NTPC Directors Report, NTPC Reports by Directors


BSE: 532555|NSE: NTPC|ISIN: INE733E01010|SECTOR: Power - Generation & Distribution
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Directors Report Year End : Mar '15    Mar 14
Dear Members,
 The Directors are pleased to present the 39th Annual Report on the
 business and operations of the Company along with audited financial
 statements for the year ended March 31, 2015.
 Financial Year 2014-15 has been yet another year of achievements for
 your Company. With the addition of 1,290 MW capacity (including 195 MW
 through Subsidiary Company) during the year, total installed capacity
 of your Company (including subsidiaries & JVs) as on 31.03.2015 was
 44,398 MW.
 Further, with the commissioning of two hydro units of 200 MW each on
 10.04.2015 and 12.06.2015 respectively and a 250 MW thermal unit on
 22.06.2015, the total installed capacity of NTPC Group has crossed
 45,000 MW.
 Major highlights for the year 2014-15 are:
 - Made foray into hydro generation with the commissioning of two units
 of 200 MW each.
 - Commissioned solar plants of 35 MW capacity.
 - Declared 1,195 MW (including 500 MW through JV Company) on commercial
 - Average PLF of 80.23% as against all India PLF of 64.46% with two
 NTPC stations recording more than 90% PLF.
 - Excellent MOU rating by Government of India for the year 2013-14.
 - Reallocation of Coal blocks namely, Kerandari, Talaipalli, Dulanga,
 Chatti-Bariatu, Chatti- Bariatu (South). Now, Banaiand Bhalumuda (both
 exclusively) and Kundanali-Luburi Qointly with J&K State Power
 Development Company Limited) have been allocated to your company.
 - Capital expenditure (CAPEX) for the year 2014- 15 was Rs.23,239.25
 crore as against the target of Rs.22,400 crore.
 - 100% realization of current bills from customers.
 - Recorded total income of Rs.75,362.37 crore as compared to
 Rs.74,664.61 crore in the FY 2013-14.  Net Profit after Tax (PAT) of
 Rs.10,290.86 crore.
 - Company rewarded its shareholders by issue of one non-convertible,
 secured, redeemable bonus debenture of face value of Rs.12.50 each for
 every one equity share of Rs.10 each, aggregating to Rs.10,306.83
 - Dividend of Rs.2.50 per share (total Rs.2,061.38 crore) comprising
 interim dividend of Rs.0.75 per equity share paid in February 2015 and
 recommendation of final dividend of Rs.1.75 per equity share for the
 year 2014-15, subject to approval of the shareholders.
 - Company has been adjudged as the ''Best Company to Work for 2015'' in a
 study conducted by Economic Times in Energy, Oil and Gas Industry
 You will appreciate the fact that the company recorded growth and
 excellent performance despite the challenge before the sector.
 Revenue                             2014-15            2013-14
                           Rs.Crore    US $ Mn*   Rs. Crore    US $ Mn*
 Net Revenue from 
 Operations (including 
 Energy Sales,            73,246.05   11,591.40    72,018.93   11,397.20 
 Consultancy, Energy 
 consumed internally)
 Other Income              2,116.32      334.91     2,645.68      418.69
 Total Revenue            75,362.37   11,926.31    74,664.61   11,815.89
 Fuel                     48,845.19    7,729.89    45,829.71    7,252.69
 Employee Benefits 
 Expense                   3,669.78      580.75     3,824.78      605.28
 Finance Costs             2,743.62      434.19     2,406.59      380.85
 Depreciation and 
 amortization expense      4,911.65      777.28     4,142.19      655.51
 administration & 
 other expenses            4,979.31      787.99     4,543.85      719.08
 Prior period items (net)   (333.83)     (52.83)       12.84        2.03
 Total Expenses           64,815.72   10,257.27    60,759.96    9,615.44
 Profit before Tax        10,546.65    1,669.04    13,904.65    2,200.45
 Tax Expense                 255.79       40.48     2,929.91      463.67
 Profit for the year      10,290.86    1,628.56    10,974.74    1,736.78
 Appropriations:                     2014-15            2013-14
                           Rs. Crore   US $ Mn*   Rs. Crore    US $ Mn*
 Transfer to bond/
 debenture redemption 
 reserve                   1,156.19      182.97       576.08       91.17
 Transfer to general 
 reserve                   7,000.00    1,107.77     5,000.00      791.26
 Transfer to CSR reserve      78.30       12.39            -           -
 Transfer to capital 
 reserve                       0.12        0.02         4.98        0.79
 Interim dividend            618.42       97.87     3,298.19      521.95
 Proposed dividend         1,442.96      228.35     1,442.96      228.35
 Tax on dividend             417.40       66.05       804.74      127.35
 *1US$=Rs.63.19 as on March 31, 2015
 During the Financial Year 2014-15, your Company rewarded its
 shareholders by issue of one secured, non-cumulative, non-convertible,
 redeemable, taxable, fully paid-up debenture of face value of Rs.12.50
 each by way of bonus for every one equity share of Rs.10 each,
 aggregating to Rs.10,306.83 crore.
 These debentures carry a fixed coupon rate of 8.49% p.a. and will be
 redeemed in three instalments of Rs.2.50, Rs.5.00 and Rs.5.00 per
 debenture at the end of 8th, 9th and 10th year respectively.
 3.1 Interim and Final Dividend:
 Your company paid interim dividend of Rs.0.75 per equity share in
 February 2015 and Directors of your Company have recommended a final
 dividend of Rs.1.75 per equity share for the year 2014-15. With this
 the total dividend for the year is Rs.2.50 per equity share of Rs.10/-
 each. This is in addition to the Bonus Debenture of Rs.12.50 each
 issued by the Company in March 2015. In the year 2013-14, the total
 dividend paid was Rs.5.75 per equity share of Rs.10/- each.  The
 dividend payout is 20.03% and the total dividend payout including
 dividend tax is 24.09% of profit after tax. The final dividend shall be
 paid after your approval at the Annual General Meeting.
 The dividend has been recommended in accordance with your Company''s
 policy of balancing dividend pay-out with the requirement of deployment
 of internal accruals for its growth plans.
 During the year, the power stations of your Company generated 241.26
 BUs (260.58 BUs including JVs & Subsidiaries) of electricity (including
 solar and hydro power) which was 23.12% (24.97% including generation by
 JVs) of the total power generated in India (without Bhutan import)
 registering an increase of 3.42% (3.93% including JVs & Subsidiaries)
 over the previous years'' generation of 233.28 BUs.  The total
 generation contributed by coal stations is 229.55 BUs during the year
 against generation of 220.70 BUs last year registering a growth of
 4.01%.  Generation from coal based units could have been still higher
 but due to less generation schedule there was opportunity loss of 23.11
 BUs.  The coal based stations operated at average Plant Load Factor
 (PLF) of 80.23% (All India PLF 64.46%) and average Availability Factor
 of 88.27% on bus bar during the year. During the year, 2 coal based
 stations out of 17 achieved more than 90% PLF.  The gas stations having
 a capacity of 4,017 MW achieved annual generation of 11.588 BUs at a
 PLF of 32.93% as against 12.569 BUs last year mainly due to less
 generation schedule which accounted for an opportunity loss of 20.798
 BUs. The average declared capacity of gas based stations for the year
 was 92.18% as compared to 95.24% during previous year.  
 5.1 Billing and Realisation
 Your Company has realized 100% payment of current bills raised for
 energy supplied in 2014-15, thus achieving this feat for the 12th
 consecutive year.
 All the customers were making their payments within 60 days of billing
 and had established LCs at 105% of the average monthly billing.
 5.2 Rebate Scheme for realization of dues:
 In order to encourage early and full realization of dues, your Company
 has formulated a special scheme called ''NTPC Rebate Scheme''. In this
 Scheme for 2014-15, which was aligned with CERC Regulations, graded
 rebate was given to those customers who were making due payment upto
 55th day of billing.
 5.3 Commercial Capacity:
 The following units were declared commercial during the year 2014-15,
 adding 1,195 MW to commercial capacity of your Company:
 Project/ Unit                           Capacity             COD* 
 NTPC Units- Coal Based (I)
 Barh-II,Unit#1                             660           15.11.2014
 Total (I)                                  660
 NTPC Units -Renewable Energy Units (II)
 Rajgarh Solar**                             20           30.04.2014
 Singrauli Solar                             15           31.12.2014
 Total (II)                                  35
 NTPC''s JV Units- Coal Based (III)
 Vallur,Unit#3(JV with                      500           26.02.2015 
 Total (III)                                500
 Total Capacity declared                  1,195
 commercial during 2014-15
 (incl. JVs) (I) (II) (III)
 * COD- Commercial Operation Date
 * * Out of total capacity of 50 MW, 30 MW capacity of Rajgarh Solar PV
 was declared on commercial operation on 31.03.2014.  Commercial
 Capacity of NTPC as on 30.07.2015 is as under:
 Owned by NTPC                                    MW
 Coal based projects                           33,015
 Gas based projects                             4,017
 Renewable Energy Projects                        110
 Hydro Projects                                   800
 Sub-total                                     37,942
 Joint Ventures & Subsidiaries
 Coal based projects                            4,034
 Gas based projects                             1,967
 Sub-total                                      6,001
 Total                                         43,943
 5.4 Tariff Regulations:
 In FY 2014-15, your Company has been able to recover its full capacity
 charges, there was no under recovery in any of the stations due to less
 Declared Capability (DC) below the normative DC.  Tariff petitions with
 Central Electricity Regulatory Commission (CERC) have been filed for
 all the operating stations for determination of tariff for the period
 from 01.04.2014 to 31.03.2019.  Hearing on these petitions had started
 and orders will be issued after completion of hearings. The company has
 also filed final true-up petitions for the stations for the period from
 01.04.2009 to 31.03.2014 and final orders will be issued after
 completion of hearings.
 5.4.1 Judgements
 In case of BSES Rajdhani Power Limited (BRPL) & BSES Yamuna Power
 Limited (BYPL) writ petitions, Hon''ble Supreme Court directed both
 discoms to pay the recurring monthly payments (current bills) to the
 generating/ transmission companies and vacated the stay on regulation
 of power supply against non-payment.
 APTEL, through its judgment dated 24.03.2015, upheld the allowance of
 employees cost to NTPC by CERC on account of wage revision for the
 period 2007-09 and dismissed the appeals filed by TPDDL, BYPL and PSCPL
 against the said CERC order.
 CERC allowed capitalization of R&M works in Talcher Thermal Power
 Station, through its order dated 15.05.2014 with consequential billing/
 impact of Rs.740 crore towards revised fixed charges.
 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 (BE
 COMMITTED) which emphasizes ''Customer Focus'' as one of the core values
 of NTPC.
 Under CRM, your Company has designed and executed several structured
 activities with the objective of sharing of experiences and best
 practices with the customers, capturing the feedback and expectations.
