Mar 31, 2019
Dear Members,
The Directors are pleased to present the 43rd Annual Report on the business and operations of the Company along with audited financial statements for the year ended March 31, 2019.
Financial Year 2018-19 had been yet another year of achievements for your Company.
Major highlights of your Company for the year 2018-19 are:
- Â Â Â Declared 2,180 MW Power Projects (including subsidiaries) on commercial generation.
- Â Â Â PLF of 76.81% as against all India PLF of 60.91% with Sipat Super Thermal station of your Company recording 91.58% PLF. 11 Stations (including JVs) were in the top 25 in the country in terms of PLF. 6 coal based Stations out of 20 commercial Stations achieved more than 85% PLF.
- Â Â Â Excellent MOU rating by Government of India for the year 2017-18.
- Â Â Â Group Capital Expenditure (CAPEX) including CAPEX of JV/ subsidiaries of your Company for the year 2018-19 Â Â Â was Rs. 33,494.24 crore and on stand-alone was Rs. 27,363.24 crore on cash basis.
- Â Â Â 100% realization of current bills from customers.
- Â Â Â Revenue from operations was Rs. 90,307.43 crore and total revenue was Rs. 92,179.56 crore. Net Profit after Tax (PAT) was Rs. 11,749.89 crore.
- Â Â Â Dividend of Rs. 6.08 per share comprising interim dividend of Rs. 3.58 per equity share paid in February 2019 and recommended final dividend of Rs. 2.50 per equity share for the year 2018-19, subject to approval of the shareholders.
- Â Â Â Cash contribution of Rs. 7017.40 crore to Government of Indiaâs exchequer through dividend, dividend distribution tax and income tax in the financial year 2018-19.
- Â Â Â Market capitalization of Rs. 1,33,922.83 crore as on 31.03.2019.
- Â Â Â Planted approx. 1 million trees during 2018-19 to mitigate the GHG emissions arising out of plant operations, thereby bringing total to about 34 million planted trees till end of 31.03.2019.
- Â Â Â About 4.54 crore fly ash bricks produced by fly ash brick plants of your Companyâs stations, which are being utilised in construction of areas of plant, ash dyke and of township.
- Â Â Â Your Company is one of the Best Workplaces (19) in Asia 2019 in the category of the â25 Best Large Workplaces in Asia, 2019â by the Great Place to Work Institute.
- Â Â Â Your Company was conferred with The Dun &Â Bradstreet Infra Award-2018 for Excellence in Power Generation.
- Â Â Â Your Company was felicitated at the Economic TimesRs. 5th Annual Summit -âPower Focusâ for its remarkable contribution to the power sector.
You will appreciate the fact that the Company recorded growth and excellent performance despite numerous challenges before the sector like coal shortage, strict emission norms, etc.
1. FINANCIAL RESULTS (STAND-ALONE)
Particulars |
2018-19 |
2017-18 |
||
 |
Rs. Crore |
US $ Mn* |
Rs. Crore |
US $ Mn* |
Revenue |
 |  |  |  |
Revenue from operations (including energy sales, sale of energy through trading, consultancy fee etc.) |
90,307.43 |
12,943.59 |
83,452.70 |
11,961.12 |
Other income |
1,872.13 |
268.33 |
1,755.25 |
251.58 |
Total Revenue |
92,179.56 |
13,211.92 |
85,207.95 |
12,212.70 |
Expenses |
 |  |  |  |
Fuel cost |
52,493.74 |
7,523.83 |
48,315.47 |
6,924.96 |
Electricity purchased for trading |
2,713.68 |
388.95 |
1,313.51 |
188.26 |
Employee benefits expense |
4,779.89 |
685.09 |
4,734.67 |
678.61 |
Finance costs |
4,716.74 |
676.04 |
3,984.25 |
571.05 |
Depreciation, amortization and impairment expense |
7,254.36 |
1,039.75 |
7,098.86 |
1,017.47 |
Other expenses |
7,548.63 |
1,081.93 |
7,421.73 |
1,063.74 |
Total expenses |
79,507.04 |
11,395.59 |
72,868.49 |
10,444.09 |
Profit before tax and regulatory deferral account balances |
12,672.52 |
1,816.33 |
12,339.46 |
1,768.61 |
Tax expense |
(2,918.71) |
(418.33) |
5,257.14 |
753.50 |
Profit for the year before regulatory deferral account balances |
15,591.23 |
2,234.66 |
7,082.32 |
1,015.11 |
Net movement in regulatory deferral account balances (net of tax) |
(3,841.34) |
(550.57) |
3,260.85 |
467.37 |
Profit for the year |
11,749.89 |
1,684.09 |
10,343.17 |
1,482.48 |
Â
Transfer to bonds/ debentures redemption reserve |
1,732.37 |
248.30 |
1,637.75 |
234.74 |
Transfer to general reserve |
4,500.00 |
644.98 |
4,000.00 |
573.31 |
Dividend paid |
4,922.55 |
705.54 |
4,040.28 |
579.09 |
Tax on dividend paid |
1,000.49 |
143.40 |
816.40 |
117.01 |
*1US $= Rs.69.77 as on March 31, 2019
2. Â Â Â BONUS ISSUE
Your Company capitalized its reserves to the extent of Rs. 1649,09,28,800/- and issued bonus shares in the proportion of 1 (One) new equity share of Rs. 10/- each for every 5 (Five) existing equity shares of Rs. 10/- each fully paid up i.e. 1:5 held by the members on 20.03.2019. The paid-up share capital of the Company was increased to 9,89,45,57,280 shares.
3. Â Â Â DIVESTMENT OF SHAREHOLDING BY GOVERNMENT OF INDIA
The Government of India has, from time to time, disinvested its stake in your company. During 2018-19, the Government of India divested 5.86% of shares as under:
Sl. No. |
Particulars |
No. of Shares Divested during 2018-19 |
Percentage sold |
1. |
Bharat 22 ETF during June 2018 |
4,15,67,567 |
0.50 |
2. |
CPSE ETF during December 2018 |
23,40,12,589 |
2.84 |
3. |
Bharat 22 ETF during February 2019 |
7,06,46,260 |
0.85 |
4. |
CPSE ETF during March 2019 |
16,51,51,343 |
1.67 |
 |
Total |
51,13,77,759 |
5.86 |
As on 31st March 2019, President of India acting through Ministry of Power held 5,55,01,20,301 shares (56.09%) of your Company. 3,10,46,970 shares were held in CPSE ETF Account and credited back to Ministry of Powerâs Account on 01.04.2019, thus making Ministry of Powerâs holding in your Company as 5,58,11,67,271 (including bonus shares) shares (56.41%) of the total paid-up share capital of the Company.
4. DIVIDEND
Interim and Final Dividend:
Your Company paid interim dividend of Rs.3.58 per equity share in February 2019 and the Board of your Company has recommended a final dividend of Rs.2.50 per equity share for the year 2018-19.
The dividend payout is 41.89% and the total dividend payout including dividend tax is 50.41% of profit after tax.
The final dividend shall be paid after your approval at the Annual General Meeting.
The dividend has been recommended in accordance with your Companyâs Dividend Distribution Policy which is available at the website link https:// www.ntpc.co.in/sites/default/files/downloads/ DividendDistributionPolicyofNTPCLimited.pdf.
5. Â Â Â OPERATIONAL PERFORMANCE
During the year, the power stations of your Company generated 274.45 BUs (305.90 BUs including JVs &Â Subsidiaries) of electricity (including solar, hydro, wind &Â small hydro power) which was 20.01% (22.30 % including generation by JVs and Subsidiaries) of the total power generated in India registering an increase of 3.26% (3.95% including JVs &Â Subsidiaries) over the previous yearsâ generation of 265.80 BUs by your Company (294.27 BUs including JVs &Â Subsidiaries).
The total generation contributed by coal stations is 262.47 BUs during the year against generation of 252.36 BUs last year registering a growth of 4.01%. Generation from coal based units could have been still higher but due to less generation schedule there was opportunity loss of 36.02 BUs. The coal based stations operated at an average Plant Load Factor (PLF) of 76.81% (All India PLF was 60.91%) and average Availability Factor of 87.51% on bus bar during the year.
Sipat Super Thermal Power Station with a PLF of 91.58% was ranked 2nd in the country and 11 Stations (including JVs) of your Company were in the top 25 in the country in terms of PLF. Six coal based stations out of twenty commercial Stations achieved PLF more than 85%.
The gas stations having a capacity of 4,017 MW achieved annual generation of 7.43 BUs at a PLF of 21.11% as against 8.82 BUs last year.
Opportunity loss due to less generation schedule on Gas was still higher at 25.52 BUs.
Generation contributed by Koldam hydro station was 3.01 BUs against 3.31 BUs achieved last year. Generation from your Companyâs RE stations (Solar, wind, small hydro) was 1.54 BUs.
6. Â Â Â COMMERCIAL PERFORMANCE
6.1 Billing and Realisation
Your Company has realized 100% of its current bills raised for energy supplied in 2018-19, thus achieving this feat for the 16th consecutive year.
Most of the beneficiaries were making timely payments and had availed attractive rebates as per Companyâs Rebate Scheme.
Your Company has in place a robust payment security mechanism in the form of Letters of Credit (LC) and Tri-Partite Agreement. Tri-Partite Agreements (TPAs) has been signed amongst the State Governments, Govt. of India and RBI. As per the TPA, any default in payment by the Discoms of a State can be recovered directly from the account of the respective State Governments with RBI.
The original TPAs signed during 2000-01 were valid up to 31.10.2016. As per the decision of the Union Cabinet and as agreed by various States and RBI, these TPAs have been extended for a further period of 10 to 15 years. As of now, 29 States/ UTs out of total 31 have signed the TPA documents. The signing of TPA extension by balance States is being taken up.
6.2 Commercial Capacity:
The following units including those of subsidiary companies were declared commercial during the year 2018-19, adding 2,180 MW to commercial capacity of your Company:
Project/ Unit |
Capacity (MW) |
COD* |
Units- Coal Based (i) |
 |  |
Kudgi, Unit#3 |
800 |
15.09.2018 |
Solapur Unit#2 |
660 |
30.03.2019 |
Bongaigaon Unit#3 |
250 |
26.03.2019 |
Barauni, Unit#1 &Â 2@ |
220 |
15.12.2018 |
Total (i) |
1,930 |
 |
Subsidiaries - Coal Based (ii) |
 |  |
Nabinagar Thermal Power Project, Unit#3 (BRBCL) |
250 |
26.02.2019 |
Total (ii) |
250 |
 |
Total Capacity declared commercial during 2018-19 (i)+(ii) |
2,180 |
 |
* COD- Commercial Operation Date
@ - acquired from Bihar State Power Generation Company Limited effective from 00:00 hrs on 15.12.2018
Badarpur TPS of 705 MW commercial capacity was permanently closed down w.e.f 15.10.2018.
As on 31.03.2019, the Commercial Capacity of your Company stood at45,725 MW (44,500 MW as on 31.03.2018) and your Company Groupâs Commercial Capacity stood at 52,866 MW (51,391 MW as on 31.03.2018):
Owned by your Company |
MW |
Coal based projects |
39,980 |
Gas based projects |
4,017 |
Renewable Energy Projects |
928 |
Hydro Projects |
800 |
Sub-total |
45,725 |
Joint Ventures &Â Subsidiaries |
 |
Coal based projects |
5174 |
Gas based projects |
1,967 |
Sub-total |
7,141 |
Total |
52,866 |
6.3 Â Â Â Tariff Regulations:
Central Electricity Regulatory Commission (CERC) has issued the CERC (Terms and Conditions of Tariff) Regulations, 2019 on 07.03.2019, which are applicable for the period 01.04.2019 to 31.03.2024. The tariff of electricity generated from the Companyâs stations would be determined by CERC based on these regulations for the above mentioned period. The salient features of Tariff Regulations 2019-24 are discussed in the Management Discussion and Analysis Report.
6.4 Â Â Â Security Constrained Economic Dispatch (SCED):
CERC vide its order dated 31.01.2019 has adopted the concept of SCED proposed by the National Load Despatch Center (NLDC) and has directed for its implementation w.e.f 01.04.2019 on pilot basis. This would lead to maximization of generation from cheap pit head stations and reduce the overall cost of power for the beneficiaries resulting into gains for all stakeholders.
6.5 Â Â Â Strengthening Customer Relationship:
Customer Focus is one of the core values of your Company (ICOMIT). In line with this, the Company has taken up several initiatives targeted towards the external Customers. Customer Relationship Management (CRM) and Customer Satisfaction Index (CSI) are some of the most important parts of these initiatives.
As part of the CRM, your Company has been implementing several structured activities with the objective of sharing its experiences and best practices with the customers, capturing their feedbacks and expectations and addressing their issues. Some of these activities are described below:
Your Company provides various support services to the beneficiaries, which involves identifying potential areas of cooperation and sharing of each otherâs best practices. In the financial year 2018-19, total 49 such programs have been conducted for the customers on the basis of requirement expressed by them.
Your Company offers training programs to the representatives of beneficiary companies at Power Management Institute (PMI), the apex training institute of your Company on free of cost basis. In 2018-19, 63 participants from various customer organizations attended training in 26 programs.
Your Company has also put in place Customer Satisfaction Index (CSI) survey scheme, to gather customerâs feedbacks through a survey and respond to their requirements. This CSI survey has been conducted in 2018-19 and the Score falls under Excellent category.
6.6 Â Â Â Power Trading in Power Exchange:
In line with CERC (IEGC) (5th Amendment) Regulations 2017, your Company sold more than 615 Million Units of Unrequisitioned Surplus (URS) power in the Power Exchange through its trading arm NVVN, based on consents received from most of the beneficiaries. The gains from the sale of URS are being shared with beneficiaries as per applicable provisions.
6.7 Renewable Energy:
Your Company signed Power Supply Agreements (PSAs) for 2,000 MW Solar &Â 1150 MW Wind power projects signed with State Discoms of Bihar, UP, Telangana and Punjab. Further, Power Purchase Agreements (PPAs) for 1100 MW Solar and 250 MW wind power projects was signed with Solar Power Developers (SPDs) &Â Wind Power Developers (WPDs). PPAs and PSAs was signed with SPDs and Discoms respectively for Ananthapuramu Phase-II 750 MW Solar PV power project.
For Company owned Renewable projects, PPA was signed for 225 MW Solar project at Bilhaur &Â 20 MW at Auraiya as a successful bidder under UPNEDA Bidding through two different tenders. PPA was signed with PuVVNL for supply of power from 200 kW waste to energy project at Varanasi. In addition, PPA was signed with Bihar Discom for sale of 500 MW from 980 MW Solar PV station to be set up at Nokh.
7. INSTALLED CAPACITY
During the year 2018-19, your Company added 2,180 MW to its installed capacity as per details given below:
Project/ Unit installed |
Capacity (MW) |
Coal Based Power Projects |
 |
Bongaigaon, U#3 |
250 |
Solapur, U#2 |
660 |
Gadarwara, U#1 |
800 |
Barauni St-I* |
220 |
Total |
1,930 |
Under Subsidiaries and Joint Ventures (Coal Based Power Projects) |
 |
BRBCL Unit#3 (subsidiary, a JV with Ministry of Railways) |
250 |
Total by Subsidiaries and JV |
250 |
Total Addition during FY 2018-19 |
2,180 |
*Your Company acquired Barauni TPS w.e.f. 15.12.2018
The total installed capacity of your Company Group as on 31.03.2019 has become 55,126 MW (53,651 MW as on 31.03.2018**) as tabulated below:
Owned by your company |
MW |
Coal based projects |
41,580 |
Gas based projects |
4,017 |
Renewable Energy Projects |
928 |
Hydro Projects |
800 |
Sub-total |
47,325 |
Joint Ventures &Â Subsidiaries |
 |
Coal based projects |
5,834 |
Gas based projects |
1,967 |
Sub-total |
7,801 |
Total |
55,126 |
**705 MW of Badarpur TPP got de-commissioned as being permanently closed w.e.f. 15.10.2018.
8 CAPACITY ADDITION PROGRAMME
8.1 Projects under Implementation
In addition to furthering capacity addition through Coal based power projects, your Company has been pursuing enhancement of its power generation portfolio through Hydro and Renewable Energy projects.
Various projects of your Company having aggregate capacity of 19,956 MW (including 6,900 MW being undertaken by Joint Venture and subsidiary companies) are under implementation at 22 locations in India and abroad. Total capacity under construction comprises 18,800 MW of Coal (including 6,900 MW being undertaken by Joint Venture and subsidiary companies), 811 MW of Hydro and 345 MW of Renewable projects. The details of such projects are as under:
Ongoing Projects as on 17.06.2019 |
Capacity (MW) |
I.A. Coal Based Projects |
 |
1. Barh-I, Bihar |
1,980 |
2. Lara-I, Chattisgarh |
800 |
3. Gadarwara-I, Madhya Pradesh |
800 |
4. Darlipalli-I, Odisha |
1,600 |
5. North Karanpura, Jharkhand |
1,980 |
6. Tanda-II, Uttar Pradesh |
1,320 |
7. Khargone, Madhya Pradesh |
1,320 |
8. Telangana Phase-I, Telangana |
1,600 |
9. Barauni St.-II, Bihar |
500 |
Sub Total (A) |
11,900 |
I.B. Hydro Electric Power Projects (HEPP) |
 |
10. Tapovan Vishnugad, Uttarakhand |
520 |
11. Lata Tapovan, Uttarakhand@ |
171 |
12. Rammam Hydro, West Bengal |
120 |
Sub Total (B) |
811 |
Total I (A)+(B) |
12,711 |
II Projects under JVs &Â Subsidiaries |
 |
Coal Based Projects |
 |
13. Nabinagar- JV with Railways (BRBCL), Bihar |
250 |
14. Nabinagar (NPGCL), Bihar |
1,980 |
15. Meja, JV with UPRVUNL (MUNPL), Uttar Pradesh |
660 |
16. Patratu Expansion, JV with JBVNL |
2,400 |
17. Rourkela, JV with SAIL (NSPCL), Odisha |
250 |
18. Durgapur, JV with SAIL (NSPCL), West Bengal |
40 |
19. Khulna, JV with BPDB (BIFPCL), Bangladesh |
1,320 |
Total II |
6,900 |
III Renewable Projects |
 |
20. Auraiya, Uttar Pradesh |
20 |
21. Bilhaur, Uttar Pradesh |
225 |
22. Ramagundam, Telangana |
100 |
Total III |
345 |
Total On-Going Projects as on 17.06.2019 (I)+(II)+(III) |
19,956 |
@Work of Lata Tapovan HEPP stopped as per orders of the Honâble Supreme Court dated 07.05.2014.
8.2 New Technology &Â initiatives
Your Company has laid major stress on efficient utilization of resources and use of technological advancements for improving energy efficiency.
With emphasis on efficiency of electricity generation, your Company has adopted ultra super critical technology by improving the steam parameters for North Karanpura (3X660MW) to 260 kg/ cm2, 593oC/ 593oC. For Khargone (2X660MW) and Telangana (2X800 MW), steam parameter are 270 kg/ cm2, 600oC/ 600oC. Plant efficiency of these units is expected to increase by around 8% over that of a conventional sub-critical 500 MW unit and 3% over conventional super critical units using similar coal.
For the first time in your Company, Air Cooled Condenser System has been adopted at North Karanpura STPP and Patratu STPP which will bring a significant reduction in make-up water requirement for the project.
8.2.1 Development of Advance Ultra Super Critical technology-ramping up cycle efficiency of coal fired units to reduce the emissions intensity
Cleaner power has been central to the Company since its inception. Over the timeline, we have witnessed focus change from local pollution to global emission concerns. Your Company has been voluntarily working on improving the energy conversion cycle efficiency by adopting more efficient technologies. Efficiency of units has been continuously improved from sub-critical to supercritical and onto ultra-supercritical technology. All new units are being ordered with USC parameters of 600°C/600°C. Adoption of USC parameters shall result in a reduction of CO2 emission (as also others like NOx and SOx) intensity by around 8% when compared to conventional subcritical power plants for every unit of electricity generated.
To achieve an even higher efficiency, a program to develop Advanced Ultra supercritical (AUSC) technology is under way by a consortium of NTPC, BHEL and IGCAR. The AUSC Project envisages development of indigenous technology for steam parameters of 310 Kg/cm2 and 710°C/720°C temperature. Such parameters are way higher than steam parameters used in contemporary plants globally and would result in top of line efficiency of 46%. This is sharp increase from the contemporary efficiency levels of 38% (sub-critical units) and 40% (super-critical units). It will result in reduction of CO2 emissions to the tune of 20% compared to a sub-critical plant.
The activities of the R&D phase of the Indian AUSC are now in full swing and is likely to be completed by September, 2019. Proactive efforts are also under way for the second phase of the programme aimed at setting up of an 800 MW technology demonstration plant. Sipat plant located in Chhattisgarh has been selected as the site for setting up of the technology demonstration plant (TDP). Incidentally, the site is home to your Companyâs first Supercritical unit (660 MW). The technology tuning at the TDP shall hold the key for translation of the learning from the demo-plant to design, execution and operation subsequent units comprising of the fleet of AUSC units.
8.2.2 Â Â Â Biomass Co-firing for reducing greenhouse emission &Â reduce pollution
As part of its commitment to the environment, your Company has taken a new initiatives to utilise agro residue for power generation. This is intended to cut down carbon emissions and also to discourage crop residue burning by farmers after harvesting by adding economic value to the crop residue and providing extra income to farmers and employment in rural sector.
Biomass co-firing is a unique method to utilize coal based power plant infrastructure to produce renewable energy by simply replacing some of the coal with biomass based fuel. Being carbon neutral fuel, biomass co-firing is a technology recognized by UNFCCC as a measure of reducing greenhouse gas emission.
After successfully demonstrating biomass co-firing at Dadri, the Company has started commercial scale biomass co-firing at Dadri from December 2018 onwards for which your Company has placed purchase order for supply of 200 metric tonnes per day of pellets/ torrefied pellets. However, only part supply of biomass pellets are being done at present and full supply shall be commenced soon.
Further, in line with advisory of CEA, the Company has invited expression of interest from entrepreneurs and start-ups for production and supply of agro residue based pellets/ torrefied pellets to majority of its power plants (21 power stations including JV at Jhajjar) and more than hundred parties have participated in EOI. Bids from the interested parties shall be invited soon.
The Company had also arranged the workshop for these parties. Your Company shall again organise workshop in upcoming months with the intent to provide a common platform to all the stakeholder in the sector to create an enabling environment for this business by bringing the clarity on various aspect of the business and networking of different stakeholders.
8.2.3 Â Â Â waste-to-energy (wtE) and disposing municipal solid waste
Keeping commitment to the environment and Swachh Bharat, your Company has taken several initiatives to support &Â leverage Government of Indiaâs effort towards realising Swachh Bharat Mission (SBM) thereby ensuring pollution free environment to peopleâs health and welfare.
Your Company has successfully revamped &Â made it functional the âWaste to Compostâ plant at Karsara, Varanasi and now managing Operation &Â Maintenance (O&M) of this entire 600 Tons per Day (TPD) capacity plant. The plant is processing about 600 TPD of MSW and generating about 60-80 TPD of compost. Sanitary land fill facility and Leachate treatment facility have also been created at Varanasi to ensure scientific disposal of municipal solid &Â liquid waste.
In addition, your Company has commissioned 24 TPD thermal gasification based demonstration scale WtE plant at Varanasi to support technology development in India. The Municipal Solid Waste (MSW) is first converted to producer gas, which is then used to generate approximately 200 kW of electric power. Further, to promote Make in India concept, this Project has been awarded to a MSME player.
Further, the Company has also signed in-principle MoU with Surat and East Delhi Municipal Corporations for setting up state of art WtE plant. Process for bid invitation is under progress.
8.2.4 Â Â Â Renewable energy
Renewable energy is one central focus for your Company. To be in step with ambitious targets, the Company is attempting all avenues for renewable capacity addition to look beyond conventional large scale solar and wind parks. Your Company is utilizing roofs of power plant buildings for solar power generation and integrating to the existing plant infrastructure. Your Company is also going ahead with floating solar at reservoirs of its projects which is a step towards saving of land and water conservation by reducing water surface evaporation.
8.2.5 Â Â Â initiative for Use of Treated Sewage Water from Municipal Sewage treatment plants:
Your Company has already taken initiative to use treated sewage water from municipal STPs nearby for bulk water requirement in its power plants, replacing precious fresh water from rivers/ lakes/ reservoirs/ dams meant for other priority uses like agriculture, drinking, pisiculture, water body preservation, etc. Treated sewage water will be used for Condenser Cooling Water system makeup for the power stations wherever Municipal STPs are within 50 km distance from Power station complying Tariff Notification of GOI dated 28.01.2016. The Company has already identified some projects viz. Dadri, Patratu, Solapur, Meja, Mouda, Korba, Sipat and Ramagundam where there is feasibility of using the STP treated water as STPs already exist/are going to be constructed within 50 km radius of the power plants with substantial availability of STP water. For Dadri STPP, the Company has already signed in-principle MOU with NOIDA authority for utilization of 80 MLD treated sewage water from Noida STPs as a flagship project. The contract for installing Secondary Treatment and Tertiary Treatment of Sewage Water by Solapur Municipal Corporation is on the way to provide 52 MLD of treated sewage to Solapur Thermal Power Station. Agreements with Nagpur Municipal Corporation for Mouda Thermal Power Station and Ramagundam Municipal Corporation for Ramagundam Power Station are under discussion.
8.2.6 Â Â Â Advanced digital and control technology use
Your Company is on the Digital path and implementing its Digital Strategy Roadmap. The initiatives of Advance Process Control (Operation optimization suite) and Advanced Monitoring of Stockyard has already been awarded. Pilot for ART (Augmented reality based training) has been completed and the full-fledged development is under process. Other initiatives of APM (Maintenance optimization suite), AIG (IIOT to enhance process visibility), AIM (digital twin with lifecycle documentation) are under tendering process. The initiatives are being piloted at Simhadri power plant and subsequently shall be rolled-out across your Companyâs Fleet.
Technology intensive security system is being envisaged in place of manpower intensive security currently in place. It has centralized control and multiple layers of security to enhance security with optimized manpower. Pilot of the same has been completed in Dadri project. In first phase it is being implemented for six projects.
Your Company has taken initiative for setting up of Integrated command and control centre having functionalities such as weather forecast, market intelligence, demand forecasting, generation forecasting, integrated planning, scheduling and operation optimization covering hydro, thermal and RE portfolio.
8.2.7 Â Â Â Dry Bottom Ash Handling system
Your Company has taken initiative in recent times to minimize water consumption by adopting Dry Bottom Ash Handling System instead of conventional Wet Bottom Ash Handling System for upcoming Coal Based Thermal Power Plants at Patratu, Singrauli III and Lara II. Dry Bottom Ash Handling System facilitates extraction of bottom ash in dry form and practically, water requirement will be eliminated for handling Bottom Ash with meagre quantity of water which would be required for conditioning and dust suppression. The system not only reduces water consumption which is required for disposal of bottom ash in wet form but also results in reduction in power consumption for Bottom Ash disposal and facilitates separation of bottom ash and fly ash which will result in better utilization of ash.
8.2.8 Â Â Â Change-over to safer Chlorine-di-oxide system from conventional gas Chlorination system for disinfection of plant water system
Keeping commitment to environment and safety, your Company has already embarked upon the more advanced, safer and compact in-situ Chlorine-di-oxide generation system from earlier practice of Gas chlorination system through a comprehensive policy change for its entire fleet of existing power stations as well as all upcoming power stations, as conventional gas chlorination system of disinfecting plant water involved transportation of chlorine gas tonner for a long distance, apart from use of chlorine being leak-prone in gaseous form, a practice which is not entirely free of hazards. The change-over to Chlorine di-Oxide is under implementation in various projects and stations.
8.2.9 Â Â Â Energy Conservation, technology Absorption and Foreign exchange earnings and outgo
Details of conservation of energy, technology absorption and foreign exchange earnings and outgo in accordance with Section 134(3)(m) of the Companies Act, 2013 read with Companies (Accounts) Rules, 2014 forms part of this report as Annexure-III.
8.3 Â Â Â Project Management
Your company has adopted an integrated system for the planning, scheduling, monitoring and control of approved projects under implementation. To co-ordinate and synchronise all the support functions of project management, the Issuer relies on a three-tiered project management system known as the Integrated Project Management Control System (IPMCS), which integrates its engineering management, contract management and construction management control centres. The IPMCS addresses all stages of project implementation, from concept to commissioning.
Your Company has established state-of-the-art IT enabled Project Monitoring Centre (PMC) for facilitating fast track project implementation. PMC has advanced features like Web-based Milestone Monitoring System (Webmiles), Project Review and Internal Monitoring System (PRIMS), etc. PMC facilitates monitoring of key project milestones and also acts as decision support system for the management.
PMC is an integrated enterprise-wide collaborative system to facilitate consolidation of project related issues and their resolution. Features like SMS based information delivery; real time video capture, storage and retrieval facility and video conference facility are extensively utilized for project tracking, issues resolutions and management interventions. PMC has helped in providing effective coordination between the agencies and has provided enhanced/ efficient monitoring of the projects leading to better and faster project implementation.
8.4 Â Â Â Capacity addition through Subsidiaries and Joint Ventures (JVs)
Besides adding capacities on its own, your Company develops power projects through its subsidiaries and joint ventures, both in India and abroad.
The information of Indian Subsidiaries and JV Companies along with details of partners of joint ventures engaged in power generation is given below:
Name of Company |
JV Partner(s) |
Details |
KBUNL (Kanti Bijlee Utpadan Nigam Ltd.) |
Bihar State Power Generation Company Limited (erstwhile BSEB) On 29.06.2018, your Company acquired the paid-up share capital held by BSPGCL in KBUNL. KBUNL has now become wholly-owned subsidiary. |
Both the units of Stage-I of KBUNL have been declared on commercial operation. This Company has also taken up expansion of the project by installation of 2X195 MW units. Unit#3 of Stage-II was declared commercial on 18.03.2017 and Unit#4 of Stage-II was declared commercial on 01.07.2017. Total generation in FY 2018-19 was 3041.368 MU at 56.92% PLF. |
Â
BRBCL (Bhartiya Rail Bijlee Company Ltd.) |
Ministry of Railways |
A subsidiary of your company in joint venture with Ministry of Railways with equity contribution in the ratio of 74:26 respectively for setting up power project of 1000 MW (4X250 MW) capacity at Nabinagar in Bihar. Unit#1, 2 &Â 3 was declared commercial on 15.01.2017, 10.09.2017 and 26.02.2019 respectively. Construction activities of last unit is in progress. |
NSPCL (NTPC-SAIL Power Co. Ltd.) (now converted into a Public Limited Company from NTPC-SAIL Power Company Private Limited) |
Steel Authority of India Ltd. (SAIL) |
A 50:50 Joint Venture Company between your Company and SAIL, owns and operate Captive Power Plants of SAIL at Durgapur (2 x 60 MW), Rourkela (2 x 60 MW) and Bhilai (2 x 30 + 1 x 14 MW). NSPCL has also implemented (2x250 MW) Bhilai Expansion Power Plant. Total installed capacity of NSPCL is 814 MW. NSPCL generated 5886.88 MU at 82.56% PLF in FY 2018-19. NSPCL has paid final dividend of Rs. 20 Cr for FY 2018-19 to your Company. Under Implementation- New Coal based Capacity at Rourkela PP-II Expansion (1 x 250 MW) &Â Durgapur PP-III (2 x 20 MW) is under construction. |
NTECL (NTPC Tamil Nadu Energy Co. Ltd.) |
Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) (erstwhile TNEB) |
A 50:50 JVC has commissioned 3x500 MW coal based power project at Vallur, Tamil Nadu. All the units have been declared on commercial operation. Total generation of NTECL during FY 2018-19 was 7706.873 MUs at 58.62% PLF and 75.40 % PAF. |
APCPL (Aravali Power Company Pvt. Ltd.) |
Indraprastha Power Generation Company Ltd. (IPGCL) and Haryana Power Generation Corporation Ltd. (HPGCL) |
This JVC is operating (3X500 MW) coal based Indira Gandhi Super Thermal Power Project. Your Company, IPGCL and HPGCL have contributed equity in the ratio of 50:25:25. Total generation of APCPL during FY 2018-19 was 7396.263 MU. APCPL has paid interim dividend of Rs. 71.65 crore for FY 2018-19. |
MUNPL (Meja Urja Nigam Pvt. Ltd.) |
Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd. (UPRVUNL) |
A 50:50 JVC is implementing 1,320 MW (2X660 MW) coal based power project in the state of Uttar Pradesh. Construction activities are in progress. Unit#1 achieved full load on 31.03.2018 and TG erection for Unit#2 started in January 2018. |
Â
NPGCL |
Bihar State |
NPGCL is setting up a 3x660 MW |
(Nabinagar |
Power |
Coal based plant at Nabinagar. |
Power |
Generation |
Construction activities are in |
Generating |
Company |
progress. |
Company |
Limited |
Unit#1 achieved full load on |
Ltd.) (now |
(erstwhile BSEB) |
29.03.19. |
converted |
On 29.06.2018, |
 |
into a |
your Company |
 |
Public |
acquired the |
 |
Limited |
paid-up share |
 |
Company |
capital held |
 |
from |
by BSPGCL in |
 |
Nabinagar |
NPGCL. |
 |
Power |
NPGCL has |
 |
Generating |
now become |
 |
Company |
wholly-owned |
 |
Private Ltd.) |
subsidiary. |
 |
RGPPL |
GAIL, ICICI Bank, |
Your Company has a stake of |
(Ratnagiri |
SBI, IDBI, Canara |
25.51% in RGPPL. |
Gas and |
Bank and MSEB |
PPAs have been signed by |
Power Pvt. |
Holding Co. Ltd. |
RGPPL with Indian Railways |
Ltd.) |
 |
for supply of ~500 MW for 5 years w.e.f. 01.04.2017 and Gas Supply Agreements were signed with GAIL for supply of 1.75 MMSCMD of RLNG w.e.f. 01.04.2017 for 5 years. Demerger scheme was approved by NCLAT on 28.02.2018 thereby separating the R-LNG business from RGPPL to the new entity Konkan LNG Private Limited (KLPL). Accordingly, the paid-up share capital of RGPPL decreased from Rs. 3820.27 Cr to Rs. 3,272.30 Cr. |
ASHVINI |
Nuclear Power |
Your Company is having a stake |
(Anushakti |
Corporation |
of 49%. The company was |
Vidhyut |
of India Ltd. |
formed to set up Nuclear Power |
Nigam Ltd.) |
(NPCIL) |
Project with two reactor units of mutually agreed capacity and at a mutually agreed location, which may be extended to setting up additional NPPs at the same location or elsewhere, as may be mutually discussed and agreed between the parties, subject to establishment of techno-commercial viability. JVC may also explore the possibilities of entering into business activities related with the Nuclear Power generation and front-end fuel cycle such as uranium mining, setting up of ancillary facilities, etc. at an appropriate stage. Currently, no activities are being taken up by the Company. |
Â
PVUNL |
Jharkhand Bijli |
PVUNL has been incorporated |
(Patratu |
Vitran Nigam |
on 15.10.2015 as a subsidiary |
Vidyut |
Limited (JBVNL) |
of your Company with 74% |
Utpadan |
 |
stake in the Company and |
Nigam |
 |
26% of stake held by JBVNL to |
Limited) |
 |
acquire, establish, operate, maintain, revive, refurbish, renovate and modernize the performing existing units and tie-lines, sub-stations and main power transmission lines connected therewith and setting up of the new units. For expansion units (Phase-I 3X800 MW), supplementary Joint Venture Agreement was signed on 01.03.2018 and EPC package was awarded to BHEL on 08.03.2018. Construction is in progress. |
8.5 Hydro Power
A. Â Â Â Koldam HEPP (4x200 MW) is on the river Satluj at Barmana, District Bilaspur (Himachal Pradesh). All the four units of 200 MW each were declared commercially operational on 18.07.2015. Since then, the project is running successfully. The generation for the financial year 2018-19 was 3013.90 MU against GOI MoU target of 3000 MUs. Station had achieved best ever cumulative yearly DC of 107.92% in FY 2018-19 which was also the best in the country. Station had also achieved the best ever APC (% of Generation) of 0.54%, the best in the country. Station had also commissioned and tested its remote operation of Koldam HPS from corporate center at New Delhi, first time for any hydro project in the country.
B. Â Â Â Tapovan Vishnugad HEPP (4x130 MW) is on River Dhauliganga, District Chamoli (Uttarakhand). Project is under advanced stage of construction. In Powerhouse package, 98% works have been completed and significant progress has been made in HRT and Barrage packages. All other works such as Electro-mechanical, Hydro mechanical and Switchyard works are progressing as per commissioning schedule. The first Unit is likely to be commissioned by September 2020.
C. Â Â Â Lata Tapovan HEPP (3x57 MW) is in upstream of Tapovan-Vishnugad HEPP, in District Chamoli (Uttarakhand). All Construction activities at LTHPP have been stopped since 08.05.2014 in line with Honâble Supreme Court order dated 07.05.2014 for 24 Hydro Projects in the State of Uttarakhand including Lata-Tapovan. MOEF&CC had constituted an expert body which, in October 2015, recommended for implementation of Lata Tapovan with compliance of certain additional conditions. Your Company submitted in Court on 19.11.2015 that the conditions recommended by expert body shall be strictly complied. On the hearing held on 26.04.2016 also, Additional Solicitor General of India has also informed the Court that Lata - Tapovan Project must be implemented. Last hearing was held on 10.05.2016. The matter is still pending in Honâble Supreme Court for want of affidavit from Ministry of Water Resources (MoWR).
D. Rammam-lll HEPP (3x40MW) is situated on river Rammam in Teesta Basin, Darjeeling (West Bengal). Construction activities are in progress at site and project is likely to be completed by February 2022.
8.6 Capacity Addition through Renewable Energy Sources
Your Company is adding capacity through renewable sources of energy, to broad base its generation mix to ensure long-term competitiveness, mitigation of fuel risks and promotion of sustainable power development. Your Companyâs Corporate Plan envisages a target of 32 GW of RE power comprising around 25% of the overall installed capacity of 130 GW by 2032. Your Company contributes to RE capacity addition in the following two pronged approach:
(a) Â Â Â EpC Mode: These projects are Companyâs own projects with its own investment. These projects are set up in surplus land/ reservoirs in the Companyâs stations. The offtake is tied up through direct PPA with state utilities.
Your Company has already commissioned 920 MW of RE projects comprising 870 MW of Solar projects and 50 MW of Wind projects under EPC mode. Your Company has won 245 MW of Solar projects under Tariff based competitive bidding and presently under implementation. Further, solar projects of aggregate capacity 406 MW comprising 134 MW ground mounted solar projects in the land available in our power stations and 272 MW floating solar projects in water reservoirs of our thermal stations are under various stages of tendering.
In addition, your Company has already installed Roof Top Solar projects and also planning to further install on some of its TG building Roofs, townships and office buildings wherever adequate shadow free area is available.
(b) Â Â Â developer mode: Under this mode, your Company acts as an intermediary procurer and calls for tenders from developers under tariff based bidding mode in accordance with the targets set by MNRE from time to time. Your Company purchases power from the developers shortlisted in the bidding and sells it to the Discoms with a margin. There is no investment from the Company.
Your Company is setting up developer mode projects under National Solar Mission (NSM) as well as on its own, the status of which are as under:
- Under National Solar Mission(NSM):
Your Company was entrusted to develop 15 GW Solar PV under National Solar Mission (NSM) Phase-II, Batch-II in three tranches between 2014-15 to 2018-19, where the Company was to be the facilitator/ trader between Discoms and developers. As per intimation from MNRE, the 15 GW under National Solar Mission (NSM) Phase-II, Batch-II has been reduced to 3 GW. Under Tranche-I of 3 GW( 3000 MW) of Solar PV capacity, 2750 MW Solar PV capacity has been commissioned till date and balance 250 MW capacity is under implementation and expected to be commissioned in FY 19-20.
- NTPCâs own Developer Mode Projects :
750 MW of solar projects under own developer mode is under implementation and expected to be commissioned in FY 19-20. The Company has recently awarded 3150 MW of RE projects comprising 2000 MW of Solar projects and 1150 MW of Wind projects with ISTS connectivity and located anywhere in India in developer mode. PPA/PSA for these projects are likely to be concluded shortly. Further, MNRE has accorded its approval to the Company to act as a designated agency for issue of tenders for setting up of renewable power projects including wind and solar power projects.
8.7 Capacity addition through acquisition:
Your Company acquired 27.36% equity of BSPGCL in KBUNL &Â 50% equity of BSPGCL in NPGCL on June 29, 2018. With this acquisition, KBUNL &Â NPGCL are now the wholly-owned subsidiaries of your Company.
Barauni TPS asset acquisition was completed on 00:00 hrs. of 15.12.2018. With this, the asset acquisition (equity in KBUNL, NPGCL and Barauni Project) with completed value of about Rs. 5571.60 Cr. was concluded with BSPGCL.
9. strategic diversification- increasing selfreliance
9.1 Â Â Â In order to strengthen its competitive advantage in power generation business, your Company has diversified its portfolio to emerge as an integrated power major, with presence across entire power value chain through backward and forward integration into areas such as coal mining, power equipment manufacturing, power trading and distribution.
Your Company continuously explores business opportunities through market scanning and adopts new business plans accordingly.
9.2 Â Â Â The details of subsidiary companies engaged in business other than in power generation are as under:
9.2.1 NTpC Electric supply Company Limited (NEsCL), a wholly-owned subsidiary, transferred and vested all its operations, with effect from April 1, 2015, to your Company.
NESCL was incorporated for the distribution business and later started deposit and consultancy works. The transfer and vesting of existing operations would enable a focused business approach in the area of distribution, the objective for which NESCL was incorporated. Although currently NESCL does not have any business operations in retail distribution, the same will be taken-up at an appropriate time when the opportunity becomes visible.
9.2.2 NTPC Vidyut Vyapar Nigam Limited (NVVN), a wholly-owned subsidiary, is engaged in the business of Power trading. NVVN has a trading License under Category I (highest category). It undertakes sale and purchase of electric power, to effectively utilize installed capacity and thus enable reduction in the cost of power.
The Company has been designated as the nodal agency for cross border trading with Bhutan and Bangladesh and for National Solar Mission. The Company is also implementing a 50 MW gas power project in Andaman &Â Nicobar.
In the FY 2018-19, NVVN traded 17.44 billion units (BUs).
NVVN has paid an interim dividend of Rs. 20 Crore for FY 2018-19.
9.3 The details of joint venture companies incorporated in India which are taking up activities in other business related areas are given below:
Name of Company |
JV Partner |
Activities Undertaken |
UPL (Utility Powertech Ltd.) |
Reliance Infrastructure Limited, Space Trade Enterprises Private Limited, Skyline Global Trade Private Limited and Species Commerce And Trade Private Limited |
Takes up assignments of construction, erection and supervision of business in power sector and other sectors like O&M services, Residual Life Assessment Studies, non-conventional projects etc. UPL has paid dividend of Rs. 3.5 Cr. as final dividend to your Company for FY 2018-19. |
NGPSL (NTPC GE Power Services Private Limited, earlier NTPC Alstom Power Services Private Limited) |
GE Power Systems GmbH |
To provide R&M services for coal based power plants in India. To renovate, modernise, refurbish, rehabilitate, upgrade, reverse engineering and component damage assessment. Also for undertaking residual life assessment, reengineering in India and on a project by project basis elsewhere abroad, utilising state-of-the-art technology. R&M including RLA work orders are under execution. Recent modification in JV agreement now allow NGPSL to also take up FGD work for state utilities. NGPSL is also in advance stage of finalization of JV partner for setting up waste-to-energyy plant across the country. NGPSL gave Rs. 0.23 Cr as final dividend for FYRs.18-19. |
Â
EESL (Energy Efficiency Services Ltd.) |
PFC, PGCIL and REC |
The Company was formed for implementation of Energy Efficiency projects and to promote energy conservation and climate change. EESL is working on Energy Audit of Buildings, Perform Achieve Trade (PAT) scheme work and standard &Â leveling work of BEE, Consultancy work, implementing Bachat Lamp Yojana and Agricultural &Â Municipal Pump replacement for various State Govts, Electric Vehicle, Smart metering etc. EESL gave Rs. 4.01 Cr as final dividend for FYRs.18-19. |
NHPTL (National High Power Test Laboratory Pvt. Ltd.) |
NHPC, PGCIL, DVC and CPRI |
To establish a research and test facility for the power sector such as an âOnline High Power Test Laboratoryâ for short circuit testing facility and other facilities as may be required for the same in the country. HVTR test Laboratory set up at Bina, M.P. was declared commercial w.e.f 01.07.17, MVTR test lab is expected to be commissioned by November 2019. First commercial transformer of 765 kV Class short circuit tested (online) on 11.09.17. |
NBPPL (NTPC-BHEL Power Projects Pvt. Limited) |
Bharat Heavy Electricals Limited |
The Company was incorporated for taking up activities of engineering, procurement and construction (EPC) of power plants and manufacturing of equipments. The promoters have decided to wind-up the Company and the activities are in progress. |
BF- NTPC (BF- NTPC Energy Systems Limited) |
Bharat Forge Limited |
This Company was incorporated to manufacture castings, forgings, fittings and high pressure piping required for power projects and other industries. However, since the project could not take off, it has been decided to wind-up BF-NTPC. Liquidator has been appointed. Voluntary liquidation of the Company is in progress. |
Â
TELK |
Acquisition |
The Company deals in |
(Transformers |
of 44.6% |
manufacturing and repair of |
and Electricals |
stake in |
Power Transformers. |
Kerala Limited) |
TELK from |
Your company has accorded |
 |
Government |
in-principle approval for |
 |
of Kerala |
withdrawal of your company |
 |
on June 19, |
from TELK on 28.04.2016. |
 |
2009 |
 |
ICVL |
CIL, SAIL, |
ICVL was formed for |
(International |
RINL, NMDC |
acquisition of stake in coal |
Coal Ventures |
 |
mines/ blocks/ companies |
Private |
 |
overseas for securing coking |
Limited) |
 |
and thermal coal supplies. In view of lack of suitable commercially viable opportunities for thermal coal, your Company has decided to exit from ICVL. As the Company was formed by a directive from the Government of India, approval of the Government is awaited for exit. |
HURL |
Coal India |
HURL was incorporated on |
(Hindustan |
Limited, |
15.06.2016 to establish and |
Urvarak & |
Indian Oil |
operate new fertilizer and |
Rasayan |
Corporation |
chemicals complexes (urea- |
Limited) |
Limited, |
ammonia and associated |
 |
Fertilizer |
chemical plants) at Gorakhpur |
 |
Corporation |
& Sindri Units of FCIL and |
 |
of India |
Barauni unit of HFCL and to |
 |
Limited (FCIL), |
market its products, taking into |
 |
Hindustan |
consideration the assets of FCIL |
 |
Fertilizer |
and HFCL at Gorakhpur, Sindri |
 |
Corporation |
and Barauni. |
 |
Limited |
Financial closure achieved for |
 |
(HFCL) |
all 3 Projects. Loan Agreement was signed on 20.09.18 for Gorakhpur and 11.10.18 for Barauni &Â Sindri Projects. Lump sum Turnkey Contract(LSTK) for Gorakhpur project was awarded to Toyo Engineering on 27 FebRs.18 with a completion schedule of 36 months. LSTK Contract for Barauni &Â Sindri project was awarded to Technip &Â L&T Hydro carbon Engineering (LTHE) consortium on 18th May 2018 with a completion schedule of 36 months. Pre Project-activities have been almost completed and basic infrastructure is in position at all three locations. Required major approvals and clearances obtained. |
Â
KLPL |
GAIL, ICICI |
Demerger scheme filed by RGPPL |
(Konkan |
Bank, SBI, |
was approved by NCLAT on |
LNG Private |
IDBI, Canara |
28.02.2018 thereby separating |
Limited) |
Bank and |
the R-LNG business from RGPPL |
 |
MSEB |
to the new entity Konkan LNG |
 |
Holding Co. |
Private Limited (KLPL). |
 |
Ltd. |
The Demerger Scheme was filed with the Registrar of Companies on 26.03.2018 with appointed date of 01.01.2016. |
NTPC-SCCL Global Ventures Private Limited was formed for acquisition/ development of mines, beneficiation processing, O&M of coal/lignite blocks and selling of coal/ lignite produced thereof. The Company has been dissolved.
9.4 Â Â Â Diversification in Electric Vehicle (EV) Segment
Your Company is envisaging to provide complete e-Mobility solution for public transport including creation of charging infrastructure and providing electric buses to State/City Transport Undertakings. In first phase, 500 Nos. electric buses are being procured through ICB (NIT issued on 28th February 2019) by NVVN, a wholly owned subsidiary of NTPC. Some of the states/cities where these solutions are expected to be provided are Goa, Kerala, A&N Islands, Bengaluru, Indore, Bhopal, Jaipur etc.
Award has been placed on 8th March 2019 for setting up of 400 Nos. of charging stations in locations across various cities and highways. In this regard, MoUs have already been signed with State/City administrations of Delhi-NCR, Guwahati, Pune, Hyderabad, Mumbai, DMRC (Delhi Metro Rail Corporation), Oil Marketing companies (IOCL, HPCL) as well as with major vehicle Aggregators &Â Fleet Operators.
Award has been placed on 11.02.2019 for setting up a pilot project for Battery Charging and Swapping infrastructure for 50 Nos. e-autos. The project shall be operational by July 2019.
Electric Vehicle chargers has been installed at your Companyâs Stations, Projects and Regional HQs to promote the usage of EVs.
9.5 Â Â Â Foray in Packaged Drinking Water Business
Your Companyâs research arm, NETRA, has developed technology for sea water desalination/waste water treatment using waste heat from flue gas from the power plant. The cost effective technology is now being utilized for packaged drinking water. An MoU in this regard has been signed with IRCTC on January 15, 2018 for setting up a packaged drinking water facility at your Company Simhadri Station. Award of contract by IRCTC for setting up packaged drinking water project is in progress.
10. GLOBALISATION INITIATIVES
10.1 Trincomalee Power Company Limited (TPCL), a 50:50 joint venture between your Company and Ceylon Electricity Board was formed to undertake the development, construction, establishment, operation and maintenance of a electricity generating station Trincomalee at Sri Lanka. Meeting of Joint Working Group (JWG) was held in November 2016 and August 2017 for discussion on project arrangements.
In 3rd JWG meeting held on 7th July 2018 in Colombo, it was agreed that LNG power projects shall be developed in phases. The Capacity of first phase was decided as 300 MW ±15%. The project shall be developed on BOOT basis.
SPV structure for implementation of LNG Power Project at Kerawalapitiya and Solar Power Project at Sampur has been finalized. Solar PP shall be developed by TPCL and a new JV Company shall be incorporated for LNG PP.
10.2 Â Â Â Bangladesh-lndia Friendship Power Company Private Limited, a 50:50 joint venture Company between your Company and Bangladesh Power Development Board (BPDB) was formed for developing a (2X660 MW) Coal based power project (Maitree Super Thermal Power Plant) at Khulna Division, Rampal, Bangladesh. EPC contract of the project except township was awarded to BHEL. Construction activities are in full swing.
10.3 Â Â Â other opportunities Abroad: Business opportunities in Sri Lanka, Bangladesh, Thailand, Nepal, Bhutan, Myanmar, Indonesia, Oman, UAE, Egypt, Ghana, Zimbabwe, Tanzania, Kenya and other African countries are being explored in the areas of power generation, O&M contracting, R&M of power plants, capability building and cross border power trading etc.
Your Company was registered as an overseas corporation in Myanmar and office is operational.
11. CONSUUANCY SERVICES
Consultancy Wing offers services âFrom Concept to Commissioning and beyond....â such as in Engineering, Operation &Â Maintenance Management, Project Management, Contracts &Â Procurement Management, Quality Management, Training &Â Development, Solar &Â renewable power projects, compliance to Environmental norms for power stations etc. These services have been provided in India and abroad viz. Gulf countries, Bangladesh, Nepal, Sri Lanka and Bhutan.
The Consultancy Wing is associated with a capacity of around 49,894 MW:
- Â Â Â Ownerâs Engineers Services &Â Project Management Services- 18,204 MW
- Â Â Â O&M Services / O&M studies (Performance Improvement Plan (PIP) &Â Gap Analysis) - 18,830 MW
- Â Â Â Due diligence of stress assets- 12,640 MW
- Â Â Â R&M Services- 220 MW
On international front, Consultancy Wing has successfully completed six (6) years of O&M management services at Siddhirganj Peaking Power Plant (2x120MW) in Bangladesh under a World Bank funded contract. There has been an all-round improvement in terms of plant parameters and capacity building due to implementation of best practices and systems in this power plant with involvement of your Companyâs experts.
On the domestic front, Consultancy Wing is providing âComplete Ownerâs Engineer Services for implementation of 2X660MW Khurja STPP from concept to commissioningâ to THDC. It is also providing âPost Award review engineering and QA&I Servicesâ for 2X660MW Jawaharpur TPS and 2X660MW Obra Extn. TPS of UPRVUNL.
Consultancy Wing is executing assignments for various clients like UPRVUNL, HPGCL, DVC, PSPCL, GSPGCL SCCL, OCPL, MPPGCL , RVUNL, REC, FACOR, LPGCL and your companyâs JVs for FGD Systems, Project Management, FR/DPR Preparation, Procurement &Â Inspections, Performance Improvement services and other advisory services.
Consultancy Wing has also carried out various technical due diligence assignments of stressed/stalled assets on behalf of financial institutions.
Highlights of fy 18-19
- Â Â Â Consultancy wing received orders of Rs. 227 Cr .
- Â Â Â About 24 nos. assignments pertaining to FGD &Â ESP augmentation works amounting to around Rs 92 Cr. are under various stages of execution.
- Â Â Â Post Award Review Engg. &Â Project Management services at (1X660MW) Panki Extn. TPP of UPRVUNL.
- Â Â Â Complete Engineering Services for implementation of (2X660MW) Khurja STPP from Pre-award till commissioning of THDC.
- Â Â Â Review Engineering services of (2X660MW) Obra Extn. TPS &Â (2X660MW) Jawaharpur TPS
Consultancy Wing is looking ahead for future business opportunities in areas such as Solar &Â Renewable power projects and O&M for power plants of other utilities in addition to new assignments as Ownerâs Engineer for major power projects, FGD &Â ESP R&M business for meeting new environmental norms etc.
12. Â Â Â financing of new projects
The capacity addition programs shall be financed with a debt to equity ratio of 70:30, in case of thermal and hydro projects and that of 80:20 in case of solar projects. Your Directors believe that internal accruals of the Company would be sufficient to finance the equity component for the new projects. Given its low geared capital structure and strong credit ratings, your Company is well positioned to raise the required borrowings.
Your Company is exploring domestic as well as international borrowing options including overseas development assistance provided by bilateral agencies to mobilize the debt required for the planned capacity expansion program.
The details of funding are discussed in the Management and Discussion Analysis Report which forms part of this Report.
13. Â Â Â fixed deposits
Your Company has discontinued the acceptance of fresh deposits and renewals of deposits under Public Deposit Scheme with effect from 11.05.2013. As such, there were no deposits which were not in compliance with the requirements of Chapter-V of the Companies Act, 2013
The details relating to deposits, as per the Companies Act, 2013 is as under:
(a) |
Accepted during the year |
Nil |
(b) |
Remained unpaid or unclaimed as at the end of the year |
6 Deposits amounting to Rs.15.91 lakh* |
(c) |
Whether there has been any default in repayment of deposits or payment of interest thereon during the year and if so, number of such cases and the total amount involved: |
|
 |
i. At the beginning of the year |
NIL |
 |
ii. Maximum during the year |
NIL |
 |
iii. At the end of the year |
NIL |
* Pending for completion of legal formalities/ restraint orders/ nonreceipt of claims.
14. FUEL SECURiTy
During the year 2018-19, the supply position of coal and gas are given as under:
14.1.1 Coal Supplies
- Â Â Â Your Company entered into long term Fuel Supply Agreement with Coal India Limited (CIL) &Â Singareni Collieries Company Limited (SCCL) for total Annual Contracted Quantity (ACQ) of 158.17 MMT &Â 11.2 MMT respectively and Bridge linkage of 4.65 MMT for Barh. The short-term MOU was done with The Singareni Collieries Company Limited (SCCL) for supply of 8.0 MMT of coal for Ramagundam, Simhadri, Mouda, Solapur and Kudgi (including 7.87 MMT under Bridge linkage) stations.
- Â Â Â In FY 18-19, your company signed new Long-Term Fuel Supply Agreements (FSA) for the quantity of 1.8059 MMTPA. This included 0.612 MMTPA from BCCL for Unchahar St-IV Unit -6, 0.228 MTPA from WCL for Mouda St-I Unit - 2 and 0.9659 MMTPA from WCL for Gadarwara (2X800MW). Further, fuel supply agreement of quantity 1.630 MMTPA from SECL and 2.805 MMTPA from NCL for Gadarwara and quantity of 1.851 MMTPA with NCL for Vindhyachal Unit # 13 Stage -V is expected to sign in next FY. In addition, FSA with CCL for 1.19 MMTPA for Unchahar Unit -6 of Stage -IV and Bongaigaon Unit # 3 for quantity of 0.85 MMTPA with ECL will also be signed in next FY.
- Â Â Â To leverage potential of rationalization of coal linkages, your Company had signed a Supplementary Agreement with CIL and CIL subsidiaries for all owned JV/ Subsidiary stations on 12.04.2017 for implementation of Govt. policy on âFlexibility in utilization of domestic coal for reducing cost of power generationâ. Under the Supplementary Agreement, your Company can allocate coal to any station of its own or any JV/ Subsidiary for optimising the Energy Charges. During the year, your Company has used 6.4 Lac Tons of coal under Flexibility Utilization.
- Â Â Â As per directives of Govt., CIMFR started coal sampling in January 2016. During the period 2018-19, sampling at all loading end sidings (except two sidings i.e. CCL-Amrapali &Â KD- old) and sampling at unloading end of all your Companyâs stations had started. Sampling at unloading end at Meja (JV) is expected to start in next FY. Further, Tripartite Agreement for Third Party Sampling of loading end for sampling of coal to be supplied from SECL, NCL and WCL to Gadarwara and bipartite agreement for Khargone un- loading end is expected to sign in this FY.
- Â Â Â Earlier, your company was also allocated Bridge Linkages for seven stations viz i) Barethi (4x660MW), ii) Barh - II (2x660 MW), iii) Darlipalli - I (2x800MW), iv) Tanda- II (2x660 MW), v) Lara-I ( 2x800 MW), vi) Kudgi-I (3x800 MW) &Â vii) Bilhaur (2x660 MW) for a period of three years from the date of allocation of captive block. Out of the above stations Bridge Linkage of Kudgi expiring on 31.03.2018 was extended by three months by MoC vide OM dated 28.03.2018 i.e upto June 2018. Subsequently, SLC (LT) in its meeting dated 10.04.2018 had recommended Bridge Linkage for Barh-II, Lara-I, Darlipalli, Tanda and Kudgi on tapering basis as per approved mining plan of the linked mines. The extension is valid upto 2022 for all the above stations except Barh-II which is valid upto 2023.
- Â Â Â Bridge Linkage MoUs have already been signed for (i) Barh St-II with CCL &Â ECL (ii) Lara with MCL &Â SECL and (iii) Darlipalli with MCL &Â SECL. For other projects, as and when COD is declared MOU will be signed.
14.1.2 Â Â Â Domestic Coal and imported Coal
During 2018-19, your Company received 175.8 MMT of coal as against 168.2 MMT in 2017-18 marking an increase of (+) 4.5%. Out of 175.8 MMT of coal, 161 MMT was from Annual Contracted Quantity of coal, 6.6 MMT through Bridge linkage/ SCCL Bi-lateral MoU, 6.45 MMT from Pakri Barwadih and 1.75 MMT received through e-auction. For imported coal, after the last contracts placed in Aug 2015, during 2018-19, Company awarded contracts for procurement of 2.5 MMT imported coal in December 2018. 1.05 MMT of imported coal was received in this year, which includes spill over quantity of 2015 contracts.
14.1.3 Â Â Â Sourcing of coal through E-auction
To supplement import coal as well as deficiencies in FSA coal qty., your company participated in e-auctions of CIL subsidiaries &Â SCCL in the this financial year also. In the FY 2018-19, your Company has participated in e-auction of total 1,154 nos. rake of coal (4.54 MMT), out of which 545 nos. rake of coal (2.15 MMT) have been allotted.
14.1.4 Â Â Â Gas supplies
During 2018-19, your Company received total 3.66 MMSCMD of Domestic gas as against 4.48 MMSCMD of Domestic gas received during 2017-18. Long Term RLNG &Â Spot RLNG off-takes during 2018-19 were 0.13 &Â 0.86 MMSCMD respectively.
- Â Â Â Your Company has Administered Price Mechanism (APM) gas agreements up to July 2021, Panna-Mukta-Tapti (PMT) gas agreements up to December 2019 and Non-APM gas agreement upto July 2021 with GAIL.
Your Company extended the Long Term RLNG agreements with GAIL till December 2023, introducing RLNG offtake flexibility in peak power demand periods in the agreements. With the extension, the long pending LT RLNG ToP (Take-or-Pay) dispute with GAIL was settled and contingent liabilities of Rs 5821.61 crore in Companyâs books of accounts got cleared.
- For additional gas requirement over and above the supplies under long-term domestic gas &Â RLNG agreements, your Company has been making arrangements for supply of Spot RLNG from domestic suppliers on âReasonable Endeavourâ basis based on requirement and availability from time to time. Further, adequate stock of liquid fuel is maintained for meeting Gridâs requirement.
There has been no loss of station availability on account of lack of availability of Domestic gas / RLNG / Liquid fuel during the year.
14.2 Development of Coal Mining projects
Your Company has been allocated eight coal blocks namely: Pakri-Barwadih, Chatti-Bariatu &Â Chatti-Bariatu (South), Kerandari, Dulanga, Talaipalli, Banai, Bhalumuda and Mandakini-B by Government of India. In addition, Government of India has also allocated Kudanali-Luburi coal block jointly to your Company and the State of J&K, with your Companyâs share of coal reserves in this block being two-third and Banhardih coal block, allocated to Patratu Vidyut Utapadan Nigam Ltd. (PVUNL). Further, Ministry of Coal through letter dated 3.4.2019 has sought Bihar State Power Generation Company Limitedâs prior consent for assigning Badam coal block in favour of your Company.
From these 11 coal blocks, with a total estimated geological reserves of about 7.3 Billion Metric Tonnes, your Company (including JVs) expects to produce about 119 Million Metric Tonnes of coal per annum. Your Company expects to produce about 102 Million Metric tonnes per annum on standalone basis.
Coal production commenced from Pakri-Barwadih coal block (basket mine) in December 2016. During FY 201819, about 6.81 MMT coal have been extracted and 1775 no. of coal rakes have been dispatched to power stations through Indian Railways network.
In Dulanga block coal extraction started in March 2018. The end use plant of this mine is Darlipalli STPP located about 10 kms from the block. During FY 2018-19, about 0.5 MMT coal have been extracted and about 1.51 lac tonnes coal dispatched to Lara STPS whereas about 23,320 tonnes coal to Darlipalli STPS.
Mine Developer-cum-Operator (MDO) for Talaipalli and Chatti-Bariatu coal blocks were appointed on 13.11.17. MDO contract was suspended and the matter is sub-judice with Honâble Supreme Court. However, the block development activities like land acquisition payments and infrastructure development activities are in progress. In case of Chatti-Bariatu and Talaipalli, about 61% and 91% land payment has been completed respectively. Further, in Talaipalli-South pit, outside MDO scope, tender has also been floated for commencement of Mining Operation and other associated works.
For Kerandari coal block, mining operation would be carried out departmentally with limited outsourcing. Your Company has already floated tenders for appointing mine operator and also for other mine infrastructure facilities for this block.
As per Allotment Agreement with Ministry of Coal, scheduled target for coal production from the three blocks i.e. Talaipalli, Chatti-Bariatu and Kerendari is Novâ19.
In the above five coal blocks i.e. Pakri-Barwadih, Dulanga, Talaipalli, Chatti-Bariatu &Â Kerandari, on community development / CSR activities, your Company has incurred an expenditure about Rs. 25.5 crore in the FY 2018-19 (Cumulative expenditure more than Rs. 126 crore) which has helped in improving the socio-economic conditions of the local community.
For Mandakini-B coal block, Mining Plan &Â FR is under finalization. Mining infrastructure development activities are in progress. Section-7(CBA act) notification issued by MoC. Target for commencement of production is OctRs. 23.
At the time of allotment the Banai &Â Bhalumuda coal blocks were unexplored. The exploration was completed and Geological Report(s) are available. There are issues in availability of land for external OB dump and therefore with a view to optimize exploitation, your Company has proposed to the Nominated Authority, Ministry of Coal, for merger of these coal blocks. The matter is under consideration at MoC.
14.3 initiatives through Joint ventures and subsidiaries:
Banhardih coal block which was allocated to JUUNL as the linked mine for the Patratu Power Project has now been assigned to Patratu Vidyut Utapadan Nigam Ltd. (PVUNL), a JV company incorporated between your Company &Â Government of Jharkhand. For land acquisition Section 4(i) notification under CBA Act, has been notified by MOC.
Kudanali-Luburi Coal block in Odisha has been jointly allotted to your Company &Â State of J&K by MoC, GoI. Joint Venture Agreement between your company &Â JKSPDCL has been signed on 15.06.15 for incorporation of a Joint Venture Company for Exploration, Development &Â Operation of the Coal Block.
However, in view of various roadblocks in development of the Kudanali Luburi Coal Block, your Company has decided to surrender allocated share of coal mine in the said coal block allotted to the Company.
Your Company has decided to have coal mining business into a wholly owned subsidiary in order to meet various business/strategic objectives viz. fuel security, focused management, readiness for future, de-linking business risks and enhancement of shareholder value.
Consent of Niti Aayog has been obtained for formation of subsidiary. Your company has approached Ministry of Coal, GoI for no objection certificate in this regard.
15. BusiNEss EXCELLENCE: GLoBAL BENCHMARKING
Your Company has developed and adopted a customized business excellence Model called âNTPC Business Excellence Modelâ on the lines of globally accepted Performance Excellence frameworks such as the Malcolm Baldrige Model USA and EFQM Model of Europe.
The assessment process is aimed at identifying the area for enhancing stakeholdersâ engagement, improving critical processes and developing leadership potential.
The outcome of this model is identification of organizational strength, opportunities for improvement, issues of concern and best practices.
In the financial year 2018-19, 21 generating stations were assessed by a team of certified assessors. Business Excellence Award for holistic excellence was given to Vindhyachal.
In its pursuit to embrace digital and paperless working environment, your Company has implemented an IT enabled initiative- Corporate Performance Management and Business Intelligence system to enable strategy execution and communication, analytics, query response, reporting and automating few business processes that provides effective decision support for the management across different tiers.
Other contemporary TQM concepts and techniques like ISO, Quality Circles, Professional Circles, 5S etc. have been deployed across the organization. Zen X Quality Circle team from Korba station of your Company had participated in International QC Convention held at Singapore during 22nd -25th October 2018.
16. RENOVATION &Â MODERNISATION
Renovation and Modernization (R&M) of various units of your Company and in particular the units which have completed 25 years of operations from commercial operation date is considered essential to achieve the objectives such as safe operation of the units, compliance of latest statutory norms/revised Environmental norms / IEGC Code, Recovery/improvement of Efficiency of the Units, Reliability Improvement, flexible operations to enable large scale integration of renewables, Sustenance of operations considering equipment health assessment observed during last 2-3 years, overcoming constraints on account of current operating conditions (changes in coal quality, water supply arrangements, change in law, etc.)
Investment approval accorded till date for R&M in 20 stations (Coal &Â Gas based) is of Rs. 14,116.12 crore. As against this, cumulative expenditure till 31.03.2019 was Rs. 7,518.56 Crores which included R&M capital expenditure of Rs. 701.36 Crore during FY 2018-19.
As a responsible corporate citizen, it has always been your Companyâs endeavour to ensure low levels of pollution from its power stations. With a view to maintain a clean atmosphere in and around the power plant by reduction of particulate emission levels from generating stations, Renovation and Retrofitting of Electrostatic Precipitator (ESP) packages have been awarded for 51 Units in 11 Stations namely Tanda -(4x110MW), Singrauli - I &Â II (5X200MW+2X500MW), Korba - I &Â II (3X200MW+3X500MW), Farakka - I &Â II (3X200MW+2X500MW), Vindhyachal - I &Â II (6X210MW+2X500MW), Rihand - I (2X500MW), Unchahar
- Â Â Â I (2x210MW), Talcher TPS-II (2X110MW), Talcher STPS
- Â Â Â I &Â II (2X500MW+4X500MW), Unchahar - II (2x210MW), Ramagundam - I (3x200 MW) and Kahalgaon - I (4x 210 MW), all awarded prior to FY 2018-19. ESP R&M work has been completed, during 2018-19, in 5 units namely (2x500 MW) of Talcher STPS, 1x210 MW of Vindhyachal and (2x200 MW) of Singrauli and total no. of units in which ESP R&M has been completed till Mar 2019 is 28 in 10 stations.
With a view to removing technological obsolescence, renovation of Control &Â Instrumentation (C&I) has been taken up in 9 coal based stations namely Singrauli-I (5X200MW) &Â Singrauli - II (2X500 MW), Korba -I (3X200MW) &Â Korba - II (3X500 MW), Ramagundam -I (3X200MW) &Â Ramagundam - II (3X500MW), Farakka-I (3X 200 MW) &Â Farakka-II (2X500 MW), Dadri Thermal- I (4X210MW), Unchahar- I (2X210MW), Talcher STPS-I (2X500MW), Kahalgaon-I (4X210 MW) and Rihand - (2X500 MW) comprising a total of 38 units. The total no. of units in which C&I R&M completed till date is 30. Renovation of Control &Â Instrumentation (C&I) has also been taken up in five gas based stations namely Anta (419.33 MW, 3 GT + 1 ST), Auraiya (663.36 MW, 4 GT + 2 ST), Kawas (656.20 MW, 4 GT + 2 ST), Dadri Gas (829.78 MW, 4 GT + 2 ST) and Faridabad (432 MW, 2 GT + 1 ST) prior to FY 2018-19. The total no. of units in which C&I R&M has been completed in Gas Stations till MarRs.19 is 13 GT/WHRB and 6 STG. On completion of these schemes, C&I systems in these units have now been brought nearly on par with the new builds.
R&M of Gas Turbines was completed in 14 Gas Turbines in 4 stations namely (4x106MW) in Kawas, (4x111.19 MW) in Auraiya, (3x88.71MW) in Anta and (3x144.30MW) in Gandhar.
17. HUMAN RESOURCE MANAGEMENT
17.1 Your Company takes pride in its highly motivated and competent Human Resource that has contributed its best to bring the Company to its present heights. The productivity of employees is demonstrated by increase in generation per employee and consistent reduction of Man-MW ratio year after year. The overall Man-MW ratio for the year 2018-19 excluding JV/subsidiary capacity is 0.40 and 0.38 including capacity of JV/ Subsidiaries. Generation per employee was 14.95 MUs during the year based on generation of your Companyâs stations.
The total employee strength of the company (including JV/ subsidiaries) stood at 20,244 as on 31.3.2019 against 21,584 as on 31.3.2018.
 |
FY 2018-19 |
FY 2017-18 |
NTPC |
 |  |
Number of employees |
18,359 |
19,739 |
Subsidiaries &Â Joint Ventures |
 | |
Employees of NTPC in Subsidiaries &Â Joint Ventures |
1,885 |
1,845 |
Total employees |
20,244 |
21,584 |
The attrition rate of your Company executives during the year was 0.78% in comparison to last year at 0.53%.
17.2 Â Â Â Employee Relations
Employees are the driving force behind the sustained stellar performance of your company over all these years of Companyâs ascendancy. As a commitment towards your Companyâs core values, employeesâ participation in Management was made effective based on mutual respect, trust and a feeling of being a progressive partner in growth and success. Communication meetings with unions and associations, workshop on production and productivity, etc. were conducted at projects, regions and corporate level during the year. During the year, long term wage agreement for the employees in workmen cadre was successfully concluded with a win-win proposition for all the stakeholders.
Both employees and management complemented each othersâ efforts in furthering the interest of your Company as well as its stakeholders, signifying and highlighting overall harmony and cordial employee relations prevalent in your Company.
17.3 Â Â Â Safety and Security
Occupational health and safety at workplace is one of the prime concerns of Company Management. Utmost importance is given to provide safe working environment and to inculcate safety awareness among the employees. Your Company has a 3-tier structure for Occupational Health and Safety Management, namely at Stations/ Projects, at Regional Head Quarters and at Corporate Centre. Safety issues are discussed in the highest forum of Management like Risk Management Committee (RMC), Management Committee Meeting (MCM), Regional Operation Performance Review, Operation Reviews, Project Reviews etc. Ex-Director Operations (Nuclear Power Corporation Ltd) was engaged to enrich safety systems and strengthen process safety. On the occasion of âNational Safety Dayâ CMD along with the Board addressed all project / Stations.
All of your Companyâs stations are certified with OHSAS-18001/IS-18001. Six of our stations are going for international level NOSA accreditation in Safety and Environment. Regular plant inspection and review with Head of Project/Station is being done. Internal Safety Audits by Safety Officers every year and External Safety Audits by reputed organizations as per statutory requirement are carried out for each Project/ Station. Recommendations of auditors are regularly reviewed and complied with. Company level Hazard Identification and Risk Analysis (HIRA) document has been prepared and shared with all stations.
Height permit and height check list are implemented to ensure safety of workers while working at height. Adequate numbers of qualified safety officers are posted at all units as per statutory rules/ provisions to look after safety of men &Â materials. Mock drills were conducted with NDRF to prepare for any extreme on site emergency. Sites are engaging the safety consultant of international repute to uplift safety standards.
For strict compliance &Â enforcement of safety norms and practices by the contractors, safety clauses are included in General Conditions of Contract/ Erection Conditions of Contract. Safety coordination procedure is a part of the safety activity of corporate awarded packages during tendering.
Detailed emergency plans have been developed and responsibilities are assigned to each concerned to handle the emergency situations. Mock drills are conducted regularly to check the healthiness of the system.
Most of your Companyâs plants have been awarded with prestigious safety awards conferred by various Institutions/ Bodies like Ministry of Labour &Â Employment-Govt. of India, National Safety Council, Institute of Directors, Institution of Engineers (India), in recognition of implementing innovative safety procedures and practices.
The standard operating procedures are being followed for maintaining utmost safety in operations and processes in your Company to avert accidents.
Security: Your Company recognizes and accepts its responsibility for establishing and maintaining a secured working environment for all its installations, employees and associates. This is being taken care of by deploying CISF at all units of your Company as per norms of Ministry of Home Affairs. Concrete steps are being taken for upgrading surveillance systems at all projects/ stations by installing state-of-the-art security systems.
17.4 Training and Development
Your Company is successfully attracting, grooming, motivating and engaging people talent. We believe in nurturing and managing the talent that leads to sustainable competitive advantage.
Power Management Institute (PMI), the apex learning and development (L&D) centre of your Company, is actively engaged in making our people future ready in terms of technology, business acumen and leadership. All the L&D initiatives are derived from business needs and designed to achieve Companyâs strategic objectives, actualize business plan and create value for stakeholders.
PMI has the state-of-the-art physical and digital infrastructure to impart learning in world class ambience. It classrooms are equipped with modern facilities including smart boards, video conferencing and session-recording which supports contemporary pedagogy.
Your Company takes pride in being people friendly organization and strives to insure safe work place with zero incident reported. PMI in its role espousing the safety as core value in L&D by establishing NTPC Safety Academy at Unchahar. The academy is conducting safety related certificate courses across the organization.
Our training delivery methods include a blend of classroom learning through simulation and case study methods, theater workshop, community service module (for first hand CSR feel to young ETs), e-learning platform, video and web platforms etc. PMI has covered 4,000 executives in management learning through HMM and 1000 in the power plant technical skills domain by licenses from General Physics (GPiLearn).
Various in-house e-platforms that provide access to diverse e-Learning resources to complement the learning to meet the unique learning needs across demographic spectrum of generations engaged at work place. An e-library of 25,000 e-books, 1,000,000 articles, reports and journals supports employeesâ knowledge up-gradation.
The L&D interventions are designed after a multidimensional âTraining Need Analysisâ (TNA) for enhancing technical, functional, strategic and leadership skills with focus on business objectives of the Company. PMI conducted 321 training programs during FY 18-19, covering nearly 8,699 professionals, resulting in a total of approximately 45,987 learning man-days.
Your Company is aware of pivotal role of effective leadership and to ensure continuity in leadership pipeline, 379 middle level executives were given rigorous inputs under 2 weeks strategic leadership development program (10X). The program is designed to equip the participants with ten strategic competencies to enable them to take leadership roles and strategic positions in the days to come.
Your Company has aspiration of global growth and conscious of the fact that the emerging business complexities would need global mindset and competence to lead across. In pursuance of the objectives it sent one batch of senior executives (GMs/ EDs) to Harvard Business School to learn from some of the best in the world.
Besides creating capabilities by training to the employees across Indian power sector, PMI is extending its support towards building capability among SAARC &Â Middle East countries. In the year 2018-19, PMI has trained multiple teams from Bangladesh, Saudi Arabia and Abu Dhabi.
In recognition to its pioneering efforts, PMI has received the globally acknowledged ATD Best 2017 and 2018 Awards (Two years in succession), nationally acclaimed ISTD award for 2017 and 2018 and the BML Munjal Award 2018 (Sustained Excellence Category). These awards recognize organizations that demonstrate enterprise-wide success as a result of L&D and talent development practices.
18. SUSTAINABLE DEVELOPMENT
Sustainability at your Company is being driven by two motives:
a. Â Â Â To make fundamental changes in the way we operate our businesses to transform ourselves as the most sustainable power producer.
b. Â Â Â To become more transparent in the timely disclosure of our social, environmental and economic performances.
To achieve the first objective, your Company has identified Decarbonization, Water, Biodiversity, Circular Economy, Safety, Supply chain and Business Ethics as priority sustainability areas and strategizing on them to ensure the Companyâs business sustainability. Your Company is developing short-term and long-term measurable goals and objectives pertaining to these areas which is also aligned to the Companyâs Corporate Plan 2032. To start with reducing water footprint, a cross functional water committee has been formed to do benchmarking of the Companyâs systems and practices with peers and identify best practices across industries.
Your Company has also implemented Sustainable Development projects at its stations and in the neighboring areas as part of Sustainable Development Plan FY 2018-19 (in accordance with CSR &Â SD policy). Major activities carried out under this plan included massive plantation of trees and its maintenance, installation of rooftop Solar PV around power stations on public utilities buildings and on schools, vermicomposting/ Bio-Methanation plant/ Paper re-cycling machines. Few activities under bio-diversity conservation taken up are conservation of Olive Ridley Sea Turtles and study on bio-productivity of Gangetic Dolphin at Kahalgaon Station. An expenditure of Rs. 34.42 Crore was incurred on these SD projects during FY 2018-19.
For the second objective, the Company keeps on publishing Sustainability Report every year based on latest GRI framework. For FYRs. 19, first time, your company is going to develop this report according to IIRC framework according to voluntarily guideline issued by SEBI. Beside this, your Company also publish Business Responsibility Report (BRR) each year as mandated by SEBI.
To improve the visibility at various sustainability related national and international forums, your Company participated in CII-ITC Sustainability Awards (qualified for final round ) and Dow Jones Sustainability Indices (DJSI) in FYRs. 19.
Business Responsibility Report is attached as Annexure-X and forms part of the Annual Report.
18.1 Â Â Â inclusive Growth -initiatives for Social Growth
18.1.1 Â Â Â Corporate Social Responsibility:
CSR has been synonymous with your Companyâs core business of power generation. Your Companyâs spirit of caring and sharing is embedded in its mission statement. Your Company has a comprehensive Resettlement &Â Rehabilitation (R&R) policy covering community development (CD) activities, which has been revised and updated from time to time. CD activities in green field area are initiated as soon as project is conceived and thereafter-extensive community / peripheral development activities are taken up along with the project development. Separate CSR Community Development Policy, formulated in July 2004 and Sustainability Policy formulated in November 2012 were combined in 2015 and revised in 2016 as âNTPC policy for CsR &Â sustainabilityâ in line with Companies Act, 2013 and DPE Guidelines for CSR. It covers a wide range of activities including implementation of key programmes through NTPC Foundation.
Focus areas of your Companyâs CSR &Â Sustainability activities are Health, Sanitation, Safe Drinking Water, Education, Capacity Building, Women Empowerment, Social Infrastructure livelihood creation and support through innovative agriculture &Â livestock development, support to Physically Challenged Person (PCPs), and activities contributing towards Environment Sustainability. Your Company commits itself to contribute to the society, discharging its corporate social responsibilities through initiatives that have positive impact on society, especially the community in the neighborhood of its operations by improving the quality of life of the people, promoting inclusive growth and environmental sustainability.
Preference for CSR &Â Sustainability activities is being given to local areas around Companyâs operations, ensuring that majority CSR funds are spent for activities in local areas. However, considering Inclusive Growth &Â Environment Sustainability and to supplement Government effort, activities are also taken up anywhere in the country. During the year, about 500 villages and more than 450 schools have been benefitted by your Companyâs various CSR initiatives at different locations. Your Companyâs CSR initiatives have touched, in one way or the other, the lives of around 10 lakh people, residing at remote locations.
Apart from the CSR activities undertaken in and around operations to improve the living conditions of the local communities, other CSR initiatives undertaken pan- India are mentioned in the Annual Report on CSR activities annexed with this Report.
Your Company spent Rs. 285.46 Crore during the financial year 2018-19 towards CSR initiatives, which surpassed the prescribed two percent amount of Rs. 237.01 Crore, thus achieving a CSR spend of 2.41%.
18.1.2 Â Â Â NTPC Foundation
NTPC Foundation, funded by your Company, is engaged in serving and empowering the differently-abled and economically weaker sections of the society.
Details of expenditure incurred and initiatives undertaken by your Company under CSR are covered in the Annual Report on CSR annexed as Annexure-VII to this Report.
18.1.3 Â Â Â Rehabilitation &Â Resettlement (R&R)
Your Company is committed to help the populace displaced for execution of its projects and has been making efforts to improve the Socio-economic status of Project Affected Families (PAFs). In line with its social objectives, your Company has focused on effective Rehabilitation and Resettlement (R&R) of PAFs and on Community Development (CD) works in and around its projects.
R&R activities are initiated at your Companyâs projects by undertaking need based community development activities in the area of health, education, water, capacity building, infrastructure, etc. by formulating âInitial Community Development (ICD) Planâ in consultation with concerned Panchayats, District Administration and opinion makers of the locality. Your Company addresses R&R issues in line with its R&R Policy with an objective that after a reasonable transition period, the conditions of affected families improve or at least they regain their previous standard of living, earning capacity and production levels. Your Company had revised its R&R Policy 2010 in the year 2017 to incorporate R&R entitlements as per âThe Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013â (RFCT LARR Act) in order to extend facilities to PAFs. As per the Policy aligned in line with the RFCT LARR Act 2013, a Social Impact Assessment (SIA)/Census Survey will be conducted by the State Govt during the process of land acquisition for projects so as to collect detailed demographic details of the area which shall form the basis for the preparation of Rehabilitation and Resettlement (R&R) Scheme by the appropriate Govt. The R&R Scheme consists of measures for Rehabilitation &Â Resettlement and need based CD infrastructure in Resettlement Colony (RC).
In addition, in the R&R Policy of your Company a provision has been kept for need based community development (CD) activities to be taken up in project affected villages where Project Affected Families (PAFs) continue to reside even after land acquisition as also in vicinity of the project to ensure that the displaced families in the RC or the affected families in neighboring villages may secure for themselves a reasonable standard of community life.
R&R Plan expenditure is a part of Capital cost of the project and the Plan is implemented in a time bound manner so as to complete its implementation by the time the project is commissioned. On completion of the R&R Plan implementation, a Social Impact Evaluation (SIE) is conducted by a professional agency to know the efficacy of R&R Plan implementation for future learnings.
R&R activities were implemented at the new Greenfield/ Brownfield Thermal projects at Barh, North-Karanpura, Darlipali, Gadarwara, Khargone, Lara, Vindhyachal-V, Kudgi, Telangana, Mouda, Solapur, Tanda-II, Meja, NPGC, Kanti, Hydro projects at Tapovan Vishnugad &Â Rammam-III and Coal Mining Projects at Pakri-Barwadih, Chhatti-Bariatu, Kerendari, Dulanga and Talaipalli where R&R / CD Plans were finalized in consultation and participation of the stakeholders and approved earlier.
Re-appropriation of R&R / CD Plans under implementation as required on a case to case basis for specific projects was also approved to take care of the local requirements and requests from district administration/ stakeholders during implementation.
Focus areas for Community Development activities were:
- Â Â Â Swachh Bharat Abhiyan - Various initiatives were taken to make project affected villages open defecation free by taking up activities related to construction of individual toilets and awareness programmes.
- Â Â Â drinking water - Planning and implementation for access to drinking water for 100% coverage of all project affected villages of projects under construction is being undertaken.
- Â Â Â Capacity building / skill upgradation - Training programs conducted by various projects towards skill enhancement. The support to dependents of PAFs for ITI training was also extended by various projects.
- Â Â Â Education - Construction activities are in progress for Medical College cum Hospital at Sundargarh (Odisha) and an Engineering College at Shivpuri (MP). Support extended for Hydro Engineering College, Bilaspur (Himachal Pradesh). MOU has been signed with Govt. of Odisha for setting up a Polytechnic at Sundargarh (Odisha).
- Â Â Â Health - For the benefit of PAFs and neighboring population, Mobile Health Clinic, Medical camps and dispensaries are being operated for comprehensive health coverage of PAFs at various projects. Support is being extended to District Administration, Peddapalli (Telangana) for augmentation of Govt. Hospital.
18.2 Environment Management - Environment Policy of your Company:
âTo provide cleaner energy by committing to highest possible levels of performance in environmental compliance, practices and stewardship.â
Your Company has always envisaged environment protection and management as inherent feature at the time of inception of all project and focuses its efforts to minimize the impact of its plant operations on surrounding environment and concerned ecosystem.
Your Company undertakes comprehensive environment management plan right from conception of project, selection of site, resources (Land, Coal &Â Water source) and technology. In case of old stations, your Company undertakes massive renovation &Â modernization to upgrade pollution control equipments wherever necessary. Your Company has also taken initiative for installation of Flue gas desulfurization (FGD) system for SOx emission control and optimization &Â implementation of appropriate technology for NOx emission control to comply revised emission norms as per stipulated timeline.
In new projects, around 13-15% of the project cost is spent on core environment pollution control systems such as Electrostatic Precipitators (ESPs), Liquid Waste Treatment Plants (LWTP), Ash Water Recirculation System (AWRS), Coal Settling and Separation Pit (CSSP), Dry ash extraction system (DAES), dust extraction &Â suppression system, sewage treatment plant and desulfurization and deNOx systems. Continuous emission monitoring system (CEMS), Effluent quality monitoring system (EQMS), Continuous ambient air quality monitoring system (CAAQMS) are operational at all operating stations and included in the EPC packages of all new projects at the time of award of new units/ projects itself. Your Company has adopted advanced and high efficiency technologies such as super critical boilers at new stations, DeNOx and FGD in all upcoming green field projects.
Mercury analysers for emission and air monitoring are installed in all 800 MW units.
Your Company is augmenting its capacity with green power by installing wind power, solar power systems in a big way, hybrid power plant in combinations e.g. Wind &Â Solar, Solar &Â Thermal and small hydel power systems attached to its thermal power stations to encourage garnering of renewable energy resources. These measures are aimed not only to achieve reduction in pollution and to minimize use of precious natural resources but also to lead to reduction in specific water and Carbon footprints. All stations of your Company have been certified with ISO 14001 by reputed National and International certifying agencies in recognition of its sound environment management systems and practices.
Your Company has brought out Bio-Diversity Policy on 31.07.2018 for conservation and enrichment of biodiversity in and around its business units.
18.2.1 Control of Air Emissions:
High efficiency Electro-static Precipitators (ESPs) with efficiency of the order of 99.97% and above, with advanced control systems have been provided in all coal based stations to keep Particulate Matter (PM) well below the prevailing permissible emission limits. All upcoming units have been planned with ESPs, DeNOx and FGD system designed to meet new emission norms. Performance enhancement of ESPs operating over the years is being enhanced to achieve the desired emission level to meet revised emission levels by augmentation of ESPs fields, retrofitting of advanced ESP controllers, new technology i.e. MEEP (Moving Electrode Electrostatic Precipitators) and adoption of sound O&M practices.
For control of SOx, first wet FGD has been commissioned and is operational at Vindhyachal Station. Erection of wet FGD at Bongaigaon and Dadri is in advance stage. FGD based on dry sorbent injection (DSI) system is under erection at Dadri (St-I) and Tanda (St-I) to meet the emission norms for SOx. Award and execution of contract for FGD packages for all stations are in various stages to comply with the new norms for SOx emission as per the timeline stipulated by concerned regulator.
NOx control in coal-fired plants is presently achieved by controlling its production by adopting best combustion practices (primarily through excess air and combustion temperatures optimization). Work for combustion modification awarded and under execution to lower down the NOx emission to extent possible levels. To comply with new norms for NOx emission, pilot study based on SCR/SNCR technology at 11 locations are in final stage of completion to find out the optimal solution and suitable technology for DeNOx system suitable for Indian Coal. In gas based stations, NOx control systems (hybrid burners or wet DeNOx) have been provided for good combustion practices.
Change of secondary fuel from HFO to alternative fuel (LDO or LSHS having low sulfur content) scheme implemented in all stations in NCR and state of UP and Haryana to minimize the SOx emission during the startup of coal based units. Your company has planned to make these changes in all station of company and conversion of these system is in progress.
18.2.2 Control of water pollution and adoption of ZLD approach:
Your Company as a responsible corporate entity for environment has proactively initiated steps towards water stewardship in power generation sector. Your Company released its Water Policy-2017 followed by Rain Water harvesting Policy-2018 to set its own benchmark in water consumption in power generation by setting its aim &Â objectives for various water conservation and management measures by using 3Rs (Reduce, Recycle &Â Reuse) as guiding principle. Water bodies rehabilitation &Â restoration, water withdrawal optimization depending on the sustainable water withdrawal capacity and rejection of water bodies as water source, which are recognized as environmentally sensitive due to their relative size and habitat for ecologically sensitive species.
Provision of advanced waste water treatment facilities such as sewage Treatment Plant (STP), Liquid Waste Treatment Plants (LWTP), Coal Slurry Settlement Pit (CSSP), Ash Water Recirculation System (AWRS) and closed cycle condenser cooling water systems with higher Cycle of Concentration (COC), rain water harvesting and reuse of treated effluent in ash slurry disposal and reuse of treated sewage effluent for horticulture purposes are few measures implemented in all stations. For effective monitoring of water use, flow meters with integrators installed at all designated locations in all stations.
In view of water stressed scenario and new norms for specific water consumption, water conservation and reduction in specific water consumption enables your Company to ensure compliance of new norms on specific water consumption. Your Company has taken a proactive approach of making all its power stations to operate with ZLD (Zero liquid discharge) approach. Ten stations of your Company have completed work for ZLD during 2018-19 and remaining stations will complete the ZLD work during the current year. Your company has planned to install Air Cooled Condenser at new project at Patratu and North Karanpura which will be trend breaking initiative in specific water consumption in power sector of country.
18.2.3 Real Time Environment Monitoring System: All the power stations are equipped with continuous ambient air quality monitoring stations (CAAQMS) to capture the real time ambient air quality data for parameters namely PM10.0, PM2.5, SO2, NOx and Ozone. Continuous Emission Monitoring Systems (CEMS) are installed in all units to monitor emissions of SO2 and NOx and opacity meter for monitoring of particulate emission. Effluent Quality monitoring system (EQMS) installed for real time monitors for pollutants in effluents form all stations. Access of data from CAAQMS, CEMS and EQMS has been given to central and state regulators on real-time online basis through cloud server. Remote calibration access of SOx and NOx analyzers has been given to state and central regulator to comply the protocol established by CPCB. For all the upcoming projects, real time monitors for ambient air, effluents and emissions are included in the engineering packages during design stage itself.
18.2.4 New Environmental Norms implementation Plan and Challenges
- Â Â Â online Coal Ash Analyser
New environmental norms have mandated use of coal with ash content not exceeding 34% on quarterly average basis for coal based Thermal Power Plants located far away from coal mines/sources. To ensure its compliance, your Company has taken initiative and Online Coal Analyser is being installed in all such power plants and all upcoming coal based thermal power plants. Further, the type of analyser selected not only represents the ash content but also the various elements of coal which will be useful for enhancing the process efficiency and ease of operation &Â maintenance.
- Â Â Â Fly Ash Classification &Â Bagging system
With the changing environmental norms and land acquisition issues, ash disposal is a serious challenge. To mitigate the issue, increased ash utilization is a potential solution. Your Company, in its endeavour to promote ash utilization, is considering implementation of fly ash classification system and Bagging Plant for its upcoming coal based thermal power projects at Singrauli III and Lara II.
- Â Â Â sox, Nox &Â spM reduction
Indian power sector is undergoing a significant change that has redefined the industry outlook. The focus has now shifted to having a safer environment along with having sustainable power generation. Being the premier power generating company in the country, the onus has come on your Company for achieving the stringent new emission limits for the power plants across the country.
In order to comply with the applicable new environmental norms notified by MOEF&CC vide gazette notification dated 07.12.2015 pertaining to SO2, FGD system will be required to be installed in the existing as well as under construction coal fired power plants. Your Company alongwith its JV is having around 155 units of 65 GW capacity i.e. all operating as well as under construction units. The Company is taking a lead role in the implementation of FGD. Till date, your Company has issued tenders for 137 units of around 63 GW capacity that covers all units operating as well as under construction except some smaller units. Further, FGD in Vindhyachal, Stage-V is already in operation. FGD installation work in 31,370 MW is underway. This has also set up an example in the industry for your Companyâs commitment towards greener environment.
For controlling NOx, various De-NOx techniques shall be implemented based on the limit prescribed in the norms. The work has been started. Combustion Modification in one unit of Dadri has already been completed. Further, award has already been placed for combustion modification for 33 units of around 17GW and tender of balance units issued/ issuing for around 4GW. Selective Catalytic Reduction (SCR) system will necessarily be required in all units, installed after 01.01.2017 to meet NOx emission limit of 100 mg/N.cu.m. SCR is a proven technology for low ash coal however, it is yet to be proven for abrasive &Â high ash Indian coal. In view of this, Pilot tests to assess the suitability of SCR technology for Indian coal started at 7 stations by various SCR system suppliers. Results of the test are yet to come. Based on these results, plan &Â strategy for future will be prepared and these results will decide the fate of SCR technology in the country. Entire power industry is looking forward on the outcome of the pilot test to assess its viability and efficacy.
For particulate emission reduction, most of units are complying with the SPM norms. ESP R&M is underway in around 6 GW capacity in 20 units for meeting the new environmental norm.
The SO2 &Â NOx emission levels in the country will plummet to 30% of what it is presently after installation of FGD technology even after adding capacity of another 70 GW from the present year.
18.2.5 Â Â Â Tree Plantation:
Your Company has undertaking tree plantation covering vast areas of land in and around its projects and till date more than 34 million trees have been planted throughout the country including 10 million trees planted during 2018-19 under accelerated afforestation programme.
The afforestation has not only contributed to the âaestheticsâ but also helped in carbon sequestration by serving as a âsinkâ for pollutants and thereby protecting the quality of ecology and environment. Further, your Company has embarked upon long-term Memorandums with State authorities to assist National Commitment of NDC in COP 21, by planting 7 million saplings during 2019-26 @ 1 million per year.
18.2.6 Â Â Â ISO 14001 &Â OHSAS 18001 Certification:
Amongst all commercially operational stations of your Company, 19 stations have IS0-14001 and OHSAS 18001 certifications and for four stations, certifications are under renewal by reputed National and International certifying agencies in recognition of its sound environmental management systems and practices. Certification is in process for newly commercial stations of your Company.
18.3 Â Â Â Quality Assurance and inspection (QA&i)
Your Company lays great emphasis on the quality of plant and machinery that are sourced for power plant construction and also on the spares and consumables that are required to support the day to day operations of the plant.
The model followed for Quality Assurance seeks to ensure that the Plant Reliability is realized through thoughtful planning and building. Quality Attributes starting from raw materials up to erection and commissioning. Each item secured for construction is subject to rigorous tests and inspection at the appropriate stages to ensure conformity.
Your Company has committed adequate resources for maintaining effective Quality Management System. This includes Corporate level Quality Assurance team, Inspection Engineers at various demanding locations and projects.
Your Companyâs robust performance on all operational parameters, is a testimony to the soundness of the quality system which is in operation. Your Company is represented in various technical committees of ISO and IEC and is actively contributing to upgrade of power sector related standards and technology to promote alignment with best practices followed internationally.
18.4 Â Â Â Clean Development Mechanism (CDM)
Five renewable energy projects of your Company viz.
5 MW Solar PV Power Project at Dadri, 5 MW Solar PV Power Project at Port Blair (A&N), 5 MW Solar PV Power Project at Faridabad, 8 MW small hydro power project at Singrauli and 50 MW Solar PV Plant at Rajgarh (MP) have already been registered with United Nations Frame Work Convention on Climate Change (UNFCCC) CDM Executive Board.
15 MW Solar PV Power project at Singrauli, 10 MW Solar PV project at Talcher and 10 MW Solar PV Power Project at Unchahar are registered in UNFCCC CDM Programme of Activities (PoA).
6173 nos of Certified Emission Reductions (CERs) for 5 MW Solar PV Power Project at Port Blair (A&N) have been issued by UNFCCC CDM Executive Board. Further, another 5842 nos of CERs have also been issued by UNFCCC CDM Executive Board for 5 MW Solar PV Power Project at Dadri and 21011 nos. of Certified Emission Reductions (CERs) have been issued for 5 MW Solar PV Power Project at Faridabad.
Registration of new projects viz. 50 MW Solar PV power project at Anantpur, 260 MW Solar PV power project at Bhadla, 250 MW Solar PV power project at Mandsaur and 50 MW Wind power project at Rojmal has been done in Verified Carbon Standard (VCS) program.
Total 1085005 Voluntary Emission Reduction (VERs) has been issued for 50 MW Solar PV power project at Anantpur, 260 MW Solar PV power project at Bhadla, 250 MW Solar PV power project at Mandsaur and 50 MW Wind power project at Rojmal.
For remaining capacity of Anantpur Solar project, prior consideration form has been sent to UNFCCC and MOEF. Also, prior consideration form for 10 MW Solar PV Power Project at Ramagundam and for upcoming Solar Projects i.e. 140 MW and 85 MW at Bilhaur and 20 MW at Auraiya has been sent to UNFCCC and MOEF.
18.5 Â Â Â Ash Utilisation
During the year 2018-19, 610.32 lakh tonnes of ash was generated and 63.71 % viz. 388.81 lakh tonnes of ash had been utilized for various productive purposes.
Important areas of ash utilization are - cement &Â asbestos industry, ready mix concrete plants (RMC), road embankment, brick making, mine filling &Â land development. Your Company is also pursuing new initiatives for fly ash utilization like fly ash based geopolymer road, transportation of fly ash from pithead power stations to fly ash consumption centers, setting up ash based light weight aggregate plant.
Pond ash from all stations of your Company is being issued free of cost to all users. Fly ash is also being issued free of cost to fly ash/ clay-fly ash bricks, blocks and tiles manufacturers on priority basis over the other users from all coal based thermal power stations. The funds collected from sale of ash is being maintained in the separate account and this fund is being utilized for development of infrastructure facilities, promotion and facilitation activities to enhance ash utilization.
Your Company has an Ash Utilization Policy, which is a vision document dealing with the ash utilization issue in an integral way from generation to end product. This policy aims at maximizing utilization of ash for productive usage along with fulfilling social and environmental obligations as a green initiative in protecting the nature and giving a better environment to future generations.
The quantity of ash produced, ash utilized and percentage of such utilization during 2018-19 from your Companyâs Stations is at Annexure- VIII.
18.6 Â Â Â CenPEEP - towards enhancing efficiency and protecting Environment
Your Company initiated a unique voluntary program of GHG emission reduction by establishing âCenter for Power Efficiency and Environmental Protection (CenPEEP)â and under this program, it is estimated that cumulative CO2 avoided is 47.2 million tonnes since 1996, by sustained efficiency improvements.
