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NTPC Ltd. ನಿರ್ದೇಶಕರ ವರದಿ

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:

-    Declared 2,180 MW Power Projects (including subsidiaries) on commercial generation.

-    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.

-    Excellent MOU rating by Government of India for the year 2017-18.

-    Group Capital Expenditure (CAPEX) including CAPEX of JV/ subsidiaries of your Company for the year 2018-19    was Rs. 33,494.24 crore and on stand-alone was Rs. 27,363.24 crore on cash basis.

-    100% realization of current bills from customers.

-    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.

-    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.

-    Cash contribution of Rs. 7017.40 crore to Government of India’s exchequer through dividend, dividend distribution tax and income tax in the financial year 2018-19.

-    Market capitalization of Rs. 1,33,922.83 crore as on 31.03.2019.

-    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.

-    About 4.54 crore fly ash bricks produced by fly ash brick plants of your Company’s stations, which are being utilised in construction of areas of plant, ash dyke and of township.

-    Your Company is one of the Best Workplaces (19) in Asia 2019 in the category of the “25 Best Large Workplaces in Asia, 2019” by the Great Place to Work Institute.

-    Your Company was conferred with The Dun & Bradstreet Infra Award-2018 for Excellence in Power Generation.

-    Your Company was felicitated at the Economic TimesRs. 5th Annual Summit -”Power Focus” 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

 

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.    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.    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 Power’s Account on 01.04.2019, thus making Ministry of Power’s 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 Company’s Dividend Distribution Policy which is available at the website link https:// www.ntpc.co.in/sites/default/files/downloads/ DividendDistributionPolicyofNTPCLimited.pdf.

5.    OPERATIONAL PERFORMANCE

During the year, the power stations of your Company generated 274.45 BUs (305.90 BUs including JVs & Subsidiaries) of electricity (including solar, hydro, wind & 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 & Subsidiaries) over the previous years’ generation of 265.80 BUs by your Company (294.27 BUs including JVs & 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 Company’s RE stations (Solar, wind, small hydro) was 1.54 BUs.

6.    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 Company’s 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 & 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 Group’s 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 & Subsidiaries

 

Coal based projects

5174

Gas based projects

1,967

Sub-total

7,141

Total

52,866

6.3    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 Company’s 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    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    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 other’s 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 customer’s 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    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 & 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) & 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 & 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 & 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 & 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 Hon’ble Supreme Court dated 07.05.2014.

8.2 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.

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 Company’s 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    Biomass Co-firing for reducing greenhouse emission & 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    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 & leverage Government of India’s effort towards realising Swachh Bharat Mission (SBM) thereby ensuring pollution free environment to people’s health and welfare.

Your Company has successfully revamped & made it functional the “Waste to Compost” plant at Karsara, Varanasi and now managing Operation & 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 & 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    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    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    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 Company’s 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    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    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    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    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    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.

 

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 & 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) & 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.

 

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.

 

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.    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.    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.    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 Hon’ble 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 Hon’ble 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 Company’s 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)    EpC Mode: These projects are Company’s own projects with its own investment. These projects are set up in surplus land/ reservoirs in the Company’s 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)    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.

- NTPC’s 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 & 50% equity of BSPGCL in NPGCL on June 29, 2018. With this acquisition, KBUNL & 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    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    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 & 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.

 

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 Yojana and Agricultural & 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 “Online High Power Test Laboratory” 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.

 

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 & 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 & Sindri project was awarded to Technip & 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.

 

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    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 & 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 Company’s Stations, Projects and Regional HQs to promote the usage of EVs.

9.5    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. 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    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    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 “From Concept to Commissioning and beyond....” such as in Engineering, Operation & Maintenance Management, Project Management, Contracts & Procurement Management, Quality Management, Training & Development, Solar & 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:

-    Owner’s Engineers Services & Project Management Services- 18,204 MW

-    O&M Services / O&M studies (Performance Improvement Plan (PIP) & Gap Analysis) - 18,830 MW

-    Due diligence of stress assets- 12,640 MW

-    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 Company’s experts.

On the domestic front, Consultancy Wing is providing “Complete Owner’s Engineer Services for implementation of 2X660MW Khurja STPP from concept to commissioning” to THDC. It is also providing “Post Award review engineering and QA&I Services” 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 company’s JVs for FGD Systems, Project Management, FR/DPR Preparation, Procurement & 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

-    Consultancy wing received orders of Rs. 227 Cr .

-    About 24 nos. assignments pertaining to FGD & ESP augmentation works amounting to around Rs 92 Cr. are under various stages of execution.

-    Post Award Review Engg. & Project Management services at (1X660MW) Panki Extn. TPP of UPRVUNL.

-    Complete Engineering Services for implementation of (2X660MW) Khurja STPP from Pre-award till commissioning of THDC.

