Your Directors are pleased to present the 40th Annual Report on the business andoperations of the Company along with audited financial statements for the year ended March31 2016. Financial Year 2015-16 has been yet another year of achievements for yourCompany. With the addition of 2255 MW capacity (including 445 MW through SubsidiaryCompanies) during the year total installed capacity of your Company (includingsubsidiaries & JVs) as on 31.03.2016 was 46653 MW. With the commissioning of AnantpurSolar PV unit of 250 MW and takeover of Patratu Thermal Power Plant of 325 MW after31.03.2016 capacity of your Company has become 47228 MW as on 31.07.2016.
Major highlights for the year 2015-16 are:
Power projects of 2255 MW were commissioned. Declared 1960 MW PowerProjects on commercial generation.
PLF of 78.61% as against all India PLF of 62.29% with three NTPC stationsrecording more than 90% PLF and 11 stations (including JV) in top 25 stations of thecountry.
Excellent MOU rating by Government of India for the year 2014-15.
Capital expenditure (CAPEX) for the year 2015-16 was Rs 25959.60 crore(Stand-alone) as against the MoU target of Rs 23000.00 crore. Achieved Group Capexof Rs 32090.89 crore during FY 2015-16 against Rs 28289.56 crore during FY 2014-15.
100% realization of current bills from customers.
Revenue from operations (Net) was Rs 70506.80 crore and total revenue was Rs71696.07 crore.Net Profit after Tax (PAT) was Rs 10242.91 crore.
??Dividend of Rs 3.35 per share comprising interim dividend of Rs 1.60 perequity share paid in February 2016 and recommended final dividend of Rs 1.75 per equityshare for the year 2015-16 subject to approval of the shareholders. Cashcontribution of Rs 4113.30 crore to Government of Indias exchequer throughdividend dividend tax income tax and wealth tax in the financial year 2015-16.
Market capitalization of Rs 106242.81 crore as on 31.03.2016.
Construction of about 29000 toilets in schools under Swachh Bharat- SwachhVidyalaya Abhiyan.
Planted approx. 5.25 lac trees during 2015-16 to mitigate the GHG emissionsarising out of plant operations thereby bringing total to about 2.3 crore planted treestill end of 31.03.2016.
About 8 crore bricks produced by fly ash brick plants of NTPC stations whichare being utilised in plant and township.
Honoured with ASSOCHAM 1st Corporate Governance Excellence Award in listed PSUscategory for the year 2014-15.
Ranked No. 2 Independent Power Producer and Energy Trader Globally in the PlattsTop 250 Global Energy Company Rankings 2015.
??Adjudged 4th among the Asian electric utilities in 2016 rankings as per ForbesGlobal 2000.
Honoured with Dun & Bradstreet Corporate Awards 2016 for best performingCompany in India in Power Sector. For the year 2016 NTPC has been adjudged as theBest Company to work in the Public Sector Category in a study carried out by Great Placeto Work and the Economic Times. Bagged Golden Peacock Award for Excellence inTraining from Institute of Directors for the year 2016.
You will appreciate the fact that the company recorded growth and excellent performancedespite numerous challenge before the sector.
1. FINANCIAL RESULTS (STAND ALONE)
| || |
|Particulars ||Rs Crore ||US $ Mn* ||Rs Crore ||US $ Mn* |
|Revenue || || || || |
|Net Revenue from Operations (including Energy Sales Consultancy Energy consumed internally) ||70506.80 ||10539.13 ||73236.94 ||10947.23 |
|Other income ||1189.27 ||177.77 ||2100.42 ||313.96 |
|Total Revenue ||71696.07 ||10716.90 ||75337.36 ||11261.19 |
|Expenses || || || || |
|Fuel ||43793.25 ||6546.08 ||48833.57 ||7299.49 |
|Employee benefits expense ||3609.32 ||539.51 ||3620.71 ||541.21 |
|Finance costs ||3230.36 ||482.86 ||2743.62 ||410.11 |
|Depreciation and amortization expense ||5425.32 ||810.96 ||4911.65 ||734.18 |
|Generation administration & other expenses ||5787.39 ||865.08 ||4911.28 ||734.12 |
|Prior period items (net) ||(196.15) ||(29.32) ||(333.83) ||(49.90) |
|Total expenses ||61649.49 ||9215.17 ||64687.00 ||9669.21 |
|Profit before tax and rate regulated activities ||10046.58 ||1501.73 ||10650.36 ||1591.98 |
|Add: Regulatory Income/ (Expenses) ||12.09 ||1.81 ||(103.71) ||(15.50) |
|Profit before tax ||10058.67 ||1503.54 ||10546.65 ||1576.48 |
|Tax expense ||(184.24) ||(27.54) ||255.79 ||38.23 |
|Profit for the year ||10242.91 ||1531.08 ||10290.86 ||1538.25 |
|Appropriations: || |
| ||Rs Crore ||US $ Mn* ||Rs Crore ||US $ Mn* |
|Transfer to bonds/ debentures redemption reserve ||1284.13 ||191.95 ||1156.19 ||172.82 |
|Transfer to general reserve ||6000.00 ||896.86 ||7000.00 ||1046.34 |
|Transfer to CSR reserve ||- ||- ||78.30 ||11.70 |
|Transfer to capital reserve ||0.11 ||0.02 ||0.12 ||0.02 |
|Interim dividend ||1319.28 ||197.20 ||618.42 ||92.44 |
|Proposed dividend ||1442.96 ||215.69 ||1442.96 ||215.69 |
|Tax on dividend ||558.25 ||83.45 ||417.40 ||62.39 |
*1US $= Rs 66.90 as on March 31 2016
2.1 OFFER FOR SALE BY THE GOVERNMENT OF INDIA TO THE PUBLIC
Offer for Sale of 5% Equity Share Capital of the Company by the Government of India wasmade in terms of CCEAs approval in May 2015. The offer was opened on 23.02.2016 fornon-retail investors and on 24.02.2016 for retail investors. Non-retail investors wereallowed to place their bids for 80% of unreserved portion and retail investors hadreserved portion of 20%. The indicative price was Rs 122.22 per equity share which wasabove the floor price (` 122 per equity share) and cut-off price was Rs 122.05.
Consequent upon sale of 412273220 shares by Government of India the equity holdingof GOI in NTPC was reduced to 69.96% of the paid-up capital from 74.96%. Anamount of Rs 5014.55 crore exclusive of STT was garnered through Offer for Sale by theGovernment of India.
2.2 OFFER FOR SALE BY THE GOVERNMENT OF INDIA TO THE EMPLOYEES
A total of 20613661 shares were offered to employees being 5% of stake sold by theGovernment of India in February 2016. These shares were offered to the employees atRs 115.90 per equity share i.e. at 5% discount to OFS price.
10826 employees participated in the offer and applied for 17582590 shares being85.3% of the shares offered under Employee OFS. An amount of Rs 203.78 crore was garneredthrough Offer for Sale for Employees by the Government of India.
With the above Offer for Sale to Employees the holding of Government of India hasfurther reduced to 69.74 %.
3.1 Interim and Final Dividend:
Your company paid interim dividend of `1.60 per equity share in February 2016 and theBoard of your Company have recommended a final dividend of `1.75 per equity share for theyear 2015-16. With this the total dividend for the year is `3.35 per equity share of`10/- each. In the year 2014-15 the total dividend paid was `2.50 per equity share of`10/- each.
The dividend payout is 26.97% and the total dividend payout including dividend tax is32.42% of profit after tax. The final dividend shall be paid after your approval at theAnnual General Meeting.
The dividend has been recommended in accordance with your Companys policy ofbalancing dividend pay-out with the requirement of deployment of internal accruals for itsgrowth plans.
4. OPERATIONAL PERFORMANCE
During the year the power stations of your Company generated 241.98 BUs (263.42 BUsincluding JVs& Subsidiaries) of electricity (including solar and hydro power) whichwas 21.95% (23.90% including generation by JVs) of the total power generated in India(without Bhutan import) registering an increase of 0.30% (1.09% including JVs &Subsidiaries) over the previous years generation of 241.26 BUs. Generationcontributed by hydro stations was 2.308 BUs.
The total generation contributed by coal stations is 230.64 BUs during the year againstgeneration of 229.55 BUs last year registering a growth of 0.5%. Generation from coalbased units could have been still higher but due to less generation schedule there wasopportunity loss of 37.76 BUs. The coal based stations operated at average Plant LoadFactor (PLF) of 78.61% (All India PLF 62.29%) and average Availability Factor of 88.06% onbus bar during the year. The generation loss on account of coal shortage was brought downto 0.18 BUs in the current year from 8.895 BUs in FY 2014-15.
During the year 3 coal based stations out of 17 (commercial Stations) achieved morethan 90% PLF and ranked as the Top 3 stations in the country. 11 stations (including JV)of your Company are in top 25 stations in the country.
The gas stations having a capacity of 4017 MW achieved annual generation of 8.870 BUsat a PLF of 25.14% as against 11.588 BUs last year mainly due to less generation schedulewhich accounted for an opportunity loss of 25.529 BUs. The declared capacity of gas basedstations for the year was 97.30% as compared to 92.18% during previous year.
5. COMMERCIAL PERFORMANCE
5.1 Billing and Realisation
Your Company has realized 100% of its current bills raised for energy supplied in2015-16 thus achieving this feat for the 13th consecutive year.
Most of the customers were making their payments within 60 days of billing and hadavailed rebates as per Companys Rebate Scheme. Beneficiaries have established andare maintaining Letter of Credits (LCs) at 105% of the average monthly billing.
Apart from LCs payment of dues is secured by Tripartite Agreements (TPAs) signedamongst the State Governments Government of India and Reserve Bank of India. In terms ofTPAs any default in payment by the Discoms of a State can be recovered directly from theaccount of respective State Governments with RBI. The TPAs are valid upto 31.10.2016. Mostof the States have agreed for extension of existing TPA RBI has also given its noobjection for the same. Extension of TPA is under consideration by the Ministry of Power.
5.2 Rebate Scheme for realization of dues:
In order to encourage early and full realization of dues your Company has revampedRebate Scheme for the year 2016-17. In the Scheme for 2016-17 2% rebate shallbe allowed for amounts credited to the account of Company for any advance payment andpayments made till 8th day of the billing month. From 9th day of the billing month till30th day of the month next to billing month rebate on amounts credited to the account ofthe Company shall gradually reduce from 1.95% to 0% on 31st of the month next to thebilling month. An additional rebate of 0.1% of the monthly billing would be allowed in allmonths where a customer maintains monthly LCs.
5.3 Commercial Capacity:
The following units were declared commercial during the year 2015-16 adding 1960 MWto commercial capacity of your Company:
|Project/ Unit ||Capacity (MW) ||COD* |
|NTPC Units- Coal Based (I) || || |
|Vindhyachal V Unit# 13 ||500 ||30.10.2015 |
|Barh-II Unit#5 ||660 ||18.02.2016 |
|Total (I) ||1160 || |
|NTPC Units Hydro (II) || || |
|Koldam Unit#1 to 4 ||800 ||18.07.2015 |
|Total (II) ||800 || |
|Total Capacity declared commercial during 2015-16(I)+(II) ||1960 || |
* COD- Commercial Operation Date
In 2016-17 250 MW of Bongaigaon Unit#1 and 200 MW Anantpur Solar Power Plant have beendeclared commercial making commercial capacity of Company as on 30.06.2016 as 45878 MW(including JVs and Subsidiaries) as under:
|Owned by NTPC ||MW |
|Coal based projects ||34425 |
|Gas based projects ||4017 |
|Renewable Energy Projects ||310 |
|Hydro Projects ||800 |
|Sub-total ||39552 |
|Joint Ventures & Subsidiaries || |
|Coal based projects ||4359 |
|Gas based projects ||1967 |
|Sub-total ||6326 |
|Total ||45878 |
5.4 Tariff Related Matters:
In FY 2015-16 your Company has been able to reduce Energy Charge Rate significantlythrough various measures such as reduced consumption of imported coal rationalization ofcoal transportation across its various stations.
Tariff petitions with Central Electricity Regulatory Commission (CERC) have been filedfor all the operating stations for determination of tariff for the period from 01.04.2014to 31.03.2019. Hearing on these petitions had started and orders will be issued aftercompletion of hearings.
5.5 Power Purchase Agreements:
Your Company has signed Power Purchase Agreements for Telangana (Phase-I 1600 MW)Patratu (JV with Jharkhand State Electricity Board 2725 MW) and Solar Capacity of760
MW (comprising Anantpur -250 MW Mandsaur- 250 MW and Bhadla 260 MW).
