The Directors are pleased to present the 38th Annual Report and the
audited financial statements for the year ended March 31, 2014.
Financial Year 2013-14 has been yet another year of achievements for
your Company. With the addition of 1,835 MW capacity (including 610 MW
through JV Companies) during the year, your Company crossed 43,000 MW
capacity reaching a total capacity of 43,108.31 MW. Major highlights
for the year are:
- Commissioned solar plants of 65 MW capacity during the year. With the
commercialization of 20 MW Rajgarh Solar Power Project on 30.04.2014,
cumulative solar capacity of 95 MW has already been commissioned, which
is a substantial contribution to renewable energy.
- Declared 2,675 MW (including 1,110 MW through JV Companies) on
commercial generation. Total commercial capacity of NTPC group has
become 41,879 MW.
- Average PLF of 81.50% as against all India PLF of 65.55% with four
stations recording more than 90% PLF.
- Exceeded the Capital expenditure (CAPEX) target of Rs.20,200 crore.
CAPEX target was Rs. 21,797.24 crore as against the previous years
target ofRs. 19,925.53 crore.
- 100% realization of current bills from customers.
- Recorded total income of Rs. 74,707.82 crore, an increase of 8.5% as
compared to Rs. 68,855.81 crore in the FY 2012-13. Net profit after Tax
(PAT) of Rs. 10,974.74 crore against previous years PAT of Rs.12,619.39
crore. (PAT for financial year 2012-13, includes a write-back of
provision of Rs.835.97 crore and an Exceptional item of income of
Rs.1,684.11 crore towards interest. Both these relates to payment towards
settlement of dues of erstwhile DESU).
- Dividend of Rs.5.75 per share (total Rs.4,741.15 crore) which comprises
interim dividend of Rs. 4.00 per equity share paid in February 2014 and
recommendation for final dividend of Rs. 1.75 per equity share for the
year 2013-14, subject to approval of the shareholders.
- Coal Supply Agreements signed for 14,010 MW capacity commissioned/ to
be commissioned between April 2009 to March 2015.
- Operation started on Inland Waterways Transportation of Imported Coal
for Farakka station and about 2 lac MT imported coal has been supplied
through this mode to Farakka.
- Issued Tax-free, Secured, Redeemable Non-Convertible Bonds having tax
benefits under Section 10 (15) (iv) (h) of the Income Tax Act, 1961
for an aggregate amount of Rs.2,250 crore. Out of Rs.2,250 crore, bonds of
Rs.1,750 crore were issued to the public through the Stock Exchanges,
which received over-whelming response and was over- subscribed by 3.7
times and bonds of Rs.500 crore were issued under private placement.
- Excellent MOU rating by Government of India for the year 2012-13.
- NTPC was the only PSU among the top 35 companies, ranked 6th in the
prestigious study of The Economic Times and Great Place to Work
Institute for 2013 covering 550 companies, 22 industries and close to
1 lac employees.
You will appreciate the fact that even amid the general down turn in
the economy and market (including the financial markets), the company
demonstrated the tremendous investor confidence enjoyed by it and
recorded excellent performance despite the challenge before the sector.
1. FINANCIAL RESULTS
Revenue Rs. Crore US $ Mn* Rs. Crore US $ Mn*
Net Revenue from Operations
(including Energy Sales, 72,018.93 11,882.35 65,737.04 10,845.91
Consultancy, Energy consumed
Other Income 2,688.89 443.64 3,118.77 514.56
Total Revenue 74,707.82 12,325.99 68,855.81 11,360.47
Fuel 45,829.71 7,561.41 41,018.25 6,767.57
Employee Benefits Expense 3,867.99 638.18 3,415.96 563.60
Finance Costs 2,406.59 397.06 1,924.36 317.50
amortization expense 4,142.19 683.41 3,396.76 560.43
& other expenses 4,543.85 749.69 4,235.68 698.84
Prior period items (net) 12.84 2.12 (29.72) (4.90)
Total Expenses 60,803.17 10,031.87 53,961.29 8,903.04
Profit before Tax and
exceptional items 13,904.65 2,294.12 14,894.52 2,457.43
Exceptional items - - 1,684.11 277.86
Profit before tax 13,904.65 2,294.12 16,578.63 2,735.29
Tax Expense 2,929.91 483.40 3,959.24 653.23
Profit for the year 10,974.74 1,810.71 12,619.39 2,082.06
Rs. Crore US $ Mn* Rs. Crore US $ Mn*
Transfer to bond
redemption reserve 576.08 95.05 492.79 81.31
Transfer to general
reserve 5,000.00 824.95 6,500.00 1,072.43
Transfer to capital
reserve 4.98 0.82 0.97 0.16
Interim dividend 3,298.19 544.17 3,092.07 510.16
Proposed dividend 1,442.96 238.07 1,649.09 272.08
Tax on dividend 804.74 132.77 781.87 129.00
*1US $= Rs. 60.61 as on March 31, 2014
2. OFFER FOR SALE TO EMPLOYEES
In terms of CCEAs approval dated 26.11.2012 and Department of
Disinvestments communication dated 26.06.2013, Offer for Sale of
NTPCs Equity Shares by Government of India to the Eligible Employees
was successfully concluded and the proceeds amounting to
Rs.48,16,38,656/- was credited to the account of Government of India. A
total of 34,83,320 shares were allotted to 3,407 employees.
Consequent upon sale of shares from Government of India to the eligible
employees, the equity holding of Government of India in NTPC has
reduced to 74.96% from 75%.
3.1 Interim and Final Dividend:
In addition to interim dividend of Rs. 4.00 per equity share paid in
February 2014, your Directors have recommended a final dividend of Rs.
1.75 per equity share for the year 2013-14. With this the total
dividend for the year is Rs.5.75 per equity share of Rs.10/- each. In the
year 2012-13 also, the total dividend paid was Rs.5.75 per equity share
of Rs.10/- each (including special dividend of Rs.1.25 per share).
The total dividend payout is 43.20% and the total dividend payout
including dividend tax is 50.53% of profit after tax. The final
dividend shall be paid after your approval at the Annual General
The dividend has been recommended in accordance with your Companys
policy of balancing dividend pay-out with the requirement of deployment
of internal accruals for its growth plans.
Your Directors believe that growth of the company through capacity
addition, backward and forward integration and strategic diversifi
cation of its operations would lead to increase in shareholders value.
4. OPERATIONAL PERFORMANCE
During the year, the power stations of your Company generated 233.284
BUs (248 BUs including JVs) of electricity (including solar power)
which was 24.26% (25.80% including that generation by JVs) of the total
power generated in India (without Bhutan import).
The total power generated by the Company has registered an increase of
0.54% over the previous years generation of 232.028 BUs. The total
generation contributed by coal stations is 220.700 BUs during the year
against generation of 212.329 BUs last year registering a growth of
Generation from coal based units could have been still higher but due
to less generation schedule there was generation loss of 23.083 BUs.
The coal based stations of your company operated at average Plant Load
Factor (PLF) of 81.50% (All India PLF 65.55%) and average Availability
Factor of 90.32% on bus bar during the year. During the year, 4 coal
based stations out of 16 achieved more than 90% PLF.
The gas stations having a capacity of 4,017 MW achieved annual
generation of 12.569 BUs at a PLF of 35.72% as against 19.699 BUs last
year mainly due to less generation schedule which accounted for a
generation loss of 20.652 BUs. The average declared capacity of gas
based stations for the year was 95.24% as compared to 93.14% during
Management Discussion and Analysis Report
Management Discussion and Analysis Report for the year under review, as
stipulated under Clause 49 of the Listing Agreement with the Stock
Exchanges in India and as per Guidelines on Corporate Governance for
CPSEs issued by Department of Public Enterprises, GOI, is presented in
Annex-I to this Report.
5. COMMERCIAL PERFORMANCE
5.1 Billing and Realisation
Your Company has realized 100% payment of current bills raised for sale
of power, thus achieving this feat for the eleventh consecutive year.
Most of the customers were making their payments within 60 days of
billing and had established LCs at 105% of the average monthly billing.
The Company has realized Rs.2,520.08 Crore (Rs. 835.97 crore as principal
and Rs. 1,684.11 crore as interest and surcharge) towards DESU dues
payable by Government of NCT of Delhi.
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 2013-14, graded rebate was given to those customers who were
making due payment upto 55th day of billing. The Rebate Scheme for
2014-15 has been modifi ed to align with CERC Regulations for 2014-19
keeping other provisions similar to 2013-14.
5.3 Commercial Capacity:
The following units were declared commercial during the year 2013-14,
adding 2,675 MW (including 65MW of solar capacity) to commercial
capacity of your Company:
Project/ Unit Capacity COD*
NTPC Units- Coal Based (I)
Rihand-III, Unit#2 500 27.03.2014
Vindhyachal-IV, Unit#2 500 27.03.2014
Mauda-I, Unit#2 500 30.03.2014
Total (I) 1,500
NTPC Units-Renewable Energy Units (II)
Ramagundam Solar PV 10 29.01.2014
Talcher Solar PV 10 28.03.2014
Faridabad Solar PV 5 31.03.2014
Unchahar Solar PV 10 31.03.2014
Rajgarh Solar PV 30 31.03.2014
Total (II) 65
NTPCs JV Units- Coal Based (III)
Jhajjar, Unit#3 (JV with IPGCL 500 26.04.2013
Vallur, Unit#2 (JV with 500 25.08.2013
Kanti, Unit#1 (subsidiary of 110 01.11.2013
NTPC in JV with BSPGCL)
Total (III) 1,110
Total Capacity declared 2,675
commercial during 2013-
14(incl. JVs) (I)+(II)+(III)
* COD- Commercial Operation Date
Further, after the close of financial year 2013-14, 20 MW capacity of
Rajgarh Solar PV was declared commercial on 30.04.2014.