-    Review Engineering services of (2X660MW) Obra Extn. TPS & (2X660MW) Jawaharpur TPS

Consultancy Wing is looking ahead for future business opportunities in areas such as Solar & Renewable power projects and O&M for power plants of other utilities in addition to new assignments as Owner’s Engineer for major power projects, FGD & ESP R&M business for meeting new environmental norms etc.

12.    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.    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

-    Your Company entered into long term Fuel Supply Agreement with Coal India Limited (CIL) & Singareni Collieries Company Limited (SCCL) for total Annual Contracted Quantity (ACQ) of 158.17 MMT & 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.

-    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.

-    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 “Flexibility in utilization of domestic coal for reducing cost of power generation”. 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.

-    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 & KD- old) and sampling at unloading end of all your Company’s 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.

-    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) & 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 & ECL (ii) Lara with MCL & SECL and (iii) Darlipalli with MCL & SECL. For other projects, as and when COD is declared MOU will be signed.

14.1.2    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    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 & 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    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 & Spot RLNG off-takes during 2018-19 were 0.13 & 0.86 MMSCMD respectively.

-    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 Company’s books of accounts got cleared.

- For additional gas requirement over and above the supplies under long-term domestic gas & RLNG agreements, your Company has been making arrangements for supply of Spot RLNG from domestic suppliers on ‘Reasonable 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 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 & 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 Company’s 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 Limited’s 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 Hon’ble 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 Nov’19.

In the above five coal blocks i.e. Pakri-Barwadih, Dulanga, Talaipalli, Chatti-Bariatu & 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 & 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 & 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 & 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 & State of J&K by MoC, GoI. Joint Venture Agreement between your company & JKSPDCL has been signed on 15.06.15 for incorporation of a Joint Venture Company for Exploration, Development & 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 ‘NTPC 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 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 & 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 & 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 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 51 Units in 11 Stations namely Tanda -(4x110MW), Singrauli - I & II (5X200MW+2X500MW), Korba - I & II (3X200MW+3X500MW), Farakka - I & II (3X200MW+2X500MW), Vindhyachal - I & II (6X210MW+2X500MW), Rihand - I (2X500MW), Unchahar

-    I (2x210MW), Talcher TPS-II (2X110MW), Talcher STPS

-    I & 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 & Instrumentation (C&I) has been taken up in 9 coal based stations namely Singrauli-I (5X200MW) & Singrauli - II (2X500 MW), Korba -I (3X200MW) & Korba - II (3X500 MW), Ramagundam -I (3X200MW) & Ramagundam - II (3X500MW), Farakka-I (3X 200 MW) & 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 & 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 Company’s 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 & Joint Ventures

 

Employees of NTPC in Subsidiaries & 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    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. 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 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.

17.3    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 “National Safety Day” 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 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 & 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 & 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 Company’s plants have been awarded with prestigious safety awards conferred by various Institutions/ Bodies 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.

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 Company’s 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 employees’ knowledge up-gradation.

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. 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 & 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.    To make fundamental changes in the way we operate our businesses to transform ourselves as the most sustainable power producer.

b.    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 Company’s 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 Company’s Corporate Plan 2032. To start with reducing water footprint, a cross functional water committee has been formed to do benchmarking of the Company’s 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 & 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    inclusive Growth -initiatives for Social Growth

18.1.1    Corporate Social Responsibility:

CSR has been synonymous with your Company’s core business of power generation. Your Company’s spirit of caring and sharing is embedded in its mission statement. Your Company 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. 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 “NTPC policy for CsR & sustainability” 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 Company’s CSR & Sustainability activities are Health, Sanitation, Safe Drinking Water, Education, Capacity Building, Women Empowerment, Social Infrastructure livelihood creation and support through innovative agriculture & 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 & Sustainability activities is being given to local areas around Company’s operations, ensuring that majority CSR funds are spent for activities in local areas. However, considering Inclusive Growth & 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 Company’s various CSR initiatives at different locations. Your Company’s 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    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    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 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 Company’s 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 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 ‘The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013’ (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 & 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 & 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:

-    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 projects under construction is being undertaken.

-    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.

-    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).

-    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:

“To provide cleaner energy by committing to highest possible levels of performance in environmental compliance, practices and stewardship.”

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 & Water source) and technology. In case of old stations, your Company undertakes massive renovation & 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 & 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 & 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 & Solar, Solar & 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 & objectives for various water conservation and management measures by using 3Rs (Reduce, Recycle & Reuse) as guiding principle. Water bodies rehabilitation & 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

-    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 & maintenance.

-    Fly Ash Classification & 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.

-    sox, Nox & 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 Company’s 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 & 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 & 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 & 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    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 ‘aesthetics’ but also helped in carbon sequestration by serving as a ‘sink’ 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    ISO 14001 & 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    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 Company’s 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    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    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 & asbestos industry, ready mix concrete plants (RMC), road embankment, brick making, mine filling & 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 Company’s Stations is at Annexure- VIII.

