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NLC India Ltd.

BSE: 513683 Sector: Infrastructure
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OPEN 64.85
VOLUME 596537
52-Week high 92.40
52-Week low 49.90
P/E 8.90
Mkt Cap.(Rs cr) 9,367
Buy Price 0.00
Buy Qty 0.00
Sell Price 67.55
Sell Qty 1.00
OPEN 64.85
CLOSE 64.20
VOLUME 596537
52-Week high 92.40
52-Week low 49.90
P/E 8.90
Mkt Cap.(Rs cr) 9,367
Buy Price 0.00
Buy Qty 0.00
Sell Price 67.55
Sell Qty 1.00

NLC India Ltd. (NLCINDIA) - Director Report

Company director report

FOR THE YEAR 2020-21

Dear Members

It is indeed my proud privilege on behalf of our Board of Directors to present the 65thDirectors' Report on the business and operations of the Company together with the AuditedFinancial Statements for the year ended 31st March 2021 together with theAuditors' Report and comments on the accounts by the Comptroller and Auditor General(C&AG) of India.

Major Highlights

The Financial Year 2020-21 has been a year of good achievements for your Company withall round performance despite the challenges posed by COVID-19 and two untoward fireincidents in TS-II units. The significant highlights of achievements during the year2020-21 and during the current year to date are as follows:

• Dedication of Neyveli New Thermal Power Plant (NNTPP) & Tamil Nadu Solar 709MW to the Nation by the Hon'ble Prime Minister of India on 25th February 2021in the presence of then Hon'ble Chief Minister of Tamil Nadu & Hon'ble Minister ofCoal Mines & Parliamentary Affairs Govt. of India.

• Commissioning of Unit 2 (500 MW) of Neyveli New Thermal Power Plant (NNTPP) and17.5 MW Andaman Solar in the Renewable Energy front the Company reached above 6000 MW ofinstalled power generation capacity.

• The gross power generation from Renewable Energy was 2061.69 MU as against1486.03 MU in the previous financial year 2019-20 registering a growth of 38.74%

• Commencement of Coal production from the Talabira Coal Mines in Odisha since 26thApril 2020.

• Trading of 868.78 MU (Ex-bus) of power through Real Time Market (RTM) segment ofIEX from 01.06.2020 and earning of gross revenue of ' 216.20 crore.

• The Company has won 150 MW capacity in the Wind-Solar hybrid tender floated bySECI at a Tarrif rate of ' 2.34 per kWhr.

Operational Performance


Your Company has added 500 MW Thermal Power and 17.5 MW Renewable Power during 2020-21and retired 350 MW of its installed capacity. The retirement of TPS I Units were completedin Sep-2020. With this addition and the retirement the total installed capacity of theCompany as on date is 6061.06 MW.

Power Generation - Thermal Power & Renewable Power

During the year the total Power Generation (Gross) of 19322.00 Million Units (MU) andPower Export of 16723.92 MU have been achieved. The average Plant Load Factor (PLF) of theThermal Power Plants of the Company during the year 2020-21 was 59.14% as against theNational Average of 53.37%. During the year 2020-21 DISCOMS had surrendered 995.74 MU asagainst 1945.71 MU during 2019-20 and considering this power surrender the overall powergeneration would have been higher.

Mining - Lignite & Coal

Your Company is presently operating three opencast lignite Mines at Neyveli in theState of Tamilnadu and one opencast lignite Mine at Barsingsar in the State of Rajasthan.The total mining capacity of all the lignite mines is 30.60 MTPA. Your Company has alsostarted Coal Mining operations in Talabira II & III Coal Opencast Mines at Odishawith a mining capacity of 20.0 MTPA from 26th April 2020. Thus the totalmining capacity of your Company has increased to 50.60 MTPA.

The total overburden (OB) removal of 1501.62 lakh Cubic Metre (LM3) fromLignite & Coal Mines Lignite Production of 192.62 Lakh Tonne (LT) and coal productionof 10.13 LT have been achieved during the year2020-21.

Due to poor demand on account of pandemic situation and shutdown of few Units of TS-IIfor a substantial period due to untoward fire incidents demand of lignite for ThermalPower Plants was less and Lignite production was restricted accordingly during thefinancial year 2020-21.


The output per man-shift achieved during the year 2020-21 as compared with the previousyears are given below:

Product Unit 2020-21 2019-20
Lignite Tonne 14.07 15.99
Power KwHr 25054 29305

Financial Performance

During the year ended 31st March 2021 your Company on a standalone basishad registered a revenue from operations of ' 7249.63 crore as against ' 7916.30 croreduring the year 2019-20. The Profit Before Tax (PBT) and Profit After Tax (PAT) for theyear 2020-21 were ' 1753.40 crore and ' 1041.79 crore respectively as against '2204.59 crore and '1413.85 crore respectively during the previous year ended 31stMarch 2020.

On a consolidated basis the total revenue from operations for the year 2020-21 was '9846.09 crore as against '10320.56 crore in 2019-20. The PBT and PAT for the year2020-21 were ' 2254.40 crore and ' 1345.44 crore respectively as against ' 2345.11crore and ' 1452.98 crore respectively in the year 2019-20.

The details of profit earned for the financial year 2020-21 and appropriation of thesame are as follows:

Rs. In crore

Standalone Consolidated
Particulars 2020-21 2019-20 2020-21 2019-20
Revenue from operations 7249.63 7916.30 9846.09 10320.56
Profit Before Tax 1753.40 2204.59 2254.40 2345.11
Tax Provision 711.61 790.74 909.03 892.95
Profit /(Loss) for the Period (PAT) 1041.79 1413.85 1345.44 1452.98
Transfer (to) / from Interest Differential Fund Reserve (6.70) (8.72) (6.70) (8.72)
Transfer to PRMA Reserve Fund (7.18) (10.03) (7.18) (10.03)
Transfer to Contingency Reserve (10.00) (10.00) (10.00) (10.00)
Dividend (Interim / Final ) (138.66) (978.97) (145.88) (978.97)
Tax on Dividend 0.00 (181.21) 0.00 (201.23)
Ind AS - 116 Lease adjustment 0.00 (0.13) 0.00 (0.13)


For the year 2020-21 the Board of Directors of your Company had paid an InterimDividend of 10.00% (' 1.00 per equity share) and further your Board has also recommendeda final dividend of 15% (' 1.50 per equity share) subject to the approval of shareholders.The total dividend for the year 2020-21 including Interim Dividend already paid is 25% andthe same works out to ' 346.66 crore.

Share holding of GoI

The present shareholding of the President of India in the Company is 79.20%.

Capacity Addition

As stated earlier in this report during the year under review your company hassuccessfully completed the Neyveli New Thermal Power Project (2 x 500 MW) and Solar PowerProject in Andaman Islands and also commenced the production of Coal from Talabira CoalMines (20 MTPA). This Mine is expected to achieve normative coal production by Jan.2027.

