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NTPC Ltd.

BSE: 532555 Sector: Infrastructure
NSE: NTPC ISIN Code: INE733E01010
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OPEN 114.50
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VOLUME 2640568
52-Week high 116.80
52-Week low 78.10
P/E 9.75
Mkt Cap.(Rs cr) 111,706
Buy Price 115.10
Buy Qty 6326.00
Sell Price 115.20
Sell Qty 150.00
OPEN 114.50
CLOSE 112.65
VOLUME 2640568
52-Week high 116.80
52-Week low 78.10
P/E 9.75
Mkt Cap.(Rs cr) 111,706
Buy Price 115.10
Buy Qty 6326.00
Sell Price 115.20
Sell Qty 150.00

NTPC Ltd. (NTPC) - Director Report

Company director report

Your Directors are pleased to present the 44th Annual Report on thebusiness and operations of the Company along with the Audited Standalone and ConsolidatedFinancial Statements for the year ended March 31 2020 and Auditors' Report thereonon behalf of the Board of Directors Financial Year 2019-20 had been yet another year ofachievements for your Company.

Major highlights of your Company for the year 2019-20 are:

Highest ever Commercial capacity of 8260 MW (includingsubsidiaries and acquisitions during the year) added during the year.

Plant Load Factor (PLF) of 68.20% as against all India PLF of55.99% with Rihand Thermal station of your Company recording 88.64% PLF. 8 Stations(including JVs) were in the top 25 in the country in terms of PLF. 5 coal based stationsout of 24 commercial Stations achieved more than 85% PLF. Your Company raised a syndicatedterm loan in JPY equivalent to US $750 million-highest foreign currency loan raised byany Indian Company.

Group Capital Expenditure (CAPEX) including CAPEX of JV/subsidiaries of your Company for the year 2019-20 was Rs 47122.93 crore and onstand-alone basis was

Rs 35539.37 crore on cash basis.

Revenue from operations was Rs 97700.39 crore and totalrevenue was Rs 100478.41 crore. Net Profit after Tax (PAT) was Rs 10112.81 crore.

Dividend of Rs 3.15 per share comprising interim dividend ofRs 0.50 per equity share paid in March 2020 and recommended final dividend of Rs 2.65 perequity share for the year 2019-20 subject to your approval in the upcoming Annual GeneralMeeting.

Cash contribution of Rs 5500.89 crore to Government of

India's exchequer through dividend dividend distribution tax andincome tax in the financial year 2019-20.

Planted approx. 10 lakh trees during 2019-20 to mitigate theGHG emissions arising out of plant operations thereby bringing total to about 35.10million planted trees till end of 31.03.2020.

Coal mine at Talaipalli coal block become operational. Withthis production has started at three mines of your Company. Further in 2019 achieved11.15 MMT of coal production from captive mines registering an increase of 52.50% overthe previous year.

Your Company is one of the Best Workplaces and has beenadjudged 14th in 2019 ‘Great Place to Work' by the Great Place to WorkInstitute further your Company also named as ‘ Best PSU' in 2019.

Your Company declared as winner in "CorporateExcellence" category of CII-ITC Sustainability Award 2019 which is the most covetedawards in India in sustainability front. Your Company awarded as a Best PerformingPower Generation Company in 2019 at the Dun & Bradstreet Infra 2019 Award function.

Power Management Institute (PMI) has won internationally mostcoveted ATD BEST award for the 4th time in a row. You will appreciate the fact that theCompany recorded growth and excellent performance despite numerous challenges before thesector like coal shortage strict emission norms etc. Further in the last month of FY2019-20 the COVID-19 pandemic developed rapidly into a global crisis forcing governmentsto resort to lock-down of all economic activity etc. As a responsible corporate citizenit is our duty to follow the directives issued by Government of India(GoI). Despitechallenges of lock-down Team NTPC worked tirelessly at its Power Plants to keep up thegeneration and meet the demand of the nation.

1. FINANCIAL RESULTS (STAND ALONE)

Particulars 2019-20 2018-19
Rs Crore US $ Mn* Rs Crore US $ Mn*
Revenue
Revenue from operations (including energy sales sale of energy through 97700.39 12845.17 90307.43 11873.18
trading consultancy fee etc.)
Other income 2778.02 365.24 1872.13 246.14
Total Revenue 100478.41 13210.41 92179.56 12119.32
Expenses
Fuel cost 54241.82 7131.45 52493.74 6901.62
Electricity purchased for trading 2776.44 365.03 2713.68 356.78
Employee benefits expense 4925.60 647.59 4779.89 628.44
Finance costs 6781.97 891.66 4716.74 620.13
Depreciation amortization and impairment expense 8622.85 1133.69 7254.36 953.77
Other expenses 8663.81 1139.08 7548.63 992.46
Total expenses 86012.49 11308.50 79507.04 10453.20
Profit before tax and regulatory deferral account balances 14465.92 1901.91 12672.52 1666.12
Tax expense 9181.95 1207.20 (2918.71) (383.74)
Profit for the year before regulatory deferral account balances 5283.97 694.71 15591.23 2049.86
Net movement in regulatory deferral account balances (net of tax) 4828.84 634.87 (3841.34) (505.04)
Profit for the year 10112.81 1329.58 11749.89 1544.82
Appropriations 2019-20 2018-19
Rs Crore US $ Mn* Rs Crore US $ Mn*
Transfer to bonds/ debentures redemption reserve - - 1732.37 227.76
Transfer to general reserve 6500 854.59 4500.00 591.64
Dividend paid 2968.37 390.27 4922.55 647.19
Tax on dividend paid 607.80 79.91 1000.49 131.54

*1US $= Rs 76.06 as on March 31 2020

2. ACQUISITION OF THDC & NEEPCO

Your Company based on the in-principle approval of Cabinet Committee onEconomic Affairs (GoI) for strategic sale of entire GoI stake in THDC & NEEPCOentered into share purchase agreement and acquired 74.496% equity stake of GoI in THDCIndia Limited (THDC) and 100 % equity stake of GoI in North-Eastern Electric PowerCorporation Limited (NEEPCO) during the FY 2019-20.

After acquisition THDC & NEEPCO have become subsidiaries of NTPCw.e.f. 27th March 2020.

This acquisition gives your Company a large portfolio of Hydrocapacity.

3. DIVESTMENT OF SHAREHOLDING BY GOVERNMENT OF INDIA

The Government of India has from time to time disinvested its stakein your Company. During FY 2019-20 the Government of India divested 5.39% of shares ofyour Company as under:

Sl. Particulars No. No. of Shares Divested during 2019-20 Percentage sold
1. CPSE ETF during July 2019 188247114 1.91
2. Bharat ETF during Oct. 2019 36073713 0.36
3. CPSE ETF during Feb. 2020 308748936 3.12
Total 533069763 5.39

4. DIVIDEND

Interim and Final Dividend:

Your Company paid interim dividend of Rs 0.50 per equity share in March2020 and the Board of Director of your Company has recommended a final dividend of Rs 2.65per equity share for the Financial year 2019-20.

The dividend payout is 30.82% and the total dividend payout includingdividend tax is 31.82% of profit after tax. The final dividend shall be paid after yourapproval at the upcoming Annual General Meeting.

The dividend has been recommended in accordance with yourCompany's Dividend Distribution Policy. Further as per regulation 43A of theSecurities and Exchange Board of India (Listing Obligations and Disclosure Requirements)

Regulations 2015 ("SEBI Listing Regulations") the top 500listed companies shall formulate a dividend distribution policy. Accordingly the policywas adopted to set out the parameters and circumstance that will be taken into account bythe Board in determining the distribution of dividend to its shareholders and/ or retainedprofits earned by the Company. The policy is also available on the Company's websitehttps:// www.ntpc.co.in/sites/default/files/downloads/DividendDistributionPolicyofNTPCLimited.pdf.

5. OPERATIONAL PERFORMANCE

During the year the power stations of your Company generated 259.62BUs (290.19 BUs including JVs & Subsidiaries but excluding NEEPCO and THDC) ofelectricity. This was 18.75 % (20.96 % including generation by JVs and Subsidiaries) ofthe total power generated in India over the Previous years' generation of 274.45 BUsby your Company (305.90 BUs including JVs & Subsidiaries). The total generationcontributed by coal stations is 249.71 BUs during the year against generation of 262.47BUs last year. Generation from coal-based units could have been still higher but due toless generation schedule there was opportunity loss of 74.54 BUs. The coal based stationsoperated at an average Plant Load Factor (PLF) of 68.20% (All India PLF was 55.99%) andaverage Availability Factor of 81.34% on bus bar during the year.

Rihand Super Thermal Power Station with a PLF of 88.64% was ranked 5thin the country and 8 Stations (including JVs) of your Company were in the top 25 in thecountry in terms of PLF. Five coal based stations out of twenty four commercial Stationsachieved PLF more than 85%. The gas stations having a capacity of 4017 MW achieved annualgeneration of 4.97 BUs at a PLF of 14.09 % as against 7.43 BUs last year.

Opportunity loss due to less generation schedule on Gas was stillhigher at 28.55 BUs.

Generation contributed by Koldam Hydro Power Station was 3.45 BUsagainst 3.01 BUs achieved in last year there by achieving a growth of 14.46 % over lastyear. Generation contributed by RE Projects/stations (Solar wind small hydro) of yourCompany was 1.49 BUs.

6. COMMERCIAL PERFORMANCE

6.1 Billing and Realisation

Your Company has successfully achieved the targets set by Government ofIndia (GoI) for energy supplied in 2019-20. Many of the beneficiaries were making timelypayments and had availed attractive rebates as per Company's Rebate Scheme.

Your Company has in place a robust payment security mechanism in theform of Letters of Credit (LC) backed by the Tri-Partite Agreement (TPA). Apart from theLCs payment is secured by the Tri-Partite Agreements (TPAs) signed amongst the StateGovernments Government of India (GoI) and Reserve Bank of India (RBI). As per the TPAsany default in payment by the State owned Discoms can be recovered directly from theaccount of the respective State Governments in association with Reverse Bank of India(RBI).

The original TPAs signed during 2000-01 were valid up to 31.10.2016. Asper the decision of the Union Cabinet and as agreed by the various States and RBI theseTPAs have been extended for a further period of 10 to 15 years. As of now 29 out of total31 States / UTs have signed the TPAs extension documents. The signing of TPAs extension bybalance States is being taken up.

6.2 Rebate Scheme for realization of dues

In order to encourage early and full realization of dues your Companyhas issued ‘Rebate Scheme' for the year 2019-20. 1.65% rebate shall be allowedfor amounts credited to your Company's accounts for any payments against provisionalbills and advance payments made on 1st day of the Billing Month and graded gradually to1.590% till 5th day of the billing month. 1.575% rebate shall be allowed for amountscredited to your Company's accounts for any payments made on 6th day and gradedgradually to 1.5% till 11th day of the billing month. For amounts credited to your Companyaccounts from 12th day of the Billing Month till 18th day of the month next to BillingMonth graded rebate would be offered from 1.485% to 0.020%. An additional rebate of 0.1%(maximum) is proposed for beneficiaries who make payment on time consistently during theyear.

6.3 Commercial Capacity

Commercial Capacity totaling to 8260 MW of your Company includingthose of subsidiary Companies was added during the year 2019-20. The subsidiariesCompanies also include 1457 MW of NEEPCO and 1513 MW of THDC which was acquired by yourCompany on 27th March s2020:

Project/ Unit Capacity (MW) COD*
Units- Coal Based (I)
Gadarwara Unit#1 800 01.06.2019
Lara Unit#1 800 01.10.2019
Tanda-II Unit#1 660 07.11.2019
Khargone Unit#1 660 01.02.2020
Barauni-II Unit#1 250 01.03.2020
Darlipalli Unit#1 800 01.03.2020
Total (I) 3970
Subsidiaries – Coal Based (II)
Meja-I Unit#1 660 30.04.2019
NPGCL Unit#1 660 06.09.2019
NEEPCO 1457 27.03.2020@
THDC 1513 27.03.2020@
Total (II) 4290
Total Capacity declared commercial during 2019-20 (I)+(II) 8260

* COD- Commercial Operation Date

@ - Transferred from GoI with effect from 27.03.2020

As on 31.03.2020 the Commercial Capacity of your Company stood at49695 MW (45725 MW as on 31.03.2019) and your Company Group's Commercial Capacitystood at 61126 MW (52866 MW as on 31.03.2019):

Owned by your Company Capacity MW
Coal based projects 43950
Gas based projects 4017
Renewable Energy Projects 928
Hydro Projects 800
Sub-total 49695
Joint Ventures & Subsidiaries
Coal based projects 6494
Gas based projects 2494
Renewable Energy Projects 118
Hydro Projects 2325
Sub-total 11431
Total 61126

6.4 Tariff Regulations

Central Electricity Regulatory Commission (CERC) has issued the CERC(Terms and Conditions of Tariff) Regulations 2019 on 07.03.2019 which are applicable forthe period 01.04.2019 to 31.03.2024. The tariff of electricity generated from yourCompany's stations would be determined by CERC based on these Regulations for theabove mentioned period. The salient features of CERC Tariff Regulations 2019 arediscussed in the Management Discussion and Analysis Report which is placed at Annexure-Iof this Director's Report.

6.5 Security Constrained Economic Dispatch (SCED)

The mechanism of Security Constrained Economic Dispatch (SCED) in yourCompany is under implementation on Pilot basis starting from 1st April 2019. Thismechanism helps in optimization of total schedule of the Inter State Generating Stationsbased on the variable cost resulting in savings in cost of procurement for the Discoms.Starting from 1st June 2020 this Pilot has been extended till 31st March 2021. Duringthis period the scope of the SCED has been expanded to include the state regulatedgenerating stations and the merchant generators also based on their willingness toparticipate in the scheme and this is expected to result in increased saving in the costof power procurement of the Discoms.

6.6 Strengthening Customer Relationship

Customer Focus is one of the core values of your Company (ICOMIT). Inline with this your Company has taken up several initiatives targeted towards theexternal Customers. Customer Relationship Management (CRM) and Customer Satisfaction Index(CSI) are some of the most important parts of these initiatives.

As part of the CRM your Company has been implementing severalstructured activities with the objective of sharing its experiences and best practiceswith the customers capturing their feedbacks and expectations and addressing theirissues. Some of these activities are described below:

- Your Company provides various support services to the beneficiarieswhich involves identifying potential areas of cooperation and sharing of each other'sbest practices. In the financial year 2019-20 total 48 such programs have been conductedfor the customers on the basis of requirement expressed by them.

- Your Company offers training programs to the representatives ofbeneficiary companies at Power Management Institute (PMI) the apex training institute ofyour Company on free of cost basis. In 2019-20 52 participants from various customerorganizations attended training in 18 programs.

Your Company has also put in place Customer Satisfaction Index (CSI)survey scheme to gather customer's feedbacks through a survey and respond to theirrequirements. This CSI survey has been conducted in 2019-20 and the Score falls underexcellent category.

6.7 Power Trading in Power Exchange

In line with CERC (IEGC) (5th Amendment) Regulations 2017 your Companysold more than 568 Million Units of Un-Requisitioned Surplus (URS) power in the PowerExchange through its trading arm NTPC Vidyut Vyapar Nigam Limited (NVVN) a whole ownedsubsidiary of your Company based on consents received from most of the beneficiaries. Thegains from the sale of URS are being shared with beneficiaries as per applicableprovisions.

6.8 Real Time Market (RTM)

RTM has been implemented in the country since 1st June 2020 onvoluntary basis. The main objective of RTM is to provide a market mechanisms to thegenerating stations to sell their surplus power. This also provides an opportunity to theDiscoms to buy power from the market to meet their contingent requirements. RTM is beingimplemented in the form of 48 half-hourly markets operated round the clock and providesoptions to the generators and the Discoms to participate in the market through pricesensitive bidding.

6.9 Renewable Energy:

PPAs for 600 MW solar power projects (under Developer Mode Projects)have been signed with Solar Power Developers tariff of these projects and 200 MW windproject have been adopted by CERC.

As regard NSM Projects with commissioning of last 250 MW Kadappaproject entire 3000 MW under NSM Phase-II Batch-II Tranche-I has been successfullycompleted by your Company.

For your Company owned renewable projects PPAs signed for 20 MWFloating Solar PV Project at Auraiya and 20 MW solar PV project at Rihand as a successfulbidder under UPNEDA Bidding.

Your Company has also signed PPA with SECI to supply 160 MW of solarpower to Rajasthan won through highly competitive tender.

Your Company has also won 769 MW and 923 MW solar projects under CPSUScheme and entered into 1323 MW Power Usage Agreement with Telangana for end consumptionthrough government entities of Telangana. Your Company has also signed PPA with Kerala forsupply of 92 MW solar power from Floating PV station at Kayamkulam.

Petition for tariff determination of 100 MW Floating Solar PV Stationat Ramagundam for use under MOP Scheme for Flexibility in Generation and Scheduling ofThermal Power Stations dated 5th April 2018 Scheme has been filed in CERC.

7. INSTALLED CAPACITY

During the year 2019-20 your Company added 6984 MW to its installedcapacity as per details given below:

Project/ Unit installed Capacity
(MW)
Coal Based Power Projects
Tanda Stage -II Unit#1 660
Khargone Unit#1 660
Barauni Stage-II Unit#8 250
Darlipali Unit#1 800
Khargone Unit#2 660
Total 3030
Under Subsidiaries and Joint Ventures (Coal Based Power Projects)
NPGCL Unit#1 (Fully owned subsidiary) 660
NEEPCO (Hydro 1225 MW & Gas 527 MW & Solar 5 MW) 1757*
THDC (Hydro 1424 MW & Wind 113 MW) 1537*
Total by Subsidiaries and JV 3954
Total Addition during FY 2019-20 6984

*Your Company acquired GoI stake in THDC & NEEPCO w.e.f.27.03.2020.

The total installed capacity of your Company Group as on 31.03.2020 hasbecome 62110 MW (55126 MW as on 31.03.2019) as tabulated below:

Owned by your Company Capacity MW
Coal based projects 44610
Gas based projects 4017
Renewable Energy Projects 928
Hydro Projects 800
Sub-total 50355
Joint Ventures & Subsidiaries
Coal based projects 6494
Gas based projects (Including 2494
NEEPCO-527 MW)
Hydro Projects of THDC (1424 MW) & 2649
NEEPCO (1225 MW)
Renewable Energy Projects of THDC 118
(113 MW) & NEEPCO (5 MW)
Sub-total 11755
Total 62110

8 CAPACITY ADDITION PROGRAMME

8.1 Projects under Implementation

In addition to furthering Capacity addition through Coal based powerprojects your Company has been pursuing enhancement of its power generation portfoliothrough Hydro and Renewable Energy projects.