5.6 Strengthening Customer Relationship:
Customer Relationship Management (CRM) initiative has been taken by your companytowards strengthening relationship with the customers. This is also reflected in the CoreValues of your Company (BE COMMITTED) which emphasizes Customer Focus as oneof the core values of Company. Under CRM your Company has designed and executed severalstructured activities with the objective of sharing of experiences and best practices withthe customers capturing the feedback and expectations. Based on the feedback receivedfrom the customers the Company provides various support services to them and identifiespotential areas of cooperation and sharing of others best practices. During the year2015-16 62 such services were provided to the customers.
Your Company offers training programs to the representatives of beneficiary companiesat Power Management Institute (PMI) on free of cost basis. During the year 2015-16 124participants from various customer organizations attended training in 73 programsconducted by PMI.
Besides above your Company has put in place a Customer Satisfaction Index (CSI) Surveyfor gathering customers feedback and responding to their requirements. The CSIsurvey was revamped in 2015-16 to include feedbacks of the Grid Operators with theobjective of understanding the view points of grid operators also. This modified Customerand Grid Operator Satisfaction Index Survey has been conducted in 2015-16.
As a part of UDAY Scheme your Company is helping state generating companies to improvetheir operational efficiency and reduce the cost of generation. With this objective twoworkshops were conducted by your Company with representatives of the Gencos of variousstates.
5.7 Power Trading in Power Exchange:
Your Company has commenced trading of the Un-requisitioned Surplus (URS) Power in thePower Exchange through its trading arm NVVN from June 2016. As per the amended TariffPolicy gains from these transactions will be shared in the ratio of 50:50 with thebeneficiaries whose URS is sold.
6. INSTALLED CAPACITY
During the year 2015-16 your Company added 2255 MW to its installed capacity as perdetails given below:
|Project/ Unit installed ||Capacity (MW) |
|NTPC owned || |
|Coal Based Power Projects || |
|Vindhyachal V Unit#13 ||500 |
|Bongaigaon Unit#1 ||250 |
|Mouda-II Unit#3 ||660 |
|Hydro Power Projects || |
|Koldam Hydro Unit#3 and 4 ||400 |
|Total NTPC owned ||1810 |
|Under JVs & Subsidiaries (Coal Based Power Projects) || |
|Kanti (subsidiary of NTPC in JV with ||195 |
|BSPGCL) Unit#4 || |
|BRBCL (subsidiary of NTPC in JV with ||250 |
|Ministry of Railways) || |
|Total by JV & Subsidiaries ||445 |
|Total Addition during FY 2015-16 ||2255 |
With above capacity addition during 2015-16 capacity added in the first four years of12th Plan Period has reached 9550 MW against the target of 11920 MW for 12th Plan Period(as per CEA).
The total installed capacity of the NTPC Group as on 31.03.2016 has become 46653 MW(44398 MW as on 31.03.2015) as tabulated below:
|Owned by NTPC ||MW |
|Coal based projects ||35085 |
|Gas based projects ||4017 |
|Renewable Energy ||110 |
|Projects || |
|Hydro Projects ||800 |
|Sub-total ||40012 |
|Joint Ventures & Subsidiaries || |
|Coal based projects ||4674 |
|Gas based projects ||1967 |
|Sub-total ||6641 |
|Total ||46653 |
With the commissioning of Anantpur Solar PV unit of 250 MW and addition of PatratuThermal Power Plant of 325 MW after 31.03.2016 capacity of your Company has become 47228MW as on 31.07.2016.
7. CAPACITY ADDITION PROGRAM
Your Company has adopted a multi-pronged growth strategy which includes capacityaddition through green field projects brown field expansions expansion through jointventures and acquisitions towards its journey to achieve its vision to becomeworlds largest and best power producer powering Indias Growth. In addition tofurthering capacity addition through Coal based power projects your Company has beenpursuing enhancement of its power generation portfolio through Hydro and Renewable Energyprojects.
7.1 Projects under Implementation
Your Companys various projects having aggregate capacity of 24009 MW including4050 MW being undertaken by Joint Venture and subsidiary companies are underimplementation at 23 locations across length and breadth of the country as on 31.03.2016.This includes 22430 MW through coal based projects 1579 MW through renewable energyprojects comprising 811 MW through hydro capacity 8 MW small hydro project and 760 MW ofsolar power PV projects. The details of such projects are as under:
Ongoing Projects as on 31.03.2016
| ||Capacity (MW) |
|I. NTPC owned: || |
|A. Coal Based Projects || |
|1. Bongaigaon Assam ||500 |
|2. Barh-I Bihar ||1980 |
|3. Lara-I Chattisgarh ||1600 |
|4. North Karanpura Jharkhand ||1980 |
|5. Kudgi-I Karnataka ||2400 |
|6. Gadarwara-I Madhya Pradesh ||1600 |
Ongoing Projects as on 31.03.2016
| ||Capacity |
| ||(MW) |
|7. Mouda-II Maharashtra ||660 |
|8. Solapur Maharashtra ||1320 |
|9. Darlipalli Odisha ||1600 |
|10. Unchahar-IV Uttar Pradesh ||500 |
|11. Tanda-II Uttar Pradesh ||1320 |
|12. Khargone Madhya Pradesh ||1320 |
|13. Telangana Phase-I Telangana ||1600 |
|Sub Total (A) ||18380 |
|B. Hydro Electric Power Projects (HEPP) || |
|14. TapovanVishnugad Uttarakhand ||520 |
|15. LataTapovan Uttarakhand@ ||171 |
|16. Rammam Hydro West Bengal ||120 |
|17. Singrauli CW Discharge Uttar ||8 |
|Pradesh || |
|Sub Total (B) ||819 |
|C. Solar Power Projects || |
|18. Anantpur Solar PV Andhra ||250 |
|Pradesh* || |
|19. Mandsaur Madhya Pradesh ||250 |
|20. Bhadla Rajasthan ||260 |
|Sub Total I ||760 |
|Total I (A)+(B)+(C) ||19959 |
|II Projects under JVs & Subsidiaries || |
|Coal Based Projects || |
|21. Nabinagar- JV with Railways Bihar ||750 |
|22. Nabinagar JV with BSPGCL Bihar ||1980 |
|23. Meja JV with UPRVUNL Uttar ||1320 |
|Pradesh || |
|Total II ||4050 |
|III Total On-Going Projects as on ||24009 |
|31.03.2016 (I)+(II) || |
*Subsequently 200 MW unit of Anantpur Solar has been commissioned on 01.04.2016 and 50MW on 29.07.2016.
In addition 250 MW of Rourkela Project by NSPCL had been awarded on 11.05.2016. As on31.07.2016 projects under construction (including JVs and subsidiaries) are 24009 MW.
@Work of Lata Tapovan HEPP stopped since 08.05.2014 as per orders of the Supreme Court.
7.2 New Projects
Your Company has awarded Telangana Phase-I (2X800 MW) Thermal Power Project Mandsaur(250 MW) and Bhadla (260 MW) Solar Projects during the Financial Year 2015-16.
As on 30.06.2016 your Company has projects for 6640 MW thermal capacity and 768 MWrenewable capacity under bidding.
7.3 New Technology & Initiatives
Your company has laid major stress on efficient utilization of resources and use oftechnological advancements for improving energy efficiency.
With emphasis on efficiency of electricity generation your Company has adopted ultrasuper critical technology by improving the steam parameters for North Karanpura (3X660MW)to 260 kg/ cm2 593oC/ 593oC. For Khargone (2X660MW) and Telangana (2X800 MW) steamparameter are 270 kg/ cm2 600oC/ 600oC. Plant efficiency of these units is expected toincrease by around 8% over that of a conventional sub-critical 500 MW unit and 3% overconventional super critical units using similar coal.
Development of Advance Ultra Super Critical technology:
Your Company has entered into an MOU with BHEL and Indira Gandhi Centre for AtomicResearch (IGCAR) for indigenous development of advanced ultra super critical technology.This will have enhanced efficiency of around 46% and about 18% less CO2 emission per unitof power generation as compared to 500 MW sub-critical thermal power units. The program istargeted to deliver a plant having 800 MW unit with steam parameters of 310 kg/sq cm710oC/720oC. Approval of Phase-I (R&D phase) of the project is under consideration ofGovernment of India.
Your Company as pioneer in Environment monitoring has already installed Ambient AirQuality Monitoring Stations (AAQMS) employing Nox Sox CO SPM & RSPM analysers in 20operating stations in 2009-10 and data is made available to CPCB. Similarly ContinuousEmission Monitoring System (CEMS) employing Nox Sox CO & CO2 analysers at stack forflue gas have been installed recently in various operating stations. Your company hasrecently introduced analysers for Mercury monitoring for both AAQMS and CEMS.
7.3.1 Energy Conservation Technology Absorption
Details of conservation of energy and technology absorption in accordance with section134(3) of the Companies Act 2013 read with Companies (Accounts) Rules 2014 forms part ofthis report as Annex-III.
7.4 Project Management
Your Company has established state-of-the-art IT enabled Project Monitoring Centre(PMC) for facilitating fast track project implementation. PMC has advanced features likeWeb-based Milestone Monitoring System (Webmiles) Project Review and Internal MonitoringSystem (PRIMS) etc. PMC facilitates monitoring of key project milestones and also acts asdecision support system for the management.
PMC is an integrated enterprise-wide collaborative system to facilitate consolidationof project related issues and their resolution. Features like SMS based informationdelivery; real time video capture storage and retrieval facility and video conferencefacility are extensively utilized for project tracking issues resolutions and managementinterventions. PMC has helped in providing effective coordination between the agencies andhas provided enhanced/ efficient monitoring of the projects leading to better and fasterproject implementation.
7.5 Capacity addition through Subsidiaries and Joint Ventures (JVs)
Besides adding capacities on its own your Company develops power projects through itssubsidiaries and joint ventures both in India and abroad.