 Based on the feedback received from the customers, the Company provides
 various support services to them and identifies potential areas of
 cooperation. During the year 2014-15, 62 such services were provided to
 the customers.
 your Company offers training programs to the representatives of
 beneficiary companies at Power Management Institute (PMI) on free of
 cost basis. During the year 2014-15, 134 participants from various
 customer organizations attended training in 58 programs conducted by
 Besides above, your Company has rolled out a Customer Satisfaction
 Index (CSI) Survey for gathering customers'' feedback and responding to
 their requirements as an essential part of CRM programme. The CSI
 survey had been conducted in the year 2014-15. The survey is a useful
 tool for further relationship with the customers.
 During the year 2014-15, your Company added 1,290 MW as per details
 given below:
 Project/ Unit installed during FY                 Capacity 
 2014-15                                             (MW)
                              NTPC owned
                        Coal Based Power Projects
 Barh-II, Unit#2                                      660
                        Hydro Power Projects
 Koldam Hydro, Unit#1 and 2                           400
                        Solar Power Projects
 Rajgarh Solar PV                                      20
 Singrauli Solar PV                                    15
                        Under JVs (Coal Based 
                        Power Projects)
 Kanti (subsidiary of NTPC in JV with                 195 
 BSPGCL), Unit#3
 Addition during FY 2014-15                         1,290
 With above capacity addition during 2014-15, capacity added in the
 first three years of 12th Plan Period has reached 7,295 MW against the
 target of 11,920 MW for 12th Plan Period (as per CEA).
 The total installed capacity of the NTPC Group as on 31.03.2015 has
 become 44,398 MW (43,108.31 as on 31.03.2014) as tabulated below:
 Owned by NTPC                                        MW
 cod based projects                                33,675
 Gas based projects                                 4,017
 Renewable Energy Projects                            110
 Hydro Projects                                       400
 Sub-total                                         38,202
 Joint Ventures & Subsidiaries
 Coal based projects                                4,229
 Gas based projects                                 1,967
 Sub-total                                          6,196
 Total                                             44,398
 With the commissioning of two units of 200 MW each of Koldam Hydro
 Project on 10.04.2015 and 12.06.2015 respectively and 250 MW unit of
 Bongaigoan thermal power project on 22.06.2015, the total installed
 capacity of NTPC Group has reached 45,048 MW as on 30.07.2015.
 Your Company has adopted a multi-pronged growth strategy which includes
 capacity addition through green field projects, brown field expansions,
 expansion through joint ventures and acquisitions, towards its journey
 to achieve its vision to become world''s largest and best power producer
 powering India''s Growth.
 In addition to furthering capacity addition through Coal based power
 projects, your Company has been pursuing enhancement of its power
 generation portfolio through Hydro and Renewable Energy projects.
 7.1 Projects under Implementation
 Your Company''s various projects having aggregate capacity of 23,904 MW
 including 4,495 MW being undertaken by Joint Venture and subsidiary
 companies are under implementation at 22 locations across length and
 breadth of the country as on 31.03.2015. This includes 22,685 MW
 through coal based projects, 1,219 MW through renewable energy
 projects, comprising 1,211 MW through hydro capacity and 8 MW mini
 hydro project. The details of such projects are as under:
 Ongoing Projects as on 31.03.2015
 I. NTPC owned:
 A. Coal Based Projects
 1.  Bongaigaon, Assam*                                    750
 2.  Barh-I, Bihar                                       1,980
 3.  Lara-I, Chattisgarh                                 1,600
 4.  North Karanpura, Jharkhand                          1,980
 5.  Kudgi-I, Karnataka                                  2,400
 6.  Gadarwara-I, Madhya Pradesh                         1,600
 7.  Vindhyachal-V, Madhya Pradesh                         500
 8.  Mouda-II, Maharashtra                               1,320
 9.  Solapur, Maharashtra                                1,320
 10. Darlipalli,Odisha                                   1,600
 11. Unchahar, Uttar Pradesh                               500
 12. Tanda,Uttar Pradesh                                 1,320
 13.  Khargone, Madhya Pradesh                           1,320
 Sub Total (A)                                          18,190
 B. Hydro Electric Power Projects (HEPP)
 14.  Koldam, Himachal Pradesh*                            400
 15. Tapovan Vishnugad, Uttarakhand                        520
 16.  Lata Tapovan, Uttarakhand                            171
 17.  Rammam Hydro, West Bengal                            120
 18. Singrauli CW Discharge, Uttar                           8 
 Sub Total (B)                                           1,219
 Total I (A) (B)                                        19,409
 II Projects under JVs & Subsidiaries
 Coal Based Projects
 19.  Nabinagar- JV with Railways,                       1,000 
 20. Muzaffarpur Expansion (MTPS)- 
 Subsidiary of NTPC in JV with                             195 
 BSPGCL, Bihar
 21.  Nabinagar, JV with BSPGCL, Bihar                   1,980
 22. Meja, JV with UPRVUNL, Uttar                        1,320 
 Total II                                                4,495
 III Total On-Going Projects as on                      23,904 
 31.03.2015 (I) (II)
 *Subsequently, 250 MW unit of Bongaigaon and 400 MW of Koldam Hydro
 Projects has been commissioned till 30.06.2015. In addition, 250 MW of
 Solar PV Project was awarded on 28.05.2015 to be set up at Anantpur in
 the State of Andhra Pradesh.
 7.2 New Projects
 Currently, your Company has projects for 9,850 MW thermal capacity and
 510 MW renewable capacity under bidding after investment approval
 accorded by the Board. Feasibility Reports for 16,830 MW capacity have
 already been approved by your Board and project development activities
 are in various stages.
 your Company has signed Memorandum of Agreement on 03.05.2015 for
 acquisition of Patratu Thermal Power Station (770 MW) through a joint
 venture company to be promoted by NTPC and Jharkhand Bijlee Vitran
 Nigam Limited. The proposed JVC shall also take up expansion of power
 project by addition of 3X800 MW units in Phase-I and 2X800 MW units in
 7.3 New Technology
 To meet the challenge of fulfilling India''s electricity demands 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 power generation.
 your Company is planning to set up coal fired units with ultra
 supercritical parameters targeting efficiency comparable to best
 available technology in the world. It is also setting up solar PV
 your Company has adopted efficient 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.
 These technologies have contributed to increased efficiency and greater
 environmental protection in its operations. They have also been later
 adopted in the Indian power industry, as well.
 With emphasis on efficiency of electricity generation, your Company has
 adopted super- critical technology for Sipat plant with Steam
 parameters of 247 kg/cm7537C/565C. For Barh Stage-II, higher steam
 parameters of 247 kg/ cm7565C/593C have been adopted, which shall
 also be adopted for all 660/800 MW units being taken up thereafter. The
 improved heat rate at these parameters will result in around 5% gain in
 efficiency over the efficiency of conventional sub- critical 500 MW
 Steam parameters have been further improved for North Karanpura to 260
 kg/cm2 /593C/ 593C. For Khargone even further improved parameter 270
 kg/cm2 /600C/600C have been adopted, which is expected to give
 improvement in efficiency by 3.7% over conventional super critical
 plant.  your Company has entered into MOU with BHEL and Indira Gandhi
 Centre for Atomic Research (IGCAR) for indigenous development of
 advanced ultra super critical technology. This will have enhanced
 efficiency of around 45% and about 15-17% less CO2 emission as compared
 to 500 MW sub-critical units. The program is targeted to deliver a
 plant having 800 MW unit with steam parameters of 310 kg/cm2/710C at
 super heater outlet and 720C at re-heater outlet.
 your Company has issued NIT for hybrid solar thermal plant by
 integration of solar heat with 210 MW coal based unit at Dadri. Solar
 heat is being 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 with corresponding reduction in CO, emissions.
 7.3.1 Energy Conservation, Technology Absorption
 Details of conservation of energy and technology absorption in
 accordance with section 134(3) of the Companies Act, 2013 read with
 Companies (Accounts) Rules, 2014 forms a part of this report at
 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 integrated enterprise-wide collaborative system to facilitate
 consolidation of project related issues and their resolution. Features
 like SMS based information delivery, real time video capture, storage
 and retrieval facility and conference facility are extensively utilized
 for project tracking, issues resolutions and management intervention.
 PMC has helped in providing effective coordination between the agencies
 and has provided enhanced/ efficient monitoring of the projects leading
 to better and faster project implementation.
 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
 The information of Indian Subsidiaries and JV Companies along with
 details of partners of joint ventures engaged in power generation is
 given below:
 Name of Company      JV Partner(s)         Details
 KBUNL                Bihar State Power     A subsidiary Company in 
                                            which NTPC holds 65%
                                            shares in joint venture with
 (Kanti Biilee        Generation            BSPGCL (erstwhile BSEB), 
                                            took over MTPS having 2 
                                            units of 110 MW each
 Utoadan, Nigam       Company Limited       from BSEB. Both the units of
                                            Stage-I have been declared 
                                            on commercial
 Ltd.)               (erstwhile (BSEB)      operation. Total generation
                                            in FY 2014-15 was 875.14 MUs.
                                            The Company has also taken 
                                            up expansion of the project 
                                            by 2X195 MW units. Unit#3 
                                            of Stage-II has been 
                                            synchronized on 31.03.2015.
                                            Construction activities are 
                                            in full swing for Unit#4 
                                            of Stage-II.
 BRBCL                Ministry of Railways  A subsidiary of NTPC in 
                                            joint venture with Ministry
                                            of Railways with equity
 (Bhartiva Rail  
 Biilee                                     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
                                            activities are in progress.
                                            In addition, NTPC Limited 
                                            has signed Memorandum of
                                            Understanding with Ministry
                                            of Railways to set up 1,320
                                            MW captive power project for
                                            Railways at Adra, West 
                                            Bengal through this Company.
                                            Ministry of Railways is
                                            taking steps for allocation
                                            of coal mine to the 
                                            proposed project.
 NSPCL                Steel Authority of    A 50:50 Joint Venture 
                                            Company between NTPC and
                                            SAIL, owns and
 (NTPC SAIL Power     India Ltd. (SAIL)     operates captive power 
                                            plants for SAIL at Durgapur
                                           (120 MW), Rourkela 
 Co Pvt. Ltd.)                             (120 MW) & Bhilai (74 MW) 
                                            and Bhilai PP-III (2X250 MW),
                                            which is supplying power to 
                                            SAIL, Chhattisgarh, DNH and
                                            D&D. Its present installed
                                            capacity is 814 MW.
                                            Captive power plants (314 
                                            MW) recorded generation of
                                            2429.07 MU in FY 2014-15.
                                            Bhilai PP-III (2X250 MW) 
                                            recorded generation of 
                                            3241.06 MU in FY 2014-15.
                                            NSPCL is pursuing Coal based
                                            Expansion Power Plants at 
                                            Rourkela (1x250 MW), 
                                            Durgapur (2x20 MW) & Bhilai
                                           (2x250 MW) and Green Field 
                                            Lignite based Power Plant at
                                            Salem(2x40 MW). Bidding for 
                                            EPC packages of Rourkela 
                                            PP-II Expansion (1X250 MW) 
                                            and Durgapur PP-III (2X20 
                                            MW) is presently in process.