18.6    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 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 & 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 & Auxiliaries, Turbine & Auxiliaries, Cooling Towers, RCM, PdM technologies etc.

Your Company has taken Electric Power Research Institutes’ membership in the areas of Boiler life & Availability improvement, Steam Turbine-Generators & Aux. system and Combustion & 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 & Trade (PAT) scheme under Prime Minister’s National Mission on Enhanced Energy Efficiency (NMEEE) in your Company’s 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. Your Company participated in EScerts trading & purchased required EScerts. Subsequent to the trading, your Company is having 161759 EScerts that will be used for PAT - II cycle.

Performance & Guarantee tests are being coordinated by CenPEEP which includes approval of procedure, conducting test & 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 & 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 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 & 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 IIT’s, IISc-Bangalore, NML, CSIR lab’s, 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 Company’s 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 “Vidyut Swar” was published (in digitized form) to promote creative writing in Hindi. A poetry collection of employees titled “Urja Pravah” was released by the Hon’ble 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 Company’s 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 Company’s Corporate Vigilance Department consists of four Cells as under:

-    Vigilance Investigation and Processing

-    Departmental Proceedings

-    Technical Examination

-    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 & 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    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    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 “Fraud Prevention Policy”. 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    vigilance Awareness week and workshops

Vigilance Awareness Week-2018 (VAW) was observed in your Company, its Subsidiaries & 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 & Corporate Centre. The beginning of Vigilance Awareness Week became a special event as Hon’ble 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 Company’s team to become a ‘Model PSU.

The Activities during VAW-2018 were organized across India covering 20 states involving more than 35,000 students & 40,000 citizens besides employees of the Company, its Subsidiaries & Joint Ventures. With the collective efforts of your Company’s 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 & activities across your Company were organized focusing on the theme of VAW-2018 “Eradicate Corruption - Build a New India”. To ensure wider participation of students & citizens, events & activities were organized at Schools and Colleges. Gram Sabhas in the rural areas’ & 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 & Talcher. For general awareness, the FM Radio medium was also used to air the CVC message against corruption at New Delhi, Patna, Hyderabad & 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 & regional offices.

21.5 System improvement measures undertaken during 2018-19

-    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.

-    Uniform guidelines for DGR sponsored security contracts operated at our units have been finalized and issued for implementation in November 2018.

-    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.

-    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.

-    A monthly publication of Vigilance in house e-flyer named “VIGdom” has been introduced from November 2018 for sharing vigilance related learnings/knowledge with employees.

22.    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 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.

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 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.    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 “project pRADip” 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 Company’s 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:

-    Digitization - e-Office was implemented. Processes were redesigned for working in paperless mode.

-    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.

-    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.

-    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 Company’s data centers at Noida and Hyderabad are ISO 27001 certified for security compliance.

-    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 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.

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    Statutory Auditors

The Statutory Auditors of your Company are appointed by the Comptroller & Auditor General of India. Joint Statutory Auditors for the financial year 2018-19 were (i) M/s T R Chadha & Co LLP, Chartered Accountants, New Delhi (ii) M/s S.N. Dhawan & Co. LLP, 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 LLP, Chartered Accountants, Kolkata.

The appointment of the Statutory Auditors for the financial year 2019-20 are yet to be made by the Comptroller & Auditor General of India.

26.2    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 2018-19. However, they have drawn attention under ‘Emphasis of Matter’ to the following notes:

(i)    Note No. 32 (a) regarding billing and recognition of sales on provisional basis pending disposal of the Company’s petition before CERC on the measurement of GCV of coal on ‘As received’ 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)    Note No. 42 in respect of a Company’s project consisting of three units of 800 MW each where the order of NGT has been stayed by the Hon’ble 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 Hon’ble 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    Review of accounts by Comptroller & Auditor General of india (C&AG)

The Comptroller & Auditor General of India, through letter dated 01.07.2019, has given ‘NIL’ 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 & Auditor General of India, through letter dated 01.07.2019, has also given ‘NIL’ 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 & 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    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 & Co., Cost Accountants, U.P., (ii) M/s ABK & Associates, Cost Accountants, Mumbai, (iii) Dhananjay V Joshi & Associates, Cost Accountants, Pune, (iv) M/s DGM & Associates, Cost Accountants, Kolkata, (v) M/s Tanmaya S Pradhan & Co., Cost Accountants, Sambalpur, (vi) M/s K L Jaisingh & Co., Cost Accountants, U.P. and (vii) M/s Niran & 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 & Audit) Rules, 2014.

26.5    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    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 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.