The information of Indian Subsidiaries and JV Companies along with details of partnersof joint ventures engaged in power generation is given below:
|Name of ||JVPartner (s) ||Details |
|Company || || |
|KBUNL (Kanti Bijlee Utpadan Nigam Ltd.) ||Bihar State Power Generation Company Limited (erstwhile BSEB) ||A subsidiary Company in which NTPC holds 65% shares in joint venture with BSPGCL (erstwhile BSEB) took over Muzaffarpur Thermal Power Station having 2 units of 110 MW each from BSEB. Both the units of Stage-I have been declared on commercial operation. Total generation in FY 2015-16 was 778.96 MU at 40.31 % PLF. |
| || ||The Company has also taken up expansion of the project by 2X195 MW units. Unit#3 of Stage-II was commissioned on 31.03.2015 and Unit#4 of Stage-II on 24.03.2016. |
|BRBCL (Bhartiya Rail Bijlee Company Ltd.) ||Ministry of Railways ||A subsidiary of NTPC 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 of 250 MW was commissioned on 20.03.2016. Construction activities in other units are in progress. |
|NSPCL (NTPC-SAIL Power Co. Pvt. Ltd.) ||Steel Authority of India Ltd. (SAIL) ||A 50:50 Joint Venture Company between NTPC and SAIL owns and operates captive power plants for SAIL at Durgapur (120 MW) Rourkela (120 MW) & Bhilai (74 MW) and Bhilai PP-III (2X250 MW) which is supplying power to SAIL Chhattisgarh DNH and D&D. Its present installed capacity is 814 MW. |
| || ||Captive power plants (314 MW) recorded generation of 2359.40 MUs at 85.54 % PLF in FY 2015-16. |
| || ||Bhilai (2 x 250 MW) recorded a Generation of 3549.64 MUs at 80.82 % PLF in FY 2015-16. |
| || ||New Coal based Capacity Addition by NSPCL is presently being pursued at the following locations i.e. Rourkela PP-II Expansion (1 x 250 MW) under construction Durgapur PP-III (2 x 20 MW ) Bhilai PP-III Stage-II (1 x 250 MW/2 x 250 MW) under bidding. |
| || ||Solar Power Plants of 200 MW capacity at various plant locations of SAIL is also being pursued. Solar Power Plant of 50 MW capacity is being implemented in the first phase. |
| || ||NSPCL has paid dividend of Rs 60 Cr. to NTPC in FY 2015-16 |
|NTECL (NTPC Tamil Nadu Energy Co. Ltd.) ||Tamilnadu Generation and Distribution Corporation Limited (TANGEDCO) (erstwhile TNEB) ||A 50:50 JVC has commissioned (3x500 MW) coal based power project at Vallur Tamilnadu. |
| || ||All the units have been declared on commercial operation. Total generation of NTECL during FY 2015-16 was 7711.776 MUs at 58.53% PLF. |
|APCPL (Aravali Power Company Pvt. Ltd.) ||Indraprastha Power Generation Co Ltd. (IPGCL) and Haryana Power Generation Co Ltd. (HPGCL). ||This JVC is operating (3X500 MW) coal based Indira Gandhi Super Thermal Power Project. NTPC IPGCL and HPGCL have contributed equity in the ratio of 50:25:25. |
| || ||Total generation of APCPL during FY 2015-16 was 5798.185 MUs at 44.01% PLF. |
| || ||APCPL has paid divident of `63.48 crore to NTPC in FY 2015-16 |
|MUNPL (Meja Urja Nigam Pvt. Ltd.) ||Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd. (UPRVUNL) ||A 50:50 JVC is implementing 1320 MW (2X660 MW) coal based power project in the state of Uttar Pradesh. Construction activities are in progress. |
|NPGCL (Nabinagar Power Generating Company Pvt.Ltd.) ||Bihar State Power Generation Company Limited (erstwhile BSEB) ||A 50:50 JVC is setting up a (3x660 MW) Coal based plant at Nabinagar.Construction activities are in progress. |
|RGPPL (Ratnagiri Gas and Power Pvt. Ltd.) ||GAIL ICICI Bank SBI IDBI Canara Bank and MSEB Holding Co. Ltd. ||NTPC has a stake of 25.51%. |
| || ||Total 19 LNG Cargos were unloaded during FY 2015-16. |
| || ||PPAs have been signed by RGPPL with Central Railways (250 MW in the State of Maharashtra) West Central Railways (200 MW in the State of Madhya Pradesh) Western Railways (90 MW in the State of Gujarat) and South Eastern Railways (80 MW in the State of Jharkhand) based on allocation of 620 MW of RGPPL Power to Railways. |
| || ||RGPPL started generation of 250-270 MW (gross) on 26.11.2015 under PSDF scheme of GoI and supplied to Railways in the state of Maharashtra. Power flow to other divisions of Railways started w.e.f 09.01.2016 in Gujarat w.e.f 17.01.2016 in Jharkhand and w.e.f 22.01.2016 in MP. With this RGPPL started supplying around 500 MW power to Railways w.e.f 22.01.2016. |
| || ||Maharashtra and Gujarat have issued notification for waiver of STU transmission charges and losses. Notification by Jharkhand and Madhya Pradesh is awaited. RGPPL Board had approved the proposal for demerger of power & LNG Blocks into separate Companies. |
|ASHVINI (Anushakti Vidhyut Nigam Ltd.) ||Nuclear Power Corporation of India Ltd. (NPCIL) ||NTPC is having a stake of 49%. The company was formed for setting up nuclear power project(s). Department of Atomic Energy has permitted joint venture of two CPSEs to set up Nuclear Power Project due to change in definition of Government Company under Atomic Energy (Amendment) Act 2015. |
|PVUNL (Patratu Vidyut Utpadan Nigam Limited) ||Jharkhand Bijli Vitran Nigam Limited (JBVNL) ||PVUNL has been incorporated on 15.10.2015 as a subsidiary of NTPC with 74% stake in the Company and 26% of stake held by JBVNL to acquire establish operate maintain revive refurbish renovate and modernize the performing existing units and further expand capacity of Patratu Thermal Power Station District Ramgarh Jharkhand in two phases i.e. Phase-I (3X800 MW) and Phase II (2X800MW). |
| || ||Government of Jharkhand has issued the Notification dated 01.04.2016 for transfer of assets of Patratu Thermal Power Station to Patratu Vidyut Utpadan Nigam Limited. |
|Pan-Asian (Pan-Asian Renewables Private Limited) ||Asian Development Bank and Kyuden International Cooperation ||Pan-Asian was incorporated to develop projects portfolio of about 500 MW of renewable power generation resources in India. As it could not find third investor in spite of great efforts as such the company is under voluntary winding up. |
7.6 Hydro Power
Your Company now has its footprints in renewable energy by developing hydro projects asdetailed below:
A. Koldam HEPP (4x200 MW) is on the river Satluj at Barmana District Bilaspur(Himachal Pradesh). All the four units of 200 MW each have been declared commerciallyoperational on 18.07.2015. Since then the project is running successfully.
B. Tapovan Vishnugad HEPP (4x130 MW) is on River Dhauliganga District Chamoli(Uttarakhand). Project is under construction with approximately 70% work completed. Aftercompletion of 7.65 km out of 12.08 km of Head Race Tunnel (HRT) the contract wasterminated on 09.01.2014. Award of balance works of HRT placed on 09.03.2016. Constructionof Barrage Switchyard and Electro-Mechanical & HydroMechanical works are in progress.
C. Lata Tapovan HEPP (3x57 MW) is just upstream of Tapovan-Vishnugad HEPP. The workwas stopped by HonbleSupremeCourtthroughorderdated07.05.2014 for 24 Hydro Projectsin the State of Uttarakhand including Lata-Tapovan. The MOEF&CC constituted an expertbody which submitted its report on 19.10.2015 and MOEF submitted the same in court on05.11.2015 where Lata Tapovan had been recommended for implementation with compliance ofcertain additional conditions. Your Company submitted in Court on 19.11.2015 that theconditions recommended by expert body shall be strictly complied. On the hearing held on26.04.2016 Additional Solicitor General of India represented MOEF and informed the Courtthat Lata Tapovan Project must be implemented. The matter is still to be decided bythe Supreme Court.
For National Board of Wild Life (NBWL) Clearance for Tapovan- Vishnugad and LataTapovan HEPPs the proposal regarding redefining of Eco Sensitive Zone was discussed inUttarakhand State Cabinet Meeting and shall be forwarded for MOEF&CC GOI for itsapproval.
D. Rammam-III HEPP (3x40MW) This project is situated on river Rammam in TeestaBasin Darjeeling (West Bengal). Civil works of Barrage Power House HRT& S/Y are inprogress. The river has been diverted through a diversion channel and the work in theriver bed has been started for construction of Barrage.
7.7 Capacity Addition through Renewable Energy Sources
Your Company is adding capacity through renewable sources of energy to broad-base itsgeneration mix to ensure long term competitiveness mitigation of fuel risks and promotionof sustainable power development.
7.7.1 Under Green Energy Commitment:
Your Company has committed to develop 10 GW of Renewable Energy Projects under greenEnergy Commitment to Govt. of India. Your Company has already commissioned 310 MW of solarprojects as on 30th June 2016. 560 MW Solar Power Projects are under execution whichincludes Mandsaur Solar (250 MW) Bhadla Solar (260 MW) and Anantpur Solar (50 MW).
NITs have been issued for 1750 MW of Solar PV projects to be set up in the states ofAndhra Pradesh and Karnataka.
7.7.2 National Solar Mission:
Your Company has been entrusted to develop 15 GW Solar PV through National SolarMission (NSM) Phase-II in three tranches between 2014-15 to 2018-19 where the
Company will be the facilitator/trader between Discoms and developers. Your Companywill purchase power from the developers and sell it to the Discoms. Under Tranche-I 3000MW of Solar PV capacity upto 2016-17 has been planned. NITs for 3000 MW of Solar PVcapacity to come up in the states of Andhra Pradesh Rajasthan Karnataka Telangana andUttar Pradesh have been issued and awards placed for 2520 MW projects till 30th June2016. The developers have been selected through reverse auction.
8. STRATEGIC DIVERSIFICATION- INCREASING SELF-RELIANCE
8.1 In order to strengthen its competitive advantage in power generation businessyour Company has diversified its portfolio to emerge as an integrated power major withpresence across entire power value chain through backward and forward integration intoareas such as coal mining power equipment manufacturing power trading and distribution.
Your Company continuously explores business opportunities through market scanning andadopts new business plans accordingly.
8.2 The details of subsidiary companies engaged in business other than in powergeneration are as under:
8.2.1 NTPC Electric Supply Company Limited (NESCL) a wholly owned subsidiary wasincorporated to foray into the business of distribution and supply of electrical energy asa sequel to reforms initiated in the power sector. The Company was implementing RajivGandhi Gramin Vidyutikaran Yojna (RGGVY) projects on turnkey basis and undertaken turnkeyexecution of sub-stations for utilities and project management consultancy. Theshareholders of NESCL have transferred existing business of deposit and consultancy worksunder RGGVY from NESCL to NTPC on 01.04.2015.
This subsidiary had also dis-associated with the business of retail distribution ofpower in various industrial parks developed by Kerala Industrial InfrastructureDevelopment Corporation (KINFRA) through its Joint Venture Company namely KINESCO Powerand Utilities Private Limited as the future prospects of the JV Company are bleak. Theshares held by NESCL had been purchased by KINFRA on 17.12.2015 and thus NESCL had ceasedto be the joint venture partner of KINESCO.
8.2.2 NTPC Vidyut Vyapar Nigam Limited (NVVN) a wholly owned subsidiary isinvolved in power trading.
During the year 2015-16 the Company transacted business with various State ElectricityBoards spread all over the country and traded 12766 MUs of electricity. The Company isdesignated Nodal Agency for implementation of Jawahar Lal Nehru National Solar MissionPhase-I by purchasing and selling of grid connected bundled solar power across thecountry. NVVN has also been designated as the nodal agency for cross border trading ofelectricity with Bhutan Bangladesh and Nepal.
PPA was signed on 15.02.2016 between NVVN and Nepal Electricity Authority (NEA) forsupply of upto 80 MW power from Feb to Jun 16 through 400 KV Muzaffarpur-Dhalkabartransmission line. Power supply to NEA started on 18th Feb 2016.
NVVN has paid dividend of Rs 20 Crore to NTPC in FY
8.3 The details of other joint venture companies which are taking up activities inother business related areas are given below:
|Name of Company ||JV Partner ||Activities Undertaken |
|UPL (Utility Powertech Ltd.) ||Reliance Infrastructure Limited ||Takes up assignments of construction erection and supervision of business in power sector and other sectors like O&M services Residual Life Assessment Studies non-conventional projects etc. UPL has paid dividend of Rs 5 Cr. to NTPC in FY 2015-16. |
|NASL (NTPC ALSTOM Power Services Pvt. Ltd.) ||ALSTOM Power Generation AG (ALSTOM) ||Takes up renovation and modernization assignments of power plants both in India and in other SAARC countries. |
| || ||NASL has paid dividend of Rs 0.6 Cr. To NTPC in FY 2015-16. |
| || ||R&M including RLA work orders are under execution. Bids have also been submitted for other work orders. |
| || ||Due to acquisition of thermal power business of Alstom by GE NTPCs consent & waiver on certain clauses of Shareholders Agreement are required. |
| || ||Matter is under discussion with GE. |
|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. |
| || ||The Company is working on Energy Audit of Buildings Perform Achieve Trade (PAT) Scheme work and standard & labeling work of BEE consultancy work implementing Bachat and agricultural & municipal pump replacement for various State Govts. |
| || ||The Company has paid dividend of Rs 67.95 lacs for 2014-15 to your Company. |
|NHPTL (National High Power Test Laboratory Pvt. Ltd.) ||NHPC PGCIL DVC and CPRI ||The Company is setting up High Voltage Transformer (HVTR) Lab and Medium Voltage Transformer (MVTR) Lab at Bina M.P. |
| || ||for short circuit testing of Transformers upto 765 kV. |
| || ||Installation of 100KV isolator Matrix structure in MVTR is in progress. |
|NPEX (National Power Exchange Ltd.) ||NHPC PFC TCS BSE IFCI Meenakshi DPSC ||The Company was formed to facilitate promote assist regulate and manage nationwide trading of all forms of electrical energy and also to settle trades in a transparent fair and open manner. In view of the change in market scenario and the fact that NTPCs objective of joining NPEX has not been met till date the Company is being voluntary wound up. |
|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 Company has developed manufacturing facility at Mannvaram. |
|(BF-NTPC) BF-NTPC Energy Systems Limited ||Bharat Forge Limited ||This Company was incorporated to manufacture castings forgings fittings and high pressure piping required for power projects and other industries. However since the project could not take off it has been decided to wind up BF-NTPC. The proposal is awaiting clearance from Ministry of Power. |
|TELK (Transfor- mers and Electricals Kerala Limited) ||Acquisition of 44.6% stake in TELK from Government of Kerala on June 19 2009 ||The Company deals in manufacturing and repair of Power Transformers. |
|ICVL (Inter- national Coal Ventures Private Limited) ||CIL SAIL RINL NMDC ||ICVL was formed for acquisition of stake in coal mines/ blocks/ companies overseas for securing coking and thermal coal supplies. In view of lack of suitable commercially viable opportunities for thermal coal NTPC 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 by NTPC. |
|NTPC-SCCL (NTPC SCCL Global Ventures Private Limited) ||The Singareni Collieries Company Limited ||NTPC-SCCL was formed for acquisition/ development of mines beneficiation processing O&M of coal/ lignite blocks and selling of coal/ lignite produced thereof. As the Company could not attain its objectives it is under voluntary winding up. |
|HURL (Hindustan Urvarak & Rasayan Limited) ||Coal India Limited (CIL) ||HURL was incorporated on 15.06.2016 with Coal India Limited in which each NTPC and CIL shall hold 50% in the equity of the Company. It has been formed for taking up revival of fertilizer plants of Fertilizer Corporation of India Limited at Sindri Jharkhand and Gorakhpur Uttar Pradesh by setting up ammonia urea plant at each location. |
9. GLOBALISATION INITIATIVES
9.1 Trincomalee Power Company Limited (TPCL) a 50:50 joint venture between yourCompany and Ceylon Electricity Board was formed to undertake the developmentconstruction establishment operation and maintenance of a coal based electricitygenerating station of (2X250 MW) capacity at Trincomalee at Sri Lanka. EIA clearance wasgranted by Central Environmental Authority (CEA) on 02.02.2016 with some specificconditions. However Secretary Ministry of Power & Renewable Energy Govt. of SriLanka (GoSL) has requested Secretary (Power) GoI to form a Joint Working Group toexplore the possibility of changing fuel source of Power Project from Coal to LNG.
