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Download Annual Report PDF Format 2013 | 2012 | 2011 | 2010
Directors Report Year End : Mar '13    Mar 12
Dear Members,
 
 The Directors are pleased to present the 37th Annual Report and the
 audited financial statements for the year ended March 31, 2013.
 
 Financial Year 2012-13 has been a year of achievements for your Company
 as it performed exceedingly well in various areas of its activities.
 Major highlights for the year are:
 
 - Addition of 4,170 MW capacity (including 1000 MW through JV
 Companies), by far the highest ever in any single year and declared
 4,830 MW (including 1000 MW through JV Companies) on commercial
 generation, also the highest ever in a year. Awarded contracts forwork
 of8,521 MW.
 
 - Average PLFof83.08% as against all India PLF of 69.95% with six
 stations recording more than 90% PLF.
 
 - Capital expenditure (CAPEX) of Rs. 19,925.53 crore which was 24.58%
 higher than the previousyearsRs. 15,994 crore.
 
 - 100% realization ofcurrent bills from customers.
 
 - Highest ever net profit after tax ofRs. 12,619.39 crore, making an
 increase by 36.81% over the previous years PAT of Rs.  9,223.73
 crore and recorded total income of Rs. 68,775.51 crore, an increase of
 6.07% as compared to Rs. 64,841.88 crore in the FY 2011-12.
 
 - Highest-ever dividend ofRs. 5.75 per share (total Rs. 4,741.16 crore)
 which comprises interim dividend of Rs. 3.75 per equity share paid in
 March 2013 and recommendation of special dividend of Rs. 1.25 per
 equity share and final dividend of Rs. 0.75 per equity share for the
 year 2012-13, subject to approval of the shareholders.
 
 - Approval of the Ministry of Power for implementation of North
 Karanpura Super Thermal Power Project (3X660 MW) at existing site in
 the State of Jharkhand by NTPC.
 
 - Withdrawal of de-allocation of Chatti-Bariatu, Chatti-Bariatu (South)
 and Kerandari Coal Blocks by Ministry of Coal which werede-allocated by
 Ministry ofCoal inJune 2011.
 
 - Disinvestment of 9.50% holding by Government of India in the equity
 of your Company, thus reducing its holding from 84.50% to 75.00%.
 
 - Commissioned first two solar power plants of 5 MW each at Dadri and
 Andaman & Nicobar Islands.
 
 You will appreciate the fact that your Company is imparting a major
 thrust to the growth of the power sector and recording consistently
 excellent performance despite the challenge before the sector.
 
 1.  FINANCIAL RESULTS
 
                               2012-13                      2011-12
 
 Revenue                Rs. Crore    US $ Mn*     Rs. Crore    US $ Mn*
 
 Net Revenue from 
 Operations(induding
 Enersy Sales,          65,673.93    11,960.29    62,052.23   11,300.72
 Consultancy, 
 Energy consumed 
 internally)
 
 Other Income            3,101.58       564.85     2,789.65      508.04
 
 Total Revenue          68,775.51    12,525.14    64,841.88   11,808.76
 
 Expenses
 
 Fuel                   41,018.25     7,470.09    41,635.46    7,582.49
 
 Employee 
 Benefits Expense        3,360.12       611.93     3,101.71      564.87
 
 Finance Costs           1,924.36       350.46     1,711.64      311.72
 
 Depreciation and
 amortization expense    3,396.76       618.60     2,791.70      508.41
 
 Generation, 
 administration 
 & other expenses        4,211.22       766.93     3,588.79      653.58
 
 Prior period
 items (net)               (29.72)       (5.41)     (313.58)     (57.11)
 
 Total Expenses         53,880.99     9,812.60    52,515.72    9,563.96
 
 Profit before Tax 
 and exceptional items  14,894.52     2,712.54    12,326.16    2,244.80
 
 Exceptional items       1,684.11       306.70            -           -
 
 Profit before tax      16,578.63     3,019.24    12,326.16    2,244.80
 
 Tax Expense             3,959.24       721.04     3,102.43      565.00
 
 Profit for the year    12,619.39     2,298.20     9,223.73    1,679.80
 
                                 2012-13                2011-12
                         Rs. Croe     US $ Mn*    Rs. Crore    US $ Mn*
 
 Transfer to bond 
 redemption reserve        492.79        89.75       482.38       87.85
 
 Transfer to general
 reserve                 6,500.00     1,183.76     5,200.00      947.00
 
 Transfer to 
 capital reserve             0.97         0.18         0.44        0.08
 
 Interim dividend        3,092.07       563.12     2,885.92      525.57
 
 Proposed dividend       1,649.09       300.33       412.27       75.08
 
 Tax on dividend           781.87       142.39       527.92       96.14
 
 *1US$= Rs. 54.91 as on March 31,2013
 
 2.  DISINVESTMENT
 
 One of the major highlights of the year that passed was that the
 Government of India divested 78,32,62,880 number of equity shares
 (9.50%) of NTPC on 7th February 2013 using the Offer for Sale through
 Stock Exchange Mechanism. With this, the GOIs holding in NTPC has
 reduced from 84.50% to 75.00%. The Offer was over- subscribed by 1.7
 times and garnered Rs. 11,469.39 crore at weighted average price of Rs.
 146.43. An important feature was that 45% of the subscription came from
 Fils.
 
 3.  DIVIDEND
 
 3.1 Interim, Special and Final Dividend:
 
 In addition to interim dividend ofRs. 3.75 per equity share paid in
 March 2013, your Directors have recommended a special dividend of Rs.
 1.25 per equity share and final dividend ofRs. 0.75 per equity share
 for theyear 2012-13.  With this the total dividend for theyear isRs.
 5.75 (including special dividend ofRs. 1.25) per equity share ofRs.
 10/- each against Rs. 4.00 per share paid during last year.
 
 The total dividend payout is 37.57% and the total dividend payout
 including dividend tax is 43.77% of profit after tax. The special and
 final dividend shall be paid afteryour approval at the Annual General
 Meeting.
 
 The dividend has been recommended in accordance with your Companys
 policy of balancing dividend pay-out with the requirement of deployment
 of internal accruals for its growth plans.
 
 Your Directors believe that growth of the Company through capacity
 addition, backward and forward integration and strategic
 diversification of its operations would lead to increase in
 shareholdersvalue.
 
 4.  OPERATIONAL PERFORMANCE
 
 4.1 Generation:
 
 During the year, the power stations of your Company generated 232.028
 BUs (247 BUs including JVs) of electricity which was 25.57% (27.22%
 including JVs) of the total power generated in India (without Bhutan
 import).
 
 The total power generated by the Company has registered an increase of
 4.49% over the previous years generation of 222.068 BUs. The total
 generation contributed by coal stations is 212.329 BUs during the year
 against generation of 199.054 BUs last year registering a growth of
 6.67%.
 
 Generation from coal based units could have been still higher but due
 to less grid demand there was generation loss of 7.48 BUs. The coal
 based stations of your Company operated at average Plant Load Factor
 (PLF) of 83.08% (All India PLF 69.95%) and average Availability Factor
 of 90.20% on bus bar during theyear. During theyear, 6 coal based
 stations out of16achieved more than 90% PLF.
 
 The gas stations having a capacity of 3,955 MW achieved annual
 generation of 19.699 BUs at a PLF of 55.98% as against 23.014 BUs last
 year mainly due to less grid demand which accounted for a generation
 loss of 12.954 BUs. The average declared capacity ofgas based stations
 of the year was 93.14% as compared to 93.81% during previous year.
 
 Management Discussion and Analysis Report
 
 Management Discussion and Analysis Report for the year under review, as
 stipulated under Clause 49 of the Listing Agreement with the Stock
 Exchanges in India and as per Guidelines on Corporate Governance
 forCPSEs issued by Department of Public Enterprises, GOI, is presented
 in Annex-I to this Report.
 
 5.  COMMERCIAL PERFORMANCE
 
 Your Company has realized 100% payment of current bills raised for sale
 of power, thus achieving this feat for the tenth consecutive year.
 
 5.1 Rebate Scheme/ One Time Settlement Scheme for realization of dues:
 
 In order to achieve early realization of dues, your Company gives
 rebate to its beneficiaries who make payments within time, through its
 Rebate Schemes.
 
 In the Rebate Scheme for 2012-13 rebate was given to those customers
 also who were making payment after 30 days and upto 55th day.
 
 Rebate Scheme for 2013-14 contains an additional provision of
 additional rebate of 0.1% for opening of monthly Letter of Credit (LC)
 by beneficiaries over and above the Rebate Scheme for 2012-13.
 
 Most of the customers were making their payments within 30 days of
 billing, barring state utilities from UP, Haryana, Punjab, Himachal
 Pradesh, Andhra Pradesh, Tamil Nadu, Rajasthan, Meghalaya who were
 making their payments within allowable 60 days period.
 
 All the beneficiaries have established LC and are maintaining it. As on
 31.03.2013, your Company has monthly LCs ofRs. 5,915.60 crore.
 
 The issue of DESU period dues payable by Government of NCT of Delhi has
 been settled and Government of India had approved settlement ofRs.
 2,520.08 Crore (Rs. 835.97 crore as principal and Rs. 1,684.11 crore as
 interest and surcharge) towards DESU dues. The receipt of amount is
 being pursued with the Govt.
 
 5.2 Commercial Capacity:
 
 The following units were declared commercial during the year 2012-13,
 adding 4,830 MW to commercial capacity ofyour Company, the highest ever
 in a year:
 
 Project/ Unit                         Capacity      COD*
                                      (MW) 
 
 NTPC Units- Coal Based (I)
 
 Farakka-III, Unit#6                     500      04.04.2012
 
 Sipat-I, Unit#2                         660      25.05.2012
 
 Sipat-I, Unit#3                         660      01.08.2012
 
 Simhadri-II, Unit#4                     500      30.09.2012
 
 Rihand-III, Unit#5                      500      19.11.2012
 
 Vindhyachal-IV, Unit#11                 500      01.03.2013
 
 Mouda-I, Unit#1                         500      13.03.2013
 
 Total (I)                             3,820 
 
 NTPC Units -Renewable Energy Units (II)
 
 Dadri Solar                               5      30.03.2013
 
 Andaman & Nicobar                         5      31.03.2013
 Islands Solar
 
 Total (II)                               10 
 
 NTPCs JV Units- Coal Based (III) 
 
 Jhajjar,Unit#2(JV with                  500      21.04.2012
 IPGCL and HPGCL)
 
 Vallur, Unit#1 (JV with                 500      29.11.2012
 TANGEDCO)
 
 Total (III)                           1,000
 
 Total Capacity declared               4,830 
 commercial during 2012-
 13(incl. JVs) (I)+(II)+(III) 
 
 * COD- Commercial Operation Date
 
 Further, after the financial year 2012-13, Unit#3 of 500 MW of Jhajjar
 (owned by JV, Aravali Power Company Private Limited) has been declared
 commercial on 26.04.2013.
 
 5.3 Determination of Tariff:
 
 Your Company had filed tariff petitions for the five- year period
 starting 1.4.2009 before Central Electricity Regulatory Commission
 (CERC) for all the stations in accordance with the CERC (Terms and
 Conditions of Tariff) Regulations, 2009.
 
 Tariff orders have been received for 26 stations till 31.03.2013 out of
 35 stations.
 
 True-up petitions for revision of tariff were filed for 20 stations.
 
 CERC had allowed additional reimbursement ofRs. 764.97 crore for
 2004-09 period related to pay revision for NTPC employees, CISF and
 Kendriya Vidyalaya staff.
 