CenPEEP is instrumental in implementation of Energy Efficiency Management System (EEMS) consisting of periodic assessments, field tests, performance gap analysis deviations and updation of action plans at all stations.
CenPEEP is working for efficiency and reliability improvement in stations through strategic initiatives, development and implementation of systems and introduction of new techniques &Â practices. Critical efficiency parameter, draft power consumption, efficiency improvement through overhauling are monitored. PI based real time programs and dashboards are in use for real time tracking of plant parameters. These programs also assist operating engineers in tracking the gaps in heat rate and auxiliary power consumption, trending the degradation of equipment performance and taking corrective measures.
CenPEEP is also working towards reduction in specific water consumption and auxiliary power consumption in coal and gas stations. A dedicated group conducts regular energy audits to identify potential improvement areas and improvement actions. Further CenPEEP is also associated in carrying out water audit of stations and taking corrective actions for reduction in water consumption.
Water Withdrawal per year (in lakh KL)
Sl. No. |
Type of water |
Quantity Consumed |
 |  |
2018-19 |
1 |
Total Water withdrawal |
5932.45* |
2 |
Per unit withdrawal |
3.04* Litre/kwh |
*Water calculated on closed loop systems |
CenPEEP is also involved in structured and statutory energy audits, which helps to identify potential areas of improvement in APC reduction to be addressed within time bound implementation schedule.
CenPEEP is actively involved in training and development of power professionals for the Company and other utilities in the power sector in the areas of Boiler &Â Auxiliaries, Turbine &Â Auxiliaries, Cooling Towers, RCM, PdM technologies etc.
Your Company has taken Electric Power Research Institutesâ membership in the areas of Boiler life &Â Availability improvement, Steam Turbine-Generators &Â Aux. system and Combustion &Â Coal Quality impacts to increase the knowledge, expertise of the company and undertake collaborative research projects for improving efficiency and reliability of units.
CenPEEP coordinated implementation of Perform, Achieve &Â Trade (PAT) scheme under Prime Ministerâs National Mission on Enhanced Energy Efficiency (NMEEE) in your Companyâs coal &Â gas plants. As per notification, Companyâs coal and gas stations exceeded the Net Heat Rate improvement targets and earned net 170653 EScerts (Energy saving certificates) in PAT-1 cycle. Your Company participated in EScerts trading &Â purchased required EScerts. Subsequent to the trading, your Company is having 161759 EScerts that will be used for PAT - II cycle.
Performance &Â Guarantee tests are being coordinated by CenPEEP which includes approval of procedure, conducting test &Â its evaluation.
Your Company has taken an initiative for complete replacement of existing lighting with LED light fittings at its all stations including townships. Till March 2019, 8.5 lakh LED fittings (70.4 % of the population) have been replaced.
19. NETRA
Your Company has assigned 1% of PAT for R&D activities focused to address the major concerns of the sector as well as the future technology requirements of the sector. In this effort, your Company has established NTPC Energy Technology Research Alliance (NETRA) as state-of-the-art center for research, technology development and scientific services in the domain of electric power to enable seamless work flow right from concept to commissioning. The focus areas of NETRA are - Efficiency Improvement &Â Cost Reduction; New &Â Renewable Energy; Climate Change &Â Environmental protection which includes water conservation, Ash utilization &Â Waste Management. NETRA also provides Advanced Scientific Services to its stations and other utilities in the area NDE, Metallurgy, failure analysis, oil/water chemistry, environment, electrical, Rotor dynamics etc. for efficient performances.
Research Advisory Council (RAC) of NETRA comprising eminent scientists and experts from India and abroad is in place to steer research direction. Padma Bhushan Dr. V.K. Saraswat, former Secretary, DRDO, and member of NITI Aayog is the Chairman of RAC.
Scientific Advisory Council (SAC) chaired by Director (Tech.) and Director (Operations), with Regional Executive Directors, ED (Engg.), ED (OS) and ED (NETRA) as its member, provides directions for undertaking specific applied research projects aimed to develop techniques in power plant for efficient, reliable and environment friendly operation with emphasis on reducing cost of generation.
Initiatives are taken to develop technologies for reducing forced outages, installing intelligent online monitoring of critical components, understanding the likely damages due to corrosion and providing appropriate solutions etc. Effort is being made for reducing cost of generation by either increasing the overhaul cycle or reducing overhaul duration through correct and proper health assessment of critical components, developing diagnostic tools and ensuring environmental &Â safety compliances. The prime thrust is towards clean and economic power generation. IPRs have also been generated for the work carried out by NETRA.
NETRA has collaborations with National Institutes like IITâs, IISc-Bangalore, NML, CSIR labâs, IOCL R&D, CPRI, CBRI Roorkee etc. to promote research in the field of CFD, Flow batteries, Renewable, environment, water chemistry, ash utilization, process development, etc.
NETRA also has collaborations with international institutions such as NETL-USA, Curtin University-Australia; Newcastle University-Australia, VGB-Germany, DLR / ISE-Germany, Tokyo University etc.
NETRA laboratories are ISO 17025 accredited and provide high end scientific services to all your Companyâs stations as well as many other utilities. NETRA NDT laboratory is also recognized as Remnant Life Assessment Organization under the Boiler Board Regulations,1950.
Phase-II of NETRA infrastructure is under construction with approx. 21000 sq. m floor area.
The details of activities undertaken by NETRA are given in Annexure-III.
20. IMPLEMENTATION OF OFFICIAL LANGUAGE
Your Company took several initiatives for the progressive use of Hindi in the day to day official work and implementation of Official Language policy of the Union of India in your Company. The compliance of Official Language policy in our projects and regional headquarters was inspected and need based suggestions were given to the respective Heads of offices in this regard.
Quarterly meetings of Official Language Implementation Committee were held in which extensive discussions took place on progressive use of Hindi and the ways and means to bring about further improvements.
Hindi Divas was celebrated on 14th September 2018 and Hindi Fortnight was organized from 01-15 September 2018 at the Corporate Centre as well as regional headquarters and projects/stations to create awareness among the employees, associates and their family members. Our biannual Hindi magazine âVidyut Swarâ was published (in digitized form) to promote creative writing in Hindi. A poetry collection of employees titled âUrja Pravahâ was released by the Honâble M.Ps of Parliamentary Committee on Official Languages at Rajkot on 18.01.2019. Annual conference of Hindi Officers was organized on 6th and 7th October 2018 to review the progress of Rajbhasha in the Company.
Employees of your Company were motivated to use Hindi in official work by organizing Hindi workshops, Unicode Hindi Computer Training along with Hindi e-tools and popularization of Hindi incentive schemes. Hindi webpage was updated with important information of Rajbhasha for employees.
The second sub-committee of Parliament on official Language had inspected our units, reviewed the progress of Rajbhasha implementation and appreciated our efforts.
Your Companyâs website also has a facility of operating in a bilingual form, in Hindi as well as in English.
21. VIGILANCE
21.1 Vigilance Mechanism:
Your Company ensures transparency, objectivity and quality of decision making in its operations, and to monitor the same, the Company has a Vigilance Department headed by Chief Vigilance Officer, a nominee of Central Vigilance Commission. The Vigilance set up in your Company consists of Vigilance Executives in Corporate Centre and Projects. In Projects, the Vigilance Executives report to the Project Head in administrative matters but in functional matters, they report to Chief Vigilance Officer.
Your Companyâs Corporate Vigilance Department consists of four Cells as under:
- Â Â Â Vigilance Investigation and Processing
- Â Â Â Departmental Proceedings
- Â Â Â Technical Examination
- Â Â Â MIS
These cells deal with various facets of vigilance mechanism. The vigilance works have been assigned region wise Vigilance Officers at Corporate Centre (Regional Vigilance Executive) for speedier disposal. Senior officials of Vigilance Department comprising GM (Vigilance), Regional Vigilance Executives and Head of DPC/MIS Cell meet regularly to discuss common issues having in order to ensure efficient and uniform working in all Regions. This facilitates transparency, efficiency and effectiveness of Vigilance functionaries by making use of collective knowledge, experience and wisdom of Vigilance Executives as well as breaking of compartmentalization and abridging of strengths &Â weaknesses.
During 2018-19, 110 complaints were investigated by Vigilance department, out of which 58 complaints were finalized while the remaining 52 complaints were under various stages of investigation as on 31.03.2019. Appropriate disciplinary action was initiated against the involved employees along with system improvements, wherever found necessary. 170 surprise checks were conducted during the period and recovery of Rs. 2,86,17,617/- was affected against various discrepancies detected during investigation. During the last year, a total of 37 Preventive Vigilance Workshops were conducted at vaious projects/ places in which 1143 employees participated.
21.2 Â Â Â Implementation of Integrity Pact
The Integrity pact has been implemented in your Company since 2009. Presently, tenders having estimated value of Rs. 10 crore (excluding taxes and duties) and above are covered under the Integrity Pact.
21.3 Â Â Â Implementation of various policies
As per the provisions of Section 619(3) of the Companies Act, 1956, Fraud Prevention Policy has been implemented in your Company and suspected fraud cases, referred by the Nodal Officers to Vigilance Department are investigated immediately to avoid/ stop fraudulent behaviors as defined in âFraud Prevention Policyâ. Whistle Blower Policy has also been in place in your Company as per SEBI guideline to strengthen a culture of transparency and trust in the organization, providing employees with a framework/ procedure for responsible and secure reporting of improper activities (whistle blowing) within the company and to protect employees wishing to raise a concern about improper activity/serious irregularities within your Company. A complaint handling policy is also in place which is designed to provide guidance on the manner in which your Company receives and handles complaints against its employees, suppliers / contractors etc.
21.4 Â Â Â vigilance Awareness week and workshops
Vigilance Awareness Week-2018 (VAW) was observed in your Company, its Subsidiaries &Â Joint Venture companies from 29th October to 3rd November 2018. The observance of the Vigilance Awareness Week commenced with the Integrity Pledge taken by employees across the country on 29th OctoberRs. 2018 steered by the respective heads of Projects/Stations/Regions/Offices &Â Corporate Centre. The beginning of Vigilance Awareness Week became a special event as Honâble Central Vigilance Commissioner addressed its employees on 29.10.18. During his address, he spoke about the need for promoting Transparency, Accountability and Integrity in public life and exhorted your Companyâs team to become a âModel PSU.
The Activities during VAW-2018 were organized across India covering 20 states involving more than 35,000 students &Â 40,000 citizens besides employees of the Company, its Subsidiaries &Â Joint Ventures. With the collective efforts of your Companyâs Team, main thrust was given to outreach activities. Total 243 schools and 102 colleges were reached out during the week. Besides holding debates and essay competitions in these educational institutions, around 30 Integrity Clubs were made functional. 67 Gram Sabhas were organized with almost 10,000 plus participants. 54 workshops/seminars were conducted with 4,500 plus participants. 22,400 citizens including employees took the e-pledge, while around 20,000 plus citizens were motivated for taking oral pledge.
The events &Â activities across your Company were organized focusing on the theme of VAW-2018 âEradicate Corruption - Build a New Indiaâ. To ensure wider participation of students &Â citizens, events &Â activities were organized at Schools and Colleges. Gram Sabhas in the rural areasâ &Â seminars in the urban areas were also organized in the vicinity of our Stations/Projects/ Offices/ Corporate Centre. Special focus was given to the cities assigned to your Company for outreach activities namely New Delhi, Varanasi, Farakka, Korba &Â Talcher. For general awareness, the FM Radio medium was also used to air the CVC message against corruption at New Delhi, Patna, Hyderabad &Â Visakhapatnam.
Wide publicity to these events was given across cities near establishments viz. Delhi, NCR, Lucknow, Patna, Varanasi, Dehradun, Raipur, Mumbai, Bhubaneswar, Hyderabad and Ranchi, through newspaper advertisements, distribution of pamphlets etc.
Besides, E-magazine special issues were released at many projects &Â regional offices.
21.5 System improvement measures undertaken during 2018-19
- Â Â Â Major System improvement initiative with regard to security issues at our Coal Mines was taken up by Corporate Vigilance to ensure no pilferage / theft of coal from Mines of your Company. In this regard the recommendations of the cross functional committee have been approved by CVO and CMD and the same have been put in place from April 2018.
- Â Â Â Uniform guidelines for DGR sponsored security contracts operated at our units have been finalized and issued for implementation in November 2018.
- Â Â Â On recommendations of Vigilance department, Corporate contracts has issued a circular modifying the guidelines for evaluation of bids relating to abnormally high and low quoted rates by the Agencies.
- Â Â Â Various system improvement measures have also been suggested by Vigilance relating to TA claims by employees like Hotel Booking through Travel SBT, Standardization of Hotels in B - Class cities, payment of Hotel Bills through Online Mode etc. A system of issuing SBI travel card to executives for payment of hotel bills has already been implemented in this regard.
- Â Â Â A monthly publication of Vigilance in house e-flyer named âVIGdomâ has been introduced from November 2018 for sharing vigilance related learnings/knowledge with employees.
22. Â Â Â Redressal of pubuc grievances
Your Company is committed for resolution of public grievance in efficient and time bound manner. Chief General Manager(HR) has been designated as Director (Grievance) to facilitate earliest resolution of public grievances received from President Secretariat, Prime Ministerâs Office, Ministry of Power etc.
In order to facilitate resolution of grievances in transparent and time bound manner, Department of Administrative Reforms &Â Public Grievances, Department of Personnel &Â Training, Government of India has initiated web-based monitoring system at www.pgportal.gov.in.
As per directions of GOI, public grievances are to be resolved within two months time. If it is not possible to resolve the same within two monthsâ period, an interim reply is to be given. Your company is making all efforts to resolve grievances in above time frame.
23. Â Â Â RIGHT TO INFORMATION
Your Company has implemented Right to Information Act, 2005 in order to provide information to citizens and to maintain accountability and transparency. The Company has put RTI manual on its website for access to all citizens of India and has designated a Central Public Information Officer (CPIO), an Appellate Authority and APIOs at all sites and offices of the Company.
During 2018-19, 1,558 applications (including pending applications from FY 2017-18) were replied to, under the RTI Act, 2005.
24. Â Â Â USING INFORMATION AND COMMUNICATION TECHNOLOGY FOR PRODUCTIVITY ENHANCEMENT
The Information Technology in your Company is not only a service provider but also being used as a key business driver. Since 2008, your Company has implemented Enterprise Resource Planning (ERP) application to integrate all its business functions. PI data system has been implemented to capture, display and analyze the plant performance parameters on real time basis which is helping the operation and maintenance of our power plants. Non-ERP web based applications have been developed in balance areas such as Engineering Drawings approval, Quality Control Management, Hospital Management, Labour Management, Transit Camp Management, RTI, Security Control etc.
As a commitment towards environment, your Company has reengineered and redesigned the business processes to paperless mode. The digitization initiative âproject pRADipâ resulted in implementation of e-Office, digitization of documents and paperless processes for different functions. This has not only saved tons of paper but also resulted in faster decision making, transparency and improved efficiency for your Company.
Your Companyâs plants and Offices across India, are connected to Corporate Office and main Data-Centre (DC) through 2x34 mbps MPLS links to facilitate seamless communication. The DC and DR (Disaster Recovery) site is connected with 486 mbps MPLS links for data backup. The progress of ongoing projects and issues of the running power stations are discussed regularly over high definition Video Conferencing system at Project Monitoring Centre of Corporate Office. Desktop to desktop VC facility also has been provided to senior executives to conduct review meeting from their seat.
To further leverage IT in your Company, an IT Strategy has been finalized. The IT Strategy aims to achieve 100% Paperless Office, Data Analytics for decision making, induction of new technology such as IIOT, AI, Machine learning etc. over next 2 years.
Some of the highlights of the progress in IT/ERP area during the year 2018-19 were as follows:
- Â Â Â Digitization - e-Office was implemented. Processes were redesigned for working in paperless mode.
- Â Â Â ERP - A number of new modules were introduced in ERP. An all new PMS system with many new features was launched. A new process for procurement budget and automatic PR creation put in place. New CERC tariff norms for 2019-24 implemented.
- Â Â Â Mail and Messaging Services - The mail and messaging services were upgraded. All users were provided with min. 10GB of mail box size. DR set up for mailing system was commissioned.
- Â Â Â Security - No major security breach was observed during the year 2018-19. A 24x7 Security Operation Centre(SOC) is in operation where round the clock monitoring of all external and internal data traffic is being done with latest tools through SOC and latest threat management tools are being applied to prevent any cyber-attack or data theft. Timely communication being sent to all users based on threat perception. Your Companyâs data centers at Noida and Hyderabad are ISO 27001 certified for security compliance.
- Â Â Â A number of new web applications and mobile apps such as Coal Monitoring Portal, Ash Management Portal, CPSE Conclave action points monitoring portal etc. have been launched to take care of requirements of various internal departments and Ministry of Power.
25. GROUP COMPANIES : SUBSIDIARIES AND JOINT VENTURES
Your Company has currently 6 subsidiary companies (including Nabinagar Power Generating Company Limited which has become a wholly-owned subsidiary company upon acquisition of stake of BSPGCL in NPGCL in June 2018) and 18 joint venture companies for undertaking specific business activities.
Besides 18 joint venture companies, NTPC-SCCL Global Ventures Private Limited has been dissolved and your Company has decided to exit from International Coal Ventures Private Limited, in view of lack of suitable commercially viable opportunities for thermal coal.
A statement containing the salient feature of the financial statement of your Companyâs Subsidiaries, Associate Companies and Joint Ventures as per first proviso of section 129(3) of the Companies Act, 2013 is included in the consolidated financial statements.
26. INFORMATION PURSUANT TO STATUTORy AND OTHER REQUIREMENTS
Information required to be furnished as per the Companies Act, 2013 and as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 are as under:
26.1 Â Â Â Statutory Auditors
The Statutory Auditors of your Company are appointed by the Comptroller &Â Auditor General of India. Joint Statutory Auditors for the financial year 2018-19 were (i) M/s T R Chadha &Â Co LLP, Chartered Accountants, New Delhi (ii) M/s S.N. Dhawan &Â Co. LLP, Chartered Accountants, New Delhi, (iii) M/s Sagar &Â Associates, Chartered Accountants, Hyderabad, (iv) M/s Kalani &Â Co., Chartered Accountants, Jaipur, (v) M/s P A &Â Associates, Chartered Accountants, Bhubaneshwar, (vi) M/s S.K. Kapoor &Â Co., Chartered Accountants, Kanpur and (vii) M/s B M Chatrath &Â Co LLP, Chartered Accountants, Kolkata.
The appointment of the Statutory Auditors for the financial year 2019-20 are yet to be made by the Comptroller &Â Auditor General of India.
26.2 Â Â Â Management comments on Statutory Auditorsâ Report
The Statutory Auditors of the Company have given an un-qualified report on the accounts of the Company for the financial year 2018-19. However, they have drawn attention under âEmphasis of Matterâ to the following notes:
(i) Â Â Â Note No. 32 (a) regarding billing and recognition of sales on provisional basis pending disposal of the Companyâs petition before CERC on the measurement of GCV of coal on âAs receivedâ basis measured on wagon top at the unloading point, on the adjustment of loss of GCV for the period 2014-19 and other related matters as mentioned in the said note.
(ii) Â Â Â Note No. 42 in respect of a Companyâs project consisting of three units of 800 MW each where the order of NGT has been stayed by the Honâble Supreme Court of India; the matter is sub-judiced and the units have since been declared commercial.
(iii) Note No. 57(iii)(b) with respect to appeal filed by the Company with the Honâble High Court of Delhi in the matter of Arbitral award pronounced against the Company and the related provision made/disclosure of contingent liability as mentioned in the said note.
The issues have been adequately explained in the respective Notes referred to by the Auditors.
26.3 Â Â Â Review of accounts by Comptroller &Â Auditor General of india (C&AG)
The Comptroller &Â Auditor General of India, through letter dated 01.07.2019, has given âNILâ Comments on the Standalone Financial Statements of your Company for the year ended 31 March 2019 after conducting supplementary audit under Section 143 (6) (a) of the Companies Act, 2013.
The Comptroller &Â Auditor General of India, through letter dated 01.07.2019, has also given âNILâ Comments on the Consolidated Financial Statements of your Company for the year ended 31 March 2019 after conducting supplementary audit under Section 143 (6) (a) read with Section 129 (4) of the Companies Act, 2013.
As advised by the Office of the Comptroller &Â Auditor General of India (C&AG), the comments of C&AG for both the standalone and consolidated financial statements of your Company for the year ended 31 March 2019 are being placed with the report of Statutory Auditors of your Company elsewhere in this Annual Report.
26.4 Â Â Â COST AUDIT
As prescribed under the Companies (Cost Records and Audit) Rules, 2014, the Cost Accounting records are being maintained by all stations of your Company.
The firms of Cost Accountants appointed under Section 148(3) of the Companies Act, 2013 for the financial year 2018-19 were (i) M/s R M Bansal &Â Co., Cost Accountants, U.P., (ii) M/s ABK &Â Associates, Cost Accountants, Mumbai, (iii) Dhananjay V Joshi &Â Associates, Cost Accountants, Pune, (iv) M/s DGM &Â Associates, Cost Accountants, Kolkata, (v) M/s Tanmaya S Pradhan &Â Co., Cost Accountants, Sambalpur, (vi) M/s K L Jaisingh &Â Co., Cost Accountants, U.P. and (vii) M/s Niran &Â Co., Cost Accountants, Bhubaneshwar.
The due date for filing consolidated Cost Audit Report in XBRL format for the financial year ended March 31, 2018 was upto September 27, 2018 and the consolidated Cost Audit Report for your Company was filed with the Central Government on August 24, 2018.
The Cost Audit Report for the financial year ended March 31, 2019 shall be filed within the prescribed time period under the Companies (Cost Records &Â Audit) Rules, 2014.
26.5 Â Â Â Exchange risk Management
Your Company is exposed to foreign exchange risk in respect of contracts denominated in foreign currency for purchase of plant and machinery, spares and fuel for its projects/ stations and foreign currency loans.
During financial year 2018-19, your Company has not entered into any derivative contract in respect of foreign currency loans exposure.
26.6 Â Â Â performance evaluation of the directors and the Board
Ministry of Corporate Affairs (MCA), through General Circular dated 5th June, 2015, has exempted Government Companies from the provisions of Section 178 (2) of the Companies Act, 2013 which provides about manner of performance evalution of Board of Directors, Committee of Board of Directors and Director by the Nomination and Remuneration Committee. The aforesaid circular of MCA further exempted listed Govt. Companies from provisions of Section 134 (3) (p) of the Companies Act, 2013 which requires mentioning the manner of formal evaluation of its own performance by the Board and that of its Committees and Individual Director in Boardâs Report, if directors are evaluated by the Ministry or Department of the Central Government which is administratively in charge of the company, or, as the case may be, the State Government as per its own evaluation methodology.
Now, MCA, through Notification dated 05.07.2017, has amended Schedule IV to the Companies Act, 2013 with respect to performance evaluation of directors of the Government Companies that in case of matters of performance evaluation are specified by the concerned Ministries or Departments of the Central Government or as the case may be, the State Governments and such requirements are complied with by the Government companies, such provisions of Schedule IV are exempt for the Government Companies.
Similar exemption has been requested from SEBI under the SEBI LODR.
In this regard, Deptt. of Public Enterprises (DPE) has already laid down a mechanism for performance appraisal of all functional directors. DPE has also initiated evaluation of Independent Directors.
Your Company enters into a Memorandum of Understanding (MOU) with Government of India each year, demarcating key performance parameters for the Company. The performance of the Company and Board of Directors are evaluated by the Department of Public Enterprises vis-a-vis MOU entered into with the Government of India.
26.7 Secretarial Audit
The Board had appointed M/s J.K. Gupta &Â Associates, Company Secretaries, to conduct Secretarial Audit for the financial year 2018-19. The Secretarial Audit Report for the financial year ended March 31, 2019 is annexed here and marked as Annexure- XI to this Report.
The Managementsâ Comments on Secretarial Audit Report are as under:
Observations |
Managementâs Comments |
Compliance of Regulation 17 (1) of Securities and Exchange Board of India (Listing Obligations &Â Disclosure Requirements) Regulations, 2015 and Clause 3.1.4 of the DPE Guidelines on Corporate Governance for Central Public Sector Enterprises with respect to the appointment of requisite no. of Independent Directors on the Board of the Company. |
During the financial year 2018-19, for the period 01.04.2018 to 29.07.2018, the number of independent directors on the Board of the Company was less as required under SEBI LODR and DPE Guidelines on Corporate Governance. As per the provisions of the Articles of Association of the Company, the power to appoint Directors vests with the President of India. The Company had requested Ministry of Power to appoint requisite number of Independent Directors on the Board of the Company for compliance of the above regulations and guidelines. The Company became compliant with LODR and with the Guidelines w.e.f. 30.07.2018. |
Compliance of Regulation 17(10) &Â 25(4) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has not carried out the performance evaluation of the Directors. |
Refer Para 26.6 |
26.8 Particulars of contracts or arrangements with related parties
During the period under review, your Company had not entered into any material transaction with any of its related parties. The Companyâs major related party transactions are generally with its subsidiaries and associates. All related party transactions were in the ordinary course of business and were negotiated on an armâs length basis except with Utility Powertech Limited, which are covered under the disclosure of Related Party Transactions in Form AOC-2 (Annexure- IX) as required under Section 134(3)(h) of the Companies Act, 2013.
They were intended to further enhance your Companyâs interests.
Web-links for Policy on Materiality of Related Party Transactions and also on Dealing with Related Party Transactions have been provided in the Report on Corporate Governance, which form part of the Annual Report.
26.9 Â Â Â Significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and companyâs operations in future: NIL
26.10 Â Â Â Adequacy of internal financial controls with reference to the financial reporting: The Company has in place adequate internal financial controls with reference to financial reporting. During the year, such controls were tested and no reportable material weakness in the design or operation was observed.
26.11 Â Â Â Loans and investments
Details of Investments covered under the provisions of Section 186 of the Companies Act, 2013 forms part of financial statement, attached as a separate section in the Annual Report for FY 2018-19.
The loan granted by your Company to its Joint Venture Company namely National High Power Test Laboratory Private Limited (NHPTL) during 2017-18 for a period of six months was extended upto 31st March 2021. Loans granted to subsidiaries and Joint venture companies are disclosed at Note 53 to the stand-alone financial statements for the year 2018-19.
26.12 Â Â Â Prevention, Prohibition and Redressal of Sexual Harassment of Women at Workplace
Your Company has in place a Policy on Prevention, Prohibition and Redressal of Sexual Harassment of Women at Workplace in line with the requirements of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition &Â Redressal) Act, 2013. Internal Complaints Committees (ICC) have been constituted at all Projects/ locations to redress complaints received regarding sexual harassment. All female employees (permanent, contractual, temporary, trainees) are covered under this policy. Every three years, the constitution of these committees is changed and new members are nominated.
During the year 2018-19, three cases were reported to different ICCs across your Company, out of which one case was resolved and the other two cases are under process/ investigation.
26.13 Â Â Â Procurement from MSEs
The Government of India has notified a Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012. The total procurement made from MSEs (including MSEs owned by SC/ST entrepreneurs) during the year 2018-19 was Rs. 1530.79* crore, which was 37.59% of total annual procurement of Rs. 4072.58* crore against target of 25% of total procurement made by your Company.
The total procurement made from MSEs owned by SC/ ST entrepreneurs during the year 2018-19 was Rs.25.09* crore, which was 0.62% against the target of 4% of total procurement value.
*It excludes Primary fuel, Secondary fuel, Steel &Â Cement, the Project procurement including R&M packages and procurement from OEM, OES &Â PAC sources.
Your Company orgainsed 21 vendor development programmes for MSEs across the Company, out of which 2 vendor development programmes were exclusively organized for SC/ST MSE entrepreneurs. Annual procurement plan for 2018-19 from MSEs is uploaded on www.ntpc.co.in.
26.14 Â Â Â Particulars of Employees
As per provisions of Section 197(12) of the Companies Act, 2013 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, every listed company is required to disclose the ratio of the remuneration of each director to the median employeeâs remuneration and details of employees receiving remuneration exceeding limits as prescribed from time to time in the Directorsâ Report.
However, as per notification dated 5th June, 2015 issued by the Ministry of Corporate Affairs, Government Companies are exempted from complying with provisions of Section 197 of the Companies Act, 2013. Therefore, such particulars have not been included as part of Directorsâ Report.
26.15 Â Â Â Extract of Annual Return:
Extract of Annual Return of your Company is annexed herewith as Annexure- VI to this Report.
26.16 Â Â Â Information on Number of Meetings of the Board held during the year, composition of committees of the Board and their meetings held during the year, establishment of vigil mechanism/ whistle blower policy and web-links for familiarization/ training policy of directors, Policy on Materiality of Related Party Transactions and also on Dealing with Related Party Transactions and Policy for determining âMaterialâ Subsidiaries have been provided in the Report on Corporate Governance, which forms part of the Directors Report at Annexure-II.
26.17 Â Â Â Para on development of risk management policy including therein the elements of risks are given elsewhere in the Annual Report.
26.18 Â Â Â Your Company has complied with the applicable Secretarial Standards.
26.19 Â Â Â No disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review:
1. Â Â Â Issue of equity shares with differential rights as to dividend, voting or otherwise.
2. Â Â Â Issue of shares (including sweat equity shares) to employees of the Company under any scheme.
The particulars of annexures forming part of this report are as under:
Particulars |
Annexure |
Management Discussion &Â Analysis |
I |
Report on Corporate Governance |
II |
Information on conservation of energy, technology absorption and foreign exchange earnings and outgo |
III |
Statistical information on persons belonging to Scheduled Caste / Scheduled Tribe categories |
IV |
Information on Differently Abled persons |
V |
Extract of Annual Return |
VI |
Annual Report on CSR Activities |
VII |
Project Wise Ash produced and utilized |
VIII |
Disclosure of Related Party Transactions in Form AOC-2 |
IX |
Business Responsibility Report for the year 2018-19 |
X |
Secretarial Audit Report in Form MR-3 |
XI |
27. BOARD OF DiRECTORS &Â KEy MANAGERiAL PERSONNEL
Shri Vivek Kumar Dewangan, JS&FA, Ministry of Power had been appointed as Government Nominee Director w.e.f. 28.04.2018.
Dr. K.P. Kylasanatha Pillay and Dr. Bhim Singh were appointed as Independent Directors on 30.07.2018.
Ms. Archana Agrawal, JS, Ministry of Power has been appointed as Government Nominee Director w.e.f. 07.08.2018. Ms. Archana Agrawal ceased to be Government Nominee Director w.e.f. 22.04.2019.
Shri Anniruddha Kumar, JS, Ministry of Power ceased to be Government Nominee Director w.e.f. 30.07.2018.
Dr. (Ms.) Gauri Trivedi ceased to be Independent Director w.e.f. 15.11.2018 on completion of three yearsâ tenure. Dr. (Ms.) Gauri Trivedi was re-appointed as an Independent Director w.e.f. 16.11.2018 for a period of one year.
Shri K. Biswal ceased to be Director (Finance) of the Company w.e.f. 08.12.2018 consequent upon completion of five yearsâ tenure.
Shri K. Sreekant, Director (Finance), Power Grid Corporation of India Limited had been entrusted with the additional charge of the post of Director (Finance) of your Company w.e.f. 19.03.2018. His tenure was extended from time to time as additional charge of the post of Director (Finance) of the Company till 02.11.2018.
Shri K. Sreekant was again entrusted with the additional charge of the post of Director (Finance) of your Company w.e.f. 12.02.2019.
Shri Seethapathy Chander ceased to be Independent Director w.e.f. 12.06.2019 on completion of three yearsâ tenure.
Shri Anurag Agarwal, Additional Secretary and Financial Advisor, Ministry of Power has been appointed as Government nominee director w.e.f. 01.07.2019.
Shri K.P. Gupta ceased to be the Executive Director &Â Company Secretary on 31.07.2018 consequent upon his superannuation. Ms. Nandini Sarkar, General Manager was appointed as Company Secretary &Â Compliance Officer w.e.f. 01.08.2018.
The Board wishes to place on record its deep appreciation for the valuable services rendered by Shri Annirudha Kumar, Ms. Archana Agrawal, Shri K. Biswal, Shri Seethapathy Chander and Shri K.P. Gupta during their association with the Company.
In accordance with Section 152 of the Companies Act, 2013 and the provisions of the Articles of Association of your Company, Shri A.K. Gupta, Director, shall retire by rotation at the Annual General Meeting of your Company and, being eligible, offers himself for re-appointment.
28. DIRECTORSâ RESPONSIBILITy STATEMENT
As required under Section 134 (5) of the Companies Act, 2013, your Directors confirm that:
1. Â Â Â in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
2. Â Â Â the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year 2018-19 and of the profit of the Company for that period;
3. Â Â Â the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
4. Â Â Â the Directors had prepared the Annual Accounts on a going concern basis;
5. Â Â Â the Directors, had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and
6. the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
29. ACKNOWLEDGEMENT
The Directors of your Company acknowledge with deep sense of appreciation, the co-operation received from the Government of India, particularly the Prime Ministerâs Office, Ministry of Power, Ministry of New &Â Renewable Energy, Ministry of Finance, Ministry of Environment, Forests &Â Climate Change, Ministry of Coal, Ministry of Petroleum &Â Natural Gas, Ministry of Railways, Department of Public Enterprises, Department of Investment and Public Asset Management, Central Electricity Authority, Central Electricity Regulatory Commission, Comptroller &Â Auditor General of India, Appellate Tribunal for Electricity, State Governments, Regional Power Committees, State Utilities and Office of the Attorney General of India.
The Directors of your Company also convey their gratitude to the shareholders, various international and Indian Banks and Financial Institutions for the confidence reposed by them in the Company.
The Board also appreciates the contribution of contractors, vendors and consultants in the implementation of various projects of the Company.
We also acknowledge the constructive suggestions received from the Office of Comptroller &Â Auditor General of India, Statutory Auditors and Cost Auditors.
We wish to place on record our appreciation for the untiring efforts and contributions made by the employees at all levels to ensure that the Company continues to grow and excel.
                                                                                          For and on behalf of the Board of Directors
                                                                                                                                    (Gurdeep Singh)
                                                                                                          Chairman & Managing Director
Place: New Delhi
Date: 8th July, 2019
Mar 31, 2018
Dear Members,
The Directors are pleased to present the 42nd Annual Report on the business and operations of the Company along with audited financial statements for the year ended March 31, 2018.
Financial Year 2017-18 had been yet another year of achievements for your Company.
Major highlights of your company for the year 2017-18 are:
- Â Â Â Power projects of 3,478 MW (including 910 MW through JV and Subsidiary Companies) were commissioned.
- Â Â Â Declared 4,423 MW Power Projects (including subsidiaries) on commercial generation including 250 MW of Solar, 50 MW of Wind and 8MW of Small Hydro Projects.
- Â Â Â PLF of 77.90% as against all India PLF of 60.72% with Talcher Thermal station of your Company recording 93.820% PLF. 12 Stations (including JVs) were in the top 25 in the country in terms of PLF. 8 coal based stations out of 20 commercial Stations achieved more than 85% PLF.
- Â Â Â Excellent MOU rating by Government of India for the year 2016-17.
- Â Â Â Group Capital Expenditure (CAPEX) including CAPEX of JV/ subsidiaries of your company for the year 2017-18 was Rs, 31,036.56 crore.
- Â Â Â 100% realization of current bills from customers.
- Â Â Â Revenue from operations was Rs, 83,452.70 crore and total revenue was Rs, 85,207.95 crore. Net Profit after Tax (PAT) was Rs,10,343.17 crore.
- Â Â Â Dividend of Rs, 5.12 per share comprising interim dividend of Rs, 2.73 per equity share paid in February 2018 and recommended final dividend of Rs, 2.39 per equity share for the year 2017-18, subject to approval of the shareholders.
- Â Â Â Cash contribution of ' 6,297.39 crore to Government of India's exchequer through dividend, dividend distribution tax and income tax in the financial year 2017-18.
- Â Â Â Market capitalization of Rs, 1,39,925.53 crore as on 31.03.2018.
- Â Â Â Planted approx. 1 million trees during 2017-18 to mitigate the GHG emissions arising out of plant operations, thereby bringing total to about 33 million planted trees till the end of 31.03.2018.
- Â Â Â About 4.13 crore fly ash bricks produced by fly ash brick plants of your Company's stations, which are being utilized in construction of areas of plant, ash dyke and of township.
- Â Â Â Awarded for overall Best Financial Performance by Governance Now
- Â Â Â Bagged 2nd position at the BML Munjal Award 2018 for sustained excellence in Learning and Development.
- Â Â Â Awarded for Excellence in Maharatna category at India Pride Awards.
You will appreciate the fact that your company recorded growth and excellent performance despite numerous challenges before the sector like coal shortage, strict emission norms, etc.
*1US $= Rs,65.63 as on March 31, 2018
Particulars |
2017-18 |
2016-17 |
||
Rs, Crore |
US $ Mn* |
Rs, Crore |
US $ Mn* |
|
Revenue |
 |  |  |  |
Revenue from Operations (including energy sales, sale of energy through trading, consultancy fee, etc) |
83,452.70 |
12,715.63 |
78,273.44 |
11,926.47 |
Other income |
1,755.25 |
267.45 |
1,068.86 |
162.86 |
Total Revenue |
85,207.95 |
12,983.08 |
79,342.30 |
12,089.33 |
Expenses |
 |  |  |  |
Fuel |
48,315.47 |
7,361.80 |
47,572.19 |
7,248.54 |
Energy purchased for trading |
1,313.51 |
200.14 |
- |
- |
Employee benefits expense |
4,734.67 |
721.42 |
4,324.60 |
658.94 |
Finance costs |
3,984.25 |
607.08 |
3,597.20 |
548.10 |
Depreciation, amortization and impairment expense |
7,098.86 |
1,081.65 |
5,920.82 |
902.15 |
Other expenses |
7,421.73 |
1,130.84 |
5,092.38 |
775.92 |
Total expenses |
72,868.49 |
11,102.93 |
66,507.19 |
10,133.65 |
Profit before exceptional items, tax and regulatory deferral account balances |
12,339.46 |
1,880.15 |
12,835.11 |
1,955.68 |
Exceptional items - impairment loss on investment |
- |
- |
782.95 |
119.30 |
Profit before tax |
12,339.46 |
1,880.15 |
12,052.16 |
1,836.38 |
Tax expense |
2,549.29 |
388.43 |
2,930.82 |
446.57 |
Profit for the year before regulatory deferral account balances |
9,790.17 |
1,491.72 |
9,121.34 |
1,389.81 |
Net movement in regulatory deferral account balances (net of tax) |
553.00 |
84.26 |
263.92 |
40.21 |
Profit for the year |
10,343.17 |
1,575.98 |
9,385.26 |
1,430.02 |
 | ||||
Appropriations |
2017-18 |
2016-17 |
||
Rs, Crore |
US $ Mn* |
Rs, Crore |
US $ Mn* |
|
Transfer to bonds/ debentures redemption reserve |
1,637.75 |
249.54 |
1,667.08 |
254.01 |
Transfer to general reserve |
4,000.00 |
609.48 |
4,500.00 |
685.66 |
Dividend paid |
4,040.28 |
615.61 |
3,595.03 |
547.77 |
Tax on dividend paid |
816.40 |
124.39 |
727.79 |
110.89 |
Â
2. DIVESTMENT BY GOVERNMENT
The Government of India has, from time to time, disinvested its stake in your company. During 2017-18, the Government of India divested 7.47% of shares as under:
Sl. No. |
Particulars |
No. of Shares Divested during 2017-18 |
Percentage |
1. |
Offer for Sale in Aug 2017 |
54,71,50,444 |
6.64 |
2. |
Employee Offer for Sale in Sept 2017 |
94,69,848 |
0.11 |
3. |
Bharat 22 ETF Nov 2017 |
5,93,13,616 |
0.72 |
 |
Total |
61,59,33,908 |
7.47 |
In June 2018, the Government of India divested 4,15,67,567 shares through Bharat 22 ETF. The shareholding of Government of India after divestment in your Company stands at 5,09,32,57,695 shares i.e. 61.77 % as on 28.07.2018.
3. DIVIDEND Interim and Final Dividend:
Your company paid interim dividend of Rs, 2.73 per equity share in February 2018 and the Board of your Company has recommended a final dividend of Rs, 2.39 per equity share for the year 2017-18. With this, the total dividend for the year is Rs, 5.12 per equity share of Rs, 10/- each. In the year 2016-17, the total dividend paid was Rs, 4.78 per equity share of Rs, 10/- each.
The dividend payout is 39.06% and the total dividend payout including dividend tax is ~47% of profit after tax.
The final dividend shall be paid after your approval at the Annual General Meeting.
The dividend has been recommended in accordance with your Company's Dividend Distribution Policy which is available at the website link https:// ntpc.co.in/sites/default/files/downloads/ DividendDistributionPolicyofNTPCLimited.pdf.
4. Â Â Â OPERATIONAL PERFORMANCE
During the year, the power stations of your Company generated 265.80 BUs (294.27 BUs including JVs &Â Subsidiaries) of electricity (including solar, hydro, wind &Â small hydro power) which was 20.39% (22.58% including generation by JVs and Subsidiaries) of the total power generated in India registering an increase of 6.19% (6.32% including JVs &Â Subsidiaries) over the previous years' generation of 250.31 BUs by your company (276.77 BUs including JVs &Â Subsidiaries).
The total generation contributed by coal stations is 252.36 BUs during the year against generation of 237.96 BUs last year registering a growth of 6.05%. Generation from coal based units could have been still higher but due to less generation schedule there was opportunity loss of 30.83 BUs. The coal based stations operated at average Plant Load Factor (PLF) of 77.90% (All India PLF was 60.72%) and average Availability Factor of 88.68% on bus bar during the year.
Talcher Thermal station with a PLF of 93.82% was ranked 2nd in the country and 12 Stations (including JVs) of your company were in the top 25 in the country in terms of PLF. Eight coal based stations out of twenty commercial Stations achieved PLF more than 85%.
The gas stations having a capacity of 4,017 MW achieved a higher annual generation of 8.82 BUs at a PLF of 25.05% as against 8.59 BUs last year. Opportunity loss due to less generation schedule on Gas was still higher at 24.45 BUs.
Generation contributed by Koldam hydro station improved to 3.31 BUs against 3.23 BUs achieved last year. Generation from your company's RE stations (Solar+ Wind + Small Hydro) was 1.31 BUs.
5. Â Â Â COMMERCIAL PERFORMANCE
5.1 Billing and Realization
Your Company has realized 100% of its current bills raised for energy supplied in 2017-18, thus achieving this feat for the 15th consecutive year.
Most of the beneficiaries were making their payments within 60 days of billing and had availed attractive rebates as per Company's Rebate Scheme.
Your Company has in place a robust payment security mechanism in the form of Letters of Credit (LC) backed by the Tri-Partite Agreement. Apart from the LCs, payment is secured by the Tri-Partite Agreements (TPAs) signed amongst the State Governments, Govt of India and RBI. As per the TPA, any default in payment by the Discoms of a state can be recovered directly from the account of the respective State Governments with RBI.
The original TPAs signed during 2000-01 were valid up to 31.10.2016. As per the decision of the Union Cabinet and as agreed by the various States and RBI, these TPAs have been extended for a further period of 10 to 15 years. As of now, 29 States/ UTs out of total 31 have signed the TPA documents. The signing process is in progress for the balance States.
5.2 Â Â Â Flexibility in generation and scheduling of thermal power stations to reduce emissions:
The Ministry of Power, Government of India has issued detailed mechanism in April 2018 allowing flexibility in generation and scheduling of thermal power stations to reduce emissions. The scheme provides flexibility to the generating company to supply renewable power in place of thermal power to meet its scheduled generation from that thermal generating station. The generating company may either establish or procure renewable energy generating capacity anywhere in the country. The tariff of the supplied energy either from renewable or coal shall be same as the Energy Charge Rate of that thermal station. The gains, if any, shall be shared with the beneficiaries in 50:50 ratio. In view of the large scale integration of renewable in the grid, Discoms are presently required to arrange balancing power separately to meet the variability of renewable generation. The above scheme supplements requirement of additional balancing power for renewable energy by Discoms. Further, Discoms will be able to meet their RPO obligation without facing any additional financial burden. The scheme also provides opportunity to generating companies to utilize generation from RE sources and also help in reducing emissions. Moreover, the scheme facilitates further RE capacity addition in the country.
5.3 Â Â Â National Merit Order Operation:
With a view of providing cheaper power, your Company has taken various measures to reduce fuel charges through coal swapping, flexibility in usage of coal, etc. In order to maximize utilization of cheaper power, your company has proposed the concept of National Merit Order Operation which envisages flexibility to supply the power requisitioned by beneficiaries / Discoms through Merit Order operation of its stations on national basis, that is, cheaper station of the generating company shall be dispatched up to its maximum capability before scheduling costlier stations till the total power requisitioned by all its beneficiaries / Discoms is met. The gains arising from the above arrangement are proposed to be shared with the beneficiaries. This will ensure optimal utilization of the available resources by running the cheaper generation stations and reducing the average cost of generation. A draft notification has been issued by Ministry of Power vide notification dated 17.07.2018.
5.4 Â Â Â Rebate Scheme for realization of dues:
I n order to encourage early and full realization of dues, your Company has issued âRebate Scheme' for the year 2018-19. In the Scheme for 2018-19, 2.15% rebate shall be allowed for amounts credited to the account of Company on 1st and 2nd of the month against provisional bill. For payment made on 3rd and 4th of the month, rebate of 2.1% and 2.05% rebate on making payment on 5th of the billing month shall be allowed. Thereafter payments made till 8th day of the billing month, a rebate of 2.0% shall be allowed.
From 9th day of the billing month till 30th day of the month next to billing month, rebate on amounts credited to the account of the Company shall gradually reduce from 1.95% to 0%. An additional rebate of 0.1% (maximum) is proposed for beneficiaries who make payment on time consistently during the year.
5.5 Â Â Â Commercial Capacity:
The following units including those of subsidiary companies were declared commercial during the year 2017-18, adding 4,423 MW to commercial capacity of your Company:
Project/ Unit |
Capacity (MW) |
COD* |
Units- Coal Based (I) |
 |  |
Kudgi, Stage-I Unit#1 |
800 |
31.07.2017 |
Mouda, Stage-II Unit#2 |
660 |
18.09.2017 |
Solapur, Unit#1 |
660 |
25.09.2017 |
Unchahar, Unit#4 |
500 |
30.09.2017 |
Bongaigaon, Unit#2 |
250 |
01.11.2017 |
Kudgi, Stage-I Unit#2 |
800 |
31.12.2017 |
Total (I) |
3,670 |
 |
Units -Solar (II) |
 |  |
Mandsaur Solar |
250 |
01.09.2017 |
Total (II) |
250 |
 |
Units - Small Hydro (III) |
 |  |
Singrauli Small Hydro |
8 |
05.03.2018 |
Total (III) |
8 |
 |
Units - Wind (IV) |
 |  |
Rojmal |
50 |
10.11.2017 |
Total (IV) |
50 |
 |
Subsidiaries - Coal Based (V) |
 |  |
Muzaffarpur Thermal Power Station, Stage-II Unit#2 (KBUNL) |
195 |
01.07.2017 |
Nabinagar Thermal Power Project, Unit#1 (BRBCL) |
250 |
10.09.2017 |
Total (V) |
445 |
 |
Total Capacity declared commercial during 2017-18 (I)+(II)+(III)+(IV)+(V) |
4,423 |
 |
As on 31.03.2018, the Commercial Capacity of your Company stood at 44,500 MW (41,322 MW as on 31.03.2017) Â Â Â and your Company Group's Commercial Capacity stood at 51,391 MW (48,288 MW as on 31.03.2017):
Owned by your Company |
MW |
Coal based projects |
38,755 |
Gas based projects |
4,017 |
Renewable Energy Projects |
928 |
Hydro Projects |
800 |
Sub-total |
44,500 |
Joint Ventures &Â Subsidiaries |
 |
Coal based projects |
4,924 |
Gas based projects |
1,967 |
Sub-total |
6,891 |
Total |
51,391 |
5.6 Â Â Â Tariff Related Matters:
In the year 2017-18, your Company has been able to reduce the Energy Charge Rate significantly through various measures including rationalization of coal transportation across its various stations etc.
Demand oriented overhauling plan of your Company units: The philosophy for planning of unit overhaul has been revisited to align the same to region-wise, month-wise demand patterns. This is expected to maximize your Company units participation in meeting the demands.
Improvement in Operational Efficiency parameters:
Operational efficiency parameters for your Company stations were continuously monitored in coordination with Operations &Â CENPEEP and specific measures were taken to improve the operational efficiency of stations.
Tariff orders for the period 2014-19 have been issued for most of the stations.
5.7 Â Â Â Strengthening Customer Relationship:
Customer Focus is one of the core values of your Company (ICOMIT). In line with this, the Company has taken up several initiatives targeted towards the external Customers. Customer Relationship Management (CRM) and Customer Satisfaction Index (CSI) are some of the most important parts of these initiatives.
As part of the CRM, your Company has been implementing several structured activities with the objective of sharing its experiences and best practices with the customers, capturing their feedbacks and expectations and addressing their issues. Some of these activities are described below:
- Your Company provides various support services to the beneficiaries, which involves identifying potential areas of cooperation and sharing of each others' best practices. In the financial year 2017-18, total 63 such programs have been conducted for the customers on the basis of requirement expressed by them.
- Your Company offers training programs to the representatives of beneficiary companies at Power Management Institute (PMI), the apex training institute of your Company on free of cost basis. In 2017-18, 105 participants from various customer organizations attended training in 71 programs.
Your Company has also put in place Customer Satisfaction Index (CSI) survey scheme, to gather customer's feedbacks through a survey and respond to their requirements. This CSI survey has been conducted in 2017-18 and the score falls under Excellent category.
5.8 Â Â Â UDAY Scheme
As part of the UDAY Scheme, your Company has been entrusted the responsibility to help and guide the state generating companies to improve their operational efficiency and reduce the cost of generation. With this objective, multi-disciplinary teams from your Company visited power stations at 12 states. The suggested measures to improve efficiency in these plants by the team based on the visit have been shared with the power stations.
5.9 Â Â Â Power Trading in Power Exchange:
In line with CERC (IEGC) (5th Amendment) Regulations 2017, your Company sold more than 365 Million Units of URS power in the Power Exchange through its trading arm NVVN, based on consents received from most of the beneficiaries. As per this scheme, gains from these transactions have been shared in the ratio of 50:50 with the beneficiaries whose URS power is sold.
6. INSTALLED CAPACITY
During the year 2017-18, your Company added 3,478 MW to its installed capacity as per details given below:
Project/ Unit installed |
Capacity (MW) |
Coal Based Power Projects |
 |
Solapur, Unit#1 |
660 |
Kudgi, Unit#3 |
800 |
Lara, Unit#1 |
800 |
Solar Based Power Project |
 |
Mandsaur |
250 |
Wind Based Power Project |
 |
Rojmal |
50 |
Small Hydro Power Project |
 |
Singrauli |
8 |
Total |
2,568 |
Under Subsidiaries and Joint Ventures (Coal Based Power Projects) |
|
BRBCL, Unit#2 (subsidiary in JV with Ministry of Railways) |
250 |
Meja, Unit#1 (JV with UPRVUNL) |
660 |
Total by Subsidiaries and JV |
910 |
Total Addition during FY 2017-18 |
3,478 |
The total installed capacity of your Company Group as on 31.03.2018 has become 53,651 MW (50,498 MW as on 31.03.2017) as tabulated below:
Owned by your Company |
MW |
Coal based projects |
40,355 |
Gas based projects |
4,017 |
Renewable Energy Projects |
928 |
Hydro Projects |
800 |
Sub-total |
46,100 |
Joint Ventures &Â Subsidiaries |
 |
Coal based projects |
5,584 |
Gas based projects |
1,967 |
Sub-total |
7,551 |
Total |
53,651 |
7 CAPACITY ADDITION PROGRAMME
7.1 Projects under Implementation
I n addition to furthering capacity addition through Coal based power projects, your Company has been pursuing enhancement of its power generation portfolio through Hydro and Renewable Energy projects.
Various projects of your Company having aggregate capacity of 21,071 MW including 7,150 MW being undertaken by Joint Venture and subsidiary companies are under implementation at 20 locations in India and abroad. This includes 13,110 MW through Coal based projects of your Company and 7,150 MW through its JV and Subsidiary Companies. In addition to the above, hydro projects of 811 MW are also under construction. The details of such projects are as under:
Ongoing Projects as on 31.07.2018 |
Capacity (MW) |
|
I. A. |
Coal Based Projects |
 |
1. |
Barh-I, Bihar |
1,980 |
2. |
Bongaigaon, Assam |
250 |
3. |
Solapur, Maharashtra |
660 |
4. |
Lara-I, Chattisgarh |
800 |
5. |
Gadarwara-I, Madhya Pradesh |
1,600 |
6. |
Darlipalli-I, Odisha |
1,600 |
7. |
North Karanpura, Jharkhand |
1,980 |
8. |
Tanda-II, Uttar Pradesh |
1,320 |
9. |
Khargone, Madhya Pradesh |
1,320 |
10. |
Telangana Phase-I, Telangana |
1,600 |
Sub Total (A) |
13,110 |
|
I.B. |
Hydro Electric Power Projects (HEPP) |
 |
11. |
Tapovan Vishnugad, Uttarakhand |
520 |
12. |
Lata Tapovan, Uttarakhand@ |
171 |
13. |
Rammam Hydro, West Bengal |
120 |
Sub Total (B) |
811 |
|
Total I (A)+(B) |
13,921 |
|
II |
Projects under JVs &Â Subsidiaries |
 |
Coal Based Projects |
 |
Â
Ongoing Projects as on 31.07.2018 |
Capacity (MW) |
14. Nabinagar- JV with Railways (BRBCL), Bihar |
500 |
15. Nabinagar, JV with BSPGCL (NPGCL), Bihar |
1,980 |
16. Meja, JV with UPRVUNL (MUNPL), Uttar Pradesh |
660 |
17. Patratu Expansion, JV with JBVNL |
2,400 |
18. Rourkela, JV with SAIL (NSPCL), Odisha |
250 |
19. Durgapur, JV with SAIL (NSPCL), West Bengal |
40 |
20. Khulna, JV with BPDB (BIFPCL), Bangladesh |
1,320 |
Total II |
7,150 |
III. Total On-Going Projects as on 31.07.2018 (I)+(II) |
21,071 |
@Work of Lata Tapovan HEPP stopped as per orders of the Hon'ble Supreme Court dated 07.05.2014.
7.2 New Technology &Â Initiatives
Indian power sector is undergoing a paradigm shift with redefined industry outlook and calls for fresh approaches to meet the emerging challenges. There is a renewed focus on local and global safer environment along with having sustainable power generation. This calls for new concepts in power plant design. At the same time your Company has taken fresh pledge towards safety in all operations. Also being the premier power generating company in the country, the responsibility has come on us for achieving high efficiency and stringent emissions as a torch bearer for the power plants across the country. In step, your Company has laid major stress on efficient utilization of resources, reduction in emissions and increased safety. Your Company has been voluntarily working on improving the energy conversion cycle efficiency by adopting more efficient technologies and power plant schemes.
7.2.1 Continuous technological advancements for improving plant designs
Cleaner power has been central to your Company since its inception. Over the timeline we have witnessed focus change from local pollution to global emission concerns. Your Company has been voluntarily working on improving the energy conversion cycle efficiency by adopting more efficient technologies. Efficiency of units has been continuously improved from sub-critical to supercritical and onto ultra-supercritical technology (USC). All new units are being ordered with USC parameters of 600°C/600°C. Adoption of USC parameters shall result in a reduction of CO2 emission (as also others like NOx and SOx) intensity by around 8% when compared to conventional subcritical power plants for every unit of electricity generated. Parallely, water conservation is a new focus for your Company. In this direction, introduction of dry cooling technology like Air Cooled Condenser (ACC) is a significant step. First introduction has been made in water stressed areas like North Karanpura and Patratu. Further, your Company has taken initiative to become a Zero Liquid Discharge company for all closed cycle operating stations by identifying and implementing water management initiative, adopting innovation in water use in its thermal power plant.
7.2.2 Â Â Â Advanced Ultra Supercritical (AUSC) technology development project
Indian program to develop AUSC technology is underway by a consortium of your Company, BHEL and IGCAR. The program envisages development of indigenous technology for steam parameters of 310 Kg/cm2 and 710"C/720"C temperature. Such parameters are way higher than steam parameters used in contemporary plants globally and would result in top of line efficiency of 46%. It will result in reduction of CO2 emissions to the tune of 20% compared to a sub-critical plant. The phase-I of the program, which constitutes R&D for technology development, started from April 2017. Second phase of the programme i.e. setting up of an 800 MWe technology demonstration plant (TDP) is being planned at your company's Sipat plant located in Chhattisgarh. The technology will support country's longer term dependence on coal while reconciling with NDC (Nationally Determined Contributions) commitments made as part of Paris Climate Agreement.
7.2.3 Â Â Â Biomass Co-firing for reducing greenhouse emission &Â reduce pollution
Your Company has taken a new initiative to utilize agro residue for power generation. This is intended to cut down carbon emissions and also to discourage crop residue burning by farmers after harvesting by adding economic value to the crop residue. This is expected to provide extra income to farmers and employment in rural sector. Such commercial scale biomass co-firing, which would be a first in India, is slated to commence from September, 2018 at your company's Dadri power plant which is site for 6 x 210 MW and 2x490 MW coal fired units. Being carbon neutral process, biomass co-firing is a technology which is globally recognized as a measure of reducing greenhouse emissions and is more economical and efficient than dedicated biomass plant.
7.2.4 Â Â Â Waste-to-energy technology initiatives
Keeping commitment for Swachh Bharat, your Company has taken initiatives to establish technologies for clean and safe disposal of municipal waste which also provides some energy as a spin-off benefit. In-line, waste to compost plant at Karsada, Varanasi has been revamped for which the operation &Â maintenance (O&M) is also being managed. The plant processes about 600 TPD of MSW (municipal solid waste) and generates 60-80 TPD of compost. The sanitary land fill facility and leachate treatment facility have also been created at this plant to ensure systematic and safe disposal of municipal solid &Â liquid waste. Further, your Company has recently awarded 24 TPD thermal gasification based demonstration scale plant at Varanasi. Here the MSW is first converted to produce gas, which is then used to generate approximately 200 kW of electric power. Your Company is presently working on more such plants which once established in technology and collection/preparation processes will change the face of waste disposal in Indian cities.
7.2.5 Â Â Â Renewable energy
Renewable energy is one central focus for your Company. To be in step with ambitious targets the Company is attempting all avenues for renewable capacity addition to look beyond conventional large scale solar and wind parks. In Kudgi Project, 190 MW wind-solar hybrid project has been planned which is the largest in India. This would optimize the use of land and power evacuation infrastructure leading to reduction of cost of RE generation. Your Company is setting up 25 MW Solar Project with Battery Energy Storage System (BESS) in Andaman Port- Blair Island, which is first commercial project in India with Battery Energy Storage. This would replace DG sets in Andaman. A project for Solar Thermal Integration with the existing coal based unit at your Company's Dadri Project is under construction and is expected to be commissioned in 2018-19. The expected peak electrical output will be about 3.6 MW resulting in coal savings of around 3825 tons/year and in reduction of CO2 emissions of around 4060 tons/year. Your Company is utilizing roofs of power plant buildings for solar power generation and integrating to the existing plant infrastructure. Your Company is also going ahead with Floating Solar at reservoirs of Projects which is a step towards saving of land and water conservation by reducing water surface evaporation.
7.2.6 Â Â Â Use of treated Sewage Water from Municipal Sewage treatment plants
Your Company has taken on itself a novel &Â bold initiative to use sewage water from nearby municipal zones. Such treated water will replace precious fresh water from rivers/ lakes/reservoirs. The expertise inherent in your Company will establish the technology and business processes to internalize the spirit of government notification of January 2016 which makes such use mandatory for power plants wherever Municipal STPs are within 50 Km distance. Your Company has already identified some projects viz. Dadri, Patratu, Solapur, Meja, Mouda, Korba, Sipat and Ramagundam where there is feasibility of using the STP treated water as STPs already exist/are going to be constructed. For NCTPP Dadri, your Company has already signed in-principle MOU with NOIDA authority for utilization of 80 MLD treated sewage water from Noida STPs as a flagship project.
7.2.7 Â Â Â Advanced digital and control technology use
Your Company has developed its Digital Strategy Roadmap where key areas like APC (Advanced Process Control), AMS (Advanced monitoring for Stockyard) for Operation optimization, APM (Asset Performance Management) for Maintenance optimization and Application of IIOT (Industrial Internet of Things) in Generation to enhance process visibility, AIM (Asset Information Management) for digital twin with lifecycle documentation, ART (Augmented Reality based training), along with establishment of Remote Performance Monitoring center have been identified. It is envisaged to implement all the above initiatives in Simhadri power plant. One of the significant implementations which is first of its kind in the country is Remote Operation of Koldam Hydro station located in Himachal Pradesh from Control room situated at Scope Complex, Delhi for 24 X 7 operation.
7.2.8 Â Â Â Energy Conservation, Technology Absorption and Foreign Exchange Earnings and outgo
Details of conservation of energy, technology absorption and foreign exchange earnings and outgo in accordance with Section 134(3)(m) of the Companies Act, 2013 read with Companies (Accounts) Rules, 2014 forms part of this report as Annex-III.
7.3 Â Â Â Project Management
Your Company has established state-of-the-art IT enabled Project Monitoring Center (PMC) for facilitating fast track project implementation. PMC has advanced features like Web-based Milestone Monitoring System (Webmiles), Project Review and Internal Monitoring System (PRIMS), etc. PMC facilitates monitoring of key project milestones and also acts as decision support system for the management.
PMC is an integrated enterprise-wide collaborative system to facilitate consolidation of project related issues and their resolution. Features like SMS based information delivery; real time video capture, storage and retrieval facility and video conference facility are extensively utilized for project tracking, issues resolutions and management interventions. PMC has helped in providing effective coordination between the agencies and has provided enhanced/ efficient monitoring of the projects leading to better and faster project implementation.
7.4 Â Â Â Capacity addition through Subsidiaries and Joint Ventures (JVs)
Besides adding capacities on its own, your Company develops power projects through its subsidiaries and joint ventures, both in India and abroad.
The information of Indian Subsidiaries and JV Companies along with details of partners of joint ventures engaged in power generation is given below:
Name of |
JV Partner(s) |
Details |
Company |
 |  |
KBUNL |
Bihar State |
A subsidiary Company in which |
(Kanti Bijlee |
Power |
your Company held 72.64% |
Utpadan |
Generation |
shares in joint venture with |
Nigam Ltd.) |
Company |
BSPGCL (erstwhile BSEB), took |
 |
Limited |
over Muzaffarpur Thermal Power |
 |
(erstwhile |
Station having 2 units of 110 MW |
 |
BSEB) |
each from BSEB. |
 |
On 29.06.2018, |
Both the units of Stage-I have |
 |
your Company |
been declared on commercial |
 |
acquired the |
operation. |
 |
paid-up share |
Total generation in FY 2017-18 |
 |
capital held |
was 1,729 MU at 35.15% PLF. |
 |
by BSPGCL in |
This Company has also taken |
 |
KBUNL. |
up expansion of the project by |
 |
KBUNL has |
2X195 MW units. Unit#3 of Stage- |
 |
now become |
II was declared commercial on |
 |
wholly-owned |
18.03.2017 and Unit#4 of Stage- |
 |
subsidiary. |
II was declared commercial on 01.07.2017. |
BRBCL |
Ministry of |
A subsidiary of your Company |
(Bhartiya |
Railways |
in joint venture with Ministry of |
Rail Bijlee |
 |
Railways with equity contribution |
Company |
 |
in the ratio of 74:26 is setting |
Ltd.) |
 |
up power project of 1000 MW (4X250 MW) capacity at Nabinagar in Bihar. Unit#1 of 250 MW was declared commercial on 15.01.2017 and Unit#2 was declared commercial on 10.09.2017. Construction activities in other units are in progress. |
NSPCL |
Steel Authority |
A 50:50 Joint Venture Company |
(NTPC-SAIL |
of India Ltd. |
between your Company and |
Power Co. |
(SAIL) |
SAIL, owns and operate Captive |
Ltd.) (now |
 |
Power Plants of SAIL at Durgapur |
converted |
 |
(2 x 60 MW), Rourkela (2 x 60 MW) |
into a |
 |
and Bhilai (2 x 30 + 1 x 14 MW). |
Public |
 |
NSPCL has also implemented 2 x |
Limited |
 |
250 MW Bhilai Expansion Power |
Company |
 |
Plant. Total installed capacity of |
from NTPC- |
 |
NSPCL is 814 MW. |
SAIL Power |
 |
NSPCL generated 6,254 MU at |
Company |
 |
87.72% PLF in FY 2017-18. |
Private |
 |
NSPCL has paid final dividend |
Limited) |
 |
of ' 50 Crore for FY' 2016-17 to your Company. Under Implementation- New Coal based Capacity at Rourkela PP-II Expansion (1 x 250 MW) &Â Durgapur PP-III (2 x 20 MW) is under construction. Solar Power Plants of 200 MW capacity at various plant locations of SAIL is under tendering. |
Â
Name of Company |
JV Partner(s) |
Details |
NTECL (NTPC Tamil Nadu Energy Co. Ltd.) |
Tamilnadu Generation and Distribution Corporation Limited (TANGEDCO) (erstwhile TNEB) |
A 50:50 JVC has commissioned 3x500 MW coal based power project at Vallur, Tamil Nadu. All the units have been declared on commercial operation. Total generation of NTECL during FY 2017-18 was 7,168 MUs at 54.55% PLF and 70.46 % PAF. The profit for FY 2017-18 was ' 33.45 crore. |
APCPL (Aravali Power Company Pvt. Ltd.) |
Indraprastha Power Generation Company Ltd. (IPGCL) and Haryana Power Generation Corporation Ltd. (HPGCL). |
This JVC is operating 3X500 MW coal based Indira Gandhi Super Thermal Power Project. Your Company, IPGCL and HPGCL have contributed equity in the ratio of 50:25:25. Total generation of APCPL during FY 2017-18 was 7,734 MU. APCPL has paid interim dividend of ' 69.93 crore to NTPC for FY 2017-18. |
MUNPL (Meja Urja Nigam Pvt. Ltd.) |
Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd. (UPRVUNL) |
A 50:50 JVC is implementing 1,320 MW (2X660 MW) coal based power project in the state of Uttar Pradesh. Construction activities are in progress. Unit#1 achieved full load on 31.03.2018 and TG erection for Unit#2 started in January 2018. |
NPGCL (Nabinagar Power Generating Company Pvt. Ltd.) |
Bihar State Power Generation Company Limited (erstwhile BSEB) On 29.06.2018, your Company acquired the paid-up share capital held by BSPGCL in NPGCL. NPGCL has now become wholly-owned subsidiary. |
A 50:50 JVC is setting up a 3x660 MW coal based plant at Nabinagar. Construction activities are in progress. |
Â
Name of Company |
JV Partner(s) |
Details |
RGPPL (Ratnagiri Gas and Power Pvt. Ltd.) |
GAIL, ICICI Bank, SBI, IDBI, Canara Bank and MSEB Holding Co. Ltd. |
Your Company has a stake of 25.51% in RGPPL. PPAs have been signed by RGPPL with Indian Railways for supply of ~500 MW for 5 years w.e.f. 01.04.2017 and Gas Supply Agreements were signed with GAIL for supply of 1.75 MMSCMD of RLNG w.e.f. 01.04.2017 for 5 years. Demerger scheme was approved by NCLAT on 28.02.2018 thereby separating the R-LNG business from RGPPL to the new entity Konkan LNG Private Limited (KLPL). Accordingly, the paid-up share capital of RGPPL decreased from ' 3820.27 crore to ' 3272.30 crore. |
ASHVINI (Anushakti Vidhyut Nigam Ltd.) |
Nuclear Power Corporation of India Ltd. (NPCIL) |
Your Company is having a stake of 49%. The company was formed to set up Nuclear Power Project with two reactor units of mutually agreed capacity and at a mutually agreed location, which may be extended to setting up additional NPPs at the same location or elsewhere, as may be mutually discussed and agreed between the parties, subject to establishment of techno-commercial viability. JVC may also explore the possibilities of entering into business activities related with the Nuclear Power generation and front-end fuel cycle such as uranium mining, setting up of ancillary facilities, etc. at an appropriate stage. Currently, no activities are being taken up by the Company. |
Â
Name of Company |
JV Partner(s) |
Details |
PVUNL (Patratu Vidyut Utpadan Nigam Limited) |
Jharkhand Bijli Vitran Nigam Limited (JBVNL) |
PVUNL has been incorporated on 15.10.2015 as a subsidiary of your Company with 74% stake in the Company and 26% of stake held by JBVNL to acquire, establish, operate, maintain, revive, refurbish, renovate and modernize the performing existing units and tie-lines, sub-stations and main power transmission lines connected therewith and setting up of the new units. Existing capacity of 325 MW units was deleted from the data base of all India Installed Capacity by CEA on 23.11.2017. For expansion units (Phase-I 3X800 MW), supplementary Joint Venture Agreement was signed on 01.03.2018 and EPC package was awarded to BHEL on 08.03.2018. Deed of Adherence for Banhardi Coal Mine was signed on 02.06.2017 and bridge linkage was applied to Ministry of Coal on 09.06.2017. |
7.5 Hydro Power
Your Company now has its footprints in renewable energy by developing hydro projects as detailed below:
A. Â Â Â Koldam HEPP (4x200 MW) is on the river Satluj at Barmana, District Bilaspur (Himachal Pradesh). All the four units of 200 MW each were declared commercially operational on 18.07.2015. Since then, the project is running successfully. The generation for the financial year 2017-18 had been 3,316.71 MU.
B. Â Â Â Tapovan Vishnugad HEPP (4x130 MW) is on River Dhauliganga, District Chamoli (Uttarakhand). Project is under construction with approximately 91% of capex utilization till 31.03.2018.
C. Â Â Â Lata Tapovan HEPP (3x57 MW) is just upstream of Tapovan-Vishnugad HEPP, in District Chamoli (Uttarakhand). The work was stopped by Hon'ble Supreme Court through order dated 07.05.2014 for 24 Hydro Projects in the State of Uttarakhand including Lata-Tapovan. The MOEF&CC constituted an expert body, which submitted its report on 19.10.2015 and submitted the same in court on 05.11.2015, where Lata Tapovan had been recommended for implementation with compliance of certain additional conditions. Your Company submitted in Court on 19.11.2015 that the conditions recommended by expert body shall be strictly complied. On the hearing held on 26.04.2016, Additional Solicitor General of India represented MOEF&CC and informed the Court that Lata - Tapovan Project must be implemented. The matter is still pending in Hon'ble Supreme Court for want of affidavit from Ministry of Water Resources (MoWR).
For National Board of Wild Life (NBWL) Clearance, for Tapovan- Vishnugad and Lata Tapovan HEPPs, the proposal regarding redefining of Eco Sensitive Zone (ESZ) was discussed in Uttarakhand State Cabinet Meeting. Formal proposal redefining the limits of ESZ of Nanda Devi National Park has been forwarded by Govt. of Uttarakhand to the standing committee of NBWL on 26.07.2016. Standing Committee of NBWL forwarded the proposal to MoWR on 23.09.2016. In spite of various reminders, comments of MoWR are still awaited. Matter has been discussed since then, in various meetings of standing committee of NBWL, but could not be considered due to non-receipt of MoWR comments. Matter was last discussed in 48th meeting held on 27.03.2018 wherein again the Member Secretary took up the matter with the State Government at the highest level.
Matter is being taken up with MoEF and Climate Change (GOI) by your Company for approval of GOI.
D. Rammam-III HEPP (3x40MW) is situated on river Rammam in Teesta Basin, Darjeeling (West Bengal). Construction work is in progress. PPA with Govt of West Bengal is in process.
'.6 Capacity Addition through Renewable Energy Sources
Your Company is adding capacity through renewable sources of energy, to broad base its generation mix to ensure long-term competitiveness, mitigation of fuel risks and promotion of sustainable power development.
1. Under Green Energy Commitment:
Your Company has committed to develop 10 GW of Renewable Energy Projects under Green Energy Commitment to Govt. of India. As per your Company Corporate Plan 2032, the capacity will have a diversified fuel mix with 28.5% Renewable Energy Sources (RES) including hydro. Your Company has already commissioned 928 MW of RE projects as on 30th June 2018 comprising 870 MW of Solar, 50 MW of Wind &Â 8 MW of small hydro power projects. Rooftop Solar project of 1.5 MW capacity is under execution in Karnataka.
Further, NITs have been issued for 185 MW of Solar PV projects in the states/UT of Gujarat, Kerala, Uttar Pradesh, Telangana and A&N, including 22 MW floating Solar PV project in Kerala and 12 MWh Battery Energy Storage System in A&N.
2. National Solar Mission:
Your Company has been entrusted to develop 15 GW Solar PV under National Solar Mission (NSM) Phase-II, Batch-II in three tranches between 2014-15 to 2018 19, where the Company will be the facilitator/trader between Discoms and developers. Your Company will purchase power from the developers and sell it to the Discoms. Under Tranche-I of 3000 MW of Solar PV capacity, PPAs have been signed for entire capacity of 3000 MW solar PV projects. Out of this 3000 MW, 2750 MW Solar PV capacity has been commissioned till 30th June 2018 and 250 MW capacity is under implementation. The guidelines for the balance 12 GW is awaited from MNRE.
Your Company has also floated tenders for setting up Grid connected 2000 MW Solar PV projects and 2000 MW Wind Power projects anywhere in India under Developer mode.
7.7 Capacity addition through acquisition:
Your Company has entered into a Memorandum of Understanding (MoU) with Government of Bihar and its affiliate Companies on May 15, 2018 for transfer of Barauni TPS (720 MW) owned by Government of Bihar. The aforesaid MOU also provide for acquisition of Bihar State Power Generation Company's (BSPGCL) equity stake in Kanti Bijlee Utpadan Nigam Limited (KBUNL) &Â Nabinagar Power Generating Company Limited (NPGC) to your Company. Govt. of Bihar has notified a Transfer Scheme on June 27, 2018 to effect the transactions. Your Company has acquired 27.36% equity of BSPGCL in KBUNL &Â 50% equity of BSPGCL in NPGCL on June 29, 2018. With this acquisition, KBUNL &Â NPGCL are now the wholly - owned subsidiaries of your Company. Activities are under way for acquisition of Barauni TPS.
An MoU was signed on 11.01.2017 (currently extended till 10.11.2018) amongst your Company, Rajasthan Vidyut Utpadan Nigam Ltd. (RVUNL) and Rajasthan Rajya Urja Vikas Nigam Limited (on behalf of Discoms) for possible acquisition of Chhabra St-I &Â II in a phased manner. Enabling actions for transfer are under way.
Your Company has invited Request for Proposal (RfP) on November 25, 2017 from interested parties i.e. Promoters/ Lenders or Authorized Financial Intermediaries of the
Power Generation Companies/ Independent Power Producers/ Developers to offer their operating domestic coal based thermal power assets in India meeting the specified criteria in RFP. Proposals received against RFP are under evaluation.
8. STRATEGIC DIVERSIFICATION- INCREASING SELFRELIANCE
8.1 Â Â Â In order to strengthen its competitive advantage in power generation business, your Company has diversified its portfolio to emerge as an integrated power major, with presence across entire power value chain through backward and forward integration into areas such as coal mining, power equipment manufacturing, power trading, distribution.
Your Company continuously explores business opportunities through market scanning and adopts new business plans accordingly.
8.2 Â Â Â The details of subsidiary companies engaged in business other than in power generation are as under:
8.2.1 Â Â Â NTPC Electric Supply Company Limited (NESCL), a wholly-owned subsidiary, transferred and vested all its operations, with effect from April 1, 2015, to your Company.
NESCL was incorporated for the distribution business and later started deposit and consultancy works. The transfer and vesting of existing operations would enable a focused business approach in the area of distribution, the objective for which NESCL was incorporated. Although currently NESCL does not have any business operations in retail distribution, the same will be taken up at an appropriate time when the opportunity becomes visible.
8.2.2 Â Â Â NTPC Vidyut Vyapar Nigam Limited (NVVN), a wholly-owned subsidiary, is engaged in the business of Power trading. NVVN has a trading License under Category I (highest category). It undertakes sale and purchase of electric power, to effectively utilize installed capacity and thus enable reduction in the cost of power.
The Company has been designated as the nodal agency for cross border trading with Bhutan and Bangladesh and for National Solar Mission.
In the FY 2017-18, NVVN traded 17,278 million units (MUs).
NVVN has paid an interim dividend of Rs, 20 Crore for FY 2017-18.
8.3 The details of other joint venture companies incorporated in India which are taking up activities in other business related areas are given below:
Name of Company |
JV Partner |
Activities Undertaken |
UPL (Utility Powertech Ltd.) |
Reliance Infrastructure Limited |
Takes up assignments of construction, erection and supervision of business in power sector and other sectors like O&M services, Residual Life Assessment Studies, non-conventional projects etc. UPL has paid dividend of Rs, 2.5 crore as final dividend to your Company for FY 2016-17. |
NGPSL (NTPC GE Power Services Private Limited, earlier NTPC Alstom Power Services Private Limited) |
GE Power Systems GmbH |
To provide R&M services for coal based power plants in India. To renovate, modernize, refurbish, rehabilitate, upgrade, reverse engineering and component damage assessment. Also for undertaking residual life assessment, reengineering in India and on a project by project basis elsewhere in abroad, utilizing state-of-the-art technology. R&M including RLA work orders are under execution. NGPSL gave Rs, 0.23 crore as final dividend to NTPC for FYRs,16-17. The dividend was received in FY'17-18. |
EESL (Energy Efficiency Services Ltd.) |
PFC, PGCIL and REC |
The Company was formed for implementation of Energy Efficiency projects and to promote energy conservation and climate change. EESL is working on Energy Audit of Buildings, Perform Achieve Trade (PAT) scheme work and standard &Â leveling work of BEE, Consultancy work, implementing Bachat Lamp Yojana and Agricultural &Â Municipal Pump replacement for various State Govts. EESL gave Rs, 8.80 crore as final dividend for FYRs,16-17 and ' 4.12 crore as interim dividend for 2017-18. The dividend was received in FY'17-18. |
Â
Name of Company |
JV Partner |
Activities Undertaken |
NHPTL (National High Power Test Laboratory Pvt. Ltd.) |
NHPC, PGCIL, DVC and CPRI |
To establish a research and test facility for the power sector such as an âOnline High Power Test Laboratoryâ for short circuit testing facility and other facilities as may be required for the same in the country. Online High Power Test Laboratory set up at Bina, M.P was declared commercial w.e.f 01.07.17. First commercial transformer of 765 kV Class short circuit testec (online) on 11.09.17. |
NBPPL (NTPC-BHEL Power Projects Pvt. Limited) |
Bharat Heavy Electricals Limited |
The Company was incorporated for taking up activities of engineering, procurement and construction (EPC) of power plants and manufacturing of equipments. The promoters have decided to wind-up the Company and the activities are in progress. |
(BF- NTPC) BF- NTPC Energy Systems Limited |
Bharat Forge Limited |
This Company was incorporated to manufacture castings, forgings, fittings and high pressure piping required for power projects and other industries. However, since the project could not take off, it has been decided to wind up BF-NTPC. Activities for winding up of the Company are in progress. |
TELK (Transformers and Electricals Kerala Limited) |
Acquisition of 44.6% stake in TELK from Government of Kerala on June 19, 2009 |
The Company deals in manufacturing and repair of Power Transformers. The Company had a turnover of ' 185.22 crore in FY 201718. Your Company has accorded in-principle approval for withdrawal of your Company from TELK on 28.04.2016. |
ICVL (International Coal Ventures Private Limited) |
CIL, SAIL, RINL, NMDC |
ICVL was formed for acquisition of stake in coal mines/ blocks/ companies overseas for securing coking and therma coal supplies. In view of lack of suitable commercially viable opportunities for thermal coal, your Company has decided to exit from ICVL. As the Company was formed by a directive from the Government of India, approva of the Government is awaited for exit. |
Â
Name of Company |
JV Partner |
Activities Undertaken |
NTPC-SCCL (NTPC-SCCL Global Ventures Private Limited) |
The Singareni Collieries Company Limited |
NTPC-SCCL was formed for acquisition/ development of mines, beneficiation processing, O&M of coal/lignite blocks and selling of coal/ lignite produced thereof. As the Company could not attain its objectives, it is under voluntary winding up. The final General Meeting of NTPC-SCCL was held on November 15, 2016, after which the documents and books of liquidation was filed to Official Liquidator. The Order for dissolution of NTPC-SCCL from Hon'ble High Court of Delhi is awaited. |
HURL (Hindustan Urvarak &Â Rasayan Limited) |
Coal India Limited, Indian Oil Corporation Limited, Fertilizer Corporation of India Limited (FCIL), Hindustan Fertilizer Corporation Limited (HFCL) |
HURL was incorporated on 15.06.2016 to establish and operate new fertilizer and chemicals complexes (urea-ammonia and associated chemical plants) at Gorakhpur &Â Sindri Units of FCIL and Barauni unit of HFCL and to market its products, taking into consideration the assets of FCIL and HFCL at Gorakhpur, Sindri and Barauni. Lump sum Turnkey contracts for all the three projects i.e. Gorakhpur, Sindri and Barauni have been awarded. |
KLPL (Konkan LNG Private Limited) |
GAIL, ICICI Bank, SBI, IDBI, Canara Bank and MSEB Holding Co. Ltd. |
Demerger scheme filed by RGPPL was approved by NCLAT on 28.02.2018 thereby separating the R-LNG business from RGPPL to the new entity Konkan LNG Private Limited (KLPL). The Demerger Scheme was filed with the Registrar of Companies on 26.03.2018 with appointed date of 01.01.2016. |
8.4 Diversification in Electric Vehicle (EV) Segment
With thrust of Government of India for E-Mobility &Â its adoption all across the globe at a rapid pace, the E-Mobility business seems one attractive option for the Company to venture into and diversify its current portfolio of power generation.
As of now, your Company is looking forward to develop the charging infrastructure and run few pilot projects to get a foothold in this area and also to accumulate data sufficient for assessing the viability of the future business.
The Company is currently looking to set up EV charging infrastructure, reach an MoU with city administrations and seek strategic collaborations with other stakeholders in energy sector.
Towards this end, your Company has entered into an MOU for setting up charging infrastructure in Jabalpur and necessary enabling actions are underway. MoUs have also been signed with Oil Marketing Companies, other PSUs etc. for collaboration in development of charging infrastructure.
The Company has also installed charging stations in its power stations and offices. The company has also leased some E-Vehicles for its offices in NCR. Your Company is planning to develop a completed EV ecosystem in and around its power stations and offices to start with.
8.5 Â Â Â Foray in Packaged Drinking Water Business
Your Company's research arm, NETRA, has developed technology for sea water desalination/waste water treatment using waste heat from flue gas from the power plant. The cost effective technology is now being utilized for packaged drinking water. An MoU in this regard has been signed with IRCTC on January 15, 2018 for setting up a packaged drinking water facility at your Company Simhadri Station. Commercial arrangement are being finalized with IRCTC.
IRCTC has further expressed interest for establishing similar packaged drinking water facilities at other power stations of your Company.
8.6 Â Â Â Foray into cement business
Your Company is collaborating with CCI for reviving the cement plants of CCI supplementing both your company's &Â CCI's resource requirement and increasing ash utilization.
An MoU was signed with CCI in Jan'2018. CCI has expressed interest for establishing a cement blending unit at your Company's Station Solapur by utilizing the fly ash and the proposal is being assessed.
9. GLOBALISATION INITIATIVES
9.1 Trincomalee Power Company Limited (TPCL), a 50:50 joint venture between your Company and Ceylon Electricity Board was formed to undertake the development, construction, establishment, operation and maintenance of a electricity generating station Trincomalee at Sri Lanka. 1st Meeting of Joint Working Group (JWG) was held in Nov'16 in which the proposal of Govt. of Sri Lanka (GoSL) for relocating the Project at Kerawalpitiya with change-in fuel type to meeting LNG was agreed in-principle. In 2nd JWG meeting held in Aug'17 at New Delhi, it was decided that TPCL will implement the RLNG based project at Kerawalapitiya and 50 MW solar power project at Trincomalee. GoSL has issued letter of intent to GoI for development of 500 MW LNG project on 23.06.2017 and for 50 MW solar project on 13.09.2017.
9.2 Â Â Â Bangladesh-India Friendship Power Company Private Limited, a 50:50 joint venture Company between your Company and Bangladesh Power Development Board (BPDB) was formed for developing a 2X660 MW Coal based power project (Maitree Super Thermal Power Plant) at Khulna Division, Rampal, Bangladesh. EPC contract of the project except township was awarded to BHEL. Construction is in full swing.
9.3 Â Â Â Other Opportunities Abroad: Business opportunities in Sri Lanka, Bhutan, Myanmar, Indonesia, Oman, UAE, Egypt, Ghana, Zimbabwe, Tanzania, Kenya &Â other African countries are being explored in the areas of power generation, O&M contracting, R&M of power plants, capability building and cross border power trading etc.
10. CONSULTANCY SERVICES
Consultancy Wing offers services âFrom Concept to Commissioning and beyond....â such as in Engineering, Operation &Â Maintenance Management, Project Management, Contracts &Â Procurement Management, Quality Management, Training &Â Development, Solar &Â renewable power projects , compliance to Environmental norms for power stations etc.
These services have been provided in India and abroad viz. Gulf countries, Bangladesh, Nepal, Sri Lanka and Bhutan.
It has provided Services for more than 42,000 MW capacity to external clients besides 7,551 MW of NTPC JVs.
On international front, Consultancy Wing is providing O&M management services at Siddhirganj Peaking Power Plant (2x120MW) in Bangladesh under a World Bank funded contract which has been progressing successfully for last 5 years. There has been an all round improvement in terms of plant parameters due to implementation of best practices and systems in power plant with involvement of your Company's experts.
On the domestic front, Consultancy Wing is providing âComplete Owner's Engineer Services for implementation of 2X660MW Khurja STPP from concept to commissioningâ to THDC. It is also providing âPost Award review engineering and QA&I Servicesâ of 2X660MW Jawaharpur TPS and of 2X660MW Obra Extn. TPS to UPRVUNL. Your Company's Consultancy wing is providing owner's engineer services of FGD system for Environmental compliance to various clients like UPRVUNL, HPGCL, DVC and its own JVs. Also executing assignments of various clients such as SCCL, UPRVUNL, NMDC, DPCC, THDC, HPGCL, OCPL and your Company JVs towards FR/DPR Preparation, Procurement &Â Inspections and other advisory services.
Project Monitoring Services are being provided for 2x660 MW Shree Singhaji TPP Khandwa of MPPGCL, and 1X660 MW Harduaganj TPS of UPRVUNL.
Consultancy Wing is providing Performance Improvement services to 4x250 MW units of Chhabra TPS, RVUNL and O&M Management Service of 2X600MW Shree Singhaji TPP Khandwa of MPPGCL and 2X50MW Captive Thermal Power Plant of FPL in Odisha by deployment of executives at respective sites. Major O&M Technical Audit and Performance Guarantee test and ORT assignments of HPGCL, RVUNL, LPGCL, UPRVUNL were taken up by Consultancy Wing. It is also carrying out âIndependent technical due diligence assignment of stressed/stalled assetsâ for lenders.
Highlights of FY 17-18
- Â Â Â Consultancy Wing received orders of Rs, 386.89 crore
- Â Â Â Consultancy Wing bagged 166 nos. of orders
- Â Â Â O&M support to REC by deploying 4 executives at site for 2X50 MW CFBC Boiler of FACOR Power -the first Power Plant of 100 MW capacity to be taken over by Lender (REC) under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests Act, 2016 (SARFAESI)
- Â Â Â COD of unit 2 of SCCL was achieved within 7 days of full load. SCCL Station achieved 5th position in top 25 power stations in India till January 2018 during financial year 2017-18 with Yearly PLF of 90.44 %
- Â Â Â Boiler Hydro test of Unit # 2 (660MW) of Shree Singaji TPP was also successfully completed 3 months ahead of schedule.
Consultancy Wing is looking ahead for future business opportunities in areas like implementation of solar &Â renewable power projects, supporting other power utilities for meeting new environmental norms and taking over complete O&M for power plants of other power utilities.
11. FINANCING OF NEW PROJECTS
The capacity addition programs shall be financed with a debt to equity ratio of 70:30, in case of thermal and hydro projects and that of 80:20 in case of solar projects. Your Directors believe that internal accruals of the Company would be sufficient to finance the equity component for the new projects. Given its low geared capital structure and strong credit ratings, your Company is well positioned to raise the required borrowings.
Your Company is exploring domestic as well as international borrowing options including overseas development assistance provided by bilateral agencies to mobilize the debt required for the planned capacity expansion program.
The details of funding are discussed in the Management and Discussion Analysis Report which forms part of this Report.
12. FIXED DEPOSITS
Your Company has discontinued the acceptance of fresh deposits and renewals of deposits under Public Deposit Scheme with effect from 11.05.2013. As such, there were no deposits which were not in compliance with the requirements of Chapter-V of the Companies Act, 2013
The details relating to deposits, as per the Companies Act, 2013 is as under:
(a) |
Accepted during the year |
NIL |
(b) |
Remained unpaid or unclaimed as at the end of the year |
6 Deposits amounting to Rs, 15.91 lakh* |
(c) |
Whether there has been any default in repayment of deposits or payment of interest thereon during the year and if so, number of such cases and the total amount involved: |
|
 |
(i) At the beginning of the year |
NIL |
 |
(ii) Maximum during the year |
NIL |
 |
(iii) At the end of the year |
NIL |
* Pending for completion of legal formalities/ restraint orders/ nonreceipt of claims.
13. FUEL SECURITY
During the year, the supply position of coal and gas are given as under:
13.1.1 Coal Supplies
Your Company has entered into long term Fuel Supply Agreement with Coal India Limited (CIL) &Â Singareni Collieries Company Limited (SCCL) for total Annual Contracted Quantity (ACQ) of 157.56 MMT &Â 11.2 MMT respectively and Bridge linkage of 4.65 MMT for Barh. The short term MOU with the Singareni Collieries Company Limited (SCCL) for supply of 8.0 MMT of coal for Ramagundam, Simhadri, Mouda, Solapur and Kudgi (including 7.87 MMT under Bridge linkage) stations.
To leverage potential of rationalization of coal linkages, your Company has signed a Supplementary Agreement with CIL and CIL subsidiaries for all owned JV/ Subsidiary stations on 12.04.2017 for implementation of Govt. policy on âFlexibility in utilization of domestic coal for reducing cost of power generationâ. Under the Supplementary Agreement, your Company can allocate coal to any station of its own or any JV/ Subsidiary for optimising the Energy Charges.
As per directives of Govt., CIMFR started sampling at loading and unloading ends in Jan'16. During the period 2017-18, sampling at all loading end sidings (except two sidings i.e. CCL- Amrapali &Â KD- old) and sampling at unloading end of all your Company stations have been started. Further, sampling at unloading end of four your Company's JV stations out of six have also been taken up by CIMFR. Remaining (Meja and BRBCL) are expected to start in next FY.
Earlier your Company was also allocated Bridge Linkages for seven stations viz i) Barethi ( 4x660MW), ii) Barh - II ( 2x660 MW), iii) Darlipalli - I ( 2x800MW), iv) Tanda- II (2x660 MW), v) Lara-I ( 2x800 MW), vi) Kudgi-I (3x800 MW) &Â vii) Bilhaur (2x660 MW) for a period of three years from the date of allocation of captive block. Out of the above stations, Bridge Linkage of Kudgi expiring on 31.03.2018 was extended by three months by MoC vide OM dated 28.03.2018 i.e upto June 2018. Subsequently, SLC (LT) in its meeting dated 10.04.2018 had recommended Bridge Linkage for Barh-II, Lara-I, Darlipalli, Tanda and Kudgi on tapering basis as per approved mining plan of the linked mines. The extension is valid upto 2022 for all the above stations except Barh-II which is valid upto 2023.
Bridge Linkage MoUs have already been signed for (i) Barh St-II with CCL &Â ECL (ii) Lara with MCL and (iii) Darlipalli with MCL and SECL. For other projects, as and when COD is declared MOU will be signed.
13.1.2 Â Â Â Domestic Coal and Imported Coal
During 2017-18, your Company received 167.67 MMT of coal as against 159.25 MMT in 2016-17 marking an increase of (+) 5.29%. Out of 167.67 MMT of coal, 155.87 MMT was from Annual Contracted Quantity of coal, 3.027 MMT through SCCL Bi-lateral MoU and 1.531 MMT received through e-auction. During 2017-18, Company Imported 0.32 MMT of coal supplied against carryover of last contract awarded on Aug'2015 as against 1.09 MMT in 2016-17 making a decrease of (-) 70.6% in import coal.
13.1.3 Â Â Â Sourcing of coal through E-auction
To supplement import coal as well as deficiencies in FSA coal qty. Your Company participated in e-auctions of CIL subsidiaries &Â SCCL in the current financial year also. In the current FY, your Company has participated in e-auction of total 1017 nos rake of coal (4.03 MMT), out of which 604 nos rake of coal (2.42 MMT) have been allotted.
13.1.4 Â Â Â Supply through Inland Waterways
During 2017-18, about 1.61 lakh MT imported coal has been supplied through this mode to Farakka station under a Tripartite Agreement with IWAI and service provider.
13.1.5 Â Â Â Gas supplies
During 2017-18, your Company received total 4.48 MMSCMD of Domestic gas as against 5.17 MMSCMD of Domestic gas received during 2016-17. Spot RLNG offtake during 2017-18 was 0.85 MMSCMD.
Your Company has Administered Price Mechanism (APM) gas agreements up to the year 2021 and Panna Mukta Tapti (PMT) gas agreements up to the year 2019 with GAIL. The agreement for Non-APM gas with GAIL has been renewed up to the year 2021.
For additional gas requirement over and above the supplies under long-term domestic gas agreements, your Company has been making arrangements for supply of Spot RLNG from domestic suppliers on âReasonable Endeavour' basis based on requirement and availability from time to time. Further, adequate stock of liquid fuel is maintained for meeting Grid's requirement. There has been no generation loss on account of lack of availability of Domestic gas / RLNG / Liquid fuel during the year.
13.1.6 Â Â Â Oil/Gas exploration:
In the KG basin exploration block KG-OSN-2009/4 where ONGC is the Operator and your Company has 10% stake, after completion of Minimum Work Programme (MWP), ONGC has submitted proposal to DGH for relinquishment of the block.
13.2 Development of Coal Mining projects
Your Company has been allocated eight coal blocks by Government of India, namely, Pakri-Barwadih, Chatti-Bariatu &Â Chatti-Bariatu (South), Kerandari located in the State of Jharkhand, Dulanga, Mandakini-B located in the State of Odisha and Talaipalli, Banai &Â Bhalumuda located in the State of Chhattisgarh. In addition, Government of India has also allocated Kudanali-Luburi coal block (Odisha) jointly to your Company and the State of J&K, with your company's share of coal reserves in this block being two-third share of coal reserves to your Company.
Banhardih coal mine is allocted to PVUNL, a JV company of NTPC Limited.
From these 10 coal blocks, with a total estimated geological reserves of about 7.3 Billion Metric Tonnes, your Company including its group companies expects to produce about 111 Million Metric Tonnes of coal per annum. Your Company on standalone basis expects to produce 94 million metric tonnes per annum of Coal.
Coal production commenced from Pakri-Barwadih coal block in Dec'16. It is a Basket Mine. During FY 2017-18 about 2.67 MMT coal have been extracted and 683 no of rakes of coal have been dispatched to power stations through Indian Railways network. 1143 no of rakes of coal have been dispatched to power stations up to 15.07.2018. Production target for this mine in FY 201819 is 6.27 MMT in line with the mine plan.
Mine Developer-cum-Operator (MDO) for Dulanga coal block has been appointed on 09.02.17. Mining operation started on 28.02.18. The end use plant of this mine is Darilipalli (1320 MW) STPP located about 10 kms from the block. Coal is transported to the power project by captive MGR system. Coal production target for this mine in FY 2018-19 is 1.5 MMT.
Mine Developer-cum-Operator (MDO) for Talaipalli and Chatti-Bariatu coal blocks were appointed on 13.11.17. In view of violation of âIntegrity Pact', your Company has kept the contract under suspension and show cause notice for termination has been served on 29.12.17. The matter is sub-judice. In case of Chatti-Bariatu and Talaipalli about 61% and 90% land payments has been completed respectively. For Kerandari coal block tender for MDO appointment has been annulled. Having gained experience by opening two mines and with a view to develop in house competency this block is now proposed to be developed in a limited outsourcing mode. As per Allotment Agreement with MoC, scheduled target for coal production from the three blocks i.e. Talaipalli, Chatti-Bariatu and Kerendari is November 2019.
In the above five coal blocks i.e. Pakri-Barwadih, Dulanga, Talaipalli, Chatti-Bariatu &Â Kerandari, on community development / CSR activities, your Company has incurred an expenditure of ' 20.47 crore in this FY 2017-18 (Cumulative expenditure of appx. ' 100 crore) which has helped in improving the socio-economic conditions of the local community.
For Mandakini-B coal block, Mining Plan &Â FR are under preparation. Target for commencement of production is February 2022.
At the time of allotment, the Banai &Â Bhalumuda coal blocks were unexplored. NTPC got the exploration
completed and Geological Report(s) are available. There are issues in availability of land for external OB dump and therefore with a view to optimise exploitation, your Company has proposed to the Nominated Authority, Ministry of Coal for merger of these coal blocks. The matter is under consideration at MoC.
Initiatives through Joint Ventures and Subsidiaries:
Banhardih coal block which was allocated to JUUNL as the linked mine for the Patratu Power Project has now been assigned to Patratu Vidyut Utpadan Nigam Ltd. (PVUNL), a JV company incorporated between your Company &Â Government of Jharkhand. For land acquisition Section 4(i) notification under CBA Act, has been notified by MOC.
Kudanali-Laburi Coal block in Odisha has been jointly allotted to your Company &Â State of J&K by MoC, GoI. Joint Venture Agreement between your Company &Â JKSPDCL has been signed on 15.06.15 for incorporation of a Joint Venture Company for Exploration, Development &Â Operation of the Coal Block. Approval from NITI Aayog has been obtained for formation of JV Company. Action is underway for formation of the Company.
Your Company has decided to have coal mining business into a wholly-owned subsidiary in order to meet various business/strategic objectives viz. fuel security, focused management, readiness for future, de-linking business risks and enhancement of shareholder value.
Consent of Niti Aayog has been obtained for formation of subsidiary. Your Company has approached Ministry of Coal, GoI for no objection certificate in this regard.
14. BUSINESS EXCELLENCE: GLOBAL BENCHMARKING
Your Company has developed and adopted âNTPC Business Excellence Model' on the lines of globally accepted Performance Excellence frameworks such as the Malcolm Baldrige Model USA and EFQM Model of Europe.
The assessment process is aimed at identifying the area for enhancing stakeholders' engagement, improving critical processes and developing leadership potential.
The outcome of this model is identification of organizational strength, opportunities for improvement, issues of concern and best practices.
In the financial year 2017-18, 22 generating stations were assessed by a team of certified assessors. Business
Excellence Award for best performance was given to Talcher-Kaniha.
I n its pursuit to embrace digital and paperless working environment, your Company has started implementation of an IT enabled initiative- Corporate Performance Management and Business Intelligence system to enable strategy execution and communication, analytics, query response, reporting and automating few business processes that provides effective decision support for the management across different tiers.
Other contemporary TQM concepts and techniques like ISO, Quality Circles, Professional Circles, 5S etc. have been deployed across the organization. Quality Circle team of your Company - Talcher Thermal Station had participated in International QC Convention held at Manila in October 2017.
15. RENOVATION &Â MODERNISATION
I n the present scenario of severe resource constraint, Renovation and Modernization (R&M) of power plants is considered to be a cost-effective option which can complement new capacity addition as R&M schemes have a shorter gestation period with all clearances, land, water, fuel and beneficiaries available. To this end, R&M is being carried out to overcome the impact of ageing of the units over the years and for the purpose of ensuring SAFE OPERATIONS, compliance with revised and stringent environmental norms, life extension of units, performance improvements, availability and reliability improvement and to overcome obsolescence as well as changes in operational logistics. It ensures safe, reliable and economic electricity production by replacement of worn-out, deteriorated or obsolete electrical, mechanical, instrumentation, controls and protection system by state-of-the-art equipment.