5.4 Tariff Regulations:
Central Electricity Regulatory Commission (CERC) has issued the CERC
(Terms and Conditions of Tariff) Regulations, 2014 on 21.02.2014, which
are applicable for the period 01.04.2014 to 31.03.2019. The tariff of
electricity generated from NTPC stations would be determined by CERC
based on these regulations for the above mentioned period. The salient
features of Tariff Regulations 2014-19 are discussed in the Management
Discussion and Analysis Report.
Being aggrieved on certain provisions of the CERC (Terms and Conditions
of Tariff) Regulations, 2014, your Company has filed a writ petition
before the Honble High Court of Delhi.
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 refl ected in the Core Values of your Company (BE
COMMITTED) which emphasize Customer Focus as one of the key values of
Under CRM, your Company has designed and executed several structured
activities with the objective of sharing of experiences, capturing the
feedback and expectations. Based on the feedback received from the
customers, the Company provides various support services to them,
identifi es potential areas of cooperation and shares best practices
with the customer utilities. During 2013-14, 62 such services were
provided to the customers on the basis of the requirement expressed by
Your Company conducted Power Meet with top level officials and
Business Partner Meets with middle level officials of beneficiaries
to discuss various issues and sharing of experiences. In 2013-14, Power
Meet was organized with the top officials of Southern Region benefi
ciaries and 4 Business Partner Meets were conducted with 9 benefi
ciaries of different regions.
Besides the above, NTPC has rolled out a Customer Satisfaction Index
(CSI) Survey for gathering customers feedback and responding to their
requirements. This initiative serves as a useful tool for further
strengthening Customer Relationship and better appreciation of our
5.6 Other Activities:
250 MW power has been allocated by the Ministry of Power from the
unallocated quota of NTPC stations for export to Bangladesh through
6. INSTALLED CAPACITY
6.1 Installed Capacity of NTPC Group:
During the year 2013-14, your Company added 1,835 MW as per details
Project/ Unit installed during Capacity (MW)
Coal Based Power Projects
Barh-II, Unit#4 660
Rihand, Unit # 6 500
Renewable Energy Projects
Ramagundam Solar PV 10
Unchahar Solar PV 10
Talcher Kaniha Solar PV 10
Faridabad Solar PV 5
Rajgarh Solar PV 30
Under JVs (Coal Based Power Projects)
Kanti (subsidiary of NTPC in JV with 110
Vallur (JV with TANGEDCO), Unit# 3 500
Addition during FY 2013-14 1,835
With above capacity addition during 2013-14, capacity added in the fi
rst two years of 12th Plan Period has reached 6,005 MW against 12th
Plan target of 14,038 MW.
The total installed capacity of the NTPC Group was 41,184 MW as on
31.03.2013. For gas based power projects, till now the capacity was
indicated based on Net Guaranteed Output as per Main Plant Specifi
cations. It has been revised to capacity at Generator Terminal w.e.f.
01.04.2014. Accordingly, the installed capacity as on 01.04.2014 has
become 43,108.31 MW as tabulated below:
Owned by NTPC MW
Coal based projects 33,015.00
Gas based projects 4,017.23
Renewable Energy Projects 75.00
Joint Ventures & Subsidiaries
Coal based projects 4,034.00
Gas based projects 1,967.08
7. CAPACITY ADDITION PROGRAM
Your Company has adopted a multi-pronged growth strategy which includes
capacity addition through green field projects, brown field
expansions, joint ventures and acquisitions, towards its journey to
become the world class integrated power major.
In addition to furthering capacity addition through Coal and Gas based
power projects, your Company has been pursuing enhancement of its power
generation portfolio through Hydro, Renewable Energy and Nuclear energy
7.1 Projects under Implementation
Your Companys various projects having aggregate capacity of 22,434 MW
including 4,690 MW, being undertaken by Joint Venture companies are
under implementation as on 31.03.2014. This includes 20,900 MW through
coal based projects, 1,534 MW through renewable energy projects,
comprising 1,499 MW through hydro capacity and 35 MW through solar
energy. The details of such projects are as under:
Ongoing Projects as on 31.03.2014 (MW)
I. NTPC owned:
A. Coal Based Projects
1. Bongaigaon, Assam 750
2. Barh-I, Bihar 1,980
3. Barh-II, Unit V, Bihar 660
4. Lara-I, Chattisgarh 1,600
5. North Karanpura, Jharkhand 1,980
6. Kudgi-I, Karnataka 2,400
7. Gadarwara-I, Madhya Pradesh 1,600
8. Vindhyachal-V, Madhya Pradesh 500
9. Mouda-II, Maharashtra 1,320
10. Solapur, Maharashtra 1,320
11. Darlipalli, Odisha 1,600
12. Unchahar, Uttar Pradesh 500 Sub Total (A) 16,210
B. Renewable Energy Projects
B1. Hydro Electric Power Projects (HEPP)
13. Koldam, Himachal Pradesh 800
14. TapovanVishnugad, Uttarakhand 520
15. LataTapovan, Uttarakhand 171
16. Singrauli CW Discharge (Hydro), Uttar 8
Sub Total (B1) 1,499
B2. Solar Energy Projects
17. Rajgarh Solar PV, Madhya Pradesh* 20
18. Singrauli Solar PV, Uttar Pradesh 15
Sub Total (B2) 35
Total I (A)+(B1)+(B2) 17,744
II Projects under JVs & Subsidiaries Coal
19. Nabinagar- JV with Railways, Bihar 1,000
20. Muzaffarpur Expansion (MTPS)–
Subsidiary of NTPC in JV with BSPGCL, Bihar 390
21. Nabinagar, JV with BSPGCL, Bihar 1,980
22. Meja, JV with UPRVUNL, Uttar Pradesh 1,320
Total II 4,690
III Total On-Going Projects as on 22,434
*Subsequently declared commercial on 30.04.2014
7.2 New Projects
Currently, your Company has projects for 6,800 MW capacity under
bidding. Feasibility Reports of 17,900 MW capacity have already been
approved by your Board and project development activities are in
various stages of completion.
Further, West Bengal State Government has approved transfer of the
proposed 2X800 MW Coal Based Katwa Project from West Bengal Power
Development Corporation Limited to NTPC and your Board has also
approved the proposal for taking over the Project.
7.3 New Technology
To meet the challenges of fulfilling Indias 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, effi cient and
clean technologies for entire value chain of power generation business.
Your Company is planning to set up coal fi red units with ultra
supercritical parameters targeting effi ciency comparable to best
available technology in the world. It is planning to establish
integrated gasifi cation combined cycle for high ash Indian coal. It
has planned to implement 100MWe IGCC Technology Demonstration Project
at NTPC Dadri. The plant is intended to be implemented in two stages
with Stage-I comprising installation and stabilization of coal gasifi
er, gas clean up and other associated systems and Stage-II comprising
gas turbine combined plant. Stage-II shall be implemented after
successful completion and stabilization of Stage-I.
Your Company has adopted several new technologies, system and practices
including combined cycle gas- fi red power stations, Merry-Go-Round,
Distributed Digital Control & Management Information System, High
Voltage Direct Current transmission, Sliding Pressure Operation of SG,
Dry Ash Extraction and Disposal, 765 KV Switchyard, Ash Water
Recirculation System, Liquid Waste Management System, Performance
Analysis and Diagnostic Optimization, Tunnel Boring Machines and Super
Critical Technologies. Three (03) numbers Super critical units of 660
MW are already under operation at Sipat-I where steam parameters are
247 kg/cm2/537oC/565oC. For all the new sub-critical 500 MW units also,
reheat temperature has been increased to 565oC resulting in 0.7% gain
in effi ciency over conventional sub-critical 500 MW units.
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 which will have enhanced effi ciency of
around 46% and about 15-20% less CO2 emission as compared to
conventional 500 MW sub-critical thermal power plants. The program is
targeted to deliver a plant having 800 MW unit with steam parameters of
310 kg/ sq cm-710oC/720oC at super heater outlet and 720oC at re-heater
Your Company has taken an initiative for hybrid solar thermal plant of
about 3.6 MW by integration of solar heat with 210 MW coal based unit
at Dadri. Solar heat is being integrated along with feed heaters in the
turbine cycle for conversion of solar heat to electrical power by
utilizing it in existing steam cycle of 210 MW. Once integrated, this
will reduce coal consumption, thereby reducing CO2 emissions.
7.4 Project Management
Your Company has an established state-of-the-art IT enabled Project
Monitoring Centre (PMC) for facilitating fast track project
implementation. PMC has advanced features like Web-based Milestone
Monitoring System (Webmiles), Project Review and Internal Monitoring
System (PRIMS), Enterprise-wide Issues Tracking System, etc. PMC
facilitates monitoring of key project milestones and also acts as
decision support system for the management.
PMC is 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.
It has helped in providing effective coordination between the agencies
and has provided enhanced/ effi cient monitoring of the projects
leading to better, faster and holistic approach to project
7.5 Capacity addition through Subsidiaries and Joint Ventures (JVs)
Besides adding capacities on its own, your Company develops power
projects through its subsidiaries and joint ventures, both in India and
abroad. Details of Joint Ventures abroad are covered under the heading
The information of Indian Subsidiaries and JV Companies along with
details of partners of joint ventures for capacity addition is given
Further, an MOU has been signed on 22.02.2014 among NTPC, Bihar State
Power Generation Company Limited (BSPGCL) and Lakhisarai Bijlee Company
Private Limited for implementation of 2X660 MW Kajra Coal based power
project at Lakhisarai, Bihar. The project is proposed to be developed
as a Joint Venture Company between NTPC and BSPGCL.
