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NTPC Ltd.

BSE: 532555 Sector: Infrastructure
NSE: NTPC ISIN Code: INE733E01010
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VOLUME 333684
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P/E 8.84
Mkt Cap.(Rs cr) 142,541
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OPEN 151.00
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VOLUME 333684
52-Week high 166.30
52-Week low 107.80
P/E 8.84
Mkt Cap.(Rs cr) 142,541
Buy Price 0.00
Buy Qty 0.00
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NTPC Ltd. (NTPC) - Director Report

Company director report

Dear Members

Your Directors are pleased to present the 45th Annual Report on the businessand operations of the Company along with the Audited Standalone and Consolidated FinancialStatements for the year ended March 31 2021 and Auditors' Report thereon on behalf of theBoard of Directors.

Financial Year 2020-21 had been yet another year of achievements for your Company.

Major highlights of your Company for the financial year 202021 are:

> Your Company topped the 300 BUs generation (on Group basis) mark for the 2ndtime and registered highest group generation since inception. Further your Companyrecorded highest ever single day gross generation of 1192.41 MUs (Group) on March 19 2021and 990.65 MUs (Standalone) on March 20 2021.

> Plant Load Factor (PLF) of 66.00% as against all India PLF of 54.56% maintaining aspread of over 11%. 4 coal stations of your Company were among the top 10 performingstations in the country in terms of PLF. It included Korba with 93.66% Sipat with 90.12%Rihand with 89.04% and Vindhyachal with 88.73% PLF.

> Your Company has achieved capacity addition of 4160 MW and commercial capacityaddition of 3824 MW including 904 MW capacity from renewable and hydro Projects. YourCompany (Group) is now a 65.80 GW company.

> Your Company raised a loan in JPY 50 Billion for funding FGD and RE projects at avery competitive rate. Further through proactive refinancing the weighted average costof borrowings stood at 6.24% which is one of the best in the market.

> Group Capital Expenditure (CAPEX) including CAPEX of JV/ subsidiaries of yourCompany for the year 2020-21 was ' 33981.64 crore and on stand-alone basis was '20685.99 crore on cash basis.

> Revenue from operations was ' 99206.72 crore and total revenue was ' 103552.71crore. Net Profit after Tax (PAT) was ' 13769.52 crore.

> Dividend of ' 6.15 per share comprising interim dividend of ' 3.00 per equityshare paid in Feb. 2021 and recommended final dividend of ' 3.15 per equity share for theyear 2020-21 subject to your approval in the upcoming Annual General Meeting.

> Cash contribution of ' 6678.82 crore to Government of India's exchequer throughdividend buy back tax and income tax in the financial year 2020-21.

> Planted approx. 10.45 lakh trees during 2020-21 to mitigate the GHG emissionsarising out of plant operations thereby bringing total to about 3.60 crore planted treestill end of 31.3.2021.

> Your Company has been conferred "Excellence in the prestigious CII-ITCsustainability award- 2020 in "Corporate Social Responsibility" category.

> Your Company secured 5th position (Utilities segment) in Forbes -World's Best Employer list - 2020 and 1st in PSUs (India). The overall rank is261st.

> Your Company has been selected as one of the Best Workplaces in Asia 2020 underthe Large Category by Great Places to Work. Your Company also received "RoleModel" award in HR domain from CII.

> Your Company has been conferred with the prestigious FICCI Jury CommendationCertificate under the Category "Women Empowerment". The award has been receivedfor your Company's flagship "Girl Empowerment Mission" Project.

> In its endeavour towards more sustainable power generation your Company hasstarted using agro- residue- based pellets.

> Your Company has saved 3.3 crore paper which is equivalent to 4000 fully growntrees annually by going paperless. Project "PRADIP" has been implemented fordigitization of documents and paperless processes.

You will appreciate the fact that the company recorded growth and excellent performancedespite numerous challenges before the sector like Environmental concernsNon-availability of Gas strict emission norms etc.

Further during the COVID-19 crisis your Company has worked (24X7) to provideuninterrupted power supplies every day to millions of Indians. As a responsible corporatecitizen it is our duty to follow the directives issued by Government of India (GoI) fromtime to time to fight against COVID-19 pandemic.

Despite all the challenges Team NTPC worked tirelessly at its Power Plants to keep upthe generation and meet the power demand of the nation.

1. FINANCIAL RESULTS (STANDALONE)

Particulars 2020-21 2019-20
' Crore US $ Mn* ' Crore US $ Mn*
Income
Revenue from operations (including energy sales sale of energy through trading consultancy fee etc.) 99206.72 13395.45 97700.39 13192.06
Other income 4345.99 586.82 2778.02 375.10
Total income 103552.71 13982.27 100478.41 13567.16
Expenses
Fuel cost 52849.64 7136.06 54241.82 7324.04
Electricity purchased for trading 3031.25 409.30 2776.44 374.89
Employee benefits expense 4942.19 667.32 4925.60 665.08
Finance costs 7459.03 1007.16 6781.97 915.74
Depreciation and amortisation expense 10411.80 1405.86 8622.85 1164.31
Other expenses 9580.28 1293.58 8663.81 1169.84
Total expenses 88274.19 11919.28 86012.49 11613.90
Profit before exceptional items tax and regulatory deferral account balances 15278.52 2062.99 14465.92 1953.27
Exceptional Items 1363.00 184.04

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Profit before tax and regulatory deferral account balances 13915.52 1878.95 14465.92 1953.27
Tax expense 1925.39 259.98 9181.95 1239.80
Profit for the year before regulatory deferral account balances 11990.13 1618.97 5283.97 713.47
Net movement in regulatory deferral account balances (net of tax) 1779.39 240.26 4828.84 652.02
Profit for the year 13769.52 1859.23 10112.81 1365.49
Appropriations 2020-21 2019-20
' Crore US $ Mn* ' Crore US $ Mn*
Transfer to general reserve 6500.00 877.67 6500.00 877.67
Dividend paid 5531.06 746.83 2968.37 400.81
Tax on dividend paid - - 607.80 82.07

*1US $= ' 74.06 as on March 31 2021

2. FORMATION OF NTPC EDMC WASTE SOLUTIONS PRIVATE LIMITED AND NTPC RENEWABLE ENERGYLIMITED

In order to develop & operate state of art/modern integrated waste management andenergy generation facility using municipal solid waste your Company has incorporated a JVCompany with 74:26 shareholding with East Delhi Municipal Corporation (EDMC) on 1.6.2020.

Further NTPC Renewable Energy Limited (NTPC RE) a wholly owned subsidiary of yourCompany was incorporated on 7.10.2020 with a target to accelerate the RE capacity additionplan. Thus your Company is taking steps to make its energy portfolio greener by addingsignificant capacities of Renewable Energy (RE) Sources by 2032.

3. BUY BACK OF SHARE

The Board of Directors of your Company had approved buyback of equity shares in itsmeeting held on 2.11.2020. Accordingly your Company has bought back 197891146 equityshares of the Company for an aggregate amount of ' 2275.75 crore being 2% of the totalpaid up equity share capital at ' 115.00 per equity share.

4. DIVIDEND

Interim and Final Dividend:

Your Company has declared and paid interim dividend of ' 3.00 per equity share inFebruary 2021 and the Board of Director of your Company has recommended a final dividendof ' 3.15 per equity share for the financial year (FY) 2020-21. Total dividend for FY2020-21 will be ' 6.15 per equity share. This will be the highest ever dividend per sharein the history of Company.

The dividend pay-out ratio during the last five year was as under:

S.No. Financial Year Dividend Pay-out Ratio
1 2016-2017 42.00%
2 2017-2018 40.82%
3 2018-2019 46.18%
4 2019-2020 30.82%
5 2020-2021 43.31%

The total dividend payout ratio for FY 2020-21 will be 43.31%. The final dividend shallbe paid after your approval at the upcoming Annual General Meeting.

The dividend has been recommended in accordance with your Company's DividendDistribution Policy. Further as per Regulation 43A of the Securities and Exchange Boardof India (Listing Obligations and Disclosure Requirements) Regulations 2015 ("SEBIListing Regulations") the top 1.000 listed companies shall formulate a dividenddistribution policy. Accordingly the policy was adopted to set out the parameters andcircumstance that will be taken into account by the Board in determining the distributionof dividend to its shareholders and/ or retained profits earned by the Company. The policyis also available on the Company's website https://www.ntpc.co.in/sites/default/files/downloads/ DividendDistributionPolicyofNTPCLimited.pdf.

5. OPERATIONAL PERFORMANCE

During the year the power stations of your Company generated 270.91 bUs (314.07 BUsincluding JVs & Subsidiaries) of electricity. This was 19.60% (22.73% includinggeneration by JVs and Subsidiaries) of the total power generated in India. Previous years'generation was 259.62 BUs by your Company (290.19 BUs including JVs & Subsidiaries).

The total generation contributed by coal stations was 260.43 BUs during the financialyear 2020-21 against generation of 249.71 BUs in financial year 2019-20. Generation fromcoal-based units could have been still higher but due to less generation schedule therewas opportunity loss of 94.12 BUs. The coal-based stations operated at an average PlantLoad Factor (PLF) of 66.00% (All India Coal PLF was 54.56%) and average AvailabilityFactor (DC) of 91.43% during the year.

Korba Thermal Power Station with a PLF of 93.66% was ranked 2nd in thecountry and 8 Stations (including JVs) of your Company were in the top 25 in the countryin terms of PLF. Five coal based stations out of twenty four commercial Stations achievedPLF of more than 85%.

The gas stations having a capacity of 4017 MW achieved annual generation of 5.7 BUs ata PLF of 16.19 % as against 4.97 BUs last year. Opportunity loss due to less generationschedule on Gas was at 28.29 BUs. Generation contributed by Koldam Hydro Power Station was3.22 BUs against 3.45 BUs achieved in last year. Less generation was due to low waterinflow. Generation contributed by RE Projects/stations (Solar wind small hydro) of yourCompany was 1.56 BUs.

6. COMMERCIAL PERFORMANCE

6.1 Billing and Realisation

Your Company has realized 100% of its current bills raised for energy supplied in2020-21. Your Company has also successfully achieved the target for realization of duesset by Government of India (GoI) for energy supplied in 202021. Most of the beneficiarieshave made timely payments and availed 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 (TPA). Apart from the LCs payment issecured by the Tri-Partite Agreements (TPAs) signed amongst the State GovernmentsGovernment of India (GoI) and Reserve Bank of India (RBI). As per the TPAs any default inpayment by the State owned Discoms can be recovered directly from the account of therespective State Governments in association 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 the RBI these TPAshave been extended for a further period of 10 to 15 years. As of now 29 out of total 31States/UTs have signed the TPAs extension documents. The signing of TPAs extension byremaining States is being taken up.

6.2 Rebate Scheme for realization of dues

In order to encourage early and full realization of dues your Company issued‘Rebate Scheme' for the year 2020-21. 1.65% rebate was allowed for amounts creditedto your Company's accounts for any payments against provisional bills and advance paymentsmade on 1st day of the Billing Month and graded gradually to 1.590% till 5thday of the billing month. 1.575% rebate was allowed for amounts credited to your Company'saccounts for any payments made on 6th day and graded gradually to 1.5% till 11thday of the billing month. For amounts credited to your Company accounts from 12thday of the Billing Month till 18th day of the month next to Billing Monthgraded rebate was offered from 1.485% to 0.020%.

6.3 Commercial Capacity

Commercial Capacity totaling to 3824 MW of your Company including those of JV's andsubsidiary companies was added during the year 2020-21:

Project/ Unit Capacity (MW) COD*
1.Owned by your Company
(A) Coal Based Power Projects
Khargone Unit# 2 660 4-Apr-20
Lara Unit# 2 800 7-Nov-20
Gadarwara Unit#2 800 1-Mar-21
Total (A) 2260
(B) Renewable Projects
Auraiya Solar 7 10-Nov-20
Auraiya Solar 8 4-Dec-20
Auraiya Solar 5 20-Feb-21
Bilhaur Solar 140 18-Jan-21
Bilhaur Solar 70 28-Mar-21
Total (B) 230
Total (A+B)-I 2490
2. Under JVs & Subsidiaries
(A) Coal Based Power Projects
Meia Unit #2 (JV with UPRVUNL) 660 31-Jan-21
(B) Renewable Projects
Dhukwan SHP 24 5-May-20
Kasaragod Solar 50 31-Dec-20
(C) Hydro Projects
Kameng HEP Unit #1 150 17-Jun-20
Kameng HEP Unit #2 150 1-Jul-20
Kameng HEP Unit #3 150 22-Jan-21
Kameng HEP Unit #4 150 12-Feb-21
Total (A+B+C)-II 1334
Total Capacity declared commercial during 2020-21 (I)+(II) 3824

* COD- Commercial Operation Date

As on 31.3.2021 the Commercial Capacity of your Company stood at 51725 MW* (49695 MWas on 31.3.2020) and your Company Group's Commercial Capacity stood at 64490 MW (61126MW as on 31.3.2020):

Owned by your Company Capacity MW
Coal based projects 45750
Gas based projects 4017
Renewable Energy Projects 1158
Hydro Projects 800
Sub-total 51725
Joint Ventures & Subsidiaries
Coal based projects 7154
Gas based projects 2494
Renewable Energy Projects 192
Hydro Projects 2925
Sub-total 12765
Total 64490

*Talcher thermal 460 MW was decommissioned on 31.03.2021.

6.4 Tariff Regulations

Central Electricity Regulatory Commission (CERC) has issued the CERC (Terms andConditions of Tariff) Regulations 2019 on 7.3.2019 which are applicable for the period1.4.2019 to 31.3.2024. The tariff of electricity generated from various stations of yourCompany is in the process of determination by CERC based on station- specific petitionsfiled as per these Regulations for the above-mentioned period. Further CERC has alsoissued the First Amendment to Tariff Regulations 2019 regarding servicing of capital andoperational expenditure incurred on installation and operation of Emission Control Systemsthrough determination of supplementary capacity charges and supplementary energy charges.CERC has also issued Second Amendment to the Tariff Regulations 2019 regardingdetermination of transfer price of coal from captive coal mines by the generating company.

6.5 Security Constrained Economic Dispatch (SCED)

1. The mechanism of Security Constrained Economic Dispatch (SCED) is underimplementation on Pilot basis starting from 1.4.2019. This mechanism helps in optimizationof total schedule of the Inter State Generating Stations based on the variable costresulting in savings in cost of procurement for the Discoms.

2. Starting from 1.6.2020 this Pilot has been extended twice by CERC first till31.3.2021 and then again till 30.9.2021. During these periods the scope of the SCED hasbeen expanded to include the state regulated generating stations and the merchantgenerators based on their willingness to participate in the scheme.

3. SCED has resulted in cumulative savings of '1660 crore in generation cost from startof the SCED pilot in April 2019 up to March 2021 thereby resulting in increased saving inthe cost of power procurement of the Discoms.

4. The generating stations of your Company are participating in the SCED mechanismstarting from April 2019 and contributing in a significant way in reduction in powerpurchase cost of the Discoms.

6.6 Strengthening Customer Relationship

Customer Focus is one of the core values of your Company (ICOMIT). In line with thisyour Company has taken up several initiatives targeted towards the external Customers.Customer Relationship Management (CRM) and Customer Satisfaction Index (CSI) are some ofthe 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 other's best practices. Inthe financial year 2020-21 total 8 such programs have been conducted for the customers onthe 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 2020-21 18 participants from various customer organizations attendedtraining in 5 programs.

- Your Company has also put in place Customer Satisfaction Index (CSI) Survey schemeto gather customer's feedbacks through a survey and respond to their requirements. ThisCSI survey has been conducted in 2020-21 and the score falls under excellent category.

6.7 Power Trading in Power Exchange

In line with CERC (IEGC) (5th Amendment) Regulations 2017 a generatingcompany can sell the un-requisitioned surplus (URS) power based on consent of thebeneficiary states. The gains realized from the sale of URS are to be shared withbeneficiaries in the ratio of 50:50 subject to a cap of 7 paisa per kwh for thegenerators as per applicable provisions.

6.8 Real Time Market (RTM)

RTM has been implemented in the country since 1st June 2020 withparticipation on voluntary basis. The main objective of Real Time Market (RTM) is toprovide a market mechanism to the generating stations to sell their surplus power in themarket. This also provides an opportunity to the Discoms to buy power from the market tomeet their contingent requirements. For generators to sell their URS in the RTM noconsent is required from the beneficiaries. RTM is being implemented in the form of 48half-hourly auctions conducted during the delivery date and provides options to thegenerators and the Discoms to participate in the market through price sensitive bidding.The gain sharing principle remains same as that the URS sale in the Day Ahead Market(DAM).

Your Company has been participating in both the DAM and the RTM for selling URS powerin the Power Exchange through its trading arm NVVN. Besides selling the URS power it hasalso been selling any regulated power or merchant power also in the Power Exchanges. Inthe FY 2020-21 around 920 Million Units of power has been sold in the DAM and RTM inPower Exchanges. Corresponding gains for this sale has been shared with the beneficiariesas per the extant regulatory provisions.

6.9 Renewable Energy:

1. Following PPA / Power Usage Agreements have been signed:

a. Agreements for power under CPSU Scheme (1692 MW) has been tied up with Telangana.

b. PPA for 90 MW Anta Solar has been initialed with KSEBL.

c. PPA signed with GUVNL by NREL for 200 MW Solar PV plant.

d. PPA for 300 MW signed with TBEA Energy India Pvt. Ltd. and ABC Renewables PrivateLimited.

e. PSA for 100 MW signed on 5.1.2021 with Puduchery for Solar Power from TBEA EnergyIndia Pvt. Ltd.

f. PPA for Nokh 190 MW signed in developer mode with Rising Sun.

2. Following new units have been declared commissioned/ commercial:

a. Solar unit of Bilhaur 140 MW declared commercial on 18.1.2021.

b. Solar unit of Bilhaur 70 MW out of 85 MW declared commercial on 28.3.2021.

c. Solar unit of Auraiya 20 MW declared commercial on 20.2.2021

d. Developer mode unit of Ananthapuramu Solar (Ayana Power) 250 MW declared commercialon 8.3.2021.

e. Developer mode unit of Ananthapuramu Solar (Sprng Energy) 152 MW of total 250 MW gotcommissioned this year.

7. INSTALLED CAPACITY

During the year 2020-21 your Company added 4160 MW to its installed capacity(including those of JV & Subsidiary Companies) as per details given below:

Project/ Unit installed Capacity (MW)
Owned by your Company
(A) Coal based Power Projects
Lara Unit # 2 800
Gadarwara Unit #2 800
Tanda Unit #6 660
(B) Renewable Projects
Auraiya Solar 20
Bilhaur Solar 210
Total (A+B) 2490
Under Subsidiaries and Joint Ventures
(A) Coal Based Power Projects
Meja Unit #2 660
NPGCL Unit #2 660
(B) Hydro Projects
Kameng HEP Unit #3 150
Kameng HEP Unit #4 150
(B) Renewable Projects
Kasaragod Solar 50
Total by Subsidiaries and JVs 1670
Total Addition during FY 2020-21 4160

Further Talcher thermal (460 MW) Project of your Company was decommissioned on31.3.2021.

The total installed capacity of your Company Group as on 31.03.2021 has become 65810MW (62110 MW as on 31.3.2020) as tabulated below:

Project/Unit Installed Capacity MW
Owned by your Company
Coal based projects 46410
Gas based projects 4017
Renewable Energy Projects 1158
Hydro Projects 800
Sub-total 52385
Joint Ventures & Subsidiaries
Coal based projects 7814
Gas based projects 2494
Hydro 2925
Renewable Energy Projects 192
Sub-total 13425
Total 65810

8 CAPACITY ADDITION PROGRAMME

8.1 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 17989 MW including 8369MW being undertaken by Joint Venture and Subsidiary Companies are under implementation inIndia and abroad. Total Capacity under construction comprises of 12850 MW of Coal(Including 6240 MW being undertaken by Joint Venture and Subsidiary Companies) 2255 MWof Hydro (Including 1444 MW being undertaken by Subsidiary Companies) and 2884 MW ofRenewable projects (Including 685 MW being undertaken by Subsidiary Company).

