NTPC Directors Report, NTPC Reports by Directors


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Directors Report Year End : Mar '16    « Mar 15
Dear Members,
 The Directors are pleased to present the 40th Annual Report on the
 business and operations of the Company along with audited financial
 statements for the year ended March 31, 2016.
 Financial Year 2015-16 has been yet another year of achievements for
 your Company. With the addition of 2,255 MW capacity (including 445 MW
 through Subsidiary Companies) during the year, total installed capacity
 of your Company (including subsidiaries & JVs) as on 31.03.2016 was
 46,653 MW.
 With the commissioning of Anantpur Solar PV unit of 250 MW and takeover
 of Patratu Thermal Power Plant of 325 MW after 31.03.2016, capacity of
 your Company has become 47,228 MW as on 31.07.2016.
 Major highlights for the year 2015-16 are:
 - Power projects of 2,255 MW were commissioned.
 - Declared 1,960 MW Power Projects on commercial generation.
 - PLF of 78.61% as against all India PLF of 62.29% with three NTPC
 stations recording more than 90% PLF and 11 stations (including JV) in
 top 25 stations of the country.
 - Excellent MOU rating by Government of India for the year 2014-15.
 - Capital expenditure (CAPEX) for the year 2015-16 was Rs. 25,959.60
 crore (Stand-alone) as against the MoU target of Rs. 23,000.00 crore.
 Achieved Group Capex of Rs. 32,090.89 crore during FY 2015-16 against
 Rs. 28,289.56 crore during FY 2014-15.
 - 100% realization of current bills from customers.
 - Revenue from operations (Net) was Rs. 70,506.80 crore and total
 revenue was Rs. 71,696.07 crore.Net Profit after Tax (PAT) wasRs.
 10,242.91 crore.
 - Dividend of Rs. 3.35 per share comprising interim dividend of Rs.
 1.60 per equity share paid in February 2016 and recommended final
 dividend of Rs. 1.75 per equity share for the year 2015-16, subject to
 approval of the shareholders.
 - Cash contribution of Rs. 4,113.30 crore to Government of India''s
 exchequer through dividend, dividend tax, income tax and wealth tax in
 the financial year 2015-16.
 - Market capitalization of Rs. 1,06,242.81 crore as on 31.03.2016.
 - Construction of about 29,000 toilets in schools under Swachh Bharat-
 Swachh Vidyalaya Abhiyan.
 - Planted approx. 5.25 lac trees during 2015-16 to mitigate the GHG
 emissions arising out of plant operations, thereby bringing total to
 about 2.3 crore planted trees till end of 31.03.2016.
 - About 8 crore bricks produced by fly ash brick plants of NTPC
 stations, which are being utilised in plant and township.
 - Honoured with ASSOCHAM 1st Corporate Governance Excellence Award in
 listed PSUs category for the year 2014- 15.
 - Ranked No. 2 Independent Power Producer and Energy Trader Globally in
 the Platts Top 250 Global Energy Company Rankings 2015.
 - Adjudged 4th among the Asian electric utilities in 2016 rankings as
 per Forbes Global 2000.
 - Honoured with Dun & Bradstreet Corporate Awards 2016 for best
 performing Company in India in Power Sector.
 - For the year 2016, NTPC has been adjudged as the Best Company to work
 in the Public Sector Category in a study carried out by Great Place to
 Work and the Economic Times.
 - Bagged Golden Peacock Award for Excellence in Training from Institute
 of Directors for the year 2016.
 You will appreciate the fact that the company recorded growth and
 excellent performance despite numerous challenge before the sector.
                               2015-16                    2014-15 
 Particulars              Rs. Crore     US $ Mn*   Rs. Crore    US $ Mn*
 Net Revenue from 
 Operations (including 
 Energy Sales, 
 Consultancy,             70,506.80   10,539.13    73,236.94   10,947.23
 Energy consumed 
 Other income              1,189.27      177.77     2,100.42      313.96
 Total Revenue            71,696.07   10,716.90    75,337.36   11,261.19
 Fuel                     43,793.25    6,546.08    48,833.57    7,299.49
 Employee benefits 
 expense                   3,609.32      539.51     3,620.71      541.21
 Finance costs             3,230.36      482.86     2,743.62      410.11
 Depreciation and 
 amortization expense      5,425.32      810.96     4,911.65      734.18
 administration & 
 other expenses            5,787.39      865.08     4,911.28      734.12
 Prior period items (net)   (196.15)     (29.32)     (333.83)     (49.90)
 Total expenses           61,649.49    9,215.17    64,687.00    9,669.21
 Profit before tax and
 rate regulated 
 activities               10,046.58    1,501.73    10,650.36    1,591.98
 Add: Regulatory Income/ 
 (Expenses)                   12.09        1.81      (103.71)     (15.50)
 Profit before tax        10,058.67    1,503.54    10,546.65    1,576.48
 Tax expense                (184.24)     (27.54)      255.79       38.23
 Profit for the year      10,242.91    1,531.08    10,290.86    1,538.25
 Appropriations:                    2015-16               2014-15 
                           Rs. Crore     US $ Mn*   Rs. Crore    US $ Mn*
 Transfer to bonds/
 debentures redemption 
 reserve                   1,284.13      191.95     1,156.19      172.82
 Transfer to general 
 reserve                   6,000.00      896.86     7,000.00    1,046.34
 Transfer to CSR reserve          -           -        78.30       11.70
 Transfer to capital
 reserve                       0.11        0.02         0.12        0.02
 Interim dividend          1,319.28      197.20       618.42       92.44
 Proposed dividend         1,442.96      215.69     1,442.96      215.69
 Tax on dividend             558.25       83.45       417.40       62.39
 *1US $= Rs. 66.90 as on March 31, 2016
 Offer for Sale of 5% Equity Share Capital of the Company by the
 Government of India was made in terms of CCEA''s approval in May 2015.
 The offer was opened on 23.02.2016 for non-retail investors and on
 24.02.2016 for retail investors. Non-retail investors were allowed to
 place their bids for 80% of unreserved portion and retail investors had
 reserved portion of 20%. The indicative price was Rs. 122.22 per equity
 share which was above the floor price (Rs. 122 per equity share) and
 cut-off price was Rs. 122.05.
 Consequent upon sale of 41,22,73,220 shares by Government of India, the
 equity holding of GOI in NTPC was reduced to 69.96% of the paid-up
 capital from 74.96%. An amount of Rs. 5,014.55 crore exclusive of STT
 was garnered through Offer for Sale by the Government of India.
 A total of 2,06,13,661 shares were offered to employees, being 5% of
 stake sold by the Government of India in February 2016. These shares
 were offered to the employees at Rs. 115.90 per equity share i.e. at 5%
 discount to OFS price.
 10,826 employees participated in the offer and applied for 1,75,82,590
 shares being 85.3% of the shares offered under Employee OFS. An amount
 of Rs. 203.78 crore was garnered through Offer for Sale for Employees
 by the Government of India.
 With the above Offer for Sale to Employees, the holding of Government
 of India has further reduced to 69.74 %.
 3.1 Interim and Final Dividend:
 Your company paid interim dividend of Rs.1.60 per equity share in
 February 2016 and the Board of your Company have recommended a final
 dividend of Rs.1.75 per equity share for the year 2015-16. With this,
 the total dividend for the year is Rs.3.35 per equity share of Rs.10/-
 each. In the year 2014-15, the total dividend paid was Rs.2.50 per
 equity share of Rs.10/- each.
 The dividend payout is 26.97% and the total dividend payout including
 dividend tax is 32.42% of profit after tax.  The final dividend shall
 be paid after your approval at the Annual General Meeting.
 The dividend has been recommended in accordance with your Company''s
 policy of balancing dividend pay-out with the requirement of deployment
 of internal accruals for its growth plans.
 During the year, the power stations of your Company generated 241.98
 BUs (263.42 BUs including JVs& Subsidiaries) of electricity (including
 solar and hydro power) which was 21.95% (23.90% including generation by
 JVs) of the total power generated in India (without Bhutan import)
 registering an increase of 0.30% (1.09% including JVs & Subsidiaries)
 over the previous years'' generation of 241.26 BUs. Generation
 contributed by hydro stations was 2.308 BUs.
 The total generation contributed by coal stations is 230.64 BUs during
 the year against generation of 229.55 BUs last year registering a
 growth of 0.5%. Generation from coal based units could have been still
 higher but due to less generation schedule there was opportunity loss
 of 37.76 BUs. The coal based stations operated at average Plant Load
 Factor (PLF) of 78.61% (All India PLF 62.29%) and average Availability
 Factor of 88.06% on bus bar during the year. The generation loss on
 account of coal shortage was brought down to 0.18 BUs in the current
 year from 8.895 BUs in FY 2014-15.
 During the year, 3 coal based stations out of 17 (commercial Stations)
 achieved more than 90% PLF and ranked as the Top 3 stations in the
 country. 11 stations (including JV) of your Company are in top 25
 stations in the country.
 The gas stations having a capacity of 4,017 MW achieved annual
 generation of 8.870 BUs at a PLF of 25.14% as against 11.588 BUs last
 year mainly due to less generation schedule which accounted for an
 opportunity loss of 25.529 BUs. The declared capacity of gas based
 stations for the year was 97.30% as compared to 92.18% during previous
 5.1 Billing and Realisation
 Your Company has realized 100% of its current bills raised for energy
 supplied in 2015-16, thus achieving this feat for the 13th consecutive
 Most of the customers were making their payments within 60 days of
 billing and had availed rebates as per Company''s Rebate Scheme.
 Beneficiaries have established and are maintaining Letter of Credits
 (LCs) at 105% of the average monthly billing.
 Apart from LCs, payment of dues is secured by Tri- partite Agreements
 (TPAs) signed amongst the State Governments, Government of India and
 Reserve Bank of India. In terms of TPAs, any default in payment by the
 Discoms of a State can be recovered directly from the account of
 respective State Governments with RBI. The TPAs are valid upto
 31.10.2016. Most of the States have agreed for extension of existing
 TPA, RBI has also given its no objection for the same. Extension of TPA
 is under consideration by the Ministry of Power.
 5.2 Rebate Scheme for realization of dues:
 In order to encourage early and full realization of dues, your Company
 has revamped ''Rebate Scheme'' for the year 2016-17. In the Scheme for
 2016-17, 2% rebate shall be allowed for amounts credited to the account
 of Company for any advance payment and payments made till 8th day of
 the billing month. From 9th day of the billing month till 30th day of
 the month next to billing month, rebate on amounts credited to the
 account of the Company shall gradually reduce from 1.95% to 0% on 31st
 of the month next to the billing month. An additional rebate of 0.1% of
 the monthly billing would be allowed in all months where a customer
 maintains monthly LCs.
 5.3 Commercial Capacity:
 The following units were declared commercial during the year 2015-16,
 adding 1,960 MW to commercial capacity of your Company:
 Project/ Unit                               Capacity      COD*
 NTPC Units- Coal Based (I)
 Vindhyachal -V, Unit# 13                      500       30.10.2015
 Barh-II, Unit#5                               660       18.02.2016
 Total (I)                                   1,160
 NTPC Units - Hydro (II)
 Koldam, Unit#1 to 4                           800       18.07.2015
 Total (II)                                    800
 Total Capacity declared                     1,960
 commercial during
 2015-16(I) (II)
 * COD- Commercial Operation Date
 In 2016-17, 250 MW of Bongaigaon Unit#1 and 200 MW Anantpur Solar Power
 Plant have been declared commercial making commercial capacity of
 Company as on 30.06.2016 as 45,878 MW (including JVs and Subsidiaries)
 as under:
 Owned by NTPC                                               MW
 Coal based projects                                       34,425
 Gas based projects                                         4,017
 Renewable Energy Projects                                    310
 Hydro Projects                                               800
 Sub-total                                                 39,552
 Joint Ventures & Subsidiaries
 Coal based projects                                        4,359
 Gas based projects                                         1,967
 Sub-total                                                  6,326
 Total                                                     45,878
 5.4 Tariff Related Matters:
 In FY 2015-16, your Company has been able to reduce Energy Charge Rate
 significantly through various measures such as reduced consumption of
 imported coal, rationalization of coal transportation across its
 various stations.  Tariff petitions with Central Electricity Regulatory
 Commission (CERC) have been filed for all the operating stations for
 determination of tariff for the period from 01.04.2014 to 31.03.2019.