                                            Feasibility Report is under
                                            preparation for Power
                                            Plant at Salem.
 NTECL                Tamilnadu             A 50:50 JVC has 
                                            commissioned 3x500 MW coal
                                            based power project at
 (NTPC Tamil Nadu     Generation and        Vallur, Tamilnadu.
 Energy Co. Ltd.)     Distribution          All the units have been 
                                            declared on commercial 
                                            operation. Total generation
                      Corporation Limited   of NTECL during FY 2014-15 
                                            was 5748.68 MUs.
                     (erstwhile TNEB)
 APCPL                Indraprastha Power    This JVC is operating 3X500
                                            MW coal based Indira Gandhi 
                                            Super Thermal
 (Aravali Power       Generation Co Ltd.    Power Project. NTPC, IPGCL 
                                            and HPGCL have contributed 
                                            equity in the
 Company Pvt. Ltd.)  (IPGCL) and Haryana    ratio of 50:25:25.
                      Power Generation      Total generation of APCPL 
                                            during FY 2014-15 was
                                            7025.10 MUs.
                      Co Ltd.  (HPGCL).
 MUNPL                Uttar Pradesh         A 50:50 JVC is implementing
                                            1,320 MW (2X660 MW)
                                            coal based power
 (Meja Una Nigam      Rajya Vidyut          project in the state of
                      Uttar Pradesh.        Construction activities 
                                            are in progress.
 Pvt Ltd)             Utpadan Nigam Ltd.
 NPGCL                Bihar State Power     A 50:50 JVC is setting up 
                                            a 3x660 MW Coal based
                                            plant at Nabinagar.
 (Nabinagar Power     Generation            Construction activities 
                                            are in progress.
 Generating           Company Limited
 Company Pvt Ltd.)   (erstwhile (BSEB)
 RGPPL                GAIL, ICICI Bank, 
                      SBI,                  NTPC had a stake of 28.91% 
                                            as on 31.03.2015. All the 
                                            three Power Blocks
 (Ratnagiri Gas and   IDBI, Canara Bank     have been kept at dry 
                                            preservation since 
                                            12.09.2014 due to non-
 Power Pvt. Ltd.)     and MSEB Holding      of funds.
                      Co.                   The LNG terminal received 
                                            and unloaded 10 RLNG
                                            cargo(s) during the
                                            financial year 2014-15.
                                            Due to non-payment of loans 
                                            and interest, as per the 
                                            Shareholders'' Agreement, 
                                            loan of Rs.855.37 crore due 
                                            upto 30.06.2015 has been
                                            converted into equity. After
                                            conversion, the paid-up
                                            share capital of the Company
                                            increased to Rs.3820.27 Crore 
                                            as on 30.06.2015 and the
                                            stake of NTPC was reduced to
                                            25.51% as on 30.06.2015.
                                            Based on the subsidy scheme
                                            of the Government of India
                                            for the stranded gas power 
                                            stations for FY 2015-16 and
                                            2016-17, Ministry of Power
                                            has allocated 500 MW of 
                                            power from the project to 
                                            the Indian Railways for FY
                                            2015-16 and FY 2016-17. 
                                            Certain waiver of duties 
                                            from Maharashtra Government
                                            and agreement with GAIL is
 ASHVINI              Nuclear Power         NTPC is having a stake of 
                                            49%. The company was formed 
                                            for setting up
 (Anushakti Vidhyut   Corporation of India  nuclear power project (s) 
                                            and also to explore 
                                            possibilities of entering 
 Nigam Ltd.)          Ltd. (NPCIL)          in areas of front end fuel
                                            cycle like uranium mining
                                            etc. project site at
                                            Gorakhpur, Haryana has been 
                                            finalized for setting up 
                                            Haryana Atomic Power Plant
                                           (2X700 MW) for which physical
                                            possession of land has been
                                            completed. However, the 
                                            project is yet to be 
                                            formally allocated to 
                                            The JV Company may
                                            establish the nuclear
                                            power project subject to 
                                            the amendment in the 
                                            Atomic Energy Act.
 7.6 Hydro Power
 Your Company is increasing its footprints in renewable energy by
 developing hydro projects as detailed below:
 A.  Koldam HEPP (4x200MW) on the river Satluj at Barmana, District
 Bilaspur (Himachal Pradesh): All the four units are under commercial
 operation since 18.07.2015.
 B.  Tapovan Vishnugad HEPP (4x130MW) on River Dhauliganga, District
 Chamoli (Uttarakhand) is under construction. Approximately 60% work has
 been completed. Head Race Tunnel (HRT) contract, after completion of
 7.65 km out of 12.08 km was terminated due to non performance by
 agency. Award of balance HRT works is under tendering process and award
 is expected by Dec''15. Construction of Barrage, Switchyard and
 Electro-Mechanical & Hydro-Mechanical works are in progress.
 C. Lata Tapovan HEPP (3x57MW) is just at upstream of Tapovan-Vishnugad
 HEPP - The work was stopped by Hon''ble Supreme Court vide order dated
 07.05.2014 for 24 Hydro Projects in the State of Uttarakhand including
 Lata-Tapovan. The Ministry of Environment, Forests & Climate Change has
 constituted an expert body to look into the various concerns related
 with environment due to these 24 projects and provided 3 months time to
 submit their opinion for Lata- Tapovan HEPP & 5 other projects which
 were having all the Government clearances on their commencement of
 construction. The expert body had their first meeting on 16.06.2015.
 Regarding National Board for Wild Life Clearance for Tapovan Vishnugad
 HEPP and Lata Tapovan HEPP, the State Board of Wildlife of Uttarakhand
 has recommended the proposal to NBWL for clearance of both the
 D.  Ram mam-Ill HEPP (3x40MW) project is situated on river Rammam in
 Teesta Basin, District Darjeeling (West Bengal). Construction of
 approach roads and 2 steel bridges for power house and barrage have
 been completed.  Contracts for Civil, HM & EM works have been awarded
 and Barrage excavation has been started.
 E.  Loharinag Pala HEPP (4x150MW) on river Bhagirathi in district
 Uttarkashi of Uttarakhand was discontinued on the advice of Ministry of
 Power in the year 2010. Possibility of revival was being explored by
 Cabinet Secretariat in the meeting held on 12.09.2014.
 7.7 Capacity Addition through Renewable Energy Sources
 your Company is adding capacity through renewable sources of energy, to
 broad- base its generation mix to ensure long term competitiveness,
 mitigation of fuel risks and promotion of sustainable power
 your Company has set a target to add 10,000 MW through Renewable Energy
 by 2022. Different initiatives in this regard are as under:
 A.  An MOU has been signed with the Government of Andhra Pradesh for
 setting up of 1000 MW Solar PV project at AP. A letter of understanding
 has been signed on 10.10.2014 for developing 750 MW Solar PV project in
 Madhya Pradesh.
 B.  Solar PV Projects commissioned during the year-35MWp
 Sl.  Name of the Project                      Capacity   Commissioned
 No.                                          (MWp)       on
 1.   Rajgarh Solar, MP                          50
      20 MWp 30.04.2014 (30 MWp during 
      FY 2013-14)
 2.   Singrauli Solar, UP                        15       31.12.2014
 C.  Solar PV Project under execution - 250 MWp
 Sl.  Name of the Project                           Capacity No.(MWp)
 1.   Anantpur Solar Phase-I, AP                        250(5X50 MW)
 D.  New Solar PV Projects under bidding - 510 MWp
 Sl.  Name of the Project                        Capacity No.(MWp)
 1.   Solar Project at Badhla,                          260 
      Phase-ll, Jodhpur, Raiasthan
 2.   Solar Project at Mandsuar,                        250
      Madhya Pradesh 
 E.  Your Company is planning to add 750 MW of Solar PV Project at
 Anantpur, AP under Phase- II.
 F.  The Company has issued NIT for developing 450 KWp rooftop Solar PV
 Projects at Vindhyachal. The Company is also planning for development
 of 7.45 MW potential rooftop Solar PV projects at existing projects.
 your Company has been nominated as implementing agency by MNRE for the
 selection of developers under National Solar Mission Batch-2 for total
 15,000 MW. Under Tranche-I, 3,000 MW solar capacity is to be added. Out
 of this, tender for 1,650 MW has been already floated by NTPC in the
 States of AP and Rajasthan.
 your Company has signed an MOU with MNRE, National Institute of Wind
 Energy (NIWE), Powergrid, PFC, IREDA, PTC and GPCL to form a joint
 venture company for offshore wind power development in India. JV
 Agreement has been approved by your Board and approval from other
 partners is awaited.
 your Company has also signed an MOU with Chattisgarh Renewable Energy
 Development Agency (CREDA) for development of Tatapani Geothermal
 project in Chattisgarh.
 The Joint Venture Company among NTPC Limited, Asian Development Bank
 and Kyuden International Cooperation, Japan under the name PAN-ASIAN
 Renewables Private Limited incorporated to develop projects portfolio
 of about 500 MW of renewable power generation resources in India, is
 under voluntary wind up as it could not find third investor in spite of
 great efforts. Termination agreement has been approved by NTPC on
 31.10.2014. Liquidator has also been appointed.
 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
 your Company continuously explores business opportunities through
 market scanning and adopts new business plans accordingly.
 8.2 The details of subsidiary companies engaged in business other than
 in power generation are as under:
 8.2.1 NTPC Electric Supply Company Limited (NESCL), a wholly owned
 subsidiary 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 was implementing Rajiv Gandhi Gramin
 Vidyutikaran Vojna (RGGVY) projects on turnkey basis and undertakes
 turnkey execution of sub-stations for utilities and also takes up
 project management consultancy.
 During 2014-15, had completed nine rural electrification projects on
 deposit work basis under RGGVY. Cumulatively, out of 30 RGGVY projects,
 26 projects have been completed.
 NESCL also undertook turnkey execution job on deposit work basis for
 setting up electrical distribution network within 5 kms of NTPC
 projects/stations. Out of the eight awarded projects two projects
 completed in the financial year. Cumulatively, six projects have been
 The shareholders of NESCL have now approved the transfer of existing
 business of deposit and consultancy works under RGGVY from NESCL to
 This subsidiary is also dis-associating with the 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, as the future prospects of the JV Company are bleak.
 8.2.2 NTPC Vidyut Vyapar Nigam Limited (NVVN), a wholly owned
 subsidiary is involved in power trading, sale of fly ash and
 During the year 2014-15, the Company transacted business with various
 state electricity boards spread all over the country and traded 10,315
 MUs of electricity.
 NVVN has been appointed as the nodal agency for cross border trading of
 electricity with Bhutan and Bangladesh. The power supply to Bangladesh
 from NTPC stations under PPA signed between NVVN and Bangladesh Power
 Development Board has commenced from October 2013.
