Hindustan Construction Co Ltd

Xian Zhongdian Energy Co. Ltd.

11 April 20232

Joint Presentation at Bidders’ Conference

For BS Ispat – 1 x 150 MW

At Nagpur, Maharashtra

By HCC and XZD, China

11 April 2023

11 April 20233

Presentation Structure

Executive Summary

HCC’s Profile

XZD’s Profile

Approach to Project Execution

Value Proposition

4

Executive Summary

HCC and XZD, have partnered on exclusive basis, to associate with BS Ispat as its EPC contractor for both BTG and BOP packages for the upcoming 3 x 150 MW power project

• HCC specializes in technically complex, new age engineering and construction projects in Power- Hydro, Nuclear and thermal, industrial structures, Transportation and Oil & Gas

– HCC brings world class project management skills and innovative construction solutions

– HCC has built almost 600 project most of which are first of their kind and regarded as landmarks in India’s infrastructure development

• XZD is China based, internationally reputed and financially strong EPC firm with strong business interests in India

– In-house power design institute, for up to 600MW single unit basis, guaranteeing the most-cost effective solution for this power project.

– Executed thermal power projects between 25 MW and 600 MW on EPC basis, 11780 MW in total executed.

– Strategic alliance with BTG suppliers – in a better position to procure equipments faster

• HCC and XZD together offer – world class quality, timely completion and cost effective solutions to BS Ispat

HCC’s Profile

11 April 20236

HCC - Group Companies

Engineering & Construction

Lump sum turnkey

EPC

Design build construction projects

HCC Infrastructure

Infrastructure projects on BOT format

HCC Real Estate

Integrated Real Estate development

Lavasa Corporation

Urban Development and Management

Karl Steiner AG

Total services contractor

Project Management & Services

Facility Management

11 April 20237

HCC’s Presence across all sectors

Hydro

Dams & Barrages

Tunnels

Powerhouses

Shafts & Penstocks

Water Solution

Storage Dams

Barrages

Bulk water transmission canals

Tunnels

Pipelines

Pumping Stations

Treatment Plants

Transportation

Roads

Bridges

Tunnels

MRTS

Nuclear & Special Projects

Nuclear / Thermal Power Plants

Ports

Underground Caverns

Utility buildings & industrial structures

EPC

Lump sum turnkey

EPC

Design Build

Engineering Center

11 April 20238

Financials of HCC

TurnoverCAGR ~ 17%

INR Crores

USD Million

2008 2009 2010

3,104

3,518 3,863

690 782 858

2008 2009 2010

1,004 1,005

1,517

223 223 337

Net worth

USD Conversion ~ INR 45 (As on 31st Mar 2010)

Credentials of HCC in Power Sector

11 April 202310

HCC is a trusted name in power plant construction

HCC has strong presence in power plant

construction space in India

• Constructed 50% of total installed capacity

in nuclear power – 13 out of 18 installed

reactors

• Over 25% of India’s hydroelectric capacity

- largest market share in hydropower –

offering end-to-end solutions

• Four decades of experience in thermal

power plant construction

• Vast experience in civil & structural works

including water intake structures, cooling

towers and chimneys

Some of our projects under construction

are a testimony to our valued position in

power plant construction market in India

• Complete civil works for construction of

nuclear reactor building at Rajasthan for

2 x 700 MW expansion project

• Construction of 330 MW hydroelectric

project in J&K on EPC basis

• Around 17 plants aggregating to 4000 MW

of hydroelectric plants under

construction in India and Bhutan

Key Nuclear Power Projects

11 April 202311

Nuclear power projects helped HCC develop capacities for executing technologically

complex projects with high level of safety and reliability being the key aspects

Rajasthan Atomic Power Project

• Constructed all the 6 units of the project

• Recently engaged for another 2 units of 700 MW each

Units 1 & 2 of 220 MW each at Kakrapar Power Project

• Civil construction of reactor building, turbines etc.

