NTPC

Dear fellow share-owner of NTPC,
 
 Your Company has posted impressive operational and financial numbers
 during a period marked by economic slow down and market volatility.
 
 NTPCs total income reached Rs. 452.56 billion, an increase of 13.11%
 over the previous year.  Your Company earned a profit of Rs. 82.01
 billion, an increase of 10.61 % over the previous year.
 
 Your Companys performance in the stock market remained rock solid
 during a period witnessing unprecedented erosion in the value of most
 of the stocks. It had the third largest market capitalization of over
 Rs. 1482 billion as on March 31,2009. Your Company also paid the
 highest ever dividend amounting to Rs. 29.68 billion at the rate Of 36
 per cent. The Company realized
 
 100% payment of the current bills from its customers indicating sound
 commercial performance. The total asset value of your Company crossed
 Rs. 1.0 trillion (Rs. 1,05,225 crore) and it leverages these assets to
 maximize the return on your investment.
 
 These impressive results are based upon sound operational performance
 indicated in all time high Availability Factor of 92.47% and PLF of
 91.14% of the coal based stations. 10 coal based stations achieved more
 than 90% PLF with 4 achieving above 95% PLF. Your Company accounted for
 28.60% of the national power generation with 18.82% of the countrys
 capacity.
 
 We have taken major steps for ensuring fuel security in order to
 sustain the high generation levels of your Company. We have entered
 into a Model Coal Supply Agreement with Coal India Ltd. for a period of
 20-years with guaranteed supply at 90% of the Annual Contracted
 Quantity. We are signing an agreement with GAIL for supply of RLNG for
 a period of 10 years. For sustained long term supply of APM category
 gas by GAIL, we are also renewing the APM Agreement up to the year 2021
 and PMT Agreement up to the year 2019. Your Company is also working for
 tie-ups of additional domestic gas/ RLNG on long term commitment basis
 to further augment its fuel supply.
 
 Your Companys growth is on the fast-track. Capacity aggregating to
 17,930 MW is under jmplementation and preparatory work is underway for
 another 25,000 MW. NTPC is going to become a 50,000 MW Company by the
 year 2012 and a 75,000 MW Company by 2017. We have intensified our
 project monitoring activities with focus on solid execution and
 accelerated growth by imparting new thrust upon Information &
 Communication Technology (ICT) enabled processes.
 
 NTPC is being built to last1 as a great organization. We are in the
 process of formulating a Corporate Plan for the period up to the year
 2032. Long-term planning horizons, maintaining financial stability with
 string balance-sheet, good cash flow and focus on operational costs
 and productivity determine our major decisions. .
 
 Your Company is going to add new electricity supply capacity and at the
 same time set high environmental standards through adoption of super
 critical and ultra super critical parameters for higher efficiency and
 reduced environmental impact. Your Company is diversifying its fuel
 mix, promoting renewable energy and aligning its priorities with the
 National Action Plan for Climate Change.
 
 With focus on green power1 and efficiency, we have restructured our
 R&D set up and have established NTPC Energy Technology & Research
 Alliance (NETRA) to focus on research and technology development
 relating to green power and efficiency improvement. We are developing a
 technology roadmap for the period up to the year 2027. NTPCs Centre
 for Power Efficiency & Environmental Protection (CenPEEP) has
 demonstrated various state-of-the art technologies and practices for
 improvement in generation efficiency and the consequent reduction in
 GHG ernislsiotS Ministry of Power, NTPC and
 
 Japan International Cooperation Asency (JICA) have decided to undertake
 a study on enhancing efficiency of some operating thermal plants in
 NTPC.
 
 your Company is engaged in strengthening the communities around its
 business units and is making a positive difference in the lives of the
 people in other areas too. We are connected with the society through
 our various CSR initiatives, including those in the areas of providing
 sanitation, drinking water, building rural roads, providing educational
 infrastructure and facilities. We have adopted 16 Industrial Training
 Institutes (ITIs) and are setting up 6 new ITIs. Your Company lays
 special emphasis on providing support to the physically challenged and
 making them economically productive. The first batch of physically
 challenged students have successfully completed training at the
 Information & Communication Technology (ICT) Centre established by
 NTPC Foundation and the Equal Opportunities Cell of Delhi
 University. Similar ICT Centres have started functioning at
 Thiruvananthapuram and Mysore for the visually challenged. The
 Foundation is setting up similar facilities in Lucknow and Ajmer. Your
 Company is providing support for basic and vocational education for
 women by way of promoting gender justice and women empowerment. We are
 engaged in electrification work of nearly 38,527 villages, including
 27,00,000 households below poverty line in 6 States and a Union
 Territory under the Rajiv Gandhi Grameen vldyutikaran Yojana (RGGW).
 Your Company is expanding and deepening its CSR initiatives.
 
 Your Company has an enterprise-wide-risk management framework in place.
 This, in conjunction with the strong corporate governance practices,
 transparency and fairness in our dealings, has further strengthened the
 robust corporate image of your Company.
 
 The credit for the excellent performance of the Company goes to the
 members of Team-NTPC, who are known for their Can do it spirit1. We
 are focused as much on employee growth and development as on assets
 growth and earnings.
 
 Your Company has the capabilities and opportunities to build upon its
 position as the leading utility in the Indian power sector and as one
 of the best utilities in the world. Capitalizing on your organizations
 strengths and advantages, we are moving ahead with intensefocus1
 dhtargets and deliverables. With confidence in the outlook of the
 Company, we are committed to vindicate the trust you have reposed in us
 and to fulfil the expectations of all the stakeholders.
 
                                              With best wishes,
                                               Yours sincerely,
                                                 (R.S. Sharma) 
                                  Chairman & Managing Director