 The Company has also been designated as the Nodal Agency for
 implementation of Jawahar Lai Nehru National Solar Mission Phase-I by
 purchasing and selling of grid connected bundled solar power across the
 NVVN had been actively involved in facilitating the development of a
 wholesale electricity market in India and has developed significant
 domain knowledge for development of power market.  NVVN has been
 sharing the learning with other stakeholders in Indian Power market
 through various workshops and thus contributing to capacity building
 among stakeholders.
 The Board of your Company had decided to transfer ash business and sale
 of cenospheres earlier carried out by NVVN to be carried out by
 NTPC stations, in order to enhance fly ash utilization considering market
 potential in the vicinity of power plant and local issues at stations
 and to have better co-ordination between potential fly ash users and
 Ash Management Group at stations.
 8.3 The details of joint venture companies which are taking up
 activities in our business related areas are given below:
 Name of            JV Partner               Activities 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,
                                             Residual Life Assessment
                                             Studies, non-Conventional
                                             projects etc. 
 NASL               ALSTOM                   Takes up renovation and
 (NTPC              Power                    modernization assignments
 ALSTOM             Generation,              of power plants both in 
 Power              AG                       and in other SAARC 
 Services                                    The Company booked orders
 Pvt Ltd.)                                   of Rs.386.08 crore in FY 
                                             2014-15. Turnover of the 
                                             Company was Rs.66.49 crore.
                                             R&M including RLA work 
                                             orders are under execution.
                                             Bids have also been 
                                             submitted for other
                                             work orders.
 EESL               PFC,PGCIL                The Company was formed
 (Energy            and REC                  for implementation of
 Efficiency                                  Efficiency projects and to
 Services                                    promote energy conservation
 Ltd)                                        and climate change.
                                             The Company is providing 
                                             consultancy on Energy Audit
                                             of Buildings and 
                                             Agricultural Pump 
                                             replacement under Perform 
                                             Achieve Trade Scheme work 
                                             and standard & leveling
                                             work of BEE, consultancy 
                                             work, implementing Bachat 
                                             and agricultural municipal
                                             pump replacement for 
                                             various State Govts.
 NHPTL              NHPC,PGCIL,              The Company has been
 (National          DVC and CPRI             formed for setting up 
 High                                        for short circuit testing of
 Power Test                                  transformers and other
 Laboratory                                  electrical equipment
 Pvt Ltd.)                                   High Voltage Transformer
                                            (HVTR) Lab and Medium
                                             Voltage Transformer
                                            (MVTR) Lab at Bina, M.P.
                                             for short circuit testing 
                                             of Transformers upto 765
                                             kV is under construction 
                                             which is expected to 
                                             be commissioned in 2015.
 NPEX               NHPC,PFC                 The Company was formed
 (National          TCS, BSE, IFCI,          to facilitate, promote,
 Power              Meenakshi,               assist, regulate and manage
 Exchange           DPSC                     nationwide trading of all
 Ltd)                                        forms of electrical energies
                                             and also to settle trades in
                                             a transparent fair and open
                                             In view of the change in
                                             market scenario and the 
                                             fact that NTPC''s objects of
                                             joining NPEX has not been 
                                             met till date, your Company
                                             has decided to exit from 
                                             NPEX The Board of NPEX has 
                                             now decided to voluntary 
                                             wind up tte Company on the 
                                             recommendations of the
                                             promoters. The liquidator 
                                             has been appointed for this
 NBPPL              Bharat Heavy             The Company was
 (NTPC-BHEL         Electricals              incorporated for taking up
 Power              Limited                  activies of engineering,
 Projects Pvt.                               procurement and conduction
 Limited)                                   (EPC) of power plants and
                                             manufacturing of equipments.
                                             The manufacturing plant of
                                             NBPPL at Mannavaram,Tirupati
                                             in Andhra Pradesh for CHP
                                             and AHP has commenced
                                             production from December
 NBPPL              Bharat Heavy             The Company is executing
 (NTPC-BHEL         Electricals              EPC contracts for balance of
 Power              Limited                  plants packages of Palatana
 Projects Pvt.                               Combined Cycle Power plant
 Limited)                                    in Tripura, Namrup Combined
                                             Cycle Power Plant in Assam,
                                             Balance of Plant including
                                             Erection & Commissioning
                                             works of the entire plant
                                             at Monarchak, Tripura for
                                             NEEPCO and EPC Contract
                                             for Unchahar.  Both the
                                             units of Palatana have been
                                             commissioned and work at
                                             other sites is in progress.
                                             The Company''s order
                                             bookings as on March 31,
                                             2015 was Rs. 35 lakh. 
                                             Total turnover of the 
                                             Company was Rs.520 crore 
                                            (provisional) for the
                                             year 2014-15.
 (BF-NTPC)          Bharat Forge             This Company was
 BF-NTPC            Limited                  incorporated to manufacture
 Energy                                      castings, forgings,
                                             fittings and
 Systems                                     high pressure piping 
 Limited                                     for power projects and other
                                             As in the recent past 
                                             thermal power capacity 
                                             addition program has 
                                             suffered a major set back 
                                             due to a variety of reasons
                                             including slow environment 
                                             clearance of new projects,
                                             non- availability of land,
                                             shortage of Indian coal 
                                             and costly imported coal, 
                                             your company has decided to
                                             withdraw from this joint 
                                             venture company. Report of
                                             the Valuer has been 
                                             accepted by both NTPC and 
                                             Bharat Forge. The proposal
                                             of exit from this company 
                                             is awarting clearance from
                                             Ministry of Power.
 TELK               Acquisition of           The Company deals in
 (Transfer          44.6% stake              manufacturing and repair
 mers and           in TELK from             of Power Transformers. 
 Electricals        Government               TELK order booking as on
 Kerala             of Kerala on             31.03.2015 was Rs.118.58 
 Limited)           June 19, 2009            and the total turnover of
                                             the Company was Rs.130.02 
                                             crore in thefinancial year
 9.1 Trincomalee Power Company Limited (TPCL), a 50:50 joint venture
 Company between your Company and Ceylon Electricity Board was formed to
 undertake the development, construction, establishment, operation and
 maintenance of a coal based electricity generating station of 2X250 MW
 capacity at Trincomalee at Sri Lanka.  EIA report was submitted to
 Central Electricity Authority, Sri Lanka on 09.02.2015.  9.2
 Bangladesh-India Friendship Power Company Private Limited, a 50:50
 joint venture company between NTPC and Bangladesh Power Development
 Board (BPDB) has been formed for developing a 2X660 MW Coal based power
 project at Khulna Division, Rampal, Bangladesh.  Project activities at
 site have commenced.
 10.  CONSULTANCY SERVICES: Consultancy Wing of your Company offers
 services like Engineering, Operation & Maintenance Management, Project
 Management, Contracts & Procurement Management, Quality Management,
 Training & Development etc.
 These services have been provided in international markets in Gulf
 countries, Bangladesh, Nepal, Sri Lanka and Bhutan.
 On international front, Owner''s Engineers Services is being provided to
 Trincomalee Power Company Ltd. for setting up their 2x250MW Coal Based
 Power Project. Consultancy 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, Consultancy Wing has been effectively sharing
 its expertise with State, Central PSUs and other clients. These include
 Project Monitoring Services to MPPGCL for 2x600MW Shree Singaji TPP &
 2x250MW Satpura TPP by deputing NTPC experts at site.
 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
 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.  The details of funding are discussed in the
 Management and Discussion Analysis Report which forms part of this
 your Company has discontinued the acceptance of fresh deposits and
 renewals of deposits under NTPCs Public Deposit Scheme with effect from
 11.05.2013. As such, there was no deposits which were not in compliance
 with the requirements of Chapter-V of the Companies Act, 2013.  The
 details relating to deposits, as per the Companies Act, 2013 are as
 (a)  Accepted during the year                    Nil
 (b)  Remained unpaid or                          13 Deposits 
      unclaimed as at the end of                  amounting to 
      the year                                    Rs.17.51 lakh*
 (c)  Whether there has been any default in 
      repayment of deposits or payment of 
      interest thereon during the year and if 
      so, number of such cases and the total
      amount involved
     (i) At the beginning of the                  Nil
     (ii) Maximum during the                      Nil
     (iii) At the end of the year                 Nil
 * Pending for completion of legal formalities/ restraint orders/
 non-receipt of claims
 13.1 During the year, the supply position of coal and gas is given as
 13.1.1 Coal Supplies
 Presently, long term Coal Supply Agreements are in place for 33,515 MW
 for the units already commissioned/ to be commissioned.
 To enhance coal supply at critical units, short- term Memorandum of
 Understanding (MOU) has been signed with Eastern Coalfields Limited
 (ECL) in 2014-15 for supply of 5.0 MMT of coal. Another short term MOU
 has been signed with Northern Coalfields Limited (NCL) in 2014-15 for
 supply of 3.0 MMT.
 Letter of assurance (LOA) for quantity of 7.039 MMT of erstwhile ''E''
 grade coal by CCL was issued on 24.03.2015 for North Karanpura Project.
 For Mouda Unit#2 after considerable persuasion, the pricing of coal had
 been revised by WCL and ''cost plus'' FSA had been signed on 10.02.2015
 for an ACQ of 0.6 MMT.
 13.1.2 Domestic Coal and Imported Coal
 During 2014-15, your Company received 167.4 MMT of coal as against
 160.6 MMT in 2013-14 marking an increase of 4.23%.
 Total domestic coal supply during 2014-15 was 151.1 MMT as against
 149.8 MMT during 2013-14.
 The total coal supply from CIL was 138.6 MMT and from SCCL was 12.5 MMT.
 7.0 MMT of coal was procured through bilateral MOU during 2014-15.
 During 2014-15, your Company imported 16.4 MMT of coal as against 10.8
 MMT in 2013-14.
 13.1.3 Sourcing of coal through E-auction
 Your Company participated in 3 e-auctions for coal procurement during
 the financial year 2014- 15 in which total coal allotted was 0.19 MMT.
 Total coal received through e-auction was 0.94 MMT (including receipt
 of coal out of previous years allocation) during 2014-15 as compared to
 3.15 MMT during 2013-14.
 13.1.4 Supply through Inland Waterways
 During 2014-15, about 5.06 lakh MT imported coal has been supplied
 through inland waterways to Farakka station.
 13.1.5 Rationalisation of Linkage
 With the initiatives of Ministry of Power and Ministry of Coal, Inter
 Ministerial Task Force has recommended rationalisation of linkage for
 optimization of transportation cost and de- congestion of railway
 network. In this respect, your company has rationalised the linkage of
 Mouda station from MCL to SECL which may result in savings upto
 Rs.45.39 crore per annum.
 13.1.6 Swapping of coal with GSECL
 In September 2014, NTPC had entered into swapping agreement with
 Gujarat State Electricity Corporation Limited (GSECL) wherein imported
 coal of NTPC-Sipat was swapped with GSECL''s domestic coal. This will
 result in substantial savings for both utilities.
 13.1.7 Commencement of third party sampling
 Third party sampling by agency deployed by power utility has commenced
 for the first time in the country. Accordingly, all NTPC stations
 except Ramagundam STPS deployed the third party sampling agents.