7.6 Hydro Power
7.6.1 Your Company is setting up hydro projects for increasing its
footprints in renewable energy development by developing Koldam Hydro
Electric Power Project (800 MW), Tapovan Vishnugad HEPP (520MW), Lata
Tapovan HEPP (171MW) and Rammam HEPP (120 MW).
Koldam HEPP is under construction on river Satluj at Barmana, district
Bilaspur, Himachal Pradesh. Three units are targeted to be commissioned
in Feb-March 2015. 124.054 hectares of forest land in the submergence
area of reservoir is falling under Majathal Wild Life area for which
Supreme Court of India has already accorded clearance. Proposal for
diversion of 44.9585 hectares of this land is in process for Forest
Advisory Committee (FAC) clearance.
For Rammam HEPP Stage-III (120 MW), construction of approach roads and
bridges for power house and barrage has been completed. Award of
contract for barrage and part of head race tunnel package are held up
for want of investment approval for which PPA is required. PPA
documents have been submitted to WBSEDCL for approval.
Though construction work was in progress in Tapovan – Vishnugad HEPP,
Uttarakhand and Lata Tapovan HEPP, Uttarakhand, due to fl ash fl oods
in June 2013, there was devastation in the projects which affected
their schedule. After this devastation, Supreme Court of India had
directed Ministry of Environment and Forests (MOEF) constituted a
committee for review of all 24 proposed hydro projects in Uttarakhand,
as included in report of Wildlife Institute of India. This included
Lata Tapovan HEPP also. Based on the recommendation of the committee
constituted by MOEF in this regard, Supreme Court of India in the
hearing on 07.05.2014, had directed to stop the construction at Lata
Tapovan HEPP till further orders. Since Lata Tapovan HEPP was under
construction, review petition has been submitted for modifi cation of
order to the extent that the said order may be waived for Lata Tapovan
Also, on 31.03.2014, Regional Offi ce of MOEF, Lucknow had directed
Government of Uttarakhand that project developers should apply for
obtaining clearance from National Board for Wildlife as the projects
were falling within 10km periphery of Nandadevi National Park. Your
company had submitted proposal for both the projects with Dy.
Conservator of Forest, Nandadevi on 30.04.2014.
Loharinag Pala HEPP had been discontinued on the advice of Ministry of
Power. The Empowered Committee constituted by GOI for the purpose of
settling the claims had approved reimbursement of Rs. 536.30 crore in fi
rst Phase to NTPC, which has been received by the Company. As
liabilities of the contractors are increasing day by day due to non-
settlement of claims in time, Ministry of Power has been requested to
constitute a Settlement Commission with single point responsibility
to evaluate and settle claims of all the contractors. Further,
Government of Uttarakhand has identifi ed Uttaranchal Jal Vidyut Nigam
Limited as nodal agency for taking over the closed project on
as-is-where-is basis in terms of the MOU signed between NTPC and
Government of Uttarakhand.
7.6.2 Hydro Engineering
In pursuance of Memorandum of Agreement signed with Govt. of Mizoram,
Detailed Project Report of Kolodyne-II HEPP (4X115MW) prepared by
Central Water Commission for Govt. of Mizoram and updated by NTPC has
been cleared by Central Electricity Authority.
7.7 Capacity Addition through other Renewable Energy Sources
Your Company is adding capacity through renewable sources of energy as
it offers environmentally clean power.
Your Company plans to broad-base its generation mix to ensure long term
competitiveness and mitigation of fuel risks and promotion of
sustainable power development.
In pursuit of these objectives, 75 MW Solar power capacity has already
been commissioned till 31.03.2014 and 20 MW solar capacity has been
further added on 30.04.2014. 15 MW capacity solar power projects is
presently under execution, details of which are given under the heading
A Joint Venture Company among NTPC Limited, Asian Development Bank and
Kyuden International Cooperation, Japan under the name PAN-ASIAN
Renewables Private Limited was incorporated to develop projects
portfolio of about 500 MW of renewable power generation resources in
India. Though, the company was searching for another strategic investor
for investing in the Company, it could not fi nd the same.
Your Company has signed an MOU with Chattisgarh Renewable Energy
Development Agency (CREDA) for development of Tatapani Geothermal
project. Another MOU has been signed with Geological Survey of India
for detailed study and analysis for preparation of feasibility report.
8. STRATEGIC DIVERSIFICATION- INCREASING SELF- RELIANCE
8.1 In order to strengthen its competitive advantage in power
generation business, your Company has diversifi ed 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 other subsidiary companies are as under:
8.2.1 NTPC Electric Supply Company Limited, a wholly owned subsidiary
of NTPC was incorporated to foray into the business of distribution and
supply of electrical energy as a sequel to reforms initiated in the
power sector. The Company is implementing Rajiv Gandhi Gramin
Vidyutikaran Yojna projects on turnkey basis and undertakes turnkey
execution of sub-stations for utilities and also takes up project
The Company is making continuous efforts for acquisition of
distribution circles through various modes including franchisee bidding
This subsidiary is carrying business of retail distribution of power in
various industrial parks developed by Kerala Industrial Infrastructure
Development Corporation (KINFRA), through its Joint Venture Company
namely KINESCO Power and Utilities Private Limited, formed with KINFRA.
8.2.2 NTPC Vidyut Vyapar Nigam Limited (NVVN), a wholly owned
subsidiary is involved in power trading, sale of fl y ash and
During the year 2013-14, the Company transacted business with various
state electricity boards spread all over the country and traded 9,322
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 05.10.2013.
The Company has also been designated as the Nodal Agency for purchase
of grid connected solar power upto 1000 MW as a part of Phase-I of
JawaharLal Nehru National Solar Mission. The total solar capacity
commissioned till 31.03.2014 under JNNSM Phase-I is 548 MW which
includes 498 MW of Solar PV Projects and 50 MW of Solar Thermal
8.3 In order to strengthen its competitive advantage in power
generation business, the Company has diversifi ed into the area of
manufacturing through the following joint ventures:
8.3.1 NTPC-BHEL Power Projects Pvt. Limited (NBPPL), a joint venture
with BHEL was incorporated for taking up activities of engineering,
procurement and construction (EPC) of power plants and manufacturing of
equipments. The manufacturing plant of NBPPL is being set up at
Mannavaram, Tirupati in Andhra Pradesh for CHP and AHP.
The Company is executing EPC contracts for balance of plants packages
of Palatana Combined Cycle Power plant in Tripura, 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.
8.3.2 BF-NTPC Energy Systems Limited was incorporated with Bharat Forge
Limited to manufacture castings, forgings, fittings and high pressure
piping required for power projects and other industries.
As in the recent past thermal power capacity addition program has
suffered a major setback 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, this JVC is being
8.3.3 Your Company has acquired 44.6% stake in Transformers And
Electricals Kerala Limited (TELK) from Government of Kerala on June 19,
2009. The Company deals in manufacturing and repair of Power
Transformers. TELK order booking as on 31.03.2014 was Rs.142.59 crore and
the total turnover of the Company was Rs.166.07 crore in the financial
Please refer to Management Discussion and Analysis, Annexure-I
included as a separate section to this report for further details of
subsidiary and joint venture companies of NTPC.
9. GLOBALISATION INITIATIVES
9.1 Trincomalee Power Company Limited (TPCL), a 50:50 joint venture
Company between NTPC 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. All major agreements like Power
Purchase Agreement, Implementation Agreement and Board of Investment
Agreement have been signed. NTPC has been appointed as the Owners
Engineer for the project. TPCL is taking necessary actions for
obtaining environmental clearance for the project from Central
Environment Authority of Sri Lanka. Public Utilities Commission of Sri
Lanka has granted electricity license to TPCL in May 2014.
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. All major project
arrangements like Power Purchase Agreement and Implementation Agreement
have been signed. The Company has appointed its Owners Engineer.
Project activities at site have commenced.
10. NTPC Consultancy Wing: As a result of the phenomenal success
achieved by your Company in executing its own power projects, many
utilities from India and abroad approach NTPC to benefit from the rich
experience gained by your Company. With this in view, NTPC formally
established a Consultancy Wing in 1989. Since then, this wing has been
receiving orders from domestic and international clients. Consultancy
Wing is now recognized as consultant of repute by several leading
domestic and international development and financial institutions and
clients. It offers services like Engineering Services, Operation &
Maintenance Management Services, Project Management Services, Contracts
& Procurement Management Services, Quality Management Services,
Training & Development Services etc.
Consultancy Wing has provided various services in international markets
in Gulf countries, Bangladesh, Nepal, Sri Lanka and Bhutan. The
services include consultancy for training, design review, review
engineering, supervision of erection, testing & commissioning,
performance monitoring, due diligence, operation of plant, construction
of sub-stations, preparation of feasibility reports, site selection,
site specific studies etc for various projects. The international
projects include 2X660 MW Khulna Power Project at Bangladesh and 2X250
MW Trincomalee Coal Power Project at Sri Lanka. This Wing is also
providing O&M Management Services to 2X120 MW Siddhirganj Peaking Power
Plant of Electricity Generation Company of Bangladesh under a World
Bank funded contract. It has also recently signed a contract for
providing entire Owners Engineer Services for proposed 2X250 MW
Trincomalee Coal Power Project at Sri Lanka.
