our business model.

As part of our initiatives towards discharge of our Corporate Social Responsibilities (CSR), we have made significant outlays in healthcare, education and enhancing livelihood opportunities for the communities.

Our Commitment

Our founder, the legendary Padma Vibhushan Shri Dhirubhai Ambani, gave us a simple mantra: to aspire to the highest global standards of quality, efficiency, operational performance and customer care. We remain committed to upholding that vision.

Dhirubhai exhorted us to think big. With your continued support, we will think bigger. Indeed not just bigger but better, creating ever greater value for all our stakeholders.

Anil Dhirubhai Ambani Chairman