Your Company had another year of strong performance. Total generation grew over 6% inFY18 (NTPC Group Generation - 294BU; NTPC Standalone - 265 BU) and it has further grownat nearly 7.5% in Q1 FY19. These numbers indicate substantial growth in energy demand ofthe country. With the implementation of Govt.'s SAUBHAGYA and DDUGJY Schemes growth inpower demand is expected to keep ticking. As demand will keep growing your Company ispoised to clock significant growth in next few years as well. The growth numbers in bothcases were much higher than national average.
Your Company's PLF has consistently maintained a positive difference of over 15% ascompared to the National PLF. Company's coal stations achieved a PLF of 77.9% during theyear 2017-18 as against National PLF of 60.7%. Six stations of NTPC figured in top tenstations list of the country in terms of PLF.
Your Company added 4423 MW to its commercial capacity during FY'18. This is the secondhighest ever commercial capacity added in any year. With this the commercial capacity ofNTPC Group is now 51391 MW. This includes 870 MW Solar 50 MW Wind and 8 MW smallhydro.With 20 GW capacities under construction the target for this year is for adding 5GWof commercial capacity.
Pursuing inorganic growth path your Company acquired JV partner's equity in two powerplants in Bihar. The combined capacity of these plants is 2590 MW.
Substantial progress was made on the coal-mining front to ensure fuel security. 2.68MMT of coal was extracted from Pakri Barwadih mine during FY18. Mining operations havestarted at second mine.
Your Company's profit rose by 10.2% in FY18 as compared to previous year and revenuefrom operations increased by 6.6%. NTPC management is committed to maximizing your wealth.The Company has already paid an interim dividend of Rs 2.73 per share and has recommendeda final dividend of Rs 2.39 per share for FY'18 subject to your approval. The increase individend is 7.1% over last year.
Your Company has robust finance management system in place which resulted in reducingthe weighted average cost of borrowings to less than 7% in FY18. The Company has achieved100% realization of current bills for the fifteenth year in a row.
Your Company has been working tirelessly for maximizing its profitability. Varioussteps have been taken for eliminating under recovery by ensuring fuel availability andcontrolling equipment forced outage. To ensure high coal availability action has beentaken for importing coal. Agreement has been signed with Railways for prioritizingdispatch to the plants and the results are very encouraging.
With robust all round performance your Company is expected to retain the"Excellent" rating for the MoU signed with Government of India again.
Even as financial and physical numbers are important your Company has takensignificant steps towards Environmental Protection Water Conservation better ProjectManagement and laid foundation for future growth.
Your Company has become the first PSU to have a Biodiversity Policy. Your Company shallbe developing an Eco park at the ash pond of Badarpur power plant (after the plant is shutdown) which would be bigger than New York city Central park and shall act as "GreenLungs" for National Capital Region of Delhi.
Substantial investment is being made towards environmental norms compliance. FirstFlue-gas desulphurisation system became operational at Vindhyachal. Work is in progress at7.23 GW capacity. Fresh tenders are finalized for 9.94 GW and award for all coal basedcapacity shall be completed in about 12 months so that all units are compliant with thenorms as per deadlines given by Government agencies. Action has also been taken for De-NOxand particulate emission control too. Your Company has placed an order for procurement ofcrop residue based pellets for co-firing at Dadri plant. This would help in avoiding cropresidue burning which led to haze that enveloped northern part of India during wintermonths.
As a responsible Corporate your Company has taken various steps for reducing waterconsumption. Specific water consumption has been reduced by 3.3%. The Company isimplementing Zero Liquid Discharged and higher CoC across all plants. Besides these AirCooled Condenser is being implemented at two of the new projects which has potential forsaving water consumption upto 75%.
Your Company is committed for increasing the share of renewables in its portfolio.Govt. of India recently issued a policy on "Flexibility in generation and schedulingof thermal power stations to reduce emissions". This policy is likely to helprenewable capacity addition and will also help in balancing of the grid. As per thispolicy generating companies would be allowed to replace their scheduled thermal power byrenewable power and there would be no need to sign PPA with beneficiaries. To leveragethis opportunity tenders have been floated for procuring 2 GW Solar and 1.2 GW Windcapacity.
Your Company is actively looking at other business opportunities including overseasoperations. Construction activities of (2X660) MW Coal based project at Bangladesh areunder progress. Further the Company is keenly looking at Middle East and Africancontinent. Discussions are underway for setting up electric charging infrastructure andproviding complete e-mobility solutions.
Your Company is putting major thrust on employee capability improvement. Leadershipprogram for senior management team has been conducted at Harvard and Wharton. NTPC's PowerManagement Institute was facilitated by the most coveted ATD award.
Further your Company is Ranked 25th in Best Companies to Work for-2018first among PSUs.
Your Company is committed to Corporate Social Responsibility. Girl Empowerment Missionhas been launched to give inputs on academics health hygiene self-defence yoga andpersonality development for 400 girls from villages around Vindhyachal Singrauli andRihand power plants.
I take this opportunity to put on record Your Company's deepest condolences on the lossof lives during the tragic incident at
Unchahar Power Station. Your Company provided all support and financial assistance tothe families of deceased. Further your Company has reviewed all operational and safetysystems and engaged the services of a leading global consultant on safety to improvevarious aspects.
On behalf of Team NTPC I assure you that your Company will continue to put bestefforts and committed to fulfill the vision "To be
World's leading Power Company energizing India's growth" and thereby ensuringsustained returns to its stakeholders.
With best wishes Yours sincerely
(Gurdeep Singh) Chairman & Managing Director