Various projects of your Company having aggregate capacity of 21333 MW(including 9354 MW being undertaken by Joint Venture and subsidiary companies) are underimplementation in India and abroad. Total Capacity under Construction comprises 16430 MWof Coal (Including 7560 MW being undertaken by Joint Venture and subsidiary companies)2555 MW of Hydro (including 1744 MW being undertaken by Joint Venture and subsidiarycompanies) and 2348 MW of Renewable projects (Including 50 MW being undertaken by JointVenture and subsidiary companies). The details of such projects are as under:

Ongoing Projects as on 30.06.2020 Capacity
(MW)
I.A. Coal Based Projects
1. Barh-I Bihar (3x66 MW) 1980
2. Lara-I Chattisgarh (2x800 MW) 800
3. Gadarwara-I Madhya Pradesh (2x800 MW) 800
4. Darlipalli-I Odisha (2x800 MW) 800
5. North Karanpura Jharkhand (3x660 MW) 1980
6. Tanda-IIUttarPradesh(2x660MW) 660
7. Telangana Phase-I Telangana (2x800 MW) 1600
8. Barauni St.-II Bihar (2x250 MW) 250
Sub Total (A) 8870
I.B. Hydro Electric Power Projects (HEPP)
9. Tapovan VishnugadUttarakhand(4x130 MW) 520
10. Lata Tapovan Uttarakhand (3x57 MW) @171
11. Rammam Hydro West Bengal (3x40 MW) 120
Sub Total (B) 811
I.C Renewable Energy Projects
12. Auraiya Solar G UP 20
13. Bilhaur Solar G UP 140
14. Bilhaur Solar G UP 85
15. Ramagumdam Solar F AP 100
16. Simhadri Solar F AP 25
17. Kayamkulam Solar F Kerala 22
18. Kayamkulam Solar F Kerala 70
19. Jetsar Solar G Rajasthan 160
20. Rihand Solar G UP 20
21. Auraiya Solar F UP 20
22. CPSU-I: Shimbhoo Ka Burj Solar G 250
23. CPSU-I: Devikot Solar G Rajasthan 150
24. CPSU-I: Shimbhoo Ka Burj Solar G 300
25. CPSU-II: Nokhra Solar G Rajasthan 300
26. CPSU-II: Fatehgarh Solar G Rajasthan 296
27. CPSU-II: Navalakhapatti Solar G 230
28. CPSU-II: Devikot Solar G Rajasthan 90
29. CPSU-I: Gandhar Solar G Rajasthan 20
Sub Total (C) 2298
Total I (A)+(B)+(C) 11979
II Projects under JVs & Subsidiaries
Ongoing Projects as on 30.06.2020 Capacity (MW)
(A) Coal Based Projects
30. Nabinagar- JV with Railways (BRBCL) Bihar 250
(4x250 MW)
31. Nabinagar (NPGCL) Bihar (3x660MW) 1320
32. Meja JV with UPRVUNL (MUNPL) Uttar Pradesh (2x660 MW) 660
33. Patratu Expansion JV with JBVNL 2400
34. Rourkela JV with SAIL (NSPCL) Odisha 250
35. Durgapur JV with SAIL (NSPCL) West Bengal (2x20MW) 40
36. Khulna JV with BPDB (BIFPCL) Bangladesh (2x660MW) 1320
37. THDC - Khurja (2x660 MW) 1320
Total II (A) 7560
II (B) Hydro Projects
38. THDC - Tehri PSP Uttarakhand 1000
39. THDC - VishnugadPipalkoti Uttarakhand 444
40. NEEPCO – Kameng Arunachal Pradesh 300
Total II (B) 1744
II C Renewable Projects
41. THDC - Kasargod Solar Kerala 50
Total II (C) 50
Total II (A+B+C) 9354
Total On-Going Projects as on 30.06.2020 (I)+(II)+(III) 21333

@Work of Lata Tapovan HEPP stopped as per orders of the Hon'bleSupreme Court dated 07.05.2014.

8.2 New Technology & Initiatives

Your Company has laid major stress on efficient utilization ofresources and use of technological advancements for improving energy efficiency.

With emphasis on efficiency of electricity generation your Company hasadopted ultra-super critical technology by improving the steam parameters for NorthKaranpura (3X660 MW) to 260 kg/ cm2 593oC/ 593oC. For Khargone (2X660 MW) and Telangana(2X800 MW) steam parameter are 270 kg/ cm2 600oC/ 600oC. Plant efficiency of Ultra SuperCritical (USC) units is expected to be around 41.5% which is higher by 3.5% percentageover a conventional sub-critical 500 MW unit. First ultra-super critical based units ofKhargone (2X660MW) Super Thermal Power Project (STPP) have already been commissioned.

For the first time in your Company Air Cooled Condenser (ACC) Systemhas been adopted at North Karanpura STPP and Patratu STPP which will bring a significantreduction in specific water consumption for the project. It is also being planned toinstall ACC for Singrauli-III (2X800 MW) & Lara-II (2X800 MW). In order to reduce thewater consumption further hybrid cooling system (combination of dry and wet coolingsystem) is being adopted for auxiliary cooling.

8.2.1 Development of Advance Ultra Super Critical technology- Rampingup cycle efficiency of coal fired units to reduce the emissions intensity

Cleaner power has been central to your Company since its inception.Over the timeline we have witnessed focus change from local pollution to global emissionconcerns. Your Company has been voluntarily working on improving the energy conversioncycle efficiency by adopting more efficient technologies. Efficiency of units has beencontinuously improved from sub-critical to supercritical and onto ultra-supercriticaltechnology. All new units are being ordered with USC parameters of 600C/600C. Adoptionof USC parameters shall result in a reduction of CO2 emission (as also others like Nox andSOx) intensity by around 8% when compared to conventional subcritical power plants forevery unit of electricity generated. To achieve even higher efficiency a program todevelop Advanced Ultra Super Critical (AUSC) technology is underway by a consortium ofNTPC BHEL and IGCAR. The programme has been developed under the aegis of office of thePSA (Principal Scientific Adviser) to the Government of India. The project R&D phasewas approved by the Government of India in the year 2016 with total outlay of Rs 1554crore. The AUSC Project envisages development of indigenous technology for steamparameters of 310 Kg/cm2 and 710C/720C temperature. Such parameters are way higherthan steam parameters used in contemporary plants globally and would result in top of lineefficiency of 46%. This is sharp increase from the contemporary efficiency levels of 38%(sub-critical units) and 40% (super-critical units). emissions to the tune of It willresult in reduction of CO2 20% compared to a sub-critical plant.

The activities of the R&D phase of the Indian AUSC are now in finalstages and is likely to be completed in FY 2020-2021. Proactive efforts have been underwayfor the second phase of the programme which is aimed at setting up of an 800 MW technologydemonstration plant. Your Company Sipat plant located in Chhattisgarh has been selected asthe site for setting up of the technology demonstration plant (TDP). Incidentally thesite is home to your Company's first Supercritical unit (660 MW). The technologytuning at the TDP shall hold the key for translation of the learning from the demo-plantto design execution and operation subsequent units comprising of the fleet of AUSC units.

8.2.2 Biomass Co-firing Utilization of Agro residue for PowerGeneration & reduce pollution

As part of its commitment towards clean environment your Company hastaken a new initiatives to utilise agro residue for power generation. This is intended tocut down carbon emissions and also to discourage crop residue burning by farmers afterharvesting by adding economic value to the crop residue and providing extra income tofarmers and employment in rural sector. Biomass co-firing is a unique method to utilizecoal based power plant infrastructure to produce renewable energy by simply replacing someof the coal with biomass based fuel. Being carbon neutral fuel biomass co-firing is atechnology recognized by UNFCCC as a measure of reducing greenhouse gas emission.

After successfully demonstrating biomass co-firing at your CompanyDadri plant your Company has started commercial scale biomass co-firing at Dadri. YourCompany has already fired over 6000 tonnes of biomass pellets at your Company Dadriplant. Purchase orders of 280 TPD for four years (approx. 4 lakh tonnes) have also beenplaced for your Company Dadri plant.

Further in line with advisory of Central Electricity Authority (CEA)your Company had invited expression of interest from entrepreneurs and start-ups forproduction and supply of agro residue based pellets/ torrefied pellets to majority of NTPCpower plants and more than hundred parties have participated in Expresion of Interest(EOI). Bids from the interested parties are being invited.

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

Keeping commitment towards clean & green environment and SwachhBharat Mission (SBM) your Company has taken several initiatives to support & leverageGovernment of India's effort towards realising SBM thereby ensuring pollution freeenvironment to people's health and welfare.

Your Company has successfully revamped and made it functional the"Waste to Compost" plant at Karsara Varanasi and now managing Operation &Maintenance (O&M) of this entire 600 Tons per Day (TPD) capacity plant. The plant isprocessing about 600 TPD of MSW and generating about 60-80 TPD of compost. Sanitary landfill facility 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 gasificationbased demonstration scale WtE plant at Varanasi to support technology development inIndia. The Municipal Solid Waste (MSW) is first converted to produce gas which is thenused to generate approximately 200 kW of electric power. Further to promote Make in Indiaconcept this Project has been awarded to Micro Small & Medium Enterprises (MSME)vendor. Further your Company has also signed in-principle MoU with Surat and East DelhiMunicipal Corporations Varanasi Municipal Corporation and Indore Municipal Corporationfor setting up state of the art WtE plant. Process for bid invitation for Surat and EastDelhi plants is under progress.

8.2.4 Renewable energy

Renewable energy is one central focus for your Company. To be in stepwith ambitious targets your Company is attempting all avenues for renewable capacityaddition to look beyond conventional large scale solar and wind parks. Your Company isutilizing roofs of power plant buildings for solar power generation and integrating to theexisting plant infrastructure. Your Company is also going ahead with floating solar atreservoirs of its projects which is a step towards saving of land and water conservationby reducing water surface evaporation.

8.2.5 Welding

Welding as a joining process is the most critical activity involvedduring manufacturing erection and maintenance / overhauling of units. The advancemetallurgy of components exposed to high temperatures in new coal based Super critical /Ultra Super Critical 660 MW & 800 MW thermal units of your Company imposes greaterchallenges especially in terms of developing desired competencies & skill sets toachieve sound welds & also to develop desired competencies in latest advanced NDTtechniques for quick results.

To meet all those challenges several New Initiatives in Welding &NDT were taken especially in Skill development & Competency Building Welding FailureAnalysis challenges of Welding & NDT in even higher & complex metallurgy involvedin AUSC components. An innovative vision to develop your Company's own state of theart Welding Training Centers at selected projects to train & produce highly skilledwelders Welding & NDT Engineers and a World Class Welding Research Center has beenformalized extensive studies were carried out to develop suitable blue prints. A WeldingResearch Institute is envisioned at your Company – Sipat project. These actions arenow being carried forward and should impact the complete sector.

8.2.6 Smart Township

In Central Public Sector Enterprises (CPSE) conclave 2018 idea toconvert some of CPSE townships to "Mini Smart Cities" was mooted your Companyhas awarded the work of two of its townships i.e. "Solapur" and"Khargone" to be converted into "Smart Townships". The work is underexecution. Planning and development of further eight (8) Townships have also beencompleted. The work in these townships involve application of smart solutions likePan-Township security and surveillance system smart water metering leakageidentification and water quality monitoring smart energy metering and use of renewableenergy sources robust IT infrastructure and FTTH connectivity rainwater harvestingwaste management use of smart bicycles electric vehicle (golf carts) EV Chargers opengym and citizen services etc. Application of these smart solutions will provide enhancedquality of life to the residents in an environment friendly and sustainable manner.

8.2.7 Initiative for Use of Treated Sewage Water from Municipal SewageTreatment Plants (STP)

Your Company has already taken initiative to use treated sewage waterfrom municipal STPs nearby for bulk water requirement in its power plants replacingprecious fresh water from rivers/lakes/reservoirs/dams meant for other priority uses likeagriculture drinking pisiculture water body preservation etc. Treated sewage waterwill be used for Condenser Cooling Water system make-up for the power stations whereverMunicipal STPs are within 50 km distance from Power station complying Tariff Notificationof GoI dated 28.01.2016. The Company has already identified some of its projects viz.Dadri Patratu Solapur Meja Mouda Korba Sipat and Ramagundam where there isfeasibility of using the STP treated water as STPs already exist/are going to beconstructed within 50 km radius of the power plants with substantial availability of STPwater. Further after intense discussion with Ministry of Power (MOP) clarity regardingscope of work of power utility was provided by Ministry vide order issued in March2020.Based on this agreements with Nagpur Municipal Corporation for Mouda Thermal PowerStation of NTPC Ramagundam Municipal Corporation for Ramagundam Power Station KorbaMunicipal Corporataion for Korba Super Thermal Power Station Bilaspur MunicipalCorporation for Sipat Super Thermal power stationSolapur Municipal Corporation forSolapur STPPRanchi Municipal Corporation for Patratu STPP Prayagraj MunicipalCorporation for Meja TPP are under discussions.

8.2.8 Advanced digital and control technology use

Your Company is on the Digital path and implementing its DigitalStrategy Roadmap. The initiatives of Advance Process Control (Operation optimizationsuite) and Advanced Monitoring of Stockyard have been commissioned as a pilot project.Implementation in subsequent units are in progress. Your Company has also takeninitiatives of APM (Maintenance optimization suite) AIG (IIOT to enhance processvisibility) AIM (digital twin with lifecycle documentation). The initiatives are beingpiloted at Simhadri power plant and subsequently shall be rolled-out across your CompanyFleet. Pilot for ART (Augmented reality / Virtual Reality based training) has beencompleted and the full-fledged ART based Complete Turbine Training module is underprocurement process.

For capacity building of operating personnel on unit operation ofdifferent size and make your Company is building full fledged replica Simulators for allavailable varieties of supercritical units. Technology intensive security system is beingenvisaged in place of manpower intensive security currently in place. It has centralizedcontrol and multiple layers of security to enhance security with optimized manpower. Pilotof the same has been completed in your Company Dadri Plant. In first phase it is beingimplemented for five (5) your Company projects. Further your Company has taken theinitiative for further secured Control systems augmenting the present defense in depthCyber Security Posture for Operational Technology (OT).

Your Company has taken initiative for setting up of Integrated commandand control centre (ICCC) having functionalities such as weather forecast marketintelligence demand forecasting generation forecasting integrated planning schedulingand operation optimization covering hydro thermal and RE portfolio.

8.2.9 Dry Bottom Ash Handling System

Your Company has taken initiative in recent times to minimize waterconsumption by adopting Dry Bottom Ash Handling System instead of conventional Wet BottomAsh Handling System for upcoming Coal Based Thermal Power Plants at Patratu Singrauli-IIIand Lara-II and for R&M project at Rihand STPP. Dry Bottom Ash Handling Systemfacilitates extraction of bottom ash in dry form and practically water requirement willbe eliminated for handling Bottom Ash with meager quantity of water which would berequired for conditioning and dust suppression. The system not only reduces waterconsumption which is required for disposal of bottom ash in wet form but also results inreduction in power consumption for Bottom Ash disposal and facilitates separation ofbottom ash and fly ash which will result in better utilization of ash.

8.2.10 Change-over to safer Chlorine-di-oxide system from conventionalgas Chlorination system for disinfection of plant water system

Keeping commitment towards green environment and safety your Companyhas embarked upon to the more advanced safer and compact in-situ Chlorine-dioxidegeneration system from earlier practice of Gas chlorination system through a comprehensivepolicy change for its entire fleet of existing power stations as well as all upcomingpower stations which is under implementation in various projects and stations of yourCompany.

8.2.11 Zero Liquid Discharge (ZLD) from Thermal Power Plants

Your Company has already taken initiative to become a Zero LiquidDischarge company for all closed cycle operating station by identifying and implementingwater management initiative adopting innovation in water use in its Thermal Power Plant.Some of your Company stations have already become zero liquid discharge compliant andimplementation is under progress in balance stations.

Under the scheme plant effluent water is segregated from storm waterand is reused after treatment to a large extent in the area of Ash handling plant CoalHandling Plant FGD make up Service Water etc.

8.2.12 Energy Conservation Technology Absorption and Foreign ExchangeEarnings and outgo

Details of conservation of energy technology absorption and foreignexchange earnings and outgo in accordance with Section 134(3) (m) of the Companies Act2013 read with Companies (Accounts) Rules 2014 forms part of this Director report isplaced at Annex-III.

8.3 Project Management

Your Company has adopted an integrated system for the planningscheduling monitoring and control of approved projects under implementation. Toco-ordinate and synchronize all the support functions of project management the issuerrelies on a three-tiered project management system known as the Integrated ProjectManagement Control System (IPMCS) which integrates its engineering management contractmanagement and construction management control centers. The IPMCS addresses all stages ofproject implementation from concept to commissioning. Your Company has establishedstate-of-the-art IT enabled Project Monitoring Centre (PMC) for facilitating fast trackproject implementation. PMC has advanced features like Web-based Milestone MonitoringSystem (Webmiles) Project Review and Internal Monitoring System (PRIMS) etc. PMCfacilitates monitoring of key project milestones and also acts as decision support systemfor the management.

PMC is an integrated enterprise-wide collaborative system to facilitateconsolidation of project related issues and their resolution. Features like SMS basedinformation delivery real time video capture storage and retrieval facility and videoconference facility are extensively utilized for project tracking issues resolutions andmanagement interventions. PMC has helped in providing effective coordination between theagencies and has provided enhanced/ efficient monitoring of the projects leading to betterand faster project implementation.

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

Besides adding capacities on its own your Company develops powerprojects through its subsidiaries and joint ventures both in India and abroad.