The details of such projects as on 31.3.2021 are as under:

Ongoing Projects
NTPC Owned Projects/Units Capacity (MW)
I.A. Coal Based Projects
1. Barh-I Bihar (3x660MW) 1980
2. Darlipalli-I Odisha (2x800 MW) 800
3. North Karanpura Jharkhand (3x660 MW) 1980
4. Telangana Phase-I Telangana (2x800 MW) 1600
5. Barauni St.-II Bihar (2x250 MW) 250
Sub Total (A) 6610
I. B. Hydro Electric Power Projects (HEPP)
6. Tapovan VishnugadUttarakhand(4x130 MW) 520
7. Lata Tapovan Uttarakhand (3x57 MW)@ 171
8. Rammam Hydro West Bengal (3x40 MW) 120
Sub Total (B) 811
I. C Renewable Energy Projects
9. Ramagumdam Solar F AP 100
10. Simhadri Solar F AP 25
11. Kayamkulam Solar F Kerala 22
12.Kayamkulam Solar F Kerala 70
13. Jetsar Solar G Rajasthan 160
14. Rihand Solar G UP 20
15. Auraiya Solar F UP 20
16. CPSU-I: Shimbhoo Ka Burj Solar G 250
17. CPSU-I: Devikot Solar G Rajasthan 150
18. CPSU-I: Shimbhoo Ka Burj Solar G 300
19. CPSU-II: Nokhra Solar G Rajasthan 300
20. CPSU-II: Fatehgarh Solar G Rajasthan 296
21. CPSU-II: Navalakhapatti Solar G 230
22. CPSU-II: Devikot Solar G Rajasthan 90
23. CPSU-I: Gandhar Solar G Rajasthan 20
24. Kawas Solar G/F 56
25. Anta Solar G 90
26. Bilhaur Solar Uttar Pardesh 15
Sub Total (C) 2214
Total I (A)+(B)+(C) 9635
II Projects under JVs & Subsidiaries
II. A Coal Based Projects
27. Nabinagar- JV with Railways (BRBCL) Bihar (4x250 MW) 250
28. Nabinagar (NPGCL) Bihar (3x660MW) 660
29. Patratu Expansion JV with JBVNL 2400
30. Rourkela JV with SAIL (NSPCL) Odisha 250
31. Durgapur JV with SAIL (NSPCL) West Bengal (2x20MW) 40
32. Khulna JV with BPDB (BIFPCL) Bangladesh (2x660MW) 1320
33. THDC - Khurja (2x660 MW) 1320
Total II (A) 6240
II. B Hydro Projects
34. THDC - Tehri PSP Uttarakhand 1000
35. THDC - VishnugadPipalkoti Uttarakhand 444
Total II (B) 1444
II. C Renewable Projects
36. Chattargarh Solar G 150
37. Bhensara Solar G 320
38. Surendernagar Solar G 200
Total II (C) 670
Total II (A+B+C) 8354
Total On-Going Projects as on 31.03.2021 (I)+(II) 17989

@Work of Lata Tapovan HEPP stopped as per orders of the Hon'ble Supreme Court dated7.5.2014.

8.2 New Technology & Initiatives

Your Company has always laid stress on efficient utilization of resources and use oftechnological advancements for improving energy efficiency.

With emphasis on efficiency of electricity generation your Company has adoptedUltra-super critical technology by improving the steam parameters for North Karanpura(3X660 MW) to 260 kg/cm2 593oC/593oC. For Khargone(2X660 MW) and Telangana (2X800 MW) the steam parameters are 270 kg/cm2 600oC/600oC.The Plant efficiency of Ultra-super critical (USC) units is up to 42% which issignificantly higher than efficiency of conventional sub-critical 500 MW unit. Ultra-supercritical based units of Khargone (2X660 MW) STPP are already commissioned where 600oCtemperature was adopted for main steam and reheat steam for the first time in India.

For the first time in your Company Air Cooled Condenser (ACC) system has been adoptedat North Karanpura STPP and Patratu STPP which will bring a significant reduction inspecific water consumption for these projects.

8.2.1 Biomass Co-firing Utilization of Agro residue for Power Generation & reducepollution

As part of its commitment towards clean environment your Company has taken a newinitiative to utilise agro residue for power generation. This is intended to cut downcarbon emissions and also to discourage crop residue burning by farmers after harvestingby adding economic value to the crop residue and providing extra income to farmers andemployment in rural sector.

Biomass co-firing is a unique method to utilize coal-based power plant infrastructureto produce renewable energy by simply replacing some of the coal with biomass- based fuel.Being carbon neutral fuel biomass co-firing is a technology recognized by UNFCCC as ameasure of reducing greenhouse gas emission.

After successfully demonstrating biomass co-firing at your Company's Dadri station wehave started commercial scale biomass co-firing at other stations of your Company also.Your Company has forayed into large scale procurement of biomass for Co-firing by issuinga Long Term (LT) tender on 18.9.2020 for procurement of ~20 MMT biomass for 17 projects ofyour Company over the period of four years (i.e. 5 Million Metric Tonne Per Annum (MMTPA).It is expected to place the award under the long term tender before the next harvestingseason in October-November.

Besides Limited tender your Company has awarded contracts for procurement of 4.56 LMTof biomass pellet under short term contracts (9 months). Supply has already started at 7stations of your Company under short term contracts and also under orders placed for 280TPD for four years (approx. 4 lakh tonnes) at Dadri station. Your Company has alreadyfired ~28500 metric tonnes of biomass pellets at its various stations by March'21.

8.2.2 Waste to energy (WtE) and disposing municipal solid waste (MSW)

Keeping its commitment towards clean & green environment and Swachh Bharat Mission(SBM) your Company has taken several initiatives to support & leverage Government ofIndia's effort towards realising SBM thereby ensuring pollution free environment forpeople's health and welfare.

Your Company has successfully revamped and made functional the "Waste toCompost" plant at Karsara Varanasi and is now managing Operation & Maintenance(O&M) of this entire 600 Tons per Day (TPD) capacity plant. The plant is processingabout 600 TPD of MSW and generating about 60-80 TPD of compost. Sanitary land fillfacility and Leachate treatment facility have also been created at Varanasi to ensurescientific disposal of municipal solid & liquid waste.

In addition your Company has commissioned 24 TPD thermal gasification-baseddemonstration scale WtE plant at Varanasi. The Municipal Solid Waste (MSW) is firstconverted to produce gas which is then used to generate approximately 200 kW of electricpower. Further to promote Make in India concept this Project has been awarded to MicroSmall & Medium Enterprises (MSME) vendor.

Further your Company has also signed tri-partite MoU on 30th June 2020 withIOCL and SDMC for development of Waste to Energy (WtE) pilot Plant at Okhla landfill siteutilizing Municipal Solid Waste (MSW).

Under the said MOU it is proposed to set up Plasma Enhanced Gasification (PEGS)technology-based Waste to Energy pilot plant at SDMC Okhla Landfill site utlising 50treatment storage and disposal (TSD) refuse derived fuel (RDF) and generating one MW ofElectricity. The technolgy is eco-friendly as there are hadrdly any flue gases or bottamash waste. The Pilot Plant is being setup for technology demonstration.

8.2.3 Renewable energy

Renewable energy is central focus for your Company. To be in step with ambitioustargets the Company is exploring all avenues for renewable capacity addition to lookbeyond conventional large scale solar and wind parks. Your Company is utilizing roofs ofpower plant buildings for solar power generation and integrating to the existing plantinfrastructure. Your Company is also going ahead with floating solar at reservoirs of itsprojects which is a step towards saving of land and water conservation by reducing watersurface evaporation.

8.2.4 Welding

There is immense application of welding during manufacturing of various power plantcomponents during erection and maintenance/overhauling of units. The advance metallurgyof components exposed to high temperatures in new coal based Supercritical/ Ultra SuperCritical 660 MW & 800 MW thermal units of your Company imposes much greaterchallenges in welding. The challenge to achieve defect free weld joints always requireshighly skilled well trained and qualified manpower to do the welding and also to conductquick accurate and correct inspection of weld joints through advance Non-DestructiveTesting (NDT) techniques meeting the governing standard requirements. All these requiresproper understanding of metallurgy welding advanced NDT techniques and the governingstandards.

To meet all those challenges several new initiatives in welding & NDT were takenby your Company especially in Welding Skill Development Competency Development in WeldingInspection and advanced NDT techniques through world renowned "The Welding Institute(TWI) - UK/India". Welding Failure Analysis were conducted to understand the rootcause and suitable corrective actions were taken to ensure that such failures do nothappen again in any other unit. Repair Weldings were ensured by following proper weldingprocedure specifications and initiatives were taken to make aware the latest weldingequipment welding techniques & its implementation at site. New initiatives were alsotaken in meeting the challenges of developing Welding procedures & NDT techniques ineven higher & complex metallurgy involved in AUSC components.

A blue print of your Company's own state of the art Welding Training Center at selectedproject to train & produce highly skilled high-pressure welders and Welding & NDTEngineers has been developed. A Welding Research Institute is envisioned in one of theupcoming projects and the study is undertaken. These actions are now being carried forwardand should impact the complete power sector and other industrial sectors also.

8.2.5 Smart Township & Eco Park Smart Township:

In CPSE conclave 2018 idea to convert some of CPSE townships to "Mini SmartCities" was mooted. Your Company has awarded the work of converting two of itstownships "Solapur" and "Khargone" to "Smart Townships". Thework of Khargone is under final stages of execution and commissioning. However Solapurhas been commissioned on 17.7. 2021.

The work in these townships involves applications of smart solutions like Pan-Townshipsecurity and surveillance system smart water metering leakage identification and waterquality monitoring smart energy metering and use of renewable energy sources robust ITinfrastructure and FTTH connectivity rainwater harvesting solid and liquid wastemanagement use of smart bicycles electric vehicle (golf carts) Electric Vehicle (EV)Chargers open gym and citizen services etc.

Application of these smart solutions will provide enhanced quality of life to theresidents in an environment friendly and sustainable manner.

Eco Park:

Your Company is developing an Eco Park on the ash disposal area of Badarpur ThermalPower Station (which has since been shut down) to have environmentally sustainableneighborhood and to enhance quality of life. The design concept is taken from theimmediate surroundings of Yamuna River itself and the area is being developed as a greenisland to become a breathing space for the urban area of Delhi NCR apart from becoming alively and attractive space. This shall also help in conservation of natural ecosystem andprotection of environment.

8.2.6 Initiative for Use of Treated Sewage Water from Municipal Sewage Treatment Plants(STP)

Your Company has already taken up active steps to use treated sewage water from STPs ofnearby Municipal bodies for bulk water requirement in its power plants replacing preciousfresh water from rivers/lakes/reservoirs/dams meant for other priority uses likeagriculture drinking pisciculture water body preservation etc. Treated sewage waterwill be used for Condenser Cooling Water system makeup for your Company's power stationsfalling within 50 km distance from STPs meeting the order of closeness criteria asnotified in Tariff Notification of GOI dated 28.1.2016. Your Company has identified someprojects viz. Meja Mouda Solapur Korba Sipat Dadri and Telangana where treated STPwater can be used for the plant cooling water system.

Further based on various recent orders & guidelines issued from time to time byMinistry of Power (MoP) & Central Electricity Authority of India (CEA) specifyingscope division modalities quality standards etc. for use of treated sewage water inthermal power plants draft agreements have been shared and discussions under process withrespective municipal bodies associated with above stations.

8.2.7 Advanced digital and control technology use

Your Company is on the Digital path and implementing its Digital Strategy Roadmap. Theinitiatives of Advance Process Control (APC) for enabling flexible operation and AdvancedMonitoring of Stockyard (hot spot detection and 3D profiling of stock pile) have beencommissioned as a pilot project. Implementation in subsequent units is being planned.

Your Company has also taken initiatives of Advanced Performance Management-APM(Maintenance optimization suite) Application of IIOT in General-AIG (IIOT to enhanceprocess visibility) Asset Information Management-AIM (digital twin with lifecycledocumentation) to enhance reliability of equipment and processes. Further ART (Augmentedreality/Virtual Reality based training) has been completed as a pilot and Turbine Trainingmodules of ART are under implementation.

For capacity building of operating personnel your Company is developing full-fledgedreplica Simulators for all available combinations of SG & TG sets of supercriticalunits out of which 8 nos. have already been commissioned.

Technology intensive security system with centralized control and multiple layers ofsecurity is being envisaged in place of manpower intensive security currently in place. Ithas centralized control and multiple layers of security to enhance security with optimizedmanpower. Pilot project of the same has been completed in your Company's Dadri station.Further it is being implemented at five (5) projects of your Company.

Your Company has taken the initiative to further secure control systems by augmentingthe present defense-indepth Cyber Security Posture for Operational Technology (OT).

Initiatives have also been taken for upgradation against obsolescence which will patchall cyber vulnerability of obsolete systems and make the latest upgraded systems much moresecure.

8.2.8 Dry Bottom Ash Handling System

To minimize water consumption in recent times your Company has taken initiative foradopting Dry Bottom Ash Handling System instead of conventional Wet Bottom Ash HandlingSystem for Coal Based Thermal Power Project at Patratu (subsidiary company) underconstruction and same is being planned for R&M project at Rihand-I. Dry Bottom AshHandling System facilitates extraction of bottom ash in dry form and practically waterrequirement will be eliminated for handling bottom ash with meagre quantity of water whichwould be required for conditioning and dust suppression. The system not only reduces waterconsumption required for disposal of bottom ash in wet form but also results in reductionin power consumption for Bottom Ash Disposal and facilitates separation of bottom ashwhich will result in better utilization of bottom ash.

8.2.9 Change-over to safer Chlorine-di-oxide system from conventional gas Chlorinationsystem for disinfection of plant water system

Keeping commitment to environment and safety your Company has embarked upon to themore advanced safer and compact in-situ Chlorine-di-oxide generation system from earlierpractice of Gas chlorination system through a comprehensive policy change for its entirefleet of existing power stations as well as all upcoming power stations which is underimplementation in various projects and stations of your Company.

8.2.10 Zero Liquid Discharge (ZLD) from Thermal Power Plants

Your Company has already taken proactive approach to become a Zero Liquid Dischargecompany for all its operating station by identifying and implementing water managementinitiative adopting innovation in water use in its Thermal Power Plant. Some of thestations of your Company have already become zero liquid discharge compliant andimplementation is under progress in balance stations. Under the scheme plant effluentwater is segregated from storm water and is reused after treatment in the area of Ashhandling plant Coal Handling Plant FGD make up service water etc.

Out of 40 stations (37 closed cycle and three open cycle except TTPS) 15 stations ofyour Company has already achieved ZLD 5 stations have completed the ZLD work as perschemes and technical specifications in FY 2020-21 9 more stations likely to complete theZLD related work by July 2021 10 Stations will complete the ZLD related work by December2021 and balance one station will become ZLD compliant by March 2022.

8.2.11 Energy Conservation Technology Absorption and Foreign Exchange Earnings andoutgo

Details of conservation of energy technology absorption and foreign exchange earningsand outgo in accordance with Section 134(3)(m) of the Companies Act 2013 read withCompanies (Accounts) Rules 2014 forms part of this Director report is placed atAnnexure-III.

8.3 Project Management

Your Company has adopted an integrated system for the planning scheduling monitoringand control of approved projects under implementation. To co-ordinate and synchronise allthe support functions of project management the Issuer relies on a three-tiered projectmanagement system known as the Integrated Project Management Control System (IPMCS) whichintegrates its engineering management contract management and construction managementcontrol centers. The IPMCS addresses all stages of project implementation from concept tocommissioning.

Your Company has established state-of-the-art IT enabled Project Monitoring Centre(PMC) for facilitating fast track project implementation. PMC has advanced features likeWeb-based Milestone Monitoring System (Web- miles) 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.

8.4 Capacity addition through Subsidiaries and Joint Ventures (JVs) of your Company

Besides adding capacities on its own your Company develops power projects through itssubsidiaries and joint ventures both in India and abroad.

The information of Indian Subsidiaries and JV Companies along with details of partnersof joint ventures engaged in power generation is given below:

Name of Company JV Partner(s) Details
KBUNL (Kanti Bijlee Utpadan Nigam Limited) A wholly owned subsidiary of your Company The commissioned capacity of KBUNL is 610 MW Stage-I: 2X110 MW and Stage-II: 2X195 MW.
Generation in FY 2020-21 was 2904.64 MUs at 54.21% PLF and Availability Factor was 70.21%.
BRBCL (Bhartiya Rail Bijlee Company Limited) Ministry of Railways A subsidiary of your Company in joint venture with Ministry of Railways with equity contribution in the ratio of 74:26 respectively for setting up power project of 1000 MW (4X250 MW) capacity at Nabinagar in Bihar. Unit-I II & III have been declared commercial and Unit-IV is under construction.
Generation in FY 2020-21 was 4264.44 MUs at PLF 64.91% and Availability Factor was 88.48%.
BRBCL has paid dividend of ' 190.28 crore during FY 202021 to your Company.
NSPCL (NTPC-SAIL Power Company Limited) Steel Authority of India Limited (SAIL) A 50:50 Joint Venture Company between your Company and SAIL owns and operates 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 5520.07 MUs at 77.41% PLF and Availability Factor was 96.78% in FY 2020-21.
NSPCL has paid dividend of ' 95.00 crore during FY 202021 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.
NTECL (NTPC Tamil Nadu Energy Company Limited) Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) 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. Generation of NTECL during FY 2020-21 was 4368.97 MUs at 33.25% PLF and Availability factor was 90.17 %.
NTECL has paid dividend of ' 51.41 crore during FY 202021 to your Company.
APCPL (Aravali Power Company Private Limited) Indraprastha Power Generation Company Ltd. (IPGCL) and Haryana Power Generation Corporation Limited (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.
Generation of APCPL during FY 2020-21 was 3842.79 MUs at 29.17% PLF & Availability factor was 91.97%.
APCPL has paid dividend of ' 350 crore during FY 2020-21 to your Company.
MUNPL (Meja Urja Nigam Private Limited) Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) A 50:50 JVC is implementing 1320 MW (2X660 MW) coal based power project in the state of Uttar Pradesh.
Unit-1 of 660 MW capacity has been declared commercial on 30.4.2019. Unit-2 on 31.1.2021.
Generation of MUNPL during FY 2020-21 was 3928 MUs at 58.35% PLF and availability was 79.79%.
NPGCL (Nabinagar Power Generating Company Limited) A wholly owned subsidiary of your Company. NPGCL is setting up a 3x660 MW Coal based plant at Nabinagar. Construction activities are in progress.
Unit#1 declared commercial on 6.9.2019 and Unit#2 full load was achieved on 24.3.2021. Unit#3 first synchronization was achieved on 28.3.2021.
Generation of NPGCL during FY 2020-21 was 4639.69 MUs at 80.25% PLF and availability was 88.71%.
RGPPL (Ratnagiri Gas and Power Private Limited) MSEB Holding Company Limited RGPPL owns and operates gas based Dabhol Power Project of 1967 MW (1 X 640 MW + 2 X 663.50 MW) in Ratnagiri district of Maharashtra.
On 31.12.2020 your Company has executed agreement for a Composite Resolution Plan with Lenders of RGPPL wherein outstanding debt liabilities of RGPPL have been settled through One Time Settlement (OTS) by your Company. As per the Resolution Plan the Company has provided inter corporate loan of ' 885 crore to RGPPL for settlement of loan with the lenders 35.47% of Lenders Equity in RGPPL has been transferred to your Company. Your Company's Shareholding increased to 60.98 % on 31.12.2020 and RGPPL has become a subsidiary of your Company with effect from 31.12 2020.
Further your Company has executed Share Purchase Agreements with GAIL (India) Limited (GAIL) on 23.2.2021 for purchase of GAIL's share (25.51%) in Ratnagiri Gas and Power Pvt. Ltd. (RGPPL) and sale of your Company's share (14.82%) in Konkan LNG Ltd. (KLL) to GAIL. With this transaction your Company has fully exited KLL and your Company's shareholding in RGPPL has become 86.49%.
Generation of RGPPL during FY 2020-21 was 2573.83 MUs at 14.94 % PLF and Availability was 34.48%.
ASHVINI (Anushakti Vidhyut Nigam Limited) Nuclear Power Corporation of India Limited (NPCIL) Your Company is having a stake of 49%. The company was formed to set up Nuclear Power Project 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 at an appropriate stage.
Currently no activities are being taken up by the Company.
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 operate & maintain existing and setting up of the new units.
Supplementary Joint Venture Agreement was signed on 1.3.2018 for expansion units (Phase-I 3X800 MW). EPC package was awarded to BHEL on 8.3.2018. Construction work is in progress.
NREL (NTPC Renewable Energy Limited) A wholly owned subsidiary of your Company NTPC Renewable Energy Limited (NTPC RE) a wholly owned subsidiary of your Company's was incorporated on 7.10.2020 with a target to accelerate the RE capacity addition plan.
THDCL (THDC India Limited) THDC India Ltd was a joint venture of the Government of India (74.496%) and the Government of Uttar Pradesh (25.504%) and was a Mini- ratna Category-I CPSE. Your Company executed a Share Purchase Agreement with GoI on 25.3.2020 and acquisition of 74.496% equity stake in THDC completed on 27.3.2020. With this acquisition THDC has become a subsidiary Company of your Company.
Presently THDC has a portfolio of 13 projects (Hydro Thermal Wind & Solar) totaling to an installed capacity of 5539 MW which includes 1587 MW Operational and balance under various stages of development/ implementation.
THDC has paid dividend of ' 527.25 crore during financial year 2020-21 to your Company.
NEEPCO (North Eastern Electric Power Corporation Limited) A wholly owned subsidiary of your Company North Eastern Electric Power Corporation Limited ("NEEPCO") was a Mini-ratna Category I Central Public Sector Enterprise. NEEPCO is primarily engaged in the business of generation and sale of electricity in the northeastern region of India. Your Company executed a Share Purchase Agreement with GoI on 25.3.2020 and acquisition of 100% equity stake in NEEPCO was completed on 27.3.2020.
NEEPCO operates 7 hydro 3 thermal and 1 solar power stations with a combined installed capacity of 2057 MW. NEEPCO commissioned its largest 600 MW Hydro Project Kameng (4 x 150 MW) in the N.E. Region Commercial operation of Unit-I 2 3 & 4 were declared on 17.6.2020 1.7.2020 22.1.2021 and 12.2.2021 respectively.
NEEPCO has paid dividend of ' 25 crore during financial Year 2020-21 to your Company.