 5.4 Other Activities:
 
 Long term access for evacuation of power has been granted for five
 projects i.e. Vindhyachal-V, Dadri Solar, Tanda, Lara and Darlipalli.
 
 CERC issued an amendment in the grant of connectivity regulation to
 allow connectivity to renewable projects having capacity above 5 MW but
 less than 50 MW being developed in the existing generating stations
 through the existing electrical system of the stations. This provision
 would enable your Company to set up renewable capacity within the
 premises of the existing generating stations.
 
 5.5 Strengthening Customer Relationship:
 
 Customer Relationship Management (CRM) initiative has been taken by
 your Company towards strengthening relationship with the customers.
 This is also reflected in the Core Values of your Company which
 emphasize Customer Focus.
 
 Under CRM, apart from Regional Customer Meets, Business Partner Meets,
 training programs for officials of customers at PMI, regular structured
 interaction with customers takes place on an ongoing basis for sharing
 of feedbacks, experiences and expectations. Based on the feedback
 received from the customers, the Company provides various support
 services to them, identifies potential areas of cooperation and shares
 best practices with the customer utilities. During 2012-13, 58 such
 services were provided to the customers on the basis ofthe requirement
 expressed by various customers. Further, 138 participants from various
 customer utilities attended training in 60 programs conducted by PMI.
 
 Starting from 2008-09, NTPC has rolled out a Customer Satisfaction
 Index (CSI) Survey for gathering customers feedback and responding
 to their requirements. This initiative serves as a useful tool for
 further strengthening Customer Relationship and better appreciation of
 our business. The CSI Survey was conducted in 2012-13 and detailed
 action plan has been made based on the response to the survey.
 
 6.  INSTALLED CAPACITY
 
 During theyear 2012-13, your Company added 4,170 MW as per details
 given below:
 
 Project/ Unit installed during FY 2012-13       Capacity (MW)
 
                                  NTPC owned
 
                           Coal Based Power Projects
 
 Sipat-I, Unit #3                                      660
 
 Vindhyachal- IV, Unit# 11&12                         1000
 
 Mouda-I,Unit1&2                                      1000
 
 Rihand, Unit # 5                                      500
 
                           Renewable Energy Projects 
                      
 Solar PV Project at Andaman &                           5
 Nicobar Islands
 
 Solar PV Project at Dadri                               5
 
                           Under JVs (Coal Based Power Projects)
 
 Jhajjar (JV with HPGCL & IPGCL),                      500
 Unit # 3 
 
 Vallur (JV with TANGEDCO), Unit#2                     500
 
 Addition during FY 2012-13                          4,170
 
 6.1 Installed Capacity of NTPC Group:
 
 The total installed capacity of the NTPC Group has increased from
 37,014 MW as on 31.03.2012 to 41,184 MW as on 31.03.2013 as tabulated
 below:
 
 Owned by NTPC                                MW
 
 Coal based projects                      31,855
 
 Gas based projects                        3,955
 
 Renewable Energy Projects                    10
 
 Sub-total                                35,820
 
 Joint Ventures & Subsidiaries
 
 Coal based projects                       3,424
 
 Gas based projects                        1,940
 
 Sub-total                                 5,364
 
 Total                                    41,184
 
 7.  CAPACITY ADDITION PROGRAM
 
 Your Company has adopted a multi-pronged growth strategy which includes
 capacity addition through green field projects, brown field
 expansions,jointventures and acquisitions towards its journey to become
 the worlds largest power producer.
 
 In addition to furthering capacity addition through Coal and Gas based
 power projects, your Company has been pursuing enhancement of its power
 generation portfolio through Hydro, Renewable Energy and Nuclear energy
 projects.
 
 7.1 Projects under Implementation
 
 Your Companys various projects having aggregate capacity of 20,009
 MW including 5,190 MW, being undertaken by Joint Venture companies were
 under construction as on 31.03.2013:
 
 Ongoing Projects as on 31.03.2013
 
                                                       Capacity (MW)
 
 I. Projects under NTPC Ltd
 
 A.  Coal Based Projects
 
 1.  Bongaigaon-I                                           750
 
 2.  Barh-I                                               1,980
 
 3.  Barh-II                                              1,320
 
 4.  Lara-I                                               1,600
 
 5.  Kudgi-I                                              2,400
 
 6.  Vindhyachal-V                                          500
 
 7.  Gadarwara*                                           1,600
 
 8.  Solapur                                              1,320
 
 9.  Mouda-II                                             1,320
 
 10.  Rihand-III                                            500 
 
 Sub Total (A)                                           13,290
 
 B.  Hydro Electric Power Projects (HEPP)
 
 11.  Koldam                                                800
 
 12.  Tapovan Vishnugad                                     520
 
 13.  Lata Tapovan                                          171 
 
 Sub Total (B)                                            1,491
 
 C.  Renewable Energy Projects
 
 14.  Singrauli CW Discharge(Hydro)                           8
 
 15.  Ramagundam Phase-I(Solar PV)                           10
 
 16.  Talcher Kaniha (Solar PV)                              10
 
 17.  Unchahar (Solar PV)                                    10 
 
 Sub Total (C)                                               38 
 
 Total I (A)+(B)+(C)                                     14,819
 
 II Projects under JVs
 
 Coal Based Projects
 
 18.  Nabinagar-JV with Railways                          1,000
 
 19.  Muzaffarpur Expansion (MTPS)- JV                      390
      with BSPGCL(erstwhile BSEB)
 
 20.  Nabinagar,JV with BSPGCL(erstwhile no. BSEB)        1,980
 
 21.  Vallur, Phase-II JV with TANGEDCO                     500
 
 22.  Meja, JVwith UPRVUNL                                1,320
 
 Total II                                                 5,190
 
 III Total On-Going Projects as on                       20,009
 31.03.2013 (I)+(II)                                   
 
 *Gadarwara Project in Madhya Pradesh (2X800 MW) is beins implemented in
 place of Gajmara project in Odisha as the land for the same was not
 available.
 
 Further, after the financial year 2012-13, awards have been placed and
 work has begun for 5 MW Solar Power Plant at Faridabad and 50 MW Solar
 Power Plant at Rajgarh (Madhya Pradesh). Thus, 20,064 MW projects are
 under construction byyour Company.
 
 7.2 New Projects
 
 Currently, your Company has projects for 3,555 MW capacity under
 bidding. Feasibility Reports of 20,715 MW capacity (including 2100 MW
 through Joint Venture) have already been approved byyour Board.
 
 7.3 New Technology
 
 To meet the future challenges of meeting Indias electricity needs at
 affordable cost with minimum environmental impact, your Company has
 drawn a long term Technology Roadmap up to 2032. The technology roadmap
 envisages development, adoption and promotion of safe, efficient and
 clean technologies for entire value chain of power generation business.
 
 For most of the new projects, your Company will be setting up super
 critical and Ultra Super Critical units of 660/ 800 MW which have
 higher efficiency and are also environmental friendly. Your Company has
 awarded bulk tendering projects with super critical technology for
 Kudgi-I (3X800 MW), Lara-I (2X800 MW), Solapur (2X660 MW), Mouda -II
 (2X660 MW) and Gadarwara (2X800 MW).
 
 Your Company has adopted several new technologies, system and practices
 including combined cycle gas-fired power stations, Distributed Digital
 Control & Management Information System, High Voltage Direct Current
 transmission, Sliding Pressure Operation of SG, Dry Ash Extraction and
 Disposal, 765 KV Switchyard, Ash Water Recirculation System, Liquid
 Waste Management System, Performance Analysis and Diagnostic
 Optimization, Tunnel Boring Machines and Super Critical Technologies.
 Three (03) numbers Super critical units of 660 MW is already under
 operation at Sipat-I where steam parameters are 247 kg/cm2/537 C/5650
 C. Further, your Company has adopted higher steam parameters for all
 660 & 800 MW units from Barh-ll onward resulting in 5% gain in
 efficiency over the efficiency of conventional sub-critical 500 MW unit
 using similar coal. For all the new sub-critical 500 MW units also,
 reheat temperature has been increased to 565 0 C resulting in about
 0.7% gain in efficiency.
 
 Your Company has taken initiatives for indigenous development of
 advance ultra super critical technology for which it has entered into
 MOU with BHEL and IGCAR.  It has potential to enhance thermal
 efficiency of the power plant to around 46% and result in about 15-20%
 less C02 emission as compared to conventional 500 MW sub-critical
 thermal power plants. It envisages installing a technology
 demonstration plant having 800 MW unitwith steam parameters of310 kg/sq
 cm7100 C/720 C.
 
 Your Company is preparing Detailed Project Report for hybrid solar
 thermal plant of about 3.6 MW by integration of solar heat with 210 MW
 coal based unit at Dadri.  Solar heat is proposed to be integrated
 along with feed heaters in the turbine cycle for conversion of solar
 heat to electrical power with the help of existing steam cycle of 210
 MW. Once integrated, this will reduce coal consumption thereby reducing
 C02 emissions.
 
 7.4 Project Management
 
 Your Company has an established state-of-the-art IT enabled Project
 Monitoring Centre (PMC) for facilitating fast track project
 implementation. PMC has advanced features like Web-based Milestone
 Monitoring System (Webmiles), Project Review and Internal Monitoring
 System (PRIMS), Enterprise-wide Issues Tracking System, etc. PMC
 facilitates monitoring of key project milestones and also acts as
 decision support system for the management.
 
 PMC is extensively utilized fortracking and resolving project issues
 and helps in providing effective coordination between the agencies
 including management intervention and has provided enhanced and
 efficient monitoring of projects leading to better, faster and
 integrated implementation.
 
 Your Company is establishing an integrated ERP Platform for monitoring
 and controlling of critical project activities spread across various
 functions like engineering, contracts and finance. This interface will
 help in getting timely inputs for decision making.
 
 7.5 Capacity addition through Subsidiaries and Joint Ventures (JVs)
 
 Besides adding capacities on its own, your Company develops power
 projects through its subsidiaries and joint ventures, both in India and
 abroad. Details of Joint Ventures abroad are covered under the heading
 Globalisation Initiatives.
 
 The information of Indian Subsidiaries and JV Companies along with
 details of partners ofjoint ventures for capacity addition is given
 below:
 
 Name of            JV Partner(s)          Details
 Company
 
 NSPCL              Steel Authority 
                    of India               A 50:50 JVC formed to own and
                                           operate captive power plants 
                                           for Steel 
 (NTPC-SAILPower    Ltd. (SAIL)            Authrity of India at 
                                           Dursapur(120 MW), Rourkela 
                                          (120 MW) and Bhilai Steel
 Co Pvt Ltd)                               plant MW). 2X250 MW units have  
                                           been implemented at Bhilai.
 
 NTECL              Tamilnadu 
                    Generation and         A 50:50 JVC is implementing 
                                           3x500 MW coal based power 
                                           project at
 (NTPC TamilNadu    Distribution
                    Corporation            Vallur,Tamilnadu.
 Enersy Co Ltd)     Limited                Unit#1 of the Project was 
                                           declared commercial on
                                           29.11.2012. Unit #2
                   (TANGEDCO) (erstwhile   was synchronized on 28.02.2013
                                           and achieved full load on
                                           28.03.2013.
                    TNEB)                  Construction of Unit#3 is 
                                           in progress.
 
 APCPL              Indraprastha Power     This JVC is implementing the
                                           coal based Indira Gandhi Super 
                                           Thermal
 (Aravali Power     Generation Co Ltd.     Power Project consisting of 3
                                           units of 500 MW each. NTPC, 
                                           IPGCL and HPGCL
 Company Pvt       (IPGCL) and Haryana     have contributed equity in 
                                           the ratio of 50:25:25. All 
                                           the three units of the
 Ltd)               Power Generation 
                    Co Ltd.                project have been 
                                           synchronized and declared 
                                           commercial. The third unit
                   (HPGCL).                was declared commercial on 
                                           26.04.2013.
 