 Hearing on these petitions had started and orders will be issued after
 completion of hearings.
 5.5 Power Purchase Agreements:
 Your Company has signed Power Purchase Agreements for Telangana
 (Phase-I 1600 MW), Patratu (JV with Jharkhand State Electricity Board -
 2725 MW) and Solar Capacity of 760 MW (comprising Anantpur -250 MW,
 Mandsaur- 250 MW and Bhadla - 260 MW).
 5.6 Strengthening Customer Relationship:
 Customer Relationship Management (CRM) initiative has been taken by
 your company towards strengthening relationship with the customers.
 This is also reflected in the Core Values of your Company (BE
 COMMITTED) which emphasizes ''Customer Focus'' as one of the core values
 of Company.  Under CRM, your Company has designed and executed several
 structured activities with the objective of sharing of experiences and
 best practices with the customers, capturing the feedback and
 expectations. Based on the feedback received from the customers, the
 Company provides various support services to them and identifies
 potential areas of cooperation and sharing of others'' best practices.
 During the year 2015-16, 62 such services were provided to the
 Your Company offers training programs to the representatives of
 beneficiary companies at Power Management Institute (PMI) on free of
 cost basis. During the year 2015-16, 124 participants from various
 customer organizations attended training in 73 programs conducted by
 PMI.  Besides above, your Company has put in place a Customer
 Satisfaction Index (CSI) Survey for gathering customers'' feedback and
 responding to their requirements. The CSI survey was revamped in
 2015-16 to include feedbacks of the Grid Operators with the objective
 of understanding the view points of grid operators also. This modified
 Customer and Grid Operator Satisfaction Index Survey has been conducted
 in 2015-16.
 As a part of UDAY Scheme, your Company is helping state generating
 companies to improve their operational efficiency and reduce the cost
 of generation. With this objective, two workshops were conducted by
 your Company with representatives of the Gencos of various states.
 5.7 Power Trading in Power Exchange:
 Your Company has commenced trading of the Un- requisitioned Surplus
 (URS) Power in the Power Exchange through its trading arm NVVN from
 June 2016. As per the amended Tariff Policy, gains from these
 transactions will be shared in the ratio of 50:50 with the
 beneficiaries whose URS is sold.
 During the year 2015-16, your Company added 2,255 MW to its installed
 capacity as per details given below
 Project/ Unit installed                                   Capacity
 NTPC owned
 Coal Based Power Projects
 Vindhyachal -V, Unit#13                                      500
 Bongaigaon, Unit#1                                           250
 Mouda-II, Unit#3                                             660
 Hydro Power Projects
 Koldam Hydro, Unit#3 and 4                                   400
 Total NTPC owned                                           1,810
 Under JVs & Subsidiaries (Coal Based Power Projects)
 Kanti (subsidiary of NTPC in JV with                         195
 BSPGCL), Unit#4
 BRBCL (subsidiary of NTPC in JV with                         250
 Ministry of Railways)
 Total by JV & Subsidiaries                                   445
 Total Addition during FY 2015-16                           2,255
 With above capacity addition during 2015-16, capacity added in the
 first four years of 12th Plan Period has reached 9,550 MW against the
 target of 11,920 MW for 12th Plan Period (as per CEA).
 The total installed capacity of the NTPC Group as on 31.03.2016 has
 become 46,653 MW (44,398 MW as on 31.03.2015) as tabulated below:
 Owned by NTPC                                      MW
 Coal based projects                              35,085
 Gas based projects                                4,017
 Renewable Energy                                    110
 Hydro Projects                                      800
 Sub-total                                        40,012
 Joint Ventures & Subsidiaries
 Coal based projects                               4,674
 Gas based projects                                1,967
 Sub-total                                         6,641
 Total                                            46,653
 With the commissioning of Anantpur Solar PV unit of 250 MW and addition
 of Patratu Thermal Power Plant of 325 MW after 31.03.2016, capacity of
 your Company has become 47,228 MW as on 31.07.2016.
 Your Company has adopted a multi-pronged growth strategy which includes
 capacity addition through green field projects, brown field expansions,
 expansion through joint ventures and acquisitions, towards its journey
 to achieve its vision to become world''s largest and best power producer
 powering India''s Growth.  In addition to furthering capacity addition
 through Coal based power projects, your Company has been pursuing
 enhancement of its power generation portfolio through Hydro and
 Renewable Energy projects.
 7.1 Projects under Implementation
 Your Company''s various projects having aggregate capacity of 24,009 MW
 including 4,050 MW being undertaken by Joint Venture and subsidiary
 companies are under implementation at 23 locations across length and
 breadth of the country as on 31.03.2016. This includes 22,430 MW
 through coal based projects, 1,579 MW through renewable energy
 projects, comprising 811 MW through hydro capacity, 8 MW small hydro
 project and 760 MW of solar power PV projects. The details of such
 projects are as under:
 Ongoing Projects as on 31.03.2016
                                                       Capacity (MW)
 I. NTPC owned:
 A. Coal Based Projects
 1.  Bongaigaon, Assam                                        500
 2.  Barh-I, Bihar                                          1,980
 3.  Lara-I, Chattisgarh                                    1,600
 4.  North Karanpura, Jharkhand                             1,980
 5.  Kudgi-I, Karnataka                                     2,400
 6.  Gadarwara-I, Madhya Pradesh                            1,600
 7.  Mouda-II, Maharashtra                                    660
 8.  Solapur, Maharashtra                                   1,320
 9.  Darlipalli, Odisha                                     1,600
 10.  Unchahar-IV, Uttar Pradesh                              500
 11. Tanda-II, Uttar Pradesh                                1,320
 12.  Khargone, Madhya Pradesh                              1,320
 13. Telangana Phase-I, Telangana                           1,600
 Sub Total (A)                                             18,380
 B.  Hydro Electric Power Projects (HEPP)
 14.  TapovanVishnugad, Uttarakhand                           520
 15.  LataTapovan, Uttarakhand@                               171
 16.  Rammam Hydro, West Bengal                               120
 17.  Singrauli CW Discharge, Uttar Pradesh                     8
 Sub Total (B)                                                819
 C.  Solar Power Projects
 18. Anantpur Solar PV, Andhra Pradesh*                       250
 19.  Mandsaur, Madhya Pradesh                                250
 20.  Bhadla, Rajasthan                                       260
 Sub Total                                                    760
 Total I (A) (B) (C)                                       19,959
 II Projects under JVs & Subsidiaries Coal Based Projects
 21.  Nabinagar- JV with Railways, Bihar                      750
 22.  Nabinagar, JV with BSPGCL, Bihar                      1,980
 23.  Meja, JV with UPRVUNL, Uttar Pradesh                  1,320
 Total II                                                   4,050
 III Total On-Going Projects as on                         24,009 
 31.03.2016 (I) (II)
 *Subsequently, 200 MW unit of Anantpur Solar has been commissioned on
 01.04.2016 and 50 MW on 29.07.2016.
 In addition, 250 MW of Rourkela Project by NSPCL had been awarded on
 As on 31.07.2016, projects under construction (including JVs and
 subsidiaries) are 24,009 MW.
 @Work of Lata Tapovan HEPP stopped since 08.05.2014 as per orders of
 the Supreme Court.
 7.2 New Projects
 Your Company has awarded Telangana, Phase-I (2X800 MW), Thermal Power
 Project, Mandsaur (250 MW) and Bhadla (260 MW) Solar Projects during
 the Financial Year 2015-16.
 As on 30.06.2016, your Company has projects for 6,640 MW thermal
 capacity and 768 MW renewable capacity under bidding.
 7.3 New Technology & Initiatives
 Your company has laid major stress on efficient utilization of
 resources and use of technological advancements for improving energy
 With emphasis on efficiency of electricity generation, your Company has
 adopted ultra super critical technology by improving the steam
 parameters for North Karanpura (3X660MW) to 260 kg/ cm2, 593oC/ 593oC.
 For Khargone (2X660MW) and Telangana (2X800 MW) steam parameter are 270
 kg/ cm2, 600oC/ 600oC. Plant efficiency of these units is expected to
 increase by around 8% over that of a conventional sub-critical 500 MW
 unit and 3% over conventional super critical units using similar coal.
 Development of Advance Ultra Super Critical technology:
 Your Company has entered into an MOU with BHEL and Indira Gandhi Centre
 for Atomic Research (IGCAR) for indigenous development of advanced
 ultra super critical technology. This will have enhanced efficiency of
 around 46% and about 18% less CO2 emission per unit of power generation
 as compared to 500 MW sub-critical thermal power units. The program is
 targeted to deliver a plant having 800 MW unit with steam parameters of
 310 kg/sq cm, 710oC/720oC. Approval of Phase-I (R&D phase) of the
 project is under consideration of Government of India.
 Environment Protection:
 Your Company as pioneer in Environment monitoring has already installed
 Ambient Air Quality Monitoring Stations (AAQMS) employing Nox, So, CO,
 SPM & RSPM analysers in 20 operating stations in 2 x 009-10 and data is
 made available to CPCB. Similarly, Continuous Emission Monitoring
 System (CEMS) employing Nox, Sox, CO & CO2 analysers at stack for flue
 gas have been installed recently in various operating stations. Your
 company has recently introduced analysers for Mercury monitoring for
 both AAQMS and CEMS.
 7.3.1 Energy Conservation, Technology Absorption
 Details of conservation of energy and technology absorption in
 accordance with section 134(3) of the Companies Act, 2013 read with
 Companies (Accounts) Rules, 2014 forms part of this report as
 7.4 Project Management
 Your Company has 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), etc. PMC facilitates monitoring of key project
 milestones and also acts as decision support system for the management.
 PMC is an 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 video conference facility are extensively
 utilized for project tracking, issues resolutions and management
 interventions. PMC has helped in providing effective coordination
 between the agencies and has provided enhanced/ efficient monitoring of
 the projects leading to better and faster project implementation.
 7.5 Capacity addition through Subsidiaries and Joint Ventures (JVs)
 Besides adding capacities on its own, your Company develops power
 projects through its subsidiaries and joint ventures, both in India and
 7.6 Hydro Power
 Your Company now has its footprints in renewable energy by developing
 hydro projects as detailed below:
 A. Koldam HEPP (4x200 MW) is on the river Satluj at Barmana, District
 Bilaspur (Himachal Pradesh). All the four units of 200 MW each have
 been declared commercially operational on 18.07.2015. Since then the
 project is running successfully.
 B. Tapovan Vishnugad HEPP (4x130 MW) is on River Dhauliganga, District
 Chamoli (Uttarakhand). Project is under construction with approximately
 70% work completed. After completion of 7.65 km out of 12.08 km of Head
 Race Tunnel (HRT), the contract was terminated on 09.01.2014. Award of
 balance works of HRT placed on 09.03.2016. Construction of Barrage,
 Switchyard and Electro-Mechanical & Hydro- Mechanical works are in
 C. Lata Tapovan HEPP (3x57 MW) is just upstream of Tapovan-Vishnugad
 HEPP. The work was stopped by Hon''ble Supreme Court through order dated
 07.05.2014 for 24 Hydro Projects in the State of Uttarakhand including
 Lata-Tapovan. The MOEF&CC constituted an expert body, which submitted
 its report on 19.10.2015 and MOEF submitted the same in court on
 05.11.2015, where Lata Tapovan had been recommended for implementation
 with compliance of certain additional conditions. Your Company
 submitted in Court on 19.11.2015 that the conditions recommended by
 expert body shall be strictly complied. On the hearing held on
 26.04.2016, Additional Solicitor General of India represented MOEF and
 informed the Court that Lata - Tapovan Project must be implemented. The
 matter is still to be decided by the Supreme Court.  For National Board
 of Wild Life (NBWL) Clearance for Tapovan- Vishnugad and Lata Tapovan
 HEPPs, the proposal regarding redefining of Eco Sensitive Zone was
 discussed in Uttarakhand State Cabinet Meeting and shall be forwarded
 for MOEF&CC, GOI for its approval.