8.5 Hydro Power Projects

Your Company as you are already aware has been in renewable energy sector and now hassolid footprints in green energy by developing hydro projects as detailed below:

A. Koldam HEPP (4x200 MW) is on the river Satluj in District Bilaspur (HimachalPradesh). All the four units of 200 MW were declared commercially operational in 2015.Since then the project has been running exceedingly well. The generation for the financialyear 2020-21 has been 3221.40 MUs against design energy of 3055 MUs. Owing to excellentoperation and maintenance practices the Station achieved yearly DC of 108.51% in FY2020-21 which was highest amongst all the Hydro Power Stations in the country for thelast five years in a row. Koldam has been accorded Integrated Management Systems (IMS)Certification which includes ISO 9001:2015 for Quality Management System ISO 45001:2015for Environment Management System & ISO 14001:2018 for Occupational Health &Safety Management System in March 2021. Koldam was bestowed with HP Environment Leadershipaward by Hon'ble Chief Minister of Himachal Pradesh on the occasion of World Environmentday at Shimla for second time. Station was also awarded with Greentech Environment &Safety Awards Growcare India Environment Award. Towards water conservation backwashwater from the Water treatment plant and effluent from the Sewerage Treatment plant isbeing used for Horticulture purposes in Township area.

B. Tapovan Vishnugad HEPP (4x130 MW) is on river Dhauliganga in District Chamoli(Uttarakhand). The Project is under advanced stage of construction with a physicalprogress of nearly 75%. Generator Transformer & Switchyard Package is completed.Powerhouse works are completed and architectural works are in progress. Erection andtesting of three out of four turbines is completed.

On the morning of 7.2.2021 there was a massive glacial outburst avalanching intoRishiganga River. This caused an unprecedented devastating flash flood in the riverconsisting of debris silt boulders ice rock pieces soil trees etc. Due to thisdebris flow huge quantity of muck got deposited in Barrage area Desilting ChambersIntake structure Head Race Tunnel Silt Flushing Tunnel HRT Adits etc. entrapping themanpower and equipment/vehicles in these areas engaged for the purpose of ongoing work.Rescue operation was started immediately with the help of ITBP Army NDRF SDRF and Govtof Uttarakhand. Presently rescue and restoration works are under progress in all theaffected areas. It includes muck removal from tunnels and desilting Chamber Riverdiversion from left to right bank creating embankment/Bund to prevent further flooding inMonsoon and rectification of damaged roads on priority. The progress of work has beenaffected due to this natural disaster.

C. Lata Tapovan HEPP (3x57 MW) is in upstream of Tapovan Vishnugad HEPP in DistrictChamoli in Uttarakhand. All Construction activities at LTHPP were stopped since 8.5.2014in compliance of Hon'ble Supreme Court order dated 7.5.2014 for 24 Hydro Projects in theState of Uttarakhand including Lata-Tapovan. MOEF & CC had constituted an expert bodywhich in October 2015 recommended for implementation of Lata Tapovan with compliance ofcertain additional conditions. Your Company submitted in Court that the conditionsrecommended by expert body shall be fully complied. On the hearing held on 26.4.2016 alsoAdditional Solicitor General informed the Court that Lata -Tapovan Project should beimplemented. The Court asked GoI to submit a combined affidavit of all three concernedministries. The said affidavit is yet to be submitted. The last hearing in the case washeld on 28.2.2020. After that the matter could not be listed because of restrictivefunctioning of the court due to COVID related restrictions. The matter is still pendingwith Hon'ble Supreme Court.

D. Rammam-III HEPP (3x40 MW) is situated on river Rammam in Teesta Basin Darjeeling(West Bengal) in south and Sikkim in north. Construction activities at Power HouseSwitchyard HRT and Barrage structures are in progress at site. In Barrage two bays shallbe completed before 2021 monsoon for 2nd stage river diversion to carry outconstruction activities at other bays.

E. Seli HEP (4x100 MW) & Miyar HEP (3x40 MW) are the two new projects allotted toyour Company in Chenab Valley by Govt of Himachal Pradesh (GoHP). MoU was signed with GoHPon 25.9.2019. Finalization of terms and conditions with Govt of Himachal Pradesh (GoHP) isin progress as one of the earlier awardee companies has approached High Court of Shimlafor redress of its grievances with GoHP.

8.6 Capacity addition through Renewable Energy (RE) Sources

Renewable energy (RE) is the central focus for your Company. To be in step withambitious targets of the Government of India (GoI) your Company is attempting all avenuesfor renewable capacity addition to look beyond conventional large scale solar and windprojects. Your Company is also going ahead with floating solar at reservoirs of itsprojects which is a step towards saving of land and water conservation by reducing watersurface evaporation. Your Company is also utilizing roofs of power plant buildings forsolar power generation.

By 2032 your Company plans to have over 60 GW capacity through RE sources constitutingnearly 50% of its overall power generation capacity.

Your Company is pursuing capacity addition in RE projects in two modes namely Owncapacity addition mode and Developer Mode. In Own capacity addition mode your Companysets up Renewable Energy projects on its own investment. In Developer Mode your Companyacts as an intermediary procurer where it procures power from the Developers and sells toDISCOMs with a trading margin.

The initiatives for hydrogen technologies are being pursued through RE and it isenvisaged that RE capacity of your Company shall power the future hydrogen initiatives.The green hydrogen thus generated shall be utilized for various applications ranging frommobility to green chemical to energy storage.

Projects under Own Capacity Addition

A) Commissioned Projects: your Company has a commissioned capacity of 1350 MW of REprojects including 192 MW owned by the subsidiaries. It covers solar (ground andfloating) wind and small hydro installations spread over the country: -

S No. Project State/UT Capacity (MW)
A Solar (ground mounted)
1 Dadri Uttar Pradesh 5
2 Port Blair Andaman & Nicobar 5
3 Faridabad Haryana 5
4 Ramagundam Telangana 10
5 Talcher Kaniha Odisha 10
6 Unchahar Uttar Pradesh 10
7 Singrauli Uttar Pradesh 15
8 Auraiya Uttar Pradesh 20
9 Rajgarh Madhya Pradesh 50
10 Bihaur-I & II Uttar Pradesh 210
11 Mandsaur Madhya Pradesh 250
12 Ananthapuramu Andhra Pradesh 250
13 Bhadla Rajasthan 260
B Wind
1 Rojmal Gujarat 50
C Small Hydro
1 Singrauli Uttar Pradesh 8
SUB-TOTAL 1158
D Subsidiaries
1 Patan Wind (THDC) Gujarat 50
2 Devbhumi Dwarka Wind (THDC) Gujarat 63
3 Dhukwan Small Hydro (THDC) Uttar Pradesh 24
4 Kasargod Solar (THDC) Kerala 50
5 TGBPP Solar (NEEPCO) Tripura 5
SUB-TOTAL 192
GRAND-TOTAL 1350

B) Projects Under Implementation: 2884 MW of RE projects are under implementationcomprising of solar (ground and floating) projects: -

S No. Projects State MW
A Solar (floating) 237 MW
1 Auraiya Uttar Pradesh 20
2 Simhadri Andhra Pradesh 25
3 Kayamkulam I & II Kerala 92
4 Ramagundam Telangana 100
SUB-TOTAL 237
B Solar (ground) 2647 MW
1 Bilhaur Uttar Pradesh 15
2 Rihand Uttar Pradesh 20
3 Gandhar Gujarat 20
4 Kawas Gujarat 56
5 Anta Rajasthan 90
6 Chhattargarh Rajasthan 150
7 Jetsar Rajasthan 160
8 Surendranagar Gujarat 200
9 Ettayapuram Tamil Nadu 230
10 Devikot-I & II Rajasthan 240
11 Sambhu Ki Bhurj-I Rajasthan 250
12 Fatehgarh Rajasthan 296
13 Sambhu Ki Bhurj-II Rajasthan 300
14 Nokhra Rajasthan 300
15 Bhensara Rajasthan 320
SUB-TOTAL 2647
GRAND-TOTAL 2884

• The Ground Mounted Solar projects of 2647 MW are spread across UP RajasthanTamil Nadu Gujarat and Kerala. Further 1692 MW out of 2647 MW are being implementedunder CPSU scheme. Under this scheme it is envisaged to set up solar projects usingdomestically manufactured cells and modules with VGF support from Ministry of New andRenewable Energy (MNRE). The power is sold in WTO compliant manner only to governmententities under a power usage agreement.

• Floating Solar projects of 237 MW are spread across UP Telengana AndhraPradesh and Kerala. Your Company is promoting large scale floating solar projects andtowards this a 100 MW project is being set up in Telangana. Incidentally when completed in2021 this project will be the largest one in the country.

Developer Mode Projects

• In this regard MNRE has accorded its approval to the Company to act as adesignated agency for issue of tenders for setting up of renewable power projects coveringwind and solar mode.

A) Commissioned Projects: 4385 MW of RE projects has been commissioned.

B) Projects under Implementation: 1188 MW of RE projects are under implementation.

New Initiatives/Major Highlights:

• Incorporation of NTPC Renewable Energy Limited (NTPC REL) a wholly ownedsubsidiary company of your Company on 7.10.2020 to undertake RE business independently.

• Introduction of high efficiency solar PV Modules (490 Wp) in floating solarprojects at Kayamkulam and Auraiya.

• Winning a total of 1510 MW solar capacity in different projects under tariffbased competitive bidding of SECI/States.

• MoU signed with DVC on 12.3.2021 for development of UMREPP and projects in DVCreservoirs and land.

• MoU signed with ONGC on 21.5.2020 for developing offshore wind projects.

• JVA finalized between NIIF and your Company and approved by Board of Director ofyour Company

UMREPP (Ultra Mega Renewable Energy Power Park):

MNRE has issued UMREPPs scheme on 15.6.2020 to provide land upfront to the projectdevelopers and facilitate transmission infrastructure for adding RE capacities withsolar/wind/hybrid mode and also with storage system if required.

Projects totaling 16.94 GW are under various stages of development in states of Gujarat(4.75 GW) Maharashtra (2.64 GW) Rajasthan (5 GW Madhya Pradesh (0.55 GW) and AndhraPradesh (4 GW).

Further THDC Limited a subsidiary of your Company has created a 74:26 subsidiarycompany (namely TUSCO Limited) with UPNEDA for implementing UMREPP in the state of UttarPradesh.

Hydrogen Energy:

Your Company is in the process of exploring opportunities for production of greenhydrogen using electricity from RE sources and using green hydrogen for variousapplications. These are for mobility production of green fuel (methanol ammonia)establishing microgrids NG blending with hydrogen for CGD system etc. and are steps ofdecarbonization effort of the Company.

Following initiatives are pursued at different locations:

A. Green mobility in Ladakh and Delhi

1. MoU being planned with UT Ladakh and Ladakh Autonomous Hill Development Council(LAHDC) for allied green hydrogen initiatives and majorly setting up hydrogen fillingstations.

2. Delhi has been chosen to set up hydrogen filling stations so that intercitytransport using FCEV buses like Ladakh is supported.

B. Green Chemical production

1. Green Methanol (10 TPD) pilot at Ramagundam using green hydrogen and carbon capturedfrom flue gases of thermal project.

2. Green Ammonia pilot (20 TPD and 50 TPD) using two different technologies wheregreen hydrogen and nitrogen from air is treated together in reactors.

8.7 Capacity addition through acquisition

Your Company has submitted final Resolution Plan on possible acquisition of JhabuaPower Limited (under NCLT) having 600 MW Coal based thermal power plant in the Seonidistrict of Madhya Pradesh. Resolution Plan has been approved by Committee of Creditors(CoC) and sent to NCLT for its approval.

9. STRATEGIC DIVERSIFICATION

9.1 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 and distribution.

Your Company continuously explores business opportunities through market scanning andadopts new business plans accordingly.

9.2 The details of subsidiary companies engaged in business other than in powergeneration are as under:

9.2.1 NTPC Electric Supply Company Limited (NESCL) a wholly owned subsidiarytransferred and vested all its operations with effect from 1.4.2015 to your Company.

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.

NESCL is actively looking for acquisition of power distribution and had participated inbid process of UT Chandigarh Daman & Diu and Dadra & Nagar Haveli.

9.2.2 NTPC Vidyut Vyapar Nigam Limited (NVVN) a wholly owned subsidiary is engaged inthe business of Power trading. NVVN has a trading License under Category I (highestcategory). It undertakes sale and purchase of electric power to effectively utilizeinstalled capacity and thus enable reduction in the cost of power.

The Company has been nominated as Settlement Nodal Agency (SNA) for settlement of Gridoperation related charges with neighboring countries namely Bangladesh Bhutan Nepaland Myanmar. The Company is also implementing a 50 MW gas power project in Andaman &Nicobar.

In the FY 2020-21 NVVN traded 18.54 billion units (BUs). Besides this NVVN has alsoundertaken various other Business activities

A. Renewable Projects:

NVVN has ventured into renewable energy business and has signed MoU with Airportauthority of India for implementing Ground/ Rooftop Solar PV Projects at identifiedairports/ buildings. Accordingly the tender for 2 MW solar project at Agartala airporthas been floated by NVVN and price for the same has been discovered by reverse auction.The project is likely to be commissioned by March 2022. Further feasibility study andsurvey of various other airports to identify possible solar capacity installation is underprocess.

In addition to the above NVVN has also signed MoU's with South Delhi MunicipalCorporation (SDMC) and IIT Jodhpur for development of solar projects.

B. E-Mobility

NVVN has forayed into the e-mobility segment including providing vehicles and relatedservices as a part of turnkey solution in various vehicle segments. Based on this the L1Bidder for 450 E-buses has been selected through tendering process. These E-buses areplanned to be provided to State / City Transport Authorities / Corporates / Govt. bodiesetc. on commercial arrangements.

NVVN has signed agreement with Department of Transport Andaman and Nicobar Islands forsupply of total 40 E-buses. Further NVVN has won Bengaluru Metropolitan TransportCorporation (BMTC) tender to supply 90 E-buses.

NVVN is adopting the integrated business strategy to increase its respective businessportfolio. Therefore the signed MoU's with AAI and SDMC includes development of charginginfrastructure as one of the major components of the scope of work.

C. Fuel Cell Electric Vehicle

Besides Battery based E-mobility NVVN has also planned to enter Hydrogen Mobilitybusiness. Pilot projects based on green Hydrogen are planned to be carried out in Leh andDelhi with 5 nos. of Fuel cell electric buses at each location. NIT for the Hydrogen buses(Fuel cell electric vehicle) has been issued.

D. Waste to Energy and disposing municipal solid waste (MSW)

Keeping commitment towards clean & green environment and Swachh Bharat Mission(SBM) NVVN has taken several initiatives to support & leverage Government of India'seffort towards realising SBM thereby ensuring pollution free environment to people'shealth and welfare.

In addition to this NVVN has also signed Memorandum of understanding with MunicipalCorporations of Surat East Delhi Varanasi Indore Bhopal and Hubli Dharwad for settingup state of the art Waste to Energy plant/ Municipal solid waste to Charcoal plant.

To fast-track the technology development NVVN has organized technology challengeaptly named as Green Charcoal Hackathon. The purpose of the event is to leverage theinnovative Indian mind to bridge the technology gap with the prime objective to clean theair by eliminating farm fire producing renewable energy out of the agro residue topromote local entrepreneurship and to increase the income of the farmers. The finalevaluation has been completed.

NVVN has paid dividend of ' 30 Crore during FY 2020-21.

9.2.3 NTPC Mining Limited (NML) In order to ensure focused management of miningbusiness your Company has incorporated a wholly owned subsidiary NTPC Mining Limited(NML) on 29.8.2019 for handling its mining business. It is expected that undertaking ofmining business by this subsidiary would result in timely development of mines withefficient handling of contracts by dedicated team. This will ultimately achievesubstantial efficiency and increased competitiveness.

9.2.4 NTPC EDMC Waste Solutions Private Limited (NEWS)

In order to develop and operate state of art/modern integrated waste management andenergy generation facility using municipal solid waste. Your Company has incorporated a JVCompany with 74:26 shareholding with East Delhi Municipal Corporation (EDMC). The powerplant capacity will be 12 MW and shall utilize approx. 2000 T/day of municipal waste andwill comply to latest environmental norms.

9.3 The details of joint venture companies incorporated in India which are taking upactivities in other related business areas are given below:

Name of Company JV Partner Activities Undertaken
UPL (Utility Powertech Limited) Reliance Infrastructure Limited Space Trade Enterprises Private Limited Skyline Global Trade Private Limited and Species Commerce And Trade Private Limited A 50:50 JVC takes up assignments of construction erection and supervision of business in power sector and other sectors like O&M services Residual Life Assessment Studies nonconventional projects etc.
UPL has paid dividend of ' 5.00 crore to your Company during FY 202021.
NGSL(NTPC GE Power Services Private Limited earlier NTPC Alstom Power Services Private Limited) GE Power India Limited A 50:50 JVC provides R&M services for coal-based power plants in India to renovate modernize refurbish rehabilitate upgrade reverse engineering component damage assessment and RLA utilizing state of art technology.
R&M including RLA work orders are under execution. NGSL is diversifying to take up new business assignments in area of FGD Ash Utilization O&M and RE.
NGSL paid ' 0.25 crore as dividend to your Company during FY'20-21
EESL (Energy Efficiency Services Limited) PFC PGCIL and REC Your Company is having a stake of 47.15%. 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 Governments.
The Company is taking up different energy efficiency improvement related works like replacement of bulbs Street Light National Programme (SLNP) & other new business areas like Electric Vehicle (EV) Electric Charging Infrastructure etc.
NHPTL (National High- Power Test Laboratory Private Limited) NHPC PGCIL DVC and CPRI Your Company is having a stake of 20.00% in JVC. The Company was formed 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.
HVTR test Laboratory set up at Bina M.P. was declared Commercial w.e.f 1.7.2017.
NBPPL (NTPC-BHEL Power Projects Private Limited) Bharat Heavy Electricals Limited A 50:50 JVC was incorporated for taking up activities of engineering procurement and construction (EPC) of power plants and manufacturing of equipment.
In 2018 both Promoters had approached respective Ministries to exit from NBPPL/ closure of NBPPL. MoP had advised your Company to consider buy out of BHEL stake in NBPPL. Your Company vide letter dated 20.10.2020 to MoP has suggested that since both NBPPL & BHEL are under administrative control of DHI and NBPPL is in the field of EPC and Manufacturing which has more synergy and alignment to BHEL's business therefore DHI/BHEL may be impressed upon to buy out your Company stake in NBPPL.
BF-NTPC (BF-NTPC Energy Systems Limited) Bharat Forge Limited Your Company is having a stake of 49% in JVC. 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 BFNESL. Liquidator has been appointed and voluntary liquidation of the company is in progress.
TELK (Transformers and Electricals Kerala Limited) Govt. of Kerala Your Company is having a stake of 44.60% in JVC. The Company deals in manufacturing and repair of Power Transformers.
Your Company has accorded in-principle approval for withdrawal from TELK on 28.4.2016.
Government of Kerala (GoK) through Additional Chief Secretary to Government requested your company to review the decision to quit TELK.
The matter is under consideration.
ICVL (International Coal Ventures Private Limited) CIL SAIL RINL NMDC Your Company is having a stake of 0.09% in JVC. 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.
HURL (Hindustan Urvarak & Rasayan Limited) CIL IOCL Fertilizer Corporation of India Limited (FCIL) and Hindustan Fertilizer Corporation Limited (HFCL) Your company is having a stake of 29.67% in JVC. HURL was incorporated on 15.6.2016 to establish and operate new fertilizer and chemicals complexes (urea- ammonia and associated chemical plants) at Gorakhpur Sindri and Barauni and market its products.
Lumpsum Turnkey contract was awarded for Gorakhpur Baruani and Sindri with a completion schedule of 36 months. Construction work in all the three projects are in progress.
CNUPL (CIL NTPC Urja Private Limited Coal India Limited (CIL) A 50:50 JVC was incorporated on 27.4.2010 between your Company. and Coal India Ltd to undertake the Development of Brahmini and Chichro-Patsimal coal mine blocks in Jharkhand and subsequently their operation and maintenance and integrated coal-based power plants.
In June 2011 Ministry of Coal GoI has de-allocated Brahmini and Chichro- Patsimal coal blocks which were earlier allotted to the JV Company.
CNUPL is exploring new business area for implementation of solar projects. MoU is to be signed by CNUPL with Northern Coalfields Limited (NCL) to support as Project Coordinator for development of 50 MW Solar PV Power Project in the vacant land of NCL at Nigahi mine M.P.