As informed to the shareholders in the previous reports of Directors the BithnokLignite Mine Project linked to Bithnok Thermal Power Project and the Hadla Lignite MineProject linked to Barsingsar Thermal Power Extension Project have been kept presently onhold besides the above Expansion Project of Mine-IA Lignite Mines in Neyveli also is onhold.

Projects under implementation

The details of projects under implementation are as under:

Description Capacity Project Cost (Rs. in crore) Expected COD/Status
Power Sector (in MW)
Neyveli Uttar Pradesh Power Ltd. 3 X 660 MW 17237.80 (NLCIL share: 8791.28) Unit I:2021 Unit II&III: 2022
Mining Sector (in MTPA)
Talabira II & III OCP (including CHP & railway siding) 20 MTPA 2401.07 2027
South Pachwara Coal Block 9 MTPA 1795.01 (NLCIL share: 915.46) 2024
Expansion of Mine 1 & 1A 4 MTPA 709.06 -

Projects under formulation

The details of projects under formulation are as under:

Description Capacity Project Cost (Rs. in crore) Expected COD/Status
Power Sector (in MW)
Talabira Thermal Power Project in Talabira 3x800 MW 19422.44 2027
Renewable Sector
Solar Power Project (CLUVPL-JV of NLCIL & CIL) 1200 MW 4800.00 (NLCIL share: 2400) 2024

Corporate Plan

Your Company is in the process of reviewing the Corporate Plan taking into account thecurrent scenario of Power & Mining business.

Subsidiaries /Joint Venture (JV) Projects

NLC Tamil Nadu Power Limited (NTPL) - A Joint Venture between NLCIL and TANGEDCO -Tuticorin Power Project (1000 MW) in Tamil Nadu

NTPL the Subsidiary Company is operating 2X500 MW Coal based Thermal Power Plant atTuticorin in Tamil Nadu. During the year 2020-21 the power generation was 5290.58 MU(excluding surrender of 2742.18 MU) as against 4844.40 MU in the year 2019-20 with a PLFof 60.39%. NTPL witnessed heavy power surrender and reserve shut down mainly due to poordemand on account of COVID pandemic.

During the year ended 31st March 2021 NTPL registered a revenue fromoperations of '2629.46 crore as against '2434.72 crore registered in the year 2019-20.The Profit Before Tax & Profit After Tax for the year 2020-21 were '560.41 crore and'363.00 crore respectively as against '226.49 crore and '143.15 crore registered in theyear 2019-20. NTPL Board has recommended a dividend of 10% for the FY 2020-21.

Neyveli Uttar Pradesh Power Limited (NUPPL) - A Joint Venture between NLCIL &UPRVUNL - Ghatampur Thermal Power Project (GTPP) (1980 MW) linked to Pachwara South CoalBlock (9.0 MTPA) in Jharkhand

NUPPL the Subsidiary Company between NLC India Limited and UPRVUNL is implementingthe 3 x 660 MW Ghatampur Coal based Thermal Power Project (GTPP) at Ghatampur TehsilKanpur Nagar District in the State of Uttar Pradesh at a cost of '17237.80 crore. Therevised commissioning schedule of Unit-I is 01.11.2021 while in respect of other twounits the revised commissioning schedules are 31.03.2022 & 31.07.2022 respectively.Mock light up of Unit 1 was done 26.03.2021. However delay is expected in commissioningof Units due to ongoing COVID-19 pandemic.

NUPPL had signed a Power Purchase Agreement (PPA) with Uttar Pradesh Power CorporationLimited (UPPCL) for supplying 75% of the Power from the plant. Balance 25% has beenallotted to the State of Uttar Pradesh by Ministry of Power GoI for which the Company ispursuing with UPPCL to sign the PPA.

The coal supply for the GTPP is linked to Pachwara South Coal Block (PSCB) which is inearly stage of Mine Development. Based on the Company's request CEA had recommended CoalIndia Limited (CIL) to supply 0.99 MT (0.33 MT for each unit) coal to GTPP to facilitatecommissioning activities trial run & achieving COD etc. The remaining quantity ofCoal is expected to be supplied from the Talabira II and III mine belonging to the Companytill commencement of operation of PSCB. In line with the CEA recommendation CIL hasallocated 0.33 MT of coal (0.20 MT from NCL and 0.13 MT from BCCL) for Unit-1. Memorandumof understanding (MoU) for 0.20 MT supply of coal from NCL has been signed on 27.03.2021.

The project has achieved a CAPEX of '2260.10 crore in the year 2020-21. The cumulativeexpenditure incurred since inception up to 31st March 2021 is '11459.30 crore.

Pachwara South Coal Block (9.0 MTPA) in Jharkhand

NUPPL has been allotted with the Pachwara South Coal Block in the State of Jharkhandwith a capacity of 9.0 MTPA (Normative) & 13.50 MTPA (Peak) at an estimated cost of'1795.01 crore.

In order to develop and operate the above Coal Block MIPL GCL Infra contract PrivateLimited has been appointed as the Mine Developer Operator (MDO). Geological Report (GR)Mining Plan & Mine Closure Plan have been approved by MoC. Terms of Reference (ToR)for EC has been issued by MoEF & CC in favour of PSCB to carry out EIA/EMP study atPSCB.

Application for Forest Stage-I Clearance uploaded in MoEF& CC Portal while theGazette notification u/s 9 (1) & 11 (1) of CBA (A & D) Act 1957 has been issuedby MoC. Draft EIA/EMP report submitted to Jharkhand State Pollution Control Board Ranchifor conducting public hearing.

The Project has achieved a CAPEX of ' 5.90 crore in the year 2020-21. The cumulativeexpenditure incurred up to 31st March 2021 was ' 34.92 crore.

Coal Lignite Urja Vikas Private Limited (CLUVPL) - A Joint Venture Company betweenNLCIL & CIL

Your Company during the year under review had entered into a Joint Venture Agreementwith Coal India Limited (CIL) to implement thermal and solar power projects of 5000 MWcapacity by forming a JV Company with equity participation of 50% each. The JV Company"Coal Lignite Urja Vikas Private Ltd" has been incorporated on 10thNov.2020. The Board of the JV Company has given in-principle approval for participating inthe tariff based competitive Solar Power Project tenders to be floated by SECI and /or anysuch agencies.

The JV Company has received 'in-principle' approval from South Eastern CoalfieldsLimited (SECL) to render Project Management Consultancy (PMC) services for installation ofits proposed 40 MW Solar Project. Formal order for taking up Pre-Project activities isalso received in this regard.

Consultancy Services for Developing Coal Block

Your Company has been awarded with a work order for providing consultancy services toUttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) for selection of MDOsupervision & monitoring of exploration and other site activities for its SaharpurJamarpani Coal Block in Jharkhand.

MNH Shakti Limited

Mahanadi Coalfields Limited your Company and Hindalco jointly formed MNH ShaktiLimited with an equity participation of 70:15:15 to implement 20.0 MTPA Coal MiningProject in Talabira in the State of Odisha. The Talabira II & III Coal Blocksallocated for this purpose have been cancelled pursuant to the judgement of Hon'bleSupreme Court of India and the Coal Mines (Special Provisions) Ordinance 2014. The JVCompany has been proposed for winding up and necessary formalities are underway.

