As I reflect on the progress of past year first I would like to saythanks to each one of you for your continued support and investment in NTPC. I am proud ofwhat we have accomplished together this past year and I am even more optimistic about theopportunities ahead.
Your Company had shown all round performance and strengthened itsfundamentals further. The company's total generation grew at ~4% in FY19 (GroupGeneration-306 BUs; Standalone - 274 BUs) and the Coal generation growth is higher thannational average. Further the country's electricity demand is growing at a very fastrate; it has grown at nearly 8% in Q1 FY20 and the peak demand has crossed 182 GW. Withevery Indian now having access to electricity the power sector is poised for long termgrowth. With Govt.'s initiative "24X7-Power for all" the growth is expected toreach new heights. As the demand grows there is a sizeable growth ahead for the company.
In FY19 your Company recorded a profit of over ' 12600 Crore which isa growth of 20.3% as compared to previous year revenue almost touched ' 100000 Croreand the company declared dividend of over ' 5400 Crore to shareholders. This is the 26thconsecutive year that company has paid dividend and the increase in dividend is 28.5% overlast year. Your Company has also issued bonus shares for the 1st time.
Another important event has been the issuance of Tariff Regulations2019 effective from 1st April 2019 for a five-year period by Hon'ble CentralElectricity Regulatory Commission (CERC). The Govt. has also launched a scheme; SecurityConstrained Economic Dispatch (SCED) on pilot basis with the objective of reducing cost ofpower. These are forward looking regulations and capture the need of the sector throughvarious provisions. These regulations coupled with the pilot rollout of SCED scheme willlead to more efficiency and optimal use of resources.
In FY19 your Company's PLF has consistently maintained a positivedifference of over 15% as compared to the National PLF. Company's coal stations achieved aPLF of 76.81% during the year 2018-19 as against National PLF of 61.07%. Five stations ofNTPC figured in top ten stations list of the country in terms of PLF.
Your Company added 2180 MW to its commercial capacity during FY19. Ithas further added 1460 MW in FY20 till Q1. With this the commercial capacity of NTPCGroup is now 54326 MW. This includes 928 MW of renewables. With 19 GW capacities underconstruction the target for this year is for adding around 3.5GW of Commercial capacityfor the balance period. Pursuing inorganic growth path - your Company acquired BarauniThermal Power Station in Bihar [Stage# I: 220 MW and Stage#II: 500 MW (UnderConstruction)]. Further Badarpur plant (705 MW) in NCT of Delhi has been permanently shutdown with effect from October 15 2018. Even though the plant was meeting environmentalnorms Delhi's poor air quality index has led to this decision.
Your Company is going aggressively in the renewable space. The companyhas won 545 MW of capacity through participation in Tariff Based Competitive Biddingconducted by States and SECI which proves the competitive edge. Setting up 100 MW offloating solar in the State of Telangana and for 92 MW of floating solar in Keraladiscussions are in advanced stage for signing of PPA. Further PPAs have been signed for2000 MW solar and 1150 MW wind in developer mode. Your Company is looking at thepossibility of setting up renewable projects as merchant plants in future. Further thepolicy issued by Govt. of India - "Flexibility in generation and scheduling ofthermal power stations to reduce emissions" is being actively pursued forimplementation.
Your Company has been ranked No#1 "Independent Power Producer andEnergy Trader" in the Platts Top 250 Global Energy rankings 2018. Improving itsposition your Company has been ranked 492 in Forbes Global 2000 - The world's largestpublic companies list.
your Company is working with the objective of "Low Cost LowEmission and Highest Safety". Even though the cost of coal has increased over yearsaverage Power Charges were maintained at nearly the same level. Various optimization andtechnological measures are being taken for resource utilization and keeping expenses undercontrol.
Your Company has made substantial progress in coal-mining.Pakri-Barwadih mine was declared commercial w.e.f 1st April 2019. It hassurpassed the mine plan production target and extracted 6.81 MMT of coal during FY19.Further 0.5 MMT was extracted from Dulanga. Your Company is working relentlessly toenhance production from all the captive mines to ensure fuel security and adopting bestmining technologies. I am very proud to mention that Director General Mine Safety (DGMS)a Statutory Authority of Govt. of India has selected Pakri-Barwadih as a model mine theone out of two in the entire country.