9.4 Foray in Packaged Drinking Water Business

Your Company's research arm NETRA has developed technology for sea water desalinationusing waste heat from flue gas from the power plant. The cost-effective technology is nowbeing utilized for packaged drinking water. An MoU in this regard has been signed withIRCTC on January 15 2018 for setting up a packaged drinking water facility at yourCompany's Simhadri Station. Commercial arrangement is being finalized with IRCTC.Construction of Bottling Plant is under progress by IRCTC.

9.5 New Business Areas

MoU was signed on 24.7.2019 with BHEL for forming a joint venture company to set up 800MW Technology Demonstration Plant (TDP) based on Advanced Ultra Supercritical Technology(AUSC) at Sipat Chhattisgarh. PIB Proposal for Financial support to proposed JV Companybetween your Company and BHEL for setting up of 1 X 800 MW capacity TechnologyDemonstration plant (TDP) to establish AUSC technology for coal fired thermal power plantsis under consideration by GoI.

9.5.1 JV with National Investment and Infrastructure Fund (NIIF). Your Company hassigned an MoU with NIIF on 16.7.2020 for investment in Renewable Energy Domain and alsoexploring the possibility of venturing into the field of supply and distribution ofelectricity. Joint Venture Agreement with NIIF for the above collaboration was approved byBoard of Directors in its meeting held on 4.2.2021 to form a Joint Venture Company with51:49 equity participation by NIIF and your Company respectively. Approval of NationalInstitution for Transforming India (NITI Aayog) has been obtained.

9.5.2 Exploring business opportunities for setting up Industrial Park at your Company'sPower Stations. In a first of its kind initiative your Company has issued an Expression ofInterest in 21.9.2020 to develop Industrial parks at land parcels available at variouspower plants of your Company. Three stations of your Company Kudgi (Karnataka) Solapur(Maharashtra) and Gadarwara (Madhya Pradesh) are selected for the initiative on a pilotbasis and interests have been received from several industries which are willing to setupenergy-intensive manufacturing facilities at your Company Power Stations. M/s KPMG hasbeen engaged by your Company to prepare a Strategic blueprint and Roadmap for execution ofthe Industrial parks.

9.5.3 Eol for setting up of CO2 to Methanol production in your Company'splants

Keeping focus on decarbonisation of the Indian energy sector India's commitment to COP21 for reducing GHG emissions and ‘Methanol Economy' program initiated by NITI Aayogyour Company intends to set-up commercial scale CO2 Capture H2Generation & Conversion to Methanol (composite facility) in aggregator mode on BOObasis at its various plants in India. In the proposed facility CO2 will becaptured from flue gas and will be converted to Methanol by utilizing appropriate hydrogenproduction facility to be set up for this purpose. In this regard your Company hasinvited Global Expression of Interest (EoI) on 28.1.2021 from Indian/Global Company /theirconsortium/Affiliates/Representatives. The EoI has been issued to evaluate the industryresponse identification of suitable technologies for Carbon Capture Hydrogen Productionand Methanol production thereof assess the financial viability and the best possibleoption for commercialization.

9.5.4 Setting up of Energy Intensive (Chemical) manufacturing facility in your CompanyPlants- Your Company is in the process of engaging a suitable consultant for carrying outmarket survey for setting up Caustic Soda manufacturing facility in one of the yourCompany's station located in Southern or Western Region.

9.5.5 Exploring new Hydro Power Projects and Pump Storage Hydro (PSH) Projects - YourCompany is in discussion with Govt. of Arunachal Pradesh for allocation of suitable HydroPower projects in the state of Arunachal Pradesh. Your Company is also taking up withGovt. of Andhra Pradesh for allocation of suitable Pump Storage Hydro Projects.

9.5.6 Common Backend Infrastructure Facility (CBIF)

Your Company is in process of setting up of Common Backend Infrastructure Facility(CBIF) for supporting nationwide rollout of smart meters through EESL.

10. GLOBAL INITIATIVES

10.1 Bangladesh-India Friendship Power Company Private Limited (BIFPCL) a 50:50 JVcompany with Bangladesh Power Development Board (BPDB) is implementing a (2x660) MWMaitree Super Thermal Power Project at Khulna in Bangladesh. Milestones of Unit#2 TGerection start and Unit#1 Boiler Drainable Hydro Test at design pressure were achievedduring the year.

10.2 Trincomalee Power Company Limited (TPCL) For development of the proposed 300 MWLNG Power Project at Kerawalapitiya Sri Lanka JVSHA with Ceylon Electricity Board (CEB)was signed in 2019. Discussions are underway for incorporation of a 50:50 JV company whichwould then develop the project.

Further a 50 MW solar PV power project at Sampur Trincomalee is envisaged to bedeveloped by the existing JV Trincomalee Power Co. Ltd. for which draft JVSHA has beenshared with Sri Lankan side for their confirmation.

10.3 Other Opportunities Abroad:

a. Project management consultancy assignments under ISA platform secured for 500 MW inRepublic of Mali in June 2020 and 100 MW in Republic of Malawi in March 2021. Totalcapacity under implementation is now 885 MW including earlier secured 285 MW in Republicof Togo;

b. Collaboration for international business through signing of MoUs with EGENCO Malawiin May 2020 and with IOCL in Dec 2020. Further three MoUs have been approved in March 2021for signing viz. with Inter RAO Exports of Russia Bank Muscat of Oman and Masen ofMorocco. Through this route your Company intends to have more effective presence inrespective focus regions and be able to contribute further in power sector development;

c. Consultancy assignments viz. Energy audit of cement factory in UAE and Evaluation ofPPA methodology of PP9 in Saudi Arabia were completed during the year of which payment forenergy audit assignment was also received in March 2021;

d. Your Company is providing Project management consultancy & DPR preparationservices under ISA platform to 47 lDc & SIDS member countries of ISA forimplementation of solarisation pilot projects such as solar water pump solar powered coldstorage and solar rooftop solutions to primary healthcare centers. Agreement for the samewas signed by your Company & ISA in Sept' 2020; and

e. A total of 6 RFPs 6 RFQs and 28 EOIs have been submitted so far in this financialyear for power sector opportunities overseas. Your Company has been shortlisted in 10 ofthem while results of most are awaited.

11. CONSULTANCY SERVICES

Your Company supports Indian Power Industry with its vast experience & expertiseand offers Consultancy services "From Concept to Commissioning and beyond...."in areas of Engineering O&M Project Management Contracts & ProcurementRenovation & Modernization Quality & Inspection Training & DevelopmentHuman Resource IT Solar & renewable power projects compliance to Environmentalnorms for power stations etc.

Consultancy services are being provided in India and abroad viz. Gulf countriesBangladesh Myanmar Mali Togo Malawi & ISA Member countries. Around 130 assignmentsare presently under execution.

Some of the Major ongoing assignments are as follows:

- Project Management Consultancy (PMC) for implementation of (2X660 MW) Khurja STPP ofTHDC and (2X660 MW) Buxar TPP of SJVN.

- Post Award Review Engg. & Project Monitoring services at (1X660 MW) PankiExtn.TPP (2X660 MW) Obra Extn. TPS & (2X660 MW) Jawaharpur TPS of UPRVUNL.

- Commissioning support to UPRVUNL Harduaganj Extn -II (1x 660 MW).

- Engineering review of (2x20 MW) AFBC Unit of NSPCL Durgapur.

- Solar Projects.

International:

- PMC of Dalwak in Dapaong (35 MWp) and in Mango (250 MW) in Savanes Region Govt. ofTogo.

- PMC of 500 MW in The Republic of Mali

- PMC of 100 MW in Malawi.

Domestic:

- PMC of 50 MW solar project of NCL (Northern Coalfields Ltd)

- DPR of 1200 MW solar projects of THDC

- 24 Consultancy Assignments pertaining to compliance of new environment norms throughimplementation of FGD Combustion modification ESP R&M etc. are under various stagesof implementation.

Your Company's Consultancy clientele includes Govt. organizations such as UPRVUNLAPGENCO CSPGCL HPGCL DVC PSPCL OCPL JPVL NALCO Haldia Energy NLC PFC CCL SCCLPollution control Boards WBPDCL KPCL Joint Venture companies of your Company and membercountries of International Solar Alliance (ISA).

Highlights of FY 2020-21

• Your Company Consultancy received orders worth ' 266.66 Crore during FY 2020-21which includes orders worth ' 200 Crore for implementation of Solar projects.

• In first of its kind consultancy project your Company Consultancy preparedFeasibility report for utilizing waste flue gas heat for air-conditioning at BPCL's Cochinrefinery.

• Your Company is working as Project Management consultant (PMC) forimplementation of solarization projects in 47 Least Developed Countries (LDC) and SmallIsland Developing States (SIDS) member countries of ISA.

Consultancy Wing of your Company is looking ahead for future business opportunities inareas such as Complete O&M of thermal power plants Solar & Renewable powerprojects Owner's Engineer for major power projects PMC for implementation of newenvironmental norms e.g FGD ZLD DNOx & ESP R&M IT services e.g. ERPimplementation PRADIP Dreams 2.0 PI systems etc.

• International project management consultancy for setting up of solar projectsfor Togo and Mali in Africa under ISA initiative are under execution.

12. 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 of your Company and that of 80:20 in case of solar/wind projects. Your Directors believe that internal accruals of the Company would besufficient to finance the equity component for the new projects. Given its low-gearedcapital structure and strong credit ratings your Company is well positioned to raise therequired 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.

Further your Company is consistently doing debt swapping in case of domestic loan andcheaper loans are being utilised to repay the older loans with higher rate of interestwithout paying any repayment penalty to bank.

The details of funding are discussed in the Management and Discussion Analysis Reportwhich forms part of this Report at Annexure-I.

13. FIXED DEPOSITS

Your Company has discontinued the acceptance of fresh deposits and renewal of depositsunder Public Deposit Scheme with effect from 11.5.2013. As such there were no depositswhich were not in compliance with the requirements of Chapter-V of the Companies Act2013.

The details relating to deposits as per the Companies Act 2013 are 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/ nonreceipt of claims.

14. FUEL SECURITY

During the year 2020-21 the supply position of coal and gas of your Company is givenas under:

14.1.1 Long Term Coal Supply Agreements

- In line with the Model Coal Supply Agreements (CSA) signed between your Company andCoal India Limited (CIL) in 2009 2012 and under Shakti Policy Long-term Coal SupplyAgreements (CSAs) are in place with the subsidiary coal companies of Coal India Ltd. (CIL)for an Annual Contracted Quantity (ACQ) of 166.69 Million Metric Tonnes (MMT) for theexisting thermal stations. In addition CSA is in place with Singareni Colliery CompanyLtd. (SCCL) for Ramagundam for an ACQ of 11.20 MMT. Fuel supply Agreement (FSAs) are validfor a period of 20 years with a provision of review after every 5 years.

- In FY 2020-21 your Company has signed new LongTerm Fuel Supply Agreements (FSA) for1.851 MMTPA with NCL for Vindhyachal-V Unit-13 (500 MW) and 2.805 MMTPA with NCL forGadarwara (2X800 MW). Further with handover of Barauni TPS from BSPGCL (Bihar State PowerGeneration Company Ltd.) to your Company FSA of Barauni-I (2X110 MW) for 0.885 MMTPA withECL has been transferred to your Company.

- Under coal linkage rationalization policy of GoI Mouda-II (2X660 MW) FSA has beenshifted from distantly located MCL mines to nearby WCL mine- specific sources therebyreducing cost of generation from the plant. Accordingly your Company has signed FSA for4.72 MMTPA with WCL. Further due to suspension of coal mining activities coal linkagesof Farakka and Bongaigaon with NEC (CIL) have been shifted to various other subsidiarycoal companies of CIL. However the transferred FSAs to this effect are expected to besigned in FY 2021-22.

- Linkage under Scheme to Harness and Allocate Koyla (Coal) Transparently in India(SHAKTI) policy for upcoming units: After grant of Long-term coal linkage by SLC (LT)during the year your Company has secured Letter of Assurance (LoA) 5.61 MMTPA forSingrauli-III from NCL.

Short Term Coal Supply Agreements Signed and coal supply agreement modified during thefinancial year 2020-21

Agreement with SCCL

- A bilateral Memorandum of Understanding (MoU) was signed with SCCL for financial year2020-21 with the validity of one year for a quantity of 8.00 MMT which can be furtherincreased to 10 MMT on best effort basis. The MoU was signed for supply of coal to Kudgiplant under Bridge Linkage and other stations of your Company as per requirement atNotified prices as per notification of SCCL applicable for power consumers.

Bridge Linkages

- Pursuant to recommendations of SLC (LT) GoI for grant of Bridge Linkage for BarauniExtn. Unit 8 and Unit 9 (2X250MW) for three years from the date of transfer /allotment oflinked Badam coal block your Company has signed Bridge Linkage MoUs with CCL and ECL for1.392 MMTPA and 0.426 MMTPA respectively both valid up to 31.3.2022. Further Bridgelinkage of Tanda Lara Kudgi and Darlipalli allocated by MoC under the Bridge Linkagepolicy to bridge the start of supply from the captive mines to requirement of coal ofplant is valid up to the 2021-2022. Further Bridge Linkage of Barh is valid up to2022-23.

- Your Company had been allocated short-term tapering linkage for Telangana-Phase- IProject (2X800 MW) from WCL (cost-plus source). During the year based on your Company'srequests SLC (LT) GoI in its meeting dated 27th July 2020 recommendedtransfer of the tapering linkage from existing WCL to nearby SCCL mines. The Taperinglinkage MoU for 6.846 MMTPA with SCCL is expected to be signed in FY 2122.

- To leverage potential of rationalization of coal linkages your Company had signed aSupplementary Agreement with CIL and CIL subsidiaries for all owned JV/ Subsidiarystations on 12.4.2017 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. During the year 2020-21 your Companyhas used 10.50 MMT of coal under Flexibility Utilization to address AFC under recovery andgeneration loss.

- As per directives of Govt. Central Institute of Mining and Fuel Research (CIMFR)started coal sampling in Jan. 16. During the period 2020-21 sampling is being done at allloading end sidings except Bukru and Phulbasia of CCL. Sampling at unloading end of allstations is already under progress.

Agreements for supply of imported Coal

- To mitigate the shortage of coal from domestic sources and for the blending purposeto improve the quality of coal your Company has awarded imported coal contracts forprocurement of 1.50 MMT in October 2019 and restored the contract of 2.25 MMT in March2019 for supply of imported coal to Mouda and Dadri. Your Company received 1.08 MMT ofimported coal during the financial year 2020-21. No fresh contract for import of coal hasbeen awarded.

14.1.2 Domestic Coal and Imported Coal Supplies

- During 2020-21 your Company received 173.09 MMT of Coal as against 174.84 MMT in2019-20. Out of 173.09 MMT of Coal 153.25 MMT was from Annual contracted quantity ofCoal 7.97 MMT through Bridge Linkage/SCCL Bilateral MoU 10.78 MMT from Captive Mines and1.08 MMT from Imported Coal.

14.1.3 Gas & RLNG supplies

- Your Company has long-term Gas Supply Agreements (GSAs) with GAIL for supply ofAdministered Price Mechanism (APM) gas and Non-APM gas which are valid upto 6thJuly 2021. These agreements may be extended based on Government of India (GoI) directions.Your Company also has a long-term agreement with GAIL for supply of 1.1 MMSCMD RLNG onfirm basis valid upto December 2023.

- To meet the shortfall in supply of long-term domestic gas/RLNG your Company procuresSpot RLNG on limited tender basis from domestic suppliers and on ‘Single Offer' basisfrom Public Sector gas marketing companies. These regasified liquefied natural gas (RLNG)supplies are contracted on ‘Reasonable Endeavour' basis with no penalty on eitherparty for short supply/short off take. Further your Company has started procuring SpotRLNG on commitment basis since March 2020 from domestic suppliers subject to consent ofthe beneficiary Discoms. Further adequate stock of liquid fuel is maintained for meetingGrid requirement.

- Further in line with Ministry of Petroleum and Natural Gas (MoP&NG) guidelinesfor ‘Clubbing/diversion of gas between two or more power plants' and with theapproval of Ministry of Power (MoP) your Company entered into arrangement with GAIL forflexibility of diversion of APM and Non-APM gases between its gas stations in NR and WRregion on daily basis. With the diversion of unutilized gas from the Company's WR stationsto NR stations additional 1.65 BUs (approx.) of electricity has been generated at NR gasstations during financial year 2020-21.

- During 2020-21 your Company received annual average 2.48 MMSCMD of Domestic gas asagainst 2.53 MMSCMD of Domestic gas received during 2019-20. Long Term RLNG & SpotRLNG off-takes during 202021 were 0.43 & 0.54 MMSCMD as against 0.49 & 0.14 MMSCMDduring 2019-20 respectively.

- There has been no loss of station availability on account of lack of availability ofDomestic gas / RLNG / Liquid fuel during the year.

14.2.1 Snapshot of Coal Mining Portfolio of your Company is as under:

- Your Company has seven coal blocks with an estimated mine capacity of 71 MMTPA.

- Your Company has achieved a total coal production of 11 MMT during FY 2020-21 andcumulative production was 32.36 MMT till the end of FY 2020-21.

- Pakri-Barwadih coal mine was declared commercial w.e.f 1.4.2019 with an estimatedmine capacity of 18 MMTPA. 7.07 MMT coal produced in FY 2020-21

- Dulanga coal mines was declared commercial w.e.f 1.10.2020 with an estimated minecapacity of 7 MMTPA. 3.12 MMT coal produced in FY 2020-21

- Coal extraction was commenced from Talaipalli w.e.f 1.11.2019 with an estimated minecapacity of 18 MMTPA. 0.81 MMT coal produced in FY 2020-21.

- Further Coal extraction targeted to start in Kerandari & Chatti-Bariatu coalblocks from FY 2023.

14.2.2 Development of Coal Mining Projects

Your Company has started coal production from three mines i.e Pakri-Barwadih Dulanga& Talaipalli. Other mines i.e. Chatti-Bariatu Kerandari & Badam are in variousstages of development. Development activities are also going on in Banhardih mineallocated to Patratu Vidyut Utapadan Nigam Ltd. (PVUNL) a subsidiary company incorporatedbetween your Company & Government of Jharkhand.

Further Pakri-Barwadih coal project of your Company has been awarded "AbherajBaldota Environment Award" for best Environment Management System by Federation ofIndian Mineral Industries (FIMI) New Delhi in FY 2020-21.

Amidst COVID-19 pandemic and stoppage of work for about 94 days during Jul-Nov'20 inPakri-Barwadih mine due to resistance of the villagers your Company has achieved a totalcoal production of 11 MMT from three mines during FY 2020-21. Cumulative 32.37 MMT of coalhave been produced from these three mines 26.21 MMT from Pakri-Barwadih 5.16 MMT fromDulanga and 1 MMT from Talaipalli till Mar'21.

For Chatti-Bariatu coal block all statutory clearances and priority land forcommencement of mining are available. NIT for appointment of Mine Developer and Operator(MDO) issued on 25.11.2020; Price Bids opened on

16.4.2021 are under evaluation.

In Kerandari coal block priority land and major statutory clearances are in placeexcept tree cutting permission from Jharkhand State Forest Department for which yourCompany is constantly pursuing. For this mine your Company earlier decided fordepartmental mining with limited outsourcing but against that tender response wasinadequate. So process has been initiated for appointment of a MineDeveloper-cum-Operator and NIT has been issued on 28.6.2021.