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 & 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 Managements’ Comments on Secretarial Audit Report are as under:

Observations

Management’s Comments

Compliance of Regulation 17 (1) of Securities and Exchange Board of India (Listing Obligations & 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) & 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 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 form part of the Annual Report.

26.9    Significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and company’s operations in future: NIL

26.10    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.

26.11    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 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    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 & 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    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 & Cement, the Project procurement including R&M packages and procurement from OEM, OES & 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    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.

26.15    Extract of Annual Return:

Extract of Annual Return of your Company is annexed herewith as Annexure- VI to this Report.

26.16    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 Directors Report at Annexure-II.

26.17    Para on development of risk management policy including therein the elements of risks are given elsewhere in the Annual Report.

26.18    Your Company has complied with the applicable Secretarial Standards.

26.19    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, 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 & 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 years’ 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 years’ 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 years’ 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 & Company Secretary on 31.07.2018 consequent upon his superannuation. Ms. Nandini Sarkar, General Manager was appointed as Company Secretary & 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. 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 2018-19 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.

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 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, Department of Investment and Public Asset Management, 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, 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:

-    Power projects of 3,478 MW (including 910 MW through JV and Subsidiary Companies) were commissioned.

-    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.

-    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.

-    Excellent MOU rating by Government of India for the year 2016-17.

-    Group Capital Expenditure (CAPEX) including CAPEX of JV/ subsidiaries of your company for the year 2017-18 was Rs, 31,036.56 crore.

-    100% realization of current bills from customers.

-    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.

-    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.

-    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.

-    Market capitalization of Rs, 1,39,925.53 crore as on 31.03.2018.

-    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.

-    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.

-    Awarded for overall Best Financial Performance by Governance Now

-    Bagged 2nd position at the BML Munjal Award 2018 for sustained excellence in Learning and Development.

-    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

 

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.    OPERATIONAL PERFORMANCE

During the year, the power stations of your Company generated 265.80 BUs (294.27 BUs including JVs & Subsidiaries) of electricity (including solar, hydro, wind & 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 & Subsidiaries) over the previous years' generation of 250.31 BUs by your company (276.77 BUs including JVs & 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.    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    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    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    Rebate Scheme for realization of dues:

I n order to encourage early and full realization of dues, your Company has issued ‘Rebate 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    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)    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 & Subsidiaries

 

Coal based projects

4,924

Gas based projects

1,967

Sub-total

6,891

Total

51,391

5.6    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 & 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    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    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    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 & 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 & Subsidiaries

 

Coal Based Projects

 

 

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 & 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    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    Biomass Co-firing for reducing greenhouse emission & 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    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 & 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 & 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    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    Use of treated Sewage Water from Municipal Sewage treatment plants

Your Company has taken on itself a novel & 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    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    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    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    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) & 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.

 

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.

 

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.

 

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.    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.    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.    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 & 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) & 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 & 50% equity of BSPGCL in NPGCL on June 29, 2018. With this acquisition, KBUNL & 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 & 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    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    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). 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 & leveling work of BEE, Consultancy work, implementing Bachat Lamp Yojana and Agricultural & 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.

 

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 “Online High Power Test Laboratory” 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.

 

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 & 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 & 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 & 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    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    Foray into cement business

Your Company is collaborating with CCI for reviving the cement plants of CCI supplementing both your company's & 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    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    Other Opportunities Abroad: Business opportunities in Sri Lanka, Bhutan, Myanmar, Indonesia, Oman, UAE, Egypt, Ghana, Zimbabwe, Tanzania, Kenya & 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 “From Concept to Commissioning and beyond....” such as in Engineering, Operation & Maintenance Management, Project Management, Contracts & Procurement Management, Quality Management, Training & Development, Solar & 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 “Complete Owner's Engineer Services for implementation of 2X660MW Khurja STPP from concept to commissioning” to THDC. It is also providing “Post Award review engineering and QA&I Services” 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 & 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 “Independent technical due diligence assignment of stressed/stalled assets” for lenders.

Highlights of FY 17-18

-    Consultancy Wing received orders of Rs, 386.89 crore

-    Consultancy Wing bagged 166 nos. of orders

-    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)

-    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 %

-    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 & 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) & Singareni Collieries Company Limited (SCCL) for total Annual Contracted Quantity (ACQ) of 157.56 MMT & 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 “Flexibility in utilization of domestic coal for reducing cost of power generation”. 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 & 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) & 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 & 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    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    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 & 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    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    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 ‘Reasonable 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    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 & Chatti-Bariatu (South), Kerandari located in the State of Jharkhand, Dulanga, Mandakini-B located in the State of Odisha and Talaipalli, Banai & 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 ‘Integrity 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 & 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 & FR are under preparation. Target for commencement of production is February 2022.