 13.2 Gas supplies
 During 2014-15, your Company received 6.41 MMSCMD of gas and RLNG as
 against 6.87 MMSCMD received during 2013-14. The gas off- take in
 2014-15 includes 6.17 MMSCMD of gas and 0.24 MMSCMD of RLNG. Gas
 offtake was less due to less availability of generation schedule on
 RLNG from the beneficiary states.
 your Company has Administered Price Mechanism (APM) gas agreements up
 to the year 2021 and Panna Mukta Tapti (PMT) gas agreements up to the
 year 2019 for its gas stations. The term sheet for non-APM gas with
 GAIL is valid till 2016 and long- term RLNG supply agreement with GAIL
 is valid till 2019.
 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.
 The Government extended the guidelines for ''Clubbing/ diversion of gas
 between two or more power plants'' for gas stations of your company for
 another year w.e.f. 12.02.2015. With the diversion of unutilised gas
 from NTPC WR stations to NCR stations, additional 2.37 BUs (approx) of
 electricity has been generated at NCR gas stations during FY 2014-15.
 13.3 Development of Coal Mining projects
 Your Company was allocated ten coal blocks by the Government of India,
 out of which, five blocks namely, Chatti-Bariatu, Kerandari,
 Talaipalli, Dulanga, Chatti-Bariatu (South), were cancelled by the
 Hon''ble Supreme Court through order dated 24.09.2014. Subsequently, the
 Ministry of Coal, on 24.03.2015, declared reallocation of four coal
 blocks to your Company (Chatti-Bariatu and Chatti-Bariatu (South) have
 been clubbed), for which allotment agreements had been signed between
 your company and Government of India on 30.03.2015.
 Government of India has also issued formal allotment letters to your
 Company on 31.03.2015 for Banai, Bhalumuda coal blocks. Kundanali-
 Luburi coal block has been allotted jointly to your company and J&K
 State Power Development Company Limited (J&KSPDCL). For developing
 Kundanali-Luburi coal block, a joint venture company is proposed to be
 formed between your Company and J&KSPDCL.
 With the allocation of total 8 coal blocks with estimated geological
 reserves of over 5 BT, your company expects to produce about 82 million
 tonnes of coal per annum.
 In Pakri-Barwadih coal mining block, all the necessary statutory
 clearances are available. Mine opening permission has already been
 received from Coal Controller and DGMS. Fresh contract for appointment
 of Mine Developer & Operator (MDO) for Pakri-Barwadih is in progress as
 the earlier contract was terminated due to its poor performance. MDO
 contract awarded for Chatti- Bariatu was also terminated due to
 cancellation of the coal block by the Supreme Court.
 Meanwhile, as a parallel action, short-term contracts for removal of
 overburden, coal extraction and transportation upto Railway Siding are
 planned from a part of Pakri-Barwadih block (Eastern Pit) for which
 tendering has been done. Your company has received mine opening
 permission from DGMS for Chatti-Bariatu coal block.
 your company is trying for allocation of few more coal blocks in the
 next round of allotment of coal blocks for Government Companies.
 your Company had formed Joint Venture Companies namely CIL NTPC Urja
 Private Limited, NTPC-SCCL Global Ventures Private Limited and
 International Coal Ventures Private Limited to explore further avenues
 in the area of coal mining. However, these JV companies have not been
 able to achieve their objectives owing to certain constraints like
 inability of the JV Company to execute the work, government directive
 etc.  In case of CIL NTPC Urja Private Limited, the company has applied
 to the Government of India for reallocation of coal blocks deallocated
 from it in 2011.
 NTPC-SCCL Global Ventures Private Limited is being wound up voluntarily
 as the Company could not start its business since its incorporation due
 to non-availability of any business prospects.
 Further, the Company has decided to exit from International Coal
 Ventures Private Limited for which clearance from cabinet is awaited.
 13.4 Exploration Activities
 In Cambay exploration block allotted under NELP-VIII, held by NTPC as
 operator with 100% participating interest, drilling of one explanatory
 well has been completed and drilling of second well is in progress.
 Drilling of balance exploration wells is planned in the FY 2015-16.
 In one of KG basin exploration blocks viz. KG- OSN-2009/1 where ONGC is
 the operator and NTPC has 10% stake, drilling of an exploratory well
 has been completed. Tests conducted did not indicate presence of
 hydrocarbons in the well. The well has been plugged and abandoned.  In
 other KG basin exploration block viz. KG- OSN-2009/4 where ONGC is the
 operator and NTPC has 10% stake, the exploration activities are in
 progress and ONGC has submitted a proposal to the Government of India
 for reduction on minimum work program as the permitted area of the
 block has been reduced because of non-grant of defence clearance. It
 has been decided to relinquish Andaman basin exploration block viz.
 AN-DWN-2009/13 where ONGC is the operator and NTPC has 10% stake, to
 the Government of India as per advice from ONGC.
 To achieve higher levels of excellence, the 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. The model has been deployed at our Business
 Units (Stations) and your Company carry out assessment of generating
 stations using this framework of excellence.
 In the financial year 2014-15, the 5th cycle of assessment was
 completed in which 21 generating stations were assessed by a team of
 certified and proficient assessors. Business Excellence Awards for Best
 Performance to Dadri and Runner-up shield to Talcher-Thermal stations
 were presented by the Union Minister of Power, GOI, in the Indian Power
 Stations Conference- 2015 held at New Delhi.
 As a next step on the Journey of Excellence, the company is planning to
 implement Business Analytics and Information Management initiative to
 enhance overall strategic focus and alignment.
 Contemporary quality 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 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 life of the plant, improves
 performance & availability, enhances 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. It also helps in compliance of environment norms.
 With a view to removing technological obsolescence, renovation of
 control & instrumentation (C&l) is in progress in Singrauli-I & II,
 Korba -I & II, Ramagundam -I & II, Farakka- II, Dadri Thermal- I,
 Unchahar- I , Talcher-I and Kahalgaon-I STPS. During 2014-15, C&l R&M
 was completed in one 500 MW unit of Singrauli, one 200 MW unit & one
 500 MW unit of Korba, two 500 MW units of Ramagundam, one 210 MW unit
 of Dadri Thermal, one 210 MW unit of FGUPTS and one 500 MW unit of
 Talcher STPS. On completion of these schemes, the C&l systems in these
 stations will be brought nearly on par with the new power projects.
 Because of the very high working temperatures, R&M of Gas Turbines
 including their Control & Instrumentation is essential after around 15
 years of life. During the year, this activity was completed in all the
 4 Gas Turbines (GT) each in Kawas and in Auraiya and 2 out of 3 GT in
 With a view to comply with increasingly stringent environment norms of
 reduced emission level prescribed by State Pollution Control Boards,
 Renovation and Retrofitting of Electrostatic Precipitator (ESP)
 packages have been awarded and work is in progress in Badarpur-ll,
 Singrauli-I & II, Farakka-I, Unchahar-I, Korba-I & II, Rihand-I,
 Vindhyachal-I & II, Talcher STPS -I & II and Talcher TPS-II. Amongst
 these, Moving Electrode Electrostatic Precipitator technology (MEEP) is
 being adopted for the first time in the country in Rihand Station.
 During 2014-15, ESP R&M of Unit#4 of Badarpur was completed.  To derive
 benefits of the latest advancements in technology, in cooperation with
 CEA, EEC/VGB/ Steag Germany, a study has been taken up on ESP
 performance improvement using CFD modeling in Unit#6 of Ramagundam,
 with scheduled completion in December 2015.
 16.1 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 reduction of Man-MW ratio year
 after year. The over-all Man-MW ratio for the year 2014-15 excluding
 JV/subsidiary capacity is 0.61 and 0.56 including capacity of JV/
 Subsidiaries.  Generation per employee was 10.72 MUs during the year
 based on generation of NTPC stations.
 The total employee strength of the company stood at 24,067 as on
 31.3.2015 against 25,013 as on 31.3.2014.
                                           FY 2014-15     FY 2013-14
 Number of                                   22,496          23,411 
 Subsidiaries & Joint Ventures
 Employees of NTPC in                         1,571           1,602
 Subsidiaries & Joint Ventures
 Total employees                             24,067          25,013
 The attrition rate of the NTPC executives (including Executive Trainees
 and those posted in Subsidiaries and JVs) during the year was 1.35%.
 16.2 Employee Relations
 Employees are the driving force behind the sustained stellar
 performance of the company over all these years of company''s
 ascendancy.  As a commitment towards the Company''s core values,
 Employees'' Participation in Management was made effective 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 the year.
 Both, employees and management complemented each other''s 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.
 16.3 Safety and Security
 Occupational health and safety at workplace is one of the prime
 concerns and utmost importance is given to provide safe working
 environment and to inculcate safety awareness among the employees.
 Company recognizes and accepts its responsibility for establishing and
 maintaining a safe working environment for all its employees and
 associates. Your Company has 3-tier structure for Occupational health
 and Safety management, namely at Stations/Projects, at Regional Head
 Quarters and at Corporate Centre.
 All our stations are certified with OHSAS-18001/ IS-18001. Internal
 safety audits by our own safety officers of various projects/stations
 and external safety audits by reputed organizations are carried out for
 each Project/Station.
 Cross functional safety task force for O&M and construction projects
 are functional at all projects/ stations to monitor unsafe working
 conditions at site and its rectification. For strict compliance &
 enforcement of safety norms and practices by the contractors, safety
 clauses are included in General Conditions of Contract/ Erection
 Condition of Contract.
 Many of our plants have been awarded with prestigious safety awards
 conferred by various Institutions/Body like Ministry of Labour &
 Employment-Govt. of India, National safety council, Institution of
 Engineers (India), in recognition of implementing innovative safety
 procedures and practices.
 Security: Your Company recognizes and accepts its responsibility for
 establishing and maintaining a secured working environment for all its
 installations, employees and associates. This is being taken care of by
 deploying CISF at all units of your Company as per norms of MHA.
 Concrete steps are being taken for upgrading surveillance systems at
 all projects/ stations by installing state- of-the-art security
 16.4 Training and Development
 In line with its objective of being a learning organization with
 skilled and committed employees, your Company has relentlessly promoted
 training and development of not only its own employees but also other
 professionals of the power sector. The objective is being driven by a
 comprehensive infrastructure comprising Power Management Institute
 (PMI) at the corporate level and Employee Development Centers at its
 sites.  The training imparted is in tune with emerging needs and
 challenges and for this purpose, the existing training programs are
 reviewed and some new programs are included in the annual calendar
 every year.
 PMI has taken firm steps to strengthen the Project Management
 competency in the country through an International Project Management
 framework.  A Post Graduate Certificate in Project Management (PGCPM)
 programme in collaboration with IIM- Indore is being conducted for
 developing long term project management competency. PMI has been
 providing skill based training to various public and private sector
 utilities/companies. A similar tie-up has been done with IIM-Ahmedabad
 for knowledge creation.