In Badam coal block though Stage-I Forest Clearance and Environment Clearance havebeen transferred to your Company by Ministry of Environment Forest and Climate Change(MOEF&CC) proposals for Stage-II Forest Clearance Government land transfer Mininglease etc. are pending with Govt. of Jharkhand for which your Company is constantlypursuing.

Your Company has incurred an expenditure about ' 39.33 Crore on community developmentin the coal mining projects and in the vicinity in FY 2020-21 (cumulative expenditure ofabout ' 233 Crore) which has helped in improving the socio-economic conditions of thelocal community.

In Mandakini-B coal block villagers were not allowing your Company and its agencies tocarry out the work of drilling site specific studies like SES EIA/EMP land acquisitionnotifications etc. since 2018 in spite of intervention of Dist. Admn./StateGovt./MOP/MOC. Your Company had no other option but to surrender the block to MOC on26.12.2020. Performance Security (BG) of ' 168 crore was encashed by MOC on 22.3.2021citing delay in achieving the milestones of efficiency parameters which were actuallybeyond the control of your Company. Your Company has approached MOP on 30.3.2021 to takeup the matter in AMRCD (Administrative Mechanism for Resolution of CPSEs Disputes) forresolution of the dispute on BG encashment.

Because of geo-mining constraints likely less percentage of coal extraction in twoadjacent coal blocks Banai & Bhalumuda and due to non-availability of any noncoalbearing land in the vicinity for OB dumping your Company has surrendered these two coalblocks to MOC on 26.12.2020.

14.3 Initiatives through Joint Ventures and Subsidiaries:

For Banhardih coal block being developed by PVUNL a subsidiary company incorporatedbetween your Company & Govt. of Jharkhand. in-principle approval of the mining planhas been accorded by MOC on 5.7.2021. For land acquisition Section 11 notification underThe Coal Bearing Areas (Acquisition and Development) Act 1957 (CBA Act) issued byMinistry of Coal (MOC) on 15.6.2021.

Your Company incorporated a wholly-owned subsidiary Company named NTPC Mining Ltd.(NML) for its coal mining business. MOC has allowed for transfer of Pakri-Barwadih coalmine of your Company to NML on 16.12.2020. Ministry of Coal (MOC) on 24.3.2021 conveyedthat the request of transfer of the other mines allotted under CMSP & MMDR Acts cannotbe acceded to. However your Company is still pursuing with MOC for the same.

15. BUSINESS EXCELLENCE: GLOBAL BENCHMARKING

Your Company has developed and adopted a customized business excellence Model called‘NTPC Business Excellence Model' on the lines of globally accepted PerformanceExcellence frameworks such as the Malcolm Baldrige Model USA and European Foundation forQuality Management (EFQM) Model of Europe.

The assessment process is aimed at identifying the areas for enhancing stakeholders'engagement improving critical processes and developing leadership potential. The outcomeof this model is identification of organizational strengths opportunities forimprovement issues of concern and best practices.

In the financial year 2020-21 twenty-two generating stations were assessed by a teamof certified assessors. Business Excellence Award for overall excellence was given to yourCompany's Singrauli project. Tanda has moved to next higher band as compared to last year.Ten stations are now at a higher band of 551-600. Capacity building in BE Model wasundertaken and 92 senior level executives were trained in 3 batches.

Other contemporary total quality management (TQM) concepts and techniques like ISOQuality Circles Professional Circles 5S etc. have been deployed across the organization.Dadri & Rihand Stations were certified by JUSE for 5S system. Annual ProfessionalCircle Convention of your Company was held at Meja Urja Nigam Private Limited (JV company)on 6th March 2021 where in 17 teams participated. Likewise Your Company'sQuality Circle convention was held at Lara on 13th March 2021 with 15 teamsparticipating. Both the events were organised "Online" on company's IT platform.Quality Circle team Anusandhan from Farakka station of your Company had qualified for theInternational QC Convention 2020 held at Dhaka Bangladesh.

16. RENOVATION & MODERNISATION

Renovation and Modernization (R&M) of various units of your Company especially theones which have completed 25 years of commercial operation is considered essential toachieve the objectives such as safe operation of the Units compliance of latest statutorynorms/revised Environmental norms/IEGC Code Recovery/improvement of Efficiency of theUnits Reliability Improvement flexible operations necessitated due to large scaleintegration of renewables Sustenance of operations considering equipment healthassessment observed during last 2 to 3 years overcoming constraints on account of currentoperating conditions (changes in coal quality water supply arrangements change in lawetc.).

Investment approval accorded till date for R&M in 20 stations (Coal & Gasbased) is ' 16049.24 crore. As against this cumulative expenditure till 31.3.2021 is '8571.78 crore which includes R&M capital expenditure of ' 538.34 crore duringfinancial year 2020-21.

As a responsible Corporate citizen it has always been your Company's endeavour toensure low levels of emission from its power stations. With a view to maintain a cleanatmosphere by reduction of particulate emission levels from generating stationsRenovation and Retrofitting of Electrostatic Precipitator (ESP) packages have been awardedfor 60 units in 20 stations totalling 16.70 GW and is under implementation. Out of total60 units work of 44 units have already been completed and for remaining 16 units worksare in progress.

With a view to overcome technological obsolescence Renovation of Control &Instrumentation (C&I) system has been taken up in nine (9) coal-based stationscomprising of total forty-two (42) units. Out of these 42 units work has been completedfor 35 units. Similarly Renovation of Control & Instrumentation (C&I) system hasbeen taken up in five (5) gas-based stations. Out of these 5 stations jobs completed infour (4) stations comprising of fifteen (15) Gas Turbines and seven (7) Steam Turbines.After completion of R&M C&I systems in these units will be nearly at par with thenew builds.

Your Company is also executing R&M of Steam turbines at its Ramagundam superthermal power station stage-I (3x210 MW) units and planning for R&M in few more units.These R&M interventions ensure life extension and restoration of heat rate towardsdesign values.

At Rihand Stage-I both Premier Air Pre Preheater (PAPH) of Unit#1 (NEI Design) werereplaced by new (PAPH) which improved heat rate and also increased ID fan margin. Withthis renovation the unit achieves 105% capability. Also Purchase order was placed forStage-I E Mill replacement by HP Mill which will reduce annual maintenance cost and alsoreduce auxiliary power consumption.

17. HUMAN RESOURCE MANAGEMENT

17.1 Your Company takes pride in its highly motivated and competent Human Resource thathas contributed its best to bring the Company to its present heights. The productivity ofemployees is demonstrated by consistent reduction of Man-MW ratio year after year. Theoverall Man-MW ratio for the year 2020-21 excluding JV/ subsidiary capacity is 0.32 and0.29 including capacity of JV/Subsidiaries. Generation per employee was 16.13 MUs duringthe year based on generation of your Company's stations.

The total employee strength of your Company (including JV/ subsidiaries) stood at18509 as on 31.3.2021 against 19165 as on 31.3.2020

Particular FY 2020-21 FY 2019-20
Your Company
Number of employees 16798 17398
Subsidiaries & Joint Ventures
Employees of your Company in Subsidiaries & Joint Ventures 1711 1767
Total employees 18509 19165

The attrition rate of your Company is very low as most employees choose a lifetimecareer with your Company. During FY 20-21 our employee turnover rate was 0.32%.

17.2 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 theyear.

Both employees and management complemented each other's efforts in furthering theinterest of your Company as well as its stakeholders signifying and highlighting overallharmony and cordial employee relations prevalent in your Company.

17.3 Safety and Security

Occupational health and safety at workplace is one of the prime concerns of yourCompany Management. Utmost importance is given to provide safe working environment and toinculcate safety awareness among the employees. Your Company has a 3-tier structure forOccupational Health and Safety Management namely at Stations/ Projects at Regional HeadQuarters and at Corporate Centre. Safety issues are discussed in the highest forum ofManagement like Risk Management Committee (RMC) Management Committee Meeting (MCM) ROPRORTs PRTs etc. Consultants are also engaged to strengthen process safety. On variousoccasions CMD and the board members addressed Senior leaders and employees.

23 of your Company's stations are already certified with ISO:45001 and other stationsare having OHSAS:18001 and are migrating to ISO:45001. The base line audit of four of thestations for international level NOSA accreditation in Safety and Environment has beendone. Certification auditing of these stations shall be carried out after the easing outof the current pandemic situation of COVID-19. Regular plant inspection and review withHead of Project/Station is being done to guide from time to time and to ensure that safetysystems are in place. Internal Safety Audits by team of Safety Officers are carried outevery year. External Safety Audits by reputed organizations as per statutory requirementare carried out for each Project/ Station. Recommendations of auditors are regularlyreviewed and complied with. Company level documents like Operation Directives (OD)Operation Guidance Note (OGN) Hazard Identification and Risk Assessment (HIRA) etc. havebeen prepared and shared with all stations. Specific Training modules for Contract workershave been launched and trainings as per job requirement is imparted by qualified andtrained persons to enhance the safety knowledge and competency of workers. Safety moduleshave been released by Power Management Institute (PMI) for learning and enrichingknowledge of the engineers working in O&M.

Various safety systems at work like Permit to Work (PTW) Job Safety Analysis (JSA)Standard Operating procedures (SOP) etc. are in place for ensuring safe work practices.Height work permit hot work permit confined space work permit and related check listsare implemented to ensure safety of workers while carrying out such specific jobs.Adequate numbers of qualified safety officers are posted at all units as per statutoryrules/ provisions to look after safety of men & materials. Emergency Management Planhas been prepared by each station. Trainings have been done by each station to explain theresponsibilities of key persons and regarding their role in handling of the emergencysituations. Mock drills are conducted regularly to check the effectiveness of the system.Mock drills were conducted with National Disaster Response Force (NDRF) to prepare for anyextreme on-site emergency. Sites are engaging the safety consultants of internationalrepute to uplift safety standards.

For strict compliance and enforcement of safety norms and practices by the contractorssafety clauses are included in General Conditions of Contract/ Erection Conditions ofContract. Non-negotiable safety terms and conditions are a part of the corporate awardedpackages during tendering.

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 British Safety Council Institute of DirectorsInstitution of Engineers (India) Safety awards instituted by different state governmentsApex Greenleaf Safety Foundation Greentech Foundation Global Safety Forum in recognitionof implementing innovative safety procedures and practices.

Security: Your Company has established and is maintaining a secure working environmentfor all its installations employees and associates by deploying CISF or SISF and/or DGRsponsored security agencies in all units as per norms / guidelines of Ministry of HomeAffairs and Department of Public Enterprises. Further time to time concrete steps arebeing taken for upgrading surveillance systems at all projects/ stations by installingstate-of-the-art security systems.

17.4 Training and Development

Your Company is successfully attracting grooming motivating and engaging talent. Itbelieves in sustaining the organization as a learning organization and ensuring commitmentand expertise at all times and situations so as to enable and drive business success. TheLearning and Development (L&D) delivery infrastructure comprises the Power ManagementInstitute (PMI) at the apex the 7 Regional Learning Institutes (RLIs) the Safety Academyat Unchahar and the Employee Development Centres (EDCs) at the stations. L&D isactively engaged in making our people future ready in terms of technology business acumenand leadership so as to unleash their full potential towards achieving the desiredbusiness outcomes in today's volatile uncertain complex and ambiguous (VUCA) world. Theinitiatives / programs are derived from business needs and designed to achieve theCompany's strategic objectives and create value for stakeholders.

PMI has the state-of-the-art physical and digital infrastructure to impart learning inworld class ambience. Its classrooms are equipped with modern facilities including smartboards video conferencing and sessionrecording which supports contemporary pedagogy.Delivery modes include classroom simulators outbound activities online (web based andVideo-Conferencing) Virtual Reality and e-Learning with increasing emphasis on technologydriven platforms. In fact in the wake of COVID-19 almost all programs are beingdelivered virtually on MS Teams / other such platforms.

Innovative practices like theatre workshop and CSR exposure form part of your Company'sflagship Executive Trainee program. Planned interventions [Foundation Course EnhancingManagerial Competence (EMC) and Advance Management program (AMP)] of 11 days are providedat three identified stages of careers of executives along with job-rotation and transferto ensure experiential learning. Total 1756 training programs were conducted during FY2020-21 resulting in a total of approximately 218582 learning man-days.

Your Company takes pride in being a people friendly organization and strives to ensuresafe workplaces. Through it's Safety Academy your Company is conducting safety relatedcertificate courses across the organization. In the year 2020-21 Safety Academy hascoordinated and facilitated 12 weeks program on Industrial Safety Engineering through IIT-Kharagpur via NPTEL SWAYAM online portal of Government of India. It has also organizedspecial interventions for Operation and Maintenance Heads through ASCI Hyderabad on Humanfactors in Safety and for developing safety competency of agency supervisors.

In a first of its kind initiative PMI started "NTPC Women Leaders AnnualConclave" on 8th March 2020 to celebrate women leadership encouragenetworking and facilitate women leaders from all walks of life inspire and connect witheach other. The second edition of the Conclave was held in 2021. Both the editions hadSpeakers from varied backgrounds like army navy science and technology sports andfitness entrepreneurship media and academia share their journey. Moreover gendersensitisation workshops are conducted both as standalone programs and as part of theplanned interventions and ET program to strengthen inclusivity Around 7700 executiveshave been provided the opportunity to undertake Harvard Manage Mentor (HMM) a Companysponsored online certification course. Operation and Maintenance executives are beingcovered under the GpiLearn Online technical competency enhancement modules whereindepending upon the station and department learning paths have been created for bothcore-function and cross-functional learning followed by assessments. The courses are beingaccessed over internet any time at any place through computer or mobile.

PMI has also associated with NASSCOM to provide online access to all executives of yourCompany for completing courses on emerging technologies like AI IoT Big Data AR / VRetc. and Project Management Digital Leadership Design Thinking etc. on the future skillsplatform. PMI is also providing instructor led online classes for participants who haveenrolled to some of these courses.

Considering the Covid pandemic a number of holistic wellness programs was conductedthrough external experts and reputed organizations like Isha Foundation Brahmakumarisetc. Families were also included by leveraging YouTube for delivering such programs.Innovative practices undertaken during the year were Coaching development of VirtualReality (VR) training modules online Employee Assistance (EAP) program on pilot basis andcommissioning of Simulator training at Tanda & Meja (JV Company) through remote atRLI Solapur.

Besides building capability by training employees across the power sector PMI isextending its support towards building capability among SAARC and African countries. Inthe year 2020-21 PMI has trained Engineering Executive trainees and executives fromChemistry from Bangladesh Malawi and Eritrea.

In the L&D domain your Company has received the globally acknowledged ATD BestAward for 2017 2018 2019 & 2020 Brandon Hall HCM Excellence Awards 2019 & 2020the nationally acclaimed ISTD award for Innovative Training Practices for 2017-18 2018-19and 2019-20 and the BML Munjal Award in the Sustained Excellence category for 2018(runner) and 2019 (winner).

17.5 Employee Welfare Trusts

Your Company has established following Trusts for welfare of employees: -

- NTPC Limited Employees Provident Fund Trust manages Provident Fund of employees ofyour Company.

- NTPC Post Retirement Employees Medical Benefit Trust manages post-retirements medicalbenefit fund of the employee including separated employee of your Company.

- NTPC Employee Gratuity Fund manages the gratuity fund of the employees for payment ofgratuity as per the "The Payment of Gratuity Act" of your Company.

- NTPC Limited Defined Contribution Pension Trust manages the defined ContributionPension fund of the Employee of your Company.

17.6 Women Empowerment

Women employees constituted nearly seven percent (as on 31.3.2021) of your Company'sworkforce. During the year programmes on women empowerment and development includingprogrammes on gender sensitization were organized. Your Company actively supported andnominated its women employees for programmes organized by reputed agencies. To maintainwork life balance and to manage career aspiration paid childcare leave is provided towomen employees. Further to improve the gender diversity your Company conducted a specialrecruitment drive for women.

17.7 Other Welfare Measures

In your Company an entire gamut of benefits from paid Childcare leave telemedicinemedical smart card for hospitalization cases to Post-retirement Medical benefits (PRMS) toFamily Economic Rehabilitation to Sneh Kiran Scheme are extended to employees to meet anyexigency that may arise in a person's life.

17.8 Employee Welfare & Quality of Work Life

Your Company is committed to provide quality work life for its employees. Far removedfrom the buzz of cities our townships are the epitome of serenity natural beauty andclose community living. A range of welfare and recreation facilities including schoolshospitals shopping centres recreation centres club gym pool etc. are provided at thetownships to enhance the quality of life and the well-being of employees and theirfamilies. In addition cultural programmes involving employees and their families are alsoconducted.

Further on the occasion on 6th International Day of yoga a session on yogaand meditation was organized for employees and their family at various Projects/stations/region/CC of your Company.

Your Company has partnered with Archery Association of India (AAI) through thispartnership your Company aims to provide platform to Indian youth to showcase theirtalent and elevate India's reputation in the field of Archery Globally.

Your Company has launched e-Paramarsh which helps employees and their families toaccess telemedicine and help to consult a Doctor in any of the reputed hospitals of thecountry.

Your Company had started online coaching facility for children of employees of yourCompany studying in classes 9th to 12th. The initiatives will helpthe children to get exposure of various professional courses and prepare for National andstate-level engineering and Medical entrance exams.

18. SUSTAINABLE DEVELOPMENT

Sustainability at your Company is being driven by two motives:

a. To make fundamental changes in the way we operate our businesses to transformourselves as the most sustainable power producer;

b. To become more transparent in the timely disclosure of our social environmental andeconomic performances.

To achieve the first objective your Company has become a pioneer among its peers(Power sector/ PSUs) by developing its Sustainability Strategies i.e. The Brighter Plan2032. As part of this strategy your Company has identified Decarbonization WaterBiodiversity Circular Economy Safety Supply chain and Business Ethics as prioritysustainability areas and strategizing on them to ensure the Company's businesssustainability. Your Company has developed short-term and long-term measurable goals andobjectives pertaining to these areas which is also aligned to the Company's Corporate Plan2032. Your Company has adopted the triple bottom line approach for focusing on peopleplanet and profit treating them as primary pillars for business sustainability. We believethat development should not endanger the environment & natural eco-systems.

Your Company has become one of the pioneers among PSUs to publish Integrated AnnualReport in FY 2020 in compliance with Global Reporting Initiative (GRI) standard and asper IIRC pattern. In the report SCOPE 2 & 3 data were also reported along with SCOPE1 emission data and Rain Water harvesting data. A credible and fair third-party assuranceof our Sustainability Report is a critical part of our sustainability disclosures. YourCompany received reasonable assurance (highest level) as per ISAE 3000 assurance standardby M/s KPMG.

Sustainable Development (SD) Plan for FY 2020-21 was prepared and approved by CSR &SD Board level Sub Committee of your Company. As part of SD agenda Your Company isfocusing on waste management water management promotion of renewable energy andbiodiversity / afforestation activities. Action plan based activities have beenimplemented at various stations of your Company during the year. To further strengthensustainable development activities following new initiatives were taken during 2020-21.

> Awareness programs on Sustainability/ESG and The Brighter Plan 2032 were organizedcovering all major stations/ regions/ departments of your Company.

> Development of Sustainable Supply Chain Policy for capacity building of oursuppliers on the evolving environmental social and governance/compliance aspects ofsustainable development.

> Your Company was declared winner of CII-ITC Sustainability Award 2ndtime in a row i.e. in year 2019 and 2020. It is one of the most coveted award forsustainability in the country. Winning the Award has placed your Company among the topperformers and further enhanced brand image of your Company.

> Your Company has increased frequency of regular communications with notable ESGrating analysts at global level to address controversies and sharing of data forimprovement of your Company ESG rating. Your Company has been covered as a Case Study inCA100+ Global Progress Report 2020.

> In collaboration with US-AID your Company is supporting a unique BiodiversityProject titled "Narmada Landscape Restoration Project" along River Narmadabetween Maheshwar and Omkareshwar dams. With an investment of about Rs 25 Crore thisproject will be benefitting the local population Indore City and Madhya Pradesh at largeas the project is aimed to enhance green cover improve water retention the cropdiversity including to promote organic farming and marketing.

18.1 Inclusive Growth Initiatives for Social Growth

18.1.1 Corporate Social Responsibility (CSR):

CSR has been synonymous with your Company's core business of power generation YourCompany's spirit of caring and sharing is embedded in its mission statement. Your Companyhas a comprehensive 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. CSR Policy was formulated in July 2004 and revised in 2010 2016and 2019 respectively as "NTPC Policy for CSR & Sustainability" in line withCompanies Act 2013 and Department of Public Enterprises (DPE) Guidelines for CSR. Itcovers a wide range of activities including implementation of a few key programmes throughNTPC Foundation- a charitable Trust set up by your Company to mainly serve and empower thePhysically Challenged and Under Privileged Sections of the Society & women.