Loan Guarantees and Investments

Details of loans and investments covered under the provisions of Section 186 of theCompanies Act 2013 forms part of the Financial Statements.


The Company has not accepted any deposits from the public during the year.

Borrowings - Commercial Paper & Bonds

In order to optimise the finance cost the Company has pre-closed the General PurposeLoan from SBI on 3rd Jun 2020 amounting to ' 833.33 crore and term loan fromHDFC amounting to ' 1470.60 crore on 27th Jan 2021. Similarly your Companyhas pre-closed General Purpose Loan from MCL amounting to ' 458.33 crore on 19thAug 2021.


During the Financial year 2020-21 your Company has issued Unsecured Non-CumulativeNon-convertible Redeemable Taxable Bonds (in the nature of Debentures) in two tranchesfor a value of ' 500 crore & ' 1175 crore at a coupon rate of 5.34% & 6.05%respectively and with a maturity date of 11th April 2025 and 12thFebruary 2026 respectively.

Credit Rating for Borrowings

During the year your Company has obtained AAA rating for Long Term Borrowingsincluding Issue of Bonds and A1 + for Issue of Commercial Papers from Credit RatingAgencies.


Billing and Realisation from DISCOMS

• Realisation of Outstanding dues:

Your Company has made significant improvement in realization of dues from DISCOMsduring the FY 2020-21. During the year the company has raised invoices amounting to '7568.90 crore (Thermal Solar & Wind Bills) on DISCOMs and has realised an amount of' 8601.17 crore with a collection efficiency of 113.6%.

• Payment Security Mechanism:

Your Company has in place a robust payment security mechanism in the form of Letters ofCredit (LC). Apart from the LCs payment is secured by the Tri-Partite Agreements (TPAs)signed amongst the State Governments Government of India (GoI) and Reserve Bank of India(RBI). As per the TPAs any default in payment by the State owned Discoms can be recovereddirectly from the account of the respective State Governments in association with ReverseBank of India (RBI).

• Bill Discounting:

Your Company has successfully realized the power dues through Bill Discounting to thetune of '1542 crore (for Tamil Nadu Andhra Pradesh and Telangana) during the year.

• Realisation through Atmanirbhar Scheme:

As per GoI directives Discoms had availed Loans from REC/PFC under Atmanirbhar BharatLiquidity Scheme against their outstanding as on 30.06.2020 and your company received '3912 crore during the FY 2020-21.

Total outstanding Power Dues (including March 2021 Unbilled power export) as on 31stMarch 2021 is ' 6256.22 crore as against the Power Dues ' 7288.33 crore as on 31stMarch2020.

• Rebate Scheme:

In order to encourage early payment of dues by the beneficiary your Company is havinga rebate scheme whereby the maximum rebate of 1.75% is extended for early payment. ARebate of 1.75% shall be allowed for amounts credited to the Company's accounts for anyadvance payments made on 1st day of the Billing Month which is further gradeddown based on number of days.

Tariff Regulations

Central Electricity Regulatory Commission (CERC) has issued the CERC (Terms andConditions of Tariff) Regulations 2019 on 07.03.2019 which are applicable for the period01.04.2019 to 31.03.2024. The tariff of electricity generated from your Company's stationswould be determined by CERC based on these Regulations for the above-mentioned period.

CERC (Terms and Conditions of Tariff) First Amendment Regulations 2020 coveringEmission Control System has been issued on 25th August 2020. CERC (Terms andConditions of Tariff) Second Amendment Regulations 2021 covering Input Price Regulationsfor Integrated Mines has been issued on 19th February 2021 which will comeinto force from the date of notification of these Regulations in official Gazette.

Power Trading in Power Exchange

In line with CERC (IEGC) (5th Amendment) Regulations 2017 Your Company sold 1422.60million units of power from Thermal power stations in different market segments of thePower Exchange which made a revenue addition of ' 408.41 crore. The Company also traded113.86 MU of URS Power from NTPL in Power Exchange for which ' 45.70 crore of revenue wasrealized. As per appropriate regulations gains from the sale of URS Power were alsoshared with the beneficiaries.

Your Company participated in the Real Time Market (RTM) for electricity introduced byCentral Electricity Regulatory Commission (CERC) from the first day of introduction as the1st Seller from the Southern Region and stands as the top most seller in thecountry in this market for the FY 2020-21. Since the launching of RTM on 01.06.2020 nearzero surrender for DISCOMs power was achieved in 110 days which not only enabled theCompany to utilise the generation capacity more efficiently but also monetized surrenderedpower during day of operation thereby increasing Capacity Utilization Factor of Mines.Your Company also traded 868.78 MU (Ex-bus) of power through RTM segment of IEX from01.06.2020 earning a gross revenue of ' 216.20 crore.

After the implementation of RTM the actual surrendered quantity during the period from01.06.2020 to 31.03.2021 has considerably reduced to 568.96 MU in which the pre-dominantvalue of 243.75 MU (42.84%) was due to Reserves Regulation Ancillary Services which is aGrid security warrant. After implementation of Real Time Market with appropriatestrategy URS power sale efficiency has increased despite no significant increase in powerdemand from beneficiaries.

Marketing of Raw Lignite and excess Coal

During the year under consideration your Company had earned an aggregate Revenue fromsale of Raw Lignite and Coal amounting to ' 430.25 crore which includes ' 78.87 crorethrough sale of Talabira Coal.

Strengthening Customer Relationship

Customer focus is one of the core values of your Company. In line with this yourCompany maintains regular interactions with its Customers through meetingscorrespondences. Periodical reconciliation exercises are carried out with the customersregarding issues related to Power Sales & Accounts in order to maintain cordialrelationship with the customers and for smooth redressal of various disputes. Furtherregulatory mechanism which governs the Company gives equal opportunities to thestakeholders in all regulatory precepts including voicing of difference of opinions anddispute resolution in a fair manner following due regulatory processes.

Your Company has conducted an Annual Customer Meet on 05.11.2020 during the VigilanceAwareness Week to interact and for getting feedbacks from the customers of Raw Lignite toconduct e-Auctions in a transparent manner. Your Company has been organizing CustomerMeets continuously for the past 12 years.

Customer network for Coal based customers for Talabira Coal Mines and 6 new customersfor Raw Lignite from Neyveli Mines were developed for widening the Sales networkthroughout India during the FY 2020-21. Separate Marketing SOP's strategy for Open Salefor Coal from Talabira Mines was developed in the FY 2020-21 with the help of serviceprovider M-junction Services Limited. Sales promotional visits to customer plants weremade to survey the latest marketing trends prices change in process / methodology maintain good relationship with Customers and to augment sale.

Environment Compliance Measures

Your Company practices and promotes the best environment management plan since itsinception and is committed to environment friendly mining and power generation. TheEnvironmental Policy of your Company is in line with the Vision and Mission Statement.