The information of Indian Subsidiaries and JV Companies along withdetails of partners of joint ventures engaged in power generation is given below:

Name of Company JV Partner(s) Details
KBUNL (Kanti Bijlee Utpadan Nigam Ltd.) A wholly- owned subsidiary of NTPC - Both the units of Stage-I of KBUNL have been declared on commercial operation. This Company has also taken up expansion of the project by installation of (2X195 MW) units. Unit#3 of Stage-II was declared commercial on 18.03.2017 and Unit#4 of Stage-II was declared commercial on 01.07.2017. Generation in FY 2019-20 was 2905.00 MUs at 54.21% PLF and DC was 92.26%.
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#1 2 & 3 was declared commercial on 15.01.2017 10.09.2017 and 26.02.2019 respectively. Construction activities of last unit is in progress. Generation in FY 2019-20 was 4887.10 MUs at PLF 74.18% and DC was 86.28%.
Name of Company JV Partner(s) Details
NSPCL (NTPC-SAIL Power Co. Ltd.) (now converted into a Public Limited Company from NTPC- SAIL Power Company Private Limited) Steel Authority of India Ltd. (SAIL) A 50:50 Joint Venture Company between your Company and SAIL owns and operate Captive Power Plants of SAIL at Durgapur (2 x 60 MW) Rourkela (2 x 60 MW) and Bhilai (2x30+1x14 MW). NSPCL has also implemented (2x250 MW) Bhilai Expansion Power Plant. Total installed capacity of NSPCL is 814 MW.
NSPCL generated 5165.40 MUs at 72.24% PLF and DC was 92.19% in FY 2019-20. NSPCL has paid dividend of Rs 50.00 Cr during FY 2019-20 to your Company.
Under Implementation - New Coal based Capacity at Rourkela PP-II Expansion (1x250 MW) & Durgapur PP-III (2x20 MW) is under construction.
NTECL (NTPC Tamil Nadu Energy Co. Ltd.) Tamil Nadu Generation and Distribution A 50:50 JVC has commissioned (3x500 MW) coal based power project at Vallur Tamil Nadu.
Corporation Limited (TANGEDCO) (erstwhile TNEB) All the units have been declared on commercial operation. Generation of NTECL during FY 2019-20 was 5675.00 MUs at 43.07% PLF and DC was 87.85 %
APCPL (Aravali Power Company Pvt. Ltd.) Indraprastha Power Generation Company Ltd. (IPGCL) and Haryana Power Generation Corporation Ltd. (HPGCL). This JVC is operating (3X500 MW) coal based Indira Gandhi Super Thermal Power Project. Your Company IPGCL and HPGCL have contributed equity in the ratio of 50:25:25.
Generation of APCPL during FY 2019-20 was 3842.79 MU at 29.17% PLF & DC was 91.97%. APCPL has paid dividend of Rs 146.83 crore to your Companyduring FY 2019-20.
MUNPL (Meja Urja Nigam Pvt. Ltd.) Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd. (UPRVUNL) A 50:50 JVC is implementing (2X660 MW) coal based power project in the state of Uttar Pradesh. Construction activities are in progress. Unit-1 of 660 MW capacity has been declared commercial on 30 April 2019. Unit-2 is under construction.
Generation of MUNPL during FY 2019-20 was 1051 MUs at 17.93% PLF and DC was 26.62%.
NPGCL (Nabinagar Power Generating Company Ltd.) NPGCL is setting up a (3x660 MW) Coal based plant at Nabinagar. Construction activities are in progress.
Unit#1 declared commercial on 06.09.2019 and Unit#2 was synchronized on 12.02.2020. Generation of NPGCL during FY 2019-20 was 2784.00 MUs at 77.85% PLF and DC was 88.11%.
RGPPL (Ratnagiri Gas and Power Pvt. Ltd.) GAILICICI Canara Bank and MSEB Holding Co. Ltd. Your Company has a stake of BankSBI IDBI 25.51% in RGPPL. PPAs have been signed by RGPPL with Indian Railways for supply of 500 MW for 5 years w.e.f. 01.04.2017 and Gas Supply Agreements were signed with GAIL for supply of 1.75 MMSCMD of RLNG w.e.f. 01.04.2017 for 5 years.
Demerger scheme was approved by NCLAT on 28.02.2018 thereby separating the R-LNG business from RGPPL to the new entity Konkan LNG Private Limited (KLPL). With this the LNG business and all its associated assets and liabilities have been merged in to a separate company namely Konkan LNG Limited (KLL) (erstwhile KLPL). Generation of RGPPL during FY 2019-20 was 4263.67 MUs at 24.68% PLF and DC was 33.64%.
ASHVINI (Anushakti Vidhyut Nigam Ltd.) Nuclear Power Corporation of India Ltd. (NPCIL) Your Company is having a stake of 49%. The company was formed to set up Nuclear Power Project with two reactor units of mutually agreed capacity and at a mutually agreed location which may be extended to setting up additional NPPs at the same location or elsewhere as may be mutually discussed and agreed between the parties subject to establishment of techno-commercial viability. JVC may also explore the possibilities of entering into business activities related with the Nuclear Power generation and front-end fuel cycle such as uranium mining setting up of ancillary facilities etc. at an appropriate stage. Currently no activities are being taken up by the Company.
PVUNL (Patratu Vidyut Utpadan Nigam Limited) Jharkhand Bijli Vitran Nigam Limited (JBVNL) PVUNL has been incorporated on 15.10.2015 as a subsidiary of your Company with 74% stake in the Company and 26% of stake held by JBVNL to acquire establish operate maintain revive refurbish renovate and modernize the performing existing units and tie-lines sub-stations and main power transmission lines connected therewith and setting up of the new units. Supplementary Joint Venture Agreement was signed on 01.03.2018 for expansion units (Phase-I 3X800 MW).EPC package was awarded to BHEL and Construction work is in progress at full swing.

8.5 Hydro Power Projects

Your Company as you are already aware has been in renewable energyand now has solid footprints in green energy by developing hydro projects as detailedbelow: A. Koldam HEPP (4x200 MW) is on the river Satluj in District Bilaspur(Himachal Pradesh). All the four units of 200 MW were declared commercially operational in2015. Since then the project is running exceedingly well. The generation for the financialyear 2019-20 has been 3449.60 MUs against design energy of 3055 MUs. Station has achievedbest ever yearly DC of 108.97% in FY 2019-20 which is highest amongst all the Hydro PowerStations in the country for the last 4 years in a row. Station has taken initiatives forenvironment friendly disposal of plastic waste by signing MoU with nearby Cement Factory.For water conservation backwash water from the Water treatment plant and effluent fromthe Sewerage treatment plant is being used for Horticulture purposes in Township area.Koldam was bestowed with HP Environment Leadership award by Hon'ble Chief Minister onthe occasion of World Environment day at Shimla.

B. Tapovan Vishnugad HEPP (4x130 MW) is on the river DhauligangaDistrict Chamoli (Uttarakhand). Project is under advanced stage of construction. GeneratorTransformer (GT) and Switchyard Package has been completed in FY 2019-20. Powerhouse worksare completed except finishing works which are in progress. Further other importantconstruction activities of Projects are at full swing. Head Race Tunnel (HRT) which is 12Kms long the construction of approximately 8 Kms has been completed. This year asignificant break through was achieved by making Tunnel Boring Machine (TBM) operationalwhich had been stuck inside tunnel since 2012 due to adverse geological conditions. Theconstruction activities on all balance fronts are in progress.

C. Lata Tapovan HEPP (3x57 MW) is in upstream of Tapovan-VishnugadHEPP in District Chamoli (Uttarakhand). All Construction activities at LTHPP have beenstopped since 08.05.2014 in line with Hon'ble Supreme Court order dated 07.05.2014for 24 Hydro Projects in the

State of Uttarakhand including Lata-Tapovan. MOEF&CC hadconstituted an expert body which in Oct 2015 recommended for implementation of LataTapovan with compliance of certain additional conditions. Your Company submitted in Courton 19.11.2015 that the conditions recommended by expert body shall be strictly complied.On the hearing held on 26.04.2016 also Additional Solicitor General of India had informedthe Court that Lata – Tapovan Project must be implemented. Last hearing was held on28.02.2020. The Court asked GoI to submit a combined affidavit of all three concernedministries. The said affidavit is yet to be submitted. The matter is still pending withHon'ble Supreme Court.

D. Rammam-III HEPP (3x40 MW) is situated on river Rammam in TeestaBasin Darjeeling (West Bengal) in south and Sikkim in north. Construction activities arein progress at site.

E. Seli HEP (4x100 MW) & Miyar HEP (3x40 MW) are the two newprojects allotted to your Company in Chenab Valley by Govt of Himachal Pradesh. MoU wassigned with GoHP on 25.09.2019. Finalization of terms and conditions with Govt of HimachalPradesh (GoHP) is in progress as one of the earlier awardee company has approached theHigh Court of Shimla for redressal of its grievances with GoHP.

8.6 Capacity Addition through Renewable Energy (RE Sources)

Your Company is adding capacity through renewable sources of energy tobroad base its generation mix to ensure long-term competitiveness mitigation of fuelrisks and promotion of sustainable power development. Renewable energy is the centralfocus for the company. To be in step with ambitious targets of the Government of India(GoI) your Company is attempting all avenues for renewable capacity addition to lookbeyond conventional large scale solar and wind projects.

Your Company is also going ahead with floating solar projects atreservoirs of its projects which is a step towards saving of land and water conservationby reducing water surface evaporation. Your Company's Corporate Plan envisages atarget of 32 GW capacity of RE power comprising around 25% of the overall installedcapacity of 130 GW by 2032. Your Company contributes to RE capacity addition in thefollowing two pronged approach namely own capacity addition mode and Developer Mode. Inown capacity addition mode your Company sets up Renewable Energy projects on its owninvestment. In Developer Mode your company acts as an intermediary procurer where itprocures power from the Developers and sells to DISCOMs with a trading margin: (a)Projects under Own Capacity Mode: These projects are Company's own projects withits own investment. These projects are setup in surplus land/ reservoirs in theCompany's stations. The off take is tied up through direct Power Purchase Agreement(PPA) with state utilities. Your Company has already commissioned as on date 1070 MW of REprojects including 142 MW owned by the subsidiaries of your Company.

Further 2348 MW of RE projects are under implementation comprising ofGround Mounted Solar Projects and Floating Solar projects.

The Ground Mounted Solar projects of 2111 MW are spread across UPRajasthan TN and Kerala. Further 1636 MW out of 2111 MW are being implemented underCPSU scheme. Under this scheme it is envisaged to set up solar projects using domesticallymanufactured cells and modules with VGF support from Ministry of New and Renewable Energy(MNRE). The power is sold in WTO compliant manner only to Govt entities under a Powerusage agreement (PUA). Floating Solar projects of 237 MW are spread across Telengana APand Kerala. Your Company is first mover/leader in setting up large scale Floating Solarprojects. Ramagundam 100 MW Floating Solar being set up under non PPA mode is the largestin the country.

(b) Developer Mode: Under this mode your Company acts as anintermediary procurer and calls for tenders from developers under tariff based biddingmode in accordance with the targets set by MNRE from time to time. There is no investmentfrom the Company. Your Company act as a designated agency for issue of tenders for settingup of renewable power projects including wind and solar power projects.

Your Company has commissioned 3983 MW RE projects under Developer modeand 1600 MW of RE projects are under implementation.

Some of the New Initiatives and major Highlights of your Company hastaken in RE Projects are : Winning in Competitive bidding of SECI/States

- 300 MW Solar projects won under Tariff Based Bidding

- 1692 MW Solar projects won under CPSU scheme under Viability GapFunding (VGF) Signing of Implementation Support Agreement (ISA)

- Implementation Support Agreement (ISA) signed with RajasthanRenewable Energy Corporation Limited (RRECL) for setting up 735 MW solar projects in owncapacity addition mode and also for setting up 190 MW solar project under developer modein Nokh Solar Park in Rajasthan.

UMREPP (Ultra Mega Renewable Energy Power Park)

- MNRE has undertaken a scheme to develop UMREPPs. The objective of theUMREPP is to provide land upfront to the project developer and facilitate transmissioninfrastructure for developing Renewable Energy (RE) based Ultra Mega Power Projects(UMPPs) with solar/wind/hybrid and also with storage system if required. The scheme isunder finalization by MNRE.

- MOU has been signed with Maharashtra for setting up 2.5GW UMREPP.Discussions in progress with other States.

Floating of tenders with Land in scope of Bidder

- To surmount land availability issues tenders floated with landincluded in scope of bidder.

Hydrogen Energy

- Your Company is in the process of exploring opportunities forproduction of Green Hydrogen using power produced from RE sources and using the GreenHydrogen for various applications namely Mobility Application Production of Syntheticfuel (Methanol) etc. As a part of technological tie up MoU has been signed with Siemens.

8.7 Capacity addition through acquisition

THDC India Limited (THDC) : Your Company has acquired 74.496% equitystake held by Government of India (GoI) in THDC on 27.03.2020 for a total consideration ofRs 7500 crore. Balance 25.504% equity stake is with Govt. of Uttar Pradesh. With thisacquisition THDC is now a subsidiary of your Company. THDC has an Operating portfolio of1513 MW and an under-construction portfolio of 2838 MW. North Eastern Electric PowerCorporation Limited (NEEPCO): Your Company has acquired 100% equity stake held byGovernment of India (GoI) in NEEPCO on 27.03.2020 for a total consideration of Rs. 4000crore. With this acquisition NEEPCO is now a wholly-owned subsidiary of your Company.NEEPCO has an operating portfolio of 1457 MW and another 600 MW is under advance stage ofCommissioning.

9. STRATEGIC DIVERSIFICATION- INCREASING SELF-RELIANCE

9.1 In order to strengthen its competitive advantage in powergeneration business your Company has diversified its portfolio to emerge as an integratedpower major with presence across entire power value chain through backward and forwardintegration into areas such as coal mining power equipment manufacturing power tradingand distribution.

Your Company continuously explores business opportunities throughmarket scanning and adopts new business plans accordingly.

9.2 The details of subsidiary companies engaged in business otherthan in power generation are as under:

9.2.1 NTPC Electric Supply Company Limited (NESCL) a wholly-ownedsubsidiary transferred and vested all its operations with effect from April 1 2015 toyour Company.

NESCL was incorporated for the distribution business and later starteddeposit and consultancy works. The transfer and vesting of existing operations wouldenable a focused business approach in the area of distribution the objective for whichNESCL was incorporated. Although currently NESCL does not have any business operations inretail distribution the same will be taken up at an appropriate time when the opportunitybecomes visible.

9.2.2 NTPC Vidyut Vyapar Nigam Limited (NVVN) a wholly-ownedsubsidiary is engaged in the business of Power trading. NVVN has a trading License underCategory I (highest category). It undertakes sale and purchase of electric power toeffectively utilize installed capacity and thus enable reduction in the cost of power.

The Company has been nominated as Settlement Nodal

Agency (SNA) for settlement of Grid operation related charges withneighboring countries namely Bangladesh Bhutan Nepal and Myanmar. The Company is alsoimplementing a 50 MW gas power project in Andaman & Nicobar.

In the FY 2019-20 NVVN traded 14.53 approx. billion units (BUs).

9.2.3 NTPC Mining Limited (NML) In order to ensure focusedmanagement of mining business your Company has incorporated a wholly owned subsidiaryNTPC Mining Limited (NML) on 29th August 2019 for handling its mining business. It isexpected that undertaking of mining business by this subsidiary would result in timelydevelopment of mines with efficient handling of contracts by dedicated team. This willultimately achieve substantial efficiency and increased competitiveness.

9.3 The details of joint venture companies incorporated in Indiawhich are taking up activities in other business related areas are given below:

Name of Company JV Partner Activities Undertaken
UPL (Utility Powertech Ltd.) Reliance Infrastructure Limited Space Trade Enterprises Private Limited Skyline Global Trade Private Limited and Species Commerce and Trade Private Limited A50:50 JV Company takes up assignments of construction erection and supervision of business in power sector and other sectors like O&M services Residual Life Assessment Studies non- conventional projects etc. UPL has paid dividend of Rss 4 Cr. during to your Company for FY 2019-20.
NGPSL (NTPC GE Power Services Private Limited) GE Power Systems GmbH A 50:50 JV provide R&M services for coal based power plants in India. To renovate modernise refurbish rehabilitate upgrade reverse engineering and component damage assessment. Also for undertaking residual life assessment reengineering in India and on a project by project basis elsewhere abroad utilising state-of-the- 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 has paid dividend of Rs 0.30 Crore during FY 19-20.
EESL (Energy Efficiency Services Ltd.) PFC and REC PGCIL Your Company is having stake of 47.15%. Your 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 Yogana and Agricultural & Municipal Pump replacement for various State Govts. Your 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 Pvt. Ltd.) NHPC DVC and CPRI EESL gave Rs 4.47 Crore during FY 19-20 as Dividend. PGCIL Your Company is having a stake of 20.0% 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 01.07.17 MVTR test lab is expected to be commissioned by July'2020.
NBPPL (NTPC-BHEL Power Projects Pvt. Limited) Bharat Electricals Limited Heavy The Company was incorporated for taking up activities of engineering procurement and construction (EPC) of power plants and manufacturing of equipment. The promoters have decided to wind-up the Company. As Company was formed by a directive from the GOI approval of exit from GOI is required.
MoP has advised your Company to consider buying out the stake of BHEL and thereafter decide either to continue it as an in-house arm or close it after completion of the EPC work at Unchahar project. Your Company communicated to MoP the decision regarding buying out the stake of BHEL may be taken after completion of the balance works of Unchahar project.
Name of JV Partner Activities Undertaken
Company
(BF-NTPC) BF-NTPC Energy Systems Limited Bharat Forge Limited Your Company is having a stake of 49.00% 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 BF-NTPC. Liquidator has been appointed and voluntary liquidation of the Company is in progress.
TELK (Transformers and Electricals Kerala Limited) Acquisition of 44.6% stake in TELK from Government of Kerala on June 19 2009 Your Company is having a stake of 44.6% in JVC. The Company deals in manufacturing and repair of Power Transformers. Your Company has accorded in-principle approval for withdrawal of your Company from TELK on 28.04.2016. Further discussion is in progress.
ICVL (International Coal Ventures Private Limited) CIL SAIL RINL NMDC Your Company is having a stake of 0.11% 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) Coal India Limited Indian Oil Corp. Limited Fertilizer Corp.of India Limited (FCIL) Hindustan Fertilizer Corp. Limited (HFCL) Your Company is having a stake of 33.33 % in JVC. HURL was incorporated on 15.06.2016 to establish and operate new fertilizer and chemicals complexes (urea- ammonia and associated chemical plants) at Gorakhpur Sindri 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.
KLL (Konkan LNG Limited) GAIL ICICI Bank SBI IDBI Canara Bank and MSEB Holding Co. Ltd. Your Company is having a stake of 14.82% in JVC. The Demerger scheme filed by RGPPL was approved by NCLAT on 28.02.2018 thereby separating the R-LNG business from RGPPL to the new entity Konkan LNG Private Limited (KLPL). Post de-merger the LNG facility/ undertaking of RGPPL had been transferred in KLPL with minor shareholding of RGPPL.
KLPL has been converted to Public Limited Company and has been renamed as Konkan LNG Limited (KLL) on 18.02.2020.
CNUPL (CIL NTPC Urja Private Limited Coal India Ltd. (CIL) A 50:50 JVC was incorporated on 27 April 2010 between NTPC Ltd. 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.

9.4 Diversification in Electric Vehicle (EV) Segment

Your Company is envisaging providing hydrogen and pure electricpowertrain based green mobility solutions for public transport which includes providinghydrogen fuel cell based electric vehicles as well as pure battery operated electricbuses. It is also playing an important role of e-Mobility ‘enabler' by creationof public charging infrastructure. Following initiatives are under various stages ofimplementation: a. Hydrogen Mobility: The pilot projects are planned to be carriedout in Leh and Delhi with 5 nos. of Fuel cell electric bus and 5 nos. of fuel cell cars ateach location. The pilot project is being designed with complete value chain of Hydrogenincluding Hydrogen generation from renewable energy Hydrogen storage and dispensation. AnEoI has been invited in this regard from Global fuel cell electric vehicle (FCEV)manufacturers. b. E-bus Solution: Your Company is also offering complete e-bussolutions to STUs through its subsidiary NVVN. An agreement has already been signed withDepartment of Transport A&N Islands for deploying electric bus solution. Similarsolutions with other STUs are also under discussion.

c. Battery Charging & Swapping solution: Your Company hasalready commissioned a pilot project on the concept of battery charging and swapping atFaridabad. The station is under operation and is catering to electric 3 wheeler'senergy service requirement.

d. Charging Station: Your Company plans to set-up 400 Nos. ofchargers in locations across the cities. So far 90 Nos of Chargers have been installed.

e. Charging Infrastructure under FAME-II: Your Company hadparticipated in the Expression of Interest (EOI) floated by Department of HeavyIndustries Government of India under Faster Adoption and Manufacturing of Hybrid andElectric Vehicles (FAME-II) scheme. A total of 282 nos. of charging stations will beset-up in Jabalpur Bhopal Hyderabad Vijayawada Visakhapatnam Kakinada and Bengaluruunder this project.

9.5 Foray in Packaged Drinking Water Business

Your Company's research arm i.e NETRA has developed technologyfor sea water desalination/waste water treatment using waste heat from flue gas from thepower plant. The cost effective technology is now being utilized for packaged drinkingwater. An MoU in this regard has been signed with IRCTC for setting up a packaged drinkingwater facility at your Company Simhadri Station.

Commercial arrangements are being finalized with IRCTC. Award ofcontract by IRCTC for setting up packaged drinking water project is in progress.

9.6 Foray into cement business

Your Company is collaborating with CCI for reviving the cement plantsof CCI supplementing both your Company's & CCI's resource requirement andincreasing ash utilization. An MoU was signed with CCI for establishing a cement blendingunit at Solapur Station of your Company by utilizing the fly ash and the proposal is beingassessed.