At the time of allotment, the Banai & 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 & 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 & State of J&K by MoC, GoI. Joint Venture Agreement between your Company & JKSPDCL has been signed on 15.06.15 for incorporation of a Joint Venture Company for Exploration, Development & 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 ‘NTPC 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 & 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 & 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 & II (5X200MW+2X500MW), Korba - I & II (3X200MW+3X500MW), Farakka - I & II (3X200MW+2X500MW), Vindhyachal - I & II (6X210MW+2x500MW), Rihand - I (2x500MW), Unchahar

-    I (2x210MW), Talcher TPS-II (2X110MW), Talcher STPS

-    I & 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 & Instrumentation (C&I) has been taken up in 9 coal based stations namely Singrauli-I (5X200MW) & Singrauli - II (2X500 MW), Korba -I (3X200MW) & Korba - II (3X500 MW), Ramagundam -I (3X200MW) & Ramagundam - II (3X500MW), Farakka-I (3X 200 MW) & 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. 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 & 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 & Joint Ventures

   

Employees of your Company in Subsidiaries & 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    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    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 “National Safety Day” 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 & 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 & 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.

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 ‘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 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 & 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    Inclusive Growth -Initiatives for Social Growth

17.1.1    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 & 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 “NTPC Policy for CSR & Sustainability” 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 Company’s' CSR & Sustainability activities are Health, Sanitation, Safe Drinking Water, Education, Capacity Building, Women Empowerment, Social Infrastructure livelihood creation and support through innovative agriculture & 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 & 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 & 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    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 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 ‘Rehabilitation 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 ‘Long 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 & 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 ‘National 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 ‘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 - Environment Policy of your Company:

“To provide cleaner energy by committing to highest possible levels of performance in environmental compliance, practices and stewardship.”

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 & Water source) and state of art technology. Your Company is also undertaking massive renovation & 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 & 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 & 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 & Solar, Solar & 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    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 & objectives for various water conservation and management measures by using 3Rs (Reduce, Recycle & Reuse) as guiding principle. Water bodies rehabilitation & 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    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    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 & 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 & 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    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 ‘aesthetics' but also helped in carbon sequestration by serving as a ‘sink' 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 & 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    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 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 & 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 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 & asbestos industry, ready mix concrete plants (RMC), road embankment, brick making, mine filling, ash dyke raising & 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 ‘Center 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 & 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 & Auxiliaries, Turbine & 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 & Availability improvement, Steam Turbine-Generators & Aux. system and Combustion & 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 & Trade (PAT) scheme under Prime Minister's National Mission on Enhanced Energy Efficiency (NMEEE) in your Company's 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. Your Company participated in EScerts trading & purchased required EScerts. Subsequent to the trading, your Company is having 161,759 EScerts that will be used for PAT - II cycle.

Performance & Guarantee tests are being coordinated by CenPEEP which includes approval of procedure, conducting test & 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 & 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 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 & 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 Company’s' 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.    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.    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 Company’s' Corporate Vigilance Department consists of four Cells as under :

-    Vigilance Investigation and Processing Cell

-    Departmental Proceedings Cell

-    Technical Examination Cell

-    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 & 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    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    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 “My vision, corruption free India”. 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 & 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 & Commercial Offices/ Regional Headquarters and Corporate Center. Among the outreach activities various interactive events were held in schools & 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 & 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 & 96 colleges.

For your Company employees at Projects and Regional Headquarters, different competitions like Essay & 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.    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.

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 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.    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 Company’s' 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:

-    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.

-    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.

-    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.

-    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.

-    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.

-    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.

-    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 & Disclosure Requirements) Regulations, 2015 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 2017-18 were (i) M/s T R Chadha & Co LLP, 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 LLP, Chartered Accountants, Kolkata.

The appointment of the Statutory Auditors for the financial year 2018-19 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 2017-18. However, they have drawn attention under ‘Emphasis of Matter' to Note No. 36 (a) & (b) regarding billing & recognition of sales on provisional basis and measurement of GCV of coal on ‘as 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 ‘Emphasis 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    Review of accounts by Comptroller & Auditor General of India (C&AG)

The Comptroller & Auditor General of India, through letter dated 29.06.2018, has given ‘NIL' 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 & Auditor General of India, through letter dated 29.06.2018, has also given ‘NIL' 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 & 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    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 & Co., Cost Accountants, Kanpur, (ii) M/s ABK & Associates, Cost Accountants, Mumbai, (iii) Dhananjay V Joshi & Associates, Cost Accountants, Pune, (iv) M/s DGM & Associates, Cost Accountants, Kolkata, (v) M/s Tanmaya

S Pradhan & Co., Cost Accountants, Sambalpur,

(vi)    M/s K L Jaisingh & Co., Cost Accountants, Noida and

(vii)    M/s Niran & 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 & Audit) Rules, 2014.

