Your Directors are pleased to present the 42nd Annual Report on the businessand operations of the Company along with audited financial statements for the year endedMarch 31 2018.
Financial Year 2017-18 had been yet another year of achievements for your Company.
Major highlights of your company for the year 2017-18 are:
Power projects of 3478 MW (including 910 MW through JV and SubsidiaryCompanies) were commissioned.
Declared 4423 MW Power Projects (including subsidiaries) on commercialgeneration including 250 MW of Solar 50 MW of Wind and 8MW of Small Hydro Projects.
PLF of 77.90% as against all India PLF of 60.72% with Talcher Thermalstation of your Company recording 93.820% PLF. 12 Stations (including JVs) were in the top25 in the country in terms of PLF. 8 coal based stations out of 20 commercial Stationsachieved more than 85% PLF.
Excellent MOU rating by Government of India for the year 2016-17.
Group Capital Expenditure (CAPEX) including CAPEX of JV/ subsidiaries ofyour company for the year 2017-18 was Rs 31036.56 crore.
100% realization of current bills from customers.
Revenue from operations was Rs 83452.70 crore and total revenue was Rs85207.95 crore. Net Profit after Tax (PAT) was `10343.17 crore.
Dividend of Rs 5.12 per share comprising interim dividend of Rs 2.73 per equityshare paid in February 2018 and recommended final dividend of Rs 2.39 per equity share forthe year 2017-18 subject to approval of the shareholders.
Cash contribution of Rs 6297.39 crore to Government of India's exchequerthrough dividend dividend distribution tax and income tax in the financial year 2017-18.
Market capitalization of Rs 139925.53 crore as on 31.03.2018.
Planted approx. 1 million trees during 2017-18 to mitigate the GHG emissionsarising out of plant operations thereby bringing total to about 33 million planted treestill the end of 31.03.2018.
About 4.13 crore fly ash bricks produced by fly ash brick plants of yourCompany's stations which are being utilised in construction of areas of plant ash dykeand of township.
Awarded for overall Best Financial Performance by Governance Now
Bagged 2nd position at the BML Munjal Award 2018 for sustainedexcellence in Learning and Development.
Awarded for Excellence in Maharatna category at India Pride Awards.
You will appreciate the fact that your company recorded growth and excellentperformance despite numerous challenges before the sector like coal shortage strictemission norms etc.
|Particulars || |
| ||Rs Crore ||US $ Mn* ||Rs Crore ||US $ Mn* |
|Revenue || || || || |
|Revenue from Operations (including energy sales sale of energy through trading consultancy fee etc) ||83452.70 ||12715.63 ||78273.44 ||11926.47 |
|Other income ||1755.25 ||267.45 ||1068.86 ||162.86 |
|Total Revenue ||85207.95 ||12983.08 ||79342.30 ||12089.33 |
|Expenses || || || || |
|Fuel ||48315.47 ||7361.80 ||47572.19 ||7248.54 |
|Energy purchased for trading ||1313.51 ||200.14 ||- ||- |
|Employee benefits expense ||4734.67 ||721.42 ||4324.60 ||658.94 |
|Finance costs ||3984.25 ||607.08 ||3597.20 ||548.10 |
|Depreciation amortization and impairment expense ||7098.86 ||1081.65 ||5920.82 ||902.15 |
|Other expenses ||7421.73 ||1130.84 ||5092.38 ||775.92 |
|Total expenses ||72868.49 ||11102.93 ||66507.19 ||10133.65 |
|Profit before exceptional items tax and regulatory deferral account balances ||12339.46 ||1880.15 ||12835.11 ||1955.68 |
|Exceptional items impairment loss on investment ||- ||- ||782.95 ||119.30 |
|Profit before tax ||12339.46 ||1880.15 ||12052.16 ||1836.38 |
|Tax expense ||2549.29 ||388.43 ||2930.82 ||446.57 |
|Profit for the year before regulatory deferral account balances ||9790.17 ||1491.72 ||9121.34 ||1389.81 |
|Net movement in regulatory deferral account balances (net of tax) ||553.00 ||84.26 ||263.92 ||40.21 |
|Profit for the year ||10343.17 ||1575.98 ||9385.26 ||1430.02 |
|Appropriations ||2017-18 ||2016-17 |
| ||Rs Crore ||US $ Mn* ||Rs Crore ||US $ Mn* |
|Transfer to bonds/ debentures redemption reserve ||1637.75 ||249.54 ||1667.08 ||254.01 |
|Transfer to general reserve ||4000.00 ||609.48 ||4500.00 ||685.66 |
|Dividend paid ||4040.28 ||615.61 ||3595.03 ||547.77 |
|Tax on dividend paid ||816.40 ||124.39 ||727.79 ||110.89 |
*1US $= `65.63 as on March 31 2018
2. DIVESTMENT BY GOVERNMENT
The Government of India has from time to time disinvested its stake in your company.During 2017-18 the Government of India divested 7.47% of shares as under:
|Particulars ||No. of Shares ||Percentage |
| ||Divested during 2017-18 || |
|1. Offer for Sale in Aug 2017 ||547150444 ||6.64 |
|2. Employee Offer for Sale in Sept 2017 ||9469848 ||0.11 |
|3. Bharat 22 ETF Nov 2017 ||59313616 ||0.72 |
|Total ||615933908 ||7.47 |
In June 2018 the Government of India divested 41567567 shares through Bharat 22ETF. The shareholding of Government of India after divestment in your Company stands at5093257695 shares i.e. 61.77 % as on 28.07.2018.
Interim and Final Dividend:
Your company paid interim dividend of Rs 2.73 per equity share in February 2018 and theBoard of your Company has recommended a final dividend of Rs 2.39 per equity share for theyear 2017-18. With this the total dividend for the year is Rs 5.12 per equity share of Rs10/- each. In the year 2016-17 the total dividend paid was Rs 4.78 per equity share of Rs10/- each.
The dividend payout is 39.06% and the total dividend payout including dividend tax is~47% 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 Company's DividendDistribution Policy which is available at the website link https:// n t p c . c o . i n /s i t e s / d e f a u l t / f i l e s / d o w n l o a d s /DividendDistributionPolicyofNTPCLimited.pdf.
4. OPERATIONAL PERFORMANCE
During the year the power stations of your Company generated 265.80 BUs (294.27 BUsincluding JVs & Subsidiaries) of electricity (including solar hydro wind & smallhydro power) which was 20.39% (22.58% including generation by JVs and Subsidiaries) of thetotal power generated in India registering an increase of 6.19% (6.32% includingJVs & Subsidiaries) over the previous years' generation of 250.31 BUs by your company(276.77 BUs including JVs & Subsidiaries).
The total generation contributed by coal stations is 252.36 BUs during the year againstgeneration of 237.96 BUs last year registering a growth of 6.05%. Generation from coalbased units could have been still higher but due to less generation schedule there wasopportunity loss of 30.83 BUs. The coal based stations operated at average Plant LoadFactor (PLF) of 77.90% (All India PLF was 60.72%) and average Availability Factor of88.68% on bus bar during the year.
Talcher Thermal station with a PLF of 93.82% was ranked 2nd in the countryand 12 Stations (including JVs) of your company were in the top 25 in the country in termsof PLF. Eight coal based stations out of twenty commercial Stations achieved PLF more than85%. The gas stations having a capacity of 4017 MW achieved a higher annual generation of8.82 BUs at a PLF of 25.05% as against 8.59 BUs last year. Opportunity loss due to lessgeneration schedule on Gas was still higher at 24.45 BUs. Generation contributed by Koldamhydro station improved to 3.31 BUs against 3.23 BUs achieved last year.
Generation from your company's RE stations (Solar+ Wind
+ Small Hydro) was 1.31 BUs.
5. COMMERCIAL PERFORMANCE
5.1 Billing and Realization
Your Company has realized 100% of its current bills raised for energy supplied in2017-18 thus achieving this feat for the 15th consecutive year.
Most of the beneficiaries were making their payments within 60 days of billing and hadavailed attractive rebates as per Company's Rebate Scheme.
Your Company has in place a robust payment security mechanism in the form of Letters ofCredit (LC) backed by the Tri-Partite Agreement. Apart from the LCs payment is secured bythe Tri-Partite Agreements (TPAs) signed amongst the State Governments Govt of India andRBI. As per the TPA any default in payment by the Discoms of a state can be recovereddirectly from the account of the respective State Governments with RBI.
The original TPAs signed during 2000-01 were valid up to 31.10.2016. As per thedecision of the Union Cabinet and as agreed by the various States and RBI these TPAs havebeen extended for a further period of 10 to 15 years. As of now 29 States/ UTs out oftotal 31 have signed the TPA documents. The signing process is in progress for the balanceStates.
5.2 Flexibility in generation and scheduling of thermal power stations to reduceemissions:
The Ministry of Power Government of India has issued detailed mechanism in April 2018allowing flexibility in generation and scheduling of thermal power stations to reduceemissions. The scheme provides flexibility to the generating company to supply renewablepower in place of thermal power to meet its scheduled generation from that thermalgenerating station. The generating company may either establish or procure renewableenergy generating capacity anywhere in the country. The tariff of the supplied energyeither from renewable or coal shall be same as the Energy Charge Rate of that thermalstation. The gains if any shall be shared with the beneficiaries in 50:50 ratio. In viewof the large scale integration of renewables in the grid Discoms are presently requiredto arrange balancing power seperately to meet the variability of renewable generation. Theabove scheme supplements requirement of additional balancing power for renewable energy byDiscoms. Further Discoms will be able to meet their RPO obligation without facing anyadditional financial burden. The scheme also provides opportunity to generating companiesto utilize generation from RE sources and also help in reducing emissions. Moreover thescheme facilitates further RE capacity addition in the country.
5.3 National Merit Order Operation:
With a view of providing cheaper power your Company has taken various measures toreduce fuel charges through coal swapping flexibility in usage of coal etc. In order tomaximize utilization of cheaper power your company has proposed the concept of NationalMerit Order Operation which envisages flexibility to supply the power requisitioned bybeneficiaries / Discoms through Merit Order operation of its stations on national basisthat is cheaper station of the generating company shall be dispatched up to its maximumcapability before scheduling costlier stations till the total power requisitioned by allits beneficiaries / Discoms is met. The gains arising from the above arrangement areproposed to be shared with the beneficiaries. This will ensure optimal utilization of theavailable resources by running the cheaper generation stations and reducing the averagecost of generation. A draft notification has been issued by Ministry of Power videnotification dated 17.07.2018.
5.4 Rebate Scheme for realization of dues:
In order to encourage early and full realization of dues your Company has issuedRebate Scheme' for the year 2018-19. In the Scheme for 2018-19 2.15% rebate shallbe allowed for amounts credited to the account of Company on 1st and 2ndof the month against provisional bill. For payment made on 3rd and 4thof the month rebate of 2.1% and 2.05% rebate on making payment on 5th of thebilling month shall be allowed. Thereafter payments made till 8th day of thebilling month a rebate of 2.0% shall be allowed.
From 9th day of the billing month till 30th day of the month nextto billing month rebate on amounts credited to the account of the Company shall graduallyreduce from 1.95% to 0%. An additional rebate of 0.1% (maximum) is proposed forbeneficiaries who make payment on time consistently during the year.
5.5 Commercial Capacity:
The following units including those of subsidiary companies were declared commercialduring the year 2017-18 adding 4423 MW to commercial capacity of your Company:
|Project/ Unit ||Capacity ||COD* |
| ||(MW) || |
|Units- Coal Based (I) || || |
|Kudgi Stage-I Unit#1 ||800 ||31.07.2017 |
|Mouda Stage-II Unit#2 ||660 ||18.09.2017 |
|Solapur Unit#1 ||660 ||25.09.2017 |
|Unchahar Unit#4 ||500 ||30.09.2017 |
|Bongaigaon Unit#2 ||250 ||01.11.2017 |
|Kudgi Stage-I Unit#2 ||800 ||31.12.2017 |
|Total (I) ||3670 || |
|Units Solar (II) || || |
|Mandsaur Solar ||250 ||01.09.2017 |
|Total (II) ||250 || |
|Units - Small Hydro (III) || || |
|Singrauli Small Hydro ||8 ||05.03.2018 |
|Total (III) ||8 || |
|Units Wind (IV) || || |
|Rojmal ||50 ||10.11.2017 |
|Total (IV) ||50 || |
|Subsidiaries Coal Based (V) || || |
|Muzaffarpur Thermal Power ||195 ||01.07.2017 |
|Station Stage-II Unit#2 (KBUNL) || || |
|Nabinagar Thermal Power Project Unit#1 (BRBCL) ||250 ||10.09.2017 |
|Total (V) ||445 || |
|Total Capacity declared commercial during 2017-18 (I)+(II)+(III)+(IV)+(V) ||4423 || |
* COD- Commercial Operation Date
As on 31.03.2018 the Commercial Capacity of your Company stood at 44500 MW (41322 MWas on 31.03.2017) and your Company Group's Commercial Capacity stood at 51391 MW (48288MW as on 31.03.2017):
|Owned by your Company ||MW |
|Coal based projects ||38755 |
|Gas based projects ||4017 |
|Renewable Energy Projects ||928 |
|Hydro Projects ||800 |
|Sub-total ||44500 |
|Joint Ventures & Subsidiaries || |
|Coal based projects ||4924 |
|Gas based projects ||1967 |
|Sub-total ||6891 |
|Total ||51391 |
5.6 Tariff Related Matters:
In the year 2017-18 your Company has been able to reduce the Energy Charge Ratesignificantly through various measures including rationalization of coal transportationacross its various stations etc.
Demand oriented overhauling plan of your Company units: The philosophy forplanning of unit overhaul has been revisited to align the same to region-wise month-wisedemand patterns. This is expected to maximize your Company units participation in meetingthe demands.
Improvement in Operational Efficiency parameters:
Operational efficiency parameters for your Company stations were continuously monitoredin coordination with Operations & CENPEEP and specific measures were taken to improvethe operational efficiency of stations.