 BRBCL              Ministry of Railways   A subsidiary of NTPC in joint
                                           venture with Ministry of
                                           Railways with equity
 (Bhartiya Rail     
 Bijlee                                    contribution in the ratio of
                                           74:26 respectively for setting
                                           up power project
 Company Ltd )*                            of 1000 MW (4X250 MW) capacity
                                           at Nabinagar in Bihar.
                                           Construction work is under 
                                           progress.
 
 MUNPL              Uttar Pradesh  
                    Rajya Vidut            A 50:50 JVC formed for 
                                           setting up 1,320 MW (2X660 MW)
                                           coal based
 (Meja Urja Nigam   Utpadan Nigam Ltd.     power project in the state of
                                           Uttar Pradesh. Main plant 
                                           award (SG and TG
 pvt Ltd.)         (UPRVUNL)               Package) has been placed and
                                           construction activities are 
                                           in progress.
 
 KBUNL              Bihar State Power      A subsidiary of NTPC in joint
                                           venture with BSPGCL 
                                          (erstwhile BSEB), took
 (Kanti Bijlee      Generation Company     over MTPS having 2 units of
                                           110 MW each from BSEB. The
                                           equity of NTPC 
 Utpadan Nigam      Limited (erstwhile
                   (BSEB)                  in this subsidiary is 65%. 
                                           Both the units of Stage-I 
                                           are under Renovation and 
 Ltd)                                      Modernisation. The Company 
                                           has also taken up expansion 
                                           of the project by 2X195 MW 
                                           units forwhich construction
                                           work is in progress.
 
 NPGCL              Bihar State Power      A 50:50 JVC for setting up 
                                           and operation of a 3x660 MW 
                                           Coal based
 (Nabinagar         Generation Company     plant at Nabinagar. 
                                           Investment approval has been
                                           accorded by NTPC in
 Power Generating   Limited (erstwhile 
                   (BSEB)                  January 2013 and main plant
                                           TG & SG packages have been 
                                           awarded. Land 
 Company Pvt. Ltd.)                        acquisition activities are
                                           in progress.
 
 RGPPL              GAIL,ICICI,SBI,IDBI,   NTPC is having a stake of 
                                           32.86% (as on 30.06.2013).
                                           All the three Power
 (Ratnagiri 
 Gas and            Canara Bank and MSEB   Blocks with a combined
                                           capacity of 1,940 MW are 
                                           under commercial 
 Power Pvt. Ltd.)   Holding Co.            operation since May 2009.
                                           Power Block generated 5,127 
                                           MUs of energy during the
                                           FY 2012-13.
 
                                           The LNG terminal commissioning
                                           cargo was received at the 
                                           Terminal on 28.12.2012 and
                                           the re-gasified LNG was 
                                           injected for the first time 
                                           on 10.01.2013.In addition to
                                           the commissioning cargo, the 
                                           Company received and unloaded  
                                           five LNG cargos and re-
                                           gasified and supplied 
                                           396712200 MMSCM of RLNG in 
                                           its pipeline.
 
 ASHVINI            Nuclear Power  
                    Corporation            ASHVINI was incorporated on
                                           27.01.2011 as a JVC with
                                           NPCIL having 51%
 (Anushakti         of India Ltd.     
                   (NPCIL)                 equity and NTPC having 49%
                                           equity. The company has been
                                           formed for
 Vidhyut Nigam                             setting up nuclear power 
                                           project (s) and also to 
                                           explore possibilities of
 Ltd.)                                     entering in areas of front
                                           end fuel cycle like uranium
                                           mining etc.
 
 *In addition, NTPC Limited has signed Memorandum of Understanding with
 Ministry of Railways to set up 1,320 MW power project at Adra, West
 Bengal through Bhartiya Rail Bijlee Company Limited. Water allocation
 has been sanctioned from Damodar- Barakar River System and NOC from
 Airport Authority of India has been obtained. BRBCL has initiated
 proposal to carry out the remaining site specific studies.
 
 7.6 Hydro Power
 
 7.6.1 Your Company is setting up the following hydro projects for
 increasing its footprints in renewable energy development:
 
 Project               Location                 Capacity
 
 Koldam HEPP           Himachal Pradesh         800 MW
 
 Tapovan-Vishungad     Uttarakhand              520MW 
 HEPP
 
 Construction work is in progress in Koldam HEPP and Tapovan - Vishnugad
 HEPP.
 
 In addition, Lata Tapovan HEPP (171 MW) (under construction) and
 Rammam-lll HEPP (120 MW) (under bidding) were being implemented by NTPC
 Hydro Limited, a wholly-owned subsidiary of NTPC.
 
 NTPC Hydro Limited is now being merged with NTPC Limited, for which the
 Shareholders Meeting of NTPC and Shareholders Meeting of NHL was
 held on 24.05.2013, as per the Order of the Ministry of Corporate
 Affairs. The legal process ofamalgamation is in progress.
 
 Loharinag Pala HEPP had been discontinued on the advice of Ministry of
 Power. The Empowered Committee constituted by GOI for the purpose of
 settling the claims had approved reimbursement of Rs. 536.30 crore in
 first Phase to NTPC, your Company is pursuing for release of funds.
 
 The flash flood during June 2013 in the river Dhauliganga have caused
 damage to barrage and roads approaching to power houses at Lata Tapovan
 HEPP and Tapovan- Vishnugad HEPP. At Tapovan-Vishnugad HEPP, damages
 have also been caused to upstream and downstream diversion dyke, roads,
 besides water logging and silt accumulation in power house cavern &
 Tail Race Tunnel (TRT). While the exact impact shall be known after
 receding of flood, however, these factors may influence project
 commissioning schedule.
 
 7.6.2 Hydro Engineering
 
 In pursuance of Memorandum of Agreement signed with Govt, of Mizoram,
 Detailed Project Report of Kolodyne-ll HEPP (4X115MW) prepared by
 Central Water Commission for Govt, of Mizoram and updated by NTPC was
 submitted to CEA for according Techno-Economic Clearance (TEC). CEA has
 considered the proposal and accorded Techno-Economic Clearance. As the
 land required for the project involves Forest Land, the proposal for
 approval of diversion of Forest Land was submitted to the Government of
 Mizoram. Government of Mizoram is yet to submit the proposal to
 Ministry of Environment and Forests.
 
 7.7 Capacity Addition through other Renewable Energy Sources your
 Company is planning to add capacity through renewable sources of
 energy. It offers environmentally clean power.
 
 your Company plans to broad-base its generation mix to ensure long term
 competitiveness, mitigate fuel risks and promote sustainable power
 development.
 
 In pursuit of these objectives, 10 MW Solar power capacity has already
 been commissioned. 93 MW capacity comprising 85 MW of Solar Power
 projects and
 
 8 MW of Small Hydro Power Project is under execution, details of which
 are given under the heading project implementation. 95 MW comprising 15
 MW Solar Power Project at Singrauli and Wind Energy Projects of 40 MW
 each at Karnataka and Maharashtra are under tendering.  Detailed
 Project Report is under finalization for 3 MW Small Hydro Project at
 Rihand.
 
 A Joint Venture Company has been incorporated amongst NTPC Limited,
 Asian Development Bank and Kyuden International Cooperation, Japan
 under the name PAN- ASIAN Renewables Private Limited to develop
 projects for portfolio of about 500 MW of renewable power generation
 resources in India. The Company is preparing its initial business plan.
 
 your Company has signed an MOU with CREDA for exploring the potential
 of Tatapani Geothermal field and subsequently implementing geothermal
 based power project at Tatapani in Chattisgarh on Build, Own and
 Operate Basis.
 
 An MOU has been signed with Government of Kerala (GoK) with the
 objective to plan and develop around 200 MW wind energy based power
 projects in Kerala in association with GOK on Build, Own and Operate
 Basis using state-of-the-art technology subject to establishment of
 techno-commercial viability.
 
 8.  STRATEGIC DIVERSIFICATION- INCREASING SELF- RELIANCE
 
 8.1 In order to strengthen its competitive advantage in power
 generation business, your Company has diversified its portfolio to
 emerge as an integrated power major, with presence across entire power
 value chain through backward and forward integration into areas such as
 coal mining, power equipment manufacturing, power trading, and
 distribution.
 
 Our Company continuously explores business opportunities through market
 scanning and adopts new business plans accordingly.
 
 8.1.1 The details ofjoint venture companies taking up activities in
 other businesses are given below:
 
 Name of JV            Partner             Activities
 Company                                   undertaken
 
 UPL                   Reliance            Takes up assignments of 
 (Utility              Infrastructure      construction, erection and
 Powertech             Limited             supervision of business in
 Ltd.)                                     power sector and other 
                                           sectors like O&M services etc
 
 NASL                  ALSTOM              Takes up renovation and 
 (NTPC                 Power               modernization assignments 
 ALSTOM                Generation,         of power plants both in 
 Power                 AG                  India and in other SAARC
 Services                                  countries.
 Pvt. Ltd.)
 
 EESL                  PFC, PGCIL          The Company was formed 
 (Energy               and REC             on December 10, 2009 
 Efficiency                                for implementation of
 Services                                  Energy Efficiency projects
 Ltd.)                                     and to promote energy
                                           conservation and climate 
                                           change.
 
                                           The Company is providing
                                           consultancy on Energy Audit 
                                           of Buildings and Agricultural
                                           Pump replacement under 
                                           Perform Achieve Trade Scheme
                                           and implementing Bachat 
                                           Lamp Yojna for various State
                                           Govts.
 
 NHPTL                 NHPC,               The Company was 
 (National             PGCIL, DVC          incorporated on
 High                  and CPRI            22.05.2009 for setting up 
 Power Test                                facility for short circuit
 Laboratory                                testing of transformers and
 Pvt. Ltd.)                                other electrical equipment.
                                           The site for setting up the 
                                           laboratory is located at Bina
                                           , MP. Construction activities
                                           and award activities are in
                                           progress.
 
 NPEX                  NHPC, PFC           The Company was formed 
 (National             TCS, NHPC,          to facilitate, promote,
 Power                 BSE, IFCI,          assist, regulate and manage
 Exchange              Meenakshi,          nation wide trading of all 
 Ltd.)                 DPSC                forms of electrical energies
                                           and also to settle trades in 
                                           a transparent fair and open 
                                           manner.
 
                                           In view of the change in 
                                           market scenario and the fact
                                           that NTPCs objective of 
                                           joining NPEX has not been 
                                           met till date, your Company 
                                           has decided to exit from NPEX.
 
 8.2 The details of other subsidiary companies are as under:
 
 8.2.1 NTPC Electric Supply Company Limited, a wholly owned subsidiary
 of NTPC was incorporated to foray into the business of distribution and
 supply of electrical energy as a sequel to reforms initiated in the
 power sector. The Company is implementing Rajiv Gandhi Gramin
 Vidyutikaran Yojna projects on turnkey basis and undertakes turnkey
 execution of sub-stations for utilities and also takes up project
 management consultancy.
 
 This subsidiary is carrying business of retail distribution of power in
 various industrial parks developed by Kerala Industrial Infrastructure
 Development Corporation (KINFRA), through its Joint Venture Company
 namely KINESCO Power and Utilities Private Limited, formed with KINFRA.
 
 The Company is making continuous efforts to take up the new business
 activities in different areas including retail distribution of
 electricity to bulk industrial consumers in up-coming mega industrial
 areas/ SEZs.
 