 For all round development of India''s power sector, PMI has conducted
 several customized training programmes for the benefit of State
 utilities, CPSEs and private sector companies at their locations as
 well as in PMI. In addition, several individuals from State utilities
 have benefited from the regular training programmes being conducted at
 PMI, Noida. In all, 1,163 participants from such other organizations
 got trained at PMI during 2014-15.
 During 2014-15, PMI has conducted total 441 training programmes
 covering 9,373 executives, logging a total of 36,235 training mandays.
 PMI conducted 20 training programs through Web Conferencing during
 PMI imparts hands-on training to participants from various power
 utilities on Super Critical Technology through its 660 MW Simulator. So
 far, over 1000 power plant professionals have been provided training
 since its inception.
 PMI also conducted 3 International Training Programmes, each of total 6
 weeks'' duration, for ABB Limited in Abu Dhabi on Power Plant Operation
 and Simulator Training on GE Combined Cycle Gas Power Plant, thus
 creating a global brand image for itself and Company. A high level
 programme titled Strategic Business Sense and Leadership, anchored by
 renowned faculties, was held exclusively for senior Executives of the
 Company during 25-28 November, 2014.  Programmes on Enterprise Risk
 Management are also being held for Senior Management personnel at
 Regional Offices of NTPC.
 your Company is among the pioneers to start an Employee Assistance
 Program (confidential expert counselling service for employees and
 their family members).
 With the objective of grooming professionals into world class power
 plant managers, PMI has opened NTPC School of Business for running PG
 Diploma in Management approved by AICTE. This 15 months course will
 also include learning inputs from international faculty and provide
 exposure to industries outside India.
 PMI is mandated to bolster the skills initiative of your Company for
 development of the country''s youth. In line with this, PMI as the nodal
 agency is facilitating the adoption of existing Government ITIs and
 setting up of new ITIs in different parts of the country spanning 16
 States. Up till now, your Company has adopted 17 ITIs and set up 7 new
 ITIs near its power stations, thus associating with total 24 ITIs. Of
 the 17 Govt. ITIs adopted by your Company, 14 ITIs were adopted under
 the PPP scheme of Gol and 3 ITIs have been adopted under bilateral
 agreement with different State governments. These initiatives by your
 Company have resulted in creation of total 1,595 new seats by starting
 of new trades/units in the adopted & new ITIs, and, till 31.03.2015,
 cumulatively, a total of 23,131 students have benefitted from this
 initiative. For these ITI students, NTPC organised total 46,864 mandays
 of industrial training/ plant visits. Due to all these skill
 development initiatives, your Company has been conferred two awards
 The Education Excellence Award - 2013 and PMI (India) Award for
 Community Development-2014.
 Your Company believes that growth and development can be sustainable
 only if they happen in all the three fronts i.e Environment, Economic
 and Social. In line with NTPC Vision, -Powering India''s Growth'', the
 Company adopts business approach which is guided by Sustainable
 Development i.e. development that meets the needs of the present
 without compromising the ability of future generations to meet their
 own needs.
 Business Responsibility Report is attached as Annex-IX and forms part
 of the Annual Report.
 Initiatives by the Company
 your Company has developed a policy on Sustainable Development in
 accordance with a sustainable development plan prepared for the year
 2014-15. The main areas covered were projects on bio-diversity
 conservation, waste management, reduction in air emissions in addition
 to promotion of renewable energy. Major activities carried out under
 this plan included plantation of more than 2 lakh saplings in and
 around plants, installation of roof top solar PV, solar street lights,
 rain water harvesting, installation of bio- methanation plant, vermi
 composting, other techniques for conversion of domestic waste in
 organic fertilizer. Studies like pollutant source apportionment, human
 health risk assessment and environment impact assessment are also being
 taken up.
 A total expenditure of Rs. 19.53 crore was incurred on these
 Sustainable Development Projects during the Financial Year 2014-15.
 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:
 17.1 Inclusive Growth -Initiatives for Social Growth
 17.1.1 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.
 NTPC CSR initiatives are in focus areas of basic infrastructure
 development like sanitation, road, drinking water, primary education,
 community health, vocational training, women empowerment etc. Overall
 impact of these initiatives includes improvement in health, academic
 success, reduction in number of girl dropouts, reduced hardship and
 improved connectivity etc. During the year special thrust has been
 given to the Swachh Vidyalaya Abhiyan for construction of toilets in
 government schools.
 17.1.2 NTPC Foundation
 NTPC Foundation is engaged in serving and empowering the physically
 challenged and economically weaker sections of the society.
 Details of expenditure incurred and initiatives undertaken by the
 Company under CSR are covered in the Annual Report on CSR annexed as
 Annex-VII to this Report.
 17.1.3 Rehabilitation & Resettlement (R&R)
 your Company is committed to help the populace displaced for execution
 of its projects and has been making 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
 R&R activities are initiated at our projects by undertaking need based
 community development activities in the area of health, education,
 water, capacity building infrastructure etc by formulating Initial
 Community Development (ICD) Plan in consultation with concerned
 Panchayat, district administration and opinion makers of the locality.
 As per the policy, a detailed socio-economic survey (SES) is conducted
 by a professional agency to create a baseline data of PAPs.
 R&R plan expenditure is implemented in a time bound manner so as to
 complete its implementation by the time the project is commissioned. A
 social impact evaluation is being conducted by a professional agency to
 know the efficency of R&R Plan implementation for future learning and
 17.1.4 R&R achievements during the year:
 (a) Initial Community Plan (ICD):
 - ICD plan for Bilhaur project enchanced.
 - Community Development plan for Kahalgaon MGR to Hurra Mines approved.
 - Implementation of ICD activities continued at Barethi, Darlipalli,
 Gajmara, Khargone, Nabinagar (BRBCL) and Nabinagar (NPGCL) projects.
 (b) Rehabilitation and Resettlement (R&R) Plan:
 - R&R plans for Barethi, Mouda-II, Khargone, Darlipalli, Unchahar-IV
 and Rammam -III projects covering areas like health, education,
 sanitation, drinking water, infrastructure facilities finalized and
 approved in consultation with the stakeholders.
 - R&R activities were implemented in new green/ brownfield Thermal
 Projects at Barh, Bongaigaon, Gadarwara, Muzaffarpur, Korba, Kudgi,
 Lara, Meja, Mouda, North-Karanpura, Solapur, Tanda, Vallur,
 Vindhyachal. In Hydro Projects at Koldam, Lata-Tapovan, Tapovan-
 Vishnugad and Coal Mining projects at Pakri-Barwadih, Chhatti- Bariatu,
 Kerendari, Dulanga and Talaipalli, R&R activities were implemented.
 - Provisions made for running expenses for Solapur Power and Industrial
 Training Institute, with three trades electrician, fitter and welder.
 - INT, Raipur - construction is in progress.
 - Setting up of mother and child care hub and critical care unit
 approved for Katwa sub- division hospital, Burdwan as part of R&R
 expenditure for Katwa Project.
 - Mobile Health Clinic at Kudgi, Nabinagar (NPGCL), Pakri-Barwadih,
 Nabinagar (BRBCL) and Gajmara projects continued this year.
 - SES for Bilhaur and Mouda-II projects was completed.
 17.2 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 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
 your Company has adopted advanced and high efficiency technologies such
 as super critical boilers for recently commissioned and the upcoming
 green field projects. Your company is augmenting its capacity by
 installing solar power systems and micro hydel power systems attached
 to its thermal power stations, wherever possible, so as to encourage
 garnering of renewable energy resources. The Company is also designing
 its up-coming plants to use beneficiated coal and imported low ash
 coal. These measures are aimed not only to achieve reduction in
 pollution and minimize use of precious natural resources but also to
 lead to reduction of COe emissions per unit of generation thereby
 reducing global warming.
 17.2.1 Control of Air Emissions: High efficiency Electro- static
 Precipitators (ESPs) with efficiency of the order of 99.97% 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, retrofitting of advanced
 ESP controllers and adoption of sound O&M practices. Flue Gas
 Conditioning systems have also been provided at our old units which are
 helping in reduction of SPM emissions below statutory limits even
 during coal quality variations due to blending of coal etc.
 NOx control in coal fired plants is achieved by controlling its
 production by adopting best combustion practices. Since tall stacks are
 provided in coal stations, 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
 Fugitive emission from ash pond is controlled by maintaining water
 cover, tree plantation on abandoned ash ponds, water spray and 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.
 17.2.2 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 plausible and reuse of treated sewage
 effluent for horticulture purposes are some of the measures implemented
 in most of the stations.  All these measures have resulted in reduction
 of effluent discharge from the power plants of NTPC.
 17.2.3 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, SO2,
 NOx and access has been provided to the Central Pollution Control Board
 and State Pollution Control Boards. Additional ozone analyzers for
 ambient air are also being provided phase-wise at the stations.
 Installation of Continuous Emission Monitoring Systems (CEMS) to
 monitor emissions of SO2, NOx and CO2 in all its existing units on real
 time basis is in advance stage.  It is also installing Effluent Quality
 Monitoring System (EQMS). For all the upcoming projects, real time
 monitors for ambient air and emissions are included in the engineering
 packages during design stage itself.
 17.2.4 Environmental Studies: Your Company has taken a number of
 studies for better environment protection and to develop strong
 scientific database.
 17.2.5Tree Plantation: Your Company has planted 21.783 million trees
 till date throughout the country 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.
 17.2.6 ISO 14001 & OHSAS 18001 Certification: All NTPCs stations have
 been certified with ISO 14001 and OHSAS 18001 by reputed National and
 International certifying agencies as a result of sound environment
 management systems and practices.
 17.3 Quality Assurance and Inspection (QA&I)
 Your company has invested hugely in Quality with the view to secure
 long term plant reliability.  Investment in terms of committing
 adequate number of qualified and trained human resources for quality
 related activities, laboratories at the construction sites and, more
 importantly, robust processes providing for direction methods and
 standards of performance, for the various tasks associated with
 Quality in your company has a much deeper meaning: identification of
 needs, planning for realization of the needs jointly with the stake
 holders including the various suppliers and verification whether the
 needs have been built into the product/service during manufacturing and
 erection & commissioning. The quality loop is further extended to
 capture whether the originally indented plant reliability and operation
 standards have been realized or not. Gaps, if any, are filled through
 resetting the methods and standards through continuous improvements.
 Your company''s performance indicators, exceptional by any standards,
 bears testimony to the soundness of the quality system deployed.
 Your Company is represented on various technical committees of ISO and
 IEC and is actively contributing in formulation and updating of power
 sector technical and quality standards/ guidelines.
 17.4 Clean Development Mechanism (CDM)
 Your Company is undertaking climate change issues proactively.
 Three of its solar projects namely 5MW each solar PV project at Dadri,
 Port Blair (Andaman & Nicobar) and Faridabad had already been
 registered with UNFCCC CDM Executive Board. 8MW Small Hydro Power
 Project at Singrauli is in advanced stage of validation and is likely
 to be submitted shortly to UNFCCC for CDM registration. 6173 numbers of
 CERs for 5MW solar PV Power project at Port Blair (A&N) had already
 been issued by UNFCCC CDM Executive Board. Verification/ issuance of
 CERs for 5 MW solar power PV project at Dadri is in process.