On the domestic front too, Consultancy Wing has been effectively
sharing its expertise with State and Central PSUs and private
11. FINANCING OF NEW PROJECTS
The capacity addition programs shall be fi nanced with a debt to equity
ratio of 70:30. Your directors believe that internal accruals of the
Company would be suffi cient to fi nance 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
During the year 2013-14, term loan agreements of Rs.5,775 crore were
entered into including loan agreement of Rs.2,000 crore each executed
with Bank of India and IDFC Limited. The cumulative amount of domestic
loans tied up till March 31, 2014 was Rs.63,174.35 crore (excluding
undrawn loans short-closed as per agreements).
During 2013-14, an amount of Rs.7,750 crore was drawn from domestic banks
and the cumulative drawl upto 31st March 2014 was Rs.51,504.35 crore.
Your Company tied-up two loan facilities with Japan Bank for
International Cooperation (JBIC) and a commercial bank for USD 350
million and JPY 8,021 million for its Kudgi project and renovation &
modernization of Auraiya Gas Power Station respectively. The Company
also signed three facility agreements with Kfw for an aggregate amount
of Euro 202 million to part fi nance the capital expenditure on retrofi
t of Electrostatic Precipitators of Tanda Stage-II.
In pursuance of CBDT Notifi cation No. 61/2013/F. No. 178/37/2013 –
(ITA.I) dated 08.08.2013, Ministry of Finance allocated tax free bonds
of Rs.1,750.00 crore to the Company to be raised during financial year
2013-14. The Company made public issue of tax free bonds amounting to
Rs.1,750.00 crore during December 2013. Further, tax free bonds amounting
to Rs.500.00 crore was also issued on private placement basis in
pursuance to CBDT Notifi cation No. 11/2014 F.No. 178/9/2014- (ITA.1)
For the first time, taxable bonds amounting to Rs.750.00 crore were
issued directly on private placement basis to Employees Provident
Fund Organisation, which invests through its fund managers. The total
bonds issued during financial year 2013-14 aggregated to Rs.3,000.00
12. FIXED DEPOSITS
The cumulative deposits received by your Company from 71 depositors as
at March 31, 2014 stood at Rs.0.52 crore. Further, an amount of Rs.0.18
crore has not been claimed on maturity by 11 depositors as on March 31,
Your Company has discontinued the acceptance of fresh deposits and
renewals of deposits under NTPCs Public Deposit Scheme with effect
13. FUEL SECURITY
13.1 During the year, the supply position of coal and gas is given as
13.1.1 Coal Supplies
During Financial Year 2013-14, your Company has signed long term Fuel
Supply Agreements (FSA) with subsidiaries of Coal India Limited (CIL)
for 14,010 MW including 4,390 MW of JVs for units commissioned after
31st March 2009 and expected to be commissioned by 31st March 2015.
Amendments in FSA have been made to FSA-2009 and FSA-2012 pertaining to
Useful Heat Value to Gross Calorifi c Value migration and Third Party
The Company has signed short term MOU for one year with The Singreni
Collieries Company Limited for supply of 3.5 MMT of coal for Ramagundam
and Simhadri stations. Another short term MOU for one year has been
signed with Eastern Coalfields Limited for supply of 5.0 MMT to
enhance coal supply at critical stations.
Coal linkage of North Karanpura STPP (1980 MW) with Central Coalfields
Limited, which was cancelled by Standing Linkage Committee (Long Term)
in 2008, has been restored.
13.1.2 Domestic Coal and Imported Coal
During 2013-14, your Company received 160.63 MMT of coal as against
155.06 MMT in 2012-13 marking an increase of 3.59%.
Total domestic coal supply during 2013-14 was 149.79 MMT as against
145.97 MMT during 2012-13. Out of 149.79 MMT of coal, 144.69 MMT was
from Annual Contracted Quantity of coal.
The total coal supply from CIL was 138.4 MMT and from SCCL was 11.4
MMT. 2.0 MMT of coal was procured through bilateral MOU during 2013-14.
During 2013-14, your Company imported 10.84 MMT of coal as against 9.09
MMT in 2012-13.
13.1.3 Sourcing of coal through E-auction
Your Company participated in 40 e-auctions for coal procurement during
the financial year 2013-14 in which total coal alloted was 4.76 MMT.
Total coal received through e-auction was 3.2MMT during 2013-14 as
compared to 0.23MMT during 12-13.
13.1.4 Supply through Inland Waterways
During 2013-14, operation was started on inland waterways for
transportation of imported coal for Farraka station. About 2 lac MT
imported coal has been supplied through this mode to Farakka station.
13.2 Gas supplies
During 2013-14, your Company received 6.87 MMSCMD of gas and RLNG as
against 10.67MMSCMD received during 2012-13. The gas off-take in
2013-14 includes 6.72 MMSCMD of gas and 0.15 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.
The agreements for KG D6 gas with RIL/Niko/BPEAL expired on 31.03.2014.
Now, RIL has forwarded a term sheet for supply of KG D6 gas beyond
31.03.2014 which is under discussion. The entire existing KGD6
production is being supplied to fertilizer sector in line with
Empowered Group of Ministers/ MOP&NG directive to supply KG D6 gas as
per sectoral priority basis. The supplies to the power sector became
NIL from March 2013 and shall pick up only after production is adequate
to meet the requirement of fertilizer and Liquifi ed Petroleum Gas
Your Company has been making arrangements for tie-up and supply of spot
RLNG or Fallback RLNG from domestic suppliers on reasonable endeavour
basis based on requirement and availability from time to time.
13.3 Development of Coal Mining projects
Your Company was allocated ten coal blocks by the Government of India
namely Pakri-Barwadih, Chatti- Bariatu, Kerandari, Talaipalli, Dulanga,
Chatti-Bariatu (South), Bhalumuda, Banai, Chandrabila and Kudanali-
Luburi with estimated geological reserves of about 5.7 billion tonnes
and production potential of about 100 million metric tonnes per annum
(MMTPA) which will cater to the requirement of 20,000 MW of generation
capacity of NTPC.
Detailed exploration is being carried out in Banai, Bhalumuda and
Chandrabila and exploration is going to start in Kudanali-Luburi.
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. Mining operations could not be
commenced mainly because of adverse law and order situation at project
site and non-cooperation of State Government. Also, a termination
notice has been served to Theiss, Mine Developer & Operator appointed
for Pakri-Barwadih, due to its poor performance.
In Chatti-Bariatu and Kerandari Coal Blocks, mining plan and mine
closure plans have been approved by the Ministry of Coal. For Kerandari
Coal Block, environment clearance and Stage-I forest clearance has been
accorded by Ministry of Environment and Forests. For Chatti-Bariatu,
environment clearance and both Stage-I and Stage-II forests clearances
have been accorded. The Mine-developer-cum-operator has been appointed
for Chatti-Bariatu. NIT has been issued in March 2014 for appointment
of the Mine-developer- cum-operator for Kerandari Coal Mine Block.
In Dulanga and Talaipalli Coal Mining Block, mining plan and mine
closure plans have been approved by the Ministry of Coal. For
Talaipalli Coal Block, environment clearance and both Stage-I and
Stage-II forest clearance have been accorded by Ministry of Environment
and Forests. For Dulanga Coal Block, environment clearance and Stage-I
forest clearance have been accorded by Ministry of Environment and
Forests. For Dulanga Coal Block, NIT shall be published shortly for
appointment of the Mine-developer-cum-operator.
A joint venture company is proposed to be formed between NTPC and Jammu
& Kashmir State Power Development Corporation Limited (J&KSPDCL) for
development of Kudanali-Luburi coal block in Odisha which has been
jointly allocated to NTPC and J&KSPDCL.
Your Company has formed the 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.
13.4 Exploration Activities
In Cambay exploration block allotted under NELP- VIII, held by NTPC as
operator with 100% participating interest, 3D Seismic Data Acquisition
and processing and interpretation of data has been completed. Based on
the results, locations have been identifi ed for drilling of
exploratory wells. Exploration drilling is planned in 2014-15.
In the other three blocks, in each of which NTPC has 10% participating
interest and Oil and Natural Gas Corporation Limited is the operator,
exploration activities are in progress. Drilling of an exploratory well
has commenced from March 2014 in one of the blocks in KG basin.
14. BUSINESS EXCELLENCE: GLOBAL BENCHMARKING
In pursuit of actualizing our vision and with a view 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
This model has been deployed at our Business Units (Stations) and we
carry out assessment of generating stations using this framework of
The assessment process is aimed at identifying the areas for enhancing
stakeholders engagement, accelerating critical processes and
developing leadership potential.
The outcome of this model is identifi cation of organizational
strengths, opportunities for improvement, issues of concern and best
In the financial year 2013-14, the 4th cycle of assessment was
completed in which 21 generating stations were assessed by a team of
certifi ed and profi cient assessors. Business Excellence Awards for
Best Performance to Ramagundam and Runner-up shield to Unchahar
stations were presented by the Secretary (Power), GOI and Chairperson,
CEA in the Indian Power Conference- 2014 held at New Delhi.
As a next step on the Journey of Excellence, the company is planning to
implement Corporate Performance Measure and Dashboard initiative to
enhance overall strategic focus and speed.
Other TQM initiatives and techniques like Quality Circles, Professional
Circles, 5S, integrated management system (IMS) etc have been deployed
across the organization for continuous improvement. Our Quality Circle
teams of workmen have been consistently representing NTPC at national
and international Quality Circle conventions and bringing many laurels.
