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DIRECTOR'S REPORT

NTPC Ltd.

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Market Cap. (₹) 114084.25 Cr. P/BV 1.04 Book Value (₹) 111.21
52 Week High/Low (₹) 146/107 FV/ML 10/1 P/E(X) 9.03
Bookclosure 21/08/2019 EPS (₹) 12.77 Div Yield (%) 5.27
Year End :2019-03 

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

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