Tariff orders for the period 2014-19 have been issued for most of the stations.
5.7 Strengthening Customer Relationship:
Customer Focus is one of the core values of your Company (ICOMIT). In line with thisthe Company has taken up several initiatives targeted towards the external Customers.Customer Relationship Management (CRM) and Customer Satisfaction Index (CSI) are some ofthe most important parts of these initiatives.
As part of the CRM your Company has been implementing several structured activitieswith the objective of sharing its experiences and best practices with the customerscapturing their feedbacks and expectations and addressing their issues. Some of theseactivities are described below:
- Your Company provides various support services to the beneficiaries which involvesidentifying potential areas of cooperation and sharing of each others' best practices. Inthe financial year 2017-18 total 63 such programs have been conducted for the customerson the basis of requirement expressed by them.
- Your Company offers training programs to the representatives of beneficiary companiesat Power Management Institute (PMI) the apex training institute of your Company on freeof cost basis. In 2017-18 105 participants from various customer organizations attendedtraining in 71 programs.
Your Company has also put in place Customer Satisfaction Index (CSI) survey scheme togather customer's feedbacks through a survey and respond to their requirements. This CSIsurvey has been conducted in 2017-18 and the score falls under Excellent category.
5.8 UDAY Scheme
As part of the UDAY Scheme your Company has been entrusted the responsibility to helpand guide the state generating companies to improve their operational efficiency andreduce the cost of generation. With this objective multi-disciplinary teams from yourCompany visited power stations at 12 states. The suggested measures to improve efficiencyin these plants by the team based on the visit have been shared with the power stations.
5.9 Power Trading in Power Exchange:
In line with CERC (IEGC) (5th Amendment) Regulations 2017 your Company soldmore than 365 Million Units of URS power in the Power Exchange through its trading armNVVN based on consents received from most of the beneficiaries. As per this scheme gainsfrom these transactions have been shared in the ratio of 50:50 with the beneficiarieswhose URS power is sold.
6. INSTALLED CAPACITY
During the year 2017-18 your Company added 3478 MW to its installed capacity as perdetails given below:
|Project/ Unit installed ||Capacity |
| ||(MW) |
|Coal Based Power Projects || |
|Solapur Unit#1 ||660 |
|Kudgi Unit#3 ||800 |
|Lara Unit#1 ||800 |
|Solar Based Power Project || |
|Mandsaur ||250 |
|Wind Based Power Project || |
|Rojmal ||50 |
|Small Hydro Power Project || |
|Singrauli ||8 |
|Total ||2568 |
|Under Subsidiaries and Joint Ventures (Coal Based Power Projects) || |
|BRBCL Unit#2 (subsidiary in JV with ||250 |
|Ministry of Railways) || |
|Meja Unit#1 (JV with UPRVUNL) ||660 |
|Total by Subsidiaries and JV ||910 |
|Total Addition during FY 2017-18 ||3478 |
The total installed capacity of your Company Group as on 31.03.2018 has become 53651MW (50498 MW as on 31.03.2017) as tabulated below:
|Owned by your Company ||MW |
|Coal based projects ||40355 |
|Gas based projects ||4017 |
|Renewable Energy Projects ||928 |
|Hydro Projects ||800 |
|Sub-total ||46100 |
|Joint Ventures & Subsidiaries || |
|Coal based projects ||5584 |
|Gas based projects ||1967 |
|Sub-total ||7551 |
|Total ||53651 |
7 CAPACITY ADDITION PROGRAMME
7.1 Projects under Implementation
In addition to furthering capacity addition through Coal based power projects yourCompany has been pursuing enhancement of its power generation portfolio through Hydro andRenewable Energy projects.
Various projects of your Company having aggregate capacity of 21071 MW including 7150MW being undertaken by Joint Venture and subsidiary companies are under implementation at20 locations in India and abroad. This includes 13110 MW through Coal based projects ofyour Company and 7150 MW through its JV and Subsidiary Companies. In addition to theabove hydro projects of 811 MW are also under construction. The details of such projectsare as under:
|Ongoing Projects as on 31.07.2018 ||Capacity |
| ||(MW) |
|I. A. Coal Based Projects || |
|1. Barh-I Bihar ||1980 |
|2. Bongaigaon Assam ||250 |
|3. Solapur Maharashtra ||660 |
|4. Lara-I Chattisgarh ||800 |
|5. Gadarwara-I Madhya Pradesh ||1600 |
|6. Darlipalli-I Odisha ||1600 |
|7. North Karanpura Jharkhand ||1980 |
|8. Tanda-II Uttar Pradesh ||1320 |
|9. Khargone Madhya Pradesh ||1320 |
|10. Telangana Phase-I Telangana ||1600 |
|Sub Total (A) ||13110 |
|I.B. Hydro Electric Power Projects (HEPP) || |
|11. Tapovan Vishnugad Uttarakhand ||520 |
|12. Lata Tapovan Uttarakhand@ ||171 |
|13. Rammam Hydro West Bengal ||120 |
|Sub Total (B) ||811 |
|Total I (A)+(B) ||13921 |
|II Projects under JVs & Subsidiaries || |
|Coal Based Projects || |
|Ongoing Projects as on 31.07.2018 ||Capacity |
| ||(MW) |
|14. Nabinagar- JV with Railways (BRBCL) Bihar ||500 |
|15. Nabinagar JV with BSPGCL (NPGCL) Bihar ||1980 |
|16. Meja JV with UPRVUNL (MUNPL) Uttar Pradesh ||660 |
|17. Patratu Expansion JV with JBVNL ||2400 |
|18. Rourkela JV with SAIL (NSPCL) Odisha ||250 |
|19. Durgapur JV with SAIL (NSPCL) West Bengal ||40 |
|20. Khulna JV with BPDB (BIFPCL) Bangladesh ||1320 |
|Total II ||7150 |
|III. Total On-Going Projects as on ||21071 |
|31.07.2018 (I)+(II) || |
@Work of Lata Tapovan HEPP stopped as per orders of the Hon'ble Supreme Court dated07.05.2014.
7.2 New Technology & Initiatives
Indian power sector is undergoing a paradigm shift with redefined industry outlook andcalls for fresh approaches to meet the emerging challenges. There is a renewed focus onlocal and global safer environment along with having sustainable power generation. Thiscalls for new concepts in power plant design. At the same time your Company has takenfresh pledge towards safety in all operations. Also being the premier power generatingcompany in the country the responsibility has come on us for achieving high efficiencyand stringent emissions as a torch bearer for the power plants across the country. Instep your Company has laid major stress on efficient utilization of resources reductionin emissions and increased safety. Your Company has been voluntarily working on improvingthe energy conversion cycle efficiency by adopting more efficient technologies and powerplant schemes.
7.2.1 Continuous technological advancements for improving plant designs
Cleaner power has been central to your Company since its inception. Over the timelinewe have witnessed focus change from local pollution to global emission concerns. YourCompany has been voluntarily working on improving the energy conversion cycle efficiencyby adopting more efficient technologies. Efficiency of units has been continuouslyimproved from sub-critical to supercritical and onto ultra-supercritical technology (USC).All new units are being ordered with USC parameters of 600C/600C. Adoption of USCparameters shall result in a reduction of CO2 emission (as also otherslike NOx and SOx) intensity by around 8% when compared toconventional subcritical power plants for every unit of electricity generated. Parallelywater conservation is a new focus for your Company. In this direction introduction of drycooling technology like Air Cooled Condenser (ACC) is a significant step. Firstintroduction has been made in water stressed areas like North Karanpura and Patratu.Further your Company has taken initiative to become a Zero Liquid Discharge company forall closed cycle operating stations by identifying and implementing water managementinitiative adopting innovation in water use in its thermal power plant.
7.2.2 Advanced Ultra Supercritical (AUSC) technology development project
Indian program to develop AUSC technology is underway by a consortium of your CompanyBHEL and IGCAR. The program envisages development of indigenous technology for steamparameters of 310 Kg/cm2 and 710C/720C temperature.Such parameters are way higher than steam parameters used in contemporary plants globallyand would result in top of line efficiency of 46%. It will result in emissions to the tuneof 20% compared reduction of CO2 to a sub-critical plant. The phase-I of theprogram which constitutes R&D for technology development started from April 2017.Second phase of the programme i.e. setting up of an 800 MWe technology demonstration plant(TDP) is being planned at your company's Sipat plant located in Chhattisgarh. Thetechnology will support country's longer term dependence on coal while reconciling withNDC (Nationally Determined Contributions) commitments made as part of Paris ClimateAgreement.
7.2.3 Biomass Co-firing for reducing greenhouse emission & reduce pollution
Your Company has taken a new initiative to utilise agro residue for power generation.This is intended to cut down carbon emissions and also to discourage crop residue burningby farmers after harvesting by adding economic value to the crop residue. This is expectedto provide extra income to farmers and employment in rural sector. Such commercial scalebiomass co-firing which would be a first in India is slated to commence from September2018 at your company's Dadri power plant which is site for 6 x 210 MW and 2x490 MW coalfired units. Being carbon neutral process biomass co-firing is a technology which isglobally recognized as a measure of reducing greenhouse emissions and is more economicaland efficient than dedicated biomass plant.
7.2.4 Waste-to-energy technology initiatives
Keeping commitment for Swachh Bharat your Company has taken initiatives to establishtechnologies for clean and safe disposal of municipal waste which also provides someenergy as a spin-off benefit. In-line waste to compost plant at Karsada Varanasi hasbeen revamped for which the operation & maintenance (O&M) is also being managed.The plant processes about 600 TPD of MSW (municipal solid waste) and generates 60-80 TPDof compost. The sanitary land fill facility and leachate treatment facility have also beencreated at this plant to ensure systematic and safe disposal of municipal solid &liquid waste. Further your Company has recently awarded 24 TPD thermal gasification baseddemonstration scale plant at Varanasi. Here the MSW is first converted to produce gaswhich is then used to generate approximately 200 kW of electric power. Your Company ispresently working on more such plants which once established in technology andcollection/preparation processes will change the face of waste disposal in Indian cities.
7.2.5 Renewable energy
Renewable energy is one central focus for your Company. To be in step with ambitioustargets the Company is attempting all avenues for renewable capacity addition to lookbeyond conventional large scale solar and wind parks. In Kudgi Project 190 MW wind-solarhybrid project has been planned which is the largest in India. This would optimize the useof land and power evacuation infrastructure leading to reduction of cost of RE generation.Your Company is setting up 25 MW Solar Project with Battery Energy Storage System (BESS)in Andaman Port- Blair Island which is first commercial project in India with BatteryEnergy Storage. This would replace DG sets in Andaman. A project for Solar ThermalIntegration with the existing coal based unit at your
Company's Dadri Project is under construction and is expected to be commissioned in2018-19. The expected peak electrical output will be about 3.6 MW resulting in coalsavings of around 3825 tons/year and in reduction of emissions of around 4060 tons/year.Your CO2 Company is utilizing roofs of power plant buildings for solar powergeneration and integrating to the existing plant infrastructure. Your Company is alsogoing ahead with Floating Solar at reservoirs of Projects which is a step towards savingof land and water conservation by reducing water surface evaporation.
7.2.6 Use of treated Sewage Water from Municipal Sewage treatment plants
Your Company has taken on itself a novel & bold initiative to use sewage water fromnearby municipal zones. Such treated water will replace precious fresh water from rivers/lakes/reservoirs. The expertise inherent in your Company will establish the technology andbusiness processes to internalize the spirit of government notification of January 2016which makes such use mandatory for power plants wherever Municipal STPs are within 50 Kmdistance. Your Company has already identified some projects viz. Dadri Patratu SolapurMeja Mouda Korba Sipat and Ramagundam where there is feasibility of using the STPtreated water as STPs already exist/are going to be constructed. For NCTPP Dadri yourCompany has already signed in-principle MOU with NOIDA authority for utilization of 80 MLDtreated sewage water from Noida STPs as a flagship project.
7.2.7 Advanced digital and control technology use
Your Company has developed its Digital Strategy Roadmap where key areas like APC(Advanced Process Control) AMS (Advanced monitoring for Stockyard) for Operationoptimization APM (Asset Performance Management) for Maintenance optimization andApplication of IIOT (Industrial Internet of Things) in Generation to enhance processvisibility AIM (Asset Information Management) for digital twin with lifecycledocumentation ART (Augmented Reality based training) along with establishment of RemotePerformance Monitoring center have been identified. It is envisaged to implement all theabove initiatives in Simhadri power plant. One of the significant implementations which isfirst of its kind in the country is Remote Operation of Koldam Hydro station located inHimachal Pradesh from Control room situated at Scope Complex Delhi for 24 X 7 operation.
7.2.8 Energy Conservation Technology Absorption and Foreign Exchange Earnings andoutgo
Details of conservation of energy technology absorption and foreign exchangeearnings and outgo in accordance with Section 134(3)(m) of the Companies Act 2013 readwith Companies (Accounts) Rules 2014 forms part of this report as Annex-III.
7.3 Project Management
Your Company has established state-of-the-art IT enabled Project Monitoring Center(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.