In the year 2013-14, Jyotikiran Quality Circle from Faridabad CCPP
represented NTPC in the International Convention of Quality Control
Circle (ICQCC-2013) held at Tapie, Taiwan. Team Jyotikiran presented
their case study titled Interruption in Natural Gas Supply to Gas
Turbines and won Excellence Award. Total 300 Quality Circles from
13 countries participated in this convention.
15. RENOVATION & MODERNISATION
15.1 Need for R&M:
In the present scenario of severe resource constraint, Renovation and
Modernization (R&M) of power plants is considered to be the best option
for bridging the gap between demand and supply of power, as R&M schemes
are cost effective. It increases the 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.
Keeping in view the ageing of the fl eet over the years, investment
approval accorded for R&M in 19 stations (Coal & Gas based) is Rs.10,993
crore till 31.03.2014. As against this, cumulative expenditure till
31.03.2014 was Rs.4,610 crore. Out of this, R&M capital expenditure in FY
2013-14 alone was Rs.1,162.37 crore.
With a view to removing technological obsolescence, renovation of
control & instrumentation (C&I) is in progress in Singrauli-II, Korba
–I & II, Ramagundam -I & II, Farakka- II, Dadri Thermal- I, Unchahar- I
and Talcher STPS I. On completion of these schemes, the C&I systems in
these stations will be brought nearly on par with the new power
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 2 out of
4 Gas Turbines (GT) in Kawas and 1 out of 3 GT in Gandhar. In Auraiya,
the GT R&M package has been awarded and implementation is planned in
2014-15, in addition to the next GT in Kawas and Gandhar.
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-II,
Singrauli-I & II, Farakka-I, Unchahar-I, Korba-I & II, Rihand-I,
Vindhyachal-I & II, Talcher STPS –I and Talcher TPS-II. In 2013-14,
investment approval was accorded for R&M of ESP of Talcher STPS-II,
award of which is in progress.
In the coming years, life extension of coal based stations on
completion of 25 years is planned for Singrauli-II, Korba- II,
Ramagundam- II, Vindhyachal- I, Farakka- I, Rihand- I and Unchahhar- I
units, aimed at extending their useful life and capturing the benefit
of latest technological advancements.
The taken-over stations of Tanda and Talcher TPS continued their
superior performance levels in 2013-14 on account of R&M intervention.
The PLF of Tanda was 92.80% and the PLF of Talcher TPS was 95.02%
16. HUMAN RESOURCE MANAGEMENT
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. The
over-all Man-MW ratio for the year 2013-14 excluding JV/subsidiary
capacity is 0.63 and 0.58 including capacity of JV/ Subsidiaries.
Generation per employee was 9.96 MUs during the year based on
generation of NTPC stations.
The total employee strength of the company stood at 25,013 as on
31.3.2014 against 25,484 as on 31.3.2013.
Fiscal 2014 Fiscal 2013
Number of employees 23,411 23,865
Subsidiaries & Joint
Employees of NTPC
in Subsidiaries & Joint 1,602 1,619
Total employees 25,013 25,484
The attrition rate of the NTPC executives (including Executive Trainees
and those posted in Subsidiaries and JVs) during the year was 1.68%.
16.2 Employee Relations
The Company takes pride in its greatest resource and asset, the
employees. The human resource has been the backbone of the Company, in
contributing towards the success of the Company and sustaining the same
over the years. As a commitment towards the Companys 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 others efforts in
furthering the interest of the company as well as its stakeholders,
signifying and highlighting over-all harmony and cordial employee
relations prevalent in the Company.
16.3 Safety and Security
NTPC recognizes and accepts its responsibility for establishing and
maintaining a safe working environment for all its employees and
associates. Occupational health and safety at workplace is one of the
prime concerns of NTPC Management and utmost importance is given to
provide safe working environment and inculcate safety awareness among
the employees. Your Company has a 3-tier structure for occupational
health and safety management, namely at site at Regional Headquarters
and at Corporate Centre.
All our stations are certifi ed with OHSAS-18001/IS-18001 (Occupational
Health and Safety Management System). Regular plant inspection and
review with Head of Project, internal safety audits by our own safety
offi cers of various sites and external safety audits by reputed
organizations are carried out at each site every year. Recommendations
of auditors are regularly reviewed and complied with.
Cross Functional Safety task force for O&M and construction projects
are functional at all sites to monitor working conditions at site and
their rectifi cation, if required.
Height permit and height check list are implemented to ensure safety of
workers at high elevations. Adequate numbers of qualifi ed safety offi
cers are posted at all units as per statutory rules and provisions to
look after safety of people and property.
For strict compliance and enforcement of safety norms and practices,
safety clauses are included in General Conditions of Contract.
To mitigate on-site emergencies at all operating stations, effective
engineering controls are provided to indicate and handle emergency
situation. Detailed emergency plans have been developed and
responsibilities are assigned to each concerned to handle emergency
situations. Mock drills are conducted regularly to check healthiness of
Many of our plants have been awarded with prestigious safety awards
conferred by various Institutions and Bodies like Ministry of Labour &
Employment, Govt. of India, National Safety Council, Institution of
Engineers (India) and Greentech Foundations in recognition of
implementing innovative safety procedures and practices.
Concrete steps are being taken for upgrading surveillance systems at
all of our projects/ stations by installing state-of- the-art security
systems. Security and Coordination Group interact with MHA, IB and CISF
as well as the State/ District level authorities to augment the
security preparedness in our establishment/ power installations.
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. The business scenario in our country is changing with new
legislations like the fair compensation, R&R and Land Acquisition Act,
Companies Act, 2013 and your Company is committed to add large
capacities in this changing scenario. Considering the imperative of
upgrading the capability in project management, an Integrated
Project Management framework is being developed through international
faculties for achieving competitive advantage, besides entering into a
long term institutional tie-up with IIM-Indore in this area. A similar
tie-up has been done with IIM-Ahmedabad for knowledge creation.
Apart from this, the usual programs include topics on power project
execution, operation & maintenance, ash dyke management, environment
management, advanced welding technologies for super critical boilers,
performance enhancement of existing plants, electrical protections and
relays, information technology and general management areas.
Presently, there are 25 ITIs with which your Company is associated.
NTPC has adopted 17 existing Govt. ITIs out of which 14 ITIs have been
adopted under the PPP scheme of GoI and 3 Govt. ITIs have been adopted
under bilateral agreement with different State governments. Moreover,
NTPC is also setting up 8 new ITIs near its plants/stations. 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 31.03.2014, a total of 19,377 students have benefited by
taking admission in these ITIs. For these ITI students, NTPC organised
total 23,459 mandays of industrial training/plant visits. Due to all
these, your Company has been conferred The Education Excellence Award
2013 for its Skill Development Initiative.
During 2013-14, your Company organized a number of training programmes
in power and energy related areas which, inter-alia, included an
Integrated Conclave on Data Analytics, Business Intelligence, Action
Research & Cases in Dubai, a need-based Workshop on Knowledge
Management in Goa and hands-on training of 197 participants on the 660
MW supercritical simulator at PMI.
Your Company has also formulated Corporate Governance Training Policy
as per the requirement of DPE Guidelines on Corporate Governance for
imparting training to the Directors. In order to give an impetus to
developing leadership orientation at senior Management level, PMI
conducted a conclave for NTPC Board members (Directors & CMD) called
SIR (Strategic Institutional Renewal) program. PMI also partnered with
BHEL to conduct the SMILE (Strategic Management Initiative for
Leadership Effectiveness) program for Executive Directors of NTPC and
BHEL, conducted consecutively for second year to orient the
participants toward cutting edge leadership and strategic thinking. In
addition, newly promoted General Managers of the Company were also
subjected to an intensive program on developing cross-functional
insights and developing Boundary Management skills.
PMI conducted 429 training programmes during 2013-14 with a participant
base of 10,811. The training mandays clocked were 37,493.
PMI also conducted 20 training programmes through video conferencing to
reach out in one go, to large audiences in remote sites in 2013-14. In
addition to this methodology and in order to take training a further
step closer to the employees, PMI this year introduced training through
Web Conferencing, whereby an employee can undergo training at his or
her workstation itself. PMI conducted 3 training programs through this
platform during 2013-14.
17. SUSTAINABLE DEVELOPMENT
Corporate Sustainability is a business approach that creates long-term
consumer and employee value by creating a green strategy aimed
towards the natural environment and taking into consideration every
dimension of how a business operates in the social, cultural and
economic environment. The sustainability agenda of your Company
addresses all aspects related to sustainable development and promotes
leadership in environmental management, social responsibility and
economic performance (triple bottom line approach).
Your Company has prepared its Sustainability Report 2012-13 based on
various initiatives taken in area of environment, economic, labour
practices, human rights, society and product responsibility. The report
was in line with internationally accepted Global Reporting Initiative
guidelines. The report has been assured by an independent external
Business Responsibility Report is attached as Annex-X and forms part of
the Annual Report.
Initiatives by the Company
Your Company has developed a Policy on Sustainable Development in
accordance with which a sustainable development plan was prepared for
the year 2013- 14. It mainly covers area of waste management, water
management, bio-diversity conservation, energy management and promotion
of renewable energy, life-cycle studies and reduction in air emissions.
Major activities carried out under this plan included plantation of
more than 4 lac saplings in and around NTPC plants, installation of
roof top solar PV, solar street lights at various stations,
rehabilitation of water body, rain water harvesting, installation of
bio-methanation plant, vermin composting, other techniques for
conversion of domestic waste in organic fertilizer, studies like
pollutant source apportionment, human health risk assessment and
environment impact assessment.
A total expenditure of Rs. 18.58 crore was incurred on these Sustainable
Development Projects during the Financial Year 2013-14.