Mass tree plantations have been undertaken during the year. Slope stabilisation of theMines Overburden dumps have been undertaken to convert the mine spoil into cultivable soilmaking it fit for habitation. The ambient air quality is being monitored regularly byTNPCB IIT Madras & the Company in the surrounding villages and is well within theprescribed norms.

Consequent to the amendments to Environment (Protection) Act 1986 the norms for waterconsumption and emissions from Power Plants [Particulate Matter (PM 2.5 & PM10)Sulphur dioxide (SO2) Oxides of Nitrogen (NOx) & Mercury (Hg)] have been madestringent for the existing as well as new Thermal Power Plants. In order to comply withthe applicable new environmental norms notified by MOEF & CC vide gazette notificationdated 07.12.2015 pertaining to SO2 FGD system is required to be installed in the existingas well as under construction lignite /coal fired power plants. Your Company's 2X125 MWBarsingsar TPP and 2X250 MW TPSII Expansion TPP (Neyveli) units adopting CirculatingFluidized Bed Combustion (CFBC) Technology are built with in-situ lime addition facilityalong with main plant to control SOX emission. ESP modification for the 2X125 MWBarsingsar TPP was taken up for compliance of MoEF emission norms on SPM. Tendering forthe FGDs adopting wet limestone based FGD technology for the pulverized lignite fired TPSI Expansion (2X210 MW) TPSII (7X210 MW) and Neyveli New Thermal Power Station(NNTPS-2X500 MW) Neyveli are in advanced stages. For these 210 MW Units special measuresare also being undertaken to reduce the specific water consumption and these Units complywith the revised NoX emission norms. Your Company is taking appropriate steps that arerequired to install emission control equipment as deemed fit to comply with the MoEF'srevised emission norms.


During the year your Company had taken Mega Insurance Policy for the Assets and Stocksof Production Units viz. Mines Thermals & Renewable Energy (RE). It broadly coversMaterial damage (MD) of all Mine assets and Material damage (MD) Machinery Breakdown(MBD) Fire Loss of Profit (FLOP) & Machinery Loss of Profit (MLOP) of all Thermal& RE assets. Assets of Service units are covered under Standard Fire and Special PerilPolicy (SFSP).

Rehabilitation & Re-settlement

Your Company takes good care of the Project Affected Persons (PAPs) through R&RPolicy measures thereby minimizing the trauma of displacement. The guidelines issued bythe Government of India from time to time on R&R for the on-going projects are beingduly complied with. Your Company develops the Re-settlement Centres (RCs) and alsoprovides good infrastructure facilities thereby helping the affected families to re-settlein the RCs. In addition to this legal compensation is also being paid with theco-operation of the District Administration.

Land Acquisition Act

The Tamil Nadu Government has revived the "TN acquisition of land for IndustrialPurposes Act 1997" through the "Tamil Nadu Land Acquisition Laws (Revival ofoperation Amendment and Validation) Act 2019." The Provisions for compensation andR&R as per Schedule-I II & III of "Right to Fair Compensation andTransparency in Land Acquisition Rehabilitation and Resettlement Act - 2013"(RFCTLARR) are applicable since 01.01.2014 to your Company.

Research and Development (R & D)

Centre for Applied Research & Development (CARD) is the in-house R&D Centre ofthe Company and has been recognized by the Department of Science & Technology. CARDhas been granted NABL accreditation by National Accreditation Board for Testing andCalibration Laboratories (NABL) based on the international standard ISO/IEC 17025:2005.

The major functions of CARD include:

• Carrying out Science & Technology (S&T) Research Projects

• Environmental monitoring

• Pollution level measurements

• Quality Control Testing & Consultancy Technical Services.

• Technology development patenting and commercialization based on the R&D andPilot Plant outcome

• Co-ordinating for S&T Projects undertaken by the Company institutionalservices to students special studies for operation & new schemes and new initiativesetc.

• Rendering analytical services towards quality control of various products /materials used in mines Power stations and other service units as well as outsideagencies on chargeable basis.

• R&D works on lignite utilization diversification product developmentby-product utilization solid waste management wasteland reclamation and introduction ofreal time monitoring facilities etc.

• CARD has successfully implemented three pilot studies viz. 1. Conversion oflignite to Diesel 2. Separation of Iron particles from bottom slag 3. Extraction of sandfrom mines overburden as a part of Business Diversification Plan - an innovation forsustainable development.

CARD has undertaken the formation of Innovation Incubation Centre (IIC) incollaboration with premier Institutions to promote innovation leading to start up /entrepreneurship.

The total R&D expenditure incurred during the year 2020-21 was ' 21.70 crore.

Human Resource Development

Your Company believes in its human assets who are the key performers driving theCompany's growth. Your Company provides a conducive working environment to its employeeswherein they deliver their best potential.


Your Company strongly believes that the pursuit of excellence can be achieved onlythrough continuous learning competency building reinforcing good work practices etc.Learning and Development Centre (L&DC) continuously strives to gleam the in-housetalents and espouse latest technological breed for the betterment of its businessprogression. During the year 2020-21 your Company conducted various in-house / deputationtraining programmes webinars to boost the performance of the employees.

Apprentices were also given training as per Statutory Guidelines of the RegionalDirector of Apprenticeship Training Chennai (RDAT) and the Board of ApprenticeshipTraining (BOAT) of Southern Region Chennai.

Industrial Relations

Your Company continued its faith in participative management and has a regular systemof holding bi-partite structured meetings with the Recognised Unions (collectivebargaining agents) / Associations in addressing the common issues of the employees. Thesignificant events of IR department during FY 2020-21 are as below:

• Implementation of Bi-Partite Committee recommendations on pending issues as perMoU dated 05-12-2018.

• Signing of Contract Workmen settlement on 07-08-2020 under section 12 (3) ofIndustrial Disputes Act.

• Conduct of Secret Ballot Election 2020 to elect the collective bargaining agentsamong the registered Trade Unions.

• Regularization of 750 Contract Workmen into the rolls of the Company as per theterms and conditions of settlement dated 07-08-2020 under section 12(3) of the ID Act.

In general the industrial relations scenario of your Company remained peaceful andcordial during the year 2020-21.


The total employee strength (including subsidiaries) stood at 11379 as on 31stMarch 2021 as against 12486 as on 31st March 2020.

Your Company scrupulously follows the Reservation Policy applicable to Scheduled Castes(SCs) Scheduled Tribes (STs) and Other Backward Communities (OBCs) as prescribed in thepresidential directives / GOI guidelines.

The group-wise Men-in-position (MIP) as on 31st March 2021stood as follows:

Group Total Strength Strength of SC/ST/OBC % of SC/ST/OBC
A 3428 724 311 527 21.12 9.07 15.37*
B 144 35 4 41 24.31 2.78 28.47
C 7352 1423 82 2525 19.36 1.12 34.34
D 455 85 2 276 18.68 0.44 60.66
Total 11379 2267 399 3369 19.92 3.51 29.61

*strength of OBCs on the rolls of the Company after reservation for OBCs came in toeffect from 08-09-1993.However more than required percentage of employees (covered in theCentral list of OBC category) have been recruited on the strength of BC category prior toreservation for OBCs came to effect and continue to be in the rolls of the Company.