Robust financial management system put in place by your Company hasresulted in reducing the weighted average cost of borrowings to less than 7% in FY19. TheCompany has achieved 100% realization of current bills for the sixteenth year in a row.This has been possible only with effective stake holder management.
Tireless efforts are underway for maximizing profitability. Steps havebeen taken for eliminating under recovery by ensuring fuel availability and controllingequipment forced outage. The availability of coal Stations has increased significantly inQ1 FY20. With robust all round performance your Company is expected to retain the"Excellent" rating for the MoU signed with Government of India again.
Reduction of water consumption increasing ash utilization andenvironmental protection are the top most priorities of your Company.
Rain Water Harvesting policy has been put in place. Significant stepsare being taken for reducing water consumption. Specific water consumption has beenreduced by 1.3% (3.02 l/kWh) when compared to FY18. Implementation of Zero LiquidDischarge (ZLD) scheme has been completed at ten Stations. Implementation of higher CoCacross all Stations is being done to reduce fresh water intake. Besides these Air CooledCondenser is being implemented at new projects.
To address the issue of ash utilization your Company had conductedGrand Ash Challenge' to invite innovative ideas on pan India basis forProductive ash utilization'. Five best ideas were selected for implementation. Thisinitiative will not only benefit the company but the country at large. Your Company hasalso tied up with Indian Railways for setting up of fly ash depots.
To meet the Flexibilization requirement with increased penetration ofrenewables in to the grid pilot testing has been started at one of the Stations and aroad map has been prepared for retrofitting of the Units for enhancing Flexibilizationcharacteristics.
To maximize the geo-strategic reach your Company is actively lookingat business opportunities overseas. First international office has been opened at Myanmar.Construction activities of a Coal based project at Bangladesh are under progress. Furtherthe company is actively looking at Middle East and African continent for businessopportunities. Setting up of electric charging infrastructure has been started in NCR andwill be operationalized soon. The company is actively pursuing with various States forproviding complete e-mobility solutions.
Your company's Sustainability Report for FY18 has been assured byDeloitte with Type-II High Level category. This is the highest level of assurance inaccordance with Global Reporting Initiative (GRI) conforming to AA1000AS (2008) Standard.NTPC is one of the three organizations and first PSU in India to have such highest levelof assurance. Your Company had won the most coveted Frost & Sullivan and TERISustainability 4.0 Award 2019 for best sustainability practices.
Improving its position significantly your Company is Ranked 14thin Best Companies to Work for-2019 first among PSUs. Your company is putting continuedthrust on employee capability improvement. To bridge the skill gap leadership programmesfor senior management has been conducted at Harvard and Wharton. To inculcate leadershipskills and business acumen in middle level management - Young leaders programme has beenstarted. NTPC was facilitated by the most coveted ATD BEST award in training domainconsecutively three times in a row from ATD USA.
Corporate Social Responsibility has been the prime focus of yourCompany. With the success of Girl Empowerment Mission (GEM) launched in FY18 theprogrammes has been started at 23 locations in FY19 covering 1900 school girls and inputsare given on academics health hygiene self-defense yoga and personality development.
To address the problem of municipal waste a 24 TPD pilot scale Wasteto Energy (WtE) Plant has been commissioned at Varanasi. This is the 1st Wasteto Energy Plant owned by NTPC. Many such proposals are on the cards along with large scaleWaste to Energy plants.
On behalf of NTPC family I assure you that your Company will continueto put tireless efforts and commitment to fulfill your expectations. With the unmatchedknowledge pool and skill of Team NTPC I once again assure you that each employee of thecompany will work as a "Power Soldier" for improving the performance in theyears to come.
With best wishes
|Yours sincerely |
|(Gurdeep Singh) |
|Chairman & Managing Director |