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Download Annual Report PDF Format 2013 | 2012 | 2011 | 2010
Directors Report Year End : Mar '14    « Mar 13
Dear Members,
 
 The Directors are pleased to present the 38th Annual Report and the
 audited financial statements for the year ended March 31, 2014.
 
 Financial Year 2013-14 has been yet another year of achievements for
 your Company. With the addition of 1,835 MW capacity (including 610 MW
 through JV Companies) during the year, your Company crossed 43,000 MW
 capacity reaching a total capacity of 43,108.31 MW. Major highlights
 for the year are:
 
 - Commissioned solar plants of 65 MW capacity during the year. With the
 commercialization of 20 MW Rajgarh Solar Power Project on 30.04.2014,
 cumulative solar capacity of 95 MW has already been commissioned, which
 is a substantial contribution to renewable energy.
 
 - Declared 2,675 MW (including 1,110 MW through JV Companies) on
 commercial generation. Total commercial capacity of NTPC group has
 become 41,879 MW.
 
 - Average PLF of 81.50% as against all India PLF of 65.55% with four
 stations recording more than 90% PLF.
 
 - Exceeded the Capital expenditure (CAPEX) target of Rs.20,200 crore.
 CAPEX target was Rs. 21,797.24 crore as against the previous years
 target ofRs. 19,925.53 crore.
 
 - 100% realization of current bills from customers.
 
 - Recorded total income of Rs. 74,707.82 crore, an increase of 8.5% as
 compared to Rs. 68,855.81 crore in the FY 2012-13. Net profit after Tax
 (PAT) of Rs. 10,974.74 crore against previous years PAT of Rs.12,619.39
 crore. (PAT for financial year 2012-13, includes a write-back of
 provision of Rs.835.97 crore and an Exceptional item of income of
 Rs.1,684.11 crore towards interest. Both these relates to payment towards
 settlement of dues of erstwhile DESU).
 
 - Dividend of Rs.5.75 per share (total Rs.4,741.15 crore) which comprises
 interim dividend of Rs. 4.00 per equity share paid in February 2014 and
 recommendation for final dividend of Rs. 1.75 per equity share for the
 year 2013-14, subject to approval of the shareholders.
 
 - Coal Supply Agreements signed for 14,010 MW capacity commissioned/ to
 be commissioned between April 2009 to March 2015.
 
 - Operation started on Inland Waterways Transportation of Imported Coal
 for Farakka station and about 2 lac MT imported coal has been supplied
 through this mode to Farakka.
 
 - Issued Tax-free, Secured, Redeemable Non-Convertible Bonds having tax
 benefits under Section 10 (15) (iv) (h) of the Income Tax Act, 1961
 for an aggregate amount of Rs.2,250 crore. Out of Rs.2,250 crore, bonds of
 Rs.1,750 crore were issued to the public through the Stock Exchanges,
 which received over-whelming response and was over- subscribed by 3.7
 times and bonds of Rs.500 crore were issued under private placement.
 
 - Excellent MOU rating by Government of India for the year 2012-13.
 
 - NTPC was the only PSU among the top 35 companies, ranked 6th in the
 prestigious study of The Economic Times and Great Place to Work
 Institute for 2013 covering 550 companies, 22 industries and close to
 1 lac employees.
 
 You will appreciate the fact that even amid the general down turn in
 the economy and market (including the financial markets), the company
 demonstrated the tremendous investor confidence enjoyed by it and
 recorded excellent performance despite the challenge before the sector.
 
 1.  FINANCIAL RESULTS
 
                                    2013-14              2012-13
 
 Revenue                     Rs. Crore     US $ Mn*     Rs. Crore  US $ Mn*
 
 Net Revenue from Operations 
 (including Energy Sales,    72,018.93  11,882.35    65,737.04  10,845.91 
 Consultancy, Energy consumed
 internally)
 
 Other Income                 2,688.89     443.64     3,118.77     514.56
 
 Total Revenue               74,707.82  12,325.99    68,855.81  11,360.47
 
 Expenses
 
 Fuel                        45,829.71   7,561.41    41,018.25   6,767.57
 
 Employee Benefits Expense    3,867.99     638.18     3,415.96     563.60
 
 Finance Costs                2,406.59     397.06     1,924.36     317.50
 
 Depreciation and 
 amortization expense         4,142.19     683.41     3,396.76     560.43
 
 Generation, administration 
 & other expenses             4,543.85     749.69     4,235.68     698.84
 
 Prior period items (net)        12.84       2.12       (29.72)    (4.90)
 
 Total Expenses              60,803.17  10,031.87    53,961.29  8,903.04
 
 Profit before Tax and 
 exceptional items           13,904.65   2,294.12    14,894.52  2,457.43
 
 Exceptional items              -            -        1,684.11    277.86
 
 Profit before tax           13,904.65   2,294.12    16,578.63  2,735.29
 
 Tax Expense                  2,929.91     483.40     3,959.24    653.23
 
 Profit for the year         10,974.74   1,810.71    12,619.39  2,082.06
 
                                     2013-14             2012-13
 
 Appropriations:
 