 D. Rammam-III HEPP (3x40MW) This project is situated on river Rammam in
 Teesta Basin, Darjeeling (West Bengal). Civil works of Barrage, Power
 House, HRT& S/Y are in progress. The river has been diverted through a
 diversion channel and the work in the river bed has been started for
 construction of Barrage.
 7.7 Capacity Addition through Renewable Energy Sources
 Your Company is adding capacity through renewable sources of energy, to
 broad-base its generation mix to ensure long term competitiveness,
 mitigation of fuel risks and promotion of sustainable power
 7.7.1 Under Green Energy Commitment:
 Your Company has committed to develop 10 GW of Renewable Energy
 Projects under green Energy Commitment to Govt. of India.
 Your Company has already commissioned 310 MW of solar projects as on
 30th June 2016. 560 MW Solar Power Projects are under execution which
 includes Mandsaur Solar (250 MW), Bhadla Solar (260 MW) and Anantpur
 Solar (50 MW).
 NITs have been issued for 1,750 MW of Solar PV projects to be set up in
 the states of Andhra Pradesh and Karnataka.
 7.7.2 National Solar Mission:
 Your Company has been entrusted to develop 15 GW Solar PV through
 National Solar Mission (NSM) Phase-II in three tranches between 2014-15
 to 2018-19, where the Company will be the facilitator/trader between
 Discoms and developers.  Your Company will purchase power from the
 developers and sell it to the Discoms. Under Tranche-I, 3000 MW of
 Solar PV capacity upto 2016-17 has been planned. NITs for 3,000 MW of
 Solar PV capacity to come up in the states of Andhra Pradesh,
 Rajasthan, Karnataka, Telangana and Uttar Pradesh have been issued and
 awards placed for 2,520 MW projects till 30th June 2016. The developers
 have been selected through reverse auction.
 8.1 In order to strengthen its competitive advantage in power
 generation business, your Company has diversified its portfolio to
 emerge as an integrated power major, with presence across entire power
 value chain through backward and forward integration into areas such as
 coal mining, power equipment manufacturing, power trading and
 Your Company continuously explores business opportunities through
 market scanning and adopts new business plans accordingly.
 8.2 The details of subsidiary companies engaged in business other than
 in power generation are as under:
 8.2.1 NTPC Electric Supply Company Limited (NESCL), a wholly owned
 subsidiary was incorporated to foray into the business of distribution
 and supply of electrical energy as a sequel to reforms initiated in the
 power sector.  The Company was implementing Rajiv Gandhi Gramin
 Vidyutikaran Yojna (RGGVY) projects on turnkey basis and undertaken
 turnkey execution of sub-stations for utilities and project management
 The shareholders of NESCL have transferred existing business of deposit
 and consultancy works under RGGVY from NESCL to NTPC on 01.04.2015.
 This subsidiary had also dis-associated with the business of retail
 distribution of power in various industrial parks developed by Kerala
 Industrial Infrastructure Development Corporation (KINFRA), through its
 Joint Venture Company namely KINESCO Power and Utilities Private
 Limited, as the future prospects of the JV Company are bleak. The
 shares held by NESCL had been purchased by KINFRA on 17.12.2015 and
 thus NESCL had ceased to be the joint venture partner of KINESCO.
 8.2.2 NTPC Vidyut Vyapar Nigam Limited (NVVN), a wholly owned
 subsidiary is involved in power trading.
 During the year 2015-16, the Company transacted business with various
 State Electricity Boards spread all over the country and traded 12,766
 MUs of electricity.  The Company is designated Nodal Agency for
 implementation of Jawahar Lal Nehru National Solar Mission Phase-I by
 purchasing and selling of grid connected bundled solar power across the
 country.  NVVN has also been designated as the nodal agency for cross
 border trading of electricity with Bhutan, Bangladesh and Nepal.
 PPA was signed on 15.02.2016 between NVVN and Nepal Electricity
 Authority (NEA) for supply of upto 80 MW power from Feb to Jun 16
 through 400 KV Muzaffarpur- Dhalkabar transmission line. Power supply
 to NEA started on 18th Feb 2016.
 NVVN has paid dividend of Rs. 20 Crore to NTPC in FY 2015-16.
 9.1 Trincomalee Power Company Limited (TPCL), a 50:50 joint venture
 between your Company and Ceylon Electricity Board was formed to
 undertake the development, construction, establishment, operation and
 maintenance of a coal based electricity generating station of (2X250
 MW) capacity at Trincomalee at Sri Lanka. EIA clearance was granted by
 Central Environmental Authority (CEA) on 02.02.2016 with some specific
 conditions. However, Secretary, Ministry of Power & Renewable Energy,
 Govt.  of Sri Lanka (GoSL) has requested Secretary (Power), GoI, to
 form a Joint Working Group to explore the possibility of changing fuel
 source of Power Project from Coal to LNG.
 9.2 Bangladesh-India Friendship Power Company Private Limited, a 50:50
 joint venture Company between NTPC and Bangladesh Power Development
 Board (BPDB) was formed for developing a (2X660 MW) Coal based power
 project (Maitree Super Thermal Power Plant) at Khulna Division, Rampal,
 Bangladesh. EPC contract of the project except township had been
 awarded to BHEL.  Other activities are also in progress. An MoU has
 been signed with Bangladesh Shipping Corporation (BSC) on 24.01.2016 to
 explore the possibility of BSC taking up part/full coal logistics for
 the Project.
 Consultancy Wing of your Company offers services like Engineering,
 Operation & Maintenance Management, Project Management, Contracts &
 Procurement Management, Quality Management, Training & Development etc.
 These services have been provided in international markets in Gulf
 countries, Bangladesh, Nepal, Sri Lanka and Bhutan.
 On international front, Consultancy Wing has been associated with
 Trincomalee Power Company Ltd. As Owners'' Engineer for setting up their
 (2x250 MW) Coal Based Power Project. It 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
 On the domestic front, Consultancy Wing has been effectively sharing
 its expertise with State, Central PSUs and other clients. This includes
 Owners Engineer Services to The Singareni Collieries Company Limited
 for their coal based power project in Adilabad district, Telangana and
 Project Monitoring Services to MPPGCL for (2x600MW) Shree Singaji TPP &
 (2x250MW) Satpura TPP by deputing NTPC experts at site.
 The capacity addition programs shall be financed with a debt to equity
 ratio of 70:30, in case of thermal and hydro projects and that of 80:20
 in case of solar projects. Your directors believe that internal
 accruals of the Company would be sufficient to finance the equity
 component for the new projects. Given its low geared capital structure
 and strong credit ratings, your Company is well positioned to raise the
 required borrowings.
 Your Company is exploring domestic as well as international borrowing
 options including overseas development assistance provided by bilateral
 agencies to mobilize the debt required for the planned capacity
 expansion program.
 The details of funding are discussed in the Management and Discussion
 Analysis Report which forms part of this Report.
 Your Company has discontinued the acceptance of fresh deposits and
 renewals of deposits under Public Deposit Scheme with effect from
 11.05.2013. As such, there were no deposits which were not in
 compliance with the requirements of Chapter-V of the Companies Act,
 The details relating to deposits, as per the Companies Act, 2013 is as
 (a) [Accepted during the year                       Nil 
 (b) Remained unpaid or unclaimed as                 6 Deposits 
     at the end of the year                          amounting to
                                                     Rs. 15.91 lakh*
 (c) Whether there has been any default in repayment of deposits or
 payment of interest thereon during the year and if so, number of such
 cases and the total amount involved
 (i) At the beginning of the year                    Nil
 (ii) Maximum during the year                        Nil
 (iii) At the end of the year                        Nil
 * Pending for completion of legal formalities/ restraint orders/
 non-receipt of claims.
 13.1 During the year, the supply position of coal and gas is given as
 13.1.1 Coal Supplies
 Your Company has entered into long term Fuel Supply Agreement with Coal
 India Limited (CIL) and The Singreni Collieries Company Limited (SCCL)
 for total Annual Contracted Quantity (ACQ) of 152.978 MMT & 11.2 MMT
 respectively. The total ACQ of 164.2 MMT of coal from CIL & SCCL is
 signed for 33,515 MW units already commissioned/ to be commissioned.
 The Company also had a short-term Memorandum of Understanding (MOU)
 with SCCL for supply of 3.5MMT of coal for Ramagundam, Simhadri and
 Kudgi (start-up coal) stations for supply till March 2016. Short-term
 MOU for one year had been signed with Eastern Coalfields Limited (ECL)
 for supply of 5.5 MMT of coal. Another short term MOU signed with
 Northern Coalfields Limited (NCL) in 2014-15, was extended till
 31.03.2016, for supply of balance 2.0 MMT of coal to enhance coal
 supply to non NCL linked stations as per requirement The coal supplies
 for 2016-17 is tied up mainly through FSA and supplemental through MOU/
 e-auction alongwith balance quantity or imported coal of last year.
 During the year under review, your Company had made coal tie-up for
 Barh Stage-II (2X660MW) units through MOU with CCL and ECL for 6.66
 MTPA of coal at notified price, which helped stations to eliminate
 usage of costly coal thereby bringing down the cost of generation. Your
 Company was also allocated bridge linkages by Special SLC (LT) for
 Barethi (4X660MW), Barh -II (2X660MW), Darlipalli (2X800MW), Tanda -II
 (2X660MW), Lara -I (2X800MW), Kudgi -I (3X800MW) and Bilhaur (2X660MW)
 projects. Your Company was issued Letter of Assurance for tapering coal
 linkage for Telangana Phase-I (2X800MW) by WCL
 13.1.2 Domestic Coal and Imported Coal
 During 2015-16, your Company received 161.8 MMT of coal as against
 167.4 MMT in 2014-15 marking a decrease of 3.3%.
 Total domestic coal supply during 2015-16 was 152.3 MMT as against
 151.1 MMT during 2014-15. Out of 152.3 MMT of coal, 145.2 MMT was from
 Annual Contracted Quantity of coal.
 The total coal supply from CIL was 138.5 MMT and from SCCL was 13.8
 MMT.6.3 MMT of coal was procured through MOU during 2015-16.
 During 2015-16, your Company imported 9.7 MMT (including SWAP) of coal
 as against 16.4 MMT in 2014-15.Sipat station received 0.53 MMT of
 domestic coal against swapping of imported coal with GSECL.
 During the year under review, approx. 57.2% of coal (domestic and
 international) was transported through merry-go-round (MGR) system of
 your Company.
 13.1.3 Sourcing of coal through E-auction
 Your Company participated in one e-auction for Vindhyachal, Stage-V in
 the year 2015-16 and approx. 1.88 LMT of coal had been allocated. Total
 coal received through e-auction was 0.29 MMT during 2015-16 as compared
 to 0.94 MMT during 2014-15.
 13.1.4 Supply through Inland Waterways
 During 2015-16, about 0.716 MMT imported coal has been supplied through
 inland waterways to Farakka station under a Tripartite Agreement with
 IWAI and service provider.