Investment approval accorded till date for R&M in 20 stations (Coal &Â Gas based) is Rs, 14,069.07 Crore. As against this, cumulative expenditure till 31.03.2018 is Rs, 6,817.20 Crore which includes R&M capital expenditure of Rs, 544.36 Crore during FY 2017-18.
As a responsible corporate citizen, it has always been your Company's endeavour to ensure low levels of pollution from its power stations. With a view to maintain a clean atmosphere in and around the power plant by reduction of particulate emission levels from generating stations, Renovation and Retrofitting of Electrostatic Precipitator (ESP) packages have been awarded for 53 Units in 12 Stations namely Tanda - (4 x110MW), Badarpur
- II (2x210MW), Singrauli - I &Â II (5X200MW+2X500MW), Korba - I &Â II (3X200MW+3X500MW), Farakka - I &Â II (3X200MW+2X500MW), Vindhyachal - I &Â II (6X210MW+2x500MW), Rihand - I (2x500MW), Unchahar
- Â Â Â I (2x210MW), Talcher TPS-II (2X110MW), Talcher STPS
- Â Â Â I &Â II (2X500MW+4X500MW) awarded prior to FY 201718 and Unchahar - II (2x210MW), Ramagundam - I (3x200 MW) and Kahalgaon - I (4 x 210 MW) awarded during FY 2017-18. ESP R&M work has been completed, during 2017-18, in 9 units namely 1x210MW+2x500 MW of Korba, 2x500 MW of Talcher STPS, 1x110 MW of Talcher TPS, 1x210 MW of Unchahar, 1x200 MW of Farakka and 1x500 MW of Vindhyachal and total no of units in which ESP R&M has been completed till Mar'18 is 23 in 9 stations.
With a view to removing technological obsolescence, renovation of Control &Â Instrumentation (C&I) has been taken up in 9 coal based stations namely Singrauli-I (5X200MW) &Â Singrauli - II (2X500 MW), Korba -I (3X200MW) &Â Korba - II (3X500 MW), Ramagundam -I (3X200MW) &Â Ramagundam - II (3X500MW), Farakka-I (3X 200 MW) &Â Farakka-II (2X500 MW), Dadri Thermal-I (4X210MW), Unchahar- I (2X210MW), Talcher STPS-I (2X500MW), Kahalgaon-I (4X210 MW) and Rihand
- Â Â Â (2X500 MW) comprising a total of 38 units. During 2017-18, C&I R&M was completed in one 500 MW unit of Farakka, one 500 MW unit of Ramagundam and two 210 MW units of Kahalgaon and the total no. of units in which C&I R&M completed till date is 30. Renovation of Control &Â Instrumentation (C&I) has also been taken up in five gas based stations namely Anta (419.33 MW, 3 GT + 1 ST), Auraiya (663.36 MW, 4 GT + 2 ST), Kawas (656.20 MW, 4 GT + 2 ST), Dadri Gas (829.78 MW, 4 GT + 2 ST) and Faridabad (432 MW, 2 GT + 1 ST). During 2017-18, C&I R&M was completed in one Module( 2 GT + 1 ST) in Dadri Gas and the total no. of units in which C&I R&M completed in Gas Stations till Mar'18 is 13 GT/WHRB and 6 STG. On completion of these schemes, C&I systems in these units have now been brought nearly on par with the new builds.
R&M of Gas Turbines was completed in 14 Gas Turbines in four stations namely 4x106MW in Kawas, 4x111.19 MW in Auraiya, 3x88.71MW in Anta and 3x144.30MW in Gandhar.
16. HUMAN RESOURCE MANAGEMENT
16.1 Your Company takes pride in its highly motivated and competent Human Resource that has contributed its best to bring the Company to its present heights. The productivity of employees is demonstrated by increase in generation per employee and consistent reduction of Man-MW ratio year after year. The overall Man-MW ratio for the year 2017-18 excluding JV/subsidiary capacity is 0.44 and 0.42 including capacity of JV/ Subsidiaries. Generation per employee was 13.47 MUs during the year based on generation of your Company's stations.
The total employee strength of your Company (including JV/ subsidiaries) stood at 21,584 as on 31.3.2018 against 22,124 as on 31.3.2017.
 |
FY 2017-18 |
FY 2016-17 |
Number of employees |
19,739 |
20,593 |
Subsidiaries &Â Joint Ventures |
 |  |
Employees of your Company in Subsidiaries &Â Joint Ventures |
1,845 |
1,531 |
Total employees |
21,584 |
22,124 |
The attrition rate of your Company executives during the year was 0.53% in comparison to last year at 0.93%.
16.2 Â Â Â Employee Relations
Employees are the driving force behind the sustained stellar performance of your Company over all these years of company's ascendancy. As a commitment towards your Company's core values, employees' participation in Management was made effective based on mutual respect, trust and a feeling of being a progressive partner in growth and success. Communication meetings with unions and associations, workshop on production and productivity etc. were conducted at projects, regions and corporate level during the year.
Both employees and management complemented each others' efforts in furthering the interest of your Company as well as its stakeholders, signifying and highlighting overall harmony and cordial employee relations prevalent in your Company.
16.3 Â Â Â Safety and Security
Occupational health and safety at workplace is one
of the prime concerns of Company Management and utmost importance is given to provide safe working environment and to inculcate safety awareness among the employees. Your Company has a 3-tier structure for Occupational Health and Safety management, namely at Stations/Projects, at Regional Head Quarters and at Corporate Center. Safety issues are discussed in the highest forum of management like Risk Management Committee (RMC), Management Committee Meeting (MCM), ORTs, PRTs etc. Ex-Director Operations (Nuclear Power Corporation Ltd) was engaged to enrich safety systems and strengthen process safety. On the occasion of âNational Safety Dayâ CMD along with the Board addressed all project / Stations.
All of your Company's stations are certified with OHSAS-18001/IS-18001. Six of our stations are going for international level NOSA accreditation in Safety and Environment. Regular plant inspection and review with Head of Project/Station is being done. Internal safety audits by safety officers every year and external safety audits by reputed organizations as per statutory requirement are carried out for each Project/Station. Recommendations of auditors are regularly reviewed and complied with. Company level HIRA document has been prepared and shared with all stations.
Height permit and height check list are implemented to ensure safety of workers while working at height. Adequate numbers of qualified safety officers are posted at all units as per statutory rules/provisions to look after safety of men &Â materials. Mock drills were conducted with NDRF to prepare for any extreme on site emergency. Sites are engaging the safety consultant of international repute to uplift safety standards.
For strict compliance &Â enforcement of safety norms and practices by the contractors, safety clauses are included in General Conditions of Contract/ Erection Conditions of Contract.
Detailed emergency plans have been developed and responsibilities are assigned to each concerned to handle the emergency situations. Mock drills are conducted regularly to check the healthiness of the system.
Most of your Company's plants have been awarded with prestigious safety awards conferred by various Institutions/Body like Ministry of Labour &Â Employment-Govt. of India, National Safety Council, Institute of Directors, Institution of Engineers (India), in recognition of implementing innovative safety procedures and practices.
An unfortunate accident took place on 1st November 2017 in the boiler of 6th unit of Unchahar plant at U.P. This caused fatal accidents and burn injuries to the personnel working in the boiler area. Relief measures were immediately taken and all medical facilities were provided to the injured. Ex-gratia compensation was provided to the families of deceased and to the injured personnel.
The standard operating procedures were followed for maintaining utmost safety in operations and processes in your Company to avert such accidents.
Security: Your Company recognizes and accepts its responsibility for establishing and maintaining a secured working environment for all its installations, employees and associates. This is being taken care of by deploying CISF at all units of your Company as per norms of Ministry of Home Affairs. Concrete steps are being taken for upgrading surveillance systems at all projects/ stations by installing state-of-the-art security systems.
16.4 Training and Development
Your Company has consistently endeavored for attracting, on-boarding, grooming and motivating its talent recognising that nurturing the talent leads to competitive advantage.
Power Management Institute (PMI), the apex learning and development (L&D) center of your Company, is actively engaged in making our people future ready in terms of technology, business acumen and leadership. All the programs are carefully linked to Company's strategic objectives, business plan and emerging trends.
During FY 2017-18, your Company upgraded its physical and digital infrastructure to impart learning through contemporary pedagogy in world class ambience. It renovated its classrooms with state-of-the-art facilities including smart boards, video conferencing and session-recording facilities.
Our training delivery methods include a judicious blend of classroom learning, theater workshop, village immersion module (for first hand CSR feel to young ETs), e-learning platform, video and web platforms etc.
An in-house e-Learning portal called e-Guru has been created which provides all the e-Learning resources on a unified platform. A e-library of 25,000 e-books, 1,000,000 articles, reports and journals supports employees' knowledge up-gradation.
Last year, PMI introduced new eLearning courses (1000 course licenses from General Physics (GPiLearn)) in the power plant technical skills domain. Augmented Reality/Virtual Reality platform has been introduced as new L&D tool for providing real time immersive learning to participants particularly in the areas of O&M and Project related safety.
The L&D interventions are designed after a multidimensional Training Need Analysis (TNA) for enhancing technical, functional, strategic and leadership skills with focus on business objectives of the Company. In PMI, 237 training programs were conducted during FY17-18, covering nearly 7,272 professionals, resulting in a total of approximately 38,046 learning man-days.
PMI is also conscious of the fact that the business complexities of the future would need global mindset and competence. Last year, it sent three batches (about 40 each) of senior executives (GMs/EDs) to Harvard and one batch (about 25) to Wharton to get learning from some of the best in the world.
I n recognition to its pioneering efforts, your Company PMI has received the globally acknowledged ATD Best 2017 and 2018 Awards (Two years in succession), ISTD Innovative Practices Award 2016-17 and the BML Munjal Award 2018 (Sustained Excellence Category). These awards recognize organizations that demonstrate enterprise-wide success as a result of L&D and talent development practices.
17. SUSTAINABLE DEVELOPMENT
Your Company has adopted the âtriple bottom-line' approach recognizing People, Planet and Profit as the primary pillars of corporate sustainability and believes that Development should not endanger the natural systems.
Your Company is preparing Sustainability Report based on the Global Reporting Initiative (GRI). Sustainability reporting has helped us in measuring and monitoring the Company's performance. It has served as an important management tool helping your Company to relook the systems, policies and procedures. Your Company has developed a policy and in accordance with it, a Sustainable Development Plan was prepared for FY 2017-18. The focus area of Sustainable Development Plan covers waste management, water management, bio-diversity, promotion of renewable energy. Major activities carried out under this plan include massive plantation of trees, installation of rooftop Solar PV around power stations on public utilities buildings and on schools, vermicomposting/Bio-meth nation plant &Â studies on environment impact assessment. Major activities under bio-diversity conservation taken up are conservation of Olive Ridley Sea Turtles and study on bio-productivity of Gangetic Dolphin at Kahalgaon Station. Business Responsibility Report is attached as Annex-X and forms part of the Annual Report.
Revenue expenditure of ' 56.22 Crore was incurred on these SD projects during Financial Year 2017-18.
17.1 Â Â Â Inclusive Growth -Initiatives for Social Growth
17.1.1 Â Â Â Corporate Social Responsibility:
CSR has been synonymous with Company's core business of power generation. The Company's spirit of caring and sharing is embedded in its mission statement. The Company has a comprehensive Resettlement &Â Rehabilitation (R&R) policy covering community development (CD) activities which has been revised and updated from time to time. CD activities in green field area are initiated as soon as project is conceived and thereafter extensive community / peripheral development activities are taken up along with the project development. Separate CSR Community Development Policy, formulated in July 2004 and Sustainability Policy formulated in Nov 2012 were combined and revised in 2016 as âNTPC Policy for CSR &Â Sustainabilityâ in line with Companies Act, 2013 and DPE Guidelines for CSR. It covers a wide range of activities including implementation of key programmes through NTPC Foundation.
Focus areas of your Companyâs' CSR &Â Sustainability activities are Health, Sanitation, Safe Drinking Water, Education, Capacity Building, Women Empowerment, Social Infrastructure livelihood creation and support through innovative agriculture &Â livestock development, support to Physically Challenged Person (PCPs) and activities contributing towards Environment Sustainability. The Company commits itself to contribute to the society, discharging its corporate social responsibilities through initiatives that have positive impact on society at large, especially the community in the neighborhood of its operations by improving the quality of life of the people, promoting inclusive growth and environmental sustainability.
Preference for CSR &Â Sustainability activities is given to local areas around Company's operations, ensuring that majority CSR funds are spent for activities in local areas. However, considering Inclusive Growth &Â Environment Sustainability and to supplement Government effort, activities are also taken up anywhere in the country. During the year, about 550 villages and more than 450 schools have been benefitted by your company's various CSR initiatives at different locations. Your company's CSR initiatives have touched the lives of around 10 lakh people in one or the other way, residing at remote locations.
Apart from the CSR activities undertaken in and around operations to improve the living conditions of the local communities, other CSR initiatives undertaken PAN India are mentioned in the Annual Report on CSR activities annexed with this Report.
Your Company spent Rs, 241.54 Crore during the financial year 2017-18 towards CSR initiatives, which surpassed the prescribed two percent amount of Rs, 220.75 Crore, thus achieving a CSR spend of 2.19%.
17.1.2 Â Â Â NTPC Foundation
NTPC Foundation, funded by your Company, is engaged in serving and empowering the differently-abled and economically weaker sections of the society.
Details of expenditure incurred and initiatives undertaken by the Company under CSR are covered in the Annual Report on CSR annexed as Annex-VII to this Report.
17.1.3 Â Â Â Rehabilitation &Â Resettlement (R&R)
Your Company is committed to help the populace displaced for execution of its projects and has been making efforts to improve the Socio-economic status of Project Affected Families (PAFs). In line with its social objectives, the Company has focused on effective resettlement and rehabilitation (R&R) of PAFs and also on community development works (CD) in and around its projects.
Your Company had revised its R&R Policy in the year 2017 to incorporate R&R entitlements as per The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act) in order to extend facilities to PAFs.
Your Company addresses R&R issues in line with its R&R Policy with an objective that PAF will improve or at least regain their previous standard of living. As per the Policy and the RFCTLARR Act, a Socio-economic Survey (SES)/Census Survey will have to be conducted by the State Govt to collect detailed demographic details of the area which shall form the basis for the preparation of âRehabilitation and Resettlement (R&R) Scheme. Apart from the R&R provisions in line with
RFCT LARR Act, need based community development (CD) activities will also be included in the Scheme for contributing to socio-economic development of the PAFs and nearby population residing in the vicinity of the project.
R&R Scheme is a part of capital cost of the project which is implemented in a time bound manner so as to complete its implementation by the time the project is commissioned. On completion of the R&R Scheme, a Social Impact Evaluation (SIE) is conducted by a professional agency to know the efficacy of R&R Scheme implementation for future learnings.
Cost provision for R&R/ CD Plan for Tapovan-Visnugad Hydro Power Project was enhanced for providing additional funds for âLong Term water supply arrangement for Joshimath area.
R&R/ CD activities were implemented at the new Greenfield / Brownfield Thermal projects at Barh, Bongaigaon, Barethi, Darlipali, Gadarwara, Khargone, Muzaffarpur, Korba, Kudgi, Lara, Meja, Mouda, North-Karanpura, Solapur, Tanda-II, Unchahar-IV, Vindhyachal-IV/V, Telangana-I, Hydro projects at Koldam, Tapovan Vishnugad, Rammam-III and Coal Mining Projects at Pakri-Barwadih, Chhatti-Bariatu, Kerendari, Dulanga and Talaipali projects.
Re-appropriation of under implementation R&R / CD Plans, as required on a case to case basis for specific project, was also approved to take care of the local requirements during implementation.
Need Assessment Survey/ Social Impact Evaluation was carried out at Singrauli, Patratu &Â Meja projects.
Planned audit of LA/R&R activities was conducted.
Details of focus area of R&R-CD activities are as under:
Swachh Bharat Abhiyan - Various initiatives were taken to make project affected villages open defecation free by taking up activities related to construction/audit of individual toilets and awareness programs.
Drinking water - Planning and implementation for access to drinking water for 100% coverage of all project affected villages of your Company was undertaken.
Capacity building / Skill up gradation - MOU/ Tie up with National Skill Development Corporation (NSDC) is being implemented for imparting skill development to PAFs at various projects as part of âNational Skill Development Mission' of GOI.
Education - Construction activities started for Medical College at Sundargarh (Odisha) and Engineering College at Shivpuri (MP).
Health - For the benefits of project affected persons and neighboring population âMobile Health Clinic', Medical camps and dispensaries are being operated for comprehensive health coverage of PAPs at North Karanpura and mining projects at Jharkhand during the year.
17.2 Environment Management - Environment Policy of your Company:
âTo provide cleaner energy by committing to highest possible levels of performance in environmental compliance, practices and stewardship.â
Your Company has always envisaged environment protection and management practices as one of its prime responsibilities and focuses its efforts to minimize the impact of its operation on surrounding environment and concerned ecosystem.
Your Company undertakes comprehensive environment management plan right from conception of project, selection of site, resources (Land, Coal &Â Water source) and state of art technology. Your Company is also undertaking massive renovation &Â modernization to upgrade air pollution equipment wherever necessary. Your Company has also taken initiative for installation of Flue Gas Desulfurization (FGD) system for SOx emission control and optimization &Â implementation of appropriate technology for NOx emission control.
Around 12-15% of the project cost is spent on various environment protection equipments and monitoring systems such as Electrostatic Precipitators (ESPs), Liquid Waste Treatment Plants (LWTP), Ash Water Recirculation System (AWRS), Coal Settling and Separation Pit (CSSP), Dry ash extraction system (DAES), dust extraction &Â suppression system, Continuous emission monitoring system (CEMS), Effluent quality monitoring system (EQMS), Continuous ambient air quality monitoring system (CAAQMS), flue gas conditioning system and desulphurization system etc. It has adopted advanced and high efficiency technologies such as super critical boilers at new stations, DeNOx and FGD in all upcoming green field projects.
Your Company is augmenting its capacity by installing wind power, solar power systems in a big way, hybrid power plant in combinations e.g. Wind &Â Solar, Solar &Â Thermal and small hydel power systems attached to its thermal power stations to encourage garnering of renewable energy resources. These measures are aimed not only to achieve reduction in pollution and to minimize use of precious natural resources but also to lead to reduction in water and carbon footprints.
17.2.1 Control of Air Emissions:
High efficiency Electro-static Precipitators (ESPs) with efficiency of the order of 99.97% and above, with advanced control systems have been provided in all coal based stations to keep Particulate Matter (PM) below the prevailing permissible emission limits. All upcoming units have been planned with ESPs, DeNOx and FGD system designed to meet new emission norms. Performance enhancement of ESPs operating over the years is being carried out by augmentation of ESPs fields, retrofitting of advanced ESP controllers, new technology i. e. MEEP (Moving electrode Electrostatic Precipitators) and adoption of sound O&M practices.
For control of SOx, first FGD has been commissioned and became operational at Vindhyachal Station. Erection of FGD at Bongaigaon is in advance stage. FGD package for all stations in NCR area awarded to comply the new norms for SOx emission by December, 2019. Work for erection of FGD system started at both station. In case of existing units, FGD is being planned in a phased manner at other locations as per the timeline given by central regulator for implementation of new norms.
NOx control in coal-fired plants is presently achieved by controlling its production by adopting best combustion practices (primarily through excess air and combustion temperatures optimization). To comply with new norms for NOx emission, pilot study based on SCR/SNCR technology at 11 locations are in final stage of completion to find out the optimal solution and suitable technology for DeNOx system suitable for Indian Coal. In gas based stations, NOx control systems (hybrid burners or wet DeNOx) have been provided for good combustion practices.
Change of secondary fuel from HFO to alternative fuel (LDO or LSHS) having low sulfur content to minimize the SOx emission during the start up of coal based units in NCR is in advanced stage. As per the order of Hon'ble Supreme Court, use of HFO was banned in state of UP, Haryana, Rajasthan and Delhi whereas your Company has decided to switch the use of HFO to alternate fuel in all the units of your Company.
17.2.2 Â Â Â Control of water pollution and adoption of ZLD approach:
Your Company as a responsible corporate entity for environment has proactively initiated steps towards water stewardship in power generation sector. Company released its Water Policy-2017 to set own benchmark in water consumption in power generation by setting its aim &Â objectives for various water conservation and management measures by using 3Rs (Reduce, Recycle &Â Reuse) as guiding principle. Water bodies rehabilitation &Â restoration, water withdrawal optimization depending on the sustainable water withdrawal capacity and rejection of water bodies as water source, which are recognized as environmentally sensitive due to their relative size and habitat for ecologically sensitive species.
Provision of advanced waste water treatment facilities such as sewage Treatment Plant (STP), Liquid Waste Treatment Plants (LWTP), Coal Settlement Pit (CHP), Ash Water Recirculation System (AWRS) and closed cycle condenser cooling water systems with higher Cycle of Concentration (COC), rain water harvesting and reuse of treated effluent in ash slurry disposal and reuse of treated sewage effluent for horticulture purposes are some of the measures implemented in all stations. For effective monitoring of water use, flow meters with integrators installed at all designated locations in all stations.
In view of water stressed scenario and new norms for specific water consumption, water conservation and reduction in water consumption per unit of generation enable your Company to comply the new norms on water consumption in all operating stations. Your Company has taken a proactive approach of making all its power stations to operate with ZLD (Zero liquid discharge) during the current year.
17.2.3 Â Â Â Real Time Environment Monitoring System: All the
power stations are equipped with continuous ambient air quality monitoring stations (CAAQMS) to capture the real time ambient air quality data for parameters namely PM10.0, PM 2.5, SO2, NOx and access thereof has been provided to the Central and State Regulators i.e. Central Pollution Control Board and State Pollution Control Boards/PCCs. Additional ozone analyzers for ambient air are also being provided phase-wise at the existing stations. Continuous Emission Monitoring Systems (CEMS) are installed in all units to monitor emissions of SO2 and NOx and opacity meter for monitoring of particulate emission. Effluent Quality monitoring system (EQMS) are installed for real time monitors for pollutants in effluents from all stations. The real-time data is being transmitted to regulators. For all the upcoming projects, real time monitors for ambient air, effluents and emissions are included in the engineering packages during design stage itself.
17.2.4 Â Â Â Revised Emission Norms
The new environmental norms notified by MOEF&CC vide gazette notification dated 07.12.2015 calls for introduction of new control devices for oxides of sulphur and nitrogen. All existing and new plants require DeSOx and DeNOx plants to be introduced into the plant designs. In this regard, your Company has risen to the occasion and issued bulk tenders for 66 units of around 38 GW capacity for installing FGD (flue gas desulphurization) system to meet SO2 emissions limit. FGD installation Work in 7,230 MW is underway. Further, FGD in Vindhyachal stage-V is already in operation. For establishing DeNox, the suitability of SCR (selective catalytic reduction) for the coals used in Indian power plants, which characterize uniquely with high ash content and its abrasive nature, pilot tests are underway at seven stations of your Company. Further, your Company as a pioneer in environment monitoring has already installed Ambient Air Quality Monitoring Stations (AAQMS) employing NOx, SOx, CO, SPM &Â RSPM analysers in 20 operating stations in 2009-10 and data is made available to CPCB and SPCB. Similarly, Continuous Emission Monitoring System (CEMS) employing NOx, SOx, CO &Â CO2 analysers at stack for flue gas have been installed recently in various operating stations. Your Company has also recently introduced analysers for Mercury monitoring for both AAQMS and CEMS.
17.2.5 Â Â Â Tree Plantation:
Your Company has undertaking tree plantation covering vast areas of land in and around its projects and till date more than 33 million trees have been planted throughout the country including 10 million trees planted during 2016-17 under accelerated a forestation programme inline with NDC-2030 of Nation followed by 1 million tree plantation during 2017-18.
The forestation has not only contributed to the âaesthetics' but also helped in carbon sequestration by serving as a âsink' for pollutants and thereby protecting the quality of ecology and environment. Further, your Company has embarked upon long-term Memorandums with State authorities to assist National Commitment of NDC in COP 21, by planning to plant 8 million saplings during 2018-26 @ 1 million per year.
17.2.6 ISO 14001 &Â OHSAS 18001 Certification:
All stations of your Company have been certified with ISO 14001 and OHSAS 18001 by reputed National and International certifying agencies in recognition of its sound environment management systems and practices.
17.3 Â Â Â Quality Assurance and Inspection (QA&I)
Your Company continues to place great emphasis on quality, with the view to secure long term reliability and availability of its productive assets and the investments. This is ensured by committing adequate number of qualified and trained human resources for quality related activities, maintaining field laboratories at the construction sites and pursuing time tested systems &Â processes, resulting in world class standards of performance of the plants.
In your Company, quality needs are identified and planned, keeping in mind the interests of all the stake holders, by interacting with major Power Equipment manufacturers of the world, thereby embracing the latest technologies available. The quality requirements associated with such technologies are rigorously pursued during manufacturing, erection &Â commissioning of various products/ systems/ services. The dynamic feedback system ensures that the gaps, if any, are filled through resetting the methods and standards resulting in continuous improvement.
Your Company's robust performance on all parameters, is a testimony to the soundness of the quality system deployed.
Your Company is represented on various technical committee of ISO and IEC and is actively contributing in formulation and updating of power sector technical and quality standards/ guidelines, to serve the national as well as international community at large.
17.4 Â Â Â Clean Development Mechanism (CDM)
Your Company is pioneer in undertaking climate change issues proactively. The Company has taken several initiatives in CDM Projects in Power Sector.
Five of its renewable energy projects viz. 5 MW Solar PV Power Project at Dadri, 5 MW Solar PV Power Project at Port Blair (A&N), 5 MW Solar PV Power Project at Faridabad and 8 MW small hydro power project at Singrauli and 50 MW Solar PV Plant at Rajgarh (MP) have already been registered with United Nations Frame Work Convention on Climate Change (UNFCCC) CDM Executive Board.
Prior consideration form was sent for 10 MW Solar PV Power Project at Unchahar, 10 MW Solar PV Power Project at Ramagundam, 15 MW Solar Thermal Power Project at Anta.
Coordinating / Managing Entity (CME) has been appointed for 15 MW Solar PV Power project at Singrauli and 10 MW Solar PV project at Talcher and is in process to include the same in registered UNFCCC CDM Programme of Activities (PoA).
6,173 nos of Certified Emission Reductions (CERs) for
5 MW Solar PV Power Project at Port Blair (A&N) has been issued by UNFCCC CDM Executive Board. Further, another 5,842 nos of CERs have also been issued by UNFCCC CDM Executive Board for 5 MW Solar PV Power Project at Dadri.
Further, registration of new projects 250 MW Solar PV power project at Anantpur, 260 MW Solar PV power project at Bhadla, 250 MW Solar PV power project at Mandsaur and 50 MW Wind power project at Rojmal in Verified Carbon Standard (VCS) program has been initiated and will earn Voluntary Emission Reduction (VERs) in due course of time.
17.5 Ash Utilisation
During the year 2017-18, 603.13 lakh tonnes of ash was generated and 53.45% viz. 322.36 lakh tonnes of ash had been utilized for various productive purposes.
Important areas of ash utilization are - cement &Â asbestos industry, ready mix concrete plants (RMC), road embankment, brick making, mine filling, ash dyke raising &Â land development. We are also pursuing new initiatives for fly ash utilization like fly ash based geopolymer road, transportation of fly ash from pithead power stations to fly ash consumption centers, setting up ash based light weight aggregate plant.
Pond ash from all stations of your Company is being issued free of cost to all users. Fly ash is also being issued free of cost to fly ash/ clay-fly ash bricks, blocks and tiles manufacturers on priority basis over the other users from all coal based thermal power stations. The funds collected from sale of ash is being maintained in the separate account and this fund is being utilized for development of infrastructure facilities, promotion and facilitation activities to enhance ash utilization.
Your Company has an Ash Utilization Policy, which is a vision document dealing with the ash utilization issue in an integral way from generation to end product. This policy aims at maximizing utilization of ash for productive usage along with fulfilling social and environmental obligations as a green initiative in protecting the nature and giving a better environment to future generations.
The quantity of ash produced, ash utilized and percentage of such utilization during 2017-18 from your Company's Stations is at Annex- VIII.
17.6 CenPEEP - towards enhancing efficiency and protecting Environment
Your Company initiated a unique voluntary program of GHG emission reduction by establishing âCenter for Power Efficiency and Environmental Protection (CenPEEP)' and under this program, it is estimated that cumulative CO2 avoided is 45.3 million tonnes since 1996, by sustained efficiency improvements.
CenPEEP is working for efficiency and reliability improvement in stations through strategic initiatives, development and implementation of systems and introduction of new techniques &Â practices. Critical efficiency parameter, draft power consumption, efficiency improvement through overhauling are monitored. PI based real time programs and dashboards are in use for real time tracking of plant parameters. These programs also assist operating engineers in tracking the gaps in heat rate and auxiliary power consumption, trending the degradation of equipment performance and taking corrective measures.
CenPEEP is instrumental in implementation of Energy Efficiency Management System (EEMS) consisting of periodic assessments, field tests, performance gap analysis deviations and updating of action plans at all stations.
CenPEEP is also working towards reduction in specific water consumption and auxiliary power consumption in coal and gas stations. A dedicated group conducts regular energy audits to identify potential improvement areas and improvement actions. Further, CenPEEP is also associated in carrying out water audit of stations and taking corrective actions for reduction in water consumption.
CenPEEP is also involved in structured and statutory energy audits, which helps to identify potential areas of improvement in APC reduction to be addressed within time bound implementation schedule.
CenPEEP is actively involved in training and development of power professionals for the Company and other utilities in the power sector in the areas of Boiler &Â Auxiliaries, Turbine &Â Auxiliaries, Cooling Towers, RCM, PdM technologies etc.
CenPEEP is working on internal benchmarking study of different type of the units so that potential for improvements and improvement action plan can be finalized accordingly.
Your Company has taken EPRI membership in the areas of Boiler life &Â Availability improvement, Steam Turbine-Generators &Â Aux. system and Combustion &Â Coal Quality impacts to increase the knowledge, expertise of the Company and undertake collaborative research projects for improving efficiency and reliability of units.
CenPEEP coordinated implementation of Perform, Achieve &Â Trade (PAT) scheme under Prime Minister's National Mission on Enhanced Energy Efficiency (NMEEE) in your Company's coal &Â gas plants. As per notification, Company's coal and gas stations exceeded the Net Heat Rate improvement targets and earned net 170653 EScerts (Energy saving certificates) in PAT-1 cycle. Your Company participated in EScerts trading &Â purchased required EScerts. Subsequent to the trading, your Company is having 161,759 EScerts that will be used for PAT - II cycle.
Performance &Â Guarantee tests are being coordinated by CenPEEP which includes approval of procedure, conducting test &Â its evaluation.
CenPEEP is also associated in Technical due diligence of Stressed Power Plants of the country.
18. NETRA
Your Company has assigned 1% of PAT for R&D activities. Company has focused its research efforts to address the major concerns of the sector as well as the future technology requirements of the sector. In this effort, Company has established NTPC Energy Technology Research Alliance (NETRA) as state-of-the-art center for research, technology development and scientific services in the domain of electric power to enable seamless work flow right from concept to commissioning. The focus areas of NETRA are - Efficiency Improvement &Â Cost Reduction; New &Â Renewable Energy; Climate Change &Â Environmental protection which includes water conservation, Ash utilization &Â Waste Management. NETRA also provides Advanced Scientific Services to its stations and other utilities in the area of oil/water chemistry, environment, electrical, Rotor dynamics etc for efficient performances.
Research Advisory Council (RAC) of NETRA comprising of eminent scientists and experts from India and abroad is in place to steer research direction. Padma Bhushan Dr. V.K. Saraswat, former Secretary, DRDO and member of NITI Aayog is the Chairman of RAC.
Scientific Advisory Council (SAC) chaired by Director (Tech.) and Director (Operation), with Regional Executive Directors, ED (Engg.), ED (OS) and ED (NETRA) as its member, provides directions for undertaking specific applied research projects aimed to develop techniques in power plant for efficient, reliable and environment friendly operation with emphasis on reducing cost of generation.
Initiatives are taken to develop technologies for reducing forced outages, installing intelligent online monitoring of critical components, understanding the likely damages due to corrosion and providing appropriate solutions etc. Effort is being made for reducing cost of generation by either increasing the overhaul cycle or reducing overhaul duration through correct and proper health assessment of critical components, developing diagnostic tools and ensuring environmental &Â safety compliances. The prime thrust is towards clean and economic power generation. Patents have been filed in the areas of climate change, waste management etc.
NETRA has collaborations with National Institutes like IIT's, IISc-Bangalore, C-DAC, NML, CSIR labs, IOCL R&D, CPRI, CINFR, CBRI Roorkee and Geological Survey of India etc. to promote research in the field of CFD, Flow batteries, Renewable, environment, water chemistry, ash utilization, process development, etc.
NETRA also has collaborations with international institutions such as NETL-USA, Curtin University-Australia; Newcastle University-Australia, VGB-Germany, DLR / ISE-Germany. NETRA laboratories are ISO 17025 accredited and provide high end scientific services to all your Companyâs' stations as well as many other utilities. NETRA NDT laboratory is also recognized as Remnant Life Assessment Organization under the Boiler Board Regulations,1950.
Phase-II of NETRA infrastructure is under construction with approx 21,000 sq m floor area and is expected to be completed by 2018. Phase II will have 30 laboratories, workshop, pilot plant bay and an auditorium with seating capacity of 400 persons.
The details of activities undertaken by NETRA are given in Annex-III.
19. Â Â Â IMPLEMENTATION OF OFFICIAL LANGUAGE
Your Company took several initiatives for the progressive use of Hindi in the day to day official work and implementation of Official Language policy of the Union of India in your Company. The compliance of Official Language policy in our projects and regional headquarters was inspected and need based suggestions were given to the respective Heads of offices in this regard.
Quarterly meetings of Official Language Implementation Committee were held in which extensive discussions took place on the use of Hindi and the ways and means to bring about further improvements.
Hindi Divas was celebrated on 14th September 2017 and Hindi Fortnight was organized from 01-15 September, 2017 at the Corporate Center as well as regional headquarters and projects/stations to create awareness among the employees, associates and their family members. Vidyut Swar, our biannual Hindi magazine was published (in digitized form) to promote creative writing in Hindi. Annual conference of Hindi Officers was organized to review the progress of Rajbhasha in the Company.
Employees were motivated to use Hindi in official work by organizing Hindi workshops, Unicode Hindi Computer Training along with Hindi e-tools and popularization of Hindi incentive schemes. Hindi webpage was updated with important information of Rajbhasha for employees.
The second sub-committee of Parliament on official Language had inspected our units; reviewed the progress of Rajbhasha implementation and appreciated our efforts.
Your Company's website also has a facility of operating in a bilingual form, in Hindi as well as in English.
20. Â Â Â VIGILANCE
20.1 Vigilance Mechanism:
Your Company ensures transparency, objectivity and quality of decision making in its operations, and to monitor the same, the Company has a Vigilance Department headed by Chief Vigilance Officer, a nominee of Central Vigilance Commission. The Vigilance set up in your Company consists of Vigilance Executives in Corporate Center and Projects. In Projects, the Vigilance Executives report to the Project Head in administrative matters but in functional matters, they report to Chief Vigilance Officer.
Your Companyâs' Corporate Vigilance Department consists of four Cells as under :
- Â Â Â Vigilance Investigation and Processing Cell
- Â Â Â Departmental Proceedings Cell
- Â Â Â Technical Examination Cell
- Â Â Â MIS Cell
These cells deal with various facets of vigilance mechanism. The vigilance works of each region namely ER-I, ER-II, WR-I, WR-II, NR, NCR, SR and Hydro Region have been separately assigned to one Vigilance Officer at Corporate Center (Regional Vigilance Executive) for speedier disposal of vigilance cases. Senior officials of Vigilance Department comprising ED (Vigilance), Regional Vigilance Executives and Head of DPC/MIS Cell meet regularly to discuss common issues having greater importance so as to ensure uniform working in all Regions. This facilitates Transparency, efficiency and effectiveness of Vigilance functionaries by making use of collective knowledge, experience and wisdom of Vigilance Executives, breaking compartmentalization and abridging their strengths &Â weaknesses.
During 2017-18, 91 complaints were investigated by Vigilance department, out of which 55 complaints were carried to a logical conclusion and appropriate disciplinary action has been initiated wherever necessary. The remaining 36 complaints were under various stages of investigation as on 31.03.2018.
20.2 Â Â Â Implementation of Integrity Pact
Your Company is committed to have total transparency to its business processes and as a step in this direction; it signed a Memorandum of Understanding with Transparency International India in December, 2008. The Integrity pact is being implemented for all contracts having value exceeding Rs, 10 crore. Presently, your Company is having two Independent External Monitor to oversee the implementation of Integrity Pact Programme.
20.3 Â Â Â Implementation of various policies/ circulars
Fraud Prevention Policy and Whistle Blower Policy have been implemented in your Company to build and strengthen a culture of transparency. Your Company has also laid down a comprehensive policy for withholding and banning of business dealings with agencies, wherever the situation so demands.
20.4 Vigilance Awareness Week and Workshops
During 2017-18, Vigilance Awareness Week was observed during the period October 30, 2017 to November 4, 2017 in all projects and stations/ establishments of your Company. The focus of Vigilance Awareness Week of 2017-18 was âMy vision, corruption free Indiaâ. In line with this Vision, Vigilance Awareness Week commenced with taking Integrity pledge by employees on October 30th, 2017 at
11.00 Hrs across different locations, administered by respective Head of Projects/Regions and Senior most ED at Corporate Center. During the week, messages of Honourable President of India, Honourable Vice President of India, Central Vigilance Commission &Â CMD of your Company were read out to the employees. To encourage and emphasize upon the theme of vigilance awareness week, the messages were also uploaded on the Company's Intranet. The activities mainly focused on the theme of enhancing public participation in promoting integrity and eradicating corruption. Activities were accordingly organized at Projects/Stations/Inspection &Â Commercial Offices/ Regional Headquarters and Corporate Center. Among the outreach activities various interactive events were held in schools &Â colleges eliciting active response and participation from the students. Integrity clubs have also been set up in various schools running in your Company Townships. Among other activities, advertisements on the theme of Vigilance Awareness Week were issued in leading newspapers - 02 at Delhi and 01 each at Varanasi, Dehradun, Lucknow, Patna, Bhubaneshwar, Raipur, Hyderabad and Mumbai, requesting the public to take pledge on the commission's website. Apart from these, Gram Sabhas were organized in rural &Â semi-rural areas with various awareness programme like educational film and Nukkad Natak on anti-corruption activities while public seminars/ workshops were held in the urban areas.
During the week, a lecture cum interactive session by CVC was organized on 31st Oct, 2017 at New Delhi for your Company Management Team. The function was attended by CMD, CVO, Directors and around 100 senior executives of your Company. An e-magazine in pictorial format has also been released by Mumbai Region of your Company, capturing various events/ activities during the week. At Varanasi, about 150 numbers of banners were fixed at different locations of the city including airport and different Ghats. Banners were also displayed during the Ganga Aarti in the evening. Walkathon were organized by involving different local schools, Traffic Police and Heritage Hospital Varanasi, besides conducting events (debates, quiz, essay competition etc.,) in 222 schools &Â 96 colleges.
For your Company employees at Projects and Regional Headquarters, different competitions like Essay &Â Slogan competitions, debate, painting competitions were also organized across whole Company. Besides for Stakeholders and Business partners, vendor meet was organized at all your Company stations.
21. Â Â Â REDRESSAL OF PUBLIC GRIEVANCES
Your Company is committed for resolution of public grievance in efficient and time bound manner. ED (Human Resources) has been designated as Director (Grievance) to facilitate earliest resolution of public grievances received from President Secretariat, Prime Minister's Office, Ministry of Power etc.
In order to facilitate resolution of grievances in transparent and time bound manner, Department of Administrative Reforms &Â Public Grievances, Department of Personnel &Â Training, Government of India has initiated web-based monitoring system at www.pgportal.gov.in.
As per directions of GOI, public grievances are to be resolved within two months time. If it is not possible to resolve the same within two months period, an interim reply is to be given. Your Company is making all efforts to resolve grievances in above time frame.
22. Â Â Â RIGHT TO INFORMATION
Your Company has implemented Right to Information Act, 2005 in order to provide information to citizens and to maintain accountability and transparency. The Company has put RTI manual on its website for access to all citizens of India and has designated a Central Public Information Officer (CPIO), an Appellate Authority and APIOs at all sites and offices of the Company.
During 2017-18, 1,550 applications were received under the RTI Act, 2005 out of which 1,475 applications were replied to, till 31.03.2018.
23. Â Â Â USING INFORMATION AND COMMUNICATION TECHNOLOGY FOR PRODUCTIVITY ENHANCEMENT
The Information Technology in your Company is not onlya service provider but also being used as a key business driver. Most of the business processes in the Company have been IT enabled. Since 2008, your Company has implemented Enterprise Resource Planning (ERP) application to integrate all its business functions to improve information availability, transparency and decision making. PI data system has been implemented to capture, display and analyze the plant performance parameters on real time basis which is helping the operation and maintenance of our power plants. Non-ERP web based applications have been developed in balance areas such as Engineering Drawings approval, Quality Control Management, Hospital Management, Labour Management, Transit Camp Management, RTI, Security Control etc.
Your Companyâs' plants and Offices across India, are connected to Corporate Office and main Data-Center (DC) through 2x12 mbps MPLS links to facilitate seamless communication. The DC and DR (Disaster Recovery) site is connected with 156 mbps MPLS links for data backup. The progress of ongoing projects and issues of the running power stations are discussed regularly over high definition Video Conferencing system at Project Monitoring Center of Corporate Office.
To further leverage IT in your Company, an IT Strategy has been finalized. The IT Strategy aims to achieve 100% Paperless Office, Data Analytics for decision making, induction of new technology such as IIOT, AI, Machine learning etc. over next 2 years.
Some of the highlights of the progress in IT/ERP area during the year 2017-18 are as follows:
- Â Â Â Project PRADIP (Proactive Digital Initiative to become Paperless) - Your Company has taken initiative for 100% Paperless Office. The Project PRADIP aims to create a central data repository for your Company with best record management and searchable features. All the approval processes shall be made paperless. The e-Office module shall enable employees to do day-to-day office works in digital mode. It will also provide collaboration and knowledge management platforms. The PO for the project was issued in Nov'2017 and work for the same is in full swing.
- Â Â Â ERP - A number of new modules were introduced in ERP. Coal sale, Energy Billing for Solar and Wind energy, OLA Travel Booking etc. were added in 2017-18. GST was implemented in line with GOI guideline. e-procurement platform was shifted from SRM to GePNIC.
- Â Â Â e-Waste disposal - Firm guidelines were issued for disposal of e-Waste in your Company. As of 31.03.18 all Stations, Plants and Offices of your Company were declared e-Waste free after successful disposal of e-Wastes.
- Â Â Â Mail and Messaging Services - The mail and messaging services were upgraded. All users were provided with min. 5GB of mail box size. DR set up for mailing system was commissioned.
- Â Â Â Security - No major security breach was observed during the year 2017-18. A 24x7 Security Operation Center(SOC) is in operation where round the clock monitoring of all external and internal data traffic is being analyzed with latest tools monitored through SOC and latest threat management tools are being applied to prevent any cyber-attack or data theft. Timely communication being sent to all users based on threat perception. The IT security Audit for plants have been completed. ISO 27001 certification was obtained for DR set up.
- Â Â Â Mobile Apps - SAMVAAD mobile app was launched to provide all Corporate news to employees instantaneously. The SAMPARK mobile app gives information on all your Company employees.
- Â Â Â CLIMS (Contract Labour Information Management System)- Biometric labour attendance system was introduced in your Company plants. This is facilitating not only for labour payments but also in calculating the PF and other retrenchment benefits to labour besides improving security.
24. GROUP COMPANIES : SUBSIDIARIES AND JOINT VENTURES
Your Company has currently 6 subsidiary companies (including Nabinagar Power Generating Company Private Limited which has become a wholly-owned subsidiary company upon acquisition of stake of BSPGCL in NPGCL) and 18 joint venture companies for undertaking specific business activities.
Besides 18 joint venture companies detail of which is elsewhere in this Report, NTPC-SCCL Global Ventures Private Limited is being wound up voluntarily. In view of lack of suitable commercially viable opportunities for thermal coal, your Company has decided to exit from International Coal Ventures Private Limited.
A statement containing the salient feature of the financial statement of your Company's Subsidiaries, Associate Companies and Joint Ventures as per first proviso of section 129(3) of the Companies Act, 2013 is included in the consolidated financial statements.
25. INFORMATION PURSUANT TO STATUTORY AND OTHER REQUIREMENTS
Information required to be furnished as per the Companies Act, 2013 and as per SEBI (Listing Obligations &Â Disclosure Requirements) Regulations, 2015 are as under:
25.1 Â Â Â Statutory Auditors
The Statutory Auditors of your Company are appointed by the Comptroller &Â Auditor General of India. Joint Statutory Auditors for the financial year 2017-18 were (i) M/s T R Chadha &Â Co LLP, Chartered Accountants, New Delhi (ii) M/s PSD &Â Associates, Chartered Accountants, New Delhi, (iii) M/s Sagar &Â Associates, Chartered Accountants, Hyderabad, (iv) M/s Kalani &Â Co., Chartered Accountants, Jaipur, (v) M/s P A &Â Associates, Chartered Accountants, Bhubaneshwar,
(vi) M/s S.K. Kapoor &Â Co., Chartered Accountants, Kanpur and (vii) M/s B M Chatrath &Â Co LLP, Chartered Accountants, Kolkata.
The appointment of the Statutory Auditors for the financial year 2018-19 has been made by the Comptroller &Â Auditor General of India.
25.2 Â Â Â Management comments on Statutory Auditors' Report
The Statutory Auditors of the Company have given an un-qualified report on the accounts of the Company for the financial year 2017-18. However, they have drawn attention under âEmphasis of Matter' to Note No. 36 (a) &Â (b) regarding billing &Â recognition of sales on provisional basis and measurement of GCV of coal on âas received' basis measured on wagon top at the unloading point in respect of most of the stations pending disposal of petition by CERC and ratification by Hon'ble Delhi High Court and related matters as mentioned in the said note. They have also drawn attention under âEmphasis of Matter' to Note No. 47 in respect of a Company's project where the order of NGT has been stayed by the Hon'ble Supreme Court of India and the matter is sub-judice.
The issues have been adequately explained in the respective Notes referred to by the Auditors.
25.3 Â Â Â Review of accounts by Comptroller &Â Auditor General of India (C&AG)
The Comptroller &Â Auditor General of India, through letter dated 29.06.2018, has given âNIL' Comments on the Standalone Financial Statements of your Company for the year ended 31st March 2018 after conducting supplementary audit under Section 143 (6) (a) of the Companies Act, 2013.
The Comptroller &Â Auditor General of India, through letter dated 29.06.2018, has also given âNIL' Comments on the Consolidated Financial Statements of your Company for the year ended 31st March 2018 after conducting supplementary audit under Section 143 (6) (a) read with Section 129 (4) of the Companies Act, 2013.
As advised by the Office of the Comptroller &Â Auditor General of India (C&AG), the comments of C&AG for both the stand-alone and consolidated financial statements of your Company for the year ended 31st March 2018 are being placed with the report of Statutory Auditors of your Company elsewhere in this Annual Report.
25.4 Â Â Â COST AUDIT
As prescribed under the Companies (Cost Records and Audit) Rules, 2014, the Cost Accounting records are being maintained by all stations of your Company.
The firms of Cost Accountants appointed under Section 148(3) of the Companies Act, 2013 for the financial year 2017-18 were (i) M/s R M Bansal &Â Co., Cost Accountants, Kanpur, (ii) M/s ABK &Â Associates, Cost Accountants, Mumbai, (iii) Dhananjay V Joshi &Â Associates, Cost Accountants, Pune, (iv) M/s DGM &Â Associates, Cost Accountants, Kolkata, (v) M/s Tanmaya
S Pradhan &Â Co., Cost Accountants, Sambalpur,
(vi) Â Â Â M/s K L Jaisingh &Â Co., Cost Accountants, Noida and
(vii) Â Â Â M/s Niran &Â Co., Cost Accountants, Bhubaneshwar.
The due date for filing consolidated Cost Audit Report in XBRL format for the financial year ended March 31, 2017 was September 30, 2017 and the consolidated Cost Audit Report for your Company was filed with the Central Government on August 25, 2017.
The Cost Audit Report for the financial year ended March 31, 2018 shall be filed within the prescribed time period under the Companies (Cost Records &Â Audit) Rules, 2014.
25.5 Â Â Â Exchange Risk Management
Your Company is exposed to foreign exchange risk in respect of contracts denominated in foreign currency for purchase of plant and machinery, spares and fuel for its projects/ stations and foreign currency loans.
During financial year 2017-18, your Company has not entered into any derivative contract in respect of foreign currency loans exposure.
25.6 Â Â Â Performance Evaluation of the Directors and the Board
Ministry of Corporate Affairs (MCA), through General Circular dated 5th June, 2015, has exempted Government Companies from the provisions of Section 178 (2) of the Companies Act, 2013 which requires performance evaluation of every director by the Nomination &Â Remuneration Committee. The aforesaid circular of MCA further exempted listed Govt. Companies from provisions of Section 134 (3) (p) of the Companies Act, 2013 which requires mentioning the manner of formal evaluation of its own performance by the Board and that of its Committees and individual Director in Board's Report, if directors are evaluated by the Ministry or Department of the Central Government which is administratively in charge of the company, or, as the case may be, the State Government as per its own evaluation methodology.
Now, MCA, through Notification dated 05.07.2017, has amended Schedule IV to the Companies Act, 2013 with respect to performance evaluation of directors of the Government Companies that in case of matters of performance evaluation are specified by the concerned Ministries or Departments of the Central Government or as the case may be, the State Governments and such requirements are complied with by the Government companies, such provisions of Schedule IV are exempt for the Government Companies. In this regard, Deptt. of Public Enterprises (DPE) has already laid down a mechanism for performance appraisal of all functional directors. Your Company enters into Memorandum of Understanding (MOU) with Government of India each year, demarcating key performance parameters for the Company. The performance of the Company and Board of Directors are evaluated by the Department of Public Enterprises vis-a-vis MOU entered into with the Government of India.
Similar exemption has been requested from SEBI under the SEBI LODR, which is under consideration.
25.7 Â Â Â Secretarial Audit
The Board has appointed M/s J.K. Gupta &Â Associates, Company Secretaries, to conduct Secretarial Audit for the financial year 2017-18. The Secretarial Audit Report for the financial year ended March 31, 2018 is annexed here with marked as Annexure XI to this Report.
The Managements' Comments on Secretarial Audit Report are as under:
Observations |
Management's Comments |
Compliance of Regulation 17(10) &Â 25(4) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has not carried out the performance evaluation of the Directors. |
Refer Para 25.6 |
25.8 Â Â Â Particulars of contracts or arrangements with related parties
During the period under review, your Company had not entered into any material transaction with any of its related parties. The Company's major related party transactions are generally with its subsidiaries and associates. All related party transactions were in the ordinary course of business and were negotiated on an arm's length basis except with Utility Powertech Limited, which are covered under the disclosure of Related Party Transactions in Form AOC-2 (Annexure- IX) as required under Section 134(3) (h) of the Companies Act, 2013. They were intended to further enhance your Company's interests.
Web-links for Policy on Materiality of Related Party Transactions and also on Dealing with Related Party Transactions have been provided in the Report on Corporate Governance, which forms part of the Annual Report.
25.9 Â Â Â Significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and company's operations in future: NIL
25.10 Â Â Â Adequacy of internal financial controls with reference to the financial reporting: The Company has in place adequate internal financial controls with reference to financial reporting. During the year, such controls were tested and no reportable material weakness in the design or operation was observed.
25.11 Â Â Â Loans and Investments
Details of Investments covered under the provisions of Section 186 of the Companies Act, 2013 forms part of financial statement, attached as a separate section in the Annual Report for FY 2017-18.
Your Company had granted loans to its subsidiary namely, Kanti Bijlee Utpadan Nigam Limited (KBUNL) and Joint Venture Company namely National High Power Test Laboratory Private Limited (NHPTL) during 2017-18 covered under Section 185 and 186 of the Companies Act, 2013. The details of loans granted to KBUNL and NHPTL is given in Note - 60 of Standalone Financial Statements for 2017-18.
25.12 Â Â Â Prevention, Prohibition and Redressal of Sexual Harassment of Women at Workplace
The Company has in place a Policy on Prevention, Prohibition and Redressal of Sexual Harassment of Women at Workplace in line with the requirements of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition &Â Redressal) Act, 2013. Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy.
These ICCs have been constituted at all Projects/ stations of your Company. Every three years, the constitution of these committees is changed and new members are nominated.
No complaint of sexual harassment was received by the ICC during the year 2017-18.
25.13 Â Â Â Procurement from MSEs
The Government of India has notified a Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012. The total procurement made from MSEs (including MSEs owned by SC/ST entrepreneurs) during the year 2017-18 was Rs, 1160.62* crore, which was 28.69% of total annual procurement of Rs, 4045.64* crore against target of 20% of total procurement made by your Company.
The total procurement made from MSEs owned by SC/ ST entrepreneurs during the year 2017-18 was Rs, 17.09* crore, which was 0.42% against the target of 4% of total procurement value.
*It excludes Primary fuel, Secondary fuel, Steel &Â Cement, the Project procurement including R&M packages and procurement from OEM, OES &Â PAC sources.
Your Company organized 21 vendor development programmes for MSEs across the Company, out of which 6 vendor development programmes were exclusively organized for SC/ST MSE entrepreneurs. Annual procurement plan for 2018-19 from MSEs is uploaded on www.ntpc.co.in.
25.14 Â Â Â Particulars of Employees
As per provisions of Section 197(12) of the Companies Act, 2013 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, every listed company is required to disclose the ratio of the remuneration of each director to the median employee's remuneration and details of employees receiving remuneration exceeding limits as prescribed from time to time in the Directors' Report.
However, as per notification dated 5th June, 2015 issued by the Ministry of Corporate Affairs, Government Companies are exempted from complying with provisions of Section 197 of the Companies Act, 2013. Therefore, such particulars have not been included as part of Directors' Report.
25.15 Â Â Â Extract of Annual Return:
Extract of Annual Return of the Company is annexed herewith as Annexure VI to this Report.
25.16 Â Â Â Information on Number of Meetings of the Board held during the year, composition of committees of the Board and their meetings held during the year, establishment of vigil mechanism/ whistle blower policy and web-links for familiarization/ training policy of directors, Policy on Materiality of Related Party Transactions and also on Dealing with Related Party Transactions and Policy for determining âMaterial' Subsidiaries have been provided in the Report on Corporate Governance, which forms part of the Directors Report at Annex-II.
25.17 Â Â Â Para on development of risk management policy including therein the elements of risks are given elsewhere in the Annual Report.
25.18 Â Â Â The Company has complied with the applicable Secretarial Standards.
25.19 Â Â Â No disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review:
1. Â Â Â Issue of equity shares with differential rights as to dividend, voting or otherwise.
2. Â Â Â Issue of shares (including sweat equity shares) to employees of the Company under any scheme.
25.20 Â Â Â The particulars of annexure forming part of this report areas under:
Particulars |
Annexure |
Management Discussion &Â Analysis |
I |
Report on Corporate Governance |
II |
Information on conservation of energy, technology absorption and foreign exchange earnings and outgo |
III |
Statistical information on persons belonging to Scheduled Caste / Scheduled Tribe categories |
IV |
Information on Differently Abled Persons |
V |
Extract of Annual Return |
VI |
Annual Report on CSR Activities |
VII |
Project Wise Ash Produced and Utilized |
VIII |
Disclosure of Related Party Transactions in Form AOC-2 |
IX |
Business Responsibility Report for the year 2017-18 |
X |
Secretarial Audit Report in Form MR-3 |
XI |
26. BOARD OF DIRECTORS &Â KEY MANAGERIAL PERSONNEL
On attaining the age of superannuation, Shri A.K. Jha ceased to be Director (Technical) of the Company w.e.f.31.07.2017, Shri S.C. Pandey ceased to be Director (Projects) of the Company w.e.f. 31.08.2017 and Shri K.K. Sharma ceased to be Director (Operations) of the Company w.e.f. 31.10.2017.
Shri Rajesh Jain, Independent Director tendered his resignation from the Directorship w.e.f. 10.10.2017.
Shri M.P. Singh, Shri P.K. Deb, Shri Shashi Shekhar, Shri Subhash Joshi and Shri Vinod Kumar were appointed as Independent Directors of the Company w.e.f. 24.10.2017.
Dr. Pradeep Kumar, JS&FA, Ministry of Power ceased to be Government Nominee Director w.e.f. 31.07.2017.
Shri Susanta Kumar Roy, Executive Director had taken over the charge as Director (Projects) of the Company w.e.f. 19.01.2018.
Shri Prasant Kumar Mohapatra, Executive Director had taken over the charge as Director (Technical) of the Company w.e.f. 31.01.2018.
Shri Prakash Tiwari, Executive Director had taken over the charge as Director (Operations) of the Company w.e.f. 31.01.2018.
Shri K. Sreekant, Director (Finance), Power Grid Corporation of India Limited had been entrusted with the additional charge of the post of Director (Finance) of your Company w.e.f. 19.03.2018 for a period of six months or till the appointment of a regular incumbent or until further orders of the Ministry of Power, whichever is the earliest.
Shri Sudhir Arya, Executive Director was appointed as the Chief Financial Officer of the Company w.e.f. 29.12.2017.
Shri Vivek Kumar Dewangan, JS&FA, Ministry of Power had been appointed as Government Nominee Director w.e.f. 28.04.2018.
Shri Aniruddha Kumar, JS, Ministry of Power ceased to be Govt. Nominee Director w.e.f. 30.07.2018.
Dr. K. P. Kylasanatha Pillay and Dr. Bhim Singh were appointed as Independent Director w.e.f. 30.07.2018.
Shri K. P. Gupta ceased to be ED (Finance &Â Law) and (Company Secretary) w.e.f. 31.07.2018 consequent upon his superannuation.
Ms. Nandini Sarkar, General Manager was appointed as Company Secretary &Â Compliance Officer w.e.f. 01.08.2018.
Ms. Archana Agrawal, JS (Thermal), Ministry of Power had been appointed as Government Nominee Director w.e.f. 07.08.2018.
The Board wishes to place on record its deep appreciation for the valuable services rendered by Shri A.K. Jha, Shri S.C. Pandey, Shri K.K. Sharma, Shri Rajesh Jain, Dr. Pradeep Kumar, Shri Aniruddha Kumar and Shri K. P. Gupta during their association with the Company.
I n accordance with Section 152 of the Companies Act, 2013 and the provisions of the Articles of Association of the Company, Shri S. Roy, Director, shall retire by rotation at the Annual General Meeting of your Company and, being eligible, offers himself for re-appointment.
27. DIRECTORS' RESPONSIBILITY STATEMENT
As required under Section 134 (5) of the Companies Act, 2013, your Directors confirm that:
1. Â Â Â in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
2. Â Â Â the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year 2017-18 and of the profit of the Company for that period;
3. Â Â Â the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;
4. Â Â Â the Directors had prepared the Annual Accounts on a going concern basis;
5. Â Â Â the Directors, had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and
6. Â Â Â the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
28. ACKNOWLEDGEMENT
The Directors of your Company acknowledge with deep sense of appreciation, the co-operation received from the Government of India, particularly the Prime Minister's Office, Ministry of Power, Ministry of New
& Renewable Energy, Ministry of Finance, Ministry of Environment, Forests &Â Climate Change, Ministry of Coal, Ministry of Petroleum &Â Natural Gas, Ministry of Railways, Department of Public Enterprises, Central Electricity Authority, Central Electricity Regulatory Commission, Comptroller &Â Auditor General of India, Appellate Tribunal for Electricity, State Governments, Regional Power Committees, State Utilities and Office of the Attorney General of India.
The Directors of your Company also convey their gratitude to the shareholders, various international and Indian Banks and Financial Institutions for the confidence reposed by them in the Company.
The Board also appreciates the contribution of contractors, vendors and consultants in the implementation of various projects of the Company.
We also acknowledge the constructive suggestions received from the Office of Comptroller &Â Auditor General of India and Statutory Auditors.
We wish to place on record our appreciation for the untiring efforts and contributions made by the employees at all levels to ensure that the Company continues to grow and excel.
                                                                   For and on behalf of the Board of Directors
                                                                   (Gurdeep Singh)
                                                                    Chairman & Managing Director
Place: New Delhi
Date: 8th August, 2018
Â
Mar 31, 2017
The Directors are pleased to present the 41st Annual Report on the business and operations of the Company along with audited financial statements for the year ended March 31, 2017.
Financial Year 2016-17 had been yet another year of achievements for your Company. With the addition of 3,845 MW capacity (including 325 MW through Subsidiary Companies) during the year, total installed capacity of your Company (including subsidiaries & JVs) as on 31.03.2017 was 50,498 MW.
With the commissioning of 660 MW of Solapur Thermal, 245 MW of Mandsaur Solar, 18 MW of Rojmal Wind and 250 MW of BRBCL (subsidiary of NTPC) after 31.03.2017, group capacity of your Company has become 51,671 as on 31.07.2017.
Major highlights for the year 2016-17 are:
- Power projects of 3,845 MW were commissioned.
- Declared 2,190 MW Power Projects on commercial generation including 510 MW of Solar Projects.
- PLF of 78.59% as against all India PLF of 59.88% with two stations of your Company recording more than 90% PLF. Three stations of your Company achieved top three position and 11 stations (including JV) are in top 25 stations of the country in terms of PLF.
- Excellent MOU rating by Government of India for the year 2015-16.
- Group Capital Expenditure (CAPEX) including CAPEX of JV/subsidiaries of NTPC for the year 2016-17 was Rs.33,991 crore.
- 100% realization of current bills from customers.
- Revenue from operations was Rs.78,273.44 crore and total revenue was Rs.79,342.30 crore. Net Profit after Tax (PAT) was Rs.9,385.26 crore.
- Dividend of Rs.4.78 per share comprising interim dividend of Rs.2.61 per equity share paid in February 2017 and recommended final dividend of Rs.2.17 per equity share for the year 2016-17, subject to approval of the shareholders.
- Cash contribution of Rs.5,998.36 crore to Government of India's exchequer through dividend, dividend distribution tax and income tax in the financial year 2016-17.
- Market capitalization of Rs.1,36,874.64 crore as on 31.03.2017.
- Planted approx. 1 crore trees during 2016-17 to mitigate the GHG emissions arising out of plant operations, thereby bringing total to about 3.2 crore planted trees till end of 31.03.2017.
- About 7.15 crore fly ash bricks produced by fly ash brick plants of your Company's stations, which are being utilised in plant and township construction works.
- Honoured with Business Standard 'Star PSU Award'.
- Bestowed with India Pride Award 2016-17 for best performance in the Power Sector.
- Adjudged 4th among the Asian electric utilities in 2016 rankings as per Forbes Global 2000.
- Awarded with Dun & Bradstreet Corporate Awards 2016 for best performing Company in India in Power Sector.
- Bagged Golden Peacock Award for Excellence in Training from Institute of Directors for the year 2016.
- NTPC has been given SCOPE Award for RTI Act 2005 Compliance at SCOPE Meritorious Awards.
- NTPC conferred Good Corporate Citizen Award instituted by PHD Chamber of Commerce, New Delhi.
You will appreciate the fact that the company ecorded growth and excellent performance despite numerous challenges before the sector.
1. FINANCIAL RESULTS (STAND ALONE)
Particulars 2016-17 2015-16
Rs. Crore US $ Mn
Appropriations: 2016-17 2015-16
Rs. Crore US $ Mn* Rs. Crore US $ Mn*
Transfer to bonds/ debentures redemption reserve 1,667.08 253.63 1,284.13 195.36
Transfer to general reserve 4,500.00 684.62 6,000.00 912.83
Dividend paid 3,595.03 546.94 2,762.24 420.24
Tax on dividend paid 727.79 110.72 562.32 85.55
1US $= '65.73 as on March 31, 2017
2. DIVIDEND
Interim and Final Dividend:
Your company paid interim dividend of Rs. 2.61 per equity share in February 2017 and the Board of your Company have recommended a final dividend of Rs. 2.17 per equity share for the year 2016-17. With this, the total dividend for the year is Rs. 4.78 per equity share of Rs. 10/- each. In the year 201516, the total dividend paid was Rs. 3.35 per equity share of Rs. 10/- each.
The dividend payout is 42% and the total dividend payout including dividend tax is 50.54% of profit after tax.
The final dividend shall be paid after your approval at the Annual General Meeting.
The dividend has been recommended in accordance with your Company's Dividend Distribution Policy which is available at the website link
Muzaffarpur Thermal Power Station, Stage-II, Unit#1 (KBUNL) 195 18.03.2017
Total (III) 770
Total Capacity declared 2,190
commercial during
2016-17 (I)+(II)+(III)
* COD- Commercial Operation Date
**as per PTPS Transfer Scheme, 2015 dated 01.04.2016, Government of Jharkhand has transferred specified assets of Patratu Thermal Power Station to Patratu Vidyut Utpadan Nigam Limited (subsidiary of NTPC)
As on 31.03.2017, the Commercial Capacity of NTPC stood at 40,522 MW and NTPC Group's Commercial Capacity stood at 47,293 MW.
In 2017-18, 195 MW of Muzaffarpur Thermal Power Station (subsidiary of NTPC i.e. KBUNL) and 800 MW of Kudgi Super Thermal Project had been declared commercial making commercial capacity of NTPC Group as on 31.07.2017 as 48,288 MW:
Owned by NTPC MW
Coal based projects 35,885
Gas based projects 4,017
Renewable Energy Projects 620
Hydro Projects 800
Sub-total 41,322
Joint Ventures & Subsidiaries
Coal based projects 4,999
Gas based projects 1,967
Sub-total 6,966
Total 48,288
4.4 Tariff Related Matters:
In the year 2016-17, your Company had been able to reduce the Energy Charge Rate significantly through various measures such as reduced consumption of imported coal, rationalization of coal transportation across its various stations.
Hearings for determination of tariff for the 2014-19 period for various stations were completed and tariff orders were issued for most of the stations.
4.5 Strengthening Customer Relationship:
Your Company's Core Values - ICOMIT contains 'Customer Focus' as one of the key elements. In line with this, your Company has taken up several initiatives targeted towards the external Customers. Customer Relationship Management (CRM) and Customer Satisfaction Index (CSI) are some of the most important parts of these initiatives.
As part of the CRM, your Company has been implementing several structured activities with the objective of sharing its experiences and best practices with the customers, capturing their feedbacks and expectations and addressing their issues. Some of these activities included providing various support services to the beneficiaries, which involves identifying potential areas of cooperation and sharing of each others' best practices. In the financial year 2016-17, a total of 61 such programmes have been conducted for the customers on the basis of requirement expressed by them.
Your Company offers training programs to the representatives of beneficiary companies at Power Management Institute (PMI), the apex training institute of Company on free of cost basis. In 2016-17, 134 participants from various customer organizations attended training in 71 programs.
Your Company has also put in place Customer Satisfaction Index (CSI) survey scheme, to gather customer's feedbacks through a survey and respond to their requirements. This CSI survey was conducted in 2016-17.
4.6 UDAY Scheme:
As part of the UDAY Scheme, your Company has been entrusted with the responsibility to help and guide the state generating companies to improve their operational efficiency and reduce the cost of generation. With this objective, workshops were conducted by your Company with representatives of Generating Companies of various states. Multidisciplinary teams from your Company have also visited power stations at 12 states and suggested measures to improve efficiency in these plants.
4.7 Power Trading in Power Exchange:
In line with provisions of amended Tariff Policy, your Company has commenced trading of the UnRequisitioned Surplus (URS) power in the Power Exchange through its trading arm NTPC Vidyut Vyapar Nigam Limited (wholly-owned subsidiary) from June 2016. As per the amended Tariff Policy, gains from these transactions have to be shared in the ratio of 50:50 with the beneficiaries whose URS power is sold.
5. INSTALLED CAPACITY
During the year 2016-17, your Company added 3,845 MW to its installed capacity as per details given below:
Project/ unit installed Capacity (MW)
NTPC owned
Coal Based Power Projects
Kudgi, Unit#1 and 2 1,600
Bongaigaon, Unit#2 250
Mouda, Unit#4 660
Unchahar, Unit#6 500
Total NTPC owned 3,010
Solar Based Power Projects
Bhadla 260
Ananthapur Solar 250
Total NTPC Owned 510
under Subsidiaries (Coal Based Power Projects)
Patratu (subsidiary of NTPC in JV with JBVNL) 325
Total by Subsidiaries 325
Total Addition during FY 2016-17 3,845
With above capacity addition during 2016-17, capacity added in 12th Plan Period was 13,395 MW.
The total installed capacity of NTPC Group as on 31.03.2017 has become 50,498 MW (46,653 MW as on 31.03.2016) as tabulated below:
Owned by NTPC MW
Coal based projects 38,095
Gas based projects 4,017
Renewable Energy Projects 620
Hydro Projects 800
Sub-total 43,532
Joint Ventures & Subsidiaries
Coal based projects 4,999
Gas based projects 1,967
Sub-total 6,966
Total 50,498
With the commissioning of 660 MW of Solapur Thermal, 245 MW of Mandsaur Solar, 18 MW of Rojmal Wind and 250 MW of BRBCL (subsidiary of your Company) after 31.03.2017, installed capacity of your Company has become 51,671 MW as on 31.07.2017.
6. CORPORATE PLAN 2032
Due to changes in the business environment, regulatory and environment norms and emergence of renewable energy combined with technological breakthroughs, your Company has reviewed and has prepared its Long Term Corporate Plan to set the goals & targets for the period up to 2032. Through this Corporate Plan, the Company has adopted the vision to be Âthe world's leading power company, energizing India's growth.Â
Commensurate with India's growth aspirations, your company has embarked upon an ambitious plan to attain a total installed capacity of 130 GW and annual generation of more than 600 BU by 2032. The capacity will have a diversified fuel mix comprising 65.4% coal, 4.6% gas, 1.5% nuclear and 28.5% Renewable Energy Sources (RES) including hydro. Therefore, by 2032, non-fossil fuel based generation capacity shall make up nearly 30% of NTPC's portfolio.
Besides pursuing its strategic targets, your company is also likely to replace its old & inefficient units with technologically advanced, efficient and environmentally compliant units by 2032, in a phased manner.
Your company has been allotted 10 coal blocks with a peak production capacity of more than 100 MTPA. With these coal blocks, the company envisages being one of the largest captive coal mining companies in the Country fulfilling about one third of its own coal requirement by 2030.
Your company would continue pursuing the power trading business in India as well as with the neighboring countries increasing its market share in the region through its wholly-owned subsidiary 'NTPC Vidyut Vyapar Nigam Ltd'.
Going forward, your company envisages enhancing its current presence in the ancillary and consultancy services. It is also planning to make a foray into E-mobility and battery storage, supported by research & development and collaboration with OEMs, research institutes etc.
7 CAPACITY ADDITION PROGRAMME
7.1 Projects under Implementation
In addition to furthering capacity addition through Coal based power projects, your Company has been pursuing enhancement of its power generation portfolio through Hydro and Renewable Energy projects.
Your Company's various projects having aggregate capacity of 19,656 MW (including 4,090 MW being undertaken by Joint Venture and subsidiary companies) are under implementation at 22 locations across length and breadth of the country as on 31.07.2017. This includes 18,800 MW through Coal based projects, 45 MW through Renewable Energy projects including Small Hydro project of 8 MW and 811 MW through Hydro capacity. Apart from these projects, your company is also implementing 1,320 MW coal based power projects in joint venture with BPDB at Bangladesh. The details of such projects are as under:
Ongoing Projects as on 31.07.2017
Capacity (MW)
I. NTPC owned:
A. Coal Based Projects
1. Bongaigaon, Assam 250
2. Barh-I, Bihar 1,980
3. Lara-I, Chattisgarh 1,600
4. North Karanpura, Jharkhand 1,980
5. Kudgi-I, Karnataka 800
6. Gadarwara-I, Madhya Pradesh 1,600
7. Solapur, Maharashtra 660
8. Darlipalli-I, Odisha 1,600
9. Tanda-II, Uttar Pradesh 1,320
10. Khargone, Madhya Pradesh 1,320
11. Telangana Phase-I, Telangana 1,600
Sub Total (A) 14,710
B. Hydro Electric Power Projects (HEPP)
12. Tapovan Vishnugad, Uttarakhand 520
13. Lata Tapovan, Uttarakhand@ 171
14. Rammam Hydro, West Bengal 120
Sub Total (B) 811
C. Renewable Projects (Solar/Small Hydro)
15. Singrauli Small Hydro 8
16. Mandsaur SPV, Madhya Pradesh 5
17. Rojmal Wind 32
Sub Total (C) 45
Total I (A)+(B)+(C) 15,566
II Projects under JVs & Subsidiaries
Coal Based Projects
18. Nabinagar-JV with Railways (BRBCL), Bihar 500
19. Nabinagar, JV with BSPGCL (NPGCL), Bihar 1,980
20. Meja, JV with UPRVUNL (MUNPL), Uttar Pradesh 1,320
21. Rourkela, JV with SAIL (NSPCL), Odisha 250
22. Durgapur, JV with SAIL (NSPCL), West Bengal 40
23. Khulna, JV with BPDB (BIFPCL), Bangladesh 1,320
Total II 5,410
III Total On-Going Projects as on 31.07.2017 (I)+(II) 20,976
@Work of Lata Tapovan HEPP stopped since 07.05.2014 as per orders of the Hon'ble Supreme Court.
7.2 New Projects
Your Company awarded 1st Wind power project at Rojmal (50 MW) during the Financial Year 2016-17. The tender for Flue Gas Desulphurisation (FGD) for Telengana Project is under bidding stage.
As on 14.07.2017, your Company has projects for 3,720 MW Thermal capacity (Patratu 2,400 MW & Talcher-III 1,320 MW) and 1,276.5 MW Renewable capacity (Pavagada, Karnataka 1,000 MW Solar PV; Andaman 25 MW Solar PV with Battery backup; Kudgi Roof Top Solar PV of 1.5 MW & 250 MW Wind Project) under bidding.
7.3 New Technology & Initiatives
Your company has laid major stress on efficient utilization of resources and use of technological advancements for improving energy efficiency.
With emphasis on efficiency of electricity generation, your Company has adopted ultra super critical technology by improving the steam parameters for North Karanpura (3X660 MW) to 260 kg/ cm2, 593oC/ 593° C. For Khargone (2X660 MW) and Telangana (2X800 MW) steam parameter are 270 kg/ cm2, 600oC/ 600oC. Plant efficiency of these units is expected to increase by around 8% over that of a conventional sub-critical 500 MW unit and 3% over conventional super critical units using similar coal.
For the first time in your Company, Air Cooled Condenser System has been adopted at North Karanpura STPP, which has led to a significant reduction in make-up water requirement for the project.
Your Company has gone ahead for utility slab grid interactive Battery Energy Storage System for solar plant output smoothening (intermittences due to closed effect) and energy time shift application at Port Blair, Andaman & Nicobar (A&N). This is your Company's contribution towards greening the Islands. Your Company is taking up solar projects of 25 MW capacity at Port Blair, A&N Islands. This is first large scale commercial project for critical application for sustainability of Solar project at A&N.
Pilot project for Biomass co-firing
Your company is planning to install biomass cofiring facility as a pilot project at its Dadri station to partially substitute the coal by carbon neutral crop residues obtained from agricultural fields in form of pellets/briquettes. This is intended to cut down carbon emissions and also to discourage crop residue burning by farmers after harvesting by adding economic value to the crop residue and providing extra income to farmers and employment in rural sector.
Hybrid solar thermal plant
Your Company has awarded a project for Solar Thermal Integration with the existing coal based unit at Dadri during the financial year 2016-17. The project is under construction and is expected to be commissioned this year. The expected peak electrical output contribution from the plant would be about 3.6 MW.
This shall result in coal savings of around 3,825 Tonnes/year and in CO2 emissions reduction of around 4,060 Tonnes/year.
Development of Advanced ultra Super Critical technology
Your Company has entered into an MOU with BHEL and Indira Gandhi Centre for Atomic Research (IGCAR) for indigenous development of advanced ultra super critical technology. This will have enhanced efficiency of around 46% and about 18% less CO2 emission per unit of power generation as compared to 500 MW sub-critical thermal power units. The program is targeted to deliver a plant having 800 MW unit with steam parameters of 310 kg/sq cm, 710° C/720o C. Phase-I (R&D phase-I) of the project is already approved by Government of India.
Environment Protection
Your Company, as pioneer in Environment monitoring, has already installed Ambient Air Quality Monitoring Systems (AAQMS) employing NOx, SOx, CO, SPM & RSPM analysers in 20 operating stations in 2009-10 and data is being made available to CPCB. Similarly, Continuous Emission Monitoring System (CEMS) employing NOx, SOx, CO & CO2 analysers at stack for flue gas have been installed recently in various operating stations. Your company has recently introduced analysers for Mercury monitoring for both AAQMS and CEMS.
Your Company is working to install additional air and water pollution control systems at various projects to comply with the applicable new environmental norms notified by MOEF&CC vide gazette notification dated 07.12.2015.
Your Company has already tendered (Under Lot-1A) on 30.06.2017 for installation of Flue Gas De-Sulphurisation System Package for 11 Projects of total 17,440 mW capacity in order to meet SO2 emission limits as per New Environmental Norms. Your Company has also tendered on 30.06.2017 for installation of Waste to Energy (WtE) System Package for 400 tpd capacity to be located at Badarpur, New Delhi.
7.3.1 Energy Conservation, Technology Absorption and Foreign Exchange Earnings and Outgo Details of conservation of energy, technology absorption and Foreign Exchange Earnings and Outgo in accordance with section 134(3)(m) of the Companies Act, 2013 read with Companies (Accounts) Rules, 2014 forms part of this report as Annex-III.
7.4 Project Management
Your Company has established state-of-the-art IT enabled Project Monitoring Centre (PMC) for facilitating fast track project implementation. PMC has advanced features like Web-based Milestone Monitoring System (Webmiles), Project Review and Internal Monitoring System (PRIMS), etc. PMC facilitates monitoring of key project milestones and also acts as decision support system for the management.
PMC is an integrated enterprise-wide collaborative system to facilitate consolidation of project related issues and their resolution. Features like SMS based information delivery; real time video capture, storage and retrieval facility and video conference facility are extensively utilized for project tracking, issues resolutions and management interventions. PMC has helped in providing effective coordination between the agencies and has provided enhanced/ efficient monitoring of the projects leading to better and faster project implementation.
7.5 Capacity addition through Subsidiaries and Joint Ventures (JVs)
Besides adding capacities on its own, your Company develops power projects through its subsidiaries and joint ventures, both in India and abroad.
The information of Indian Subsidiaries and JV Companies along with details of partners of joint ventures engaged in power generation is given below:
Name of Company JV Partner(s) Details
KBuNL Bihar State A subsidiary Company
(Kanti Bijlee Power in which your
Utpadan Generation company holds 65%
Nigam Ltd.) Company shares in joint venture
Limited with BSPGCL (erstwhile
(erstwhile BSEB), took over
BSEB) Muzaffarpur Thermal Power Station having 2 units of 110 MW each from BSEB. Both the units of Stage-I have been declared on commercial operation. Total generation in FY 2016-17 was 769.88 MU at 38.63 % PLF. The Company has also taken up expansion of the project by 2X195 MW units. Unit#3 of Stage-II was declared commercial on 18.03.2017 and Unit#4 of Stage-II was declared commercial on 01.07.2017.
BRBCL Ministry of A subsidiary of your
(Bhartiya Railways company in joint
Rail Bijlee venture with Ministry
Company of Railways with
Ltd.) equity contribution in the ratio of 74:26 respectively for setting up power project of 1000 MW (4X250 MW) capacity at Nabinagar in Bihar. Unit#1 of 250 MW was declared commercial on 15.01.2017 and Unit#2 was commissioned on 03.04.2017. Construction activities in other units are in progress.
NSPCL Steel A 50:50 Joint Venture
(NTPC-SAIL Authority Company between
Power Co. of India Ltd. your company and
Ltd.) (now (SAIL) SAIL, owns and
converted operates captive
into a Public power plants for
Limited SAIL at Durgapur (120
Company MW), Rourkela (120
from NTPC- MW) & Bhilai (74
SAIL Power MW) and Bhilai PP-III
Company (2X250 MW), which
Private is supplying power
Limited) to SAIL, Chhattisgarh, DNH and D&D. Its present installed capacity is 814 MW. NSPCL generated 5,981.91 MU at 83.89% PLF in FY 201617 with PAF of 96.68%. Trading of URS power started from 03.08.16 at IEX. Total 130.34 MU has been traded during the year. NSPCL has paid final dividend of Rs.10 Cr for FY 2015-16 and interim dividend of Rs.60 Cr for FY 2016-17 to NTPC. under Implementation-New Coal based Capacity at Rourkela PP-II Expansion (1 x 250 MW) & Durgapur PP-III (2 x 20 MW) is under construction. Solar Power Plants of 200 MW capacity at various plant locations of SAIL is also being pursued. Solar Power Plant of 50 MW capacity at Salem is being implemented in the first phase.
NTECL (NTPC Tamil Nadu Energy Co. Ltd.)Tamilnadu Generation and Distribution Corporation Limited (TANGEDCO) (erstwhile TNEB)A 50:50 JVC has commissioned 3x500 MW coal based power project at Vallur, Tamilnadu. All the units have been declared on commercial operation. Total generation of NTECL during FY 201617 was 9,211 MUs at 70.13% PLF. NTECL had made a profit of Rs.197.94 crore for FY 2016-17.
APCPL (Aravali Power Company Pvt. Ltd.) Indraprastha Power Generation Company Ltd. (IPGCL) and Haryana Power Generation Corporation Ltd. (HPGCL) This JVC is operating 3X500 MW coal based Indira Gandhi Super Thermal Power Project. NTPC, IPGCL and HPGCL have contributed equity in the ratio of 50:25:25. Total generation of APCPL during FY 201617 was 5,474 MU. APCPL has paid interim dividend of Rs.66.60 crore to NTPC for FY 2016-17.
munpl (Meja Urja Nigam Pvt. Ltd.) Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd. (UPRVUNL) A 50:50 JVC is implementing 1,320 MW (2X660 MW) coal based power project in the state of Uttar Pradesh. Construction activities are in progress.
NPGCL (Nabinagar Power Generating Company Pvt.Ltd.) Bihar State Power Generation Company Limited (erstwhile BSEB) A 50:50 JVC is setting up a 3x660 MW Coal based plant at Nabinagar. Construction activities are in progress.
RGPPL (Ratnagiri Gas and Power Pvt. Ltd.) GAIL, ICICI Bank, SBI, IDBI, Canara Bank and MSEB Holding Co. Ltd. Your company has a stake of 25.51%. Total 15 LNG Cargos were unloaded during FY 2016-17. PPAs have been signed by RGPPL with Indian Railways for supply of ~500 MW for 5 years w.e.f. 01.04.2017 and Gas Supply Agreements were signed with GAIL for supply of 1.75 MMSCMD of RLNG w.e.f. 01.04.2017 for 5 years. For the year 2016-17, gross generation was 4,560 MUs. Pursuant to approval by RGPPL Board for demerger of power & LNG Blocks into separate Companies, a scheme of demerger of its LNG Block into Konkan LNG Private Limited, in the Delhi High Court on 29.07.2016 for its approval. Last hearing was held on 29.06.2017. Final order from NCLT (before commencement of IBC Code, 2016, High Court was empowered to hear demerger petitions) is yet to come.
ASHVINI Nuclear Your company is having
(Anushakti Power a stake of 49%. The
Vidhyut Corporation company was formed
Nigam Ltd.) of India Ltd. for setting up nuclear
(NPCIL) power project(s). Department of Atomic Energy has permitted joint venture of two CPSEs to set up Nuclear Power Project, due to change in definition of Government Company under Atomic Energy (Amendment) Act, 2015. Currently, no activities are being taken up by the Company.
PVUNL Jharkhand PVUNL has been
(Patratu Bijli Vitran incorporated on
Vidyut Nigam Limited 15.10.2015 as a
Utpadan (JBVNL) subsidiary of your
Nigam company with 74%
Limited) stake in the Company and 26% of stake held by JBVNL to acquire, establish, operate, maintain, revive, refurbish, renovate and modernize the performing existing units of 325 MW and tie-lines, sub-stations and main power transmission lines connected therewith and setting up of the new units. Government of Jharkhand had issued the Notification dated 01.04.2016 for transfer of assets of Patratu Thermal Power Station to Patratu Vidyut Utpadan Nigam Limited. Keeping in view the high cost of generation, age of the units and difficulty in complying with the new environmental norms, operations of all existing units has been stopped w.e.f. 24.01.2017. Steps are being taken for decommissioning of these units. For expansion units (Phase-I 3X800 MW), application for environment clearance was submitted to MOEF on 09.06.2017. Further, Deed of Adherence was signed with Banhardi Coal Mine and bridge linkage was applied to Ministry of Coal.
Pan-Asian Asian Pan-Asian was
(Pan-Asian Development incorporated
Renewables Bank and to carry on the
Private Kyuden business of power
Limited) International generation through
Cooperation non-conventional/ renewable energy sources. Pan-Asian and Promoters made reasonable endeavours to identify and induct 4*1 Investor. However, the Board of Pan-Asian in its meeting, noted that since incorporation several efforts were made, but due to reasons beyond the control of the Board of Pan-Asian, the New Investor could not be inducted and business operations of the Company could not be started. It was then decided to voluntary wind-up the Company. Hon'ble High Court of Delhi, based on satisfaction accorded by the Official Liquidator, through its Order pronounced that the Pan-Asian is hereby wound up and dissolved with effect from the date of filing of the petition.
An MOU has been signed with NALCO on 16.12.2016 for revival of Gajmara Power Project and supply of power to NALCO for captive use. A joint technical task force has been constituted for finalization of detailed modalities.
7.6 Hydro Power
Your Company now has its footprints in renewable energy by developing hydro projects as detailed below:
A. Koldam HEPP (4x200 MW) is on the river Satluj at Barmana, District Bilaspur (Himachal Pradesh). All the four units of 200 MW each were declared commercially operational on 18.07.2015. Since then, the project is running successfully. The generation for the financial year 2016-17 had been 3,225 MU.
B. Tapovan Vishnugad HEPP (4x130 MW) is on River Dhauliganga, District Chamoli (Uttarakhand). Project is under construction with approximately 80% work completed.
C. Lata Tapovan HEPP (3x57 MW) is just upstream of Tapovan-Vishnugad HEPP, in District Chamoli (Uttarakhand). The work was stopped by Hon'ble Supreme Court through order dated 07.05.2014 for 24 Hydro Projects in the State of Uttarakhand including Lata-Tapovan. The MOEF&CC constituted an expert body, which submitted its report on 19.10.2015 and submitted the same in court on 05.11.2015, where Lata Tapovan had been recommended for implementation with compliance of certain additional conditions. Your Company submitted in Court on 19.11.2015 that the conditions recommended by expert body shall be strictly complied. On the hearing held on 26.04.2016, Additional Solicitor General of India represented MOEF & CC and informed the Court that Lata - Tapovan Project must be implemented. The matter is still pending in Hon'ble Supreme Court for want of affidavit from Ministry of Water Resources.
For National Board of Wild Life (NBWL) Clearance, for Tapovan- Vishnugad and Lata Tapovan HEPPs, the proposal regarding redefining of Eco Sensitive Zone (ESZ) was discussed in Uttarakhand State Cabinet Meeting. Formal proposal redefining the limits of ESZ of Nanda Devi National Park has been forwarded by Govt. of Uttarakhand to the standing committee of NBWL on 26.07.2016. Approval of GOI is awaited.
D. Rammam-III HEPP (3x40MW) is situated on river Rammam in Teesta Basin, Darjeeling (West Bengal). Construction work is in progress.
7.7 Capacity Addition through Renewable Energy Sources
Your Company is adding capacity through renewable sources of energy, to broad-base its generation mix to ensure long term competitiveness, mitigation of fuel risks and promotion of sustainable power development.
7.7.1 under Green Energy Commitment:
Your Company has committed to develop 10 GW of Renewable Energy Projects under Green Energy Commitment to Govt. of India. Your Company has already commissioned 883 MW of RE projects as on 31st July 2017 and 37 MW is under execution. Further, NITs have been issued for 1,025 MW of Solar PV projects to be set up in the states of A&N and Karnataka and 250 MW Wind power project in the states of Gujarat, Karnataka, Andhra Pradesh & Madhya Pradesh.
7.7.2 National Solar Mission:
Your Company has been entrusted to develop 15 GW Solar PV under National Solar Mission (NSM) Phase-II in three tranches between 2014-15 to 2018-19, where the Company will be the facilitator/ trader between Discoms and developers. Your Company will purchase power from the developers and sell it to the Discoms. Under Tranche-I of 3,000 MW of Solar PV capacity, PPA have been signed for 2,750 MW solar PV projects till 30th June 2017 and for balance 250 MW, Reverse Auction has been completed. Out of this 3,000 MW, 1,380 MW Solar PV capacity has been commissioned till 30th June 2017. The guidelines for the balance 12 GW is awaited from MNRE.
8. STRATEGIC DIVERSIFICATION - INCREASING SELFRELIANCE
8.1 In order to strengthen its competitive advantage in power generation business, your Company has diversified its portfolio to emerge as an integrated power major, with presence across entire power value chain through backward and forward integration into areas such as coal mining, power equipment manufacturing, power trading and distribution.
Your Company continuously explores business opportunities through market scanning and adopts new business plans accordingly.
8.2 The details of subsidiary companies engaged in business other than in power generation are as under:
8.2.1 NTPC Electric Supply Company Limited (NESCL), a wholly-owned subsidiary, transferred and vested all its operations, with effect from April 1, 2015, to your company.
NESCL was incorporated for the distribution business and later started deposit and consultancy works. The transfer and vesting of existing operations would enable a focused business approach in the area of distribution, the objective for which NESCL was incorporated. Although currently NESCL does not have any business operations in retail distribution, the same will be taken-up at an appropriate time when the opportunity becomes visible.
8.2.2 NTPC Vidyut Vyapar Nigam Limited (NVVN), a wholly-owned subsidiary, is engaged in the business of Power trading. NVVN has a trading License under Category I (highest category).
In the Financial Year 2016-17, NVVN achieved highest ever power trading volume of 15,861 million units (MUs) apart from trading of Renewable Energy Certificates equivalent to 68 MUs.
NVVN has paid dividend of Rs.30 Crore as final dividend for FY 2016-17.
8.3 The details of other joint venture companies which are taking up activities in other business related areas are given below:
Name of Company JV Partner Activities undertaken
UPL (Utility Powertech Ltd.) Reliance Infrastructure Limited Takes up assignments of construction, erection and supervision of business in power sector and other sectors like O&M services, Residual Life Assessment Studies, non-conventional projects etc. UPL has paid dividend of Rs.2.5 Cr. as final dividend to NTPC for FY 2015-16.
NGPSL (NTPC GE Power Services Private Limited, earlier NTPC Alstom Power Services Private Limited) GE Power Systems GmbH To provide R&M services for coal based power plants in India. To renovate, modernise, refurbish, rehabilitate, upgrade, reverse engineering and component damage assessment. Also for undertaking Residual life assessment, reengineering in India and on a project by project basis elsewhere in abroad, utilising state-of-the-art technology. General Electric Company (GEC) on 2nd November 2015, has acquired the thermal power, renewable power and grid business of ALSTOM, which also includes indirectly acquiring the 50% shareholding of Alstom in NTPC-Alstom Power Services Pvt. Limited (NASL). Accordingly, Supplementary Promoters' Agreement was signed between NTPC and GE Power Systems GmbH for inducting GE as a JV Partner in place of ALSTOM. Also, the name of the Company was changed to NTPC GE Power Services Private Limited. R&M including RLA work orders are under execution. NGPSL gave Rs.0.60 Cr as final dividend to NTPC for FY 15-16. The dividend was received in FY 16-17.
EESL (Energy Efficiency Services Ltd.) PFC, PGCIL and REC The Company was formed for implementation of Energy Efficiency projects and to promote energy conservation and climate change. EESL is working on Energy Audit of Buildings, Perform Achieve Trade (PAT) scheme work and standard & leveling work of BEE, Consultancy work, implementing Bachat Lamp Yogana anc Agricultural & Municipal Pump replacement for various State Govts. EESL gave Rs.3.39 Cr as final dividend for FY 1516. The dividend was received in FY 16-17.
NHPTL NHPC, PGCIL, To establish a research
(National DVC and CPRI and test facility for the
High power sector such as an
Power Test ÂOnline High Power Test
Laboratory Laboratory for short
Pvt. Ltd.) circuit testing facility and other facilities as may be required for the same in the country. Online High Power Test Laboratory has been set up at Bina, M.P. Company has declared Commercial operations of the laboratory w.e.f 01.07.17.
NPEXNHPC, PFCThe Company was
(National Power TCS, BSE, IFCI, formed to facilitate,
Meenakshi, promote, assist, regulate
Exchange DPSC and manage nationwide
Ltd.) trading of all forms of
electrical energy and also to settle trades in a transparent fair and open manner. The purpose for which NPEX was incorporated could not be achieved and in order to protect further deterioration in equity investment, it was felt that there was no alternative available but to put NPEX into voluntary winding up, realize assets thereof and distribute proceeds to the shareholders. Hon'ble High Court of Delhi based on satisfaction accorded by the Official Liquidator, pronounced its Order dated May 26, 2017, that NPEX is wound up and shall deemed to be dissolved with effect from the date of the filing of the present petition i.e. March 31, 2017.
NBPPL Bharat Heavy The Company was
(NTPC-BHEL Electricals incorporated for
Power Limited taking up activities
Projects Pvt. of engineering,
Limited) procurement and
construction (EPC) of power plants and manufacturing of equipments. NTPC has accorded inprinciple approval for withdrawal of NTPC from NBPPL on 28.04.2016. EPC contract awarded to NBPPL for Unchahar-Stage IV (500MW) was commissioned on 31.03.2017. STG Trial Run of Monarchak 1X100 MW Combined Cycle Power Plant was completed on 4th April, 2017 and CoD had been declared.
BF-NTPC (BF-NTPC Energy Systems Limited) Bharat Forge Limited This Company was incorporated to manufacture castings, forgings, fittings and high pressure piping required for power projects and other industries. However, since the project could not take off, it has been decided to wind up BF-NTPC. The proposal is awaiting clearance from Ministry of Power.
TELK (Transformers and Electricals Kerala Limited) Acquisition of 44.6% stake in TELK from Government of Kerala on June 19, 2009 The Company deals in manufacturing and repair of Power Transformers. The Company had a turnover of Rs.167.47 crore in FY 2016-17. NTPC has accorded inprinciple approval for withdrawal of NTPC from TELK on 28.04.2016
ICVL (International Coal Ventures Private Limited) CIL, SAIL, RINL, NMDC ICVL was formed for acquisition of stake in coal mines/ blocks/ companies overseas for securing coking and thermal coal supplies. In view of lack of suitable commercially viable opportunities for thermal coal, your Company has decided to exit from ICVL. As the Company was formed by a directive from the Government of India, approval of the Government is awaited for exit.
NTPC-SCCL (NTPC-SCCL Global Ventures Private Limited) The Singareni Collieries Company Limited NTPC-SCCL was formed for acquisition/ development of mines, beneficiation processing, O&M of coal/lignite blocks and selling of coal/ lignite produced thereof. As the Company could not attain its objectives, it is under voluntary winding up.
hurlCoal IndiaHURL was incorporated
(Hindustan Limited on 15.06.2016 to
Urvarak & Indian Oil establish and operate
Rasayan Corporation new fertilizer and
Limited) Limited chemicals complexes
Fertilizer (urea- ammonia and
associated chemical
Corporation of India Limited plants) at Gorakhpur & Sindri units of FCIL and
(FCIL) Barauni unit of HFCL and
Hindustan to market its products,
Fertilizer taking into consideration
Corporation the assets of FCIL and
Limited (HFCL) HFCL at Gorakhpur, Sindri and Barauni. Pre project activities like topographic survey, geotechnical investigation and Water availability for Gorakhpur, Sindri and Barauni project are under progress. EIA Report was submitted for all the three projects. Tenders have been floated for EPC work of all 3 projects.
Your Company is looking forward to develop the charging infrastructure and run a few pilot projects to get a foothold in this area and also to accumulate data sufficient for assessing the viability of the future business. It is currently looking to set up electric vehicle charging infrastructure, reach an MOU with city administrations and seek Strategic collaborations with other stakeholders in energy sector.
9. GLOBALISATION INITIATIVES
9.1 Trincomalee Power Company Limited (TPCL), a 50:50 joint venture between your Company and Ceylon Electricity Board was formed to undertake the development, construction, establishment, operation and maintenance of a coal based electricity generating station of 2X250 MW capacity at Trincomalee at Sri Lanka. As per the decision of of the Board of TPCL, operation of the Company have been limited till September 2017.
Govt. of Sri Lanka (GoSL) had issued letter of intent to Government of India for development of 500 MW LNG based JV power project.
9.2 Bangladesh-India Friendship Power Company Private Limited, a 50:50 joint venture Company between your Company and Bangladesh Power Development Board (BPDB) was formed for developing a 2X660 MW Coal based power project (Maitree Super Thermal Power Plant) at Khulna Division, Rampal, Bangladesh. EPC contract of the project except township has been awarded to BHEL. Financial closure has been achieved on 09.04.2017.
10. CONSULTANCY SERVICES
Consultancy Wing offers services ÂFrom Concept to Commissioning and beyond.... such as in Engineering, Operation & Maintenance Management, Project Management, Contracts & Procurement Management, Quality Management, Training & Development, Development of coal mines, Solar power projects etc. These services have been provided in India and abroad viz. Gulf countries, Bangladesh, Nepal, Sri Lanka and Bhutan. It is providing Services for more than 21,000 MW capacity to external clients besides 10,090 MW of NTPC JVs.
On international front, Consultancy Wing is providing O&M management services at Siddhirganj Peaking Power Plant (2x120MW) in Bangladesh under a World Bank funded contract which has been progressing successfully for last 4 years. There has been an all round improvement in terms of plant parameters due to implementation of best practices and systems in power plant with involvement of NTPC experts.
On the domestic front, Consultancy Wing provided Owner's Engineers Services for 2x600MW plant and is providing Pre-award services for 1x800MW power plant of Singereni Collieries Co. Ltd. It is also providing Owner's Engineers and Mine Development Services for Patratu Vidyut Utpadan Nigam Limited. Also executing assignments of various clients such as UPRVUNL, NMDC, DPCC, THDC, HPGCL, OCPL and NTPC JVs towards FR/DPR Preparation, Procurement & Inspections and other advisory services.
Project Monitoring Services are being provided for 2x660 MW Shree Singhaji TPP Khandwa, MPPGCL by deployment of executives at site resulting in works progressing ahead of schedule.
Consultancy Wing is providing Performance Improvement services to 4x250 MW units of Chhabra TPS, RVUNL and Technical support in Operation of 2x600 MW units at Shree Singaji TPS, Khandwa & HQ Jabalpur by deployment of executives at respective sites. Major O&M Technical Audit and Performance Guarantee test assignments of HPGCL, RVUNL, LPGCL, MAHAGENCO, PPCL, NEEPCO and DVC were taken up by Consultancy Wing.
Highlights of FY 16-17:
- Consultancy Wing received orders of Rs.468.43 crore, which is highest since inception.
- Consultancy Wing bagged 85 nos. of orders, which is highest since inception.
- 1310 MW capacity declared commercial for clients
- Chhabra Power Station of RVUNL achieved turnaround performance and moved up by 64 positions to find a place at 24th in all India ranking.
- Boiler Hydro test of Unit # I (660MW) of Shree Singaji TPP was successfully completed 3 months ahead of schedule.
- More than 90% availability achieved at 2X600 MW Shree Singaji TPS, Khandwa MPPGCL after commissioning
Consultancy Wing is looking ahead for future business opportunities in areas like implementation of solar & renewable power projects, mine development & supporting other power utilities for meeting new environmental norms.