 17.5 Ash Utilisation
 During the year 2014-15, 59.15 million tonnes of ash was generated and
 39.52% viz. 23.38 million tonnes of ash had been utilized for various
 productive purposes.
 Important areas of ash utilization are - cement & asbestos industry,
 ready mix concrete plants (RMC), road embankment, mine filling, ash
 dyke raising & land development.
 Pond ash from all stations of your Company is being issued free of cost
 to all users. Fly ash is also being issued free of cost to fly ash/
 clay-fly ash bricks, blocks and tiles manufacturers on priority basis
 over the other users from all coal based thermal power stations. The
 funds collected from sale of ash up to Dec''14 was being maintained in a
 separate account by NVVN, a wholly- owned subsidiary company. Now this
 fund has been transferred to your Company and is being maintained in
 the separate account. This fund is being utilized for development of
 infrastructure facilities, promotion and facilitation activities to
 enhance ash utilization.
 your Company has also introduced Ash Policy, which is a vision document
 dealing with the ash utilization issue in an integral way from
 generation to end product. This policy aims at maximizing utilization
 of ash for productive usage alongwith fulfilling social and
 environmental obligations as a green initiative in protecting the
 nature and giving a better environment to future generations.
 The quantity of ash produced, ash utilized and percentage of such
 utilization during 2014-15 from NTPC Stations is at Annex-VIII.
 17.6 CenPEEP - towards enhancing efficiency and protecting Environment
 your Company initiated a unique voluntary program of GHG emission
 reduction by establishing -Center for Power Efficiency and
 Environmental Protection (CenPEEP)'' and under this program, it is
 estimated that cumulative COe avoided is 40.25 million ton since 1996.
 CenPEEP is coordinating the implementation of -Perform, Achieve & Trade
 (PAT) Scheme'' under Prime Minister''s National Mission on Enhanced
 Energy Efficiency (NMEEE) wherein 22 stations of your Company are
 Designated Consumers (DC).  Based on the gap analysis, station specific
 action plans were prepared & implemented for efficiency improvement and
 reduction in auxiliary power to achieve the PAT targets.
 Thrust has been given for efficiency improvement and sustenance through
 strategic initiatives of Energy Efficiency Management System (EEMS),
 and reliability improvement through Reliability Centered Maintenance
 (RCM) & PdM systems. A pool of over 350 certified Energy Auditors has
 been created in your Company helping in the culture of energy
 conservation. A dedicated group CEETEM - Centre for Energy Efficient
 Technology & Energy Management, coordinates regular Energy audits to
 induce focused actions and activities for improvement.
 Monitoring and analysis of critical efficiency parametric aberrations &
 draft power consumption is done using PI dashboards & online systems
 like Thermal Loss Analyser (TLA), Output Loss Analysis (OLA) and System
 Energy Efficiency Display (SEED).  These systems assist the operator in
 tracking the gaps in heat rate and auxiliary power consumption &
 facilitate tracking and trending of degradation of equipment
 performance and formulation of action plans for improvement.
 Under Indo-US bilateral program ''Partnership to Advance Clean Energy -
 Deployment (PACE-D)'' supported by USAID, a manual on ''Benchmarking for
 Super critical Units'' was prepared jointly with US experts.
 CenPEEP is actively involved in the training and development of power
 professionals from your Company and other utilities in the power
 sector.  It conducts domain specific workshops in areas of Boiler &
 Auxiliaries, Turbine & Auxiliaries, Cooling Towers, RCM and PdM
 technologies etc.
 18.  NETRA - R&D Mission in Power Sector
 your Company, as the leading power utility of the country, has assigned
 1% of PAT for R&D activities.  Its research efforts are focused to
 address the major concerns of the sector as well as the futuristic
 technology requirements of the sector.  In this effort, company has
 established NTPC Energy Technology Research Alliance (NETRA) as
 state-of-the-art centre for research, technology development and
 scientific services in the domain of electric power to enable seamless
 work flow right from concept to commissioning. The focus areas of NETRA
 are - Efficiency Improvement & Cost Reduction; New & Renewable Energy;
 Climate Change & Environmental protection and Advanced Scientific
 Research Advisory Council (RAC) of NETRA comprising of eminent
 scientists and experts from India and abroad is in place to steer
 research direction.
 In order to provide maximum possible benefit to the stations while
 developing green technologies, many projects/activities have been
 undertaken for implementation.
 NETRA continued to provide scientific support to all stations as well
 as many other utilities stations in the area of oil/water chemistry,
 environment, electrical, rotor dynamics etc for efficient performances.
 NETRA laboratories are accredited as per ISO 17025 and its NDT
 laboratory has also been recognized as Well known Remnant Life
 Assessment Organization under the Boiler Regulations, 1950. Phase-ll
 NETRA infrastructure is under construction with approx 21000 sq m floor
 area and is expected to be completed by Dec''2015. Phase II will have 30
 laboratories, workshop, pilot plant bay and an auditorium with seating
 capacity of 400 persons.
 Several steps were taken for the proper propagation and implementation
 of Official Language Policy of Government of India in the Company.
 Meetings of Official Language Implementation Committee were held on 20th
 June, 30th September, 30th December, 2014 & 24th March, 2015 in which the
 implementation of Hindi in the Organization was reviewed thoroughly.
 Various Hindi competitions were organized during Hindi fortnight from
 1st to 14th September, 2014 in the corporate office as well as in all
 projects of NTPC Limited. Corporate Hindi Magazine Vidyut Swar was
 awarded All India first prize by Hon''ble President of India. Hindi
 workshops were conducted for the various departments of the Company.
 Renowned Hindi scholars inspired the participants of Hindi workshops to
 use Hindi in day-to-day official work.
 Most of the 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 Company''s website also has a facility of operating in bilingual
 form- in Hindi as well as in English.
 20.1 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 four units of Vigilance Department
 namely Corporate Vigilance Cell, Departmental Proceeding Cell (DPC),
 MIS Cell and Technical Cell (TC) deal with various facets of vigilance
 333 surprise checks were conducted in various departments and recovery
 was made against discrepancies.
 Various guidelines were issued during 2014-15 to improve systems in the
 Company pertaining to procurement, accounting, payments, agreements,
 enlistment of vendors etc.
 20.2 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 for all contracts having value
 exceeding Rs.10 crore. Three Independent External Monitors have been
 nominated by the Central Vigilance Commission for all contracts with
 value exceeding Rs.100 crore. New format of Integrity Pact as per the
 Company''s requirement and the suggestions given by IEMs were
 20.3 Implementation of various policies/ circulars
 Complaint Handling Policy, Fraud Prevention Policy and Whistle Blower
 Policy have been implemented in the Company to build and strengthen a
 culture of transparency. A uniform policy for banning of business
 dealings with the contractors/ vendors has been formulated and
 During 2014-15,159 complaints were received, out of which 84 complaints
 were carried to a logical conclusion and the remaining 75 complaints
 are under various stages of investigation. Appropriate disciplinary
 action has also been initiated wherever necessary.
 20.4 Vigilance Awareness Week and Workshops
 During 2014-15,41 preventive vigilance workshops were conducted at
 various projects/ places in which 1,230 employees participated.
 Vigilance awareness week was observed from October 27, 2014 to November
 2, 2014 in all NTPC projects and stations/ establishments.
 your Company is committed for resolution of public grievance in
 efficient and time bound manner.  Company Secretary has been designated
 as Director (Grievance) to facilitate earliest resolution of public
 grievances received from President Secretariat, Prime Minister''s
 Office, Ministry of Power etc.
 In order to facilitate resolution of grievances in transparent and time
 bound manner, Department of Administrative Reforms & Public Grievances,
 Department of Personnel & Training, Government of India has initiated
 web-based monitoring system at
 As per directions of GOI, public grievances are to be resolved within
 two months time. If it is not possible to resolve the same within two
 months period, an interim reply is to be given. Your company is making
 all efforts to resolve grievances in above time frame.
 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 the Company.
 During 2014-15, 1,288 applications were received under the RTI Act, out
 of which 1,242 applications were replied to till 31.03.2015.
 Your Company 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, and 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
 A state of the art data centre with centralized server facility for ERP
 to cater to the entire Company is in Operation at NOIDA A100% disaster
 recovery centre is also operational at Hyderabad for change over in
 case of any emergency.
 Your Company has currently 4 subsidiary companies and 21 joint venture
 companies for undertaking specific business activities.
 A statement containing the salient feature of the financial statement
 of your Company''s Subsidiaries, Associate Companies and Joint Ventures
 as per first proviso of section 129(3) of the Companies Act, 2013 is
 included in the consolidated financial statement.
 The financial statements of subsidiary companies along with the
 respective Directors'' Report are placed elsewhere in this Annual
 Information required to be furnished as per the Companies Act, 2013 and
 Listing Agreement with Stock Exchanges are as under:
 25.1 Statutory Auditors
 The Statutory Auditors of your Company are appointed by the Comptroller
 & Auditor General of India. M/s O.P. Bagla & Co., M/s PSD & Associates,
 M/s PKF Sridhar & Santhanam, M/s V.  Sankar Aiyar & Co., M/s Ramesh C.
 Agrawal & Co.  and M/s AR. & Co. were Joint Statutory Auditors for the
 financial year 2014-15.
 The Comptroller & Auditor General of India has appointed (i) M/s T R
 Chadha & Co., Chartered Accountants, New Delhi, (ii) M/s PSD
 Associates, Chartered Accountants, New Delhi, (iii) M/s Sagar &
 Associates, Chartered Accountants, Hyderabad, (iv) M/s Kalani & Co.,
 Chartered Accountants, Jaipur, (v) M/s P A & Associates, Chartered
 Accountants, Bhubaneshwar, (vi) M/s S K Kapoor & Co., Chartered
 Accountants, Kanpur and (vii) M/s B M Chatrath & Co., Chartered
 Accountants, Kolkata as the Joint Statutory Auditors of the Company for
 the year 2015-16.
 25.2 Management comments on Statutory Auditors'' Report
 The Statutory Auditors of the Company have given an unqualified report
 on the accounts of the Company for the financial year 2014-15. However,
 they have drawn attention under ''Emphasis of Matter'' to Note-22 (b) to
 the financial statements relating to accounting of sales on provisional
 basis and Note 34 in respect of a project where the matter is pending
 before the Hon''ble Supreme Court of India.
 The issues have been adequately explained in the respective Notes
 referred to by the Auditors.
 25.3 Review of accounts by Comptroller & Auditor General of India
 As advised by the Office of the C&AG, the comments of C&AG for the year
 2014-15 alongwith management replies thereto are placed with the report
 of Statutory Auditors of your Company elsewhere in this Annual Report.
 The office of the C&AG has issued two comments on the accounts of the
 Company for the financial year 2014-15 in respect of disclosure of
 sales on provisional basis where the Company has filed a petition
 before the Hon''ble Supreme Court of India contesting certain provisions
 of the CERC Regulations, 2014 and accounting of capital expenditure on
 assets not owned by the Company.