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.
CSR has been synonymous with NTPCs core business of power generation.
NTPCs spirit of caring and sharing is embedded in its mission
statement. NTPC has a comprehensive Resettlement & Rehabilitation (R&R)
policy covering community development (CD) activities which has been
revised and updated from time to time. CD activities in green field
area are initiated as soon as project is conceived and thereafter
extensive community / peripheral development activities are taken up
along with the project development. A separate CSR- Community
Development Policy, formulated in July 2004 and revised in August 2010
in line with DPE guidelines, covers a wide range of activities
including implementation of key programmes through a trust NTPC
Your Company, being a member of Global Compact Network, India, confi
rms its involvement in various CSR activities in line with 10 Global
Compact principles and shares its experience with the representatives
of the world through Communication on Progress. It submits its
Communication on Progress (COP) to UN Global Compact on regular basis.
A report on progress made in this area is enclosed at Annex- VIII to
Expenditure incurred towards CSR Activities:
A total expenditure of Rs.109.77 crore was incurred towards Corporate
Social Responsibility expenses during the Financial Year 2013-14, which
was 0.87% of the net profit after tax of the previous year.
Your Company received Golden Peacock Award 2013 for CSR, Appreciation
Certifi cate from ASSOCHAM CSR Excellent Award 2013 and Special Jury
Commendation from FICCI CSR Award 2012-13.
17.1.2 NTPC Foundation
NTPC Foundation is engaged in serving and empowering the physically
challenged and economically weaker sections of the society.
Initiatives undertaken by the Company are covered under Annex-VII to
17.1.3 Rehabilitation & Resettlement (R&R)
Your Company is committed to help the people affected by its projects
and has been making all its efforts to improve the socio-economic
status of Project Affected Persons (PAPs). In order to meet its social
objectives, your Company is focusing on effective R&R of PAPs and
undertaking community development activities in and around the
Land availability for bulk tendered projects for which award was placed
during the year was ensured through proactive redressal of R&R issues.
Initial community development (ICD) activities in the area of Health,
Education, Sanitation, Drinking water, Infrastructure facilities etc
for Bilhaur project was approved after consultation with the
stakeholders and for Khargone project, provisions for ICD activities
was enhanced during the year. Implementation of earlier approved ICD
activities continued at Barethi, Darlipali, Gajmara, Khargone, Jhajjar,
Nabinagar (BRBCL) and Nabinagar (NPGC) projects.
R&R activities and CD activities in the area of in the area of Health,
Education, Sanitation, Drinking water, Infrastructure facilities,
capacity building etc were implemented at the new Greenfield projects
after finalization of respective R&R Plan in consultation and
participation of the stakeholders at Gadarwara, Lata-Tapovan and
Dulanga projects. Provisions under R&R Plans was enhanced for North
Karanpura, Tapovan-Vishnugad, Pakri-Barwadih, Chatti-Bariatu and
Kerandari projects. At other thermal, hydro and coal mining projects
like Barh, Bongaigaon, Dadri, Kanti, Korba, Kudgi, Lara, Mouda,
Solapur, Tanda, Vallur, Vindhyachal, Koldam, Talaipalli projects, R&R
activities continued throughout the year.
For the benefits of project affected persons and neighbouring
population, Mobile Health Clinic was deployed by Kudgi and Nabinagar
(NPGC) projects. Toilets have been constructed for PAPs at Kudgi and
Khargone projects. Drinking water facility has been augmented for
supplying of water for project affected villages at Solapur project.
Socio-economic Survey (SES) for Bilhaur, Mouda-II and Gajmara is in
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. Around 12-15% of
the project cost is spent on various environment protection equipments.
To meet the environmental challenges of 21st century and beyond, the
Company has adopted sound environment management practices and advanced
environment protection system to minimize impact of power generation on
Your Company has adopted advanced and high effi ciency technologies
such as super critical boilers for 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 CO2
emissions per unit of generation thereby reducing global warming.
17.2.1 Control of Air Emissions: High effi ciency Electro- static
Precipitators (ESPs) with effi ciency 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. Also,
massive R&M program is being undertaken to upgrade air pollution
equipments to reduce SPM emissions.
NOX control in plants is achieved by controlling its production by
adopting best combustion practices. Since tall stacks are provided in
coal stations, NOx emitted through stacks is widely dispersed and
diluted. In gas based stations, NOx control systems (hybrid burners or
wet DeNOx) have been provided for good combustion practices.
Fugitive emission from ash pond is controlled by maintaining water
cover, tree plantation on abandoned ash ponds, water spray 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 Effl uent
called Ash Water Recirculation System (AWRS) and closed cycle condenser
cooling water systems with higher Cycle of Concentration (COC), rain
water harvesting wherever possible and reuse of treated sewage effl
uent for horticulture purposes are some of the measures implemented in
most of the stations. All these measures have resulted in reduction of
effl uent discharge from the power plants of NTPC.
17.2.3 Ash Management: Ash dykes in the stations have been engineered
to ensure that all safety and environmental issues are addressed at
design stage itself.
Multi-lagoon ash ponds with provision of over-fl ow lagoons and ash
pipe garlanding arrangement for change over of ash slurry feed points
have been provided for effective settlement of ash particles.
Water sprinklers have been provided in the ash pond areas for spraying
water in dried up portion of lagoons for control of fugitive dust.
Efforts are made to maximize utilization of ash through use of Dry Ash
Extraction System (DAES).
Unutilized ash is sent to ash pond by making ash slurry. The decanted
water in Ash Pond is recycled back with the help of Ash Water
Recirculation System (AWRS) for making ash slurry again, leading to
reduction in water consumption.
17.2.4 Automation of environment measurement system: 67 continuous
ambient air quality monitoring stations (AAQMS) have been installed to
capture the real time data and access thereof viz., PM 10, PM 2.5, SOx,
NOx and access has been provided to the Central Pollution Control Board
and State Pollution Control Boards. Additional ozone analyzers for
ambient air are also being provided at the stations. Continuous
Emission Monitoring Systems (CEMS) to monitor SOx, NOx and CO2 in all
its units on real time basis are being installed in all existing units
of the Company. For all the upcoming projects, real time monitors for
ambient air and emissions are included in the engineering packages
during design stage itself.
17.2.5 Environmental Studies: Your Company has taken a number of
studies for better environment protection and to develop strong
scientifi c database.
17.2.6 Tree Plantation: Your Company has planted about 21 million trees
till date in and around its projects as a measure of massive
The afforestation has not only contributed to the aesthetics but also
helped in carbon sequestration by serving as a sink for CO2 released
from the stations and thereby protecting the quality of ecology and
environment in and around the projects.
17.2.7 ISO 14001 & OHSAS 18001 Certifi cation: NTPCs stations have
been certifi ed 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 a quality assurance and inspection division which
mainly focuses on quality assurance in every aspect like quality and
timely supplies for large capacity units. It continues to emphasize the
strict implementation of quality systems in construction as well as in
operations of all the projects/ stations. Regular quality system audits
are undertaken at our project construction sites to ensure continuous
improvements in implementation of quality system improvements.
Your company has now added four overseas inspection offi ces at Japan,
China, Germany and Vietnam.
A recent initiative has been undertaken by your Company to improve the
procurement of critical/ bulk spares for power stations, to ensure
quality and reliability of spares and standard quality plans for 30
such spares have been prepared by QA&I Department.
Your Company is represented on various technical committees of ISO and
IEC and is actively contributing in formulation and updation of power
sector technical and quality standards/ guidelines.
17.4 Clean Development Mechanism (CDM)
Your Company is undertaking climate change issues proactively.
The methodology for super critical technology prepared by NTPC viz.
consolidated base line and monitoring methodology for new grid
connected fossil fuel fi red power plants using less GHG intensive
technology has been approved by United Nations Frame Work Convention
on Climate Change (UNFCCC) under Approved Consolidated Methodology 13
Two of its solar projects namely 5MW each solar PV project at Dadri and
Port Blair, Andaman & Nicobar had already been registered with UNFCCC.
Another two projects namely 5MW solar PV project at Faridabad and 8MW
Small Hydro Power Project at Singrauli are in advanced stage of
validation for submission to UNFCCC for CDM registration. Verifi
cation/ issuance of CERs for 5 MW solar power PV project at Dadri and
5MW solar power PV project at A&N are in process.
In addition, your companys projects namely North Karanpura, Tapovan
Vishnugad HEPP, energy effi ciency projects at Singrauli and Dadri have
got host Country Approval from National CDM Authority.
17.5 Ash Utilisation
During the year 2013-14, 57.83 million tonnes of ash was generated and
25.37 million tonnes of ash had been utilized for various productive
purposes. This was 43.88% of the total ash generated.
Important areas of ash utilization are – cement & asbestos industry,
ready mix concrete plants (RMC), road embankment, mine fi lling, ash
dyke raising & land development. 7.19 million tonnes of ash has been
issued to cement, RMC and other industries in the financial year
Pond ash from all stations of NTPC is being issued free of cost to all
users. Fly ash is also being issued free of cost to fl y ash/ clay-fl y
ash bricks, blocks and tiles manufacturers on priority basis over the
other users from all NTPC coal based thermal power stations. The funds
collected from sale of ash is being maintained in a separate account by
NTPC Vidyut Vyapar Nigam Limited, a wholly-owned subsidiary company of
NTPC and the same is being utilized for development of infrastructure
facilities, promotion and facilitation activities to enhance ash
The quantity of ash produced, ash utilized and percentage of such
utilization during 2013-14 from NTPC Stations is at Annex-IX.