11. FINANCING OF NEW PROJECTS
The capacity addition programs shall be financed with a debt to equity ratio of 70:30, in case of thermal and hydro projects and that of 80:20 in case of solar projects. Your directors believe that internal accruals of the Company would be sufficient to finance the equity component for the new projects. Given its low geared capital structure and strong credit ratings, your Company is well positioned to raise the required borrowings. Your Company is exploring domestic as well as international borrowing options including overseas development assistance provided by bilateral agencies to mobilize the debt required for the planned capacity expansion program.
The details of funding are discussed in the Management and Discussion Analysis Report which forms part of this Report.
12. FIXED DEPOSITS
Your Company has discontinued the acceptance of fresh deposits and renewals of deposits under Public Deposit Scheme with effect from 11.05.2013. As such, there were no deposits which were not in compliance with the requirements of Chapter-V of the Companies Act, 2013.
The details relating to deposits, as per the Companies Act, 2013 is as under:
(a) Accepted during the year Nil
(b) Remained unpaid or unclaimed 6 Deposits
as at the end of the year amounting to Rs.15.91 lakh*
(c) Whether there has been any default in repayment of deposits or payment of interest thereon during the year and if so, number of such cases and the total amount involved:
(i) At the beginning of the year Nil
(ii) Maximum during the year Nil
(iii) At the end of the year Nil
* Pending for completion of legal formalities/ restraint orders/ non-receipt of claims.
13. FUEL SECURITY
13.1 During the year, the supply position of coal and gas is given as under:
13.1.1 Coal Supplies
Your Company had entered into long term Fuel Supply Agreement with Coal India Limited (CIL) & The Singareni Collieries Company Limited (SCCL) for total Annual Contracted Quantity (ACQ) of 149.93 MMT & 11.2 MMT respectively and Bridge linkage of 4.65 MMT for Barh-II. The Company has short term MOU with SCCL for supply of 5.5 MMT of coal for Ramagundam, Simhadri, Mouda, Solapur and Kudgi stations for supplies till March 2017 which was further extended upto 30th June 2017. Further, your Company has signed MOU with SCCL for supply of 8.0 MMT during 2017-18 to the above referred stations with the provision for additional quantity of 2.0 MMT. Your Company & CIL jointly agreed for rationalization of Source/ ACQ of stations on 13.06.2016 by shifting of some coal from non-pitheads to pithead stations. Annual benefit on above rationalization is envisaged at around Rs.862 Crore.
To leverage further potential of rationalization of coal linkages, your Company has signed a Supplementary Agreement with CIL and its subsidiaries for all owned/ JV/ Subsidiary stations on 12.04.2017 for implementation of Govt. policy on ÂFlexibility in utilization of domestic coal for reducing cost of power generationÂ. Under the Supplementary Agreement, your Company can allocate coal to any station of its own/ JV/ Subsidiary for optimising the Energy Charges.
Your Company was also allocated Bridge Linkages by Special SLC(LT) in its meeting held on 18.03.2016 for NTPC stations viz. i) Barethi (4x660 MW), ii) Barh - II (2x660 MW), iii) Darlipalli - I (2x800 MW), iv) Tanda- II (2x660 MW), v) Lara-I (2x800 MW), vi) Kudgi-I (3x800 MW) & vii) Bilhaur (2x660 MW).
MOUs for Barh, Lara and Darlipalli have already been signed.
13.1.2 Domestic Coal and Imported Coal
During 2016-17, your Company received 160.4 MMT of coal as against 161.8 MMT in 2015-16 marking a decrease of (-) 0.86%.
Total domestic coal supply during 2016-17 was 159.35 MMT as against 152.3 MMT during 2015-16. Out of 159.35 MMT of coal, 152.17 MMT was from Annual Contracted Quantity of coal. The total coal supply from CIL was 144.33 MMT and from SCCL was 15.02 MMT. 6.78 MMT of coal was procured through MOU during 2016-17.
During 2016-17, Company imported 1.09 MMT (including swap) of coal as against 9.7 MMT in 2015-16.
During the period under review, approx. 52.52% coal (domestic and international) was transported through merry-go-round of NTPC (MGR).
13.1.3 Sourcing of coal through E-auction
Your Company participated in special E-auction for Vindhyachal, Stage-V and Unchahar Stage-IV in the year 2016-17 and 284 rakes (Approx. 1.136 MMT) had been allotted.
Total coal received through E-auction was 0.29 MMT during 2016-17 as compared to 0.94 MMT during 2015-16.
13.1.4 Supply through Inland Waterways
During 2016-17, about 3.71 lac MT imported coal has been supplied through inland waterways mode to Farakka station under a Tripartite Agreement with IWAI and service provider.
13.1.5 Commencement of third party Sampling, Central Institute of Mining and Fuel Research (CIMFR)
In line with the decision made in the meeting held under the Chairmanship of Hon'ble Minister of State (I/C) for Power, Coal & NRE on 28.10.2015 for sampling and analysis of coal at loading end, Power Utilities and Coal companies had appointed a single third party agency, CIMFR. CIMFR has started sampling at the loading points of all stations and JV's expect for NEC supplies to Farakka and Bongaigaon. CIMFR has also started sampling at unloading end of all stations except Badarpur, Tanda, Bongaigaon, and Vallur, NTECL (JV of NTPC), Kanti, BRBCL and Patratu (subsidiaries of NTPC).
This will help your Company in reducing the cost of generation as CIMFR can ensure that the grade billed by coal companies is actually supplied to stations of the Company.
13.2 Gas supplies
During 2016-17, your Company received total 5.17 MMSCMD of domestic gas as against 5.20 MMSCMD received during 2015-16. RLNG off-take was Nil during 2016-17 due to non-availability of generation schedule from the beneficiary Discoms. Your Company has Administered Price Mechanism (APM) gas agreements up to the year 2021 and Panna Mukta Tapti (PMT) gas agreements up to the year 2019 with GAIL. The agreement for Non-APM gas with GAIL is valid till 30th September 2017, which is getting extended from time to time.
For additional gas requirement over and above the supplies under long-term domestic gas/RLNG agreements, your Company has been making arrangements for tie-up and supply of Spot RLNG from domestic suppliers on 'Reasonable Endeavour' basis based on requirement and availability from time to time. There has been no generation loss on account of lack of availability of gas/RLNG during the year.
13.3 Development of Coal Mining projects
Your Company has been allocated eight coal blocks, namely, Pakri-Barwadih, Chatti-Bariatu & Chatti-Bariatu(South), Kerandari, Dulanga, Talaipalli, Banai, Bhalumuda and Mandakini-B by Government of India. In addition, Government of India has also allocated Kudanali-Luburi coal block jointly to NTPC and the State of J&K, with NTPC's share of coal reserves in this block being two-third. Process of formation of Joint Venture Company with the state of J&K for Kudanali-Luburi coal block is underway.
Banhardih coal block, allocated earlier to Jharkhand Urja Utpadan Nigam Ltd., has been assigned to Patratu Vidyut Utpadan Nigam Ltd., a subsidiary of your Company in joint venture with JBVNL.
From these 10 coal blocks, with a total estimated geological reserves of about 7.3 Billion Metric Tonnes, your Company expects to produce about 107 Million Metric Tonnes of coal per annum.
Coal production commenced from Pakri-Barwadih coal block in December 2016 and a total of 2.27 lakh tonne of coal was extracted and 28 rakes were dispatched to Barh in FY 2016-17. Further, 3.98 lakh tonne of coal was extracted and 44 rakes were dispatched to Barh in Q1 2017-18. In this coal block, on community development / CSR activities, your Company has incurred an expenditure of Rs.3.96 Crore in this FY 2016-17 (Cumulative expenditure of Rs.22.29 Crore) which has helped in improving the socio-economic conditions of the locals.
Your Company has progressed well in other coal blocks, too. Mine Developer-cum-Operator (MDO) for Dulanga coal block has been appointed on 09.02.2017 and the same is in advanced stage for Talaipalli and Chatti-Bariatu coal blocks. For Kerandari coal block, techno-commercial bids opened on 15.05.2017 and are under evaluation. CIL NTPC Urja Private Limited was incorporated as 50:50 joint venture company between your Company and Coal India Limited mainly to undertake development of Brahmini and Chichro Patsimal coal mines in Jharkhand and subsequently their operation and maintenance. Ministry of Coal deallocated these mines in June 2011. Further, Hon'ble Supreme Court in September 2014 had cancelled allocation of 204 coal blocks including these two blocks. So far, Brahmini and Chichro Patsimal coal blocks have not been considered for allocation/ auction.
13.4 Exploration Activities
In Cambay exploration block (CB-ONN-2009/5) held by your Company as Operator with 100% participating interest, Minimum Work Programme (MWP) has been completed. No oil or gas of commercial value was observed in any of the wells. The block was relinquished to Government of India. In the KG basin exploration block KG-OSN-2009/4 where ONGC is the Operator and your Company has 10% stake, the exploration activities are in progress. As the permitted area of the block for exploration was reduced because of non-grant of defence clearance, GOI reduced the minimum work programme to drilling of one well and conduct airborne Full Tensor Gravity Gradiometer (FTG) survey in conditionally partial cleared area. Drilling of one well was completed. FTG survey is under progress.
14. BUSINESS EXCELLENCE: GLOBAL BENCHMARKING
To achieve higher levels of excellence, NTPC has developed and adopted its own ÂBusiness Excellence Model on the lines of globally reputed Excellence Models such as Malcom Baldrige Model, USA and EFQM Model of Europe.
This model has been deployed at our Business Units (Stations) and assessment of generating stations is being carried out using this framework of excellence.
The assessment process is aimed at identifying the area for enhancing stakeholders' engagement, improving critical processes and developing leadership potential.
The outcome of this model is identification of organizational strength, opportunities for improvement, issues of concern and best practices. In the financial year 2016-17, 21 generating stations were assessed by a team of certified and professional assessors. Business Excellence Awards for Best Performance was given to Vindhyachal. Contemporary quality initiative and techniques like Quality Circles, Professional Circles, 5S, integrated management system (IMS) etc. have been deployed across the organization for continuous improvement.
15. RENOVATION & MODERNISATION
In the present scenario of severe resource constraint, Renovation and Modernization (R&M) of power plants is considered to be a cost-effective option which can complement new capacity addition as R&M schemes have a shorter gestation period with all clearances, land, water, fuel and beneficiaries available. To this end, R&M is being carried out for the purpose of life extension of units, performance improvements, availability and reliability improvement and improved environment compliance. It ensures safe, reliable and economic electricity production by replacement of worn-out, deteriorated or obsolete electrical, mechanical, instrumentation, controls and protection system by state-of-the-art equipment.
Keeping in view the ageing of the fleet over the years, investment approval accorded till date for R&M in 19 stations (Coal & Gas based) is Rs.14,275.93 crore. As against this, cumulative expenditure till 31.03.2017 is Rs.6,272.84 crore. Out of this, R&M capital expenditure in the financial year 2016-17 was Rs.592.53 crore.
With a view to remove technological obsolescence, renovation of control & instrumentation (C&I) had been taken up in 9 stations at Singrauli - I (5X200 MW) & Singrauli - II (2X500 MW), Korba - I (3X200 MW) & Korba - II (3X500 MW), Ramagundam - I (3X200 MW) & Ramagundam - II (3X500 MW), Farakka-II (2X500 MW), Dadri Thermal - I (4X210 MW), Unchahar- I (2X210 MW), Talcher STPS-I (2X500 MW), Kahalgaon-I (4X210 MW) and Rihand - (2X500 MW) comprising a total of 35 units. During 2016-17, C&I R&M was completed in one 500 MW unit of Singrauli and one 210 MW unit of Kahalgaon. DDCMIS R&M was completed in 26 units. On completion of these schemes, C&I systems in these stations have now been brought nearly at par with the new builds. Owing to very high operating temperatures, R&M of Gas Turbines including their Control & Instrumentation was recommended by OEM after around 15 years of life. This activity was completed in all 4 Gas Turbines (GT) each in Kawas and in Auraiya and all 3 GTs in Gandhar. To overcome obsolescence, R&M activity for C&I Systems of all modules of gT, ST & WHRB in Anta, Auraiya and for one module of Dadri gas has been completed.
As a responsible corporate citizen, it has always been your Company's endeavour to ensure low levels of pollution from its power stations. With a view to maintaining a clean atmosphere in and around the power plant by reduction of particulate emission levels from generating stations, Renovation and Retrofitting of Electrostatic Precipitator (ESP) packages have been awarded and work is in progress in Singrauli-I & II (5X200 MW+2X500 MW), Farakka-I (3X200 MW), Unchahar-I (2X210 MW), Korba-I & II (3X200 MW+3X500 MW), Vindhyachal-I & II (6X210 MW+2X500 MW), Talcher STPS -I & II (2X500 MW+4X500 MW) and Talcher TPS-II (2X110 MW). During 2016-17, ESP R&M of two units of 210 MW and one unit of 500 MW of Korba, one unit each of Unchahar (210 MW), Vindhyachal (500 MW) and Rihand (500 MW) has been completed. Renovation of ESP has been ordered for Farakka (2x500 MW) while the same is in advanced stage of ordering in case of Unchahar (2x210 MW), Kahalgaon (4x210 MW) and Ramagundam (3x200 MW).
16. HUMAN RESOURCE MANAGEMENT
16.1 Your Company takes pride in its highly motivated and competent Human Resource that has contributed its best to bring the Company to its present heights. The productivity of employees is demonstrated by increase in generation per employee and consistent reduction of Man-MW ratio year after year. The overall Man-MW ratio for the year 2016-17 excluding JV/subsidiary capacity is 0.51 and 0.47 including capacity of JVs/ Subsidiaries. Generation per employee was 12.16 MUs during the year based on generation of your Company's stations.
The total employee strength of the Company (including JVs/ subsidiaries) stood at 22,124 as on 31.3.2017 against 23,133 as on 31.3.2016.
FY 2016-17 FY 2015-16
NTPC
Number of employees 20,593 21,633
Subsidiaries & Joint Ventures
Employees of NTPC in Subsidiaries & Joint Ventures 1,531 1,500
Total employees 22,124 23,133
The attrition rate of NTPC executives during the year was 0.93%.
16.2 Employee Relations
Employees are the driving force behind the sustained stellar performance of your Company over all these years of Company's ascendancy. As a commitment towards your Company's core values, employees' participation in Management was made effective based on mutual respect, trust and a feeling of being a progressive partner in growth and success. Communication meetings with unions and associations, workshop on production and productivity, etc. were conducted at projects, regions and corporate level during the year.
Both, employees and management complemented each other's efforts in furthering the interest of your Company as well as its stakeholders, signifying and highlighting overall harmony and cordial employee relations prevalent in your Company.
16.3 Safety and Security
Occupational health and safety at workplace is one of the prime concerns of Company Management and utmost importance is given to provide safe working environment and to inculcate safety awareness among the employees. Your Company has a 3-tier structure for Occupational Health and Safety management, namely at Stations/Projects, at Regional Head Quarters and at Corporate Centre. Safety issues are discussed in the highest forum of management like Risk Management Committee (RMC), Management Committee Meeting (MCM), ORTs, PRTs etc.
All of your Company's stations are certified with OHSAS-18001/IS-18001. Regular plant inspection and review with Head of Project/Station is being done. Internal safety audits by safety officers every year and external safety audits by reputed organizations as per statutory requirement are carried out for each Project/Station. Recommendations of auditors are regularly reviewed and complied with.
Height permit and height check list are implemented to ensure safety of workers while working at height. Adequate numbers of qualified safety officers are posted at all units as per statutory rules/provisions to look after safety of men & materials. For strict compliance & enforcement of safety norms and practices by the contractors, safety clauses are included in General Conditions of Contract/ Erection Conditions of Contract.
Detailed emergency plans have been developed and responsibilities are assigned to each concerned to handle the emergency situations. Mock drills are conducted regularly to check the healthiness of the system.
Most of your Company's plants have been awarded with prestigious safety awards conferred by various Institutions/Body like Ministry of Labour & Employment-Govt. of India, National Safety Council, Institute of Directors, Institution of Engineers (India), in recognition of implementing innovative safety procedures and practices. Security: Your Company recognizes and accepts its responsibility for establishing and maintaining a secured working environment for all its installations, employees and associates. This is being taken care of by deploying CISF at all units of your Company as per norms of Ministry of Home Affairs. Concrete steps are being taken for upgrading surveillance systems at all projects/ stations by installing state-of-the-art security systems.
16.4 Training and Development
Your Company has consistently endeavored for attracting, on-boarding, grooming and motivating its talent recognising that nurturing the talent leads to competitive advantage.
In this process, your Company has always endeavored to be in the forefront of creation and dissemination of knowledge. Its sustained performance leadership has, to a large extent, been achieved on the platform of comprehensive learning and development programs for its employees. A large number of professionals from other organizations in the power sector have also benefitted immensely from the learning and development programs of your Company. It is not surprising to see many organisations in the country adopting practices and systems developed by your Company.
Our quest to keep the Company in tune with emerging business challenges is reflected in our new tagline for learning ÂLearning@speed of businessÂ.
The learning activities are being driven by a comprehensive infrastructure comprising NTPC Power Management Institute (PMI) at the corporate level, six Regional Learning Institutes (RLIs) located strategically in six large power stations of NTPC and Employee Development Centers (EDCs) located at almost all power projects and stations. At the foundation of the learning structure of your Company are the EDCs. The EDCs take care of training requirements of non-executives and junior level executives at the projects and stations. The training requirements of middle and senior level executives are catered to by RLIs at regional level and PMI, Noida at the corporate center as the apex learning center.
Together, the PMI, six RLIs and large number of EDCs form a strong learning grid covering the entire human resource of your Company. This learning grid enables us to provide learning solutions for practically every aspect of the power value chain, covering the strategic, tactical and operational facets right down to the shop floor and learning domains ranging from mining to distribution.
Initiatives taken by PMI:
(i) Learning and Development (L&D) interventions are designed and delivered after a multidimensional Training Need Analysis (TNA) focussed on enhancing technical, functional, strategic and leadership skills. Additionally, there are specific Planned Learning Interventions after about 7, 13 and 20 years of working in the Company which groom executives for the next level. In 2016-17, total 14 such planned interventions were carried for middle and senior level managers.
(ii) During 2016-17, PMI conducted almost 387 training programmes covering nearly 8,096 professionals, logging a total of approximately 30,898 training mandays.
(iii) PMI has also taken a learning initiative to develop a Project Analytics based learning module with an aim to bring paradigm change in Project Planning, Monitoring and Control. It will focus on creating single integrated dynamic Project Analytic System to facilitate active task management, measurement of progress, course correction and faster decision making for on-time project delivery.
(iv) Conducted about 34 training programs through Web conferencing platform at workstations during 2016-17.
(v) Launching the Harvard Managementor e-learning modules with 2000 licenses, which will be made available to middle level executives across the company.
(vi) Has been pioneer to start an Employee Assistance Program, a confidential expert counselling service for employees and their family members.
(vii) Started NTPC PMI eminent speaker series, in which eminent speakers from India and abroad are invited for delivering half day sessions on subjects like innovation, leadership, environment, water conservation, health and wellness, strategy etc. for top management and employees of your Company. This program is also telecasted live to all the projects, stations and offices of your Company across the country.
(viii) PMI has conducted several customized training programs for the benefit of State utilities (like Himachal Pradesh, Punjab, Rajasthan and Uttar Pradesh), PSEs (like PFC, REC, THDC, EESL, DVC etc.), private sector companies (Adani, ICICI, Siemens, GE India Power etc.) and overseas based clients (Abu Dhabi, UAE) at their locations as well as in PMI.
(ix) With the objective of grooming professionals into world class leaders in power sector, your Company has also opened the ÂNTPC School of Business for running the flagship program titled ÂExecutive Post-Graduate Diploma in Management (EPGDM). The program is duly approved by AICTE and is being administered at PMI premises. This 15 months' course has been launched with the objective of fulfilling the demand for professionals with focused domain expertise in their business and also having a general management perspective, in the rapidly growing power and energy sectors. This rigorous and challenging program also includes learning inputs from international faculty, 2 weeks' international exposure at Nanyang Technical University, Singapore, and exposure to industries within and outside India. 1st batch, which started on 03.08.2015, had completed the course successfully and 2nd batch is undergoing the course.
(x) As the nodal agency, PMI is facilitating the adoption of existing Government ITIs and setting up of new ITIs in different parts of the country spanning 16 States. Till now, your Company has adopted 18 ITIs and set up 8 new ITIs near its power stations, thus associating with total 26 ITIs. Of the 18 Govt. ITIs adopted by your Company, 15 ITIs were adopted under the PPP scheme of GoI and 3 ITIs have been adopted under bilateral agreement with different State governments. These initiatives by your Company resulted in creation of total 1,831 new seats by starting of new trades/units in the adopted and new ITIs. Cumulatively, a total of 29,109 students benefitted from this initiative till 31.03.2017. For these ITI students, your Company organised 49,559 mandays of industrial training/plant visits.
(xi) PMI has also been nominated to conduct focused capacity building programs for executives of several Discoms in the country under the IPDS (Integrated Power Development Scheme) of Govt of India. This capacity building mission aims at improving the skills and performance of Discoms, thus improving a vital link of the power value chain which also helps your Company immensely because these Discoms are our valued customers.
17. SUSTAINABLE DEVELOPMENT
Your Company has adopted the 'triple bottom-line' approach recognizing People, Planet and Profit as the primary pillars of corporate sustainability and believes that Development should not endanger the natural systems.
Your Company is preparing Sustainability Report based on the Global Reporting Initiative (GRI). Sustainability reporting has helped us in measuring and monitoring the Company's performance. It has served as an important management tool helping your Company to relook the systems, policies and procedures.
Your Company has developed a policy and in accordance with it, a Sustainable Development Plan was prepared for FY 2016-17. The main focus area of Sustainable Development Plan covers waste management, water management, bio-diversity, promotion of renewable energy. Major activities carried out under this plan include plantation of 10 million trees, installation of 310 kw rooftop of Solar PV at NTPC Dadri on public utilities buildings and on schools, Sewage treatment plant at Amarkantak, studies on impact assessment and carrying capacity river basin. Major activities under bio-diversity conservation taken up are conservation of Olive Ridley sea Turtles and study on bio-productivity of Gangetic Dolphin at NTPC Kahalgaon.
Business Responsibility Report is attached as Annex-X and forms part of the Annual Report
Revenue expenditure of Rs.35.33 Crore was incurred on these SD projects during Financial Year 2016-17.
17.1 Inclusive Growth - Initiatives for Social Growth
17.1.1 Corporate Social Responsibility:
Your Company commits itself to contribute to the society, discharging its corporate social responsibilities through initiatives that have positive impact on society at large, especially the community in the neighborhood of its operations by improving the quality of life of the people, promoting inclusive growth and environmental sustainability.
Focus areas of your Company's CSR & Sustainability activities are Health, Sanitation, Drinking Water, Education, Capacity Building, Women Empowerment, Social Infrastructure Development, support to Physically Challenged Person (PCPs), and activities contributing towards Environment Sustainability.
During the year, more than 400 villages and more than 360 schools have been benefitted by your Company's various CSR initiatives at different locations. These CSR initiatives have touched the lives of around 10 lakh people in one or the other way, residing at remote locations.
During 2016-17, special thrust had been given to the ÂClean Water and SanitationÂ, with an objective to provide adequate and equitable drinking water & sanitation and hygiene to the people around your Company's operations and to end open defecation through construction of individual, cluster and community toilets enabling a clean, safe, healthy, livable and sustainable city.
Your Company spent Rs.277.81 crore during the financial year 2016-17 towards CSR initiatives, which surpassed the prescribed two percent amount of Rs.227.85 crore, thus achieving a CSR spend of 2.43%.
17.1.2 NTPC Foundation
NTPC Foundation, funded by your Company, is engaged in serving and empowering the differently-abled and economically weaker sections of the society.
Details of expenditure incurred and initiatives undertaken by the Company under CSR are covered in the Annual Report on CSR annexed as Annex-VII to this Report.
17.1.3 Rehabilitation & Resettlement (R&R)
Your Company is committed to help the populace displaced for execution of its projects and has been making efforts to improve the Socio-economic status of Project Affected Persons (PAPs). In line with its social objectives, the Company has focused on effective resettlement and rehabilitation (R&R) of PAPs and also on community development works in and around its projects.
R&R activities are initiated at projects by undertaking need based community development activities in the area of health, education, water, capacity building, infrastructure etc. by formulating 'Initial Community Development (ICD) Plan' in consultation with concerned Panchayat, district administration and opinion makers of the locality. Your Company addresses R&R issues in line with its R&R Policy with an objective that after a reasonable transition period, the conditions of affected families improve or at least they regain their previous standard of living, earning capacity and production levels. As per the Policy, a detailed Socio-economic Survey (SES)/other Survey is conducted by a professional agency to create a baseline data of PAPs. This follows formulation of a 'Rehabilitation and Resettlement (R&R) Plan' after adequate consultation with stakeholders in 'Village Development Advisory Committee (VDAC)', which comprises representatives of PAPs, Gram Panchayats, NTPC and District Administration. R&R Plan consists of measures for rehabilitation, resettlement and need based community development (CD) activities.
R&R Plan is implemented in a time bound manner so as to complete its implementation by the time the project is commissioned. On completion of the R&R Plan implementation, a Social Impact Evaluation (SIE) is conducted by a professional agency to know the efficacy of R&R Plan implementation for future learnings.
17.1.4 R&R achievements during the year:
- Initial Community Development (ICD) Plan:
Implementation of earlier approved ICD activities continued at Bilhaur and Pudimadaka projects.
- Rehabilitation and Resettlement (R&R) Plan:
- R&R Plan for Khargone Railway siding covering R&R obligations and community development facilities in the area of Health, Education, Sanitation, Drinking water, Infrastructure facilities finalized in consultation with stakeholders and approved. CD Plan for Telangana Phase-I also approved. R&R Plan provisions for Tanda-II project enhanced to take care of additional requirements for resettlement of PAPs.
- R&R activities were implemented at the new Greenfield / Brownfield Thermal projects at Barh, Bongaigaon, Barethi, Darlipali, Gadarwara, Khargone, Muzaffarpur, Korba, Kudgi, Lara, Meja, Mouda, North-Karanpura, Solapur, Tanda-II, Unchahar-IV, Vallur, Vindhyachal-IV, Vindhyachal-V, Hydro projects at Koldam, Tapovan Vishnugad, Rammam-III and Coal Mining Projects at Pakri-Barwadih, Chhatti-Bariatu, Kerendari, Dulanga and Talaipali where R&R / CD Plans were finalized in consultation and participation of the stakeholders and approved earlier as well as at Telangana where the CD Plan has been approved during the year. Reappropriation of under implementation R&R / CD Plans as required on a case to case basis for specific projects was also approved to take care of the local requirements during implementation.
- Socio-economic Survey (SES)/ Need assessment Survey (NAS)/ Census and Survey (C&S):
SIA for Pudimadaka (earlier Lalam Koduru) project was conducted as per requirement.
- Focus areas for Community Development activities:
- Swachh Bharat Abhiyan - Various initiatives were taken to make project affected villages open defecation free by taking up activities related to construction of individual toilets and awareness programmes.
- Drinking water - Planning and implementation for access to drinking water for 100% coverage of all project affected villages of your Company's projects under construction is being undertaken.
- Capacity building / Skill upgradation-MOU / Tie up with National Skill Development Corporation (NSDC) is
being implemented for imparting skill development to PAPs at various projects as part of 'National Skill Development Mission' of GOI.
- Education - Construction activities started for Medical College at Sundargarh (Odisha) and Engineering College at Shivpuri (MP). MOU signed with Govt. of Odisha for setting up a Polytechnic at Sundargarh (Odisha).
- Health - For the benefits of project affected persons and neighbouring population 'Mobile Health Clinic', Medical camps and dispensaries are being operated for comprehensive health coverage of PAPs at North Karanpura and mining projects at Jharkhand during the year.
17.2 Environment Management - Initiatives for preserving Environment
Vision Statement on Environment Management:
ÂGoing Higher on Generation, lowering GHG intensityÂ
Your Company has always envisaged environment protection and management practices as one of its prime responsibilities and focuses its efforts to minimize the impact of its operation on surrounding environment.
Your Company is undertaking massive renovation & modernization to upgrade air pollution equipments to reduce SPM emissions well below current statutory limits. Around 12%-15% of the project cost is spent on various environment protection equipments such as Electrostatic Precipitators (eSps), Liquid Waste Treatment Plants (LWTP), Ash Water Recirculation System (AWRS), dry ash extraction system, dust extraction, suppression system, ambient air quality monitoring system, flue gas conditioning system and desulphurization system etc. It has adopted advanced and high efficiency technologies such as super critical boilers at new stations and upcoming green field projects.
Your Company is augmenting its capacity by installing solar power systems in a big way and small hydel power systems attached to its thermal power stations, wherever possible, so as to encourage garnering of renewable energy resources. These measures are aimed not only to achieve reduction in pollution and minimize use of precious natural resources but also to lead to reduction of CO2 emissions per unit of generation thereby reducing global warming.
17.2.1 Control of Air Emissions:
High efficiency Electro-static Precipitators (ESPs) with efficiency of the order of 99.97% and above, with advanced control systems have been provided in all coal based stations to keep Particulate Matter (PM) below the prevailing permissible limits. All upcoming new plants are being provided with ESPs designed in such a manner that would cater to the notified future stringent norms. Performance enhancement of ESPs operating over the years is being carried out by augmentation of ESPs fields, retrofitting of advanced ESP controllers, new technology i.e. MEEP (Moving Electrode Electrostatic Precipitators) and adoption of sound O&M practices. Flue Gas Conditioning systems have also been provided at our old units which are helping in reduction of SPM emissions below statutory limits even during coal quality variations. NOx control in coal fired plants is presently achieved by controlling its production by adopting best combustion practices (primarily through excess air and combustion temperatures controls). Over and above this, since tall stacks are provided in coal stations, gases emitted through stacks is widely dispersed and diluted. In gas based stations, NOx control systems (hybrid burners or wet DeNOx) have been provided for good combustion practices.
For compliance of new norms, pilot study based on SCR/SNCR technology are being undertaken at 11 locations to find out the optimal solution and suitable technology for DENOx system.
For control of SOx, first FGD has been commissioned at Vindhyachal. Erection of FGD at Bongaigaon is in advance stage.
Fugitive emission from ash pond is controlled by maintaining water cover, plantation on abandoned ash ponds, water spray and earth cover in inactive lagoons. Providing dust suppression and extraction system in CHP area has further added to reduction in fugitive dust in the vicinity of power stations.
17.2.2 Control of water pollution and promotion of water conservation:
Various water conservation measures have been taken up by your Company to reduce water consumption in power generation by using 3Rs (Reduce, Recycle & Reuse) as guiding principle. Provision of advanced treatment facilities such as Liquid Waste Treatment Plants (LWTP), Coal Settlement Pit (CHP), Recycling Systems for Ash Pond Effluent called Ash Water Recirculation System (AWRS) and closed cycle condenser cooling water systems with higher Cycle of Concentration (COC), rain water harvesting wherever possible and reuse of treated sewage effluent for horticulture purposes are some of the measures implemented in most of the stations. For effective monitoring of water use, flow meters with integrators are being installed at all designated stations. All these measures have resulted in reduction of effluent discharge from the power plants of your Company. In view of water stressed scenario and new norms for specific water consumption, water conservation and reduction in water consumption per unit of generation has assumed great importance. Your Company has taken a proactive approach of making all its power stations to operate with ZLD (Zero liquid discharge) progressively in phases. ZLD at six power plants have already been completed during this fiscal year. Further, ZLD is planned in all other stations during the current year.
17.2.3 Automation of environment measurement system: All the power stations are equipped with continuous ambient air quality monitoring stations (AAQMS) to capture the real time data of PM 10, PM 2.5, SO2, NOx and access thereof viz., and access has been provided to the Regulators such as Central Pollution Control Board and State Pollution Control Boards. Additional ozone analyzers for ambient air are also being provided phase-wise at the existing stations. Continuous Emission Monitoring Systems (CEMS) to monitor emissions of SO2 and NOx in all units on real time basis 24x7 are installed and commissioned in addition to the opacity meter installed for monitoring of particulate emission. Installation of real time monitors for pollutants in effluents (EQMS) is also completed for all its existing projects. The real-time data is being transmitted to regulators through the cloud server and alerts are being generated in case of excursions beyond the limits. For all the upcoming projects, real time monitors for ambient air, effluents and emissions are included in the engineering packages during design stage itself.
17.2.4 Revised Emission Norms:
MOEF&CC vide notification dated 7th December, 2015, has stipulated the emission limits for Oxides of Nitrogen (NOx), Sulphur dioxide (SO2) and Mercury also and made stringent norms for particulate matter. The emission limits of these elements depend on the unit size and age of the units and shall be complied by 7th December, 2017 for all operating units. Various issues due to implementation of revised norms, including relaxation in time period for implementation, has been taken up with MOEF&CC.
Your company is designing its new plants to comply with new norms. Parallely various actions are being taken up for operating units and under construction units for meeting revised norms. Your company has already undertaken extensive R&M of ESPs for complying emission limit of particulate matter. For meeting SO2 emission limit, First set of tenders for installation of Flue Gas De-sulphurisation (FGD) has been issued for 54 units of around 33GW. Selective catalytic reduction (SCR) will be required for controlling of NOx for which Pilot test studies are being undertaken at various NTPC operating stations to check the suitability of SCR technology for high ash and abrasive ash. Once the technology for DeNOx is established, which is expected by Mid-2018, tendering for implementation for NOx control with SCR will be taken up.
17.2.5 Tree Plantation:
Your Company is undertaking tree plantation covering vast areas of land in and around its projects and till date about 32 million trees have been planted throughout the country including 10 million trees planted during 2016-17 under accelerated afforestation programme.
The afforestation has not only contributed to the 'aesthetics' but also helped in carbon sequestration by serving as a 'sink' for pollutants released from the stations and thereby protecting the quality of ecology and environment. Further, your Company has embarked upon long-term Memorandums with State authorities to assist National Commitment of INDC in COP 21, by planning to plant 10 million trees during 2016-2026 @ 1 million trees per year across the country.
17.2.6 ISO 14001 & OHSAS 18001 Certification:
All stations of your Company have been certified with ISO 14001 and OHSAS 18001 by reputed National and International certifying agencies as a result of sound environment management systems and practices.
17.3 Quality Assurance and Inspection (QA&I)
Your Company continues to place great emphasis on quality, with the view to secure long term reliability and availability of its productive assets and the investments. This is ensured by committing adequate number of qualified and trained human resources for quality related activities, maintaining field laboratories at the construction sites and pursuing time tested systems & processes, resulting in world class standards of performance of the plants.
In your Company, quality needs are identified & planned, keeping in mind the interests of all the stake holders, by interacting with major Power Equipment manufacturers of the world, thereby embracing the latest technologies available. The quality requirements associated with such technologies are rigorously pursued during manufacturing, erection & commissioning of various products/ systems/ services. The dynamic feedback system ensures that the gaps, if any, are filled through resetting the methods and standards resulting in continuous improvement.
Your Company's robust performance on all parameters, is a testimony to the soundness of the quality system deployed.
Your Company is represented on various technical committee of ISO and IEC and is actively contributing in formulation and updating of power sector technical and quality standards/ guidelines, to serve the national as well as international community at large.
17.4 Clean Development Mechanism (CDM)
Your Company is addressing climate change issues proactively.
Your Company has taken several initiatives in CDM projects in Power Sector. It has gone ahead with nine projects in CDM foray. 8 MW Small Hydro Power Project at Singrauli, three 5 MW solar PV projects at Dadri, Port Blair (Andaman & Nicobar) & Faridabad, 50 MW Solar PV project at Rajgarh (MP) & 10 MW Solar PV Project at Unchahar had already been registered with UNFCCC CDM Executive Board with estimated annual Certified Emission Reductions (CERs) potential of approx. 1,57,000. Another three Solar PV projects i.e. 15 MW Singrauli (UP), 10 MW Talcher (Odisha) & 10 MW Ramagundam (Telangana) are in advanced stage of registration.
17.5 Ash utilisation
During the year 2016-17, 50.58% viz. 295.69 lakh tonnes (52.38% viz 335.1 lac tonnes including JV & Subsidiaries) of ash had been utilized for various productive purposes.
Important areas of ash utilization are - cement & asbestos industry, ready mix concrete plants (RMC), road embankment, brick making, mine filling, ash dyke raising & land development.
Pond ash from all stations of your Company is being issued free of cost to all users. Fly ash is also being issued free of cost to fly ash/ clay-fly ash bricks, blocks and tiles manufacturers on priority basis over the other users from all coal based thermal power stations. The funds collected from sale of ash is being maintained in the separate account and this fund is being utilized for development of infrastructure facilities, promotion and facilitation activities to enhance ash utilization.
Your Company has an Ash Utilization Policy, which is a vision document dealing with the ash utilization issue in an integral way from generation to end product. This policy aims at maximizing utilization of ash for productive usage along with fulfilling social and environmental obligations as a green initiative in protecting the nature and giving a better environment to future generations.
The quantity of ash produced, ash utilized and percentage of such utilization during 2016-17 from your Company's Stations is at Annex VIII.
17.6 CenPEEP - towards enhancing efficiency and protecting Environment
Your Company initiated a unique voluntary program of GHG emission reduction by establishing 'Center for Power Efficiency and Environmental Protection (CenPEEP)' and under this program, it is estimated that cumulative CO2 avoided is 43.7 million tonnes since 1996, by sustained efficiency improvements. CenPEEP is working for efficiency and reliability improvement in stations through strategic initiatives, development and implementation of systems and introduction of new techniques & practices. Critical efficiency parameter, draft power consumption, efficiency improvement through overhauling are monitored. PI based real time programs and dashboards are in use for real time tracking of plant parameters. These programs also assist operating engineers in tracking the gaps in heat rate and auxiliary power consumption and trending the degradation of equipment performance.
CenPEEP is also working towards reduction in specific water consumption and auxiliary power consumption in coal and gas stations. A dedicated group CEETEM - Centre for Energy Efficient Technology & Energy Management, conducts regular Energy audits to identify potential improvement areas and improvement actions. CenPEEP is actively involved in training and development of power professionals for the Company and other utilities in the power sector in the areas of Boiler & Auxiliaries, Turbine & Auxiliaries, Cooling Towers, RCM and PdM technologies etc. CenPEEP coordinated implementation of Perform, Achieve & Trade (PAT) scheme under Prime Minister's National Mission on Enhanced Energy Efficiency (NMEEE) in your Company coal & gas plants. As per notification, Company's coal and gas stations exceeded the Net Heat Rate improvement targets and earned net 170653 EScerts (Energy saving certificates) in PAT-1 cycle. CenPEEP is taking up benchmarking study for your Company coal station by EPRI. Performance & Guarantee tests are being coordinated by CenPEEP which includes approval of procedure, conducting test & its evaluation.
18. NETRA
Your Company, as the leading power utility of the country, has been assigning a minimum of 1% of its PAT for R&D activities.
Your Company has focused its research efforts to address the major concerns of the sector as well as the future technology requirements of the sector. In this effort, your Company has established NTPC Energy Technology Research Alliance (NETRA) as state-of-the-art centre for research, technology development and scientific services in the domain of electric power to enable seamless work flow right from concept to commissioning. The focus areas of NETRA are - Efficiency Improvement & Cost Reduction; New & Renewable Energy; Climate Change & Environmental Protection which includes Water Conservation, Ash Utilization & Waste Management. NETRA also provides Advanced Scientific Services to its stations and other utilities in the area of oil/water chemistry, environment, electrical, Rotor dynamics etc. for efficient performances.
Research Advisory Council (RAC) of NETRA comprising eminent scientists and experts from India and abroad is in place to steer research direction.
Scientific Advisory Council (SAC) provides directions for undertaking specific applied research projects aimed to develop techniques in power plant for efficient, reliable and environment friendly operation with emphasis on reducing cost of generation.
Initiatives are taken to develop technologies for reducing forced outages, installing intelligent online monitoring of critical components, understanding the likely damages due to corrosion and providing appropriate solutions etc. Effort is being made for reducing cost of generation by either increasing the overhaul cycle or reducing overhaul duration through correct and proper health assessment of critical components, developing diagnostic tools and ensuring environmental & safety compliances. The prime thrust is towards clean and economic power generation. Patents have been filed in the areas of climate change, waste management etc. NETRA has collaborations with National Institutes like I IT's, IISc-Bangalore, C-DAC, NML, CSIR labs, IOCL R&D, CPRI, CINFR, CBRI Roorkee and Geological Survey of India, etc. to promote research in the field of CFD, Flow batteries, Renewable, environment, water chemistry, ash utilization, process development, etc.
NETRA is setting up Solar Thermal & PV Labs under the aegis of Indo German R&D co-operation. Projects on improvement in the ESP performance through CFD modeling has been undertaken with Excellence Enhance Centre (EEC), VGB Germany. NETRA is also a member of EPRI USA.
NETRA laboratories are ISO 17025 accredited and provide high end scientific services to all the stations of your Company as well as many other utilities. NETRA NDT laboratory is also recognized as Remnant Life Assessment Organization under the Boiler Board Regulations,1950.
Phase-II NETRA infrastructure is under construction with approx. 21,000 sq m floor area and is expected to be completed by 2018. Phase-II will have 30 laboratories, workshop, pilot plant bay and an auditorium with seating capacity of 400 persons.
The details of activities undertaken by NETRA are given in Annex-III.
19. IMPLEMENTATION OF OFFICIAL LANGUAGE
Several initiatives were taken for the progressive use of Hindi in day to day official work and implementation of Official Language policy of the union of India in your Company. The compliance of Official Language policy in our projects and regional headquarters was inspected and need based suggestions were given to the respective Heads of offices in this regard.
Quarterly meeting of Official Language Implementation Committee were held under the chairmanship of CMD & Director (HR), in which extensive discussions took place on the use of Hindi and the ways and means to bring about further improvements.
Hindi Divas was celebrated on 14th September 2016 and Hindi Fortnight was organised from 01-15 September, 2016 at Corporate Centre as well as regional headquarters and projects to create awareness among the employees, associates and their family members. Vidyut Swar, our biannual Hindi magazine was published to promote creative writing in Hindi. Annual conference of Hindi Officers organised to review the progress of Rajbhasha in your Company.
Employees were motivated to use Hindi in official work by organising Hindi workshop, Unicode Hindi Computer Training and Hindi incentive schemes. Hindi webpage was updated with important information of Rajbhasha for employees.
The second sub-committee of Parliament on official Language had inspected our units and Headquarters; reviewed the progress of Rajbhasha implementation and appreciated our efforts.
Your Company's website also has a facility of operating in bilingual form, in Hindi as well as in English.
20. VIGILANCE
20.1 Vigilance Mechanism
Your Company ensures transparency, objectivity and quality of decision making in its operations, and to monitor the same, the Company has a Vigilance Department headed by Chief Vigilance Officer, a nominee of Central Vigilance Commission. Vigilance set up comprises Vigilance Executives in Corporate Centre and Projects. Corporate Vigilance consists of four cells namely Investigation & Processing Cell, Departmental Proceedings Cell, Technical Examination Cell and MIS Cell deal with various facets of vigilance mechanism. For speedier disposal of vigilance cases, works have been assigned to Vigilance Executive at each of the regions of the Company.
344 surprise checks were made during the period.
20.2 Implementation of Integrity Pact
Your Company is committed to have total transparency to its business processes and as a step in this direction; it signed a Memorandum of Understanding with Transparency International India in December, 2008. The Integrity Pact is being implemented for all contracts having value exceeding Rs.10 crore. Presently, your Company is having one Independent External Monitor to oversee the implementation of Integrity Pact Programme.
20.3 Implementation of various policies/ circulars
Fraud Prevention Policy and Whistle Blower Policy have been implemented in your Company to build and strengthen a culture of transparency. Your Company has also laid down a comprehensive policy for withholding and banning of business dealings with agencies, wherever the situation so demands. During 2016-17, 117 complaints were handled, out of which 71 complaints were carried to a logical conclusion and the remaining 46 complaints are under various stages of investigation. Appropriate disciplinary action has also been initiated wherever necessary.
20.4 Vigilance Awareness Week and Workshops
During 2016-17, 11 preventive vigilance workshops were conducted at various projects/ places in which 477 employees participated. Vigilance Awareness Week was observed from October 31, 2016 to November 5, 2016 in all the projects and stations/ establishments of your Company.
The focus of Vigilance Awareness Week was ÂPublic Participation in Promoting Integrity and eradicating CorruptionÂ. 72,380 pamphlets were distributed containing Citizens Pledge in bilingual at all locations of Projects and Regional Headquarters all over the country. 45 links were provided for e-pledges to be placed on intranets of all projects/Subsidiaries and Joint Ventures. 32 workshop/sensitization programmes were conducted at various locations of Projects and Regional Headquarters. A total no. of 165 competitions (debates, quiz etc.) held for employees and families at various locations of Projects and Regional Headquarters all over the country were conducted.
Outreach activities were conducted in 48 Colleges/Universities in 17 States in which 3,297 no. of students participated. Similarly, outreach activities were conducted in 127 schools in 17 states in which 11,922 students participated. 19 Customer Grievance Redressal Camps were organized at Projects in which vendors concerns and suggestions were discussed and noted. Use of Social Media, Facebook, Twitter & LinkedIn were made for the purpose.
21. REDRESSAL OF PUBLIC GRIEVANCES
Your Company is committed for resolution of public grievance in efficient and time bound manner. ED (Human Resources) has been designated as Director (Grievance) to facilitate earliest resolution of public grievances received from President Secretariat, Prime Minister's Office, Ministry of Power etc.
In order to facilitate resolution of grievances in transparent and time bound manner, Department of Administrative Reforms & Public Grievances, Department of Personnel & Training, Government of India has initiated web-based monitoring system at www.pgportal.gov.in
Mar 31, 2016
Dear Members,
The Directors are pleased to present the 40th Annual Report on the
business and operations of the Company along with audited financial
statements for the year ended March 31, 2016.
Financial Year 2015-16 has been yet another year of achievements for
your Company. With the addition of 2,255 MW capacity (including 445 MW
through Subsidiary Companies) during the year, total installed capacity
of your Company (including subsidiaries & JVs) as on 31.03.2016 was
46,653 MW.
With the commissioning of Anantpur Solar PV unit of 250 MW and takeover
of Patratu Thermal Power Plant of 325 MW after 31.03.2016, capacity of
your Company has become 47,228 MW as on 31.07.2016.
Major highlights for the year 2015-16 are:
- Power projects of 2,255 MW were commissioned.
- Declared 1,960 MW Power Projects on commercial generation.
- PLF of 78.61% as against all India PLF of 62.29% with three NTPC
stations recording more than 90% PLF and 11 stations (including JV) in
top 25 stations of the country.
- Excellent MOU rating by Government of India for the year 2014-15.
- Capital expenditure (CAPEX) for the year 2015-16 was Rs. 25,959.60
crore (Stand-alone) as against the MoU target of Rs. 23,000.00 crore.
Achieved Group Capex of Rs. 32,090.89 crore during FY 2015-16 against
Rs. 28,289.56 crore during FY 2014-15.
- 100% realization of current bills from customers.
- Revenue from operations (Net) was Rs. 70,506.80 crore and total
revenue was Rs. 71,696.07 crore.Net Profit after Tax (PAT) wasRs.
10,242.91 crore.
- Dividend of Rs. 3.35 per share comprising interim dividend of Rs.
1.60 per equity share paid in February 2016 and recommended final
dividend of Rs. 1.75 per equity share for the year 2015-16, subject to
approval of the shareholders.
- Cash contribution of Rs. 4,113.30 crore to Government of India''s
exchequer through dividend, dividend tax, income tax and wealth tax in
the financial year 2015-16.
- Market capitalization of Rs. 1,06,242.81 crore as on 31.03.2016.
- Construction of about 29,000 toilets in schools under Swachh Bharat-
Swachh Vidyalaya Abhiyan.
- Planted approx. 5.25 lac trees during 2015-16 to mitigate the GHG
emissions arising out of plant operations, thereby bringing total to
about 2.3 crore planted trees till end of 31.03.2016.
- About 8 crore bricks produced by fly ash brick plants of NTPC
stations, which are being utilised in plant and township.
- Honoured with ASSOCHAM 1st Corporate Governance Excellence Award in
listed PSUs category for the year 2014- 15.
- Ranked No. 2 Independent Power Producer and Energy Trader Globally in
the Platts Top 250 Global Energy Company Rankings 2015.
- Adjudged 4th among the Asian electric utilities in 2016 rankings as
per Forbes Global 2000.
- Honoured with Dun & Bradstreet Corporate Awards 2016 for best
performing Company in India in Power Sector.
- For the year 2016, NTPC has been adjudged as the Best Company to work
in the Public Sector Category in a study carried out by Great Place to
Work and the Economic Times.
- Bagged Golden Peacock Award for Excellence in Training from Institute
of Directors for the year 2016.
You will appreciate the fact that the company recorded growth and
excellent performance despite numerous challenge before the sector.
1. FINANCIAL RESULTS (STAND ALONE)
2015-16 2014-15
Particulars Rs. Crore US $ Mn* Rs. Crore US $ Mn*
Revenue
Net Revenue from
Operations (including
Energy Sales,
Consultancy, 70,506.80 10,539.13 73,236.94 10,947.23
Energy consumed
internally)
Other income 1,189.27 177.77 2,100.42 313.96
Total Revenue 71,696.07 10,716.90 75,337.36 11,261.19
Expenses
Fuel 43,793.25 6,546.08 48,833.57 7,299.49
Employee benefits
expense 3,609.32 539.51 3,620.71 541.21
Finance costs 3,230.36 482.86 2,743.62 410.11
Depreciation and
amortization expense 5,425.32 810.96 4,911.65 734.18
Generation,
administration &
other expenses 5,787.39 865.08 4,911.28 734.12
Prior period items (net) (196.15) (29.32) (333.83) (49.90)
Total expenses 61,649.49 9,215.17 64,687.00 9,669.21
Profit before tax and
rate regulated
activities 10,046.58 1,501.73 10,650.36 1,591.98
Add: Regulatory Income/
(Expenses) 12.09 1.81 (103.71) (15.50)
Profit before tax 10,058.67 1,503.54 10,546.65 1,576.48
Tax expense (184.24) (27.54) 255.79 38.23
Profit for the year 10,242.91 1,531.08 10,290.86 1,538.25
Appropriations: 2015-16 2014-15
Rs. Crore US $ Mn* Rs. Crore US $ Mn*
Transfer to bonds/
debentures redemption
reserve 1,284.13 191.95 1,156.19 172.82
Transfer to general
reserve 6,000.00 896.86 7,000.00 1,046.34
Transfer to CSR reserve - - 78.30 11.70
Transfer to capital
reserve 0.11 0.02 0.12 0.02
Interim dividend 1,319.28 197.20 618.42 92.44
Proposed dividend 1,442.96 215.69 1,442.96 215.69
Tax on dividend 558.25 83.45 417.40 62.39
*1US $= Rs. 66.90 as on March 31, 2016
2.
2.1 OFFER FOR SALE BY THE GOVERNMENT OF INDIA TO THE PUBLIC
Offer for Sale of 5% Equity Share Capital of the Company by the
Government of India was made in terms of CCEA''s approval in May 2015.
The offer was opened on 23.02.2016 for non-retail investors and on
24.02.2016 for retail investors. Non-retail investors were allowed to
place their bids for 80% of unreserved portion and retail investors had
reserved portion of 20%. The indicative price was Rs. 122.22 per equity
share which was above the floor price (Rs. 122 per equity share) and
cut-off price was Rs. 122.05.
Consequent upon sale of 41,22,73,220 shares by Government of India, the
equity holding of GOI in NTPC was reduced to 69.96% of the paid-up
capital from 74.96%. An amount of Rs. 5,014.55 crore exclusive of STT
was garnered through Offer for Sale by the Government of India.
2.2 OFFER FOR SALE BY THE GOVERNMENT OF INDIA TO THE EMPLOYEES
A total of 2,06,13,661 shares were offered to employees, being 5% of
stake sold by the Government of India in February 2016. These shares
were offered to the employees at Rs. 115.90 per equity share i.e. at 5%
discount to OFS price.
10,826 employees participated in the offer and applied for 1,75,82,590
shares being 85.3% of the shares offered under Employee OFS. An amount
of Rs. 203.78 crore was garnered through Offer for Sale for Employees
by the Government of India.
With the above Offer for Sale to Employees, the holding of Government
of India has further reduced to 69.74 %.
3. DIVIDEND
3.1 Interim and Final Dividend:
Your company paid interim dividend of Rs.1.60 per equity share in
February 2016 and the Board of your Company have recommended a final
dividend of Rs.1.75 per equity share for the year 2015-16. With this,
the total dividend for the year is Rs.3.35 per equity share of Rs.10/-
each. In the year 2014-15, the total dividend paid was Rs.2.50 per
equity share of Rs.10/- each.
The dividend payout is 26.97% and the total dividend payout including
dividend tax is 32.42% of profit after tax. The final dividend shall
be paid after your approval at the Annual General Meeting.
The dividend has been recommended in accordance with your Company''s
policy of balancing dividend pay-out with the requirement of deployment
of internal accruals for its growth plans.
4. OPERATIONAL PERFORMANCE
During the year, the power stations of your Company generated 241.98
BUs (263.42 BUs including JVs& Subsidiaries) of electricity (including
solar and hydro power) which was 21.95% (23.90% including generation by
JVs) of the total power generated in India (without Bhutan import)
registering an increase of 0.30% (1.09% including JVs & Subsidiaries)
over the previous years'' generation of 241.26 BUs. Generation
contributed by hydro stations was 2.308 BUs.
The total generation contributed by coal stations is 230.64 BUs during
the year against generation of 229.55 BUs last year registering a
growth of 0.5%. Generation from coal based units could have been still
higher but due to less generation schedule there was opportunity loss
of 37.76 BUs. The coal based stations operated at average Plant Load
Factor (PLF) of 78.61% (All India PLF 62.29%) and average Availability
Factor of 88.06% on bus bar during the year. The generation loss on
account of coal shortage was brought down to 0.18 BUs in the current
year from 8.895 BUs in FY 2014-15.
During the year, 3 coal based stations out of 17 (commercial Stations)
achieved more than 90% PLF and ranked as the Top 3 stations in the
country. 11 stations (including JV) of your Company are in top 25
stations in the country.
The gas stations having a capacity of 4,017 MW achieved annual
generation of 8.870 BUs at a PLF of 25.14% as against 11.588 BUs last
year mainly due to less generation schedule which accounted for an
opportunity loss of 25.529 BUs. The declared capacity of gas based
stations for the year was 97.30% as compared to 92.18% during previous
year.
5. COMMERCIAL PERFORMANCE
5.1 Billing and Realisation
Your Company has realized 100% of its current bills raised for energy
supplied in 2015-16, thus achieving this feat for the 13th consecutive
year.
Most of the customers were making their payments within 60 days of
billing and had availed rebates as per Company''s Rebate Scheme.
Beneficiaries have established and are maintaining Letter of Credits
(LCs) at 105% of the average monthly billing.
Apart from LCs, payment of dues is secured by Tri- partite Agreements
(TPAs) signed amongst the State Governments, Government of India and
Reserve Bank of India. In terms of TPAs, any default in payment by the
Discoms of a State can be recovered directly from the account of
respective State Governments with RBI. The TPAs are valid upto
31.10.2016. Most of the States have agreed for extension of existing
TPA, RBI has also given its no objection for the same. Extension of TPA
is under consideration by the Ministry of Power.
5.2 Rebate Scheme for realization of dues:
In order to encourage early and full realization of dues, your Company
has revamped ''Rebate Scheme'' for the year 2016-17. In the Scheme for
2016-17, 2% rebate shall be allowed for amounts credited to the account
of Company for any advance payment and payments made till 8th day of
the billing month. From 9th day of the billing month till 30th day of
the month next to billing month, rebate on amounts credited to the
account of the Company shall gradually reduce from 1.95% to 0% on 31st
of the month next to the billing month. An additional rebate of 0.1% of
the monthly billing would be allowed in all months where a customer
maintains monthly LCs.
5.3 Commercial Capacity:
The following units were declared commercial during the year 2015-16,
adding 1,960 MW to commercial capacity of your Company:
Project/ Unit Capacity COD*
(MW)
NTPC Units- Coal Based (I)
Vindhyachal -V, Unit# 13 500 30.10.2015
Barh-II, Unit#5 660 18.02.2016
Total (I) 1,160
NTPC Units - Hydro (II)
Koldam, Unit#1 to 4 800 18.07.2015
Total (II) 800
Total Capacity declared 1,960
commercial during
2015-16(I) (II)
* COD- Commercial Operation Date
In 2016-17, 250 MW of Bongaigaon Unit#1 and 200 MW Anantpur Solar Power
Plant have been declared commercial making commercial capacity of
Company as on 30.06.2016 as 45,878 MW (including JVs and Subsidiaries)
as under:
Owned by NTPC MW
Coal based projects 34,425
Gas based projects 4,017
Renewable Energy Projects 310
Hydro Projects 800
Sub-total 39,552
Joint Ventures & Subsidiaries
Coal based projects 4,359
Gas based projects 1,967
Sub-total 6,326
Total 45,878
5.4 Tariff Related Matters:
In FY 2015-16, your Company has been able to reduce Energy Charge Rate
significantly through various measures such as reduced consumption of
imported coal, rationalization of coal transportation across its
various stations. Tariff petitions with Central Electricity Regulatory
Commission (CERC) have been filed for all the operating stations for
determination of tariff for the period from 01.04.2014 to 31.03.2019.
Hearing on these petitions had started and orders will be issued after
completion of hearings.
5.5 Power Purchase Agreements:
Your Company has signed Power Purchase Agreements for Telangana
(Phase-I 1600 MW), Patratu (JV with Jharkhand State Electricity Board -
2725 MW) and Solar Capacity of 760 MW (comprising Anantpur -250 MW,
Mandsaur- 250 MW and Bhadla - 260 MW).
5.6 Strengthening Customer Relationship:
Customer Relationship Management (CRM) initiative has been taken by
your company towards strengthening relationship with the customers.
This is also reflected in the Core Values of your Company (BE
COMMITTED) which emphasizes ''Customer Focus'' as one of the core values
of Company. Under CRM, your Company has designed and executed several
structured activities with the objective of sharing of experiences and
best practices with the customers, capturing the feedback and
expectations. Based on the feedback received from the customers, the
Company provides various support services to them and identifies
potential areas of cooperation and sharing of others'' best practices.
During the year 2015-16, 62 such services were provided to the
customers.
Your Company offers training programs to the representatives of
beneficiary companies at Power Management Institute (PMI) on free of
cost basis. During the year 2015-16, 124 participants from various
customer organizations attended training in 73 programs conducted by
PMI. Besides above, your Company has put in place a Customer
Satisfaction Index (CSI) Survey for gathering customers'' feedback and
responding to their requirements. The CSI survey was revamped in
2015-16 to include feedbacks of the Grid Operators with the objective
of understanding the view points of grid operators also. This modified
Customer and Grid Operator Satisfaction Index Survey has been conducted
in 2015-16.
As a part of UDAY Scheme, your Company is helping state generating
companies to improve their operational efficiency and reduce the cost
of generation. With this objective, two workshops were conducted by
your Company with representatives of the Gencos of various states.
5.7 Power Trading in Power Exchange:
Your Company has commenced trading of the Un- requisitioned Surplus
(URS) Power in the Power Exchange through its trading arm NVVN from
June 2016. As per the amended Tariff Policy, gains from these
transactions will be shared in the ratio of 50:50 with the
beneficiaries whose URS is sold.
6. INSTALLED CAPACITY
During the year 2015-16, your Company added 2,255 MW to its installed
capacity as per details given below
Project/ Unit installed Capacity
(MW)
NTPC owned
Coal Based Power Projects
Vindhyachal -V, Unit#13 500
Bongaigaon, Unit#1 250
Mouda-II, Unit#3 660
Hydro Power Projects
Koldam Hydro, Unit#3 and 4 400
Total NTPC owned 1,810
Under JVs & Subsidiaries (Coal Based Power Projects)
Kanti (subsidiary of NTPC in JV with 195
BSPGCL), Unit#4
BRBCL (subsidiary of NTPC in JV with 250
Ministry of Railways)
Total by JV & Subsidiaries 445
Total Addition during FY 2015-16 2,255
With above capacity addition during 2015-16, capacity added in the
first four years of 12th Plan Period has reached 9,550 MW against the
target of 11,920 MW for 12th Plan Period (as per CEA).
The total installed capacity of the NTPC Group as on 31.03.2016 has
become 46,653 MW (44,398 MW as on 31.03.2015) as tabulated below:
Owned by NTPC MW
Coal based projects 35,085
Gas based projects 4,017
Renewable Energy 110
Projects
Hydro Projects 800
Sub-total 40,012
Joint Ventures & Subsidiaries
Coal based projects 4,674
Gas based projects 1,967
Sub-total 6,641
Total 46,653
With the commissioning of Anantpur Solar PV unit of 250 MW and addition
of Patratu Thermal Power Plant of 325 MW after 31.03.2016, capacity of
your Company has become 47,228 MW as on 31.07.2016.
7. CAPACITY ADDITION PROGRAM
Your Company has adopted a multi-pronged growth strategy which includes
capacity addition through green field projects, brown field expansions,
expansion through joint ventures and acquisitions, towards its journey
to achieve its vision to become world''s largest and best power producer
powering India''s Growth. In addition to furthering capacity addition
through Coal based power projects, your Company has been pursuing
enhancement of its power generation portfolio through Hydro and
Renewable Energy projects.
7.1 Projects under Implementation
Your Company''s various projects having aggregate capacity of 24,009 MW
including 4,050 MW being undertaken by Joint Venture and subsidiary
companies are under implementation at 23 locations across length and
breadth of the country as on 31.03.2016. This includes 22,430 MW
through coal based projects, 1,579 MW through renewable energy
projects, comprising 811 MW through hydro capacity, 8 MW small hydro
project and 760 MW of solar power PV projects. The details of such
projects are as under:
Ongoing Projects as on 31.03.2016
Capacity (MW)
I. NTPC owned:
A. Coal Based Projects
1. Bongaigaon, Assam 500
2. Barh-I, Bihar 1,980
3. Lara-I, Chattisgarh 1,600
4. North Karanpura, Jharkhand 1,980
5. Kudgi-I, Karnataka 2,400
6. Gadarwara-I, Madhya Pradesh 1,600
7. Mouda-II, Maharashtra 660
8. Solapur, Maharashtra 1,320
9. Darlipalli, Odisha 1,600
10. Unchahar-IV, Uttar Pradesh 500
11. Tanda-II, Uttar Pradesh 1,320
12. Khargone, Madhya Pradesh 1,320
13. Telangana Phase-I, Telangana 1,600
Sub Total (A) 18,380
B. Hydro Electric Power Projects (HEPP)
14. TapovanVishnugad, Uttarakhand 520
15. LataTapovan, Uttarakhand@ 171
16. Rammam Hydro, West Bengal 120
17. Singrauli CW Discharge, Uttar Pradesh 8
Sub Total (B) 819
C. Solar Power Projects
18. Anantpur Solar PV, Andhra Pradesh* 250
19. Mandsaur, Madhya Pradesh 250
20. Bhadla, Rajasthan 260
Sub Total 760
Total I (A) (B) (C) 19,959
II Projects under JVs & Subsidiaries Coal Based Projects
21. Nabinagar- JV with Railways, Bihar 750
22. Nabinagar, JV with BSPGCL, Bihar 1,980
23. Meja, JV with UPRVUNL, Uttar Pradesh 1,320
Total II 4,050
III Total On-Going Projects as on 24,009
31.03.2016 (I) (II)
*Subsequently, 200 MW unit of Anantpur Solar has been commissioned on
01.04.2016 and 50 MW on 29.07.2016.
In addition, 250 MW of Rourkela Project by NSPCL had been awarded on
11.05.2016.
As on 31.07.2016, projects under construction (including JVs and
subsidiaries) are 24,009 MW.
@Work of Lata Tapovan HEPP stopped since 08.05.2014 as per orders of
the Supreme Court.
7.2 New Projects
Your Company has awarded Telangana, Phase-I (2X800 MW), Thermal Power
Project, Mandsaur (250 MW) and Bhadla (260 MW) Solar Projects during
the Financial Year 2015-16.
As on 30.06.2016, your Company has projects for 6,640 MW thermal
capacity and 768 MW renewable capacity under bidding.
7.3 New Technology & Initiatives
Your company has laid major stress on efficient utilization of
resources and use of technological advancements for improving energy
efficiency.
With emphasis on efficiency of electricity generation, your Company has
adopted ultra super critical technology by improving the steam
parameters for North Karanpura (3X660MW) to 260 kg/ cm2, 593oC/ 593oC.
For Khargone (2X660MW) and Telangana (2X800 MW) steam parameter are 270
kg/ cm2, 600oC/ 600oC. Plant efficiency of these units is expected to
increase by around 8% over that of a conventional sub-critical 500 MW
unit and 3% over conventional super critical units using similar coal.
Development of Advance Ultra Super Critical technology:
Your Company has entered into an MOU with BHEL and Indira Gandhi Centre
for Atomic Research (IGCAR) for indigenous development of advanced
ultra super critical technology. This will have enhanced efficiency of
around 46% and about 18% less CO2 emission per unit of power generation
as compared to 500 MW sub-critical thermal power units. The program is
targeted to deliver a plant having 800 MW unit with steam parameters of
310 kg/sq cm, 710oC/720oC. Approval of Phase-I (R&D phase) of the
project is under consideration of Government of India.
Environment Protection:
Your Company as pioneer in Environment monitoring has already installed
Ambient Air Quality Monitoring Stations (AAQMS) employing Nox, So, CO,
SPM & RSPM analysers in 20 operating stations in 2 x 009-10 and data is
made available to CPCB. Similarly, Continuous Emission Monitoring
System (CEMS) employing Nox, Sox, CO & CO2 analysers at stack for flue
gas have been installed recently in various operating stations. Your
company has recently introduced analysers for Mercury monitoring for
both AAQMS and CEMS.
7.3.1 Energy Conservation, Technology Absorption
Details of conservation of energy and technology absorption in
accordance with section 134(3) of the Companies Act, 2013 read with
Companies (Accounts) Rules, 2014 forms part of this report as
Annex-III.
7.4 Project Management
Your Company has established state-of-the-art IT enabled Project
Monitoring Centre (PMC) for facilitating fast track project
implementation. PMC has advanced features like Web-based Milestone
Monitoring System (Webmiles), Project Review and Internal Monitoring
System (PRIMS), etc. PMC facilitates monitoring of key project
milestones and also acts as decision support system for the management.
PMC is an integrated enterprise-wide collaborative system to facilitate
consolidation of project related issues and their resolution. Features
like SMS based information delivery; real time video capture, storage
and retrieval facility and video conference facility are extensively
utilized for project tracking, issues resolutions and management
interventions. PMC has helped in providing effective coordination
between the agencies and has provided enhanced/ efficient monitoring of
the projects leading to better and faster project implementation.
7.5 Capacity addition through Subsidiaries and Joint Ventures (JVs)
Besides adding capacities on its own, your Company develops power
projects through its subsidiaries and joint ventures, both in India and
abroad.
7.6 Hydro Power
Your Company now has its footprints in renewable energy by developing
hydro projects as detailed below:
A. Koldam HEPP (4x200 MW) is on the river Satluj at Barmana, District
Bilaspur (Himachal Pradesh). All the four units of 200 MW each have
been declared commercially operational on 18.07.2015. Since then the
project is running successfully.
B. Tapovan Vishnugad HEPP (4x130 MW) is on River Dhauliganga, District
Chamoli (Uttarakhand). Project is under construction with approximately
70% work completed. After completion of 7.65 km out of 12.08 km of Head
Race Tunnel (HRT), the contract was terminated on 09.01.2014. Award of
balance works of HRT placed on 09.03.2016. Construction of Barrage,
Switchyard and Electro-Mechanical & Hydro- Mechanical works are in
progress.
C. Lata Tapovan HEPP (3x57 MW) is just upstream of Tapovan-Vishnugad
HEPP. The work was stopped by Hon''ble Supreme Court through order dated
07.05.2014 for 24 Hydro Projects in the State of Uttarakhand including
Lata-Tapovan. The MOEF&CC constituted an expert body, which submitted
its report on 19.10.2015 and MOEF submitted the same in court on
05.11.2015, where Lata Tapovan had been recommended for implementation
with compliance of certain additional conditions. Your Company
submitted in Court on 19.11.2015 that the conditions recommended by
expert body shall be strictly complied. On the hearing held on
26.04.2016, Additional Solicitor General of India represented MOEF and
informed the Court that Lata - Tapovan Project must be implemented. The
matter is still to be decided by the Supreme Court. For National Board
of Wild Life (NBWL) Clearance for Tapovan- Vishnugad and Lata Tapovan
HEPPs, the proposal regarding redefining of Eco Sensitive Zone was
discussed in Uttarakhand State Cabinet Meeting and shall be forwarded
for MOEF&CC, GOI for its approval.
D. Rammam-III HEPP (3x40MW) This project is situated on river Rammam in
Teesta Basin, Darjeeling (West Bengal). Civil works of Barrage, Power
House, HRT& S/Y are in progress. The river has been diverted through a
diversion channel and the work in the river bed has been started for
construction of Barrage.
7.7 Capacity Addition through Renewable Energy Sources
Your Company is adding capacity through renewable sources of energy, to
broad-base its generation mix to ensure long term competitiveness,
mitigation of fuel risks and promotion of sustainable power
development.
7.7.1 Under Green Energy Commitment:
Your Company has committed to develop 10 GW of Renewable Energy
Projects under green Energy Commitment to Govt. of India.
Your Company has already commissioned 310 MW of solar projects as on
30th June 2016. 560 MW Solar Power Projects are under execution which
includes Mandsaur Solar (250 MW), Bhadla Solar (260 MW) and Anantpur
Solar (50 MW).
NITs have been issued for 1,750 MW of Solar PV projects to be set up in
the states of Andhra Pradesh and Karnataka.
7.7.2 National Solar Mission:
Your Company has been entrusted to develop 15 GW Solar PV through
National Solar Mission (NSM) Phase-II in three tranches between 2014-15
to 2018-19, where the Company will be the facilitator/trader between
Discoms and developers. Your Company will purchase power from the
developers and sell it to the Discoms. Under Tranche-I, 3000 MW of
Solar PV capacity upto 2016-17 has been planned. NITs for 3,000 MW of
Solar PV capacity to come up in the states of Andhra Pradesh,
Rajasthan, Karnataka, Telangana and Uttar Pradesh have been issued and
awards placed for 2,520 MW projects till 30th June 2016. The developers
have been selected through reverse auction.
8. STRATEGIC DIVERSIFICATION- INCREASING SELF- RELIANCE
8.1 In order to strengthen its competitive advantage in power
generation business, your Company has diversified its portfolio to
emerge as an integrated power major, with presence across entire power
value chain through backward and forward integration into areas such as
coal mining, power equipment manufacturing, power trading and
distribution.
Your Company continuously explores business opportunities through
market scanning and adopts new business plans accordingly.
8.2 The details of subsidiary companies engaged in business other than
in power generation are as under:
8.2.1 NTPC Electric Supply Company Limited (NESCL), a wholly owned
subsidiary was incorporated to foray into the business of distribution
and supply of electrical energy as a sequel to reforms initiated in the
power sector. The Company was implementing Rajiv Gandhi Gramin
Vidyutikaran Yojna (RGGVY) projects on turnkey basis and undertaken
turnkey execution of sub-stations for utilities and project management
consultancy.
The shareholders of NESCL have transferred existing business of deposit
and consultancy works under RGGVY from NESCL to NTPC on 01.04.2015.
This subsidiary had also dis-associated with the business of retail
distribution of power in various industrial parks developed by Kerala
Industrial Infrastructure Development Corporation (KINFRA), through its
Joint Venture Company namely KINESCO Power and Utilities Private
Limited, as the future prospects of the JV Company are bleak. The
shares held by NESCL had been purchased by KINFRA on 17.12.2015 and
thus NESCL had ceased to be the joint venture partner of KINESCO.
8.2.2 NTPC Vidyut Vyapar Nigam Limited (NVVN), a wholly owned
subsidiary is involved in power trading.
During the year 2015-16, the Company transacted business with various
State Electricity Boards spread all over the country and traded 12,766
MUs of electricity. The Company is designated Nodal Agency for
implementation of Jawahar Lal Nehru National Solar Mission Phase-I by
purchasing and selling of grid connected bundled solar power across the
country. NVVN has also been designated as the nodal agency for cross
border trading of electricity with Bhutan, Bangladesh and Nepal.
PPA was signed on 15.02.2016 between NVVN and Nepal Electricity
Authority (NEA) for supply of upto 80 MW power from Feb to Jun 16
through 400 KV Muzaffarpur- Dhalkabar transmission line. Power supply
to NEA started on 18th Feb 2016.
NVVN has paid dividend of Rs. 20 Crore to NTPC in FY 2015-16.
9. GLOBALISATION INITIATIVES
9.1 Trincomalee Power Company Limited (TPCL), a 50:50 joint venture
between your Company and Ceylon Electricity Board was formed to
undertake the development, construction, establishment, operation and
maintenance of a coal based electricity generating station of (2X250
MW) capacity at Trincomalee at Sri Lanka. EIA clearance was granted by
Central Environmental Authority (CEA) on 02.02.2016 with some specific
conditions. However, Secretary, Ministry of Power & Renewable Energy,
Govt. of Sri Lanka (GoSL) has requested Secretary (Power), GoI, to
form a Joint Working Group to explore the possibility of changing fuel
source of Power Project from Coal to LNG.
9.2 Bangladesh-India Friendship Power Company Private Limited, a 50:50
joint venture Company between NTPC and Bangladesh Power Development
Board (BPDB) was formed for developing a (2X660 MW) Coal based power
project (Maitree Super Thermal Power Plant) at Khulna Division, Rampal,
Bangladesh. EPC contract of the project except township had been
awarded to BHEL. Other activities are also in progress. An MoU has
been signed with Bangladesh Shipping Corporation (BSC) on 24.01.2016 to
explore the possibility of BSC taking up part/full coal logistics for
the Project.
10. CONSULTANCY SERVICES
Consultancy Wing of your Company offers services like Engineering,
Operation & Maintenance Management, Project Management, Contracts &
Procurement Management, Quality Management, Training & Development etc.
These services have been provided in international markets in Gulf
countries, Bangladesh, Nepal, Sri Lanka and Bhutan.
On international front, Consultancy Wing has been associated with
Trincomalee Power Company Ltd. As Owners'' Engineer for setting up their
(2x250 MW) Coal Based Power Project. It is also providing O&M
Management Services to (2X120 MW) Siddhirganj Peaking Power Plant of
Electricity Generation Company of Bangladesh under a World Bank funded
contract.
On the domestic front, Consultancy Wing has been effectively sharing
its expertise with State, Central PSUs and other clients. This includes
Owners Engineer Services to The Singareni Collieries Company Limited
for their coal based power project in Adilabad district, Telangana and
Project Monitoring Services to MPPGCL for (2x600MW) Shree Singaji TPP &
(2x250MW) Satpura TPP by deputing NTPC experts at site.
11. FINANCING OF NEW PROJECTS
The capacity addition programs shall be financed with a debt to equity
ratio of 70:30, in case of thermal and hydro projects and that of 80:20
in case of solar projects. Your directors believe that internal
accruals of the Company would be sufficient to finance the equity
component for the new projects. Given its low geared capital structure
and strong credit ratings, your Company is well positioned to raise the
required borrowings.
Your Company is exploring domestic as well as international borrowing
options including overseas development assistance provided by bilateral
agencies to mobilize the debt required for the planned capacity
expansion program.
The details of funding are discussed in the Management and Discussion
Analysis Report which forms part of this Report.
12. FIXED DEPOSITS
Your Company has discontinued the acceptance of fresh deposits and
renewals of deposits under Public Deposit Scheme with effect from
11.05.2013. As such, there were no deposits which were not in
compliance with the requirements of Chapter-V of the Companies Act,
2013
The details relating to deposits, as per the Companies Act, 2013 is as
under:
(a) [Accepted during the year Nil
(b) Remained unpaid or unclaimed as 6 Deposits
at the end of the year amounting to
Rs. 15.91 lakh*
(c) Whether there has been any default in repayment of deposits or
payment of interest thereon during the year and if so, number of such
cases and the total amount involved
(i) At the beginning of the year Nil
(ii) Maximum during the year Nil
(iii) At the end of the year Nil
* Pending for completion of legal formalities/ restraint orders/
non-receipt of claims.
13. FUEL SECURITY
13.1 During the year, the supply position of coal and gas is given as
under:
13.1.1 Coal Supplies
Your Company has entered into long term Fuel Supply Agreement with Coal
India Limited (CIL) and The Singreni Collieries Company Limited (SCCL)
for total Annual Contracted Quantity (ACQ) of 152.978 MMT & 11.2 MMT
respectively. The total ACQ of 164.2 MMT of coal from CIL & SCCL is
signed for 33,515 MW units already commissioned/ to be commissioned.
The Company also had a short-term Memorandum of Understanding (MOU)
with SCCL for supply of 3.5MMT of coal for Ramagundam, Simhadri and
Kudgi (start-up coal) stations for supply till March 2016. Short-term
MOU for one year had been signed with Eastern Coalfields Limited (ECL)
for supply of 5.5 MMT of coal. Another short term MOU signed with
Northern Coalfields Limited (NCL) in 2014-15, was extended till
31.03.2016, for supply of balance 2.0 MMT of coal to enhance coal
supply to non NCL linked stations as per requirement The coal supplies
for 2016-17 is tied up mainly through FSA and supplemental through MOU/
e-auction alongwith balance quantity or imported coal of last year.
During the year under review, your Company had made coal tie-up for
Barh Stage-II (2X660MW) units through MOU with CCL and ECL for 6.66
MTPA of coal at notified price, which helped stations to eliminate
usage of costly coal thereby bringing down the cost of generation. Your
Company was also allocated bridge linkages by Special SLC (LT) for
Barethi (4X660MW), Barh -II (2X660MW), Darlipalli (2X800MW), Tanda -II
(2X660MW), Lara -I (2X800MW), Kudgi -I (3X800MW) and Bilhaur (2X660MW)
projects. Your Company was issued Letter of Assurance for tapering coal
linkage for Telangana Phase-I (2X800MW) by WCL
13.1.2 Domestic Coal and Imported Coal
During 2015-16, your Company received 161.8 MMT of coal as against
167.4 MMT in 2014-15 marking a decrease of 3.3%.
Total domestic coal supply during 2015-16 was 152.3 MMT as against
151.1 MMT during 2014-15. Out of 152.3 MMT of coal, 145.2 MMT was from
Annual Contracted Quantity of coal.
The total coal supply from CIL was 138.5 MMT and from SCCL was 13.8
MMT.6.3 MMT of coal was procured through MOU during 2015-16.
During 2015-16, your Company imported 9.7 MMT (including SWAP) of coal
as against 16.4 MMT in 2014-15.Sipat station received 0.53 MMT of
domestic coal against swapping of imported coal with GSECL.
During the year under review, approx. 57.2% of coal (domestic and
international) was transported through merry-go-round (MGR) system of
your Company.
13.1.3 Sourcing of coal through E-auction
Your Company participated in one e-auction for Vindhyachal, Stage-V in
the year 2015-16 and approx. 1.88 LMT of coal had been allocated. Total
coal received through e-auction was 0.29 MMT during 2015-16 as compared
to 0.94 MMT during 2014-15.
13.1.4 Supply through Inland Waterways
During 2015-16, about 0.716 MMT imported coal has been supplied through
inland waterways to Farakka station under a Tripartite Agreement with
IWAI and service provider.
13.1.5 Rationalisation of Linkage
With the initiatives of Ministry of Power and Ministry of Coal,
Inter-Ministerial Task Force has recommended rationalization of linkage
for optimization of transportation cost and de-congestion of railway
network. In this respect your Company has rationalized the linkage of
Ramagundam and Simhadri during 2015-16. For Ramagundam, amendment to
FSA was signed on 21.01.2016 with SCCL for ACQ of 11.2 MMT (previous
ACQ-10.2 MMT) in lieu of FSA with MCL and SECL for ACQ of 0.5MMT each
for Simhadri reducing ACQ with MCL from 9.82 MMT to 8.32MMT and
corresponding quantity of 1.5MMT rationalized for ECL Estimated annual
saving in transportation cost taking Ramagundam and Simhadri together
is around Rs. 35.95 crore.
13.1.6 Swapping of coal with GSECL
Under swapping agreement with GSECL, Sipat station has received around
0.53 MMT of SECL coal with saving of around 150 crore on account of
railway freight.
13.1.7 Commencement of third party sampling, CIMFR
In the meeting held under the Chairmanship of Hon''ble Minister of State
(I/c) for Power, Coal & NRE on 28.10.2015, tripartite MOU between NTPC,
CIL and CSIR-CIMFR was finalized for sampling and analysis at loading
end. Member Power Utilities and CIMFR had also finalized the bilateral
MOU between Power Utility and CIMFR for sampling and analysis at
unloading end. These tripartite and bilateral MOUs have been signed.
Commercially binding bilateral and tri-partite agreements between NTPC,
CIL and CSIR-CIMFR have been signed on 12th- 13th July 2016 based on
the above mentioned MoUs to enable CIMFR to start sampling and analysis
in a phased manner.
CIMFR has started sampling at the loading points at NCL (Jayant,
Amlori, Dudhichua and Nigahi) supplying coal to Singrauli, Rihand and
Vindhyachal; SECL (Gevra and Dipika) supplying coal to Korba and Sipat,
MCL (Lingraj and Kaniha) supplying coal to Talcher-Kaniha and WCL (New
Majiri) supplying coal to Mouda with their own resources and facilities
from NTPC and the coal companies. For other cases, CIMFR will be taking
up sampling & analysis activities in phases.
This will help your Company in reducing the cost of generation as CIMFR
can ensure that the grade billed by coal companies is actually supplied
to stations of the Company.
13.2 Gas supplies
During 2015-16, your Company received 5.20 MMSCMD of gas and RLNG as
against 6.41 MMSCMD received during 2014-15. The gas off-take in
2015-16 included 4.92 MMSCMD of domestic gas, 0.06 MMSCMD of long-term/
spot RLNG and 0.22 MMSCMD of e-bid RLNG. Gas off-take was less due to
less availability of generation schedule on RLNG from the beneficiary
Discoms.
Your Company has Administered Price Mechanism (APM) gas agreements up
to the year 2021 and Panna-Mukta-Tapti (PMT) gas agreements up to the
year 2019 with GAIL India Limited. The agreement for non-APM gas with
GAIL is valid till November, 2016 and is likely to be extended further.
Further, Government of India came out with a unique scheme of
Ãtilisation of Gas Based Generation Capacity wherein RLNG was allocated
in reverse e-bidding with discounts/ tax waivers and with Power System
Development Fund (PSDF) support from GOI. Your Company participated in
Phase-II bidding under the scheme and successfully won and utilised the
allocated e-bid RLNG equivalent to ~90MW in Dadri and Auraiya gas
stations for the period of October 2015 to March 2016.
For additional gas requirement over and above the supplies under
long-term domestic gas/ RLNG agreements, your company has been making
arrangements for tie- up and supply of spot RLNG from domestic
suppliers on ''Reasonable Endeavour'' basis based on requirement and
availability from time and time. There has been no generation loss on
account of lack of availability of gas/ RLNG during the year.
13.3 Development of Coal Mining projects
Your Company had been allocated eight coal blocks, namely,
Pakri-Barwadih, Chatti-Bariatu, Kerandari, Talaipalli, Dulanga, Banai,
Bhalumuda and Mandakini-B by the Government of India. In addition,
Government of India has also allocated Kudanali-Luburi coal block
jointly to your company and J&K State Power Development Company Limited
(J&KSPDCL), with NTPC''s share of coal reserves in this block being two-
third. Joint Venture Agreement had been signed between NTPC and
J&KSPDCL on 15.06.2015 for formation of 67:33 joint venture company for
exploration, development and operation of the coal block.
Similarly, Banhardih coal block, allocated earlier to Jharkhand Urja
Utpadan Nigam Limited, has now been allocated to Patratu Vidyut Utpadan
Nigam Limited, a subsidiary company incorporated between NTPC and
Government of Jharkhand.
With about 7 billion metric tonnes of geological reserves estimated
from our own eight coal blocks, altogether your Company expects to
produce about 107 Million Metric Tonnes of coal per annum.
In Pakri-Barwadih mining operations have commenced from the western
quarry with effect from 17.05.2016. Mining operation is also expected
to start from the eastern quarry of this block shortly, after MOEF&CC
issues the amendment to the environment clearance. For coal
transportation from Pakri-Barwadih, Bandag-Hazaribagh'' Railway siding,
funded by NTPC, is now operational with commencement of coal
transportation from CCL''s Amarpali block to Barh Power Station of
company.
Your Company has progressed well in other coal blocks too. Subsequent
to the issuance of Allotment orders by Ministry of Coal, Government of
India, forest clearance for Dulanga Coal Block has been accorded by
MOEF&CC on 23.12.2015. NITs have been published for appointment of
Mine Developer-cum -Operator (MDO) for Talaipalli, Dulanga and
Chatti-Bariatu coal blocks and techno-commercial bids have been
received.
After completion of detailed exploration in Banai coal block,
Geological Report (GR) has been received from CMPDIL on 13.04.2016 and
is now under approval at Ministry of Coal. For Bhalumuda coal block,
detailed exploration has been completed and draft GR is under
finalization by CMPDIL. For Mandakini-B coal block, Company has awarded
a contract to CMPDIL for carrying out detailed exploration and for
preparation of GR and drilling activities have commenced. Your company
has initiated the process for acquisition of mining area land in these
three new blocks i.e. Banai, Bhalumuda and Mandakini-B.
The joint venture company, namely, CIL NTPC Urja Private Limited,
formed with Coal India Limited, is exploring development and operation
of washery reject-based FBC power plants near upcoming/ existing coal
washery of Coal India Limited.
13.4 Exploration Activities
In Cambay exploration block (CB-ONN-2009/5), held by your Company, as
operator with 100% participating interest drilling of all seven
exploratory wells have been completed and testing of wells is in
progress.
In the KG basin exploration block viz. KG-OSN-2009/4 where ONGC is the
operator and NTPC has 10% stake, the exploration activities are in
progress and ONGC has submitted a proposal to the Government of India
for reduction in minimum work programme as the permitted area of the
block for exploration has been reduced because of non-grant of defence
clearance. The other KG basin exploration block viz. KG-OSN-2009/1 and
the Andaman basin exploration block viz. AN- DWN-2009/13, where ONGC
was the operator and NTPC had 10% stake, had been relinquished to
Government of India as per the advice from Operator (ONGC).
14. BUSINESS EXCELLENCE: GLOBAL BENCHMARKING
To achieve higher levels of excellence, your company has developed and
adopted its own ''Business Excellence Model'' on the lines of globally
reputed Excellence Models such as Malcom Baldrige Model, USA and EFQM
Model of Europe.
This model has been deployed at our Business Units (Stations) and your
Company carries out assessment of generating stations using this
framework of excellence. The assessment process is aimed at
identifying the areas for enhancing stakeholders'' engagement,
accelerating critical processes and developing leadership potential.
The outcome of this model is identification of organizational
strengths, opportunities for improvement, issues of concern and best
practices.
In the financial year 2015-16, the 6th cycle of assessment was
completed in which 21 generating stations were assessed by a team of
certified and proficient assessors. Business Excellence Awards for Best
Performance to Ramagundam and motivational awards to Sipat and
Talcher-Kaniha stations were presented by the Union Minister of Power,
GOI, in the Indian Power Stations Conference- 2016 held at New Delhi.
Contemporary quality initiatives and techniques like Quality Circles,
Professional Circles, 5S, integrated management system (IMS) etc have
been deployed across the organization for continuous improvement. Our
Quality Circle teams of workmen have been consistently representing
your Company at national and international Quality Circle conventions
and bringing many laurels. In the year 2015-16, Aqua Quality Circle
from Rihand station represented your Company in the International
Convention of Quality Control Circle (ICQCC-2015) held at Changwon,
South Korea.
15. RENOVATION & MODERNISATION
In the present scenario of severe resource constraint Renovation and
Modernization (R&M) of power plants is considered to be a
cost-effective option which can complement new capacity addition as R&M
schemes have a shorter gestation period with all clearances, land,
water, fuel and beneficiaries available. To this end, R&M is being
carried out for the purpose of life extension of units, performance
improvements, availability and reliability improvement and improved
environment compliance. It ensures safe, reliable and economic
electricity production by replacement of worn-out, deteriorated or
obsolete electrical, mechanical, instrumentation, controls and
protection system by state-of- the-art equipment
Keeping in view the ageing of the fleet over the years, investment
approval accorded till date for R&M in 19 stations (Coal & Gas based)
is Rs.11,148.80 crore. As against this, cumulative expenditure till
31.03.2016 is Rs. 6,794.36 crore. Out of this, R&M capital expenditure
in the financial year 2015-16 was Rs. 924.37 crore
With a view to removing technological obsolescence, renovation of
control & instrumentation (C&I) has been taken up in 9 stations at
Singrauli-I (5X200MW) & Singrauli - II (2X500 MW), Korba -I (3X200MW) &
Korba - II (3X500 MW), Ramagundam -I (3X200MW) & Ramagundam - II
(3X500MW), Farakka-II (2X500 MW), Dadri Thermal- I (4X210MW), Unchahar-
I (2X210MW), Talcher STPS-I (2X500MW), Kahalgaon-I (4X210 MW) and
Rihand - (2X500 MW). During 2015-16, C&I R&M was completed in one 500
MW unit of Singrauli, (3X200 MW) and (3X500 MW) units of Korba, two 200
MW units and three 500 MW units of Ramagundam, four units of 210 MW of
Dadri Thermal, two units of 210 MW of FGUTPS, both 500 MW units of
Talcher STPS, 500 MW unit of Farakka, one 210 MW unit of Kahalgaon and
one 500 MW unit of Rihand and one 500 MW unit of Talcher STPS. On
completion of these schemes, C&I systems in these stations have now
been brought nearly on par with the new builds.
Owing to very high operating temperatures, R&M of Gas Turbines
including their Control & Instrumentation is essential after around 15
years of life. By 31.03.2016, this activity was completed in all 4 Gas
Turbines (GT) each in Kawas and in Auraiya and all 3 GTs in Gandhar.
R&M activity for GT, C&I, ST, WHRB in Anta, Auraiya and R&M of GT in
Gandhar, R&M of C&I systems for Dadri gas is in progress. As a
responsible corporate citizen, it has always been your Company''s
endeavour to ensure low levels of pollution from its power stations.
With a view to maintain a clean atmosphere in and around the power
plant, for reducing particulate emission levels from generating
stations, Renovation and Retrofitting of Electrostatic Precipitator
(ESP) packages have been awarded and work is in progress in Singrauli-I
& II (5X200MW 2X500MW), Farakka-I (3X200MW), Unchahar-I (2X210MW),
Korba-I & II (3X200MW 3X500MW), Rihand-I (2X500MW), Vindhyachal-I & II
(6X210MW 2X500MW), Talcher STPS -I & II (2X500MW 4X500MW) and Talcher
TPS-II (2X110MW). During 2015-16, ESP R&M of two units of 210MW and two
units (2X210MW) of Badarpur, one unit each of Talcher (110MW) and
Rihand (500MW) has been completed. Moving Electrode Electrostatic
Precipitator (MEEP) technology is being adopted for the first time in
the country in Rihand Stage-I (Unit#1) and work is in advanced stage.
To derive benefits of the latest advancements in technology, in
cooperation with CEA, EEC/VGB/ Steag Germany, a study has been taken up
on ESP performance improvement using CFD modeling in Unit#6 (500MW) of
Ramagundam. CFD modeling is completed and are planned for
implementation. In yet another initiative, under the aegis of Ministry
of Power, RLA of Unit#3 of 210 MW of Dadri Thermal station was done by
JCOAL and draft report has been submitted by them. This is an
identified activity under the ongoing CEA-JCOAL cooperation as per
India-Japan Energy Dialogue (IJED).
16. HUMAN RESOURCE MANAGEMENT
16.1 Your Company takes pride in its highly motivated and competent
Human Resource that has contributed its best to bring the Company to
its present heights. The productivity of employees is demonstrated by
increase in generation per employee and reduction of Man-MW ratio year
after year. The over-all Man-MW ratio for the year 2015-16 excluding
JV/subsidiary capacity is 0.55 and 0.51 including capacity of JV/
Subsidiaries. Generation per employee was 11.19 MUs during the year
based on generation of NTPC stations.
The total employee strength of the company (including JV/ subsidiary)
stood at 23,133 as on 31.3.2016 against 24,067 as on 31.3.2015.
FY 2015-16 FY 2014-15
NTPC
Number of employees 21,633 22,496
Subsidiaries & Joint Ventures
Employees of NTPC in 1,500 1,571
Subsidiaries & Joint Ventures
Total employees 23,133 24,067
The attrition rate of the NTPC executives (including Executive Trainees
and those posted in Subsidiaries and JVs) during the year was 1.05%.
16.2 Employee Relations
Employees are the driving force behind the sustained stellar
performance of your company over all these years of company''s
ascendancy. As a commitment towards your Company''s core values,
Employees'' Participation in Management was made effective based on
mutual respect, trust and a feeling of being a progressive partner in
growth and success. Communication meetings with unions and
associations, workshop on production and productivity, etc were
conducted at projects, regions and corporate level during the year.
Both, employees and management complemented each other''s efforts in
furthering the interest of your company as well as its stakeholders,
signifying and highlighting over-all harmony and cordial employee
relations prevalent in your Company.
16.3 Safety and Security
Occupational Health and safety at workplace is one of the prime
concerns of Company Management and utmost importance is given to
provide safe working environment and to inculcate safety awareness
among the employees. Your company has a 3-tier structure for
Occupational Health and Safety management, namely at Stations/
Projects, at Regional Head Quarters and at Corporate Centre. Safety
issues are discussed in the highest forum of management like Risk
Management Committee (RMC), Management Committee Meeting (MCM), ORTs,
PRTs etc. All of your Company''s stations are certified with
OHSAS-18001/IS-18001. Regular plant inspection and review with Head of
Project/Station is being done. Internal safety audits by safety
officers every year and external safety audits by reputed organizations
as per statutory requirement are carried out for each Project/Station.
Recommendations of auditors are regularly reviewed and complied with.
Height permit and height check list are implemented to ensure safety of
workers while working at height. Adequate numbers of qualified safety
officers are posted at all units as per statutory rules/provisions to
look after safety of men & materials. For strict compliance &
enforcement of safety norms and practices by the contractors, safety
clauses are included in General Conditions of Contract/ Erection
Conditions of Contract
Detailed emergency plans have been developed and responsibilities are
assigned to each concerned to handle the emergency situations. Mock
drills are conducted regularly to check the healthiness of the system.
Most of your Company''s plants have been awarded with prestigious safety
awards conferred by various Institutions/ Body like Ministry of Labour
& Employment-Govt. of India, National Safety Council, Institute of
Directors, Institution of Engineers (India), in recognition of
implementing innovative safety procedures and practices.
Security: Your Company recognizes and accepts its responsibility for
establishing and maintaining a secured working environment for all its
installations, employees and associates. This is being taken care of by
deploying CISF at all units of your Company as per norms of MHA.
Concrete steps are being taken for upgrading surveillance systems at
all projects/ stations by installing state-of-the-art security systems.
16.4 Training and Development
As the power leader of India, your Company has also always endeavoured
to be in the forefront of creation and dissemination of knowledge. Its
sustained performance leadership has, to a large extent been achieved
on the platform of comprehensive training and development programs for
its employees. A large number of professionals from other organizations
in the power sector have also benefitted immensely from the training
and development programs of your Company. Many organisations in the
country adopt practices and systems developed by the Company.
The learning activities are being driven by a comprehensive
infrastructure comprising Power Management Institute (PMI) at the
corporate level and Employee Development Centers (EDCs) at sites
providing learning on management, technical competencies and
leadership. At the foundation of the learning structure are the EDCs at
Projects and Stations. EDCs take care of training requirements of non-
executives and junior level executives at projects and stations. The
training requirements of middle and senior level executives are catered
to by PMI, the apex learning centre of your Company. This learning grid
enables us to provide learning solutions for practically every aspect
of the power value chain, covering the strategic, tactical and
operational facets right down to the shop floor.
Initiatives taken by PMI:
(i) During 2015-16, PMI conducted almost 400 training programmes
covering nearly 7,700 professionals, logging a total of approximately
26,000 training mandays.
(ii) Post Graduate Certificate in Project Management (PGCPM) programme
in collaboration with IIM-Indore for developing long term project
management competency. Under this initiative, executives from public
and private sector utilities/companies from various States have been
given skill based training to augment their capacity addition
programmes.
(iii) One week exposure at Wharton School in June-July, 2015 under the
programme Strategic Management Initiative for Leadership Effectiveness
(SMILE), after a 3 days intervention in New Delhi for top management
group of 22 General Managers and Executive Directors of NTPC to
revitalize their perspective and re-align their strategic orientation
for sustainable leadership practices.
(iv) Special programs on Enterprise Risk Management for senior level
executives.
(v) Total 6 weeks'' duration programme during July- October, 2015 for
ABB at Abu Dhabi on Power Plant Operation and Simulator Training for
Combined Cycle Gas Power Plant.
(vi) Conducted 62 training programs through Web conferencing platform
at workstations during 2015-16.
(vii) Developed 20 e-learning packages for end users of ERP-SAP.
(viii) Conducted several customized training programmes for the benefit
of various State utilities, CPSEs and private sector companies. In all,
1,084 participants from other organizations got trained at PMI during
2015-16.
(ix) Opened "NTPC School of Business" for running 15 months flagship
program titled "Executive Post- Graduate Diploma in Management" (EPGDM)
from August 2015.
(x) Implementing skill development initiatives of NTPC for the
country''s youth as a nodal agency. Till now, your Company has adopted
18 ITIs and set up 8 new ITIs near its power stations, thus associating
with total 26 ITIs. These initiatives by your Company resulted in
creation of total 1,831 new seats by starting of new trades/units.
Cumulatively, a total of 26,448 students benefitted from this
initiative till 31.03.2016. For these ITI students, your Company
organised 47,992 mandays of industrial training/plant visits. These
skill development initiatives resulted in your Company being conferred
the ASSOCHAM "Award for Vocational Training 2015-16".
(xi) Your Company has partnered with the Ministry of Skill Development
and Entrepreneurship, Government of India, to contribute in realising
the vision of "Skill India".
(xii) 10 new programs on Safety have been introduced in PMI''s Training
Calendar for 2016-17.
(xiii) A number of programs for establishing Solar and Wind energy
projects and for protection of Environment have been added.
17. SUSTAINABLE DEVELOPMENT (SD)
Your company has adopted the ''triple bottom-line'' approach, recognising
People, Planet and Profit as the primary pillars of corporate
sustainability and believes that Development should not endanger the
natural systems. Your company is preparing Sustainability Report based
on the Global Reporting Initiative (GRI). Sustainability reporting has
helped us in measuring and monitoring our Company''s performance. It has
served as an important management tool helping us re-look at our
Company''s systems, policies and procedures.
Your company has developed a policy and in accordance with a
Sustainable Development Plan prepared for FY 2015-16. The main focus
area of Sustainable development Plan covers waste management water
management bio- diversity, promotion of renewable energy. Major
activities carried out under this plan included plantation of trees in
and around NTPC, installation of rooftop of Solar PV on public
utilities buildings and on schools, installation of solar powered pump,
rain water harvesting, rehabilitation of water bodies, installation of
air quality monitoring systems in major cities, studies on impact
assessment and carrying capacity river basin. A major activity for
conservation of Olive Ridley Sea Turtles has been taken up. Business
Responsibility Report is attached as Annex-X and forms part of the
Annual Report.
A total expenditure of Rs. 33.85 Crore was incurred on these SD
projects during Financial Year 2015-16.
17.1 Inclusive Growth -Initiatives for Social Growth
17.1.1 Corporate Social Responsibility (CSR):
Your Company commits itself to contribute to the society, discharging
its corporate social responsibilities through initiatives that have
positive impact on society at large, especially the community in the
neighborhood of its operations by improving the quality of life of the
people, promoting inclusive growth and environmental sustainability.