 8.2.2 NTPC Vidyut Vyapar Nigam Limited, a wholly owned subsidiary of
 NTPC was incorporated to undertake sale and purchase of electric power
 and to effectively utilize installed capacity and thus enable reduction
 in the cost of power.
 
 The Company is involved in power trading, sale of fly ash and
 cenosphere.
 
 It has been appointed as the nodal agency for cross border trading of
 electricity with Bhutan and Bangladesh. It has signed a Power Purchase
 Agreementwith Bangladesh Power Development Board for supply of 250MW
 power for 25 years from various Central Generating Stations of NTPC.
 The power is likely to commence from the end of July 2013.
 
 The Company has also been designated as the Nodal Agency for purchase
 of grid connected solar power upto 1000 MW as a part of Phase-I of
 Jawahar Lai Nehru National SolarMission.
 
 8.3 In order to strengthen its competitive advantage in power
 generation business, the Company has diversified into the area of
 manufacturing through the followingjointventures:
 
 8.3.1 NTPC-BHEL Power Projects Pvt. Limited (NBPPL), ajoint venture of
 your Company with BHEL was incorporated on April 28, 2008 for taking up
 activities of engineering, procurement and construction of power plants
 and manufacturing of equipments. The manufacturing plant of NBPPL is
 being set up at Mannavaram, Tirupati in Andhra Pradesh for CHP and AHP.
 
 The Company is executing EPC contracts for balance of plants packages
 of Palatana Combined Cycle Power plant in Tripura and Namrup Combined
 Cycle Power Plant in Assam for BHEL. It is also executing BOP including
 Erection & Commissioning works of the entire plant at Monarchak,
 Tripura for NEEPCO.
 
 8.3.2 BF-NTPC Energy Systems Limited was incorporated with Bharat Forge
 Limited on June 19, 2008 to manufacture castings, forgings, fittings
 and high pressure piping required for power projects and other
 industries.
 
 The Company is setting up plant at Solapur for which technical
 specifications for administrative buildings has been submitted by the
 consultant.
 
 8.3.3 Your Company has acquired 44.6% stake in Transformers and
 Electricals Kerala Limited from Government of Kerala on June 19, 2009.
 The Company deals in manufacturing and repair of Power Transformers.
 Expansion of plant facilities was completed in January2013.
 
 Please refer to Management Discussion and Analysis, Annexure-I
 included as a separate section to this report for further details of
 subsidiary and joint venture companies of NTPC.
 
 9.  GLOBALISATION INITIATIVES
 
 9.1 Trincomalee Power Company Limited, a 50 50 joint venture Company
 between NTPC and Ceylon Electricity Board was incorporated on
 26.09.2011 to undertake the development, construction, establishment,
 operation and maintenance of a coal based electricity generating
 station of 2X250 MW capacity at Trincomalee at Srilanka.  Finalisation
 of various agreements between JV Company and CEB is in progress.
 
 9.2 Bangladesh - India Friendship Power Company Private Limited, a
 50:50jointventure company between between NTPC and Bangladesh Power
 Development Board (BPDB) was incorporated on 31.10.2012 for developing
 a 2X660 MW Coal based power project at Khulna, Bangladesh.  Feasibility
 Report of the Khulna project has already been approved by NTPC.
 
 9.3 your Company has prepared and submitted the DPR for Amochu
 Hydro-electric project in Bhutan on consultancy basis. The DPR has been
 cleared by CEA.
 
 10.  NTPC Consultancy Wing: As a result of the phenomenal success
 achieved by your Company in executing its own power projects, many
 utilities from India and abroad approach NTPC to benefit from the rich
 experience gained by your Company. With this in view, NTPC formally
 established a Consultancy Wing in 1989. Since then, this wing has been
 receiving orders from domestic and international clients. Consultancy
 Wing is now recognized as Consultant with several leading domestic and
 international development and financial institutions and clients. It
 offers services like Engineering Services, Operation & Maintenance
 Management Services, Project Management Services, Contracts &
 Procurement Management Services, Quality Management Services, Training
 & Development Services etc.
 
 Consultancy Wing has provided various services in domestic and
 international markets in Gulf countries, Bangladesh, Srilanka and
 Bhutan like preparation of Feasibility Report for Bangladesh Power
 Development Board, Bangladesh and site selection, site specific studies
 and preparation of Feasibility Report for the proposed 2X250 MW
 Trincomalee Coal Power Project at Srilanka.  This Wing is also
 providing O&M Management Services to 2X120 MW Siddhirganj Peaking Power
 Plant of Electricity Generation Company of Bangladesh under a World
 Bank funded contract.
 
 On the domestic front too, Consultancy Wing has been effectively
 sharing its expertise with several power utilities.
 
 11.  FINANCING OF NEW PROJECTS
 
 The capacity addition programs shall be financed with a debt to equity
 ratio of 70:30. your directors believe that internal accruals of the
 Company would be sufficient to finance the equity component for the new
 projects. Given its low geared capital structure and strong credit
 ratings, your Company is well positioned to raise the required
 borrowings.
 
 your Company is exploring domestic as well as international borrowing
 options including overseas development assistance provided by bilateral
 agencies to mobilize the debt required for the planned capacity
 expansion program.
 
 During the year 2012-13, term loan agreements of Rs. 6,970 crore were
 entered into including loan agreement ofRs. 2,000 crore executed with
 Union Bank of India and loan agreement ofRs. 600 crore executed with
 J&K Bank Limited. The cumulative amount of domestic loans tied up till
 March 31, 2013 was Rs. 59,699.35 crore (excluding undrawn loans
 short-closed as per agreements).
 
 your Company has also tied-up USD 750 million from international debt
 markets through foreign currency notes and term loan.
 
 The bond offering of the Company received strong investor response.
 
 12.  FIXED DEPOSITS
 
 The cumulative deposits received by your Company from 98 depositors as
 at March 31, 2013 stood atRs. 0.63 crore.  Further, an amount ofRs.
 0.16 crore has not been claimed on maturity by 9 depositors as on March
 31, 2013.
 
 your Company has discontinued the acceptance of fresh deposits and
 renewals of deposits under NTPCs Public Deposit Scheme with effect
 from 11.05.2013.
 
 13.  FUEL SECURITY
 
 13.1 During the year, the supply position of coal and gas is given as
 under:
 
 13.1.1 Coal Supplies
 
 your Company has Fuel Supply Agreements (FSA) in place for 20 years for
 23,895 MW units commissioned till 31.03.2009. your Company has signed
 in-principle FSAs for NTPC and its JVs with Coal India Limited for
 14,010 MW on 17.07.2013. However, detailed FSAs are signed for 4,760 MW
 NTPC Stations and 2,250 MW for NTPC JV stations. Further, detailed FSAs
 will be signed for balance capacity 4,860 for NTPC stations and 2,140
 MW for NTPC JV stations shortly.
 
 your Company has obtained Letter of Assurance from Eastern Coalfields
 Limited for supply of 0.4 MMT of coal for Bongaigaon (2X250MW).
 
 The Company has also tied up coal supply through bilateral MOU for 0.3
 MMT coal for Farakka with NEC and for 4.0 MMT with SCCL for Ramgundam
 and Simhadri at a mutually negotiated price. The total coal supply
 through bilateral MOU during 2012-13was 3.122 MMT.
 
 13.1.2 Domestic Coal and Imported Coal
 
 During 2012-13, your Company received 155 MMT of coal as against 141
 MMT in 2011-12 marking an increase of 10%.
 
 Total domestic coal supply during 2012-13 was 145.9 MMT as against 129
 MMT during 2011-12.
 
 The total coal supply from CIL was 132.6MMT and from SCCLwas 13.3 MMT.
 
 During 2012-13, your Company imported 9.1 MMT ofcoal as against 12MMT
 in 2011-12.
 
 13.1.3 Sourcing of coal through E-auction
 
 For supplementing the coal supply at a few critical stations i.e.
 Sipat, Simhadri, Unchahar, Dadri and Mouda, your Company received 2.28
 MMT ofcoal through E-auction.
 
 13.2 Gas supplies
 
 During 2012-13, your Company received 10.67 MMSCMD of gas and RLNG as
 against 13.09 MMSCMD received during 2011-12. The gas off-take in
 2012-13 includes 8.77 MMSCMD ofgas and 1.90 MMSCMD of RLNG. Gas offtake
 was less due to less availability of generation schedule from the
 beneficiary states.
 
 Your Company has APM gas agreements up to the year 2021 and PMT gas
 agreements up to the year 2019 for its gas stations. The long-term RLNG
 supply agreement with GAIL is valid till 2019and the term sheet for
 non-APM gas with GAIL is valid till 2016. Further, out of 4.46 MMSCMD
 of KG-D6 gas allocated by Government of India for NCR gas stations,
 viz. Anta, Auraiya, Dadri and Faridabad, 2.30 MMSCMD has already been
 tied up. The tie-up of balance 2.16 MMSCMD KG D6 gas is under
 discussions.  However, the gas supplies from KG D6 fields have been
 continuously decreasing. As per Empowered Group of Minister/ MOP&NG
 directive to supply KG D6 gas as per sectoral priority basis, the
 supplies to Power Sector (including NTPC stations) have reduced to Nil
 from March 2013.
 
 your Company has been making arrangements for tie-up and supply of spot
 RLNG or Fallback RLNG from domestic suppliers on reasonable
 endeavour basis based on requirement and availability from time to
 time.
 
 13.3 Development of Coal Mining projects
 
 your Company was allocated six coal blocks by the Government of India
 namely Pakri-Barwadih, Chatti- Bariatu, Kerandari, Talaipalli, Dulanga
 and Chatti-Bariatu (South) with estimated geological reserves of over 3
 billion tonnes and production of about 53 million tonnes per annum
 (MTPA).
 
 Ministry of Coal, through letter dated 23.01.2013, has withdrawn
 de-allocation of Chatti-Bariatu, Kerendari and Chatti-Bariatu (South),
 which were de-allocated on 14.06.2011 and these coal blocks have been
 restored to NTPC.
 
 Development activities are in advanced stage in all coal blocks except
 in Chatti-Bariatu (South), located in dip side of Chatti-Bariatu, which
 will be developed at the end of mining of Chatti-Bariatu. Mining Plans
 have been approved by Ministry of Coal for all of these coal blocks,
 except for Chatti-Bariatu (South). All notifications for mining area
 land and Socio-Economic Surveys have been completed for all these coal
 blocks.
 
 Government of Jharkhand has approved the R&R plan and annuity scheme
 for Pakri-Barwadih coal block in February 2013. Rehabilitation Action
 Plan for Pakri-Barwadih, Chatti- Bariatu, Kerandari and Talaipalli coal
 blocks have been approved by the Board of your Company and payment of
 land compensation to project affected families is under progress.
 
 Ministry of Environment & Forests, Govt, of India (MOEF) has accorded
 environment clearance for Pakri-Barwadih, Chatti-Bariatu, Kerandari and
 Talaipalli Coal blocks. In- principle environment clearance has been
 received from MOEF for Dulanga coal block and final environment
 clearance will be issued after Stage-I forest clearance.
 
 MOEF had accorded Stage-I & Stage-ll forest clearances for
 Pakri-Barwadih and Chatti-Bariatu coal blocks and Stage-I forest
 clearance for Kerandari and Talaipalli coal blocks.
 
 Forest clearance proposal for Dulanga coal block is under consideration
 at MOEF. Construction of R&R Colony, CHP, Sub-Station, Railway Siding,
 etc. have commenced in Pakri-Barwadih coal block. Mine Developer-cum-
 Operator (MDO) has been appointed in Pakri-Barwadih, Chatti Bariatu and
 Talaipalli coal blocks.
 