25.5    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    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 & 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    Secretarial Audit

The Board has appointed M/s J.K. Gupta & 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) & 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    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    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 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    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 & 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    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 & Cement, the Project procurement including R&M packages and procurement from OEM, OES & 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    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    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 Directors Report at Annex-II.

25.17    Para on development of risk management policy including therein the elements of risks are given elsewhere in the Annual Report.

25.18    The Company has complied with the applicable Secretarial Standards.

25.19    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.

25.20    The particulars of annexure forming part of this report areas under:

Particulars

Annexure

Management Discussion & 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 & 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 & Law) and (Company Secretary) w.e.f. 31.07.2018 consequent upon his superannuation.

Ms. Nandini Sarkar, General Manager was appointed as Company Secretary & 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.    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 2017-18 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

Date: 8th August, 2018

 


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 $ MnRs. CroreUS $ Mn* Revenue Revenue from operations (including energy sales, consultancy, energy consumed internally) 78,273.44 11,908.33 70,843.81 10,778.00 Other income 1,068.86 162.61 1,165.35 177.29 Total Revenue 79,342.30 12,070.94 72,009.16 10,955.29 Expenses Fuel 47,572.19 7,237.52 43,798.59 6,663.41 Employee benefits expense 4,324.60 657.93 3,581.65 544.90 Finance costs 3,597.20 547.27 3,296.41 501.51 Depreciation, amortization and impairment expense 5,920.82 900.78 5,172.34 786.91 Other expenses 5,092.38 774.74 5,576.49 848.39 Total expenses 66,507.19 10,118.24 61,425.48 9,345.12 Profit before exceptional items, tax and rate regulated activities 12,835.11 1,952.70 10,583.68 1,610.17 Add: Movements in Regulatory deferral account balances 335.74 51.08 12.09 1.84 Profit before exceptional items and tax 13,170.85 2,003.78 10,595.77 1,612.01 Exceptional items - impairment loss on investment 782.95 119.12 - - Profit before tax 12,387.90 1,884.66 10,595.77 1,612.01 Tax expense 3,002.64 456.81 (173.83) (26.45) Profit for the year 9,385.26 1,427.85 10,769.60 1,638.46

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 . 3. OPERATIONAL PERFORMANCE During the year, the power stations of your Company generated 250.31 BUs (276.77 BUs including JVs & Subsidiaries) of electricity (including solar and hydro power) which was 20.20% (22.40% including generation by JVs and Subsidiaries) of the total power generated in India registering an increase of 3.44% (5.07% including JVs & Subsidiaries) over the previous years generation of 241.98 BUs. Generation contributed by Koldam hydro station and NTPC solar power stations were 3.23 BUs and 0.528 BUs respectively. The total generation contributed by coal stations is 237.96 BUs during the year against generation of 230.64 BUs last year registering a growth of 3.18%. Generation from coal based units could have been still higher but due to less generation schedule, there was opportunity loss of 41.25 BUs. The coal based stations operated at average Plant Load Factor (PLF) of 78.59% (All India PLF 59.88%) and average Availability Factor of 88.81% on bus bar during the year. For 2nd year in succession, 3 NTPC Stations were ranked as the Top 3 stations in the country and 11 NTPC Stations were in top 25 stations in the country in terms of PLF. 6 coal based stations out of 18 commercial Stations achieved more than 85% PLF. The gas stations having a capacity of 4,017 MW achieved annual generation of 8.59 BUs at a PLF of 24.42% as against 8.87 BUs last year, mainly due to less generation schedule which accounted for an opportunity loss of 24.48 BUs. 4. COMMERCIAL PERFORMANCE 4.1 Billing and Realisation: Your Company has realized 100% of its current bills raised for energy supplied in 2016-17, thus achieving this feat for the 14th 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 Credit (LCs) at 105% of the average monthly billing. The Company has in place a robust payment security mechanism in the form of Letter of Credit (LCs) backed by the Tri-Partite Agreement (TPA). Apart from the LCs, payment of NTPC is secured by the TPAs signed amongst the State Governments, Govt. of India and Reserve Bank of India (RBI). As per the TPA, any default in payment by the Distribution Companies 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 upto 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 26 States/ UTs have signed the TPA documents. The signing process is in progress in the balance states. 4.2 Rebate Scheme for realization of dues: In order to encourage early and full realization of dues, your Company has issued 'Rebate Scheme' for the year 2017-18. In the Scheme for 2017-18, 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. 4.3 Commercial Capacity: The following units including that of subsidiary companies were declared commercial during the year 2016-17, adding 2,190 MW to commercial capacity of your Company: Project/ unit Capacity (MW) COD* NTPC units- Coal Based (I) Bongaigaon, Unit#1 250 01.04.2016 Mouda, Stage-II, Unit#1 660 01.02.2017 Total (I) 910 NTPC Units - Solar (II) Ananthapur Solar 200 09.05.2016 Ananthapur Solar 50 10.08.2016 Bhadla Solar Project 260 25.03.2017 Total (II) 510 Subsidiaries - Coal Based (III) Patratu Thermal Power Station, Unit#1(PVUNL)** 325 01.04.2016 Nabinagar Thermal Power Project, Unit#1 (BRBCL) 250 15.01.2017