Focus areas of CSR & Sustainability activities are Health, Sanitation,
Drinking Water, Education, Capacity Building, Women Empowerment, Social
Infrastructure Development, support to Differently-abled Person and
activities contributing towards Environment Sustainability. During the
year special thrust has been given to the "Swachh Vidyalaya Abhiyan"
making available about 29,000 toilets in government schools for the
benefit of students, especially girl children, covering 82 Districts in
17 States across the country. Your Company spent Rs. 491.80 Cr during
the financial year 2015-16 towards CSR initiatives. Amount spent i.e.
Rs. 491.80 Cr includes unspent amount of Rs. 78.30 crore for the year
2014-15.
17.1.2 NTPC Foundation
NTPC Foundation is engaged in serving and empowering the
differently-abled and economically weaker sections of the society.
Details of expenditure incurred and initiatives undertaken by the
Company under CSR are covered in the Annual Report on CSR annexed as
Annex-VII to this Report.
17.1.3 Rehabilitation & Resettlement (R&R)
Your Company is committed to help the populace displaced for execution
of its projects and has been making efforts to improve the
socio-economic status of Project Affected Persons (PAPs). In order to
meet its social objectives, your Company is focusing on effective R&R
of PAPs and undertaking community development activities in and around
the projects.
R&R activities are initiated at projects by undertaking need based
community development activities in the area of health, education,
water, capacity building infrastructure etc by formulating ''Initial
Community Development (ICD) Plan in consultation with concerned
Panchayat, district administration and opinion makers of the locality.
Company addresses R&R issues in line with its R&R Policy with an
objective that after a reasonable transition period, the conditions of
affected families improve or at least they regain their previous
standard of living, earning capacity and production levels. As per the
Policy, a detailed Socio- economic Survey (SES)/other Survey is
conducted by a professional agency to create a baseline data of PAPs.
This follows formulation of a ''Rehabilitation and Resettlement (R&R)
Plan'' after adequate consultation with stakeholders in Village
Development Advisory Committee (VDAC)'', which comprises representatives
of PAPs, Gram Panchayat, your Company and District Administration. R&R
Plan consists of measures for rehabilitation, resettlement and need
based community development activities. R&R plan expenditure is
implemented in a time bound manner so as to complete its implementation
by the time the project is commissioned. A social impact evaluation is
being conducted by a professional agency to know the efficacy of R&R
Plan implementation for future learning and improvements.
17.1.4 R&R achievements during the year:
- ''Initial Community Development (ICD) Plan:
ICD Plan provision for Pudimadaka project enhanced. Implementation of
earlier approved ICD activities continued at Bilhaur project -
Rehabilitation and Resettlement (R&R) Plan:
R&R Plans for Vindhyachal-V and Rammam-III covering R&R obligations and
community development facilities in the area of Health, Education,
Sanitation, Drinking water, Infrastructure facilities finalized in
consultation with stakeholders and approved. R&R Plan provisions for
Lara project enhanced to take care of additional requirement for IIIT,
Raipur and for Darlipalli to take care of additional requirement for
Sundargarh Medical College & Hospital. R&R activities were implemented
at the new Greenfield/Brownfield Thermal projects at Barh, Bongaigaon,
Barethi, Darlipali, Gadarwara, Khargone, Muzaffarpur, Korba, Kudgi,
Lara, Meja, Mouda, North-Karanpura, Solapur, Tanda, Unchahar-IV,
Vallur, Vindhyachal-IV, Hydro projects at Koldam, Lata-Tapovan,
Tapovan-Vishnugad and Coal Mining Projects at Pakri-Barwadih,
Chhatti-Bariatu, Kerendari, Dulanga and Talaipalli wherein R&R
Plans/packages were finalized in consultation and participation of the
stakeholders and approved earlier as well as at Rammam-III and
Vindhyachal-V projects where the R&R Plans have been approved during
the year.
Socio-economic Survey (SES)/ Need assessment Survey (NAS)/ Census and
Survey (C&S):
SES for Katwa, Meja railway siding and NAS for Pudimadaka completed.
SES for Talcher-Thermal and C&S for Khargone railway siding is under
progress.
Focus on Health:
For the benefits of project affected persons and neighbouring
population ''Mobile Health Clinic'' under R&R provisions at Kudgi,
Nabinagar (NPGCL), Pakri- Barwadih and Nabinagar (BRBCL) projects
started earlier continued during the year.
17.2 Environment Management - Initiatives for preserving Environment
Vision Statement on Environment Management: "Going Higher on
Generation, lowering GHG intensity" Your Company has always envisaged
environment protection as one of its prime responsibilities and focuses
its efforts to mitigate the impact of its operation on surrounding
environment To meet the environmental challenges of 21st century and
beyond, the Company has adopted sound environment management practices
and advanced environment protection system to minimize impact of power
generation on environment Your Company is undertaking massive
renovation & modernization to upgrade air pollution equipments to
reduce SPM emissions well below current statutory limits. It has
adopted advanced and high efficiency technologies such as super
critical boilers for commissioned and upcoming green field projects.
Around 12-15% of the project cost is spent on various environment
protection equipments such as Electrostatic Precipitators (ESPs),
Liquid Waste Treatment Plants (LWTP), Ash Water Recirculation System
(AWRS), dry ash extraction system, dust extraction, suppression system,
ambient air quality monitoring system, flue gas conditioning system and
desulphurization system etc. Your company is augmenting its capacity
by installing solar power systems and small hydel power systems
attached to its thermal power stations, wherever possible, so as to
encourage garnering of renewable energy resources. The These measures
are aimed not only to achieve reduction in pollution and minimize use
of precious natural resources but also to lead to reduction of CO2
emissions per unit of generation thereby reducing global warming.
17.2.1 Control of Air Emissions:
High efficiency Electro-static Precipitators (ESPs) with efficiency of
the order of 99.97% and above, with advanced control systems have been
provided in all coal based stations to keep Particulate Matter (PM)
below the prevailing permissible limits. All up-coming new plants are
being provided with ESPs designed in such a manner that would cater to
the notified future stringent norms. Performance enhancement of ESPs
operating over the years is being carried out by augmentation of ESPs
fields, retrofitting of advanced ESP controllers and adoption of sound
O&M practices. Flue Gas Conditioning systems have also been provided at
our old units which are helping in reduction of SPM emissions below
statutory limits even during coal quality variations due to blending of
coal etc. NOx control in coal fired plants is achieved by controlling
its production by adopting best combustion practices (primarily through
excess air and combustion temperatures controls). Over and above this,
since tall stacks are provided in coal stations, gases emitted through
stacks is widely dispersed and diluted.
In gas based stations, NOx control systems (hybrid burners or wet
DeNOx) have been provided for good combustion practices.
Fugitive emission from ash pond is controlled by maintaining water
cover, tree plantation on abandoned ash ponds, water spray and earth
cover in inactive lagoons. Providing dust suppression and extraction
system in CHP area has further added to reduction in fugitive dust in
the vicinity of power stations.
17.2.2 Control of water pollution and promotion of water conservation:
Various water conservation measures have been taken up to reduce water
consumption in power generation by using 3Rs (Reduce, Recycle & Reuse)
as guiding principle. Provision of advanced treatment facilities such
as Liquid Waste Treatment Plants (LWTP), Recycling Systems for Ash Pond
Effluent called Ash Water Recirculation System (AWRS) and closed cycle
condenser cooling water systems with higher Cycle of Concentration
(COC), rain water harvesting wherever possible and reuse of treated
sewage effluent for horticulture purposes are some of the measures
implemented in most of the stations. All these measures have resulted
in reduction of effluent discharge from the power plants of your
Company. In view of water stressed scenario, water conservation and
reduction in water consumption per unit of generation has assumed great
importance. NTPC has taken a proactive approach of making all its power
stations to operate with ZLD (Zero liquid discharge) progressively in
phases. Implementation of ZLD at six power plants are at various stages
of implementation during this fiscal year. In addition drain
separation as pre requisite to ZLD has been completed in six stations
viz. Singrauli, Faridabad, Ramagundam, Talcher Super, Gandhar and
Kayamkulam. This concerted effort of NTPC will not only conserve the
water but also will be able the meet the requirements of recently
notified environmental norm of water consumption by MoEF&CC
17.2.3 Automation of environment measurement system:
All the existing power stations are equipped with continuous ambient
air quality monitoring stations (AAQMS) to capture the real time data
of PM 10, PM 2.5, SO , NOx and access thereof viz., and access has been
provided to the Regulators such as Central Pollution Control Board and
State Pollution Control Boards. Additional ozone analyzers for ambient
air are also being provided phase-wise at the existing stations.
Continuous Emission Monitoring Systems (CEMS) to monitor emissions of
SO2 and NOx in all its existing units on real time basis are installed
and commissioned in addition to the opacity meter installed for
monitoring of particulate emission. Installation of real time monitors
for pollutants in effluents (EQMS) is also completed for all its
existing projects. For all the upcoming projects, real time monitors
for ambient air, effluents and emissions are included in the
engineering packages during design stage itself.
17.2.4 Revised Emission Norms
Till 7th December, 2015, the emission norms for coal based thermal
power stations stipulated emission limits for particulate matter only.
For the control of gaseous pollutants in ambient air, a minimum stack
height was stipulated. However, MOEF&CC vide notification dated 7th
December, 2015, has stipulated the emission limits for Oxides of
Nitrogen, Oxides of Sulphur and Mercury also. The emission limits
depend on the unit size and age of the unit and shall be applicable
from 7th December, 2017. This shall require modifications in design of
the power plants as well as additional pollution control systems. Your
Company is designing its new power plants to comply with new norms.
However, in older units, there may be constraints due to Technology
being used, Space available for retrofitting and financial viability of
the retrofits. The matter has been taken up with MOEF&CC and is being
examined on case to case basis with respect to compliance.
17.2.5 Tree Plantation:
Your Company is undertaking tree plantation covering vast areas of land
in and around its projects and till date about 23 million trees have
been planted throughout the country. The afforestation has not only
contributed to the ''aesthetics'' but also helped in carbon sequestration
by serving as a ''sink'' for pollutants released from the stations and
thereby protecting the quality of ecology and environment. Further,
your Company has embarked upon long-term Memorandums with State
authorities to assist National Commitment of INDC in COP 21, by
planning to plant 10 million trees across the country.
17.2.6 ISO 14001 & OHSAS 18001 Certification:
All of your Company''s stations have been certified with ISO 14001 and
OHSAS 18001 by reputed National and International certifying agencies
as a result of sound environment management systems and practices.
17.3 Quality Assurance and Inspection (QA&I)
Your company continues to place great emphasis on quality, with the
view to secure long term reliability and availability of its productive
assets and the investments. This is ensured by committing adequate
number of qualified and trained human resources for quality related
activities, maintaining field laboratories at the construction sites
and pursuing time tested systems & processes, resulting in world class
standards of performance of the plants. In your company, quality needs
are identified & planned, keeping in mind the interests of all the
stake holders, by interacting with major Power Equipment manufacturers
of the world, thereby embracing the latest technologies available. The
quality requirements associated with such technologies are rigorously
pursued during manufacturing, erection & commissioning of various
products/ systems/ services. The dynamic feedback system ensures that
the gaps, if any, are filled through resetting the methods and
standards resulting in continuous improvement Your company''s robust
performance on all parameters, is a testimony to the soundness of the
quality system deployed. Your Company is represented on various
technical committee of ISO and EC and is actively contributing in
formulation and updating of power sector technical and quality
standards/ guidelines, to serve the national as well as international
community at large.
17.4 Clean Development Mechanism (CDM)
Your Company is addressing climate change issues proactively.
Your Company has taken several initiatives in CDM projects in Power
Sector. It has gone ahead with six projects in CDM foray. 8MW Small
Hydro Power Project at Singrauli, 5MW each solar PV projects at Dadri,
Port Blair (Andaman & Nicobar) and Faridabad solar power projects had
already been registered with UNFCCC CDM Executive Board with estimated
annual Certified Emission Reductions (CERs) potential of approx 68,000.
Another two projects i.e. 50 MW Solar PV plant at Rajgarh (MP) and 10
MW Solar PV Project at Unchahar are in advanced stage of registration
with estimated annual CERs potential of approx. 88,000.
17.5 Ash Utilisation
During the year 2015-16, 588.28 lac tonnes of ash was generated and
41.35% viz. 243.23 lac tonnes of ash had been utilized for various
productive purposes. Important areas of ash utilization are - cement &
asbestos industry, ready mix concrete plants (RMC), road embankment,
brick making, mine filling, ash dyke raising & land development Pond
ash from all stations of your Company is being issued free of cost to
all users. Fly ash is also being issued free of cost to fly ash/
clay-fly ash bricks, blocks and tiles manufacturers on priority basis
over the other users from all coal based thermal power stations. The
funds collected from sale of ash is being maintained in the separate
account and this fund is being utilized for development of
infrastructure facilities, promotion and facilitation activities to
enhance ash utilization.
Your Company has an Ash Utilisation Policy, which is a vision document
dealing with the ash utilization issue in an integral way from
generation to end product. This policy aims at maximizing utilization
of ash for productive usage along with fulfilling social and
environmental obligations as a green initiative in protecting the
nature and giving a better environment to future generations. The
quantity of ash produced, ash utilized and percentage of such
utilization during 2015-16 from your Company''s Stations is at
Annex-VIII.
17.6 CenPEEP - towards enhancing efficiency and protecting Environment
Your Company initiated a unique voluntary program of GHG emission
reduction by establishing ''Center for Power Efficiency and
Environmental Protection (CenPEEP)'' and under this program, it is
estimated that cumulative CO2 avoided is 43.6 million ton since 1996,
by sustained efficiency improvements.
CenPEEP is working for efficiency and reliability improvement in
stations through strategic initiatives, development and implementation
of systems and introduction of new techniques & practices.
Critical efficiency parameter aberrations and draft power consumption
are monitored using PI based real time programs and dashboards. These
programs assist operating engineers in tracking the gaps in heat rate
and auxiliary power consumption and trending the degradation of
equipment performance.
CenPEEP is also working towards reduction in specific water consumption
and auxiliary power consumption in coal and gas stations. A dedicated
group CEETEM - Centre for Energy Efficient Technology & Energy
Management, conducts regular Energy audits to identify potential
improvement areas and improvement actions. CenPEEP is actively
involved in training and development of power professionals for company
and other utilities in the power sector in the areas of Boiler &
Auxiliaries, Turbine & Auxiliaries, Cooling Towers, RCM and PdM
technologies etc.
CenPEEP coordinated implementation of Perform, Achieve & Trade (PAT)
scheme under Prime Minister''s National Mission on Enhanced Energy
Efficiency (NMEEE) in NTPC coal & gas plants. Station specific action
plans were jointly prepared and implemented. Your Company''s coal and
gas stations exceeded the Net Heat Rate improvement targets and earned
around 1,69,000 EScerts (Energy saving certificates) in PAT-1 cycle.
However, formal notification is awaited.
18. NETRA - R&D Mission in Power Sector
The Company as the leading power utility of the country, has allocated
1% of PAT for R&D activities. Company has focused its research efforts
to address the major concerns of the sector as well as the futuristic
technology requirements of the sector. In this effort, your company has
established NTPC Energy Technology Research Alliance (NETRA) as
state-of-the-art centre for research, technology development and
scientific services in the domain of electric power to enable seamless
work flow right from concept to commissioning. The focus areas of NETRA
are - Efficiency Improvement & Cost Reduction; New & Renewable Energy;
Climate Change & Environmental protection which includes water
conservation, Ash utilization & Waste Management Research Advisory
Council (RAC) of NETRA comprising of eminent scientists and experts
from India and abroad is in place to steer research direction.
Scientific Advisory Council (SAC) provides directions for undertaking
specific applied research projects aimed to develop techniques in power
plant for efficient, reliable and environment friendly operation with
emphasis on reducing cost of generation. NETRA also provides Advanced
Scientific Services to all its stations and many other utilities in the
area of oil/water chemistry, environment, electrical, Rotor dynamics
etc. for efficient performances.
NETRA laboratories are accredited as per ISO 17025 and its NDT
laboratory also been recognized as well known "Remnant Life Assessment
Organization" under the Boiler Board Regulations,1950.
The details of activities undertaken by NETRA are given in Annex-III
which forms part of the Director''s Report
19. IMPLEMENTATION OF OFFICIAL LANGUAGE
Several Steps were taken for the proper propagation and implementation
of Official Language Policy of Government of India in your Company.
Meetings of Official Language Implementation Committee were held on
25th June, 21st September, 28th December, 2015 & 24th March, 2016 in
which the implementation of Hindi in the Organization was reviewed
thoroughly. Various Hindi competitions were organized during Hindi
fortnight from 1st to 14th September, 2015 in the corporate office as
well as in all other establishments of the Company. Corporate Hindi
Magazine "Vidyut Swar" was conferred, special commendation award by the
TOLIC (Town Official Language Implementation Committee), Delhi. Hindi
workshops were conducted for the various departments of the Company.
Renowned Hindi scholars inspired the participants of Hindi workshops to
use Hindi in their day- to-day official work. Office orders, formats
and circulars were issued in Hindi as well. Important advertisements
and house journals were released in bilingual form in Hindi as well as
in English. Your Company''s website also has a facility of operating in
bilingual form, in Hindi as well as in English.
20. VIGILANCE
20.1 Vigilance Mechanism
Your Company ensures transparency, objectivity and quality of decision
making in its operations, and to monitor the same, the Company has a
Vigilance Department headed by Chief Vigilance Officer, a nominee of
Central Vigilance Commission. Vigilance set up comprises of Vigilance
Executives in Corporate Centre and Projects. Corporate Vigilance
consists of four cells namely Investigation & Processing Cell,
Departmental Proceedings Cell, Technical Examination Cell and MIS Cell
deal with various facets of vigilance mechanism. For speedier disposal
of vigilance cases, works have been assigned to Vigilance Executive at
each of the regions of the Company. 376 surprise checks were made
during the period.
20.2 Implementation of Integrity Pact
Your Company is committed to have total transparency to its business
processes and as a step in this direction; it signed a Memorandum of
Understanding with Transparency International India in December, 2008.
The Integrity Pact is being implemented for all contracts having value
exceeding Rs. 10 crore. Presently, your Company is having two
Independent External Monitors to oversee the implementation of
Integrity Pact Programme.
20.3 Implementation of various policies/ circulars
Fraud Prevention Policy and Whistle Blower Policy have been implemented
in your Company to build and strengthen a culture of transparency. Your
Company has also laid down a comprehensive policy for withholding and
banning of business dealings with agencies, wherever the situation so
demands.
During 2015-16, 161 complaints were received, out of which 93
complaints were carried to a logical conclusion and the remaining 68
complaints are under various stages of investigation. Appropriate
disciplinary action has also been initiated wherever necessary.
20.4 Vigilance Awareness Week and Workshops
During 2015-16, 51 preventive vigilance workshops were conducted at
various projects/ places in which 1,371 employees participated.
Vigilance awareness week was observed from October 26, 2015 to October
31, 2015 in all NTPC projects and stations/ establishments. The theme
for the Vigilance Week was ''Preventive Vigilance as a Tool of Good
Governance'', during which various competitions amongst the employees
like slogan writing/ essay writings were held. A special booklet titled
''Handbook for Vigilance Executives'' was also published containing
guidelines for vigilance executives for conducting technical
examination of packages, investigations alongwith circular issued by
the Vigilance Commission.
Besides these, as advised by the Vigilance Commission, NTPC also
conducted outreach activities during Vigilance Awareness Week in total
405 Colleges/ Schools/ Institutions all over the country, organizing
elocutions, debates, lectures etc on ethics, integrity and corruption
and its ill effects for students.
21. REDRESSAL OF PUBLIC GRIEVANCES
Your Company is committed for resolution of public grievance in
efficient and time bound manner. Company Secretary has been designated
as Director (Grievance) to facilitate earliest resolution of public
grievances received from President Secretariat, Prime Minister''s
Office, Ministry of Power etc.
In order to facilitate resolution of grievances in transparent and time
bound manner, Department of Administrative Reforms & Public Grievances,
Department of Personnel & Training, Government of India has initiated
web-based monitoring system at www.pgportal.gov.in. As per directions
of GOI, public grievances are to be resolved within two months time. If
it is not possible to resolve the same within two months period, an
interim reply is to be given. Your company is making all efforts to
resolve grievances in above time frame.
22. RIGHT TO INFORMATION
Your Company has implemented Right to Information Act, 2005 in order to
provide information to citizens and to maintain accountability and
transparency. The Company has put RTI manual on website for access to
all citizens of India and has designated a Central Public Information
Officer (CPIO), an Appellate Authority and APIOs at all sites and
offices of the Company.
During 2015-16, 1,456 applications were received under the RTI Act, out
of which 1,384 applications were replied to, till 31.03.2016.
23. USING INFORMATION AND COMMUNICATION TECHNOLOGY FOR PRODUCTIVITY
ENHANCEMENT
Your Company has implemented an Enterprise Resource Planning (ERP)
package covering maximum possible processes across the organization
including subsidiaries. In addition to the core business processes and
Employee Self Service (ESS) functionality, the ERP solution also
includes e-procurement, Knowledge Management, Business Intelligence,
Document Management, and Workflow etc. The ERP system is fully managed
through in-house expertise from process groups and technical groups.
Parallely, in- house solutions have been developed to take care of the
non-ERP areas.
A state of the art data centre with centralized server facility for ERP
to cater to the entire Company is in Operation at NOIDA A 100% disaster
recovery centre is also operational at Hyderabad for change over in
case of any emergency. During the year under review, security
operation centre had been commissioned to counter and mitigate security
risks and no severe threats were observed. Project Monitoring Centre
was upgraded to High Definition system. Disaster Recovery mechanism
was 100% available during the year. Vendors Bill Tracking system
launched for pilot site i.e. Dadri. Online Earnest Money Deposit refund
process was implemented.
24. NTPC GROUP: SUBSIDIARIES AND JOINT VENTURES
Your Company has currently 5 subsidiary companies and 22 joint venture
companies for undertaking specific business activities.
A statement containing the salient feature of the financial statement
of your Company''s Subsidiaries, Associate Companies and Joint Ventures
as per first proviso of section 129(3) of the Companies Act, 2013 is
included in the consolidated financial statements. It does not contain
information about Hindustan Urvarak & Rasayan Limited, which was
incorporated on 15.06.2016. The financial statements of subsidiary
companies along with the respective Directors'' Report are placed
elsewhere in this Annual Report.
25. INFORMATION PURSUANT TO STATUTORY AND OTHER REQUIREMENTS
Information required to be furnished as per the Companies Act, 2013 and
Listing Agreement with Stock Exchanges are as under:
25.1 Statutory Auditors
The Statutory Auditors of your Company are appointed by the Comptroller
& Auditor General of India. Joint Statutory Auditors for the financial
year 2015-16 were (i) M/s T R Chadha & Co., LLP, New Delhi (ii) M/s PSD
Associates, Chartered Accountants, New Delhi, (iii) M/s Sagar &
Associates, Chartered Accountants, Hyderabad, (iv) M/s Kalani & Co.,
Chartered Accountants, Jaipur, (v) M/s P. A & Associates, Chartered
Accountants, Bhubaneshwar, (vi) M/s S. K. Kapoor & Co., Chartered
Accountants, Kanpur and (vii) M/s B. M. Chatrath & Co., Chartered
Accountants, Kolkata. The appointment of Statutory Auditors for the
financial year 2016-17 has been made by the Comptroller & Auditor
General of India.
25.2 Management comments on Statutory Auditors'' Report
The Statutory Auditors of the Company have given an un- qualified
report on the accounts of the Company for the financial year 2015-16.
However, they have drawn attention under ''Emphasis of Matter'' to Note
No. 12 (i) & 35 (a) in respect of change in accounting of capital
expenditure on assets not owned by the Company with retrospective
effect taking guidance available in AS 10 notified by MCA on 30th March
2016 effective from the financial year 2016-17; Note No. 22 (a) & (b)
regarding billing & recognition of sales on provisional basis and
measurement of GCV of coal on ''as received'' basis after secondary
crusher pending disposal of the matter by CERC/Hon''ble Delhi High Court
and related matters as mentioned in said note; and Note No. 33 in
respect of a Company''s ongoing project where the order of NGT has been
stayed by the Hon''ble Supreme Court of India and the matter is
sub-judice. The issues have been adequately explained in the
respective Notes referred to by the Auditors.
25.3 Review of accounts by Comptroller & Auditor General of India
(C&AG)
As advised by the Office of the C&AG, the comments of C&AG for the year
2015-16 alongwith management replies thereto are placed with the report
of Statutory Auditors of your Company elsewhere in this Annual Report.
25.4 COST AUDIT
As prescribed under the Companies (Cost Records and Audit) Rules, 2014,
the Cost Accounting records are being maintained by all stations of
your Company. The firms of Cost Accountants appointed under Section
148(3) of the Companies Act, 2013 for the financial year 2015-16 were
(i) M/s Bandopadhyay Bhaumik & Co., Kolkata, (ii) M/s S. Dhal & Co.,
Bhubhaneshwar (iii) M/s Musib & Co., Mumbai, (iv) M/s Sanjay Gupta &
Associates, New Delhi, (v) M/s Narasimha Murthy & Co., Hyderabad, and
(vi) M/s RJ. Goel & Co., Delhi. The due date for filing consolidated
Cost Audit Report in XBRL format for the financial year ended March 31,
2015 was September 30, 2015 and the consolidated Cost Audit Report for
your Company was filed with the Central Government on September 22,
2015. The Cost Audit Report for the financial year ended March 31,
2016 shall be filed within the prescribed time period under the
Companies (Cost Records & Audit) Rules, 2014.
25.5 Exchange Risk Management
Company is exposed to foreign exchange risk in respect of contracts
denominated in foreign currency for purchase of plant and machinery,
spares and fuel for its projects/ stations and foreign currency loans.
In term of its Exchange Risk Management Policy, during financial year
2015-16, the Company has entered into derivative contracts amounting to
USD 62 million equivalent in different currencies in respect of foreign
currency loans exposure.
25.6 Performance Evaluation of the Directors and the Board
As required under the Companies Act, 2013 and the Securities and
Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015, evaluation of performance of directors
including that of the Independent Directors and of the Board is to be
carried out either by the Board or by the Nomination and Remuneration
Committee or by the Independent Directors. It also requires disclosure
of formulated criteria for performance evaluation in Annual Report. In
this regard, the Ministry of Corporate Affairs, through Notification
dated 05.06.2015, has exempted the Government Companies from these
provisions. The appointment of the Functional Directors, Government
Nominee Directors and Independent Directors of your Company is made by
the Government of India. Their terms & conditions of appointment as
well as tenure of all directors are also decided by GOI and there is a
well laid down procedure for evaluation of Functional Directors & CMD
as well as of Government Directors by Administrative/ respective
Ministry. Also, the performance of the Board of the Government
Companies is evaluated during the performance evaluation of the MOU
signed with the Government of India.
Your Company has made representation to SEBI for exempting Government
Companies from evaluation of Directors and the Board. The matter is
under consideration by the SEBI.
25.7 Secretarial Audit
The Board has appointed M/s Agarwal S. & Associates, Company
Secretaries, to conduct Secretarial Audit for the financial year
2015-16. The Secretarial Audit Report for the financial year ended
March 31, 2016 is annexed herewith marked as Annexure XI to this
Report. The Managements'' Comments on Secretarial Audit Report are as
under:
Observations Management''s Comments
Regulation 17(1) As per the Listing Agreements
of Securities and executed with the Stock Exchanges
Exchange Board pursuant to SEBI LODR Regulations,
of India (Listing 2015 and DPE Guidelines on
Obligation Corporate Governance by CPSEs,
& Disclosure the Company should have eight
Requirements) Independent Directors since
Regulations, Company has six functional
2015 (erstwhile Directors including the Chairman
Clause 49 (II) (A) & Managing Director and two
& (B) of the Listing Government Nominee Directors
Agreement) and on its Board. At present, Company
Clause 3.1.2 has three Independent Directors in
and 3.1.4 of position.
DPE Guidelines Being a Government Company the
on Corporate power to appoint the Directors on
Governance the Board of the Company vests
for Central with the President of India and
Public Sector accordingly, the Company is, from
Enterprises w.r.t. time to time, requesting Ministry
composition of of Power to appoint requisite
the Board of the number of Independent Directors
Company. on its Board.
25.8 Particulars of contracts or arrangements with related parties
During the period under review, your Company had not entered into any
material transaction with any of its related parties. The Company''s
major related party transactions are generally with its subsidiaries
and associates. All related party transactions were in the ordinary
course of business and were negotiated on an arm''s length basis except
with Utility Powertech Limited, which are covered under the disclosure
of Related Party Transactions in Form AOC-2 (Annex- IX) as required
under Section 134(3)(h) of the Companies Act, 2013. They were intended
to further enhance the Company''s interests. Web-link for Policy on
Materiality of Related Party Transactions & also on Dealing with
Related Party Transactions has been provided in the Report on Corporate
Governance, which forms part of the Annual Report.
25.9 Significant and material orders passed by the regulators or courts
or tribunals impacting the going concern status and company''s
operations in future: NIL
25.10 Adequacy of internal financial controls with reference to the
financial reporting:
The Company has in place adequate internal financial controls with
reference to financial reporting. During the year, such controls were
tested and no reportable material weakness in the design or operation
was observed.
25.11 Loans and Investments
Details of Investments covered under the provisions of Section 186 of
the Companies Act, 2013 forms part of financial statement attached as a
separate section in the Annual Report FY 2015-16.
Your Company had not granted any loans to parties during 2015-16
covered under Section 186 of the Companies Act, 2013.
25.12 Sexual Harassment of Women at Workplace
The Company has in place a Policy on Prevention, Prohibition and
Redressal of Sexual Harassment of Women at Workplace in line with the
requirements of the Sexual Harassment of Women at the Workplace
(Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints
Committee (ICC) has been set up to redress complaints received
regarding sexual harassment All employees (permanent contractual,
temporary, trainees) are covered under this policy.
These ICCs have been constituted at all Projects/ stations also. Every
three years, the constitution of these committees is changed and new
members are nominated. No complaint of sexual harassment was received
by the ICC during the year 2015-16.
NTPC PMI has been conducting gender sensitization workshops for
building a collaborative work culture across the organisation, in
association with the National Commission for Women. In these workshops,
employees, both male and female, are sensitized and made aware about
issues and laws pertaining to sexual harassment as well as appropriate
behavior at the workplace. During 2015-16, PMI has conducted 12 such
workshops across the organization covering 250 employees.
25.13 Procurement from MSEs
The Government of India has notified a Public Procurement Policy for
Micro and Small Enterprises (MSEs), Order 2012. The total procurement
made from MSEs (including MSEs owned by SC/ST entrepreneurs) during the
year 2015-16 was Rs. 559.51 crore, which was 12.53% of total annual
procurement by your Company. Your Company orgainsed 12 vendor
development programmes for MSMEs. Annual procurement plan for purchases
from MSEs is uploaded on www.ntpc.co.in.
25.14 Particulars of Employees
As per provisions of Section 197(12) of the Companies Act, 2013 read
with the Rule 5 of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, every listed company is required to
disclose the ratio of the remuneration of each director to the median
employee''s remuneration and details of employees receiving remuneration
exceeding limits as prescribed from time to time in the Directors''
Report.
However, as per notification dated 5th June, 2015 issued by the
Ministry of Corporate Affairs, Government Companies are exempted from
complying with provisions of Section 197 of the Companies Act, 2013.
Therefore, such particulars have not been included as part of
Directors'' Report
25.15 Extract of Annual Return:
Extract of Annual Return of the Company is annexed herewith as Annexure
VI to this Report.
25.16 Information on Number of Meetings of the Board held during the
year, composition of committees of the Board and their meetings held
during the year, establishment of vigil mechanism/ whistle blower
policy and web-links for familiarization/ training policy of directors,
Policy on Materiality of Related Party Transactions and also on Dealing
with Related Party Transactions and Policy for determining ''Material''
Subsidiaries have been provided in the Report on Corporate Governance,
which forms part of the Annual Report
25.17 Para on development of risk management policy including therein
the elements of risks are given elsewhere in the Annual Report.
25.18 No disclosure or reporting is required in respect of the
following items as there were no transactions on these items during the
year under review:
1. Issue of equity shares with differential rights as to dividend,
voting or otherwise.
2. Issue of shares (including sweat equity shares) to employees of the
Company under any scheme.
The particulars of annexures forming part of this report are as under:
Particulars Annexure
Management Discussion & Analysis I
Report on Corporate Governance II
Information on conservation of III
energy, technology absorption and
foreign exchange earnings and outgo
Statistical information on persons IV
belonging to Scheduled Caste /
Scheduled Tribe categories
Information on Differently abled V
persons
Extract of Annual Return VI
Annual Report on CSR Activities VII
Project Wise Ash Utilisation VIII
Disclosure of Related Party IX
Transactions in Form AOC-2
Business Responsibility Report for the X
year 2015-16
Secretarial Audit Report in Form MR-3 XI
26. BOARD OF DIRECTORS
Shri I.J. Kapoor resigned from the post of Director (Commercial) on
20.08.2015 on being appointed as Technical Member of the Appellate
Tribunal for Electricity.
Consequent upon completion of three years'' tenure, Dr. A. Didar Singh
had ceased to be the Independent Director w.e.f. August 22, 2015. Shri
Rajesh Jain and Dr (Mrs.) Gauri Trivedi had been appointed as
Independent Directors w.e.f. 18.11.2015 for a period of three years.
Shri Anil Kumar Singh ceased to be the Government Nominee Director
w.e.f. 08.12.2015 consequent his transfer from Ministry of Power. Shri
Aniruddha Kumar, JS (Thermal), Ministry of Power has joined as
Government Nominee Director of the Company with effect from 25.02.2016.
Shri Seethapathy Chander has been appointed as the Independent Director
on the Board w.e.f. 22.06.2016.
On completion of five years'' tenure, Dr. Arup Roy Choudhury ceased to
be the Chairman & Managing Director of the Company w.e.f. 31.08.2015
(A/N). In the absence of regular Chairman & Managing Director, the
Ministry of Power, through order dated 28.08.2015, entrusted the
additional charge of the post of Chairman & Managing Director, to Shri
A.K. Jha, Director (Technical). He held the additional charge from
01.09.2015 to 03.02.2016, after which Shri Gurdeep Singh joined as the
Chairman & Managing Director of the Company on 04.02.2016. On
Completion of three years'' tenure, Shri Prashant Mehta has ceased to be
the Independent Director of the company w.e.f. 29.07.2016 (A/N). The
Board wishes to place on record its deep appreciation for the valuable
services rendered by Shri I.J. Kapoor, Dr. A. Didar Singh, Dr. Arup Roy
Choudhury, Shri Anil Kumar Singh and Shri Prashant Mehta during their
association with the Company. In accordance with Section 152 of the
Companies Act, 2013 and the provisions of the Articles of Association
of the Company- Shri S.C. Pandey and Shri K. Biswal shall retire by
rotation at the Annual General Meeting of your Company and, being
eligible, offers themselves for re-appointment.
27. DIRECTORS'' RESPONSIBILITY STATEMENT
As required under Section 134 (5) of the Companies Act, 2013, your
Directors confirm that:
1. in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures;
2. the Directors had selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the company at the end of the financial year 2015-16 and of the
profit of the company for that period;
3. the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 2013 for safeguarding the assets of
the company and for preventing and detecting fraud and other
irregularities;
4. the Directors had prepared the Annual Accounts on a going concern
basis;
5. the Directors, had laid down internal financial controls to be
followed by the company and that such internal financial controls are
adequate and were operating effectively; and
6. the Directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.
28. ACKNOWLEDGEMENT
The Directors of your Company acknowledge with deep sense of
appreciation, the co-operation received from the Government of India,
particularly the Prime Minister''s Office, Ministry of Power, Ministry
of New & Renewable Energy, Ministry of Finance, Ministry of
Environment, Forests & Climate Change, Ministry of Coal, Ministry of
Petroleum & Natural Gas, Ministry of Railways, Department of Public
Enterprises, Central Electricity Authority, Central Electricity
Regulatory Commission, Comptroller & Auditor General of India,
Appellate Tribunal for Electricity, State Governments, Regional Power
Committees, State Utilities and Office of the Attorney General of
India.
The Directors of your Company also convey their gratitude to the
shareholders, various international and Indian Banks and Financial
Institutions for the confidence reposed by them in the Company. The
Board also appreciates the contribution of contractors, vendors and
consultants in the implementation of various projects of the Company.
We also acknowledge the constructive suggestions received from the
Office of Comptroller & Auditor General of India and Statutory
Auditors. We wish to place on record our appreciation for the untiring
efforts and contributions made by the employees at all levels to ensure
that the company continues to grow and excel.
For and on behalf of the Board of Directors
(Gurdeep Singh)
Chairman & Managing Director
Place: New Delhi DIN : 00307037
Date: 3rd August , 2016
Mar 31, 2015
Dear Members,
The Directors are pleased to present the 39th Annual Report on the
business and operations of the Company along with audited financial
statements for the year ended March 31, 2015.
Financial Year 2014-15 has been yet another year of achievements for
your Company. With the addition of 1,290 MW capacity (including 195 MW
through Subsidiary Company) during the year, total installed capacity
of your Company (including subsidiaries & JVs) as on 31.03.2015 was
44,398 MW.
Further, with the commissioning of two hydro units of 200 MW each on
10.04.2015 and 12.06.2015 respectively and a 250 MW thermal unit on
22.06.2015, the total installed capacity of NTPC Group has crossed
45,000 MW.
Major highlights for the year 2014-15 are:
- Made foray into hydro generation with the commissioning of two units
of 200 MW each.
- Commissioned solar plants of 35 MW capacity.
- Declared 1,195 MW (including 500 MW through JV Company) on commercial
generation.
- Average PLF of 80.23% as against all India PLF of 64.46% with two
NTPC stations recording more than 90% PLF.
- Excellent MOU rating by Government of India for the year 2013-14.
- Reallocation of Coal blocks namely, Kerandari, Talaipalli, Dulanga,
Chatti-Bariatu, Chatti- Bariatu (South). Now, Banaiand Bhalumuda (both
exclusively) and Kundanali-Luburi Qointly with J&K State Power
Development Company Limited) have been allocated to your company.
- Capital expenditure (CAPEX) for the year 2014- 15 was Rs.23,239.25
crore as against the target of Rs.22,400 crore.
- 100% realization of current bills from customers.
- Recorded total income of Rs.75,362.37 crore as compared to
Rs.74,664.61 crore in the FY 2013-14. Net Profit after Tax (PAT) of
Rs.10,290.86 crore.
- Company rewarded its shareholders by issue of one non-convertible,
secured, redeemable bonus debenture of face value of Rs.12.50 each for
every one equity share of Rs.10 each, aggregating to Rs.10,306.83
crore.
- Dividend of Rs.2.50 per share (total Rs.2,061.38 crore) comprising
interim dividend of Rs.0.75 per equity share paid in February 2015 and
recommendation of final dividend of Rs.1.75 per equity share for the
year 2014-15, subject to approval of the shareholders.
- Company has been adjudged as the 'Best Company to Work for 2015' in a
study conducted by Economic Times in Energy, Oil and Gas Industry
Category.
You will appreciate the fact that the company recorded growth and
excellent performance despite the challenge before the sector.
1. FINANCIAL RESULTS (STAND ALONE)
Revenue 2014-15 2013-14
Rs.Crore US $ Mn* Rs. Crore US $ Mn*
Net Revenue from
Operations (including
Energy Sales, 73,246.05 11,591.40 72,018.93 11,397.20
Consultancy, Energy
consumed internally)
Other Income 2,116.32 334.91 2,645.68 418.69
Total Revenue 75,362.37 11,926.31 74,664.61 11,815.89
Expenses
Fuel 48,845.19 7,729.89 45,829.71 7,252.69
Employee Benefits
Expense 3,669.78 580.75 3,824.78 605.28
Finance Costs 2,743.62 434.19 2,406.59 380.85
Depreciation and
amortization expense 4,911.65 777.28 4,142.19 655.51
Generation,
administration &
other expenses 4,979.31 787.99 4,543.85 719.08
Prior period items (net) (333.83) (52.83) 12.84 2.03
Total Expenses 64,815.72 10,257.27 60,759.96 9,615.44
Profit before Tax 10,546.65 1,669.04 13,904.65 2,200.45
Tax Expense 255.79 40.48 2,929.91 463.67
Profit for the year 10,290.86 1,628.56 10,974.74 1,736.78
Appropriations: 2014-15 2013-14
Rs. Crore US $ Mn* Rs. Crore US $ Mn*
Transfer to bond/
debenture redemption
reserve 1,156.19 182.97 576.08 91.17
Transfer to general
reserve 7,000.00 1,107.77 5,000.00 791.26
Transfer to CSR reserve 78.30 12.39 - -
Transfer to capital
reserve 0.12 0.02 4.98 0.79
Interim dividend 618.42 97.87 3,298.19 521.95
Proposed dividend 1,442.96 228.35 1,442.96 228.35
Tax on dividend 417.40 66.05 804.74 127.35
*1US$=Rs.63.19 as on March 31, 2015
2. ISSUE OF BONUS DEBENTURES
During the Financial Year 2014-15, your Company rewarded its
shareholders by issue of one secured, non-cumulative, non-convertible,
redeemable, taxable, fully paid-up debenture of face value of Rs.12.50
each by way of bonus for every one equity share of Rs.10 each,
aggregating to Rs.10,306.83 crore.
These debentures carry a fixed coupon rate of 8.49% p.a. and will be
redeemed in three instalments of Rs.2.50, Rs.5.00 and Rs.5.00 per
debenture at the end of 8th, 9th and 10th year respectively.
3. DIVIDEND
3.1 Interim and Final Dividend:
Your company paid interim dividend of Rs.0.75 per equity share in
February 2015 and Directors of your Company have recommended a final
dividend of Rs.1.75 per equity share for the year 2014-15. With this
the total dividend for the year is Rs.2.50 per equity share of Rs.10/-
each. This is in addition to the Bonus Debenture of Rs.12.50 each
issued by the Company in March 2015. In the year 2013-14, the total
dividend paid was Rs.5.75 per equity share of Rs.10/- each. The
dividend payout is 20.03% and the total dividend payout including
dividend tax is 24.09% of profit after tax. The final dividend shall be
paid after your approval at the Annual General Meeting.
The dividend has been recommended in accordance with your Company's
policy of balancing dividend pay-out with the requirement of deployment
of internal accruals for its growth plans.
4. OPERATIONAL PERFORMANCE
During the year, the power stations of your Company generated 241.26
BUs (260.58 BUs including JVs & Subsidiaries) of electricity (including
solar and hydro power) which was 23.12% (24.97% including generation by
JVs) of the total power generated in India (without Bhutan import)
registering an increase of 3.42% (3.93% including JVs & Subsidiaries)
over the previous years' generation of 233.28 BUs. The total
generation contributed by coal stations is 229.55 BUs during the year
against generation of 220.70 BUs last year registering a growth of
4.01%. Generation from coal based units could have been still higher
but due to less generation schedule there was opportunity loss of 23.11
BUs. The coal based stations operated at average Plant Load Factor
(PLF) of 80.23% (All India PLF 64.46%) and average Availability Factor
of 88.27% on bus bar during the year. During the year, 2 coal based
stations out of 17 achieved more than 90% PLF. The gas stations having
a capacity of 4,017 MW achieved annual generation of 11.588 BUs at a
PLF of 32.93% as against 12.569 BUs last year mainly due to less
generation schedule which accounted for an opportunity loss of 20.798
BUs. The average declared capacity of gas based stations for the year
was 92.18% as compared to 95.24% during previous year.
5. COMMERCIAL PERFORMANCE
5.1 Billing and Realisation
Your Company has realized 100% payment of current bills raised for
energy supplied in 2014-15, thus achieving this feat for the 12th
consecutive year.
All the customers were making their payments within 60 days of billing
and had established LCs at 105% of the average monthly billing.
5.2 Rebate Scheme for realization of dues:
In order to encourage early and full realization of dues, your Company
has formulated a special scheme called 'NTPC Rebate Scheme'. In this
Scheme for 2014-15, which was aligned with CERC Regulations, graded
rebate was given to those customers who were making due payment upto
55th day of billing.
5.3 Commercial Capacity:
The following units were declared commercial during the year 2014-15,
adding 1,195 MW to commercial capacity of your Company:
Project/ Unit Capacity COD*
(MW)
NTPC Units- Coal Based (I)
Barh-II,Unit#1 660 15.11.2014
Total (I) 660
NTPC Units -Renewable Energy Units (II)
Rajgarh Solar** 20 30.04.2014
Singrauli Solar 15 31.12.2014
Total (II) 35
NTPC's JV Units- Coal Based (III)
Vallur,Unit#3(JV with 500 26.02.2015
TANGEDCO)
Total (III) 500
Total Capacity declared 1,195
commercial during 2014-15
(incl. JVs) (I) (II) (III)
* COD- Commercial Operation Date
* * Out of total capacity of 50 MW, 30 MW capacity of Rajgarh Solar PV
was declared on commercial operation on 31.03.2014. Commercial
Capacity of NTPC as on 30.07.2015 is as under:
Owned by NTPC MW
Coal based projects 33,015
Gas based projects 4,017
Renewable Energy Projects 110
Hydro Projects 800
Sub-total 37,942
Joint Ventures & Subsidiaries
Coal based projects 4,034
Gas based projects 1,967
Sub-total 6,001
Total 43,943
5.4 Tariff Regulations:
In FY 2014-15, your Company has been able to recover its full capacity
charges, there was no under recovery in any of the stations due to less
Declared Capability (DC) below the normative DC. Tariff petitions with
Central Electricity Regulatory Commission (CERC) have been filed for
all the operating stations for determination of tariff for the period
from 01.04.2014 to 31.03.2019. Hearing on these petitions had started
and orders will be issued after completion of hearings. The company has
also filed final true-up petitions for the stations for the period from
01.04.2009 to 31.03.2014 and final orders will be issued after
completion of hearings.
5.4.1 Judgements
In case of BSES Rajdhani Power Limited (BRPL) & BSES Yamuna Power
Limited (BYPL) writ petitions, Hon'ble Supreme Court directed both
discoms to pay the recurring monthly payments (current bills) to the
generating/ transmission companies and vacated the stay on regulation
of power supply against non-payment.
APTEL, through its judgment dated 24.03.2015, upheld the allowance of
employees cost to NTPC by CERC on account of wage revision for the
period 2007-09 and dismissed the appeals filed by TPDDL, BYPL and PSCPL
against the said CERC order.
CERC allowed capitalization of R&M works in Talcher Thermal Power
Station, through its order dated 15.05.2014 with consequential billing/
impact of Rs.740 crore towards revised fixed charges.
5.5 Strengthening Customer Relationship:
Customer Relationship Management (CRM) initiative has been taken by
your company towards strengthening relationship with the customers.
This is also reflected in the Core Values of your Company (BE
COMMITTED) which emphasizes 'Customer Focus' as one of the core values
of NTPC.
Under CRM, your Company has designed and executed several structured
activities with the objective of sharing of experiences and best
practices with the customers, capturing the feedback and expectations.
Based on the feedback received from the customers, the Company provides
various support services to them and identifies potential areas of
cooperation. During the year 2014-15, 62 such services were provided to
the customers.
your Company offers training programs to the representatives of
beneficiary companies at Power Management Institute (PMI) on free of
cost basis. During the year 2014-15, 134 participants from various
customer organizations attended training in 58 programs conducted by
PMI.
Besides above, your Company has rolled out a Customer Satisfaction
Index (CSI) Survey for gathering customers' feedback and responding to
their requirements as an essential part of CRM programme. The CSI
survey had been conducted in the year 2014-15. The survey is a useful
tool for further relationship with the customers.
6. INSTALLED CAPACITY
During the year 2014-15, your Company added 1,290 MW as per details
given below:
Project/ Unit installed during FY Capacity
2014-15 (MW)
NTPC owned
Coal Based Power Projects
Barh-II, Unit#2 660
Hydro Power Projects
Koldam Hydro, Unit#1 and 2 400
Solar Power Projects
Rajgarh Solar PV 20
Singrauli Solar PV 15
Under JVs (Coal Based
Power Projects)
Kanti (subsidiary of NTPC in JV with 195
BSPGCL), Unit#3
Addition during FY 2014-15 1,290
With above capacity addition during 2014-15, capacity added in the
first three years of 12th Plan Period has reached 7,295 MW against the
target of 11,920 MW for 12th Plan Period (as per CEA).
The total installed capacity of the NTPC Group as on 31.03.2015 has
become 44,398 MW (43,108.31 as on 31.03.2014) as tabulated below:
Owned by NTPC MW
cod based projects 33,675
Gas based projects 4,017
Renewable Energy Projects 110
Hydro Projects 400
Sub-total 38,202
Joint Ventures & Subsidiaries
Coal based projects 4,229
Gas based projects 1,967
Sub-total 6,196
Total 44,398
With the commissioning of two units of 200 MW each of Koldam Hydro
Project on 10.04.2015 and 12.06.2015 respectively and 250 MW unit of
Bongaigoan thermal power project on 22.06.2015, the total installed
capacity of NTPC Group has reached 45,048 MW as on 30.07.2015.
7. CAPACITY ADDITION PROGRAM
Your Company has adopted a multi-pronged growth strategy which includes
capacity addition through green field projects, brown field expansions,
expansion through joint ventures and acquisitions, towards its journey
to achieve its vision to become world's largest and best power producer
powering India's Growth.
In addition to furthering capacity addition through Coal based power
projects, your Company has been pursuing enhancement of its power
generation portfolio through Hydro and Renewable Energy projects.
7.1 Projects under Implementation
Your Company's various projects having aggregate capacity of 23,904 MW
including 4,495 MW being undertaken by Joint Venture and subsidiary
companies are under implementation at 22 locations across length and
breadth of the country as on 31.03.2015. This includes 22,685 MW
through coal based projects, 1,219 MW through renewable energy
projects, comprising 1,211 MW through hydro capacity and 8 MW mini
hydro project. The details of such projects are as under:
Ongoing Projects as on 31.03.2015
Capacity
(MW)
I. NTPC owned:
A. Coal Based Projects
1. Bongaigaon, Assam* 750
2. Barh-I, Bihar 1,980
3. Lara-I, Chattisgarh 1,600
4. North Karanpura, Jharkhand 1,980
5. Kudgi-I, Karnataka 2,400
6. Gadarwara-I, Madhya Pradesh 1,600
7. Vindhyachal-V, Madhya Pradesh 500
8. Mouda-II, Maharashtra 1,320
9. Solapur, Maharashtra 1,320
10. Darlipalli,Odisha 1,600
11. Unchahar, Uttar Pradesh 500
12. Tanda,Uttar Pradesh 1,320
13. Khargone, Madhya Pradesh 1,320
Sub Total (A) 18,190
B. Hydro Electric Power Projects (HEPP)
14. Koldam, Himachal Pradesh* 400
15. Tapovan Vishnugad, Uttarakhand 520
16. Lata Tapovan, Uttarakhand 171
17. Rammam Hydro, West Bengal 120
18. Singrauli CW Discharge, Uttar 8
Pradesh
Sub Total (B) 1,219
Total I (A) (B) 19,409
II Projects under JVs & Subsidiaries
Coal Based Projects
19. Nabinagar- JV with Railways, 1,000
Bihar
20. Muzaffarpur Expansion (MTPS)-
Subsidiary of NTPC in JV with 195
BSPGCL, Bihar
21. Nabinagar, JV with BSPGCL, Bihar 1,980
22. Meja, JV with UPRVUNL, Uttar 1,320
Pradesh
Total II 4,495
III Total On-Going Projects as on 23,904
31.03.2015 (I) (II)
*Subsequently, 250 MW unit of Bongaigaon and 400 MW of Koldam Hydro
Projects has been commissioned till 30.06.2015. In addition, 250 MW of
Solar PV Project was awarded on 28.05.2015 to be set up at Anantpur in
the State of Andhra Pradesh.
7.2 New Projects
Currently, your Company has projects for 9,850 MW thermal capacity and
510 MW renewable capacity under bidding after investment approval
accorded by the Board. Feasibility Reports for 16,830 MW capacity have
already been approved by your Board and project development activities
are in various stages.
your Company has signed Memorandum of Agreement on 03.05.2015 for
acquisition of Patratu Thermal Power Station (770 MW) through a joint
venture company to be promoted by NTPC and Jharkhand Bijlee Vitran
Nigam Limited. The proposed JVC shall also take up expansion of power
project by addition of 3X800 MW units in Phase-I and 2X800 MW units in
Phase-ll.
7.3 New Technology
To meet the challenge of fulfilling India's electricity demands at
affordable cost with minimum environmental impact, your Company has
drawn a long term Technology Roadmap up to 2032. The technology
roadmap envisages development, adoption and promotion of safe,
efficient and clean technologies for power generation.
your Company is planning to set up coal fired units with ultra
supercritical parameters targeting efficiency comparable to best
available technology in the world. It is also setting up solar PV
plants.
your Company has adopted efficient technologies, system and practices
including combined cycle gas-fired power stations, Distributed Digital
Control & Management Information System, High Voltage Direct Current
transmission, Sliding Pressure Operation of SG, Dry Ash Extraction and
Disposal, 765 KV Switchyard, Ash Water Recirculation System, Liquid
Waste Management System, Performance Analysis and Diagnostic
Optimization, Tunnel Boring Machines and Super Critical Technologies.
These technologies have contributed to increased efficiency and greater
environmental protection in its operations. They have also been later
adopted in the Indian power industry, as well.
With emphasis on efficiency of electricity generation, your Company has
adopted super- critical technology for Sipat plant with Steam
parameters of 247 kg/cm7537°C/565°C. For Barh Stage-II, higher steam
parameters of 247 kg/ cm7565°C/593°C have been adopted, which shall
also be adopted for all 660/800 MW units being taken up thereafter. The
improved heat rate at these parameters will result in around 5% gain in
efficiency over the efficiency of conventional sub- critical 500 MW
unit.
Steam parameters have been further improved for North Karanpura to 260
kg/cm2 /593°C/ 593°C. For Khargone even further improved parameter 270
kg/cm2 /600°C/600°C have been adopted, which is expected to give
improvement in efficiency by 3.7% over conventional super critical
plant. your Company has entered into MOU with BHEL and Indira Gandhi
Centre for Atomic Research (IGCAR) for indigenous development of
advanced ultra super critical technology. This will have enhanced
efficiency of around 45% and about 15-17% less CO2 emission as compared
to 500 MW sub-critical units. The program is targeted to deliver a
plant having 800 MW unit with steam parameters of 310 kg/cm2/710°C at
super heater outlet and 720°C at re-heater outlet.
your Company has issued NIT for hybrid solar thermal plant by
integration of solar heat with 210 MW coal based unit at Dadri. Solar
heat is being integrated along with feed heaters in the turbine cycle
for conversion of solar heat to electrical power with the help of
existing steam cycle of 210 MW. Once integrated, this will reduce coal
consumption with corresponding reduction in CO, emissions.
7.3.1 Energy Conservation, Technology Absorption
Details of conservation of energy and technology absorption in
accordance with section 134(3) of the Companies Act, 2013 read with
Companies (Accounts) Rules, 2014 forms a part of this report at
Annex-III.
7.4 Project Management
your Company has an established state-of-the-art IT enabled Project
Monitoring Centre (PMC) for facilitating fast track project
implementation. PMC has advanced features like Web-based Milestone
Monitoring System (Webmiles), Project Review and Internal Monitoring
System (PRIMS), Enterprise- wide Issues Tracking System, etc. PMC
facilitates monitoring of key project milestones and also acts as
decision support system for the management.
PMC is integrated enterprise-wide collaborative system to facilitate
consolidation of project related issues and their resolution. Features
like SMS based information delivery, real time video capture, storage
and retrieval facility and conference facility are extensively utilized
for project tracking, issues resolutions and management intervention.
PMC has helped in providing effective coordination between the agencies
and has provided enhanced/ efficient monitoring of the projects leading
to better and faster project implementation.
7.5 Capacity addition through Subsidiaries and Joint Ventures (JVs)
Besides adding capacities on its own, your Company develops power
projects through its subsidiaries and joint ventures, both in India and
abroad.
The information of Indian Subsidiaries and JV Companies along with
details of partners of joint ventures engaged in power generation is
given below:
Name of Company JV Partner(s) Details
KBUNL Bihar State Power A subsidiary Company in
which NTPC holds 65%
shares in joint venture with
(Kanti Biilee Generation BSPGCL (erstwhile BSEB),
took over MTPS having 2
units of 110 MW each
Utoadan, Nigam Company Limited from BSEB. Both the units of
Stage-I have been declared
on commercial
Ltd.) (erstwhile (BSEB) operation. Total generation
in FY 2014-15 was 875.14 MUs.
The Company has also taken
up expansion of the project
by 2X195 MW units. Unit#3
of Stage-II has been
synchronized on 31.03.2015.
Construction activities are
in full swing for Unit#4
of Stage-II.
BRBCL Ministry of Railways A subsidiary of NTPC in
joint venture with Ministry
of Railways with equity
(Bhartiva Rail
Biilee contribution in the ratio of
74:26 respectively for
setting up power project
Company Ltd.) of 1000 MW (4X250 MW)
capacity at Nabinagar in
Bihar. Construction
activities are in progress.
In addition, NTPC Limited
has signed Memorandum of
Understanding with Ministry
of Railways to set up 1,320
MW captive power project for
Railways at Adra, West
Bengal through this Company.
Ministry of Railways is
taking steps for allocation
of coal mine to the
proposed project.
NSPCL Steel Authority of A 50:50 Joint Venture
Company between NTPC and
SAIL, owns and
(NTPC SAIL Power India Ltd. (SAIL) operates captive power
plants for SAIL at Durgapur
(120 MW), Rourkela
Co Pvt. Ltd.) (120 MW) & Bhilai (74 MW)
and Bhilai PP-III (2X250 MW),
which is supplying power to
SAIL, Chhattisgarh, DNH and
D&D. Its present installed
capacity is 814 MW.
Captive power plants (314
MW) recorded generation of
2429.07 MU in FY 2014-15.
Bhilai PP-III (2X250 MW)
recorded generation of
3241.06 MU in FY 2014-15.
NSPCL is pursuing Coal based
Expansion Power Plants at
Rourkela (1x250 MW),
Durgapur (2x20 MW) & Bhilai
(2x250 MW) and Green Field
Lignite based Power Plant at
Salem(2x40 MW). Bidding for
EPC packages of Rourkela
PP-II Expansion (1X250 MW)
and Durgapur PP-III (2X20
MW) is presently in process.
Feasibility Report is under
preparation for Power
Plant at Salem.
NTECL Tamilnadu A 50:50 JVC has
commissioned 3x500 MW coal
based power project at
(NTPC Tamil Nadu Generation and Vallur, Tamilnadu.
Energy Co. Ltd.) Distribution All the units have been
declared on commercial
operation. Total generation
Corporation Limited of NTECL during FY 2014-15
was 5748.68 MUs.
(TANGEDCO)
(erstwhile TNEB)
APCPL Indraprastha Power This JVC is operating 3X500
MW coal based Indira Gandhi
Super Thermal
(Aravali Power Generation Co Ltd. Power Project. NTPC, IPGCL
and HPGCL have contributed
equity in the
Company Pvt. Ltd.) (IPGCL) and Haryana ratio of 50:25:25.
Power Generation Total generation of APCPL
during FY 2014-15 was
7025.10 MUs.
Co Ltd. (HPGCL).
MUNPL Uttar Pradesh A 50:50 JVC is implementing
1,320 MW (2X660 MW)
coal based power
(Meja Una Nigam Rajya Vidyut project in the state of
Uttar Pradesh. Construction activities
are in progress.
Pvt Ltd) Utpadan Nigam Ltd.
(UPRVUNL)
NPGCL Bihar State Power A 50:50 JVC is setting up
a 3x660 MW Coal based
plant at Nabinagar.
(Nabinagar Power Generation Construction activities
are in progress.
Generating Company Limited
Company Pvt Ltd.) (erstwhile (BSEB)
RGPPL GAIL, ICICI Bank,
SBI, NTPC had a stake of 28.91%
as on 31.03.2015. All the
three Power Blocks
(Ratnagiri Gas and IDBI, Canara Bank have been kept at dry
preservation since
12.09.2014 due to non-
availability
Power Pvt. Ltd.) and MSEB Holding of funds.
Co. The LNG terminal received
and unloaded 10 RLNG
cargo(s) during the
financial year 2014-15.
Due to non-payment of loans
and interest, as per the
Shareholders' Agreement,
loan of Rs.855.37 crore due
upto 30.06.2015 has been
converted into equity. After
conversion, the paid-up
share capital of the Company
increased to Rs.3820.27 Crore
as on 30.06.2015 and the
stake of NTPC was reduced to
25.51% as on 30.06.2015.
Based on the subsidy scheme
of the Government of India
for the stranded gas power
stations for FY 2015-16 and
2016-17, Ministry of Power
has allocated 500 MW of
power from the project to
the Indian Railways for FY
2015-16 and FY 2016-17.
Certain waiver of duties
from Maharashtra Government
and agreement with GAIL is
awaited.
ASHVINI Nuclear Power NTPC is having a stake of
49%. The company was formed
for setting up
(Anushakti Vidhyut Corporation of India nuclear power project (s)
and also to explore
possibilities of entering
Nigam Ltd.) Ltd. (NPCIL) in areas of front end fuel
cycle like uranium mining
etc. project site at
Gorakhpur, Haryana has been
finalized for setting up
Haryana Atomic Power Plant
(2X700 MW) for which physical
possession of land has been
completed. However, the
project is yet to be
formally allocated to
ASHVINI.
The JV Company may
establish the nuclear
power project subject to
the amendment in the
Atomic Energy Act.
7.6 Hydro Power
Your Company is increasing its footprints in renewable energy by
developing hydro projects as detailed below:
A. Koldam HEPP (4x200MW) on the river Satluj at Barmana, District
Bilaspur (Himachal Pradesh): All the four units are under commercial
operation since 18.07.2015.
B. Tapovan Vishnugad HEPP (4x130MW) on River Dhauliganga, District
Chamoli (Uttarakhand) is under construction. Approximately 60% work has
been completed. Head Race Tunnel (HRT) contract, after completion of
7.65 km out of 12.08 km was terminated due to non performance by
agency. Award of balance HRT works is under tendering process and award
is expected by Dec'15. Construction of Barrage, Switchyard and
Electro-Mechanical & Hydro-Mechanical works are in progress.
C. Lata Tapovan HEPP (3x57MW) is just at upstream of Tapovan-Vishnugad
HEPP - The work was stopped by Hon'ble Supreme Court vide order dated
07.05.2014 for 24 Hydro Projects in the State of Uttarakhand including
Lata-Tapovan. The Ministry of Environment, Forests & Climate Change has
constituted an expert body to look into the various concerns related
with environment due to these 24 projects and provided 3 months time to
submit their opinion for Lata- Tapovan HEPP & 5 other projects which
were having all the Government clearances on their commencement of
construction. The expert body had their first meeting on 16.06.2015.
Regarding National Board for Wild Life Clearance for Tapovan Vishnugad
HEPP and Lata Tapovan HEPP, the State Board of Wildlife of Uttarakhand
has recommended the proposal to NBWL for clearance of both the
projects.
D. Ram mam-Ill HEPP (3x40MW) project is situated on river Rammam in
Teesta Basin, District Darjeeling (West Bengal). Construction of
approach roads and 2 steel bridges for power house and barrage have
been completed. Contracts for Civil, HM & EM works have been awarded
and Barrage excavation has been started.
E. Loharinag Pala HEPP (4x150MW) on river Bhagirathi in district
Uttarkashi of Uttarakhand was discontinued on the advice of Ministry of
Power in the year 2010. Possibility of revival was being explored by
Cabinet Secretariat in the meeting held on 12.09.2014.
7.7 Capacity Addition through Renewable Energy Sources
your Company is adding capacity through renewable sources of energy, to
broad- base its generation mix to ensure long term competitiveness,
mitigation of fuel risks and promotion of sustainable power
development.
your Company has set a target to add 10,000 MW through Renewable Energy
by 2022. Different initiatives in this regard are as under:
A. An MOU has been signed with the Government of Andhra Pradesh for
setting up of 1000 MW Solar PV project at AP. A letter of understanding
has been signed on 10.10.2014 for developing 750 MW Solar PV project in
Madhya Pradesh.
B. Solar PV Projects commissioned during the year-35MWp
Sl. Name of the Project Capacity Commissioned
No. (MWp) on
1. Rajgarh Solar, MP 50
20 MWp 30.04.2014 (30 MWp during
FY 2013-14)
2. Singrauli Solar, UP 15 31.12.2014
C. Solar PV Project under execution - 250 MWp
Sl. Name of the Project Capacity No.(MWp)
1. Anantpur Solar Phase-I, AP 250(5X50 MW)
D. New Solar PV Projects under bidding - 510 MWp
Sl. Name of the Project Capacity No.(MWp)
1. Solar Project at Badhla, 260
Phase-ll, Jodhpur, Raiasthan
2. Solar Project at Mandsuar, 250
Madhya Pradesh
E. Your Company is planning to add 750 MW of Solar PV Project at
Anantpur, AP under Phase- II.
F. The Company has issued NIT for developing 450 KWp rooftop Solar PV
Projects at Vindhyachal. The Company is also planning for development
of 7.45 MW potential rooftop Solar PV projects at existing projects.
your Company has been nominated as implementing agency by MNRE for the
selection of developers under National Solar Mission Batch-2 for total
15,000 MW. Under Tranche-I, 3,000 MW solar capacity is to be added. Out
of this, tender for 1,650 MW has been already floated by NTPC in the
States of AP and Rajasthan.
your Company has signed an MOU with MNRE, National Institute of Wind
Energy (NIWE), Powergrid, PFC, IREDA, PTC and GPCL to form a joint
venture company for offshore wind power development in India. JV
Agreement has been approved by your Board and approval from other
partners is awaited.
your Company has also signed an MOU with Chattisgarh Renewable Energy
Development Agency (CREDA) for development of Tatapani Geothermal
project in Chattisgarh.
The Joint Venture Company among NTPC Limited, Asian Development Bank
and Kyuden International Cooperation, Japan under the name PAN-ASIAN
Renewables Private Limited incorporated to develop projects portfolio
of about 500 MW of renewable power generation resources in India, is
under voluntary wind up as it could not find third investor in spite of
great efforts. Termination agreement has been approved by NTPC on
31.10.2014. Liquidator has also been appointed.
8. STRATEGIC DIVERSIFICATION- INCREASING SELF- RELIANCE
8.1 In order to strengthen its competitive advantage in power
generation business, your Company has diversified its portfolio to
emerge as an integrated power major, with presence across entire power
value chain through backward and forward integration into areas such as
coal mining, power equipment manufacturing, power trading and
distribution.
your Company continuously explores business opportunities through
market scanning and adopts new business plans accordingly.
8.2 The details of subsidiary companies engaged in business other than
in power generation are as under:
8.2.1 NTPC Electric Supply Company Limited (NESCL), a wholly owned
subsidiary was incorporated to foray into the business of distribution
and supply of electrical energy as a sequel to reforms initiated in the
power sector. The Company was implementing Rajiv Gandhi Gramin
Vidyutikaran Vojna (RGGVY) projects on turnkey basis and undertakes
turnkey execution of sub-stations for utilities and also takes up
project management consultancy.
During 2014-15, had completed nine rural electrification projects on
deposit work basis under RGGVY. Cumulatively, out of 30 RGGVY projects,
26 projects have been completed.
NESCL also undertook turnkey execution job on deposit work basis for
setting up electrical distribution network within 5 kms of NTPC
projects/stations. Out of the eight awarded projects two projects
completed in the financial year. Cumulatively, six projects have been
completed.
The shareholders of NESCL have now approved the transfer of existing
business of deposit and consultancy works under RGGVY from NESCL to
NTPC.
This subsidiary is also dis-associating with the business of retail
distribution of power in various industrial parks developed by Kerala
Industrial Infrastructure Development Corporation (KINFRA), through its
Joint Venture Company namely KINESCO Power and Utilities Private
Limited, as the future prospects of the JV Company are bleak.
8.2.2 NTPC Vidyut Vyapar Nigam Limited (NVVN), a wholly owned
subsidiary is involved in power trading, sale of fly ash and
cenosphere.
During the year 2014-15, the Company transacted business with various
state electricity boards spread all over the country and traded 10,315
MUs of electricity.
NVVN has been appointed as the nodal agency for cross border trading of
electricity with Bhutan and Bangladesh. The power supply to Bangladesh
from NTPC stations under PPA signed between NVVN and Bangladesh Power
Development Board has commenced from October 2013.
The Company has also been designated as the Nodal Agency for
implementation of Jawahar Lai Nehru National Solar Mission Phase-I by
purchasing and selling of grid connected bundled solar power across the
country.
NVVN had been actively involved in facilitating the development of a
wholesale electricity market in India and has developed significant
domain knowledge for development of power market. NVVN has been
sharing the learning with other stakeholders in Indian Power market
through various workshops and thus contributing to capacity building
among stakeholders.
The Board of your Company had decided to transfer ash business and sale
of cenospheres earlier carried out by NVVN to be carried out by
NTPC stations, in order to enhance fly ash utilization considering market
potential in the vicinity of power plant and local issues at stations
and to have better co-ordination between potential fly ash users and
Ash Management Group at stations.
8.3 The details of joint venture companies which are taking up
activities in our business related areas are given below:
Name of JV Partner Activities undertaken
Company
UPL Reliance Takes up assignments of
(Utility Infrastructure construction, erection and
Powertech Limited supervision of business in
Ltd.) power sector and other
sectors like O & M services,
Residual Life Assessment
Studies, non-Conventional
projects etc.
NASL ALSTOM Takes up renovation and
(NTPC Power modernization assignments
ALSTOM Generation, of power plants both in
India
Power AG and in other SAARC
countries.
Services The Company booked orders
Pvt Ltd.) of Rs.386.08 crore in FY
2014-15. Turnover of the
Company was Rs.66.49 crore.
R&M including RLA work
orders are under execution.
Bids have also been
submitted for other
work orders.
EESL PFC,PGCIL The Company was formed
(Energy and REC for implementation of
Energy
Efficiency Efficiency projects and to
Services promote energy conservation
Ltd) and climate change.
The Company is providing
consultancy on Energy Audit
of Buildings and
Agricultural Pump
replacement under Perform
Achieve Trade Scheme work
and standard & leveling
work of BEE, consultancy
work, implementing Bachat
and agricultural municipal
pump replacement for
various State Govts.
NHPTL NHPC,PGCIL, The Company has been
(National DVC and CPRI formed for setting up
facility
High for short circuit testing of
Power Test transformers and other
Laboratory electrical equipment
Pvt Ltd.) High Voltage Transformer
(HVTR) Lab and Medium
Voltage Transformer
(MVTR) Lab at Bina, M.P.
for short circuit testing
of Transformers upto 765
kV is under construction
which is expected to
be commissioned in 2015.
NPEX NHPC,PFC The Company was formed
(National TCS, BSE, IFCI, to facilitate, promote,
Power Meenakshi, assist, regulate and manage
Exchange DPSC nationwide trading of all
Ltd) forms of electrical energies
and also to settle trades in
a transparent fair and open
manner.
In view of the change in
market scenario and the
fact that NTPC's objects of
joining NPEX has not been
met till date, your Company
has decided to exit from
NPEX The Board of NPEX has
now decided to voluntary
wind up tte Company on the
recommendations of the
promoters. The liquidator
has been appointed for this
purpose.
NBPPL Bharat Heavy The Company was
(NTPC-BHEL Electricals incorporated for taking up
Power Limited activies of engineering,
Projects Pvt. procurement and conduction
Limited) (EPC) of power plants and
manufacturing of equipments.
The manufacturing plant of
NBPPL at Mannavaram,Tirupati
in Andhra Pradesh for CHP
and AHP has commenced
production from December
2014.
NBPPL Bharat Heavy The Company is executing
(NTPC-BHEL Electricals EPC contracts for balance of
Power Limited plants packages of Palatana
Projects Pvt. Combined Cycle Power plant
Limited) in Tripura, Namrup Combined
Cycle Power Plant in Assam,
Balance of Plant including
Erection & Commissioning
works of the entire plant
at Monarchak, Tripura for
NEEPCO and EPC Contract
for Unchahar. Both the
units of Palatana have been
commissioned and work at
other sites is in progress.
The Company's order
bookings as on March 31,
2015 was Rs. 35 lakh.
Total turnover of the
Company was Rs.520 crore
(provisional) for the
year 2014-15.
(BF-NTPC) Bharat Forge This Company was
BF-NTPC Limited incorporated to manufacture
Energy castings, forgings,
fittings and
Systems high pressure piping
required
Limited for power projects and other
industries.
As in the recent past
thermal power capacity
addition program has
suffered a major set back
due to a variety of reasons
including slow environment
clearance of new projects,
non- availability of land,
shortage of Indian coal
and costly imported coal,
your company has decided to
withdraw from this joint
venture company. Report of
the Valuer has been
accepted by both NTPC and
Bharat Forge. The proposal
of exit from this company
is awarting clearance from
Ministry of Power.
TELK Acquisition of The Company deals in
(Transfer 44.6% stake manufacturing and repair
mers and in TELK from of Power Transformers.
Electricals Government TELK order booking as on
Kerala of Kerala on 31.03.2015 was Rs.118.58
crore
Limited) June 19, 2009 and the total turnover of
the Company was Rs.130.02
crore in thefinancial year
2014-15.
9. GLOBALISATION INITIATIVES
9.1 Trincomalee Power Company Limited (TPCL), a 50:50 joint venture
Company between your Company and Ceylon Electricity Board was formed to
undertake the development, construction, establishment, operation and
maintenance of a coal based electricity generating station of 2X250 MW
capacity at Trincomalee at Sri Lanka. EIA report was submitted to
Central Electricity Authority, Sri Lanka on 09.02.2015. 9.2
Bangladesh-India Friendship Power Company Private Limited, a 50:50
joint venture company between NTPC and Bangladesh Power Development
Board (BPDB) has been formed for developing a 2X660 MW Coal based power
project at Khulna Division, Rampal, Bangladesh. Project activities at
site have commenced.
10. CONSULTANCY SERVICES: Consultancy Wing of your Company offers
services like Engineering, Operation & Maintenance Management, Project
Management, Contracts & Procurement Management, Quality Management,
Training & Development etc.
These services have been provided in international markets in Gulf
countries, Bangladesh, Nepal, Sri Lanka and Bhutan.
On international front, Owner's Engineers Services is being provided to
Trincomalee Power Company Ltd. for setting up their 2x250MW Coal Based
Power Project. Consultancy Wing is also providing O&M Management
Services to 2X120 MW Siddhirganj Peaking Power Plant of Electricity
Generation Company of Bangladesh under a World Bank funded contract.
On the domestic front, Consultancy Wing has been effectively sharing
its expertise with State, Central PSUs and other clients. These include
Project Monitoring Services to MPPGCL for 2x600MW Shree Singaji TPP &
2x250MW Satpura TPP by deputing NTPC experts at site.
11. FINANCING OF NEW PROJECTS
The capacity addition programs shall be financed with a debt to equity
ratio of 70:30. your directors believe that internal accruals of the
Company would be sufficient to finance the equity component for the new
projects. Given its low geared capital structure and strong credit
ratings, your Company is well positioned to raise the required
borrowings.
your Company is exploring domestic as well as international borrowing
options including overseas development assistance provided by bilateral
agencies to mobilize the debt required for the planned capacity
expansion program. The details of funding are discussed in the
Management and Discussion Analysis Report which forms part of this
Report.
12. FIXED DEPOSITS
your Company has discontinued the acceptance of fresh deposits and
renewals of deposits under NTPCs Public Deposit Scheme with effect from
11.05.2013. As such, there was no deposits which were not in compliance
with the requirements of Chapter-V of the Companies Act, 2013. The
details relating to deposits, as per the Companies Act, 2013 are as
under:
(a) Accepted during the year Nil
(b) Remained unpaid or 13 Deposits
unclaimed as at the end of amounting to
the year Rs.17.51 lakh*
(c) Whether there has been any default in
repayment of deposits or payment of
interest thereon during the year and if
so, number of such cases and the total
amount involved
(i) At the beginning of the Nil
year
(ii) Maximum during the Nil
year
(iii) At the end of the year Nil
* Pending for completion of legal formalities/ restraint orders/
non-receipt of claims
13. FUEL SECURITY
13.1 During the year, the supply position of coal and gas is given as
under:
13.1.1 Coal Supplies
Presently, long term Coal Supply Agreements are in place for 33,515 MW
for the units already commissioned/ to be commissioned.
To enhance coal supply at critical units, short- term Memorandum of
Understanding (MOU) has been signed with Eastern Coalfields Limited
(ECL) in 2014-15 for supply of 5.0 MMT of coal. Another short term MOU
has been signed with Northern Coalfields Limited (NCL) in 2014-15 for
supply of 3.0 MMT.
Letter of assurance (LOA) for quantity of 7.039 MMT of erstwhile 'E'
grade coal by CCL was issued on 24.03.2015 for North Karanpura Project.
For Mouda Unit#2 after considerable persuasion, the pricing of coal had
been revised by WCL and 'cost plus' FSA had been signed on 10.02.2015
for an ACQ of 0.6 MMT.
13.1.2 Domestic Coal and Imported Coal
During 2014-15, your Company received 167.4 MMT of coal as against
160.6 MMT in 2013-14 marking an increase of 4.23%.
Total domestic coal supply during 2014-15 was 151.1 MMT as against
149.8 MMT during 2013-14.
The total coal supply from CIL was 138.6 MMT and from SCCL was 12.5 MMT.
7.0 MMT of coal was procured through bilateral MOU during 2014-15.
During 2014-15, your Company imported 16.4 MMT of coal as against 10.8
MMT in 2013-14.
13.1.3 Sourcing of coal through E-auction
Your Company participated in 3 e-auctions for coal procurement during
the financial year 2014- 15 in which total coal allotted was 0.19 MMT.
Total coal received through e-auction was 0.94 MMT (including receipt
of coal out of previous years allocation) during 2014-15 as compared to
3.15 MMT during 2013-14.
13.1.4 Supply through Inland Waterways
During 2014-15, about 5.06 lakh MT imported coal has been supplied
through inland waterways to Farakka station.
13.1.5 Rationalisation of Linkage
With the initiatives of Ministry of Power and Ministry of Coal, Inter
Ministerial Task Force has recommended rationalisation of linkage for
optimization of transportation cost and de- congestion of railway
network. In this respect, your company has rationalised the linkage of
Mouda station from MCL to SECL which may result in savings upto
Rs.45.39 crore per annum.
13.1.6 Swapping of coal with GSECL
In September 2014, NTPC had entered into swapping agreement with
Gujarat State Electricity Corporation Limited (GSECL) wherein imported
coal of NTPC-Sipat was swapped with GSECL's domestic coal. This will
result in substantial savings for both utilities.
13.1.7 Commencement of third party sampling
Third party sampling by agency deployed by power utility has commenced
for the first time in the country. Accordingly, all NTPC stations
except Ramagundam STPS deployed the third party sampling agents.
13.2 Gas supplies
During 2014-15, your Company received 6.41 MMSCMD of gas and RLNG as
against 6.87 MMSCMD received during 2013-14. The gas off- take in
2014-15 includes 6.17 MMSCMD of gas and 0.24 MMSCMD of RLNG. Gas
offtake was less due to less availability of generation schedule on
RLNG from the beneficiary states.
your Company has Administered Price Mechanism (APM) gas agreements up
to the year 2021 and Panna Mukta Tapti (PMT) gas agreements up to the
year 2019 for its gas stations. The term sheet for non-APM gas with
GAIL is valid till 2016 and long- term RLNG supply agreement with GAIL
is valid till 2019.
your Company has been making arrangements for tie-up and supply of spot
RLNG or Fallback RLNG from domestic suppliers on 'reasonable endeavour"
basis based on requirement and availability from time to time.
The Government extended the guidelines for 'Clubbing/ diversion of gas
between two or more power plants' for gas stations of your company for
another year w.e.f. 12.02.2015. With the diversion of unutilised gas
from NTPC WR stations to NCR stations, additional 2.37 BUs (approx) of
electricity has been generated at NCR gas stations during FY 2014-15.
13.3 Development of Coal Mining projects
Your Company was allocated ten coal blocks by the Government of India,
out of which, five blocks namely, Chatti-Bariatu, Kerandari,
Talaipalli, Dulanga, Chatti-Bariatu (South), were cancelled by the
Hon'ble Supreme Court through order dated 24.09.2014. Subsequently, the
Ministry of Coal, on 24.03.2015, declared reallocation of four coal
blocks to your Company (Chatti-Bariatu and Chatti-Bariatu (South) have
been clubbed), for which allotment agreements had been signed between
your company and Government of India on 30.03.2015.
Government of India has also issued formal allotment letters to your
Company on 31.03.2015 for Banai, Bhalumuda coal blocks. Kundanali-
Luburi coal block has been allotted jointly to your company and J&K
State Power Development Company Limited (J&KSPDCL). For developing
Kundanali-Luburi coal block, a joint venture company is proposed to be
formed between your Company and J&KSPDCL.
With the allocation of total 8 coal blocks with estimated geological
reserves of over 5 BT, your company expects to produce about 82 million
tonnes of coal per annum.
In Pakri-Barwadih coal mining block, all the necessary statutory
clearances are available. Mine opening permission has already been
received from Coal Controller and DGMS. Fresh contract for appointment
of Mine Developer & Operator (MDO) for Pakri-Barwadih is in progress as
the earlier contract was terminated due to its poor performance. MDO
contract awarded for Chatti- Bariatu was also terminated due to
cancellation of the coal block by the Supreme Court.
Meanwhile, as a parallel action, short-term contracts for removal of
overburden, coal extraction and transportation upto Railway Siding are
planned from a part of Pakri-Barwadih block (Eastern Pit) for which
tendering has been done. Your company has received mine opening
permission from DGMS for Chatti-Bariatu coal block.
your company is trying for allocation of few more coal blocks in the
next round of allotment of coal blocks for Government Companies.
your Company had formed Joint Venture Companies namely CIL NTPC Urja
Private Limited, NTPC-SCCL Global Ventures Private Limited and
International Coal Ventures Private Limited to explore further avenues
in the area of coal mining. However, these JV companies have not been
able to achieve their objectives owing to certain constraints like
inability of the JV Company to execute the work, government directive
etc. In case of CIL NTPC Urja Private Limited, the company has applied
to the Government of India for reallocation of coal blocks deallocated
from it in 2011.
NTPC-SCCL Global Ventures Private Limited is being wound up voluntarily
as the Company could not start its business since its incorporation due
to non-availability of any business prospects.
Further, the Company has decided to exit from International Coal
Ventures Private Limited for which clearance from cabinet is awaited.
13.4 Exploration Activities
In Cambay exploration block allotted under NELP-VIII, held by NTPC as
operator with 100% participating interest, drilling of one explanatory
well has been completed and drilling of second well is in progress.
Drilling of balance exploration wells is planned in the FY 2015-16.
In one of KG basin exploration blocks viz. KG- OSN-2009/1 where ONGC is
the operator and NTPC has 10% stake, drilling of an exploratory well
has been completed. Tests conducted did not indicate presence of
hydrocarbons in the well. The well has been plugged and abandoned. In
other KG basin exploration block viz. KG- OSN-2009/4 where ONGC is the
operator and NTPC has 10% stake, the exploration activities are in
progress and ONGC has submitted a proposal to the Government of India
for reduction on minimum work program as the permitted area of the
block has been reduced because of non-grant of defence clearance. It
has been decided to relinquish Andaman basin exploration block viz.
AN-DWN-2009/13 where ONGC is the operator and NTPC has 10% stake, to
the Government of India as per advice from ONGC.
14. BUSINESS EXCELLENCE: GLOBAL BENCHMARKING
To achieve higher levels of excellence, the company has developed and
adopted its own 'NTPC Business Excellence Model' on the lines of
globally reputed Excellence Models such as Malcom Baldrige Model, USA
and EFQM Model of Europe. The model has been deployed at our Business
Units (Stations) and your Company carry out assessment of generating
stations using this framework of excellence.
In the financial year 2014-15, the 5th cycle of assessment was
completed in which 21 generating stations were assessed by a team of
certified and proficient assessors. Business Excellence Awards for Best
Performance to Dadri and Runner-up shield to Talcher-Thermal stations
were presented by the Union Minister of Power, GOI, in the Indian Power
Stations Conference- 2015 held at New Delhi.
As a next step on the Journey of Excellence, the company is planning to
implement Business Analytics and Information Management initiative to
enhance overall strategic focus and alignment.
Contemporary quality initiatives and techniques like Quality Circles,
Professional Circles, 5S, integrated management system (IMS) etc have
been deployed across the organization for continuous improvement. Our
Quality Circle teams of workmen have been consistently representing
NTPC at national and international Quality Circle conventions and
bringing many laurels.
15. RENOVATION & MODERNISATION
In the present scenario of severe resource constraint, Renovation and
Modernization (R&M) of power plants is considered to be the best option
for bridging the gap between demand and supply of power, as R&M schemes
are cost effective. It increases the life of the plant, improves
performance & availability, enhances capacity and ensures safe,
reliable and economic electricity production by replacement of
worn-out, deteriorated or obsolete electrical, mechanical,
instrumentation, controls and protection system by state-of-the-art
equipment. It also helps in compliance of environment norms.
With a view to removing technological obsolescence, renovation of
control & instrumentation (C&l) is in progress in Singrauli-I & II,
Korba -I & II, Ramagundam -I & II, Farakka- II, Dadri Thermal- I,
Unchahar- I , Talcher-I and Kahalgaon-I STPS. During 2014-15, C&l R&M
was completed in one 500 MW unit of Singrauli, one 200 MW unit & one
500 MW unit of Korba, two 500 MW units of Ramagundam, one 210 MW unit
of Dadri Thermal, one 210 MW unit of FGUPTS and one 500 MW unit of
Talcher STPS. On completion of these schemes, the C&l systems in these
stations will be brought nearly on par with the new power projects.
Because of the very high working temperatures, R&M of Gas Turbines
including their Control & Instrumentation is essential after around 15
years of life. During the year, this activity was completed in all the
4 Gas Turbines (GT) each in Kawas and in Auraiya and 2 out of 3 GT in
Gandhar.
With a view to comply with increasingly stringent environment norms of
reduced emission level prescribed by State Pollution Control Boards,
Renovation and Retrofitting of Electrostatic Precipitator (ESP)
packages have been awarded and work is in progress in Badarpur-ll,
Singrauli-I & II, Farakka-I, Unchahar-I, Korba-I & II, Rihand-I,
Vindhyachal-I & II, Talcher STPS -I & II and Talcher TPS-II. Amongst
these, Moving Electrode Electrostatic Precipitator technology (MEEP) is
being adopted for the first time in the country in Rihand Station.
During 2014-15, ESP R&M of Unit#4 of Badarpur was completed. To derive
benefits of the latest advancements in technology, in cooperation with
CEA, EEC/VGB/ Steag Germany, a study has been taken up on ESP
performance improvement using CFD modeling in Unit#6 of Ramagundam,
with scheduled completion in December 2015.
16. HUMAN RESOURCE MANAGEMENT
16.1 Your Company takes pride in its highly motivated and competent
Human Resource that has contributed its best to bring the Company to
its present heights. The productivity of employees is demonstrated by
increase in generation per employee and reduction of Man-MW ratio year
after year. The over-all Man-MW ratio for the year 2014-15 excluding
JV/subsidiary capacity is 0.61 and 0.56 including capacity of JV/
Subsidiaries. Generation per employee was 10.72 MUs during the year
based on generation of NTPC stations.
The total employee strength of the company stood at 24,067 as on
31.3.2015 against 25,013 as on 31.3.2014.
FY 2014-15 FY 2013-14
NTPC
Number of 22,496 23,411
employees
Subsidiaries & Joint Ventures
Employees of NTPC in 1,571 1,602
Subsidiaries & Joint Ventures
Total employees 24,067 25,013
The attrition rate of the NTPC executives (including Executive Trainees
and those posted in Subsidiaries and JVs) during the year was 1.35%.
16.2 Employee Relations
Employees are the driving force behind the sustained stellar
performance of the company over all these years of company's
ascendancy. As a commitment towards the Company's core values,
Employees' Participation in Management was made effective based on
mutual respect, trust and a feeling of being a progressive partner in
growth and success. Communication meetings with unions and
associations, workshop on production and productivity, etc were
conducted at projects, regions and corporate level during the year.
Both, employees and management complemented each other's efforts in
furthering the interest of the company as well as its stakeholders,
signifying and highlighting over-all harmony and cordial employee
relations prevalent in the Company.
16.3 Safety and Security
Occupational health and safety at workplace is one of the prime
concerns and utmost importance is given to provide safe working
environment and to inculcate safety awareness among the employees.
Company recognizes and accepts its responsibility for establishing and
maintaining a safe working environment for all its employees and
associates. Your Company has 3-tier structure for Occupational health
and Safety management, namely at Stations/Projects, at Regional Head
Quarters and at Corporate Centre.
All our stations are certified with OHSAS-18001/ IS-18001. Internal
safety audits by our own safety officers of various projects/stations
and external safety audits by reputed organizations are carried out for
each Project/Station.
Cross functional safety task force for O&M and construction projects
are functional at all projects/ stations to monitor unsafe working
conditions at site and its rectification. For strict compliance &
enforcement of safety norms and practices by the contractors, safety
clauses are included in General Conditions of Contract/ Erection
Condition of Contract.
Many of our plants have been awarded with prestigious safety awards
conferred by various Institutions/Body like Ministry of Labour &
Employment-Govt. of India, National safety council, Institution of
Engineers (India), in recognition of implementing innovative safety
procedures and practices.
Security: Your Company recognizes and accepts its responsibility for
establishing and maintaining a secured working environment for all its
installations, employees and associates. This is being taken care of by
deploying CISF at all units of your Company as per norms of MHA.
Concrete steps are being taken for upgrading surveillance systems at
all projects/ stations by installing state- of-the-art security
systems.
16.4 Training and Development
In line with its objective of being a learning organization with
skilled and committed employees, your Company has relentlessly promoted
training and development of not only its own employees but also other
professionals of the power sector. The objective is being driven by a
comprehensive infrastructure comprising Power Management Institute
(PMI) at the corporate level and Employee Development Centers at its
sites. The training imparted is in tune with emerging needs and
challenges and for this purpose, the existing training programs are
reviewed and some new programs are included in the annual calendar
every year.
PMI has taken firm steps to strengthen the Project Management
competency in the country through an International Project Management
framework. A Post Graduate Certificate in Project Management (PGCPM)
programme in collaboration with IIM- Indore is being conducted for
developing long term project management competency. PMI has been
providing skill based training to various public and private sector
utilities/companies. A similar tie-up has been done with IIM-Ahmedabad
for knowledge creation.
For all round development of India's power sector, PMI has conducted
several customized training programmes for the benefit of State
utilities, CPSEs and private sector companies at their locations as
well as in PMI. In addition, several individuals from State utilities
have benefited from the regular training programmes being conducted at
PMI, Noida. In all, 1,163 participants from such other organizations
got trained at PMI during 2014-15.
During 2014-15, PMI has conducted total 441 training programmes
covering 9,373 executives, logging a total of 36,235 training mandays.
PMI conducted 20 training programs through Web Conferencing during
2014-15.
PMI imparts hands-on training to participants from various power
utilities on Super Critical Technology through its 660 MW Simulator. So
far, over 1000 power plant professionals have been provided training
since its inception.
PMI also conducted 3 International Training Programmes, each of total 6
weeks' duration, for ABB Limited in Abu Dhabi on Power Plant Operation
and Simulator Training on GE Combined Cycle Gas Power Plant, thus
creating a global brand image for itself and Company. A high level
programme titled "Strategic Business Sense and Leadership", anchored by
renowned faculties, was held exclusively for senior Executives of the
Company during 25-28 November, 2014. Programmes on Enterprise Risk
Management are also being held for Senior Management personnel at
Regional Offices of NTPC.
your Company is among the pioneers to start an Employee Assistance
Program (confidential expert counselling service for employees and
their family members).
With the objective of grooming professionals into world class power
plant managers, PMI has opened "NTPC School of Business" for running PG
Diploma in Management approved by AICTE. This 15 months course will
also include learning inputs from international faculty and provide
exposure to industries outside India.
PMI is mandated to bolster the skills initiative of your Company for
development of the country's youth. In line with this, PMI as the nodal
agency is facilitating the adoption of existing Government ITIs and
setting up of new ITIs in different parts of the country spanning 16
States. Up till now, your Company has adopted 17 ITIs and set up 7 new
ITIs near its power stations, thus associating with total 24 ITIs. Of
the 17 Govt. ITIs adopted by your Company, 14 ITIs were adopted under
the PPP scheme of Gol and 3 ITIs have been adopted under bilateral
agreement with different State governments. These initiatives by your
Company have resulted in creation of total 1,595 new seats by starting
of new trades/units in the adopted & new ITIs, and, till 31.03.2015,
cumulatively, a total of 23,131 students have benefitted from this
initiative. For these ITI students, NTPC organised total 46,864 mandays
of industrial training/ plant visits. Due to all these skill
development initiatives, your Company has been conferred two awards
"The Education Excellence Award - 2013" and "PMI (India) Award for
Community Development-2014".
17. SUSTAINABLE DEVELOPMENT
Your Company believes that growth and development can be sustainable
only if they happen in all the three fronts i.e Environment, Economic
and Social. In line with NTPC Vision, -Powering India's Growth', the
Company adopts business approach which is guided by Sustainable
Development i.e. development that meets the needs of the present
without compromising the ability of future generations to meet their
own needs.
Business Responsibility Report is attached as Annex-IX and forms part
of the Annual Report.
Initiatives by the Company
your Company has developed a policy on Sustainable Development in
accordance with a sustainable development plan prepared for the year
2014-15. The main areas covered were projects on bio-diversity
conservation, waste management, reduction in air emissions in addition
to promotion of renewable energy. Major activities carried out under
this plan included plantation of more than 2 lakh saplings in and
around plants, installation of roof top solar PV, solar street lights,
rain water harvesting, installation of bio- methanation plant, vermi
composting, other techniques for conversion of domestic waste in
organic fertilizer. Studies like pollutant source apportionment, human
health risk assessment and environment impact assessment are also being
taken up.
A total expenditure of Rs. 19.53 crore was incurred on these
Sustainable Development Projects during the Financial Year 2014-15.
In its endeavor to achieve the goals of Sustainable Development, your
Company is addressing the issues through multi-pronged approach as per
the details given below:
17.1 Inclusive Growth -Initiatives for Social Growth
17.1.1 Corporate Social Responsibility:
Your Company has always discharged its social responsibility as a part
of its Corporate Governance philosophy. It follows the global practice
of addressing CSR issues in an integrated multi stake- holder approach
covering the environmental and social aspects.
NTPC CSR initiatives are in focus areas of basic infrastructure
development like sanitation, road, drinking water, primary education,
community health, vocational training, women empowerment etc. Overall
impact of these initiatives includes improvement in health, academic
success, reduction in number of girl dropouts, reduced hardship and
improved connectivity etc. During the year special thrust has been
given to the "Swachh Vidyalaya Abhiyan" for construction of toilets in
government schools.
17.1.2 NTPC Foundation
NTPC Foundation is engaged in serving and empowering the physically
challenged and economically weaker sections of the society.
Details of expenditure incurred and initiatives undertaken by the
Company under CSR are covered in the Annual Report on CSR annexed as
Annex-VII to this Report.
17.1.3 Rehabilitation & Resettlement (R&R)
your Company is committed to help the populace displaced for execution
of its projects and has been making efforts to improve the socio-
economic status of Project Affected Persons (PAPs). In order to meet
its social objectives, your Company is focusing on effective R&R of
PAPs and undertaking community development activities in and around the
projects.
R&R activities are initiated at our projects by undertaking need based
community development activities in the area of health, education,
water, capacity building infrastructure etc by formulating Initial
Community Development (ICD) Plan in consultation with concerned
Panchayat, district administration and opinion makers of the locality.
As per the policy, a detailed socio-economic survey (SES) is conducted
by a professional agency to create a baseline data of PAPs.
R&R plan expenditure is implemented in a time bound manner so as to
complete its implementation by the time the project is commissioned. A
social impact evaluation is being conducted by a professional agency to
know the efficency of R&R Plan implementation for future learning and
improvements.
17.1.4 R&R achievements during the year:
(a) Initial Community Plan (ICD):
- ICD plan for Bilhaur project enchanced.
- Community Development plan for Kahalgaon MGR to Hurra Mines approved.
- Implementation of ICD activities continued at Barethi, Darlipalli,
Gajmara, Khargone, Nabinagar (BRBCL) and Nabinagar (NPGCL) projects.
(b) Rehabilitation and Resettlement (R&R) Plan:
- R&R plans for Barethi, Mouda-II, Khargone, Darlipalli, Unchahar-IV
and Rammam -III projects covering areas like health, education,
sanitation, drinking water, infrastructure facilities finalized and
approved in consultation with the stakeholders.
- R&R activities were implemented in new green/ brownfield Thermal
Projects at Barh, Bongaigaon, Gadarwara, Muzaffarpur, Korba, Kudgi,
Lara, Meja, Mouda, North-Karanpura, Solapur, Tanda, Vallur,
Vindhyachal. In Hydro Projects at Koldam, Lata-Tapovan, Tapovan-
Vishnugad and Coal Mining projects at Pakri-Barwadih, Chhatti- Bariatu,
Kerendari, Dulanga and Talaipalli, R&R activities were implemented.
- Provisions made for running expenses for Solapur Power and Industrial
Training Institute, with three trades electrician, fitter and welder.
- INT, Raipur - construction is in progress.
- Setting up of mother and child care hub and critical care unit
approved for Katwa sub- division hospital, Burdwan as part of R&R
expenditure for Katwa Project.
- Mobile Health Clinic at Kudgi, Nabinagar (NPGCL), Pakri-Barwadih,
Nabinagar (BRBCL) and Gajmara projects continued this year.
- SES for Bilhaur and Mouda-II projects was completed.
17.2 Environment Management - Initiatives for preserving Environment
Vision Statement on Environment Management:
"Going Higher on Generation, lowering GHG intensity"
your Company is pursuing the objective of environment protection as one
of its prime responsibilities and focuses its efforts to mitigate the
impact of its operation on surrounding environment To meet the
environmental challenges of 21st century and beyond, the Company has
adopted sound environment management practices and advanced environment
protection system to minimize impact of power generation on
environment.
your Company has adopted advanced and high efficiency technologies such
as super critical boilers for recently commissioned and the upcoming
green field projects. Your company is augmenting its capacity by
installing solar power systems and micro hydel power systems attached
to its thermal power stations, wherever possible, so as to encourage
garnering of renewable energy resources. The Company is also designing
its up-coming plants to use beneficiated coal and imported low ash
coal. These measures are aimed not only to achieve reduction in
pollution and minimize use of precious natural resources but also to
lead to reduction of COe emissions per unit of generation thereby
reducing global warming.
17.2.1 Control of Air Emissions: High efficiency Electro- static
Precipitators (ESPs) with efficiency of the order of 99.97% and above,
with advanced control systems have been provided in all coal based
stations to keep Suspended Particulate Matter (SPM) below permissible
limits. All up-coming new plants are being provided with ESPs designed
in such a manner that would cater to the anticipated future norms.
Performance enhancement of ESPs operating over the years is being
carried out by augmentation of ESPs fields, retrofitting of advanced
ESP controllers and adoption of sound O&M practices. Flue Gas
Conditioning systems have also been provided at our old units which are
helping in reduction of SPM emissions below statutory limits even
during coal quality variations due to blending of coal etc.
NOx control in coal fired plants is achieved by controlling its
production by adopting best combustion practices. Since tall stacks are
provided in coal stations, NOx emitted through stacks is widely
dispersed and diluted. In gas based stations, NOx control systems
(hybrid burners or wet DeNOx) have been provided for good combustion
practices.
Fugitive emission from ash pond is controlled by maintaining water
cover, tree plantation on abandoned ash ponds, water spray and earth
cover in inactive lagoons. Providing dust suppression and extraction
system in CHP area has further added to reduction in fugitive dust in
the vicinity of power stations.
17.2.2 Control of water pollution and promotion of water conservation:
Various water conservation measures have been taken up to reduce water
consumption in power generation by using 3Rs (Reduce, Recycle & Reuse)
as guiding principle.
Provision of advanced treatment facilities such as Liquid Waste
Treatment Plants (LWTP), Recycling Systems for Ash Pond Effluent called
Ash Water Recirculation System (AWRS) and closed cycle condenser
cooling water systems with higher Cycle of Concentration (COC), rain
water harvesting wherever plausible and reuse of treated sewage
effluent for horticulture purposes are some of the measures implemented
in most of the stations. All these measures have resulted in reduction
of effluent discharge from the power plants of NTPC.