Focus areas of your Company's CSR & Sustainability activities are HealthSanitation Safe Drinking Water and Education. Moreover Capacity Building WomenEmpowerment Social Infrastructure livelihood creation and support through innovativeagriculture & livestock development support to Physically Challenged Person (PCPs)and activities contributing towards Environment Sustainability have also been taken up.Your Company commits itself to contribute to the society discharging its corporate socialresponsibilities through initiatives that have positive impact on society especially thecommunity in the neighborhood of its operations by improving the quality of life of thepeople promoting inclusive growth and environmental sustainability.

Preference for CSR & Sustainability activities is being 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 500 villages and more than 450 schools have been benefitted by yourCompany's various CSR initiatives at different locations. Your Company's CSR initiativeshave touched in one way or the other the lives of around 18 lakhs people residing atremote locations.

Apart from the CSR activities undertaken in and around stations 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 ' 418.87 Crore during the financial year 2020-21 towards CSRinitiatives which surpassed the prescribed two percent amount of ' 278.57 Crore thusachieving a CSR spend of 3.04%.

18.1.2 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 your Company under CSRare covered in the Annual Report on CSR annexed as Annexure-VII to this Report.

18.1.3 Rehabilitation & Resettlement (R&R)

Your Company is committed to help the population displaced on account of land requiredfor execution of the projects and has been making efforts to improve the Socio-economicstatus of the Project Affected Families (PAFs). In line with its social objectives thecompany has focused on effective Rehabilitation and Resettlement (R&R) of PAFs andCommunity Development (CD) activities in Project Affected Villages (PAVs) and vicinity.

R&R activities are initiated at your Company projects by undertaking need basedcommunity development activities in the area of health education drinking watercapacity building infrastructure etc. by formulating ‘Initial Community Development(ICD) Plan' in consultation with concerned Panchayats District Administration and opinionmakers of the locality. Your Company addresses R&R issues in line with extant R&RPolicy of your Company/ Central Govt./ State Govt. Policy/ Guidelines with an objectivethat after a reasonable transition period the conditions of affected families improve orat least they regain their previous standard of living earning capacity and productionlevels. Your Company revised its R&R Policy 2010 in the year 2017 to incorporateR&R entitlements as per ‘The Right to Fair Compensation and Transparency in LandAcquisition Rehabilitation and Resettlement Act 2013' (RFCTLARR Act 2013). As per yourCompany's R&R Policy-2017 aligned in line with the RFCTLARR Act 2013 a Social ImpactAssessment (SIA)/Census Survey will be conducted by the State Govt. during the process ofland acquisition for the project so as to collect detailed demographic data of the areawhich shall form the basis for the preparation of ‘Rehabilitation and Resettlement(R&R) Scheme by the appropriate Govt. The R&R Scheme consists of measures forRehabilitation & Resettlement and need based CD infrastructure in Resettlement Colony(RC).

Additionally your Company in its R&R Policy 2017 has kept provision for need basedcommunity development (CD) activities to be taken up in project affected villages whereProject Affected Families (PAFs) continue to reside even after land acquisition as also invicinity of the project so as to ensure that the displaced families in the RC or theaffected families settling in neighboring villages may secure for themselves a reasonablestandard of community life.

Expenditures on implementation of R&R Plan is part of Capital cost of the projectand the Plan is implemented in a time bound manner so as to complete its implementation bythe time the project is commissioned. On completion of the R&R Plan implementation aSocial Impact Evaluation (SIE) is conducted by a professional agency to know the efficacyof the R&R Plan implementation for future learnings.

A. R&R Achievements during the year:

• Rehabilitation and Resettlement (R&R) Plan:

R&R activities were implemented at the Greenfield / Brownfield Thermal Powerprojects - North- Karanpura Darlipali Gadarwara Khargone Lara Kudgi TelanganaMouda Solapur Tanda-II Barh Meja NPGC Kanti Patratu Hydro projects - Tapovan-Vishnugad & Rammam-III and Coal Mining Projects at Pakri-Barwadih Chatti-BariatuKerendari Dulanga and Talaipalli as per the R&R/CD Plans which were finalized earlierin consultation & participation of the stakeholders and approved.

Re-appropriations in cost provisions of R&R/CD Plans as required on case-to-casebasis for specific projects and in view of request of stakeholders/ districtadministration were also approved to take care of the local needs & requirements.

B. Focus Areas for Community Development activities:

• Drinking water - Planning and implementation for access to drinking water for100% coverage of all project affected villages of your Company projects under constructionis being undertaken. Your Company's Policy- Jal Jyoti Mission embarks upon ensuring safedrinking water and rejuvenation of ponds in its project-affected villages.

• Capacity building/Skill upgradation - Training programs conducted by variousprojects towards skill enhancement. Specific focus is being kept on imparting training tovillagers on modern farming methods for improving the output. The support to dependents ofPAFs for ITI training was also extended by various projects.

• Education - Infrastructure created for Medical College-cum-Hospital atSundargarh (Odisha) is ready for handover to Govt. of Odisha. A portion of the same for200 bed facility is being used as Covid Care Centre cum Isolation ward for Corona virusinfected patients. Financial assistance extended towards upgradation of infrastructure andother basic amenities including setting up of latest equipment in the Govt. MedicalCollege at Raigarh (Chhattisgarh).

Construction of Engineering College at Shivpuri (MP) has been completed and academicsession 2020-21 has been started in on-line mode.

Support has been extended for construction of Hydro Engineering College Bilaspur(Himachal Pradesh). Building for Govt. Polytechnic at Dhak (Joshimath) was constructed.

Your Company has the Policy on Improving Learning Outcomes & Quality of Educationfor children studying in Government Schools of its project- affected villages

• Health - For the benefit of PAFs and neighboring population Mobile HealthClinics Medical camps and dispensaries are being operated for comprehensive healthcoverage of PAFs at various projects. Support extended to District AdministrationPeddapalli (Telangana) for augmentation of another floor and equipment at Govt. Hospital.Your Company has the Policy on Maternal and Child Health Care to provide 650 days ofantenatal/prenatal & postnatal preventive health care to expectant & new motherand new born babies.

• COVID-19 related support by your Company

S PPE Kits Ambulances Infrared Thermometers DG Set etc. to Uttarakhand.

S Installation of Ventilators at Hazaribagh Govt. Hospital.

S Covid ICU beds at District Hospital Khargone & Oxygen Bed Set-ups in 5 Blocks ofKhargone.

S Support extended by the Projects to the District Authorities and neighbouringcommunities by providing provisions such as food items beddings sanitizers masks etc.besides carrying out sanitization & awareness drives in villages.

18.2 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 along withoptimized usage of natural resource as inherent feature at the time of inception of allprojects and focuses its efforts to minimize the impact of its plant operations onsurrounding environment and concerned ecosystem.

Your Company undertakes comprehensive environment management plan right from conceptionof project selection of site source selection (Land Coal & Water resources) andtechnology for power generation and pollution control. In case of old stations yourCompany undertakes massive renovation & modernization to upgrade pollution controlequipment wherever necessary. Your Company has also taken initiative for installation ofFlue gas desulfurization (FGD) system for SOx emission control and optimization &implementation of appropriate technology for NOx emission control to comply with revisedemission norms as per stipulated timeline for respective station/unit.

In new projects around 18-23% of the project cost is spent on main environmentpollution control systems such as High Efficiency Electrostatic Precipitators (ESPs)Effluent Treatment Plant (ETP) Ash Water Recirculation System (AWRS) Coal Settling andSeparation Pit (CSSP) Dry Ash Extraction System (DAES) Dust Extraction & DustSuppression system (DE&DS) Sewage Treatment Plant (STP) Flue Gas Desulfurization(FGD) and DeNOx systems. For Online monitoring of emissions and effluent monitoringContinuous Emission Monitoring System (CEMS) Effluent Quality Monitoring System (EQMS)Continuous Ambient Air Quality Monitoring System (CAAQMS) are operational at all operatingstations and included in main EPC packages for the upcoming units/ projects. Your Companyhas adopted advanced and high efficiency technologies such as super critical boilers atnew stations DeNOx and FGD in all upcoming green field projects are under erection.

Your Company is augmenting its capacity with green power by installing Solar Powerhydel power and wind power in a big way hybrid power plant in combinations e.g. Wind& Solar Solar & Thermal and small hydel power systems attached to its thermalpower stations to encourage garnering of renewable energy resources. These measures areaimed not only to achieve reducing dependency on fossil fuel based thermal power it alsominimizes its contribution to pollution along with optimized consumption of preciousnatural resources. These efforts further lead to reduction in water and Carbon footprintsof your Company. All stations of your Company are ISO: 14001 certified or in process ofacquiring certification for their sound environment management systems and practices.

Your Company has signed Memorandum of Understanding (MoU) with Indian Institute ofTechnology Kanpur to conduct comprehensive study on Source Apportionment Study of airpollution at and around Dadri station to evaluate the contribution of various pollutionsources in ambient area of that region and contribution of coal based station inparticular if any.

Towards its commitment to reduce reuse and recycle the most prestigious naturalresource i.e. water in ecofriendly manner your Company has revised and released"Water Policy-2021" to minimize the water footprint to the extent possiblelevels on basis of techno-economic approach in Company's operations.

Your Company has signed CEO water mandate on 23.3.2021 which is a highly collaborativepartnership between the United Nations Global Compact the Government of Sweden and agroup of committed companies and specialized organizations dealing with the problems ofwater scarcity and sanitation. CEO Water mandate is designed as a private-publicinitiative with a focus on developing strategies and solutions to contribute positively tothe emerging global water crisis.

18.2.1 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 maintain Particulate Matter (PM) emissions well below the applicablepermissible limits. All upcoming units have been planned & designed with state of artAir Pollution Control systems (ESPs DeNOx and FGD system) with high efficiency to meetnew emission norms. Performance enhancement of ESPs operating over the years is beingenhanced to achieve the desired emission level by augmentation of ESPs size (increasedheight additional fields charging of dummy fields retrofitting of advanced ESPcontrollers new technology i.e. MEEP (Moving electrode Electrostatic Precipitators) andadoption of sound O&M practices. Your Company has planned for Renovation &Modernization of ESPs in 64 units out of which R&M work of ESPs has been completed in48 units and in balance 16 units work is in progress as per schedule.

For control of SOx first wet FGD has been commissioned and become operational atVindhyachal Station. Your Company has commissioned Dry Sorbent Injection (DSI) based FGDin four units of Dadri Stage-I. Erection of wet FGD at Dadri Stage-II is in advancedstage. FGD based of dry sorbent injection (DSI) system erection work is in advanced stageof erection in two units of Tanda (Stage-I) to meet the emission norms for SOx. YourCompany has awarded FGD packages for 60 GW+ capacity and execution are in progress tocomply the new norms for SOx emission as per the timeline Notified by MoEF & CC videnotification dated 31.3.2021.

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 lower down the NOx emission to the extent possible levelscombustion modification has been awarded for 20 GW+ capacity. Combustion modification workin 16 units has already completed and in balance units work shall be completed in nextscheduled overhaul. To comply with new norms for NOx emission pilot study based onSCR/SNCR technology was conducted and report was submitted to concerned authorities forconsideration and finalization of technically viable emission limit and finalise theoptimal solution and suitable technology for DeNOx system suitable for Indian Coal.

Change of secondary fuel from HFO to alternative fuel (LDO or LSHS having low sulfurcontent) scheme implemented in all stations of your Company in NCR and state of UP andHaryana to minimize the SOx emission during the startup of coal-based units.

Your Company has installed Dust Extraction and Dust Suppression systems in coal crusherhouse transfer points coal staking yard and coal unloading locations in the CHP areas ofall coal-based stations. Your Company has taken appropriate measures for fugitive dustcontrol system in ash handling areas and ash dyke areas to mitigate chance of fugitivedust scenario.

18.2.2 Control of water pollution:

Your Company as a responsible corporate entity for environment has proactivelyinitiated steps towards water stewardship in power generation sector. Your Companyreleased its revised Water Policy - 2021 and Rain Water harvesting Policy-2018 to set itsown benchmark in water consumption in power generation by setting its aim and objectivesfor various water conservation and management measures by using 3Rs (Reduce Recycle &Reuse) as guiding principle. Water bodies rehabilitation rejuvenation & restorationwater withdrawal optimization depending on the sustainable water withdrawal capacity andrejection of water bodies as probable water source which are recognized asenvironmentally sensitive due to their relative size and habitat for ecologicallysensitive species.

All stations of your Company are equipped with advanced waste water treatmentfacilities such as state of art technology based Sewage Treatment Plant (STP) LiquidWaste Treatment Plants (LWTP) Coal Slurry Settlement Pit (CSSP) Ash Water RecirculationSystem (AWRS) for treatment and reuse of treated effluents. For optimum use of water allstations of your Company are having closed cycle condenser cooling water systems withhigher Cycle of Concentration (COC). Adoption of high concentration slurry disposal (HCSD)system rain water harvesting system reuse of treated effluent in ash slurry disposal andreuse of treated sewage effluent for horticulture purposes are few measures implemented inall stations. For effective monitoring of water use flow meters with integrators havebeen installed at all designated locations in all stations of your Company.

In view of water stressed scenario and new norms for specific water consumption waterconservation and reduction in specific water consumption enables your Company to ensurecompliance of new norms on specific water consumption. Your Company has planned to installAir Cooled Condenser at new projects at Patratu (Subsidiary Company) and North Karanpurawhich will be trend breaking initiative in specific water consumption in power sector ofcountry.

18.2.3 New Environmental Norms Implementation Plan and Challenges:

> SOx NOx & SPM reduction

Indian power sector is undergoing a significant change that has redefined the industryoutlook. The focus has now shifted to ensure a safer environment along with sustainablepower generation. Being the premier power generating company in the country the onus ison your Company for achieving the stringent new emission limits for the power plantsacross the country.

In order to comply with the applicable new environmental norms notified by MOEF &CC vide gazette notification dated 7.12.2015 pertaining to SO2 FGD system willbe required to be installed in the existing as well as under construction coal fired powerplants. Your Company along with its JV Companies is having around 149 units (operatingunits as well as under construction units) of 64.40 GW capacity. Your Company is taking alead role in the implementation of FGD. Your Company has already issued tenders for allunits that covers operating as well as under construction units. Further FGD inVindhyachal Stage-V is already in operation and Dry Sorbent Injection (DSI) system (forreduction of SO2) is commissioned in 4 units of 210 MW at Dadri Station of yourCompany. FGD installation Work in 58940 MW is underway. This has also set up an examplein the Industry for your Company's commitment towards the greener environment.

As a corporate trend setter your Company is also providing consultancy forinstallation of various environmental control system to state utilities like HPGCL PSPCLUPRVUNL DVC SSCL NALCO etc. Your Company is also continuously assisting CEA/MoP informulating various measures in implementing new environmental norms.

For controlling the NOx various De-NOx technique shall be implemented based on thelimits prescribed in the norms. Your Company has started working on this. CombustionModification in 15 units of around 7 GW including units located in NCR i.e. 2 units ofDadri 3 units of Jhajjar have already been completed. Further award is already placedfor Combustion modification for 34 units of around 14 GW. According to the latestenvironmental norm NOx emission from power plants will have to be below the limit of 100mg/N.Cu.m. Selective Catalytic Reduction (SCR) is a proven technology for low ash coal forNox emission control however it is yet to be proven for abrasive & high ash contentIndian coal. In view of this Pilot tests have been conducted at seven stations of yourCompany by various SCR system suppliers to assess the suitability of SCR technology forIndian coal. Results of the tests submitted to Hon'ble Supreme Court. Hon'ble SupremeCourt has constituted a committee to review the NOx norm. Based on decision on NOx Normplan & strategy for future will be prepared.

For particulate emission reduction most of the units of your Company are complyingwith the SPM norms. ESP R&M is underway in around 5 GW capacity in 16 units formeeting the new environmental norm.

The SO2 & NOx emission levels in the country will plummet to 30% of whatit is presently after installation of FGD technology even after adding capacity of another70 GW from the present year.

> Facilitation for Ash Utilization

To facilitate ash utilisation in recent time your Company has taken variousinitiatives like installation of dry bottom ash handling system installation ofde-watering bins rail loading system for transportation of dry fly ash feasibility studyfor large capacity Silo etc.

Dewatering bins for bottom ash are under implementation stage in North KaranpuraStation. It is also under planning stages in few other projects/stations of your Companylike Ramagundam Sipat Korba Barauni etc.

In its endeavor to promote fly ash utilization your Company is consideringimplementation of fly ash classification and Bagging Plant system for its future coalbased thermal power projects. Further feasibility report has been prepared forimplementation of Classification system & Technical Specification of Bagging plant hasbeen prepared for studying the feasibility of installation of bagging plants in yourCompany's different coal fired power stations.

Large scale ash utilization will be supplemented greatly when huge quantities of ashproduced from coal fired thermal power plants could be transported to the distant locationwhere demand of ash is more. To transport ash from power stations to distant demandCentres rail transportation is being actively considered. To facilitate railtransportation of fly ash ash rail loading system is under implementation in yourCompany's upcoming and under-construction coal fired projects. Further plans are afootfor provision of such ash rail loading system in various operating power stations likeBarauni Sipat Singrauli etc. Furthermore for enabling temporary storage of massivequantities of fly ash at demand Center initial study for construction of large capacityfly ash Silo at distant demand centre has been made. For unloading of huge quantities offly ash from railway wagons at demand Centre Technical Specification for fly ashunloading system from railway wagons has been prepared for implementation at DadriStation. Discussions are also underway with Railway for required logistic supports.

18.2.4 Real Time Environment Monitoring System

Your Company remains a benchmark setter in Environment monitoring & protection. Aspioneer in environment monitoring your Company have already installed Ambient Air QualityMonitoring Stations (AAQMS) consisting of SO2 NOx CO PM2.5 PM10 analyzersand Continuous emission monitoring systems (CEMS) consisting of SO2 NOx COCO2 Particulate matter analyzers for Stack emission and Effluent QualityMonitoring System (EQMS) consisting pH Conductivity BOD COD TSS oil in wateranalyzers for Effluent monitoring in all our Stations/ Units of your Company.

Mercury analyzers for emission and air monitoring are installed in all 800 MW units ofyour Company.

All required environmental monitoring data is made available to CPCB & SPCB as pertheir requirement online.

Your Company is already installing additional air and water pollution control systemsat various projects to comply with the applicable new environmental norms notified by MOEF& CC vide gazette notification dated 7.12.2015.

Your Company has brought out Bio-Diversity Policy on 31.7.2018 and developed strategyfor its implementation in and around its business units for conservation and enrichment ofbio-diversity.

18.2.5 Tree Plantation:

Your Company has undertaken massive tree plantation in mission mode covering vast areasof land in and around its projects/stations since inception. A total of more than 36million trees have been planted throughout the country under accelerated afforestationprogramme. Your Company planted 1 million saplings during financial year 2020-21 evenafter COVID-19 pandemic.

After successful demonstration of pilot project based on Miyawaki plantation technologyat Ramagundam station during 2019-20 your Company has replicated the Miyawaki plantationtechnology based plantation work at 5 stations during 2020-21 and planted more than 18000saplings whose biomass production per unit area is 16 times higher than the conventionalplantation. Replication of this technology in plantation will create more efficient carbonsink for your Company.

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 byplanting 5 million saplings during 2021-26 @ 1 million per year.

Your Company has also entered into long-term MoUs with state Authorities to assistNational Commitment of Nationally Determined Contributions in COP 21 by planting 7million saplings between 2019-26 @ 1 million per year.

18.2.6 ISO 14001 & OHSAS 18001 Certification:

Amongst all commercially operational stations of your Company 19 stations have ISO -14001 and OHSAS 18001 certifications and for four stations certifications are underrenewal by reputed National and International certifying agencies in recognition of itssound environmental management systems and practices. Certification is in process fornewly commercial stations of your Company.

18.3 Quality Assurance and Inspection (QA & I)

Your Company lays great emphasis on the quality of plant and machinery that are sourcedfor power plant construction and also on the spares and consumables that are required tosupport the day-to-day operations of your Company.

The model followed for Quality Assurance seeks to ensure that the Plant Reliability isrealized through thoughtful planning and building. Quality attributes start from rawmaterials manufacturing inspection and testing up to erection and commissioning. Eachitem/ sub-system required for construction is subject to rigorous tests and inspection atthe appropriate stages to ensure conformity to specified requirements.