9.2 Bangladesh-India Friendship Power Company Private Limited a 50:50 jointventure Company between NTPC and Bangladesh Power Development Board (BPDB) was formed fordeveloping a (2X660 MW) Coal based power project (Maitree Super Thermal Power Plant) atKhulna Division Rampal Bangladesh. EPC contract of the project except township had beenawarded to BHEL. Other activities are also in progress. An MoU has been signed withBangladesh Shipping Corporation (BSC) on 24.01.2016 to explore the possibility of BSCtaking up part/full coal logistics for the Project.
10. CONSULTANCY SERVICES
Consultancy Wing of your Company offers services like Engineering Operation &Maintenance Management Project Management Contracts & Procurement ManagementQuality Management Training & Development etc.
These services have been provided in international markets in Gulf countriesBangladesh Nepal Sri Lanka and Bhutan.
On international front Consultancy Wing has been associated with Trincomalee PowerCompany Ltd. As Owners Engineer for setting up their (2x250 MW) Coal Based PowerProject. It is also providing O&M Management
Services to (2X120 MW) Siddhirganj Peaking Power Plant of Electricity GenerationCompany of Bangladesh under a World Bank funded contract. On the domestic frontConsultancy Wing has been effectively sharing its expertise with State Central PSUs andother clients. This includes Owners Engineer Services to The Singareni Collieries CompanyLimited for their coal based power project in Adilabad district Telangana and ProjectMonitoring Services to MPPGCL for (2x600MW) Shree Singaji TPP & (2x250MW) Satpura TPPby deputing NTPC experts at site.
11. FINANCING OF NEW PROJECTS
The capacity addition programs shall be financed with a debt to equity ratio of 70:30in case of thermal and hydro projects and that of 80:20 in case of solar projects. Yourdirectors believe that internal accruals of the Company would be sufficient to finance theequity component for the new projects. Given its low geared capital structure and strongcredit ratings your Company is well positioned to raise the required borrowings.
Your Company is exploring domestic as well as international borrowing options includingoverseas development assistance provided by bilateral agencies to mobilize the debtrequired for the planned capacity expansion program.
The details of funding are discussed in the Management and Discussion Analysis Reportwhich forms part of this Report.
12. FIXED DEPOSITS
Your Company has discontinued the acceptance of fresh deposits and renewals of depositsunder Public Deposit Scheme with effect from 11.05.2013. As such there were no depositswhich were not in compliance with the requirements of Chapter-V of the Companies Act 2013The 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/ non-receipt of claims.
13. FUEL SECURITY
13.1 During the year the supply position of coal and gas is given as under:
13.1.1 Coal Supplies
Your Company has entered into long term Fuel Supply Agreement with Coal India Limited(CIL) and The Singreni Collieries Company Limited (SCCL) for total Annual ContractedQuantity (ACQ) of 152.978 MMT & 11.2 MMT respectively. The total ACQ of 164.2 MMT ofcoal from CIL & SCCL is signed for 33515 MW units already commissioned/ to becommissioned.
The Company also had a short-term Memorandum of Understanding (MOU) with SCCL forsupply of 3.5MMT of coal for Ramagundam Simhadri and Kudgi (start-up coal) stations forsupply till March 2016. Short-term MOU for one year had been signed with EasternCoalfields Limited (ECL) for supply of 5.5 MMT of coal. Another short term MOU signed withNorthern Coalfields Limited (NCL) in 2014-15 was extended till 31.03.2016 for supply ofbalance 2.0 MMT of coal to enhance coal supply to non NCL linked stations as perrequirement. The coal supplies for 2016-17 is tied up mainly through FSA and supplementalthrough MOU/ e-auction alongwith balance quantity or imported coal of last year.
During the year under review your Company had made coal tie-up for Barh Stage-II(2X660MW) units through MOU with CCL and ECL for 6.66 MTPA of coal at notified pricewhich helped stations to eliminate usage of costly coal thereby bringing down the cost ofgeneration. Your Company was also allocated bridge linkages by Special SLC (LT) forBarethi (4X660MW) Barh II (2X660MW) Darlipalli (2X800MW) Tanda II(2X660MW) Lara I (2X800MW) Kudgi I (3X800MW) and Bilhaur (2X660MW) projects.Your Company was issued Letter of Assurance for tapering coal linkage for TelanganaPhase-I (2X800MW) by WCL.
13.1.2 Domestic Coal and Imported Coal
During 2015-16 your Company received 161.8 MMT of coal as against 167.4 MMT in 2014-15marking a decrease of 3.3%.
Total domestic coal supply during 2015-16 was 152.3 MMT as against 151.1 MMT during2014-15. Out of 152.3 MMT of coal 145.2 MMT was from Annual Contracted Quantity of coal.The total coal supply from CIL was 138.5 MMT and from SCCL was 13.8 MMT.6.3 MMT of coalwas procured through MOU during 2015-16.
During 2015-16 your Company imported 9.7 MMT (including SWAP) of coal as against 16.4MMT in 2014-15.Sipat station received 0.53 MMT of domestic coal against swapping ofimported coal with GSECL.
During the year under review approx. 57.2% of coal (domestic and international) wastransported through merry-go-round (MGR) system of your Company.
13.1.3 Sourcing of coal through E-auction
Your Company participated in one e-auction for Vindhyachal Stage-V in the year 2015-16and approx. 1.88 LMT of coal had been allocated. Total coal received through e-auction was0.29 MMT during 2015-16 as compared to 0.94 MMT during 2014-15.
13.1.4 Supply through Inland Waterways
During 2015-16 about 0.716 MMT imported coal has been supplied through inlandwaterways to Farakka station under a Tripartite Agreement with IWAI and service provider.
13.1.5 Rationalisation of Linkage
With the initiatives of Ministry of Power and Ministry of CoalInter-MinisterialTaskForcehasrecommendedrationalization of linkage for optimization oftransportation cost and de-congestion of railway network. In this respect your Companyhas rationalized the linkage of Ramagundam and Simhadri during 2015-16. For Ramagundamamendment to FSA was signed on 21.01.2016 with SCCL for ACQ of 11.2 MMT (previous ACQ-10.2MMT) in lieu of FSA with MCL and SECL for ACQ of 0.5MMT each for Simhadri reducing ACQwith MCL from 9.82 MMT to 8.32MMT and corresponding quantity of 1.5MMT rationalized forECL. Estimated annual saving in transportation cost taking Ramagundam and Simhadritogether is around Rs 35.95 crore.
13.1.6 Swapping of coal with GSECL
Under swapping agreement with GSECL Sipat station has received around 0.53 MMT of SECLcoal with saving of around Rs 50 crore on account of railway freight.
13.1.7 Commencement of third party sampling CIMFR
In the meeting held under the Chairmanship of Honble Minister of State (I/c) forPower Coal & NRE on 28.10.2015 tripartite MOU between NTPC CIL and CSIR-CIMFR wasfinalized for sampling and analysis at loading end. Member Power Utilities and CIMFR hadalso finalized the bilateral MOU between Power Utility and CIMFR for sampling and analysisat unloading end. These tripartite and bilateral MOUs have been signed.
Commercially binding bilateral and tri-partite agreements between NTPC CIL andCSIR-CIMFR have been signed on 12th 13th July 2016 based on the above mentioned MoUsto enable CIMFR to start sampling and analysis in a phased manner.
CIMFR has started sampling at the loading points at NCL (Jayant Amlori Dudhichua andNigahi) supplying coal to Singrauli Rihand and Vindhyachal; SECL (Gevra and Dipika)supplying coal to Korba and Sipat MCL (Lingraj and Kaniha) supplying coal toTalcher-Kaniha and WCL (New Majiri) supplying coal to Mouda with their own resources andfacilities from NTPC and the coal companies. For other cases CIMFR will be taking upsampling & analysis activities in phases.
This will help your Company in reducing the cost of generation as CIMFR can ensure thatthe grade billed by coal companies is actually supplied to stations of the Company.
13.2 Gas supplies
During 2015-16 your Company received 5.20 MMSCMD of gas and RLNG as against 6.41MMSCMD received during 2014-15. The gas off-take in 2015-16 included 4.92 MMSCMD ofdomestic gas 0.06 MMSCMD of long-term/ spot RLNG and 0.22 MMSCMD of e-bid RLNG. Gasoff-take was less due to less availability of generation schedule on RLNG from thebeneficiary Discoms.
Your Company has Administered Price Mechanism (APM) gas agreements up to the year 2021and Panna-Mukta-Tapti (PMT) gas agreements up to the year 2019 with GAIL India Limited.The agreement for non-APM gas with GAIL is valid till November 2016 and is likely to beextended further. Further Government of India came out with a unique scheme oftilisation of Gas Based Generation Capacity wherein RLNG was allocated in reversee-bidding with discounts/ tax waivers and with Power System Development Fund (PSDF)support from GOI. Your Company participated in Phase-II bidding under the scheme andsuccessfully won and utilised the allocated e-bid RLNG equivalent to ~90MW in Dadri andAuraiya gas stations for the period of October 2015 to March 2016.
For additional gas requirement over and above the supplies under long-term domesticgas/ RLNG agreements your company has been making arrangements for tie-up and supply ofspot RLNG from domestic suppliers on Reasonable Endeavour basis based onrequirement and availability from time and time. There has been no generation loss onaccount of lack of availability of gas/ RLNG during the year.
13.3 Development of Coal Mining projects
YourCompanyhadbeenallocatedeightcoalblocksnamely Pakri-Barwadih Chatti-BariatuKerandari Talaipalli Dulanga Banai Bhalumuda and Mandakini-B by the Government ofIndia. In addition Government of India has also allocated Kudanali-Luburi coal blockjointly to your company and J&K
State Power Development Company Limited (J&KSPDCL) with NTPCs share of coalreserves in this block being two-third. Joint Venture Agreement had been signed betweenNTPC and J&KSPDCL on 15.06.2015 for formation of 67:33 joint venture company forexploration development and operation of the coal block.
Similarly Banhardih coal block allocated earlier to Jharkhand Urja Utpadan NigamLimited has now been allocated to Patratu Vidyut Utpadan Nigam Limited a subsidiarycompany incorporated between NTPC and Government of Jharkhand.
With about 7 billion metric tonnes of geological reserves estimated from our own eightcoal blocks altogether your Company expects to produce about 107 Million Metric Tonnes ofcoal per annum.
In Pakri-Barwadih mining operations have commenced from the western quarry with effectfrom 17.05.2016. Mining operation is also expected to start from the eastern quarry ofthis block shortly after MOEF&CC issues the amendment to the environment clearance.For coal transportation from Pakri-Barwadih Bandag-Hazaribagh Railway sidingfunded by NTPC is now operational with commencement of coal transportation fromCCLs Amarpali block to Barh Power Station of company.
Your Company has progressed well in other coal blocks too. Subsequent to the issuanceof Allotment orders by Ministry of Coal Government of India forest clearance for DulangaCoal Block has been accorded by MOEF&CC on 23.12.2015. NITs have been published forappointment of Mine Developer-cum Operator (MDO) for Talaipalli Dulanga andChatti-Bariatu coal blocks and techno-commercial bids have been received.
After completion of detailed exploration in Banai coal block Geological Report (GR)has been received from CMPDIL on 13.04.2016 and is now under approval at Ministry of Coal.For Bhalumuda coal block detailed exploration has been completed and draft GR is underfinalization by CMPDIL. For Mandakini-B coal block Company has awarded a contract toCMPDIL for carrying out detailed exploration and for preparation of GR and drillingactivities have commenced. Your company has initiated the process for acquisition ofmining area land in these three new blocks i.e. Banai Bhalumuda and Mandakini-B.
The joint venture company namely CIL NTPC Urja Private Limited formed with CoalIndia Limited is exploring development and operation of washery reject-based FBC powerplants near upcoming/ existing coal washery of Coal India Limited.