17.2.3 Automation of environment measurement system: 67 continuous
ambient air quality monitoring stations (AAQMS) have been installed to
capture the real time data and access thereof viz., PM 10, PM 2.5, SO2,
NOx and access has been provided to the Central Pollution Control Board
and State Pollution Control Boards. Additional ozone analyzers for
ambient air are also being provided phase-wise at the stations.
Installation of Continuous Emission Monitoring Systems (CEMS) to
monitor emissions of SO2, NOx and CO2 in all its existing units on real
time basis is in advance stage. It is also installing Effluent Quality
Monitoring System (EQMS). For all the upcoming projects, real time
monitors for ambient air and emissions are included in the engineering
packages during design stage itself.
17.2.4 Environmental Studies: Your Company has taken a number of
studies for better environment protection and to develop strong
scientific database.
17.2.5Tree Plantation: Your Company has planted 21.783 million trees
till date throughout the country as a measure of massive afforestation.
The afforestation has not only contributed to the 'aesthetics' but also
helped in carbon sequestration by serving as a 'sink' for C02 released
from the stations and thereby protecting the quality of ecology and
environment in and around the projects.
17.2.6 ISO 14001 & OHSAS 18001 Certification: All NTPCs stations have
been certified with ISO 14001 and OHSAS 18001 by reputed National and
International certifying agencies as a result of sound environment
management systems and practices.
17.3 Quality Assurance and Inspection (QA&I)
Your company has invested hugely in Quality with the view to secure
long term plant reliability. Investment in terms of committing
adequate number of qualified and trained human resources for quality
related activities, laboratories at the construction sites and, more
importantly, robust processes providing for direction methods and
standards of performance, for the various tasks associated with
quality.
Quality in your company has a much deeper meaning: identification of
needs, planning for realization of the needs jointly with the stake
holders including the various suppliers and verification whether the
needs have been built into the product/service during manufacturing and
erection & commissioning. The quality loop is further extended to
capture whether the originally indented plant reliability and operation
standards have been realized or not. Gaps, if any, are filled through
resetting the methods and standards through continuous improvements.
Your company's performance indicators, exceptional by any standards,
bears testimony to the soundness of the quality system deployed.
Your Company is represented on various technical committees of ISO and
IEC and is actively contributing in formulation and updating of power
sector technical and quality standards/ guidelines.
17.4 Clean Development Mechanism (CDM)
Your Company is undertaking climate change issues proactively.
Three of its solar projects namely 5MW each solar PV project at Dadri,
Port Blair (Andaman & Nicobar) and Faridabad had already been
registered with UNFCCC CDM Executive Board. 8MW Small Hydro Power
Project at Singrauli is in advanced stage of validation and is likely
to be submitted shortly to UNFCCC for CDM registration. 6173 numbers of
CERs for 5MW solar PV Power project at Port Blair (A&N) had already
been issued by UNFCCC CDM Executive Board. Verification/ issuance of
CERs for 5 MW solar power PV project at Dadri is in process.
17.5 Ash Utilisation
During the year 2014-15, 59.15 million tonnes of ash was generated and
39.52% viz. 23.38 million tonnes of ash had been utilized for various
productive purposes.
Important areas of ash utilization are - cement & asbestos industry,
ready mix concrete plants (RMC), road embankment, mine filling, ash
dyke raising & land development.
Pond ash from all stations of your Company is being issued free of cost
to all users. Fly ash is also being issued free of cost to fly ash/
clay-fly ash bricks, blocks and tiles manufacturers on priority basis
over the other users from all coal based thermal power stations. The
funds collected from sale of ash up to Dec'14 was being maintained in a
separate account by NVVN, a wholly- owned subsidiary company. Now this
fund has been transferred to your Company and is being maintained in
the separate account. This fund is being utilized for development of
infrastructure facilities, promotion and facilitation activities to
enhance ash utilization.
your Company has also introduced Ash Policy, which is a vision document
dealing with the ash utilization issue in an integral way from
generation to end product. This policy aims at maximizing utilization
of ash for productive usage alongwith fulfilling social and
environmental obligations as a green initiative in protecting the
nature and giving a better environment to future generations.
The quantity of ash produced, ash utilized and percentage of such
utilization during 2014-15 from NTPC Stations is at Annex-VIII.
17.6 CenPEEP - towards enhancing efficiency and protecting Environment
your Company initiated a unique voluntary program of GHG emission
reduction by establishing -Center for Power Efficiency and
Environmental Protection (CenPEEP)' and under this program, it is
estimated that cumulative COe avoided is 40.25 million ton since 1996.
CenPEEP is coordinating the implementation of -Perform, Achieve & Trade
(PAT) Scheme' under Prime Minister's National Mission on Enhanced
Energy Efficiency (NMEEE) wherein 22 stations of your Company are
Designated Consumers (DC). Based on the gap analysis, station specific
action plans were prepared & implemented for efficiency improvement and
reduction in auxiliary power to achieve the PAT targets.
Thrust has been given for efficiency improvement and sustenance through
strategic initiatives of Energy Efficiency Management System (EEMS),
and reliability improvement through Reliability Centered Maintenance
(RCM) & PdM systems. A pool of over 350 certified Energy Auditors has
been created in your Company helping in the culture of energy
conservation. A dedicated group CEETEM - Centre for Energy Efficient
Technology & Energy Management, coordinates regular Energy audits to
induce focused actions and activities for improvement.
Monitoring and analysis of critical efficiency parametric aberrations &
draft power consumption is done using PI dashboards & online systems
like Thermal Loss Analyser (TLA), Output Loss Analysis (OLA) and System
Energy Efficiency Display (SEED). These systems assist the operator in
tracking the gaps in heat rate and auxiliary power consumption &
facilitate tracking and trending of degradation of equipment
performance and formulation of action plans for improvement.
Under Indo-US bilateral program 'Partnership to Advance Clean Energy -
Deployment (PACE-D)' supported by USAID, a manual on 'Benchmarking for
Super critical Units' was prepared jointly with US experts.
CenPEEP is actively involved in the training and development of power
professionals from your Company and other utilities in the power
sector. It conducts domain specific workshops in areas of Boiler &
Auxiliaries, Turbine & Auxiliaries, Cooling Towers, RCM and PdM
technologies etc.
18. NETRA - R&D Mission in Power Sector
your Company, as the leading power utility of the country, has assigned
1% of PAT for R&D activities. Its research efforts are focused to
address the major concerns of the sector as well as the futuristic
technology requirements of the sector. In this effort, company has
established NTPC Energy Technology Research Alliance (NETRA) as
state-of-the-art centre for research, technology development and
scientific services in the domain of electric power to enable seamless
work flow right from concept to commissioning. The focus areas of NETRA
are - Efficiency Improvement & Cost Reduction; New & Renewable Energy;
Climate Change & Environmental protection and Advanced Scientific
Services.
Research Advisory Council (RAC) of NETRA comprising of eminent
scientists and experts from India and abroad is in place to steer
research direction.
In order to provide maximum possible benefit to the stations while
developing green technologies, many projects/activities have been
undertaken for implementation.
NETRA continued to provide scientific support to all stations as well
as many other utilities stations in the area of oil/water chemistry,
environment, electrical, rotor dynamics etc for efficient performances.
NETRA laboratories are accredited as per ISO 17025 and its NDT
laboratory has also been recognized as "Well known Remnant Life
Assessment Organization" under the Boiler Regulations, 1950. Phase-ll
NETRA infrastructure is under construction with approx 21000 sq m floor
area and is expected to be completed by Dec'2015. Phase II will have 30
laboratories, workshop, pilot plant bay and an auditorium with seating
capacity of 400 persons.
19. IMPLEMENTATION OF OFFICIAL LANGUAGE
Several steps were taken for the proper propagation and implementation
of Official Language Policy of Government of India in the Company.
Meetings of Official Language Implementation Committee were held on 20th
June, 30th September, 30th December, 2014 & 24th March, 2015 in which the
implementation of Hindi in the Organization was reviewed thoroughly.
Various Hindi competitions were organized during Hindi fortnight from
1st to 14th September, 2014 in the corporate office as well as in all
projects of NTPC Limited. Corporate Hindi Magazine "Vidyut Swar" was
awarded All India first prize by Hon'ble President of India. Hindi
workshops were conducted for the various departments of the Company.
Renowned Hindi scholars inspired the participants of Hindi workshops to
use Hindi in day-to-day official work.
Most of the office orders, formats and circulars were issued in Hindi
as well. Important advertisements and house journals were released in
bilingual form- in Hindi and in English.
your Company's website also has a facility of operating in bilingual
form- in Hindi as well as in English.
20. VIGILANCE
20.1 Vigilance Mechanism:
your Company ensures transparency, objectivity and quality of decision
making in its operations, and to monitor the same, the Company has a
Vigilance Department headed by Chief Vigilance Officer, a nominee of
Central Vigilance Commission. The four units of Vigilance Department
namely Corporate Vigilance Cell, Departmental Proceeding Cell (DPC),
MIS Cell and Technical Cell (TC) deal with various facets of vigilance
mechanism.
333 surprise checks were conducted in various departments and recovery
was made against discrepancies.
Various guidelines were issued during 2014-15 to improve systems in the
Company pertaining to procurement, accounting, payments, agreements,
enlistment of vendors etc.
20.2 Implementation of Integrity Pact
Your Company is committed to have total transparency to its business
processes and as a step in this direction; it signed a Memorandum of
Understanding with Transparency International India in December, 2008.
The Integrity Pact is being implemented for all contracts having value
exceeding Rs.10 crore. Three Independent External Monitors have been
nominated by the Central Vigilance Commission for all contracts with
value exceeding Rs.100 crore. New format of Integrity Pact as per the
Company's requirement and the suggestions given by IEMs were
implemented.
20.3 Implementation of various policies/ circulars
Complaint Handling Policy, Fraud Prevention Policy and Whistle Blower
Policy have been implemented in the Company to build and strengthen a
culture of transparency. A uniform policy for banning of business
dealings with the contractors/ vendors has been formulated and
implemented.
During 2014-15,159 complaints were received, out of which 84 complaints
were carried to a logical conclusion and the remaining 75 complaints
are under various stages of investigation. Appropriate disciplinary
action has also been initiated wherever necessary.
20.4 Vigilance Awareness Week and Workshops
During 2014-15,41 preventive vigilance workshops were conducted at
various projects/ places in which 1,230 employees participated.
Vigilance awareness week was observed from October 27, 2014 to November
2, 2014 in all NTPC projects and stations/ establishments.
21. REDRESSAL OF PUBLIC GRIEVANCES
your Company is committed for resolution of public grievance in
efficient and time bound manner. Company Secretary has been designated
as Director (Grievance) to facilitate earliest resolution of public
grievances received from President Secretariat, Prime Minister's
Office, Ministry of Power etc.
In order to facilitate resolution of grievances in transparent and time
bound manner, Department of Administrative Reforms & Public Grievances,
Department of Personnel & Training, Government of India has initiated
web-based monitoring system at www.pgportal.in.
As per directions of GOI, public grievances are to be resolved within
two months time. If it is not possible to resolve the same within two
months period, an interim reply is to be given. Your company is making
all efforts to resolve grievances in above time frame.
22. RIGHT TO INFORMATION
Your Company has implemented Right to Information Act, 2005 in order to
provide information to citizens and to maintain accountability and
transparency. The Company has put RTI manual on website for access to
all citizens of India and has designated a Central Public Information
Officer (CPIO), an Appellate Authority and APIOs at all sites and
offices of the Company.
During 2014-15, 1,288 applications were received under the RTI Act, out
of which 1,242 applications were replied to till 31.03.2015.
23. USING INFORMATION AND COMMUNICATION TECHNOLOGY FOR PRODUCTIVITY
ENHANCEMENT
Your Company has implemented an Enterprise Resource Planning (ERP)
package covering maximum possible processes across the organization
including subsidiaries. In addition to the core business processes and
Employee Self Service (ESS) functionality, the ERP solution also
includes e-procurement, Knowledge Management, Business Intelligence,
Document Management, and Workflow etc. The ERP system is fully managed
through in-house expertise from process groups and technical groups.
Parallely, in-house solutions have been developed to take care of the
non-ERP areas
A state of the art data centre with centralized server facility for ERP
to cater to the entire Company is in Operation at NOIDA A100% disaster
recovery centre is also operational at Hyderabad for change over in
case of any emergency.
24. NTPC GROUP: SUBSIDIARIES AND JOINT VENTURES
Your Company has currently 4 subsidiary companies and 21 joint venture
companies for undertaking specific business activities.
A statement containing the salient feature of the financial statement
of your Company's Subsidiaries, Associate Companies and Joint Ventures
as per first proviso of section 129(3) of the Companies Act, 2013 is
included in the consolidated financial statement.
The financial statements of subsidiary companies along with the
respective Directors' Report are placed elsewhere in this Annual
Report.
25. INFORMATION PURSUANT TO STATUTORY AND OTHER REQUIREMENTS
Information required to be furnished as per the Companies Act, 2013 and
Listing Agreement with Stock Exchanges are as under:
25.1 Statutory Auditors
The Statutory Auditors of your Company are appointed by the Comptroller
& Auditor General of India. M/s O.P. Bagla & Co., M/s PSD & Associates,
M/s PKF Sridhar & Santhanam, M/s V. Sankar Aiyar & Co., M/s Ramesh C.
Agrawal & Co. and M/s AR. & Co. were Joint Statutory Auditors for the
financial year 2014-15.
The Comptroller & Auditor General of India has appointed (i) M/s T R
Chadha & Co., Chartered Accountants, New Delhi, (ii) M/s PSD
Associates, Chartered Accountants, New Delhi, (iii) M/s Sagar &
Associates, Chartered Accountants, Hyderabad, (iv) M/s Kalani & Co.,
Chartered Accountants, Jaipur, (v) M/s P A & Associates, Chartered
Accountants, Bhubaneshwar, (vi) M/s S K Kapoor & Co., Chartered
Accountants, Kanpur and (vii) M/s B M Chatrath & Co., Chartered
Accountants, Kolkata as the Joint Statutory Auditors of the Company for
the year 2015-16.
25.2 Management comments on Statutory Auditors' Report
The Statutory Auditors of the Company have given an unqualified report
on the accounts of the Company for the financial year 2014-15. However,
they have drawn attention under 'Emphasis of Matter' to Note-22 (b) to
the financial statements relating to accounting of sales on provisional
basis and Note 34 in respect of a project where the matter is pending
before the Hon'ble Supreme Court of India.
The issues have been adequately explained in the respective Notes
referred to by the Auditors.
25.3 Review of accounts by Comptroller & Auditor General of India
(C&AG)
As advised by the Office of the C&AG, the comments of C&AG for the year
2014-15 alongwith management replies thereto are placed with the report
of Statutory Auditors of your Company elsewhere in this Annual Report.
The office of the C&AG has issued two comments on the accounts of the
Company for the financial year 2014-15 in respect of disclosure of
sales on provisional basis where the Company has filed a petition
before the Hon'ble Supreme Court of India contesting certain provisions
of the CERC Regulations, 2014 and accounting of capital expenditure on
assets not owned by the Company.
25.4 COST AUDIT
As prescribed under the Companies (Cost Records and Audit) Rules, 2014,
the Cost Accounting records are being maintained by all stations of the
Company.
The firms of Cost Accountants appointed under Section 148(3) of the
Companies Act, 2013 for the financial year 2013-14 and 2014-15 were (i)
M/s Narasimha Murthy & Co., Hyderabad, (ii) M/s Musib & Co., Mumbai,
(iii) M/s Sanjay Gupta & Associates, Delhi, (iv) M/s Bandopadhyay
Bhaumik & Co., Mumbai, (v) M/s S. Dhal & Co., Bhubhaneshwar and (vi)
M/s R.J. Goel & Co., Delhi.
The due date for filing consolidated Cost Audit Report in XBRL format
for the financial year ended March 31, 2014 was September 27, 2014 and
the consolidated Cost Audit Report for your Company was filed with the
Central Government on September 10, 2014.
The Cost Audit Report for the financial year ended March 31,2015 shall
be filed within the prescribed time period under the Companies (Cost
Records & Audit) Rules, 2014.
25.4 Performance Evaluation of the Directors and the Board
As required under the Companies Act, 2013 and the Listing Agreement,
evaluation of performance of directors including that of the
Independent Directors and of the Board is to be carried out either by
the Board or by the Nomination and Remuneration Committee or by the
Independent Directors. It also requires disclosure of formulated
criteria for performance evaluation in this Report.
In this regard, the Ministry of Corporate Affairs, through Notification
dated 05.06.2015, has exempted the Government Companies from these
provisions. The appointment of the Functional Directors, Government
Nominee Directors and Independent Directors of your Company is made by
the Government of India. Their terms & conditions of appointment as
well as tenure of all directors are also decided by GOI and there is a
well laid down procedure for evaluation of Functional Directors & CMD
as well as of Government Directors by Administrative/ respective
Ministry. Also, the performance of the Board of the Government
Companies is evaluated during the performance evaluation of the MOU
signed with the Government of India.
25.5 Secretarial Audit
The Board has appointed M/s Agarwal S. & Associates, Company
Secretaries, to conduct Secretarial Audit for the financial year
2014-15. The Secretarial Audit Report for the financial year ended
March 31, 2015 is annexed herewith marked as Annexure X to this Report.
The Managements' Comments on Secretarial Audit Report are as under:
Observations Management's Comments
Composition of the As per the Listing
Board of Directors of Agreements executed with
the Company is not the Stock Exchanges, the
in compliance with Company should have nine
Second Proviso to Independent Directors
Section 149(1) and since Company has seven
Section 149(4) of the functional Directors
Companies Act, 2013, including the Chairman
Clause 49(II)(A) of the & Managing Director and
Listing Agreement and two Government Nominee
Para 3.1.2 and 3.1.4 Directors on its Board as
of the DPE Guidelines against two Independent
on Corporate Directors in position at
Governance for present. Further, the
CPSEs issued by the Company does not have
Department of Public any woman Director on the
Enterprises Board.
Being a Government Company the
power to appoint the Directors
on the Board of the Company vests
with the President of India and
accordingly, the Company is, from
time to time, requesting Ministry
of Power to appoint woman director
and the requisite number of
Independent Directors on its Board.
25.6 Particulars of contracts or arrangements with related parties
During the period under review, the Company had not entered into any
material transaction with any of its related parties. The Company's
major related party transactions are generally with its subsidiaries
and associates. All related party transactions were in the ordinary
course of business and were negotiated on an arm's length basis. They
were intended to further the Company's interests.
Accordingly, the disclosure of Related Party Transactions as required
under Section 134(3)(h) of the Companies Act, 2013 in Form AOC-2 is not
applicable.
Web-link for Policy on Materiality of Related Party Transactions & also
on Dealing with Related Party Transactions has been provided in the
Report on Corporate Governance, which forms part of the Annual Report.
25.7 Significant and material orders passed by the regulators or courts
or tribunals impacting the going concern status and company's
operations in future: NIL
25.8 Adequacy of internal financial controls with reference to the
financial statements: The Company has in place adequate internal
financial controls with reference to financial statements. During the
year, such controls were tested and no reportable material weakness in
the design or operation was observed.
25.9 Loans and Investments
Details of Loans and Investments covered under the provisions of
Section 186 of the Companies Act, 2013 forms part of financial
statement, attached as a separate section in the Annual Report FY
2014-15.
25.10 Sexual Harassment of Women at Workplace
The Company has in place a Policy on Prevention, Prohibition and
Redressal of Sexual Harassment of Women at Workplace in line with the
requirements of the Sexual Harassment of Women at the Workplace
(Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints
Committee (ICC) has been set up to redress complaints received
regarding sexual harassment. All employees (permanent, contractual,
temporary, trainees) are covered under this policy. In association
with the National Commission for Women, PMI has taken the initiative to
conduct Gender Sensitization workshops for building a Collaborative
Work Culture across your Company. In these workshops, the employees,
both male and female, are sensitized and made aware about issues and
laws pertaining to sexual harassment as well as appropriate behavior at
the workplace. During 2014-15, PMI has conducted 8 such workshops
across the organization covering 260 employees. One complaint of
sexual harassment was received during the year 2014-15, which was
resolved.
25.11 Procurement from MSEs
The Government of India has notified a Public Procurement Policy for
Micro and Small Enterprises (MSEs), Order 2012. In terms of the said
policy, the total eligible value of annual procurement of goods
produced and services rendered by MSEs (including MSEs owned by SC/ST
entrepreneurs) during the year 2014-2015 was Rs.140 crore. The total
procurement made from MSEs (including SC/ST entrepreneurs) was
Rs.317.12 crore.
25.12 Particulars of Employees
As per provisions of section 197(12) of the Companies Act, 2013 read
with the Rule 5 of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, every listed company is required to
disclose the ratio of the remuneration of each director to the median
employee's remuneration and details of employees receiving remuneration
exceeding limits as prescribed from time to time in the Directors'
Report. However, as per notification dated 5th June, 2015 issued by
the Ministry of Corporate Affairs, Government Companies are exempted
from complying with provisions of Section 197 of the Companies Act,
2013. Therefore, such particulars have not been included as part of
Directors' Report.
25.13 Extract of Annual Return:
Extract of Annual Return of the Company is annexed herewith as Annexure
'VI' to this Report.
25.14 Information on Number of Meetings of the Board held during the
year, composition of committees of the Board and their meetings held
during the year, establishment of vigil mechanism/ whistle blower
policy and web-links for familiarization/ training policy of directors
and Policy for determining 'Material' Subsidiaries have been provided
in the Report on Corporate Governance, which forms part of the Annual
Report.
24.15 Para on development of risk management policy including therein
the elements of risks are given elsewhere in the Annual Report.
25.16 No disclosure or reporting is required in respect of the
following items as there were no transactions on these items during the
year under review:
1. Issue of equity shares with differential rights as to dividend,
voting or otherwise.
2. Issue of shares (including sweat equity shares) to employees of the
Company under any scheme.
The particulars of annexures forming part of this report are as under:
Particulars Annexure
Management Discussion & Analysis I
Report on Corporate Governance II
Information on conservation of energy, III
technology absorption and foreign
exchange earnings and outgo
Statistical information on persons IV
belonging to Scheduled Caste/
Scheduled Tribe categories
Information on Physically Challenged V
persons
Extract of Annual Return VI
Annual Report on CSR Activities VII
Project Wise Ash Utilisation VIII
Business Responsibility Report for the IX
year 2014-15
Secretarial Audit Report in Form MR-3 X
26. BOARD OF DIRECTORS
Shri Anil Kumar Singh, JS (Thermal), Ministry of Power has joined as
Government Nominee Director of the Company with effect from October 31,
2014. Consequent upon superannuation of Shri N.N. Misra
onOctober31,2014,Shri K.K. Sharma has taken over as Director (Operations)
with effect from November 1, 2014.
Consequent upon completion of three years' tenure, Shri S.B. Ghosh
Dastidar and Shri R.S. Sahoo have ceased to be the Independent Director
w.e.f. August 25, 2014 and Shri Ajit M. Nimbalkar and Shri S.R.
Upadhyay have ceased to be the Independent Director w.ei. January
19,2015. Further, upon completion of three years' tenure, Ms. H.A.
Daruwalla, Shri AN. Chatterji and Prof. Sushil Khanna have ceased to be
the Independent Director w.ei. February 27, 2015.
The Board wishes to place on record its deep appreciation for the
valuable services rendered by Shri S.B. Ghosh Dastidar, Shri R.S.
Sahoo, Shri N.N. Misra, Shri Ajit M. Nimbalkar, Shri S.R. Upadhyay,
Ms. H.A. Daruwalla, Shri AN. Chatterji and Prof. Sushil Khanna during
their association with the Company. In accordance with Section 152 of
the Companies Act, 2013 and the provisions of the Articles of
Association of the Company -Shri AK. Jha and Shri U.P. Pani shall
retire by rotation at the Annual General Meeting of your Company and,
being eligible, offers themselves for re-appointment.
27. DIRECTORS' RESPONSIBILITY STATEMENT
As required under Section 134 (5) of the Companies Act, 2013, your
Directors confirm that:
1. in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures;
2. the Directors had selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the company at the end of the financial year 2014-15 and of the
profit of the company for that period;
3. the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 2013 for safeguarding the assets of
the company and for preventing and detecting fraud and other
irregularities;
4. the Directors had prepared the Annual Accounts on a going concern
basis;
5. the Directors, had laid down internal financial controls to be
followed by the company and that such internal financial controls are
adequate and were operating effectively; and 6. the Directors had
devised proper systems to ensure compliance with the provisions of all
applicable laws and that such systems were adequate and operating
effectively.
28. ACKNOWLEDGEMENT
The Directors of your Company acknowledge with deep sense of
appreciation, the cooperation received from the Government of India,
particularly the Prime Minister's Office, Ministry of Power, Ministry
of Finance, Ministry of Environment, Forests & Climate Change, Ministry
of Coal, Ministry of Petroleum & Natural Gas, Ministry of Railways,
Department of Public Enterprises, Central Electricity Authority,
Central Electricity Regulatory Commission, Comptroller & Auditor
General of India, Appellate Tribunal for Electricity, State
Governments, Regional Power Committees, State Utilities and Office of
the Attorney General of India. The Directors of your Company also
convey their gratitude to the shareholders, various international and
Indian Banks and Financial Institutions for the confidence reposed by
them in the Company. The Board also appreciates the contribution of
contractors, vendors and consultants in the implementation of various
projects of the Company. We also acknowledge the constructive
suggestions received from Government and Statutory Auditors. We wish
to place on record our appreciation for the untiring efforts and
contributions made by the employees at all levels to ensure that the
company continues to grow and excel.
For and on behalf of the Board of Directors
(Dr.Arup Roy Choudhury)
Chairman & Managing Director
(DIN: 00659908)
Place: New Delhi
Date: 30th July, 2015
Mar 31, 2014
Dear Members,
The Directors are pleased to present the 38th Annual Report and the
audited financial statements for the year ended March 31, 2014.
Financial Year 2013-14 has been yet another year of achievements for
your Company. With the addition of 1,835 MW capacity (including 610 MW
through JV Companies) during the year, your Company crossed 43,000 MW
capacity reaching a total capacity of 43,108.31 MW. Major highlights
for the year are:
- Commissioned solar plants of 65 MW capacity during the year. With the
commercialization of 20 MW Rajgarh Solar Power Project on 30.04.2014,
cumulative solar capacity of 95 MW has already been commissioned, which
is a substantial contribution to renewable energy.
- Declared 2,675 MW (including 1,110 MW through JV Companies) on
commercial generation. Total commercial capacity of NTPC group has
become 41,879 MW.
- Average PLF of 81.50% as against all India PLF of 65.55% with four
stations recording more than 90% PLF.
- Exceeded the Capital expenditure (CAPEX) target of Rs.20,200 crore.
CAPEX target was Rs. 21,797.24 crore as against the previous years
target ofRs. 19,925.53 crore.
- 100% realization of current bills from customers.
- Recorded total income of Rs. 74,707.82 crore, an increase of 8.5% as
compared to Rs. 68,855.81 crore in the FY 2012-13. Net profit after Tax
(PAT) of Rs. 10,974.74 crore against previous years PAT of Rs.12,619.39
crore. (PAT for financial year 2012-13, includes a write-back of
provision of Rs.835.97 crore and an Exceptional item of income of
Rs.1,684.11 crore towards interest. Both these relates to payment towards
settlement of dues of erstwhile DESU).
- Dividend of Rs.5.75 per share (total Rs.4,741.15 crore) which comprises
interim dividend of Rs. 4.00 per equity share paid in February 2014 and
recommendation for final dividend of Rs. 1.75 per equity share for the
year 2013-14, subject to approval of the shareholders.
- Coal Supply Agreements signed for 14,010 MW capacity commissioned/ to
be commissioned between April 2009 to March 2015.
- Operation started on Inland Waterways Transportation of Imported Coal
for Farakka station and about 2 lac MT imported coal has been supplied
through this mode to Farakka.
- Issued Tax-free, Secured, Redeemable Non-Convertible Bonds having tax
benefits under Section 10 (15) (iv) (h) of the Income Tax Act, 1961
for an aggregate amount of Rs.2,250 crore. Out of Rs.2,250 crore, bonds of
Rs.1,750 crore were issued to the public through the Stock Exchanges,
which received over-whelming response and was over- subscribed by 3.7
times and bonds of Rs.500 crore were issued under private placement.
- Excellent MOU rating by Government of India for the year 2012-13.
- NTPC was the only PSU among the top 35 companies, ranked 6th in the
prestigious study of The Economic Times and Great Place to Work
Institute for 2013 covering 550 companies, 22 industries and close to
1 lac employees.
You will appreciate the fact that even amid the general down turn in
the economy and market (including the financial markets), the company
demonstrated the tremendous investor confidence enjoyed by it and
recorded excellent performance despite the challenge before the sector.
1. FINANCIAL RESULTS
2013-14 2012-13
Revenue Rs. Crore US $ Mn* Rs. Crore US $ Mn*
Net Revenue from Operations
(including Energy Sales, 72,018.93 11,882.35 65,737.04 10,845.91
Consultancy, Energy consumed
internally)
Other Income 2,688.89 443.64 3,118.77 514.56
Total Revenue 74,707.82 12,325.99 68,855.81 11,360.47
Expenses
Fuel 45,829.71 7,561.41 41,018.25 6,767.57
Employee Benefits Expense 3,867.99 638.18 3,415.96 563.60
Finance Costs 2,406.59 397.06 1,924.36 317.50
Depreciation and
amortization expense 4,142.19 683.41 3,396.76 560.43
Generation, administration
& other expenses 4,543.85 749.69 4,235.68 698.84
Prior period items (net) 12.84 2.12 (29.72) (4.90)
Total Expenses 60,803.17 10,031.87 53,961.29 8,903.04
Profit before Tax and
exceptional items 13,904.65 2,294.12 14,894.52 2,457.43
Exceptional items - - 1,684.11 277.86
Profit before tax 13,904.65 2,294.12 16,578.63 2,735.29
Tax Expense 2,929.91 483.40 3,959.24 653.23
Profit for the year 10,974.74 1,810.71 12,619.39 2,082.06
2013-14 2012-13
Appropriations:
Rs. Crore US $ Mn* Rs. Crore US $ Mn*
Transfer to bond
redemption reserve 576.08 95.05 492.79 81.31
Transfer to general
reserve 5,000.00 824.95 6,500.00 1,072.43
Transfer to capital
reserve 4.98 0.82 0.97 0.16
Interim dividend 3,298.19 544.17 3,092.07 510.16
Proposed dividend 1,442.96 238.07 1,649.09 272.08
Tax on dividend 804.74 132.77 781.87 129.00
*1US $= Rs. 60.61 as on March 31, 2014
2. OFFER FOR SALE TO EMPLOYEES
In terms of CCEAs approval dated 26.11.2012 and Department of
Disinvestments communication dated 26.06.2013, Offer for Sale of
NTPCs Equity Shares by Government of India to the Eligible Employees
was successfully concluded and the proceeds amounting to
Rs.48,16,38,656/- was credited to the account of Government of India. A
total of 34,83,320 shares were allotted to 3,407 employees.
Consequent upon sale of shares from Government of India to the eligible
employees, the equity holding of Government of India in NTPC has
reduced to 74.96% from 75%.
3. DIVIDEND
3.1 Interim and Final Dividend:
In addition to interim dividend of Rs. 4.00 per equity share paid in
February 2014, your Directors have recommended a final dividend of Rs.
1.75 per equity share for the year 2013-14. With this the total
dividend for the year is Rs.5.75 per equity share of Rs.10/- each. In the
year 2012-13 also, the total dividend paid was Rs.5.75 per equity share
of Rs.10/- each (including special dividend of Rs.1.25 per share).
The total dividend payout is 43.20% and the total dividend payout
including dividend tax is 50.53% of profit after tax. The final
dividend shall be paid after your approval at the Annual General
Meeting.
The dividend has been recommended in accordance with your Companys
policy of balancing dividend pay-out with the requirement of deployment
of internal accruals for its growth plans.
Your Directors believe that growth of the company through capacity
addition, backward and forward integration and strategic diversifi
cation of its operations would lead to increase in shareholders value.
4. OPERATIONAL PERFORMANCE
4.1 Generation:
During the year, the power stations of your Company generated 233.284
BUs (248 BUs including JVs) of electricity (including solar power)
which was 24.26% (25.80% including that generation by JVs) of the total
power generated in India (without Bhutan import).
The total power generated by the Company has registered an increase of
0.54% over the previous years generation of 232.028 BUs. The total
generation contributed by coal stations is 220.700 BUs during the year
against generation of 212.329 BUs last year registering a growth of
3.94%.
Generation from coal based units could have been still higher but due
to less generation schedule there was generation loss of 23.083 BUs.
The coal based stations of your company operated at average Plant Load
Factor (PLF) of 81.50% (All India PLF 65.55%) and average Availability
Factor of 90.32% on bus bar during the year. During the year, 4 coal
based stations out of 16 achieved more than 90% PLF.
The gas stations having a capacity of 4,017 MW achieved annual
generation of 12.569 BUs at a PLF of 35.72% as against 19.699 BUs last
year mainly due to less generation schedule which accounted for a
generation loss of 20.652 BUs. The average declared capacity of gas
based stations for the year was 95.24% as compared to 93.14% during
previous year.
Management Discussion and Analysis Report
Management Discussion and Analysis Report for the year under review, as
stipulated under Clause 49 of the Listing Agreement with the Stock
Exchanges in India and as per Guidelines on Corporate Governance for
CPSEs issued by Department of Public Enterprises, GOI, is presented in
Annex-I to this Report.
5. COMMERCIAL PERFORMANCE
5.1 Billing and Realisation
Your Company has realized 100% payment of current bills raised for sale
of power, thus achieving this feat for the eleventh consecutive year.
Most of the customers were making their payments within 60 days of
billing and had established LCs at 105% of the average monthly billing.
The Company has realized Rs.2,520.08 Crore (Rs. 835.97 crore as principal
and Rs. 1,684.11 crore as interest and surcharge) towards DESU dues
payable by Government of NCT of Delhi.
5.2 Rebate Scheme for realization of dues:
In order to encourage early and full realization of dues, your Company
has formulated a special scheme called NTPC Rebate Scheme. In this
Scheme for 2013-14, graded rebate was given to those customers who were
making due payment upto 55th day of billing. The Rebate Scheme for
2014-15 has been modifi ed to align with CERC Regulations for 2014-19
keeping other provisions similar to 2013-14.
5.3 Commercial Capacity:
The following units were declared commercial during the year 2013-14,
adding 2,675 MW (including 65MW of solar capacity) to commercial
capacity of your Company:
Project/ Unit Capacity COD*
(MW)
NTPC Units- Coal Based (I)
Rihand-III, Unit#2 500 27.03.2014
Vindhyachal-IV, Unit#2 500 27.03.2014
Mauda-I, Unit#2 500 30.03.2014
Total (I) 1,500
NTPC Units-Renewable Energy Units (II)
Ramagundam Solar PV 10 29.01.2014
Talcher Solar PV 10 28.03.2014
Faridabad Solar PV 5 31.03.2014
Unchahar Solar PV 10 31.03.2014
Rajgarh Solar PV 30 31.03.2014
Total (II) 65
NTPCs JV Units- Coal Based (III)
Jhajjar, Unit#3 (JV with IPGCL 500 26.04.2013
and HPGCL)
Vallur, Unit#2 (JV with 500 25.08.2013
TANGEDCO)
Kanti, Unit#1 (subsidiary of 110 01.11.2013
NTPC in JV with BSPGCL)
Total (III) 1,110
Total Capacity declared 2,675
commercial during 2013-
14(incl. JVs) (I)+(II)+(III)
* COD- Commercial Operation Date
Further, after the close of financial year 2013-14, 20 MW capacity of
Rajgarh Solar PV was declared commercial on 30.04.2014.
5.4 Tariff Regulations:
Central Electricity Regulatory Commission (CERC) has issued the CERC
(Terms and Conditions of Tariff) Regulations, 2014 on 21.02.2014, which
are applicable for the period 01.04.2014 to 31.03.2019. The tariff of
electricity generated from NTPC stations would be determined by CERC
based on these regulations for the above mentioned period. The salient
features of Tariff Regulations 2014-19 are discussed in the Management
Discussion and Analysis Report.
Being aggrieved on certain provisions of the CERC (Terms and Conditions
of Tariff) Regulations, 2014, your Company has filed a writ petition
before the Honble High Court of Delhi.
5.5 Strengthening Customer Relationship:
Customer Relationship Management (CRM) initiative has been taken by
your company towards strengthening relationship with the customers.
This is also refl ected in the Core Values of your Company (BE
COMMITTED) which emphasize Customer Focus as one of the key values of
NTPC.
Under CRM, your Company has designed and executed several structured
activities with the objective of sharing of experiences, capturing the
feedback and expectations. Based on the feedback received from the
customers, the Company provides various support services to them,
identifi es potential areas of cooperation and shares best practices
with the customer utilities. During 2013-14, 62 such services were
provided to the customers on the basis of the requirement expressed by
various customers.
Your Company conducted Power Meet with top level officials and
Business Partner Meets with middle level officials of beneficiaries
to discuss various issues and sharing of experiences. In 2013-14, Power
Meet was organized with the top officials of Southern Region benefi
ciaries and 4 Business Partner Meets were conducted with 9 benefi
ciaries of different regions.
Besides the above, NTPC has rolled out a Customer Satisfaction Index
(CSI) Survey for gathering customers feedback and responding to their
requirements. This initiative serves as a useful tool for further
strengthening Customer Relationship and better appreciation of our
business.
5.6 Other Activities:
250 MW power has been allocated by the Ministry of Power from the
unallocated quota of NTPC stations for export to Bangladesh through
NVVN.
6. INSTALLED CAPACITY
6.1 Installed Capacity of NTPC Group:
During the year 2013-14, your Company added 1,835 MW as per details
given below:
Project/ Unit installed during Capacity (MW)
FY 2013-14
NTPC owned
Coal Based Power Projects
Barh-II, Unit#4 660
Rihand, Unit # 6 500
Renewable Energy Projects
Ramagundam Solar PV 10
Unchahar Solar PV 10
Talcher Kaniha Solar PV 10
Faridabad Solar PV 5
Rajgarh Solar PV 30
Under JVs (Coal Based Power Projects)
Kanti (subsidiary of NTPC in JV with 110
BSPGCL), Unit#1
Vallur (JV with TANGEDCO), Unit# 3 500
Addition during FY 2013-14 1,835
With above capacity addition during 2013-14, capacity added in the fi
rst two years of 12th Plan Period has reached 6,005 MW against 12th
Plan target of 14,038 MW.
The total installed capacity of the NTPC Group was 41,184 MW as on
31.03.2013. For gas based power projects, till now the capacity was
indicated based on Net Guaranteed Output as per Main Plant Specifi
cations. It has been revised to capacity at Generator Terminal w.e.f.
01.04.2014. Accordingly, the installed capacity as on 01.04.2014 has
become 43,108.31 MW as tabulated below:
Owned by NTPC MW
Coal based projects 33,015.00
Gas based projects 4,017.23
Renewable Energy Projects 75.00
Sub-total 37,107.23
Joint Ventures & Subsidiaries
Coal based projects 4,034.00
Gas based projects 1,967.08
Sub-total 6,001.08
Total 43,108.31
7. CAPACITY ADDITION PROGRAM
Your Company has adopted a multi-pronged growth strategy which includes
capacity addition through green field projects, brown field
expansions, joint ventures and acquisitions, towards its journey to
become the world class integrated power major.
In addition to furthering capacity addition through Coal and Gas based
power projects, your Company has been pursuing enhancement of its power
generation portfolio through Hydro, Renewable Energy and Nuclear energy
projects.
7.1 Projects under Implementation
Your Companys various projects having aggregate capacity of 22,434 MW
including 4,690 MW, being undertaken by Joint Venture companies are
under implementation as on 31.03.2014. This includes 20,900 MW through
coal based projects, 1,534 MW through renewable energy projects,
comprising 1,499 MW through hydro capacity and 35 MW through solar
energy. The details of such projects are as under:
Capacity
Ongoing Projects as on 31.03.2014 (MW)
I. NTPC owned:
A. Coal Based Projects
1. Bongaigaon, Assam 750
2. Barh-I, Bihar 1,980
3. Barh-II, Unit V, Bihar 660
4. Lara-I, Chattisgarh 1,600
5. North Karanpura, Jharkhand 1,980
6. Kudgi-I, Karnataka 2,400
7. Gadarwara-I, Madhya Pradesh 1,600
8. Vindhyachal-V, Madhya Pradesh 500
9. Mouda-II, Maharashtra 1,320
10. Solapur, Maharashtra 1,320
11. Darlipalli, Odisha 1,600
12. Unchahar, Uttar Pradesh 500 Sub Total (A) 16,210
B. Renewable Energy Projects
B1. Hydro Electric Power Projects (HEPP)
13. Koldam, Himachal Pradesh 800
14. TapovanVishnugad, Uttarakhand 520
15. LataTapovan, Uttarakhand 171
16. Singrauli CW Discharge (Hydro), Uttar 8
Pradesh
Sub Total (B1) 1,499
B2. Solar Energy Projects
17. Rajgarh Solar PV, Madhya Pradesh* 20
18. Singrauli Solar PV, Uttar Pradesh 15
Sub Total (B2) 35
Total I (A)+(B1)+(B2) 17,744
II Projects under JVs & Subsidiaries Coal
Based Projects
19. Nabinagar- JV with Railways, Bihar 1,000
20. Muzaffarpur Expansion (MTPS)Â
Subsidiary of NTPC in JV with BSPGCL, Bihar 390
21. Nabinagar, JV with BSPGCL, Bihar 1,980
22. Meja, JV with UPRVUNL, Uttar Pradesh 1,320
Total II 4,690
III Total On-Going Projects as on 22,434
31.03.2014 (I)+(II)
*Subsequently declared commercial on 30.04.2014
7.2 New Projects
Currently, your Company has projects for 6,800 MW capacity under
bidding. Feasibility Reports of 17,900 MW capacity have already been
approved by your Board and project development activities are in
various stages of completion.
Further, West Bengal State Government has approved transfer of the
proposed 2X800 MW Coal Based Katwa Project from West Bengal Power
Development Corporation Limited to NTPC and your Board has also
approved the proposal for taking over the Project.
7.3 New Technology
To meet the challenges of fulfilling Indias electricity demands at
affordable cost with minimum environmental impact, your Company has
drawn a long term Technology Roadmap up to 2032. The technology roadmap
envisages development, adoption and promotion of safe, effi cient and
clean technologies for entire value chain of power generation business.
Your Company is planning to set up coal fi red units with ultra
supercritical parameters targeting effi ciency comparable to best
available technology in the world. It is planning to establish
integrated gasifi cation combined cycle for high ash Indian coal. It
has planned to implement 100MWe IGCC Technology Demonstration Project
at NTPC Dadri. The plant is intended to be implemented in two stages
with Stage-I comprising installation and stabilization of coal gasifi
er, gas clean up and other associated systems and Stage-II comprising
gas turbine combined plant. Stage-II shall be implemented after
successful completion and stabilization of Stage-I.
Your Company has adopted several new technologies, system and practices
including combined cycle gas- fi red power stations, Merry-Go-Round,
Distributed Digital Control & Management Information System, High
Voltage Direct Current transmission, Sliding Pressure Operation of SG,
Dry Ash Extraction and Disposal, 765 KV Switchyard, Ash Water
Recirculation System, Liquid Waste Management System, Performance
Analysis and Diagnostic Optimization, Tunnel Boring Machines and Super
Critical Technologies. Three (03) numbers Super critical units of 660
MW are already under operation at Sipat-I where steam parameters are
247 kg/cm2/537oC/565oC. For all the new sub-critical 500 MW units also,
reheat temperature has been increased to 565oC resulting in 0.7% gain
in effi ciency over conventional sub-critical 500 MW units.
Your Company has entered into MOU with BHEL and Indira Gandhi Centre
for Atomic Research (IGCAR) for indigenous development of advanced
ultra super critical technology which will have enhanced effi ciency of
around 46% and about 15-20% less CO2 emission as compared to
conventional 500 MW sub-critical thermal power plants. The program is
targeted to deliver a plant having 800 MW unit with steam parameters of
310 kg/ sq cm-710oC/720oC at super heater outlet and 720oC at re-heater
outlet.
Your Company has taken an initiative for hybrid solar thermal plant of
about 3.6 MW by integration of solar heat with 210 MW coal based unit
at Dadri. Solar heat is being integrated along with feed heaters in the
turbine cycle for conversion of solar heat to electrical power by
utilizing it in existing steam cycle of 210 MW. Once integrated, this
will reduce coal consumption, thereby reducing CO2 emissions.
7.4 Project Management
Your Company has an established state-of-the-art IT enabled Project
Monitoring Centre (PMC) for facilitating fast track project
implementation. PMC has advanced features like Web-based Milestone
Monitoring System (Webmiles), Project Review and Internal Monitoring
System (PRIMS), Enterprise-wide Issues Tracking System, etc. PMC
facilitates monitoring of key project milestones and also acts as
decision support system for the management.
PMC is integrated enterprise-wide collaborative system to facilitate
consolidation of project related issues and their resolution. Features
like SMS based information delivery, real time video capture, storage
and retrieval facility and conference facility are extensively utilized
for project tracking, issues resolutions and management intervention.
It has helped in providing effective coordination between the agencies
and has provided enhanced/ effi cient monitoring of the projects
leading to better, faster and holistic approach to project
implementation.
7.5 Capacity addition through Subsidiaries and Joint Ventures (JVs)
Besides adding capacities on its own, your Company develops power
projects through its subsidiaries and joint ventures, both in India and
abroad. Details of Joint Ventures abroad are covered under the heading
Globalisation Initiatives.
The information of Indian Subsidiaries and JV Companies along with
details of partners of joint ventures for capacity addition is given
below:
Further, an MOU has been signed on 22.02.2014 among NTPC, Bihar State
Power Generation Company Limited (BSPGCL) and Lakhisarai Bijlee Company
Private Limited for implementation of 2X660 MW Kajra Coal based power
project at Lakhisarai, Bihar. The project is proposed to be developed
as a Joint Venture Company between NTPC and BSPGCL.
7.6 Hydro Power
7.6.1 Your Company is setting up hydro projects for increasing its
footprints in renewable energy development by developing Koldam Hydro
Electric Power Project (800 MW), Tapovan Vishnugad HEPP (520MW), Lata
Tapovan HEPP (171MW) and Rammam HEPP (120 MW).
Koldam HEPP is under construction on river Satluj at Barmana, district
Bilaspur, Himachal Pradesh. Three units are targeted to be commissioned
in Feb-March 2015. 124.054 hectares of forest land in the submergence
area of reservoir is falling under Majathal Wild Life area for which
Supreme Court of India has already accorded clearance. Proposal for
diversion of 44.9585 hectares of this land is in process for Forest
Advisory Committee (FAC) clearance.
For Rammam HEPP Stage-III (120 MW), construction of approach roads and
bridges for power house and barrage has been completed. Award of
contract for barrage and part of head race tunnel package are held up
for want of investment approval for which PPA is required. PPA
documents have been submitted to WBSEDCL for approval.
Though construction work was in progress in Tapovan  Vishnugad HEPP,
Uttarakhand and Lata Tapovan HEPP, Uttarakhand, due to fl ash fl oods
in June 2013, there was devastation in the projects which affected
their schedule. After this devastation, Supreme Court of India had
directed Ministry of Environment and Forests (MOEF) constituted a
committee for review of all 24 proposed hydro projects in Uttarakhand,
as included in report of Wildlife Institute of India. This included
Lata Tapovan HEPP also. Based on the recommendation of the committee
constituted by MOEF in this regard, Supreme Court of India in the
hearing on 07.05.2014, had directed to stop the construction at Lata
Tapovan HEPP till further orders. Since Lata Tapovan HEPP was under
construction, review petition has been submitted for modifi cation of
order to the extent that the said order may be waived for Lata Tapovan
HEPP.
Also, on 31.03.2014, Regional Offi ce of MOEF, Lucknow had directed
Government of Uttarakhand that project developers should apply for
obtaining clearance from National Board for Wildlife as the projects
were falling within 10km periphery of Nandadevi National Park. Your
company had submitted proposal for both the projects with Dy.
Conservator of Forest, Nandadevi on 30.04.2014.
Loharinag Pala HEPP had been discontinued on the advice of Ministry of
Power. The Empowered Committee constituted by GOI for the purpose of
settling the claims had approved reimbursement of Rs. 536.30 crore in fi
rst Phase to NTPC, which has been received by the Company. As
liabilities of the contractors are increasing day by day due to non-
settlement of claims in time, Ministry of Power has been requested to
constitute a Settlement Commission with single point responsibility
to evaluate and settle claims of all the contractors. Further,
Government of Uttarakhand has identifi ed Uttaranchal Jal Vidyut Nigam
Limited as nodal agency for taking over the closed project on
as-is-where-is basis in terms of the MOU signed between NTPC and
Government of Uttarakhand.
7.6.2 Hydro Engineering
In pursuance of Memorandum of Agreement signed with Govt. of Mizoram,
Detailed Project Report of Kolodyne-II HEPP (4X115MW) prepared by
Central Water Commission for Govt. of Mizoram and updated by NTPC has
been cleared by Central Electricity Authority.
7.7 Capacity Addition through other Renewable Energy Sources
Your Company is adding capacity through renewable sources of energy as
it offers environmentally clean power.
Your Company plans to broad-base its generation mix to ensure long term
competitiveness and mitigation of fuel risks and promotion of
sustainable power development.
In pursuit of these objectives, 75 MW Solar power capacity has already
been commissioned till 31.03.2014 and 20 MW solar capacity has been
further added on 30.04.2014. 15 MW capacity solar power projects is
presently under execution, details of which are given under the heading
project implementation.
A Joint Venture Company among NTPC Limited, Asian Development Bank and
Kyuden International Cooperation, Japan under the name PAN-ASIAN
Renewables Private Limited was incorporated to develop projects
portfolio of about 500 MW of renewable power generation resources in
India. Though, the company was searching for another strategic investor
for investing in the Company, it could not fi nd the same.
Your Company has signed an MOU with Chattisgarh Renewable Energy
Development Agency (CREDA) for development of Tatapani Geothermal
project. Another MOU has been signed with Geological Survey of India
for detailed study and analysis for preparation of feasibility report.
8. STRATEGIC DIVERSIFICATION- INCREASING SELF- RELIANCE
8.1 In order to strengthen its competitive advantage in power
generation business, your Company has diversifi ed its portfolio to
emerge as an integrated power major, with presence across entire power
value chain through backward and forward integration into areas such as
coal mining, power equipment manufacturing, power trading, and
distribution.
Your Company continuously explores business opportunities through
market scanning and adopts new business plans accordingly.
8.2 The details of other subsidiary companies are as under:
8.2.1 NTPC Electric Supply Company Limited, a wholly owned subsidiary
of NTPC was incorporated to foray into the business of distribution and
supply of electrical energy as a sequel to reforms initiated in the
power sector. The Company is implementing Rajiv Gandhi Gramin
Vidyutikaran Yojna projects on turnkey basis and undertakes turnkey
execution of sub-stations for utilities and also takes up project
management consultancy.
The Company is making continuous efforts for acquisition of
distribution circles through various modes including franchisee bidding
mode.
This subsidiary is carrying business of retail distribution of power in
various industrial parks developed by Kerala Industrial Infrastructure
Development Corporation (KINFRA), through its Joint Venture Company
namely KINESCO Power and Utilities Private Limited, formed with KINFRA.
8.2.2 NTPC Vidyut Vyapar Nigam Limited (NVVN), a wholly owned
subsidiary is involved in power trading, sale of fl y ash and
cenosphere.
During the year 2013-14, the Company transacted business with various
state electricity boards spread all over the country and traded 9,322
MUs of electricity.
NVVN has been appointed as the nodal agency for cross border trading of
electricity with Bhutan and Bangladesh. The power supply to Bangladesh
from NTPC stations under PPA signed between NVVN and Bangladesh Power
Development Board has commenced from 05.10.2013.
The Company has also been designated as the Nodal Agency for purchase
of grid connected solar power upto 1000 MW as a part of Phase-I of
JawaharLal Nehru National Solar Mission. The total solar capacity
commissioned till 31.03.2014 under JNNSM Phase-I is 548 MW which
includes 498 MW of Solar PV Projects and 50 MW of Solar Thermal
Project.
8.3 In order to strengthen its competitive advantage in power
generation business, the Company has diversifi ed into the area of
manufacturing through the following joint ventures:
8.3.1 NTPC-BHEL Power Projects Pvt. Limited (NBPPL), a joint venture
with BHEL was incorporated for taking up activities of engineering,
procurement and construction (EPC) of power plants and manufacturing of
equipments. The manufacturing plant of NBPPL is being set up at
Mannavaram, Tirupati in Andhra Pradesh for CHP and AHP.
The Company is executing EPC contracts for balance of plants packages
of Palatana Combined Cycle Power plant in Tripura, Namrup Combined
Cycle Power Plant in Assam, Balance of Plant including Erection &
Commissioning works of the entire plant at Monarchak, Tripura for
NEEPCO and EPC Contract for Unchahar.
8.3.2 BF-NTPC Energy Systems Limited was incorporated with Bharat Forge
Limited to manufacture castings, forgings, fittings and high pressure
piping required for power projects and other industries.
As in the recent past thermal power capacity addition program has
suffered a major setback due to a variety of reasons including slow
environment clearance of new projects, non- availability of land,
shortage of Indian coal and costly imported coal, this JVC is being
reconsidered.
8.3.3 Your Company has acquired 44.6% stake in Transformers And
Electricals Kerala Limited (TELK) from Government of Kerala on June 19,
2009. The Company deals in manufacturing and repair of Power
Transformers. TELK order booking as on 31.03.2014 was Rs.142.59 crore and
the total turnover of the Company was Rs.166.07 crore in the financial
year 2013-14.
Please refer to "Management Discussion and Analysis", Annexure-I
included as a separate section to this report for further details of
subsidiary and joint venture companies of NTPC.
9. GLOBALISATION INITIATIVES
9.1 Trincomalee Power Company Limited (TPCL), a 50:50 joint venture
Company between NTPC and Ceylon Electricity Board was formed to
undertake the development, construction, establishment, operation and
maintenance of a coal based electricity generating station of 2X250 MW
capacity at Trincomalee at Sri Lanka. All major agreements like Power
Purchase Agreement, Implementation Agreement and Board of Investment
Agreement have been signed. NTPC has been appointed as the Owners
Engineer for the project. TPCL is taking necessary actions for
obtaining environmental clearance for the project from Central
Environment Authority of Sri Lanka. Public Utilities Commission of Sri
Lanka has granted electricity license to TPCL in May 2014.
9.2 Bangladesh-India Friendship Power Company Private Limited, a 50:50
joint venture company between NTPC and Bangladesh Power Development
Board (BPDB) has been formed for developing a 2X660 MW Coal based power
project at Khulna Division, Rampal, Bangladesh. All major project
arrangements like Power Purchase Agreement and Implementation Agreement
have been signed. The Company has appointed its Owners Engineer.
Project activities at site have commenced.
10. NTPC Consultancy Wing: As a result of the phenomenal success
achieved by your Company in executing its own power projects, many
utilities from India and abroad approach NTPC to benefit from the rich
experience gained by your Company. With this in view, NTPC formally
established a Consultancy Wing in 1989. Since then, this wing has been
receiving orders from domestic and international clients. Consultancy
Wing is now recognized as consultant of repute by several leading
domestic and international development and financial institutions and
clients. It offers services like Engineering Services, Operation &
Maintenance Management Services, Project Management Services, Contracts
& Procurement Management Services, Quality Management Services,
Training & Development Services etc.
Consultancy Wing has provided various services in international markets
in Gulf countries, Bangladesh, Nepal, Sri Lanka and Bhutan. The
services include consultancy for training, design review, review
engineering, supervision of erection, testing & commissioning,
performance monitoring, due diligence, operation of plant, construction
of sub-stations, preparation of feasibility reports, site selection,
site specific studies etc for various projects. The international
projects include 2X660 MW Khulna Power Project at Bangladesh and 2X250
MW Trincomalee Coal Power Project at Sri Lanka. This Wing is also
providing O&M Management Services to 2X120 MW Siddhirganj Peaking Power
Plant of Electricity Generation Company of Bangladesh under a World
Bank funded contract. It has also recently signed a contract for
providing entire Owners Engineer Services for proposed 2X250 MW
Trincomalee Coal Power Project at Sri Lanka.
On the domestic front too, Consultancy Wing has been effectively
sharing its expertise with State and Central PSUs and private
utilities.
11. FINANCING OF NEW PROJECTS
The capacity addition programs shall be fi nanced with a debt to equity
ratio of 70:30. Your directors believe that internal accruals of the
Company would be suffi cient to fi nance the equity component for the
new projects. Given its low geared capital structure and strong credit
ratings, your Company is well positioned to raise the required
borrowings.
Your Company is exploring domestic as well as international borrowing
options including overseas development assistance provided by bilateral
agencies to mobilize the debt required for the planned capacity
expansion program.
During the year 2013-14, term loan agreements of Rs.5,775 crore were
entered into including loan agreement of Rs.2,000 crore each executed
with Bank of India and IDFC Limited. The cumulative amount of domestic
loans tied up till March 31, 2014 was Rs.63,174.35 crore (excluding
undrawn loans short-closed as per agreements).
During 2013-14, an amount of Rs.7,750 crore was drawn from domestic banks
and the cumulative drawl upto 31st March 2014 was Rs.51,504.35 crore.
Your Company tied-up two loan facilities with Japan Bank for
International Cooperation (JBIC) and a commercial bank for USD 350
million and JPY 8,021 million for its Kudgi project and renovation &
modernization of Auraiya Gas Power Station respectively. The Company
also signed three facility agreements with Kfw for an aggregate amount
of Euro 202 million to part fi nance the capital expenditure on retrofi
t of Electrostatic Precipitators of Tanda Stage-II.
In pursuance of CBDT Notifi cation No. 61/2013/F. No. 178/37/2013 Â
(ITA.I) dated 08.08.2013, Ministry of Finance allocated tax free bonds
of Rs.1,750.00 crore to the Company to be raised during financial year
2013-14. The Company made public issue of tax free bonds amounting to
Rs.1,750.00 crore during December 2013. Further, tax free bonds amounting
to Rs.500.00 crore was also issued on private placement basis in
pursuance to CBDT Notifi cation No. 11/2014 F.No. 178/9/2014- (ITA.1)
dated 13.02.2014.
For the first time, taxable bonds amounting to Rs.750.00 crore were
issued directly on private placement basis to Employees Provident
Fund Organisation, which invests through its fund managers. The total
bonds issued during financial year 2013-14 aggregated to Rs.3,000.00
crore.
12. FIXED DEPOSITS
The cumulative deposits received by your Company from 71 depositors as
at March 31, 2014 stood at Rs.0.52 crore. Further, an amount of Rs.0.18
crore has not been claimed on maturity by 11 depositors as on March 31,
2014.
Your Company has discontinued the acceptance of fresh deposits and
renewals of deposits under NTPCs Public Deposit Scheme with effect
from 11.05.2013.
13. FUEL SECURITY
13.1 During the year, the supply position of coal and gas is given as
under:
13.1.1 Coal Supplies
During Financial Year 2013-14, your Company has signed long term Fuel
Supply Agreements (FSA) with subsidiaries of Coal India Limited (CIL)
for 14,010 MW including 4,390 MW of JVs for units commissioned after
31st March 2009 and expected to be commissioned by 31st March 2015.
Amendments in FSA have been made to FSA-2009 and FSA-2012 pertaining to
Useful Heat Value to Gross Calorifi c Value migration and Third Party
Sampling.
The Company has signed short term MOU for one year with The Singreni
Collieries Company Limited for supply of 3.5 MMT of coal for Ramagundam
and Simhadri stations. Another short term MOU for one year has been
signed with Eastern Coalfields Limited for supply of 5.0 MMT to
enhance coal supply at critical stations.
Coal linkage of North Karanpura STPP (1980 MW) with Central Coalfields
Limited, which was cancelled by Standing Linkage Committee (Long Term)
in 2008, has been restored.
13.1.2 Domestic Coal and Imported Coal
During 2013-14, your Company received 160.63 MMT of coal as against
155.06 MMT in 2012-13 marking an increase of 3.59%.
Total domestic coal supply during 2013-14 was 149.79 MMT as against
145.97 MMT during 2012-13. Out of 149.79 MMT of coal, 144.69 MMT was
from Annual Contracted Quantity of coal.
The total coal supply from CIL was 138.4 MMT and from SCCL was 11.4
MMT. 2.0 MMT of coal was procured through bilateral MOU during 2013-14.
During 2013-14, your Company imported 10.84 MMT of coal as against 9.09
MMT in 2012-13.
13.1.3 Sourcing of coal through E-auction
Your Company participated in 40 e-auctions for coal procurement during
the financial year 2013-14 in which total coal alloted was 4.76 MMT.
Total coal received through e-auction was 3.2MMT during 2013-14 as
compared to 0.23MMT during 12-13.
13.1.4 Supply through Inland Waterways
During 2013-14, operation was started on inland waterways for
transportation of imported coal for Farraka station. About 2 lac MT
imported coal has been supplied through this mode to Farakka station.
13.2 Gas supplies
During 2013-14, your Company received 6.87 MMSCMD of gas and RLNG as
against 10.67MMSCMD received during 2012-13. The gas off-take in
2013-14 includes 6.72 MMSCMD of gas and 0.15 MMSCMD of RLNG. Gas
offtake was less due to less availability of generation schedule on
RLNG from the beneficiary states.
Your Company has Administered Price Mechanism (APM) gas agreements up
to the year 2021 and Panna Mukta Tapti (PMT) gas agreements up to the
year 2019 for its gas stations. The term sheet for non-APM gas with
GAIL is valid till 2016 and long-term RLNG supply agreement with GAIL
is valid till 2019.
The agreements for KG D6 gas with RIL/Niko/BPEAL expired on 31.03.2014.
Now, RIL has forwarded a term sheet for supply of KG D6 gas beyond
31.03.2014 which is under discussion. The entire existing KGD6
production is being supplied to fertilizer sector in line with
Empowered Group of Ministers/ MOP&NG directive to supply KG D6 gas as
per sectoral priority basis. The supplies to the power sector became
NIL from March 2013 and shall pick up only after production is adequate
to meet the requirement of fertilizer and Liquifi ed Petroleum Gas
sectors.
Your Company has been making arrangements for tie-up and supply of spot
RLNG or Fallback RLNG from domestic suppliers on reasonable endeavour
basis based on requirement and availability from time to time.
13.3 Development of Coal Mining projects
Your Company was allocated ten coal blocks by the Government of India
namely Pakri-Barwadih, Chatti- Bariatu, Kerandari, Talaipalli, Dulanga,
Chatti-Bariatu (South), Bhalumuda, Banai, Chandrabila and Kudanali-
Luburi with estimated geological reserves of about 5.7 billion tonnes
and production potential of about 100 million metric tonnes per annum
(MMTPA) which will cater to the requirement of 20,000 MW of generation
capacity of NTPC.
Detailed exploration is being carried out in Banai, Bhalumuda and
Chandrabila and exploration is going to start in Kudanali-Luburi.
In Pakri-Barwadih coal mining block, all the necessary statutory
clearances are available. Mine opening permission has already been
received from Coal Controller and DGMS. Mining operations could not be
commenced mainly because of adverse law and order situation at project
site and non-cooperation of State Government. Also, a termination
notice has been served to Theiss, Mine Developer & Operator appointed
for Pakri-Barwadih, due to its poor performance.
In Chatti-Bariatu and Kerandari Coal Blocks, mining plan and mine
closure plans have been approved by the Ministry of Coal. For Kerandari
Coal Block, environment clearance and Stage-I forest clearance has been
accorded by Ministry of Environment and Forests. For Chatti-Bariatu,
environment clearance and both Stage-I and Stage-II forests clearances
have been accorded. The Mine-developer-cum-operator has been appointed
for Chatti-Bariatu. NIT has been issued in March 2014 for appointment
of the Mine-developer- cum-operator for Kerandari Coal Mine Block.
In Dulanga and Talaipalli Coal Mining Block, mining plan and mine
closure plans have been approved by the Ministry of Coal. For
Talaipalli Coal Block, environment clearance and both Stage-I and
Stage-II forest clearance have been accorded by Ministry of Environment
and Forests. For Dulanga Coal Block, environment clearance and Stage-I
forest clearance have been accorded by Ministry of Environment and
Forests. For Dulanga Coal Block, NIT shall be published shortly for
appointment of the Mine-developer-cum-operator.
A joint venture company is proposed to be formed between NTPC and Jammu
& Kashmir State Power Development Corporation Limited (J&KSPDCL) for
development of Kudanali-Luburi coal block in Odisha which has been
jointly allocated to NTPC and J&KSPDCL.
Your Company has formed the Joint Venture Companies
namely CIL NTPC Urja Private Limited, NTPC-SCCL Global Ventures Private
Limited and International Coal Ventures Private Limited to explore
further avenues in the area of coal mining. However, these JV companies
have not been able to achieve their objectives owing to certain
constraints like inability of the JV Company to execute the work,
Government Directive etc.
13.4 Exploration Activities
In Cambay exploration block allotted under NELP- VIII, held by NTPC as
operator with 100% participating interest, 3D Seismic Data Acquisition
and processing and interpretation of data has been completed. Based on
the results, locations have been identifi ed for drilling of
exploratory wells. Exploration drilling is planned in 2014-15.
In the other three blocks, in each of which NTPC has 10% participating
interest and Oil and Natural Gas Corporation Limited is the operator,
exploration activities are in progress. Drilling of an exploratory well
has commenced from March 2014 in one of the blocks in KG basin.
14. BUSINESS EXCELLENCE: GLOBAL BENCHMARKING
In pursuit of actualizing our vision and with a view to achieve higher
levels of excellence, the company has developed and adopted its own
NTPC Business Excellence Model on the lines of globally reputed
Excellence Models such as Malcom Baldrige Model, USA and EFQM Model of
Europe.
This model has been deployed at our Business Units (Stations) and we
carry out assessment of generating stations using this framework of
excellence.
The assessment process is aimed at identifying the areas for enhancing
stakeholders engagement, accelerating critical processes and
developing leadership potential.
The outcome of this model is identifi cation of organizational
strengths, opportunities for improvement, issues of concern and best
practices.
In the financial year 2013-14, the 4th cycle of assessment was
completed in which 21 generating stations were assessed by a team of
certifi ed and profi cient assessors. Business Excellence Awards for
Best Performance to Ramagundam and Runner-up shield to Unchahar
stations were presented by the Secretary (Power), GOI and Chairperson,
CEA in the Indian Power Conference- 2014 held at New Delhi.
As a next step on the Journey of Excellence, the company is planning to
implement Corporate Performance Measure and Dashboard initiative to
enhance overall strategic focus and speed.
Other TQM initiatives and techniques like Quality Circles, Professional
Circles, 5S, integrated management system (IMS) etc have been deployed
across the organization for continuous improvement. Our Quality Circle
teams of workmen have been consistently representing NTPC at national
and international Quality Circle conventions and bringing many laurels.
In the year 2013-14, Jyotikiran Quality Circle from Faridabad CCPP
represented NTPC in the International Convention of Quality Control
Circle (ICQCC-2013) held at Tapie, Taiwan. Team Jyotikiran presented
their case study titled Interruption in Natural Gas Supply to Gas
Turbines and won Excellence Award. Total 300 Quality Circles from
13 countries participated in this convention.
15. RENOVATION & MODERNISATION
15.1 Need for R&M:
In the present scenario of severe resource constraint, Renovation and
Modernization (R&M) of power plants is considered to be the best option
for bridging the gap between demand and supply of power, as R&M schemes
are cost effective. It increases the life of the plant, improves
performance & availability, enhances capacity and ensures safe,
reliable and economic electricity production by replacement of
worn-out, deteriorated or obsolete electrical, mechanical,
instrumentation, controls and protection system by state-of-the-art
equipment. It also helps in compliance of environment norms.
Keeping in view the ageing of the fl eet over the years, investment
approval accorded for R&M in 19 stations (Coal & Gas based) is Rs.10,993
crore till 31.03.2014. As against this, cumulative expenditure till
31.03.2014 was Rs.4,610 crore. Out of this, R&M capital expenditure in FY
2013-14 alone was Rs.1,162.37 crore.
With a view to removing technological obsolescence, renovation of
control & instrumentation (C&I) is in progress in Singrauli-II, Korba
ÂI & II, Ramagundam -I & II, Farakka- II, Dadri Thermal- I, Unchahar- I
and Talcher STPS I. On completion of these schemes, the C&I systems in
these stations will be brought nearly on par with the new power
projects.
Because of the very high working temperatures, R&M of Gas Turbines
including their Control & Instrumentation is essential after around 15
years of life. During the year, this activity was completed in 2 out of
4 Gas Turbines (GT) in Kawas and 1 out of 3 GT in Gandhar. In Auraiya,
the GT R&M package has been awarded and implementation is planned in
2014-15, in addition to the next GT in Kawas and Gandhar.
With a view to comply with increasingly stringent environment norms of
reduced emission level prescribed by State Pollution Control Boards,
Renovation and Retrofitting of Electrostatic Precipitator (ESP)
packages have been awarded and work is in progress in Badarpur-II,
Singrauli-I & II, Farakka-I, Unchahar-I, Korba-I & II, Rihand-I,
Vindhyachal-I & II, Talcher STPS ÂI and Talcher TPS-II. In 2013-14,
investment approval was accorded for R&M of ESP of Talcher STPS-II,
award of which is in progress.
In the coming years, life extension of coal based stations on
completion of 25 years is planned for Singrauli-II, Korba- II,
Ramagundam- II, Vindhyachal- I, Farakka- I, Rihand- I and Unchahhar- I
units, aimed at extending their useful life and capturing the benefit
of latest technological advancements.
The taken-over stations of Tanda and Talcher TPS continued their
superior performance levels in 2013-14 on account of R&M intervention.
The PLF of Tanda was 92.80% and the PLF of Talcher TPS was 95.02%
during 2013-14.
16. HUMAN RESOURCE MANAGEMENT
16.1 Your Company takes pride in its highly motivated and competent
human resource that has contributed its best to bring the Company to
its present heights. The productivity of employees is demonstrated by
increase in generation per employee and reduction of Man-MW ratio. The
over-all Man-MW ratio for the year 2013-14 excluding JV/subsidiary
capacity is 0.63 and 0.58 including capacity of JV/ Subsidiaries.
Generation per employee was 9.96 MUs during the year based on
generation of NTPC stations.
The total employee strength of the company stood at 25,013 as on
31.3.2014 against 25,484 as on 31.3.2013.
Fiscal 2014 Fiscal 2013
NTPC
Number of employees 23,411 23,865
Subsidiaries & Joint
Ventures
Employees of NTPC
in Subsidiaries & Joint 1,602 1,619
Ventures
Total employees 25,013 25,484
The attrition rate of the NTPC executives (including Executive Trainees
and those posted in Subsidiaries and JVs) during the year was 1.68%.
16.2 Employee Relations
The Company takes pride in its greatest resource and asset, the
employees. The human resource has been the backbone of the Company, in
contributing towards the success of the Company and sustaining the same
over the years. As a commitment towards the Companys core values,
Employees Participation in Management was made effective based on
mutual respect, trust and a feeling of being a progressive partner in
growth and success. Communication meetings with unions and
associations, workshop on production and productivity, etc were
conducted at projects, regions and corporate level during the year.
Both, employees and management complemented each others efforts in
furthering the interest of the company as well as its stakeholders,
signifying and highlighting over-all harmony and cordial employee
relations prevalent in the Company.
16.3 Safety and Security
NTPC recognizes and accepts its responsibility for establishing and
maintaining a safe working environment for all its employees and
associates. Occupational health and safety at workplace is one of the
prime concerns of NTPC Management and utmost importance is given to
provide safe working environment and inculcate safety awareness among
the employees. Your Company has a 3-tier structure for occupational
health and safety management, namely at site at Regional Headquarters
and at Corporate Centre.
All our stations are certifi ed with OHSAS-18001/IS-18001 (Occupational
Health and Safety Management System). Regular plant inspection and
review with Head of Project, internal safety audits by our own safety
offi cers of various sites and external safety audits by reputed
organizations are carried out at each site every year. Recommendations
of auditors are regularly reviewed and complied with.
Cross Functional Safety task force for O&M and construction projects
are functional at all sites to monitor working conditions at site and
their rectifi cation, if required.
Height permit and height check list are implemented to ensure safety of
workers at high elevations. Adequate numbers of qualifi ed safety offi
cers are posted at all units as per statutory rules and provisions to
look after safety of people and property.
For strict compliance and enforcement of safety norms and practices,
safety clauses are included in General Conditions of Contract.
To mitigate on-site emergencies at all operating stations, effective
engineering controls are provided to indicate and handle emergency
situation. Detailed emergency plans have been developed and
responsibilities are assigned to each concerned to handle emergency
situations. Mock drills are conducted regularly to check healthiness of
the system.
Many of our plants have been awarded with prestigious safety awards
conferred by various Institutions and Bodies like Ministry of Labour &
Employment, Govt. of India, National Safety Council, Institution of
Engineers (India) and Greentech Foundations in recognition of
implementing innovative safety procedures and practices.
Concrete steps are being taken for upgrading surveillance systems at
all of our projects/ stations by installing state-of- the-art security
systems. Security and Coordination Group interact with MHA, IB and CISF
as well as the State/ District level authorities to augment the
security preparedness in our establishment/ power installations.
16.4 Training and Development
In line with its objective of being a learning organization with
skilled and committed employees, your Company has relentlessly promoted
training and development of not only its own employees but also other
professionals of the power sector. The objective is being driven by a
comprehensive infrastructure comprising Power Management Institute
(PMI) at the corporate level and Employee Development Centers at its
sites. The training imparted is in tune with emerging needs and
challenges and for this purpose, the existing training programs are
reviewed and some new programs are included in the annual calendar
every year. The business scenario in our country is changing with new
legislations like the fair compensation, R&R and Land Acquisition Act,
Companies Act, 2013 and your Company is committed to add large
capacities in this changing scenario. Considering the imperative of
upgrading the capability in project management, an Integrated
International
Project Management framework is being developed through international
faculties for achieving competitive advantage, besides entering into a
long term institutional tie-up with IIM-Indore in this area. A similar
tie-up has been done with IIM-Ahmedabad for knowledge creation.
Apart from this, the usual programs include topics on power project
execution, operation & maintenance, ash dyke management, environment
management, advanced welding technologies for super critical boilers,
performance enhancement of existing plants, electrical protections and
relays, information technology and general management areas.
Presently, there are 25 ITIs with which your Company is associated.
NTPC has adopted 17 existing Govt. ITIs out of which 14 ITIs have been
adopted under the PPP scheme of GoI and 3 Govt. ITIs have been adopted
under bilateral agreement with different State governments. Moreover,
NTPC is also setting up 8 new ITIs near its plants/stations. These
initiatives by your Company have resulted in creation of total 1,595
new seats by starting of new trades/units in the adopted & new ITIs,
and, till 31.03.2014, a total of 19,377 students have benefited by
taking admission in these ITIs. For these ITI students, NTPC organised
total 23,459 mandays of industrial training/plant visits. Due to all
these, your Company has been conferred "The Education Excellence Award
2013" for its Skill Development Initiative.
During 2013-14, your Company organized a number of training programmes
in power and energy related areas which, inter-alia, included an
"Integrated Conclave on Data Analytics, Business Intelligence, Action
Research & Cases" in Dubai, a need-based "Workshop on Knowledge
Management" in Goa and hands-on training of 197 participants on the 660
MW supercritical simulator at PMI.
Your Company has also formulated Corporate Governance Training Policy
as per the requirement of DPE Guidelines on Corporate Governance for
imparting training to the Directors. In order to give an impetus to
developing leadership orientation at senior Management level, PMI
conducted a conclave for NTPC Board members (Directors & CMD) called
SIR (Strategic Institutional Renewal) program. PMI also partnered with
BHEL to conduct the SMILE (Strategic Management Initiative for
Leadership Effectiveness) program for Executive Directors of NTPC and
BHEL, conducted consecutively for second year to orient the
participants toward cutting edge leadership and strategic thinking. In
addition, newly promoted General Managers of the Company were also
subjected to an intensive program on developing cross-functional
insights and developing Boundary Management skills.
PMI conducted 429 training programmes during 2013-14 with a participant
base of 10,811. The training mandays clocked were 37,493.
PMI also conducted 20 training programmes through video conferencing to
reach out in one go, to large audiences in remote sites in 2013-14. In
addition to this methodology and in order to take training a further
step closer to the employees, PMI this year introduced training through
Web Conferencing, whereby an employee can undergo training at his or
her workstation itself. PMI conducted 3 training programs through this
platform during 2013-14.
17. SUSTAINABLE DEVELOPMENT
Corporate Sustainability is a business approach that creates long-term
consumer and employee value by creating a green strategy aimed
towards the natural environment and taking into consideration every
dimension of how a business operates in the social, cultural and
economic environment. The sustainability agenda of your Company
addresses all aspects related to sustainable development and promotes
leadership in environmental management, social responsibility and
economic performance (triple bottom line approach).
Your Company has prepared its Sustainability Report 2012-13 based on
various initiatives taken in area of environment, economic, labour
practices, human rights, society and product responsibility. The report
was in line with internationally accepted Global Reporting Initiative
guidelines. The report has been assured by an independent external
assurance provider.
Business Responsibility Report is attached as Annex-X and forms part of
the Annual Report.
Initiatives by the Company
Your Company has developed a Policy on Sustainable Development in
accordance with which a sustainable development plan was prepared for
the year 2013- 14. It mainly covers area of waste management, water
management, bio-diversity conservation, energy management and promotion
of renewable energy, life-cycle studies and reduction in air emissions.
Major activities carried out under this plan included plantation of
more than 4 lac saplings in and around NTPC plants, installation of
roof top solar PV, solar street lights at various stations,
rehabilitation of water body, rain water harvesting, installation of
bio-methanation plant, vermin composting, other techniques for
conversion of domestic waste in organic fertilizer, studies like
pollutant source apportionment, human health risk assessment and
environment impact assessment.
A total expenditure of Rs. 18.58 crore was incurred on these Sustainable
Development Projects during the Financial Year 2013-14.
In its endeavor to achieve the goals of Sustainable Development, your
Company is addressing the issues through multi-pronged approach as per
the details given below:
17.1 Inclusive Growth ÂInitiatives for Social Growth
17.1.1 Corporate Social Responsibility:
Your Company has always discharged its social responsibility as a part
of its Corporate Governance philosophy. It follows the global practice
of addressing CSR issues in an integrated multi stake-holder approach
covering the environmental and social aspects.
CSR has been synonymous with NTPCs core business of power generation.
NTPCs spirit of caring and sharing is embedded in its mission
statement. NTPC has a comprehensive Resettlement & Rehabilitation (R&R)
policy covering community development (CD) activities which has been
revised and updated from time to time. CD activities in green field
area are initiated as soon as project is conceived and thereafter
extensive community / peripheral development activities are taken up
along with the project development. A separate CSR- Community
Development Policy, formulated in July 2004 and revised in August 2010
in line with DPE guidelines, covers a wide range of activities
including implementation of key programmes through a trust NTPC
Foundation.
Your Company, being a member of Global Compact Network, India, confi
rms its involvement in various CSR activities in line with 10 Global
Compact principles and shares its experience with the representatives
of the world through "Communication on Progress". It submits its
Communication on Progress (COP) to UN Global Compact on regular basis.
A report on progress made in this area is enclosed at Annex- VIII to
this Report.
Expenditure incurred towards CSR Activities:
A total expenditure of Rs.109.77 crore was incurred towards Corporate
Social Responsibility expenses during the Financial Year 2013-14, which
was 0.87% of the net profit after tax of the previous year.
Awards:
Your Company received Golden Peacock Award 2013 for CSR, Appreciation
Certifi cate from ASSOCHAM CSR Excellent Award 2013 and Special Jury
Commendation from FICCI CSR Award 2012-13.
17.1.2 NTPC Foundation
NTPC Foundation is engaged in serving and empowering the physically
challenged and economically weaker sections of the society.
Initiatives undertaken by the Company are covered under Annex-VII to
this Report.
17.1.3 Rehabilitation & Resettlement (R&R)
Your Company is committed to help the people affected by its projects
and has been making all its efforts to improve the socio-economic
status of Project Affected Persons (PAPs). In order to meet its social
objectives, your Company is focusing on effective R&R of PAPs and
undertaking community development activities in and around the
projects.
Land availability for bulk tendered projects for which award was placed
during the year was ensured through proactive redressal of R&R issues.
Initial community development (ICD) activities in the area of Health,
Education, Sanitation, Drinking water, Infrastructure facilities etc
for Bilhaur project was approved after consultation with the
stakeholders and for Khargone project, provisions for ICD activities
was enhanced during the year. Implementation of earlier approved ICD
activities continued at Barethi, Darlipali, Gajmara, Khargone, Jhajjar,
Nabinagar (BRBCL) and Nabinagar (NPGC) projects.
R&R activities and CD activities in the area of in the area of Health,
Education, Sanitation, Drinking water, Infrastructure facilities,
capacity building etc were implemented at the new Greenfield projects
after finalization of respective R&R Plan in consultation and
participation of the stakeholders at Gadarwara, Lata-Tapovan and
Dulanga projects. Provisions under R&R Plans was enhanced for North
Karanpura, Tapovan-Vishnugad, Pakri-Barwadih, Chatti-Bariatu and
Kerandari projects. At other thermal, hydro and coal mining projects
like Barh, Bongaigaon, Dadri, Kanti, Korba, Kudgi, Lara, Mouda,
Solapur, Tanda, Vallur, Vindhyachal, Koldam, Talaipalli projects, R&R
activities continued throughout the year.
For the benefits of project affected persons and neighbouring
population, Mobile Health Clinic was deployed by Kudgi and Nabinagar
(NPGC) projects. Toilets have been constructed for PAPs at Kudgi and
Khargone projects. Drinking water facility has been augmented for
supplying of water for project affected villages at Solapur project.
Socio-economic Survey (SES) for Bilhaur, Mouda-II and Gajmara is in
progress.
17.2 Environment Management  Initiatives for preserving Environment
Vision Statement on Environment Management:
"Going Higher on Generation, lowering GHG intensity"
Your Company is pursuing the objective of environment protection as one
of its prime responsibilities and focuses its efforts to mitigate the
impact of its operation on surrounding environment. Around 12-15% of
the project cost is spent on various environment protection equipments.
To meet the environmental challenges of 21st century and beyond, the
Company has adopted sound environment management practices and advanced
environment protection system to minimize impact of power generation on
environment.
Your Company has adopted advanced and high effi ciency technologies
such as super critical boilers for the upcoming green field projects.
Your company is augmenting its capacity by installing solar power
systems and micro hydel power systems attached to its thermal power
stations, wherever possible, so as to encourage garnering of renewable
energy resources. The Company is also designing its up-coming plants to
use beneficiated coal and imported low ash coal. These measures are
aimed not only to achieve reduction in pollution and minimize use of
precious natural resources but also to lead to reduction of CO2
emissions per unit of generation thereby reducing global warming.
17.2.1 Control of Air Emissions: High effi ciency Electro- static
Precipitators (ESPs) with effi ciency of the order of 99.97% and above,
with advanced control systems have been provided in all coal based
stations to keep Suspended Particulate Matter (SPM) below permissible
limits. All up-coming new plants are being provided with ESPs designed
in such a manner that would cater to the anticipated future norms.
Performance enhancement of ESPs operating over the years is being
carried out by augmentation of ESPs fields, retrofitting of advanced
ESP controllers and adoption of sound O&M practices. Flue Gas
Conditioning systems have also been provided at our old units which are
helping in reduction of SPM emissions below statutory limits even
during coal quality variations due to blending of coal etc. Also,
massive R&M program is being undertaken to upgrade air pollution
equipments to reduce SPM emissions.
NOX control in plants is achieved by controlling its production by
adopting best combustion practices. Since tall stacks are provided in
coal stations, NOx emitted through stacks is widely dispersed and
diluted. In gas based stations, NOx control systems (hybrid burners or
wet DeNOx) have been provided for good combustion practices.
Fugitive emission from ash pond is controlled by maintaining water
cover, tree plantation on abandoned ash ponds, water spray and earth
cover in inactive lagoons. Providing dust suppression and extraction
system in CHP area has further added to reduction in fugitive dust in
the vicinity of power stations.
17.2.2 Control of water pollution and promotion of water conservation:
Various water conservation measures have been taken up to reduce water
consumption in power generation by using 3Rs (Reduce, Recycle & Reuse)
as guiding principle.
Provision of advanced treatment facilities such as Liquid Waste
Treatment Plants (LWTP), Recycling Systems for Ash Pond Effl uent
called Ash Water Recirculation System (AWRS) and closed cycle condenser
cooling water systems with higher Cycle of Concentration (COC), rain
water harvesting wherever possible and reuse of treated sewage effl
uent for horticulture purposes are some of the measures implemented in
most of the stations. All these measures have resulted in reduction of
effl uent discharge from the power plants of NTPC.
17.2.3 Ash Management: Ash dykes in the stations have been engineered
to ensure that all safety and environmental issues are addressed at
design stage itself.
Multi-lagoon ash ponds with provision of over-fl ow lagoons and ash
pipe garlanding arrangement for change over of ash slurry feed points
have been provided for effective settlement of ash particles.
Water sprinklers have been provided in the ash pond areas for spraying
water in dried up portion of lagoons for control of fugitive dust.
Efforts are made to maximize utilization of ash through use of Dry Ash
Extraction System (DAES).
Unutilized ash is sent to ash pond by making ash slurry. The decanted
water in Ash Pond is recycled back with the help of Ash Water
Recirculation System (AWRS) for making ash slurry again, leading to
reduction in water consumption.
17.2.4 Automation of environment measurement system: 67 continuous
ambient air quality monitoring stations (AAQMS) have been installed to
capture the real time data and access thereof viz., PM 10, PM 2.5, SOx,
NOx and access has been provided to the Central Pollution Control Board
and State Pollution Control Boards. Additional ozone analyzers for
ambient air are also being provided at the stations. Continuous
Emission Monitoring Systems (CEMS) to monitor SOx, NOx and CO2 in all
its units on real time basis are being installed in all existing units
of the Company. For all the upcoming projects, real time monitors for
ambient air and emissions are included in the engineering packages
during design stage itself.
17.2.5 Environmental Studies: Your Company has taken a number of
studies for better environment protection and to develop strong
scientifi c database.
17.2.6 Tree Plantation: Your Company has planted about 21 million trees
till date in and around its projects as a measure of massive
afforestation.
The afforestation has not only contributed to the aesthetics but also
helped in carbon sequestration by serving as a sink for CO2 released
from the stations and thereby protecting the quality of ecology and
environment in and around the projects.
17.2.7 ISO 14001 & OHSAS 18001 Certifi cation: NTPCs stations have
been certifi ed with ISO 14001 and OHSAS 18001 by reputed National and
International certifying agencies as a result of sound environment
management systems and practices.
17.3 Quality Assurance and Inspection (QA&I)
Your Company has a quality assurance and inspection division which
mainly focuses on quality assurance in every aspect like quality and
timely supplies for large capacity units. It continues to emphasize the
strict implementation of quality systems in construction as well as in
operations of all the projects/ stations. Regular quality system audits
are undertaken at our project construction sites to ensure continuous
improvements in implementation of quality system improvements.
Your company has now added four overseas inspection offi ces at Japan,
China, Germany and Vietnam.
A recent initiative has been undertaken by your Company to improve the
procurement of critical/ bulk spares for power stations, to ensure
quality and reliability of spares and standard quality plans for 30
such spares have been prepared by QA&I Department.
Your Company is represented on various technical committees of ISO and
IEC and is actively contributing in formulation and updation of power
sector technical and quality standards/ guidelines.
17.4 Clean Development Mechanism (CDM)
Your Company is undertaking climate change issues proactively.
The methodology for super critical technology prepared by NTPC viz.
"consolidated base line and monitoring methodology for new grid
connected fossil fuel fi red power plants using less GHG intensive
technology" has been approved by "United Nations Frame Work Convention
on Climate Change (UNFCCC)" under Approved Consolidated Methodology 13
(ACM0013).
Two of its solar projects namely 5MW each solar PV project at Dadri and
Port Blair, Andaman & Nicobar had already been registered with UNFCCC.
Another two projects namely 5MW solar PV project at Faridabad and 8MW
Small Hydro Power Project at Singrauli are in advanced stage of
validation for submission to UNFCCC for CDM registration. Verifi
cation/ issuance of CERs for 5 MW solar power PV project at Dadri and
5MW solar power PV project at A&N are in process.
In addition, your companys projects namely North Karanpura, Tapovan
Vishnugad HEPP, energy effi ciency projects at Singrauli and Dadri have
got host Country Approval from National CDM Authority.
17.5 Ash Utilisation
During the year 2013-14, 57.83 million tonnes of ash was generated and
25.37 million tonnes of ash had been utilized for various productive
purposes. This was 43.88% of the total ash generated.
Important areas of ash utilization are  cement & asbestos industry,
ready mix concrete plants (RMC), road embankment, mine fi lling, ash
dyke raising & land development. 7.19 million tonnes of ash has been
issued to cement, RMC and other industries in the financial year
2013-14.
Pond ash from all stations of NTPC is being issued free of cost to all
users. Fly ash is also being issued free of cost to fl y ash/ clay-fl y
ash bricks, blocks and tiles manufacturers on priority basis over the
other users from all NTPC coal based thermal power stations. The funds
collected from sale of ash is being maintained in a separate account by
NTPC Vidyut Vyapar Nigam Limited, a wholly-owned subsidiary company of
NTPC and the same is being utilized for development of infrastructure
facilities, promotion and facilitation activities to enhance ash
utilization.
The quantity of ash produced, ash utilized and percentage of such
utilization during 2013-14 from NTPC Stations is at Annex-IX.
17.6 RURAL ELECTRIFICATION
NTPC, through its wholly owned subsidiary NESCL, is carrying out the
implementation of rural electrifi cation work in 5 States namely Madhya
Pradesh, Chhattisgarh, Odisha, Jharkhand and West Bengal under
Government of India, fl agship program, Rajiv Gandhi Grameen
Vidyutikaran Yojana (RGGVY). During this period, 1,442 villages were
electrifi ed and 24,742 Below Poverty Line (BPL) connections were
provided. The cumulative achievement till 31st March 2014 is 33,807
villages and 26,27,485 BPL connections.
17.7 CenPEEP Â towards enhancing effi ciency and protecting Environment
NTPC initiated a unique voluntary program of GHG emission reduction by
establishing Center for Power Effi ciency and Environmental Protection
(CenPEEP) and under this program, it is estimated that over 37 million
tons of CO2 has been avoided since 1996.
CenPEEP is also coordinating the implementation of Perform, Achieve &
Trade (PAT) Scheme under Prime Ministers National Mission on Enhanced
Energy Effi ciency (NMEEE) in NTPC where all 22 stations of NTPC are
designated Consumers (DC). Based on gap analysis, a joint action plan
is prepared with Station for improvement of effi ciency and auxiliary
power to achieve the PAT targets in the year 2014-15.
Thrust has been given to effi ciency improvement & auxiliary power
reduction through strategic initiatives of Energy Effi ciency
Management System (EEMS), Energy management System (EMS), Energy Audit
System and reliability improvement through Knowledge Based
Maintenance systems. Optimization of cooling tower performance and
air-preheater has also been taken up as thrust area. Leveraging the use
of information technology, new initiatives have been taken with
installation of on - line systems such as Thermal Loss Analyser (TLA)
and System Energy Effi ciency Display (SEED) for tracking and gap
analysis of heat rate and auxiliary power consumption. These systems
assist the operator and facilitate the trending of degradation of
equipment performance and formulation of action plans for improvement.
Evaluation has also been done for use of performance diagnostics
off-line tool based on first principle energy / mass balance to help
in effi ciency and capacity gap analysis and performance baselining of
some of the NTPC units thereby enhancing skill for problem analysis.
Under Indo-US bilateral program Partnership to Advance Clean Energy Â
Deployment (PACE-D) being implemented with support of USAID,
assessment of effi ciencies has been done for two State utilities
namely Haryana and Maharashtra and action plans were formulated for
them. A Best practices manual for super critical units has been
prepared jointly with US experts and was released by Secretary (Power)
Govt of India on the occasion of NTPC International O&M Conference
2014. Work on benchmarking methodology document, coal blending
impact studies and pilot program on Advanced Pattern recognition (APR)
is underway with the help of US experts.
18. NETRA Â R&D Mission in Power Sector
NTPC Energy Technology Research Alliance (NETRA), the research &
development wing of NTPC focuses on areas of effi ciency & availability
improvement; cost reduction; renewable and alternative energy source;
climate change & environment protection; and providing scientifi c
support to utilities.
Research Advisory Council (RAC) of NETRA comprising eminent scientists
and experts from India and abroad is in place to steer research.
Scientifi c Advisory Council (SAC) with Executive Directors as its
members provides directions for undertaking specific applied research
projects aimed to develop techniques in power plant for effi cient,
reliable and environment friendly operation with emphasis on reducing
cost of generation. The meetings for both these Advisory Councils were
held periodically.
In order to provide maximum possible benefit to the stations, many
projects/activities have been undertaken for implementation like waste
Flue gas based air conditioning system for control rooms at Ramagundam,
Computational Fluid Dynamics (CFD) modeling based plant improvement in
boiler and CW system for increasing effi ciency and reducing auxiliary
power consumption, robotic inspection of boiler pressure parts, PDC-RVM
based expert system for transformer condition monitoring etc.
Development of many in-house products/technologies is in advance stage
like NETRA e Power Plant Solution (NePPS) based on Artifi cial
Intelligence Software for real time plant performance monitoring,
optimization & diagnostic, Flue gas utilization for pH reduction of
re-circulating ash pond water at Ramagundam etc. NETRA continued to
provide scientifi c support to all NTPC stations as well as many other
utilities stations in the area of oil/water chemistry, environment,
electrical, Rotor dynamics etc for effi cient performances.
Some state-of-the-art facilities established for condition monitoring
and diagnostic techniques include frequency scanning eddy current
system for evaluation of coating on gas turbine blades; portable
automated ball indentation for evaluation of in-situ mechanical
properties; eddy current array, Time of Flight Diffraction technology
for rapid, reliable, accurate inspection of weldments of high pressure
and high temperature pipeline and headers, Energy Dispersive X-Ray
Fluoresce, Frequency Domain Spectroscopy, Simultaneous Thermal
Analyzer, Particle Counter (NAS Value) etc.
NTPC has inked an umbrella MOU with Indian Institute of Science,
Bangalore to promote research in CFD, renewable, water chemistry, ash
utilization etc.
Agreement has been signed with KFW, Germany for setting up of (i)
Advanced Test and Qualifi cation Centre for Concentrating Solar Thermal
Technologies with
DLR Germany (ii) Advance pilot test setup for 91kwp concentrating solar
PV and PV characterization test lab with ISE-Fraunhofer, Germany.
NETRA laboratories are accredited as per ISO 17025 and its NDT
laboratory has also been recognized as "Well known Remnant Life
Assessment Organization" under the Boiler Regulations, 1950.
Phase-II NETRA infrastructure is under construction with approx 21,000
sq m fl oor area and is expected to be completed in FY 2014-15. Phase
II will have 30 laboratories, workshop, pilot plant bay and an
auditorium with seating capacity of 400 persons.
NETRA organized National Workshops during 2013-14 in the area of
Sensors for Power Plant Process & Equipment, Metallurgical Aspects in
Power Plants, Condition monitoring and Life Assessment of Transformers,
and also Coordinated International Conference on "Advance Technologies
& Best Practices for Super Critical Thermal Plants" under PACE-D
Technical Assistance Program.
19. IMPLEMENTATION OF OFFICIAL LANGUAGE
Your Company has taken several steps for the propagation and
implementation of Offi cial language Hindi in the Company. The
progress of usage of Hindi was inspected and proper suggestions were
given to the Heads of the Offi ces. The quarterly meetings of the Offi
cial Language Implementation Committee were held to review the
implementation of Hindi in the organization.
Hindi Diwas and Hindi Competitions were organized from 1st to 13th
September, 2013 in the Corporate Offi ce as well as in all the Projects
and Regional HQ of NTPC. NTPC Limited received All India Indira Gandhi
Rajbhasha Second Prize from Honble President of India, Shri Pranab
Mukherjee. Various Hindi workshops and Hindi Computer Training were
conducted for the employees. Your Company organized Akhil Bhartiya
Rajbahsha Sammelan for Power Sector Undertakings on 9th May, 2013.
Annual Rajbhasha Conference for the Heads of Rajbhasha was held on 10th
& 11th May, 2013.
All offi ce orders, formats and circulars were issued in Hindi as well.
Important advertisements and house journals were released in bilingual
form- in Hindi and in English. Two issues of half-yearly Hindi magazine
Vidyut Swar was published to promote creative writing in Hindi.
Your Companys website also has a facility of operating in bilingual
form- in Hindi as well as in English.
20. VIGILANCE
20.1 Vigilance Mechanism:
Your Company ensures transparency, objectivity and quality of decision
making in its operations, and to monitor the same, the Company has a
Vigilance Department headed by Chief Vigilance Offi cer, a nominee of
Central Vigilance Commission. The CVO reports to the Central Vigilance
Commission.
The four units of Vigilance Department namely Corporate Vigilance Cell,
Departmental Proceeding Cell (DPC), MIS Cell and Technical Cell (TC)
deal with various facets of vigilance mechanism. The Vigilance
Department submits its report to the Competent Authority and also to
the Board of Directors.
Surprise checks are being conducted in various departments and recovery
is being made against discrepancies, if any, found. Vigilance
department issued various circulars for improvements in systems like
import of coal, material handling, single tender awards, owner issue
materials, utilization of non-moving items etc. A total of 146
vigilance complaints were received during the year, out of which 82
complaints have been resolved and balance 64 complaints are under
various stages of investigations.
As per the directive of DOPT/ MOP, the property returns of all the
executives have been published on NTPC Website.
20.2 Workshops and Vigilance Awareness Week
Preventive Vigilance Workshops are being conducted every year to
sensitize employees about DOs and DONTs in work areas and their role
in preventing corruption. 19 such workshops were held across NTPC in
which 529 employees participated.
Vigilance awareness week was observed from October 28, 2013 to November
2, 2013 across all NTPC projects and sites.
20.3 Implementation of Integrity Pact
Your Company is committed to have total transparency to its business
processes and as a step in this direction; it signed a Memorandum of
Understanding with Transparency International India in December, 2008.
The Integrity Pact is being implemented for all contracts having value
exceeding Rs. 10 crore. Two Independent External Monitors have been
nominated by the Central Vigilance Commission for all contracts with
value exceeding Rs. 100 crore. Regular meetings are being organized with
Independent External Monitors.
20.4 Implementation of various policies/ circulars
20.4.1 Fraud Prevention Policy
The Fraud Prevention Policy has been formulated and implemented in your
Company since 2006. The cases referred by the nodal offi cers are being
investigated immediately to avoid fraudulent behaviors as defi ned in
the Fraud Prevention Policy.
20.4.2 Complaint Handling Policy
Vigilance department has formulated and implemented Complaint Handling
Policy w.e.f. 01.08.2013 which contains the procedure for handling
various complaints lodged with the department.
20.4.3 Whistle Blower Policy
Whistle Blower Policy has been issued to build and strengthen a culture
of transparency and trust in the organization and to provide employees
with a framework/ procedure for responsible and secure reporting of
improper activities within the company and to protect employees who
raise concern about improper activities/ serious irregularities.
21. RIGHT TO INFORMATION
Your Company has implemented Right to Information Act, 2005 in order to
provide information to citizens and to maintain accountability and
transparency. The Company has put RTI manual on website for access to
all citizens of India and has designated a Central Public Information
Offi cer (CPIO), an Appellate Authority and APIOs at all sites and offi
ces of NTPC.
During 2013-14, 1,226 applications were received under the RTI Act, out
of which 1,171 applications were replied to.
22. USING INFORMATION AND COMMUNICATION TECHNOLOGY FOR PRODUCTIVITY
ENHANCEMENT
NTPC has implemented an Enterprise Resource Planning (ERP) package
covering maximum possible processes across the organization including
subsidiaries. In addition to the core business processes and Employee
Self Service (ESS) functionality, the ERP solution also includes
e-procurement, Knowledge Management, Business Intelligence, Document
Management, Workfl ow etc. The ERP system is fully managed through
in-house expertise from process groups and technical groups. Parallely,
in- house solutions have been developed to take care of the non-ERP
areas.
