Dear fellow shareowner of NTPC,
 
 The will be extremely happy to note that in F/11 your Company has
 delivered the strongest results in project execution by adding 2,490 MW
 capacity, including 500 MW through a Joint Venture, making it the best
 year in NTPC’s history in terms of capacity addition. With a target of
 4,320 MW for F/12, your Company is going to enter into an altogether
 different league in terms of annual capacity addition.
 
 Your Company is a strong world class enterprise and we are all proud to
 be part of it. It has been given the exalted ‘Maharatna’ status,
 empowering it further to expand its operations in the domestic and
 global markets. Its sound Corporate Governance practices made NTPC the
 first Company to exercise the Maharatna powers.
 
 Your Company''s pre-eminent stature has been vindicated by its being
 ranked No. 1 Independent Power Producer in Asia and No. 2 in the world
 by Platts, a part of the prestigious McGraw Hill Group, in its top 250
 global energy companies'' rankings.
 
 In FY11 your Company''s total income increased by 17% to Rs. 57,399 Crore,
 while PAT has increased by 4% to Rs. 9,103 Crore. For Q1 of FY12, your
 Company''s total income has increased by 12.22% to Rs. 15,168 Crore while
 PAT has increased by 12.7% to Rs. 2,076 Crore.
 
 Your Company''s operational performance has once again been world class
 with its coal based stations operating at Plant Load Factor (PLF) of
 88.29% (National PLF 75.07%) and average Availability Factor of 91.67%
 during FY11. Seven NTPC Stations figured among the top ten Stations in
 the country in terms of PLF. PLF of more than 90% was achieved by 10
 out of 15 stations with 3 of them achieving PLF above 95%. 
 
 Your Company has been focusing on continuous improvement in generation
 efficiency and maintaining a high standard of performance.
 
 Your Company''s effective customer relationship management, including
 incentives for prompt payments, has resulted in 100% realization of its
 bills for eight consecutive years.
 
 With 34,854 MW, your Company is the largest electricity generator and
 the largest consumer of coal in the country. It is moving ahead with
 sound strategies for capacity addition and fuel security. Currently a
 total of 14,088 MW is under construction, including 3,890 MW in Joint
 Ventures. We are targeting to place orders for 13,140 MW capacity
 through bulk tenders for units of 660 MW and 800 MW sizes in the near
 future.
 
 By signing Power Purchase Agreements for 49,000 MW capacity with the
 state utilities, your Company has succeeded in ensuring sale of the
 power generated from the capacity to be developed by it in the future.
 
 Towards ensuring fuel supply for the new projects, your Company secured
 coal linkage for generation capacity of 10,920 MW during FY12, tied up
 coal supply for FY12 requirements, entered into agreement with STC for
 supply of 12
 
 MMT imported coal and appointed Mine Developer Cum Operator (MDO) for
 Pakri Barwadih coal block which has a capacity of 15 MTPA. Your Company
 has taken steps to develop its coal mines with total mineable reserves
 of 1.8 billion tonnes.
 
 Your Company has entered FY12withan approved outlay for capital schemes
 of Rs. 26,400 crore which is 18% higher over the Capex for FY11. We aim
 at reducing cost while driving growth.
 
 Disciplined capital expenditure and prudent resource mobilization
 strategies have been abiding features of our management of finance. You
 will be glad to know that India''s biggest commercial bank, SBI, has
 extended its largest ever loan to any company in India or abroad by
 signing a loan agreement of Rs. 10,000 crore with NTPC in July 2011.
 
 Also, your Company raised US $ 500 million from the international bond
 market with its issue getting over subscribed by 5.5 times. This
 strongly underlines the confidence of the investor community in the
 robust business fundamentals of NTPC.
 