Land identification & feasibility report for the proposed plant isin progress.

9.7 New Business Areas

Your Company has entered into Joint Venture Agreement with East DelhiMunicipal Corporation (EDMC) for setting up Integrated Waste to Energy (WtE) project inEDMC control area. The JV Company named NTPC EDMC Waste Solutions Pvt. Ltd. wasincorporated as a subsidiary of your Company with 74% equity participation by your Companyand balance 26% equity participation by EDMC on 1st June 2020. The Integrated WtE Projectshall consist of Pre-Processing Facilities for Municipal Solid Waste (MSW)Bio-Methanation Plant Power Plant (12 MW) Construction and Demolition (C & D) WasteProcessing Plant.

MoU was signed on 16.07.2019 with Indian Oil Corporation Limited toexplore possible business opportunities in the areas of mutual interest like Power Supplyto Refineries Setting up of new Power Plants/Acquisition of Power Plants under NCLTFuels & Lubricants Biogas & ethanol plants Waste to Energy TechnicalConsultancy O&M and R&M services Knowledge sharing etc.

MoU was signed on 24.07.2019 with BHEL for forming a joint ventureCompany to set up 800 MW Technology Demonstration Plant (TDP) based on Advanced UltraSupercritical Technology at Sipat Chhattisgarh Your Company has evinced its interest todevelop Seli HEP (400 MW) and Miyar HEP (120 MW) in Chenab Valley Himachal Pradeshsubject to establishment of techno-economic viability. An MoU with Govt. of HimachalPradesh (GoHP) has been signed on September 25 2019.

10. GLOBALISATION INITIATIVES

10.1 Trincomalee Power Company Limited (TPCL) a 50:50 jointventure between your Company and Ceylon Electricity Board was formed to undertake thedevelopment construction establishment operation and maintenance of a electricitygenerating station Trincomalee at Sri Lanka.

Existing JV Company i.e. TPCL shall develop 50 MW solar power projectat Sampur and a new JV Company to be incorporated to develop the LNG based Power Project.The Joint Venture & Shareholders' Agreement (JVSHA) for incorporating a new JVCompany in Sri Lanka to develop the LNG Power Project at Kerawalapitiya has been signedbetween your Company and CEB on 25.10.2019.

The Capacity of first phase was decided as 300 MW15%. The projectshall be developed on BOOT basis.

10.2 Bangladesh-India Friendship Power Company Private Limited a50:50 joint venture Company between your Company and Bangladesh Power Development Board(BPDB) was formed for developing a (2X660 MW) Coal based power project (Maitree SuperThermal Power Plant) at Khulna Division Rampal Bangladesh. Engineering ProcurementConstruction(EPC) contract of the project except township was awarded to BHEL.Construction activities are going on in full swing.

10.3 Other Opportunities Abroad: Business opportunities inBangladesh Nepal Bhutan Myanmar Indonesia Vietnam Oman UAE Egypt Saudi ArabiaQatar Uzbekistan Maldives Malawi Togo Morocco Botswana Zimbabwe Kenya and othercountries are being explored in the areas of power generation PMC O&M contractingR&M of power plants capability building and cross border power trading etc.

Your Company has been awarded three consultancy jobs abroad (i) Togo:Appointed as PMC consultant for (250+35) MW solar PV Project (ii) UAE: Energy Audit ofFactories in Ras Al Khaimah and (iii) Myanmar: Appointed as PMC for solar+DG based villageelectrification in Rakhine.

Your Company has been registered as an overseas corporation in Myanmarand new business opportunities are being tapped by your Company branch office in Myanmarand has been registered as an overseas Company in Keyna.

Further your Company is associated as a corporate partner withInternational Solar Alliance (ISA) and has now been selected as Project ManagementConsultant / Solar Project Developer to implement solar projects in ISA member countries.In line with this endorsement your Company has been appointed by Govt. of Togo Africa asPMC for implementation of a 35 MW solar project and a 250 MW solar park in Togo.

11. CONSULTANCY SERVICES

Your Company offers Consultancy services "From Concept toCommissioning and beyond…." in areas of Engineering O&M ProjectManagement Contracts & Procurement Renovation & Modernization Quality &Inspection Training & Development Human Resource IT Solar & renewable powerprojects compliance to Environmental norms for power stations etc. These services arebeing provided in India and abroad viz. Gulf countries Bangladesh Nepal Sri Lanka andBhutan. Presently the Consultancy Wing is associated with a capacity of around 29100 MW:

• Owner's Engineers Services & Project ManagementServices- 19000 MW.

• O&M Services / O&M studies (Performance Improvement Plan(PIP) & Gap Analysis) – 9800 MW.

• Solar PMC: 300 MW

On international front Consultancy Wing is providing PMC services forSolar Power Project in Dalwak in Dapaong (33 MWp) and in Mango (250 MW) in Savanes RegionGovt. of Togo. There has been an all-round improvement in terms of plant parameters andcapacity building due to implementation of best practices and systems in this power plantwith involvement of your Company's experts. On the domestic front Consultancy Wingis providing Project Management Consultancy (PMC) for implementation of (2X660MW) KhurjaSTPP of THDC and (2X660MW) Buxar TPP of SJVN.

Consultancy Wing is executing assignments for various clients likeUPRVUNL APGENCO CSPGCL HPGCL DVC PSPCL GSPGCL SCCL OCPL MPPGCL RVUNL and yourCompany JVs for FGD Systems Project Management FR/ DPR Preparation Procurement &Inspections HR IT Performance Improvement services and other advisory services.

Highlights of FY 19-20

• Consultancy wing received orders of Rs 285.79 Crore during theyear

• About 24 nos. assignments pertaining to FGD & ESPaugmentation works amounting to around Rs 92 crore for 25000 MW capacity are undervarious stages of execution

• Post Award Review Engg. & Project Monitoring services at(1X660MW) Panki Extn.TPP (2X660MW) Obra Extn. TPS & (2X660MW)Jawaharpur TPS ofUPRVUNL

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

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

• PMC of Multi-function Simulators for NPTI at six locationscovering coal based TPP; Gas based CCPP Hydro Power Smart Grid.

• Consultancy Wing is looking ahead for future businessopportunities in areas such as Complete O&M of your Company JV / Govt. body Solar& Renewable power projects Owner's Engineer for major power projects PMC forimplementation of new environmental norms e.g FGD ZLD DNOx & ESP R&M ITservices e.g. ERP implementation PRADIP Dreams 2.0 PI systems etc.

Consultancy Wing is also looking ahead for future businessopportunities in areas such as Solar & Renewable power projects and O&M for powerplants of other utilities in addition to new assignments as Owner's Engineer formajor power projects FGD & ESP R&M business for meeting new environmental normsetc.

12. FINANCING OF NEW PROJECTS

The capacity addition programs shall be financed with a debt to equityratio of 70:30 in case of thermal and hydro projects of your Company and that of 80:20 incase of solar/ wind projects. Your directors believe that internal accruals of the Companywould be sufficient to finance the equity component for the new projects. Given itslow-geared capital structure and strong credit ratings your Company is well positioned toraise the required borrowings.

Your Company is exploring domestic as well as international borrowingoptions including overseas development assistance provided by bilateral agencies tomobilize the debt required for the planned capacity expansion program.

Further your Company is consistently doing debt swapping in case ofdomestic loan and cheaper loans are being utilised to repay the older loans with higherrate of interest without paying any repayment penalty to bank. The details of funding arediscussed in the Management and Discussion Analysis Report at Annexure-I which forms partof this Report.

13. FIXED DEPOSITS

Your Company has discontinued the acceptance of fresh deposits andrenewals of deposits under Public Deposit Scheme with effect from 11.05.2013. As suchthere were no deposits which were not in compliance with the requirements of Chapter-V ofthe Companies Act 2013. The details relating to deposits as per the Companies Act 2013are as under:

(a) Accepted during the year Nil
(b) Remained unpaid or unclaimed 6 Deposits amounting as at the end of the year to Rs 15.91 lakh*
(c) Whether there has been any default in repayment of deposits or payment of interest thereon during the year and if so number of such cases and the total amount involved:
i. At the beginning of the year NIL
ii. Maximum during the year NIL
iii. At the end of the year NIL

* Pending for completion of legal formalities/ restraint orders/non-receipt of claims.

14. FUEL SECURITY

During the year 2019-20 the supply position of coal and gas is givenas under:

14.1.1 Coal Supplies

Long Term Coal Supply Agreements

- In line with the Model Coal Supply Agreements signed between yourCompany and Coal India Limited (CIL) in 2009 2012 and under SHAKTI Policy Long-term CoalSupply Agreements (CSAs) are in place with the subsidiary coal companies of CIL for anAnnual Contracted Quantity (ACQ) of 163.63 Million Metric Tonnes (MMT) for the existingthermal stations. In addition CSA is in place with Singareni Colliery Company Ltd. forRamagundam for an Annual Contracted Quantity(ACQ) of 11.20 MMT. Fuel Supply Agreement(FSAs) are valid for a period of 20 years with a provision of review after every 5 years.

- In FY 19-20 your Company signed new Long Term Fuel Supply Agreements(FSA) for 1.19 Million Tonnes Per Annum(MTPA) with CCL for Unchahar St-IV Unit-6 0.44MMTPA with WCL and 1.63 MTPA with SECL for Gadarwara (2X 800 MW) and 0.85 MTPA with ECLfor Bongaigaon Unit-3. However 2.805 MTPA from NCL for Gadarwara and quantity of 1.851MTPA with NCL for Vindhyachal Unit-13 stage -V is also expected to be signed in FY 20-21.Further Linkage under SHAKTI policy for upcoming units of your Company i.e Talcher–III and Singrauli-III has been allocated from MCL and NCL respectively and Letter ofaward for all above expected to be issued in FY 20-21.

Short Term Coal Supply Agreements Signed and coal supply agreementmodified during the financial year 2019-20 Agreement with SCCL

- A bilateral coal supply agreement was signed with SCCL for financialyear 2019-20 with the validity of one year for a quantity of 8.00 MMT which can befurther increased to 10 MMT on best effort basis. MOU with SCCL has been signed fornon-bridge linkage station on additional price of 20% of the notified price for non-powerconsumers and for bridge linkage station on additional price of 20% of notified price forpower consumers.

Bridge Linkages

- Ministry of Coal issued policy guidelines on 8 February 2016 forgrant of ‘Bridge Linkage' to specified end-use plants of Central and StatePublic Sector Undertakings (Both in Power as well as Non-Power sector) which have beenallotted Schedule-III coal mines under the Coal Mines (Special Provisions) Act 2015[CM(SP) Act] and coal blocks allotted under the Mines and Minerals (Development andRegulation Act) 1957 (MMDR Act) for a period of 3 years from the date of allotment ofcoal mine/block. Your Company's stations having capacity of 12200 MW were coveredunder this policy.

- Your Company had been allocated bridge linkages for five stationsviz. (i) Barh-II (2X660 MW) (ii) Darlipalli-I (2X800 MW) (iii) Tanda-II (2X660 MW) (iv)Lara-I (2X800 MW) (v) Kudgi-I (3X800 MW) for a period of three years from the date ofallocation of captive block. Subsequently based on Company's requests SLC (LT) GoIin its meeting dated 10 April 2018 has accorded extension of bridge linkages for Barh-II(2X660 MW) Lara-I (2X800 MW) Darlipalli (2X800 MW) Tanda (2X660 MW) and Kudgi (3X800MW) on tapering basis as per approved mining plan of respective linked mine. The extensionis valid up to 2022 for all the above stations except Barh-II for which it is valid up to2023.

- Bridge linkage MoUs were signed for (i) Barh Stage-II with CCL &ECL (ii) Lara with SECL and MCL (iii) Darlipalli with MCL and SECL (iv) Tanda Unit 5& 6 with ECL and CCL for financial year 2019-22 and up to 2023 for Barh -II.

- SLC (LT) in its meeting held on 18.11.2019 recommended for grant ofBridge Linkage for Barauni Extn. – Unit 8 and Unit 9 (2250 MW) for 03 years fromthe date of transfer /allotment of linked Badam coal block. The linked Badam coal blockwas allotted by MoC on 02.09.2019. As such the Bridge Linkage is valid up to 01.09.2022.

Agreements for supply of imported Coal

- To mitigate the shortage of coal from domestic sources and for theblending purpose to improve the quality of coal your Company has awarded imported coalcontracts for procurement of 1.5 MMT in October 2019 and restored the contract of 2.25 MMTin Dec 2019 for supply of Imported coal to Mouda and Dadri. Your Company received 2.84 MMTof imported coal during the financial year 2019-20.

E-auction of coal

- To supplement deficiencies in FSA coal quantity your Companyparticipated in e-auction of 0.06 MMT of coal and the same was allotted. Your Companyreceived 0.45 MMT of coal under E-auction during FY 2019-20 from current year allocationand carry forward quantity from earlier year contracts.

- To leverage potential of rationalization of coal linkages yourCompany had signed a Supplementary Agreement with CIL and CIL subsidiaries for all ownedand JV/ Subsidiary stations on 12.04.2017 for implementation of Govt. policy on"Flexibility in utilization of domestic coal for reducing cost of powergeneration". Under the Supplementary Agreement your Company can allocate coal to anystation of its own or any JV/ Subsidiary for optimising the Energy Charges. During theyear 2019-20 your Company has used 7.9 MMT of coal under Flexibility Utilization toaddress AFC under recovery and generation loss.

- As per directives of Govt. Central Institute of Mining and FuelResearch(CIMFR) started coal sampling in Jan'16. During the year 2019-20 sampling atall loading end sidings except Shivpur Tori Bukru Phulbasia Rajdhar and Bhalumath ofCCL and sampling at unloading end of all your Company stations has been started. Samplingat unloading end at Barauni and NPGCL (JV Company) is expected to start in FY 20-21.

14.1.2 Domestic Coal and Imported Coal

During 2019-20 your Company received 174.84 MMT of coal as against176.80 MMT in 2018-19. Out of 174.84 MMT of coal 155.21 MMT was from Annual ContractedQuantity of coal 6.42 MMT through Bridge linkage/ SCCL Bi-lateral MoU 9.92 MMT fromCaptive Mines 0.45 MMT from e-auction and 2.84 MMT from Import Coal.

14.1.3 Gas & RLNG supplies

- Your Company has long-term Gas Supply Agreements (GSAs) with GAIL forsupply of Administered Price Mechanism (APM) gas and Non-APM gas which are valid upto 6thJuly 2021. Your Company also had Panna Mukta Tapti (PMT) gas agreements with GAIL whichwas valid till 21 December 2019. Post 21 December 2019 MoP&NG GoI has assigned PMTfield to ONGC on nomination basis and gas from this field is allocated as Non-APM gas.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 yourCompany procures Spot RLNG on limited tender basis from domestic suppliers and on‘Single Offer' basis from Public Sector gas marketing companies. These RLNGsupplies are contracted on ‘Reasonable Endeavour' basis with no penalty oneither party for short supply/short off take. Further your Company has started procuringSpot RLNG on commitment basis from domestic suppliers subject to consent of thebeneficiary Discoms. Further adequate stock of liquid fuel is maintained for meetingGrid's requirement.

- Further in line with MoP&NG guidelines for ‘Clubbing/diversion of gas between two or more power plants' and with the approval of MoP yourCompany entered into arrangement with GAIL for flexibility of diversion of APM and Non-APMgases between its gas stations in NR and WR region on daily basis. With the diversion ofunutilized gas from your Company's WR stations to NR stations additional 1923 MUs(approx.) of electricity has been generated at NR gas stations during financial year2019-20.

- During 2019-20 your Company received annual average 2.53 MMSCMD ofDomestic gas as against 3.66 MMSCMD of Domestic gas received during 2018-19. Long TermRLNG & Spot RLNG off-takes during 2019-20 were 0.49 & 0.14 MMSCMD as against 0.13& 0.86 MMSCMD during 2018-19 respectively.

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

14.2 Development of Coal Mining projects

Your Company has been allocated ten coal blocks namely: Pakri-BarwadihChatti-Bariatu & Chatti-Bariatu (South) Kerandari Dulanga Talaipalli BanaiBhalumuda Mandakini-B Badam and Banhardih by Government of India. Banhardih coal blockhas been allocated to Patratu Vidyut Utapadan Nigam Ltd. (PVUNL) a JV Companyincorporated between your Company & Government of Jharkhand. Your Company plans toproduce about 103 Million Tonnes of coal per annum from these mines when all the minesshall reach the peak-rated capacity (in the year 2028-29).

Out of ten mines three mines Pakri-Barwadih Dulanga & Talaipalliare in operation. During FY 2019-20coal production from captive mines of your Company was11.15 MMT against GOI MOU target of 10.4 MMT. Cumulative about 21.37 MMT of coal producedfrom these mines till the end of FY 2019-20. Further two mines i.e Chatti-Bariatu &Kerandari are in advanced stage of development and remaining five are in various stages ofapproval/clearances.

Coal production commenced from Pakri-Barwadih coal block inDec'16. During FY 2019-20 about 9.42 MMT coal has been extracted and cumulative coalproduction from this mine since inception is 19.14 MMT.

In Dulanga block coal extraction started in Mar'18. During FY2019-20 about 1.54 MMT coal has been extracted and cumulative coal production from thismine since inception is 2.04 MMT.

In Talaipalli (South pit) Coal extraction commenced in Nov'19 andduring FY 2019-20 about 0.19 MMT coal has been extracted. For Talaipalli (Main) earlierMDO was appointed on 13.11.17. However because of contractual issues the contract wasterminated on 04.07.19. Fresh NIT for appointment of MDO was issued on 19.08.19 Reversee-auction for price discovery was completed on 12.02.2020 and award is under process. InChatti-Bariatu coal block all major statutory clearances and priority land to start miningactivities are in place. MDO was appointed on 13.11.17. However because of contractualissues the contract was terminated on 04.07.19. Fresh tendering has been done and MDO isin advanced stage.

For Kerandari coal block also all major statutory clearances andpriority land to start mining activities are in place. In this block mining operationwould be carried out departmentally with limited outsourcing. In the above five coalblocks i.e. Pakri-Barwadih Dulanga Talaipalli Chatti-Bariatu & Kerandari yourCompany has incurred an expenditure about Rs 9.72 crore on community development in FY2019-20 (Cumulative expenditure of more than Rs 135.87 crore) which has helped inimproving the socio-economic conditions of the local community.

For Mandakini-B coal block detailed Exploration was completed andIntegrated Geological report has been prepared. Mining Plan (Part-I) has also beenapproved by MOC. Feasibility Report prepared financial appraisal is in progress. Mineinfrastructure development activities are in progress. Section-7 notification (CBA Act)issued by Ministry of Coal (MOC). Start of mining operation is expected by Oct'23.Your Company is following up with State Government of Odisha for early finalization ofland rates for speedy processing of block development activities.

At the time of allotment the Banai & Bhalumuda coal blocks wereunexplored. The exploration has been completed and Geological Report(s) are available.These two coal blocks are surrounded by coal bearing areas. Because of high strippingratio (>7.5 Cu.M./Tonne) and due to non-availability of non-coal bearing areas for OBdump your Company in consultation with CMPDIL prepared the scheme for optimumutilization of coal from these two blocks by merging it. Accordingly your Companyrequested MOC in Mar'18 for merger of these 2 coal blocks. Numerous meetings anddiscussions held with Ministry of Coal (MOC). Based on the advice from MOC your Companyhas now again approached Central Mine Planning & Design Institute Limited (CMPDIL) tore-work & prepare separate Mining Plans of these two blocks.