17.6 RURAL ELECTRIFICATION
NTPC, through its wholly owned subsidiary NESCL, is carrying out the
implementation of rural electrifi cation work in 5 States namely Madhya
Pradesh, Chhattisgarh, Odisha, Jharkhand and West Bengal under
Government of India, fl agship program, Rajiv Gandhi Grameen
Vidyutikaran Yojana (RGGVY). During this period, 1,442 villages were
electrifi ed and 24,742 Below Poverty Line (BPL) connections were
provided. The cumulative achievement till 31st March 2014 is 33,807
villages and 26,27,485 BPL connections.
17.7 CenPEEP – towards enhancing effi ciency and protecting Environment
NTPC initiated a unique voluntary program of GHG emission reduction by
establishing Center for Power Effi ciency and Environmental Protection
(CenPEEP) and under this program, it is estimated that over 37 million
tons of CO2 has been avoided since 1996.
CenPEEP is also coordinating the implementation of Perform, Achieve &
Trade (PAT) Scheme under Prime Ministers National Mission on Enhanced
Energy Effi ciency (NMEEE) in NTPC where all 22 stations of NTPC are
designated Consumers (DC). Based on gap analysis, a joint action plan
is prepared with Station for improvement of effi ciency and auxiliary
power to achieve the PAT targets in the year 2014-15.
Thrust has been given to effi ciency improvement & auxiliary power
reduction through strategic initiatives of Energy Effi ciency
Management System (EEMS), Energy management System (EMS), Energy Audit
System and reliability improvement through Knowledge Based
Maintenance systems. Optimization of cooling tower performance and
air-preheater has also been taken up as thrust area. Leveraging the use
of information technology, new initiatives have been taken with
installation of on - line systems such as Thermal Loss Analyser (TLA)
and System Energy Effi ciency Display (SEED) for tracking and gap
analysis of heat rate and auxiliary power consumption. These systems
assist the operator and facilitate the trending of degradation of
equipment performance and formulation of action plans for improvement.
Evaluation has also been done for use of performance diagnostics
off-line tool based on first principle energy / mass balance to help
in effi ciency and capacity gap analysis and performance baselining of
some of the NTPC units thereby enhancing skill for problem analysis.
Under Indo-US bilateral program Partnership to Advance Clean Energy –
Deployment (PACE-D) being implemented with support of USAID,
assessment of effi ciencies has been done for two State utilities
namely Haryana and Maharashtra and action plans were formulated for
them. A Best practices manual for super critical units has been
prepared jointly with US experts and was released by Secretary (Power)
Govt of India on the occasion of NTPC International O&M Conference
2014. Work on benchmarking methodology document, coal blending
impact studies and pilot program on Advanced Pattern recognition (APR)
is underway with the help of US experts.
18. NETRA – R&D Mission in Power Sector
NTPC Energy Technology Research Alliance (NETRA), the research &
development wing of NTPC focuses on areas of effi ciency & availability
improvement; cost reduction; renewable and alternative energy source;
climate change & environment protection; and providing scientifi c
support to utilities.
Research Advisory Council (RAC) of NETRA comprising eminent scientists
and experts from India and abroad is in place to steer research.
Scientifi c Advisory Council (SAC) with Executive Directors as its
members provides directions for undertaking specific applied research
projects aimed to develop techniques in power plant for effi cient,
reliable and environment friendly operation with emphasis on reducing
cost of generation. The meetings for both these Advisory Councils were
In order to provide maximum possible benefit to the stations, many
projects/activities have been undertaken for implementation like waste
Flue gas based air conditioning system for control rooms at Ramagundam,
Computational Fluid Dynamics (CFD) modeling based plant improvement in
boiler and CW system for increasing effi ciency and reducing auxiliary
power consumption, robotic inspection of boiler pressure parts, PDC-RVM
based expert system for transformer condition monitoring etc.
Development of many in-house products/technologies is in advance stage
like NETRA e Power Plant Solution (NePPS) based on Artifi cial
Intelligence Software for real time plant performance monitoring,
optimization & diagnostic, Flue gas utilization for pH reduction of
re-circulating ash pond water at Ramagundam etc. NETRA continued to
provide scientifi c support to all NTPC stations as well as many other
utilities stations in the area of oil/water chemistry, environment,
electrical, Rotor dynamics etc for effi cient performances.
Some state-of-the-art facilities established for condition monitoring
and diagnostic techniques include frequency scanning eddy current
system for evaluation of coating on gas turbine blades; portable
automated ball indentation for evaluation of in-situ mechanical
properties; eddy current array, Time of Flight Diffraction technology
for rapid, reliable, accurate inspection of weldments of high pressure
and high temperature pipeline and headers, Energy Dispersive X-Ray
Fluoresce, Frequency Domain Spectroscopy, Simultaneous Thermal
Analyzer, Particle Counter (NAS Value) etc.
NTPC has inked an umbrella MOU with Indian Institute of Science,
Bangalore to promote research in CFD, renewable, water chemistry, ash
Agreement has been signed with KFW, Germany for setting up of (i)
Advanced Test and Qualifi cation Centre for Concentrating Solar Thermal
DLR Germany (ii) Advance pilot test setup for 91kwp concentrating solar
PV and PV characterization test lab with ISE-Fraunhofer, Germany.
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-II NETRA infrastructure is under construction with approx 21,000
sq m fl oor area and is expected to be completed in FY 2014-15. Phase
II will have 30 laboratories, workshop, pilot plant bay and an
auditorium with seating capacity of 400 persons.
NETRA organized National Workshops during 2013-14 in the area of
Sensors for Power Plant Process & Equipment, Metallurgical Aspects in
Power Plants, Condition monitoring and Life Assessment of Transformers,
and also Coordinated International Conference on Advance Technologies
& Best Practices for Super Critical Thermal Plants under PACE-D
Technical Assistance Program.
19. IMPLEMENTATION OF OFFICIAL LANGUAGE
Your Company has taken several steps for the propagation and
implementation of Offi cial language Hindi in the Company. The
progress of usage of Hindi was inspected and proper suggestions were
given to the Heads of the Offi ces. The quarterly meetings of the Offi
cial Language Implementation Committee were held to review the
implementation of Hindi in the organization.
Hindi Diwas and Hindi Competitions were organized from 1st to 13th
September, 2013 in the Corporate Offi ce as well as in all the Projects
and Regional HQ of NTPC. NTPC Limited received All India Indira Gandhi
Rajbhasha Second Prize from Honble President of India, Shri Pranab
Mukherjee. Various Hindi workshops and Hindi Computer Training were
conducted for the employees. Your Company organized Akhil Bhartiya
Rajbahsha Sammelan for Power Sector Undertakings on 9th May, 2013.
Annual Rajbhasha Conference for the Heads of Rajbhasha was held on 10th
& 11th May, 2013.
All offi ce 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. Two issues of half-yearly Hindi magazine
Vidyut Swar was published to promote creative writing in Hindi.
Your Companys 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 Offi cer, a nominee of
Central Vigilance Commission. The CVO reports to the Central Vigilance
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 mechanism. The Vigilance
Department submits its report to the Competent Authority and also to
the Board of Directors.
Surprise checks are being conducted in various departments and recovery
is being made against discrepancies, if any, found. Vigilance
department issued various circulars for improvements in systems like
import of coal, material handling, single tender awards, owner issue
materials, utilization of non-moving items etc. A total of 146
vigilance complaints were received during the year, out of which 82
complaints have been resolved and balance 64 complaints are under
various stages of investigations.
As per the directive of DOPT/ MOP, the property returns of all the
executives have been published on NTPC Website.
20.2 Workshops and Vigilance Awareness Week
Preventive Vigilance Workshops are being conducted every year to
sensitize employees about DOs and DONTs in work areas and their role
in preventing corruption. 19 such workshops were held across NTPC in
which 529 employees participated.
Vigilance awareness week was observed from October 28, 2013 to November
2, 2013 across all NTPC projects and sites.
20.3 Implementation of Integrity Pact
Your Company is committed to have total transparency to its business
processes and as a step in this direction; it signed a Memorandum of
Understanding with Transparency International India in December, 2008.
The Integrity Pact is being implemented for all contracts having value
exceeding Rs. 10 crore. Two Independent External Monitors have been
nominated by the Central Vigilance Commission for all contracts with
value exceeding Rs. 100 crore. Regular meetings are being organized with
Independent External Monitors.
20.4 Implementation of various policies/ circulars
20.4.1 Fraud Prevention Policy
The Fraud Prevention Policy has been formulated and implemented in your
Company since 2006. The cases referred by the nodal offi cers are being
investigated immediately to avoid fraudulent behaviors as defi ned in
the Fraud Prevention Policy.
20.4.2 Complaint Handling Policy
Vigilance department has formulated and implemented Complaint Handling
Policy w.e.f. 01.08.2013 which contains the procedure for handling
various complaints lodged with the department.
20.4.3 Whistle Blower Policy
Whistle Blower Policy has been issued to build and strengthen a culture
of transparency and trust in the organization and to provide employees
with a framework/ procedure for responsible and secure reporting of
improper activities within the company and to protect employees who
raise concern about improper activities/ serious irregularities.
21. RIGHT TO INFORMATION
Your Company has implemented Right to Information Act, 2005 in order to
provide information to citizens and to maintain accountability and
transparency. The Company has put RTI manual on website for access to
all citizens of India and has designated a Central Public Information
Offi cer (CPIO), an Appellate Authority and APIOs at all sites and offi
ces of NTPC.
During 2013-14, 1,226 applications were received under the RTI Act, out
of which 1,171 applications were replied to.