                           Rs. Crore   US $ Mn*    Rs. Crore    US $ Mn*
 
 Transfer to bond 
 redemption reserve         576.08      95.05        492.79     81.31
 
 Transfer to general 
 reserve                  5,000.00     824.95      6,500.00  1,072.43
 
 Transfer to capital 
 reserve                      4.98       0.82          0.97      0.16
 
 Interim dividend         3,298.19     544.17      3,092.07    510.16
 
 Proposed dividend        1,442.96     238.07      1,649.09    272.08
 
 Tax on dividend            804.74     132.77        781.87    129.00
 
 *1US $= Rs. 60.61 as on March 31, 2014
 
 2.  OFFER FOR SALE TO EMPLOYEES
 
 In terms of CCEAs approval dated 26.11.2012 and Department of
 Disinvestments communication dated 26.06.2013, Offer for Sale of
 NTPCs Equity Shares by Government of India to the Eligible Employees
 was successfully concluded and the proceeds amounting to
 Rs.48,16,38,656/- was credited to the account of Government of India. A
 total of 34,83,320 shares were allotted to 3,407 employees.
 
 Consequent upon sale of shares from Government of India to the eligible
 employees, the equity holding of Government of India in NTPC has
 reduced to 74.96% from 75%.
 
 3.  DIVIDEND
 
 3.1 Interim and Final Dividend:
 
 In addition to interim dividend of Rs. 4.00 per equity share paid in
 February 2014, your Directors have recommended a final dividend of Rs.
 1.75 per equity share for the year 2013-14. With this the total
 dividend for the year is Rs.5.75 per equity share of Rs.10/- each. In the
 year 2012-13 also, the total dividend paid was Rs.5.75 per equity share
 of Rs.10/- each (including special dividend of Rs.1.25 per share).
 
 The total dividend payout is 43.20% and the total dividend payout
 including dividend tax is 50.53% of profit after tax. The final
 dividend shall be paid after your approval at the Annual General
 Meeting.
 
 The dividend has been recommended in accordance with your Companys
 policy of balancing dividend pay-out with the requirement of deployment
 of internal accruals for its growth plans.
 
 Your Directors believe that growth of the company through capacity
 addition, backward and forward integration and strategic diversifi
 cation of its operations would lead to increase in shareholders value.
 
 4.  OPERATIONAL PERFORMANCE
 
 4.1 Generation:
 
 During the year, the power stations of your Company generated 233.284
 BUs (248 BUs including JVs) of electricity (including solar power)
 which was 24.26% (25.80% including that generation by JVs) of the total
 power generated in India (without Bhutan import).
 
 The total power generated by the Company has registered an increase of
 0.54% over the previous years generation of 232.028 BUs. The total
 generation contributed by coal stations is 220.700 BUs during the year
 against generation of 212.329 BUs last year registering a growth of
 3.94%.
 
 Generation from coal based units could have been still higher but due
 to less generation schedule there was generation loss of 23.083 BUs.
 The coal based stations of your company operated at average Plant Load
 Factor (PLF) of 81.50% (All India PLF 65.55%) and average Availability
 Factor of 90.32% on bus bar during the year. During the year, 4 coal
 based stations out of 16 achieved more than 90% PLF.
 
 The gas stations having a capacity of 4,017 MW achieved annual
 generation of 12.569 BUs at a PLF of 35.72% as against 19.699 BUs last
 year mainly due to less generation schedule which accounted for a
 generation loss of 20.652 BUs. The average declared capacity of gas
 based stations for the year was 95.24% as compared to 93.14% during
 previous year.
 
 Management Discussion and Analysis Report
 
 Management Discussion and Analysis Report for the year under review, as
 stipulated under Clause 49 of the Listing Agreement with the Stock
 Exchanges in India and as per Guidelines on Corporate Governance for
 CPSEs issued by Department of Public Enterprises, GOI, is presented in
 Annex-I to this Report.
 
 5.  COMMERCIAL PERFORMANCE
 
 5.1 Billing and Realisation
 
 Your Company has realized 100% payment of current bills raised for sale
 of power, thus achieving this feat for the eleventh consecutive year.
 
 Most of the customers were making their payments within 60 days of
 billing and had established LCs at 105% of the average monthly billing.
 
 The Company has realized Rs.2,520.08 Crore (Rs. 835.97 crore as principal
 and Rs. 1,684.11 crore as interest and surcharge) towards DESU dues
 payable by Government of NCT of Delhi.
 
 5.2 Rebate Scheme for realization of dues:
 
 In order to encourage early and full realization of dues, your Company
 has formulated a special scheme called NTPC Rebate Scheme. In this
 Scheme for 2013-14, graded rebate was given to those customers who were
 making due payment upto 55th day of billing.  The Rebate Scheme for
 2014-15 has been modifi ed to align with CERC Regulations for 2014-19
 keeping other provisions similar to 2013-14.
 