MOC allotted Badam coal block to your Company on 02.09.19 afteracquisition of Barauni Power plants from Bihar Govt. Stage-I FC transferred to yourCompany from BSPGCL on 14.01.20.Transfer of EC in favor of your Company is done on21.5.2020. Mining lease land transfer/acquisition and other block development activitiesare in progress.

14.3 Initiatives through Joint Ventures and Subsidiaries:

In Banhardih coal block to be developed by PVUNL the JV between yourCompany & Government of Jharkhand Geological Report was received by PVUNL on27.07.19 Mining plan was submitted to MOC on 30.03.20. For land acquisition Section7(CBA act) was notified by MOC on 10.10.19. NOC under Section 8 was obtained from CoalControllers Organization on 31.12.19.

NTPC Mining Limited (NML)a wholly-owned subsidiary of your Companyhas been incorporated on 29.08.19 to meet various business/strategic objectives viz. fuelsecurity focused management readiness for future de-linking business risks andenhancement of shareholder value and to take care of entire mining business of yourCompany. Further M/s. E&Y has been appointed as transaction adviser for transfer ofCoal Mining business to NML. For transfer of all the mines to this Company your Companyhas approached Ministry of Coal. For transfer of mining area land and the mining rightsfor the first mine Pakri-Barwadih your Company has requested Ministry of Coal.Similarly for transfer of land for infrastructure R&R Colony etc. pertaining toPakri-Barwadih your Company has requested Revenue Department of Government of Jharkhand.

15. BUSINESS EXCELLENCE: GLOBAL BENCHMARKING

Your Company has developed and adopted a customized business excellenceModel called ‘NTPC Business Excellence Model' in line with globally acceptedPerformance Excellence frameworks such as the Malcolm Baldrige Model USA and EFQM Model ofEurope. The assessment process is aimed at identifying the area for enhancingstakeholders' engagement improving critical processes and developing leadershippotential. The outcome of this model is identification of organizational strengthopportunities for improvement issues of concern and best practices.

In the financial year 2019-20 22 generating stations were assessed bya team of certified assessors. Business Excellence Award for holistic excellence was givento your Company's sipat Project.

In its pursuit to embrace digital and paperless working environmentyour Company has implemented an IT enabled initiative- Corporate Performance Managementand Business Intelligence system for robust strategy execution communication analyticsand query response. The system enables reporting and automating few business processesthat provides effective decision support for the management across different tiers. Othercontemporary TQM concepts and techniques like ISO Quality Circles Professional Circles5S etc. have been deployed across the organization. Two Quality Circle teams Lakshya fromBarh station and Lakshaya from Jhanor-Gandhar station of your Company had participated inInternational QC Convention held at TokyoJapan during 23rd-26th September 2019. Barh QCteam "Lakshya" was awarded Silver Medal.

16. RENOVATION & MODERNISATION

Renovation and Modernization (R&M) of various units of your Companyand in particular the units which have completed 25 years of operations from commercialoperation date is considered essential to achieve the objectives such as safe operation ofthe units compliance of latest statutory norms/revised Environmental norms / IEGC CodeRecovery/improvement of Efficiency of the Units Reliability Improvement flexibleoperations to enable large scale integration of renewable Sustenance of operationsconsidering equipment health assessment observed during last 2-3 years overcomingconstraints on account of current operating conditions (changes in coal quality watersupply arrangements change in law etc.). Further Renovation and Modernization (R&M)of power plants is considered to be a cost-effective option and is considered as a keythrust area.

Investment approval has been accorded till date for R&M in 20stations (Coal & Gas based) is Rs 14603.60 Crores. As against this cumulativeexpenditure till 31.03.2020 is Rs 8033.44 Crores which includes R&Mcapital expenditure of Rs 514.88 Crores during FY 2019-20.

As a responsible Corporate citizen it has always been yourCompany's endeavor to ensure low levels of emission from its power stations. With aview to maintaining a clean atmosphere by reduction of particulate emission levels fromgenerating stations Renovation and Retrofitting of Electrostatic Precipitator (ESP)packages have been awarded for 60 units in 20 stations totaling 16.70GW and is underimplementation. With a view to removing technological obsolescence renovation of Control& Instrumentation (C&I) has been taken up in 9 coal based stations namelySingrauli-I (5X200MW) & Singrauli – II (2X500 MW) Korba –I (3X200MW) &Korba – II (3X500 MW) Ramagundam -I (3X200MW) & Ramagundam – II (3X500MW)Farakka-I (3X 200 MW) & Farakka-II (2X500 MW) Dadri Thermal- I (4X210MW) Unchahar- I(2X210MW) Talcher STPS-I (2X500MW) Kahalgaon-I (4X210 MW) and Rihand – (2X500 MW)comprising a total of 38 units. The total no. of units in which C&I R&M completedtill date is 34. Renovation of Control & Instrumentation (C&I) has also been takenup in 05 gas based stations namely Anta (419.33 MW 3 GT + 1 ST) Auraiya (663.36 MW 4 GT

+ 2 ST) Kawas (656.20 MW 4 GT + 2 ST) Dadri Gas (829.78MW 4 GT + 2ST) and Faridabad (432 MW 2 GT + 1 ST) prior to FY: 2019-20. The total no. of units inwhich C&I R&M has been completed in Gas Stations till Mar'20 is 15 GT/WHRBand 7 STG. On completion of these schemes C&I systems in these units have now beenbrought nearly on par with the new builds. R&M of Gas Turbines was completed in 14 GasTurbines in 4 stations namely (4x106 MW) in Kawas (4x111.19 MW) in Auraiya (3x88.71 MW)in Anta and (3x144.30 MW) in Gandhar.

17. HUMAN RESOURCE MANAGEMENT

17.1 Your Company takes pride in its highly motivated and competentHuman Resource that has contributed its best to bring your Company to its present heights.The productivity of employees is demonstrated by increase in generation per employee andconsistent reduction of Man-MW ratio year after year. The overall Man-MW ratio for theyear 2019-20 excluding JV/subsidiary capacity is 0.35 and 0.31 including capacity of JV/Subsidiaries (excluding manpower of NEEPCO and THDC which is recently acquired on 27thMarch 2020). Generation per employee was 14.92 MUs during the year based on generation ofyour Company's stations.

The total employee strength of your Company (including JV/subsidiaries) stood at 19165 as on 31.3.2020 against 20244 as on 31.3.2019.

Particular FY 2019-20 FY 2018-19
Your Company
Number of employees 17398 18359
Subsidiaries & Joint Ventures
Employees of your 1767 1885
Company in Subsidiaries & Joint Ventures
Total employees 19165 20244

The attrition rate of your Company executives during the year was 0.82%in comparison to last year at 0.78%.

17.2 Employee Relations

Employees are the driving force behind the sustained stellarperformance of your Company over all these years of Company's ascendancy. As acommitment towards your Company's core values employees' participation inManagement was made effective based on mutual respect trust and a feeling of being aprogressive partner in growth and success. Communication meetings with unions andassociations workshop on production and productivity etc. were conducted at projectsregions and corporate level during the year.

Both employees and management complemented each others' efforts infurthering the interest of your Company as well as its stakeholders signifying andhighlighting overall harmony and cordial employee relations prevalent in your Company.

17.3 Safety and Security

Occupational health and safety at workplace is one of the primeconcerns of your Company Management. Utmost importance is given to provide safe workingenvironment and to inculcate safety awareness among the employees. Your Company has a3-tier structure for Occupational Health and Safety Management namely at Stations/Projects at Regional Head Quarters and at Corporate Centre. Safety issues are discussedin the highest forum of Management like Risk Management Committee (RMC) ManagementCommittee Meeting (MCM) Regional Operation Performance Review (ROPR) Operation Reviews(ORTs) Project Reviews (PRTs) etc. Consultants are also engaged to strengthen the systemsand processes of safety in your organization.. On the occasion of "National SafetyDay" CMD along with the Board of your Company addressed all project / Stations. Allof your Company's stations are certified with OHSAS-18001/IS-18001. Six of ourstations are going for international level NOSA accreditation in Safety and Environment.Regular plant inspection and review with Head of Project/Station is being done. InternalSafety Audits by Safety Officers every year and External Safety Audits by reputedorganizations as per statutory requirement are carried out for each Project/ Station.Recommendations of auditors are regularly reviewed and complied with. Company leveldocuments like Operation Directives (OD) Operation Guidance Note (OGN) HazardIdentification and Risk Assessment (HIRA) etc. have been prepared and shared with allstations. Height permit and height check-list are implemented to ensure safety of workerswhile working at height. Adequate numbers of qualified safety officers are posted at allunits as per statutory rules/ provisions to look after safety of men & materials. Mockdrills were conducted with NDRF to prepare for any extreme on-site emergency. Sites areengaging the safety consultant of international repute to uplift safety standards. Forstrict compliance & 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.

Detailed emergency plans have been developed and responsibilities areassigned to each concerned to handle the emergency situations. Mock drills are conductedregularly to check the healthiness of the system. Most of your Company's plants havebeen awarded with prestigious safety awards conferred by various Institutions/ Bodies likeMinistry of Labour & Employment-Govt. of India National Safety Council Institute ofDirectors Institution of Engineers (India) in recognition of implementing innovativesafety procedures and practices.

The standard operating procedures are being followed for maintainingutmost safety in operations and processes in your Company to avert accidents. Security:Your Company recognizes and accepts its responsibility for establishing andmaintaining a secured working environment for all its installations employees andassociates. This is being taken care of by deploying CISF at all units/ RO Office/Projects of your Company as per norms of Ministry of Home Affairs. Concrete steps arebeing taken for upgrading surveillance systems at all projects/ stations by installingstate-of-the-art security systems.

17.4 Learning and Development

Your Company is successfully attracting nurturing and engaging peopletalent. We believe in motivating and managing the talent that leads to sustainablecompetitive advantage. Your Company have very pervasive three tier Learning andDevelopment (L&D) system starting from Employee Development Centre (EDC) at everystation six Regional Learning Institutes (RLI) one at each region. Power ManagementInstitute (PMI) the apex L&D centre of your Company is actively engaged in makingour people ready to lead in VUCA world. PMI take people through courses that make themready for agile technology adoption process innovation strategic business alignment anddemonstrating leadership. All the L&D initiatives are derived from business needs anddesigned to achieve Company's strategic objectives actualize business plan andcreate value for stakeholders. PMI has a campus full of greenery and the state-of-the-artphysical and digital infrastructure that creates globally comparable L&D ecosystem.Its classrooms are equipped with modern facilities including smart boards videoconferencing and session recording which supports contemporary pedagogy.

Your Company takes pride in being people friendly organization andstrives to ensure safe work place with zero incident reported. PMI in its role espousingthe safety as core value in L&D by establishing NTPC Safety Academy (NSA) at UnchaharUP. The academy is conducting safety related certificate courses across the organization.It has successfully conducted 20 IOSH (Institute of Occupational Safety and Health) andone NEBOSH (National Examination Board for Occupation Safety and Health) program in2019-20.

Our training delivery methods include a blend of classroom learningthrough simulation and case studies theater workshop community service module (for firsthand CSR feel to young ETs) e-learning platform video and web platforms etc. PMI hascovered 6000 executives in management learning through HMM (Harvard Manage Mentor) and2000 executives in the power plant technical skills domain by licenses from GeneralPhysics (GPiLearn). Various in-house e-platforms that provide access to diverse e-Learningresources to complement the learning to meet the unique learning needs across demographicspectrum of generations engaged at work place have been provided. An e-library of 25000e-books 1000000 articles reports and journals supports employees' knowledgeup-gradation. The L&D interventions are designed after a multidimensional‘Training Need Analysis' (TNA) for enhancing technical functional strategicand leadership skills with focus on business objectives of the Company. PMI conducted 300+training programs during FY19-20 covering nearly 9000+ professionals resulting in atotal of approximately 50000 learning man-days.

Your Company is aware of pivotal role of effective leadership and toensure continuity in leadership pipeline 138 middle level executives were given rigorousinputs under 2 weeks strategic leadership development program (10X). The program isdesigned to equip the participants with ten strategic competencies to enable them to takeleadership roles and strategic positions in the days to come. Besides creatingcapabilities by providing training to the employees across Indian power sector PMI isextending its support towards building capability among SAARC & Middle East countries.In the year 2019-20 PMI has trained multiple teams from Bangladesh and Saudi Arabia.

In recognition to its pioneering efforts Your Company was awarded theglobally acknowledged ATD Best Awards (in continuous succession of four years i.e 20172018 2019 & 2020) nationally acclaimed ISTD award for 2017-18 and 2018-19 and theBML Munjal Award 2018 (Sustained Excellence Category). Further your Company was awardedHCM Excellence Award (Silver Medal) in 2019 by Brandon Hall group in the best use ofblended learning category. These awards recognize organizations that demonstrateenterprise-wide success as a result of L&D and talent development practices.

17.5 Employee Welfare Trusts

Your Company has established following Trusts for welfare ofemployees:-

- NTPC Limited Employees Provident Fund Trust manages Provident Fund ofemployees of your Company.

- NTPC Post Retirement Employees Medical Benefit Trust manages postretirement medical benefit fund of the employee including separated employee of yourCompany.

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

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

17.6 Women Empowerment

Women employees constituted nearly Seven percent (as on 31.03.2020) ofyour Company's work force. During the year programmes on women empowerment anddevelopment including programmes on gender sensitization were organized. Your Companyactively supported and nominated its women employees for programmes organized by reputedagencies. To maintain work life balance and to manage career aspiration paid child careleave is provided to women employees.

17.7 Other Welfare Measures

In your Company an entire gamut of benefits from paid Childcareleave telemedicine medical smart card for hospitalization cases to Post-retirementMedical benefits (PRMS) to Family Economic Rehabilitation named Sneh Kiran Scheme areextended to employees to meet any exigency 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 itsemployees. Far removed from the buzz of cities our townships are the epitome of serenitynatural beauty and close community living. A range of welfare and recreation facilitiesincluding schools hospitals shopping centres recreation centres club gym pool etc.are provided at the townships to enhance the quality of life & the well-being ofemployees and their families. In addition cultural programmes involving employees andtheir families are also conducted.

18. SUSTAINABLE DEVELOPMENT

Sustainability at your Company is being driven by two motives: a. Tomake fundamental changes in the way we operate our businesses to transform ourselves asthe most sustainable power producer b. To become more transparent in the timely disclosureof our social environmental and economic performances.

To achieve the first objective your Company has identifiedDecarbonization Water Biodiversity Circular Economy Safety Supply chain and BusinessEthics as priority sustainability areas and strategizing on them to ensure theCompany's business sustainability. Your Company is developing short-term andlong-term measurable goals and objectives pertaining to these areas which is also alignedto the Company's Corporate Plan 2032. To start with for reducing water footprint across-functional water committee has been formed to do benchmarking of the Company'ssystems and practices with peers and identify best practices across industries. YourCompany has adopted the triple bottom line approach for focusing on people planet andprofit treating them as primary pillars for business sustainability. We believe thatdevelopment should not endanger the environment & natural eco-systems.

Your Company is preparing the sustainability report adhering with theglobal reporting initiative standard and as per IIRC pattern. We accord due importance forreport assurance process and thereby sustainability report of 2018-19 assurance was gotdone using GRI standard and as per ISAE 3000 assurance standard. Sustainability report isassured with reasonable level of assurance in comprehensive option by M/s EY IndiaLimited. EY has used an important management tool helping your Company to relook into thesystems processes and procedures. Further your Company has developed and deployed CSR& SD policy proactively meeting requirements of schedule VII of Company act 2013.Sustainable Development Plan for FY 2019-20 was prepared and approved by CSR & SDBoard Sub Committee of your Company.

Your Company is focusing on waste management water managementpromotion of renewable energy and biodiversity / afforestation activities. Action planbased activities have been implemented at various stations of your Company during theyear. To further strengthen sustainable development activities following new initiativeswere taken during 2019-20.

Capacity building programs on stakeholders engagement and materialityanalysis were organized at all the major stations of your Company for widespreadSustainable Development initiatives. Development of Supply Chain Policy for evolvingenvironmental social and governance aspects of sustainable development at the supplierend business activities and their compliance for progressively making supply chain systemgreener in your Company. Policy with strategy is in advance stage of finalization.

Your Company was declared winner of CII-ITC Sustainability Award 2019.It is the most coveted sustainability award in the country. Winning the Award has placedyour Company among the top performers and further enhanced brand image of your Company.

Now your Company is focusing on improvement in ESG – ESH ratingbeing carried out by International Analysts i.e. MSCI Sustainable ratings Sustainalyticsand DJSI who benchmark your Company with International Power Utilities involvingcompliance of International statutory laws and norms.

Your Company is working on increasing RE Capacity content further andtargeting 10000 MW by 2022.

18.1 Inclusive Growth–Initiativesfor Social Growth 18.1.1Corporate Social Responsibility:

CSR has been synonymous with your Company's core business of powergeneration. Your Company's spirit of caring and sharing is embedded in its missionstatement. Your Company has a comprehensive Resettlement

& Rehabilitation (R&R) policy covering community development(CD) activities which has been revised and updated from time to time. CD activities ingreen field area are initiated as soon as project is conceived and there after-extensivecommunity / peripheral development activities are taken up along with the projectdevelopment. CSR Policy was formulated in July 2004 and revised in 2010 2016 and 2019 as"NTPC Policy for CSR & Sustainability" in line with Companies Act 2013 andDepartment of Public Enterprises (DPE) Guidelines for CSR. It covers a wide range ofactivities including implementation of a few key programmes through NTPC Foundation.

Focus areas of your Company's CSR & Sustainability activitiesare Health Sanitation Safe Drinking Water and Education. However Capacity BuildingWomen Empowerment Social Infrastructure livelihood creation and support throughinnovative agriculture & livestock development support to Physically ChallengedPerson (PCPs) and activities contributing towards Environment Sustainability have alsobeen taken up. Your Company commits itself to contribute to the society discharging itscorporate social responsibilities through initiatives that have positive impact onsociety especially the community in the neighborhood of its operations by improving thequality of life of the people promoting inclusive growth and environmentalsustainability. Preference for CSR & Sustainability activities is being given to localareas around your Company's operations ensuring that majority CSR funds are spentfor activities in local areas. However considering Inclusive Growth & EnvironmentSustainability and to supplement Government effort activities are also taken up anywherein the country. During the year about 500 villages and more than 450 schools have beenbenefitted by your Company's various CSR initiatives at different locations. YourCompany's CSR initiatives have touched in one way or the other the lives of around18 lakhs people residing at remote locations.

Apart from the CSR activities undertaken in and around stations toimprove the living conditions of the local communities other CSR initiatives undertakenpan- India are mentioned in the Annual Report on CSR activities annexed with this DirectorReport. Your Company spent Rs 304.92 Crore during the financial year 2019-20 towards CSRinitiatives which surpassed the prescribed two percent amount of Rs 252.68 Crore thusachieving a CSR spend of 2.41%.

18.1.2 NTPC Foundation

NTPC Foundation funded by your Company is engaged in serving andempowering the differently abled and economically weaker sections of the society. Detailsof expenditure incurred and initiatives undertaken by your Company under CSR are coveredin the Annual Report on CSR annexed as Annex-VII to this Director Report.

18.1.3 Rehabilitation & Resettlement (R&R)

Your Company is committed to help the population displaced on accountof land required for execution of the projects and has been making efforts to improve theSocio-economic status of Project Affected

Families (PAFs). In line with its social objectives your Company hasfocused on effective Rehabilitation and Resettlement (R&R) of PAFs and carrying outCommunity Development (CD) works in Project Affected Villages (PAVs) and vicinity.