7.4 Capacity addition through Subsidiaries and Joint Ventures (JVs)
Besides adding capacities on its own your Company develops power projects throughits subsidiaries 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 Company KBUNL ||JV Partner(s) ||Details |
|(Kanti Bijlee Utpadan Nigam Ltd.) ||Bihar State Power Generation Company Limited (erstwhile BSEB) ||A subsidiary Company in which your Company held 72.64% shares in joint venture with BSPGCL (erstwhile BSEB) took over Muzaffarpur Thermal Power Station having 2 units of 110 MW each from BSEB. |
| ||On 29.06.2018 your Company acquired the paid-up share capital held by BSPGCL in KBUNL. ||Both the units of Stage-I have been declared on commercial operation. |
| ||KBUNL has now become wholly-owned subsidiary. ||Total generation in FY 2017-18 was 1729 MU at 35.15% PLF. This Company has also taken up expansion of the project by 2X195 MW units. Unit#3 of Stage- II was declared commercial on 18.03.2017 and Unit#4 of Stage- II was declared commercial on 01.07.2017. |
|BRBCL (Bhartiya Rail Bijlee Company Ltd.) ||Ministry of Railways ||A subsidiary of your Company in joint venture with Ministry of Railways with equity contribution in the ratio of 74:26 is setting up power project of 1000 MW (4X250 MW) capacity at Nabinagar in Bihar. Unit#1 of 250 MW was declared commercial on 15.01.2017 and Unit#2 was declared commercial on 10.09.2017. Construction activities in other units are in progress. |
|NSPCL (NTPC-SAIL Power Co. Ltd.) (now converted into a Public Limited Company from NTPC- SAIL Power Company Private Limited) ||Steel Authority of India Ltd. (SAIL) ||A 50:50 Joint Venture Company between your Company and SAIL owns and operate Captive Power Plants of SAIL at Durgapur (2 x 60 MW) Rourkela (2 x 60 MW) and Bhilai (2 x 30 + 1 x 14 MW). NSPCL has also implemented 2 x 250 MW Bhilai Expansion Power Plant. Total installed capacity of NSPCL is 814 MW. |
| || ||NSPCL generated 6254 MU at 87.72% PLF in FY' 2017-18. NSPCL has paid final dividend of Rs 50 Crore for FY' 2016-17 to your Company. |
| || ||Under Implementation- New Coal based Capacity at Rourkela PP-II Expansion (1 x 250 MW) & Durgapur PP-III (2 x 20 MW) is under construction. |
| || ||Solar Power Plants of 200 MW capacity at various plant locations of SAIL is under tendering. |
|Name of Company NTECL ||JV Partner(s) ||Details |
|(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 Tamil Nadu. All the units have been declared on commercial operation. Total generation of NTECL during FY 2017-18 was 7168 MUs at 54.55% PLF and 70.46 % PAF. The profit for FY 2017-18 was ` 33.45 crore. |
|APCPL (Aravali Power Company Pvt. Ltd.) ||Indraprastha Power Generation Company Ltd. (IPGCL) and Haryana Power Generation Corporation Ltd. (HPGCL). ||This JVC is operating 3X500 MW coal based Indira Gandhi Super Thermal Power Project. Your Company IPGCL and HPGCL have contributed equity in the ratio of 50:25:25. Total generation of APCPL during FY 2017-18 was 7734 MU. APCPL has paid interim dividend of Rs 69.93 crore to NTPC for FY 2017-18. |
|MUNPL (Meja Nigam Ltd.) ||Uttar Pradesh Urja Rajya Vidyut Pvt. 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. Unit#1 achieved full load on 31.03.2018 and TG erection for Unit#2 started in January 2018. |
|NPGCL (Nabinagar Power Generating Company Pvt. Ltd.) ||Bihar State Power Generation Company Limited (erstwhile BSEB) On 29.06.2018 your Company acquired the paid-up share capital held by BSPGCL in NPGCL. ||A 50:50 JVC is setting up a 3x660 MW coal based plant at Nabinagar. Construction activities are in progress. |
| ||NPGCL has now become wholly-owned subsidiary. || |
|Name of ||JV Partner(s) ||Details |
|Company || || |
|RGPPL (Ratnagiri Gas Power Pvt. Ltd.) ||GAIL ICICI Bank SBI IDBI and Canara Bank and MSEB Holding Co. Ltd. ||Your Company has a stake of 25.51% in RGPPL. |
| || ||PPAs have been signed by RGPPL with Indian Railways for supply of ~500 MW for 5 years w.e.f. 01.04.2017 and Gas Supply Agreements were signed with GAIL for supply of 1.75 MMSCMD of RLNG w.e.f. 01.04.2017 for 5 years. |
| || ||Demerger scheme was approved by NCLAT on 28.02.2018 thereby separating the R-LNG business from RGPPL to the new entity Konkan LNG Private Limited (KLPL). Accordingly the paid-up share capital of RGPPL decreased from Rs 3820.27 crore to ` 3272.30 crore. |
|ASHVINI (Anushakti Vidhyut Nigam Ltd.) ||Nuclear Power Corporation of India Ltd. (NPCIL) ||Your Company is having a stake of 49%. The company was formed to set up Nuclear Power Project with two reactor units of mutually agreed capacity and at a mutually agreed location which may be extended to setting up additional NPPs at the same location or elsewhere as may be mutually discussed and agreed between the parties subject to establishment of techno-commercial viability. JVC may also explore the possibilities of entering into business activities related with the Nuclear Power generation and front-end fuel cycle such as uranium mining setting up of ancillary facilities etc. at an appropriate stage. Currently no activities are being taken up by the Company. |
|Name of Company ||JV Partner(s) ||Details |
|PVUNL (Patratu Vidyut Utpadan Nigam Limited) ||Jharkhand Bijli Vitran Nigam Limited (JBVNL) ||PVUNL has been incorporated on 15.10.2015 as a subsidiary of your Company 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 tie-lines sub-stations and main power transmission lines connected therewith and setting up of the new units. Existing capacity of 325 MW units was deleted from the data base of all India Installed Capacity by CEA on 23.11.2017. |
| || ||For expansion units (Phase-I 3X800 MW) supplementary Joint Venture Agreement was signed on 01.03.2018 and EPC package was awarded to BHEL on 08.03.2018. Deed of Adherence for Banhardi Coal Mine was signed on 02.06.2017 and bridge linkage was applied to Ministry of Coal on 09.06.2017. |
7.5 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 were declared commerciallyoperational on 18.07.2015. Since then the project is running successfully. The generationfor the financial year 2017-18 had been 3316.71 MU.
B. Tapovan Vishnugad HEPP (4x130 MW) is on River Dhauliganga District Chamoli(Uttarakhand). Project is under construction with approximately 91% of capex utilizationtill 31.03.2018.
C. Lata Tapovan HEPP (3x57 MW) is just upstream of Tapovan-Vishnugad HEPP inDistrict Chamoli (Uttarakhand). The work was stopped by Hon'ble Supreme Court throughorder dated 07.05.2014 for 24 Hydro Projects in the State of Uttarakhand includingLata-Tapovan. The MOEF&CC constituted an expert body which submitted its report on19.10.2015 and submitted the same in court on 05.11.2015 where Lata Tapovan had beenrecommended for implementation with compliance of certain additional conditions. YourCompany submitted in Court on 19.11.2015 that the conditions recommended by expert bodyshall be strictly complied. On the hearing held on 26.04.2016 Additional SolicitorGeneral of India represented MOEF&CC and informed the Court that Lata TapovanProject must be implemented. The matter is still pending in Hon'ble Supreme Court for wantof affidavit from Ministry of Water Resources (MoWR).
For National Board of Wild Life (NBWL) Clearance for Tapovan- Vishnugad and LataTapovan HEPPs the proposal regarding redefining of Eco Sensitive Zone (ESZ) was discussedin Uttarakhand State Cabinet Meeting. Formal proposal redefining the limits of ESZ ofNanda Devi National Park has been forwarded by Govt. of Uttarakhand to the standingcommittee of NBWL on 26.07.2016. Standing Committee of NBWL forwarded the proposal to MoWRon 23.09.2016. In spite of various reminders comments of MoWR are still awaited. Matterhas been discussed since then in various meetings of standing committee of NBWL butcould not be considered due to non-receipt of MoWR comments. Matter was last discussed in48th meeting held on 27.03.2018 wherein again the Member Secretary took up thematter with the State Government at the highest level.
Matter is being taken up with MoEF and Climate Change (GOI) by your Company forapproval of GOI.
D. Rammam-III HEPP (3x40MW) is situated on river Rammam in Teesta BasinDarjeeling (West Bengal). Construction work is in progress. PPA with Govt of West Bengalis in process.
7.6 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.
1. Under Green Energy Commitment:
Your Company has committed to develop 10 GW of Renewable Energy Projects under GreenEnergy Commitment to Govt. of India. As per your Company Corporate Plan 2032 the capacitywill have a diversified fuel mix with 28.5% Renewable Energy Sources (RES) includinghydro. Your Company has already commissioned 928 MW of RE projects as on 30th June 2018comprising 870 MW of Solar 50 MW of Wind & 8 MW of small hydro power projects.Rooftop Solar project of 1.5 MW capacity is under execution in Karnataka.
Further NITs have been issued for 185 MW of Solar PV projects in the states/UT ofGujarat Kerala Uttar Pradesh Telangana and A&N including 22 MW floating Solar PVproject in Kerala and 12 MWh Battery Energy Storage System in A&N.
2. National Solar Mission:
Your Company has been entrusted to develop 15 GW Solar PV under National Solar Mission(NSM) Phase-II Batch-II in three tranches between 2014-15 to 2018-19 where the Companywill be the facilitator/trader between Discoms and developers. Your Company will purchasepower from the developers and sell it to the Discoms. Under Tranche-I of 3000 MW of SolarPV capacity PPAs have been signed for entire capacity of 3000 MW solar PV projects. Outof this 3000 MW 2750 MW Solar PV capacity has been commissioned till 30th June2018 and 250 MW capacity is under implementation. The guidelines for the balance 12 GW isawaited from MNRE.
Your Company has also floated tenders for setting up Grid connected 2000 MW Solar PVprojects and 2000 MW Wind Power projects anywhere in India under Developer mode.
7.7 Capacity addition through acquisition:
Your Company has entered into a Memorandum of Understanding (MoU) with Government ofBihar and its affiliate Companies on May 15 2018 for transfer of Barauni TPS (720 MW)owned by Government of Bihar. The aforesaid MOU also provide for acquisition of BiharState Power Generation Company's (BSPGCL) equity stake in Kanti Bijlee Utpadan NigamLimited (KBUNL) & Nabinagar Power Generating Company Limited (NPGC) to your Company.Govt. of Bihar has notified a Transfer Scheme on June 27 2018 to effect the transactions.Your Company has acquired 27.36% equity of BSPGCL in KBUNL & 50% equity of BSPGCL inNPGCL on June 29 2018. With this acquisition KBUNL & NPGCL are now the wholly- owned subsidiaries of your Company. Activities are under way for acquisition of BarauniTPS.
An MoU was signed on 11.01.2017 (currently extended till 10.11.2018) amongst yourCompany Rajasthan Vidyut Utpadan Nigam Ltd. (RVUNL) and Rajasthan Rajya Urja Vikas NigamLimited (on behalf of Discoms) for possible acquisition of Chhabra St-I & II in aphased manner. Enabling actions for transfer are under way.
Your Company has invited Request for Proposal (RfP) on November 25 2017 frominterested parties i.e. Promoters/ Lenders or Authorized Financial Intermediaries of thePower Generation Companies/ Independent Power Producers/ Developers to offer theiroperating domestic coal based thermal power assets in India meeting the specified criteriain RFP. Proposals received against RFP are under evaluation.
8. STRATEGIC DIVERSIFICATION- INCREASING SELF-RELIANCE
8.1 In order to strengthen its competitive advantage in power generation business yourCompany 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 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 subsidiarytransferred and vested all its operations with effect from April 1 2015 to yourCompany.
NESCL was incorporated for the distribution business and later started deposit andconsultancy works. The transfer and vesting of existing operations would enable a focusedbusiness approach in the area of distribution the objective for which NESCL wasincorporated. Although currently NESCL does not have any business operations in retaildistribution the same will be taken up at an appropriate time when the opportunitybecomes visible.
8.2.2 NTPC Vidyut Vyapar Nigam Limited (NVVN) a wholly-owned subsidiary isengaged in the business of Power trading. NVVN has a trading License under Category I(highest category). It undertakes sale and purchase of electric power to effectivelyutilize installed capacity and thus enable reduction in the cost of power.
The Company has been designated as the nodal agency for cross border trading withBhutan and Bangladesh and for National Solar Mission.
In the FY 2017-18 NVVN traded 17278 million units (MUs).
NVVN has paid an interim dividend of Rs 20 Crore for FY 2017-18.
8.3 The details of other joint venture companies incorporated in India which are takingup activities in other 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 ` 2.5 crore as final dividend to your Company for FY 2016-17. |
|NGPSL (NTPC GE Power Services Private Limited earlier NTPC Alstom Power Services Private Limited) ||GE Power Systems GmbH ||To provide R&M services for coal based power plants in India. To renovate modernise refurbish rehabilitate upgrade reverse engineering and component damage assessment. Also for undertaking residual life assessment reengineering in India and on a project by project basis elsewhere in abroad utilising state-of-the- art technology. |
| || ||R&M including RLA work orders are under execution. NGPSL gave Rs 0.23 crore as final dividend to NTPC for FY'16-17. The dividend was received in FY'17-18. |
|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. EESL is working on Energy Audit of Buildings Perform Achieve Trade (PAT) scheme work and standard & leveling work of BEE Consultancy work implementing Bachat Lamp Yojana and Agricultural & Municipal Pump replacement for various State Govts. |
| || ||EESL gave Rs 8.80 crore as final dividend for FY'16-17 and ` 4.12 crore as interim dividend for 2017-18. The dividend was received in FY'17-18. |
|Name of Company ||JV Partner ||Activities Undertaken |
|NHPTL (National High Power Test Laboratory Pvt. Ltd.) ||NHPC PGCIL DVC and CPRI ||To establish a research and test facility for the power sector such as an "Online High Power Test Laboratory" for short circuit testing facility and other facilities as may be required for the same in the country. |
| || ||Online High Power Test Laboratory set up at Bina M.P. was declared commercial w.e.f 01.07.17. |
| || ||First commercial transformer of 765 kV Class short circuit tested (online) on 11.09.17. |
|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 promoters have decided to wind-up the Company and the activities are in progress. |
|(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. Activities for winding up of the Company are in progress. |
|TELK (Transformers 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. The Company had a turnover of Rs 185.22 crore in FY 2017- 18. |
| || ||Your Company has accorded in-principle approval for withdrawal of your Company from TELK on 28.04.2016. |
|ICVL (International 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 your Company 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. |
|Name of Company ||JV Partner ||Activities Undertaken |
|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. |
| || ||The final General Meeting of NTPC-SCCL was held on November 15 2016 after which the documents and books of liquidation was filed to Official Liquidator. |
| || ||The Order for dissolution of NTPC-SCCL from Hon'ble High Court of Delhi is awaited. |
|HURL (Hindustan Urvarak & Rasayan Limited) ||Coal India Limited Indian Oil Corporation Limited Fertilizer Corporation of India Limited (FCIL) Hindustan Fertilizer Corporation Limited (HFCL) ||HURL was incorporated on 15.06.2016 to establish and operate new fertilizer and chemicals complexes (urea- ammonia and associated chemical plants) at Gorakhpur & Sindri Units of FCIL and Barauni unit of HFCL and to market its products taking into consideration the assets of FCIL and HFCL at Gorakhpur Sindri and Barauni. |
| || ||Lump sum Turnkey contracts for all the three projects i.e. Gorakhpur Sindri and Barauni have been awarded. |
|KLPL (Konkan LNG Private Limited) ||GAIL ICICI Bank SBI IDBI Canara Bank and MSEB Holding Co. Ltd. ||Demerger scheme filed by RGPPL was approved by NCLAT on 28.02.2018 thereby separating the R-LNG business from RGPPL to the new entity Konkan LNG Private Limited (KLPL). |
| || ||The Demerger Scheme was filed with the Registrar of Companies on 26.03.2018 with appointed date of 01.01.2016. |
8.4 Diversification in Electric Vehicle (EV) Segment
With thrust of Government of India for E-Mobility & its adoption all across theglobe at a rapid pace the E-Mobility business seems one attractive option for the Companyto venture into and diversify its current portfolio of power generation.