• Cooling towers and water intake structures

Constructed India’s largest nuclear power plant

of 2000 MW capacity at Kudankulam based on imported LWR technology from Russia

11 April 202312

Key Hydroelectric Projects

Chamera St - I

New Austrian method for tunnelling used for second widest powerhouse cavern in India

2.7 km tunnelling by HCC

Koyna Power Complex

Four pressure shafts of up to 3.9 m dia at an angle of 58 degrees. Tail race tunnel of size 10.4 m X 10.4 m constructed

Yamunanagar

HCC constructed dam, spillway gates, hoists, HRT, surge tank, penstocks, power house. Intake etc.

Chutak HEP

Located at an altitude of 10,000 ft

Two intake channels of 4.5 m dia and 160 m length and 47.5 long, 15 m high barrage under constrcution

Uri-II HEP

4.23 km long HRT, 78 m deep surge shaft and 3.6 km long TRT

Under Construction

Chamera III

HCC involved in second Chamera stage projects after Stage I of 540 MW

231 MW

HCC has acquired strong EPC capabilities by virtue of constructing over 10 hydro projects in tough terrains and geological features of Himalayas

11 April 202313

Key Thermal Power Projects

Gandhinagar Thermal Power Station, 2 x 210 MW

• Design & construction of 120 m high NDCTs with cooling

water flow of 33,000 cu.m. per hour

Trombay Thermal Generating Station, 500 MW

• 275 m high single flue RCC chimney for Tata Power’s

utility project

• Recognized as the most outstanding concrete structure

from American Concrete Institute

Vast experience in over 20 thermal power projects constructing chimneys, cooling

tower, water intake systems and undertaking other civil works across the country

XZD’s Profile

11 April 202315

Introduction to XZD

Leading and certified EPC company based in Xi’an, China

• XZD was established in 1965 with pollution control

equipment manufacturing for industrial applications

– ESP, FGD and ash handling systems including HCSD

systems

• EPC works started in 1988 in power and cement plants

• Diversified into infrastructure space and steel business

Presence in multiple sectors and geographies

• Sectors: Power, Cement, Steel, Highways, Railways,

industrial estates, residential buildings

• Geographies: China, India, Africa, West Asia, South East

Asia and South America

11 April 202316

XZD – Capabilities…1

Power Sector

• Company offers turnkey solutions in thermal power

business

• Services offered for thermal, hydro, wind, solar and diesel

based plants

• Coal based thermal power plants – capability for capacity

ranges of 25 MW to 600 MW per unit

2 x 600 MW

2 x 300 MW

Feasibility Study and preliminary design services

Detailed Design and Engineering

Procurement and Supply

Construction Management,

testing and commissioning

O&M support

XZD – Capabilities…2

11 April 202317

• In-house Design & Engineering capability up to 300 MW series• Tie-up with North-West power for Design & Engineering of units > 600 MW;

Review Engineering by XZD

Design & Engineering

• Boilers: Harbin/ Beijing Boiler/ China Western Power/ Wuxi Boiler• Turbines: Harbin / Beijing Turbines / Wuhan Turbine / Hangzhou Turbine• Generator: Harbin / Beijing / Jinan Generator

Procurement – Main Plant Equipment

• Supervision & construction management in-house• Construction outsourced• Commissioning services offered in-house

Construction

Resources at XZD

11 April 202318

• 200 engineers dedicated to thermal power business• Around 65% of the engineers are conferred with technical and professional titles• More than 50 engineers and project managers are registered with Chinese

Government• Nationally renowned experts on equipments, construction and project

management

Project Management Team

• Proj

Project Management Tools

• Full compliance system implemented through quality management systems (QMS)

• Well-established quality control systems and processes to meet Client requirements

• Fully implemented HSE system driven by training, enforcement and incentivization