A state-of-the-art main data center with centralized server facility to
cater to the needs of entire Company is located at Noida. There is a
disaster recovery center at Hyderabad as a full back up for real time
changeover in case of any emergency.
Videoconferencing (VC) facility is widely used for management reviews/
training/ deliberations among locations. The facility has also been
augmented to hold VC with external agencies in secured manner.
In order to improve upon effi ciency and bringing transparency in
procurement process in NTPC, e-procurement process using SRM module of
ERP is widely used.
An emergency response system (ERS) has been deployed and hosted
centrally at Noida to cater to different requirements of sending
information to the employees using SMS services and emergency alerts
during Voice Calls.
Various other applications have been developed to take care of RTI,
Parliament Questions Management, legal system, transit camp booking
requirement etc.
NTPC tender website www.ntpctender.com is being regularly used for
publishing all open tenders on the Internet. Additional Website
www.ntpcexemployees. co.in for facilitating superannuated employees
has also been hosted.
The Information Technology department at Corporate Center Noida has
been awarded certifi cate in recognition of the organizations Quality
Management System which complies with ISO 9001:2008 for "Providing IT
Enabled Services".
23. NTPC GROUP: SUBSIDIARIES AND JOINT VENTURES
Your Company has currently 4 subsidiary companies and 21 joint venture
companies for undertaking specific business activities.
NTPC Hydro Limited, a wholly owned subsidiary of NTPC has been merged
with NTPC Limited on 18.12.2013 in terms of Section 391-394 of the
Companies Act, 1956.
The names of Subsidiaries and Joint Venture Companies and the
percentage of your Companys shareholding in these Companies as on
31.03.2014 are as follows:
The performance of these companies as well as the consolidated fi
nancial statements are briefl y discussed in the Management Discussion
& Analysis section. The financial statements of subsidiary companies
along with the respective Directors Report are placed elsewhere in
this Annual Report.
24. INFORMATION AS PER COMPANIES (PARTICULARS OF EMPLOYEES) RULES,
1975
As per provisions of Section 217 (2A) of the Companies Act, 1956 read
with the Companies (Particulars of Employees) Rules, 1975, every
company is required to provide particular of employees in the
Directors Report exceeding the stipulated remuneration limit(s).
However, as per notifi cation dated 31.03.2011 issued by the Ministry
of Corporate Affairs, amending provisions of said rules, Government
Companies are exempted from including such particulars in the
Directors Report.
As your Company is a Government Company, such particulars have not been
included in the Directors Report. Any member desirous of obtaining
such particulars may write to the Company Secretary at the Registered
Offi ce of the Company or download them from the website
www.ntpc.co.in. Such particulars shall also be made available to the
shareholders on a specific request made by them during the course of
Annual General Meeting to be held on 27.08.2014.
25. STATUTORY AUDITORS
The Statutory Auditors of your Company are appointed by the Comptroller
& Auditor General of India. M/s O.P. Bagla & Co., K.K. Soni & Co., PKF
Sridhar & Santhanam, V. Sankar Aiyar & Co., Ramesh C. Agrawal & Co. and
A.R. & Co.were appointed as Joint Statutory Auditors for the financial
year 2013-14.
26. MANAGEMENT COMMENTS ON STATUTORY AUDITORS REPORT
The Statutory Auditors of the Company have given an unqualifi ed report
on the accounts of the Company for the financial year 2013-14. They
have drawn attention towards Note-32 to the financial statements in
respect of the accounting of fuel on GCV based pricing system.
The issue has been adequately explained in Note 32 of the financial
statements of NTPC for FY 2013-14 referred to by the Auditors.
27. REVIEW OF ACCOUNTS BY COMPTROLLER & AUDITOR GENERAL OF INDIA
You would be pleased to know that for the fi fth year in a row your
organization has received NIL Comments on the Financial Statements
for the year from the Comptroller & Auditor General of India (C&AG).
As advised by the Offi ce of the C&AG, the comments of C&AG for the
year 2013-14 are being placed with the report of Statutory Auditors of
your Company elsewhere in this Annual Report.
28. COST AUDIT
As prescribed under the Cost Accounting Records (Electricity Industry)
Rules, 2001, the Cost Accounting records are being maintained by all
stations of the Company. The particulars of Cost Auditors as required
under Section 233(B) of the Companies Act, 1956 read with General
Circular No. 15/2011 dated 11.04.2011 issued by Ministry of Corporate
Affairs are given below:
The fi rms of Cost Accountants appointed for the financial year
2012-13 were (i) M/s Dhananjay V. Joshi & Associates, Pune,
Maharashtra, (ii) M/s Jugal K. Puri & Associates, Gurgaon, Haryana,
(iii) M/s Mandal Mukherjee Datta & Associates, Kolkata, West Bengal,
(iv) M/s S.C. Mohanty & Associates, Bhubhaneshwar, Orissa, (v) M/s V.P.
Gupta & Co., Noida, Uttar Pradesh and (vi) M/s Chandra Wadhwa & Co.,
Daryaganj, Delhi.
The fi rms of Cost Accountants appointed for the financial year
2013-14 were (i) M/s Narasimha Murthy & Co., Hyderabad, (ii) M/s Musib
& Co., Mumbai, (iii) M/s Sanjay Gupta & Associates, Delhi, (iv) M/s
Bandopadhyay Bhaumik & Co., Mumbai, (v) M/s S. Dhal & Co.,
Bhubhaneshwar and (vi) M/s R.J. Goel & Co., Delhi.
The due date for fi ling consolidated Cost Audit Report in XBRL format
for the financial year ended March 31,
2013 was September 27, 2013 and the consolidated Cost Audit Report for
your Company was filed with the Central Government on September 16,
2013.
The Cost Audit Report for the financial year ended March 31, 2014
shall be filed within the prescribed time period under the Companies
Act, 2013.
29. BOARD OF DIRECTORS
Dr. Pradeep Kumar, JS & FA, Ministry of Power has joined as Government
Nominee Director of the Company with effect from September 10, 2013 in
place of Shri Rakesh Jain who ceased to be the Director of the Company
w.e.f. July 9, 2013 consequent upon his transfer from Ministry of
Power.
Shri A.K. Singhal, Director (Finance) ceased to be the Director of the
Company w.e.f. October 9, 2013 consequent upon his appointment as
Member of the Central Electricity Regulatory Commission.
Consequent upon superannuation of Shri B.P. Singh on September 30,
2013, Shri S.C. Pandey has taken over as Director (Projects) with
effect from October 1, 2013.
Shri I.C.P. Keshari has ceased to be the Director of your Company
w.e.f. September 30, 2013 on ceasing to be the offi cial of Ministry of
Power.
Shri G. Sai Prasad, JS (Thermal), Ministry of Power had joined as
Government Nominee Director of the Company with effect from December 5,
2013. However, he has ceased to be the Director on the Board w.e.f.
June 16, 2014 consequent upon his transfer from Ministry of Power.
Shri Kulamani Biswal, Director (Finance), Mahanadi Coalfields Limited
has taken over the charge of the Director (Finance) of the Company with
effect from December 9, 2013.
The Board wishes to place on record its deep appreciation for the
valuable services rendered by Shri Rakesh Jain, Shri A.K. Singhal, Shri
B.P. Singh, Shri I.C.P. Keshari and Shri G. Sai Prasad during their
association with the Company.
In accordance with Section 152 of the Companies Act, 2013 and the
provisions of Article 41(iii) of the Articles of Association of the
Company  Shri I.J. Kapoor shall retire by rotation at the Annual
General Meeting of your Company and, being eligible, offers himself for
re-appointment.
30. DIRECTORS RESPONSIBILITY STATEMENT
As required under Section 217(2AA) of the Companies Act, 1956, your
Directors confirm that:
1. in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures;
2. the Directors had selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the company at the end of the financial year 2013-14 and of the
profit of the company for that period;
3. the Directors had taken proper and suffi cient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the company and for preventing and detecting fraud and other
irregularities; and
4. the Directors had prepared the Annual Accounts on a going concern
basis.
31. INFORMATION PURSUANT TO STATUTORY AND OTHER REQUIREMENTS
Information required to be furnished as per the Companies Act, 1956,
Listing Agreement with Stock Exchanges, Government guidelines etc. is
annexed to this report as below:
Particulars Annexure
Management Discussion & Analysis I
Report on Corporate Governance II
Information on conservation of energy, III
technology absorption and foreign
exchange earnings and outgo
Statement pursuant to Section 212 of the IV
Companies Act, 1956 relating to subsidiary
companies
Statistical data of the grievance cases V
Statistical information on persons VI
belonging to Scheduled Caste / Scheduled
Tribe categories
Information on Physically Challenged VII
persons
UNGC - Communications on progress VIII
Project Wise Ash Utilisation IX
Business Responsibility Report for the year X
2013-14
32. ACKNOWLEDGEMENT
Your Directors acknowledge with deep sense of appreciation, the
co-operation received from the Government of India, particularly the
Prime Ministers Offi ce, Ministry of Power, Ministry of Finance,
Ministry of Environment & Forests, Ministry of Coal, Ministry of
Petroleum & Natural Gas, Ministry of Railways, the Planning Commission,
Department of Public Enterprises, Central Electricity Authority,
Central Electricity Regulatory Commission, Comptroller & Auditor
General of India, Appellate Tribunal for Electricity, State
Governments, Regional Power Committees, State Electricity Boards and
Offi ce of the Attorney General of India.
Your Directors also convey their gratitude to the shareholders, various
international and Indian Banks and Financial Institutions for the confi
dence reposed by them in the Company.
The Board also appreciates the contribution of contractors, vendors and
consultants in the implementation of various projects of the Company.
We also acknowledge the constructive suggestions received from
Government and Statutory Auditors.
We wish to place on record our appreciation for the untiring efforts
and contributions made by the employees at all levels to ensure that
the company continues to grow and excel.
For and on behalf of the Board of Directors
Place : New Delhi (Dr. Arup Roy Choudhury)
Date : 11th July 2014 Chairman & Managing Director
Mar 31, 2013
Dear Members,
The Directors are pleased to present the 37th Annual Report and the
audited financial statements for the year ended March 31, 2013.
Financial Year 2012-13 has been a year of achievements for your Company
as it performed exceedingly well in various areas of its activities.
Major highlights for the year are:
- Addition of 4,170 MW capacity (including 1000 MW through JV
Companies), by far the highest ever in any single year and declared
4,830 MW (including 1000 MW through JV Companies) on commercial
generation, also the highest ever in a year. Awarded contracts forwork
of8,521 MW.
- Average PLFof83.08% as against all India PLF of 69.95% with six
stations recording more than 90% PLF.
- Capital expenditure (CAPEX) of Rs. 19,925.53 crore which was 24.58%
higher than the previousyearsRs. 15,994 crore.
- 100% realization ofcurrent bills from customers.
- Highest ever net profit after tax ofRs. 12,619.39 crore, making an
increase by 36.81% over the previous years PAT of Rs. 9,223.73
crore and recorded total income of Rs. 68,775.51 crore, an increase of
6.07% as compared to Rs. 64,841.88 crore in the FY 2011-12.
- Highest-ever dividend ofRs. 5.75 per share (total Rs. 4,741.16 crore)
which comprises interim dividend of Rs. 3.75 per equity share paid in
March 2013 and recommendation of special dividend of Rs. 1.25 per
equity share and final dividend of Rs. 0.75 per equity share for the
year 2012-13, subject to approval of the shareholders.
- Approval of the Ministry of Power for implementation of North
Karanpura Super Thermal Power Project (3X660 MW) at existing site in
the State of Jharkhand by NTPC.
- Withdrawal of de-allocation of Chatti-Bariatu, Chatti-Bariatu (South)
and Kerandari Coal Blocks by Ministry of Coal which werede-allocated by
Ministry ofCoal inJune 2011.
- Disinvestment of 9.50% holding by Government of India in the equity
of your Company, thus reducing its holding from 84.50% to 75.00%.
- Commissioned first two solar power plants of 5 MW each at Dadri and
Andaman & Nicobar Islands.
You will appreciate the fact that your Company is imparting a major
thrust to the growth of the power sector and recording consistently
excellent performance despite the challenge before the sector.
1. FINANCIAL RESULTS
2012-13 2011-12
Revenue Rs. Crore US $ Mn* Rs. Crore US $ Mn*
Net Revenue from
Operations(induding
Enersy Sales, 65,673.93 11,960.29 62,052.23 11,300.72
Consultancy,
Energy consumed
internally)
Other Income 3,101.58 564.85 2,789.65 508.04
Total Revenue 68,775.51 12,525.14 64,841.88 11,808.76
Expenses
Fuel 41,018.25 7,470.09 41,635.46 7,582.49
Employee
Benefits Expense 3,360.12 611.93 3,101.71 564.87
Finance Costs 1,924.36 350.46 1,711.64 311.72
Depreciation and
amortization expense 3,396.76 618.60 2,791.70 508.41
Generation,
administration
& other expenses 4,211.22 766.93 3,588.79 653.58
Prior period
items (net) (29.72) (5.41) (313.58) (57.11)
Total Expenses 53,880.99 9,812.60 52,515.72 9,563.96
Profit before Tax
and exceptional items 14,894.52 2,712.54 12,326.16 2,244.80
Exceptional items 1,684.11 306.70 - -
Profit before tax 16,578.63 3,019.24 12,326.16 2,244.80
Tax Expense 3,959.24 721.04 3,102.43 565.00
Profit for the year 12,619.39 2,298.20 9,223.73 1,679.80
2012-13 2011-12
Rs. Croe US $ Mn* Rs. Crore US $ Mn*
Transfer to bond
redemption reserve 492.79 89.75 482.38 87.85
Transfer to general
reserve 6,500.00 1,183.76 5,200.00 947.00
Transfer to
capital reserve 0.97 0.18 0.44 0.08
Interim dividend 3,092.07 563.12 2,885.92 525.57
Proposed dividend 1,649.09 300.33 412.27 75.08
Tax on dividend 781.87 142.39 527.92 96.14
*1US$= Rs. 54.91 as on March 31,2013
2. DISINVESTMENT
One of the major highlights of the year that passed was that the
Government of India divested 78,32,62,880 number of equity shares
(9.50%) of NTPC on 7th February 2013 using the Offer for Sale through
Stock Exchange Mechanism. With this, the GOIs holding in NTPC has
reduced from 84.50% to 75.00%. The Offer was over- subscribed by 1.7
times and garnered Rs. 11,469.39 crore at weighted average price of Rs.
146.43. An important feature was that 45% of the subscription came from
Fils.
3. DIVIDEND
3.1 Interim, Special and Final Dividend:
In addition to interim dividend ofRs. 3.75 per equity share paid in
March 2013, your Directors have recommended a special dividend of Rs.
1.25 per equity share and final dividend ofRs. 0.75 per equity share
for theyear 2012-13. With this the total dividend for theyear isRs.
5.75 (including special dividend ofRs. 1.25) per equity share ofRs.
10/- each against Rs. 4.00 per share paid during last year.
The total dividend payout is 37.57% and the total dividend payout
including dividend tax is 43.77% of profit after tax. The special and
final dividend shall be paid afteryour approval at the Annual General
Meeting.
The dividend has been recommended in accordance with your Companys
policy of balancing dividend pay-out with the requirement of deployment
of internal accruals for its growth plans.
Your Directors believe that growth of the Company through capacity
addition, backward and forward integration and strategic
diversification of its operations would lead to increase in
shareholdersvalue.
4. OPERATIONAL PERFORMANCE
4.1 Generation:
During the year, the power stations of your Company generated 232.028
BUs (247 BUs including JVs) of electricity which was 25.57% (27.22%
including JVs) of the total power generated in India (without Bhutan
import).
The total power generated by the Company has registered an increase of
4.49% over the previous years generation of 222.068 BUs. The total
generation contributed by coal stations is 212.329 BUs during the year
against generation of 199.054 BUs last year registering a growth of
6.67%.
Generation from coal based units could have been still higher but due
to less grid demand there was generation loss of 7.48 BUs. The coal
based stations of your Company operated at average Plant Load Factor
(PLF) of 83.08% (All India PLF 69.95%) and average Availability Factor
of 90.20% on bus bar during theyear. During theyear, 6 coal based
stations out of16achieved more than 90% PLF.
The gas stations having a capacity of 3,955 MW achieved annual
generation of 19.699 BUs at a PLF of 55.98% as against 23.014 BUs last
year mainly due to less grid demand which accounted for a generation
loss of 12.954 BUs. The average declared capacity ofgas based stations
of the year was 93.14% as compared to 93.81% during previous year.
Management Discussion and Analysis Report
Management Discussion and Analysis Report for the year under review, as
stipulated under Clause 49 of the Listing Agreement with the Stock
Exchanges in India and as per Guidelines on Corporate Governance
forCPSEs issued by Department of Public Enterprises, GOI, is presented
in Annex-I to this Report.
5. COMMERCIAL PERFORMANCE
Your Company has realized 100% payment of current bills raised for sale
of power, thus achieving this feat for the tenth consecutive year.
5.1 Rebate Scheme/ One Time Settlement Scheme for realization of dues:
In order to achieve early realization of dues, your Company gives
rebate to its beneficiaries who make payments within time, through its
Rebate Schemes.
In the Rebate Scheme for 2012-13 rebate was given to those customers
also who were making payment after 30 days and upto 55th day.
Rebate Scheme for 2013-14 contains an additional provision of
additional rebate of 0.1% for opening of monthly Letter of Credit (LC)
by beneficiaries over and above the Rebate Scheme for 2012-13.
Most of the customers were making their payments within 30 days of
billing, barring state utilities from UP, Haryana, Punjab, Himachal
Pradesh, Andhra Pradesh, Tamil Nadu, Rajasthan, Meghalaya who were
making their payments within allowable 60 days period.
All the beneficiaries have established LC and are maintaining it. As on
31.03.2013, your Company has monthly LCs ofRs. 5,915.60 crore.
The issue of DESU period dues payable by Government of NCT of Delhi has
been settled and Government of India had approved settlement ofRs.
2,520.08 Crore (Rs. 835.97 crore as principal and Rs. 1,684.11 crore as
interest and surcharge) towards DESU dues. The receipt of amount is
being pursued with the Govt.
5.2 Commercial Capacity:
The following units were declared commercial during the year 2012-13,
adding 4,830 MW to commercial capacity ofyour Company, the highest ever
in a year:
Project/ Unit Capacity COD*
(MW)
NTPC Units- Coal Based (I)
Farakka-III, Unit#6 500 04.04.2012
Sipat-I, Unit#2 660 25.05.2012
Sipat-I, Unit#3 660 01.08.2012
Simhadri-II, Unit#4 500 30.09.2012
Rihand-III, Unit#5 500 19.11.2012
Vindhyachal-IV, Unit#11 500 01.03.2013
Mouda-I, Unit#1 500 13.03.2013
Total (I) 3,820
NTPC Units -Renewable Energy Units (II)
Dadri Solar 5 30.03.2013
Andaman & Nicobar 5 31.03.2013
Islands Solar
Total (II) 10
NTPCs JV Units- Coal Based (III)
Jhajjar,Unit#2(JV with 500 21.04.2012
IPGCL and HPGCL)
Vallur, Unit#1 (JV with 500 29.11.2012
TANGEDCO)
Total (III) 1,000
Total Capacity declared 4,830
commercial during 2012-
13(incl. JVs) (I)+(II)+(III)
* COD- Commercial Operation Date
Further, after the financial year 2012-13, Unit#3 of 500 MW of Jhajjar
(owned by JV, Aravali Power Company Private Limited) has been declared
commercial on 26.04.2013.
5.3 Determination of Tariff:
Your Company had filed tariff petitions for the five- year period
starting 1.4.2009 before Central Electricity Regulatory Commission
(CERC) for all the stations in accordance with the CERC (Terms and
Conditions of Tariff) Regulations, 2009.
Tariff orders have been received for 26 stations till 31.03.2013 out of
35 stations.
True-up petitions for revision of tariff were filed for 20 stations.
CERC had allowed additional reimbursement ofRs. 764.97 crore for
2004-09 period related to pay revision for NTPC employees, CISF and
Kendriya Vidyalaya staff.
5.4 Other Activities:
Long term access for evacuation of power has been granted for five
projects i.e. Vindhyachal-V, Dadri Solar, Tanda, Lara and Darlipalli.
CERC issued an amendment in the grant of connectivity regulation to
allow connectivity to renewable projects having capacity above 5 MW but
less than 50 MW being developed in the existing generating stations
through the existing electrical system of the stations. This provision
would enable your Company to set up renewable capacity within the
premises of the existing generating stations.
5.5 Strengthening Customer Relationship:
Customer Relationship Management (CRM) initiative has been taken by
your Company towards strengthening relationship with the customers.
This is also reflected in the Core Values of your Company which
emphasize Customer Focus.
Under CRM, apart from Regional Customer Meets, Business Partner Meets,
training programs for officials of customers at PMI, regular structured
interaction with customers takes place on an ongoing basis for sharing
of feedbacks, experiences and expectations. Based on the feedback
received from the customers, the Company provides various support
services to them, identifies potential areas of cooperation and shares
best practices with the customer utilities. During 2012-13, 58 such
services were provided to the customers on the basis ofthe requirement
expressed by various customers. Further, 138 participants from various
customer utilities attended training in 60 programs conducted by PMI.
Starting from 2008-09, NTPC has rolled out a Customer Satisfaction
Index (CSI) Survey for gathering customers feedback and responding
to their requirements. This initiative serves as a useful tool for
further strengthening Customer Relationship and better appreciation of
our business. The CSI Survey was conducted in 2012-13 and detailed
action plan has been made based on the response to the survey.
6. INSTALLED CAPACITY
During theyear 2012-13, your Company added 4,170 MW as per details
given below:
Project/ Unit installed during FY 2012-13 Capacity (MW)
NTPC owned
Coal Based Power Projects
Sipat-I, Unit #3 660
Vindhyachal- IV, Unit# 11&12 1000
Mouda-I,Unit1&2 1000
Rihand, Unit # 5 500
Renewable Energy Projects
Solar PV Project at Andaman & 5
Nicobar Islands
Solar PV Project at Dadri 5
Under JVs (Coal Based Power Projects)
Jhajjar (JV with HPGCL & IPGCL), 500
Unit # 3
Vallur (JV with TANGEDCO), Unit#2 500
Addition during FY 2012-13 4,170
6.1 Installed Capacity of NTPC Group:
The total installed capacity of the NTPC Group has increased from
37,014 MW as on 31.03.2012 to 41,184 MW as on 31.03.2013 as tabulated
below:
Owned by NTPC MW
Coal based projects 31,855
Gas based projects 3,955
Renewable Energy Projects 10
Sub-total 35,820
Joint Ventures & Subsidiaries
Coal based projects 3,424
Gas based projects 1,940
Sub-total 5,364
Total 41,184
7. CAPACITY ADDITION PROGRAM
Your Company has adopted a multi-pronged growth strategy which includes
capacity addition through green field projects, brown field
expansions,jointventures and acquisitions towards its journey to become
the worlds largest power producer.
In addition to furthering capacity addition through Coal and Gas based
power projects, your Company has been pursuing enhancement of its power
generation portfolio through Hydro, Renewable Energy and Nuclear energy
projects.
7.1 Projects under Implementation
Your Companys various projects having aggregate capacity of 20,009
MW including 5,190 MW, being undertaken by Joint Venture companies were
under construction as on 31.03.2013:
Ongoing Projects as on 31.03.2013
Capacity (MW)
I. Projects under NTPC Ltd
A. Coal Based Projects
1. Bongaigaon-I 750
2. Barh-I 1,980
3. Barh-II 1,320
4. Lara-I 1,600
5. Kudgi-I 2,400
6. Vindhyachal-V 500
7. Gadarwara* 1,600
8. Solapur 1,320
9. Mouda-II 1,320
10. Rihand-III 500
Sub Total (A) 13,290
B. Hydro Electric Power Projects (HEPP)
11. Koldam 800
12. Tapovan Vishnugad 520
13. Lata Tapovan 171
Sub Total (B) 1,491
C. Renewable Energy Projects
14. Singrauli CW Discharge(Hydro) 8
15. Ramagundam Phase-I(Solar PV) 10
16. Talcher Kaniha (Solar PV) 10
17. Unchahar (Solar PV) 10
Sub Total (C) 38
Total I (A)+(B)+(C) 14,819
II Projects under JVs
Coal Based Projects
18. Nabinagar-JV with Railways 1,000
19. Muzaffarpur Expansion (MTPS)- JV 390
with BSPGCL(erstwhile BSEB)
20. Nabinagar,JV with BSPGCL(erstwhile no. BSEB) 1,980
21. Vallur, Phase-II JV with TANGEDCO 500
22. Meja, JVwith UPRVUNL 1,320
Total II 5,190
III Total On-Going Projects as on 20,009
31.03.2013 (I)+(II)
*Gadarwara Project in Madhya Pradesh (2X800 MW) is beins implemented in
place of Gajmara project in Odisha as the land for the same was not
available.
Further, after the financial year 2012-13, awards have been placed and
work has begun for 5 MW Solar Power Plant at Faridabad and 50 MW Solar
Power Plant at Rajgarh (Madhya Pradesh). Thus, 20,064 MW projects are
under construction byyour Company.
7.2 New Projects
Currently, your Company has projects for 3,555 MW capacity under
bidding. Feasibility Reports of 20,715 MW capacity (including 2100 MW
through Joint Venture) have already been approved byyour Board.
7.3 New Technology
To meet the future challenges of meeting Indias electricity needs at
affordable cost with minimum environmental impact, your Company has
drawn a long term Technology Roadmap up to 2032. The technology roadmap
envisages development, adoption and promotion of safe, efficient and
clean technologies for entire value chain of power generation business.
For most of the new projects, your Company will be setting up super
critical and Ultra Super Critical units of 660/ 800 MW which have
higher efficiency and are also environmental friendly. Your Company has
awarded bulk tendering projects with super critical technology for
Kudgi-I (3X800 MW), Lara-I (2X800 MW), Solapur (2X660 MW), Mouda -II
(2X660 MW) and Gadarwara (2X800 MW).
Your Company has adopted several new technologies, system and practices
including combined cycle gas-fired power stations, Distributed Digital
Control & Management Information System, High Voltage Direct Current
transmission, Sliding Pressure Operation of SG, Dry Ash Extraction and
Disposal, 765 KV Switchyard, Ash Water Recirculation System, Liquid
Waste Management System, Performance Analysis and Diagnostic
Optimization, Tunnel Boring Machines and Super Critical Technologies.
Three (03) numbers Super critical units of 660 MW is already under
operation at Sipat-I where steam parameters are 247 kg/cm2/537° C/5650
C. Further, your Company has adopted higher steam parameters for all
660 & 800 MW units from Barh-ll onward resulting in 5% gain in
efficiency over the efficiency of conventional sub-critical 500 MW unit
using similar coal. For all the new sub-critical 500 MW units also,
reheat temperature has been increased to 565 0 C resulting in about
0.7% gain in efficiency.
Your Company has taken initiatives for indigenous development of
advance ultra super critical technology for which it has entered into
MOU with BHEL and IGCAR. It has potential to enhance thermal
efficiency of the power plant to around 46% and result in about 15-20%
less C02 emission as compared to conventional 500 MW sub-critical
thermal power plants. It envisages installing a technology
demonstration plant having 800 MW unitwith steam parameters of310 kg/sq
cm7100 C/720 °C.
Your Company is preparing Detailed Project Report for hybrid solar
thermal plant of about 3.6 MW by integration of solar heat with 210 MW
coal based unit at Dadri. Solar heat is proposed to be integrated
along with feed heaters in the turbine cycle for conversion of solar
heat to electrical power with the help of existing steam cycle of 210
MW. Once integrated, this will reduce coal consumption thereby reducing
C02 emissions.
7.4 Project Management
Your Company has an established state-of-the-art IT enabled Project
Monitoring Centre (PMC) for facilitating fast track project
implementation. PMC has advanced features like Web-based Milestone
Monitoring System (Webmiles), Project Review and Internal Monitoring
System (PRIMS), Enterprise-wide Issues Tracking System, etc. PMC
facilitates monitoring of key project milestones and also acts as
decision support system for the management.
PMC is extensively utilized fortracking and resolving project issues
and helps in providing effective coordination between the agencies
including management intervention and has provided enhanced and
efficient monitoring of projects leading to better, faster and
integrated implementation.
Your Company is establishing an integrated ERP Platform for monitoring
and controlling of critical project activities spread across various
functions like engineering, contracts and finance. This interface will
help in getting timely inputs for decision making.
7.5 Capacity addition through Subsidiaries and Joint Ventures (JVs)
Besides adding capacities on its own, your Company develops power
projects through its subsidiaries and joint ventures, both in India and
abroad. Details of Joint Ventures abroad are covered under the heading
Globalisation Initiatives.
The information of Indian Subsidiaries and JV Companies along with
details of partners ofjoint ventures for capacity addition is given
below:
Name of JV Partner(s) Details
Company
NSPCL Steel Authority
of India A 50:50 JVC formed to own and
operate captive power plants
for Steel
(NTPC-SAILPower Ltd. (SAIL) Authrity of India at
Dursapur(120 MW), Rourkela
(120 MW) and Bhilai Steel
Co Pvt Ltd) plant MW). 2X250 MW units have
been implemented at Bhilai.
NTECL Tamilnadu
Generation and A 50:50 JVC is implementing
3x500 MW coal based power
project at
(NTPC TamilNadu Distribution
Corporation Vallur,Tamilnadu.
Enersy Co Ltd) Limited Unit#1 of the Project was
declared commercial on
29.11.2012. Unit #2
(TANGEDCO) (erstwhile was synchronized on 28.02.2013
and achieved full load on
28.03.2013.
TNEB) Construction of Unit#3 is
in progress.
APCPL Indraprastha Power This JVC is implementing the
coal based Indira Gandhi Super
Thermal
(Aravali Power Generation Co Ltd. Power Project consisting of 3
units of 500 MW each. NTPC,
IPGCL and HPGCL
Company Pvt (IPGCL) and Haryana have contributed equity in
the ratio of 50:25:25. All
the three units of the
Ltd) Power Generation
Co Ltd. project have been
synchronized and declared
commercial. The third unit
(HPGCL). was declared commercial on
26.04.2013.
BRBCL Ministry of Railways A subsidiary of NTPC in joint
venture with Ministry of
Railways with equity
(Bhartiya Rail
Bijlee contribution in the ratio of
74:26 respectively for setting
up power project
Company Ltd )* of 1000 MW (4X250 MW) capacity
at Nabinagar in Bihar.
Construction work is under
progress.
MUNPL Uttar Pradesh
Rajya Vidut A 50:50 JVC formed for
setting up 1,320 MW (2X660 MW)
coal based
(Meja Urja Nigam Utpadan Nigam Ltd. power project in the state of
Uttar Pradesh. Main plant
award (SG and TG
pvt Ltd.) (UPRVUNL) Package) has been placed and
construction activities are
in progress.
KBUNL Bihar State Power A subsidiary of NTPC in joint
venture with BSPGCL
(erstwhile BSEB), took
(Kanti Bijlee Generation Company over MTPS having 2 units of
110 MW each from BSEB. The
equity of NTPC
Utpadan Nigam Limited (erstwhile
(BSEB) in this subsidiary is 65%.
Both the units of Stage-I
are under Renovation and
Ltd) Modernisation. The Company
has also taken up expansion
of the project by 2X195 MW
units forwhich construction
work is in progress.
NPGCL Bihar State Power A 50:50 JVC for setting up
and operation of a 3x660 MW
Coal based
(Nabinagar Generation Company plant at Nabinagar.
Investment approval has been
accorded by NTPC in
Power Generating Limited (erstwhile
(BSEB) January 2013 and main plant
TG & SG packages have been
awarded. Land
Company Pvt. Ltd.) acquisition activities are
in progress.
RGPPL GAIL,ICICI,SBI,IDBI, NTPC is having a stake of
32.86% (as on 30.06.2013).
All the three Power
(Ratnagiri
Gas and Canara Bank and MSEB Blocks with a combined
capacity of 1,940 MW are
under commercial
Power Pvt. Ltd.) Holding Co. operation since May 2009.
Power Block generated 5,127
MUs of energy during the
FY 2012-13.
The LNG terminal commissioning
cargo was received at the
Terminal on 28.12.2012 and
the re-gasified LNG was
injected for the first time
on 10.01.2013.In addition to
the commissioning cargo, the
Company received and unloaded
five LNG cargos and re-
gasified and supplied
396712200 MMSCM of RLNG in
its pipeline.
ASHVINI Nuclear Power
Corporation ASHVINI was incorporated on
27.01.2011 as a JVC with
NPCIL having 51%
(Anushakti of India Ltd.
(NPCIL) equity and NTPC having 49%
equity. The company has been
formed for
Vidhyut Nigam setting up nuclear power
project (s) and also to
explore possibilities of
Ltd.) entering in areas of front
end fuel cycle like uranium
mining etc.
*In addition, NTPC Limited has signed Memorandum of Understanding with
Ministry of Railways to set up 1,320 MW power project at Adra, West
Bengal through Bhartiya Rail Bijlee Company Limited. Water allocation
has been sanctioned from Damodar- Barakar River System and NOC from
Airport Authority of India has been obtained. BRBCL has initiated
proposal to carry out the remaining site specific studies.
7.6 Hydro Power
7.6.1 Your Company is setting up the following hydro projects for
increasing its footprints in renewable energy development:
Project Location Capacity
Koldam HEPP Himachal Pradesh 800 MW
Tapovan-Vishungad Uttarakhand 520MW
HEPP
Construction work is in progress in Koldam HEPP and Tapovan - Vishnugad
HEPP.
In addition, Lata Tapovan HEPP (171 MW) (under construction) and
Rammam-lll HEPP (120 MW) (under bidding) were being implemented by NTPC
Hydro Limited, a wholly-owned subsidiary of NTPC.
NTPC Hydro Limited is now being merged with NTPC Limited, for which the
Shareholders Meeting of NTPC and Shareholders Meeting of NHL was
held on 24.05.2013, as per the Order of the Ministry of Corporate
Affairs. The legal process ofamalgamation is in progress.
Loharinag Pala HEPP had been discontinued on the advice of Ministry of
Power. The Empowered Committee constituted by GOI for the purpose of
settling the claims had approved reimbursement of Rs. 536.30 crore in
first Phase to NTPC, your Company is pursuing for release of funds.
The flash flood during June 2013 in the river Dhauliganga have caused
damage to barrage and roads approaching to power houses at Lata Tapovan
HEPP and Tapovan- Vishnugad HEPP. At Tapovan-Vishnugad HEPP, damages
have also been caused to upstream and downstream diversion dyke, roads,
besides water logging and silt accumulation in power house cavern &
Tail Race Tunnel (TRT). While the exact impact shall be known after
receding of flood, however, these factors may influence project
commissioning schedule.
7.6.2 Hydro Engineering
In pursuance of Memorandum of Agreement signed with Govt, of Mizoram,
Detailed Project Report of Kolodyne-ll HEPP (4X115MW) prepared by
Central Water Commission for Govt, of Mizoram and updated by NTPC was
submitted to CEA for according Techno-Economic Clearance (TEC). CEA has
considered the proposal and accorded Techno-Economic Clearance. As the
land required for the project involves Forest Land, the proposal for
approval of diversion of Forest Land was submitted to the Government of
Mizoram. Government of Mizoram is yet to submit the proposal to
Ministry of Environment and Forests.
7.7 Capacity Addition through other Renewable Energy Sources your
Company is planning to add capacity through renewable sources of
energy. It offers environmentally clean power.
your Company plans to broad-base its generation mix to ensure long term
competitiveness, mitigate fuel risks and promote sustainable power
development.
In pursuit of these objectives, 10 MW Solar power capacity has already
been commissioned. 93 MW capacity comprising 85 MW of Solar Power
projects and
8 MW of Small Hydro Power Project is under execution, details of which
are given under the heading project implementation. 95 MW comprising 15
MW Solar Power Project at Singrauli and Wind Energy Projects of 40 MW
each at Karnataka and Maharashtra are under tendering. Detailed
Project Report is under finalization for 3 MW Small Hydro Project at
Rihand.
A Joint Venture Company has been incorporated amongst NTPC Limited,
Asian Development Bank and Kyuden International Cooperation, Japan
under the name PAN- ASIAN Renewables Private Limited to develop
projects for portfolio of about 500 MW of renewable power generation
resources in India. The Company is preparing its initial business plan.
your Company has signed an MOU with CREDA for exploring the potential
of Tatapani Geothermal field and subsequently implementing geothermal
based power project at Tatapani in Chattisgarh on Build, Own and
Operate Basis.
An MOU has been signed with Government of Kerala (GoK) with the
objective to plan and develop around 200 MW wind energy based power
projects in Kerala in association with GOK on Build, Own and Operate
Basis using state-of-the-art technology subject to establishment of
techno-commercial viability.
8. STRATEGIC DIVERSIFICATION- INCREASING SELF- RELIANCE
8.1 In order to strengthen its competitive advantage in power
generation business, your Company has diversified its portfolio to
emerge as an integrated power major, with presence across entire power
value chain through backward and forward integration into areas such as
coal mining, power equipment manufacturing, power trading, and
distribution.
Our Company continuously explores business opportunities through market
scanning and adopts new business plans accordingly.
8.1.1 The details ofjoint venture companies taking up activities in
other businesses are given below:
Name of JV Partner Activities
Company undertaken
UPL Reliance Takes up assignments of
(Utility Infrastructure construction, erection and
Powertech Limited supervision of business in
Ltd.) power sector and other
sectors like O&M services etc
NASL ALSTOM Takes up renovation and
(NTPC Power modernization assignments
ALSTOM Generation, of power plants both in
Power AG India and in other SAARC
Services countries.
Pvt. Ltd.)
EESL PFC, PGCIL The Company was formed
(Energy and REC on December 10, 2009
Efficiency for implementation of
Services Energy Efficiency projects
Ltd.) and to promote energy
conservation and climate
change.
The Company is providing
consultancy on Energy Audit
of Buildings and Agricultural
Pump replacement under
Perform Achieve Trade Scheme
and implementing Bachat
Lamp Yojna for various State
Govts.
NHPTL NHPC, The Company was
(National PGCIL, DVC incorporated on
High and CPRI 22.05.2009 for setting up
Power Test facility for short circuit
Laboratory testing of transformers and
Pvt. Ltd.) other electrical equipment.
The site for setting up the
laboratory is located at Bina
, MP. Construction activities
and award activities are in
progress.
NPEX NHPC, PFC The Company was formed
(National TCS, NHPC, to facilitate, promote,
Power BSE, IFCI, assist, regulate and manage
Exchange Meenakshi, nation wide trading of all
Ltd.) DPSC forms of electrical energies
and also to settle trades in
a transparent fair and open
manner.
In view of the change in
market scenario and the fact
that NTPCs objective of
joining NPEX has not been
met till date, your Company
has decided to exit from NPEX.
8.2 The details of other subsidiary companies are as under:
8.2.1 NTPC Electric Supply Company Limited, a wholly owned subsidiary
of NTPC was incorporated to foray into the business of distribution and
supply of electrical energy as a sequel to reforms initiated in the
power sector. The Company is implementing Rajiv Gandhi Gramin
Vidyutikaran Yojna projects on turnkey basis and undertakes turnkey
execution of sub-stations for utilities and also takes up project
management consultancy.
This subsidiary is carrying business of retail distribution of power in
various industrial parks developed by Kerala Industrial Infrastructure
Development Corporation (KINFRA), through its Joint Venture Company
namely KINESCO Power and Utilities Private Limited, formed with KINFRA.
The Company is making continuous efforts to take up the new business
activities in different areas including retail distribution of
electricity to bulk industrial consumers in up-coming mega industrial
areas/ SEZs.
8.2.2 NTPC Vidyut Vyapar Nigam Limited, a wholly owned subsidiary of
NTPC was incorporated to undertake sale and purchase of electric power
and to effectively utilize installed capacity and thus enable reduction
in the cost of power.
The Company is involved in power trading, sale of fly ash and
cenosphere.
It has been appointed as the nodal agency for cross border trading of
electricity with Bhutan and Bangladesh. It has signed a Power Purchase
Agreementwith Bangladesh Power Development Board for supply of 250MW
power for 25 years from various Central Generating Stations of NTPC.
The power is likely to commence from the end of July 2013.
The Company has also been designated as the Nodal Agency for purchase
of grid connected solar power upto 1000 MW as a part of Phase-I of
Jawahar Lai Nehru National SolarMission.
8.3 In order to strengthen its competitive advantage in power
generation business, the Company has diversified into the area of
manufacturing through the followingjointventures:
8.3.1 NTPC-BHEL Power Projects Pvt. Limited (NBPPL), ajoint venture of
your Company with BHEL was incorporated on April 28, 2008 for taking up
activities of engineering, procurement and construction of power plants
and manufacturing of equipments. The manufacturing plant of NBPPL is
being set up at Mannavaram, Tirupati in Andhra Pradesh for CHP and AHP.
The Company is executing EPC contracts for balance of plants packages
of Palatana Combined Cycle Power plant in Tripura and Namrup Combined
Cycle Power Plant in Assam for BHEL. It is also executing BOP including
Erection & Commissioning works of the entire plant at Monarchak,
Tripura for NEEPCO.
8.3.2 BF-NTPC Energy Systems Limited was incorporated with Bharat Forge
Limited on June 19, 2008 to manufacture castings, forgings, fittings
and high pressure piping required for power projects and other
industries.
The Company is setting up plant at Solapur for which technical
specifications for administrative buildings has been submitted by the
consultant.
8.3.3 Your Company has acquired 44.6% stake in Transformers and
Electricals Kerala Limited from Government of Kerala on June 19, 2009.
The Company deals in manufacturing and repair of Power Transformers.
Expansion of plant facilities was completed in January2013.
Please refer to "Management Discussion and Analysis", Annexure-I
included as a separate section to this report for further details of
subsidiary and joint venture companies of NTPC.
9. GLOBALISATION INITIATIVES
9.1 Trincomalee Power Company Limited, a 50 50 joint venture Company
between NTPC and Ceylon Electricity Board was incorporated on
26.09.2011 to undertake the development, construction, establishment,
operation and maintenance of a coal based electricity generating
station of 2X250 MW capacity at Trincomalee at Srilanka. Finalisation
of various agreements between JV Company and CEB is in progress.
9.2 Bangladesh - India Friendship Power Company Private Limited, a
50:50jointventure company between between NTPC and Bangladesh Power
Development Board (BPDB) was incorporated on 31.10.2012 for developing
a 2X660 MW Coal based power project at Khulna, Bangladesh. Feasibility
Report of the Khulna project has already been approved by NTPC.
9.3 your Company has prepared and submitted the DPR for Amochu
Hydro-electric project in Bhutan on consultancy basis. The DPR has been
cleared by CEA.
10. NTPC Consultancy Wing: As a result of the phenomenal success
achieved by your Company in executing its own power projects, many
utilities from India and abroad approach NTPC to benefit from the rich
experience gained by your Company. With this in view, NTPC formally
established a Consultancy Wing in 1989. Since then, this wing has been
receiving orders from domestic and international clients. Consultancy
Wing is now recognized as Consultant with several leading domestic and
international development and financial institutions and clients. It
offers services like Engineering Services, Operation & Maintenance
Management Services, Project Management Services, Contracts &
Procurement Management Services, Quality Management Services, Training
& Development Services etc.
Consultancy Wing has provided various services in domestic and
international markets in Gulf countries, Bangladesh, Srilanka and
Bhutan like preparation of Feasibility Report for Bangladesh Power
Development Board, Bangladesh and site selection, site specific studies
and preparation of Feasibility Report for the proposed 2X250 MW
Trincomalee Coal Power Project at Srilanka. This Wing is also
providing O&M Management Services to 2X120 MW Siddhirganj Peaking Power
Plant of Electricity Generation Company of Bangladesh under a World
Bank funded contract.
On the domestic front too, Consultancy Wing has been effectively
sharing its expertise with several power utilities.
11. FINANCING OF NEW PROJECTS
The capacity addition programs shall be financed with a debt to equity
ratio of 70:30. your directors believe that internal accruals of the
Company would be sufficient to finance the equity component for the new
projects. Given its low geared capital structure and strong credit
ratings, your Company is well positioned to raise the required
borrowings.
your Company is exploring domestic as well as international borrowing
options including overseas development assistance provided by bilateral
agencies to mobilize the debt required for the planned capacity
expansion program.
During the year 2012-13, term loan agreements of Rs. 6,970 crore were
entered into including loan agreement ofRs. 2,000 crore executed with
Union Bank of India and loan agreement ofRs. 600 crore executed with
J&K Bank Limited. The cumulative amount of domestic loans tied up till
March 31, 2013 was Rs. 59,699.35 crore (excluding undrawn loans
short-closed as per agreements).
your Company has also tied-up USD 750 million from international debt
markets through foreign currency notes and term loan.
The bond offering of the Company received strong investor response.
12. FIXED DEPOSITS
The cumulative deposits received by your Company from 98 depositors as
at March 31, 2013 stood atRs. 0.63 crore. Further, an amount ofRs.
0.16 crore has not been claimed on maturity by 9 depositors as on March
31, 2013.
your Company has discontinued the acceptance of fresh deposits and
renewals of deposits under NTPCs Public Deposit Scheme with effect
from 11.05.2013.
13. FUEL SECURITY
13.1 During the year, the supply position of coal and gas is given as
under:
13.1.1 Coal Supplies
your Company has Fuel Supply Agreements (FSA) in place for 20 years for
23,895 MW units commissioned till 31.03.2009. your Company has signed
in-principle FSAs for NTPC and its JVs with Coal India Limited for
14,010 MW on 17.07.2013. However, detailed FSAs are signed for 4,760 MW
NTPC Stations and 2,250 MW for NTPC JV stations. Further, detailed FSAs
will be signed for balance capacity 4,860 for NTPC stations and 2,140
MW for NTPC JV stations shortly.
your Company has obtained Letter of Assurance from Eastern Coalfields
Limited for supply of 0.4 MMT of coal for Bongaigaon (2X250MW).
The Company has also tied up coal supply through bilateral MOU for 0.3
MMT coal for Farakka with NEC and for 4.0 MMT with SCCL for Ramgundam
and Simhadri at a mutually negotiated price. The total coal supply
through bilateral MOU during 2012-13was 3.122 MMT.
13.1.2 Domestic Coal and Imported Coal
During 2012-13, your Company received 155 MMT of coal as against 141
MMT in 2011-12 marking an increase of 10%.
Total domestic coal supply during 2012-13 was 145.9 MMT as against 129
MMT during 2011-12.
The total coal supply from CIL was 132.6MMT and from SCCLwas 13.3 MMT.
During 2012-13, your Company imported 9.1 MMT ofcoal as against 12MMT
in 2011-12.
13.1.3 Sourcing of coal through E-auction
For supplementing the coal supply at a few critical stations i.e.
Sipat, Simhadri, Unchahar, Dadri and Mouda, your Company received 2.28
MMT ofcoal through E-auction.
13.2 Gas supplies
During 2012-13, your Company received 10.67 MMSCMD of gas and RLNG as
against 13.09 MMSCMD received during 2011-12. The gas off-take in
2012-13 includes 8.77 MMSCMD ofgas and 1.90 MMSCMD of RLNG. Gas offtake
was less due to less availability of generation schedule from the
beneficiary states.
Your Company has APM gas agreements up to the year 2021 and PMT gas
agreements up to the year 2019 for its gas stations. The long-term RLNG
supply agreement with GAIL is valid till 2019and the term sheet for
non-APM gas with GAIL is valid till 2016. Further, out of 4.46 MMSCMD
of KG-D6 gas allocated by Government of India for NCR gas stations,
viz. Anta, Auraiya, Dadri and Faridabad, 2.30 MMSCMD has already been
tied up. The tie-up of balance 2.16 MMSCMD KG D6 gas is under
discussions. However, the gas supplies from KG D6 fields have been
continuously decreasing. As per Empowered Group of Minister/ MOP&NG
directive to supply KG D6 gas as per sectoral priority basis, the
supplies to Power Sector (including NTPC stations) have reduced to Nil
from March 2013.
your Company has been making arrangements for tie-up and supply of spot
RLNG or Fallback RLNG from domestic suppliers on reasonable
endeavour basis based on requirement and availability from time to
time.
13.3 Development of Coal Mining projects
your Company was allocated six coal blocks by the Government of India
namely Pakri-Barwadih, Chatti- Bariatu, Kerandari, Talaipalli, Dulanga
and Chatti-Bariatu (South) with estimated geological reserves of over 3
billion tonnes and production of about 53 million tonnes per annum
(MTPA).
Ministry of Coal, through letter dated 23.01.2013, has withdrawn
de-allocation of Chatti-Bariatu, Kerendari and Chatti-Bariatu (South),
which were de-allocated on 14.06.2011 and these coal blocks have been
restored to NTPC.
Development activities are in advanced stage in all coal blocks except
in Chatti-Bariatu (South), located in dip side of Chatti-Bariatu, which
will be developed at the end of mining of Chatti-Bariatu. Mining Plans
have been approved by Ministry of Coal for all of these coal blocks,
except for Chatti-Bariatu (South). All notifications for mining area
land and Socio-Economic Surveys have been completed for all these coal
blocks.
Government of Jharkhand has approved the R&R plan and annuity scheme
for Pakri-Barwadih coal block in February 2013. Rehabilitation Action
Plan for Pakri-Barwadih, Chatti- Bariatu, Kerandari and Talaipalli coal
blocks have been approved by the Board of your Company and payment of
land compensation to project affected families is under progress.
Ministry of Environment & Forests, Govt, of India (MOEF) has accorded
environment clearance for Pakri-Barwadih, Chatti-Bariatu, Kerandari and
Talaipalli Coal blocks. In- principle environment clearance has been
received from MOEF for Dulanga coal block and final environment
clearance will be issued after Stage-I forest clearance.
MOEF had accorded Stage-I & Stage-ll forest clearances for
Pakri-Barwadih and Chatti-Bariatu coal blocks and Stage-I forest
clearance for Kerandari and Talaipalli coal blocks.
Forest clearance proposal for Dulanga coal block is under consideration
at MOEF. Construction of R&R Colony, CHP, Sub-Station, Railway Siding,
etc. have commenced in Pakri-Barwadih coal block. Mine Developer-cum-
Operator (MDO) has been appointed in Pakri-Barwadih, Chatti Bariatu and
Talaipalli coal blocks.
In addition to the above coal blocks, Ministry of Coal has conveyed
in-principle approval for allotment of more coal blocks to NTPC in lieu
of coal linkages for the following new projects:
(i) Kudgi (2,400MW)
(ii) Gajmara(1,600MW)
(iii) Barethi (3,960 MW)
(iv) Unchahar Stage-IV (500 MW)
Ministry of Coal has allotted fourcoal blocks on 03.07.2013 out of six
coal blocks applied for. The estimated geological reserves for these
blocks are estimated to be 2 Million tones as listed below:
(i) Bhalumuda, Chattisgarh (550 MT)
(ii) Banai, Chattisgarh (629 MT)
(iii) Chandrabila,Odisha(550MT)
(iv) Kudanali- Luburi, Odisha (266 MT)
Formal letter regarding allotment of coal blocks from Ministry of Coal
is likely to be received shortly.
13.4 Other initiatives for securing coal supply
To leverage the strength of established players in mining and related
areas, your Company has formed the following Joint Venture Companies:
Name of JV Purpose
Company Partners
CIL NTPC Urja Pvt. Coal India For undertaking the
Ltd.* Ltd. Development, O&M of Brahmini
and Chichro Patsimal coal
blocks and Integrated Power
Project(s).
NTPC SCCL Singareni For undertaking
Global Ventures Collieries development and O&M
Pvt. Ltd. Company of coal Blocks in India
Ltd. and abroad.
This Company has been
appointed as MDO for
Talaipalli Coal Block.
International Coal SAIL, CIL, For exploring various
Ventures Private RINL and opportunities in
Limited** NMDC Australia, Mozambique,
Canada, Indonesia and USA
for acquisition of stake in
coking coal and thermal
coal mines
*ln case of Brahmini and Chichro-Patsimal coal blocks, allocated to CIL
NTPC Urja Private Limited, Ministry of Coal had de-allocated these
blocks for delay in their development though there was no schedule
stipulated in the allotment letter. Your Company has taken up the
matter with the Ministry of Coal forwithdrawal ofde-allocation. **The
Board of NTPC has accorded approval to exit from International Coal
Ventures Private Limited. Approval of Ministry of Power permitting NTPC
to exit from ICVL has been received. ICVL is pursuing with Cabinet for
approval ofexitof NTPC out of it.
13.5 Exploration Activities
In Cambay exploration block allotted under NELP- VIII, held by NTPC as
operator with 100% participating interest, 3D Seismic Data Acquisition
has been completed and processing and interpretation of data is in
progress. Based on the results, exploratory drilling of wells shall be
planned.
In the other three blocks, in each ofwhich NTPC has 10% participating
interest and ONGC is operator, exploration activities are in progress.
14. BUSINESS EXCELLENCE: GLOBAL BENCHMARKING
In pursuit of actualizing our vision and with a view to achieve higher
levels of excellence, your Company has developed and adopted its own
NTPC Business Excellence Model on the lines of globally reputed
Excellence Models such as Malcom Baldrige Model, USA and EFQM Model of
Europe.
This model has been deployed at our Business Units (Stations) and we
carry out assessment of generating stations using this framework of
excellence.
The assessment process is aimed at identifying the areas for enhancing
stakeholder engagement, accelerating critical processes and developing
leadership potential. The outcomes of this model are organizational
strengths, opportunities for improvement, issues of concern and best
practices.
In the financial year 2012-13, the 3rd cycle of assessment was
completed. The stations ranking high on excellence level like Korba,
Talcher-Thermal and Faridabad were awarded by Honourable Union Minister
of State (l/c) for Power.
As a next step on the Journey of Excellence, your Company is
implementing Business Balanced Scorecard capturing proper matrices to
enhance overall strategic focus and speed.
Other TQM initiatives and techniques like Quality Circles, Professional
Circles, 5S, integrated management system (IMS) etc have been deployed
across the organization for continuous improvement. Our Quality Circle
teams of workmen have been consistently representing NTPC at national
and international Quality Circle conventions and bringing many laurels.
In the year 2012-13, Prayas Quality Circle team from Talcher-Thermal
bagged Gold award at the International Quality Control Circles
Convention held at Kualalumpur, Malaysia.
15. RENOVATION & MODERNISATION
15.1 Need for R&M:
In the present scenario of severe resource constraint, Renovation and
Modernization (R&M) of power plants is considered to be the best option
for bridging the gap between demand and supply of power as R&M schemes
are cost effective. It increases the capacity and ensures safe,
reliable and economic electricity production by replacement of
worn-out, deteriorated or obsolete electrical, mechanical,
instrumentation, controls and protection system by state-of-the-art
equipment.
To this end, renovations are being carried out for the purpose of life
extension of units, performance improvements, capacity enhancement,
availability improvement and improved environment compliance. Your
Company completed 761 out of 1,109 schemes of R&M, with a cumulative
expenditure ofRs. 3,150 crore upto 31st March, 2013.
In year 2012-13, investment approvals were accorded for life extension
of Stage-I units of Ramagundam and Kobra and thereafter, investment
approval for life extension of Singrauli Stage-I has also been
accorded.
With a view to comply with increasingly stringent environment norms
prescribed by State Pollution Control Boards, tendering is on for
Renovation and Retrofitting of Electrostatic Precipitator (ESP) in
stations like Singrauli -1 & II, Farakka -1, Unchahar-1, Talcher STPS
Stage-ll etc. With the same objective, implementation of renovatin of
ESP is already in progress at BadarpurTPS (2x210 MW).
Awards were placed during the year 2012-13 for Renovation of ESP in
Korba -l&ll, Rihand -1, Vindhyachal -l&ll, TalcherSTPS, BadarpurTPS and
Talcher TPS-II.
16. VIGILANCE
16.1 Vigilance Mechanism:
Your Company ensures transparency, objectivity and quality of decision
making in its operations and to monitor the same, the Company has a
Vigilance Department headed by Chief Vigilance Officer, a nominee of
Central Vigilance Commission. The CVO reports to the Central Vigilance
Commission.
The four units of Vigilance Department namely Corporate Vigilance Cell,
Departmental Proceeding Cell (DIPC), MIS Cell and Technical Cell (TC)
deal with various facets of vigilance mechanism. The Vigilance
Department submits its report to the Competent Authority and also to
the Board ofDirectors.
Your Company has made it mandatory for all the projects and stations to
award the packages above Rs. 15 lac through e-procurement. As per the
directive of DOPT/ MOP, the property returns of all the executives have
been published on NTPC Website.
16.2 Workshops and Vigilance Awareness Week Preventive Vigilance
Workshops are being conducted every year to sensitize employees about
DOs and DONTs in work areas and their role in preventing
corruption. During the Vigilance Awareness Week, a compendium of
circulars and a Handbook on Preventive Vigilance and Case Studies were
also issued.
16.3 Implementation of Integrity Pact
your Company is committed to have total transparency to its business
processes and as a step in this direction; it signed a Memorandum of
Understanding with Transparency International India in December, 2008.
The Integrity Pact is being implemented forall contracts having value
exceeding Rs. 10 crore. Two Independent External Monitors have been
nominated by the Central Vigilance Commission for all contracts with
value exceeding Rs. 100 crore.
16.4 Implementation of Fraud Prevention Policy
The Fraud Prevention Policy has been formulated and implemented in your
Company since 2006. The cases referred by the nodal officers are being
investigated immediately to avoid fraudulent behaviors as defined in
the Fraud Prevention Policy.
17. HUMAN RESOURCE MANAGEMENT
17.1 your Company takes pride in its highly motivated and competent
human resource that has contributed its best to bring the Company to
its present heights. The productivity of employees is demonstrated by
increase in generation per employee and consistent reduction of Man-MW
ratio year after year. The over-all Man-MW ratio for the year 2012-13
excluding JV/subsidiary capacity is 0.67 and 0.62 including capacity of
JV/ Subsidiary. Generation per employee was 9.72 MUs during the year
based on generation of NTPC stations.
The total employee strength of your Company stood at 25,484 as on
31.3.2013 against 25,511 as on 31.3.2012.
Fiscal 2013 Fiscal 2012
NTPC
Number of employees 23,865 24,011
Subsidiaries & Joint Ventures
Employees of NTPC 1,6191 1,500
in Subsidiaries & Joint Ventures
Total employees 25,484 25,511
The attrition rate of the NTPC executives (including Executive Trainees
and those posted in Subsidiaries and JVs) during the year was 1.46%.
17.2 Employee Relations
The Company takes pride in its greatest resource and asset, the
employees. The human resource has been the backbone of the Company, in
driving operational and financial performance. As a commitment towards
the Companys core values, Employees Participation in Management
was effectualized based on mutual respect, trust and a feeling of being
a progressive partner in growth and success. Communication meetings
with unions and associations, workshop on production and productivity,
etc were conducted at projects, regions and corporate level during
theyear.
Both, employees and management complemented each others efforts in
furthering the interest of the Company as well as its stakeholders,
signifying and highlighting over-all harmony and cordial employee
relations prevalent in the Company.
17.3 Safety and Security
NTPC recognizes and accepts its responsibility for establishing and
maintaining a safe working environment for all its employees and
associates. Occupational health and safety at workplace is one of the
prime concerns of NTPC Management and utmost importance is given to
provide safe working environment and inculcate safety awareness among
the employees. The Company takes all such steps which are reasonably
practicable to ensure best possible conditions of work. NTPC has a
3-tier structure foroccupational health and safety management, namely
at site at Regional Headquarters and at Corporate Centre.
All our stations are certified with OHSAS-18001/IS-18001. Regular
plant inspection and review with Head of Project, internal safety
audits by our own safety officers ofvarious sites and external safety
audits by reputed organizations are carried out at each site every
year. Recommendations of auditors are regularly reviewed and complied
with.
Cross Functional Safety task force for O&M and construction projects
are functional at all site to monitor unsafeworking conditions at site
and its rectification.
Height permit and height check list are implemented to ensure safety of
workers while working at height. Adequate numbers of qualified safety
officers are posted at all units as per statutory rules and provisions
to look after safety of people and property.
For strict compliance and enforcement of safety norms and practices,
safety clauses are included in General Conditions of Contract.
To mitigate on-site emergencies at all operating stations, effective
engineering controls are provided to indicate and handle emergency
situation. Detailed emergency plans have been developed and
responsibilities are assigned to each concerned to handle emergency
situations. Mock drills are conducted regularly to check healthiness of
the system.
Through our continuous efforts in safeguarding the employees, accidents
have come down as compared to last year. Many of our plants have been
awarded with prestigious safety awards by various Institutions and
Bodies like Ministry of Labour & Employment, Govt, of India, National
Safety Council and Institution of Engineers in recognition of
implementing innovative safety procedures and practices.
Concrete steps are being taken for upgrading surveillance systems at
all of our projects/ stations by installing state-of- the-art security
systems. Security and Coordination Group interact with MHA, IB and
CISFas well as the State/ District level authorities to augment the
security preparedness in our establishment/ power installations.
17.4 Training and Development
In line with its objective of being a learning organization, your
Company has continuously promoted training and development of not only
its own employees but also other professionals of the power sector. In
this effort, your Company has endeavored to continuously upgrade the
training infrastructure of Power Management Institute (PMI) at the
corporate level as well as the Employee Development Centers at the
sites. The training imparted is in tune with emerging needs in diverse
areas like nuclear power, coal-mining, hydro-power, super-critical
technology, renewable energy etc. and for this purpose some new
programmers are included in the annual calendar every year. Apart from
this, the usual programs include topics on management, power station
operation & maintenance, project construction, erection and
commissioning and information technology.
Under the on-going scheme of strengthening the Industrial Training
Institutes (ITIs) across the country, your Company has taken the
initiative of adopting ITIs near its power generating stations and a
total of 17 ITIs have been adopted under this scheme till 31.03.2012.
This activity is being coordinated through PMI which is also
facilitating the construction of nine new ITIs where new projects are
coming up. Through this initiative, PMI has created 1,533 extra seats
by way of starting new trades/ units in these ITIs.
During 2012-13, your Company organized a number of training programmes
in power and energy related areas.
PMI conducted 397 training programmes during 2012-13 with a participant
base of 8,938. The training mandays clocked were 47,935.
PMI, for the first time, conducted an all-women training programme
titled Lets Cherish Womanhood on the issues and challenges of
women executives in managing home and office together.
It also took the initiative of taking training programmes to the
doorstep of the site employees.
In collaboration with CC-IT group and CenPEEP department, "Efficiency
Overview and Perform Achieve and Trade (PAT) Legislation" programme
was launched through Web Conferencing.
In order to promote holistic well-being of employees and their
families, Pranic Healing was started through Holistic Wellness
Foundation under the aegis of Snehal, a Healing and Creativity Centre
at PMI.
18. SUSTAINABLE DEVELOPMENT
Sustainability is an opportunity for business to improve its
profitability, competitiveness and market share without compromising
the ability of future generations to meet their own needs. The
sustainability agenda of your Company addresses all aspects related to
sustainable development and promote environmental management, social
responsibility and economic performance (triple bottom line approach).
Your Company is a member of "TERI - Business Council for Sustainable
Development - India (TERI-BCSD)", the Indian partner of the WBCSD
(World Business Council for Sustainable Development), Geneva, and also
a member of United Nations Global Compact.
SEBI, through its Circular CIR/CFD/DIL/8/2012 dated August 13, 2012,
mandated the top 100 listed entities based on market capitalization at
BSE and NSE, to include Business Responsibility Report as a part of the
Annual Report describing the initiatives taken by the Company from
Environmental, Social and Governance perspective.
Accordingly, a Business Responsibility Report is attached as Annex-X
and forms part of the Annual Report.
Initiatives by the Company
your Company has developed a Policy on Sustainable Development in
accordance with which a sustainable development plan was prepared for
the year 2012-13. Major activities carried out under this plan
included plantation of more than 2 lac saplings in and around NTPC
plants, reduction of particulate matter emissions at two stations
through flue gas conditioning, installation of flue gas conditioning
system at one more station and installation of bio-methane plants to
treat biodegradable waste and generate bio-gas for use in guest house /
canteen kitchens. A total expenditure of Rs. 10.18 crore was incurred
on these Sustainable Development Projects during the Financial
year2012-13.
During the year, your Company has published its "Sustainability
Report 2011-12" in line with the internationally accepted "Global
Reporting Initiative (GRI)" Guidelines and the report has been duly
assured by an independent external assurance provider as per
international standard.
In its endeavor to achieve the goals of Sustainable Development, your
Company is addressing the issues through multi-pronged approach as per
the details given below:
18.1 Inclusive Growth - Initiatives for Social Growth
18.1.1 Corporate Social Responsibility:
Your Company has always discharged its social responsibility as a part
of its Corporate Governance philosophy. It follows the global practice
of addressing CSR issues in an integrated multi stake-holder approach
covering the environmental and social aspects.
With a view to address the domains of socio-economic issues at national
level, it has revised its Corporate Social Responsibility - Community
Development (CD) Policy in line with the Guidelines issued by
Department of Public Enterprises, Govt, of India.
your Company, being a member of Global Compact Network, India, confirms
its involvement in various CSR activities in line with 10 Global
Compact principles and shares its experience with the representatives
of the world through "Communication on Progress". It submits its
Communication on Progress (COP) to UN Global Compact on regular basis.
A report on progress made in this area is enclosed at Annex- VIII to
this Report.
Expenditure incurred towards CSR Activities:
A total expenditure of Rs. 69.24 crore was incurred towards Corporate
Social Responsibility expenses during the Financial year 2012-13, which
was 0.75% (against MOU target of 0.5%) of the net profit after tax of
the previous year.
In line with revised guidelines on CSR and Sustainability issued by
DPE, your Company has enhanced allocation for CSR and Sustainable
Development activities to 1% of net profit after tax of previous year
with effect from financial year 2013-14.
Awards:
your Company received FICCI Appreciation Plaque for 2011-12, Golden
Peacock Award for CSR, 2012 and Greentech Award for CSR 2012.
18.1.2 NTPC Foundation
NTPC Foundation is engaged in serving and empowering the physically
challenged and economically weaker sections of the society.
Initiatives undertaken by the Company are covered under Annex-VII to
this Report.
18.1.3 Distributed Generation Power Projects
your Company has signed MoU with Swiss Agency for Development and
Cooperation for planning and implementing Renewable Energy and
Distribution Generation projects. The main focus is on technologies
like bio-mass gasification including two stage gasifier, small hydro
and solar energy and sustainability of DG projects.
18.1.4 Rehabilitation & Resettlement (R&R)
your Company is committed to help the people affected by its projects
and has been making all its efforts to improve the socio-economic
status of Project Affected Persons (PAPs). In order to meet its social
objectives, your Company is focusing on effective R&R of PAPs and
undertaking community development activities in and around the
projects.
Land availability for bulk tendered projects for which award was placed
during the year was ensured through proactive redressal of R&R issues.
R&R activities were implemented at new Greenfield/ brownfield projects
after finalization in consultation and participation of the
stakeholders at Kudgi, Lara, Tanda, Gadarwara, Khargone, Barethi, Dadri
and Coal Mining projects. At other thermal, hydro and coal mining
projects, like Barh, Koldam, Korba, Vindhyachal, Mouda, Solapur,
Bongaigaon, Tapovan-Vishnugad, Pakri-Barwadih, Chatti- Bariatu,
Kerandari and Talipalli projects, R&R activities continued throughout
theyear.
Socio-economic Survey was completed for Darlipalli, Barethi, Lara,
Gadarwara, Khargone, Chatti-Bariatu (South) and Dhuvaran Projects and
is in progress at Bilhaur Projects.
In the area of health, your Company is providing financial assistance
for renovation and refurbishment of "Sundargarh District Hospital
in Odisha. Capacity building/ skill upgradation and training activities
including those in construction trades were facilitated and commitment
for the part contributions towards construction of Engineering Colleges
at Raipur and Raigarh, Chattisgarh was made during the year.
18.2 Environment Management - Initiatives for preserving Environment
Vision Statement on Environment Management:
"Going Higher on Generation, lowering GHG intensity"
your Company is pursuing the objective of environment protection as one
of its prime responsibilities and focuses its efforts to mitigate the
impact of its operation on surrounding environment. Around 12-15% of
the project cost is spent on various environment protection equipments.
To meet the environmental challenges of 21st century and beyond, the
Company has adopted sound environment management practices and advanced
environment protection system to minimize impact of power generation on
environment.
your Company has adopted advanced and high efficiency technologies such
as super critical boilers for the upcoming green field projects. The
Company is also designing its up-coming plants to use beneficiated coal
and imported low ash coal. The above measures are aimed not only to
achieve reduction in pollution and minimize use of precious natural
resources but also to lead to reduction of C02 emissions per unit of
generation and thereby deal with the global warming.
18.2.1 Control of Air Emissions: High efficiency Electro-static
Precipitators (ESPs) with efficiency of the order of 99.9% and above,
with advanced control systems have been provided in all coal based
stations to keep Suspended Particulate Matter (SPM) below permissible
limits. All up-coming new plants are being provided with ESPs designed
in such a manner that would cater to the anticipated future norms.
Performance enhancement of ESPs operating over the years is being
carried out by augmentation of ESPs fields, retrofit of advanced ESP
controllers and adoption of sound O&M practices. Flue Gas Conditioning
system has also been provided at our old units which are helping in
reduction of SPM emissions below statutory limits. Also, massive R&M
program is being undertaken to upgrade air pollution equipments to
reduce SPM emissions.
NOx control in plants is achieved by controlling its production by
adopting best combustion practices. Since tall stacks are provided in
coal stations, SOx and NOx emitted through stacks is widely dispersed
and diluted. In gas based stations, NOx control systems (hybrid burners
or wet DeNOx) have been provided for good combustion practices.
Fugitive emission from ash pond is controlled by maintaining water
cover, tree plantation on abandoned ash ponds, water spray, earth cover
in inactive lagoons. Providing dust suppression and extraction system
in CHP area has further added to reduction in fugitive dust in the
vicinity of power stations.
18.2.2 Control of water pollution and promotion of water conservation:
Various water conservation measures have been taken up to reduce water
consumption in power generation by using 3Rs (Reduce, Recycle & Reuse)
as guiding principle.
Provision of advanced treatment facilities such as Liquid Waste
Treatment Plants (LWTP), Recycling Systems for Ash Pond Effluent called
Ash Water Recirculation System (AWRS) and closed cycle condenser
cooling water systems with higher Cycle of Concentration (COC), rain
water harvesting wherever possible and reuse of treated sewage effluent
for horticulture purposes are some ofthe measures implemented in most
of the stations.
18.2.3 Ash Management: Ash dykes in the stations have been engineered
to ensure that all safety and environmental issues are addressed at
design stage itself.
Multi-lagoon ash ponds with provision of over-flow lagoons and ash pipe
garlanding arrangement for change over of ash slurry feed points have
been provided for effective settlement of ash particles.
Water sprinklers have been provided in the ash pond areas for spraying
water in dried up portion of lagoons for control of fugitive dust.
Efforts are made to maximize utilization of ash through use of Dry Ash
Extraction System (DAES).
Unutilized ash is sent to ash pond by making ash slurry. The decanted
water in Ash Pond is recycled back with the help of Ash Water
Recirculation System (AWRS) for making ash slurry again, leading to
reduction in water consumption.
18.2.4 Automation of environment measurement system:
67 continuous ambient air quality monitoring stations (AAQMS) have been
installed to capture the real time data and access thereof viz., PM 10,
PM 2.5, SOx, NOx and access has been provided to Central Pollution
Control Board. Additional ozone analyzers for ambient air are also
being provided at the stations. Continuous Emission Monitoring Systems
(CEMS) to monitor SOx, NOx and C02 in all its units on real time basis
are also planned for installation in near future
18.2.5 Environmental Studies: Your Company has taken a number of
studies for better environment protection and to develop strong
scientific database.
18.2.6 Tree Plantation: Your Company has planted more than 19 million
trees till date in and around its projects as a measure of massive
afforestation.
The afforestation has not only contributed to the aesthetics but
also helped in carbon sequestration by serving as a sink for C02
released from the stations and thereby protecting the quality of
ecology and environment in and around the projects.
18.2.7 ISO 14001 & OHSAS 18001 Certification: NTPCs stations have
been certified with ISO 14001 and OHSAS 18001 by reputed National and
International certifying agencies as a result ofsound systems and
practices.
18.3 Clean Development Mechanism (CDM)
Your Company is undertaking climate change issues proactively.
The methodology for super critical technology prepared by NTPC viz.
"consolidated base line and monitoring methodology for new grid
connected fossil fuel fired power plants using less GHG intensive
technology" has been approved by "United Nations Frame Work
Convention on Climate Change (UNFCCC)" under Approved Consolidated
Methodology13(ACM0013).
Two of its solar projects namely 5MW each solar PV project at Dadri and
Port Blair, Andaman & Nicobar had already been submitted to UNFCCC for
CDM registration. Another two projects namely 5MW solar PV project at
Faridabad and 8MW Small Hydro Power Project at Singrauli are in
advanced stage of validation for submission to UNFCCC for CDM
registration.
Further, Tapovan Vishnughad HEPP (4X130 MW), North Karanpura STPP
(3X660 MW), 15 MW Solar (Thermal) project at Anta, energy efficiency
measures at Singrauli STPP and energy efficiency measures at Dadri have
already obtained Host Country Approval from National CDM Authority.
18.4 Ash Utilisation
During the year 2012-13, 56.29 million tonnes of ash was generated and
30.97 million tonnes of ash had been utilized for various productive
purposes. This was 55.02% of the total ash generated.
Important areas of ash utilization are - cement & asbestos industry,
ready mix concrete plants (RMC), road embankment, mine filling, ash
dyke raising & land development. 10.74 million tonnes of ash has been
issued to cement, RMC and other industries in the financial year
2012-13.
Pond ash from all stations of NTPC is being issued free of cost to all
users. The funds collected from sale of ash is being maintained in a
separate account by NTPC Vidyut Vyapar Nigam Limited, a wholly-owned
subsidiary company of NTPC and the same is being utilized for
development of infrastructure facilities, promotion and facilitation
activities to enhance ash utilization.
The quantity of ash produced, ash utilized and percentage of such
utilization during 2012-13 from NTPC Stations is at Annex-IX.
18.5 CenPEEP - towards enhancing efficiency and protecting Environment
Center for Power Efficiency and Environmental Protection (CenPEEP),
was set up to take initiatives to address climate change issues. It is
a symbol of NTPCs voluntary proactive approach towards Greenhouse
Gas (GHG) reduction. The Centre has been entrusted with some of the
strategic initiatives such as improvement in efficiency and
reliability.
Thrust has been given to efficiency improvement through customized
Energy Efficiency Management System (EEMS) and reliability through
Knowledge Based Maintenance. The activities include use of advanced
analytical tools for efficiency gap analysis, combustion optimization,
improvement in performance of condenser, cooling tower, coal mills and
air-preheater, maximization of condition based maintenance through
systematic Predictive Maintenance Program, reliability improvement
strategies by failure mode analysis through Reliability Centered
Maintenance (RCM) as a program.
Joint project has also been taken up with NETRA for modification of
flue gas duct internals based on computational fluid dynamic (CFD)
analysis.
Perform, Achieve&Trade(PAT) Schemeof Government of India under
Prime Ministers National Mission on Enhanced Energy Efficiency
(NMEEE) is being implemented in NTPC with CenPEEP as the coordinator.
All 22 stations of NTPC are Designated Consumers in this program.
The cooperation with USAID was extended under Indo- US bilateral
program Partnership to Advance Clean Energy - Deployment (PACE-D).
Under this program, study on development of best practices manual for
super critical units has been taken up with support of US experts.
Assistance is also provided to two State utilities from Haryana and
Maharashtra for efficiency improvement under this program. The Heat
Rate Improvement Guidelines for Indian Utilities which are prepared
by CenPEEP, have been helpful in the program.
CenPEEP has estimated cumulative C02 emission avoided in NTPC since
theyear 1996 as 34.8 million tones.
CenPEEP had been conferred with The Times of India Earth Care Award
2012 in recognition of its efforts and achievements for GHG reduction
in utilities, contributing to combat climate changes across the SAARC
countries.
18.6.1 RURAL ELECTRIFICATION
NTPC, through its wholly owned subsidiary NESCL, is carrying out the
implementation of rural electrification work in 5 States namely Madhya
Pradesh, Chhattisgarh, Odisha, Jharkhand and West Bengal under
Government of India, flagship program, Rajiv Gandhi Grameen
Vidyutikaran Yojana (RGGW). NESCL has been entrusted with
electrification of total 30 projects in 29 districts in above States
with a total scope of 14,729 Un-electrified/ De-electrified (UE/DE)
villages, 20,555 partially electrified (PE) villages and electricity
connection to 26.42 lakhs below poverty line (BPL) households.
Physical work of 15 projects has been completed till 31st March 2013
and balance projects are expected to be completed in FY 2013-14.
In the FY 2012-13, 22 un-electrified/de-electrified and 2,820 partially
electrified villages have been electrified and electricity connections
provided to 25,204 BPL households during the F/12-13.
Cumulatively, electrification of 14,719 un-electrified /de- electrified
villages and 17,679 partially electrified villages has been completed
and electricity connections has been provided to 26.08 lakhs BPL
households by Mar2013.
18.6.2 5 KM Scheme around NTPC power plants
MOP, Government of India notified in Apr2010 a scheme for provision
of supply of electricity in 5 Km area around the Central Power Plants.
The scheme covers the existing and upcoming Power Plants of CPSUs.
Under the scheme, total 29 projects were initially identified for
implementation around NTPC power plants. NTPC has awarded eight
projects where work is in progress. Subsequently, MoP has withdrawn
the above scheme for future projects in March 2013. The ongoing
projects are expected to be completed during the financial year
2013-14.
19. IMPLEMENTATION OF OFFICIAL LANGUAGE
Your Company has made vigorous efforts for propagation and effective
implementation of the Official Language Policy of the Government of
India. Several Hindi workshops, meetings, conferences and competitions
were conducted at projects, regional offices and corporate centre
during the year, in which renowned Hindi Scholars inspired the
participants to use Hindi in day-to-day official works.
The progress and usage of Rajbhasha Hindi was inspected in the stations
and proper suggestions for compliance were given to the Heads of the
Offices. The Sub-committee of Parliament on Official Language
appreciated the efforts for Rajbhasha implementation in our projects.
Our half-yearly Hindi Magazine Vidyut Swar also received Rajbhasha
Award from Ministry of Home Affairs, Government of India.
All office orders, formats and circulars were issued in Hindi as well.
Important advertisements and house journals were released in bilingual
form- in Hindi and in English. Your Companys website also has a
facility of operating in bilingual form- in Hindi aswell as in English.
20. NETRA - R&D Mission in Power Sector
NTPC Energy Technology Research Alliance (NETRA), the research &
development wing of NTPC focuses on areas of efficiency & availability
improvement;cost reduction,- renewable and alternative energy
source;climate change & environment protection,-and providing
scientific support to utilities.
Research Advisory Council (RAC) of NETRA comprising of eminent
scientists and experts from India and abroad is in place to steer
high-end research. Scientific Advisory Council (SAC) with Regional
Executive Directors as its members provides directions for improving
plant performance & reducing cost of generation. The meetings for both
these Advisory Councils were held periodically where members
deliberated on various project activities and gave guidelines for
implementation of suggestions.
In order to provide maximum possible benefit to the stations, projects
like Artificial Intelligence based plant performance advisory system,
expert system for real time monitorins of steam cycle chemistry,
computational fluid dynamics (CFD) modeling based plant improvement for
increasing efficiency and reducing auxiliary power consumption have
been implemented at stations. Many products & processes developed by
NETRA have been tested successfully at stations like robotic inspection
devices,-PDC-RVM based expert system for transformer condition
monitoring, C02 utilization through mineralization of fly ash etc.
One Patent (01) has been granted to NETRA and another Twenty one (21)
patent applications have been filed and these are in advanced stage of
processing. NETRA continued to provide scientific support to all NTPC
stations as well as many other utilities stations to improve their
performance.
Some state-of-the art facilities for condition monitoring and
diagnostic equipments like Scanning Electron Microscope with EDAX,
Sixteen Channel Vibration Analyser, Video image scope system with
dimensional measurement facility, etc have been inducted.
The Phase-ll infrastructure is being created for new laboratories and
facilities like pilot plant bay, 150 KWp Solar PV rooftop systems and
an auditorium with seating capacityof400 persons.
NETRA is actively involved in many National activities related to R&D
such as developing DPE guidelines on R&D, contribution to Sectoral
Innovation Council for Power. NETRA has also taken research Projects
under "National Clean Energy Fund" a) Solar Thermal Hybrid with
Fossil Fired Power Plant b) Flue Gas based Aqua Ammonia Power Cycle.
NETRA has also organized Round Table Meeting on carbon capture &
storage (CCS) for formulating the Policy under the aegis of MoP.
NETRA has undertaken collaborative projects with different institutes
like CPRI, Bangalore in the area of coal combustion characterization,
non destructive testing, fly ash utilization and with Jadavpur
University for Development of polarisation depolarisation current
analysis - Recovery voltage measurement (PDC-RVM) system etc.
NETRA laboratories have been reaccredited as per ISO 17025:2005. NETRA
is also certified by Central Boiler Board for RLA agencies.
21. RIGHT TO INFORMATION
Your Company has implemented Right to Information Act, 2005 in order to
provide information to citizens and to maintain accountability and
transparency. The Company has put RTI manual on website for access to
all citizens of India and has designated a Central Public Information
Officer (CPIO), an Appellate Authority and APIOs at all sites and
offices of NTPC.
During 2012-13, 1,181 applications were received underthe RTI Act, out
ofwhich 1,158 applicationswere replied to.
Five workshops on RTI Act have been conducted at Corporate Centre,
Regional Headquarters and sites to share and deliberate on latest
notifications, amendments and other issues for smooth implementation.
This includes an interactive session with the delegates from the
Institute of Secretarial Training & Management, DoPT to share
experience on implementation of RTI Act in the Company.
22. USING INFORMATION AND COMMUNICATION TECHNOLOGY FOR PRODUCTIVITY
ENHANCEMENT
NTPC has implemented an Enterprise Resource Planning (ERP) package
covering maximum possible processes across the organization including
subsidiaries. In addition to the core business processes and Employee
Self Service (ESS) functionality, the ERP solution also includes
e-procurement, Knowledge Management, Business Intelligence, Document
Management, Workflow etc. The ERP system is fully managed through
in-house expertise from process groups and technical groups. Parallely,
in- house solutions have been developed to take care of the non-ERP
areas.
ERP has its main data center at Noida. There is a disaster recovery
center at Hyderabad as a full back up for real time changeover in case
ofany emergency.
Video conferencing (VC) facility is widely used for deliberations among
locations. The facility has also been augmented to hold VC in secured
manner, with external agencies also.
In order to improve upon efficiency and bringing transparency in
procurement process in NTPC, e-procurement process using SRM module of
ERP is widely used.
Athird party audit and review of ERP solution implemented at NTPC has
been carried out that included review of business process controls,
configuration settings, access controls and review of roles and
authorization. The critical remediation points suggested by the
external auditor agency have been implemented.
Various other applications have been developed to take care of RTI,
Parliament Questions Management, legal system, transit camp booking
requirement etc.
NTPC tender website www.ntpctender.com is being regularly used for
publishing all open tenders on the Internet. Additional Website
www.ntpcexemployees. co.in for facilitating superannuated employees
has also been hosted.
The Information Technology department at Corporate Center Noida has
been awarded certificate in recognition of the organizations Quality
Management System which complies with ISO 9001:2008 for "Providing IT
Enabled Services".
23. NTPC GROUP: SUBSIDIARIES AND JOINT VENTURES
Your Company has currently 5 subsidiary Companies and 21 joint venture
Companies for undertaking specific business activities.
The names of Subsidiaries and Joint Venture Companies and the
percentage of your Companys shareholding in these Companies as on
31.03.2013are as follows:
The performance of these Companies as well as the consolidated
financial statements are briefly discussed in the Management Discussion
& Analysis section. The financial statements of subsidiary companies
along with the respective Directors Report are placed elsewhere in
this Annual Report.
24. INFORMATION AS PER COMPANIES (PARTICULARS OF EMPLOYEES) RULES,
1975
Ministry of Corporate Affairs, through Notification G.S.R. 289(E)
dated 31st March 2011 has amended the Companies (Particulars of
Employees) Rules, 1975 by providing that the information required under
Section 217(2A) of the Companies Act, 1956 read with the Companies
(Particulars of Employees) Rules, 1975 shall be required to be provided
for those employees whose remuneration is more than Rs. 60 lac per
financial year, if employed for whole of the year or more than Rs. 5
lac per month, if employed for part of the year. The said Notification
further provides that in case of Government Companies such particulars
are not required to be included in the Boards Report.
As your Company is a Government Company, such particulars have not been
included as part of the Directors Report. Any member interested in
obtaining such particulars may write to the Company Secretary at the
Registered Office of the Company or download them from the website at
www. ntpc.co.in. Such particulars shall also be made available to the
shareholders on a specific request made by them during the course of
Annual General Meeting to be held on 17.09.2013.
25. STATUTORY AUDITORS
The Statutory Auditors of your Company are appointed by the Comptroller
& Auditor General of India. M/s O.P. Bagla & Co., K.K. Soni & Co., PKF
Sridhar & Santhanam, V. Sankar Aiyar & Co., Ramesh C. Agrawal & Co. and
A.R. & Co. were appointed as Joint Statutory Auditors for the financial
year 2012-13.
26. MANAGEMENT COMMENTS ON STATUTORY AUDITORS1 REPORT
The Statutory Auditors of the Company have given an unqualified report
on the accounts of the Company for the financial year 2012-13. However,
they have drawn attention towards Note-33 to the financial statements
in respect of the accounting of fuel on GCV based pricing system.
The issue has been adequately explained in Note 33 referred to by the
Auditors.
27. REVIEW OF ACCOUNTS BY COMPTROLLER & AUDITOR GENERAL OF INDIA
You would be pleased to know that for the fourth year in a row your
organization has received NIL Comments on the Financial Statements
for the year from the Comptroller & Auditor General of India (C&AG).
As advised by the Office of the C&AG, the comments of C&AG for the year
2012-13 are being placed with the report of Statutory Auditors of your
Company elsewhere in this Annual Report.
28. COST AUDIT
As prescribed under the Cost Accounting Records (Electricity Industry)
Rules, 2001 applicable for financial years 2011-12 and 2012-13, the
Cost Accounting records are being maintained by all stations of the
Company. The particulars of Cost Auditors as required under Section
233(B) of the Companies Act, 1956 read with General Circular No.
15/2011 dated 11.04.2011 issued by Ministry of Corporate Affairs are
given below:
The firms of Cost Accountants appointed for the financial year 2011-12
are (i) M/s Dhananjay V. Joshi & Associates, Pune, Maharashtra, (ii)
M/s Jugal K. Puri & Associates, Gurgaon, Haryana, (iii) M/s Mandal
Mukherjee Datta & Associates, Kolkata, West Bengal, (iv) M/s S.C.
Mohanty & Associates, Bhubhaneshwer, Orissa, (v) M/s V.P. Gupta & Co.,
Noida, Uttar Pradesh and (vi) M/s Chandra Wadhwa & Co., Daryasanj,
Delhi.
The firms of Cost Accountants appointed for the financial year 2012-13
are (i) M/s Dhananjay V. Joshi & Associates, Pune, Maharashtra, (ii)
M/s Jugal K. Puri & Associates, Gursaon, Haryana, (iii) M/s Mandal
Mukherjee Datta & Associates, Kolkata, West Bengal, (iv) M/s S.C.
Mohanty & Associates, Bhubhaneshwer, Orissa, (v) M/s V.P. Gupta & Co.,
Noida, Uttar Pradesh and (vi) M/s Chandra Wadhwa & Co., Daryasanj,
Delhi.
The due date for filing consolidated Cost Audit Report in XBRL format
for the financial year ended March 31,2012 was September 27, 2012 which
was subsequently extended upto 28th February 2013 through General
Circular No. 2/2013 dated 31.01.2013 issued by Ministry of Corporate
Affairs and the consolidated Cost Audit Report for your Company was
filed with the Central Government on15.01.2013.
The due date for filing consolidated Cost Audit Report for the
financial year ended March 31, 2013 is September 27, 2013 and the
consolidated Cost Audit Report as prescribed for the financial year
2012-13 shall be filed within the prescribed time period.
29. BOARD OF DIRECTORS
Dr. Alwyn Didar Singh has joined as Non-Official Part-time Director
ofthe Companywith effect from August 23, 2012. Dr. M. Govinda Rao has
ceased to be the Non-Official Part- time Directorwith effect from
February4, 2013.
Shri U.P. Pani has taken over as Director (Human Resources) with effect
from March 1, 2013. Shri S.P. Singh has ceased to be the Director
(Human Resources) of your Company with effect from February 28, 2013 on
attaining the age of superannuation.
Shri Rakesh Jain has ceased to the Director of your Company w.e.f. July
9,2013 on ceasing to be the official of Ministry of Power.
Shri Prashant Mehta has joined as Non-Official Part-time Director ofthe
Companywith effect from July 30, 2013.
The Board wishes to place on record its deep appreciation for the
valuable services rendered by Dr. M. Govinda Rao, Shri S.P. Singh and
Shri Rakesh Jain during their association with the Company.
In accordance with the provisions of Article 41(iii) of the Articles of
Association of the Company four directors - Shri A.K. Singhal, Shri
N.N. Misra, Shri S.B. Ghosh Dastidar and Shri R.S. Sahoo shall retire
by rotation at the Annual General Meeting ofyour Company and, being
eligible, offer themselves for re-appointment.
30. DIRECTORS RESPONSIBILITY STATEMENT
As required under Section 217(2AA) of the Companies Act, 1956, your
Directors confirm that:
1. in the preparation ofthe annual accounts, the applicable accounting
standards had been followed along with proper explanation relating to
material departures,-
2. the Directors had selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the company at the end of the financial year 2012-13 and of the
profit of the company for that period;
3. the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets ofthe
company and for preventing and detecting fraud and other
irregularities,- and
4. the Directors had prepared the Annual Accounts on a going concern
basis.
31. INFORMATION PURSUANT TO STATUTORY AND OTHER REQUIREMENTS
Information required to be furnished as per the Companies Act, 1956,
Listing Agreement with Stock Exchanges, Government guidelines etc. is
annexed to this report as below:
Particulars Annexure
Management Discussion &Analysis I
Report on Corporate Governance II
Information on conservation of energy, III
technology absorption and foreign exchange
earnings and outgo
Statement pursuant to Section 212 of the IV
Companies Act, 1956 relating to subsidiary
companies
Statistical data of the grievance cases V
Statistical information on persons belonging to VI
Scheduled Caste / Scheduled Tribe categories
Information on Physically Challenged persons VII
UNGC - Communications on progress VIII
ProiectWiseAsh Utilisation IX
Business Responsibility Report for the year X
2012-13
32. ACKNOWLEDGEMENT
Your Directors acknowledge with deep sense of appreciation, the
co-operation received from the Government of India, particularly the
Prime Ministers Office, Ministry of Power, Ministry of Finance,
Ministry of Environment & Forests, Ministry of Coal, Ministry of
Petroleum & Natural Gas, Ministry of Railways, the Planning Commission,
Department of Public Enterprises, Central Electricity Authority,
Central Electricity Regulatory Commission, Appellate Tribunal for
Electricity, State Governments, Regional Power Committees, State
Electricity Boards and Office ofthe Attorney General of India. Your
Directors also convey their gratitude to the shareholders, various
international and Indian Banks and Financial Institutions for the
confidence reposed by them in the Company.
The Board also appreciates the contribution of contractors, vendors and
consultants in the implementation of various projects of the Company.
We also acknowledge the constructive suggestions received from
Government and Statutory Auditors.
We wish to place on record our appreciation for the untiring efforts
and contributions made by the employees at all levels to ensure that
the Company continues to grow and excel.
For and on behalf of the Board of Directors
Place: New Delhi (Dr. Arup Roy Choudhury)
Date: 2nd August 2013 Chairman & Managing Director
Mar 31, 2012
The Directors are pleased to present the 36th Annual Report and MW
during 2010-11. With this addition, the Company surpassed the audited
financial statements for the year ended March 31, the 11th plan target
of 9,220 MW by achieving a total capacity 2012. addition of 9,610 MW.
Your Company has added capacity of 2,820 MW during the year After
commissioning of 2,160 MW capacity since April 2012, 2011-12 surpassing
its earlier best capacity addition of 2,490 NTPC has now become a
39,174 MW Company.
1. FINANCIAL RESULTS
Revenue 2011-12 2010-11
Rs. Crore US $ Mn* Rs. Crore US $ Mn*
Net Revenue from
Operations (including
Energy Sales, 62,052.23 12,018.64 55,062.65 10,664.86
Consultancy, Energy
consumed internally)
Other Income 2,778.42 538.14 2,344.65 454.12
Total Revenue 64,830.65 12,556.78 57,407.30 11,118.98
Expenses
Fuel 41,635.46 8,064.20 35,373.78 6,851.40
Employee Benefits
Expense 3,090.48 598.58 2,789.71 540.33
Finance Costs 1,711.64 331.52 1,420.96 275.22
Depreciation and
amortization
expense 2,791.70 540.71 2,48569 481.44
Generation,
administration &
other expenses 3,588.79 695.10 4,926.28 954.15
Prior Period
items (net) (313.58) (60.74) (1,638.72) (317.40)
Total Expenses 52,504.49 10,169.37 45,357.70 8,785.14
Profit before Tax 12,326.16 2,387.41 12,049.60 2,333.84
Tax Expense 3,102.43 600.90 2,947.01 570.79
Profit for the year 9,223.73 1,786.51 9,102.59 1,763.05
Appropriations:
Transfer to bond
redemption reserve 482.38 93.43 494.94 95.86
Transfer to general
reserve 5,200.00 1,007.17 5,200.00 1,007.17
Transfer to
capital reserve 0.44 0.09 6.87 1.33
Interim dividend 2,885.92 558.96 2,473.63 479.11
Proposed dividend 412.27 79.85 659.63 127.76
Tax on dividend 527.92 102.25 514.77 99.70
*1US $= Rs. 51.63 as on March 31, 2012
2. FINANCIAL PERFORMANCE
2.1 Revenue
The total revenue of your Company for the year increased by 12.93% to Rs.
64,830.65 crore from Rs. 57,407.30 crore during the previous year.
2.2 Profit Before and After Tax
The profit before tax was Rs. 12,326.16 crore for the financial year
2011-12 as against Rs. 12,049.60 crore last year. The profit after tax
increased by 1.33% to Rs. 9,223.73 crore from Rs. 9,102.59 crore.
3. DIVIDEND
3.1 Interim and Final Dividend
In addition to interim dividend of Rs. 3.50 per equity share paid in
February 2012, your Directors have recommended a final dividend of Rs.
0.50 per equity share for the year 2011-12. The total dividend for the
year is Rs. 4.00 per equity share of Rs. 10/- each against Rs. 3.80 per
share paid during last year. The total dividend payout is 35.76% and the
total dividend payout including dividend tax is 41.48% of profit after
tax. The final dividend shall be paid after your approval at the
Annual General Meeting. The dividend has been recommended in accordance
with your Companys policy of balancing dividend pay-out with the
requirement of deployment of internal accruals for its growth plans.
Your Directors believe that growth of the Company through capacity
addition, backward and forward integration and strategic diversifi
cation of its operations would lead to increase in shareholders value.
4. OPERATIONAL PERFORMANCE
4.1 Generation
During the year, the power stations of your Company generated 222.07
BUs of electricity which was 25.48% of the total power generated in
India (without Bhutan import). The total power generated by the
Company including its JVs and subsidiary was 240.31 BUs which was
27.57% of the total power generated in India (without Bhutan import).
The power generated by the Company has registered an increase of 0.69%
over the previous years generation of 220.54 BUs. The total generation
contributed by coal stations is 199.054 BUs during the year against
generation of 195.282 BUs last year registering a growth of 1.93%.
Generation could have been still higher but due to less grid demand,
there was generation loss of 5.93 BUs. The coal based stations of your
Company operated at average Plant Load Factor (PLF) of 85.00% (All
India PLF 73.32%) and average Availability Factor of 89.73% on bar
during the year. During the year, 6 coal based stations out of 15
achieved more than 90% PLF.
The gas stations having a capacity of 3,955 MW achieved annual
generation of 23.014 BUs at a PLF of 65.22% as against 25.255 BUs last
year mainly due to less grid demand which accounted for a generation
loss of 10.176 BUs. The average declared capacity of gas based stations
of the year was 93.81% as compared to 92.60% during previous year.
Management Discussion and Analysis Report
Management Discussion and Analysis Report for the year under review, as
stipulated under Clause 49 of the Listing Agreement with the Stock
Exchanges in India, is presented in Annex-I to this Report. 5.
COMMERCIAL PERFORMANCE
Your Company has realized 100% payment of current bills raised for sale
of power for the ninth consecutive year.
5.1 Rebate Scheme/ One Time Settlement Scheme for realization of dues
In order to achieve early realization of dues, provision of rebate,
even for customers making payment after 30 days and upto 55th day, has
been introduced in the Rebate Scheme for 2012-13. All the benefi
ciaries have established Letters of Credit (LC) and are maintaining it.
As on 31.05.2012, your Company has monthly LCs of Rs. 4,888.74 crore.
RBI, on behalf of State Governments, redeemed the bonds and serviced
half-yearly interest installments on bonds in time as per One Time
Settlement Scheme. The matter of securitization of outstanding dues
amounting to Rs. 1,310.83 crore pertaining to DESU period payable by
Government of NCT of Delhi is under active consideration by the
Ministry of Power.
5.2 Power Purchase Agreements for renewable energy Your Company had
signed Power Purchase Agreements (PPAs) for Solar PV projects at
Andaman & Nicobar Islands, Dadri, Faridabad, Raigarh, Ramagundam,
Unchahar & Talcher and for Solar Thermal Project at Anta. The
cumulative renewable energy capacity for which PPAs have been signed is
118 MW, consisting of 110 MW of solar capacity and 8 MW of small hydro
capacity at Singrauli. PPA has been signed with West Bengal for sale of
75 MW allocated to the Company from Farakka-III.
5.3 Commercial Capacity
The following units were declared commercial during the year 2011-12,
adding 1,160 MW to commercial capacity of your Company:
Project/ Unit Capacity (MW) COD*
Sipat-I, Unit#1 660 01.10.2011
Simhadri-II, Unit#1 500 16.09.2011
Total 1,160
* COD- Commercial Operation Date
Further, after the financial year 2011-12, Unit#6 of 500 MW of
Farakka, Unit#2 of 660 MW of Sipat, Unit#2 of 500 MW of Jhajjar (JV
i.e. Aravali Power Company Private Limited) have been declared
commercial.
5.4 Determination of Tariff
Your Company had filed tariff petitions for the five-year period
starting 1.4.2009 before CERC for all the stations in accordance with
the CERC (Terms and Conditions of Tariff) Regulations, 2009. The final
tariff orders have been received for 19 stations till 30.06.2012.
5.5 Strengthening Customer Relationship
Customer Relationship Management (CRM) initiative has been taken by
your Company towards strengthening relationship with our customers.
Under this, regular structured interaction with customers takes place
on an ongoing basis for sharing of feedbacks /experiences
/expectations. These meetings provide a platform for better interaction
and sharing of experiences for mutual benefits. Based on the feedback
received from the customers, the Company provides various support
services to them, identifi es potential areas of cooperation and shares
each others best practices. Besides, your Company also organized
Regional Customer Meets, State specific Business Partner Meets and
GENCOs Meets for better interaction and sharing of experience.
Starting from 2008-09, NTPC has rolled out a Customer Satisfaction
Index (CSI) for gathering customers feedback and responding to their
requirements. This initiative serves as a useful tool for further
strengthening Customer Relationship and better appreciation of our
business imperatives.
5.6 Supply of Electricity in 5 Kms area around plant
Under the scheme of Government of India for provision of supply of
electricity in 5 Kms area around Central Power Plants, your Company is
implementing the electrification work around 29 projects. Award for
implementation of the scheme has been placed at 8 stations.