 As prescribed under the Companies (Cost Records and Audit) Rules, 2014,
 the Cost Accounting records are being maintained by all stations of the
 The firms of Cost Accountants appointed under Section 148(3) of the
 Companies Act, 2013 for the financial year 2013-14 and 2014-15 were (i)
 M/s Narasimha Murthy & Co., Hyderabad, (ii) M/s Musib & Co., Mumbai,
 (iii) M/s Sanjay Gupta & Associates, Delhi, (iv) M/s Bandopadhyay
 Bhaumik & Co., Mumbai, (v) M/s S. Dhal & Co., Bhubhaneshwar and (vi)
 M/s R.J. Goel & Co., Delhi.
 The due date for filing consolidated Cost Audit Report in XBRL format
 for the financial year ended March 31, 2014 was September 27, 2014 and
 the consolidated Cost Audit Report for your Company was filed with the
 Central Government on September 10, 2014.
 The Cost Audit Report for the financial year ended March 31,2015 shall
 be filed within the prescribed time period under the Companies (Cost
 Records & Audit) Rules, 2014.
 25.4 Performance Evaluation of the Directors and the Board
 As required under the Companies Act, 2013 and the Listing Agreement,
 evaluation of performance of directors including that of the
 Independent Directors and of the Board is to be carried out either by
 the Board or by the Nomination and Remuneration Committee or by the
 Independent Directors. It also requires disclosure of formulated
 criteria for performance evaluation in this Report.
 In this regard, the Ministry of Corporate Affairs, through Notification
 dated 05.06.2015, has exempted the Government Companies from these
 provisions. The appointment of the Functional Directors, Government
 Nominee Directors and Independent Directors of your Company is made by
 the Government of India.  Their terms & conditions of appointment as
 well as tenure of all directors are also decided by GOI and there is a
 well laid down procedure for evaluation of Functional Directors & CMD
 as well as of Government Directors by Administrative/ respective
 Ministry. Also, the performance of the Board of the Government
 Companies is evaluated during the performance evaluation of the MOU
 signed with the Government of India.
 25.5 Secretarial Audit
 The Board has appointed M/s Agarwal S. & Associates, Company
 Secretaries, to conduct Secretarial Audit for the financial year
 2014-15.  The Secretarial Audit Report for the financial year ended
 March 31, 2015 is annexed herewith marked as Annexure X to this Report.
 The Managements'' Comments on Secretarial Audit Report are as under:
 Observations                        Management''s Comments
 Composition of the                  As per the Listing 
 Board of Directors of               Agreements executed with 
 the Company is not                  the Stock Exchanges, the 
 in compliance with                  Company should have nine 
 Second Proviso to                   Independent Directors
 Section 149(1) and                  since Company has seven
 Section 149(4) of the               functional Directors
 Companies Act, 2013,                including the Chairman 
 Clause 49(II)(A) of the             & Managing Director and 
 Listing Agreement and               two Government Nominee 
 Para 3.1.2 and 3.1.4                Directors on its Board as 
 of the DPE Guidelines               against two Independent 
 on Corporate                        Directors in position at
 Governance for                      present.  Further, the
 CPSEs issued by the                 Company does not have
 Department of Public                any woman Director on the 
 Enterprises                         Board.
                                     Being a Government Company the 
                                     power to appoint the Directors 
                                     on the Board of the Company vests 
                                     with the President of India and 
                                     accordingly, the Company is, from
                                     time to time, requesting Ministry
                                     of Power to appoint woman director
                                     and the requisite number of 
                                     Independent Directors on its Board.
 25.6 Particulars of contracts or arrangements with related parties
 During the period under review, the Company had not entered into any
 material transaction with any of its related parties. The Company''s
 major related party transactions are generally with its subsidiaries
 and associates. All related party transactions were in the ordinary
 course of business and were negotiated on an arm''s length basis. They
 were intended to further the Company''s interests.
 Accordingly, the disclosure of Related Party Transactions as required
 under Section 134(3)(h) of the Companies Act, 2013 in Form AOC-2 is not
 Web-link for Policy on Materiality of Related Party Transactions & also
 on Dealing with Related Party Transactions has been provided in the
 Report on Corporate Governance, which forms part of the Annual Report.
 25.7 Significant and material orders passed by the regulators or courts
 or tribunals impacting the going concern status and company''s
 operations in future: NIL
 25.8 Adequacy of internal financial controls with reference to the
 financial statements: The Company has in place adequate internal
 financial controls with reference to financial statements. During the
 year, such controls were tested and no reportable material weakness in
 the design or operation was observed.
 25.9 Loans and Investments
 Details of Loans and Investments covered under the provisions of
 Section 186 of the Companies Act, 2013 forms part of financial
 statement, attached as a separate section in the Annual Report FY
 25.10 Sexual Harassment of Women at Workplace
 The Company has in place a Policy on Prevention, Prohibition and
 Redressal of Sexual Harassment of Women at Workplace in line with the
 requirements of the Sexual Harassment of Women at the Workplace
 (Prevention, Prohibition & Redressal) Act, 2013.  Internal Complaints
 Committee (ICC) has been set up to redress complaints received
 regarding sexual harassment. All employees (permanent, contractual,
 temporary, trainees) are covered under this policy.  In association
 with the National Commission for Women, PMI has taken the initiative to
 conduct Gender Sensitization workshops for building a Collaborative
 Work Culture across your Company.  In these workshops, the employees,
 both male and female, are sensitized and made aware about issues and
 laws pertaining to sexual harassment as well as appropriate behavior at
 the workplace. During 2014-15, PMI has conducted 8 such workshops
 across the organization covering 260 employees.  One complaint of
 sexual harassment was received during the year 2014-15, which was
 25.11 Procurement from MSEs
 The Government of India has notified a Public Procurement Policy for
 Micro and Small Enterprises (MSEs), Order 2012. In terms of the said
 policy, the total eligible value of annual procurement of goods
 produced and services rendered by MSEs (including MSEs owned by SC/ST
 entrepreneurs) during the year 2014-2015 was Rs.140 crore. The total
 procurement made from MSEs (including SC/ST entrepreneurs) was
 Rs.317.12 crore.
 25.12 Particulars of Employees
 As per provisions of section 197(12) of the Companies Act, 2013 read
 with the Rule 5 of the Companies (Appointment and Remuneration of
 Managerial Personnel) Rules, 2014, every listed company is required to
 disclose the ratio of the remuneration of each director to the median
 employee''s remuneration and details of employees receiving remuneration
 exceeding limits as prescribed from time to time in the Directors''
 Report.  However, as per notification dated 5th June, 2015 issued by
 the Ministry of Corporate Affairs, Government Companies are exempted
 from complying with provisions of Section 197 of the Companies Act,
 2013. Therefore, such particulars have not been included as part of
 Directors'' Report.
 25.13 Extract of Annual Return:
 Extract of Annual Return of the Company is annexed herewith as Annexure
 ''VI'' to this Report.
 25.14 Information on Number of Meetings of the Board held during the
 year, composition of committees of the Board and their meetings held
 during the year, establishment of vigil mechanism/ whistle blower
 policy and web-links for familiarization/ training policy of directors
 and Policy for determining ''Material'' Subsidiaries have been provided
 in the Report on Corporate Governance, which forms part of the Annual
 24.15 Para on development of risk management policy including therein
 the elements of risks are given elsewhere in the Annual Report.
 25.16 No disclosure or reporting is required in respect of the
 following items as there were no transactions on these items during the
 year under review:
 1.  Issue of equity shares with differential rights as to dividend,
 voting or otherwise.
 2.  Issue of shares (including sweat equity shares) to employees of the
 Company under any scheme.
 The particulars of annexures forming part of this report are as under:
 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
 Statistical information on persons                            IV
 belonging to Scheduled Caste/
 Scheduled Tribe categories
 Information on Physically Challenged                           V 
 Extract of Annual Return                                      VI
 Annual Report on CSR Activities                              VII
 Project Wise Ash Utilisation                                VIII
 Business Responsibility Report for the                        IX 
 year 2014-15
 Secretarial Audit Report in Form MR-3                          X
 Shri Anil Kumar Singh, JS (Thermal), Ministry of Power has joined as
 Government Nominee Director of the Company with effect from October 31,
 2014.  Consequent upon superannuation of Shri N.N. Misra
 onOctober31,2014,Shri K.K. Sharma has taken over as Director (Operations)
 with effect from November 1, 2014.
 Consequent upon completion of three years'' tenure, Shri S.B. Ghosh
 Dastidar and Shri R.S. Sahoo have ceased to be the Independent Director
 w.e.f.  August 25, 2014 and Shri Ajit M. Nimbalkar and Shri S.R.
 Upadhyay have ceased to be the Independent Director w.ei. January
 19,2015.  Further, upon completion of three years'' tenure, Ms.  H.A.
 Daruwalla, Shri AN. Chatterji and Prof. Sushil Khanna have ceased to be
 the Independent Director w.ei. February 27, 2015.
 The Board wishes to place on record its deep appreciation for the
 valuable services rendered by Shri S.B. Ghosh Dastidar, Shri R.S.
 Sahoo, Shri N.N.  Misra, Shri Ajit M. Nimbalkar, Shri S.R. Upadhyay,
 Ms.  H.A. Daruwalla, Shri AN. Chatterji and Prof. Sushil Khanna during
 their association with the Company.  In accordance with Section 152 of
 the Companies Act, 2013 and the provisions of the Articles of
 Association of the Company -Shri AK. Jha and Shri U.P. Pani shall
 retire by rotation at the Annual General Meeting of your Company and,
 being eligible, offers themselves for re-appointment.
 As required under Section 134 (5) of the Companies Act, 2013, your
 Directors confirm that:
 1.  in the preparation of the 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 2014-15 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, 2013 for safeguarding the assets of
 the company and for preventing and detecting fraud and other
 4.  the Directors had prepared the Annual Accounts on a going concern
 5.  the Directors, had laid down internal financial controls to be
 followed by the company and that such internal financial controls are
 adequate and were operating effectively; and 6. the Directors had
 devised proper systems to ensure compliance with the provisions of all
 applicable laws and that such systems were adequate and operating
 The Directors of your Company acknowledge with deep sense of
 appreciation, the cooperation received from the Government of India,
 particularly the Prime Minister''s Office, Ministry of Power, Ministry
 of Finance, Ministry of Environment, Forests & Climate Change, Ministry
 of Coal, Ministry of Petroleum & Natural Gas, Ministry of Railways,
 Department of Public Enterprises, Central Electricity Authority,
 Central Electricity Regulatory Commission, Comptroller & Auditor
 General of India, Appellate Tribunal for Electricity, State
 Governments, Regional Power Committees, State Utilities and Office of
 the Attorney General of India.  The Directors of your Company 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
                                                (Dr.Arup Roy Choudhury)
                                          Chairman & Managing Director
                                                        (DIN: 00659908)
 Place: New Delhi 
 Date: 30th July, 2015
Source : Dion Global Solutions Limited
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