Your Company has committed adequate resources for maintaining effective QualityManagement System. This includes Corporate level Quality Assurance team InspectionEngineers at various locations and Field Quality experts at projects/ sites of yourCompany.

Your Company's robust performance on all operational parameters is a testimony to thesoundness of the quality system which is in operation. Your Company is represented invarious technical committees of ISO BIS and IEC and is actively contributing inupgradation of power sector related standards and technology to promote align with bestpractices followed internationally.

Your Company's digitalization initiatives are further strengthened with the launch ofIntegrated PRADIP (ProActive and Digital Initiatives to become Paperless) based QA & Ibusiness processes.

COVID-19 pandemic has not deterred your Company in carrying out inspections and testingat Vendors' works despite several travel restrictions imposed during lock down period.Your Company has utilized digital technologies in carrying out Remote inspections atvendors premises this year by various Regional Inspection Offices (RIOs) therebymaintaining the continuity of project supplies with specified quality.

18.4 Clean Development Mechanism (CDM)

Your Company is pioneer in undertaking climate change issues proactively. Your 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.

15 MW Solar PV Power project at Singrauli 10 MW Solar PV project at Talcher and 10 MWSolar PV Power Project at Unchahar is registered in 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. Another 5842 nos. ofCERs have also been issued by UNFCCC CDM Executive Board for 5 MW Solar PV Power Projectat Dadri and 21011 nos. of Certified Emission Reductions (CERs) has been issued for 5 MWSolar PV Power Project at Faridabad. Further 80278 nos. of CERs are expected shortlyafter completion of verification exercise of 50 MW Rajgarh Solar project of your Company.

Registration of 50 MW Solar PV power project at Anantpur 260 MW Solar PV power projectat Bhadla 250 MW Solar PV power project at Mandsaur and 50 MW Wind power project atRojmal has been done in Verified Carbon Standard (VCS) program. A total of 1085005Voluntary Emission Reduction (VERs) has been issued for these projects registered with VCSBoard. Further 2117005 VERs are expected shortly after completion of verificationexercise of these projects.

Prior consideration forms have been sent to United Nations Framework Convention onClimate Change (UNFCCC) and Ministry of Environment and Forests (MOE&F) for ourupcoming following Solar Projects: 140 MW and 85 MW at Bilhaur 20 MW at Auraiya100 MWfloating solar at Ramagundam 25 MW floating solar at Simhadri 70 MW & 22 MW floatingsolar at Kayamkulam 160 MW at Jetsar 20 MW floating solar at Auraiya 20 MW at Rihand400 MW CPSU Scheme Tranche -I projects and 1292 MW CPSU Tranche-II projects.

18.5 Ash Utilisation

During the year 2020-21 624.56 lakh tonnes of Ash was generated and 77.83 % viz.486.07 lakh tonnes of Ash had been utilized for various productive purposes by yourCompany.

Important areas of Ash utilization are - Cement & Asbestos industry Ready MixConcrete plants (RMC) Road Embankment Brick making Mine filling & Land development.10 nos. of your Company stations achieved Ash utilization value of 100 % or above. YourCompany is also pursuing new initiatives for Fly Ash utilization like Fly Ash basedGeo-Polymer Road setting up Ash based Light Weight Aggregate (LWA) plant. Transportationof Ash started through your Company owned BTAP rakes from Rihand station of your Company.

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 and Tilesmanufacturers on priority basis over other users from all Coal based Thermal PowerStations of your Company. The fund collected from sale of Ash is being maintained inseparate account and this fund is being utilized for development of infrastructurefacilities promotion 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 product. This policy aims atmaximizing 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 during2020-21 from your Company's Stations is at Annexure - VIII of this Director Report.

18.6 Centre for Power Efficiency and Environmental Protection (CenPEEP) - towardsenhancing efficiency and protecting Environment

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 of your Company.

CenPEEP is working for efficiency and reliability improvement in stations throughstrategic initiatives development and implementation of systems performance andguarantee tests in new units and introduction of new techniques & practices. Criticalefficiency parameters draft power consumption efficiency improvement through overhaulingare monitored. PI based real time programs and dashboards are in use for real timetracking of plant parameters. These programs also assist operating engineers in trackingthe gaps in heat rate and auxiliary power consumption trending the degradation ofequipment performance and taking corrective measures.

Your Company initiated a unique voluntary program of GHG emission reduction byestablishing CenPEEP and under this program it is estimated that cumulative CO2 avoidedis 53.78 million tonnes since 1996 by sustained efficiency improvements in your Company.

CenPEEP is also working towards reduction in specific water consumption and auxiliarypower consumption in coal and gas stations of your Company. A dedicated group conductsregular energy audits to identify potential improvement areas and improvement actions.Further CenPEEP is also associated in carrying out water audits of stations and takingcorrective actions for reduction in water consumption.

Water Withdrawal per year (in lakh KL)

Sl. No. Type of Water Quantity Consumed 2020-21
1 Total Water withdrawal 5908.87 Lakh KL*
2 Per unit withdrawal 3.03* Litre/kwh

* Your Company's coal and gas stations on closed cycle system.

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 performance improvement ofBoiler & Auxiliaries Turbine & Auxiliaries Cooling Towers new technologies likeRCM PdM technologies etc.

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 of your Company.

CenPEEP coordinated implementation of Perform Achieve & Trade (PAT) scheme underPrime Minister's National Mission on Enhanced Energy Efficiency (NMEEE) in your Company'scoal & gas plants. As per notification Company's coal and gas stations exceeded theNet Heat Rate improvement targets and earned net 170653 EScerts (Energy savingcertificates) in PAT-1 cycle. Your Company participated in EScerts trading & purchasedrequired EScerts. Subsequent to the trading your Company is having 161759 EScerts thatwill be used for PAT - II cycle. After completion of PAT cycle - II & III in March2019 & March 2020 respectively M&V audits have been carried out in all stationsof your Company. Notification of EScerts earned in PAT cycle - II & III is awaited.

Your Company has taken an initiative for complete replacement of existing lighting withLED light fittings at its all stations including townships. Till March 2021 12.2 lakh LEDfittings (94.80% of the population) have been replaced on Pan NTPC basis.

19. NTPC Energy Technology Research Alliance (NETRA)

Your Company understands the importance of R&D in the ever-changing dynamics of theenergy sector. It also firmly believes that assimilation of knowledge and its conversioninto technologies shall be the key differentiator in coming times. Technological progressthus achieved in aggregation improves the country's energy security economic growth andenvironmental sustainability. Concurrently it plays a crucial role in determining thecompetitiveness of companies in the marketplace - both nationally and internationally.

We in your Company fully recognize R&D as the cornerstone of technologicaladvancement. Therefore we have incorporated R&D in our long term vision and strategyfor the benefit of the Company and society at large. Your Company has been assigning morethan 1% of PAT consistently for R&D related activities.

As we gaze towards the future it is of paramount importance that your Company as powergeneration company needs to adapt to counter emerging challenges of power sector and atthe same time it is equally important that we as a company should increase our presenceacross entire electricity supply chain and R&D is a vital step to achieve that. YourCompany has always taken upon itself to incorporate innovative technologies to enhance thesafety reliability and efficiency of power plants through a prudent mix of developmentadoption and adaption of frontier technologies. Through our R&D center NETRA (NTPCEnergy Technology Research Alliance) we are constantly making efforts to address themajor concerns of the power sector - as well as exploring and tapping the potentialopportunities available.

The focus areas of NETRA are - Efficiency Improvement & Cost Reduction; New &Renewable Energy; Climate Change & Environmental protection which includes waterconservation Ash utilization carbon capture and utilization & Waste Management.NETRA also provides Advanced Scientific Services to its stations and other utilities inthe area Non-Destructive Examination (NDE) Metallurgy & Failure analysis Oil/waterchemistry Environment Electrical Computational Fluid Dynamics (CFD) etc. for efficientand reliable performances. NETRA laboratories are ISO 17025 accredited.

Our R&D activities are constantly guided and steered by the Research AdvisoryCouncil (RAC) comprising of eminent scientists and experts from India and abroad. PadmaBhushan Dr. V.K. Saraswat former Secretary DRDO and member of NITI Aayog is theChairman of RAC. In addition the Scientific Advisory Council (SAC) having FunctionalDirector Director (Operations) and other senior executives your Company as members whogives direction for improving plant performance & reducing cost of generation.

At NETRA our focus is both on in-house technology development as well as collaborativeresearch. We have networked with various prestigious national and internationalinstitutions to harness the specialized knowledge and expertise lying with thoseinstitutes. By collaborating with various institutes we have been successful in promotingresearch in the field of Ash

Utilization Hydrogen Carbon Capture Sensors CFD Robotics Drones RenewablesEnvironment NDE and Water chemistry etc. NETRA has collaborations with NationalInstitutes such as IIT-Delhi I IT - Bombay IIT - Madras IIT - Kanpur IIT - KharagpurIIT Dhanbad IISc - Bangalore RGIPT - Amethi CSIR lab's such as IIP - Dehradun CMERI-Durgapur CGCRI- Kolkata NCCBM- Ballabgarh CBRI - Roorkee etc. We have alsocollaborated with international institutions such as NETL-USA CurtinUniversity-Australia; DLR - Germany and ISE-Germany etc. Various institutional buildingactivities such as training programs workshops on various topics such as Advanced NDE& Metallurgy etc were conducted. NETRA journal compendium of Metallurgy focused casestudies compendium on advance NDE methods and numerous research papers were published.

Further to boost our R&D activities the Phase-II Building of NETRA is underconstruction.

20. 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 progressive use of Hindi and the ways and means tobring about further improvements.

Hindi Divas was celebrated on 14th September 2020 and Hindi Fortnight wasorganized from 1-15 September 2020 at the Corporate Centre as well as regionalheadquarters and projects/stations of your Company to create awareness among theemployees associates and their family members. Your Company biannual Hindi magazine"Vidyut Swar" was published (in digitized form) to promote creative writing inHindi. We have been awarded the 2nd prize in the best magazine category byTOLIC (NARAKAS).

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 of your Company.

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.

21. WEB BASED CONTRACTORS' LABOUR INFORMATION AND MANAGEMENT SYSTEM (CLIMS)

Your Company has implemented an in house ‘captive private cloud' based solution;‘Contractors' Labour

Information Management System (CLIMS)' to streamline the labour management processesto ensure physical and social welfare of workers statutory compliances and to getaccurate picture of real time availability of workers.

It has also resulted in proper keeping of records in a digitalized format and ensuringthat the wages and other benefits of labourers deployed at Plants of your Company aredisbursed correctly and in time. The CLIMS application also has inbuilt features likebio-metric attendance medical fitness safety training/ clearances ESI registration andother regulatory checks.

22. VIGILANCE

22.1 Vigilance Mechanism:

To ensure transparency objectivity and quality of decision making in variousoperations your Company has a Vigilance Department headed by Chief Vigilance Officer. TheVigilance set up in your Company consists of Vigilance Executives in Corporate Centre aswell as in sites. In sites the Vigilance Executives report to the Project Head inadministrative matters and they report to the Chief Vigilance Officer in functionalmatters.

Corporate Vigilance Department consists of four Cells as under:

• Vigilance Investigation and Processing Cell

• Departmental Proceedings Cell

• Technical Examination Cell

• MIS Cell

These cells deal with various facets of vigilance mechanism. The vigilance works havebeen assigned region-wise to Vigilance officers at Corporate Centre (Regional VigilanceExecutives) for speedier disposal. Senior officials of Vigilance Department comprising GM(Vigilance) Regional Vigilance Executives and Head of DPC/MIS Cell meet regularly todiscuss common issues in order to ensure uniform working in all Regions. This facilitatesTransparency efficiency and effectiveness of Vigilance functionaries by making use ofcollective knowledge experience and wisdom of Vigilance Executives as well as breaking ofcompartmentalization and abridging of strengths & weaknesses.

22.2 Vigilance work during FY 2020-21

Regarding Investigation of Complaints during the year 2020-21 a total 84 complaintswere investigated & out of these 64 complaints have been finalized while the remaining20 are under various stages of investigation as on 31.3.2021. Appropriate disciplinaryaction has also been initiated against the involved employees along with systemimprovements wherever found necessary. 187 Surprise Checks were conducted during theperiod and recovery of ' 4632242 was effected against various discrepancies detectedduring investigation. During the last year a total of 34 Preventive Vigilance Workshopswere conducted at various projects/ places of your Company.

22.3 Implementation of Integrity Pact

Integrity Pact has been implemented in your Company since 2009. Presently tendershaving estimated value of '10 Crore (excluding taxes and duties) and above are coveredunder the Integrity Pact.

22.4 Implementation of various policies

Fraud Prevention Policy has been implemented in your Company and suspected fraud casesreferred by the Nodal Officers to Vigilance Department are investigated immediately toavoid/stop fraudulent behaviors as defined in "Fraud Prevention Policy". WhistleBlower Policy has also been in place at your Company as per SEBI guideline to strengthen aculture of transparency and trust in the organization providing employees with aframework/ procedure for responsible and secure reporting of improper activities (whistleblowing) within the Company and to protect employees wishing to raise a concern aboutimproper activity/serious irregularities within the Company. A complaint handling policyis also in place which is designed to provide guidance on the manner in which your Companyreceives and handles complaints against its employees suppliers / contractors etc.

22.5 Vigilance Awareness Week - 2020

In line with the directive from Central Vigilance Commission (CVC) vide Circular ref.no. 020/VGL/036 dated 8.9.2020 Vigilance Awareness Week 2020 has been observed in all theOffices and Power plants of your Company including the Joint Ventures and Subsidiariesspread across the country from 27th October to 2nd November 2020 onthe given theme -"Vigilant India Prosperous India".

To align all your Company Units for conducting the Vigilance Awareness Week-2020 (VAW2020) activities with strict adherence to extant COVID - 19 prevention guidelines strictcompliance to the economy measures issued by the Ministry of Finance vide the Departmentof Expenditure OM No. 7(2)E. Coord/2020 dated

4.9.2020 and following the code of conduct guidelines where elections were scheduledreview meetings were conducted through video conferencing with all sites on

5.10.2020 and 22.10.2020. The meetings were chaired by CVO of your Company and attendedby Regional Heads of HR Coordinators as identified for VAW 2020 and Vigilance executivesfrom all locations of your Company.

Following activities were undertaken to observe VAW 2020: -

I. Administering Integrity Pledge

Vigilance Awareness Week 2020 formally commenced on 27.10.2020 with administration ofIntegrity-Pledge. At the Corporate Office the pledge was administered by CMD of yourCompany. At Regional Head Quarters concerned Regional Executive Director administered thepledge and at the power plants the pledge was administered by respective Business UnitHead. This was done mostly on the digital platform of MS Teams and through VideoConferencing.

II. Publicity

Banners were displayed at strategic public locations inside plant premises andprominent locations in townships on "Vigilant India Prosperous India".E-banners were widely used in local digital displays/ notice boards and online trainingsand activities on the VAW theme. As a part of public outreach and to disseminate awarenessmessages in surrounding areas pamphlets were distributed and hoardings were put up on theVAW theme. Awareness messages and wide publicity for general public was done throughpublishing.

III.Competitions/Activities involving employees and stakeholders

Various activities were scheduled during this week for employees their spouseschildren other residents in townships and contract labours to generate vigilanceawareness among wide section of the society and further in city based locations nearbycolleges were involved in some of the thought provoking activities whereby theirsuggestions for Vigilant India were sought for.

IV. Trainings /Workshops

As a part of public outreach and interact with the young citizens of the country a talkon "Vigilance Awareness for nation building" was delivered by CVO of yourCompany for students of Dayal Singh Evening College Delhi.

Three online Preventive vigilance courses were conducted by internal faculties fromVigilance department during this period whereby 504 employees joined the same fromdifferent location of your Company. In various power plant sites lectures were organizedwhere faculty from local district administration CBI and retired senior executives fromVigilance function had delivered talks on role of an organization in curbing corruptioncybercrimes etc.

Gender sensitization workshops were held in different units. During this occasionOnline suggestion was sought on gender equality by your Company and the same is undercompilation.

V. Suggestions/Feedbacks/Grievance redressal of Stakeholders

Online Vendor meets were organized by Contracts and Materials department in the SharedService Centre (SSC) groups in different regions. The participants were administeredIntegrity pledge. Vendors were apprised about the new initiatives taken by your CompanyGovernment e-procurement policy MSME online payment status system vendor coderequirement etc.

22.6 System improvement measures undertaken during 2020-21

1) Modification of HRA Policy

On the basis of suggestion for system improvement from Vigilance Dept. your Company'sHouse Rent Allowance was comprehensively reviewed and revised HRA Rules have beenintroduced on 17.9.2020.

2) Revised Policy and Procedure of Withholding and Banning of Business Dealings

Policy and Procedures for Withholding and Banning of Business Dealings have beenrevised on 29.8.2020 where pending investigation provision to suspend business dealingswith agency which is alleged to have committed fraud has been introduced The revisedpolicy and procedure of withholding and banning of business has been made applicable onyour Company as well as its Joint Ventures & Subsidiaries Company.

3) Digitization of Complaint Handling system

Complaint handling system has been digitized reducing the process cycle timesignificantly as compared to physical file movement. Records are instantly available insystem. Various reports can be automatically generated by the system thereby allowing moretime for value addition activities by your Company.

4) Preventive Vigilance Modules in Mid-career trainings

On the advice of the Central Vigilance Commission 2 days' module on preventivevigilance has been made mandatory in all planned intervention training programs forexecutives at different grades.

23. REDRESSAL OF PUBLIC GRIEVANCES

Your Company is committed for resolution of public grievance in efficient and timebound manner. General Manager (HR) 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 (GoI) 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.

24. RIGHT TO INFORMATION (RTI)

Your Company has implemented Right to Information Act 2005 in order to provideinformation to citizens and to maintain accountability and transparency. Your Company hasput RTI manual on its website i.e www.ntpc.co.in for access to all citizens of India andhas designated a Central Public Information Officer (CPIO) an Appellate Authority andAPIOs at all sites and offices of your Company.

During 2020-21 there were 1712 applications (including 179 pending applications fromFY 2019-20) out of which 1666 were replied and 46 are pending to be replied/ resolvedunder the RTI Act 2005. Further under the section 4(1 )(b) of the RTI Act your Companyalso got audited its voluntary disclosures by Indian Institute of Public Authority (IIPA)New Delhi.

25. 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. Since 2008 your Company has implemented EnterpriseResource Planning (ERP) application to integrate all its business functions. PI datasystem has been implemented to capture display and analyze the plant performanceparameters on real time basis which is helping the operation and maintenance of yourCompany power plants. Non-ERP web-based applications have been developed in balance areassuch as Engineering Drawings approval Quality Control Management Hospital ManagementContract Labour Management Transit Camp Management RTI Security Control Safety Ashutilization etc.

As a commitment towards environment your Company has re-engineered and redesigned thebusiness processes to paperless mode. The digitization initiative in the form of ProjectPRADIP resulted in implementation e-Office digitization of documents and paperlessprocesses for different functions. This has not only saved tons of paper but also resultedin faster decision making transparency and improved efficiency for your Company. This wasthe mainstay of your Company when lockdown was imposed.

Your Company was quick to switch to IT enabled virtual office when normal working wasaffected during the pandemic induced lockdown. PRADIP Virtual office and internet accessto major applications through VPN helped your Company perform as usual during thelockdown. This in a way enhanced efficiency and speed. This practice continues now afterthe lockdown also.

Your Company's plants and offices across India are connected to Corporate Office andmain DataCentre (DC) through high-speed MPLS links at each site to facilitate seamlesscommunication. The DC and DR (Disaster Recovery) site is connected with high bandwidthMPLS links for data replication. Both the Data centres at Noida & Hyderabad have beencertified with ISO: 27001 certification during this period. The progress of ongoingprojects and issues of the running power stations are discussed regularly over highdefinition Video Conferencing system at Project Monitoring Centre of Corporate Office.Desktop/laptop to desktop/laptop VC facility is now available to all executives in yourcompany as part of virtual office and it is widely used.

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. Anumber of Pilots and proof of concepts have been completed in these areas.

Some of the highlights of the progress in IT/ERP area during the year 2020-21 are asfollows:

• Digitization - All approved processes under E-Office was completed. Processeswere redesigned for working in paperless mode and to enable shared service center model.Digital invoicing was implemented and all vendors were onboarded on PRADIP to submit theirdigital invoices and to track them. Also management dashboard made ready to track paymentstatus of your Company.

• ERP - A number of new modules were introduced in ERP as part of processimprovements. ERP was implemented in two JV companies i.e. APCPL and NTECL during thisyear.