As of now your Company is looking forward to develop the charging infrastructure andrun few pilot projects to get a foothold in this area and also to accumulate datasufficient for assessing the viability of the future business.
The Company is currently looking to set up EV charging infrastructure reach an MoUwith city administrations and seek strategic collaborations with other stakeholders inenergy sector.
Towards this end your Company has entered into an MOU for setting up charginginfrastructure in Jabalpur and necessary enabling actions are underway. MoUs have alsobeen signed with Oil Marketing Companies other PSUs etc. for collaboration in developmentof charging infrastructure.
The Company has also installed charging stations in its power stations and offices. Thecompany has also leased some E-Vehicles for its offices in NCR. Your Company is planningto develop a completed EV ecosystem in and around its power stations and offices to startwith.
8.5 Foray in Packaged Drinking Water Business
Your Company's research arm NETRA has developed technology for sea waterdesalination/waste water treatment using waste heat from flue gas from the power plant.The cost effective technology is now being utilized for packaged drinking water. An MoU inthis regard has been signed with IRCTC on January 15 2018 for setting up a packageddrinking water facility at your Company Simhadri Station. Commercial arrangement are beingfinalized with IRCTC.
IRCTC has further expressed interest for establishing similar packaged drinking waterfacilities at other power stations of your Company.
8.6 Foray into cement business
Your Company is collaborating with CCI for reviving the cement plants of CCIsupplementing both your company's & CCI's resource requirement and increasing ashutilization.
An MoU was signed with CCI in Jan'2018. CCI has expressed interest for establishing acement blending unit at your Company's Station Solapur by utilizing the fly ash and theproposal is being assessed.
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 electricity generating stationTrincomalee at Sri Lanka. 1st Meeting of Joint Working Group (JWG) was held inNov'16 in which the proposal of Govt. of Sri Lanka (GoSL) for relocating the Project atKerawalpitiya with change-in fuel type to meeting LNG was agreed in-principle. In 2ndJWG meeting held in Aug'17 at New Delhi it was decided that TPCL will implement the RLNGbased project at Kerawalapitiya and 50 MW solar power project at Trincomalee. GoSL hasissued letter of intent to GoI for development of 500 MW LNG project on 23.06.2017 and for50 MW solar project on 13.09.2017.
9.2 Bangladesh-India Friendship Power Company Private Limited a 50:50 jointventure Company between your Company and Bangladesh Power Development Board (BPDB) wasformed for developing a 2X660 MW Coal based power project (Maitree Super Thermal PowerPlant) at Khulna Division Rampal Bangladesh. EPC contract of the project except townshipwas awarded to BHEL. Construction is in full swing.
9.3 Other Opportunities Abroad: Business opportunities in Sri Lanka BhutanMyanmar Indonesia Oman UAE Egypt Ghana Zimbabwe Tanzania Kenya & other Africancountries are being explored in the areas of power generation O&M contractingR&M of power plants capability building and cross border power trading etc.
10. CONSULTANCY SERVICES
Consultancy Wing offers services "From Concept to Commissioning andbeyond
." such as in Engineering Operation & Maintenance ManagementProject Management Contracts & Procurement Management Quality Management Training& Development Solar & renewable power projects compliance to Environmentalnorms for power stations etc.
These services have been provided in India and abroad viz. Gulf countries BangladeshNepal Sri Lanka and Bhutan.
It has provided Services for more than 42000 MW capacity to external clients besides7551 MW of NTPC JVs.
On international front Consultancy Wing is providing O&M management services atSiddhirganj Peaking Power Plant (2x120MW) in Bangladesh under a World Bank funded contractwhich has been progressing successfully for last 5 years. There has been an all roundimprovement in terms of plant parameters due to implementation of best practices andsystems in power plant with involvement of your Company's experts.
On the domestic front Consultancy Wing is providing "Complete Owner's EngineerServices for implementation of 2X660MW Khurja STPP from concept to commissioning" toTHDC. It is also providing "Post Award review engineering and QA&I Services"of 2X660MW Jawaharpur TPS and of 2X660MW Obra Extn. TPS to UPRVUNL. Your Company'sConsultancy wing is providing owner's engineer services of FGD system for Environmentalcompliance to various clients like UPRVUNL HPGCL DVC and its own JVs. Also executingassignments of various clients such as SCCL UPRVUNL NMDC DPCC THDC HPGCL OCPL andyour Company JVs towards FR/DPR Preparation Procurement & Inspections and otheradvisory services.
Project Monitoring Services are being provided for 2x660 MW Shree Singhaji TPP Khandwaof MPPGCL and 1X660 MW Harduaganj TPS of UPRVUNL.
Consultancy Wing is providing Performance Improvement services to 4x250 MW units ofChhabra TPS RVUNL and O&M Management Service of 2X600MW Shree Singhaji TPP Khandwa ofMPPGCL and 2X50MW Captive Thermal Power Plant of FPL in Odisha by deployment of executivesat respective sites. Major O&M Technical Audit and Performance Guarantee test and ORTassignments of HPGCL RVUNL LPGCL UPRVUNL were taken up by Consultancy Wing. It is alsocarrying out "Independent technical due diligence assignment of stressed/stalledassets" for lenders.
Highlights of FY 17-18
Consultancy Wing received orders of Rs 386.89 crore
Consultancy Wing bagged 166 nos. of orders
O&M support to REC by deploying 4 executives at site for 2X50 MW CFBC Boiler ofFACOR Power -the first Power Plant of 100 MW capacity to be taken over by Lender (REC)under Securitisation and Reconstruction of Financial Assets and Enforcement of SecurityInterests Act 2016 (SARFAESI)
COD of unit 2 of SCCL was achieved within 7 days of full load. SCCL Station achieved 5thposition in top 25 power stations in India till January 2018 during financial year 2017-18with Yearly PLF of 90.44 % Boiler Hydro test of Unit # 2 (660MW) of Shree Singaji TPP wasalso successfully completed 3 months ahead of schedule.
Consultancy Wing is looking ahead for future business opportunities in areas likeimplementation of solar & renewable power projects supporting other power utilitiesfor meeting new environmental norms and taking over complete O&M for power plants ofother power utilities.
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 2013
The 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 ` 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
During the year the supply position of coal and gas are given as under:
13.1.1 Coal Supplies
Your Company has entered into long term Fuel Supply Agreement with Coal India Limited(CIL) & Singareni Collieries Company Limited (SCCL) for total Annual ContractedQuantity (ACQ) of 157.56 MMT & 11.2 MMT respectively and Bridge linkage of 4.65 MMTfor Barh. The short term MOU with the Singareni Collieries Company Limited (SCCL) forsupply of 8.0 MMT of coal for Ramagundam Simhadri Mouda Solapur and Kudgi (including7.87 MMT under Bridge linkage) stations.
To leverage potential of rationalization of coal linkages your Company has signed aSupplementary Agreement with CIL and CIL subsidiaries for all owned JV/ Subsidiarystations on 12.04.2017 for implementation of Govt. policy on "Flexibility inutilization of domestic coal for reducing cost of power generation". Under theSupplementary Agreement your Company can allocate coal to any station of its own or anyJV/ Subsidiary for optimising the Energy Charges.
As per directives of Govt. CIMFR started sampling at loading and unloading ends inJan'16. During the period 2017-18 sampling at all loading end sidings (except two sidingsi.e. CCL- Amrapali & KD- old) and sampling at unloading end of all your Companystations have been started. Further sampling at unloading end of four your Company's JVstations out of six have also been taken up by CIMFR. Remaining (Meja and BRBCL) areexpected to start in next FY.
Earlier your Company was also allocated Bridge Linkages for seven stations viz i)Barethi ( 4x660MW) ii) Barh II ( 2x660 MW) iii) Darlipalli I ( 2x800MW)iv) Tanda- II (2x660 MW) v) Lara-I ( 2x800 MW) vi) Kudgi-I (3x800 MW) & vii) Bilhaur(2x660 MW) for a period of three years from the date of allocation of captive block. Outof the above stations Bridge Linkage of Kudgi expiring on 31.03.2018 was extended bythree months by MoC vide OM dated 28.03.2018 i.e upto June 2018. Subsequently SLC (LT) inits meeting dated 10.04.2018 had recommended Bridge Linkage for Barh-II Lara-IDarlipalli Tanda and Kudgi on tapering basis as per approved mining plan of the linkedmines. The extension is valid upto 2022 for all the above stations except Barh-II which isvalid upto 2023.
Bridge Linkage MoUs have already been signed for (i) Barh St-II with CCL & ECL (ii)Lara with MCL and (iii) Darlipalli with MCL and SECL. For other projects as and when CODis declared MOU will be signed.
13.1.2 Domestic Coal and Imported Coal
During 2017-18 your Company received 167.67 MMT of coal as against 159.25 MMT in2016-17 marking an increase of (+) 5.29%. Out of 167.67 MMT of coal 155.87 MMT was fromAnnual Contracted Quantity of coal 3.027 MMT through SCCL Bi-lateral MoU and 1.531 MMTreceived through e-auction. During 2017-18 Company Imported 0.32 MMT of coal suppliedagainst carryover of last contract awarded on Aug'2015 as against 1.09 MMT in 2016-17making a decrease of (-) 70.6% in import coal.
13.1.3 Sourcing of coal through E-auction
To supplement import coal as well as deficiencies in FSA coal qty. Your Companyparticipated in e-auctions of CIL subsidiaries & SCCL in the current financial yearalso. In the current FY your Company has participated in e-auction of total 1017 nos rakeof coal (4.03 MMT) out of which 604 nos rake of coal (2.42 MMT) have been allotted.
13.1.4 Supply through Inland Waterways
During 2017-18 about 1.61 lakh MT imported coal has been supplied through this mode toFarakka station under a Tripartite Agreement with IWAI and service provider.
13.1.5 Gas supplies
During 2017-18 your Company received total 4.48 MMSCMD of Domestic gas as against 5.17MMSCMD of Domestic gas received during 2016-17. Spot RLNG off-take during 2017-18 was 0.85MMSCMD.
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. The agreementfor Non-APM gas with GAIL has been renewed upto the year 2021.
For additional gas requirement over and above the supplies under long-term domestic gasagreements your Company has been making arrangements for supply of Spot RLNG fromdomestic suppliers on Reasonable Endeavour' basis based on requirement andavailability from time to time. Further adequate stock of liquid fuel is maintained formeeting Grid's requirement. There has been no generation loss on account of lack ofavailability of Domestic gas / RLNG / Liquid fuel during the year.
13.1.6 Oil/Gas exploration:
In the KG basin exploration block KG-OSN-2009/4 where ONGC is the Operator and yourCompany has 10% stake after completion of Minimum Work Programme (MWP) ONGC hassubmitted proposal to DGH for relinquishment of the block.
13.2 Development of Coal Mining projects
Your Company has been allocated eight coal blocks by Government of India namelyPakri-Barwadih Chatti-Bariatu & Chatti-Bariatu (South) Kerandari located in theState of Jharkhand Dulanga Mandakini-B located in the State of Odisha and TalaipalliBanai & Bhalumuda located in the State of Chhattisgarh. In addition Government ofIndia has also allocated Kudanali-Luburi coal block (Odisha) jointly to your Company andthe State of J&K with your company's share of coal reserves in this block beingtwo-third share of coal reserves to your Company.
Banhardih coal mine is allocted to PVUNL a JV company of NTPC Limited.
From these 10 coal blocks with a total estimated geological reserves of about 7.3Billion Metric Tonnes your Company including its group companies expects to produce about111 Million Metric Tonnes of coal per annum. Your Company on standalone basis expects toproduce 94 million metric tonnes per annum of Coal.
Coal production commenced from Pakri-Barwadih coal block in Dec'16. It is a BasketMine. During FY 2017-18 about 2.67 MMT coal have been extracted and 683 no of rakes ofcoal have been dispatched to power stations through Indian Railways network. 1143 no ofrakes of coal have been dispatched to power stations upto 15.07.2018. Production targetfor this mine in FY 2018-19 is 6.27 MMT in line with the mine plan.
Mine Developer-cum-Operator (MDO) for Dulanga coal block has been appointed on09.02.17. Mining operation started on 28.02.18. The end use plant of this mine isDarilipalli (1320 MW) STPP located about 10 kms from the block. Coal is transported to thepower project by captive MGR system. Coal production target for this mine in FY 2018-19 is1.5 MMT.