Employees' Welfare and Social Security Schemes

Educational facilities

Your Company is presently running 9 Schools with student strength of 4518 nos. Theschools admit children coming from peripheral villages wards of employees contractemployees daily wages workmen and others from economically weaker sections of society.

Scholarship Schemes and Tuition Fee Concession

Your Company provides educational assistance to the wards of General SC/ST OBCcategory employees and wards of Contract Workmen for pursuing higher studies (undergraduate degree / diploma / professional courses) till the duration of the course subjectto a maximum of five years. Out of the total slots earmarked under Contract WorkmenEducational Assistance Scheme 50% has been allotted exclusively for girl children.Besides these schemes a separate Cash Award Scheme and a Scholarship Scheme were alsoprovided under CSR for the benefit of girl children studying in the peripheral districtsof Barsingsar Project Rajasthan. In addition to the above your Company reimburses thetuition fees every year for students belonging to SC/ST/OBC category (predominantlyhailing from the surrounding villages of NLCIL projects) studying in Jawahar ScienceCollege Neyveli patronised by your Company.

Medical Facilities

Your Company is on the fore front in aligning the vision of protection preservationand promotion of health and wellbeing of its workforce with its business plan that supportsustainable outcome of the company and drive higher values to the organization. YourCompany's hospital has a sophisticated 350 bed care facility benefitting employeescontract workmen CISF and their dependents. Further for specialized treatmentsfacilities are provided at reputed empanelled Hospitals at different parts of the Country.

COVID Management

The COVID-19 pandemic and its outbreak has severely impacted the Nation disruptingnormal lives and the economy. Even as the country geared up to tackle this crisis throughvarious control measures your Company supplemented these efforts in all its areas ofinfluence.

Your Company is engaged in Mining & Power generation and considering power as anessential service your Company ensured uninterrupted power supply including the period oflockdown. In line with the directions of Ministry of Power your Company provided anone-time rebate of ' 46.65 crore to DISCOMs during the year. In addition to the aboveNTPL the Subsidiary Company has extended one time rebate of ' 24.03 crore to Discomsduring the year.

The Management does not anticipate any material impact on the financial position of theCompany. However there may be delay in execution of various projects due to pooravailability of migrant workforce. Your Company will continue to monitor the currentsituation and possible impact of the same in the business of the Company.

Ever since the Government of India started issuing various advisories to takeprecautionary steps to prevent spread of Corona virus your Company implemented a slew ofpreventive actions and awareness campaigns through pamphlets posters hoardings andvideos to imbibe and promote the habits of personal hygiene workplace hygiene wearing offace masks and for maintaining social distance. As part of containment of the pandemicyour Company through "Test Track and Treat" approach and by establishing feverclinics / RT-PCR Test Centres provided in-patient treatment in the NLCI General Hospitalto the affected persons. Your Company also provided infrastructural support to theDistrict Administrations to enable them to contain the spread of Covid. Your Companybesides providing relief materials to the needy persons in and around the project sites& also to the migrant workers had also provided COVID support wages and therebyenabled the Contractor Employers to make payment to contract workmen during April 2020 toMay 2020.

The Hospital undertook measures on a war footing to expand COVID bed capacity from 100during 2020 to a whopping 577 during 2021 including Institutional Quarantine facility andfor managing the second wave in an effective manner. Fever clinics were set up andIn-patient treatment capacity exclusively for COVID patients was increased from 90 to 277beds equipping 217 beds out of the total capacity with high flow oxygen lines. AnIntensive Care Unit consisting of 20 Beds fitted with High-end Ventilators with UniqueLaminar Air Flow Facility was also set up in the hospital premises.

Your Company also fast tracked clearance of projects to set up two oxygen plants ofcapacity 12 Nm3/Hr. each in Neyveli one oxygen plant at PBM Government Hospital BikanerRajasthan of capacity 30 Nm3/Hr. and two oxygen plants of capacity 12 Nm3/Hr. each atOccupational Health Centre NTPL Tuticorin and another at Government HospitalTuticorin. In addition works are in progress for the supply of 500 Oxygen Concentratorsof capacity 10 litres per minute each and 100 equipment each for Neyveli ChennaiRajasthan Uttar Pradesh Odisha and for other States.

Keeping in the National focus on vaccination Centres were set up in Neyveli tovaccinate the entire workforce and the surrounding rural population. Special vaccinationcamps were held in Mines & Thermal Units in Neyveli and at present nearly 55368persons have been vaccinated.

Your Company in concerted co-ordination with District Health Authorities has developedthe needed infrastructure facilities to carry out various Covid containment programmes.Your Company has also hired 10 Ambulances and donated them to the Cuddalore DistrictAdministration for their use on round the clock basis. Similar support was also providedin other locations in Rajasthan Odisha and Uttar Pradesh based on the request ofconcerned District Administrations.

Elders Home

To fulfil the special needs and requirements of the senior citizens your Company runsANANDA ILLAM in Neyveli. This elders home provides hospice & home care to the eldersand help them to lead a happy and peaceful life with dignity. The employees of yourCompany also lend their helping hand by contributing a fixed amount every month from theirsalary to run the old age home.

Compliance under Persons with Disabilities Act 2016

Your Company takes all out efforts to maintain adequate representation of physicallychallenged persons in its workforce in compliance of provisions under the Rights ofPersons with Disabilities Act 2016.Your company has put in place a comprehensive policyfor Persons with Disabilities (PwDs) for providing certain facilities in line with theguidelines issued by Department of Personnel and Training (DoP&T). The strength ofPwDs as on 31st March 2021 stood at 197.

Your Company implements various social welfare measures towards the cause andupliftment of the Physically Challenged Persons through Neyveli Health Promotion andSocial Welfare Society (NHPSWS) "SNEHA" Opportunity Services and School bothpatronised by your Company.

Implementation of Official Language Act 1963

Your Company has made all concerted efforts to promote the Official LanguageImplementation Policy in line with the provisions and guidelines prescribed by Governmentof India under the Official Language Act 1963. During the year 2020-21 due to COVID-19pandemic and restrictions imposed for physical meetings your Company had organised HindiWorkshops through Webinars.

Women Empowerment

The strength of women employees in your Company as on 31st March 2021 stoodat 911 constituting 8.01% of the Company's Human Resource. A Forum called Women in PublicSector (WIPS) NLCIL chapter was formed in the year 1990 having corporate life membershipwith SCOPE (Standing Conference of Public Enterprises). During the year 2020-21 tomitigate the COVID-19 Pandemic Doctors and a team of WIPS Forum of your Company hadorganised various public education and awareness programmes to contain the spread of thevirus.