 13.1.5 Rationalisation of Linkage
 With the initiatives of Ministry of Power and Ministry of Coal,
 Inter-Ministerial Task Force has recommended rationalization of linkage
 for optimization of transportation cost and de-congestion of railway
 network. In this respect your Company has rationalized the linkage of
 Ramagundam and Simhadri during 2015-16. For Ramagundam, amendment to
 FSA was signed on 21.01.2016 with SCCL for ACQ of 11.2 MMT (previous
 ACQ-10.2 MMT) in lieu of FSA with MCL and SECL for ACQ of 0.5MMT each
 for Simhadri reducing ACQ with MCL from 9.82 MMT to 8.32MMT and
 corresponding quantity of 1.5MMT rationalized for ECL Estimated annual
 saving in transportation cost taking Ramagundam and Simhadri together
 is around Rs. 35.95 crore.
 13.1.6 Swapping of coal with GSECL
 Under swapping agreement with GSECL, Sipat station has received around
 0.53 MMT of SECL coal with saving of around 150 crore on account of
 railway freight.
 13.1.7 Commencement of third party sampling, CIMFR
 In the meeting held under the Chairmanship of Hon''ble Minister of State
 (I/c) for Power, Coal & NRE on 28.10.2015, tripartite MOU between NTPC,
 CIL and CSIR-CIMFR was finalized for sampling and analysis at loading
 end. Member Power Utilities and CIMFR had also finalized the bilateral
 MOU between Power Utility and CIMFR for sampling and analysis at
 unloading end. These tripartite and bilateral MOUs have been signed.
 Commercially binding bilateral and tri-partite agreements between NTPC,
 CIL and CSIR-CIMFR have been signed on 12th- 13th July 2016 based on
 the above mentioned MoUs to enable CIMFR to start sampling and analysis
 in a phased manner.
 CIMFR has started sampling at the loading points at NCL (Jayant,
 Amlori, Dudhichua and Nigahi) supplying coal to Singrauli, Rihand and
 Vindhyachal; SECL (Gevra and Dipika) supplying coal to Korba and Sipat,
 MCL (Lingraj and Kaniha) supplying coal to Talcher-Kaniha and WCL (New
 Majiri) supplying coal to Mouda with their own resources and facilities
 from NTPC and the coal companies. For other cases, CIMFR will be taking
 up sampling & analysis activities in phases.
 This will help your Company in reducing the cost of generation as CIMFR
 can ensure that the grade billed by coal companies is actually supplied
 to stations of the Company.
 13.2 Gas supplies
 During 2015-16, your Company received 5.20 MMSCMD of gas and RLNG as
 against 6.41 MMSCMD received during 2014-15. The gas off-take in
 2015-16 included 4.92 MMSCMD of domestic gas, 0.06 MMSCMD of long-term/
 spot RLNG and 0.22 MMSCMD of e-bid RLNG. Gas off-take was less due to
 less availability of generation schedule on RLNG from the beneficiary
 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 with GAIL India Limited. The agreement for non-APM gas with
 GAIL is valid till November, 2016 and is likely to be extended further.
 Further, Government of India came out with a unique scheme of
 Útilisation of Gas Based Generation Capacity wherein RLNG was allocated
 in reverse e-bidding with discounts/ tax waivers and with Power System
 Development Fund (PSDF) support from GOI. Your Company participated in
 Phase-II bidding under the scheme and successfully won and utilised the
 allocated e-bid RLNG equivalent to ~90MW in Dadri and Auraiya gas
 stations for the period of October 2015 to March 2016.
 For additional gas requirement over and above the supplies under
 long-term domestic gas/ RLNG agreements, your company has been making
 arrangements for tie- up and supply of spot RLNG from domestic
 suppliers on ''Reasonable Endeavour'' basis based on requirement and
 availability from time and time. There has been no generation loss on
 account of lack of availability of gas/ RLNG during the year.
 13.3 Development of Coal Mining projects
 Your Company had been allocated eight coal blocks, namely,
 Pakri-Barwadih, Chatti-Bariatu, Kerandari, Talaipalli, Dulanga, Banai,
 Bhalumuda and Mandakini-B by the Government of India. In addition,
 Government of India has also allocated Kudanali-Luburi coal block
 jointly to your company and J&K State Power Development Company Limited
 (J&KSPDCL), with NTPC''s share of coal reserves in this block being two-
 third. Joint Venture Agreement had been signed between NTPC and
 J&KSPDCL on 15.06.2015 for formation of 67:33 joint venture company for
 exploration, development and operation of the coal block.
 Similarly, Banhardih coal block, allocated earlier to Jharkhand Urja
 Utpadan Nigam Limited, has now been allocated to Patratu Vidyut Utpadan
 Nigam Limited, a subsidiary company incorporated between NTPC and
 Government of Jharkhand.
 With about 7 billion metric tonnes of geological reserves estimated
 from our own eight coal blocks, altogether your Company expects to
 produce about 107 Million Metric Tonnes of coal per annum.
 In Pakri-Barwadih mining operations have commenced from the western
 quarry with effect from 17.05.2016. Mining operation is also expected
 to start from the eastern quarry of this block shortly, after MOEF&CC
 issues the amendment to the environment clearance. For coal
 transportation from Pakri-Barwadih, Bandag-Hazaribagh'' Railway siding,
 funded by NTPC, is now operational with commencement of coal
 transportation from CCL''s Amarpali block to Barh Power Station of
 Your Company has progressed well in other coal blocks too.  Subsequent
 to the issuance of Allotment orders by Ministry of Coal, Government of
 India, forest clearance for Dulanga Coal Block has been accorded by
 MOEF&CC on 23.12.2015.  NITs have been published for appointment of
 Mine Developer-cum -Operator (MDO) for Talaipalli, Dulanga and
 Chatti-Bariatu coal blocks and techno-commercial bids have been
 After completion of detailed exploration in Banai coal block,
 Geological Report (GR) has been received from CMPDIL on 13.04.2016 and
 is now under approval at Ministry of Coal.  For Bhalumuda coal block,
 detailed exploration has been completed and draft GR is under
 finalization by CMPDIL. For Mandakini-B coal block, Company has awarded
 a contract to CMPDIL for carrying out detailed exploration and for
 preparation of GR and drilling activities have commenced.  Your company
 has initiated the process for acquisition of mining area land in these
 three new blocks i.e. Banai, Bhalumuda and Mandakini-B.
 The joint venture company, namely, CIL NTPC Urja Private Limited,
 formed with Coal India Limited, is exploring development and operation
 of washery reject-based FBC power plants near upcoming/ existing coal
 washery of Coal India Limited.
 13.4 Exploration Activities
 In Cambay exploration block (CB-ONN-2009/5), held by your Company, as
 operator with 100% participating interest drilling of all seven
 exploratory wells have been completed and testing of wells is in
 In the KG basin exploration block viz. KG-OSN-2009/4 where ONGC is the
 operator and NTPC has 10% stake, the exploration activities are in
 progress and ONGC has submitted a proposal to the Government of India
 for reduction in minimum work programme as the permitted area of the
 block for exploration has been reduced because of non-grant of defence
 clearance.  The other KG basin exploration block viz. KG-OSN-2009/1 and
 the Andaman basin exploration block viz. AN- DWN-2009/13, where ONGC
 was the operator and NTPC had 10% stake, had been relinquished to
 Government of India as per the advice from Operator (ONGC).
 To achieve higher levels of excellence, your company has developed and
 adopted its own ''Business Excellence Model'' on the lines of globally
 reputed Excellence Models such as Malcom Baldrige Model, USA and EFQM
 Model of Europe.
 This model has been deployed at our Business Units (Stations) and your
 Company carries out assessment of generating stations using this
 framework of excellence.  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 identification of organizational
 strengths, opportunities for improvement, issues of concern and best
 In the financial year 2015-16, the 6th cycle of assessment was
 completed in which 21 generating stations were assessed by a team of
 certified and proficient assessors. Business Excellence Awards for Best
 Performance to Ramagundam and motivational awards to Sipat and
 Talcher-Kaniha stations were presented by the Union Minister of Power,
 GOI, in the Indian Power Stations Conference- 2016 held at New Delhi.
 Contemporary quality initiatives and techniques like Quality Circles,
 Professional Circles, 5S, integrated management system (IMS) etc have
 been deployed across the organization for continuous improvement. Our
 Quality Circle teams of workmen have been consistently representing
 your Company at national and international Quality Circle conventions
 and bringing many laurels. In the year 2015-16, Aqua Quality Circle
 from Rihand station represented your Company in the International
 Convention of Quality Control Circle (ICQCC-2015) held at Changwon,
 South Korea.
 In the present scenario of severe resource constraint Renovation and
 Modernization (R&M) of power plants is considered to be a
 cost-effective option which can complement new capacity addition as R&M
 schemes have a shorter gestation period with all clearances, land,
 water, fuel and beneficiaries available. To this end, R&M is being
 carried out for the purpose of life extension of units, performance
 improvements, availability and reliability improvement and improved
 environment compliance. It 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
 Keeping in view the ageing of the fleet over the years, investment
 approval accorded till date for R&M in 19 stations (Coal & Gas based)
 is Rs.11,148.80 crore. As against this, cumulative expenditure till
 31.03.2016 is Rs. 6,794.36 crore. Out of this, R&M capital expenditure
 in the financial year 2015-16 was Rs. 924.37 crore
 With a view to removing technological obsolescence, renovation of
 control & instrumentation (C&I) has been taken up in 9 stations at
 Singrauli-I (5X200MW) & Singrauli - II (2X500 MW), Korba -I (3X200MW) &
 Korba - II (3X500 MW), Ramagundam -I (3X200MW) & Ramagundam - II
 (3X500MW), Farakka-II (2X500 MW), Dadri Thermal- I (4X210MW), Unchahar-
 I (2X210MW), Talcher STPS-I (2X500MW), Kahalgaon-I (4X210 MW) and
 Rihand - (2X500 MW). During 2015-16, C&I R&M was completed in one 500
 MW unit of Singrauli, (3X200 MW) and (3X500 MW) units of Korba, two 200
 MW units and three 500 MW units of Ramagundam, four units of 210 MW of
 Dadri Thermal, two units of 210 MW of FGUTPS, both 500 MW units of
 Talcher STPS, 500 MW unit of Farakka, one 210 MW unit of Kahalgaon and
 one 500 MW unit of Rihand and one 500 MW unit of Talcher STPS. On
 completion of these schemes, C&I systems in these stations have now
 been brought nearly on par with the new builds.
 Owing to very high operating temperatures, R&M of Gas Turbines
 including their Control & Instrumentation is essential after around 15
 years of life. By 31.03.2016, this activity was completed in all 4 Gas
 Turbines (GT) each in Kawas and in Auraiya and all 3 GTs in Gandhar.
 R&M activity for GT, C&I, ST, WHRB in Anta, Auraiya and R&M of GT in
 Gandhar, R&M of C&I systems for Dadri gas is in progress.  As a
 responsible corporate citizen, it has always been your Company''s
 endeavour to ensure low levels of pollution from its power stations.
 With a view to maintain a clean atmosphere in and around the power
 plant, for reducing particulate emission levels from generating
 stations, Renovation and Retrofitting of Electrostatic Precipitator
 (ESP) packages have been awarded and work is in progress in Singrauli-I
 & II (5X200MW 2X500MW), Farakka-I (3X200MW), Unchahar-I (2X210MW),
 Korba-I & II (3X200MW 3X500MW), Rihand-I (2X500MW), Vindhyachal-I & II
 (6X210MW 2X500MW), Talcher STPS -I & II (2X500MW 4X500MW) and Talcher
 TPS-II (2X110MW). During 2015-16, ESP R&M of two units of 210MW and two
 units (2X210MW) of Badarpur, one unit each of Talcher (110MW) and
 Rihand (500MW) has been completed. Moving Electrode Electrostatic
 Precipitator (MEEP) technology is being adopted for the first time in
 the country in Rihand Stage-I (Unit#1) and work is in advanced stage.