 In addition to the above coal blocks, Ministry of Coal has conveyed
 in-principle approval for allotment of more coal blocks to NTPC in lieu
 of coal linkages for the following new projects:
 
 (i) Kudgi (2,400MW)
 
 (ii) Gajmara(1,600MW)
 
 (iii) Barethi (3,960 MW)
 
 (iv) Unchahar Stage-IV (500 MW)
 
 Ministry of Coal has allotted fourcoal blocks on 03.07.2013 out of six
 coal blocks applied for. The estimated geological reserves for these
 blocks are estimated to be 2 Million tones as listed below:
 
 (i) Bhalumuda, Chattisgarh (550 MT)
 
 (ii) Banai, Chattisgarh (629 MT)
 
 (iii) Chandrabila,Odisha(550MT)
 
 (iv) Kudanali- Luburi, Odisha (266 MT)
 
 Formal letter regarding allotment of coal blocks from Ministry of Coal
 is likely to be received shortly.
 
 13.4 Other initiatives for securing coal supply
 
 To leverage the strength of established players in mining and related
 areas, your Company has formed the following Joint Venture Companies:
 
 Name of                 JV                 Purpose 
 Company                 Partners
 
 CIL NTPC Urja Pvt.      Coal India         For undertaking the 
 Ltd.*                   Ltd.               Development, O&M of Brahmini
                                            and Chichro Patsimal coal 
                                            blocks and Integrated Power
                                            Project(s).
 
 NTPC SCCL               Singareni          For undertaking
 Global Ventures         Collieries         development and O&M
 Pvt. Ltd.               Company            of coal Blocks in India
                         Ltd.               and abroad.
 
                                            This Company has been 
                                            appointed as MDO for
                                            Talaipalli Coal Block.
 
 International Coal      SAIL, CIL,         For exploring various 
 Ventures Private        RINL and           opportunities in
 Limited**               NMDC               Australia, Mozambique,
                                            Canada, Indonesia and USA 
                                            for acquisition of stake in 
                                            coking coal and thermal 
                                            coal mines
 
 *ln case of Brahmini and Chichro-Patsimal coal blocks, allocated to CIL
 NTPC Urja Private Limited, Ministry of Coal had de-allocated these
 blocks for delay in their development though there was no schedule
 stipulated in the allotment letter. Your Company has taken up the
 matter with the Ministry of Coal forwithdrawal ofde-allocation.  **The
 Board of NTPC has accorded approval to exit from International Coal
 Ventures Private Limited. Approval of Ministry of Power permitting NTPC
 to exit from ICVL has been received. ICVL is pursuing with Cabinet for
 approval ofexitof NTPC out of it.
 
 13.5 Exploration Activities
 
 In Cambay exploration block allotted under NELP- VIII, held by NTPC as
 operator with 100% participating interest, 3D Seismic Data Acquisition
 has been completed and processing and interpretation of data is in
 progress.  Based on the results, exploratory drilling of wells shall be
 planned.
 
 In the other three blocks, in each ofwhich NTPC has 10% participating
 interest and ONGC is operator, exploration activities are in progress.
 
 14.  BUSINESS EXCELLENCE: GLOBAL BENCHMARKING
 
 In pursuit of actualizing our vision and with a view to achieve higher
 levels of excellence, your Company has developed and adopted its own
 NTPC Business Excellence Model on the lines of globally reputed
 Excellence Models such as Malcom Baldrige Model, USA and EFQM Model of
 Europe.
 
 This model has been deployed at our Business Units (Stations) and we
 carry out assessment of generating stations using this framework of
 excellence.
 
 The assessment process is aimed at identifying the areas for enhancing
 stakeholder engagement, accelerating critical processes and developing
 leadership potential.  The outcomes of this model are organizational
 strengths, opportunities for improvement, issues of concern and best
 practices.
 
 In the financial year 2012-13, the 3rd cycle of assessment was
 completed. The stations ranking high on excellence level like Korba,
 Talcher-Thermal and Faridabad were awarded by Honourable Union Minister
 of State (l/c) for Power.
 
 As a next step on the Journey of Excellence, your Company is
 implementing Business Balanced Scorecard capturing proper matrices to
 enhance overall strategic focus and speed.
 
 Other TQM initiatives and techniques like Quality Circles, Professional
 Circles, 5S, integrated management system (IMS) etc have been deployed
 across the organization for continuous improvement. Our Quality Circle
 teams of workmen have been consistently representing NTPC at national
 and international Quality Circle conventions and bringing many laurels.
 In the year 2012-13, Prayas Quality Circle team from Talcher-Thermal
 bagged Gold award at the International Quality Control Circles
 Convention held at Kualalumpur, Malaysia.
 
 15.  RENOVATION & MODERNISATION
 
 15.1 Need for R&M:
 
 In the present scenario of severe resource constraint, Renovation and
 Modernization (R&M) of power plants is considered to be the best option
 for bridging the gap between demand and supply of power as R&M schemes
 are cost effective. It increases the capacity and ensures safe,
 reliable and economic electricity production by replacement of
 worn-out, deteriorated or obsolete electrical, mechanical,
 instrumentation, controls and protection system by state-of-the-art
 equipment.
 
 To this end, renovations are being carried out for the purpose of life
 extension of units, performance improvements, capacity enhancement,
 availability improvement and improved environment compliance.  Your
 Company completed 761 out of 1,109 schemes of R&M, with a cumulative
 expenditure ofRs. 3,150 crore upto 31st March, 2013.
 
 In year 2012-13, investment approvals were accorded for life extension
 of Stage-I units of Ramagundam and Kobra and thereafter, investment
 approval for life extension of Singrauli Stage-I has also been
 accorded.
 
 With a view to comply with increasingly stringent environment norms
 prescribed by State Pollution Control Boards, tendering is on for
 Renovation and Retrofitting of Electrostatic Precipitator (ESP) in
 stations like Singrauli -1 & II, Farakka -1, Unchahar-1, Talcher STPS
 Stage-ll etc. With the same objective, implementation of renovatin of
 ESP is already in progress at BadarpurTPS (2x210 MW).
 
 Awards were placed during the year 2012-13 for Renovation of ESP in
 Korba -l&ll, Rihand -1, Vindhyachal -l&ll, TalcherSTPS, BadarpurTPS and
 Talcher TPS-II.
 
 16.  VIGILANCE
 
 16.1 Vigilance Mechanism:
 
 Your Company ensures transparency, objectivity and quality of decision
 making in its operations and to monitor the same, the Company has a
 Vigilance Department headed by Chief Vigilance Officer, a nominee of
 Central Vigilance Commission. The CVO reports to the Central Vigilance
 Commission.
 
 The four units of Vigilance Department namely Corporate Vigilance Cell,
 Departmental Proceeding Cell (DIPC), MIS Cell and Technical Cell (TC)
 deal with various facets of vigilance mechanism. The Vigilance
 Department submits its report to the Competent Authority and also to
 the Board ofDirectors.
 
 Your Company has made it mandatory for all the projects and stations to
 award the packages above Rs. 15 lac through e-procurement. As per the
 directive of DOPT/ MOP, the property returns of all the executives have
 been published on NTPC Website.
 
 16.2 Workshops and Vigilance Awareness Week Preventive Vigilance
 Workshops are being conducted every year to sensitize employees about
 DOs and DONTs in work areas and their role in preventing
 corruption.  During the Vigilance Awareness Week, a compendium of
 circulars and a Handbook on Preventive Vigilance and Case Studies were
 also issued.
 
 16.3 Implementation of Integrity Pact
 
 your Company is committed to have total transparency to its business
 processes and as a step in this direction; it signed a Memorandum of
 Understanding with Transparency International India in December, 2008.
 The Integrity Pact is being implemented forall contracts having value
 exceeding Rs. 10 crore. Two Independent External Monitors have been
 nominated by the Central Vigilance Commission for all contracts with
 value exceeding Rs. 100 crore.
 
 16.4 Implementation of Fraud Prevention Policy
 
 The Fraud Prevention Policy has been formulated and implemented in your
 Company since 2006. The cases referred by the nodal officers are being
 investigated immediately to avoid fraudulent behaviors as defined in
 the Fraud Prevention Policy.
 
 17.  HUMAN RESOURCE MANAGEMENT
 
 17.1 your Company takes pride in its highly motivated and competent
 human resource that has contributed its best to bring the Company to
 its present heights. The productivity of employees is demonstrated by
 increase in generation per employee and consistent reduction of Man-MW
 ratio year after year. The over-all Man-MW ratio for the year 2012-13
 excluding JV/subsidiary capacity is 0.67 and 0.62 including capacity of
 JV/ Subsidiary.  Generation per employee was 9.72 MUs during the year
 based on generation of NTPC stations.
 
 The total employee strength of your Company stood at 25,484 as on
 31.3.2013 against 25,511 as on 31.3.2012.
 
                                      Fiscal 2013    Fiscal 2012
 
 NTPC
 
 Number of employees                      23,865         24,011
 
 Subsidiaries & Joint Ventures
 
 Employees of NTPC                        1,6191          1,500
 in Subsidiaries & Joint Ventures
 
 Total employees                          25,484         25,511
 
 The attrition rate of the NTPC executives (including Executive Trainees
 and those posted in Subsidiaries and JVs) during the year was 1.46%.
 
 17.2 Employee Relations
 
 The Company takes pride in its greatest resource and asset, the
 employees. The human resource has been the backbone of the Company, in
 driving operational and financial performance. As a commitment towards
 the Companys core values, Employees Participation in Management
 was effectualized based on mutual respect, trust and a feeling of being
 a progressive partner in growth and success. Communication meetings
 with unions and associations, workshop on production and productivity,
 etc were conducted at projects, regions and corporate level during
 theyear.
 
 Both, employees and management complemented each others efforts in
 furthering the interest of the Company as well as its stakeholders,
 signifying and highlighting over-all harmony and cordial employee
 relations prevalent in the Company.
 
 17.3 Safety and Security
 
 NTPC recognizes and accepts its responsibility for establishing and
 maintaining a safe working environment for all its employees and
 associates. Occupational health and safety at workplace is one of the
 prime concerns of NTPC Management and utmost importance is given to
 provide safe working environment and inculcate safety awareness among
 the employees. The Company takes all such steps which are reasonably
 practicable to ensure best possible conditions of work. NTPC has a
 3-tier structure foroccupational health and safety management, namely
 at site at Regional Headquarters and at Corporate Centre.
 
 All our stations are certified with OHSAS-18001/IS-18001.  Regular
 plant inspection and review with Head of Project, internal safety
 audits by our own safety officers ofvarious sites and external safety
 audits by reputed organizations are carried out at each site every
 year. Recommendations of auditors are regularly reviewed and complied
 with.
 
 Cross Functional Safety task force for O&M and construction projects
 are functional at all site to monitor unsafeworking conditions at site
 and its rectification.
 
 Height permit and height check list are implemented to ensure safety of
 workers while working at height.  Adequate numbers of qualified safety
 officers are posted at all units as per statutory rules and provisions
 to look after safety of people and property.
 
 For strict compliance and enforcement of safety norms and practices,
 safety clauses are included in General Conditions of Contract.
 
 To mitigate on-site emergencies at all operating stations, effective
 engineering controls are provided to indicate and handle emergency
 situation. Detailed emergency plans have been developed and
 responsibilities are assigned to each concerned to handle emergency
 situations. Mock drills are conducted regularly to check healthiness of
 the system.
 
 Through our continuous efforts in safeguarding the employees, accidents
 have come down as compared to last year. Many of our plants have been
 awarded with prestigious safety awards by various Institutions and
 Bodies like Ministry of Labour & Employment, Govt, of India, National
 Safety Council and Institution of Engineers in recognition of
 implementing innovative safety procedures and practices.
 