22. USING INFORMATION AND COMMUNICATION TECHNOLOGY FOR PRODUCTIVITY
NTPC has implemented an Enterprise Resource Planning (ERP) package
covering maximum possible processes across the organization including
subsidiaries. In addition to the core business processes and Employee
Self Service (ESS) functionality, the ERP solution also includes
e-procurement, Knowledge Management, Business Intelligence, Document
Management, Workfl ow 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
A state-of-the-art main data center with centralized server facility to
cater to the needs of entire Company is located at Noida. There is a
disaster recovery center at Hyderabad as a full back up for real time
changeover in case of any emergency.
Videoconferencing (VC) facility is widely used for management reviews/
training/ deliberations among locations. The facility has also been
augmented to hold VC with external agencies in secured manner.
In order to improve upon effi ciency and bringing transparency in
procurement process in NTPC, e-procurement process using SRM module of
ERP is widely used.
An emergency response system (ERS) has been deployed and hosted
centrally at Noida to cater to different requirements of sending
information to the employees using SMS services and emergency alerts
during Voice Calls.
Various other applications have been developed to take care of RTI,
Parliament Questions Management, legal system, transit camp booking
NTPC tender website www.ntpctender.com is being regularly used for
publishing all open tenders on the Internet. Additional Website
www.ntpcexemployees. co.in for facilitating superannuated employees
has also been hosted.
The Information Technology department at Corporate Center Noida has
been awarded certifi cate in recognition of the organizations Quality
Management System which complies with ISO 9001:2008 for Providing IT
23. NTPC GROUP: SUBSIDIARIES AND JOINT VENTURES
Your Company has currently 4 subsidiary companies and 21 joint venture
companies for undertaking specific business activities.
NTPC Hydro Limited, a wholly owned subsidiary of NTPC has been merged
with NTPC Limited on 18.12.2013 in terms of Section 391-394 of the
Companies Act, 1956.
The names of Subsidiaries and Joint Venture Companies and the
percentage of your Companys shareholding in these Companies as on
31.03.2014 are as follows:
The performance of these companies as well as the consolidated fi
nancial statements are briefl y discussed in the Management Discussion
& Analysis section. The financial statements of subsidiary companies
along with the respective Directors Report are placed elsewhere in
this Annual Report.
24. INFORMATION AS PER COMPANIES (PARTICULARS OF EMPLOYEES) RULES,
As per provisions of Section 217 (2A) of the Companies Act, 1956 read
with the Companies (Particulars of Employees) Rules, 1975, every
company is required to provide particular of employees in the
Directors Report exceeding the stipulated remuneration limit(s).
However, as per notifi cation dated 31.03.2011 issued by the Ministry
of Corporate Affairs, amending provisions of said rules, Government
Companies are exempted from including such particulars in the
As your Company is a Government Company, such particulars have not been
included in the Directors Report. Any member desirous of obtaining
such particulars may write to the Company Secretary at the Registered
Offi ce of the Company or download them from the website
www.ntpc.co.in. Such particulars shall also be made available to the
shareholders on a specific request made by them during the course of
Annual General Meeting to be held on 27.08.2014.
25. STATUTORY AUDITORS
The Statutory Auditors of your Company are appointed by the Comptroller
& Auditor General of India. M/s O.P. Bagla & Co., K.K. Soni & Co., PKF
Sridhar & Santhanam, V. Sankar Aiyar & Co., Ramesh C. Agrawal & Co. and
A.R. & Co.were appointed as Joint Statutory Auditors for the financial
26. MANAGEMENT COMMENTS ON STATUTORY AUDITORS REPORT
The Statutory Auditors of the Company have given an unqualifi ed report
on the accounts of the Company for the financial year 2013-14. They
have drawn attention towards Note-32 to the financial statements in
respect of the accounting of fuel on GCV based pricing system.
The issue has been adequately explained in Note 32 of the financial
statements of NTPC for FY 2013-14 referred to by the Auditors.
27. REVIEW OF ACCOUNTS BY COMPTROLLER & AUDITOR GENERAL OF INDIA
You would be pleased to know that for the fi fth year in a row your
organization has received NIL Comments on the Financial Statements
for the year from the Comptroller & Auditor General of India (C&AG).
As advised by the Offi ce of the C&AG, the comments of C&AG for the
year 2013-14 are being placed with the report of Statutory Auditors of
your Company elsewhere in this Annual Report.
28. COST AUDIT
As prescribed under the Cost Accounting Records (Electricity Industry)
Rules, 2001, the Cost Accounting records are being maintained by all
stations of the Company. The particulars of Cost Auditors as required
under Section 233(B) of the Companies Act, 1956 read with General
Circular No. 15/2011 dated 11.04.2011 issued by Ministry of Corporate
Affairs are given below:
The fi rms of Cost Accountants appointed for the financial year
2012-13 were (i) M/s Dhananjay V. Joshi & Associates, Pune,
Maharashtra, (ii) M/s Jugal K. Puri & Associates, Gurgaon, Haryana,
(iii) M/s Mandal Mukherjee Datta & Associates, Kolkata, West Bengal,
(iv) M/s S.C. Mohanty & Associates, Bhubhaneshwar, Orissa, (v) M/s V.P.
Gupta & Co., Noida, Uttar Pradesh and (vi) M/s Chandra Wadhwa & Co.,
The fi rms of Cost Accountants appointed for the financial year
2013-14 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 fi ling consolidated Cost Audit Report in XBRL format
for the financial year ended March 31,
2013 was September 27, 2013 and the consolidated Cost Audit Report for
your Company was filed with the Central Government on September 16,
The Cost Audit Report for the financial year ended March 31, 2014
shall be filed within the prescribed time period under the Companies
29. BOARD OF DIRECTORS
Dr. Pradeep Kumar, JS & FA, Ministry of Power has joined as Government
Nominee Director of the Company with effect from September 10, 2013 in
place of Shri Rakesh Jain who ceased to be the Director of the Company
w.e.f. July 9, 2013 consequent upon his transfer from Ministry of
Shri A.K. Singhal, Director (Finance) ceased to be the Director of the
Company w.e.f. October 9, 2013 consequent upon his appointment as
Member of the Central Electricity Regulatory Commission.
Consequent upon superannuation of Shri B.P. Singh on September 30,
2013, Shri S.C. Pandey has taken over as Director (Projects) with
effect from October 1, 2013.
Shri I.C.P. Keshari has ceased to be the Director of your Company
w.e.f. September 30, 2013 on ceasing to be the offi cial of Ministry of
Shri G. Sai Prasad, JS (Thermal), Ministry of Power had joined as
Government Nominee Director of the Company with effect from December 5,
2013. However, he has ceased to be the Director on the Board w.e.f.
June 16, 2014 consequent upon his transfer from Ministry of Power.
Shri Kulamani Biswal, Director (Finance), Mahanadi Coalfields Limited
has taken over the charge of the Director (Finance) of the Company with
effect from December 9, 2013.
The Board wishes to place on record its deep appreciation for the
valuable services rendered by Shri Rakesh Jain, Shri A.K. Singhal, Shri
B.P. Singh, Shri I.C.P. Keshari and Shri G. Sai Prasad during their
association with the Company.
In accordance with Section 152 of the Companies Act, 2013 and the
provisions of Article 41(iii) of the Articles of Association of the
Company – Shri I.J. Kapoor shall retire by rotation at the Annual
General Meeting of your Company and, being eligible, offers himself for
30. DIRECTORS RESPONSIBILITY STATEMENT
As required under Section 217(2AA) of the Companies Act, 1956, 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 2013-14 and of the
profit of the company for that period;
3. the Directors had taken proper and suffi cient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 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
31. INFORMATION PURSUANT TO STATUTORY AND OTHER REQUIREMENTS
Information required to be furnished as per the Companies Act, 1956,
Listing Agreement with Stock Exchanges, Government guidelines etc. is
annexed to this report as below:
Management Discussion & Analysis I
Report on Corporate Governance II
Information on conservation of energy, III
technology absorption and foreign
exchange earnings and outgo
Statement pursuant to Section 212 of the IV
Companies Act, 1956 relating to subsidiary
Statistical data of the grievance cases V
Statistical information on persons VI
belonging to Scheduled Caste / Scheduled
Information on Physically Challenged VII
UNGC - Communications on progress VIII
Project Wise Ash Utilisation IX
Business Responsibility Report for the year X
Your Directors acknowledge with deep sense of appreciation, the
co-operation received from the Government of India, particularly the
Prime Ministers Offi ce, Ministry of Power, Ministry of Finance,
Ministry of Environment & Forests, Ministry of Coal, Ministry of
Petroleum & Natural Gas, Ministry of Railways, the Planning Commission,
Department of Public Enterprises, Central Electricity Authority,
Central Electricity Regulatory Commission, Comptroller & Auditor
General of India, Appellate Tribunal for Electricity, State
Governments, Regional Power Committees, State Electricity Boards and
Offi ce of the Attorney General of India.
Your Directors also convey their gratitude to the shareholders, various
international and Indian Banks and Financial Institutions for the confi
dence reposed by them in the Company.
The Board also appreciates the contribution of contractors, vendors and
consultants in the implementation of various projects of the Company.
We also acknowledge the constructive suggestions received from
Government and Statutory Auditors.
We wish to place on record our appreciation for the untiring efforts
and contributions made by the employees at all levels to ensure that
the company continues to grow and excel.
For and on behalf of the Board of Directors
Place : New Delhi (Dr. Arup Roy Choudhury)
Date : 11th July 2014 Chairman & Managing Director