 Environmental concern underpins our growth strategy as we strive for a
 low carbon future. Our approach includes increasing cycle efficiency of
 fossil fuel based units, increasing the share of non-fossil fuel based
 generation and research in COQ fixation technologies. Our investment in
 technology is directly linked to creating value for our shareholders
 and society. With commissioning of 660 MW supercritical unit at Sipat,
 your Company has achieved a new high in machine efficiency and a major
 technological milestone towards Sustainable Energy Development. This is
 the first in a series of super critical units of 660 MW and 800 MW
 size. Further, your Company is engaged in development of Advanced Ultra
 Super Critical technology under National Mission on Clean Coal (Carbon)
 Technologies. This technology would have cycle efficiency in the range
 of 45-47% resulting in 15.77% lesser COQ emission compared to
 conventional sub critical plants. Through its efforts over the years,
 your Company has avoided more than 30 million tons of COQ.
 
 NTPC is actively engaged in the Asia Pacific Partnership to combat COQ
 emissions and is the Country Coordinator for the power generation and
 transmission task force. Your Company is keenly pursuing a commercial
 scale integrated gasification combined cycle (IGCC) technology
 demonstration project suitable for the high ash Indian coal.
 
 Towards making firm global footprints, your Company has finalized an
 agreement with Ceylon Electricity Board (CEB) and The Government of Sri
 Lanka for implementation of 2X250 MW imported coal based power project
 in Sri Lanka through a 50:50 Joint Venture with CEB. Your Company is
 also exploring the possibility of setting up a 2X660 MW imported coal
 based power project in Bangladesh through a 50:50 Joint Venture with
 Bangladesh Power Development Board. The JV agreement has been
 finalized.
 
 Your Company''s trading arm, NTPC Vidyut Vyapar Nigam Ltd., (NWN) is the
 nodal agency for implementation of the first phase of Jawahar Lal Nehru
 National Solar Mission. NWN has signed Power Purchase Agreements for
 about 700 MW. The first set of solar projects under the mission are
 likely to get commissioned by October 2011. This is a remarkable
 contribution to the National Solar Mission.
 
 Your Company is going to create distribution networks within 5 Km
 radius of its power stations with an objective of making reliable power
 supply available to the neighbourhood villages.
 
 Contributing substantially to the national duty of reaching power to
 all, specially to the rural and underprivileged population, your
 Company has provided electricity connections to more than 24 lakh Below
 Poverty Line (BPL) households and has completed electrification of over
 14,500 villages under the Rajiv Gandhi Gramin Vidyutikaran Yojana
 (RGGVY).
 
 Our substantial social investment is based on our strong belief that
 our success as a business is tied directly with the socio-economic
 vitality and health of the communities around our business units. We
 value the partnerships we build with the communities around our units.
 For us CSR is Corporate Social Relationship.
 
 Your Company has one of the finest teams of power professionals in the
 world who are committed to meet your expectations. Their organizational
 pride has been instrumental in NTPC often being the only PSU to be
 consistently ranked among the best employers in prestigious surveys.
 
 Looking ahead, we believe that a growing population, rising
 urbanization and living standards and a robust outlook for economic
 growth will definitely increase the demand for power.
 
 The power players will be engaged in rapidly increasing level of per
 capita power consumption in India from an abysmal 730 units to at least
 2,700 units, which is the world average. As electricity drives economic
 growth, the country will need 778 GW - 960 GW of power generation
 capacity by 2032 for estimated GDP growth between 8-9%.
 
 We have the size, resources, expertise and resilience to stay ahead of
 competition and serve the national objective. As the Indian economy
 grows bigger and stronger (intermittent challenges notwithstanding),
 the role of power sector and NTPC will also grow larger and more
 rewarding.
 
 It is my commitment to you is that my team will work tirelessly to
 pursue your Company''s vision of becoming the world''s largest and best
 power producer, powering India''s growth.
 
 I take this opportunity to convey my profound thankfulness to the
 Government of India, the State Governments, all our customer utilities
 and all the authorities and agencies who have stood byyour Company in
 its quest to maximize value for all stakeholders.
 
 Your sincerely, 
 
                                                  (ARUP ROYCHOUDHURY) 
                                         Chairman & Managing Director