13.4 Exploration Activities
In Cambay exploration block (CB-ONN-2009/5) held by your Company as operator with100% participating interest drilling of all seven exploratory wells have been completedand testing of wells is in progress. In the KG basin exploration block viz. KG-OSN-2009/4where ONGC is the operator and NTPC has 10% stake the exploration activities are inprogress and ONGC has submitted a proposal to the Government of India for reduction inminimum work programme as the permitted area of the block for exploration has been reducedbecause of non-grant of defence clearance. The other KG basin exploration block viz.KG-OSN-2009/1 and the Andaman basin exploration block viz. AN-DWN-2009/13 where ONGC wasthe operator and NTPC had 10% stake had been relinquished to Government of India as perthe advice from Operator (ONGC).
14. BUSINESS EXCELLENCE: GLOBAL BENCHMARKING
To achieve higher levels of excellence your company has developed and adopted its ownBusiness Excellence Model on the lines of globally reputed Excellence Modelssuch as Malcom Baldrige Model USA and EFQM Model of Europe. This model has been deployedat our Business Units (Stations) and your Company carries out assessment of generatingstations using this framework of excellence. The assessment process is aimed atidentifying the areas for enhancing stakeholders engagement accelerating criticalprocesses and developing leadership potential. The outcome of this model is identificationof organizational strengths opportunities for improvement issues of concern and bestpractices. In the financial year 2015-16 the 6th cycle of assessment was completed inwhich 21 generating stations were assessed by a team of certified and proficientassessors. Business Excellence Awards for Best Performance to Ramagundam and motivationalawards to Sipat and Talcher-Kaniha stations were presented by the Union Minister of PowerGOI in the Indian Power Stations Conference- 2016 held at New Delhi.
Contemporary quality initiatives and techniques like Quality Circles ProfessionalCircles 5S integrated management system (IMS) etc have been deployed across theorganization for continuous improvement. Our Quality Circle teams of workmen have beenconsistently representing your Company at national and international Quality Circleconventions and bringing many laurels. In the year 2015-16 Aqua Quality Circle fromRihand station represented your Company in the International Convention of Quality ControlCircle (ICQCC-2015) held at Changwon South Korea.
15. RENOVATION & MODERNISATION
In the present scenario of severe resource constraint Renovation and Modernization(R&M) of power plants is considered to be a cost-effective option which can complementnew capacity addition as R&M schemes have a shorter gestation period with allclearances land water fuel and beneficiaries available. To this end R&M is beingcarried out for the purpose of life extension of units performance improvementsavailability and reliability improvement and improved environment compliance. It ensuressafe reliable and economic electricity production by replacement of worn-outdeteriorated or obsolete electrical mechanical instrumentation controls and protectionsystem by state-of-the-art equipment.
Keeping in view the ageing of the fleet over the years investment approval accordedtill date for R&M in 19 stations (Coal & Gas based) is `11148.80 crore. Asagainst this cumulative expenditure till 31.03.2016 is Rs 6794.36 crore. Out of thisR&M capital expenditure in the financial year 2015-16 was Rs 924.37 crore With a viewto removing technological obsolescence renovation of control & instrumentation(C&I) has been taken up in 9 stations at Singrauli-I (5X200MW) & Singrauli II (2X500 MW) Korba I (3X200MW) & Korba II (3X500 MW) Ramagundam -I(3X200MW) & Ramagundam II (3X500MW) Farakka-II (2X500 MW) Dadri Thermal- I(4X210MW) Unchahar- I (2X210MW) Talcher STPS-I (2X500MW) Kahalgaon-I (4X210 MW) andRihand (2X500 MW). During 2015-16 C&I R&M was completed in one 500 MW unitof Singrauli (3X200 MW) and (3X500 MW) units of Korba two 200 MW units and three 500 MWunits of Ramagundam four units of 210 MW of Dadri Thermal two units of 210 MW of FGUTPSboth 500 MW units of Talcher STPS 500 MW unit of Farakka one 210 MW unit of Kahalgaonand one 500 MW unit of Rihand and one 500 MW unit of Talcher STPS. On completion ofthese schemes C&I systems in these stations have now been brought nearly on par withthe new builds.
Owing to very high operating temperatures R&M of Gas Turbines including theirControl & Instrumentation is essential after around 15 years of life. By 31.03.2016this activity was completed in all 4 Gas Turbines (GT) each in Kawas and in Auraiya andall 3 GTs in Gandhar. R&M activity for GT C&I ST WHRB in Anta Auraiya andR&M of GT in Gandhar R&M of C&I systems for Dadri gas is in progress.
As a responsible corporate citizen it has always been your Companys endeavour toensure low levels of pollution from its power stations. With a view to maintain a cleanatmosphere in and around the power plant for reducing particulate emission levels fromgenerating stations Renovation and Retrofitting of ElectrostaticPrecipitator(ESP)packageshavebeenawardedandwork is in progress in Singrauli-I & II(5X200MW+2X500MW) Farakka-I (3X200MW) Unchahar-I (2X210MW) Korba-I & II(3X200MW+3X500MW) Rihand-I (2X500MW) Vindhyachal-I & II (6X210MW+2X500MW) TalcherSTPS I & II (2X500MW+4X500MW) and Talcher TPS-II (2X110MW). During 2015-16 ESPR&M of two units of 210MW and two units (2X210MW) of Badarpur one unit each ofTalcher (110MW) and Rihand (500MW) has been completed. Moving Electrode ElectrostaticPrecipitator (MEEP) technology is being adopted for the first time in the country inRihand Stage-I (Unit#1) and work is in advanced stage.
To derive benefits of the latest advancements in technology in cooperation with CEAEEC/VGB/ Steag Germany a study has been taken up on ESP performance improvement using CFDmodeling in Unit#6 (500MW) of Ramagundam. CFD modeling is completed and are planned forimplementation. In yet another initiative under the aegis of Ministry of Power RLA ofUnit#3 of 210 MW of Dadri Thermal station was done by JCOAL and draft report has beensubmitted by them. This is an identified activity under the ongoing CEA-JCOAL cooperationas per India-Japan Energy Dialogue (IJED).
16. HUMAN RESOURCE MANAGEMENT
16.1 Your Company takes pride in its highly motivated and competent Human Resourcethat has contributed its best to bring the Company to its present heights. Theproductivity of employees is demonstrated by increase in generation per employee andreduction of Man-MW ratio year after year. The over-all Man-MW ratio for the year 2015-16excluding JV/subsidiary capacity is 0.55 and 0.51 including capacity of JV/ Subsidiaries.Generation per employee was 11.19 MUs during the year based on generation of NTPCstations.
The total employee strength of the company (including JV/ subsidiary) stood at 23133as on 31.3.2016 against 24067 as on 31.3.2015.
| ||FY 2015-16 ||FY 2014-15 |
|NTPC || || |
|Number of employees ||21633 ||22496 |
|Subsidiaries & Joint Ventures || || |
|Employees of NTPC in ||1500 ||1571 |
|Subsidiaries & Joint || || |
|Ventures || || |
|Total employees ||23133 ||24067 |
The attrition rate of the NTPC executives (including Executive Trainees and thoseposted in Subsidiaries and JVs) during the year was 1.05%.
16.2 Employee Relations
Employees are the driving force behind the sustained stellar performance of yourcompany over all these years of companys ascendancy. As a commitment towards yourCompanys core values Employees Participation in Management was made effectivebased on mutual respect trust and a feeling of being a progressive partner in growth andsuccess. Communication meetings with unions and associations workshop on production andproductivity etc were conducted at projects regions and corporate level during the year.
Both employees and management complemented each others efforts in furthering theinterest of your company as well as its stakeholders signifying and highlighting over-allharmony and cordial employee relations prevalent in your Company.
16.3 Safety and Security
Occupational Health and safety at workplace is one of the prime concerns of CompanyManagement and utmost importance is given to provide safe working environment and toinculcate safety awareness among the employees. Your company has a 3-tier structure forOccupational Health and Safety management namely at Stations/ Projects at Regional HeadQuarters and at Corporate Centre. Safety issues are discussed in the highest forum ofmanagement like Risk Management Committee (RMC) Management Committee Meeting (MCM) ORTsPRTs etc. All of your Companys stations are certified with OHSAS-18001/IS-18001.Regular plant inspection and review with Head of Project/Station is being done. Internalsafety audits by safety officers every year and external safety audits by reputedorganizations as per statutory requirement are carried out for each Project/Station.Recommendations of auditors are regularly reviewed and complied with. Height permit andheight 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 statutoryrules/provisions to look after safety of men & materials. For strict compliance &enforcement of safety norms and practices by the contractors safety clauses are includedin General Conditions of Contract/ Erection Conditions of Contract.
Detailed emergency plans have been developed and responsibilities are assigned to eachconcerned to handle the emergency situations. Mock drills are conducted regularly to checkthe healthiness of the system. Most of your Companys plants have been awarded withprestigious safety awards conferred by various Institutions/ Body like Ministry of Labour& Employment-Govt. of India National Safety Council Institute of DirectorsInstitution of Engineers (India) in recognition of implementing innovative safetyprocedures and practices.
Security: Your Company recognizes and accepts its responsibility forestablishing and maintaining a secured working environment for all its installationsemployees and associates. This is being taken care of by deploying CISF at all units ofyour Company as per norms of MHA. Concrete steps are being taken for upgradingsurveillance systems at all projects/ stations by installing state-of-the-art securitysystems.
16.4 Training and Development
As the power leader of India your Company has also always endeavoured to be in theforefront of creation and dissemination of knowledge. Its sustained performance leadershiphas to a large extent been achieved on the platform of comprehensive training anddevelopment programs for its employees. A large number of professionals from otherorganizations in the power sector have also benefitted immensely from the training anddevelopment programs of your Company. Many organisations in the country adopt practicesand systems developed by the Company.
The learning activities are being driven by a comprehensive infrastructure comprisingPower Management Institute (PMI) at the corporate level and Employee Development Centers(EDCs) at sites providing learning on management technical competencies and leadership.At the foundation of the learning structure are the EDCs at Projects and Stations. EDCstake care of training requirements of non-executives and junior level executives atprojects and stations. The training requirements of middle and senior level executives arecatered to by PMI the apex learning centre of your Company. This learning grid enables usto provide learning solutions for practically every aspect of the power value chaincovering the strategic tactical and operational facets right down to the shop floor.
Initiatives taken by PMI:
(i) During 2015-16 PMI conducted almost 400 training programmes covering nearly 7700professionals logging a total of approximately 26000 training mandays.
(ii) Post Graduate Certificate in Project Management (PGCPM) programme in collaborationwith IIM-Indore for developing long term project management competency. Under thisinitiative executives from public and private sector utilities/companies from variousStates have been given skill based training to augment their capacity addition programmes.(iii) One week exposure at Wharton School in June-July 2015 under the programme StrategicManagement Initiative for Leadership Effectiveness (SMILE) after a 3 days intervention inNew Delhi for top management group of 22 General Managers and Executive Directors of NTPCto revitalize their perspective and re-align their strategic orientation for sustainableleadership practices. (iv) Special programs on Enterprise Risk Management for senior levelexecutives. (v) Total 6 weeks duration programme during July-October 2015 for ABBat Abu Dhabi on Power Plant Operation and Simulator Training for Combined Cycle Gas PowerPlant. (vi) Conducted 62 training programs through Web conferencing platform atworkstations during 2015-16.
(vii) Developed 20 e-learning packages for end users of ERP-SAP. (viii) Conductedseveral customized training programmes for the benefit of various State utilities CPSEsand private sector companies. In all 1084 participants from other organizations gottrained at PMI during 2015-16.
(ix) Opened "NTPC School of Business" for running 15 months flagship programtitled "Executive PostGraduate Diploma in Management" (EPGDM) from August 2015.
(x) Implementing skill development initiatives of NTPC for the countrys youth asa nodal agency. Till now your Company has adopted 18 ITIs and set up 8 new ITIs near itspower stations thus associating with total 26 ITIs. These initiatives by your Companyresulted in creation of total 1831 new seats by starting of new trades/units.Cumulatively a total of 26448 students benefitted from this initiative till 31.03.2016.For these ITI students your Company organised 47992 mandays of industrial training/plantvisits. These skill development initiatives resulted in your Company being conferred theASSOCHAM "Award for Vocational Training 2015-16".
(xi) Your Company has partnered with the Ministry of Skill Development andEntrepreneurship Government of India to contribute in realising the vision of"Skill India".
(xii) 10 new programs on Safety have been introduced in PMIs Training Calendarfor 2016-17.
(xiii) A number of programs for establishing Solar and Wind energy projects and forprotection of Environment have been added.