 To derive benefits of the latest advancements in technology, in
 cooperation with CEA, EEC/VGB/ Steag Germany, a study has been taken up
 on ESP performance improvement using CFD modeling in Unit#6 (500MW) of
 Ramagundam. CFD modeling is completed and are planned for
 implementation.  In yet another initiative, under the aegis of Ministry
 of Power, RLA of Unit#3 of 210 MW of Dadri Thermal station was done by
 JCOAL and draft report has been submitted by them.  This is an
 identified activity under the ongoing CEA-JCOAL cooperation as per
 India-Japan Energy Dialogue (IJED).
 16.1 Your Company takes pride in its highly motivated and competent
 Human Resource that has contributed its best to bring the Company to
 its present heights. The productivity of employees is demonstrated by
 increase in generation per employee and reduction of Man-MW ratio year
 after year.  The over-all Man-MW ratio for the year 2015-16 excluding
 JV/subsidiary capacity is 0.55 and 0.51 including capacity of JV/
 Subsidiaries. Generation per employee was 11.19 MUs during the year
 based on generation of NTPC stations.
 The total employee strength of the company (including JV/ subsidiary)
 stood at 23,133 as on 31.3.2016 against 24,067 as on 31.3.2015.
                                        FY 2015-16    FY 2014-15
 Number of employees                       21,633        22,496
 Subsidiaries & Joint Ventures
 Employees of NTPC in                       1,500         1,571
 Subsidiaries & Joint Ventures
 Total employees                           23,133        24,067
 The attrition rate of the NTPC executives (including Executive Trainees
 and those posted in Subsidiaries and JVs) during the year was 1.05%.
 16.2 Employee Relations
 Employees are the driving force behind the sustained stellar
 performance of your company over all these years of company''s
 ascendancy. As a commitment towards your Company''s core values,
 Employees'' Participation in Management was made effective based on
 mutual respect, trust and a feeling of being a progressive partner in
 growth and success. Communication meetings with unions and
 associations, workshop on production and productivity, etc were
 conducted at projects, regions and corporate level during the year.
 Both, employees and management complemented each other''s efforts in
 furthering the interest of your company as well as its stakeholders,
 signifying and highlighting over-all harmony and cordial employee
 relations prevalent in your Company.
 16.3 Safety and Security
 Occupational Health and safety at workplace is one of the prime
 concerns of Company Management and utmost importance is given to
 provide safe working environment and to inculcate safety awareness
 among the employees.  Your company has a 3-tier structure for
 Occupational Health and Safety management, namely at Stations/
 Projects, at Regional Head Quarters and at Corporate Centre. Safety
 issues are discussed in the highest forum of management like Risk
 Management Committee (RMC), Management Committee Meeting (MCM), ORTs,
 PRTs etc.  All of your Company''s stations are certified with
 OHSAS-18001/IS-18001. Regular plant inspection and review with Head of
 Project/Station is being done. Internal safety audits by safety
 officers every year and external safety audits by reputed organizations
 as per statutory requirement are carried out for each Project/Station.
 Recommendations of auditors are regularly reviewed and complied with.
 Height permit and height check list are implemented to ensure safety of
 workers while working at height. Adequate numbers of qualified safety
 officers are posted at all units as per statutory rules/provisions to
 look after safety of men & materials. For strict compliance &
 enforcement of safety norms and practices by the contractors, safety
 clauses are included in General Conditions of Contract/ Erection
 Conditions of Contract
 Detailed emergency plans have been developed and responsibilities are
 assigned to each concerned to handle the emergency situations. Mock
 drills are conducted regularly to check the healthiness of the system.
 Most of your Company''s plants have been awarded with prestigious safety
 awards conferred by various Institutions/ Body like Ministry of Labour
 & Employment-Govt. of India, National Safety Council, Institute of
 Directors, Institution of Engineers (India), in recognition of
 implementing innovative safety procedures and practices.
 Security: Your Company recognizes and accepts its responsibility for
 establishing and maintaining a secured working environment for all its
 installations, employees and associates. This is being taken care of by
 deploying CISF at all units of your Company as per norms of MHA.
 Concrete steps are being taken for upgrading surveillance systems at
 all projects/ stations by installing state-of-the-art security systems.
 16.4 Training and Development
 As the power leader of India, your Company has also always endeavoured
 to be in the forefront of creation and dissemination of knowledge. Its
 sustained performance leadership has, to a large extent been achieved
 on the platform of comprehensive training and development programs for
 its employees. A large number of professionals from other organizations
 in the power sector have also benefitted immensely from the training
 and development programs of your Company. Many organisations in the
 country adopt practices and systems developed by the Company.
 The learning activities are being driven by a comprehensive
 infrastructure comprising Power Management Institute (PMI) at the
 corporate level and Employee Development Centers (EDCs) at sites
 providing learning on management, technical competencies and
 leadership. At the foundation of the learning structure are the EDCs at
 Projects and Stations. EDCs take care of training requirements of non-
 executives and junior level executives at projects and stations. The
 training requirements of middle and senior level executives are catered
 to by PMI, the apex learning centre of your Company. This learning grid
 enables us to provide learning solutions for practically every aspect
 of the power value chain, covering the strategic, tactical and
 operational facets right down to the shop floor.
 Initiatives taken by PMI:
 (i) During 2015-16, PMI conducted almost 400 training programmes
 covering nearly 7,700 professionals, logging a total of approximately
 26,000 training mandays.
 (ii) Post Graduate Certificate in Project Management (PGCPM) programme
 in collaboration with IIM-Indore for developing long term project
 management competency. Under this initiative, executives from public
 and private sector utilities/companies from various States have been
 given skill based training to augment their capacity addition
 (iii) One week exposure at Wharton School in June-July, 2015 under the
 programme Strategic Management Initiative for Leadership Effectiveness
 (SMILE), after a 3 days intervention in New Delhi for top management
 group of 22 General Managers and Executive Directors of NTPC to
 revitalize their perspective and re-align their strategic orientation
 for sustainable leadership practices.
 (iv) Special programs on Enterprise Risk Management for senior level
 (v) Total 6 weeks'' duration programme during July- October, 2015 for
 ABB at Abu Dhabi on Power Plant Operation and Simulator Training for
 Combined Cycle Gas Power Plant.
 (vi) Conducted 62 training programs through Web conferencing platform
 at workstations during 2015-16.
 (vii) Developed 20 e-learning packages for end users of ERP-SAP.
 (viii) Conducted several customized training programmes for the benefit
 of various State utilities, CPSEs and private sector companies. In all,
 1,084 participants from other organizations got trained at PMI during
 (ix) Opened NTPC School of Business for running 15 months flagship
 program titled Executive Post- Graduate Diploma in Management (EPGDM)
 from August 2015.
 (x) Implementing skill development initiatives of NTPC for the
 country''s youth as a nodal agency. Till now, your Company has adopted
 18 ITIs and set up 8 new ITIs near its power stations, thus associating
 with total 26 ITIs. These initiatives by your Company resulted in
 creation of total 1,831 new seats by starting of new trades/units.
 Cumulatively, a total of 26,448 students benefitted from this
 initiative till 31.03.2016. For these ITI students, your Company
 organised 47,992 mandays of industrial training/plant visits. These
 skill development initiatives resulted in your Company being conferred
 the ASSOCHAM Award for Vocational Training 2015-16.
 (xi) Your Company has partnered with the Ministry of Skill Development
 and Entrepreneurship, Government of India, to contribute in realising
 the vision of Skill India.
 (xii) 10 new programs on Safety have been introduced in PMI''s Training
 Calendar for 2016-17.
 (xiii) A number of programs for establishing Solar and Wind energy
 projects and for protection of Environment have been added.
 Your company has adopted the ''triple bottom-line'' approach, recognising
 People, Planet and Profit as the primary pillars of corporate
 sustainability and believes that Development should not endanger the
 natural systems.  Your company is preparing Sustainability Report based
 on the Global Reporting Initiative (GRI). Sustainability reporting has
 helped us in measuring and monitoring our Company''s performance. It has
 served as an important management tool helping us re-look at our
 Company''s systems, policies and procedures.
 Your company has developed a policy and in accordance with a
 Sustainable Development Plan prepared for FY 2015-16. The main focus
 area of Sustainable development Plan covers waste management water
 management bio- diversity, promotion of renewable energy. Major
 activities carried out under this plan included plantation of trees in
 and around NTPC, installation of rooftop of Solar PV on public
 utilities buildings and on schools, installation of solar powered pump,
 rain water harvesting, rehabilitation of water bodies, installation of
 air quality monitoring systems in major cities, studies on impact
 assessment and carrying capacity river basin. A major activity for
 conservation of Olive Ridley Sea Turtles has been taken up.  Business
 Responsibility Report is attached as Annex-X and forms part of the
 Annual Report.
 A total expenditure of Rs. 33.85 Crore was incurred on these SD
 projects during Financial Year 2015-16.
 17.1 Inclusive Growth -Initiatives for Social Growth
 17.1.1 Corporate Social Responsibility (CSR):
 Your Company commits itself to contribute to the society, discharging
 its corporate social responsibilities through initiatives that have
 positive impact on society at large, especially the community in the
 neighborhood of its operations by improving the quality of life of the
 people, promoting inclusive growth and environmental sustainability.
 Focus areas of CSR & Sustainability activities are Health, Sanitation,
 Drinking Water, Education, Capacity Building, Women Empowerment, Social
 Infrastructure Development, support to Differently-abled Person and
 activities contributing towards Environment Sustainability. During the
 year special thrust has been given to the Swachh Vidyalaya Abhiyan
 making available about 29,000 toilets in government schools for the
 benefit of students, especially girl children, covering 82 Districts in
 17 States across the country.  Your Company spent Rs. 491.80 Cr during
 the financial year 2015-16 towards CSR initiatives. Amount spent i.e.
 Rs. 491.80 Cr includes unspent amount of Rs. 78.30 crore for the year
 17.1.2 NTPC Foundation
 NTPC Foundation is engaged in serving and empowering the
 differently-abled and economically weaker sections of the society.
 Details of expenditure incurred and initiatives undertaken by the
 Company under CSR are covered in the Annual Report on CSR annexed as
 Annex-VII to this Report.
 17.1.3 Rehabilitation & Resettlement (R&R)
 Your Company is committed to help the populace displaced for execution
 of its projects and has been making efforts to improve the
 socio-economic status of Project Affected Persons (PAPs). In order to
 meet its social objectives, your Company is focusing on effective R&R
 of PAPs and undertaking community development activities in and around
 the projects.
 R&R activities are initiated at projects by undertaking need based
 community development activities in the area of health, education,
 water, capacity building infrastructure etc by formulating ''Initial
 Community Development (ICD) Plan in consultation with concerned
 Panchayat, district administration and opinion makers of the locality.
 Company addresses R&R issues in line with its R&R Policy with an
 objective that after a reasonable transition period, the conditions of
 affected families improve or at least they regain their previous
 standard of living, earning capacity and production levels. As per the
 Policy, a detailed Socio- economic Survey (SES)/other Survey is
 conducted by a professional agency to create a baseline data of PAPs.
 This follows formulation of a ''Rehabilitation and Resettlement (R&R)
 Plan'' after adequate consultation with stakeholders in Village
 Development Advisory Committee (VDAC)'', which comprises representatives
 of PAPs, Gram Panchayat, your Company and District Administration. R&R
 Plan consists of measures for rehabilitation, resettlement and need
 based community development activities.  R&R plan expenditure is
 implemented in a time bound manner so as to complete its implementation
 by the time the project is commissioned. A social impact evaluation is
 being conducted by a professional agency to know the efficacy of R&R
 Plan implementation for future learning and improvements.