Mine Developer-cum-Operator (MDO) for Talaipalli and Chatti-Bariatu coal blocks wereappointed on 13.11.17.
In view of violation of Integrity Pact' your Company has kept the contract undersuspension and show cause notice for termination has been served on 29.12.17. The matteris sub-judice. In case of Chatti-Bariatu and Talaipalli about 61% and 90% land paymentshas been completed respectively. For Kerandari coal block tender for MDO appointment hasbeen annulled. Having gained experience by opening two mines and with a view to develop inhouse competency this block is now proposed to be developed in a limited outsourcing mode.As per Allotment Agreement with MoC scheduled target for coal production from the threeblocks i.e. Talaipalli Chatti-Bariatu and Kerendari is November 2019.
In the above five coal blocks i.e. Pakri-Barwadih Dulanga Talaipalli Chatti-Bariatu& Kerandari on community development / CSR activities your Company has incurred anexpenditure of Rs 20.47 crore in this FY 2017-18 (Cumulative expenditure of appx. Rs 100crore) which has helped in improving the socio-economic conditions of the local community.
For Mandakini-B coal block Mining Plan & FR are under preparation. Target forcommencement of production is February 2022.
At the time of allotment the Banai & Bhalumuda coal blocks were unexplored. NTPCgot the exploration completed and Geological Report(s) are available. There are issues inavailability of land for external OB dump and therefore with a view to optimiseexploitation your Company has proposed to the Nominated Authority Ministry of Coal formerger of these coal blocks. The matter is under consideration at MoC.
Initiatives through Joint Ventures and Subsidiaries:
Banhardih coal block which was allocated to JUUNL as the linked mine for the PatratuPower Project has now been assigned to Patratu Vidyut Utpadan Nigam Ltd. (PVUNL) a JVcompany incorporated between your Company & Government of Jharkhand. For landacquisition Section 4(i) notification under CBA Act has been notified by MOC.
Kudanali-Laburi Coal block in Odisha has been jointly allotted to your Company &State of J&K by MoC GoI. Joint Venture Agreement between your Company & JKSPDCLhas been signed on 15.06.15 for incorporation of a Joint Venture Company for ExplorationDevelopment & Operation of the Coal Block. Approval from NITI Aayog has been obtainedfor formation of JV Company. Action is underway for formation of the Company.
Your Company has decided to have coal mining business into a wholly-owned subsidiary inorder to meet various business/strategic objectives viz. fuel security focusedmanagement readiness for future de-linking business risks and enhancement of shareholdervalue.
Consent of Niti Aayog has been obtained for formation of subsidiary. Your Company hasapproached Ministry of Coal GoI for no objection certificate in this regard.
14. BUSINESS EXCELLENCE: GLOBAL
Your Company has developed and adopted NTPC Business Excellence Model' on thelines of globally accepted Performance Excellence frameworks such as the Malcolm BaldrigeModel USA and EFQM Model of Europe.
The assessment process is aimed at identifying the area for enhancing stakeholders'engagement improving critical processes and developing leadership potential.
The outcome of this model is identification of organizational strength opportunitiesfor improvement issues of concern and best practices.
In the financial year 2017-18 22 generating stations were assessed by a team ofcertified assessors. Business Excellence Award for best performance was given toTalcher-Kaniha.
In its pursuit to embrace digital and paperless working environment your Company hasstarted implementation of an IT enabled initiative- Corporate Performance Management andBusiness Intelligence system to enable strategy execution and communication analyticsquery response reporting and automating few business processes that provides effectivedecision support for the management across different tiers.
Other contemporary TQM concepts and techniques like ISO Quality Circles ProfessionalCircles 5S etc. have been deployed across the organization. Quality Circle team of yourCompany Talcher Thermal Station had participated in International QC Conventionheld at Manila in October 2017.
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 to overcome the impact of ageing of the units over the years and for thepurpose of ensuring SAFE OPERATIONS compliance with revised and stringent environmentalnorms life extension of units performance improvements availability and reliabilityimprovement and to overcome obsolescence as well as changes in operational logistics. Itensures safe reliable and economic electricity production by replacement of worn-outdeteriorated or obsolete electrical mechanical instrumentation controls and protectionsystem by state-of-the-art equipment.
Investment approval accorded till date for R&M in 20 stations (Coal & Gasbased) is Rs 14069.07 Crore. As against this cumulative expenditure till 31.03.2018 is` 6817.20 Crore which includes R&M capital expenditure of Rs 544.36 Crore duringFY 2017-18.
As a responsible corporate citizen it has always been your Company's endeavour toensure low levels of pollution from its power stations. With a view to maintain a cleanatmosphere in and around the power plant by reduction of particulate emission levels fromgenerating stations Renovation and Retrofitting of Electrostatic Precipitator (ESP)packages have been awarded for 53 Units in 12 Stations namely Tanda (4 x110MW)Badarpur II (2x210MW) Singrauli - I & II (5X200MW+2X500MW) Korba - I & II(3X200MW+3X500MW) Farakka - I & II (3X200MW+2X500MW) Vindhyachal - I & II(6X210MW+2x500MW) Rihand I (2x500MW) Unchahar - I (2x210MW) Talcher TPS-II(2X110MW) Talcher STPS I & II (2X500MW+4X500MW) awarded prior to FY 2017-18and Unchahar - II (2x210MW) Ramagundam - I (3x200 MW) and Kahalgaon - I (4 x 210 MW)awarded during FY 2017-18. ESP R&M work has been completed during 2017-18 in 9 unitsnamely 1x210MW+2x500 MW of Korba 2x500 MW of Talcher STPS 1x110 MW of Talcher TPS 1x210MW of Unchahar 1x200 MW of Farakka and 1x500 MW of Vindhyachal and total no of units inwhich ESP R&M has been completed till Mar'18 is 23 in 9 stations.
With a view to removing technological obsolescence renovation of Control &Instrumentation (C&I) has been taken up in 9 coal based stations namely Singrauli-I(5X200MW) & Singrauli II (2X500 MW) Korba I (3X200MW) & Korba II (3X500 MW) Ramagundam -I (3X200MW) & Ramagundam II (3X500MW) Farakka-I (3X200 MW) & Farakka-II (2X500 MW) Dadri Thermal- I (4X210MW) Unchahar- I (2X210MW)Talcher STPS-I (2X500MW) Kahalgaon-I (4X210 MW) and Rihand (2X500 MW) comprising atotal of 38 units. During 2017-18 C&I R&M was completed in one 500 MW unit ofFarakka one 500 MW unit of Ramagundam and two 210 MW units of Kahalgaon and the total no.of units in which C&I R&M completed till date is 30. Renovation of Control &Instrumentation (C&I) has also been taken up in five gas based stations namely Anta(419.33 MW 3 GT + 1 ST) Auraiya (663.36 MW 4 GT + 2 ST) Kawas (656.20 MW 4 GT + 2ST) Dadri Gas (829.78 MW 4 GT + 2 ST) and Faridabad (432 MW 2 GT + 1 ST). During2017-18 C&I R&M was completed in one Module( 2 GT + 1 ST) in Dadri Gas and thetotal no. of units in which C&I R&M completed in Gas Stations till Mar'18 is 13GT/WHRB and 6 STG. On completion of these schemes C&I systems in these units have nowbeen brought nearly on par with the new builds.
R&M of Gas Turbines was completed in 14 Gas Turbines in four stations namely4x106MW in Kawas 4x111.19 MW in Auraiya 3x88.71MW in Anta and 3x144.30MW in Gandhar.
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 andconsistent reduction of Man-MW ratio year after year. The overall Man-MW ratio for theyear 2017-18 excluding JV/subsidiary capacity is 0.44 and 0.42 including capacity of JV/Subsidiaries. Generation per employee was 13.47 MUs during the year based on generation ofyour Company's stations.
The total employee strength of your Company (including JV/ subsidiaries) stood at21584 as on 31.3.2018 against 22124 as on 31.3.2017.
| ||FY 2017-18 ||FY 2016-17 |
|Number of employees ||19739 ||20593 |
|Subsidiaries & Joint Ventures || || |
|Employees of your Company in Subsidiaries & Joint Ventures ||1845 ||1531 |
|Total employees ||21584 ||22124 |
The attrition rate of your Company executives during the year was 0.53% in comparisonto last year at 0.93%.
16.2 Employee Relations
Employees are the driving force behind the sustained stellar performance of yourCompany over all these years of company's ascendancy. As a commitment towards yourCompany's core values employees' participation in Management was made effective based onmutual respect trust and a feeling of being a progressive partner in growth and success.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 overallharmony 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 Center. Safety issues are discussed in the highest forum ofmanagement like Risk Management Committee (RMC) Management Committee Meeting (MCM) ORTsPRTs etc. Ex-Director Operations (Nuclear Power Corporation Ltd) was engaged to enrichsafety systems and strengthen process safety. On the occasion of "National SafetyDay" CMD along with the Board addressed all project / Stations.
All of your Company's stations are certified with OHSAS-18001/IS-18001. Six of ourstations are going for international level NOSA accreditation in Safety and Environment.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. Company level HIRAdocument has been prepared and shared with all stations.
Height permit and height check list are implemented to ensure safety of workers whileworking at height. Adequate numbers of qualified safety officers are posted at all unitsas per statutory rules/provisions to look after safety of men & materials. Mock drillswere conducted with NDRF to prepare for any extreme on site emergency. Sites are engagingthe safety consultant of international repute to uplift safety standards.
For strict compliance & enforcement of safety norms and practices by thecontractors safety clauses are included in General Conditions of Contract/ ErectionConditions 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 Company's plants have been awarded with prestigious safety awardsconferred by various Institutions/Body like Ministry of Labour & Employment-Govt. ofIndia National Safety Council Institute of Directors Institution of Engineers (India)in recognition of implementing innovative safety procedures and practices.
An unfortunate accident took place on 1st November 2017 in the boiler of 6thunit of Unchahar plant at U.P. This caused fatal accidents and burn injuries to thepersonnel working in the boiler area. Relief measures were immediately taken and allmedical facilities were provided to the injured. Ex-gratia compensation was provided tothe families of deceased and to the injured personnel.
The standard operating procedures were followed for maintaining utmost safety inoperations and processes in your Company to avert such accidents.
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 Ministry of Home Affairs. Concrete steps are being taken forupgrading surveillance systems at all projects/ stations by installing state-of-the-artsecurity systems.
16.4 Training and Development
Your Company has consistently endeavored for attracting on-boarding grooming andmotivating its talent recognising that nurturing the talent leads to competitiveadvantage.
Power Management Institute (PMI) the apex learning and development (L&D) center ofyour Company is actively engaged in making our people future ready in terms oftechnology business acumen and leadership.
All the programs are carefully linked to Company's strategic objectives business planand emerging trends.
During FY 2017-18 your Company upgraded its physical and digital infrastructure toimpart learning through contemporary pedagogy in world class ambience. It renovated itsclassrooms with state-of-the-art facilities including smart boards video conferencing andsession-recording facilities.
Our training delivery methods include a judicious blend of classroom learning theaterworkshop village immersion module (for first hand CSR feel to young ETs) e-learningplatform video and web platforms etc.
An in-house e-Learning portal called e-Guru has been created which provides all thee-Learning resources on a unified platform. A e-library of 25000 e-books 1000000articles reports and journals supports employees' knowledge up-gradation.
Last year PMI introduced new eLearning courses (1000 course licenses from GeneralPhysics (GPiLearn)) in the power plant technical skills domain. Augmented Reality/VirtualReality platform has been introduced as new L&D tool for providing real time immersivelearning to participants particularly in the areas of O&M and Project related safety.
The L&D interventions are designed after a multidimensional Training Need Analysis(TNA) for enhancing technical functional strategic and leadership skills with focus onbusiness objectives of the Company. In PMI 237 training programs were conducted duringFY17-18 covering nearly 7272 professionals resulting in a total of approximately 38046learning man-days.
PMI is also conscious of the fact that the business complexities of the future wouldneed global mindset and competence. Last year it sent three batches (about 40 each) ofsenior executives (GMs/EDs) to Harvard and one batch (about 25) to Wharton to get learningfrom some of the best in the world.
In recognition to its pioneering efforts your Company PMI has received the globallyacknowledged ATD Best 2017 and 2018 Awards (Two years in succession) ISTD InnovativePractices Award 2016-17 and the BML Munjal Award 2018 (Sustained Excellence Category).These awards recognize organizations that demonstrate enterprise-wide success as a resultof L&D and talent development practices.
17. SUSTAINABLE DEVELOPMENT
Your Company has adopted the triple bottom-line' approach recognizing PeoplePlanet and Profit as the primary pillars of corporate sustainability and believes thatDevelopment should not endanger the natural systems.
Your Company is preparing Sustainability Report based on the Global ReportingInitiative (GRI). Sustainability reporting has helped us in measuring and monitoring theCompany's performance. It has served as an important management tool helping your Companyto relook the systems policies and procedures. Your Company has developed a policy and inaccordance with it a Sustainable Development Plan was prepared for FY 2017-18. The focusarea of Sustainable Development Plan covers waste management water managementbio-diversity promotion of renewable energy. Major activities carried out under this planinclude massive plantation of trees installation of rooftop Solar PV around powerstations on public utilities buildings and on schools vermicomposting/Bio-methanationplant & studies on environment impact assessment. Major activities under bio-diversityconservation taken up are conservation of Olive Ridley Sea Turtles and study onbio-productivity of Gangetic Dolphin at Kahalgaon Station. Business Responsibility Reportis attached as Annex-X and forms part of the Annual Report.
Revenue expenditure of Rs 56.22 Crore was incurred on these SD projects duringFinancial Year 2017-18.