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 “the world's leading power company, energizing India's growth.” 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 “Online 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 “From 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 “Flexibility in utilization of domestic coal for reducing cost of power generation”. 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 “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 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 “Learning@speed of business”. 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 “NTPC School of Business” for running the flagship program titled “Executive 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 “Clean Water and Sanitation”, 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: “Going Higher on Generation, lowering GHG intensity” 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 “Public Participation in Promoting Integrity and eradicating Corruption”. 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 . 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 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 2016-17, 1,580 applications were received under the RTI Act, 2005 out of which 1,496 applications were replied to, till 31.03.2017. 23. USING INFORMATION AND COMMUNICATION TECHNOLOGY FOR PRODUCTIVITY ENHANCEMENT Your Company is leveraging Information Technology in its goal of sustainable growth in business. 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 developed to capture, display and analyze the plant performance parameters on real time basis. Non-ERP applications areas are Engineering Drawings approval, Quality Control Management, Hospital Management, Transit Camp Management, RTI, Security Control etc. The Stations projects and Offices across India, are connected to Corporate Office and main Data-centre (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 Centre of Corporate Office. Dashboards for top management (REDs, Heads of Projects) were developed and deployment of the same is in progress. Some of the highlights of the progress in IT/ERP area during the year 2016-17 are as follows: ERP Hardware Refresh - The Hardware refresh of both ERP Data centre and Disaster Recovery Centre was carried out. Your Company also built and commissioned its own Disaster Recovery Centre. The Company was awarded with Data Centre Transformation award at Indian Express IT meet. The availability of ERP and DR set up was more than 99.9% during the year. ERP - The Employee Self Service Portal was launched on Internet. A number of new processes such as commercial billing as per 2014-19 tariff, Coal mining, FGD, third party coal sampling, Self Booking Travel interface with Balmer Lawrie, PMS for all etc. were developed in ERP. Paperless Office - In an effort towards 'Go Green' initiative, a number of processes like e-MB, Telephone claim, Travel Claim, Probation clearance etc. were made paperless. Tender has been initiated for Enterprise Content Management to go for 100% digitization across the organization. Board Agenda is being e-mailed to the Board Members in encrypted form through an in-house software. Security - No major security breach was observed during the year 2016-17. A 24x7 Security Operation Centre(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 cyberattack or data theft. Timely communication is being sent to all users based on threat perception. The IT security Audit for plants have been completed. Mobile Apps - Emphasis is being given for digital communication in place of paper communication. A number of mobile apps have been developed for ease in communication. Vendor Bill Tracking Portal - Online Vendor Bill Tracking Portal was developed and deployed for bill submission and bill tracking by the vendors. Other Vendor Portals are also in operation to facilitate for registration and bidding. 24. NTPC GROUP: SUBSIDIARIES AND JOINT VENTURES Your Company has currently 5 subsidiary companies and 18 joint venture companies for undertaking specific business activities. Besides 18 joint venture companies detail of which is elsewhere in this Report, National Power Exchange Limited and Pan-Asian Renewables Private Limited have been wound up by the Order of Hon'ble High Court. NTPC-SCCL Global Ventures Private Limited is also 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 & Disclosure Requirements) Regulations, 2015 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 2016-17 were (i) M/s T R Chadha & Co LLP, 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 LLP, Chartered Accountants, Kolkata. The appointment of the same Statutory Auditors for the financial year 2017-18 has also 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 2016-17. However, they have drawn attention under 'Emphasis of Matter' to Note No. 37 (a) & (b) regarding billing & recognition of sales on provisional basis and measurement of GCV of coal on 'as received' basis after secondary crusher till 30th September 2016 and GCV measured on wagon top at the unloading point w.e.f. 1st October 2016 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; Note No.47 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; and Note No. 60 regarding recognition of an impairment loss of Rs.782.95 crore in respect of investment in joint venture Ratnagiri Gas & Power Private Limited (RGPPL) as 'Exceptional items - impairment loss on investment' in the Statement of Profit and Loss based on recoverable amount of these investments arrived at by an independent expert after considering the proposed demerger scheme awaiting approval of NCLT, New Delhi. 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) The Comptroller & Auditor General of India, through letter dated 14.07.2017, has given 'NIL' Comments on the Standalone Financial Statements of your Company for the year ended 31st March 2017 after conducting supplementary audit under Section 143 (6) (a) of the Companies Act, 2013. The Comptroller & Auditor General of India, through letter dated 24.07.2017, has also given 'NIL' Comments on the Consolidated Financial Statements of your Company for the year ended 31st March 2017 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 & 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 2017 are being 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 2016-17 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 R.J. Goel & Co., Delhi. The due date for filing consolidated Cost Audit Report in XBRL format for the financial year ended March 31, 2016 was September 30, 2016 and the consolidated Cost Audit Report for your Company was filed with the Central Government on September 28, 2016. The Cost Audit Report for the financial year ended March 31, 2017 shall be filed within the prescribed time period under the Companies (Cost Records & Audit) Rules, 2014. 