 Concrete steps are being taken for upgrading surveillance systems at
 all of our projects/ stations by installing state-of- the-art security
 systems. Security and Coordination Group interact with MHA, IB and
 CISFas well as the State/ District level authorities to augment the
 security preparedness in our establishment/ power installations.
 
 17.4 Training and Development
 
 In line with its objective of being a learning organization, your
 Company has continuously promoted training and development of not only
 its own employees but also other professionals of the power sector. In
 this effort, your Company has endeavored to continuously upgrade the
 training infrastructure of Power Management Institute (PMI) at the
 corporate level as well as the Employee Development Centers at the
 sites. The training imparted is in tune with emerging needs in diverse
 areas like nuclear power, coal-mining, hydro-power, super-critical
 technology, renewable energy etc. and for this purpose some new
 programmers are included in the annual calendar every year. Apart from
 this, the usual programs include topics on management, power station
 operation & maintenance, project construction, erection and
 commissioning and information technology.
 
 Under the on-going scheme of strengthening the Industrial Training
 Institutes (ITIs) across the country, your Company has taken the
 initiative of adopting ITIs near its power generating stations and a
 total of 17 ITIs have been adopted under this scheme till 31.03.2012.
 This activity is being coordinated through PMI which is also
 facilitating the construction of nine new ITIs where new projects are
 coming up. Through this initiative, PMI has created 1,533 extra seats
 by way of starting new trades/ units in these ITIs.
 
 During 2012-13, your Company organized a number of training programmes
 in power and energy related areas.
 
 PMI conducted 397 training programmes during 2012-13 with a participant
 base of 8,938. The training mandays clocked were 47,935.
 
 PMI, for the first time, conducted an all-women training programme
 titled Lets Cherish Womanhood on the issues and challenges of
 women executives in managing home and office together.
 
 It also took the initiative of taking training programmes to the
 doorstep of the site employees.
 
 In collaboration with CC-IT group and CenPEEP department, Efficiency
 Overview and Perform Achieve and Trade (PAT) Legislation programme
 was launched through Web Conferencing.
 
 In order to promote holistic well-being of employees and their
 families, Pranic Healing was started through Holistic Wellness
 Foundation under the aegis of Snehal, a Healing and Creativity Centre
 at PMI.
 
 18.  SUSTAINABLE DEVELOPMENT
 
 Sustainability is an opportunity for business to improve its
 profitability, competitiveness and market share without compromising
 the ability of future generations to meet their own needs. The
 sustainability agenda of your Company addresses all aspects related to
 sustainable development and promote environmental management, social
 responsibility and economic performance (triple bottom line approach).
 
 Your Company is a member of TERI - Business Council for Sustainable
 Development - India (TERI-BCSD), the Indian partner of the WBCSD
 (World Business Council for Sustainable Development), Geneva, and also
 a member of United Nations Global Compact.
 
 SEBI, through its Circular CIR/CFD/DIL/8/2012 dated August 13, 2012,
 mandated the top 100 listed entities based on market capitalization at
 BSE and NSE, to include Business Responsibility Report as a part of the
 Annual Report describing the initiatives taken by the Company from
 Environmental, Social and Governance perspective.
 
 Accordingly, a Business Responsibility Report is attached as Annex-X
 and forms part of the Annual Report.
 
 Initiatives by the Company
 
 your Company has developed a Policy on Sustainable Development in
 accordance with which a sustainable development plan was prepared for
 the year 2012-13.  Major activities carried out under this plan
 included plantation of more than 2 lac saplings in and around NTPC
 plants, reduction of particulate matter emissions at two stations
 through flue gas conditioning, installation of flue gas conditioning
 system at one more station and installation of bio-methane plants to
 treat biodegradable waste and generate bio-gas for use in guest house /
 canteen kitchens. A total expenditure of Rs. 10.18 crore was incurred
 on these Sustainable Development Projects during the Financial
 year2012-13.
 
 During the year, your Company has published its Sustainability
 Report 2011-12 in line with the internationally accepted Global
 Reporting Initiative (GRI) Guidelines and the report has been duly
 assured by an independent external assurance provider as per
 international standard.
 
 In its endeavor to achieve the goals of Sustainable Development, your
 Company is addressing the issues through multi-pronged approach as per
 the details given below:
 
 18.1 Inclusive Growth - Initiatives for Social Growth
 
 18.1.1 Corporate Social Responsibility:
 
 Your Company has always discharged its social responsibility as a part
 of its Corporate Governance philosophy. It follows the global practice
 of addressing CSR issues in an integrated multi stake-holder approach
 covering the environmental and social aspects.
 
 With a view to address the domains of socio-economic issues at national
 level, it has revised its Corporate Social Responsibility - Community
 Development (CD) Policy in line with the Guidelines issued by
 Department of Public Enterprises, Govt, of India.
 
 your Company, being a member of Global Compact Network, India, confirms
 its involvement in various CSR activities in line with 10 Global
 Compact principles and shares its experience with the representatives
 of the world through Communication on Progress. It submits its
 Communication on Progress (COP) to UN Global Compact on regular basis.
 A report on progress made in this area is enclosed at Annex- VIII to
 this Report.
 
 Expenditure incurred towards CSR Activities:
 
 A total expenditure of Rs. 69.24 crore was incurred towards Corporate
 Social Responsibility expenses during the Financial year 2012-13, which
 was 0.75% (against MOU target of 0.5%) of the net profit after tax of
 the previous year.
 
 In line with revised guidelines on CSR and Sustainability issued by
 DPE, your Company has enhanced allocation for CSR and Sustainable
 Development activities to 1% of net profit after tax of previous year
 with effect from financial year 2013-14.
 
 Awards:
 
 your Company received FICCI Appreciation Plaque for 2011-12, Golden
 Peacock Award for CSR, 2012 and Greentech Award for CSR 2012.
 
 18.1.2 NTPC Foundation
 
 NTPC Foundation is engaged in serving and empowering the physically
 challenged and economically weaker sections of the society.
 
 Initiatives undertaken by the Company are covered under Annex-VII to
 this Report.
 
 18.1.3 Distributed Generation Power Projects
 
 your Company has signed MoU with Swiss Agency for Development and
 Cooperation for planning and implementing Renewable Energy and
 Distribution Generation projects. The main focus is on technologies
 like bio-mass gasification including two stage gasifier, small hydro
 and solar energy and sustainability of DG projects.
 
 18.1.4 Rehabilitation & Resettlement (R&R)
 
 your Company is committed to help the people affected by its projects
 and has been making all its efforts to improve the socio-economic
 status of Project Affected Persons (PAPs). In order to meet its social
 objectives, your Company is focusing on effective R&R of PAPs and
 undertaking community development activities in and around the
 projects.
 
 Land availability for bulk tendered projects for which award was placed
 during the year was ensured through proactive redressal of R&R issues.
 
 R&R activities were implemented at new Greenfield/ brownfield projects
 after finalization in consultation and participation of the
 stakeholders at Kudgi, Lara, Tanda, Gadarwara, Khargone, Barethi, Dadri
 and Coal Mining projects. At other thermal, hydro and coal mining
 projects, like Barh, Koldam, Korba, Vindhyachal, Mouda, Solapur,
 Bongaigaon, Tapovan-Vishnugad, Pakri-Barwadih, Chatti- Bariatu,
 Kerandari and Talipalli projects, R&R activities continued throughout
 theyear.
 
 Socio-economic Survey was completed for Darlipalli, Barethi, Lara,
 Gadarwara, Khargone, Chatti-Bariatu (South) and Dhuvaran Projects and
 is in progress at Bilhaur Projects.
 
 In the area of health, your Company is providing financial assistance
 for renovation and refurbishment of Sundargarh District Hospital
 in Odisha. Capacity building/ skill upgradation and training activities
 including those in construction trades were facilitated and commitment
 for the part contributions towards construction of Engineering Colleges
 at Raipur and Raigarh, Chattisgarh was made during the year.
 
 18.2 Environment Management - Initiatives for preserving Environment
 
 Vision Statement on Environment Management:
 
 Going Higher on Generation, lowering GHG intensity
 
 your Company is pursuing the objective of environment protection as one
 of its prime responsibilities and focuses its efforts to mitigate the
 impact of its operation on surrounding environment. Around 12-15% of
 the project cost is spent on various environment protection equipments.
 To meet the environmental challenges of 21st century and beyond, the
 Company has adopted sound environment management practices and advanced
 environment protection system to minimize impact of power generation on
 environment.
 
 your Company has adopted advanced and high efficiency technologies such
 as super critical boilers for the upcoming green field projects. The
 Company is also designing its up-coming plants to use beneficiated coal
 and imported low ash coal. The above measures are aimed not only to
 achieve reduction in pollution and minimize use of precious natural
 resources but also to lead to reduction of C02 emissions per unit of
 generation and thereby deal with the global warming.
 
 18.2.1 Control of Air Emissions: High efficiency Electro-static
 Precipitators (ESPs) with efficiency of the order of 99.9% and above,
 with advanced control systems have been provided in all coal based
 stations to keep Suspended Particulate Matter (SPM) below permissible
 limits. All up-coming new plants are being provided with ESPs designed
 in such a manner that would cater to the anticipated future norms.
 Performance enhancement of ESPs operating over the years is being
 carried out by augmentation of ESPs fields, retrofit of advanced ESP
 controllers and adoption of sound O&M practices. Flue Gas Conditioning
 system has also been provided at our old units which are helping in
 reduction of SPM emissions below statutory limits. Also, massive R&M
 program is being undertaken to upgrade air pollution equipments to
 reduce SPM emissions.
 
 NOx control in plants is achieved by controlling its production by
 adopting best combustion practices.  Since tall stacks are provided in
 coal stations, SOx and NOx emitted through stacks is widely dispersed
 and diluted. In gas based stations, NOx control systems (hybrid burners
 or wet DeNOx) have been provided for good combustion practices.
 
 Fugitive emission from ash pond is controlled by maintaining water
 cover, tree plantation on abandoned ash ponds, water spray, earth cover
 in inactive lagoons.  Providing dust suppression and extraction system
 in CHP area has further added to reduction in fugitive dust in the
 vicinity of power stations.
 
 18.2.2 Control of water pollution and promotion of water conservation:
 Various water conservation measures have been taken up to reduce water
 consumption in power generation by using 3Rs (Reduce, Recycle & Reuse)
 as guiding principle.
 
 Provision of advanced treatment facilities such as Liquid Waste
 Treatment Plants (LWTP), Recycling Systems for Ash Pond Effluent called
 Ash Water Recirculation System (AWRS) and closed cycle condenser
 cooling water systems with higher Cycle of Concentration (COC), rain
 water harvesting wherever possible and reuse of treated sewage effluent
 for horticulture purposes are some ofthe measures implemented in most
 of the stations.
 
 18.2.3 Ash Management: Ash dykes in the stations have been engineered
 to ensure that all safety and environmental issues are addressed at
 design stage itself.
 
 Multi-lagoon ash ponds with provision of over-flow lagoons and ash pipe
 garlanding arrangement for change over of ash slurry feed points have
 been provided for effective settlement of ash particles.
 
 Water sprinklers have been provided in the ash pond areas for spraying
 water in dried up portion of lagoons for control of fugitive dust.
 Efforts are made to maximize utilization of ash through use of Dry Ash
 Extraction System (DAES).
 
 Unutilized ash is sent to ash pond by making ash slurry.  The decanted
 water in Ash Pond is recycled back with the help of Ash Water
 Recirculation System (AWRS) for making ash slurry again, leading to
 reduction in water consumption.
 