17.1 Inclusive Growth Initiatives for Social Growth
17.1.1 Corporate Social Responsibility:
CSR has been synonymous with Company's core business of power generation. The Company'sspirit of caring and sharing is embedded in its mission statement. The Company has acomprehensive Resettlement & Rehabilitation (R&R) policy covering communitydevelopment (CD) activities which has been revised and updated from time to time. CDactivities in green field area are initiated as soon as project is conceived andthereafter extensive community / peripheral development activities are taken up along withthe project development. Separate CSR Community Development Policy formulated in July2004 and Sustainability Policy formulated in Nov 2012 were combined and revised in 2016 as"NTPC Policy for CSR & Sustainability" in line with Companies Act 2013 andDPE Guidelines for CSR. It covers a wide range of activities including implementation ofkey programmes through NTPC Foundation.
Focus areas of your Companys' CSR & Sustainability activities are HealthSanitation Safe Drinking Water Education Capacity Building Women Empowerment SocialInfrastructure livelihood creation and support through innovative agriculture &livestock development support to Physically Challenged Person (PCPs) and activitiescontributing towards Environment Sustainability. The Company commits itself to contributeto the society discharging its corporate social responsibilities through initiatives thathave positive impact on society at large especially the community in the neighborhood ofits operations by improving the quality of life of the people promoting inclusive growthand environmental sustainability.
Preference for CSR & Sustainability activities is given to local areas aroundCompany's operations ensuring that majority CSR funds are spent for activities in localareas. However considering Inclusive Growth & Environment Sustainability and tosupplement Government effort activities are also taken up anywhere in the country. Duringthe year about 550 villages and more than 450 schools have been benefitted by yourcompany's various CSR initiatives at different locations. Your company's CSR initiativeshave touched the lives of around 10 lakh people in one or the other way residing atremote locations.
Apart from the CSR activities undertaken in and around operations to improve the livingconditions of the local communities other CSR initiatives undertaken PAN India arementioned in the Annual Report on CSR activities annexed with this Report.
Your Company spent Rs 241.54 Crore during the financial year 2017-18 towards CSRinitiatives which surpassed the prescribed two percent amount of Rs 220.75 Crore thusachieving a CSR spend of 2.19%.
17.1.2 NTPC Foundation
NTPC Foundation funded by your Company is engaged in serving and empowering thedifferently-abled and economically weaker sections of the society.
Details of expenditure incurred and initiatives undertaken by the Company under CSR arecovered in the Annual Report on CSR annexed 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 AffectedFamilies (PAFs). In line with its social objectives the Company has focused on effectiveresettlement and rehabilitation (R&R) of PAFs and also on community development works(CD) in and around its projects.
Your Company had revised its R&R Policy in the year 2017 to incorporate R&Rentitlements as per The Right to Fair Compensation and Transparency in Land AcquisitionRehabilitation and Resettlement Act 2013 (RFCTLARR Act) in order to extend facilities toPAFs.
Your Company addresses R&R issues in line with its R&R Policy with an objectivethat PAF will improve or at least regain their previous standard of living. As per thePolicy and the RFCTLARR Act a Socio-economic Survey (SES)/Census Survey will have to beconducted by the State Govt to collect detailed demographic details of the area whichshall form the basis for the preparation of Rehabilitation and Resettlement(R&R) Scheme. Apart from the R&R provisions in line with
RFCT LARR Act need based community development (CD) activities will also be includedin the Scheme for contributing to socio-economic development of the PAFs and nearbypopulation residing in the vicinity of the project.
R&R Scheme is a part of capital cost of the project which is implemented in a timebound manner so as to complete its implementation by the time the project is commissioned.On completion of the R&R Scheme a Social Impact Evaluation (SIE) is conducted by aprofessional agency to know the efficacy of R&R Scheme implementation for futurelearnings.
Cost provision for R&R/ CD Plan for Tapovan-Visnugad Hydro Power Project wasenhanced for providing additional funds for Long Term water supply arrangement forJoshimath area.
R&R/ CD 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-II Unchahar-IVVindhyachal-IV/V Telangana-I Hydro projects at Koldam Tapovan Vishnugad Rammam-III andCoal Mining Projects at Pakri-Barwadih Chhatti-Bariatu Kerendari Dulanga and Talaipaliprojects.
Re-appropriation of under implementation R&R / CD Plans as required on a case tocase basis for specific project was also approved to take care of the local requirementsduring implementation.
Need Assessment Survey/ Social Impact Evaluation was carried out at Singrauli Patratu& Meja projects.
Planned audit of LA/R&R activities was conducted.
Details of focus area of R&R-CD activities are as under:
Swachh Bharat Abhiyan Various initiatives were taken to make project affectedvillages open defecation free by taking up activities related to construction/audit ofindividual toilets and awareness programs.
Drinking water Planning and implementation for access to drinking water for 100%coverage of all project affected villages of your Company was undertaken.
Capacity building / Skill up gradation MOU/ Tie up with National Skill DevelopmentCorporation (NSDC) is being implemented for imparting skill development to PAFs at variousprojects as part of National Skill Development Mission' of GOI.
Education Construction activities started for Medical College at Sundargarh(Odisha) and Engineering College at Shivpuri (MP).
Health - For the benefits of project affected persons and neighboring populationMobile Health Clinic' Medical camps and dispensaries are being operated forcomprehensive health coverage of PAPs at North Karanpura and mining projects at Jharkhandduring the year.
17.2 Environment Management Environment Policy of your Company:
"To provide cleaner energy by committing to highest possible levels of performancein environmental compliance practices and stewardship."
Your Company has always envisaged environment protection and management practices asone of its prime responsibilities and focuses its efforts to minimize the impact of itsoperation on surrounding environment and concerned ecosystem.
Your Company undertakes comprehensive environment management plan right from conceptionof project selection of site resources (Land Coal & Water source) and state of arttechnology. Your Company is also undertaking massive renovation & modernization toupgrade air pollution equipment wherever necessary. Your Company has also taken initiativefor installation of Flue Gas Desulfurization (FGD) system for SOx emission control andoptimization & implementation of appropriate technology for NOx emission control.
Around 12-15% of the project cost is spent on various environment protection equipmentsand monitoring systems such as Electrostatic Precipitators (ESPs) Liquid Waste TreatmentPlants (LWTP) Ash Water Recirculation System (AWRS) Coal Settling and Separation Pit(CSSP) Dry ash extraction system (DAES) dust extraction & suppression systemContinuous emission monitoring system (CEMS) Effluent quality monitoring system (EQMS)Continuous ambient air quality monitoring system (CAAQMS) flue gas conditioning systemand desulphurization system etc. It has adopted advanced and high efficiency technologiessuch as super critical boilers at new stations DeNOx and FGD in all upcoming green fieldprojects.
Your Company is augmenting its capacity by installing wind power solar power systemsin a big way hybrid power plant in combinations e.g. Wind & Solar Solar &Thermal and small hydel power systems attached to its thermal power stations to encouragegarnering of renewable energy resources. These measures are aimed not only to achievereduction in pollution and to minimize use of precious natural resources but also to leadto reduction in water and carbon footprints.
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 emission limits.All upcoming units have been planned with ESPs DeNOx and FGD system designed to meet newemission norms. Performance enhancement of ESPs operating over the years is being carriedout by augmentation of ESPs fields retrofitting of advanced ESP controllers newtechnology i. e. MEEP (Moving electrode Electrostatic Precipitators) and adoption of soundO&M practices.
For control of SOx first FGD has been commissioned and became operational atVindhyachal Station.
Erection of FGD at Bongaigaon is in advance stage. FGD package for all stations in NCRarea awarded to comply the new norms for SOx emission by December 2019. Work for erectionof FGD system started at both station. In case of existing units FGD is being planned ina phased manner at other locations as per the timeline given by central regulator forimplementation of new norms.
NOx control in coal-fired plants is presently achieved by controlling its production byadopting best combustion practices (primarily through excess air and combustiontemperatures optimization). To comply with new norms for NOx emission pilot study basedon SCR/SNCR technology at 11 locations are in final stage of completion to find out theoptimal solution and suitable technology for DeNOx system suitable for Indian Coal. In gasbased stations NOx control systems (hybrid burners or wet DeNOx) have been provided forgood combustion practices.
Change of secondary fuel from HFO to alternative fuel (LDO or LSHS) having low sulfurcontent to minimize the SOx emission during the start up of coal based units in NCR is inadvanced stage. As per the order of Hon'ble Supreme Court use of HFO was banned in stateof UP Haryana Rajasthan and Delhi whereas your Company has decided to switch the use ofHFO to alternate fuel in all the units of your Company.
17.2.2 Control of water pollution and adoption of ZLD approach:
Your Company as a responsible corporate entity for environment has proactivelyinitiated steps towards water stewardship in power generation sector. Company released itsWater Policy-2017 to set own benchmark in water consumption in power generation by settingits aim & objectives for various water conservation and management measures by using3Rs (Reduce Recycle & Reuse) as guiding principle. Water bodies rehabilitation &restoration water withdrawal optimization depending on the sustainable water withdrawalcapacity and rejection of water bodies as water source which are recognized asenvironmentally sensitive due to their relative size and habitat for ecologicallysensitive species.
Provision of advanced waste water treatment facilities such as sewage Treatment Plant(STP) Liquid Waste Treatment Plants (LWTP) Coal Settlement Pit (CHP) Ash WaterRecirculation System (AWRS) and closed cycle condenser cooling water systems with higherCycle of Concentration (COC) rain water harvesting and reuse of treated effluent in ashslurry disposal and reuse of treated sewage effluent for horticulture purposes are some ofthe measures implemented in all stations. For effective monitoring of water use flowmeters with integrators installed at all designated locations in all stations.
In view of water stressed scenario and new norms for specific water consumption waterconservation and reduction in water consumption per unit of generation enable your Companyto comply the new norms on water consumption in all operating stations. Your Company hastaken a proactive approach of making all its power stations to operate with ZLD (Zeroliquid discharge) during the current year.
17.2.3 Real Time Environment Monitoring System:
All the power stations are equipped with continuous ambient air quality monitoringstations (CAAQMS) to capture the real time ambient air quality data for parameters namelyPM10.0 PM 2.5 SO2 NOx and access thereof has been provided to theCentral and State Regulators i.e. Central Pollution Control Board and State PollutionControl Boards/PCCs. Additional ozone analyzers for ambient air are also being providedphase-wise at the existing stations. Continuous Emission Monitoring Systems (CEMS) areinstalled in all units to monitor emissions of SO2 and NOx and opacity meterfor monitoring of particulate emission. Effluent Quality monitoring system (EQMS) areinstalled for real time monitors for pollutants in effluents from all stations. Thereal-time data is being transmitted to regulators. For all the upcoming projects realtime monitors for ambient air effluents and emissions are included in the engineeringpackages during design stage itself.
17.2.4 Revised Emission Norms
The new environmental norms notified by MOEF&CC vide gazette notification dated07.12.2015 calls for introduction of new control devices for oxides of sulphur andnitrogen. All existing and new plants require DeSOx and DeNOx plants to be introduced intothe plant designs. In this regard your Company has risen to the occasion and issued bulktenders for 66 units of around 38 GW capacity for installing FGD (flue gasdesulphurization) system to meet emissions SO2 limit. FGD installation Work in7230 MW is underway. Further FGD in Vindhyachal stage-V is already in operation. Forestablishing DeNox the suitability of SCR (selective catalytic reduction) for the coalsused in Indian power plants which characterize uniquely with high ash content and itsabrasive nature pilot tests are underway at seven stations of your Company. Further yourCompany as a pioneer in environment monitoring has already installed Ambient Air QualityMonitoring Stations (AAQMS) employing NOx SOx CO SPM & RSPM analysers in 20operating stations in 2009-10 and data is made available to CPCB and SPCB. SimilarlyContinuous Emission Monitoring System (CEMS) employing NOx analysers at stack for fluegas have been SOx CO & CO2 installed recently in various operatingstations. Your Company has also recently introduced analysers for Mercury monitoring forboth AAQMS and CEMS.
17.2.5 Tree Plantation:
Your Company has undertaking tree plantation covering vast areas of land in and aroundits projects and till date more than 33 million trees have been planted throughout thecountry including 10 million trees planted during 2016-17 under accelerated afforestationprogramme inline with NDC-2030 of Nation followed by 1 million tree plantation during2017-18.
The afforestation has not only contributed to the aesthetics' but also helped incarbon sequestration by serving as a sink' for pollutants and thereby protecting thequality of ecology and environment. Further your Company has embarked upon long-termMemorandums with State authorities to assist National Commitment of NDC in COP 21 byplanning to plant 8 million saplings during 2018-26 @ 1 million per year.
17.2.6 ISO 14001 & OHSAS 18001 Certification:
All stations of your Company have been certified with ISO 14001 and OHSAS 18001 byreputed National and International certifying agencies in recognition of its soundenvironment management 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 and planned keeping in mind theinterests 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 Company's robust performance on all parameters is a testimony to the soundness ofthe quality system deployed.
Your Company is represented on various technical committee of ISO and IEC and isactively contributing in formulation and updating of power sector technical and qualitystandards/ guidelines to serve the national as well as international community at large.
17.4 Clean Development Mechanism (CDM)
Your Company is pioneer in undertaking climate change issues proactively. The Companyhas taken several initiatives in CDM Projects in Power Sector.
Five of its renewable energy projects viz. 5 MW Solar PV Power Project at Dadri 5 MWSolar PV Power Project at Port Blair (A&N) 5 MW Solar PV Power Project at Faridabadand 8 MW small hydro power project at Singrauli and 50 MW Solar PV Plant at Rajgarh (MP)have already been registered with United Nations Frame Work Convention on Climate Change(UNFCCC) CDM Executive Board.
Prior consideration form was sent for 10 MW Solar PV Power Project at Unchahar 10 MWSolar PV Power Project at Ramagundam 15 MW Solar Thermal Power Project at Anta.
Coordinating / Managing Entity (CME) has been appointed for 15 MW Solar PV Powerproject at Singrauli and 10 MW Solar PV project at Talcher and is in process to includethe same in registered UNFCCC CDM Programme of Activities (PoA).
6173 nos of Certified Emission Reductions (CERs) for 5 MW Solar PV Power Project atPort Blair (A&N) has been issued by UNFCCC CDM Executive Board. Further another 5842nos of CERs have also been issued by UNFCCC CDM Executive Board for 5 MW Solar PV PowerProject at Dadri.