• Mail and Messaging Services - The mail and messaging services were upgraded andmigrated to Cloud as part of virtual office.

• Security - No major security breach was observed during the year 2020-21. A(24x7) Security Operation Centre (SOC) is in operation where round the clock monitoring ofall external and internal data traffic is being done with latest tools through SOC andlatest threat management tools are being applied to prevent any cyber-attack or datatheft. The entire SOC hardware was refreshed during the year. Timely communication beingsent to all users based on threat perception. Your Company's data centers at Noida andHyderabad are ISO 27001 certified for security compliance.

• New Technology - Robotic Process Automation has been implemented in the field ofcommercial monthly billing.

• A virtual team consisting of 21 executives has been formed and extensivelytrained through IIT Kanpur on AI/ML. The teams are now working on specific projects asidentified by the users from different sites.

• Centralised dashboard for RE asset monitoring and a water dashboard to monitorand optimize water consumption were implemented.

• IT Consultancy assignments towards power sector improvement - Implemented thefollowing:

o SAP-PM module in SCCL o PI System in JV companies of your Company o Advising NEEPCOin their ERP implementation o DREAMS 2.0 in PGCIL o TPIEA for NR discoms

o All together consultancy works for ' 6.5 Crore were carried out.

• Work From Home (WFH) enablement due to COVID-19. During the lockdown there wasno disruption of any work as enablement through VPN access to critical applications to allthe required employees and a VC facility through MS teams were provided.

26. GROUP COMPANIES: SUBSIDIARIES AND JOINT VENTURES

Your Company has 12 number of subsidiary companies and 17 nos. Joint Venture companiesas on 31st March 2021 for undertaking specific business activities.

Your Company has decided to exit from International Coal Ventures Private Limited inview of lack of suitable commercially viable opportunities for thermal coal and in respectof BF-NTPC Energy Systems Limited after getting approval from Ministry of Power theprocess of Winding Up had started and Liquidator was appointed for voluntary Liquidationof this JV Company.

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.

27. 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 and any amendmentsthereto are as under:

27.1 Statutory Auditors

The Statutory Auditors of your Company are appointed by the Comptroller & AuditorGeneral of India. Joint Statutory Auditors for the financial year 2020-21 were (i) M/s S KMehta & Co. Chartered Accountants New Delhi (ii) M/s S N Dhawan & Co LLPChartered Accountants New Delhi (iii) M/s Varma & Varma Chartered AccountantsHyderabad (iv) M/s Parakh & Co. Chartered Accountants Jaipur (v) M/s C K Prusty& Associates Chartered Accountants Bhubaneshwar (vi) M/s B C Jain & Co.Chartered Accountants Kanpur and (vii) M/s V K Jindal & Co. Chartered AccountantsRanchi.

The appointment of the Statutory Auditors for the financial year 2021-22 is yet to bemade by the Comptroller & Auditor General of India.

27.2 Management comments on Statutory Auditors' Report

The Statutory Auditors of your Company have given an un-qualified report on theaccounts of the Company for the financial year 2020-21. However they have drawn attentionunder ‘Emphasis of Matter' to the following notes:

(i) Note No. 34(a) regarding billing and accounting of sales on provisional basis.

(ii) Note No. 46(a) in respect of one of the projects of Company consisting of threeunits of 800 MW each where the order of National Green Tribunal (NGT) on the matter ofenvironmental clearance for the project has been stayed by the Hon'ble Supreme Court ofIndia the matter is sub-judice and the units have since been declared commercial.

(iii) Note no. 46(b) in respect of one of the projects under construction consisting oftwo units of 800 MW each where the National Green Tribunal (NGT) has passed an order tokeep the environment clearance granted to the project in abeyance and directed to carryout additional studies relating to environmental impact assessment and the Company hasfiled an appeal before Hon'ble Supreme Court of India.

(iv) Note No. 57(iii)(b) with respect to appeal filed by the company with the Hon'bleHigh Court of Delhi in the matter of Arbitral award pronounced against the Company and therelated provision made/disclosure of contingent liability as mentioned in the said note.

The issues have been adequately explained in the respective Notes referred to by theAuditors.

27.3 Review of accounts by Comptroller & Auditor General of India (C&AG)

The Comptroller & Auditor General of India through letter dated 13.8.2021 hasgiven ‘NIL' Comments on the Standalone Financial Statements of your Company for theyear ended 31st March 2021 after conducting supplementary audit under Section143 (6)(a) of the Companies Act 2013.

The Comptroller & Auditor General of India through letter dated 13.8.2021 hasalso given ‘NIL' Comments on the Consolidated Financial Statements of your Companyfor the year ended 31 March 2021 after conducting supplementary audit under Section 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 31 March 2021 are being placed with the report ofStatutory Auditors of your Company elsewhere in this Annual Report.

27.4 COST AUDIT

As prescribed under the Companies (Cost Records and Audit) Rules 2014 the CostAccounting records are being maintained by all projects/stations and Coal mines of yourCompany.

The firms of Cost Accountants appointed under Section 148(3) of the Companies Act 2013for the financial year 2020-21 were (i) M/s Chandra Wadhwa & Co. Cost AccountantsDelhi (ii) M/s S. C. Mohanty & Associates Cost Accountants Bhubaneshwar (iii)Dhananjay V. Joshi & Associates Cost Accountants Pune (iv) M/s DGM &Associates Cost Accountants Kolkata (v) M/s Tanmaya S. Pradhan & Co. CostAccountants Odisha (vi) M/s K. L. Jaisingh & Co. Cost Accountants U.P. (vii) M/sNiran & Co. Cost Accountants Bhubaneshwar (viii) M/s A.

C. Dutta & Co. Cost Accountants Kolkata (ix) M/s R.M. Bansal & Co. CostAccountants Kanpur and (x) M/s ABK & Associates Mumbai.

The due date for filing consolidated Cost Audit Report in XBRL format for the financialyear ended March 31 2020 was upto December 31 2020 and the consolidated Cost AuditReport for your Company was filed with the Central Government on November 18 2020.

The Cost Audit Report for the financial year ended March 31 2021 shall be filed withinthe prescribed time period under the Companies (Cost Records & Audit) Rules 2014.

27.5 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.

In term of its Exchange Risk Management Policy during financial year 2020-21 yourCompany has entered into derivative contracts amounting to EUR 7.20 million in respect offoreign currency loans exposure.

27.6 Policy for Selection and appointment of Directors' and their remuneration

Your Company being a Government Company the provisions of Section 134(3)(e) of theCompanies Act 2013 do not apply in view of the Gazette notification dated 5.6.2015 issuedby Government of India Ministry of Corporate Affairs.

27.7 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) of theCompanies Act 2013 which requires of performance evaluation of every director by theNomination & Remuneration Committee. The aforesaid circular of MCA further exemptedGovt. Companies from provisions of Section 134(3)(p) of the Companies Act 2013 whichrequires mentioning the manner of formal evaluation of its own performance by the Boardand that of its Committees and Individual Director in Board's Report if directors areevaluated 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.

Further as per MCA Notification dated 5.7.2017 in case the matters of performanceevaluation are specified by the concerned Ministries or Departments of the CentralGovernment or as the case may be the State Governments and such requirements are compliedwith by the Government companies provisions of Schedule IV w.r.t. performance evaluationof Directors are exempted for the Government Companies.

In this regard Deptt. of Public Enterprises (DPE) has already laid down a mechanismfor performance appraisal of all functional directors. DPE has also initiated evaluationof Independent Directors.

Your Company enters into a Memorandum of Understanding (MOU) with Government of Indiaeach year demarcating key performance parameters for the company. The performance of theCompany are evaluated by the Department of Public Enterprises vis-avis MOU entered intowith the Government of India MOP.

In terms of Regulation 25 of SEBI LODR 2015 the performance of the Board as a wholeand nonindependent directors including Chairman & Managing Director were evaluated bythe Independent Directors in a separate Meeting held on 23rd March 2021.

27.8 Declaration by Independent Directors

During the year all the Independent Directors have met the requirements specifiedunder Section 149(6) of the Companies Act 2013 for holding the position of‘Independent Director' and necessary declaration from each Independent Director underSection 149 (7) of the Companies Act 2013 was received. Also declaration under Regulation25 of SEBI (LODR) Regulations 2015 and Rule 6 of the Companies (Appointment andQualification of Directors) Rules 2014 are also obtained from all the IndependentDirector of your Company.

27.9 Management Discussion and Analysis

In addition to the issues stated in the Directors' Report some issues have beenbrought out in report on Management Discussion and Analysis placed at Annexure-I and formspart of this Director Report as per the terms of regulations 34(2)(e) of SEBI (ListingObligations and Disclosure Requirements) Regulations 2015.

27.10 Corporate Governance

A detailed report on Corporate Governance as stipulated under Regulation 34(3) of SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015 is placed atAnnexure-II and forms part of the Directors' Report.

27.11 Business Responsibility Report

The Business Responsibility Report as stipulated under Regulation 34(2) of the SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015 is given inAnnexure-X and forms part of this Directors' Report.

27.12 Investor Education and Protection Fund (IEPF)

Details of transfer of unclaimed dividends and eligible shares to IEPF have been placedin the Corporate Governance Report at Annexure-II which forms part of the Directors'Report.

27.13 Secretarial Audit

The Board had appointed M/s Chandrasekaran Associates Company Secretaries to conductSecretarial Audit for the financial year 2020-21. The Secretarial Audit Report for thefinancial year ended March 31 2021 is annexed here with marked as Annexure XI to thisDirectors' Report.

The Managements' Comments on Secretarial Audit Report are as under:

Observations Management's Comments
Compliance of Regulation 17 of Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations 2015 with regard to the requirements of having at least one half of the Board of Directors comprising of Independent Director including one Independent Woman Director on the Board of the Company. During the financial year 2020-21 there is no Woman Director & Independent Woman Director as required under SEBI LODR. Further Independent Director was also less than the required limit. As per the provisions of the Articles of Association of the Company the power to appoint Directors vests with the President of India. The Company had requested Ministry of Power Government of India being administrative ministry for appointment of Independent Director and Woman Independent Director from time to time for compliance of the above regulations.
Compliance of Regulation 17(10) 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 26.6 & 26.7
Compliance of Regulation 19(4) read with Schedule II Part D (A) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015 the required policies/criteria were not formulated As the Government of India (GOI) is making appointment of Directors evaluation of Directors are done by the GOI.

27.14 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 Governance which also form part of the Annual Report.

27.15 Significant and material orders passed by the regulators or courts or tribunalsimpacting the going concern status and company's operations in future.

No significant and material orders were passed by any regulator or court or tribunalimpacting the going concern status and company's operations during the FY 2020-21.

27.16 Adequacy of internal financial controls with reference to the financialreporting: Your Company has in place adequate internal financial controls with referenceto financial reporting. During the year such controls were regularly tested and noreportable material weakness in the design implementation and operation effectiveness wasobserved.

27.17 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 2020-21.

The loan granted by your Company to its Subsidiaries Company namely NTPC RenewablesEnergy Limited and NTPC Electric Supply Company Limited of ' 15 crore and ' 1.50 crore formeeting its immediate fund requirement covered under Section 185 and 186 of the CompaniesAct 2013.

Details of Loans granted to subsidiaries and Joint venture companies are disclosed atNote 53 to the stand-alone financial statements for the year 2020-21.

27.18 Prevention Prohibition and Redressal of Sexual Harassment of Women at Workplace

Your Company has in place a policy on Prevention Prohibition & Redressal of SexualHarassment of Women at Workplace in line with the requirements of the Sexual Harassment ofWomen at Workplace (Prevention Prohibition & Redressal) Act 2013.

Internal Committees (ICs) have been constituted at all Projects/Locations of yourCompany to redress complaints received regarding Sexual Harassment. All female employees(regular contractual temporary trainees) are covered under the policy. Every threeyears the constitution of these committees is changed and new members are nominated.

During the year 2020-21 two cases were reported to different ICCs across your Companyboth were resolved and currently no case is pending.

27.19 Procurement from Micro and Small Enterprises (MSEs)

The Government of India has notified a Public Procurement Policy for Micro and SmallEnterprises (MSEs) Order 2012. The total procurement* made from MSEs during FY 202021 was' 3538.43 crore which was 50.73% of the total procurement of ' 6975.38 crore against theminimum threshold of 25% as stipulated by the Public Procurement Policy for Micro andSmall Enterprises (MSEs) Order.

The total procurement percentage made from MSEs owned by SC/ST and Women entrepreneursduring the year 2020-21 was 0.22% and 0.39% respectively.

*It excludes Primary fuel Secondary fuel steel cement project procurement includingRenovation & Modernization and procurement from Original Equipment Manufacturer (OEM)/Original Equipment Supplier (OES)/ Proprietary Article Certificate (PAC).

In FY 2020-21 your Company has recorded highest ever procurement from MSEs in terms ofabsolute value and procurement percentage in a financial year. Further in FY 2020-21your Company has recorded highest procurement percentage from MSEs among all MaharatnaCPSUs.

Your Company has organised 20 Vendor Development Programs (VDPs) including 10 SpecialVDPs for MSEs owned by SC/ST and Women Entrepreneurs across the Company in FY 2020-21.

Your Company has on-boarded all the three Trade Receivables Discounting System (TReDS)platforms approved by Reserve Bank of India. Invoices worth ' 4.43 crore are discountedthrough the TReDS platform.

Annual procurement plan for 2020-21 from MSEs is uploaded on your Company website i.e.www.ntpc.co.in.

27.20 Particulars of Employees

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

However as per notification dated 5th June 2015 issued by the Ministry ofCorporate Affairs Government Companies are exempted from complying with provisions ofSection 197 of the Companies Act 2013. Therefore such particulars have not been includedand do not form part of this Directors' Report.

27.21 Extract of Annual Return:

Extract of Annual Return (MGT-9) pursuant to Section 92 (3) of the Companies Act 2013and rule 12(1) of the Company (Management & Administration) Rules 2014 is annexedherewith as Annexure - VI to this Director Report. The Extract of Annual Return for theFinancial Year ended 31st March 2021 is also available on your Company'swebsite i.e www.ntpc.co.in.

27.22 Credit Rating

The Company's financial discipline and prudence is reflected in the strong creditratings ascribed by rating agencies. The details of credit ratings are disclosed in theManagement Discussion and Analysis Report which forms part of the Annual Report.

27.23 Reporting Of Frauds By Auditors

During the year under review neither the statutory auditors nor the secretarialauditor has reported to the audit committee under Section 143(12) of the Companies Act2013 any instances of fraud committed against the Company by its officers or employeesthe details of which would need to be mentioned in the Director's report.

27.24 Other Information

Information on Number of Meetings of the Board held during the year composition ofcommittees of the Board and their meetings held during the year a chart or a matrixsetting out the skills/expertise/competence of the board of directors Total fees for allservices paid by the listed entity and its subsidiaries on a consolidated basis to thestatutory auditor and all entities in the network firm/ network entity of which thestatutory auditor is a part Details of utilization of funds raised through preferentialallotment or qualified institutions placement as specified under Regulation 32(7A) if any establishment of vigil mechanism/whistle blower policy and web-links forfamiliarization/training policy of directors Policy on Materiality of Related PartyTransactions and also on Dealing with Related Party Transactions and Policy fordetermining ‘Material' Subsidiaries have been provided in the Report on CorporateGovernance which forms part of the Directors Report at Annexure-II.

27.25 Para on development of risk management policy including therein the elements ofrisks are given elsewhere in the Annual Report.

27.26 The Company has followed the applicable Secretarial Standards i.e. SS-1 andSS-2 relating to ‘Meetings of the Board of Directors' and ‘General Meetings'respectively.

27.27 No disclosure or reporting is required in respect of the following items as therewere 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.

The particulars of annexure forming part of this report are as under:

Particulars Annexure
Management Discussion & Analysis I
Report on Corporate Governance II
Information on conservation of energy technology absorption and foreign exchange earnings and outgo III
Statistical information on persons belonging to Scheduled Caste / Scheduled Tribe categories IV
Information on Differently Abled persons V
Extract of Annual Return VI
Annual Report on CSR Activities VII
Project Wise Ash produced and utilized VIII
Disclosure of Related Party Transactions in Form AOC-2 IX
Business Responsibility Report for the year 2020-21 X
Secretarial Audit Report in Form MR-3 XI

28. INTEGRATED REPORT

Your Company being one of the top companies in the country in terms of marketcapitalization has voluntarily provided Integrated Report which encompasses bothfinancial and non-financial information to enable the Members to take well informeddecisions and have a better understanding of the Company's long term perspective. TheReport also touches upon aspects such as organization's strategy governance frameworkperformance and prospects of value creation based on the six forms of capital viz.financial capital manufactured capital intellectual capital human capital social andrelationship capital and natural capital.

29. BOARD OF DIRECTORS & KEY MANAGERIAL PERSONNEL (KMP)

Shri Dillip Kumar Patel had been appointed as Director (HR) w.e.f. 1.4.2020.

Shri Ramesh Babu V. had been appointed as Director (Operations) w.e.f. 1.5.2020.

Shri Chandan Kumar Mondol had been appointed as Director (Commercial) w.e.f. 1.8.2020.

Shri Ujjwal Kanti Bhattacharya had been appointed as Director (Projects) w.e.f.28.8.2020.

Shri Prakash Tiwari ceased to be Director (Operations) of the Company w.e.f. 30.4.2020on attaining the age of his superannuation.

Shri Anand Kumar Gupta ceased to be Director (Commercial) of the Company w.e.f.31.7.2020 on attaining the age of his superannuation.

Shri P K Deb Shri M. P. Singh Shri Vinod Kumar Shri Subhash Joshi and Shri ShashiShekhar ceased to be Independent Director w.e.f. 7.9.2020 on completion of three years'tenure.

Dr. K.P.K. Pillay and Dr. Bhim Singh ceased to be Independent Director w.e.f. 16.7.2021on completion of three years' tenure.

The Board wishes to place on record its deep appreciation for the valuable servicesrendered by Shri Prakash Tiwari Shri Anand Kumar Gupta Shri P K Deb Shri M P SinghShri Vinod Kumar Shri Subhash Joshi Shri Shashi Shekhar Dr. K.P.K. Pillay and Dr. BhimSingh during their association with the Company.

The Board welcomes Shri Dillip Kumar Patel Shri Ramesh Babu V. Shri Chandan KumarMondol and Shri Ujjwal Kanti Bhattacharya on the Board of your Company.

30. MATERIAL CHANGES AND COMMITMENTS AFFECTING FINANCIAL POSITION BETWEEN THE END OFTHE FINANCIAL YEAR AND DATE OF THE REPORT

There have been no material changes and commitments which affect the financialposition of the Company that have occurred between the end of the financial year to whichthe financial statements relate and the date of this report.

31. DIRECTORS' RESPONSIBILITY STATEMENT

As required under Section 134(3)(c) & 134(5) of the Companies Act 2013 yourDirectors state that:

1. in the preparation of the annual accounts for the year ended March 31 2021 theapplicable accounting standards had been followed along with proper explanation relatingto material departures;

2. the Directors had selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the company as at March 31 2021 and of the profit ofthe company for the year ended on that date;

3. the Directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act 2013 forsafeguarding the assets of the company and for preventing and detecting fraud and otherirregularities;

4. the Directors had prepared the Annual Accounts on a going concern basis;

5. the Directors had laid down internal financial controls to be followed by thecompany and that such internal financial controls are adequate and were operatingeffectively; and

6. the Directors had devised proper systems to ensure compliance with the provisions ofall applicable laws and that such systems were adequate and operating effectively.

32. ACKNOWLEDGEMENT

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 Ministry of Corporate AffairsDepartment of Public Enterprises Department of Investment and Public Asset ManagementCentral Electricity Authority Central Electricity Regulatory Commission Comptroller& Auditor General of India Appellate Tribunal for Electricity State GovernmentsRegional Power Committees State Utilities Stock exchanges and Office of the AttorneyGeneral of India. The Directors of your Company also convey their gratitude to theshareholders various international and Indian Banks and Financial Institutions for theconfidence reposed by them in the Company.

The Board also appreciates the contribution of contractors vendors and consultants inthe implementation of various projects of the Company.

We also acknowledge the constructive suggestions received from the Office ofComptroller & Auditor General of India Statutory Auditors and Cost Auditors of yourCompany.

We wish to place on record our appreciation for the untiring efforts and contributionsmade by the NTPC's family at all levels to ensure that the company continues to grow andexcel.

The Directors of your Company regret the loss of life due to COVID-19 pandemic and aredeeply grateful to and have immense respect for every person who risked his life andsafety to fight this pandemic.

.