 17.1.4 R&R achievements during the year:
 - ''Initial Community Development (ICD) Plan:
 ICD Plan provision for Pudimadaka project enhanced.  Implementation of
 earlier approved ICD activities continued at Bilhaur project -
 Rehabilitation and Resettlement (R&R) Plan:
 R&R Plans for Vindhyachal-V and Rammam-III covering R&R obligations and
 community development facilities in the area of Health, Education,
 Sanitation, Drinking water, Infrastructure facilities finalized in
 consultation with stakeholders and approved.  R&R Plan provisions for
 Lara project enhanced to take care of additional requirement for IIIT,
 Raipur and for Darlipalli to take care of additional requirement for
 Sundargarh Medical College & Hospital.  R&R activities were implemented
 at the new Greenfield/Brownfield Thermal projects at Barh, Bongaigaon,
 Barethi, Darlipali, Gadarwara, Khargone, Muzaffarpur, Korba, Kudgi,
 Lara, Meja, Mouda, North-Karanpura, Solapur, Tanda, Unchahar-IV,
 Vallur, Vindhyachal-IV, Hydro projects at Koldam, Lata-Tapovan,
 Tapovan-Vishnugad and Coal Mining Projects at Pakri-Barwadih,
 Chhatti-Bariatu, Kerendari, Dulanga and Talaipalli wherein R&R
 Plans/packages were finalized in consultation and participation of the
 stakeholders and approved earlier as well as at Rammam-III and
 Vindhyachal-V projects where the R&R Plans have been approved during
 the year.
 Socio-economic Survey (SES)/ Need assessment Survey (NAS)/ Census and
 Survey (C&S):
 SES for Katwa, Meja railway siding and NAS for Pudimadaka completed.
 SES for Talcher-Thermal and C&S for Khargone railway siding is under
 Focus on Health:
 For the benefits of project affected persons and neighbouring
 population ''Mobile Health Clinic'' under R&R provisions at Kudgi,
 Nabinagar (NPGCL), Pakri- Barwadih and Nabinagar (BRBCL) projects
 started earlier continued during the year.
 17.2 Environment Management - Initiatives for preserving Environment
 Vision Statement on Environment Management: Going Higher on
 Generation, lowering GHG intensity Your Company has always envisaged
 environment protection as one of its prime responsibilities and focuses
 its efforts to mitigate the impact of its operation on surrounding
 environment To meet the environmental challenges of 21st century and
 beyond, the Company has adopted sound environment management practices
 and advanced environment protection system to minimize impact of power
 generation on environment Your Company is undertaking massive
 renovation & modernization to upgrade air pollution equipments to
 reduce SPM emissions well below current statutory limits.  It has
 adopted advanced and high efficiency technologies such as super
 critical boilers for commissioned and upcoming green field projects.
 Around 12-15% of the project cost is spent on various environment
 protection equipments such as Electrostatic Precipitators (ESPs),
 Liquid Waste Treatment Plants (LWTP), Ash Water Recirculation System
 (AWRS), dry ash extraction system, dust extraction, suppression system,
 ambient air quality monitoring system, flue gas conditioning system and
 desulphurization system etc.  Your company is augmenting its capacity
 by installing solar power systems and small hydel power systems
 attached to its thermal power stations, wherever possible, so as to
 encourage garnering of renewable energy resources. The 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 efficiency Electro-static Precipitators (ESPs) with efficiency of
 the order of 99.97% and above, with advanced control systems have been
 provided in all coal based stations to keep Particulate Matter (PM)
 below the prevailing permissible limits. All up-coming new plants are
 being provided with ESPs designed in such a manner that would cater to
 the notified future stringent norms.  Performance enhancement of ESPs
 operating over the years is being carried out by augmentation of ESPs
 fields, retrofitting of advanced ESP controllers and adoption of sound
 O&M practices. Flue Gas Conditioning systems have also been provided at
 our old units which are helping in reduction of SPM emissions below
 statutory limits even during coal quality variations due to blending of
 coal etc.  NOx control in coal fired plants is achieved by controlling
 its production by adopting best combustion practices (primarily through
 excess air and combustion temperatures controls). Over and above this,
 since tall stacks are provided in coal stations, gases 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
 Effluent called Ash Water Recirculation System (AWRS) and closed cycle
 condenser cooling water systems with higher Cycle of Concentration
 (COC), rain water harvesting wherever possible and reuse of treated
 sewage effluent for horticulture purposes are some of the measures
 implemented in most of the stations. All these measures have resulted
 in reduction of effluent discharge from the power plants of your
 Company.  In view of water stressed scenario, water conservation and
 reduction in water consumption per unit of generation has assumed great
 importance. NTPC has taken a proactive approach of making all its power
 stations to operate with ZLD (Zero liquid discharge) progressively in
 phases. Implementation of ZLD at six power plants are at various stages
 of implementation during this fiscal year.  In addition drain
 separation as pre requisite to ZLD has been completed in six stations
 viz. Singrauli, Faridabad, Ramagundam, Talcher Super, Gandhar and
 Kayamkulam.  This concerted effort of NTPC will not only conserve the
 water but also will be able the meet the requirements of recently
 notified environmental norm of water consumption by MoEF&CC
 17.2.3 Automation of environment measurement system:
 All the existing power stations are equipped with continuous ambient
 air quality monitoring stations (AAQMS) to capture the real time data
 of PM 10, PM 2.5, SO , NOx and access thereof viz., and access has been
 provided to the Regulators such as Central Pollution Control Board and
 State Pollution Control Boards. Additional ozone analyzers for ambient
 air are also being provided phase-wise at the existing stations.
 Continuous Emission Monitoring Systems (CEMS) to monitor emissions of
 SO2 and NOx in all its existing units on real time basis are installed
 and commissioned in addition to the opacity meter installed for
 monitoring of particulate emission. Installation of real time monitors
 for pollutants in effluents (EQMS) is also completed for all its
 existing projects. For all the upcoming projects, real time monitors
 for ambient air, effluents and emissions are included in the
 engineering packages during design stage itself.
 17.2.4 Revised Emission Norms
 Till 7th December, 2015, the emission norms for coal based thermal
 power stations stipulated emission limits for particulate matter only.
 For the control of gaseous pollutants in ambient air, a minimum stack
 height was stipulated. However, MOEF&CC vide notification dated 7th
 December, 2015, has stipulated the emission limits for Oxides of
 Nitrogen, Oxides of Sulphur and Mercury also.  The emission limits
 depend on the unit size and age of the unit and shall be applicable
 from 7th December, 2017. This shall require modifications in design of
 the power plants as well as additional pollution control systems. Your
 Company is designing its new power plants to comply with new norms.
 However, in older units, there may be constraints due to Technology
 being used, Space available for retrofitting and financial viability of
 the retrofits. The matter has been taken up with MOEF&CC and is being
 examined on case to case basis with respect to compliance.
 17.2.5 Tree Plantation:
 Your Company is undertaking tree plantation covering vast areas of land
 in and around its projects and till date about 23 million trees have
 been planted throughout the country.  The afforestation has not only
 contributed to the ''aesthetics'' but also helped in carbon sequestration
 by serving as a ''sink'' for pollutants released from the stations and
 thereby protecting the quality of ecology and environment.  Further,
 your Company has embarked upon long-term Memorandums with State
 authorities to assist National Commitment of INDC in COP 21, by
 planning to plant 10 million trees across the country.
 17.2.6 ISO 14001 & OHSAS 18001 Certification:
 All of your Company''s stations have been certified with ISO 14001 and
 OHSAS 18001 by reputed National and International certifying agencies
 as a result of sound environment management systems and practices.
 17.3 Quality Assurance and Inspection (QA&I)
 Your company continues to place great emphasis on quality, with the
 view to secure long term reliability and availability of its productive
 assets and the investments. This is ensured by committing adequate
 number of qualified and trained human resources for quality related
 activities, maintaining field laboratories at the construction sites
 and pursuing time tested systems & processes, resulting in world class
 standards of performance of the plants.  In your company, quality needs
 are identified & planned, keeping in mind the interests of all the
 stake holders, by interacting with major Power Equipment manufacturers
 of the world, thereby embracing the latest technologies available. The
 quality requirements associated with such technologies are rigorously
 pursued during manufacturing, erection & commissioning of various
 products/ systems/ services. The dynamic feedback system ensures that
 the gaps, if any, are filled through resetting the methods and
 standards resulting in continuous improvement Your company''s robust
 performance on all parameters, is a testimony to the soundness of the
 quality system deployed.  Your Company is represented on various
 technical committee of ISO and EC and is actively contributing in
 formulation and updating of power sector technical and quality
 standards/ guidelines, to serve the national as well as international
 community at large.
 17.4 Clean Development Mechanism (CDM)
 Your Company is addressing climate change issues proactively.
 Your Company has taken several initiatives in CDM projects in Power
 Sector. It has gone ahead with six projects in CDM foray. 8MW Small
 Hydro Power Project at Singrauli, 5MW each solar PV projects at Dadri,
 Port Blair (Andaman & Nicobar) and Faridabad solar power projects had
 already been registered with UNFCCC CDM Executive Board with estimated
 annual Certified Emission Reductions (CERs) potential of approx 68,000.
 Another two projects i.e. 50 MW Solar PV plant at Rajgarh (MP) and 10
 MW Solar PV Project at Unchahar are in advanced stage of registration
 with estimated annual CERs potential of approx. 88,000.
 17.5 Ash Utilisation
 During the year 2015-16, 588.28 lac tonnes of ash was generated and
 41.35% viz. 243.23 lac tonnes of ash had been utilized for various
 productive purposes.  Important areas of ash utilization are - cement &
 asbestos industry, ready mix concrete plants (RMC), road embankment,
 brick making, mine filling, ash dyke raising & land development Pond
 ash from all stations of your Company is being issued free of cost to
 all users. Fly ash is also being issued free of cost to fly ash/
 clay-fly ash bricks, blocks and tiles manufacturers on priority basis
 over the other users from all coal based thermal power stations. The
 funds collected from sale of ash is being maintained in the separate
 account and this fund is being utilized for development of
 infrastructure facilities, promotion and facilitation activities to
 enhance ash utilization.
 Your Company has an Ash Utilisation Policy, which is a vision document
 dealing with the ash utilization issue in an integral way from
 generation to end product. This policy aims at maximizing utilization
 of ash for productive usage along with fulfilling social and
 environmental obligations as a green initiative in protecting the
 nature and giving a better environment to future generations.  The
 quantity of ash produced, ash utilized and percentage of such
 utilization during 2015-16 from your Company''s Stations is at
 17.6 CenPEEP - towards enhancing efficiency and protecting Environment
 Your Company initiated a unique voluntary program of GHG emission
 reduction by establishing ''Center for Power Efficiency and
 Environmental Protection (CenPEEP)'' and under this program, it is
 estimated that cumulative CO2 avoided is 43.6 million ton since 1996,
 by sustained efficiency improvements.
 CenPEEP is working for efficiency and reliability improvement in
 stations through strategic initiatives, development and implementation
 of systems and introduction of new techniques & practices.
 Critical efficiency parameter aberrations and draft power consumption
 are monitored using PI based real time programs and dashboards. These
 programs assist operating engineers in tracking the gaps in heat rate
 and auxiliary power consumption and trending the degradation of
 equipment performance.
 CenPEEP is also working towards reduction in specific water consumption
 and auxiliary power consumption in coal and gas stations. A dedicated
 group CEETEM - Centre for Energy Efficient Technology & Energy
 Management, conducts regular Energy audits to identify potential
 improvement areas and improvement actions.  CenPEEP is actively
 involved in training and development of power professionals for company
 and other utilities in the power sector in the areas of Boiler &
 Auxiliaries, Turbine & Auxiliaries, Cooling Towers, RCM and PdM
 technologies etc.