Your Company is taking pioneering efforts in the industrial safety area along with theon-going safety related initiatives apart from compliance of statutory requirements forenhancing safety standard in all mines and thermal plants as given below:

• Safety audit of all Mines is conducted by ISO Team every year and Safety auditof Thermal plants is conducted by accredited external agencies once in two years.

• Central Safety Council Members comprising representatives of different Unitsmake inspection of the pre-determined Units every month and present its findings to theUnit Head.

• Conducting workshops & training on Safety by Mines and Thermal Units.

• Introduction of Life Saving Rules.

• Conducting Safety Officers' Meet every month by Central Safety Wing to discussthe safety performance action taken on recommendations etc.

• Mines at Neyveli (Mine I Mine IA & Mine II) are being operated with Stateof the Art Technology i.e. Bucket Wheel Excavators Spreaders Stackers and series ofconveyors having inbuilt safety features.

• Standard Operating Procedures have been established for all activities of minesand thermal plants and are strictly implemented.

• Risk assessment based Safety Management Plans have been prepared as per CoalMines Regulation 2017 for all mining activities like Bench operation Specialized MiningEquipment(SME) Conveyor Zone Ground Water Control (GWC) Conventional Mining Equipment(CME) etc. and are being practiced.

• Pit Safety Committee Meeting for the Mine is conducted every month besidesspecial safety meetings by individual divisions like conveyor division blasting divisionelectrical division etc. Similarly Unit Safety Committee Meeting is conducted by allthermal plants every month.

• Weekly Safety inspections of Mines Thermal Plants and other Units are beingcarried out by Central Safety Wing and inspection report is submitted to Unit Heads forcompliance and improvement in safety standards.

As was reported in the Directors' Report of the last year your Company had witnessedtwo major fire incidents in the year under review. Subsequent to the above incidentssafety protocols across the Company were reviewed exhaustively and measures have beentaken to strengthen the Safety Systems in order to avoid such mishaps in future.

Safety measures and action taken to avoid fire incidents in thermal plants are asfollows:

• Testing and readiness of Fire Detection & Suppression System is done as perschedule.

• Checking is done once in a week for the healthiness of fire pump hydrantpipeline and valves

• Fire crew- 24x7 fire tender and foam tender are available at site.

• To respond to fire emergency Fire Mock Drill is conducted to cover all areas ofplant in rotation once in a month.

• During summer season exclusive team is constituted to inspect fire vulnerableareas in plant.

• All Hot Work check list compliance is done in Lignite Handling System. Onsafety department authorisation Hot Works in LHS or in any other area is carried out.

• Fire safety campaign is jointly conducted with CISF fire crew once in a year.Hands on training is imparted to all employees and contract workmen in using portable fireextinguishers.

• In LHS areas farthest point and highest points fire hydrant header pressurejoint inspection is done by CISF fire crew and LHS department weekly. Water pressure atfarthest point 7 kg/cm2 and at highest point 3 kg/cm2 are ensured.

• Manual lignite dust cleaning workmen are engaged in all three shifts in LHSarea.

• To avoid back fire during Mills change-over suitable instructions amended in SOPparticularly in control of excess air.

• In Boiler and Mill area fire monitoring crew are engaged in all the threeshifts.

• Testing of emulsifier system in transformer is regularly done for checking itseffectiveness.

• In Thermal Power Station - II Girders all Man Holes Doors have been closed inUnits - 456 & 7.

Safety measures and action taken to avoid the fire incidents in Mines are as follows:

• Fire safety Meeting is being conducted at Mines once in a month in coordinationwith all concerned functional department of Mines.

• Fire crew- 24x7 fire tender and foam tender are available at site.

• Fire Mock drill is being conducted once in a month.

• Regularly persons are being trained in handling of fire extinguishers by CISFfire wing at working site.

• Monthly fire extinguishers status are being updated by the concerned fireco-ordinators of the Divisions.

• SME machines are provided with overhead water tanks with fire fightingarrangements.

• Testing of emulsifier system in transformer is regularly done for checking itseffectiveness.

• Along Lignite conveyor water hydrant lines are installed to suppress any fire.

• In lignite stock yard high pressure jet rain guns are provided for firesuppression.

• Daily temperature monitoring of lignite stock is being done and recorded.

• Lignite dust accumulation in SME machines are being cleared regularly with thehelp of Industrial vacuum cleaner.

• Schedule/Regular washing of HEMM equipment & SME machines are being done.

Risk Management

A comprehensive Integrated Risk Management Policy and Frame work as approved by theBoard is in place in your Company. Besides risk prioritization the roles andresponsibilities of the Members are clearly defined. As per the policy an Internal RiskReview Committee (below Board level) review the risks on a quarterly basis. The riskassessment together with the minimization procedure is reviewed by the Risk ManagementCommittee Audit Committee and the Board periodically.


The activities undertaken by Vigilance Department are Pro-active & Punitive andother measures to sensitize the employees of the Company. Complaints received in thedepartment are dealt based on the "Complaint Handling Policy" and are processedthrough the Complaint Tracking System (CTS) from receipt up to disposal. As a preventivemeasure surprise checks regular checks quality checks follow-up checks and CTE typeexaminations are conducted.

During the Vigilance Awareness Week 2020 a short film competition was held on thetheme "Vigilant India Prosperous India".

As a part of Preventive Vigilance exercise customized training programmes wereconducted at Thermal Units Mines offices at Neyveli and Barsingsar Project to sensitizethe officials on Contracts / Purchase and various CVC guidelines issued in this regardthrough Vigilance case studies.

Implementation of Integrity Pact

Your Company is committed to have most ethical business dealing with the VendorsBidders and Contractors of goods and services and deal with them in a transparent mannerwith equity and fairness. To achieve these goals your Company is implementing theIntegrity Pact Programme in co-operation with Central Vigilance Commission (CVC) andrenowned International Non-Governmental Organisation Transparency International India(TII). Integrity Pact with the suppliers / contractors for all Tenders with estimate of '1 crore and above are monitored. Structured meetings are held with the IndependentExternal Monitors (IEMs) wherein procurement and contract related issues and complaintsthereupon are taken up. During the year 2020-21 eight Vendor meetings two Contractorsmeetings and four review meetings of the Independent External Monitors were held.

Cyber Security

To protect against cyber security threats your Company has a maze of protectiveequipment like Network and Web application firewall for perimeter security and antivirusprotection to desktops/laptops.

Digital Culture

Your Company has taken the following initiatives while transforming to digital culture:

a. SAP ERP is used as the enterprise software for core business.

b. E-Procurement of products and services through a common portal.

c. Office automation with the product e-office for file and e-Tapal.

d. Email intranet SMS services help information dissemination and Virtual PrivateNetwork (VPN) has enabled extended office connectivity especially during the pandemic.

e. Video Conferencing Collaboration tools and virtual meetings are being used forconducting out of office information exchange.

f. E-payments are carried out for all financial transactions.

g. Artificial Intelligence tools like Chatbot and Robotic Process Automation have beendeployed in few areas and a separate division has been formed to enhance the usage ofArtificial Intelligence in the Company.

h. In Barsingsar OB dump monitoring has been given to National Institute of RockMechanics (NIRM); Terrestrial Laser Scanner (TLS) is being used in NLCIL mines for OB landslope monitoring.

