I feel privileged to share the achievements of our Company made duringthe Financial Year 2016-17 and present the 41st Annual Report of the Company for 2016-17.Your Company has been able to harness its core competencies to achieve new milestones andset new standards of performance by increasing its profitability and creating value forstakeholders.
During the Financial Year your Company has generated 23275 MUs ascompared to the target of 23000 MUs committed for "Very Good" rating underMemorandum of Understanding signed with Govt. of India. Your Company has contributed tothe growth of power sector by commissioning the remaining two units of 40 MW each ofTeesta Low Dam-IV H.E. Project (160 MW) in West Bengal and 50 MW Wind Power Projectin Jaisalmer during Financial Year 2016-17. After commissioning of these projects thestandalone installed capacity of the Company has increased to 5171 MW. Your Company iscommitted to achieve sustained growth and high performance in future also.
On financial fronts your Company had earned a profit Rs 2795.59 croreas compared to Rs 2429.89 crore in the previous year. Sales during Financial Year 2016-17were Rs 7191.53 crore whereas realization including liquidation of outstandingamount of previous years were Rs 7676.27 crore. Further it has successfully transitionedto Ind AS regime and has prepared accounts for the year 2016-17 accordingly.
Maximizing shareholders' wealth has always been an area of concernof your Company. An interim dividend of Rs 1.70/- per share had already been paid inJanuary 2017. The Board of Directors has recommended a final dividend of Rs 0.10 perequity share (excluding dividend distribution tax) for Financial Year 2016-17 subject toyour approval at the forthcoming Annual General Meeting. On approval the total dividendpay-out for Financial Year 2016-17 will be 71% of the profit after tax.
During the Financial Year under report Govt. of India had divested11.36% of the paid up equity share capital of the Company by Offer For Sale (OFS) throughStock Exchange mechanism in April 2016. Subsequently in November 2016 the Government ofIndia further divested 0.09% of the paid up equity share capital through OFS to eligibleemployees of the Company. After these divestments the holding of the Government of Indiain your Company was reduced to 74.51%. Your Company had also bought back 811347977fully paid equity shares of Rs 10/- each at a price of Rs 32.25/- per equity share inMarch 2017. Post buyback paid up equity share of capital of your Company has reduced toRs 10259.32 crore.
Your Company constantly endeavors to harness available hydro powerpotential in the country. At present 3130 MW capacity projects are under constructionstage. It gives me great pleasure to inform that 1st and 2nd unit of Parbati-II H.E.Project (800 MW) Himachal Pradesh has been spun by using water of Jiwa Nallah. On July29 2017 Unit-I of the Parbati HE Project Stage-II has been successfully synchronized onpart load. We are targeting to commission this project by December 2018. Constructionworks at Kishanganga HE Project (330 MW) Jammu & Kashmir are in advancedstage and its 1st unit is expected to be commissioned during the current year andremaining two units by January 2018. Management of your Company is in constant touch withthe Central Government State Govt. of Assam and all the stakeholders for early resumptionof construction activities at Subansiri Lower H.E. Project. The project is expected to becommissioned within 4 year time from the date of resumption of works.
Your Company has the privilege of holding leadership position in thedevelopment of hydro power in the country and being committed to maintain its leadershipwe are in the process of obtaining necessary clearances for five prospective projectshaving planned capacity of 4995 MW. Joint venture companies have already been formed inJammu & Kashmir and Manipur for development of 1230 MW hydropower projects.
Efforts are being made by your Company for diversification differentsources of energy viz. wind solar and thermal which have now started showing results.During the Financial Year a 50 MW Wind Power Project in Jaisalmer has beencommissioned. Your Company has also started activities for the development of 50 MW SolarPower Plant at Theni & Dindigul Districts in Tamil Nadu. An EPC Contract with tenyears O&M has been awarded to M/s Larsen & Toubro Ltd. and an Energy PurchaseAgreement (EPA) for the generation from project has also been signed with TANGEDCO. YourCompany in joint venture with UPNEDA is in process of executing a 32 MW Solar PowerProject in Uttar Pradesh. In addition to above your Company is also gearing up foravailing business opportunities in thermal sector through development of Pirpainti ThermalPower Project (1320 MW) in Bihar through joint venture mode. Opportunities are alsobeing explored actively for the development of pumped storage schemes in different stateslike Karnataka Maharashtra Odisha etc.
The affairs of your Company are conducted in a socially responsiblemanner by maintaining high level of integrity and ethical behavior. During the FinancialYear your Company has undertaken various CSR initiatives in the field of Education andSkill development Health & Sanitation Rural Development Environment &Sustainability Women Empowerment Swachh Bharat Abhiyan/Swachh Vidyalaya Abhiyan sportsarts and culture etc. The expenditure on CSR & SD activities during the Financial Year2016-17 was Rs 75.82 crore as against the mandatory requirement of Rs 44.23 crore underthe Companies Act 2013.
Your Company takes utmost care to maintain the highest standards ofCorporate Governance in its business activities. Besides adhering to the provisions ofSecurities and Exchange Board of India (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. The Corporate Governance practices of your Company was recognized by ASSOCHAM andwas conferred the Runner-up prize in Listed Public Sector Company category at 2ndCorporate Governance Excellence Awards 2015-16.
Your Company's achievements in various spheres have earned it anumber of prestigious awards and accolades such as Best Miniratna by Dun & BradstreetPSU Awards 2016 Best Hydropower Enterprise Award by Hydropower forum of India GoldenPeacock Business Excellence Award 2016 by Institute of Directors etc.
I take this opportunity to express my sincere gratitude to allstakeholders business partners customers CERC and various Ministries of Govt. of Indiaespecially Ministry of Power for providing valuable guidance and support ininto ourefforts. I would also like to thank various State Government(s) for all the supportthey had extended to our business. I would also like to place on record my sincereappreciation to my esteemed colleagues on the Board for their guidance and support. Iwould like to thank all the employees for their continuous and untiring efforts inachieving the Company's objectives.
I assure you that the Management's top priority would be to bringthe projects under various stages of development to operative phase and to kick startother ventures for diversification of the Company to support the growth of clean andgreen power. We will continue to implement our mission driven strategy by efficientlystations implementing the projects and continue to invest in technology infrastructureand talent which are the critical inputs for the future of your Company. We look forwardfor your continued and unstinted support for the years to come.
|With best wishes || |
| ||Your sincerely |
| ||(Ratish Kumar) |
|Date: 11th August 2017 ||Chairman and Managing Director |
|Place: Faridabad ||DIN 06852735 |