6. INSTALLED CAPACITY
During the year 2011-12, your Company added 2,820 MW detailed as under:
Project/ Unit installed during Capacity
FY 2011-12 (MW)
NTPC owned
Sipat-I 1,320
Simhadri-II 500
Under JVs
Jhajjar (JV with HPGCL & IPGCL) 500
Vallur (JV with TANGEDCO) 500
Addition during FY 11-12 2,820
Project/ Unit installed in the first Capacity
quarter of FY 2012-13 (MW)
NTPC owned
Sipat -I, Unit#3 660
Vindhyachal, Unit#11 500
Rihand, Unit#5 500
Mouda, Unit#1 500
Addition after FY 11-12 2,160
The capacity added by NTPC Group has registered a growth
of 13.25% over the preceding year.
6.1 Installed Capacity of NTPC Group
The total installed capacity of the NTPC Group has increased
to 37,014 MW as on 31.03.2012 as tabulated below:
Owned by NTPC MW
Coal based projects 28,695
Gas based projects 3,955
Sub-total 32,650
Joint Ventures & Subsidiaries
Coal based projects 2,424
Gas based projects 1,940
Sub-total 4,364
Total 37,014
Now, with the commissioning of 2,160 MW after the
financial year 2011-12, the installed capacity of NTPCs
Group has become 39,174 MW.
7. CAPACITY ADDITION PROGRAM
Your Company has adopted a multi-pronged growth strategy which includes
capacity addition through green field projects, brown field
expansions, joint ventures and acquisitions towards its journey to
become the worlds largest power producer. In addition to furthering
capacity addition through Coal / Gas based thermal power projects, your
Company has been pursuing enhancement of its power generation portfolio
through Hydro, Renewable Energy and Nuclear energy projects.
7.1 Projects under Implementation
Your Companys various projects having aggregate capacity of 14,818 MW
including 2,890 MW, being undertaken by Joint Venture Companies were
under construction as on 31.03.2012 excluding 2,160 MW commissioned
during first quarter of financial year 2012-13, as detailed below:
List of Ongoing Projects as on 31.03.2012 excluding 2,160 MW
commissioned during first quarter of FY 2012-13
Name of the Project Capacity
(MW)
I. Projects under NTPC Ltd
A. Coal Based Projects
1. Barh-I 1,980
2. Bongaigaon-I 750
3. Mouda-I 500
4. Barh-II 1,320
5. Rihand-III 500
6. Vindhyachal-IV 500
7. Kudgi 2,400
8. Solapur 1,320
9. Mouda-II 1,320
Sub Total (A) 10,590
Name of the Project Capacity
(MW)
B. Hydro Electric Power Projects (HEPP)
10. Koldam 800
11. Tapovan Vishnugad 520
Sub Total(B) 1,320
C. Renewable Projects
12. Singrauli CW HEPP 8
13. Dadri Solar PV 5
14. Andaman Solar PV 5
Sub Total (C) 18
Total I (A)+(B)+(C) 11,928
II Projects under JVs
Coal Based Projects
15. Jhajjar- JV with HPGCL & IPGCL 500
16. Vallur - JV with TNEB 1,000
17. Nabinagar- JV with Railways 1,000
18. Muzaffarpur Expansion (MTPS)- 390
JV with BSEB
Total II 2,890
III Total On-Going Projects as on 14,818
31.03.2012 (I)+(II)
List of Projects added in first quarter of
FY 2012-13
IV. Project under NTPC Ltd. (Coal Based)
19. Vindhyachal-V| 500
V Project under JVs
20. Meja (JV with UPRVUNL) 1,320
VI Total Ongoing Projects added within 1,820
first quarter after FY 2011-12
VII Total Projects under Construction by 12,428
NTPC till first Quarter after FY 2011-12
(I+IV)
VIII Total Projects under Construction by 4,210
JVs till first Quarter after FY 2011-12
(II+V)
IX Total Projects under Construction by 16,638
NTPC Group till first Quarter after FY
2011-12 (VII+VIII)
Now, with the placement of main plant package award for Vindhyachal-V
(500 MW) and for Meja (1,320 MW) projects, NTPC Groups aggregate
capacity under construction has become 16,638 MW (including 4,210 MW by
JVs).
7.2 New Projects
Your Company has a capacity addition program for 14,038 MW capacity
under 12th Plan Period (2012-2017) which includes 2,890 MW capacity
through Joint Ventures and Subsidiaries. Proposals for 12,941 MW
capacity addition are under various stages of bidding. Feasibility
Reports have been approved for additional capacity of 12,111 MW
(including 2,100 MW through JV and Subsidiaries). Your Company has
also taken up studies/ preparation of
Feasibility Reports of about 13,000 MW capacity and is pursuing
statutory clearances for various other projects to be taken up in
future.
7.3 New Technology
To meet the future challenges of meeting Indias electricity needs at
affordable cost with minimum environmental impact, your Company has
drawn a long term Technology Roadmap up to year 2032 which involves
development, adoption and promotion of safe, Efficient and clean
technologies for entire value chain of power generation business.
Your Company has adopted several new technologies including combined
cycle gas-fired power stations, Merry-go-round, Distributed Digital
Control & Management Information System, High Voltage Direct Current
transmission, Sliding Pressure Operation of SG, Dry Ash Extraction and
Disposal, 765 KV Switchyard, Ash Water Recirculation System, Liquid
Waste Management System, Performance Analysis and Diagnostic
Optimization, Tunnel Boring Machines and Super Critical Technologies.
In order to improve efficiency further your Company has adopted higher
steam parameters for Barh Expansion project and all of its 660 MW and
800 MW projects resulting in 5% gain in efficiency over the effi
ciency of conventional sub-critical 500 MW unit considering similar
coal. For the sub-critical 500 MW units also, reheat temperature has
been increased to 565 deg C for all the new units resulting in about
0.7% gain in efficiency.
Your Company has taken initiatives for development of advance ultra
super critical technology for which it has entered into MOU with BHEL
and IGCAR. It will enhance thermal efficiency to around 45% and result
in about 15- 17% less CO2 emission as compared to conventional sub-
critical thermal power plants. Detailed project report is being
prepared for hybrid solar thermal plant of about 3.6 MW by integration
of solar heat with 210 MW coal based unit at Dadri. Solar heat is being
integrated along with feed heaters in the turbine cycle for conversion
of solar heat to electrical power with the help of existing steam cycle
of 210 MW. Once integrated, this will reduce coal consumption thereby
reducing CO2 emissions.
7.4 Project Management à A New Approach
Your Company believes that in order to achieve its ambitious capacity
addition targets, it has to build on its capabilities and leverage its
expertise in power project execution. Accordingly, it has revised its
delegation of powers and has empowered its regions and projects to
enable faster decision making. Your Company has already established a
state-of-the-art IT enabled Project Monitoring Centre (PMC) for
facilitating fast track project implementation. PMC is extensively
utilized for tracking and resolving project issues and helps in
providing effective coordination between the agencies. It ensures
better and fast monitoring of the projects.
7.5 Capacity addition through Subsidiaries and Joint Ventures (JVs)
Besides adding capacities on its own, your Company plans to add
capacities through some of its subsidiaries and joint ventures. The
detail of JV Companies/Subsidiaries along with details of Joint Venture
partners for capacity addition are as under:
7.6 Hydro Power
At present 1,320 MW Hydro capacity is under implementation apart from
291 MW under bidding.
7.6.1 Your Company is setting up the following hydro projects for
increasing its footprints in renewable energy development:
Project Location Capacity
Koldam HEPP Himachal Pradesh 800 MW
Tapovan-Vishungad HEPP Uttarakhand 520 MW
Lata Tapovan HEPP* Uttarakhand 171 MW
Rammam-III HEPP* West Bengal 120 MW
*Lata Tapovan HEPP and Rammam-III are being developed as Regional
projects, which were earlier to be implemented by NTPC Hydro Limited, a
wholly-owned subsidiary of NTPC. NTPC Hydro Limited is now being merged
with NTPC Limited.
Your Company is also considering Rupsiabagar-Khasiabara HEPP (261 MW)
located at Uttarakhand for which the Company has submitted to Ministry
of Environment and Forests for reconsideration of case of rejection of
forest clearance.
Loharinag Pala HEPP had been discontinued on the advice of Ministry of
Power. Ministry of Power has constituted Empowered Committee to
facilitate settlement of claims, project-site safety measures and for
transfer of project to Government of Uttarakhand.
7.6.2 Hydro Engineering
7.6.2.1 In pursuance of Memorandum of Agreement signed with Govt. of
Mizoram, Detailed Project Report of Kolodyne HEPP (4X115MW) prepared by
Central Water Commission for Govt. of Mizoram and updated by NTPC was
submitted to CEA for according Techno-Economic Clearance (TEC). CEA
has considered the proposal and accorded Techno- Economic Clearance on
14.09.2011. The environment clearance for the project is being pursued
with the Government of Mizoram.
7.6.2.2 Your Company carried out the assignment of preparation of
Detailed Project Report (DPR) for Amochu Reservoir Hydro-electric
Project (4X135 MW) in Bhutan and the DPR has been submitted to CEA and
Royal Government of Bhutan in October 2011. Additional geological
investigations based on CEA comments are being carried out.
7.7 Capacity Addition through other Renewable energy Sources - Solar
and Wind
Your Company is having ambitious plan for capacity addition of 1,000 MW
through renewable energy sources, out of which for 300 MW road map has
already been prepared for implementation by 2017. Your Company is
implementing 5 MW Solar PV based project in Uttar Pradesh (Dadri), 5 MW
Solar PV based Project in Andaman & Nicobar (Port Blair) and 8 MW HEPP
at Uttar Pradesh (Singrauli). In addition, 15 MW Solar Thermal based
power in Rajasthan (Anta), 5 MW Solar PV based project in Haryana
(Faridabad), 10 MW each Solar PV based Projects in Uttar Pradesh
(Unchahar) and Odisha (Talcher), 50 MW Solar PV based project in Andhra
Pradesh (Ramagundam), 50 MW Solar PV based project in Madhya
Pradesh (Rajgarh), 100 MW wind energy based project in Karnataka and 20
MW wind energy based project in Kerala are also being planned.
8. STRATEGIC DIVERSIFICATION- INCREASING SELF- RELIANCE
8.1 In order to strengthen its competitive advantage in power
generation business, your Company also plans to diversify its portfolio
to emerge as an integrated power major, with presence across entire
energy value chain through backward and forward integration into areas
such as coal mining, power equipment manufacturing, power trading,
distribution, etc.
Business opportunities are being continuously explored through market
scanning and new business plans are adopted accordingly.
8.1.1 The details of joint venture Companies taking up activities in
other businesses is as under:
Name of JV Partner Activities
Company undertaken
UPL Reliance Takes up assignments of
(Utility Infrastructure construction, erection
Powertech Limited and supervision of
Ltd.) power sector and
other sectors like O&M
services, RLA studies,
power distribution, non-
conventional projects.
NASL ALSTOM Takes up renovation and
(NTPC Power modernization assignments
ALSTOM Generation AG of power plants both
Power in India and in SAARC
Services Countries.
Pvt. Ltd.)
EESL PFC, PGCIL and The Company was formed
(Energy REC on December 10, 2009
Efficiency for implementation of
Services Energy Efficiency projects
Ltd.) and to promote energy
conservation and climate
change.
The Company is working
on Energy Audit of
Buildings and Agricultural
Pump replacement under
Perform Achieve Trade
scheme and implementing
Bachat Lamp Yojna for
various State Govts.
NHPTL NHPC, PGCIL The Company was
(National and DVC incorporated on
High 22.05.2009 for setting up
Power Test facility for short circuit
Laboratory testing of transformers and
Pvt. Ltd.) other electrical equipment.
The site for setting up
the laboratory is located
at Bina, MP. Construction
activities and award
activities are in progress.
NPEX NHPC, PFC, The Company was formed
(National TCS, BSE, IFCI, to facilitate, promote,
Power Meenakshi, assist, regulate and manage
Exchange DPSC nation wide trading of
Ltd.) all forms of Electrical
energies and also to settle
Trades in a transparent
fair and open manner.
By-laws of Exchange
submitted by NPEX to
CERC on 30.03.2011 and
the approval has been
accorded by CERC on
24.04.2012.
8.2 The details of subsidiary Companies in other businesses are as
under:
8.2.1 NTPC Electric Supply Company Limited, a wholly owned subsidiary
of NTPC was incorporated to foray into the business of distribution and
supply of electrical energy as a sequel to reforms initiated in the
power sector. The Company is undertaking implementation of turnkey
Rajiv Gandhi Gramin Vidyutikaran Yojna Projects (details given under
Rural Electrification in the Report), turnkey execution of
sub-stations for utilities, project management consultancy for
provision of supply of electricity in 5 km area around NTPC power
projects.
This subsidiary has commenced business of retai distribution of power
in various industrial parks developed by Kerala Industrial
Infrastructure Development Corporation (KINFRA), through its Joint
Venture Company namely KINESCO Power and Utilities Private Limited,
formed with KINFRA.
8.2.2 NTPC Vidyut Vyapar Nigam Limited, a wholly owned subsidiary of
NTPC was incorporated to undertake sale and purchase of electric power
and to effectively utilize installed capacity and thus enable reduction
in the cost of power. The Company is involved in power trading, sale of
fl y ash and cenosphere. It has been appointed as the nodal agency for
Jawahar Lal Nehru National Solar Mission.
8.3 In order to strengthen its competitive advantage in power
generation business, the Company has diversified into the area of
manufacturing through the following joint ventures:
8.3.1 NTPC-BHEL Power Projects Pvt. Limited (NBPPL), a joint venture of
your Company with BHEL was incorporated on April 28, 2008 for taking up
activities of Engineering, procurement and construction of power plants
and manufacturing of equipments. Manufacturing plant of NBPPL is being
constructed at Mannavaram, Tirupati in Andhra Pradesh. The Company is
executing EPC contracts for balance of plants packages of Palatana
Combined Cycle Power plant in Tripura, Namrup Combined Cycle Power
Plant in Assam for BHEL and BOP including Erection & Commissioning
works of entire plant for Monarchak, Tripura for NEEPCO.
8.3.2 Another joint venture Company, BF-NTPC Energy Systems Limited was
incorporated with Bharat Forge Limited on June 19, 2008 to manufacture
castings, forgings, fittings and high pressure piping required for
power projects and other industries. Land acquisition for establishing
manufacturing plant at Sholapur, Maharashtra is in progress. Business/
Technical alliances for key product lines and technology tie-up are
being actively pursued.
8.3.3 Your Company has acquired 44.6% stake in Transformers and
Electricals Kerala Limited from Government of Kerala on June 19, 2009.
The Company deals in manufacturing and repair of Power Transformers.
The Company produced 5,789 MVA transformers which was highest
production ever achieved till date, registering a plant capacity
utilization factor of 130% as against the industry utilization factor
of 75% in 2011-12.
Please refer to "Management Discussion and Analysis", Annexure-I
included as a separate section to this report for further details.
9. GLOBALISATION INITIATIVES
9.1 Trincomalee Power Company Limited, a 50:50 joint venture Company
between NTPC and Ceylon Electricity Board was incorporated on
26.09.2011 to undertake the development, construction, establishment,
operation and maintenance of coal based electricity generating station
of 2X250 MW capacity at Trincomalee at Srilanka. Finalisation of
various agreements between JV Company and CEB is in progress.
9.2 Pan-Asian Renewables Private Limited, a joint venture Company has
been incorporated amongst NTPC Limited, Asian Development Bank and
Kyushu to develop projects for portfolio of about 500 MW of renewable
power generation resources in India. In future, the Company may develop
projects outside India in Developing Member Countries.
9.3 Joint Venture Agreement has been executed between NTPC and
Bangladesh Power Development Board (BPDB) on 29.01.2012 for developing
a 1,320 MW Coal based power project at Khulna, Bangladesh through a
joint venture Company to be incorporated between NTPC and BPDB.
9.4 Your Company has prepared and submitted the DPR for Amochu
Hydro-electric project in Bhutan. NTPC has requested Government of
India for allocation of Amochu Reservoir Hydro Electric Project to NTPC
for execution in Bhutan.
9.5 NTPC Consultancy Wing has bagged an order for O&M services for
2X120 MW Siddhirganj Peaking Power Plant for an amount of Rs. 43.05 crore
from Electricity Generation Company of Bangladesh, which is the largest
international order bagged by Consultancy Wing so far.
10. FINANCING OF NEW PROJECTS
The capacity addition programs shall be financed with a debt to equity
ratio of 70:30. Your directors believe that internal accruals of the
Company would be sufficient to finance the equity component for the
new projects. Given its low geared capital structure and strong credit
ratings, your Company is well positioned to raise the required
borrowings.
Your Company is exploring domestic as well as international borrowing
options including overseas development assistance provided by bilateral
agencies to mobilize the debt required for the planned capacity
expansion program.
During the year 2011-12, term loan agreements of Rs. 13,500 crore were
entered into with banks and domestic financial institutions which
included loan of Rs. 10,000 crore executed with State Bank of India. The
cumulative amount of domestic loans tied up till March 31, 2012 was Rs.
59,799.35 crore.
Bonds amounting to Rs. 830 crore were raised from domestic market for fi
nancing the capital expenditure and refinancing of the loans.
Your Company tied-up about USD 700 million from international debt
markets through bilateral loan, export credit agency guaranteed loan
and bonds. The bond offering of the Company received strong investor
response despite the prevalent uncertainty in the global markets.
11. FIXED DEPOSITS
The cumulative deposits received by your Company from 158 depositors as
at March 31, 2012 stood at Rs. 12.26 crore. Further, an amount of
Rs. 0.17 crore has not been claimed on maturity by 19 depositors as on
that date.
12. FUEL SECURITY
12.1 Diversified Fuel Mix
In line with the capacity addition plan of the Government of India,
your Company will take up more coal-based capacity addition in the
coming years owing to large reserves of coal in the Country. However,
with a view to promote sustainable energy development and further
reduce CO2 intensity of power generation, your Company is progressively
diversifying its fuel mix to increase the share of non-fossil fuels.
12.1.1 Coal Supplies
During the year, your Company has signed a 20 years Fuel Supply
Agreement with ECL for supply of 15 MMT coal to Farakka (1,600 MW) and
Kahalgaon (1,840 MW) and with MCL & SECL for supply of 1 MMT of coal
for Ramagundam (500 MW). The Company has tied up coal through MOU route
from Coal India Limited for seven units commissioned after 31.03.2009.
It has tied-up bilaterally 0.3 MMT coal for Farakka with NEC and 5.0
MMT with SCCL for Ramgundam, Simhadri, Dadri and Sipat at a mutually
negotiated price.
Government of India has issued Presidential Directive to Coal India
Limited (CIL) for supply of minimum assured quantity of coal to power
producers and to sign Fuel Supply Agreements with power producers.
Discussions are being held with CIL for signing Fuel Supply Agreement.
12.1.2 Import of Coal
Your Company resorted to direct procurement of 4 MMT of imported coal
at competitive prices for the first time. Earlier, the Company had an
agreement with STC for supply of imported coal.
During 2011-12, your Company received 140.99 MMT of coal as against
137.32 MMT in the previous year. Total domestic coal supply during
2011-12 was 128.98 MMT as against 126.717 MMT during 2010-11 and import
during 2011-12 was 12.00 MMT as against 10.60 MMT in 2010-11.
12.1.3 Sourcing of coal through E-auction
For supplementing the coal supply chain for Farakka and Kahalgaon, your
Company also procured coal (0.38 MMT) through E-auction.
12.1.4 A New Initiative à Coal Transportation through Inland Waterways
Your Company has signed a Tripartite Agreement with Inland Waterways
Authority of India and Jindal ITF on 11.08.2011 for transportation of 3
MMT of imported coal through inland waterways to NTPC Farakka to
supplement coal supplies. Activities for implementation of the project
are in progress. This will pave a new era in the development of Inland
Waterways system in India.
12.2 Gas supplies
During 2011-12, your Company received 13.09 MMSCMD of gas/RLNG as
against 13.77 MMSCMD received during 2010-11. The gas off-take in
2011-12 includes 10.74 MMSCMD of domestic gas and 2.35 MMSCMD of RLNG.
Your Company has APM gas agreements up to the year 2021 and PMT gas
agreements up to the year 2019 for its gas stations. The long-term RLNG
supply agreement with GAIL is valid till 2019. Further, out of 4.46
MMSCMD of KG-D6 gas allocated by Government of India for NCR gas
stations, viz. Anta, Auraiya, Dadri & Faridabad, 2.30 MMSCMD has
already been tied up. For the balance 2.16 MMSCMD KG D6 gas, Empowered
Group of Minister on Pricing & Commercial Utilisation of gas has
directed Reliance Industries Limited to enter into GSPA for supply of
gas to NTPC immediately. As per the directive, the terms and condition
of GSPA for 2.16 MMSCMD KG-D6 gas is in advance stage of finalisation.
Your Company has been making arrangements for tie- up/ supply of spot
RLNG/ Fallback RLNG from domestic suppliers on reasonable endeavour
basis based on requirement/ availability from time to time.
12.3 Development of Coal Mining projects
Your Company was allocated six coal blocks by the Government of India.
Further, Brahmini coal block (including Chichro-Patsimal) was allocated
for joint operation by CIL NTPC Urja Private Limited, a joint venture
Company of Coal India Limited and NTPC. All these mining blocks
together have a production potential of more than 73 million tonnes per
annum.
However, in case of Chatti-Bariatu, Kerendari and Chatti- Bariatu
(South), the timeline stipulated by Ministry of Coal for development of
these blocks could not be met for reasons beyond the control of the
Company. Accordingly, Ministry of Coal had de-allocated these coal
blocks on 14.06.2011. NTPC made representation to Ministry of Coal.
Ministry of Coal through letter dated 27.01.2012 had conveyed
in-principle approval for withdrawal of de- allocation, but the formal
communication is still awaited.
Block development activities are in advance stage in all coal blocks.
Mining Plans have been approved by Ministry of Coal for all of these
coal blocks except for Chatti-Bariatu (South), for which it was
submitted to Ministry of Coal but returned due to de-allocation. All
Notifications for mining area land & Socio-Economic Survey have been
completed for all of these coal blocks. Payment of land compensation to
project-affected families has started in Pakri-Barwadih,
Chatti-Bariatu, Kerandari & Talaipalli coal blocks. MOEF, Govt. of
India accorded environment clearance for Pakri-Barwadih, Chatti-Bariatu
& Kerandari Coal blocks. In-principle environment clearance received
from MOEF for Talaipalli & Dulanga coal blocks and final environment
clearance will be issued after Stage-I forest clearance. MOEF accorded
Stage-I & Stage-II forest clearances for Pakri-Barwadih &
Chatti-Bariatu coal blocks and Stage-I forest clearance for Kerandari
coal block. Forest proposal for Talaipalli and Dulanga coal blocks are
under process with MOEF and State Govt. of Odisha, respectively.
Construction of R&R Colony, CHP, Sub-Station, Railway Siding, etc.
commenced for Pakri-Barwadih coal block. Mine Developer-cum-Operator
[MDO] has commenced work in Pakri-Barwadih coal block.
In addition to the above coal blocks, Ministry of Coal has conveyed
in-principle approval for allotment of more coal blocks to NTPC in lieu
of coal linkages for the following new projects: (i) Kudgi, (2,400MW)
(ii) Gajamara, (1,600MW) (iii) Barethi, (3,960 MW) (iv) Unchahar,
Stage-IV, (500 MW) 12.4 Other initiatives for securing coal supply
To leverage the strength of established players in mining and related
areas, your Company has formed the following Joint Venture Companies:
Name of JV Partners Purpose
Company
CIL NTPC Coal India For undertaking the
Urja Pvt. Ltd. Development, O&M of
Ltd.* Brahmini and Chichro
Patsimal coal blocks
and Integrated Power
Projects). CMPDIL has
been entrusted with
the job of detailed
exploration.
NTPC SCCL Singareni For undertaking
Global Collieries development and O&M
Ventures Company of coal blocks in India and
Pvt. Ltd. Ltd. abroad.
*In case of Brahmini and Chichro-Patsimal coal blocks, allocated to CIL
NTPC Urja Private Limited, though there was no schedule stipulated with
the allotment letter, Ministry of Coal had de-allocated these blocks
for delay in their development. Your Company has taken up the matter
with the Ministry of Coal for withdrawal of de- allocation. The Board
of NTPC has accorded approval to exit International Coal Ventures
Private Limited.
12.5 Exploration Activities
Under New Exploration Licensing Policy (NELP-VIII), your Company has
signed Production Sharing Contracts (PSCs) on 30.06.2010 with
Government of India for four Oil/ Gas Exploration blocks.
One of the blocks allotted under NELP-VIII is held by NTPC with 100%
participating interest and as operator. 3D Seismic Data Acquisition has
been started subsequent to grant of Petroleum Exploration Licence and
the work has been completed. Minimum Work Programme Commitment (MWP)
for this block is Rs. 177.53 crore.
The other three blocks with 10% participating interest in each block
are held by your Company in consortium with ONGC as operator. Various
activities in these blocks are under progress. NTPCs share of MWP for
these blocks is Rs. 87.83 crore.
13. BUSINESS EXCELLENCE: GLOBAL BENCHMARKING
NTPC has developed its own excellence framework for assessing
generating stations. This framework is based on globally reputed
excellence frameworks like Malcolm Balddridge, USA and European
Foundation for Quality Management. This initiative is known as NTPC
Business Excellence Model. The outcomes of this model are
organizational strength, opportunity for improvement, issues of concern
and best practices. A jury of eminent persons from within and outside
organization judges outcome of the assessment process and suggests
improvements. In the financial year 2011-12, 2nd cycle of assessment
was completed and stations ranking high on excellence level like
Ramagundam and Dadri were awarded by Honourable Minister of Power in
O&M conference during Feb12. External jury members for assessment
cycle have praised the initiative as holistic approach towards
excellence.
At strategic level apart from adopting NTPC Business Excellence Model,
proposal has also been initiated for Balanced Score Card implementation
using ERP enabled software across the organization.
14. RENOVATION & MODERNISATION
14.1 Need for Renovation and Modernization
Renovation and Modernization (R&M) of power plants in the present
scenario of severe resource constraint is considered to be the best
option for bridging the gap between the demand and supply of power as
R&M schemes are cost effective. To this end, renovations are being
carried out for the purpose of life extension of units, performance
improvements, capacity enhancement, availability improvement and
improved environment compliance. It increases the capacity, ensures
safe, reliable and economic electricity production by replacement of
worn-out, deteriorated or obsolete electrical, mechanical,
instrumentation, controls and protection system by state-of-the-art
equipment. Y o u r Company completed 724 schemes of R&M out of 930
schemes, which cost around Rs. 2,185 crore.
With a view to comply with increasingly stringent environment norms of
reduced emission level prescribed by State Pollution Control Boards,
planning, tendering and approval is on for Renovation and Retrofitting
of Electrostatic Precipitator (ESP) in stations like Singrauli, Korba,
Rihand, Vindhyachal, Farakka, Unchahar, Talcher Kaniha, Talcher STPS
etc. With the same objective, implementation of renovation of ESP is
already in progress at Badarpur TPS (2X210 MW).
15. VIGILANCE
15.1 Viligance Mechanism
Your Company ensures transparency, objectivity and quality in its
operations and to monitor the same, the Company has a Vigilance
Department headed by Chief Vigilance Officer, a nominee of Central
Vigilance Commission. The four units of Vigilance Department namely
Corporate Vigilance Cell, Departmental Proceeding Cell (DIPC), MIS Cell
and Technical Cell (TC) deal with various facets of Vigilance
Mechanism. The Vigilance Department submits its report to the Competent
Authority and also to the Board of Directors. The CVO reports to the
Central Vigilance Commission.
As per the directive of DOPT/ MOP, the property returns of all the
executives have been published on NTPC Website.
15.2 Workshops and Vigilance Awareness Week
Preventive Vigilance Workshops are being conducted every year to
sensitize employees about DOs and DONTs in work areas and their role in
preventing corruption.
Vigilance Awareness Week is being organized every year in first week
of November to emphasize upon leveraging IT, creating awareness for
transparency, accountability, fair play and objectivity. The issues
relating to contractors are also addressed to their satisfaction during
Customer Meet organized during Vigilance Awareness Week.
15.3 Implementation of Integrity Pact
Your Company is committed to bring total transparency to its business
processes and as a step in this direction, has signed a Memorandum of
Understanding with Transparency International India in December, 2008.
The Integrity Pact is being implemented for all contracts having value
exceeding Rs. 10 crore. Two Independent External Monitors have been
nominated by the Central Vigilance Commission for all contracts with
value exceeding Rs. 100 crore.
15.4 Implementation of Fraud Prevention Policy
The Fraud Prevention Policy has been formulated and implemented in your
Company since 2006. The cases referred by the nodal officers are being
investigated immediately to avoid fraudulent behaviors as defi ned in
the Fraud Prevention Policy.
16. HUMAN RESOURCE MANAGEMENT
16.1 Your Company takes pride in its highly motivated and competent
human resource that has contributed its best to bring the Company to
its present heights. The productivity of employees is demonstrated by
increase in generation per employee and consistent reduction of Man-MW
ratio year after year. The over-all Man-MW ratio for the year 2011-12
excluding JV/subsidiary capacity
is 0.74 and 0.69 including capacity of JV/ Subsidiary. Generation per
employee was 9.25 MUs during the year based on generation of NTPC
stations.
The total employee strength of the company stood at 25,511 as on
31.3.2012 against 25,144 as on 31.3.2011.
FY 2011-12 FY 2010-11
NTPC
Number of employees 24,011 23,797
Subsidiaries & Joint Ventures
Employees of NTPC 1,500 1,347
in Subsidiaries & Joint
Ventures
Total employees 25,511 25,144
The attrition rate of the NTPC executives (including ETs and those
posted in Subsidiaries and JVs) during the year was 1.17%.
16.2 Employee Relations
During the year employees relations climate was peaceful and
conducive. The scheme for employees participation in management
continues to function successfully all over NTPC. There have been
continuous interactions between the management and the apex fora of
workmen and executives - National Bipartite Committee (NBC) and NTPC
Executives Federation of India (NEFI) respectively. The unions and
associations and also the individual employees complemented the efforts
of the management in developing and sustaining an enabling performance
culture in the organization. Meetings and workshops for workmen and
executives association were held during the year wherein issues
relating to performance and productivity were discussed. The overall
employee relations scenario in NTPC continued to be cordial marked by
industrial harmony and mutual trust.
16.3 Safety & Security
Occupational safety and health at workplace is one of the concerns of
NTPC Management and utmost importance is given to provide safe working
environment and inculcate safety awareness among the employees. The
Company has 3-tier monitoring system of safety measurement i.e. at
site level, at Regional Head Quarters and at Corporate Centre.
Regular plant inspection, internal and external safety audits are
carried out at each Project/Station. Safe methods are practised in all
areas of Operation & Maintenance (O&M) and Construction & Erection
(C&E) activities. Safety task force for O&M and Construction
activities, height permit and height check list are implemented.
Qualifi ed safety officers are posted at all units as per statutory
rules/ provisions. Safety control rooms are established at all
construction projects to monitor unsafe conditions and unsafe acts
through cameras installed at valuable locations of sites. All our
plants are certifi ed by OHSAS-18001.
Through our continuous efforts in safeguarding the employees, accidents
have come down considerably as compared to last year. Many of our
plants have been awarded with prestigious safety awards by various
Insitutions/ Bodies like Ministry of Labour & Employment, Govt. of
India and National Safety Council, Institution of Engineers in
recognition of implementing innovative safety procedures and practices.
Concrete steps are being taken for upgrading surveillance systems at
all of our projects/ stations by installing State of the Art security
systems as security of the plant is an area of prime concern for our
power plants. A group under the name Security and Coordination has been
formed which is responsible for direct liaison with MHA, IB and CISF as
well as the State/ District level authorities to augment the security
preparedness in our establishment/ power installations. This group also
plays a crucial role in strategic intervention in land acquisition
related issues prevailing at our green/ brown field projects.
16.4 Training and Development
In line with its long-term objective of being a learning organization,
your Company has continuously promoted training and development of not
only its own employees but also other professionals of the power
sector. In this effort, your Company has endeavored to continuously
upgrade the training infrastructure of both Power Management Institute
(PMI) at the corporate level as well as the Employee Development
Centres at the sites. Training imparted is always in tune with new
emerging needs in diverse areas like nuclear power, coal-mining, hydro-
power, super-critical technology, renewable energy etc. and for this
purpose every year some new programmes are included in the annual
calendar. Apart from this, the usual programmes include managerial
topics, power station operation & maintenance and project construction,
erection and commissioning and information technology.
Under the on-going scheme of strengthening the Industrial Training
Institutes (ITIs) across the Country, your Company has taken the
initiative of adopting ITIs near its power generating stations and a
total of 17 ITIs have been adopted under this scheme till 31.03.2012.
This activity is being coordinated through PMI which is also
facilitating the construction of nine new ITIs where new projects are
coming up. Through this initiative, PMI has created 1398 seats in it
till 31.03.2012.
During 2011-12, your Company organized a number of training programmes
in power and energy sectors which, inter-alia, included National
Conference on Cases & Research in Power Sector to provide a platform
for practising managers, academicians and research scholars, a two day
training programme for Directors on Corporate Governance, Hands-on
training in 660 MW supercritical simulator at PMI to 234 participants,
National Seminar on Challenges and Issues in Renewable Energy covering
the uncertainties in fossil fuel supply and the need for distributed
generation using renewable sources.
PMI conducted 405 training programmes with a participant base of
10,326. The training mandays clocked were 45,509.
PMI, for the first time, conducted a training programme through video
conferencing, primarily to reach out to more number of people at one go
and provide quality training programme to remote sites.
17. SUSTAINABLE DEVELOPMENT
Vision Statement on Sustainable Energy envelopment
"Going Higher on Generation, lowering GHG intensity"
Sustainable Development is the development that meets the needs of the
present without compromising the ability of future generations to meet
their own needs. Sustainable Development involves an enduring and
balanced approach to economic activity, social progress and
environmental responsibility.
Department of Public Enterprises, Government of India has issued
Guidelines on Sustainable Development for CPSEs. These guidelines
provide for policy and projects for sustainable development.
Your Company is committed for development of renewable energy in view
of global warming and fast depletion of fossil fuel.
Initiatives by the Company
Your Company is aligning its organisational structure to achieve the
goal of sustainable development. Sustainable Development Projects have
been identified by your Company for implementation next year which
includes waste management, bio-diversity conservation, reduction in air
emission, life cycle environmental impact assessment and electrification
of un-electrified and de-electrified villages (under Rajiv
Gandhi Grameen Vidyutikaran Yojna à RGGVY) through its wholly owned
subsidiary Company NTPC Electric Supply Company Limited.
Your Company has been a member of TERI Ã Business Council for
Sustainable Development à India (TERI-BCSD) since August 2001, which is
the Indian partner of the World Business Council for Sustainable
Development, Geneva. Your Company is also a member of Global Compact
since 2001, a voluntary initiative of the United Nations for Corporate
Social Responsibility. These forums provide an independent and credible
platform to address issues related to sustainable development and
promote leadership in environmental management, social responsibility
and economic performance.
In its endeavour to achieve the goals of Sustainable Development, your
Company is addressing the issues through multi-stakeholder approach
covering environment and social aspects by implementing Corporate
Social Responsibility ÃCommunity Development Policy, Distributed
Generation Projects, Rehabilitation & Resettlement Schemes and Rural
Electrification. Your Company has formed a trust named NTPC Foundation
for serving physically challenged and economic weaker sections of the
society. For preserving the environment, your Company is implementing
renewable energy projects thereby reducing carbon footprints. It is
seeking continuous improvements in Environment Management through Clean
Development Mechanism, Ash Utilisation and has established Center for
Power Efficiency and Environmental Protection (CenPEEP) to address
climate change issues. Details of each of these are as follows:
17.1 Inclusive Growth à An initiative for Social Growth
17.1.1 Corporate Social Responsibility
Your Company has always discharged its social responsibility as a part
of its Corporate Governance philosophy. It follows the global practice
of addressing CSR issues in an integrated multi stake-holder approach
covering the environmental and social aspects.
With a view to address the domains of socio-economic issues at national
level and in line with its Corporate Social Responsibility à Community
Development Policy (CD), your Company has created basket of activities
and taken up various initiatives at its stations, regional and national
level.
Your Company confirms its involvement in various CSR activities in
line with 10 Global Compact principles and shares its experience with
the representatives of the world through "Communication on Progress".
Your Company, being a core member of Global Compact Network, India,
actively participated in the Annual Convention of the Global Compact
Network.
A report on progress made in this area is enclosed at Annex- VIII to
this Report.
Expenditure incurred towards CSR Activities
A total expenditure of Rs. 49.44 crore was incurred towards Corporate
Social Responsibility expenses during the Financial Year 2011-12, which
was 0.54% of the net profit of the previous year.
Awards:
Your Company received SCOPE Meritorious Award for CSR and
Responsiveness for 2010-11, Golden Peacock Award for CSR for the year
2011 and Greentech Award for the year 2011.
17.1.2 NTPC Foundation
NTPC Foundation, registered in December 2004, is engaged in serving and
empowering the physically challenged and economically weaker sections
of the society.
Initiatives undertaken by the Company are covered under Annex-VII to
this Report.
17.1.3 Distributed Generation Power Projects
Your Company is setting up off-grid Distributed Generation Power
projects in villages around its generating stations through a self
sustained model.
It has already commissioned 16 Decentralised Distributed
Generation (DDG) power projects, out of which five projects each are
in Uttar Pradesh, Madhya Pradesh, Chhattisgarh and one in Rajasthan.
This includes commissioning of first Micro Hydel Project (2 X 20 kw)
on 27.03.2012 at tribal village Nakkiya located at a place 75 Km from
NTPC Korba in Chattisgarh. This is the first DG project based on hydro
energy (run-off stream) commissioned with the grant from Deptt. of
Science and Technology (DST), Govt. of India and NTPC Foundation.
Electricity generated through this micro hydel project is provided
round the clock to 82 households with a population of 410 residents.
Total installed capacity of these DG projects is around 340 KW, benefi
ting approximately 2,280 households and population of 12,500.
17.1.4 Rehabilitation & Resettlement (R&R)
Your Company is committed to help the populace displaced for execution
of its projects and has been making efforts to improve the
Socio-economic status of Project Affected Persons (PAPs). In order to
meet its social objectives, your Company is focusing on effective R&R
of PAPs and undertaking community development activities in and around
the projects.
R&R Plan for Barh ash dyke, Korba Stage-III ash dyke, Vindhyachal
Stage-IV and Talaipalli Coal Mining projects were approved during the
year. Other R&R and CD Plans in process for the projects/ plants
continued to be implemented.
Socio-economic Survey was completed for Tanda- II, Khargone and Dhruvan
projects and is in progress at Muzaffarpur, Darlipalli, Gajamara,
Barethi, Lara, Gadarwara and Khargone Projects.
In the area of health, your Company is providing financial assistance
for setting up a Medical College at Raigarh in Chhattisgarh and for
renovation and refurbishment of "Sundargarh District Hospital in
Odisha. In the area of education, Your Company is providing financial
assistance for setting up a Hydro Engineerng College at Bilaspur in
Himachal Pradesh and is setting up an Industrial Training Institute
(ITI) at Korba.
17.2 Environment Management à An Initiative for preserving Environment
Your Company is pursuing the objective of sustainable power
development. It has taken a number of initiatives towards protection of
the environment by providing advanced environment protection control
systems, regular environment monitoring and judicious use of natural
resources, adoption of high efficiency technologies such as super
critical boilers for the up-coming green field projects etc and
existing brown field projects.
17.2.1 Control of Air Emissions and Automation of Environment
measurement systems: High efficiency Electro-static Precipitators
(ESPs) with efficiency of the order of 99.9% or higher have been
provided to control particulate matter from stacks. Renovation &
modernization of old ESPs at various plants is underway by addition of
collection area, installation of the state-of-the-art controller to
keep Particulate Matter emission below statutory limits.
Flue Gas Conditioning using ammonia is also used as an additional
measure to reduce PM emission. Sulphur content in coal is controlled
through high stacks and NOx emission in coal based stations is
controlled by providing tall stacks and over fire dampers.
In order to monitor key environmental parameters of stack emissions of
SO2, NOx and CO2, ambient air and effluents continuously on real time
basis, 61 continuous Ambient Air Quality Monitoring System (AAQMS)
along with Meteorological Sensors have been installed at 20 stations
located all over India.
Water Conservation: To treat the waste water and reduce consumption of
fresh water requirements for the plants, your Company has installed
Liquid Waste Treatment Systems, Ash Water Recirculation System and
closed cycle condenser cooling water systems with higher Cycle of
Concentration (COC) (using more than 4.0 COC) in its stations. The
Company is using 3Rs (Reduce, Recycle & Reuse) as guiding principle for
reduction in consumption of water. The Company is conducting Water
Balance studies at most of its stations. It is using techniques like
water harvesting and reuse and recycling of STP & CW Blow Down to
achieve maximum water conservation.
Ash Pond Management: Ash dykes in your Company have been engineered to
ensure that all safety and environment issues are addressed at design
stage itself. Multi-lagoon ash ponds with provision of over-fl ow
Lagoons and ash pipe garlanding arrangement for change over of ash
slurry feed points have been provided for effective settlement of ash
particles. Water sprinklers have been provided in the Ash Pond areas
for spraying water in dried up portion of lagoons for control of
fugitive dust. Efforts are made to maximize utilization of ash through
use of Dry Ash Extraction System (DAES). Balance unutilized ash is sent
to ash pond by making ash slurry. The decanted water in Ash Pond is
recycled back with the help of Ash Water Recirculation System (AWRS)
for making ash slurry again.
Environmental Studies: Your Company has taken a number of steps for
establishing scientific database to provide room for betterment of
environment around the power plant through various studies by reputed
Institutes and Consultants. To understand impact of power plants on fl
ora & fauna and human beings, your Company has taken up a number of
Environment Studies such as Human Health Risk Assessment, Source
Apportionment studies, Fly Ash Leachate Study, Post Operational
Environment Impact Assessment Study, Green Cover assessment study and
Impact of operation on Mango orchard.
Tree Plantation: Your Company has planted more than 19 million trees
till date in and around its projects as a measure to take massive
afforestation. The afforestation has not only contributed to the
aesthetics but also helped in carbon sequestration by serving as a
sink for CO2 released from the stations and thereby protecting the
quality of ecology and environment in and around the projects.
ISO 14001 & OHSAS 18001 Certification: NTPCs stations have been
certifi ed with ISO 14001 and OHSAS 18001 by reputed National and
International certifying agencies as a result of sound environment
management systems and practices.
17.2.2 Clean Development Mechanism (CDM)
Your Company is committed to undertake climate change issues
proactively. The Company has taken several initiatives in CDM Projects
in Power Sector. Tapovan Vishnughad HEPP & energy efficiency projects
at Singrauli STPP, Dadri, small hydro project at Singrauli and 5 MW
Solar PV at Dadri have got Host Country Approval from National CDM
Authority. The methodology for super critical technology prepared by
NTPC viz. "consolidated base line and monitoring methodology for new
grid connected fossil fuel fired power plants using less GHG intensive
technology" has been approved by "United Nations Frame Work Convention
on Climate Change (UNFCCC)". All super critical power projects are
using the same methodology. More green field energy efficiency CDM
projects are in pipeline.
17.2.3 Ash Utilisation
During the year 2011-12, 27.53 million tonne of ash had been utilized
for various productive purposes which is 55% of the total ash
generation.
Important areas of ash utilization are à cement & asbestos industry,
ready mix concrete plants (RMC), Road Embankment, Mine filling, Ash
Dyke Raising & Land Development, Issue of fl y ash to cement, RMC and
other industries has been 9.06 Million Tonnes.
Pond ash from all stations of NTPC is being issued free of cost to NTPC
Vidyut Vyapar Nigam Limited (NVVN), a wholly owned subsidiary of the
Company, which in turn sells it to the users. Fund collected from sale
of ash is being maintained in a separate account by NVVN and the same
is being utilized for development of infrastructure facilities,
promotion and facilitation activities to enhance ash utilization.
The quantity of ash produced, ash utilized and percentage of such
utilization during 2011-12 from NTPC Stations is at Annex-IX.
17.2.4 CenPEEP Ã towards enhancing efficiency
Center for Power Efficiency and Environmental Protection (CenPEEP),
was set up to take initiatives to address climate change issues. It is
a symbol of NTPCs voluntary proactive approach towards Greenhouse Gas
(GHG) reduction and commitment towards environmental protection. The
centre has been entrusted with some of the Strategic Initiatives such
as improvement in efficiency and reliability. Various
state-of-the-art technologies and practices for improvement in efficiency
and reliability have been demonstrated in local conditions and
disseminated to power stations through hands-on training, guidelines
and workshops. The activities include new technologies and practices
such as use of thermal cycle modeling and audit, CFD, cooling tower
performance optimization, gas turbine capability assessment, LP turbine
performance assessments, technology application development for
strengthening Predictive Maintenance Program and Failure mode
analysis through Reliability Centered Maintenance (RCM) and risk
evaluation.
CenPEEP has also shared its knowledge and expertise, demonstrated best
practices and provided training at SEBs under GHG Pollution Prevention
Project (GEP) and Asia Pacific Partnership (APP) programs in order to
improve their efficiency and reduce carbon footprint. A large degree
of GEPs success in sustainability is attributed to the creation,
evolution, and institutionalization of CenPEEP.
CenPEEP has estimated cumulative CO2 emission avoided in NTPC since the
year 1996 as 30 million tones.
A study on Efficient and clean use of coal in Asia Region was also
initiated under the Asia region work programme of World Energy Council
with involvement of Japanese experts.
17.2
Mar 31, 2011
Dear Members,
The Directors are pleased to present the 35th Annua I Report and the
audited accounts for the year ended March 31, 2011.
During theyear 2010-11, your Company has added capacity
of 2,490 MW (including 500 MW through JV) which is the highest ever in
ayearsince its inception. After commissioning of one unit of 660MW at
Sipat in June 2011, the Company has become a 34,854 MW Company
(including 3,364 MW through JV).
1. FINANCIAL RESULTS
Income 2010-11 2009-10
Rs. Crore US $ Mn* Rs. Crore US $ Mn*
Sale of Energy 54704.55 12095 46168.67 10207
Consultancy 169.45 37 153.92 34
Other income
(Including energy
internally consumed) 2525.49 559 2911.29 644
Total Income 57399.49 12691 49233.88 10885
Expenditure
Fuel 35373.78 7821 29462.74 6514
Employees Remuneration
& Benefits 2789.71 617 2412.36 533
Generation, Administration
& other expenses 2646.01 585 2094.03 463
Interest 1386.71 307 1070.96 237
Finance charges 762.37 168 737.97 163
Depreciation 2485.69 550 2650.06 586
Total Expenditure 45444.27 10048 38428.12 8496
Profit before tax,
provisions and prior
period adjusts. 11955.22 2643 10805.76 2389
Tax 2947.01 651 2157.26 477
Profit after tax but
before provisions and
prior period 9008.21 1992 8648.50 1912
Less:
Prior Period
Adjustments (Net) (1638.72) (362) (77.83) (17)
Provisions (Net) 1544.34 341 (1.87) -
Net Profit after tax 9102.59 2013 8728.20 1929
Appropriations:
Transfer to Bonds
Redemption Reserve 494.94 109 497.78 110
Interim Dividend 2473.63 547 2473.64 547
Proposed Dividend 659.63 146 659.63 146
Tax on Dividend 514.77 114 527.62 117
Transfer to General
Reserve 5200.00 1150 4750.00 1050
Transfer to
Capital Reserve 6.87 2 4.97 1
*1 US $= Rs. 45.23 as on March 31, 2011
2. FINANCIAL PERFORMANCE
2.1 Income
The total income of your company for the year increased by 16.59% to Rs.
57,399.49 Crore from Rs. 49,233.88 Crore during the previous year.
2.2 Profit After Tax:
The profit after tax but before provisions and prior period adjustments
increased by 4.16% to Rs. 9008.21 Crore from Rs. 8648.50 Crore. Net profit
after tax increased to Rs. 9102.59 Crore from Rs. 8728.20 Crore registering
a growth of 4.29% over last year.
3. DIVIDEND
3.1 Interim and Final Dividend:
In addition to interim dividend of Rs. 3.00 per equity share paid in
February 2011, your Directors have recommended a final dividend of Rs.
0.80 per equity share for the year 2010-11. The total dividend for the
year is Rs. 3.80 per equity share of Rs. 10/- each which is equal to the
amount of dividend paid last year. The total dividend payout for the
year amounting to Rs. 3133.26 Crore represents 34.42% of the profits
after tax. The total dividend payout including dividend tax accounts
for 40.08% of profit after tax. The final dividend shall be paid after
your approval at the Annual General Meeting. The dividend has been
recommended in accordance with your Company's policy of balancing
dividend payout with the requirement of deployment of internal accruals
for its growth plans.
Your Directors believe that growth of the company through capacity
addition, backward and forward integration and strategic
diversification of its operations would lead to increase in
shareholders' value.
4. OPERATIONAL PERFORMANCE
4.1 Generation:
During the year, the power stations of your Company generated 220.54 BU
of electricity which was 27.19% (29.18% including JVs) of the total
power generated in India. The power generated by the company has
registered an increase of 0.77% over the previous year's generation of
218.84 BU. Your Company (including JVs) contributed 16.93% of the
generation increase in the country during the year. The total
generation contributed by coal stations is 195.28 BU during the year
against generation of 191.26 BU last year registering a growth of 2.1%.
Generation from coal station could have been still higher but for an
unprecedented generation loss of 5.94 BU due to less grid demand. The
gas stations having commercial capacity of 3,955 MW achieved annual
generation of 25.26 BU at a PLF of 71.77 as against 27.58 BU last year
due to lowergrid demand which resulted in generation loss of 7.29 BUs.
The average availability of gas based stations of the year was 92.60%
as compared to 90.64% during previous year. The coal based stations of
your company operated at average Plant Load Factor (PLF) of 88.29%
(National PLF 75.08%) and average Availability Factor of 91.67% on bar
during the year. As on 31.03.2011, your Company has an installed coal
based capacity of 26,875 MW excluding 1,424 MW from JV Projects. During
the year, 10 coal based stations out of 15 achieved more than 90% PLF
including three stations registering PLF above 95%.
A detailed discussion on the operations and performance for the year is
given in the "Management Discussion and Analysis", Annexure-I included
as a separate section to this report.
5. COMMERCIAL PERFORMANCE
5.1 Realisation of Dues:
During theyear, your Company realized 100% payment of current bills
raised for sale of power for the eighth successive year. All the
beneficiaries are paying within 30 days of billing except UPPCL, BSEB
and JSEB which are making payment within the permissible 60 days
period.
5.2 Rebate Scheme/ One Time Settlement Scheme for realization of dues:
An innovative rebate scheme of providing incentive for early payment
based on provisional bill has helped in achieving early realization of
dues. All the beneficiaries have established and are maintaining
Letters of Credit (LC). As on date, your Company has monthly LCs of Rs.
4386.03 Crore. RBI, on behalf of State Governments, serviced
redemptions due on bonds and half-yearly interest installments on bonds
in time as per One Time Settlement Scheme. The matter of securitization
of outstanding dues amounting to Rs. 1310.83 Crore pertaining to DESU
period payable by Government of NCT of Delhi is under active
consideration by the Ministry of Power.
5.3 Power Purchase Agreements:
YourCompanyhad signed Power PurchaseAgreements (PPAs) for 49000 MW
capacity during the year. Government of India (Gol) has issued an
order for allocation of 50% powerto HomeStateson 17.01.2011 for 14
upcoming projects of your Company. Gol has allocated 75MW each from
Farakka III (500 MW) and Korba III (500MW) for sale outside long term
PPA. It has issued Scheme for provision of supply of electricity in 5
km area around Central Power Plants on 27.04.2010. 29 stations and
projects of your Company have been identified for this purpose and
implementation of the scheme is under progress.
5.4 Commercial Capacity:
The following units were declared commercial during the year 2010-11,
adding 1600 MW to commercial capacity of your Company
Project / Unit Capacity COD*
(MW)
Dadri, Unit#6 490 31.07.2010
Muzaffarpur**, Unit#1 110 15.10.2010
Jhajjar***, Unit#1 500 05.03.2011
Korba , Unit#7 500 21.03.2011
Total 1600
* COD- Commercial Operation Date
** In Joint Venture with Bihar State Electricity Board.
*** In joint Venture with IPGCPLand HPGCL.
5.5 Determination of Tariff:
Your Company has filed tariff petitions for the five-year period
starting 1.4.2009 before CERC for all stations in accordance with the
CERC (Terms and Conditions of Tariff) Regulations, 2009. Pending final
orders, CERC has issued provisional tariff orders for 26 stations of
your Company for the period 2009-2014.
5.6 Strengthening Customer Relationship:
Customer Relationship Management (CRM) initiative has been taken
byyourcompanytowards strengthening relationship with our customers.
Under this, regular structured interaction with customers takes place
regularly for sharing of feedbacks /experiences / expectations. These
meetings provide a platform for more interaction and sharing of
experiences for mutual benefits. Based on the feedback received from
the customers, the Company provides various support services to them,
identifies potential areas of cooperation and shares best practice on a
basis of mutuality. Besides, your Company also organized Regional
Customer Meets, State specific Business Partner Meets and GENCOs Meets
for better interaction and sharing of experience. Starting from
2008-09, NTPC has rolled out a Customer Satisfaction Index (CSI) for
gathering customers' feedback and responding to their requirement. This
initiative serves as a useful tool for further strengthening Customer
Relationship and better appreciation of our business imperatives.
6. INSTALLED CAPACITY
During the year 2010-11, your Company added 2490 MW detailed as under:
Project / Unit Capacity (MW)
NTPC owned
Dadri ,Unit#6 490
Korba ,Unit#7 500
Simhadri ,Unit#3 500
Farakka ,Unit#6 500
Under JVs
Jhajjar ,Unit#1 500
Net addition 2,490
6.1 Installed Capacity of NTPC Group:
The total installed capacity of the NTPC Group has increased from
31,704 MW at the end of financial year 2009-10 to 34,194 MW at the end
of financial year 2010-11 as tabulated below:
Owned by NTPC Capacity (MW)
Coal based projects 26,875
Gas based projects 3,955
Sub-total 30,830
Joint Ventures & Subsidiaries_
Coal based projects 1,424
Gas based projects 1,940
Sub-total 3,364
Total 34,194
Further 660 MW of Sipat Unit#1 was added in June 2011, thereby
increasing the total installed capacity to 34,854 MW.
7. CAPACITY ADDITION PROGRAM
Towards its journey to become the world's largest and best power
producer, your company has embarked upon an ambitious capacity addition
program so as to have an installed capacity of 128GW by 2032. Your
Company has adopted a multi-pronged growth strategy which includes
capacity addition through green field projects, brown field expansions,
joint ventures and acquisitions. In addition to furthering capacity
addition through Coal / Gas based thermal power projects, your company
has been pursuing enhancement of its power generation portfolio through
Hydro, Renewable Energy and Nuclear energy projects.
At present 1,320 MW Hydro capacity is under implementation togetherwith
291 MW under bidding. In its endeavor towards Greener Power, your
Company plans to add around 1000 MW from Renewable Energy Sources by
2017.
7.1 Projects under Implementation
As on 31.03.2011, Your Company's various projects having aggregate
capacity of 14,748 MW including 3,890 MW, being undertaken by Joint
Venture companies, are under construction, as detailed below:
Name of the Project Capacity(MW)
I. Project under NTPC Ltd
A. Coal Based Projects
1. Sipat-1 1980 *
2. Barh-I 1980
3. Simhadri-II 500
4. Bongaigaon-I 750
5. Mauda-I 1000
6. Barh-II 1320
7. Rihand-III 1000
8. Vindhyachal-IV 1000
Sub Total (A) 9530
B. Hydro Electric Power Projects (HEPP)_
9. Koldam 800
10. Tapovan Vishnugad 520
Sub Total(B) 1320
C. Renewable Projects
H.Singrauli CWHEPP 8
Sub Total (C) 8
Total I (A) (B) (C) 10,858
II Projects under JVs
Coal Based Projects
12. Jhajjar- JV with HPGCL & IPGCL 1000
13. Vallur-JV with TNEB 1500
14. Nabinagar- JVwith Railways 1000
15. Muzaffarpur Expansion (MTPS)- 390
JVwith BSEB
Total II 3890
Total On-Going Projects (I) (II) 14,748
* 660 MW of Sipat Unit#1 commissioned on 28.06.2011
7.2 New Projects
Your Company at present has invited bids for Main plant packages, for
18,051 MW capacity (14,460 MW NTPC owned and 3,591 MW through its JVs
and Subsidiaries). For most of the new projects, your Company is going
for setting up Super Critical units of 660 / 800 MW which have higher
efficiency and are also environment friendly. Towards this end, your
company has invited bids under Bulk tendering for 5,940 MW capacity
through 9 units of 660 MW and 7,200 MW capacity through 9 units of 800
MW respectively. Balance 4911 MW capacity, apart from 660MW units is
envisaged through coal based, Gas based, Hydro and Renewable Energy
projects.
Your Company has also taken up studies / preparation of Feasibility
Reports and is pursuing statutory clearances for various other projects
to be taken up in future once their viability is established.
In order to meet the future challenges of meeting India's electricity
needs at affordable cost with minimum environmental impact, your
Company has drawn a long term Technology Roadmap up to 2032 which
involves development, adoption and promotion of safe, efficient and
clean technologies for entire value chain of power generation business.
Some of the technologies which your Company has targeted include
setting up of coal fired units with Ultra Supercritical Parameters,
establishment of Indian Coal Based Gasifier & Gas Cleaning System for
IGCC.
NTPC has adopted various technologies like units with advanced steam
parameters for improving efficiency over that of conventional 500MW
sub-critical plants. For the new sub-critical 500 MW Units, reheat
temperature has been increased to 565 degree Centigrade resulting in
about 0.7% gain in efficiency. The Company is also adopting
technologies like flue gas desulphurization, ammonia flue gas
conditioning system, advanced dust collection technology, high
efficiency motors, energy efficient lighting system, plant C&l network
Security System etc.
7.3 Project Management - A New Approach
Your Company believes that in order to achieve its ambitious capacity
addition targets, it has to build on its capabilities and leverage its
expertise in power project execution. Accordingly, it has revised its
delegation of powers and has empowered its regions and projects to
enable faster decision making. Your Company has already established a
state-of-the-art IT enabled Project Monitoring Centre (PMC) for
facilitating fast track project implementation. PMC has some advanced
features like Web-based Milestone
Monitoring System (Webmiles), Project Review and Internal Monitoring
System (PRIMS), Enterprise-wide Issues Tracking System etc. The PMC
facilitates monitoring of key project milestones and also acts as
Decision Support System for the management. Features like SMS based
information Delivery, Real time Video Capture, Storage & Retrieval
Facility and Video Conference Facility are extensively utilized for
project tracking, resolution of issues and management interventions.
Other Initiatives:
Your Company has signed MOU with Government of Punjab and Punjab Power
Corporation Limited to set up 2640MW power project at Gidderbaha in the
State of Punjab.
Another MOU has been signed with Government of Madhya Pradesh and MP
Tradeco Limited to set up 3960 MW power project at Barethi, Distt.
Chhatarpur, Madhya Pradesh.
Your Company has also signed MOU with Ministry of Railways to set up
1320 MW power plant at Adra, West Bengal.
7.5 Hydro Power
75.1 Your Company is also setting up small and medium sized hydro
projects through its wholly owned subsidiary NTPC Hydro Limited (NHL).
Two such projects under development are:
Project Location Capacity
LataTapovan Uttarakhand 171 MW
Rammam-III West Bengal 120 MW
7.5.2 Your Company's Hydro Engineering Group is providing pre-award
engineering support to the above projects. It is also providing
detailed engineering support to Koldam (4X200MW) and Tapovan Vishnugad
(4X130MW) Hydro-electric Power Projects.
7.5.3 Further, in pursuance of Memorandum of Agreement signed with
Govt, of Mizoram, Detailed Project Report of Kolodyne HEPP (4X115MW)
prepared by Central Water Commission for Govt, of Mizoram and updated
by NTPC has been submitted to CEA for accord of Techno-Economic
Concurrence (TEC). CEA in its 306th meeting considered the project
proposal for accord of concurrence on 07.06.11. Formal communication
from CEA is awaited
7.5.4 Your Company has been assigned the job of preparation of Detailed
Project Report (DPR) for Amochhu Reservoir Hydro-electric Project
(620MW) in Bhutan. Survey and Investigation for DPR is in progress and
DPR is scheduled to be completed by September 2011.
8. STRATEGIC DIVERSIFICATION- INCREASING SELF- RELIANCE
8.1 In order to strengthen its competitive advantage in power
generation business, your Company also plans to diversify its portfolio
to emerge as an integrated power major, with presence across entire
energy value chain through backward and forward integration into areas
such as coal mining, manufacturing activities, power trading,
distribution, etc.
Business opportunities are being continuously explored through market
scanning and new business plans are adopted accordingly.
8.2 In order to strengthen its competitive advantage in power
generation business, the Company has diversified into the area of
manufacturing through the following joint ventures:
8.2.1 NTPC-BHEL Power Projects Pvt. Limited (NBPPL), a
joint venture of your Company with BHEL, incorporated on April 28,2008
for taking up activities of Engineering, procurement and construction
of power plants and manufacturing of equipments, has acquired 750 acres
of land at Mannavaram in Andhra Pradesh. Construction at site is in
progress. The Company has bagged two contracts for EPC and Balance of
Plant for Palatana Combined Cycle Power
Plant in Tripura and Namrup Combined Cycle Power plant from BHEL on
nomination basis. Your Company is also negotiating with NBPPL for award
of EPC contract for Unchahar Stage-IV (500MW). NBPPL is also exploring
technology tie-up for Coal Handling Plant and Ash Handling Plant.
8.2.2 Another joint venture Company, BF-NTPC Energy Systems Limited was
incorporated with Bharat Forge Limited on June19, 2008 to manufacture
castings, forgings, fittings and high pressure piping required for
power projects and other industries. Land acquisition for establishing
manufacturing plant at Sholapur, Maharashtra is in progress. Business/
Technical alliances for key product lines are being actively pursued.
8.2.3 Your Company has acquired 44.6% stake in Transformers and
Electricals Kerala Limited from Government of Kerala on June 19,2009.
The Company deals in manufacturing and repair of Power Transformers.
The Company plans to augment the existing capacity to 6000MVA. For
expansion and upgradation of the facility, technology tie-up is being
pursued.
8.2.4 Apart from the above initiatives, a subsidiary of your Company
namely NTPC Electric Supply Company Limited, has commenced business of
distribution of power through its JVC namely KINESCO Power and
Utilities Private Limited, formed with KINFRA.
Please referto "Management Discussion and Ana lysis", Annexure-I
included as a separate section to this report for further details.
9. GLOBALISATION INITIATIVES
9.1 Your Company has finalized Joint Venture Agreement and Power
Purchase Agreement with Ceylon Electricity Board for setting up a
2X250MW Coal Based Power Project in Trincomalee, Sri Lanka. Joint
Venture Company with equal equity participation shall be incorporated
as soon as certain issues are resolved with Government of Sri Lanka.
9.2 Your Company has also submitted draft Feasibility Report (FR) of
1320MW Coal Based Khulna Power Project to Bangladesh Power Development
Board (BPDB). FR would be finalized after BPDB carries out the coal
sourcing study.
9.3 Joint Venture Agreement has also been finalized and approved by
NTPC Board for developing a 1320 MW coal based power project with BPDB
with equal equity participation. The same has been forwarded to BPDB
for approval at their end.
10. FINANCING OF NEW PROJECTS
The capacity addition programs shall be financed
with a debt to equity ratio of 70:30. Your directors believe that
internal accruals of the Company would be sufficient to finance the
equity com ponent for the new projects. Given its low gearing and
strong credit ratings, your Company is well positioned to raise the
required borrowings.
Your Company is exploring domestic as well as international borrowing
options including overseas development assistance provided by bilateral
agencies to mobilize the debt required for the planned capacity
expansion program.
During the year 2010-11, your Company has tied up loans of Rs. 3,479
crore including loan of Rs. 2,000 crore from HUDCO Ltd. and Rs. 1,000 crore
from HDFC Bank Limited for part funding of debt requirement in respect
of capex for next three years. In addition, loans amounting to Rs. 479
crore have also been tied with other banks to fulfill the debt
requirement for next three years.
YourCompanyhas entered into Term Loan Agreement with State Bank of
India on 07.07.2011 for Rs. 10,000 crore for financing NTPC's Ongoing
Capital Expenditure for various power generation projects including
renovation/ modernization of existing power plants.
Bonds amounting to Rs. 720 crore were raised from domestic market for
financing the capital expenditure and refinancing of the loans.
Your Company raised USD 500 million senior unsecured fixed rate 10 year
bonds under its USD One Billion MTN programme during July 2011. The
bonds carry a coupon of 5.625% p.a. payable semi- annually and are due
for maturity in July 2021.
11. FIXED DEPOSITS
The cumulative deposits received by your Company from 244 depositors as
at March 31, 2011 stood at Rs. 13.26 Crore. Further, an amount of Rs. 0.19
Crore has not been claimed on maturity by 22 depositors as on that
date.
12. FUEL SECURITY
12.1 Diversified Fuel Mix
Although coal will remain the mainstay for adding generation capacity
owing to its abundant reserves in the country, your Company is
progressively diversifying its fuel mix to increase the share of non-
fossil fuel with a view to promote sustainable energy development and
further reduce COQ intensity of power generation.
12.1.1 Coal Supplies
During the year, your Company has signed a 20 years Fuel Supply
Agreement with SCCL for supply of 10.02MMT coal to Ramagundam (2100MW),
and has entered into bilateral tie-ups with Eastern Coalfields Limited
for 2.5MMT and with SCCL for supply of 5.0 MMT of coal at a mutually
agreed price.
Your Company has also entered into an Agreement with STC for supply of
12MMT imported coal from the Financial Year 2011-12.
During the year 2010-11, your Company received 137.3 MMT of coal as
against 136.2 MMT in the previous year. Total import during 2010-11 was
10.56MMT as against 6.3MMT in 2009-10.
12.1.2 Sourcing of coal through E-auction
For supplementing/strengthening the coal supply chain for Farakka and
Kahalgaon, your Company also procured coal (0.08 MMT) through
E-auction.
12.2 Gas supplies
During the year 2010-11, your Company received 13.77 MMSCMD of gas/RLNG
as against 13.88 MMSCMD received during 2009-10. The gas off-take in
2010-11 includes 9.00 MMSCMD APM/ PMT gas, 2.86 MMSCMD RLNG and 1.91
MMSCMD of KG D6 basin gas.
Your Company renewed APM gas agreements up to the year 2021 and PMT gas
agreements up to the year 2019 for its gas stations. The long-term RLNG
supply agreement with GAIL is valid till 2019. Further, out of 4.46
MMSCMD of KG D6 gas allocated by Government of India for NCR gas
stations, viz. Anta, Auraiya, Dadri & Faridabad, 2.30 MMSCMD has
already been tied up. The balance 2.16 MMSCMD KG D6 gas is under
negotiation.
Your company has been making arrangements for tie- up/ supply of spot
RLNG/ Fallback RLNG from domestic suppliers on 'reasonable endeavour'
basis based on requirement/ availability from time to time.
12.3 Development of Coal Mining projects
Your Company has been allocated six coal blocks by the Government of
India. Further, Brahmini coal block (including Chichro-Patsimal) has
been allocated for joint operation by Coal India Limited & NTPC. All
these mining blocks together have a production potential of more than
73 million tonnes per annum.
Your Company has appointed Thiess Minecs India Private Limited as Mine
Developer cum Operator for
Pakri Barwadih Coal Mining Project.
Rehabi litation Action Plans (RAP) for these coal blocks have been
prepared in association with District Administration and Project
affected families. NTPC is providing adequate compensation and
benefits. As a regular income generating scheme for the project
affected families, 'Annuity Scheme1 has been launched in association
with LIC. Your Company is taking up community development activities
involving youth and woman empowerment; skill development; education
encouragement like scholarship to meritorious students, improvement of
school infrastructure, etc.; regular health check-up,- local area
infrastructure development schemes like installation of solar street
lights, de-silting of ponds, distribution of drinking water,
construction of community hall, road repairing work, etc. A new ITI is
being set up at Barkagaon in Hazaribagh Distt. for the project affected
persons.
In reply to Ministry of Coal (MOC) letter dated 14.06.2011 for
de-allocation for Chatti Bariatu, Chatti Bariatu (South) and
Kerandari-A coal blocks of NTPC, Brahmini & Chichro-Patsimal coal
blocks allocated to CIL-NTPC Urja Pvt. Ltd., Your Company requested MOC
for review the decision of de-allocation at the highest level. In
addition to this Secretary (Power) vide letter 07.07.11 has also
requested Secretary (Coal) to review the de-allocation of coal blocks
and restore it to NTPC.
Your Company is reviewing the proposal to explore the possibility of
using pet coke in Thermal Power Stations received from Hindustan
Petroleum Corporation Limited - Mittal Energy Investment Private
Limited.
Your Company is also receiving proposals from time to time for
acquiring coal mines abroad from Investment bankers as well as from
mine owners from countries like Indonesia, South Africa, Australia and
Mozambique. These proposals are under review and discussion with
respective parties.
12.5 Exploration Activities
Under New Exploration Licensing Policy (NELP-VIII), your Company signed
Production Sharing Contracts (PSCs) on 30.06.2010 with Government of
India for four Oil/ Gas Exploration blocks.
One of the blocks allotted under NELP-VIII is held by NTPC with 100%
participating interest and as operator. Exploration activities in this
block will commence after grant of Petroleum Exploration Licence for
which application has been made to the Government of Gujarat. Minimum
work programme commitment (MWP) for this block is Rs. 1701.6 million.
The other three blocks are held by your Company in consortium with ONGC
as operator and NTPC's participating interest is 10% in each block.
Exploration activities in these blocks have commenced during the year.
NTPC's share of MWP for these blocks is Rs. 810.3 million.
13. BUSINESS EXCELLENCE: GLOBAL
BENCHMARKING
In order to give an impetus to the journey towards
continuous improvement, NTPC Business Excellence Model 2010, (an
Internal Assessment Model for Excellence) using EFQM methodology has
been developed for the organization suitably integrating the
requirements of all stakeholders, after studying various world class
frameworks. This Internal Assessment Model has been rolled out this
year to all operating stations. An e-training module for Business
Excellence Model has been developed for providing awareness to all
employees across the organization.
For employees engagement and development, Quality Circles and
Professional Circles are given thrust by organizing competitive
conventions at three levels i.e. station, regional and national level.
Winning teams are encouraged to participate in International
Conventions. There are about 800 Quality Circles and 325 Professional
Circles. Every year one Quality Circle is being sent to International
QC Convention.
At strategic level apart from adopting NTPC Business Excellence Model,
attempt is also being made for adopting balanced score card approach by
integrating both for achieving automation of all business processes,
meetings and reviews by adopting suitable lead & lag indicators and
strategy maps.
14. RENOVATION & MODERNISATION
14.1 Need for R&M:
Renovation and modernization (R&M) of power plants in the present
scenario of severe resource constraint is considered to be the best
option for bridging the gap between the demand and supply of power as
(R&M) schemes are cost effective. To this end, renovations are being
carried out for the purpose of life extension of units, performance
improvements, capacity up rating, availability improvement, and
improved environment compliance. It increases the capacity, ensures
safe, reliable and economic electricity production by replacement of
worn-out, deteriorated or obsolete electrical, mechanical,
instrumentation, controls and protection system by state-of-the-art
equipment.
14.2 S trategy by the Company:
Your Company has approved the Strategy to be adopted for Mid Life R&M
as well as Post 25 years Life Extension of Units in coal based
stations, based on Tariff Regulations by CERC for 2009-14. R&M
activities are under implementation in the power stations of Singrauli,
Korba, Farakka Stage-I, Rihand Stage -I and Anta Gas Power Station and
the take - over plants of Talcher TPS, Tanda TPS and Unchahar Stage-1
totalling more than 7400 MW. Approvals for Mid Life R&M of Coal based
projects of Talcher Kaniha (2x500 MW), Ramagundam (3x500 MW), Farakka
(2x500 MW), Kahalgaon (4x210 MW), Vindhyachal (6x210 2x500 MW), FGLJTPP
(2x210 2x210 MW) and Singrauli (2x500 MW) are under process.
14.3 Benefits from R&M:
Through the R&M, there has been substantial improvement in PLF of Tanda
and Talcher Thermal Power Plants in comparison with the time your
Company took over these plants. The details are as under:
Name of the PLF prior to PLF in
Plant Take-over 2010-11
Tanda 21.59% 92.61%
Talcher 19.80% 94.22%
15. VIGILANCE
15.1 Viligance Mechanism:
Your Company ensures transparency, objectivity and quality in its
operation and to monitor the same, the Company has a Vigilance
Department headed by Chief Vigi lance Officer, a nom inee of Centra I
Vigi lance Commission. The four units of Vigilance Department namely
Corporate Vigilance Cell, Departmental Proceeding Cell (DIPC), MIS Cell
and Technical Cell (TC) deal with various facets of Vigilance
Mechanism. Your Company's employees also adhere to directives of CVC
by submitting record of movable and immovable property annually to CVO
office. The employees can give their suggestions and feedback for
improvement of the vigilance mechanism on Vigilance portal on NTPC
Intranet.
Your Company has commenced certain measures like publishing of post bid
details of tenders on website www.ntpctender.com, e-payments to
contractors, suppliers, employees and other parties, use of website for
recruitment process, etc to ensure transparency in the systems and
processes.
15.2 Workshops and Vigilance Awareness Week
Preventive Vigilance Workshops are being conducted every year to
sensitize employees about sensitive points and DOs and DONTs in work
areas and their role in preventing corruption.
Vigilance Awareness Week is being organized every year in first week of
November to emphasize upon leveraging IT, creating awareness for
transparency accountability, fair play and objectivity. The issues
relating to contractors are also addressed to their satisfaction during
Customer Meet organized during Vigilance Awareness Week.
15.3 Implementation of Integrity Pact
Your Company is committed to bring total transparency to its business
processes and as a step in this direction has signed a Memorandum of
Understanding with Transparency International India in December, 2008.
The Integrity Pact is being implemented for all contracts having value
exceeding Rs. 10 crore. Two Independent External Monitors have been
nominated by the Commission for all contracts with values exceeding Rs.
100 crore.
15.4 Implementation of Fraud Prevention Policy
The Fraud Prevention Policy has been formulated and implemented in your
Company since 2006. The cases referred by the nodal officers are being
investigated immediately to avoid fraudulent behaviors as defined in
the Fraud Policy.
16. HUMAN RESOURCE MANAGEMENT
16.1 Your Company takes pride in its highly motivated and competent
human resource that has contributed its best to bring the Company to
its present heights. The productivity of employees is reflected in the
consistent reduction of Man-MW ratio over the years. The over-all
Man-MW ratio for the year 2010-11 excluding JV/subsidiary capacity is
0.77 and 0.74 including capacity of JV/Subsidiary. Generation per
employee has increased to 9.27 MUs registering an increase of 0.5% over
the last year.
The total employee strength of the Company stood at 25,144 as on
31.3.2011 against 24,955 as on 31.3.2010.
FY 2010-11 FY 2009-10
NTPC
Number of employees 23,797 23,743
Subsidiaries & Joint Ventures
Employees of NTPC 1,347 1,212
in Subsidiaries & Joint
Ventures
Total employees 25,1441 24,955
The attrition rate of the executives during the year was 1.00%.
16.2 Employee Relations
During the year employees' relations climate was peaceful and
conducive. The scheme for employees' participation in management
continues to function successfully all over NTPC. There have been
continuous interactions between the management and the apex fora of
workmen and executives - National Bipartite Committee (NBC) and NTPC
Executives Federation of India (NEFI) respectively. The unions and
associations and also the individual employees complimented the efforts
of the management in developing and sustaining an enabling performance
culture in the organization. Meetings and workshops forworkmen and
executives association were held during the year wherein issues
relating to performance and productivity were discussed. The overall
employee relations scenario in NTPC continued to be cordial marked by
industrial harmony and mutual trust.
16.3 Safety
Occupational safety and Health at workplace is one of the concerns of
NTPC Management and utmost importance is given to provide safe working
environment and inculcate safety awareness among the employees.
Regular plant inspection, internal and external safety audits are
carried out at each Project/Station. Safe methods are practised in all
areas of Operation and Maintenance (O&M) and Construction & Erection
(C&E) activities. Safety task force for O&M and Construction
activities, height permit and height check list are implemented.
Qualified safety officers are posted at all units as per statutory
rules/provisions. Safety control roomsare established atal I
construction projects to monitor unsafe conditions and unsafe acts.
Through our continuous efforts in safeguarding the employees, accidents
have come down by 30% as compared to last year. Many of our plants have
been awardedwith prestigious safety awards in recognition of
implementing innovative safety procedure and practices.
16.4 Training and Development
In line with its long-term objective of being a learning organization,
your Company has continuously promoted training and development of not
only its own employees but also other professionals of the power
sector. In this effort, your Company has established Power Management
Institute (PMI) at the corporate level aswellasthe employee development
centres at the sites. Training imparted is always in tune with new
emerging needs in diverse areas like nuclear power, coal-mining,
hydro-power, super- critical technology, renewable energy etc. and for
this purpose every year some new programmes are included in the annual
calendar. Apart from this, the usual programmes include managerial
topics, power station operation & maintenance and project construction,
erection and commissioning and information technology.
Under the on-going scheme of strengthening the Industrial Training
Institutes (ITIs) across the country, your Company had taken the
initiative of adopting ITIs near its power generating stations and a
total of 18 ITIs have been adopted under this scheme till 31.03.2011.
This activity is being coordinated through PMI which is also
facilitating the construction of eight new ITIs where new projects are
coming up. Through this initiative, PMI has created 1209 extra seats in
ITIs.
During 2010-11, your Company organized the following training
programmes in power and energy sectors:
(a) A national conference on Cases & Research in Power Sector to
provide a platform for practising managers, academicians and research
scholars to develop, contribute and present real life cases and action
research from business practices in power and energy sector.
(b) Hands-on training in 660 MW simulator at PMI to 256 participants.
(c) Four Batches of 12-weeks each of the flagship programme on "Thermal
Power Generation" for internal participants as well as external
clients.
(d) The Strategic Management Initiative for Leadership & Empowerment
(SMILE) programme for Executive Directors of NTPC during March 14 -17,
2011 which was attended by 15 participants. The programme revitalized
the vision for developing strategic orientation and sustainable
leadership practices in the organization.
(e) Internationally accredited prestigious programme - American Society
of Mechanical Engineers (ASME) Boiler and Pressure Vessel Code Section
VIII Div. 1- by PMI faculty authorized by ASME.
(f) An international conference on O&M of power stations was held
wherein several technical papers were presented for experiential
learning by professionals from power sector companies of India as well
from other countries.
(g) 396 training programmes were conducted with a participant base of
9,130. The training mandays clocked was 55,737.
17. INCLUSIVE GROWTH
17.1 Corporate Social Responsbility:
Your Company has always discharged its social responsibility as a part
of its Corporate Governance philosophy. It follows the global practice
of addressing CSR issues in an integrated multi stake- holder approach
covering the environment and social aspects.
With a view to address the domains of socio- economics issues at
national level and in line with its Corporate Social Responsibility -
Community Development Policy, your company has taken up various
activities.
Initiatives undertaken by the Company:
As most of the stations of your Company are located in remote rural
areas, various activities were taken up essentially in the areas of
basic infrastructure development like primary education, community
health, drinking water, sanitation, road, vocational training etc.
In the area of Education, Financial assistance is being
given to Ramakrishna Mission for conducting various activities under
the banner "Awakening India" heralding the 150th Birth Anniversary
celebration of Swami Vivekananda.
Further, financial contribution was given to Sri Vedmata Gayatri Trust
for construction of School cum Multipurpose Building in Village
Shaulana, Distt. Ghaziabad, UP; and to District Administration,
Visakhapatnam for preparation and development of Audio Study material
for Visually Challenged Persons.
NTPC took up various vocational training programmes, such as web page
designing and computer training, motor rewinding, motor driving,
general electrical repairing, and mobile repairing etc. for youth and
various coaching classes etc. for village children, based on the need
of the local community in the neighbourhood of its stations.
In order to contribute in the Conservation of selected National
Monuments, NTPC has committed financial support to Archaeological
Survey of India (ASI) and National Culture Fund (NCF) for conservation
of 3 identified sites.
As regards women empowerment, construction of one floor of Girls Hostel
in Guntur district of AP has been completed, the same at Ongole is
nearing completion. Various vocational training programmes for women in
the neighbourhood villages of its stations including Cutting,
Tailoring, Stitching, Dress Designing, Beautician, Embroidery, food
preservation and food processing etc. were taken up. Financial support
to Centre of the Study of Values, Udaipur was extended for vocational
training in self reliance for 500 tribal girls/ women Udaipur district.
Committed to its social responsibility, your Company had become a
member of Global Compact, a voluntary initiative of the UN for CSR.
Your Company confirms its involvement in various CSR activities in line
with 10 Global Compact principles and shares its experience with the
representatives of the world through "Communication on Progress".
A report on progress made in this area is enclosed at Annex-IXto
Directors' Report.
17.2 NTPC Foundation
NTPC Foundation, registered in December 2004, is engaged in serving and
empowering the physically challenged and economicallyweaker sections of
the society.
Initiatives undertaken by the Company:
The Information and Communication Technology
(ICT) Centre, set up jointly by NTPC Foundation and University of
Delhi, and similar ICT facilities to the blind schools in Lucknow,
Ajmer, Thiruvanathapuram and Mysore are helping a large number of
physically challenged students to learn IT Skills and move along with
the mainstream society.
NTPC Foundation-NIOH Disability Rehabilitation
Centre(NFNDRC)establishedatTanda in collaboration with National
Institute for the Orthopaedically Handicapped (NIOH), Ministry of
Social Empowerment, Govt of India is providing rehabilitation/
restorative surgery to physically challenged persons like medical
interventions and surgical corrections, fitting of artificial aids and
appliances and therapeutic services etc.
New Disability Rehabilitation centers have been started at 4 more
stations at Dadri, Korba, Rihand and Bongaigaon.
In the area of health, Directly Observed Treatment cum Designated
Microscopy Centre (DOT cum DMC) with Mobile Vans, diagnostic equipments
and paramedical services have been started at 10 NTPC hospitals in
Farakka, Kahalgaon, Korba, NCPP-Dadri, Ramagundam, Rihand, Singrauli,
Talcher-Kaniha, UnchaharandVindhyachal respectively for diagnosis and
treatment of the Tuberculosis patients in the neighbourhood villages of
the stations. New centre has been started in 2 more stations i.e. at
Anta and Sipat.
NTPC is also supporting the efforts of Distributed Generation (DG) for
preparation of feasibility reports, project insurance and bridging the
funding gap between cost of the projects and available funds, through
NTPC Foundation.
15 projects have been supported in the past benefiting 2153 households.
17.3 Rehabilitation & Resettlement
Your Company is committed to help the populace displaced for execution
of its projects and has been making efforts to improve the
Socio-economic status of Project Affected Persons (PAPs). In line to
meet its social objectives, your Company is focusing on effective R&R
of PAPs and undertaking community development activities in and around
the projects.
Initiatives undertaken by the Company:
During the year, R&R Policy has been revised aligning it with the
provisions of GOI National Rehabilitation & Resettlement Policy 2007
and retaining its learnings and well structured mechanism in the area
of R&R.
R&R Plan for Meja and Community Development (CD) for Bongaigoan project
were approved during the year. Other R&R and CD Plans in process for
the projects/ plants continued to be implemented.
Socio-economic Survey was completed for Mouda- II, Kudgi, Marakkanam
and Nabinagar STPP and is in progress at Muzaffarpur, Darlipalli,
Gajamara, Barethi, Lara, Gadarwara and Khargone Projects.
18. IMPLEMENTATION OF OFFICIAL LANGUAGE
Your Company has made vigorous efforts for the propagation and
successful implementation of the Official Language Policy of the
Government of India. Several Hindi workshops, meetings, conferences
and competitions were conducted at projects, regional offices and
corporate centre during the year to encourage the employees to maximize
the use of Hindi in official work. All office orders, formats and
circulars were issued in Hindi as well. Important advertisements and
house journals were released in bilingual form- in Hindi and in
English. Annual Rajbhasha Conference was organized on 8th June 2010 for
Hindi Officers under the Chairmanship of Director (Human Resources). To
promote Hindi in Power Sector Meeting of Hindi Advisory Committee was
held in Coorg under the Chairmanship of Minister of Power.
Your Company's website also has a facility of operating in bilingual
form- in Hindi as well as in English.
19. SUSTAINABLE ENERGY DEVELOPMENT
Vision Statement on Sustainable Energy Development:
"Going Higher on Generation, lowering GHG intensity"
Initiatives undertaken by the Company:
Your Company is committed for development of renewable energy in view
of global warming and fast depletion of fossil fuel.
Your Company envisages capacity addition of 1000 MW through renewable
energy sources by 2017. These include wind, solar and small hydro
based capacities. In this endeavor, Ministry of Power has allocated
105MW (Phase-I) of unallocated thermal power from upcoming projects of
NTPC for bundling with solar energy being generated from NTPC's Solar
Projects. Potential sites for 50MW have already been identified within
NTPC's generating stations and land for balance capacity have been
identified in Madhya Pradesh and Andaman & Nicobar.
Your Company has initiated competitive bidding process for
implementation of 25MW solar projects and for the remaining projects.
Detailed Project Reports are being finalized.
Solar based projects in Karnataka, Gujarat and Rajasthan for total
capacity of 195MW are under preliminary stages of development.
As a measure to hedge against volatile fuel prices and the uncertain
cost of complying with future environmental regulations, bids have been
opened and are under evaluation for award for 39 MW Wind Energy
Projects at Chakala in Maharashtra, 36MW at Modurgudda in Karnataka and
100MW at Guledagudda in Karnataka.
Your Company has already commissioned 15DG projects with cumulative
capacity of 300KW at Chattisgarh, Uttar Pradesh, Rajasthan and Madhya
Pradesh. One micro hydro based DG project of 2X20 KW is under
construction at Nakkiya in Chattisgarh which is scheduled to be
commissioned by December 2011.
Your Company has signed the Joint Venture Agreement with ADB & Kyushu
for power generation (500MW) through renewable energy sources. Joint
Venture Company would be incorporated soon.
20. NETRA - R&D Mission in Power Sector
NTPC Energy Technology Research Alliance (NETRA) focuses on areas such
as Climate Change, Waste Management, New & Renewable Energy, Efficiency
improvement, scientific support to stations, Cost reduction and
reliability of stations.
In order to provide utmost benefits to the stations, projects like
Artificial Intelligence based plant performance advisory system,
real-time advisory system for maintaining boiler water chemistry
parameters, Radio frequency Identification (RFID) based fish plate
removal detection system, etc have been successfully completed and
deployed/tested at stations.
Research Advisory Council (RAC) comprising eminent scientists and
experts from India and abroad is in place to steer high-end research.
Scientific Advisory Council (SAC) with Regional Executive Directors &
Station Heads as its members provides directions for improving plant
performance & reducing cost of generation. Meetings of both the
Advisory Councils were held periodically where members deliberated on
various project activities and gave guidelines for implementation of
suggestions. Applications for 15 patent applications are in advanced
stage of processing. NETRA provides technical support to all NTPC
stations as well as other Utilities to improve their performance.
As a part of establishing state-of-the art facilities for condition
monitoring and diagnostic techniques, facilities like phased array,
lon-chromatograph, alloy analyzer, High Pressure Liquid Chromatography
(HPLC), 8 sensor solar radiation station, etc have been procured and
installed at NETRA. To further expand the infrastructure creating
laboratories and facilities, etc, the Phase II building activities are
in advanced stage.
NETRA is in the process of entering into a MOU with KFW, Germany for
establishing solar & PV research facilities at NETRA.
21. ENVIRONMENT MANAGEMENT - CONTINUOUS IMPROVEMENTS
21.1 YourCompanyispursuingtheobjective of sustainable power
development. It has taken a number of initiatives towards protection of
the environment by providing advanced environment protection control
systems, regular environment monitoring and judicious use of natural
resources, adoption of high efficiency technologies such as super
critical boilers for the up-coming Greenfield projects. High efficiency
Electro-static Precipitators (ESPs) with efficiency of the order of
99.9% or higher and advanced ESP control systems have been provided in
all coal based plants to keep suspended Particulate Matter (PM) below
the permissible level of 150 mg/ Nm3. All new plants are being provided
with ESPs designed for outlet dust burden of below 100 mg/ Nm3. R&M of
ESP is also underway in old units by providing additional collection
area, advanced controllers and replacement of electrodes etc to keep PM
values within limits. Flue Gas Conditioning (FGC) system has also been
provided at our older stations as a short term measure to reduce PM
emissions.
To treat the waste water and reduce consumption of fresh water
requirements for the plants, your Company has installed Liquid Waste
Treatment Systems, Ash Water Recirculation System and closed cycle
condenser cooling water systems with higher Cycle of Concentration
(COC) in its stations. The Company is using 3 R's (Reduce, Recycle &
Reuse) as guiding principle for reduction in consumption of water.
Further, treated waste water is used in various plant systems resulting
in reduction of fresh water
requirement. This has resulted in considerable reduction in fresh water
intake by 20% to 30% and also reduction in quantity of effluent
discharge from the power plants.
Ash dykes in the Company have been engineered to ensure that all safety
and environment issues are addressed at design stage itself.
Multi-lagoon ash ponds with provision of over-flow Lagoons and ash pipe
garlanding arrangement for change over of ash slurry feed points have
been provided for effective settlement of ash particles. Water
sprinklers have been provided in the Ash Pond areas for control of
fugitive dust.
As a proactive measure and to effectively utilize bio- degradable solid
wastes generated in project canteens and townships, Bio-Methanation
Plant has been set up at Faridabad and Singrauli to convert the waste
into useful energy and bio-fertilizer. Methane generated from these
plants is used in canteens to reduce energy requirement for cooking
purpose.
In order to monitor key environmental parameters of
stackemissions,ambientairandeffluentscontinuously on real time basis,
61 continuous Ambient Air Quality Monitoring System (AAQMS) along with
Meteorological Sensors have been installed at 20 stations located all
over India.
To understand impact of power plants on flora & fauna and human beings,
your Company has taken up a number of Environment Studies such as Human
Health Risk Assessment, Fly Ash Leachate Study, pollutant Source
Apportionment Study and Post Operational Environment Impact Assessment
Study at various stations.
Your Company has planted more than 19 million trees till date in and
around its projects as a measure to take massive afforestation. The
afforestation has not only contributed to the 'aesthetics' but also
helped in carbon sequestration by serving as a 'sink' for CO2 released
from the stations.
21.2 Clean Development Mechanism (CDM)
Your Company is pioneer in undertaking climate change issues
proactively The Company has taken several initiatives in CDM Projects
in Power Sector. Its projects i.e. Northkaranpura STPP and Tapovan
Vishnughad HEPP & energy efficiency projects at Singrauli STPP have got
Host Country Approval from National CDM Authority. The methodology
prepared by NTPC viz. "consolidated base line and monitoring
methodology for new grid connected fossil fuel
fired power plants using less GHG intensive technology" for Super
Critical technology has been approved by "United Nations Frame Work
Convention on Climate Change (LJNFCCC)" under 'Approved Consolidated
Methodology 13'. More green field energy efficiency CDM projects are in
pipeline.
21.3 Ash Utilisation
During the year 2010-11, 26.03 million tonne of ash had been utilized
for various productive purposes which is 55.14% of the total ash
generation against MoU target of 55%.
Important areas of ash utilization are - cement & asbestos industry,
ready mix concrete plants (RMC), Road Embankment, Mine filing, Ash Dyke
Raising & Land Development. Issue of fly ash to cement, RMC and other
industries has been 9.88 Million Tonnes.
Pond ash is being issued free of cost to all ash users from all NTPC
Stations. Fund collected from sale of ash is being maintained in a
separate account by the subsidiary company i.e. NTPC Vidyut Vyapar
Nigam Limited and the same is being utilized for development of
infrastructure facilities, promotion and facilitation activities to
enhance ash utilization.
21.4 CenPEEP - towards enhancing efficiency
'Center for Power Efficiency and Environmental Protection' (CenPEEP),
was set up to take initiatives to address climate change issues. It is
a symbol of NTPC's proactive approach towards Greenhouse Gas (GHG)
reduction and commitment towards environmental protection. The centre
has been entrusted with some of the Strategic Initiatives such as
improvement in Efficiency and reliability. The thrust has been given to
efficiency improvement through customized Energy Efficiency Management
System (EEMS) and reliability through 'Knowledge Based Maintenance'.
The activities include use of advanced analytical tools for efficiency
gap analysis, combustion optimization, improvement in performance of
condenser, cooling tower, coal mills and air-preheater, maximization of
condition based maintenance through systematic 'Predictive Maintenance
Program', Reliability improvement strategies by Failure mode analysis
through Reliability Centered Maintenance (RCM) and risk mitigation by
Financial Risk Optimization (FRO).
Through these efforts, over the years, more than 30 million tons of C02
has been avoided in NTPC. The technical assistance to CenPEEP has been
provided by USAID through USDOE and various other US
institutes. CenPEEP has shared its knowledge and expertise of best
practices with 14 State utilities in order to improve their efficiency
and reduce carbon footprint.
A project on 'Study on enhancing Efficiency of Operating Thermal Power
Plants in NTPC-lndia' was completed with Japan International Agency for
Cooperation (JICA) where technical assistance was provided by experts
from a consortium of three Japanese utilities namely Electric Power
Development Co., Kyushu Electric Power Co. and The Chugoku Electric
Power Co.
22. RURAL ELECTRIFICATION
NTPC through its wholly owned subsidiary NESCL is carrying out the
implementation of rural electrification in 29 districts in 5 States
namely Madhya Pradesh, Chhatisgarh, Orissa, Jharkhand and West Bengal
under Rajiv Gandhi Grameen Vidyutikaran Yojna (RGGW). 4315
un-electrified/ de-electrified (UE/DE) villages were made ready and
12.52 lac Below Poverty Line Rural household connections were provided
during the Financial Year 2010-11.
The cumulative achievement till 31.03.2011 includes 14433 UE/DE
villages which have been electrified and 23.23 lac BPL connections have
been provided.
Besides above, 4443 partially electrified villages were also made ready
during the financial year 2010- 11. The cumulative achievement of PE is
11279 till 31.03.2011.
23. RIGHT TO INFORMATION
Your Company has implemented Right to Information Act, 2005 in order to
provide information to citizens and to maintain accountability and
transparency. The Company has put RTI manual on website for access to
all citizens of India and has designated a Central Public Information
Officer (CPIO), an Appellate Authority and APIOs at all projects/
stations/ offices of NTPC.
During the year 2010-11, 831 applications were received under the RTI
Act, out of which 813 applications were replied to. Twelve Workshops on
RTI Act have been conducted at regional headquarters/ stations to share
and deliberate on latest notifications, amendments and other issues for
smooth implementation apart from the APIO's Conference held in June
2010. An interaction session with the Delegates from Commonwealth
countries was also organized on 09.02.2011.
24. USING INFORMATION AND COMMUNICATION TECHNOLOGY FOR PRODUCTIVITY
ENHANCEMENT
Your Company has implemented an Enterprise Resource Planning (ERP)
package covering maximum possible processes across the organization
including subsidiaries. In addition to core business processes and
Employee Self Service functionality, the ERP solution also includes
e-procurement, Knowledge Management, Business Intelligence, Document
Management and workflow etc. To take care of the need for process data
at desktop for analysis and monitoring, PI system has been implemented
at all plants in operation. PI based applications for real time
performance monitoring analysis have been implemented at many locations
and the remaining locations will be covered soon.
Network connectivity has been strengthened using Multi-Protocol Label
Switching- Virtual Private Network (MPLS-VPN). Bandwidth of
communication network has now been doubled to make ERP operation
faster. Further, a parallel communication network from alternate
service provider is being arranged toensure maximum reliabilityand
availability of communication network.
A state-of-the-art Data Centre and centralized server facility to cater
the entire NTPC is in operation at NOIDA. A disaster recovery centre is
also functional at Hyderabad.
Your company has already implemented Video conferencing at all NTPC
Plant locations and subsidiaries which is being extensively used for
Management Committee Meetings and Project Monitoring on regular basis.
This facility at PMI is also now being used for conducting virtual
class room coaching for students located at NTPC sites.
25. NTPC GROUP: JOINT VENTURES AND SUBSIDIARIES
YourCompanyhasformed18jointventure Companies and 5 subsidiary Companies
for undertaking specific business activities. The name of Pipavav Power
Development Company Limited, a wholly owned subsidiary of NTPC has been
struck off from the Registrar of Companies, NCT of Delhi & Haryana
w.e.f. 28.01.2011 pursuantto Section 560 of the Companies Act, 1956.
As such, the Company stands dissolved w.e.f. 28.01.2011.
The names of Subsidiaries and Joint Venture
The performance of these Companies as well as the consolidated
financial statements are briefly discussed in the Management Discussion
& Analysis section. The financial statements of subsidiary Companies
along with the respective Directors' Report are placed elsewhere in
this Annual Report.
26. STATUTORY AND OTHER INFORMATION REQUIREMENTS
Information required to be furnished as per the Companies Act, 1956,
Listing Agreement with Stock Exchanges, Government guidelines etc. is
annexed to this report as below:
Particulars Annexure
Management Discussion & Analysis I
Report on Corporate Governance II
Information on conservation of energy, III
technology absorption and
foreign exchange earnings and outgo
Information as per Companies IV
(Particulars of Employees) Rules,
1975**
Statement pursuant to Section 212 of V
the Companies Act, 1956 relating
to subsidiary companies
Statistical data of the grievances VI
Statistical information on persons VII
belonging to Scheduled Caste / Tribe
categories
Information on Physically Challenged VIII
persons
UNGC-Communications on progress IX
2010-11
Project Wise Ash Utilisation X
**INFORMATION AS PER COMPANIES (PARTICULARS OF EMPLOYEES) RULES, 1975
Ministry of Corporate Affairs, through Notification G.S.R. 289(E) dated
31st March 2011 has amended the Companies (Particulars of Employees)
Rules, 1975 by providing that the information required under Section
217(2A) of the Companies Act, 1956 read with the Companies (Particulars
of Employees) Rules, 1975 shall be required to be provided for those
employees whose remuneration is more than Rs. 60 lac per financial year,
if employed for whole of the year or more than Rs. 5 lac per month, if
employed for part of the year. The said Notification further provides
that in case of Government Companies such particulars are not required
to be included in the Board's Report. However, such particulars shall
be made available to the shareholders on a specific request made by
them during the course of Annual General Meeting to be held on
20.09.2011.
27. STATUTORY AUDITORS
The Statutory Auditors of your Company are appointed by the Comptroller
& Auditor General of India. M/s Dass Gupta & Associates, K.K. Soni &
Co., Varma & Varma, Parakh & Co., B.C. Jain & Co. and S.K. Mehta & Co.
were appointed as Joint Statutory Auditors for the financial year
2010-11.
28. MANAGEMENT COMMENTS ON STATUTORY AUDITORSÃ REPORT
The Statutory Auditors of the Company have given an un-qualified report
on the accounts of the Company for the Financial Year 2010-11.
29. REVIEW OF ACCOUNTS BY COMPTROLLER & AUDITOR GENERAL OF INDIA
The Comptroller & Auditor General of India, through letter dated
20.05.2011, has given 'NIL' Comments on the Financial Statements of
your Company for the year ended 31st March 2011 under section 619(4) of
the Companies Act, 1956. As advised by the Office of the Comptroller &
Auditor General of India (C&AG), the comments of C&AG for the year
2010-11 are being placed with the report of Statutory Auditors of your
Company elsewhere in this Annual Report.
30. COST AUDIT
As prescribed under the Cost Accounting Records (Electricity Industry)
Rules, 2001, the Cost Accounting Records are being maintained by all
stations of the Company since the year 2002-03. The cost audit for the
year 2010-11 has been completed and the Cost Audit reports are being
submitted by the Cost Auditors.
31. BOARD OF DIRECTORS
Shri Arup Roy Choudhury has taken over as Chairman & Managing Director
of your Company w.e.f. September 1, 2010. Shri R.S. Sharma ceased to
be the Chairman & Managing Director of your Company with effect from
31.08.2010 on attaining the age of superannu
Mar 31, 2000
Not Available