Compliance Monitoring

Your Company has set up a software based Legal Compliance Management System (LCMS) foreffectively monitoring and ensuring compliances of all legal provisions applicable to theCompany.

Corporate Social Responsibility

Your Company as a socially responsible corporate citizen continues to carry outdevelopmental works in the surrounding villages right from its inception focusing on thesocio economic development of the operating regions for achieving inclusive growth. YourCompany had adopted a Corporate Social Responsibility Policy covering the various sectorsfor sustainable socio-economic development.

Your Company focuses on healthcare education sanitation safe drinking water hungerpoverty and malnutrition eradication women empowerment gender equality environmentsustainability rural sports protection of National Heritage Arts and Culture RuralDevelopment Water Resource Augmentation. The funds utilised for the CSR projectsprograms and activities selected for implementation are as per the CSR Policy of theCompany which is available in the website in the following link: website/csr new/csr policy 2021.pdf During the year 2020-21your Company had spent '46.74 crore which is 2% of the average net profits of the Companyfor the last three years. Details are provided in Annexure-1.

Awards & Recognition

In recognition of its various activities your Company has been conferred with thefollowing awards during the year 2020-21:

• "Swachhata Hi Seva 2019 Award" from Ministry of Coal for makingvaluable contributions in the implementation of the Swachhata Hi Seva Programme.

• Runner up in ‘AIOE National Award'(All India Organisation of Employers anallied body of FCCI) for Outstanding Industrial Relations for 2018 - 19.

• Mine-I & II have bagged ‘Apex India Green Leaf Environmental ChampionAward-2019' by Apex India Foundation in recognition of decades of dedication andcontribution in the area of Environmental Management.

• "Platinum Award-2019" by Apex India Foundation for outstandingachievement in CSR Management in Thermal Sector.

• 1st Place in Overall GeM Rankings of the Buyers and Sellers amongtop 20 PSEs and also in timely payments to Vendors as per GeM portal Incentive Scheme.

• "Greentech Leading Innovative Safety Practices Award 2020" and"Greentech Environment Award 2020" for the outstanding achievements in MiningSector instituted by Greentech Foundation.

• "Exceed Occupational Health Safety and Security Award 2020" institutedby EK Kaam Ek Desh Foundation for the outstanding achievement in Mining Sector.

• "PRSI National Awards-2020" instituted by Public Relations Society ofIndia for the best PSU implementing CSR (First Prize) ; Best PSU implementing RTI (FirstPrize) ; Excellence in COVID-19 Management in Public Enterprises (Third Prize).

• The Company has bagged 2 Five Stars rating for Neyveli Mine-I and Mine-II in theStar rating competition organised by MoC out of 169 Opencast Mines in which only 4 Mineshave been awarded 5 Stars rating Mine-A and Barsingsar Lignite Mine have bagged 4 Starrating.

Compliance under the Right to Information Act 2005

Your Company ensures compliance under the Right to Information Act 2005. CentralAssistant Public Information Officers representing different functional areas NodalOfficer Central Public Information Officer Appellate Authority and Transparency Officerhave been nominated to attend to the queries and appeals received under the RTI Act in atime bound manner.

During the year 2020-21 under the above Act 411 applications containing 1359 querieswere received and 408 applications covering 1341 queries have been replied.

The Company was awarded First Prize as Best PSU implementing RTI for the Year 2021. Thesaid award was instituted by Public Relations Society of India (PRSI) and your Company hasbeen receiving this award for the last four years continuously. The auditing of NLCILProactive Disclosure under RTI was done by a third party auditor- Indian Institute of CoalManagement (IICM) for the first time after enactment of RTI Act2005.

Compliance under Public Procurement Policy

The Ministry of Micro Small and Medium Enterprises (MSMEs) has notified the PublicProcurement Policy. The total procurement made from MSMEs during the year 2020-21 was44.13% as against the target of 25%. Your Company has on boarded on Trade Receivablee-Discounting System (TReDS) a platform which facilitates the financing of tradereceivables of MSMEs from corporate and other buyers including Government Departments andPublic Sector Undertakings (PSUs) through multiple financiers.

Procurement through GeM Portal

During the year 2020-21 your Company has procured goods & services from Governmente-Marketplace (GeM) Portal for ' 53.69 crore as against the target of ' 205.00 crore.Efforts are being continuously made to maximize the procurement through GeM Portal byusing the functionality of "Custom Bid" introduced in GeM during the year.

Citizen's Charter

Your Company maintains Citizen's Charter indicating details of clients customersunder different heads different system of redressal of grievance etc. and the same isregularly updated.

Conservation of Energy Technology Absorption and Foreign Exchange Earnings and Outgo

The particulars required under Section 134(3) (m) of the Companies Act2013 regardingconservation of energy technology absorption and foreign exchange earnings and outgo arefurnished in Annexure-2.

Management Discussion & Analysis Report and Report on Corporate Governance

The Management Discussion & Analysis Report is furnished in Annexure-3. Thereport on Corporate Governance on the compliance of Corporate Governance conditionsstipulated by SEBI (Listing Obligations and Disclosure Requirements) Regulation2015 andthe DPE guidelines on corporate governance is furnished in Annexure-4.

The Auditors' Certificate on the compliance of above Corporate Governance Conditions isfurnished in Annexure - 5.

Statutory Disclosures under Companies Act2013 and SEBI (LODR) Regulations 2015 AnnualReturn

In accordance with the Companies Act 2013 the annual return in the prescribed formatis available at .

Particulars of Contracts or Arrangements with Related Parties

All related party transactions entered during the year 2020-21 were in the ordinarycourse of the business and are on an arm's length basis. The disclosure of related partytransactions as required under Section 134(3)(h) of the Companies Act 2013 in Form AOC 2is not applicable to your Company. Members may refer to note no. 41 to the financialstatement which sets out related party disclosures pursuant to Ind AS-24.

Declaration by Independent Directors

The Independent Directors have given a declaration on meeting the criteria ofindependence as stipulated in Section 149(6) of the Companies Act 2013 & Regulation25(8) SEBI (LODR) and they have registered their names in the Independent Directors'Databank.

Particulars of Employees

As per provisions of Section 197(12) of the Companies Act 2013 read with Rule 5 of theCompanies (Appointment and Remuneration of Managerial Personnel) Rules 2014 every listedcompany is required to disclose the ratio of the remuneration of each Director to themedian employee's remuneration and details of employees receiving remuneration exceedinglimits 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.

Disclosures with respect to Demat Suspense Account/ Unclaimed Suspense Account in termsof SEBI (Listing Obligations and Disclosure Requirements) Regulations2015.

As on 31st March 2021 there were no shares pending unclaimed in the DematSuspense Account/unclaimed Suspense Account.