25.5 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. In term of its Exchange Risk Management Policy, during financial year 2016-17, your Company has entered into derivative contracts amounting to USD 101 million equivalent in different currencies in respect of foreign currency loans exposure. 25.6 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 & 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. Further, 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 Secretarial Audit The Board has appointed M/s Agarwal S. & Associates, Company Secretaries, to conduct Secretarial Audit for the financial year 2016-17. The Secretarial Audit Report for the financial year ended March 31, 2017 is annexed herewith marked as Annexure XI to this Report. The Management's Comments on Secretarial Audit Report are as under: Observations Management's Comments Compliance of Regulation 17(1) of the Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations, 2015 and Clause 3.1.4 of the DPE Guidelines on Corporate Governance for Central Public Sector Enterprises w.r.t. appointment of requisite no. Of Independent Directors on the Board of the Company. As per Regulation 17(1) of SEBI LODR Regulations, 2015 and DPE Guidelines on Corporate Governance for CPSEs, the Company should have nine Independent Directors since Company has seven functional Directors including the Chairman & Managing Director and two Government Nominee Directors on its Board. At present, Company has three Independent Directors in position. 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 requisite number of Independent Directors on its Board. Compliance of Regulation 17(10) & 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 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 your 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 for FY 2016-17. Your Company had granted loans to its subsidiaries namely, Patratu Vidyut Utpadan Nigam Limited (PVUNL) and Kanti Bijlee Utpadan Nigam Limited (KBUNL) during 2016-17 covered under Section 185 and 186 of the Companies Act, 2013. The details of loans granted to PVUNL and KBUNL is given in Note - 57 of Standalone Financial Statements for 2016-17. 25.12 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 & 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 2016-17. Your Company has been conducting gender sensitization workshops for building a collaborative and safe work culture across the organisation. 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 behaviour at the workplace. During 2016-17, PMI has conducted nine such workshops across the organization covering about 200 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 2016-17 was Rs.1,019.06* crore, which was 25.61% of total annual procurement of Rs.3,978.40* 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 2016-17 was Rs.15.59* crore, which was 0.39% against the target of 4% of total procurement value. *It excludes Primary fuel, Secondary fuel, Steel & Cement, the Project procurement including R&M packages and procurement from OEM, OES & PAC sources. Your Company orgainsed 15 vendor development programmes for MSEs. 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 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 Directors Report at Annex-II. 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 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 Utilisation VIII Disclosure of Related Party Transactions in Form AOC-2 IX Business Responsibility Report for the year 2016-17 X Secretarial Audit Report in Form MR-3 XI 26. BOARD OF DIRECTORS & KEY MANAGERIAL PERSONNEL Shri Seethapathy Chander had been appointed as Independent Director w.e.f. 22.06.2016 for a period of three years. On completion of three years' tenure, Shri Prashant Mehta has ceased to be Independent Director of the Company w.e.f. 29.07.2016 (A/N). Shri U.P. Pani ceased to be Director (Human Resources) of the Company w.e.f. 31.10.2016 on attaining the age of superannuation. Shri Saptarshi Roy, Executive Director had taken over the charge as Director (Human Resources) of the Company w.e.f. 01.11.2016. Shri Anand Kumar Gupta, Executive Director had taken over the charge as Director (Commercial) of the Company w.e.f. 03.02.2017. Shri A.K. Rastogi, Executive Director & Company Secretary separated from NTPC Limited w.e.f. 28.02.2017 after taking pre-mature retirement. Shri K.P Gupta, Executive Director took over the charge as Company Secretary on 22.03.2017. The Board wishes to place on record its deep appreciation for the valuable services rendered by Shri Prashant Mehta, Shri U.P. Pani and Shri A.K. Rastogi 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 K.K. Sharma, 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. 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 201617 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: 4th August, 2017


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 Útilisation 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)– 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 – (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 –I & 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 –I 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 –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.

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 – 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 – 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 – 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 – 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 – 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 – RGGVY) through its wholly owned subsidiary Company NTPC Electric Supply Company Limited.

Your Company has been a member of TERI – Business Council for Sustainable Development – 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 –Community 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 – 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 – 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 – 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 – 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 – 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 AUDITORS’ 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

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