 CenPEEP coordinated implementation of Perform, Achieve & Trade (PAT)
 scheme under Prime Minister''s National Mission on Enhanced Energy
 Efficiency (NMEEE) in NTPC coal & gas plants. Station specific action
 plans were jointly prepared and implemented. Your Company''s coal and
 gas stations exceeded the Net Heat Rate improvement targets and earned
 around 1,69,000 EScerts (Energy saving certificates) in PAT-1 cycle.
 However, formal notification is awaited.
 18.  NETRA - R&D Mission in Power Sector
 The Company as the leading power utility of the country, has allocated
 1% of PAT for R&D activities. Company has focused its research efforts
 to address the major concerns of the sector as well as the futuristic
 technology requirements of the sector. In this effort, your company has
 established NTPC Energy Technology Research Alliance (NETRA) as
 state-of-the-art centre for research, technology development and
 scientific services in the domain of electric power to enable seamless
 work flow right from concept to commissioning. The focus areas of NETRA
 are - Efficiency Improvement & Cost Reduction; New & Renewable Energy;
 Climate Change & Environmental protection which includes water
 conservation, Ash utilization & Waste Management Research Advisory
 Council (RAC) of NETRA comprising of eminent scientists and experts
 from India and abroad is in place to steer research direction.
 Scientific Advisory Council (SAC) provides directions for undertaking
 specific applied research projects aimed to develop techniques in power
 plant for efficient, reliable and environment friendly operation with
 emphasis on reducing cost of generation.  NETRA also provides Advanced
 Scientific Services to all its stations and many other utilities in the
 area of oil/water chemistry, environment, electrical, Rotor dynamics
 etc. for efficient performances.
 NETRA laboratories are accredited as per ISO 17025 and its NDT
 laboratory also been recognized as well known Remnant Life Assessment
 Organization under the Boiler Board Regulations,1950.
 The details of activities undertaken by NETRA are given in Annex-III
 which forms part of the Director''s Report
 Several Steps were taken for the proper propagation and implementation
 of Official Language Policy of Government of India in your Company.
 Meetings of Official Language Implementation Committee were held on
 25th June, 21st September, 28th December, 2015 & 24th March, 2016 in
 which the implementation of Hindi in the Organization was reviewed
 thoroughly.  Various Hindi competitions were organized during Hindi
 fortnight from 1st to 14th September, 2015 in the corporate office as
 well as in all other establishments of the Company.  Corporate Hindi
 Magazine Vidyut Swar was conferred, special commendation award by the
 TOLIC (Town Official Language Implementation Committee), Delhi. Hindi
 workshops were conducted for the various departments of the Company.
 Renowned Hindi scholars inspired the participants of Hindi workshops to
 use Hindi in their day- to-day official work.  Office orders, formats
 and circulars were issued in Hindi as well. Important advertisements
 and house journals were released in bilingual form in Hindi as well as
 in English.  Your Company''s website also has a facility of operating in
 bilingual form, in Hindi as well as in English.
 20.1 Vigilance Mechanism
 Your Company ensures transparency, objectivity and quality of decision
 making in its operations, and to monitor the same, the Company has a
 Vigilance Department headed by Chief Vigilance Officer, a nominee of
 Central Vigilance Commission. Vigilance set up comprises of Vigilance
 Executives in Corporate Centre and Projects. Corporate Vigilance
 consists of four cells namely Investigation & Processing Cell,
 Departmental Proceedings Cell, Technical Examination Cell and MIS Cell
 deal with various facets of vigilance mechanism. For speedier disposal
 of vigilance cases, works have been assigned to Vigilance Executive at
 each of the regions of the Company.  376 surprise checks were made
 during the period.
 20.2 Implementation of Integrity Pact
 Your Company is committed to have total transparency to its business
 processes and as a step in this direction; it signed a Memorandum of
 Understanding with Transparency International India in December, 2008.
 The Integrity Pact is being implemented for all contracts having value
 exceeding Rs. 10 crore. Presently, your Company is having two
 Independent External Monitors to oversee the implementation of
 Integrity Pact Programme.
 20.3 Implementation of various policies/ circulars
 Fraud Prevention Policy and Whistle Blower Policy have been implemented
 in your Company to build and strengthen a culture of transparency. Your
 Company has also laid down a comprehensive policy for withholding and
 banning of business dealings with agencies, wherever the situation so
 During 2015-16, 161 complaints were received, out of which 93
 complaints were carried to a logical conclusion and the remaining 68
 complaints are under various stages of investigation. Appropriate
 disciplinary action has also been initiated wherever necessary.
 20.4 Vigilance Awareness Week and Workshops
 During 2015-16, 51 preventive vigilance workshops were conducted at
 various projects/ places in which 1,371 employees participated.
 Vigilance awareness week was observed from October 26, 2015 to October
 31, 2015 in all NTPC projects and stations/ establishments. The theme
 for the Vigilance Week was ''Preventive Vigilance as a Tool of Good
 Governance'', during which various competitions amongst the employees
 like slogan writing/ essay writings were held. A special booklet titled
 ''Handbook for Vigilance Executives'' was also published containing
 guidelines for vigilance executives for conducting technical
 examination of packages, investigations alongwith circular issued by
 the Vigilance Commission.
 Besides these, as advised by the Vigilance Commission, NTPC also
 conducted outreach activities during Vigilance Awareness Week in total
 405 Colleges/ Schools/ Institutions all over the country, organizing
 elocutions, debates, lectures etc on ethics, integrity and corruption
 and its ill effects for students.
 Your Company is committed for resolution of public grievance in
 efficient and time bound manner. Company Secretary has been designated
 as Director (Grievance) to facilitate earliest resolution of public
 grievances received from President Secretariat, Prime Minister''s
 Office, Ministry of Power etc.
 In order to facilitate resolution of grievances in transparent and time
 bound manner, Department of Administrative Reforms & Public Grievances,
 Department of Personnel & Training, Government of India has initiated
 web-based monitoring system at  As per directions
 of GOI, public grievances are to be resolved within two months time. If
 it is not possible to resolve the same within two months period, an
 interim reply is to be given. Your company is making all efforts to
 resolve grievances in above time frame.
 Your Company has implemented Right to Information Act, 2005 in order to
 provide information to citizens and to maintain accountability and
 transparency. The Company has put RTI manual on website for access to
 all citizens of India and has designated a Central Public Information
 Officer (CPIO), an Appellate Authority and APIOs at all sites and
 offices of the Company.
 During 2015-16, 1,456 applications were received under the RTI Act, out
 of which 1,384 applications were replied to, till 31.03.2016.
 Your Company has implemented an Enterprise Resource Planning (ERP)
 package covering maximum possible processes across the organization
 including subsidiaries. In addition to the core business processes and
 Employee Self Service (ESS) functionality, the ERP solution also
 includes e-procurement, Knowledge Management, Business Intelligence,
 Document Management, and Workflow etc.  The ERP system is fully managed
 through in-house expertise from process groups and technical groups.
 Parallely, in- house solutions have been developed to take care of the
 non-ERP areas.
 A state of the art data centre with centralized server facility for ERP
 to cater to the entire Company is in Operation at NOIDA A 100% disaster
 recovery centre is also operational at Hyderabad for change over in
 case of any emergency.  During the year under review, security
 operation centre had been commissioned to counter and mitigate security
 risks and no severe threats were observed. Project Monitoring Centre
 was upgraded to High Definition system.  Disaster Recovery mechanism
 was 100% available during the year. Vendors Bill Tracking system
 launched for pilot site i.e. Dadri. Online Earnest Money Deposit refund
 process was implemented.
 Your Company has currently 5 subsidiary companies and 22 joint venture
 companies for undertaking specific business activities.
 A statement containing the salient feature of the financial statement
 of your Company''s Subsidiaries, Associate Companies and Joint Ventures
 as per first proviso of section 129(3) of the Companies Act, 2013 is
 included in the consolidated financial statements. It does not contain
 information about Hindustan Urvarak & Rasayan Limited, which was
 incorporated on 15.06.2016.  The financial statements of subsidiary
 companies along with the respective Directors'' Report are placed
 elsewhere in this Annual Report.
 Information required to be furnished as per the Companies Act, 2013 and
 Listing Agreement with Stock Exchanges are as under:
 25.1 Statutory Auditors
 The Statutory Auditors of your Company are appointed by the Comptroller
 & Auditor General of India. Joint Statutory Auditors for the financial
 year 2015-16 were (i) M/s T R Chadha & Co., LLP, New Delhi (ii) M/s PSD
 Associates, Chartered Accountants, New Delhi, (iii) M/s Sagar &
 Associates, Chartered Accountants, Hyderabad, (iv) M/s Kalani & Co.,
 Chartered Accountants, Jaipur, (v) M/s P. A & Associates, Chartered
 Accountants, Bhubaneshwar, (vi) M/s S. K. Kapoor & Co., Chartered
 Accountants, Kanpur and (vii) M/s B. M.  Chatrath & Co., Chartered
 Accountants, Kolkata.  The appointment of Statutory Auditors for the
 financial year 2016-17 has been made by the Comptroller & Auditor
 General of India.
 25.2 Management comments on Statutory Auditors'' Report
 The Statutory Auditors of the Company have given an un- qualified
 report on the accounts of the Company for the financial year 2015-16.
 However, they have drawn attention under ''Emphasis of Matter'' to Note
 No. 12 (i) & 35 (a) in respect of change in accounting of capital
 expenditure on assets not owned by the Company with retrospective
 effect taking guidance available in AS 10 notified by MCA on 30th March
 2016 effective from the financial year 2016-17; Note No. 22 (a) & (b)
 regarding billing & recognition of sales on provisional basis and
 measurement of GCV of coal on ''as received'' basis after secondary
 crusher pending disposal of the matter by CERC/Hon''ble Delhi High Court
 and related matters as mentioned in said note; and Note No. 33 in
 respect of a Company''s ongoing project where the order of NGT has been
 stayed by the Hon''ble Supreme Court of India and the matter is
 sub-judice.  The issues have been adequately explained in the
 respective Notes referred to by the Auditors.
 25.3 Review of accounts by Comptroller & Auditor General of India
 As advised by the Office of the C&AG, the comments of C&AG for the year
 2015-16 alongwith management replies thereto are placed with the report
 of Statutory Auditors of your Company elsewhere in this Annual Report.
 As prescribed under the Companies (Cost Records and Audit) Rules, 2014,
 the Cost Accounting records are being maintained by all stations of
 your Company.  The firms of Cost Accountants appointed under Section
 148(3) of the Companies Act, 2013 for the financial year 2015-16 were
 (i) M/s Bandopadhyay Bhaumik & Co., Kolkata, (ii) M/s S. Dhal & Co.,
 Bhubhaneshwar (iii) M/s Musib & Co., Mumbai, (iv) M/s Sanjay Gupta &
 Associates, New Delhi, (v) M/s Narasimha Murthy & Co., Hyderabad, and
 (vi) M/s RJ. Goel & Co., Delhi.  The due date for filing consolidated
 Cost Audit Report in XBRL format for the financial year ended March 31,
 2015 was September 30, 2015 and the consolidated Cost Audit Report for
 your Company was filed with the Central Government on September 22,
 2015.  The Cost Audit Report for the financial year ended March 31,
 2016 shall be filed within the prescribed time period under the
 Companies (Cost Records & Audit) Rules, 2014.
 25.5 Exchange Risk Management
 Company is exposed to foreign exchange risk in respect of contracts
 denominated in foreign currency for purchase of plant and machinery,
 spares and fuel for its projects/ stations and foreign currency loans.
 In term of its Exchange Risk Management Policy, during financial year
 2015-16, the Company has entered into derivative contracts amounting to
 USD 62 million equivalent in different currencies in respect of foreign
 currency loans exposure.