Further registration of new projects 250 MW Solar PV power project at Anantpur 260 MWSolar PV power project at Bhadla 250 MW Solar PV power project at Mandsaur and 50 MW Windpower project at Rojmal in Verified Carbon Standard (VCS) program has been initiated andwill earn Voluntary Emission Reduction (VERs) in due course of time.
17.5 Ash Utilisation
During the year 2017-18 603.13 lakh tonnes of ash was generated and 53.45% viz. 322.36lakh tonnes of ash had been utilized for various productive purposes.
Important areas of ash utilization are cement & asbestos industry ready mixconcrete plants (RMC) road embankment brick making mine filling ash dyke raising &land development. We are also pursuing new initiatives for fly ash utilization like flyash based geo-polymer road transportation of fly ash from pithead power stations to flyash consumption centers setting up ash based light weight aggregate plant.
Pond ash from all stations of your Company is being issued free of cost to all users.Fly ash is also being issued free of cost to fly ash/ clay-fly ash bricks blocks andtiles manufacturers on priority basis over the other users from all coal based thermalpower stations. The funds collected from sale of ash is being maintained in the separateaccount and this fund is being utilized for development of infrastructure facilitiespromotion and facilitation activities to enhance ash utilization.
Your Company has an Ash Utilization 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 during2017-18 from your Company's 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)' andunder this program it is estimated that cumulative avoided is 45.3 million tonnes since CO21996 by sustained efficiency improvements.
CenPEEP is working for efficiency and reliability improvement in stations throughstrategic initiatives development and implementation of systems and introduction of newtechniques & practices. Critical efficiency parameter draft power consumptionefficiency improvement through overhauling are monitored. PI based real time programs anddashboards are in use for real time tracking of plant parameters. These programs alsoassist operating engineers in tracking the gaps in heat rate and auxiliary powerconsumption trending the degradation of equipment performance and taking correctivemeasures.
CenPEEP is instrumental in implementation of Energy Efficiency Management System (EEMS)consisting of periodic assessments field tests performance gap analysis deviations andupdation of action plans at all stations.
CenPEEP is also working towards reduction in specific water consumption and auxiliarypower consumption in coal and gas stations. A dedicated group conducts regular energyaudits to identify potential improvement areas and improvement actions. Further CenPEEPis also associated in carrying out water audit of stations and taking corrective actionsfor reduction in water consumption.
CenPEEP is also involved in structured and statutory energy audits which helps toidentify potential areas of improvement in APC reduction to be addressed within time boundimplementation schedule.
CenPEEP is actively involved in training and development of power professionals for theCompany and other utilities in the power sector in the areas of Boiler & AuxiliariesTurbine & Auxiliaries Cooling Towers RCM PdM technologies etc.
CenPEEP is working on internal benchmarking study of different type of the units sothat potential for improvements and improvement action plan can be finalized accordingly.
Your Company has taken EPRI membership in the areas of Boiler life & Availabilityimprovement Steam Turbine-Generators & Aux. system and Combustion & Coal Qualityimpacts to increase the knowledge expertise of the Company and undertake collaborativeresearch projects for improving efficiency and reliability of units.
CenPEEP coordinated implementation of Perform Achieve & Trade (PAT) scheme underPrime Minister's National Mission on Enhanced Energy Efficiency
(NMEEE) in your Company's coal & gas plants. As per notification Company's coaland gas stations exceeded the Net Heat Rate improvement targets and earned net 170653EScerts (Energy saving certificates) in PAT-1 cycle. Your Company participated in EScertstrading & purchased required EScerts. Subsequent to the trading your Company ishaving 161759 EScerts that will be used for PAT II cycle.
Performance & Guarantee tests are being coordinated by CenPEEP which includesapproval of procedure conducting test & its evaluation.
CenPEEP is also associated in Technical due diligence of Stressed Power Plants of thecountry.
Your Company has assigned 1% of PAT for R&D activities. Company has focused itsresearch efforts to address the major concerns of the sector as well as the futuretechnology requirements of the sector. In this effort Company has established NTPC EnergyTechnology Research Alliance (NETRA) as state-of-the-art center for research technologydevelopment and scientific services in the domain of electric power to enable seamlesswork flow right from concept to commissioning. The focus areas of NETRA are - EfficiencyImprovement & Cost Reduction; New & Renewable Energy; Climate Change &Environmental protection which includes water conservation Ash utilization & WasteManagement. NETRA also provides Advanced Scientific Services to its stations and otherutilities in the area of oil/water chemistry environment electrical Rotor dynamics etcfor efficient performances.
Research Advisory Council (RAC) of NETRA comprising of eminent scientists and expertsfrom India and abroad is in place to steer research direction. Padma Bhushan Dr. V.K.Saraswat former Secretary DRDO and member of NITI Aayog is the Chairman of RAC.
Scientific Advisory Council (SAC) chaired by Director (Tech.) and Director (Operation)with Regional Executive Directors ED (Engg.) ED (OS) and ED (NETRA) as its memberprovides directions for undertaking specific applied research projects aimed to developtechniques in power plant for efficient reliable and environment friendly operation withemphasis on reducing cost of generation.
Initiatives are taken to develop technologies for reducing forced outages installingintelligent online monitoring of critical components understanding the likely damages dueto corrosion and providing appropriate solutions etc. Effort is being made for reducingcost of generation by either increasing the overhaul cycle or reducing overhaul durationthrough correct and proper health assessment of critical components developing diagnostictools and ensuring environmental & safety compliances. The prime thrust is towardsclean and economic power generation. Patents have been filed in the areas of climatechange waste management etc.
NETRA has collaborations with National Institutes like IIT's IISc-Bangalore C-DACNML CSIR labs IOCL R&D CPRI CINFR CBRI Roorkee and Geological Survey of Indiaetc. to promote research in the field of CFD Flow batteries Renewable environmentwater chemistry ash utilization process development etc.
NETRA also has collaborations with international institutions such as NETL-USA CurtinUniversity-Australia; Newcastle University-Australia VGB-Germany DLR / ISE-Germany.NETRA laboratories are ISO 17025 accredited and provide high end scientific services toall your Companys' stations as well as many other utilities. NETRA NDT laboratory is alsorecognized as Remnant Life Assessment Organization under the Boiler BoardRegulations1950.
Phase-II of NETRA infrastructure is under construction with approx 21000 sq m floorarea and is expected to be completed by 2018. Phase II will have 30 laboratoriesworkshop pilot plant bay and an auditorium with seating capacity of 400 persons.
The details of activities undertaken by NETRA are given in Annex-III.
19. IMPLEMENTATION OF OFFICIAL LANGUAGE
Your Company took several initiatives for the progressive use of Hindi in the day today official work and implementation of Official Language policy of the Union of India inyour Company. The compliance of Official Language policy in our projects and regionalheadquarters was inspected and need based suggestions were given to the respective Headsof offices in this regard.
Quarterly meetings of Official Language Implementation Committee were held in whichextensive discussions took place on the use of Hindi and the ways and means to bring aboutfurther improvements.
Hindi Divas was celebrated on 14th September 2017 and Hindi Fortnight wasorganized from 01-15 September 2017 at the Corporate Center as well as regionalheadquarters and projects/stations to create awareness among the employees associates andtheir family members. Vidyut Swar our biannual Hindi magazine was published (in digitizedform) to promote creative writing in Hindi. Annual conference of Hindi Officers wasorganized to review the progress of Rajbhasha in the Company.
Employees were motivated to use Hindi in official work by organizing Hindi workshopsUnicode Hindi Computer Training along with Hindi e-tools and popularization of Hindiincentive schemes. Hindi webpage was updated with important information of Rajbhasha foremployees.
The second sub-committee of Parliament on official Language had inspected our units;reviewed the progress of Rajbhasha implementation and appreciated our efforts.
Your Company's website also has a facility of operating in a bilingual form in Hindias 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. The Vigilance set upin your Company consists of Vigilance Executives in Corporate Center and Projects. InProjects the Vigilance Executives report to the Project Head in administrative mattersbut in functional matters they report to Chief Vigilance Officer.
Your Companys' Corporate Vigilance Department consists of four Cells as under :
Vigilance Investigation and Processing Cell
Departmental Proceedings Cell
Technical Examination Cell
These cells deal with various facets of vigilance mechanism. The vigilance works ofeach region namely ER-I ER-II WR-I WR-II NR NCR SR and Hydro Region have beenseparately assigned to one Vigilance Officer at Corporate Center (Regional VigilanceExecutive) for speedier disposal of vigilance cases. Senior officials of VigilanceDepartment comprising ED (Vigilance) Regional Vigilance Executives and Head of DPC/MISCell meet regularly to discuss common issues having greater importance so as to ensureuniform working in all Regions. This facilitates Transparency efficiency andeffectiveness of Vigilance functionaries by making use of collective knowledge experienceand wisdom of Vigilance Executives breaking compartmentalization and abridging theirstrengths & weaknesses.
During 2017-18 91 complaints were investigated by Vigilance department out of which55 complaints were carried to a logical conclusion and appropriate disciplinary action hasbeen initiated wherever necessary. The remaining 36 complaints were under various stagesof investigation as on 31.03.2018.
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 Monitor 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.
20.4 Vigilance Awareness Week and Workshops
During 2017-18 Vigilance Awareness Week was observed during the period October 302017 to November 4 2017 in all projects and stations/ establishments of your Company. Thefocus of Vigilance Awareness Week of 2017-18 was "My vision corruption freeIndia". In line with this Vision Vigilance Awareness Week commenced with takingIntegrity pledge by employees on October 30th 2017 at 11.00 Hrs acrossdifferent locations administered by respective Head of Projects/Regions and Senior mostED at Corporate Center. During the week messages of Honourable President of IndiaHonourable Vice President of India Central Vigilance Commission & CMD of your Companywere read out to the employees.
To encourage and emphasize upon the theme of vigilance awareness week the messageswere also uploaded on the Company's Intranet. The activities mainly focused on the themeof enhancing public participation in promoting integrity and eradicating corruption.Activities were accordingly organized at Projects/Stations/Inspection & CommercialOffices/ Regional Headquarters and Corporate Center. Among the outreach activities variousinteractive events were held in schools & colleges eliciting active response andparticipation from the students. Integrity clubs have also been set up in various schoolsrunning in your Company Townships. Among other activities advertisements on the theme ofVigilance Awareness Week were issued in leading newspapers 02 at Delhi and 01 eachat Varanasi Dehradun Lucknow Patna Bhubaneshwar Raipur Hyderabad and Mumbairequesting the public to take pledge on the commission's website. Apart from these GramSabhas were organized in rural & semi-rural areas with various awareness programmelike educational film and Nukkad Natak on anti-corruption activities while publicseminars/ workshops were held in the urban areas.
During the week a lecture cum interactive session by CVC was organized on 31stOct 2017 at New Delhi for your Company Management Team. The function was attended by CMDCVO Directors and around 100 senior executives of your Company. An e-magazine inpictorial format has also been released by Mumbai Region of your Company capturingvarious events/ activities during the week. At Varanasi about 150 numbers of banners werefixed at different locations of the city including airport and different Ghats. Bannerswere also displayed during the Ganga Aarti in the evening. Walkathon were organized byinvolving different local schools Traffic Police and Heritage Hospital Varanasi besidesconducting events (debates quiz essay competition etc.) in 222 schools & 96colleges.
For your Company employees at Projects and Regional Headquarters differentcompetitions like Essay & Slogan competitions debate painting competitions were alsoorganized across whole Company. Besides for Stakeholders and Business partners vendormeet was organized at all your Company stations.
21. REDRESSAL OF PUBLIC GRIEVANCES
Your Company is committed for resolution of public grievance in efficient and timebound manner. ED (Human Resources) has been designated as Director (Grievance) tofacilitate earliest resolution of public grievances received from President SecretariatPrime Minister's 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 its website for access to all citizens of India and has designated aCentral Public Information Officer (CPIO) an Appellate Authority and APIOs at all sitesand offices of the Company.
During 2017-18 1550 applications were received under the RTI Act 2005 out of which1475 applications were replied to till 31.03.2018.
23. USING INFORMATION AND COMMUNICATION TECHNOLOGY FOR PRODUCTIVITY ENHANCEMENT
The Information Technology in your Company is not only a service provider but alsobeing used as a key business driver. Most of the business processes in the Company havebeen IT enabled. Since 2008 your Company has implemented Enterprise Resource Planning(ERP) application to integrate all its business functions to improve informationavailability transparency and decision making. PI data system has been implemented tocapture display and analyze the plant performance parameters on real time basis which ishelping the operation and maintenance of our power plants. Non-ERP web based applicationshave been developed in balance areas such as Engineering Drawings approval QualityControl Management Hospital Management Labour Management Transit Camp Management RTISecurity Control etc.
Your Companys' plants and Offices across India are connected to Corporate Office andmain Data-Center (DC) through 2x12 mbps MPLS links to facilitate seamless communication.The DC and DR (Disaster Recovery) site is connected with 156 mbps MPLS links for databackup. The progress of ongoing projects and issues of the running power stations arediscussed regularly over high definition Video Conferencing system at Project MonitoringCenter of Corporate Office.
To further leverage IT in your Company an IT Strategy has been finalized. The ITStrategy aims to achieve 100% Paperless Office Data Analytics for decision makinginduction of new technology such as IIOT AI Machine learning etc. over next 2 years.
Some of the highlights of the progress in IT/ERP area during the year 2017-18 are asfollows:
Project PRADIP (PRoactive Digital Initiative to become Paperless) Your Companyhas taken initiative for 100% Paperless Office. The Project PRADIP aims to create acentral data repository for your Company with best record management and searchablefeatures. All the approval processes shall be made paperless. The e-Office module shallenable employees to do day-to-day office works in digital mode. It will also providecollaboration and knowledge management platforms. The PO for the project was issued inNov'2017 and work for the same is in full swing.