Material changes affecting financial position occurring between the end date ofFinancial Year and the date of the Report.

There are no material changes affecting the financial position of the Company betweenthe end of the Financial Year and the date of the Report.

Sexual harassment of women at workplace

As required under the Sexual Harassment of Women at Workplace (Prevention Prohibitionand Redressal) Act 2013 suitable mechanisms were put in place in your Company to addressthe issues faced by women employees. A separate Internal Complaints Committee has beenconstituted for looking into the complaints relating to sexual harassment of women atworkplace. During the year 2020-21 two complaints pertaining to the previous financialyear were resolved and disposed of and no new complaint was received.

Auditors Statutory Audit

M/s. PKKG. Balasubramaniam & Associates Chartered Accountants and R Subramanianand Company LLP Chartered Accountants were appointed by the Comptroller and AuditorGeneral of India(C&AG) as the Joint Statutory Auditors for the year 2020-21 underSection 139 of the Companies Act 2013.The Board of Directors of your Company has fixed '35.00 lakh plus applicable taxes as the Statutory Audit fees for the year 2020-21 to beshared equally by the Joint Statutory Auditors.

Branch Audit

M/s. Dhoot & Associates Chartered Accountants has been appointed as the BranchAuditor for the year 2020-21 by C&AG for conducting the audit of Mine and ThermalUnits at Barsingsar. The Board of Directors of the Company has fixed ' 3.0 lakh plus taxesas the Branch Audit fees for the year 2020-21.

M/s. AASA & Associates Chartered Accountants has been appointed as the BranchAuditor for the year 2020-21 by C&AG for conducting the audit of Mines at Talabira.The Board of Directors of the Company has fixed ' 3.0 lakh plus taxes as the Branch Auditfees for the year 2020-21.

Secretarial Audit

M/s. Kumar Naresh Sinha & Associates Practicing Company Secretaries was appointedas the Secretarial Auditor for the year 2020-21. The Secretarial Audit report for the year2020-21 and the reply to observations of the Secretarial Auditors are furnished in Annexure-6.

Cost Audit

M/s. Dhananjay V. Joshi & Associates was appointed as the Cost Auditor for theyear 2020-21 to conduct Cost Audit for Mines & Power Stations of the Company. The CostAudit Report for the year 2019-20 was filed with Ministry of Corporate Affairs on 5thDecember 2020 against the due date of 31st December 2020.

In accordance with the provisions of Section 148(1) of the Act read with the Companies(Cost Records and Audit) Rules 2014 the Company has maintained Cost Accounts andRecords.

C&AG's Comments

Comments of the Comptroller & Auditor General of India (C&AG) on the FinancialStatement of the Company for the year ended 31st March 2021 under section143/(6)(b) of the Companies Act 2013 is furnished in Annexure-7.

Directors' Responsibility Statement as per Section 134(3) (c) of the Companies Act2013

The Board of Directors declares that:

(a) in the preparation of the annual accounts the applicable accounting standards hadbeen followed along with proper explanation relating to material departures;

(b) the Directors had selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the Company at the end of the financial year and ofthe Profit and Loss of the Company for that period;

(c) the Directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act 2013 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities;

(d) the Directors had prepared the annual accounts on a going concern basis;

(e) the Directors had laid down internal financial controls to be followed by theCompany and that such internal financial controls are adequate and were operatingeffectively; and

(f) the Directors had devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems were adequate and operating effectively.

Board of Directors Appointment

Details of appointment of Directors on the Board of the Company are as under:

a. Shri S K Prabakar Principal Secretary to Government of Tamilnadu EnergyDepartment was appointed as a Part-time Official Director w.e.f. 02.07.2020.

b. Shri Dharmendra Pratap Yadav Principal Secretary to Government of Tamilnadu EnergyDepartment was appointed as a Part-time Official Director w.e.f. 15.06.2021.


The following Directors relinquished from the Board of Directors of the Company:

a. Shri Indrajit Pal Independent Director w.e.f. 06.09.2020 upon completion of tenure.

b. Shri A Karthik Part-time Official Director w.e.f. 15.06.2020.

c. Shri Nadella Naga Maheswar Rao Director (Planning & Projects) w.e.f .01.06.2021 due to superannuation.

d. Shri S K Prabakar Part-time Official Director w.e.f. 04.06.2021.

e. Shri Prabhakar Chowki Director (Mines) w.e.f. 01.09.2021 due to superannuation.

Your Directors wish to place on record their whole-hearted appreciation for thevaluable guidance and services rendered by them during their tenure as Directors on theBoard of the Company.

Further pursuant to Section 152 of the Companies Act 2013 Shri Shaji John Directorwill retire by rotation at the ensuing Annual General Meeting and being eligible offerhimself for the re-appointment.


The Board of Directors of your Company places on record its sincere appreciation forthe continued support and guidance extended by the Ministry of Coal Ministry of PowerMinistry of New and Renewable Energy Ministry of Finance Ministry of Environment &Forest and Climate Change Ministry of Industry Ministry of Labour Ministry of HeavyIndustries NITI Aayog DIPAM DPE Central Electricity Authority Central & StateGovernment Departments Central & State Electricity Regulatory Commissions Andaman& Nicobar Islands Administration State Electricity Boards and beneficiaries of TamilNadu Andhra Pradesh Telangana Karnataka Kerala Puducherry and Rajasthan and also theJoint Venture Partners viz. Tamil Nadu Generation and Distribution CorporationLimited(TANGEDCO) Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited(UPRVUNL) Coal IndiaLimited Mahanadi Coalfields Limited and Hindalco.

The Board of Directors of your Company is pleased to acknowledge with gratitude thecooperation and continued support extended by the Governments of Tamil Nadu RajasthanUttar Pradesh Jharkhand and Odisha V.O.C. Port Trust Tuticorin and the DistrictAdministrations of Cuddalore Tuticorin Bikaner Andaman & Nicobar SambalpurJharsuguda Kanpur Nagar and Dumka. The support and co-operation extended by theComptroller and Auditor General of India Statutory Auditors Branch Auditor InternalAuditors Cost Auditor Secretarial Auditor Director General of Mines Safety Directorateof Industrial Health & Safety Boiler Inspectorates Chief Inspector of Factories theDirector of Boilers Central Pollution Control Board State Pollution Control Board ChiefController of Explosives Chief Vigilance Commissioner Coal Controller Officers RegionalLabour Commissioner Regional Provident Fund Commissioner and other Statutory Authoritiesthe Company's Bankers Financial Institutions and KfW of Germany Vendors SuppliersContractors and other valued Stakeholders need special mention and the Directorsacknowledge the same.

Your Directors also wish to place on record their appreciation for the dedicated workput forth by the Employees at all levels. The positive role played by the recognized TradeUnions and Associations of the Engineers and Officers in maintaining cordial industrialrelations deserves special mention.

For and on Behalf of the Board of Directors

Place: Neyveli Rakesh Kumar
Date: 06.09.2021 Chairman-cum-Managing Director