17. SUSTAINABLE DEVELOPMENT (SD)
Your company has adopted the triple bottom-line approach recognisingPeople Planet and Profit as the primary pillars of corporate sustainability and believesthat Development should not endanger the natural systems. Your company is preparingSustainability Report based on the Global Reporting Initiative (GRI). Sustainabilityreporting has helped us in measuring and monitoring our Companys performance. It hasserved as an important management tool helping us re-look at our Companys systemspolicies and procedures.
Your company has developed a policy and in accordance with a Sustainable DevelopmentPlan prepared for FY 2015-16. The main focus area of Sustainable development Plan coverswaste management water management bio- diversity promotion of renewable energy. Majoractivities carried out under this plan included plantation of trees in and around NTPCinstallation of rooftop of Solar PV on public utilities buildings and on schoolsinstallation of solar powered pump rain water harvesting rehabilitation of water bodiesinstallation of air quality monitoring systems in major cities studies on impactassessment and carrying capacity river basin. A major activity for conservation of OliveRidley Sea Turtles has been taken up.
Business Responsibility Report is attached as Annex-X and forms part of the AnnualReport.
A total expenditure of Rs 33.85 Crore was incurred on these SD projects duringFinancial Year 2015-16.
17.1 Inclusive Growth Initiatives for Social Growth 17.1.1 Corporate SocialResponsibility (CSR):
Your Company commits itself to contribute to the society discharging its corporatesocial responsibilities through initiatives that have positive impact on society at largeespecially the community in the neighborhood of its operations by improving the quality oflife of the people promoting inclusive growth and environmental sustainability.
Focus areas of CSR & Sustainability activities are Health Sanitation DrinkingWater Education Capacity Building Women Empowerment Social Infrastructure Developmentsupport to Differently-abled Person and activities contributing towards EnvironmentSustainability. During the year special thrust has been given to the "SwachhVidyalaya Abhiyan" making available about 29000 toilets in government schools forthe benefit of students especially girl children covering 82 Districts in 17 Statesacross the country. Your Company spent Rs 491.80 Cr during the financial year 2015-16towards CSR initiatives. Amount spent i.e. Rs 491.80 Cr includes unspent amount of Rs78.30 crore for the year 2014-15.
17.1.2 NTPC Foundation
NTPC Foundation is engaged in serving and empowering the differently-abled andeconomically weaker sections of the society. Details of expenditure incurred andinitiatives undertaken by the Company under CSR are covered in the Annual Report on CSRannexed as Annex-VII to this Report.
17.1.3 Rehabilitation & Resettlement (R&R)
Your Company is committed to help the populace displaced for execution of its projectsand has been making efforts to improve the socio-economic status of Project AffectedPersons (PAPs). In order to meet its social objectives your Company is focusing oneffective R&R of PAPs and undertaking community development activities in and aroundthe projects.
R&R activities are initiated at projects by undertaking need based communitydevelopment activities in the area of health education water capacity buildinginfrastructure etc by formulating Initial Community Development (ICD) Plan inconsultation with concerned Panchayat district administration and opinion makers of thelocality. Company addresses R&R issues in line with its R&R Policy with anobjective that after a reasonable transition period the conditions of affected familiesimprove or at least they regain their previous standard of living earning capacity andproduction levels. As per the Policy a detailed Socioeconomic Survey (SES)/other Surveyis conducted by a professional agency to create a baseline data of PAPs. This followsformulation of a Rehabilitation and Resettlement (R&R) Plan after adequateconsultation with stakeholders in Village Development Advisory Committee(VDAC) which comprises representatives of PAPs Gram Panchayat your Company andDistrict Administration. R&R Plan consists of measures for rehabilitationresettlement and need based community development activities.
R&R plan expenditure is implemented in a time bound manner so as to complete itsimplementation by the time the project is commissioned. A social impact evaluation isbeing conducted by a professional agency to know the efficacy of R&R Planimplementation for future learning and improvements.
17.1.4 R&R achievements during the year:? Initial Community Development (ICD)Plan:
ICD Plan provision for Pudimadaka project enhanced.
Implementation of earlier approved ICD activities continued at Bilhaur project.
?? Rehabilitation and Resettlement (R&R) Plan:
R&R Plans for Vindhyachal-V and Rammam-III covering R&R obligations andcommunity development facilities in the area of Health Education Sanitation Drinkingwater Infrastructure facilities finalized in consultation with stakeholders and approved.
R&R Plan provisions for Lara project enhanced to take care of additionalrequirement for IIIT Raipur and for Darlipalli to take care of additional requirement forSundargarh Medical College & Hospital.
R&R activities were implemented at the new Greenfield/Brownfield Thermalprojects at Barh Bongaigaon Barethi Darlipali Gadarwara Khargone Muzaffarpur KorbaKudgi Lara Meja Mouda North-Karanpura Solapur Tanda Unchahar-IV VallurVindhyachal-IV Hydro projects at Koldam Lata-Tapovan Tapovan-Vishnugad and Coal MiningProjects at Pakri-Barwadih Chhatti-Bariatu Kerendari Dulanga and Talaipalli whereinR&R Plans/packages were finalized in consultation and participation of thestakeholders and approved earlier as well as at Rammam-III and Vindhyachal-V projectswhere the R&R Plans have been approved during the year.
?? Socio-economic Survey (SES)/ Need assessment Survey (NAS)/ Census and Survey(C&S):
SES for Katwa Meja railway siding and NAS for Pudimadaka completed. SES forTalcher-Thermal and C&S for Khargone railway siding is under progress.
?? Focus on Health:
For the benefits of project affected persons and neighbouring populationMobile Health Clinic under R&R provisions at Kudgi Nabinagar (NPGCL)Pakri-Barwadih and Nabinagar (BRBCL) projects started earlier continued during the year.
17.2 Environment Management Initiatives for preserving Environment VisionStatement on Environment Management:
"Going Higher on Generation lowering GHGintensity" Your Company has always envisaged environment protection as one of itsprime responsibilities and focuses its efforts to mitigate the impact of its operation onsurrounding environment. To meet the environmental challenges of 21st century and beyondthe Company has adopted sound environment management practices and advanced environmentprotection system to minimize impact of power generation on environment.
Your Company is undertaking massive renovation & modernization to upgrade airpollution equipments to reduce SPM emissions well below current statutory limits. It hasadopted advanced and high efficiency technologies such as super critical boilers forcommissioned and upcoming green field projects. Around 12-15% of the project cost is spenton various environment protection equipments such as Electrostatic Precipitators (ESPs)Liquid Waste Treatment Plants (LWTP) Ash Water Recirculation System (AWRS) dry ashextraction system dust extraction suppression system ambient air quality monitoringsystem flue gas conditioning system and desulphurization system etc.
Your company is augmenting its capacity by installing solar power systems and smallhydel power systems attached to its thermal power stations wherever possible so as toencourage garnering of renewable energy resources. The These measures are aimed not onlyto achieve reduction in pollution and minimize use of precious natural resources emissionsper unit of but also to lead to reduction of CO2 generation thereby reducing globalwarming.
17.2.1 Control of Air Emissions:
High efficiency Electro-static Precipitators (ESPs) with efficiency of the order of99.97% and above with advanced control systems have been provided in all coal basedstations to keep Particulate Matter (PM) below the prevailing permissible limits. Allup-coming new plants are being provided with ESPs designed in such a manner that wouldcater to the notified future stringent norms. Performance enhancement of ESPs operatingover the years is being carried out by augmentation of ESPs fields retrofitting ofadvanced ESP controllers and adoption of sound O&M practices. Flue Gas Conditioningsystems have also been provided at our old units which are helping in reduction of SPMemissions below statutory limits even during coal quality variations due to blending ofcoal etc. control in coal fired plants is achieved by controlling NOx its production byadopting best combustion practices (primarily through excess air and combustiontemperatures controls). Over and above this since tall stacks are provided in coalstations gases emitted through stacks is widely dispersed and diluted. control systems(hybrid burners In gas based stations NOx or wet DeNOx) have been provided for goodcombustion practices.
Fugitive emission from ash pond is controlled by maintaining water cover treeplantation on abandoned ash ponds water spray and earth cover in inactive lagoons.Providing dust suppression and extraction system in CHP area has further added toreduction in fugitive dust in the vicinity of power stations.
17.2.2 Control of water pollution and promotion of water conservation: Variouswater conservation measures have been taken up to reduce water consumption in powergeneration by using 3Rs (Reduce Recycle & Reuse) as guiding principle. Provision ofadvanced treatment facilities such as Liquid Waste Treatment Plants (LWTP) RecyclingSystems for Ash Pond Effluent called Ash Water Recirculation System (AWRS) and closedcycle condenser cooling water systems with higher Cycle of Concentration (COC) rain waterharvesting wherever possible and reuse of treated sewage effluent for horticulturepurposes are some of the measures implemented in most of the stations. All these measureshave resulted in reduction of effluent discharge from the power plants of your Company.
In view of water stressed scenario water conservation and reduction in waterconsumption per unit of generation has assumed great importance. NTPC has taken aproactive approach of making all its power stations to operate with ZLD (Zero liquiddischarge) progressively in phases. Implementation of ZLD at six power plants are atvarious stages of implementation during this fiscal year. In addition drain separation aspre requisite to ZLD has been completed in six stations viz. Singrauli FaridabadRamagundam Talcher Super Gandhar and Kayamkulam. This concerted effort of NTPC will notonly conserve the water but also will be able the meet the requirements of recentlynotified environmental norm of water consumption by MoEF&CC.
17.2.3 Automation of environment measurement system: All the existing powerstations are equipped with continuousambientairqualitymonitoringstations(AAQMS) to capturethe real time data of PM 10 PM 2.5 SO2 NOx and access thereof viz. and access has beenprovided to the Regulators such as Central Pollution Control Board and State PollutionControl Boards. Additional ozone analyzers for ambient air are also being providedphase-wise at the existing stations. Continuous Emission Monitoring Systems (CEMS) tomonitor emissions of SO2 and NOx in all its existing units on real time basis areinstalled and commissioned in addition to the opacity meter installed for monitoring ofparticulate emission. Installation of real time monitors for pollutants in effluents(EQMS) is also completed for all its existing projects. For all the upcoming projectsreal time monitors for ambient air effluents and emissions are included in theengineering packages during design stage itself.
17.2.4 Revised Emission Norms
Till 7th December 2015 the emission norms for coal based thermal power stationsstipulated emission limits for particulate matter only. For the control of gaseouspollutants in ambient air a minimum stack height was stipulated. However MOEF&CCvide notification dated 7th December 2015 has stipulated the emission limits for Oxidesof Nitrogen Oxides of Sulphur and Mercury also. The emission limits depend on the unitsize and age of the unit and shall be applicable from 7th December 2017. This shallrequire modifications in design of the power plants as well as additional pollutioncontrol systems. Your Company is designing its new power plants to comply with new norms.However in older units there may be constraints due to Technology being used Spaceavailable for retrofitting and financial viability of the retrofits. The matter has beentaken up with MOEF&CC and is being examined on case to case basis with respect tocompliance.
17.2.5 Tree Plantation:
Your Company is undertaking tree plantation covering vast areas of land in and aroundits projects and till date about 23 million trees have been planted throughout thecountry. The afforestation has not only contributed to the aesthetics but alsohelped in carbon sequestration by serving as a sink for pollutants releasedfrom the stations and thereby protecting the quality of ecology and environment. Furtheryour Company has embarked upon long-term Memorandums with State authorities to assistNational Commitment of INDC in COP 21 by planning to plant 10 million trees across thecountry.
17.2.6 ISO 14001 & OHSAS 18001 Certification:
All of your Companys stations have been certified with ISO 14001 and OHSAS 18001by reputed National and International certifying agencies as a result of sound environmentmanagement systems and practices.
17.3 Quality Assurance and Inspection (QA&I)
Your company continues to place great emphasis on quality with the view to secure longterm reliability and availability of its productive assets and the investments. This isensured by committing adequate number of qualified and trained human resources for qualityrelated activities maintaining field laboratories at the construction sites and pursuingtime tested systems & processes resulting in world class standards of performance ofthe plants. In your company quality needs are identified & planned keeping in mindthe interests of all the stake holders by interacting with major Power Equipmentmanufacturers of the world thereby embracing the latest technologies available. Thequality requirements associated with such technologies are rigorously pursued duringmanufacturing erection & commissioning of various products/ systems/ services. Thedynamic feedback system ensures that the gaps if any are filled through resetting themethods and standards resulting in continuous improvement.
Your companys robust performance on all parameters is a testimony to thesoundness of the quality system deployed. Your Company is represented on various technicalcommittee of ISO and IEC and is actively contributing in formulation and updating of powersector technical and quality standards/ guidelines to serve the national as well asinternational community at large.