 25.6 Performance Evaluation of the Directors and the Board
 As required under the Companies Act, 2013 and the Securities and
 Exchange Board of India (Listing Obligations and Disclosure
 Requirements) Regulations, 2015, evaluation of performance of directors
 including that of the Independent Directors and of the Board is to be
 carried out either by the Board or by the Nomination and Remuneration
 Committee or by the Independent Directors. It also requires disclosure
 of formulated criteria for performance evaluation in Annual Report.  In
 this regard, the Ministry of Corporate Affairs, through Notification
 dated 05.06.2015, has exempted the Government Companies from these
 provisions. The appointment of the Functional Directors, Government
 Nominee Directors and Independent Directors of your Company is made by
 the Government of India. Their terms & conditions of appointment as
 well as tenure of all directors are also decided by GOI and there is a
 well laid down procedure for evaluation of Functional Directors & CMD
 as well as of Government Directors by Administrative/ respective
 Ministry. Also, the performance of the Board of the Government
 Companies is evaluated during the performance evaluation of the MOU
 signed with the Government of India.
 Your Company has made representation to SEBI for exempting Government
 Companies from evaluation of Directors and the Board. The matter is
 under consideration by the SEBI.
 25.7 Secretarial Audit
 The Board has appointed M/s Agarwal S. & Associates, Company
 Secretaries, to conduct Secretarial Audit for the financial year
 2015-16. The Secretarial Audit Report for the financial year ended
 March 31, 2016 is annexed herewith marked as Annexure XI to this
 Report.  The Managements'' Comments on Secretarial Audit Report are as
 Observations             Management''s Comments
 Regulation 17(1)         As per the Listing Agreements
 of Securities and        executed with the Stock Exchanges
 Exchange Board           pursuant to SEBI LODR Regulations,
 of India (Listing        2015 and DPE Guidelines on
 Obligation               Corporate Governance by CPSEs,
 & Disclosure             the Company should have eight 
 Requirements)            Independent Directors since 
 Regulations,             Company has six functional
 2015 (erstwhile          Directors including the Chairman 
 Clause 49 (II) (A)       & Managing Director and two 
 & (B) of the Listing     Government Nominee Directors 
 Agreement) and           on its Board. At present, Company 
 Clause 3.1.2             has three Independent Directors in 
 and 3.1.4 of             position.
 DPE Guidelines           Being a Government Company the
 on Corporate             power to appoint the Directors on
 Governance               the Board of the Company vests
 for Central              with the President of India and
 Public Sector            accordingly, the Company is, from
 Enterprises w.r.t.       time to time, requesting Ministry
 composition of           of Power to appoint requisite
 the Board of the         number of Independent Directors
 Company.                 on its Board.
 25.8 Particulars of contracts or arrangements with related parties
 During the period under review, your Company had not entered into any
 material transaction with any of its related parties. The Company''s
 major related party transactions are generally with its subsidiaries
 and associates. All related party transactions were in the ordinary
 course of business and were negotiated on an arm''s length basis except
 with Utility Powertech Limited, which are covered under the disclosure
 of Related Party Transactions in Form AOC-2 (Annex- IX) as required
 under Section 134(3)(h) of the Companies Act, 2013. They were intended
 to further enhance the Company''s interests.  Web-link for Policy on
 Materiality of Related Party Transactions & also on Dealing with
 Related Party Transactions has been provided in the Report on Corporate
 Governance, which forms part of the Annual Report.
 25.9 Significant and material orders passed by the regulators or courts
 or tribunals impacting the going concern status and company''s
 operations in future: NIL
 25.10 Adequacy of internal financial controls with reference to the
 financial reporting:
 The Company has in place adequate internal financial controls with
 reference to financial reporting. During the year, such controls were
 tested and no reportable material weakness in the design or operation
 was observed.
 25.11 Loans and Investments
 Details of Investments covered under the provisions of Section 186 of
 the Companies Act, 2013 forms part of financial statement attached as a
 separate section in the Annual Report FY 2015-16.
 Your Company had not granted any loans to parties during 2015-16
 covered under Section 186 of the Companies Act, 2013.
 25.12 Sexual Harassment of Women at Workplace
 The Company has in place a Policy on Prevention, Prohibition and
 Redressal of Sexual Harassment of Women at Workplace in line with the
 requirements of the Sexual Harassment of Women at the Workplace
 (Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints
 Committee (ICC) has been set up to redress complaints received
 regarding sexual harassment All employees (permanent contractual,
 temporary, trainees) are covered under this policy.
 These ICCs have been constituted at all Projects/ stations also. Every
 three years, the constitution of these committees is changed and new
 members are nominated.  No complaint of sexual harassment was received
 by the ICC during the year 2015-16.
 NTPC PMI has been conducting gender sensitization workshops for
 building a collaborative work culture across the organisation, in
 association with the National Commission for Women. In these workshops,
 employees, both male and female, are sensitized and made aware about
 issues and laws pertaining to sexual harassment as well as appropriate
 behavior at the workplace. During 2015-16, PMI has conducted 12 such
 workshops across the organization covering 250 employees.
 25.13 Procurement from MSEs
 The Government of India has notified a Public Procurement Policy for
 Micro and Small Enterprises (MSEs), Order 2012.  The total procurement
 made from MSEs (including MSEs owned by SC/ST entrepreneurs) during the
 year 2015-16 was Rs. 559.51 crore, which was 12.53% of total annual
 procurement by your Company. Your Company orgainsed 12 vendor
 development programmes for MSMEs. Annual procurement plan for purchases
 from MSEs is uploaded on
 25.14 Particulars of Employees
 As per provisions of Section 197(12) of the Companies Act, 2013 read
 with the Rule 5 of the Companies (Appointment and Remuneration of
 Managerial Personnel) Rules, 2014, every listed company is required to
 disclose the ratio of the remuneration of each director to the median
 employee''s remuneration and details of employees receiving remuneration
 exceeding limits as prescribed from time to time in the Directors''
 However, as per notification dated 5th June, 2015 issued by the
 Ministry of Corporate Affairs, Government Companies are exempted from
 complying with provisions of Section 197 of the Companies Act, 2013.
 Therefore, such particulars have not been included as part of
 Directors'' Report
 25.15 Extract of Annual Return:
 Extract of Annual Return of the Company is annexed herewith as Annexure
 VI to this Report.
 25.16 Information on Number of Meetings of the Board held during the
 year, composition of committees of the Board and their meetings held
 during the year, establishment of vigil mechanism/ whistle blower
 policy and web-links for familiarization/ training policy of directors,
 Policy on Materiality of Related Party Transactions and also on Dealing
 with Related Party Transactions and Policy for determining ''Material''
 Subsidiaries have been provided in the Report on Corporate Governance,
 which forms part of the Annual Report
 25.17 Para on development of risk management policy including therein
 the elements of risks are given elsewhere in the Annual Report.
 25.18 No disclosure or reporting is required in respect of the
 following items as there were no transactions on these items during the
 year under review:
 1. Issue of equity shares with differential rights as to dividend,
 voting or otherwise.
 2. Issue of shares (including sweat equity shares) to employees of the
 Company under any scheme.
 The particulars of annexures forming part of this report are as under:
 Particulars                                                  Annexure
 Management Discussion & Analysis                                 I
 Report on Corporate Governance                                  II
 Information on conservation of                                 III
 energy, technology absorption and
 foreign exchange earnings and outgo
 Statistical information on persons                              IV
 belonging to Scheduled Caste /
 Scheduled Tribe categories
 Information on Differently abled                                 V
 Extract of Annual Return                                        VI
 Annual Report on CSR Activities                                VII
 Project Wise Ash Utilisation                                  VIII
 Disclosure of Related Party                                     IX
 Transactions in Form AOC-2
 Business Responsibility Report for the                           X
 year 2015-16
 Secretarial Audit Report in Form MR-3                           XI
 Shri I.J. Kapoor resigned from the post of Director (Commercial) on
 20.08.2015 on being appointed as Technical Member of the Appellate
 Tribunal for Electricity.
 Consequent upon completion of three years'' tenure, Dr. A. Didar Singh
 had ceased to be the Independent Director w.e.f. August 22, 2015.  Shri
 Rajesh Jain and Dr (Mrs.) Gauri Trivedi had been appointed as
 Independent Directors w.e.f.  18.11.2015 for a period of three years.
 Shri Anil Kumar Singh ceased to be the Government Nominee Director
 w.e.f. 08.12.2015 consequent his transfer from Ministry of Power.  Shri
 Aniruddha Kumar, JS (Thermal), Ministry of Power has joined as
 Government Nominee Director of the Company with effect from 25.02.2016.
 Shri Seethapathy Chander has been appointed as the Independent Director
 on the Board w.e.f.  22.06.2016.
 On completion of five years'' tenure, Dr. Arup Roy Choudhury ceased to
 be the Chairman & Managing Director of the Company w.e.f. 31.08.2015
 (A/N).  In the absence of regular Chairman & Managing Director, the
 Ministry of Power, through order dated 28.08.2015, entrusted the
 additional charge of the post of Chairman & Managing Director, to Shri
 A.K.  Jha, Director (Technical). He held the additional charge from
 01.09.2015 to 03.02.2016, after which Shri Gurdeep Singh joined as the
 Chairman & Managing Director of the Company on 04.02.2016.  On
 Completion of three years'' tenure, Shri Prashant Mehta has ceased to be
 the Independent Director of the company w.e.f. 29.07.2016 (A/N).  The
 Board wishes to place on record its deep appreciation for the valuable
 services rendered by Shri I.J. Kapoor, Dr. A. Didar Singh, Dr. Arup Roy
 Choudhury, Shri Anil Kumar Singh and Shri Prashant Mehta during their
 association with the Company.  In accordance with Section 152 of the
 Companies Act, 2013 and the provisions of the Articles of Association
 of the Company- Shri S.C. Pandey and Shri K. Biswal shall retire by
 rotation at the Annual General Meeting of your Company and, being
 eligible, offers themselves for re-appointment.
 As required under Section 134 (5) of the Companies Act, 2013, your
 Directors confirm that:
 1.  in the preparation of the annual accounts, the applicable
 accounting standards had been followed along with proper explanation
 relating to material departures;
 2.  the Directors had selected such accounting policies and applied
 them consistently and made judgments and estimates that are reasonable
 and prudent so as to give a true and fair view of the state of affairs
 of the company at the end of the financial year 2015-16 and of the
 profit of the company for that period;
 3.  the Directors had taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Companies Act, 2013 for safeguarding the assets of
 the company and for preventing and detecting fraud and other
 4.  the Directors had prepared the Annual Accounts on a going concern
 5.  the Directors, had laid down internal financial controls to be
 followed by the company and that such internal financial controls are
 adequate and were operating effectively; and
 6.  the Directors had devised proper systems to ensure compliance with
 the provisions of all applicable laws and that such systems were
 adequate and operating effectively.
 The Directors of your Company acknowledge with deep sense of
 appreciation, the co-operation received from the Government of India,
 particularly the Prime Minister''s Office, Ministry of Power, Ministry
 of New & Renewable Energy, Ministry of Finance, Ministry of
 Environment, Forests & Climate Change, Ministry of Coal, Ministry of
 Petroleum & Natural Gas, Ministry of Railways, Department of Public
 Enterprises, Central Electricity Authority, Central Electricity
 Regulatory Commission, Comptroller & Auditor General of India,
 Appellate Tribunal for Electricity, State Governments, Regional Power
 Committees, State Utilities and Office of the Attorney General of
 The Directors of your Company also convey their gratitude to the
 shareholders, various international and Indian Banks and Financial
 Institutions for the confidence reposed by them in the Company.  The
 Board also appreciates the contribution of contractors, vendors and
 consultants in the implementation of various projects of the Company.
 We also acknowledge the constructive suggestions received from the
 Office of Comptroller & Auditor General of India 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
                                                         (Gurdeep Singh)
                                           Chairman & Managing Director
 Place: New Delhi                                        DIN : 00307037
 Date: 3rd August , 2016
Source : Dion Global Solutions Limited
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