Quality and Safety Management Resources

11 April 202319

Experience in EPC works

Projects Capacity Completion Year

Shaanxi Binchang Coal Mining Co. 2 x 135 MW (CFB) 2006

Shanxi Weihei Power Plant 2 x 300 MW 1996

Pucheng Power Plant 2 x 330 MW 2002

Baoji Power Plant 2 x 330 MW 2009

Harbin III Power Plant 2 x 600 MW 1996

Tianjin Panshan Power Plant 2 x 600 MW 2001

Hebei Xibaipo Power Plant 2 x 600 MW 2006

Anbatowi Power Plant, Madagascar 2 x 235 MW CFBC 1999

CCPP Power Plant, Sudan 2 x 100 MW 2004

Silop Power Plant, Turkey 1 x 135 MW 2007

Ventanans Generating Units, Chile 2 x 350 MW 2009

Iquique Generating Units, Chile 2 x 200 MW 2006

Full list of experience being provided separately

11 April 202320

XZD’s Experience in India

First order for ESP awarded in 2006

• 6 orders awarded by JSW Steel

• 1 order awarded by BGR Energy

– More than 50 site engineers work on Indian sites for supervision of erection and

commissioning works for the supplied equipments

• XZD is pre-qualified by TCE for 2 x 210 MW project of Surana Power

• Also pre-qualified by MN Dastur for 3 x 60 MW project for Anrak Aluminium

11 April 202321

Performance of Installations by XZD

Average Performance Data for 150 MW unit

Parameter Value

PLF > 75%

Availability (as per Chinese standards) 85.6%

Boiler efficiency 88% for PC boilers

Achieved TG heat rate 1953 kcal / kWh

11 April 202322

Financials of XZD

TurnoverCAGR ~ 22%

INR Crores

USD Million

USD Conversion ~ RMB 6.75 (As on 31st Dec 2009)INR Conversion ~ RMB 0.145 (As on 31st Dec 2009)

2007 2008 2009

1,580

2,013

2,358

339 432 506

2007 2008 2009

698 735

1,307

150 158

281

Net worth

Approach to Project Execution

11 April 202324

Integrated JV

Approach to Project Execution

HCC XZD

Lahmeyer International as Engineering

Consultant

PROJECT EXECUTION FRAMEWORK

Main Plant Supplier (Imported)

Feedback Ventures as Project Management Consultant (integration services to HCC-XZD partnership)

BS Ispat

Engineering services and design appraisal

Main Plant supply and PG

Wrap-up EPC Agreement and overall performance guarantee (PG)

BOP Suppliers

BOP supplies with guarantees

Execution Philosophy

Design and Engineering

• XZD – detailed engineering and design with complete drawings & purchase specifications in line with tender documents

• LI reviews and fine tunes the design to client’s needs

Procurement and Quality Control

• HCC-XZD jointly procure the plant systems with due approval from Owner’s engineers

• QA / QC for Chinese supplies to be handled by XZD and that for Indian supplies to be handled by HCC

• Third party inspection to be appointed and managed by HCC in consultation with Owner’s Engineers

Project Management

• HCC-XZD jointly handle project planning, monitoring and control

• Construction management to be handled by HCC

• Project quality and HSE systems to be established and managed by HCC in consonance with international standards

Testing, Commissioning

and PG tests

• HCC-XZD shall jointly handle the testing, commissioning and PG tests along with OEM suppliers

11 April 202326

Supply Chain – Main Plant Equipments

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Harbin BoilersEssar, India

Beijing Boiler

Western PowerRKM Powergen, Chhattisgarh

Wuxi BoilerVedanta, Cogen Plant

Harbin HECEssar, India

Beijing Turbine & GeneratorAdani Power, Mundra

Jinan GeneratorChhattisgarh

Harbin TurbineEssar, India

Beijing TurbineAdani Power, Mundra

Wuhan Turbine

Hangzhou TurbineChhattisgarh

Supplier Manufacturing Capacity (MW) Max. Capacity of a Unit (MW)

Harbin 30,000 1,000

Beijing Boiler & Turbine 8,000 600

China Western Power - 300

Jinan Generator 7,000 200

Wuxi Boilers - 200

Boilers Turbines Generators

Value Proposition

11 April 202328

Value Proposition

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Faster Execution

Export Buyer’s Credit

O&M Support

Client Value

11 April 202329

Achieving Faster Execution – Proposition Details

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Achieving Faster Execution

• Prompt basic and detail engineering completion backed up by XZD’s in-house design

institute and huge database of thermal power plants.

