It is my pleasure to present the 40th Annual Report of your Company for 2015-1 6 whichwas a challenging yet successful year for NHPC. We grew our business and increased ourprofitability which enabled us to improve our competitiveness and create value forshareholders. We continued to implement our mission driven strategy by efficientlyoperating the power stations implementing the projects and continuing to invest intechnology infrastructure and talent which are the critical inputs for the future ofyour Company. And each year your Company is stepping ahead and getting stronger.
The year 2015-16 saw highest ever generation of 23683 MUs by your Company. This was wayahead of 22000 MUs committed for "Excellent target under Memorandum ofUnderstanding signed with Govt. of India. With the commissioning of two units of 40 MWeach of Teesta Low Dam-IV H.E. Project in West Bengal during 2015-16 your Company's totalgeneration capacity has surpassed 5000 MW on standalone basis which is a milestoneachievement. As I write to you we have also commissioned the third unit of the TLDP-IVand I am certain that by the time you are reading this we would have commissioned thelast unit also. The total generation capacity of your Company as of now stands at 081.2MW. We are committed towards achieving sustained growth and high performance.
On financial front your Company had a sterling year wherein we earned a profit of Rs.2440.14 Crore compared to Rs. 2124.47 Crore in the previous year. Sales during FY 2015-16 were Rs. 7347 Crore whereas realization including liquidation of outstanding amount ofprevious years stands at Rs. 8031 Crore.
I am pleased to inform you that the Board of Directors has recommended a final dividendof Rs. 1.50 per equity share (excluding dividend tax) which is inclusive of an interimdividend of Rs. 0.92 per equity share paid in March 2016. The final dividend shall bepaid after your approval at the forthcoming Annual General Meeting. On approval the totaldividend pay-out for the year will be 68.05% of the profit after tax.
In April 201 6 Govt. of India divested 11.36% of its holding in the company throughOffer for Sale (OFS) mechanism through Stock exchange. Post OFS Govt. of India'sshareholding in the company has come down to 74.60% from 85.96%.
It has been a constant endeavor of your Company to harness available hydro powerpotential in the country. At present 3170 MW capacity is under construction by yourCompany. am pleased to inform you that your Company has managed to restart the TunnelBoring Machine at Parbati-II H.E. Project and as successfully traversed the shear zonewhere the machine was stuck. We are targeting commissioning of this project by December2018. Construction works of Kishanganga HE Project (330 MW) Jammu & Kashmir are inadvanced stage and the project is expected to be commissioned during the current financialyear. Management of your Company is in constant touch with the Central Government StateGovt. of Assam and all the stakeholders for early resumption of construction activities atSubansiri Lower H.E. Project.
Your Company has been the flag bearer of hydro power development in the country andbeing committed to maintaining our leadership we are in the process of obtainingnecessary clearances for five prospective projects having planned capacity of 4995 MW.Further joint venture companies have been formed in Jammu & Kashmir and Manipur fordeveloping hydropower. Your Company is in active dialogue with Druk Green PowerCorporation Limited Bhutan for development of Chamkharchhu-I HE project (770 MW) inBhutan in joint venture mode.
Your Company is exploring the business opportunities available in the wind and solarpower field for benefits of the shareholders. A 50 MW wind Power Project in JaisalmerRajasthan is nearing completion. Your Company has signed a MOU with Govt. of Kerala fordevelopment of 72 MW wind power project at Palakkad District in the state of Kerala and isalso planning to develop a 50 MW solar power project in Tamil Nadu. Your Company in jointventure with UPNEDA is exploring opportunities for a 50 MW solar power project in UttarPradesh. Further we are also gearing up for availing business opportunities in thermalsector also. The Government approval is under process for taking up Pirpainti ThermalPower Project (1320 MW) in Bihar through joint venture mode.
In today's business environment constant technological updation and innovation is a prerequirement for survival and growth. As such adoption of new technology has been one ofthe thrust areas of your Company. During the FY 2015-1 a state of art 'Real-time SeismicData Centre' has been established by your Company at corporate office Faridabad. YourCompany is the only hydropower company in the country to have such data centre. Alleighteen power stations of your Company are connected with the centre for receiving theearthquake data on real-time basis.
The affairs of your Company are conducted in a socially responsible manner bymaintaining high level of integrity and ethical behavior. Your Company has a CSR & SDpolicy in place and social and environmental sustainability is ensured by winning thetrust and confidence of all its stakeholders by addressing social economic andenvironmental issues. During FY 2015-16 your Company pent Rs. 72.68 Crore on CSR & SDactivities as against the required spending of Rs. 43.28 Crore nder the Companies Act2013. Your Company has taken a number of initiatives in CSR activities during the year.Your Company actively participated in "Swachh Vidyalaya Abhiyaan andconstructed 7045 toilets in various parts of the country.
Your Company takes utmost care in constantly adopting and maintaining the higheststandards of Corporate Governance in its business activities. Besides adhering to theprovisions of listing agreement SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 your Company also follows the guidelines on Corporate Governance forCPSEs issued by Department of Public Enterprises (DPE) Government of India. Your Companyhas also adopted Whistle Blower Policy for reporting the instances of unethical/improperconduct.
It is a matter of great pleasure to inform that during the year industrial relationswere cordial and harmonious in all Projects/ Power Stations/Units of your Company.
Your Company's efforts for an all-round growth have been recognized by industry and anumber of prestigious awards were conferred on your Company.
The faith reposed by you in the management of Company is an invaluable source ofsupport and inspiration for us. We look forward to your continued and unstinted support.
I would like to take this opportunity to express my gratitude to all stakeholdersbusiness partners customers CERC and various Ministries of Govt. of India especiallyMinistry of Power for providing valuable guidance and support in our efforts. I would alsolike to thank various State Government(s) for all the support they had extended to ourbusiness. I would also like to place on record my sincere appreciation to the Board ofDirectors for their guidance and support. I must also thank all the employees for theircontinuous and untiring efforts in achieving the company's objectives.
We continue to see exciting opportunities to invest for the future and do more for ourcommunities and country as well as continue to support the growth of clean and greenpower. I assure you that the strategies of your Company will continue to translate intosustainable returns and gains to all stakeholders.
|With best wishes ||Yours sincerely |
| ||(K.M. Singh) |
| ||Chairman and Managing Director |
|Date: 4th August 2016 ||DIN 02223301 |
|Place: Faridabad || |