R&R activities are initiated at your Company's projects byundertaking need based community development activities in the area of health educationdrinking water capacity building infrastructure etc. by formulating ‘InitialCommunity Development (ICD) Plan' in consultation with concerned Panchayats DistrictAdministration and opinion makers of the locality. Your Company addresses R&R issuesin line with extant R&R Policy of your Company/Central Govt. / State Govt. Policy/Guidelines with an objective that after a reasonable transition period the conditions ofaffected families improve or at least they regain their previous standard of livingearning capacity and production levels. Your Company revised its R&R Policy 2010 inthe year 2017 to incorporate R&R entitlements as per ‘The Right to FairCompensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act2013' (RFCT LARR Act 2013). As per the your Company R&R Policy-2017 aligned inline with the RFCTLARR Act 2013 a Social Impact Assessment (SIA)/Census Survey will beconducted by the State Govt. during the process of land acquisition for the project so asto collect detailed demographic data of the area which shall form the basis for thepreparation of ‘Rehabilitation and Resettlement (R&R) Scheme by the appropriateGovt. The R&R Scheme consists of measures for Rehabilitation & Resettlement andinfrastructure in Resettlement Colony (RC).

In addition in the R&R Policy-2017 of your Company a provision hasbeen kept for need based community development (CD) activities to be taken up in projectaffected villages where Project Affected Families (PAFs) continue to reside even afterland acquisition as also in vicinity of the project so as to ensure that the displacedfamilies in the RC or the affected families settling in neighboring villages may securefor themselves a reasonable standard of community life.

R&R Plan expenditure is a part of Capital cost of the project andthe Plan is implemented in a time bound manner so as to complete its implementation by thetime 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 R&R Plan implementation for future learning. R&R activities were implemented atthe Greenfield / Brownfield Thermal Power projects -Barh North-Karanpura DarlipaliGadarwara Khargone Lara Kudgi Telangana Mouda Solapur Tanda-II Meja NPGC KantiPatratu Hydro projects - Tapovan Vishnugad & Rammam-III and Coal Mining Projects atPakri-Barwadih Chhatti-Bariatu Kerendari Dulanga and Talaipalli where R&R / CDPlans were finalized in consultation and participation of the stakeholders and approvedearlier.

Re-appropriations in R&R / CD Plans as required on case-to-casebasis for specific projects were also approved to take care of the local requirements andrequests from district administration/ stakeholders. during implementation.

Focus areas for Community Development activities were:

Drinking water – Planning and implementation foraccess to drinking water for 100% coverage of all project affected villages of yourCompany projects under construction is being undertaken.

Capacity building / Skill upgradation – Trainingprograms are conducted by various projects towards skill enhancement. The support todependents of PAFs for ITI training was also extended by various projects.

Education – Construction activities are almostcomplete for Medical College cum Hospital at Sundargarh (Odisha) while a portion of thesame for 200-bed facility has already been handed over to Govt. of Odisha which hasstarted functioning as Covid-19 Care Centre cum Isolation ward for Corona virus infectedpatients. Construction of an Engineering College at Shivpuri (MP) has been completed whichis ready for handover to State Govt. of MP. Support has been extended for construction ofHydro Engineering College Bilaspur (Himachal Pradesh). Your Company is providingfinancial assistance to the Govt. of Chhattisgarh towards upgradation of infrastructureand other basic amenities including setting-up of latest equipment in the Govt. MedicalCollege at Raigarh.

Health - For the benefit of PAFs and neighboringpopulation Mobile Health Clinic Medical camps and dispensaries are being operated forcomprehensive health coverage of PAFs at various projects. Support is being extended toDistrict Administration Peddapalli (Telangana) for augmentation of another floor andequipment at Govt. Hospital.

18.2 Environment Management –

Environment Policy of your Company:

"To provide cleaner energy by committing to highest possiblelevels of performance in environmental compliance practices and stewardship."

Your Company has always envisaged environment protection and managementalong with optimized usage of natural resource as inherent feature at the time ofinception of all project and focuses its efforts to minimize the impact of its plantoperations on surrounding environment and concerned ecosystem. Your Company undertakescomprehensive environment management plan right from conception of project selection ofsite resource selection (Land Coal & Water source) and technology for powergeneration and pollution control. In case of old stations your Company undertakes massiverenovation & modernization to upgrade pollution control equipment wherever necessary.Your Company has also taken initiative for installation of Flue gas desulfurization (FGD)system for emission control and optimization & implementation

SOx

emission control to of appropriate technology for Nox comply withrevised emission norms as per stipulated timeline for respective station/ unit.

In new projects around 13-15% of the project cost is spent on mainenvironment pollution control systems for air water and soil such as ElectrostaticPrecipitators (ESPs) Liquid Waste Treatment Plants (LWTP) Ash Water Recirculation System(AWRS) Coal Settling and Separation Pit (CSSP) Dry ash extraction system (DAES) dustextraction & suppression system sewage

treatment plant and desulfurization and DeNOx systems.

Continuous emission monitoring system (CEMS) Effluent qualitymonitoring system (EQMS) Continuous ambient air quality monitoring system (CAAQMS) areoperational at the operating stations and included in EPC packages for the upcoming units/projects. Your Company has adopted advanced and high efficiency technologies and

such as super critical boilers at new stations DeNOx

FGD in all upcoming green field projects.

Your Company is augmenting its capacity with green power by installinghydel power wind power solar power systems in a big way hybrid power plant incombinations e.g. Wind & Solar Solar & Thermal and small hydel power systemsattached to its thermal power stations to encourage garnering of renewable energyresources. These measures are aimed not only to achieve reduction in pollution alongwithoptimized consumption of precious natural resources but also to lead to reduction inspecific water and Carbon footprints of your Company. All stations of your Company are ISO14001 certified for their sound environment management systems and practices. Your Companyhas signed Memorandum of Understanding (MoU) with Central Pollution Control Board (CPCB)for participation with financial support for installation & commissioning of 25 numberof Continuous Ambient Air Quality Monitoring System (CAAQMS). The MOU enables totalsponsorship of

Rs 80.0 Crore for procurement installation commissioning and O&Mof these stations in 13 cities of six states and three Union Territories for a period of 7seven years. Data from these CAAQMS will be inputs for Air Quality Index evaluation ofthese cities. Towards its commitment to recycle recover energy/ material from entireplastic waste in eco-friendly manner your Company has released "Integrated PlasticManagement Policy-2019" to ensure Zero contribution of single-use plastic waste toenvironment from Company's establishment & operations.

18.2.1 Control of Air Emissions:

High efficiency Electro-static Precipitators (ESPs) with efficiency ofthe order of 99.97% and above with advanced control systems have been provided in all coalbased stations to maintain Particulate Matter (PM) emissions well below the applicablepermissible limits. All upcoming units have been planned & designed with

state of art Air Pollution Control systems (ESPs DeNOx

and FGD system) with high efficiency to meet new emission norms.Performance enhancement of ESPs operating over the years is being enhanced to achieve thedesired emission level to meet revised emission levels by augmentation of ESPs size(increased height additional fields charging of dummy fields retrofitting of advancedESP controllers new technology i. e. MEEP

(Moving electrode Electrostatic Precipitators) and adoption of soundO&M practices.

For control of SOx first wet FGD has been commissioned

and operational at Vindhyachal Station. Erection of wet FGD at DadriStage-II is in advanced stage. FGD based of dry sorbent injection (DSI) system erectionwork completed at Dadri (St-I) and in advanced stage of erection in two units of Tanda(St-I) to meet the

emission norms for SOx. Your Company has awarded

FGD packages for 56GW+ capacity and execution is in emission as

progress to comply the new norms for SOx

per the timeline stipulated by the regulator. control in coal-firedplants is presently achieved by

NO x

controlling its production by adopting best combustion practices(primarily through excess air and combustion temperatures optimization). To lower down the

NOx

emission to the extent possible levels combustion modification hasbeen awarded for 20GW+ capacity and completed at majority of units and rest is in advanced

stage of execution. To comply with new norms for NOx

emission pilot study based on SCR/SNCR technology at 11 locationsconducted and report submitted to concerned authorities for consideration and to find out

the optimal solution and suitable technology for DeNOx

system suitable for Indian Coal.

Change of secondary fuel from HFO to alternative fuel (LDO or LSHShaving low sulfur content) scheme implemented in all stations in NCR and state of UP andemission during the startup

Haryana to minimize the SOx

of coal based units.

18.2.2 Control of water pollution:

Your Company as a responsible corporate entity for environment hasproactively initiated steps towards water stewardship in power generation sector. Companyreleased its Water Policy-2017 followed by Rain Water harvesting Policy-2018 to set ownbenchmark in water consumption in power generation by setting its aim & objectives forvarious 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 watertreatment facilities such as state of art technology based sewage Treatment Plant (STP)Liquid Waste Treatment Plants (LWTP) Coal Slurry Settlement Pit (CSSP) Ash WaterRecirculation System (AWRS) for treatment and reuse of treated effluents. For optimum useof water in all stations of your Company are having closed cycle condenser cooling watersystems with higher Cycle of Concentration (COC) adoption of high concentration slurrydisposal (HCSD) system rain water harvesting system reuse of treated effluent in ashslurry disposal and reuse of treated sewage effluent for horticulture purposes are fewmeasures implemented in all stations. For effective monitoring of water use flow meterswith integrators installed at all designated locations in all stations.

18.2.3 New Environmental Norms Implementation Plan and Challenges:Online Coal Ash Analyser

New environmental norms have mandated use of coal with ash content notexceeding 34% on quarterly average basis for coal based Thermal Power Plants located faraway from coal mines/sources. To ensure compliance to that your Company has takeninitiative and Online Coal Analyser is being installed in all non-pithead power plants andall upcoming coal based thermal power plants. Further the type of analyser selected notonly represents the ash content but also the various elements of coal which will be usefulfor enhancing the process efficiency and ease of operation & maintenance."Approval to operate" has already been accorded by AERB for operation of coalanalysers installed at Dadri Kahalgaon and Unchahar STPPs.

Fly Ash Classification & Bagging System

With the changing environmental norms and land acquisition issues ashdisposal is a serious challenge. To mitigate the issue increased ash utilization is apotential solution. Your Company in its endeavour to promote ash utilization isconsidering implementation of fly ash classification system and Bagging Plant for itsupcoming coal based thermal power projects at Singrauli III and Lara II. Furtherfeasibility report has been prepared for implementation of Classification & Baggingsystem at your Company Simhadri Project.

SOx NOx & SPM reduction

In order to comply with the applicable new environmental norms notifiedby MOEF & CC vide gazette notification dated 07.12.2015 pertaining

to SO2 FGD system will be required to be installed

in the existing as well as under construction coal fired power plants.Your Company along with its JV Companies is having around 155 units of 65 GW capacity i.e.all operating as well as under construction units. Your Company is taking a lead role inthe implementation of FGD. Till date your Company has issued tenders for 139 units ofaround

63 GW capacity that covers all units operating as well as underconstruction except some smaller units. Further FGD in Vindhyachal stage-V is already inoperation and Dry Sorbent Injection (DSI) system for reduction of commissioned in 2 unitsof

SO2

210 MW at Dadri. FGD installation Work in 57260 MW is underway. Thishas also set up an example in Industry for NTPC's commitment towards the greenerenvironment. technique shall

For controlling the NOx various De-NOx

be implemented based on the limit prescribed in the norms. Your Companyhas started working on this. Combustion Modification in five units consisting of 2 unitsof Dadri 2 units of Jhajjar and 1 unit of VSTPP have already been completed.

The emission levels in the country will plummet

SO 2 & NOx

to 30% of what it is presently after installation of FGD technologyeven after adding capacity of another 70 GW from the present year.

18.2.4 Real Time Environment Monitoring System

Your Company remains a benchmark setter in Environment monitoring &protection. As pioneer in environment monitoring we have already installed Ambient AirQuality Monitoring Stations (AAQMS) consisting of

SO2 NOx CO PM 2.5 PM10 analysers and Continuous emission monitoringsystems (CEMS) consisting of SO2 NOx CO CO2 Particulate matter analysers for Stackemission and Effluent Quality Monitoring System (EQMS) consisting pH Conductivity BODCOD TSS oil in water analysers for Effluent monitoring in all our Stations/ Units.

Mercury analysers for emission and air monitoring are installed in all800 MW units. All required environmental monitoring data is made available to CPCB &SPCB as per their requirement.

Your Company is already installing additional air and water pollutioncontrol systems at various projects to comply with the applicable new environmental normsnotified by MOEF & CC vide gazette notification dated 07.12.2015.

Your Company has brought out Bio-Diversity Policy on 31.07.2018 anddeveloped strategy for its implementation in and around its business units forconservation and enrichment of bio-diversity.

18.2.5 Tree Plantation:

Your Company has been undertaken tree plantation covering vast areas ofland in and around its projects and till date more than 35 million trees have been plantedthroughout the country including 10 lakh trees planted during 2019-20 under acceleratedafforestation programme.

Your Company has taken initiative on pilot project of Miyawakiplantation technology and planted more than 3000 saplings at Ramagundam station whosebiomass production per unit area is 16 times higher than the conventional plantation.Replication of this technology in plantation will create more efficient carbon sink forCompany.

The afforestation has not only contributed to the‘aesthetics' but also helped in carbon sequestration by serving as a‘sink' for pollutants and there by protecting the quality of ecology andenvironment. Further your Company has embarked upon long-term Memorandums with Stateauthorities to assist National Commitment of NDC in COP 21 by planting 6.0 millionsaplings during 2020-26 @ 1 million per year.

Your Company has also planned to take up project of forestry inKhargone and Indore Districts of Madhya Pardesh located on right bank and left bank ofNarmada River respectively for managing selected watershed forests and riparianlandscapes along Narmada River and submitted a joint proposal along with Global initiative(GGGI) India and Indian Institute of Forest Management (IIFM) Bhopal to USAID.

18.2.6 ISO 14001 & OHSAS 18001 Certification:

Amongst all commercially operational stations of your Company 19stations have ISO-14001 and OHSAS 18001 certifications and for four stationscertifications are under renewal by reputed National and International certifying agenciesin recognition of its sound environmental management systems and practices. Certificationis in process for newly commercial stations of your Company.

18.3 Quality Assurance and Inspection (QA&I)

Your Company lays great emphasis on the quality of plant and machinerythat are sourced for power plant construction and also on the spares and consumables thatare required to support the day to day operations of the plant.

The model followed for Quality Assurance seeks to ensure that the PlantReliability is realized through thoughtful planning and building Quality Attributesstarting from raw materials manufacturing inspection and testing up to erection andcommissioning up to erection and commissioning. Each item secured for construction issubject to rigorous tests and inspection at the appropriate stages to ensure conformity tospecified requirements.

Your Company has committed adequate resources for maintaining effectiveQuality Management System. This includes Corporate level Quality Assurance teamInspection Engineers at various demanding locations and projects.

Your Company's robust performance on all operational parametersis a testimony to the soundness of the quality system which is in operation. Your Companyis represented in various technical committees of ISO BIS and IEC and is activelycontributing to upgrade of power sector related standards and technology to promotealignment with best practices followed internationally. Quality assurance and inspectionrelated business processes are being made digital in line with organization emphasis ofgoing digital.

18.4 Clean Development Mechanism (CDM)

Your Company is pioneer in undertaking climate change issuesproactively. Your Company has taken several initiatives in CDM Projects in Power Sector.

Five of its renewable energy projects viz. 5 MW Solar PV Power Projectat Dadri 5 MW Solar PV Power Project at Port Blair (A&N) 5 MW Solar PV Power Projectat Faridabad and 8 MW small hydro power project at Singrauli and 50 MW Solar PV Plant atRajgarh (MP) have already been registered with United Nations Frame Work Convention onClimate Change (UNFCCC) CDM Executive Board.

15 MW Solar PV Power project at Singrauli 10 MW Solar PV project atTalcher and 10 MW Solar PV Power Project at Unchahar is registered in UNFCCC CDM Programmeof Activities (PoA).

6173 nos. of Certified Emission Reductions (CERs) for 5 MW Solar PVPower Project at Port Blair (A&N) have been issued by UNFCCC CDM Executive Board.Further another 5842 nos of CERs have also been issued by UNFCCC CDM Executive Board for5 MW Solar PV Power Project at Dadri and 21011 nos. of Certified Emission Reductions(CERs) has been issued for 5 MW Solar PV Power Project at Faridabad.

Further Registration of 50 MW Solar PV power project at Anantpur 260MW Solar PV power project at Bhadla 250 MW Solar PV power project at Mandsaur and 50 MWWind power project at Rojmal has been done in Verified Carbon Standard (VCS) program.Total of 1085005 Voluntary Emission Reduction (VERs) has been issued for these projectsregistered with VCS Board.

For the remaining capacity of Anantpur Solar project priorconsideration form has been sent to UNFCCC and MOEF. Also prior consideration forms havebeen sent to UNFCCC and MOEF for our upcoming following Solar Projects: 140 MW and 85 MWat Bilhaur 20 MW at Auraiya100 MW floating solar at Ramagundam 25 MW floating solar atSimhadri 70 MW & 22 MW floating solar at Kayamkulam 160 MW at Jetsar 20 MW floatingsolar at Auraiya 20 MW at Rihand and 400 MW CPSU Scheme Tranche-I projects.

Further Prior consideration form for our upcoming Solar Projects underCPSU scheme Tranche-II totaling 1292 MW is in the process to be sent to UNFCCC and MOEF .

18.5 Ash Utilisation

During the year 2019-20 604.76 lakh tonnes of ash was generated and73.31 % viz. 443.33 lakh tonnes of ash had been utilized for various productive purposesby your Company. Important areas of ash utilization are – cement & asbestosindustry ready mix concrete plants (RMC) road embankment brick making mine filling& land development. Your Company are also pursuing new initiatives for fly ashutilization like fly ash based geo-polymer road transportation of fly ash from pitheadpower stations to fly ash consumption centers setting up ash based light weight aggregateplant.

Pond ash from all stations of your Company is being issued free of costto all users. Fly ash is also being issued free of cost to fly ash/ clay-fly ash bricksblocks and tiles manufacturers on priority basis over the other users from all coal basedthermal power stations. The funds collected from sale of ash is being maintained in theseparate 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 documentdealing with the ash utilization issue in an integral way from generation to end product.This policy aims at maximizing utilization of ash for productive usage along withfulfilling social and environmental obligations as a green initiative in protecting thenature and giving a better environment to future generations.

The quantity of ash produced ash utilized and percentage of suchutilization during 2019-20 from your Company's Stations is at Annex- VIII of thisDirector Report.

18.6 CenPEEP – towards enhancing efficiency and protectingEnvironment

Your Company initiated a unique voluntary program of GHG emissionreduction by establishing ‘Center for Power Efficiency and Environmental Protection(CenPEEP)' and under this program it is estimated that cumulative avoided is 49.61million tonnes since

CO2

1996 by sustained efficiency improvements.

CenPEEP is instrumental in implementation of Energy EfficiencyManagement System (EEMS) consisting of periodic assessments field tests performance gapanalysis deviations and updation of action plans at all stations.