• Strategic association with BTG vendors guaranteeing faster time of delivery than most EPC

contractor

• Fast payment thus incentivizing the vendors

• High efficient matching of delivery of equipment, erection, commissioning till hand over, by

thermal power plant project management expertise

• Effective logistics solutions

Typical delivery timelines achieved by XZD

Thank you

11 April 202331

Export Buyer’s Credit…1

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Borrower’s Bank (In India)

Typical Export Buyer’s Credit Arrangement

BS Ispat“Importer”

Repayment Guarantee

Loan Agreement

Insurance Company in China

Export Credit Insurance

Supplier in China

Repayment

China Exim BankDisbursement

Com

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C

ontr

act

Dow

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Del

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Sup

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ces

11 April 202332

Export Buyer’s Credit…2

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Guarantee Conditions can be discussed on case-to-case basis

• Guarantees by Indian Bank / borrower and / or Indian Govt.

Lending Conditions (Typical)

• 3 years (construction period) + 10 / 12 years (repayment period)

• Loan currency – US Dollars or as mutually agreed

• Up to 85% of the contract value is financed

• Interest rate linked to LIBOR (currently ~ 8% - 9%)

• Details to be worked out with lenders

11 April 202333

Scope Split between HCC and XZD

Companies will take joint responsibility of overall performance. OEM suppliers provide PG on critical

equipments

Scope of work HCC XZDDesign & basic engineering √

Detailed engineering & design Support for D & E √

Procurement √ (Indian Supplies) √ (Chinese supplies)

Inland and overseas transportation, port clearance,

storage, Erection & Commissioning and handing over

√

Construction √ √ (Methodology)

Project Management √ √ (Supervision & Planning)

Erection √ Support & supervision

Commissioning Support Services TBD* between XZD and OEM

All statutory approvals including IBR and CEIG √ Support

Trial run Support Services TBD between XZD and OEM

PG test Support Services TBD between XZD and OEM

Overall performance Front ending TBD between XZD and OEM

Documentation incl. O&M manuals, “as made” drawings √ √

* To be decided

11 April 202334

Human Resources at Power Division of XZD

Key personnel Designation Achievement

Qu Shouli Director - Technical Participated in establishment of Harbin Steam Turbine Co. in 1958. Designed and constructed power plants of up to 1000 MW unit size

Yao Chengkai Chief Engineer Expert on equipment specifications and project planning

Chen Baolin Chief Engineer Executed first set of imported 2 x 300 MW units from US

Yi Dongfang Chief Engineer Expert on power project design and transmission projects

Ni Shiquan Chief Designer Expert on structural and civil engineering for power plant

Gu Quanyong Coal Handling System Expert

Empanelled as senior expert in Coal Handling Association in China

Ma Yinsuo Chief Engineer Expert in project planning, monitoring and control

Zhong Dawen Chief Designer Expert on design and engineering of electrical systems

Ou Yangfang Environmental Expert

Empanelled on key associations and ministries in Chinese Government for Environmental Protection Services

Zhao Wenzhi Engineer First-degree government registered construction engineer

11 April 202335

Organization Structure at HCC

EPC Vertical Transport Vertical

HCC - Engineering & Construction Business

Hydro Vertical Water Vertical NTSP Vertical

BD & Construction Solutions

Tendering & Construction Solutions

Tendering CEMGEngg & Design R&D

Integrated Resource Management

Equipment Sub-contracts Sourcing & Supply Chain

Project Management

Contracts Management

Ho

ri

zo

nt

al

s

11 April 202336

Organizational Structure at XZD

CMD

Executive Director

Vice Presiden

t – Projects

6 Proje

ct Divisions

including

Power Divisio

n

Vice Presiden

t – Pollution Control

2 Branches – FGD & Ash Handli

ng

Technical

Directors4

Design

Institutes

including

Power Desig

n Institut

e

Vice Presiden

t – Factories

4 Factories in Xi’an

Vice President – Admin

Administrative Office

Finance

Quality Assurance

Vice Presiden

t – Commer

cial & Purchas

e