17.4 Clean Development Mechanism (CDM)
Your Company is addressing climate change issues proactively.
Your Company has taken several initiatives in CDM projects in Power Sector. It has goneahead with six projects in CDM foray. 8MW Small Hydro Power Project at Singrauli 5MW eachsolar PV projects at Dadri Port Blair (Andaman & Nicobar) and Faridabad solar powerprojects had already been registered with UNFCCC CDM Executive Board with estimated annualCertified Emission Reductions (CERs) potential of approx 68000. Another two projects i.e.50 MW Solar PV plant at Rajgarh (MP) and 10 MW Solar PV Project at Unchahar are inadvanced stage of registration with estimated annual CERs potential of approx. 88000.
17.5 Ash Utilisation
During the year 2015-16 588.28 lac tonnes of ash was generated and 41.35% viz. 243.23lac tonnes of ash had been utilized for various productive purposes. Important areas ofash utilization are cement & asbestos industry ready mix concrete plants(RMC) road embankment brick making mine filling ash dyke raising & landdevelopment. Pond ash from all stations of your Company is being issued free of cost toall users. Fly ash is also being issued free of cost to fly ash/ clay-fly ash bricksblocks and tiles manufacturers on priority basis over the other users from all coal basedthermal power stations. The funds collected from sale of ash is being maintained in theseparate account and this fund is being utilized for development of infrastructurefacilities promotion and facilitation activities to enhance ash utilization.
Your Company has an Ash Utilisation Policy which is a vision document dealing with theash utilization issue in an integral way from generation to end product. This policy aimsat maximizing utilization of ash for productive usage along with fulfilling social andenvironmental obligations as a green initiative in protecting the nature and giving abetter environment to future generations.
The quantity of ash produced ash utilized and percentage of such utilization during2015-16 from your Companys Stations is at Annex-VIII.
17.6 CenPEEP towards enhancing efficiency and protecting Environment
Your Company initiated a unique voluntary program of GHG emission reduction byestablishing Center for Power Efficiency and Environmental Protection(CenPEEP) and under this program it is estimated that cumulative avoided is 43.6million ton since 1996 by sustained CO2 efficiency improvements.
CenPEEPisworkingforefficiencyandreliabilityimprovement in stations through strategicinitiatives development and implementation of systems and introduction of new techniques& practices. Critical efficiency parameter aberrations and draft power consumption aremonitored using PI based real time programs and dashboards. These programs assistoperating engineers in tracking the gaps in heat rate and auxiliary power consumption andtrending the degradation of equipment performance.
CenPEEP is also working towards reduction in specific water consumption and auxiliarypower consumption in coal and gas stations. A dedicated group CEETEM Centre forEnergy Efficient Technology & Energy Management conducts regular Energy audits toidentify potential improvement areas and improvement actions.
CenPEEP is actively involved in training and development of power professionals forcompany and other utilities in the power sector in the areas of Boiler & AuxiliariesTurbine & Auxiliaries Cooling Towers RCM and PdM technologies etc.
CenPEEP coordinated implementation of Perform Achieve & Trade (PAT) scheme underPrime Ministers National Mission on Enhanced Energy Efficiency (NMEEE) in NTPC coal& gas plants. Station specific action plans were jointly prepared and implemented.Your Companys coal and gas stations exceeded the Net Heat Rate improvement targetsand earned around 169000 EScerts (Energy saving certificates) in PAT-1 cycle. Howeverformal notification is awaited.
18. NETRA R&D Mission in Power Sector
The Company as the leading power utility of the country has allocated 1% of PAT forR&D activities. Company has focused its research efforts to address the major concernsof the sector as well as the futuristic technology requirements of the sector. In thiseffort your company has established NTPC Energy Technology Research Alliance (NETRA) asstate-of-the-art centre for research technology development and scientific services inthe domain of electric power to enable seamless work flow right from concept tocommissioning. The focus areas of NETRA are - Efficiency Improvement & Cost Reduction;New & Renewable Energy; Climate Change & Environmental protection which includeswater conservation Ash utilization & Waste Management. Research Advisory Council(RAC) of NETRA comprising of eminent scientists and experts from India and abroad is inplace to steer research direction. Scientific Advisory Council (SAC) provides directionsfor undertaking specific applied research projects aimed to develop techniques in powerplant for efficient reliable and environment friendly operation with emphasis on reducingcost of generation. NETRA also provides Advanced Scientific Services to all its stationsand many other utilities in the area of oil/water chemistry environment electricalRotor dynamics etc. for efficient performances.
NETRA laboratories are accredited as per ISO 17025 and its NDT laboratory also beenrecognized as well known "Remnant Life Assessment Organization" under the BoilerBoard Regulations1950.
The details of activities undertaken by NETRA are given in Annex-III which forms partof the Directors Report.
19. IMPLEMENTATION OF OFFICIAL LANGUAGE
Several Steps were taken for the proper propagation and implementation of OfficialLanguage Policy of Government of India in your Company.
Meetings of Official Language Implementation Committee were held on 25th June 21stSeptember 28th December 2015 & 24th March 2016 in which the implementation of Hindiin the Organization was reviewed thoroughly. Various Hindi competitions were organizedduring Hindi fortnight from 1st to 14th September 2015 in the corporate office as well asin all other establishments of the Company. Corporate Hindi Magazine "VidyutSwar" was conferred special commendation award by the TOLIC (Town Official LanguageImplementation Committee) Delhi. Hindi workshops were conducted for the variousdepartments of the Company. Renowned Hindi scholars inspired the participants of Hindiworkshops to use Hindi in their day-to-day official work.
Office orders formats and circulars were issued in Hindi as well. Importantadvertisements and house journals were released in bilingual form in Hindi as well as inEnglish.
Your Companys website also has a facility of operating in bilingual form inHindi as well as in English.
20.1 Vigilance Mechanism
Your Company ensures transparency objectivity and quality of decision making in itsoperations and to monitor the same the Company has a Vigilance Department headed byChief Vigilance Officer a nominee of Central Vigilance Commission. Vigilance set upcomprises of Vigilance Executives in Corporate Centre and Projects. Corporate Vigilanceconsists of four cells namely Investigation & Processing Cell DepartmentalProceedings Cell Technical Examination Cell and MIS Cell deal with various facets ofvigilance mechanism. For speedier disposal of vigilance cases works have been assigned toVigilance Executive at each of the regions of the Company.
376 surprise checks were made during the period.
20.2 Implementation of Integrity Pact
Your Company is committed to have total transparency to its business processes and as astep in this direction; it signed a Memorandum of Understanding with TransparencyInternational India in December 2008. The Integrity Pact is being implemented for allcontracts having value exceeding Rs 10 crore. Presently your Company is having twoIndependent External Monitors to oversee the implementation of Integrity Pact Programme.
20.3 Implementation of various policies/ circulars
Fraud Prevention Policy and Whistle Blower Policy have been implemented in your Companyto build and strengthen a culture of transparency. Your Company has also laid down acomprehensive policy for withholding and banning of business dealings with agencieswherever the situation so demands.
During 2015-16 161 complaints were received out of which 93 complaints were carriedto a logical conclusion and the remaining 68 complaints are under various stages ofinvestigation. Appropriate disciplinary action has also been initiated wherever necessary.
20.4 Vigilance Awareness Week and Workshops
During 2015-16 51 preventive vigilance workshops were conducted at various projects/places in which 1371 employees participated.
Vigilance awareness week was observed from October 26 2015 to October 31 2015 in allNTPC projects and stations/ establishments. The theme for the Vigilance Week wasPreventive Vigilance as a Tool of Good Governance during which variouscompetitions amongst the employees like slogan writing/ essay writings were held. Aspecial booklet titled Handbook for Vigilance Executives was also publishedcontaining guidelines for vigilance executives for conducting technical examination ofpackages investigations alongwith circular issued by the Vigilance Commission. Besidesthese as advised by the Vigilance Commission NTPC also conducted outreach activitiesduring Vigilance Awareness Week in total 405 Colleges/ Schools/ Institutions all over thecountry organizing elocutions debates lectures etc on ethics integrity and corruptionand its ill effects for students.
21. REDRESSAL OF PUBLIC GRIEVANCES
Your Company is committed for resolution of public grievance in efficient and timebound manner. Company Secretary has been designated as Director (Grievance) to facilitateearliest resolution of public grievances received from President Secretariat PrimeMinisters Office Ministry of Power etc.
In order to facilitate resolution of grievances in transparent and time bound mannerDepartment of Administrative Reforms & Public Grievances Department of Personnel& Training Government of India has initiated web-based monitoring system atwww.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 tobe given. Your company is making all efforts to resolve grievances in above time frame.
22. RIGHT TO INFORMATION
Your Company has implemented Right to Information Act 2005 in order to provideinformation to citizens and to maintain accountability and transparency. The Company hasput RTI manual on website for access to all citizens of India and has designated a CentralPublic Information Officer (CPIO) an Appellate Authority and APIOs at all sites andoffices of the Company. During 2015-16 1456 applications were received under the RTIAct out of which 1384 applications were replied to till 31.03.2016.
23. USING INFORMATION AND COMMUNICATION TECHNOLOGY FOR PRODUCTIVITY ENHANCEMENT
Your Company has implemented an Enterprise Resource Planning (ERP) package coveringmaximum possible processes across the organization including subsidiaries. In addition tothe core business processes and Employee Self Service (ESS) functionality the ERPsolution also includes e-procurement Knowledge Management Business IntelligenceDocument Management and Workflow etc. The ERP system is fully managed through in-houseexpertise from process groups and technical groups. Parallely in-house solutions havebeen developed to take care of the non-ERP areas. A state of the art data centre withcentralized server facility for ERP to cater to the entire Company is in Operation atNOIDA. A 100% disaster recovery centre is also operational at Hyderabad for change over incase of any emergency. During the year under review security operation centre had beencommissioned to counter and mitigate security risks and no severe threats were observed.Project Monitoring Centre was upgraded to High Definition system. Disaster Recoverymechanism was 100% available during the year. Vendors Bill Tracking system launched forpilot site i.e. Dadri. Online Earnest Money Deposit refund process was implemented.
24. NTPC GROUP: SUBSIDIARIES AND JOINT VENTURES
Your Company has currently 5 subsidiary companies and 22 joint venture companies forundertaking specific business activities.
A statement containing the salient feature of the financial statement of yourCompanys Subsidiaries Associate Companies and Joint Ventures as per first provisoof section 129(3) of the Companies Act 2013 is included in the consolidated financialstatements. It does not contain information about Hindustan Urvarak & Rasayan Limitedwhich was incorporated on 15.06.2016.
The financial statements of subsidiary companies along with the respectiveDirectors Report are placed elsewhere in this Annual Report.
25. INFORMATION PURSUANT TO STATUTORY AND OTHER REQUIREMENTS
Information required to be furnished as per the Companies
Act 2013 and Listing Agreement with Stock Exchanges are as under:
25.1 Statutory Auditors
The Statutory Auditors of your Company are appointed by the Comptroller & AuditorGeneral of India. Joint Statutory Auditors for the financial year 2015-16 were (i) M/s T RChadha & Co. LLP New Delhi (ii) M/s PSD Associates Chartered Accountants NewDelhi (iii) M/s Sagar & Associates Chartered Accountants Hyderabad (iv) M/s Kalani& Co. Chartered Accountants Jaipur (v) M/s P. A. & Associates CharteredAccountants Bhubaneshwar (vi) M/s S. K. Kapoor & Co. Chartered Accountants Kanpurand (vii) M/s B. M. Chatrath & Co. Chartered Accountants Kolkata.
The appointment of Statutory Auditors for the financial year 2016-17 has been made bythe Comptroller & Auditor General of India.
25.2 Management comments on Statutory Auditors Report
The Statutory Auditors of the Company have given an unqualified report on the accountsof the Company for the financial year 2015-16. However they have drawn attention underEmphasis of Matter to Note No. 12 (i) & 35 (a) in respect of change inaccounting of capital expenditure on assets not owned by the Company with retrospectiveeffect taking guidance available in AS 10 notified by MCA on 30th March 2016 effectivefrom the financial year 2016-17; Note No. 22 (a) & (b) regarding billing &recognition of sales on provisional basis and measurement of GCV of coal on asreceived basis after secondary crusher pending disposal of the matter byCERC/Honble Delhi High Court and related matters as mentioned in said note; and NoteNo. 33 in respect of a Companys ongoing project where the order of NGT has beenstayed by the Honble Supreme Court of India and the matter is sub-judice.
The issues have been adequately explained in the respective Notes referred to by theAuditors.
25.3 Review of accounts by Comptroller & Auditor General of India (C&AG)
As advised by the Office of the C&AG the comments of C&AG for the year 2015-16alongwith management replies thereto are placed with the report of Statutory Auditors ofyour Company elsewhere in this Annual Report.