ERP A number of new modules were introduced in ERP. Coal sale EnergyBilling for Solar and Wind energy OLA Travel Booking etc. were added in 2017-18. GST wasimplemented in line with GOI guideline. e-procurement platform was shifted from SRM toGePNIC.
e-Waste disposal Firm guidelines were issued for disposal of e-Waste inyour Company. As of 31.03.18 all Stations Plants and Offices of your Company weredeclared e-Waste free after successful disposal of e-Wastes.
Mail and Messaging Services The mail and messaging services wereupgraded. All users were provided with min. 5GB of mail box size. DR set up for mailingsystem was commissioned.
Security No major security breach was observed during the year 2017-18. A24x7 Security Operation Center(SOC) is in operation where round the clock monitoring ofall external and internal data traffic is being analyzed with latest tools monitoredthrough SOC and latest threat management tools are being applied to prevent anycyber-attack or data theft. Timely communication being sent to all users based on threatperception. The IT security Audit for plants have been completed. ISO 27001 certificationwas obtained for DR set up.
Mobile Apps SAMVAAD mobile app was launched to provide all Corporate newsto employees instantaneously. The SAMPARK mobile app gives information on all your Companyemployees.
CLIMS (Contract Labour Information Management System) Biometric labourattendance system was introduced in your Company plants. This is facilitating not only forlabour payments but also in calculating the PF and other retrenchment benefits to labourbesides improving security.
24. GROUP COMPANIES : SUBSIDIARIES AND JOINT VENTURES
Your Company has currently 6 subsidiary companies (including Nabinagar Power GeneratingCompany Private Limited which has become a wholly-owned subsidiary company uponacquisition of stake of BSPGCL in NPGCL) and 18 joint venture companies for undertakingspecific business activities.
Besides 18 joint venture companies detail of which is elsewhere in this ReportNTPC-SCCL Global Ventures Private Limited is being wound up voluntarily. In view of lackof suitable commercially viable opportunities for thermal coal your Company has decidedto exit from International Coal Ventures Private Limited.
A statement containing the salient feature of the financial statement of your Company'sSubsidiaries Associate Companies and Joint Ventures as per first proviso of section129(3) of the Companies Act 2013 is included in the consolidated financial statements.
25. INFORMATION PURSUANT TO STATUTORY AND OTHER REQUIREMENTS
Information required to be furnished as per the Companies Act 2013 and as per SEBI(Listing Obligations & Disclosure Requirements) Regulations 2015 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 2017-18 were (i) M/s T RChadha & Co LLP Chartered Accountants New Delhi (ii) M/s PSD & AssociatesChartered Accountants New Delhi (iii) M/s Sagar & Associates Chartered AccountantsHyderabad (iv) M/s Kalani & Co. Chartered Accountants Jaipur (v) M/s P A &Associates Chartered Accountants Bhubaneshwar (vi) M/s S.K. Kapoor & Co. CharteredAccountants Kanpur and (vii) M/s B M Chatrath & Co LLP Chartered AccountantsKolkata.
The appointment of the Statutory Auditors for the financial year 2018-19 has been madeby the Comptroller & Auditor General of India.
25.2 Management comments on Statutory Auditors' Report
The Statutory Auditors of the Company have given an un-qualified report on the accountsof the Company for the financial year 2017-18. However they have drawn attention underEmphasis of Matter' to Note No. 36 (a) & (b) regarding billing & recognitionof sales on provisional basis and measurement of GCV of coal on as received' basismeasured on wagon top at the unloading point in respect of most of the stations pendingdisposal of petition by CERC and ratification by Hon'ble Delhi High Court and relatedmatters as mentioned in the said note. They have also drawn attention under Emphasisof Matter' to Note No. 47 in respect of a Company's project where the order of NGT hasbeen stayed by the Hon'ble 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)
The Comptroller & Auditor General of India through letter dated 29.06.2018 hasgiven NIL' Comments on the Standalone Financial Statements of your Company for theyear ended 31st March 2018 after conducting supplementary audit under Section143 (6) (a) of the Companies Act 2013.
The Comptroller & Auditor General of India through letter dated 29.06.2018 hasalso given NIL' Comments on the Consolidated Financial Statements of your Companyfor the year ended 31st March 2018 after conducting supplementary audit underSection 143 (6) (a) read with Section 129 (4) of the Companies Act 2013.
As advised by the Office of the Comptroller & Auditor General of India (C&AG)the comments of C&AG for both the stand-alone and consolidated financial statements ofyour Company for the year ended 31st March 2018 are being placed with thereport of Statutory Auditors of your 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 Cost Accountants appointed under Section 148(3) of the Companies Act 2013for the financial year 2017-18 were (i) M/s R M Bansal & Co. Cost AccountantsKanpur (ii) M/s ABK & Associates Cost Accountants Mumbai (iii) Dhananjay V Joshi& Associates Cost Accountants Pune (iv) M/s DGM & Associates Cost AccountantsKolkata (v) M/s Tanmaya S Pradhan & Co. Cost Accountants Sambalpur (vi) M/sK L Jaisingh & Co. Cost Accountants Noida and (vii) M/s Niran & Co. CostAccountants Bhubaneshwar.
The due date for filing consolidated Cost Audit Report in XBRL format for the financialyear ended March 31 2017 was September 30 2017 and the consolidated Cost Audit Reportfor your Company was filed with the Central Government on August 25 2017.
The Cost Audit Report for the financial year ended March 31 2018 shall be filed withinthe prescribed time period under the Companies (Cost Records & Audit) Rules 2014.
25.5 Exchange Risk Management
Your 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.
During financial year 2017-18 your Company has not entered into any derivativecontract in respect of foreign currency loans exposure.
25.6 Performance Evaluation of the Directors and the Board
Ministry of Corporate Affairs (MCA) through General Circular dated 5thJune 2015 has exempted Government Companies from the provisions of Section 178 (2) ofthe Companies Act 2013 which requires performance evaluation of every director by theNomination & Remuneration Committee. The aforesaid circular of MCA further exemptedlisted Govt. Companies from provisions of Section 134 (3) (p) of the Companies Act 2013which requires mentioning the manner of formal evaluation of its own performance by theBoard and that of its Committees and individual Director in Board's Report if directorsare evaluated by the Ministry or Department of the Central Government which isadministratively in charge of the company or as the case may be the State Government asper its own evaluation methodology.
Now MCA through Notification dated 05.07.2017 has amended Schedule IV to theCompanies Act 2013 with respect to performance evaluation of directors of the GovernmentCompanies that in case of matters of performance evaluation are specified by the concernedMinistries or Departments of the Central Government or as the case may be the StateGovernments and such requirements are complied with by the Government companies suchprovisions of Schedule IV are exempt for the Government Companies. In this regard Deptt.of Public Enterprises (DPE) has already laid down a mechanism for performance appraisal ofall functional directors. Your Company enters into Memorandum of Understanding (MOU) withGovernment of India each year demarcating key performance parameters for the Company. Theperformance of the Company and Board of Directors are evaluated by the Department ofPublic Enterprises vis--vis MOU entered into with the Government of India.
Similar exemption has been requested from SEBI under the SEBI LODR which is underconsideration.
25.7 Secretarial Audit
The Board has appointed M/s J.K. Gupta & Associates Company Secretaries toconduct Secretarial Audit for the financial year 2017-18. The Secretarial Audit Report forthe financial year ended March 31 2018 is annexed here with marked as Annexure XI to thisReport.
The Managements' Comments on Secretarial Audit
Report are as under:
|Observations ||Management's Comments |
|Compliance of Regulation 17(10) & 25(4) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015 the Company has not carried out the performance evaluation of the Directors. ||Refer Para 25.6 |
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 Company's 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 arm'slength basis except with Utility Powertech Limited which are covered under the disclosureof Related Party Transactions in Form AOC-2 (Annexure- IX) as required under Section134(3) (h) of the Companies Act 2013. They were intended to further enhance yourCompany's interests.
Web-links for Policy on Materiality of Related Party Transactions and also on Dealingwith Related Party Transactions have 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 ortribunals impacting the going concern status and company's operations in future: NIL 25.10Adequacy of internal financial controls with reference to the financial reporting:The Company has in place adequate internal financial controls with reference to financialreporting. During the year such controls were tested and no reportable material weaknessin 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 for FY 2017-18.
Your Company had granted loans to its subsidiary namely Kanti Bijlee Utpadan NigamLimited (KBUNL) and Joint Venture Company namely National High Power Test LaboratoryPrivate Limited (NHPTL) during 2017-18 covered under Section 185 and 186 of the CompaniesAct 2013. The details of loans granted to KBUNL and NHPTL is given in Note 60 ofStandalone Financial Statements for 2017-18.
25.12 Prevention Prohibition and Redressal of Sexual Harassment of Women atWorkplace
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 of your Company. Every threeyears the constitution of these committees is changed and new members are nominated.
No complaint of sexual harassment was received by the ICC during the year 2017-18.
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 MSEs ownedby SC/ST entrepreneurs) during the year 2017-18 was Rs 1160.62* crore which was 28.69% oftotal annual procurement of Rs 4045.64* crore against target of 20% of total procurementmade by your Company.
The total procurement made from MSEs owned by SC/ ST entrepreneurs during the year2017-18 was Rs 17.09* crore which was 0.42% against the target of 4% of total procurementvalue.
*It excludes Primary fuel Secondary fuel Steel & Cement the Project procurementincluding R&M packages and procurement from OEM OES & PAC sources.
Your Company orgainsed 21 vendor development programmes for MSEs across the Companyout of which 6 vendor development programmes were exclusively organized for SC/ST MSEentrepreneurs. Annual procurement plan for 2018-19 from MSEs is uploaded onwww.ntpc.co.in.
25.14 Particulars of Employees
AsperprovisionsofSection197(12)oftheCompaniesAct 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 ofCorporate Affairs Government Companies are exempted from complying with provisions ofSection 197 of the Companies Act 2013. Therefore such particulars have not been includedas part of Directors' 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 Material'Subsidiaries have been provided in the Report on Corporate Governance which forms part ofthe Directors Report at Annex-II.
25.17 Para on development of risk management policy including therein the elementsof risks are given elsewhere in the Annual Report.
25.18 The Company has complied with the applicable Secretarial Standards.
25.19 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 equity shares with differential rights as to dividend voting or otherwise.
2. Issue of shares (including sweat equity shares) to employees of the Company underany scheme.
25.20 The particulars of annexures forming part of this report areas 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 Produced and Utilized ||VIII |
|Disclosure of Related Party Transactions in Form AOC-2 ||IX |
|Business Responsibility Report for the year 2017-18 ||X |
|Secretarial Audit Report in Form MR-3 ||XI |
26. BOARD OF DIRECTORS & KEY MANAGERIAL PERSONNEL
On attaining the age of superannuation Shri A.K. Jha ceased to be Director (Technical)of the Company w.e.f. 31.07.2017 Shri S.C. Pandey ceased to be Director (Projects) of theCompany w.e.f. 31.08.2017 and Shri K.K. Sharma ceased to be Director (Operations)of the Company w.e.f. 31.10.2017.
Shri Rajesh Jain Independent Director tendered his resignation from the Directorshipw.e.f. 10.10.2017. Shri M.P. Singh Shri P.K. Deb Shri Shashi Shekhar ShriSubhash Joshi and Shri Vinod Kumar were appointed as Independent Directors of the Companyw.e.f. 24.10.2017.
Dr. Pradeep Kumar JS&FA Ministry of Power ceased to be Government NomineeDirector w.e.f. 31.07.2017.
Shri Susanta Kumar Roy Executive Director had taken over the charge as Director(Projects) of the Company w.e.f. 19.01.2018.
Shri Prasant Kumar Mohapatra Executive Director had taken over the charge as Director(Technical) of the Company w.e.f. 31.01.2018.
Shri Prakash Tiwari Executive Director had taken over the charge as Director(Operations) of the Company w.e.f. 31.01.2018.
Shri K. Sreekant Director (Finance) Power Grid Corporation of India Limited had beenentrusted with the additional charge of the post of Director (Finance) of your Companyw.e.f. 19.03.2018 for a period of six months or till the appointment of a regularincumbent or until further orders of the Ministry of Power whichever is the earliest.
Shri Sudhir Arya Executive Director was appointed as the Chief Financial Officer ofthe Company w.e.f. 29.12.2017.
Shri Vivek Kumar Dewangan JS&FA Ministry of Power had been appointed asGovernment Nominee Director w.e.f. 28.04.2018.
Shri Aniruddha Kumar JS Ministry of Power ceased to be Govt. Nominee Director w.e.f.30.07.2018.
Dr. K. P. Kylasanatha Pillay and Dr. Bhim Singh were appointed as Independent Directorw.e.f. 30.07.2018. Shri K. P. Gupta ceased to be ED (Finance & Law) and (CompanySecretary) w.e.f. 31.07.2018 consequent upon his superannuation.
Ms. Nandini Sarkar General Manager was appointed as Company Secretary & ComplianceOfficer w.e.f. 01.08.2018.
Ms. Archana Agrawal JS (Thermal) Ministry of Power had been appointed as GovernmentNominee Director w.e.f. 07.08.2018. The Board wishes to place on record its deepappreciation for the valuable services rendered by Shri A.K. Jha Shri S.C. Pandey ShriK.K. Sharma Shri Rajesh Jain Dr. Pradeep Kumar Shri Aniruddha Kumar and Shri K. P.Gupta during their association with the Company. In accordance with Section 152 of theCompanies Act 2013 and the provisions of the Articles of Association of the Company ShriS. Roy Director shall retire by rotation at the Annual General Meeting of your Companyand being eligible offers himself 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 2017-18 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 AnnualAccounts on a going concern basis; 5. the Directors had laid down internal financialcontrols to be followed by the Company and that such internal financial controls areadequate and were operating effectively; and 6. the Directors had devised proper systemsto ensure compliance with the provisions of all applicable laws and that such systems wereadequate 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 Minister'sOffice 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 || |
|Date: 8th August 2018 || |