CenPEEP is working for efficiency and reliability improvement instations through strategic initiatives development and implementation of systems andintroduction of new techniques & practices. Critical efficiency parameter draft powerconsumption efficiency improvement through overhauling are monitored. PI based real timeprograms and dashboards are in use for real time tracking of plant parameters. Theseprograms also assist operating engineers in tracking the gaps in heat rate and auxiliarypower consumption trending the degradation of equipment performance and taking correctivemeasures.

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

Water Withdrawal per year (in lakh KL)

Sl. Type of Water No. Quantity Consumed 2019-20
1 Total Water withdrawal 5994.97*
2 Per unit withdrawal 3.15* Litre/kwh

*Water calculated on closed loop systems

CenPEEP is also involved in structured and statutory energy auditswhich helps to identify potential areas of improvement in APC reduction to be addressedwithin time bound implementation schedule. CenPEEP is actively involved in training anddevelopment of power professionals of your Company and other utilities in the power sectorin the areas of Boiler & Auxiliaries Turbine & Auxiliaries Cooling Towers RCMPdM technologies etc.

Your Company has taken Electric Power Research Institutes'membership (EPRI) in the areas of Boiler life & Availability improvement SteamTurbine-Generators & Aux. system and Combustion & Coal Quality impacts to increasethe knowledge expertise of the Company and undertake collaborative research projects forimproving efficiency and reliability of units.

CenPEEP coordinated implementation of Perform Achieve & Trade(PAT) scheme under Prime Minister's National Mission on Enhanced Energy Efficiency(NMEEE) in your Company's coal & gas plants. As per notification yourCompany's coal and gas stations exceeded the Net Heat Rate improvement targets andearned net 170653 EScerts (Energy saving certificates) in PAT-1 cycle. Your Companyparticipated in EScerts trading & purchased required EScerts. Subsequent to thetrading your Company is having 161759 EScerts that will be used for PAT – II cycle.After completion of PAT cycle II in March 2019; M&V audits have been carried out inall stations. Notification of EScerts earned in PAT cycle II is awaited. Performance &Guarantee tests are being coordinated by CenPEEP which includes approval of procedureconducting test & its evaluation.

Your Company has taken an initiative for complete replacement ofexisting lighting with LED light fittings at its all stations including townships. TillMarch 2020 10.1 lakh LED fittings (83.2 % of the population) have been replaced on pan-NTPC basis.

19. NETRA

Your Company understands the importance of R&D in the ever-changingdynamics of the energy sector. It also firmly believes that assimilation of knowledge andits conversion into technologies shall be the key differentiator in coming times.Technological progress thus achieved in aggregation improves the country's energysecurity economic growth and environmental sustainability. Concurrently it plays acrucial role in determining the competitiveness of companies in the marketplace - bothnationally and internationally. Your Company has assigned 1% of PAT for R&D activitiesfocused to address the major concerns of the sector as well as the future technologyrequirements of the sector. In this effort your Company has established NTPC EnergyTechnology Research Alliance (NETRA) as state-of-the-art center for research technologydevelopment and scientific services in the domain of electric power to enable seamlesswork flow right from concept to commissioning.

Through our R&D center NETRA we are constantly making efforts toaddress the major concerns of the power sector - as well as exploring and tapping thepotential opportunities available.

The focus areas of NETRA are - Efficiency Improvement

& Cost Reduction; New & Renewable Energy; Climate Change &Environmental protection which includes water conservation Ash utilization & WasteManagement. NETRA also provides Advanced Scientific Services to its stations and otherutilities in the area Non-Destructive Examination (NDE) Metallurgy & failureanalysis oil/water chemistry environment electrical Computational Fluid Dynamics(CFD) etc. for efficient and reliable performances. NETRA laboratories are ISO 17025accredited.

Research Advisory Council (RAC) of NETRA comprising eminent scientistsand experts from India and abroad is in place to steer research direction. Padma BhushanDr. V.K. Saraswat former Secretary DRDO and member of NITI Aayog is the Chairman ofRAC.

Scientific Advisory Council (SAC) chaired by Functional DirectorDirector (Operations) and other senior NTPC's Officials as its member providesdirections for undertaking specific applied research projects aimed to develop techniquesin power plant for efficient reliable and environment friendly operation with emphasis onreducing cost of generation. NETRA focused on both in-house technology development as wellas collaborative research. Your Company networked with various prestigious national andinternational institutions to harness the specialized knowledge and expertise lying withthose institutes. By collaborating with various institutes your Company has beensuccessful in promoting research in the field of Ash Utilization Hydrogen CarbonCapture Sensors CFD Robotics Drones Renewables Environment NDE and Water chemistryetc.

NETRA has collaborations with National Institutes such as IIT-DelhiIIT–Bombay IIT-Madras IIT–Kanpur IIT–Kharagpur IIT-DhanbadIISc-Bangalore RGIPT-Amethi CSIR lab's such as IIP- Dehradun CMERI- DurgapurCGCRI- Kolkata CBRI-Roorkee etc.

NETRA also has collaborations with international institutions such asNETL-USA Curtin University-Australia; Newcastle University-Australia VGB-Germany DLR /ISE-Germany Tokyo University etc. NETRA efforts are constantly directed towardsInstitutional Capacity Building. Various activities such as workshops on applied roboticsin Power plant ESP Efficiency Improvement using CFD modeling Capacity Building Trainingon NDE practices and Concentrated Solar Thermal (CST) were carried out by NETRA. FurtherNETRA Meet was also conducted for the very first time to promote synergy between R&DCentre and various your Company's stations. Further ‘NTPC InnovationScheme' was also launched to foster R&D activities within your Company. Five (5)books were also published in addition to various research papers.

Further to boost your Company R&D activities Phase-II of NETRAinfrastructure is under construction with approx. 21000 sq. m floor area.

The details of activities undertaken by NETRA are given in Annex-III ofthis Director Report.

20. IMPLEMENTATION OF OFFICIAL LANGUAGE

Your Company took several initiatives for the progressive use of Hindiin the day to day official work and implementation of Official Language policy of theUnion of India in your Company. The compliance of Official Language policy in our projectsand regional headquarters was inspected and need based suggestions were given to therespective Heads of offices in this regard.

Quarterly meetings of Official Language Implementation Committee wereheld in which extensive discussions took place on progressive use of Hindi and the waysand means to bring about further improvements. Hindi Divas was celebrated on 14thSeptember 2019 and Hindi Fortnight was organized from 01-15 September 2019 at theCorporate Centre as well as regional headquarters and projects/stations to createawareness among the employees associates and their family members. Our biannual Hindimagazine "Vidyut Swar" was published (in digitized form) to promote creativewriting in Hindi. A mega Kavi Sammelan was organized during November 2019. Your Companyhad awarded the 2nd prize in the best magazine category by TOLIC (NARAKAS) Delhi inFebruary 2020.

Employees were motivated to use Hindi in official work by organizingHindi workshops Unicode Hindi Computer Training along with Hindi e-tools andpopularization of Hindi incentive schemes. Hindi webpage was updated with importantinformation of Rajbhasha for employees. The second sub-committee of Parliament on officialLanguage had inspected our units reviewed the progress of Rajbhasha implementation andappreciated our efforts.

Your Company's website also has a facility of operating in abilingual form in Hindi as well as in English.

21. VIGILANCE

21.1 Vigilance Mechanism:

Your Company ensures transparency objectivity and quality of decisionmaking in its operations and to monitor the same your Company has a Vigilance Departmentheaded by Chief Vigilance Officer a nominee of Central Vigilance Commission. TheVigilance set up in your Company consists of Vigilance Executives in Corporate Centre andProjects. In Projects the Vigilance Executives report to the Project Head inadministrative matters but in functional matters they report to Chief Vigilance Officer.

Your Company's Corporate Vigilance Department consists of fourCells as under:

• Vigilance Investigation and Processing cell;

• Departmental Proceedings cell;

• Technical Examination cell; &

• MIS cell

These cells deal with various facets of vigilance mechanism. Thevigilance works have been assigned region wise Vigilance Officers at Corporate Centre(Regional Vigilance Executive) for speedier disposal. Senior officials of VigilanceDepartment comprising GM (Vigilance) Regional Vigilance Executives and Head of DPC/MISCell meet regularly to discuss common issues having in order to ensure efficient anduniform working in all Regions. This facilitates transparency efficiency andeffectiveness of Vigilance functionaries by making use of collective knowledge experienceand wisdom of Vigilance Executives as well as breaking of compartmentalization andabridging of strengths & weaknesses.

During 2019-20 Vigilance department of your Company investigated 84complaints out of which 68 complaints were finalized while the remaining 16 complaintswere under various stages of investigation as on 31.03.2020. Appropriate disciplinaryaction was initiated against the involved employees alongwith system improvementswherever found necessary. 187 surprise checks were conducted during the period andrecovery of Rs 0.87 crore was affected against various discrepancies detected duringinvestigation. During the last year a total of 54 Preventive Vigilance Workshops wereconducted at various projects/ places in which 1252 employees participated.

21.2 Implementation of Integrity Pact

The Integrity pact has been implemented in your Company since 2009.Presently tenders having estimated value of Rs 10 crore (excluding taxes and duties) andabove are covered under the Integrity Pact.

21.3 Implementation of various policies

Fraud Prevention Policy has been implemented in your Company andsuspected fraud cases referred by the Nodal Officers to Vigilance Department areinvestigated immediately to avoid/ stop fraudulent behaviors as defined in "FraudPrevention Policy". Whistle Blower Policy has also been in place in your Company asper SEBI guideline to strengthen a culture of transparency and trust in the organizationproviding employees with a framework/ procedure for responsible and secure reporting ofimproper activities (whistle blowing) within the Company and to protect employees wishingto raise a concern about improper activity/serious irregularities within the Company. Acomplaint handling policy is also in place which is designed to provide guidance on themanner in which your Company receives and handles complaints against its employeessuppliers / contractors etc.

21.4 Vigilance Awareness Week and Workshops

Vigilance Awareness Week-2019 (VAW) was observed in your Company itsSubsidiaries & Joint Venture Companies from 28th October to 2nd November 2019. Theobservance of the Vigilance Awareness Week commenced with the Integrity Pledge taken byemployees across the country on 28th October 2019 steered by the respective heads ofProjects/Stations/ Regions/Offices & Corporate Centre. CMD of your Company Sh.Gurdeep Singh led the pledge at the Corporate Center Delhi.

The events & activities across in your Company were organisedfocusing on the theme of VAW-2019 "Integrity-A Way of Life". To ensure widerparticipation of students & citizens events & activities were organised atSchools and Colleges and Gram Sabhas in rural areas' & seminars in the urbanareas were organised in the vicinity of our Stations / Projects / Offices / CorporateCentre. Special focus was given to the cities assigned to your Company for outreachactivities namely New Delhi Varanasi Farakka Korba & Talcher. For generalawareness FM Radio / Prasar Bharati medium was also used to air the CVC message on"Integrity-A Way of Life" at New Delhi Patna Hyderabad Visakhapatnam &Raipur.

Vigilance Quiz-2019 was organized for the first for wards of employeesof your Company with questions ranging from varied areas of vigilance and general studies.Shri Rajit Punhani Ex-Chief Vigilance Officer your Company Senior Executives Shri RakeshPrasad ED (HR) Shri A.K. Das CGM Dadri Ms. Vijaya Lakshmi Muralidharan Head of HRDadri presented the awards to the winning teams. E-magazine special issues were releasedat many projects & regional offices. Your Company Corporate

Vigilance compendium of E-flyer VIGDOM on vigilance awareness wasreleased by CMD of your Company on 28.10.2019 and your Company Vigilance Mobile App waslaunched by CVO on 29.10.2019.

The Vigilance Awareness Week at Corporate Center concluded with abefitting Kavi Sammelan of Padma Shri Ashok Chakradhar who enthralled the audience withhis satiric poetry on corruption and its ill effects. Further activities during VAW-2019were organized across India covering 20 states involving more than 40000 students &40000 citizens besides employees of your Company its Subsidiaries & Joint Ventures.

21.5 System improvement measures undertaken during 2019-20 a)Modification in Guidelines w.r.t Sampling & Weighment of Imported coal

- The earlier Guidelines for Sampling and Weighment of Imported Coal atNTPC Station have been modified w.r.t current Scenario/Contractual provisions whereinmethodology for collection and testing of Coal Samples maintenance of Weigh Bridges forWeighment of Coal up-keepment of Chemical Labs for testing of Coal Samples installationof Cameras at Labs & Weigh bridges for surveillance surprise checks by Vigilanceetc. has been deliberated. b) Minor Penalty Proceedings to continue even afterretirement

- As per NTPC's CDA Rule only Major Penalty Proceedings could becontinued after Superannuation. In line with advice of CVC & MOP CDA Rules have beenmodified w.e.f 28.05.19 incorporating provision of continuation of Minor PenaltyProceedings also after Retirement. c) Online submission of property return byexecutives

- Hard copy submission of Property Return by the Executives of yourCompany had been discontinued. System circular in this regard was issued to all ProjectHeads at Site Regional & Corp HR REDs stating that – Up to E8 (excludingBUH/CEO/HOP) Hard Copy submission is not required. Only online submission of AnnualProperty Return (APR).

Hard Copy of APR will be kept for all HOP/BUH ED & RED only. d)Vigilance Clearance through PRADIP Portal

- A Module has been developed in Paperless office system (PRADIP) forintroducing online Vigilance clearance of the Employees of your Company for speedydisposal with least possible human intervention. This Module was rolled out w.e.f01.10.2019.

22. REDRESSAL OF PUBLIC GRIEVANCES

Your Company is committed for resolution of public grievance inefficient and time bound manner. Executive Director (HR-USS) has been designated asDirector (Grievance) to facilitate earliest resolution of public grievances received fromPresident Secretariat Prime Minister's Office Ministry of Power etc.

In order to facilitate resolution of grievances in transparent and timebound manner Department of Administrative Reforms & Public Grievances Department ofPersonnel & Training Government of India has initiated web-based monitoring system atwww.pgportal.gov.in.

As per directions of Government of India (GoI) public grievances areto be resolved within two months time. If it is not possible to resolve the same withintwo months period an interim reply is to be given. Your Company is making all efforts toresolve grievances in above time frame.

23. RIGHT TO INFORMATION (RTI)

Your Company has implemented Right to Information Act 2005 in order toprovide information to citizens and to maintain accountability and transparency. YourCompany has put RTI manual on its website i.e www. ntpc.co.in for access to all citizensof India and has designated a Central Public Information Officer (CPIO) an AppellateAuthority and APIOs at all sites and offices of your Company. During 2019-20 there were1732 applications (including 102 pending applications from FY 2018-19) out of which1553 were replied and 179 are pending to be replied/resolved under the RTI Act 2005.

24. USING INFORMATION AND COMMUNICATION TECHNOLOGY FOR PRODUCTIVITYENHANCEMENT

The Information Technology Department in your Company is not only aservice provider but also being used as a key business driver. Since 2008 your Companyhas implemented Enterprise Resource Planning (ERP) application to integrate all itsbusiness functions. PI data system has been implemented to capture display and analyzethe plant performance parameters on real time basis which is helping the operation andmaintenance of our power plants. Non-ERP web based applications have been developed inbalance areas such as Engineering Drawings approval Quality Control Management HospitalManagement Labour Management Transit Camp Management RTI Security Control etc.

As a commitment towards environment your Company has re-engineered andre-designed the business processes to paperless mode. The digitization initiative"Project PRADIP" resulted in implementation e-Office digitization of documentsand paperless processes for different functions. This has not only saved tons of paper butalso resulted in faster decision making transparency and improved efficiency for yourCompany. Further during COVID-19 period all the file movement are digitally moved andapproved.

Your Company plants and Offices across India are connected toCorporate Office and main Data-Centre (DC) through 2x34 mbps MPLS links at each site tofacilitate seamless communication. The DC and DR (Disaster Recovery) site is connectedwith 2x291 mbps MPLS links for data replication. Both the Data centers at Noida &Hyderabad have been certified with ISO 27001 certification during this period. Theprogress of ongoing projects and issues of the running power stations are discussedregularly over high definition Video Conferencing system at Project Monitoring Centre ofCorporate Office. Desktop to desktop VC facility also has been provided to seniorexecutives to conduct review meeting from their respective seat.

To further leverage IT in your Company an IT Strategy has beenfinalized. The IT Strategy aims to achieve 100% Paperless Office Data Analytics fordecision making induction of new technology such as IIOT AI Machine learning etc. overnext 2 years.

Some of the highlights of the progress in IT/ERP area during the year2019-20 were as follows:

Digitization - E-Office was implemented. Processes wereredesigned for working in paperless mode.

ERP – A number of new modules were introduced inERP. An all new PMS system with many new features was launched. A new process forprocurement budget and automatic PR creation put in place. New CERC tariff norms for2019-24 implemented.

HCI- New server technology has been adopted by installingand commissioning the state of art Hyper Converged Infrastructure server (HCI) system. TheHCI system is hosting all the critical business Non-ERP applications. The HCI system isacting as on premises private CLOUD service by delivering Virtual Machines (VMs) ofvarious configuration to host various applications as and when they are required by userscentralized backup and management etc.

Mail and Messaging Services – The mail and messagingservices were upgraded. All users were provided with min. 20 GB of mail box size. DR setup for mailing system was commissioned.

Security – No major security breach was observedduring the year 2019-20. A (24x7) Security Operation Centre(SOC) is in operation whereround the clock monitoring of all external and internal data traffic is being done withlatest tools through SOC and latest threat management tools are being applied to preventany cyber-attack or data theft. Timely communication being sent to all users based onthreat perception. Your Company's data centers at Noida and Hyderabad are ISO 27001certified for security compliance.

• A number of new web applications and mobile apps such as CoalMonitoring Portal Ash Management Portal CPSE Conclave action points monitoring portaletc. have been launched to take care of requirements of various internal departments andMinistry of Power.

ERP - CERC Tariff regulation 2019-24 configured andimplemented in ERP system. Management Reports related to Operations have been modified toreflect new KPIs for CERC Tariff norms. Activity Based Budgeting and Automatic PRgeneration have been successfully adopted by the power stations for Procurement Budgetingand Action. PAP vendor creation processes automated. Auto creation of PRMS Vendors.Automation of Employee Joining process. SAP-FIORI based PMS Final assessment implemented.

• SAP Integration with other external Systems – The followingsystems were integrated :

- GeM portal for procurement

- TREDS platform M1Exchange to facilitate MSME payment

- SBI and GepNIC Portal for enabling on-line payment.

E-Tendering – GePNIC Portal has been implemented inall subsidiaries of NTPC. Online EMD and Tender fee payment on GePNIC platform withautomatic entry and accounting in ERP system and auto generation of GST invoiceimplemented in your Company.

New Technology - A ChatBot was developed for your Companyvendor portal and Payment Tracking Portal. A PoC was successfully done with RPA tool infetching & updating Medical Health records of Employee. Real-time data analytics isbeing explored with PI-Asset Framework and Event Frames tools of the OSI PI System.

• Corporate Dashboard was enhanced with new Analytic Reports basedon BW data and BW system was upgraded to make it HANA compliant.

• IT Consultancy assignments towards power sector improvement– Implemented the following o SAP-PM module in SCCL o PI System in JV companies ofyour Company o Advising NEEPCO in their ERP implementation o DREAMS 2.0 in PGCIL

• Due to COVID-19 your Company provided Work from Home (WFH)facilities during the lock down by enabling VPN access to critical applications to all therequired employees and a Video Conferencing (VC) facility through MS teams to allemployees.