25.4 COST AUDIT
As prescribed under the Companies (Cost Records and Audit) Rules 2014 the CostAccounting records are being maintained by all stations of your Company. The firms of CostAccountants appointed under Section 148(3) of the Companies Act 2013 for the financialyear 2015-16 were (i) M/s Bandopadhyay Bhaumik & Co. Kolkata (ii) M/s S. Dhal &Co. Bhubhaneshwar (iii) M/s Musib & Co. Mumbai (iv) M/s Sanjay Gupta &Associates New Delhi (v) M/s Narasimha Murthy & Co. Hyderabad and (vi) M/s R.J.Goel & Co. Delhi.
The due date for filing consolidated Cost Audit Report in XBRL format for the financialyear ended March 31 2015 was September 30 2015 and the consolidated Cost Audit Reportfor your Company was filed with the Central Government on September 22 2015.
The Cost Audit Report for the financial year ended March 31 2016 shall be filed withinthe prescribed time period under the Companies (Cost Records & Audit) Rules 2014.
25.5 Exchange Risk Management
Company is exposed to foreign exchange risk in respect of contracts denominated inforeign currency for purchase of plant and machinery spares and fuel for its projects/stations and foreign currency loans.
In term of its Exchange Risk Management Policy during financial year 2015-16 theCompany has entered into derivative contracts amounting to USD 62 million equivalent indifferent currencies in respect of foreign currency loans exposure.
25.6 Performance Evaluation of the Directors and the Board
As required under the Companies Act 2013 and the Securities and Exchange Board ofIndia (Listing Obligations and Disclosure Requirements) Regulations 2015 evaluation ofperformance of directors including that of the Independent Directors and of the Board isto be carried out either by the Board or by the Nomination and Remuneration Committee orby the Independent Directors. It also requires disclosure of formulated criteria forperformance evaluation in Annual Report. In this regard the Ministry of CorporateAffairs through Notification dated 05.06.2015 has exempted the Government Companies fromthese provisions. The appointment of the Functional Directors Government NomineeDirectors and Independent Directors of your Company is made by the Government of India.Their terms & conditions of appointment as well as tenure of all directors are alsodecided by GOI and there is a well laid down procedure for evaluation of FunctionalDirectors & CMD as well as of Government Directors by Administrative/ respectiveMinistry. Also the performance of the Board of the Government Companies is evaluatedduring the performance evaluation of the MOU signed with the Government of India. YourCompany has made representation to SEBI for exempting Government Companies from evaluationof Directors and the Board. The matter is under consideration by the SEBI.
25.7 Secretarial Audit
The Board has appointed M/s Agarwal S. & Associates Company Secretaries toconduct Secretarial Audit for the financial year 2015-16. The Secretarial Audit Report forthe financial year ended March 31 2016 is annexed herewith marked as Annexure XI to thisReport.
The Managements Comments on Secretarial Audit Report are as under:
|Observations ||Managements Comments |
|Regulation 17(1) of Securities and Exchange Board of India (Listing O b l i g a t i o n & Disclosure Requirements) ||As per the Listing Agreements executed with the Stock Exchanges pursuant to SEBI LODR Regulations 2015 and DPE Guidelines on Corporate Governance by CPSEs the Company should have eight Independent Directors since Company has six functional Directors including the Chairman & Managing Director and two Government Nominee Directors on its Board. At present Company has three Independent Directors in position. |
|R e g u l a t i o n s 2015 (erstwhile Clause 49 (II) (A) & (B) of the Listing Agreement) and Clause 3.1.2 and 3.1.4 of DPE Guidelines on Corporate G o v e r n a n c e for Central Public Sector Enterprises w.r.t. composition of the Board of the Company. ||Being a Government Company the power to appoint the Directors on the Board of the Company vests with the President of India and accordingly the Company is from time to time requesting Ministry of Power to appoint requisite number of Independent Directors on its Board. |
25.8 Particulars of contracts or arrangements with related parties
During the period under review your Company had not entered into any materialtransaction with any of its related parties. The Companys major related partytransactions are generally with its subsidiaries and associates. All related partytransactions were in the ordinary course of business and were negotiated on an armslength basis except with Utility Powertech Limited which are covered under the disclosureof Related Party Transactions in Form AOC-2 (Annex- IX) as required under Section134(3)(h) of the Companies Act 2013. They were intended to further enhance theCompanys interests.
Web-link for Policy on Materiality of Related Party Transactions & also on Dealingwith Related Party Transactions has been provided in the Report on Corporate Governancewhich forms part of the Annual Report.
25.9 Significant and material orders passed by the regulators or courts or tribunalsimpacting the going concern status and companys operations in future: NIL
25.10 Adequacy of internal financial controls with reference to the financialreporting:
The Company has in place adequate internal financial controls with reference tofinancial reporting. During the year such controls were tested and no reportable materialweakness in the design or operation was observed.
25.11 Loans and Investments
Details of Investments covered under the provisions of Section 186 of the CompaniesAct 2013 forms part of financial statement attached as a separate section in the AnnualReport FY 2015-16.
Your Company had not granted any loans to parties during 2015-16 covered under Section186 of the Companies Act 2013.
25.12 Sexual Harassment of Women at Workplace
The Company has in place a Policy on Prevention Prohibition and Redressal of SexualHarassment of Women at Workplace in line with the requirements of the Sexual Harassment ofWomen at the Workplace (Prevention Prohibition & Redressal) Act 2013. InternalComplaints Committee (ICC) has been set up to redress complaints received regarding sexualharassment. All employees (permanent contractual temporary trainees) are covered underthis policy.
These ICCs have been constituted at all Projects/ stations also. Every three years theconstitution of these committees is changed and new members are nominated.
No complaint of sexual harassment was received by the ICC during the year 2015-16.
NTPC PMI has been conducting gender sensitization workshops for building acollaborative work culture across the organisation in association with the NationalCommission for Women. In these workshops employees both male and female are sensitizedand made aware about issues and laws pertaining to sexual harassment as well asappropriate behavior at the workplace. During 2015-16 PMI has conducted 12 such workshopsacross the organization covering 250 employees.
25.13 Procurement from MSEs
The Government of India has notified a Public Procurement Policy for Micro and SmallEnterprises (MSEs) Order 2012. The total procurement made from MSEs (including MSEsownedbySC/STentrepreneurs)duringtheyear2015-16was
` 559.51 crore which was 12.53% of total annual procurement by your Company. YourCompany orgainsed 12 vendor development programmes for MSMEs. Annual procurement plan forpurchases from MSEs is uploaded on www.ntpc.co.in.
25.14 Particulars of Employees
As per provisions of Section 197(12) of the Companies Act 2013 read with the Rule 5 ofthe Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 everylisted company is required to disclose the ratio of the remuneration of each director tothe median employees remuneration and details of employees receiving remunerationexceeding limits as prescribed from time to time in the Directors Report.
However as per notification dated 5th June 2015 issued by the Ministry of CorporateAffairs Government Companies are exempted from complying with provisions of Section 197of the Companies Act 2013. Therefore such particulars have not been included as part ofDirectors Report.
25.15 Extract of Annual Return:
Extract of Annual Return of the Company is annexed herewith as Annexure VI to thisReport.
25.16 Information on Number of Meetings of the Board held during the yearcomposition of committees of the Board and their meetings held during the yearestablishment of vigil mechanism/ whistle blower policy and web-links for familiarization/training policy of directors Policy on Materiality of Related Party Transactions and alsoon Dealing with Related Party Transactions and Policy for determining MaterialSubsidiaries have been provided in the Report on Corporate Governance which forms part ofthe Annual Report.
25.17 Para on development of risk management policy including therein the elementsof risks are given elsewhere in the Annual Report.
25.18 No disclosure or reporting is required in respect of the following items asthere were no transactions on these items during the year under review: 1. Issue of equityshares with differential rights as to dividend voting or otherwise.
2. Issue of shares (including sweat equity shares) to employees of the Company underany scheme.
The particulars of annexures forming part of this report are as under:
|Particulars ||Annexure |
|Management Discussion & Analysis ||I |
|Report on Corporate Governance ||II |
|Information on conservation of energy technology absorption and foreign exchange earnings and outgo ||III |
|Statistical information on persons belonging to Scheduled Caste / Scheduled Tribe categories ||IV |
|Information on Differently abled persons ||V |
|Extract of Annual Return ||VI |
|Annual Report on CSR Activities ||VII |
|Project Wise Ash Utilisation ||VIII |
|Disclosure of Related Party Transactions in Form AOC-2 ||IX |
|Business Responsibility Report for the year 2015-16 ||X |
|Secretarial Audit Report in Form MR-3 ||XI |
26. BOARD OF DIRECTORS
Shri I.J. Kapoor resigned from the post of Director (Commercial) on 20.08.2015 on beingappointed as Technical Member of the Appellate Tribunal for Electricity. Consequent uponcompletion of three years tenure Dr. A. Didar Singh had ceased to be theIndependent Director w.e.f. August 22 2015. Shri Rajesh Jain and Dr (Mrs.) Gauri Trivedihad been appointed as Independent Directors w.e.f. 18.11.2015 for a period of three years.
Shri Anil Kumar Singh ceased to be the Government Nominee Director w.e.f. 08.12.2015consequent his transfer from Ministry of Power.
Shri Aniruddha Kumar JS (Thermal) Ministry of Power has joined as Government NomineeDirector of the Company with effect from 25.02.2016.
Shri Seethapathy Chander has been appointed as the Independent Director on the Boardw.e.f. 22.06.2016.
On completion of five years tenure Dr. Arup Roy Choudhury ceased to be theChairman & Managing Director of the Company w.e.f. 31.08.2015 (A/N). In the absence ofregular Chairman & Managing Director the Ministry of Power through order dated28.08.2015 entrusted the additional charge of the post of Chairman & ManagingDirector to Shri A.K. Jha Director (Technical). He held the additional charge from01.09.2015 to 03.02.2016 after which Shri Gurdeep Singh joined as the Chairman &Managing Director of the Company on 04.02.2016. On Completion of three years tenureShri Prashant Mehta has ceased to be the Independent Director of the company w.e.f.29.07.2016 (A/N).
The Board wishes to place on record its deep appreciation for the valuable servicesrendered by Shri I.J. Kapoor Dr. A. Didar Singh Dr. Arup Roy Choudhury Shri Anil KumarSingh and Shri Prashant Mehta during their association with the Company. In accordancewith Section 152 of the Companies Act 2013 and the provisions of the Articles ofAssociation of the Company Shri S.C. Pandey and Shri K. Biswal shall retire byrotation at the Annual General Meeting of your Company and being eligible offersthemselves for re-appointment.
27. DIRECTORS RESPONSIBILITY STATEMENT
As required under Section 134 (5) of the Companies Act 2013 your Directors confirmthat: 1. in the preparation of the annual accounts the applicable accounting standardshad been followed along with proper explanation relating to material departures; 2. theDirectors had selected such accounting policies and applied them consistently and madejudgments and estimates that are reasonable and prudent so as to give a true and fair viewof the state of affairs of the company at the end of the financial year 2015-16 and of theprofit of the company for that period; 3. the Directors had taken proper and sufficientcare for the maintenance of adequate accounting records in accordance with the provisionsof the Companies Act 2013 for safeguarding the assets of the company and for preventingand detecting fraud and other irregularities;
4. the Directors had prepared the Annual Accounts on a going concern basis; 5. theDirectors had laid down internal financial controls to be followed by the company andthat 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 allapplicable laws and that such systems were adequate and operating effectively.
The Directors of your Company acknowledge with deep sense of appreciation theco-operation received from the Government of India particularly the Prime MinistersOffice Ministry of Power Ministry of New & Renewable Energy Ministry of FinanceMinistry of Environment Forests & Climate Change Ministry of Coal Ministry ofPetroleum & Natural Gas Ministry of Railways Department of Public EnterprisesCentral Electricity Authority Central Electricity Regulatory Commission Comptroller& Auditor General of India Appellate Tribunal for Electricity State GovernmentsRegional Power Committees State Utilities and Office of the Attorney General of India.
The Directors of your Company also convey their gratitude to the shareholders variousinternational and Indian Banks and Financial Institutions for the confidence reposed bythem in the Company. The Board also appreciates the contribution of contractors vendorsand consultants in the implementation of various projects of the Company. We alsoacknowledge the constructive suggestions received from the Office of Comptroller &Auditor General of India and Statutory Auditors.
We wish to place on record our appreciation for the untiring efforts and contributionsmade by the employees at all levels to ensure that the company continues to grow andexcel.
For and on behalf of the Board of Directors
| ||(Gurdeep Singh) |
| ||Chairman & Managing Director |
|Place: New Delhi ||DIN : 00307037 |
|Date: 3rd August 2016 || |