 18.2.4 Automation of environment measurement system:
 
 67 continuous ambient air quality monitoring stations (AAQMS) have been
 installed to capture the real time data and access thereof viz., PM 10,
 PM 2.5, SOx, NOx and access has been provided to Central Pollution
 Control Board. Additional ozone analyzers for ambient air are also
 being provided at the stations. Continuous Emission Monitoring Systems
 (CEMS) to monitor SOx, NOx and C02 in all its units on real time basis
 are also planned for installation in near future
 
 18.2.5 Environmental Studies: Your Company has taken a number of
 studies for better environment protection and to develop strong
 scientific database.
 
 18.2.6 Tree Plantation: Your Company has planted more than 19 million
 trees till date in and around its projects as a measure of massive
 afforestation.
 
 The afforestation has not only contributed to the aesthetics but
 also helped in carbon sequestration by serving as a sink for C02
 released from the stations and thereby protecting the quality of
 ecology and environment in and around the projects.
 
 18.2.7 ISO 14001 & OHSAS 18001 Certification: NTPCs stations have
 been certified with ISO 14001 and OHSAS 18001 by reputed National and
 International certifying agencies as a result ofsound systems and
 practices.
 
 18.3 Clean Development Mechanism (CDM)
 
 Your Company is undertaking climate change issues proactively.
 
 The methodology for super critical technology prepared by NTPC viz.
 consolidated base line and monitoring methodology for new grid
 connected fossil fuel fired power plants using less GHG intensive
 technology has been approved by United Nations Frame Work
 Convention on Climate Change (UNFCCC) under Approved Consolidated
 Methodology13(ACM0013).
 
 Two of its solar projects namely 5MW each solar PV project at Dadri and
 Port Blair, Andaman & Nicobar had already been submitted to UNFCCC for
 CDM registration. Another two projects namely 5MW solar PV project at
 Faridabad and 8MW Small Hydro Power Project at Singrauli are in
 advanced stage of validation for submission to UNFCCC for CDM
 registration.
 
 Further, Tapovan Vishnughad HEPP (4X130 MW), North Karanpura STPP
 (3X660 MW), 15 MW Solar (Thermal) project at Anta, energy efficiency
 measures at Singrauli STPP and energy efficiency measures at Dadri have
 already obtained Host Country Approval from National CDM Authority.
 
 18.4 Ash Utilisation
 
 During the year 2012-13, 56.29 million tonnes of ash was generated and
 30.97 million tonnes of ash had been utilized for various productive
 purposes. This was 55.02% of the total ash generated.
 
 Important areas of ash utilization are - cement & asbestos industry,
 ready mix concrete plants (RMC), road embankment, mine filling, ash
 dyke raising & land development. 10.74 million tonnes of ash has been
 issued to cement, RMC and other industries in the financial year
 2012-13.
 
 Pond ash from all stations of NTPC is being issued free of cost to all
 users. The funds collected from sale of ash is being maintained in a
 separate account by NTPC Vidyut Vyapar Nigam Limited, a wholly-owned
 subsidiary company of NTPC and the same is being utilized for
 development of infrastructure facilities, promotion and facilitation
 activities to enhance ash utilization.
 
 The quantity of ash produced, ash utilized and percentage of such
 utilization during 2012-13 from NTPC Stations is at Annex-IX.
 
 18.5 CenPEEP - towards enhancing efficiency and protecting Environment
 Center for Power Efficiency and Environmental Protection (CenPEEP),
 was set up to take initiatives to address climate change issues. It is
 a symbol of NTPCs voluntary proactive approach towards Greenhouse
 Gas (GHG) reduction.  The Centre has been entrusted with some of the
 strategic initiatives such as improvement in efficiency and
 reliability.
 
 Thrust has been given to efficiency improvement through customized
 Energy Efficiency Management System (EEMS) and reliability through
 Knowledge Based Maintenance. The activities include use of advanced
 analytical tools for efficiency gap analysis, combustion optimization,
 improvement in performance of condenser, cooling tower, coal mills and
 air-preheater, maximization of condition based maintenance through
 systematic Predictive Maintenance Program, reliability improvement
 strategies by failure mode analysis through Reliability Centered
 Maintenance (RCM) as a program.
 
 Joint project has also been taken up with NETRA for modification of
 flue gas duct internals based on computational fluid dynamic (CFD)
 analysis.
 
 Perform, Achieve&Trade(PAT) Schemeof Government of India under
 Prime Ministers National Mission on Enhanced Energy Efficiency
 (NMEEE) is being implemented in NTPC with CenPEEP as the coordinator.
 All 22 stations of NTPC are Designated Consumers in this program.
 
 The cooperation with USAID was extended under Indo- US bilateral
 program Partnership to Advance Clean Energy - Deployment (PACE-D).
 Under this program, study on development of best practices manual for
 super critical units has been taken up with support of US experts.
 Assistance is also provided to two State utilities from Haryana and
 Maharashtra for efficiency improvement under this program. The Heat
 Rate Improvement Guidelines for Indian Utilities which are prepared
 by CenPEEP, have been helpful in the program.
 
 CenPEEP has estimated cumulative C02 emission avoided in NTPC since
 theyear 1996 as 34.8 million tones.
 
 CenPEEP had been conferred with The Times of India Earth Care Award
 2012 in recognition of its efforts and achievements for GHG reduction
 in utilities, contributing to combat climate changes across the SAARC
 countries.
 
 18.6.1 RURAL ELECTRIFICATION
 
 NTPC, through its wholly owned subsidiary NESCL, is carrying out the
 implementation of rural electrification work in 5 States namely Madhya
 Pradesh, Chhattisgarh, Odisha, Jharkhand and West Bengal under
 Government of India, flagship program, Rajiv Gandhi Grameen
 Vidyutikaran Yojana (RGGW). NESCL has been entrusted with
 electrification of total 30 projects in 29 districts in above States
 with a total scope of 14,729 Un-electrified/ De-electrified (UE/DE)
 villages, 20,555 partially electrified (PE) villages and electricity
 connection to 26.42 lakhs below poverty line (BPL) households.
 
 Physical work of 15 projects has been completed till 31st March 2013
 and balance projects are expected to be completed in FY 2013-14.
 
 In the FY 2012-13, 22 un-electrified/de-electrified and 2,820 partially
 electrified villages have been electrified and electricity connections
 provided to 25,204 BPL households during the F/12-13.
 
 Cumulatively, electrification of 14,719 un-electrified /de- electrified
 villages and 17,679 partially electrified villages has been completed
 and electricity connections has been provided to 26.08 lakhs BPL
 households by Mar2013.
 
 18.6.2 5 KM Scheme around NTPC power plants
 
 MOP, Government of India notified in Apr2010 a scheme for provision
 of supply of electricity in 5 Km area around the Central Power Plants.
 The scheme covers the existing and upcoming Power Plants of CPSUs.
 Under the scheme, total 29 projects were initially identified for
 implementation around NTPC power plants. NTPC has awarded eight
 projects where work is in progress.  Subsequently, MoP has withdrawn
 the above scheme for future projects in March 2013. The ongoing
 projects are expected to be completed during the financial year
 2013-14.
 
 19.  IMPLEMENTATION OF OFFICIAL LANGUAGE
 
 Your Company has made vigorous efforts for propagation and effective
 implementation of the Official Language Policy of the Government of
 India. Several Hindi workshops, meetings, conferences and competitions
 were conducted at projects, regional offices and corporate centre
 during the year, in which renowned Hindi Scholars inspired the
 participants to use Hindi in day-to-day official works.
 
 The progress and usage of Rajbhasha Hindi was inspected in the stations
 and proper suggestions for compliance were given to the Heads of the
 Offices.  The Sub-committee of Parliament on Official Language
 appreciated the efforts for Rajbhasha implementation in our projects.
 Our half-yearly Hindi Magazine Vidyut Swar also received Rajbhasha
 Award from Ministry of Home Affairs, Government of India.
 
 All office orders, formats and circulars were issued in Hindi as well.
 Important advertisements and house journals were released in bilingual
 form- in Hindi and in English. Your Companys website also has a
 facility of operating in bilingual form- in Hindi aswell as in English.
 
 20.  NETRA - R&D Mission in Power Sector
 
 NTPC Energy Technology Research Alliance (NETRA), the research &
 development wing of NTPC focuses on areas of efficiency & availability
 improvement;cost reduction,- renewable and alternative energy
 source;climate change & environment protection,-and providing
 scientific support to utilities.
 
 Research Advisory Council (RAC) of NETRA comprising of eminent
 scientists and experts from India and abroad is in place to steer
 high-end research. Scientific Advisory Council (SAC) with Regional
 Executive Directors as its members provides directions for improving
 plant performance & reducing cost of generation. The meetings for both
 these Advisory Councils were held periodically where members
 deliberated on various project activities and gave guidelines for
 implementation of suggestions.
 
 In order to provide maximum possible benefit to the stations, projects
 like Artificial Intelligence based plant performance advisory system,
 expert system for real time monitorins of steam cycle chemistry,
 computational fluid dynamics (CFD) modeling based plant improvement for
 increasing efficiency and reducing auxiliary power consumption have
 been implemented at stations.  Many products & processes developed by
 NETRA have been tested successfully at stations like robotic inspection
 devices,-PDC-RVM based expert system for transformer condition
 monitoring, C02 utilization through mineralization of fly ash etc.
 
 One Patent (01) has been granted to NETRA and another Twenty one (21)
 patent applications have been filed and these are in advanced stage of
 processing. NETRA continued to provide scientific support to all NTPC
 stations as well as many other utilities stations to improve their
 performance.
 
 Some state-of-the art facilities for condition monitoring and
 diagnostic equipments like Scanning Electron Microscope with EDAX,
 Sixteen Channel Vibration Analyser, Video image scope system with
 dimensional measurement facility, etc have been inducted.
 
 The Phase-ll infrastructure is being created for new laboratories and
 facilities like pilot plant bay, 150 KWp Solar PV rooftop systems and
 an auditorium with seating capacityof400 persons.
 
 NETRA is actively involved in many National activities related to R&D
 such as developing DPE guidelines on R&D, contribution to Sectoral
 Innovation Council for Power.  NETRA has also taken research Projects
 under National Clean Energy Fund a) Solar Thermal Hybrid with
 Fossil Fired Power Plant b) Flue Gas based Aqua Ammonia Power Cycle.
 
 NETRA has also organized Round Table Meeting on carbon capture &
 storage (CCS) for formulating the Policy under the aegis of MoP.
 
 NETRA has undertaken collaborative projects with different institutes
 like CPRI, Bangalore in the area of coal combustion characterization,
 non destructive testing, fly ash utilization and with Jadavpur
 University for Development of polarisation depolarisation current
 analysis - Recovery voltage measurement (PDC-RVM) system etc.
 
 NETRA laboratories have been reaccredited as per ISO 17025:2005. NETRA
 is also certified by Central Boiler Board for RLA agencies.
 
 21.  RIGHT TO INFORMATION
 
 Your Company has implemented Right to Information Act, 2005 in order to
 provide information to citizens and to maintain accountability and
 transparency. The Company has put RTI manual on website for access to
 all citizens of India and has designated a Central Public Information
 Officer (CPIO), an Appellate Authority and APIOs at all sites and
 offices of NTPC.
 
 During 2012-13, 1,181 applications were received underthe RTI Act, out
 ofwhich 1,158 applicationswere replied to.
 
 Five workshops on RTI Act have been conducted at Corporate Centre,
 Regional Headquarters and sites to share and deliberate on latest
 notifications, amendments and other issues for smooth implementation.
 This includes an interactive session with the delegates from the
 Institute of Secretarial Training & Management, DoPT to share
 experience on implementation of RTI Act in the Company.
 