25. GROUP COMPANIES: SUBSIDIARIES AND JOINT VENTURES

Your Company has Nine number of subsidiary companies as on 31st March2020 (including NTPC Mining Limited and take over Company i.e North Eastern Electric PowerCorporation Ltd. and THDC India Ltd. acquired on 27th March 2020) and 19 nos. jointventure companies for undertaking specific business activities. In these 19 nos. jointventure companies your Company has decided to exit from International Coal VenturesPrivate Limited in view of lack of suitable commercially viable opportunities for thermalcoal and in BF-NTPC Energy Systems Limited after getting approval from Ministry of Poweris under the Process of Winding Up and Liquidator was appointed for voluntary Liquidationof JV Company.

A statement containing the salient feature of the financial statementof your Company's Subsidiaries Associate Companies and Joint Ventures as per firstproviso of section 129(3) of the Companies Act 2013 is included in the consolidatedfinancial statements.

26. INFORMATION PURSUANT TO STATUTORY AND OTHER REQUIREMENTS

Information required to be furnished as per your Companies Act 2013and as per SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015 andany amendments thereto are as under:

26.1 Statutory Auditors

The Statutory Auditors of your Company are appointed by the Comptroller& Auditor General of India. Joint Statutory Auditors for the financial year 2019-20were (i) M/s S K Mehta & Co. Chartered Accountants New Delhi (ii) M/s S.N. Dhawan& Co. LLP Chartered Accountants New Delhi (iii) M/s Varma & Varma CharteredAccountants Hyderabad(iv)M/s Parakh & Co. Chartered Accountants Jaipur (v) M/s CK Prusty

& Associates Chartered Accountants Bhubaneshwar (vi) M/s B CJain & Co. Chartered Accountants Kanpur and (vii) M/s V K Jindal & Co.Chartered Accountants Ranchi.

The appointment of the Statutory Auditors for the financial year2020-21 is appointed by the Comptroller & Auditor General of India.

26.2 Management comments on Statutory Auditors' Report

The Statutory Auditors of the Company have given an un-qualified reporton the accounts of the Company for the financial year 2019-20. However they have drawnattention under ‘Emphasis of Matter' to the following notes: (i) Note No.32 (a)regarding billing and accounting of sales on provisional basis.

(ii) Note No.44 in respect of one of the projects of Company consistingof three units of 800 MW each where the order of National Green Tribunal (NGT) on thematter of environmental clearance for the project has been stayed by the Hon'bleSupreme Court of India the matter is sub-judice and the units have since been declaredcommercial.

(iii) Note No.57(iii)(b) with respect to appeal filed by the Companywith the Hon'ble High Court of Delhi in the matter of Arbitral award pronouncedagainst the Company and the related provision made/ disclosure of contingent liability asmentioned in the said note.

(iv) Note No.41 which describe the assessment of the impact ofCovid-19 pandemic by the management on the business and its associated financial risks.The issues have been adequately explained in the respective Notes referred to by theAuditors.

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

The Comptroller & Auditor General of India through letter dated21.08.2020 has given ‘NIL' Comments on the Standalone Financial Statements ofyour Company for the year ended 31 March 2020 after conducting supplementary audit underSection 143 (6) (a) of the Companies Act 2013. The Comptroller & Auditor General ofIndia through letter dated 21.08.2020 has also given ‘NIL' Comments on theConsolidated Financial Statements of your Company for the year ended 31 March 2020 afterconducting supplementary audit under Section 143 (6) (a) read with Section 129 (4) of theCompanies Act 2013. As advised by the Office of the Comptroller & Auditor General ofIndia (C&AG) the comments of C&AG for both the stand-alone and consolidatedfinancial statements of your Company for the year ended 31 March 2020 are being placedwith the report of Statutory Auditors of your Company elsewhere in this Annual Report.

26.4 COST AUDIT

As prescribed under the Companies (Cost Records and Audit) Rules 2014the Cost Accounting records are being maintained by all stations of your Company. Thefirms of Cost Accountants appointed under Section 148 (3) of the Companies Act 2013 forthe financial year 2019-20 were (i) M/s Dhanjay V. Joshi Cost Accountants Pune (ii) M/sK.L Jaisingh & Co. Cost Accountants UP (iii) M/s Chandra Wadhwa & Co. CostAccountants New Delhi (iv) M/s DGM & Associates Cost Accountants Kolkata (v) M/sTanmaya S Pradhan & Co. Cost Accountants Sambalpur(vi) M/s A.C Dutta & Co.Cost Accountants Kolkata(vii) M/s Niran & Co. Cost Accountants Bhubaneshwar and(viii) M/s S C Mohanty & Associates Cost Accountants Bhubaneswar.

The due date for filing consolidated Cost Audit Report in XBRL formatfor the financial year ended March 31 2019 was upto September 27 2019 and theconsolidated Cost Audit Report for your Company was filed with the Central Government onSeptember 25 2019.

The Cost Audit Report for the financial year ended March 31 2020 shallbe filed within the prescribed time period under the Companies (Cost Records & Audit)Rules 2014.

26.5 Exchange Risk Management

Your Company is exposed to foreign exchange risk in respect ofcontracts denominated in foreign currency for purchase of plant and machinery spares andfuel for its projects/ stations and foreign currency loans. During financial year 2019-20your Company has not entered into any derivative contract in respect of foreign currencyloans exposure.

26.6 Policy for Selection and appointment of Directors and theirremuneration

Your Company being a Government Company the provisions of Section134(3)(e) of the Companies Act 2013 do not apply in view of the Gazette notificationdated 05.06.2015 issued by Government of India Ministry of Corporate Affairs.

26.7 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) ofthe Companies Act 2013 which requires of performance evaluation of every director by theNomination & Remuneration Committee. The aforesaid circular of MCA further exemptedlisted Govt. Companies from provisions of Section 134 (3) (p) of the Companies Act 2013which requires mentioning the manner of formal evaluation of its own performance by theBoard and that of its Committees and Individual Director in Board's Report ifdirectors are evaluated by the Ministry or Department of the Central Government which isadministratively in charge of the Company or as the case may be the State Government asper its own evaluation methodology.

Further MCA through Notification dated 05.07.2017 has amendedSchedule IV to the Companies Act 2013 with respect to performance evaluation of directorsof the Government Companies that in case of matters of performance evaluation arespecified by the concerned Ministries or Departments of the Central Government or as thecase may be the State Governments and such requirements are complied with by theGovernment companies such provisions of Schedule IV are exempted for the GovernmentCompanies.

In this regard Deptt. of Public Enterprises (DPE) has already laiddown a mechanism for performance appraisal of all functional directors. DPE has alsoinitiated evaluation of Independent Directors.

Your Company enters into a Memorandum of Understanding (MOU) withGovernment of India each year demarcating key performance parameters for your Company.The performance of the Company are evaluated by the Department of Public Enterprisesvis--vis MOU entered into with the Government of India. In terms of Regulation 25 ofSEBI LODR 2015 the performance of the Board as a whole and non-independent directorsincluding Chairman & Managing Director were evaluated by the Independent Directors ina separate Meeting held by them on 14th Feb. 2020.

26.8 Declaration by Independent Directors

During the year all the Independent Directors have met therequirements specified under Section 149(6) of the Companies Act 2013 for holding theposition of ‘Independent Director' and necessary declaration from eachIndependent Director under Section 149 (7) of the Companies Act 2013 was received. Alsodeclaration under Regulation 25 of SEBI (LODR) Regulations 2015 and Rule 6 of theCompanies (Appointment and Qualification of Directors) Rules 2014 are also obtained fromall the Independent Director of your Company.

26.9 MANAGEMENT DISCUSSION AND ANALYSIS

In addition to the issues stated in the Directors' Report someissues have been brought out in report on Management Discussion and Analysis placed atAnnexure-I and forms part of this Directors' Report as per the terms of regulations34(2)(e) of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.

26.10 Corporate Governance

A detailed report on Corporate Governance as stipulated underRegulation 34(3) of SEBI (Listing Obligations and Disclosure Requirements)Regulations2015 is placed at Annexure-II and forms part of the Directors' Report.

26.11 BUSINESS RESPONSIBILITY REPORT

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

26.12 Investor Education and Protection Fund (IEPF)

Details of transfer of unclaimed dividends and eligible shares to IEPFhave been placed in the Corporate

Governance Report at Annx-II which forms part of the Directors'Report.

26.13 Secretarial Audit

The Board had appointed M/s Akhil Rohatgi & Company CompanySecretaries to conduct Secretarial Audit for the financial year 2019-20. The SecretarialAudit Report for the financial year ended March 31 2020 is annexed herewith placed at asAnnexure XI to this Directors' Report.

The Managements' Comments on Secretarial Audit Report are asunder:

Observations Management's Comments
Compliance of Regulation 17 (1) (a) of Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations 2015 with respect to the appointment of Independent Woman Director on the Board of the Company. During the financial year 2019-20 w.e.f 16.11.2019 there is no Woman Independent Director as required under SEBI LODR. 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 Woman 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.
The Registered office of the Company at Scope Complex 7 institutional Area Lodi Road New Delhi 110003 has not been registered under the Shops and Establishment Act Application for change of Registered office address was made to the office of the Deputy Labour Commissioner.

26.14 Particulars of contracts or arrangements with related parties

During the period under review your Company had not entered into anymaterial transaction with any of its related parties.The Company's major relatedparty transactions 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 (Annex- IX) as required under Section 134(3)(h) of the Companies Act 2013. They were intended to further enhance your Company'sinterests.

Web-links for Policy on Materiality of Related Party Transactions andalso on Dealing with Related Party Transactions have been provided in the Report onCorporate Governance which also form part of the Annual Report.

26.15 Significant and material orders passed by the regulatorsor courts or tribunals impacting the going concern status and Company's operations infuture:

No significant and material orders were passed by any regulator orcourt or tribunal impacting the going concern status and Company's operations duringthe FY 2019-20.

26.16 Adequacy of internal financial controls with reference to thefinancial reporting: Your Company has in place adequate internal financial controlswith reference to financial reporting. During the year such controls were regularlytested and no reportable material weakness in the design implementation and operationeffectiveness was observed.

26.17 Loans and Investments

Details of Investments covered under the provisions of Section 186 ofthe Companies Act 2013 forms part of financial statement attached as a separate sectionin the Annual Report for FY 2019-20.

The loan granted by your Company to its Joint Venture Company namelyNational High Power Test Laboratory Private Limited (NHPTL) during 2017-18 for a period ofsix months of Rs 6 Crore was extended up to 31st October 2032. Further a new loan wasalso granted to NHPTL for Rs 12.40 crore during the financial year. The loan granted byyour Company to its Subsidiary Company namely Kanti Bijlee Utpadan Nigam Limited (KANTI)of Rs 150 crore for meeting its capital expenditure covered under Section 185 and 186 ofthe Companies Act 2013.

Details of Loans granted to subsidiaries and Joint venture companiesare disclosed at Note 53 to the stand-alone financial statements for the year 2019-20

26.18 Prevention Prohibition and Redressal of Sexual Harassment ofWomen at Workplace

Your Company has in place a Policy on Prevention Prohibition andRedressal of Sexual Harassment of Women at Workplace in line with the requirements of theSexual Harassment of Women at the Workplace (Prevention Prohibition & Redressal) Act2013. Internal Complaints Committees (ICCs) have been constituted at all Projects/locations to redress complaints received regarding sexual harassment. All female employees

(regular contractual temporary trainees) are covered under thispolicy.Every three years the constitution of these committees is changed and new membersare nominated.

During the year 2019-20 two cases were reported to different ICCsacross your Company four cases were resolved (including two from the last year) andcurrently no case is pending.

26.19 Procurement from MSEs

The Government of India has notified a Public Procurement Policy forMicro and Small Enterprises (MSEs) Order 2012. The total procurement made from MSEs(including MSEs owned by SC/ST entrepreneurs) during the year 2019-20 was Rs 1667.50*crore which was 46.22% of total annual procurement of Rs 3608.21* crore against theminimum threshold target of 25% as stipulated by the Public Procurement Policy for Microand Small Enterprises (MSEs) Order.

The total procurement made from MSEs owned by SC/ ST and Womenentrepreneurs during the year 2019-20 was Rs 0.42* crore and Rs 0.18* crore respectively.*It excludes Primary fuel Secondary fuel Steel & Cement the Project procurementincluding R&M packages and procurement from Original Equipment Manufacturer (OEM)/Original Equipment Supplier (OES)/ Proprietary Article Certificate (PAC).

In FY 2019-20 Your Company has recorded highest ever procurement fromMSEs in terms of absolute value and procurement percentage. Further in FY 2019-20 YourCompany has also recorded highest procurement percentage from MSEs among all MaharatnaCPSUs. Your Company organized 17 vendor development programmes (VDPs) including 8 SpecialVDPs for MSEs owned by SC/ST and Women entrepreneurs across the Company in FY 2019-20.Annual procurement plan for 2019-20 from MSEs is uploaded on www.ntpc.co.in.

26.20 Particulars of Employees

As per provisions of Section 197(12) of the Companies Act 2013 readwith Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules2014 every listed Company is required to disclose the ratio of the remuneration of eachdirector to the median employee's remuneration and details of employees receivingremuneration exceeding limits as prescribed from time to time in the Directors'Report.

However as per notification dated 5th June 2015 issued by theMinistry of Corporate Affairs Government Companies are exempted from complying withprovisions of Section 197 of the Companies Act 2013. Therefore such particulars have notbeen included and does not form part of this Directors' Report.

26.21 Extract of Annual Return:

Extract of Annual Return (MGT-9) pursuant to Section 92 (3) of theCompanies Act 2013 and rule 12 (1) of the Company (Management & Administration)Rules 2014 is annexed herewith as Annexure VI to this Directors' Report. The Extractof Annual Return for the Financial Year ended 31st March 2020 is also available on theCompany's website i.e www.ntpc.co.in .

26.22 Information on Number of Meetings of the Board held duringthe year composition of committees of the Board and their meetings held during the yeara chart or a matrix setting out the skills/expertise/ competence of the board ofdirectors Total fees for all services paid by the listed entity and its subsidiaries ona consolidated basis to the statutory auditor and all entities in the networkfirm/network entity of which the statutory auditor is a part Details of utilization offunds raised through preferential allotment or qualified institutions placement asspecified under Regulation 32 (7A) if any establishment of vigil mechanism/ whistleblower policy and web-links for familiarization/ training policy of directors Policy onMateriality of Related Party Transactions and also on Dealing with Related PartyTransactionsand Policy for determining ‘Material' Subsidiaries have beenprovided in the Report on Corporate Governance which forms part of the Director'sReport at Annex-II.

26.23 Para on development of risk management policy includingtherein the elements of risks are given elsewhere in the Annual Report.

26.24 Your Company has complied with all the applicable SecretarialStandards.

26.25 No disclosure or reporting is required in respect of thefollowing items as there were no transactions on these items during the year under review:

1. Issue of equity shares with differential rights as to dividendvoting or otherwise.

2. Issue of shares (including sweat equity shares) to employees of yourCompany under any scheme.

The particulars of annexure forming part of this report areas under:

Particulars Annexure
Management Discussion & Analysis I
Report on Corporate Governance II
Information on conservation of energy technology absorption and foreign exchange earnings and outgo III
Statistical information on persons belonging to Scheduled Caste / Scheduled Tribe categories IV
Information on Differently Abled persons V
Extract of Annual Return VI
Annual Report on CSR Activities VII
Project Wise Ash produced and utilized VIII
Disclosure of Related Party Transactions in Form AOC-2 IX
Business Responsibility Report for the year 2019-20 X
Secretarial Audit Report in Form MR-3 XI

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

Shri A K Gautam had been appointed as Chief Financial Officer w.e.f.1.8.2019 and Director (Finance) w.e.f 18.10.2019.

Shri Ashish Upadhyaya AS & FA Ministry of Power has beenappointed as Government Nominee Director w.e.f. 22.1.2020.

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 Seethapathy Chander ceased be Independent Director w.e.f.12.6.2019 on completion of three years' tenure.

Shri Anurag Agarwal AS&FA Ministry of Power has been appointed asGovernment Nominee Director w.e.f. 1.7.2019 and ceased to be a Director w.e.f 12.7.2019.Shri P K Mohapatra ceased to be Director (Technical) of the Company w.e.f. 31.7.2019 onattaining the age of his superannuation.

Shri K. Sreekant Director (Finance) Powergrid Corporation of IndiaLimited had been entrusted with the additional charge of the post of Director (Finance) ofyour Company w.e.f. 19.3.2018. His tenure was extended from time to time as additionalcharge of the post of Director (Finance) of the Company ceased to be Director (Finance)w.e.f 12.8.2019.

Dr. (Ms.) Gauri Trivedi ceased to be Independent Director w.e.f.15.11.2019 on completion of one year extended tenure. Shri S K Roy ceased to be Director(Projects) of the Company w.e.f. 30.11.2019 on attaining the age of his superannuation.

Shri S Roy ceased to be Director (HR) of the Company w.e.f. 31.3.2020on attaining the age of his superannuation.

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

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

The Board wishes to place on record its deep appreciation for thevaluable services rendered by Shri Anurag Agarwal Shri Seethapathy Chander Shri P KMohapatra Shri K Sreekant Dr. (Ms.) Gauri Trivedi Shri S K Roy Shri S Roy ShriPrakash Tiwari and Shri Anand kumar Gupta during their association with yourCompany. The Board welcomes Shri A.K.Gautam Shri Ashish Upadhyaya Shri Dillip KumarPatel Shri Ramesh Babu V. and Chandan Kumar Mondol on the Board of your Company.

28. Material changes and commitments affecting financial positionbetween the end of the financial year and date of the report

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

29. DIRECTORS' RESPONSIBILITY STATEMENT

As required under Section 134(3)(c) & 134(5) of the Companies Act2013 your Directors state that: 1. in the preparation of the annual accounts for the yearended March 31 2020 the applicable accounting standards had been followed along withproper explanation relating to material departures; 2. the Directors had selected suchaccounting policies and applied them consistently and made judgments and estimates thatare reasonable and prudent so as to give a true and fair view of the state of affairs ofthe Company as at March 31 2020 and of the profit of the Company for the year ended onthat date; 3. the Directors had taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of the Companies Act 2013for safeguarding the assets of the Company and for preventing and detecting fraud andother irregularities; 4. the Directors had prepared the Annual Accounts on a going concernbasis; 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 theprovisions of all applicable laws and that such systems were adequate and operatingeffectively.

30. ACKNOWLEDGEMENT

The Directors of your Company acknowledge with deep sense ofappreciation the co-operation received from the Government of India particularly thePrime Minister's Office Ministry of Power Ministry of New & Renewable EnergyMinistry of Finance Ministry of Environment Forests & Climate Change Ministry ofCoal Ministry of Petroleum & Natural Gas Ministry of Railways Ministry of CorporateAffairs Department of Public Enterprises Department of Investment and

Public Asset Management Central Electricity Authority CentralElectricity Regulatory Commission Comptroller & Auditor General of India AppellateTribunal for Electricity State Governments Regional Power Committees State UtilitiesStock exchanges and Office of the Attorney General 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 andconsultants in the implementation of various projects of your Company. We also acknowledgethe constructive suggestions received from the Office of Comptroller & Auditor Generalof India Statutory Auditors and Cost Auditors of your Company.

We wish to place on record our appreciation for the untiring effortsand contributions made by the NTPC's family at all levels to ensure that the Companycontinues to grow and excel.

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

For and on behalf of the Board of Directors
(Gurdeep Singh)
Place: New Delhi Chairman & Managing Director
Date: 21st August 2020

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