 22.  USING INFORMATION AND COMMUNICATION TECHNOLOGY FOR PRODUCTIVITY
 ENHANCEMENT
 
 NTPC has implemented an Enterprise Resource Planning (ERP) package
 covering maximum possible processes across the organization including
 subsidiaries. In addition to the core business processes and Employee
 Self Service (ESS) functionality, the ERP solution also includes
 e-procurement, Knowledge Management, Business Intelligence, Document
 Management, Workflow etc. The ERP system is fully managed through
 in-house expertise from process groups and technical groups. Parallely,
 in- house solutions have been developed to take care of the non-ERP
 areas.
 
 ERP has its main data center at Noida. There is a disaster recovery
 center at Hyderabad as a full back up for real time changeover in case
 ofany emergency.
 
 Video conferencing (VC) facility is widely used for deliberations among
 locations. The facility has also been augmented to hold VC in secured
 manner, with external agencies also.
 
 In order to improve upon efficiency and bringing transparency in
 procurement process in NTPC, e-procurement process using SRM module of
 ERP is widely used.
 
 Athird party audit and review of ERP solution implemented at NTPC has
 been carried out that included review of business process controls,
 configuration settings, access controls and review of roles and
 authorization. The critical remediation points suggested by the
 external auditor agency have been implemented.
 
 Various other applications have been developed to take care of RTI,
 Parliament Questions Management, legal system, transit camp booking
 requirement etc.
 
 NTPC tender website www.ntpctender.com is being regularly used for
 publishing all open tenders on the Internet. Additional Website
 www.ntpcexemployees.  co.in for facilitating superannuated employees
 has also been hosted.
 
 The Information Technology department at Corporate Center Noida has
 been awarded certificate in recognition of the organizations Quality
 Management System which complies with ISO 9001:2008 for Providing IT
 Enabled Services.
 
 23.  NTPC GROUP: SUBSIDIARIES AND JOINT VENTURES
 
 Your Company has currently 5 subsidiary Companies and 21 joint venture
 Companies for undertaking specific business activities.
 
 The names of Subsidiaries and Joint Venture Companies and the
 percentage of your Companys shareholding in these Companies as on
 31.03.2013are as follows:
 
 The performance of these Companies as well as the consolidated
 financial statements are briefly discussed in the Management Discussion
 & Analysis section. The financial statements of subsidiary companies
 along with the respective Directors Report are placed elsewhere in
 this Annual Report.
 
 24.  INFORMATION AS PER COMPANIES (PARTICULARS OF EMPLOYEES) RULES,
 1975
 
 Ministry of Corporate Affairs, through Notification G.S.R.  289(E)
 dated 31st March 2011 has amended the Companies (Particulars of
 Employees) Rules, 1975 by providing that the information required under
 Section 217(2A) of the Companies Act, 1956 read with the Companies
 (Particulars of Employees) Rules, 1975 shall be required to be provided
 for those employees whose remuneration is more than Rs. 60 lac per
 financial year, if employed for whole of the year or more than Rs. 5
 lac per month, if employed for part of the year. The said Notification
 further provides that in case of Government Companies such particulars
 are not required to be included in the Boards Report.
 
 As your Company is a Government Company, such particulars have not been
 included as part of the Directors Report. Any member interested in
 obtaining such particulars may write to the Company Secretary at the
 Registered Office of the Company or download them from the website at
 www.  ntpc.co.in. Such particulars shall also be made available to the
 shareholders on a specific request made by them during the course of
 Annual General Meeting to be held on 17.09.2013.
 
 25.  STATUTORY AUDITORS
 
 The Statutory Auditors of your Company are appointed by the Comptroller
 & Auditor General of India. M/s O.P. Bagla & Co., K.K. Soni & Co., PKF
 Sridhar & Santhanam, V. Sankar Aiyar & Co., Ramesh C. Agrawal & Co. and
 A.R. & Co. were appointed as Joint Statutory Auditors for the financial
 year 2012-13.
 
 26.  MANAGEMENT COMMENTS ON STATUTORY AUDITORS1 REPORT
 
 The Statutory Auditors of the Company have given an unqualified report
 on the accounts of the Company for the financial year 2012-13. However,
 they have drawn attention towards Note-33 to the financial statements
 in respect of the accounting of fuel on GCV based pricing system.
 
 The issue has been adequately explained in Note 33 referred to by the
 Auditors.
 
 27.  REVIEW OF ACCOUNTS BY COMPTROLLER & AUDITOR GENERAL OF INDIA
 
 You would be pleased to know that for the fourth year in a row your
 organization has received NIL Comments on the Financial Statements
 for the year from the Comptroller & Auditor General of India (C&AG).
 
 As advised by the Office of the C&AG, the comments of C&AG for the year
 2012-13 are being placed with the report of Statutory Auditors of your
 Company elsewhere in this Annual Report.
 
 28.  COST AUDIT
 
 As prescribed under the Cost Accounting Records (Electricity Industry)
 Rules, 2001 applicable for financial years 2011-12 and 2012-13, the
 Cost Accounting records are being maintained by all stations of the
 Company. The particulars of Cost Auditors as required under Section
 233(B) of the Companies Act, 1956 read with General Circular No.
 15/2011 dated 11.04.2011 issued by Ministry of Corporate Affairs are
 given below:
 
 The firms of Cost Accountants appointed for the financial year 2011-12
 are (i) M/s Dhananjay V. Joshi & Associates, Pune, Maharashtra, (ii)
 M/s Jugal K. Puri & Associates, Gurgaon, Haryana, (iii) M/s Mandal
 Mukherjee Datta & Associates, Kolkata, West Bengal, (iv) M/s S.C.
 Mohanty & Associates, Bhubhaneshwer, Orissa, (v) M/s V.P. Gupta & Co.,
 Noida, Uttar Pradesh and (vi) M/s Chandra Wadhwa & Co., Daryasanj,
 Delhi.
 
 The firms of Cost Accountants appointed for the financial year 2012-13
 are (i) M/s Dhananjay V. Joshi & Associates, Pune, Maharashtra, (ii)
 M/s Jugal K. Puri & Associates, Gursaon, Haryana, (iii) M/s Mandal
 Mukherjee Datta & Associates, Kolkata, West Bengal, (iv) M/s S.C.
 Mohanty & Associates, Bhubhaneshwer, Orissa, (v) M/s V.P. Gupta & Co.,
 Noida, Uttar Pradesh and (vi) M/s Chandra Wadhwa & Co., Daryasanj,
 Delhi.
 
 The due date for filing consolidated Cost Audit Report in XBRL format
 for the financial year ended March 31,2012 was September 27, 2012 which
 was subsequently extended upto 28th February 2013 through General
 Circular No. 2/2013 dated 31.01.2013 issued by Ministry of Corporate
 Affairs and the consolidated Cost Audit Report for your Company was
 filed with the Central Government on15.01.2013.
 
 The due date for filing consolidated Cost Audit Report for the
 financial year ended March 31, 2013 is September 27, 2013 and the
 consolidated Cost Audit Report as prescribed for the financial year
 2012-13 shall be filed within the prescribed time period.
 
 29.  BOARD OF DIRECTORS
 
 Dr. Alwyn Didar Singh has joined as Non-Official Part-time Director
 ofthe Companywith effect from August 23, 2012.  Dr. M. Govinda Rao has
 ceased to be the Non-Official Part- time Directorwith effect from
 February4, 2013.
 
 Shri U.P. Pani has taken over as Director (Human Resources) with effect
 from March 1, 2013. Shri S.P. Singh has ceased to be the Director
 (Human Resources) of your Company with effect from February 28, 2013 on
 attaining the age of superannuation.
 
 Shri Rakesh Jain has ceased to the Director of your Company w.e.f. July
 9,2013 on ceasing to be the official of Ministry of Power.
 
 Shri Prashant Mehta has joined as Non-Official Part-time Director ofthe
 Companywith effect from July 30, 2013.
 
 The Board wishes to place on record its deep appreciation for the
 valuable services rendered by Dr. M. Govinda Rao, Shri S.P. Singh and
 Shri Rakesh Jain during their association with the Company.
 
 In accordance with the provisions of Article 41(iii) of the Articles of
 Association of the Company four directors - Shri A.K. Singhal, Shri
 N.N. Misra, Shri S.B. Ghosh Dastidar and Shri R.S. Sahoo shall retire
 by rotation at the Annual General Meeting ofyour Company and, being
 eligible, offer themselves for re-appointment.
 
 30.  DIRECTORS RESPONSIBILITY STATEMENT
 
 As required under Section 217(2AA) of the Companies Act, 1956, your
 Directors confirm that:
 
 1.  in the preparation ofthe annual accounts, the applicable accounting
 standards had been followed along with proper explanation relating to
 material departures,-
 
 2.  the Directors had selected such accounting policies and applied
 them consistently and made judgments and estimates that are reasonable
 and prudent so as to give a true and fair view of the state of affairs
 of the company at the end of the financial year 2012-13 and of the
 profit of the company for that period;
 
 3.  the Directors had taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Companies Act, 1956 for safeguarding the assets ofthe
 company and for preventing and detecting fraud and other
 irregularities,- and
 
 4.  the Directors had prepared the Annual Accounts on a going concern
 basis.
 
 31.  INFORMATION PURSUANT TO STATUTORY AND OTHER REQUIREMENTS
 
 Information required to be furnished as per the Companies Act, 1956,
 Listing Agreement with Stock Exchanges, Government guidelines etc. is
 annexed to this report as below:
 
 Particulars                                          Annexure
 
 Management Discussion &Analysis                        I
 
 Report on Corporate Governance                         II
 
 Information on conservation of energy,                 III
 technology absorption and foreign exchange
 earnings and outgo
 
 Statement pursuant to Section 212 of the               IV 
 Companies Act, 1956 relating to subsidiary
 companies
 
 Statistical data of the grievance cases                V
 
 Statistical information on persons belonging to        VI
 Scheduled Caste / Scheduled Tribe categories
 
 Information on Physically Challenged persons           VII
 
 UNGC - Communications on progress                      VIII
 
 ProiectWiseAsh Utilisation                             IX
 
 Business Responsibility Report for the year            X 
 2012-13
 
 32.  ACKNOWLEDGEMENT
 
 Your Directors acknowledge with deep sense of appreciation, the
 co-operation received from the Government of India, particularly the
 Prime Ministers Office, Ministry of Power, Ministry of Finance,
 Ministry of Environment & Forests, Ministry of Coal, Ministry of
 Petroleum & Natural Gas, Ministry of Railways, the Planning Commission,
 Department of Public Enterprises, Central Electricity Authority,
 Central Electricity Regulatory Commission, Appellate Tribunal for
 Electricity, State Governments, Regional Power Committees, State
 Electricity Boards and Office ofthe Attorney General of India.  Your
 Directors also convey their gratitude to the shareholders, various
 international and Indian Banks and Financial Institutions for the
 confidence reposed by them in the Company.
 
 The Board also appreciates the contribution of contractors, vendors and
 consultants in the implementation of various projects of the Company.
 
 We also acknowledge the constructive suggestions received from
 Government and Statutory Auditors.
 
 We wish to place on record our appreciation for the untiring efforts
 and contributions made by the employees at all levels to ensure that
 the Company continues to grow and excel.
 
                         For and on behalf of the Board of Directors 
 
 Place: New Delhi                            (Dr. Arup Roy Choudhury)
 
 Date: 2nd August 2013                  Chairman & Managing Director
Source : Dion Global Solutions Limited
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