 5.3 Commercial Capacity:
 
 The following units were declared commercial during the year 2013-14,
 adding 2,675 MW (including 65MW of solar capacity) to commercial
 capacity of your Company:
 
 Project/ Unit                        Capacity           COD*
                                       (MW)
 
 NTPC Units- Coal Based (I)
 
 Rihand-III, Unit#2                     500        27.03.2014
 
 Vindhyachal-IV, Unit#2                 500        27.03.2014
 
 Mauda-I, Unit#2                        500        30.03.2014
 
 Total (I)                            1,500
 NTPC Units-Renewable Energy Units (II)
 
 Ramagundam Solar PV                     10        29.01.2014
 
 Talcher Solar PV                        10        28.03.2014
 
 Faridabad Solar PV                       5        31.03.2014
 
 Unchahar Solar PV                       10        31.03.2014
 
 Rajgarh Solar PV                        30        31.03.2014
 
 Total (II)                              65
 
 NTPCs JV Units- Coal Based (III)
 
 Jhajjar, Unit#3 (JV with IPGCL         500        26.04.2013
 and HPGCL)
 
 Vallur, Unit#2 (JV with                500        25.08.2013
 TANGEDCO)
 
 Kanti, Unit#1 (subsidiary of           110        01.11.2013
 
 NTPC in JV with BSPGCL)
 
 Total (III)                          1,110
 
 Total Capacity declared              2,675
 commercial during 2013-
 14(incl. JVs) (I)+(II)+(III)
 
 * COD- Commercial Operation Date
 
 Further, after the close of financial year 2013-14, 20 MW capacity of
 Rajgarh Solar PV was declared commercial on 30.04.2014.
 
 5.4 Tariff Regulations:
 
 Central Electricity Regulatory Commission (CERC) has issued the CERC
 (Terms and Conditions of Tariff) Regulations, 2014 on 21.02.2014, which
 are applicable for the period 01.04.2014 to 31.03.2019. The tariff of
 electricity generated from NTPC stations would be determined by CERC
 based on these regulations for the above mentioned period. The salient
 features of Tariff Regulations 2014-19 are discussed in the Management
 Discussion and Analysis Report.
 
 Being aggrieved on certain provisions of the CERC (Terms and Conditions
 of Tariff) Regulations, 2014, your Company has filed a writ petition
 before the Honble High Court of Delhi.
 
 5.5 Strengthening Customer Relationship:
 
 Customer Relationship Management (CRM) initiative has been taken by
 your company towards strengthening relationship with the customers.
 This is also refl ected in the Core Values of your Company (BE
 COMMITTED) which emphasize Customer Focus as one of the key values of
 NTPC.
 
 Under CRM, your Company has designed and executed several structured
 activities with the objective of sharing of experiences, capturing the
 feedback and expectations.  Based on the feedback received from the
 customers, the Company provides various support services to them,
 identifi es potential areas of cooperation and shares best practices
 with the customer utilities. During 2013-14, 62 such services were
 provided to the customers on the basis of the requirement expressed by
 various customers.
 
 Your Company conducted Power Meet with top level officials and
 Business Partner Meets with middle level officials of beneficiaries
 to discuss various issues and sharing of experiences. In 2013-14, Power
 Meet was organized with the top officials of Southern Region benefi
 ciaries and 4 Business Partner Meets were conducted with 9 benefi
 ciaries of different regions.
 
 Besides the above, NTPC has rolled out a Customer Satisfaction Index
 (CSI) Survey for gathering customers feedback and responding to their
 requirements. This initiative serves as a useful tool for further
 strengthening Customer Relationship and better appreciation of our
 business.
 
 5.6 Other Activities:
 
 250 MW power has been allocated by the Ministry of Power from the
 unallocated quota of NTPC stations for export to Bangladesh through
 NVVN.
 
 6.  INSTALLED CAPACITY
 
 6.1 Installed Capacity of NTPC Group:
 
 During the year 2013-14, your Company added 1,835 MW as per details
 given below:
 
 Project/ Unit installed during                 Capacity (MW)
 FY 2013-14
 
               NTPC owned
 
           Coal Based Power Projects
 
 Barh-II, Unit#4                                    660
 
 Rihand, Unit # 6                                   500
 
 Renewable Energy Projects
 
 Ramagundam Solar PV                                 10
 
 Unchahar Solar PV                                   10
 
 Talcher Kaniha Solar PV                             10
 
 Faridabad Solar PV                                   5
 
 Rajgarh Solar PV                                    30
 
 Under JVs (Coal Based Power Projects)
 
 Kanti (subsidiary of NTPC in JV with               110
 BSPGCL), Unit#1
 
 Vallur (JV with TANGEDCO), Unit# 3                 500
 
 Addition during FY 2013-14                       1,835
 
 With above capacity addition during 2013-14, capacity added in the fi
 rst two years of 12th Plan Period has reached 6,005 MW against 12th
 Plan target of 14,038 MW.
 
 The total installed capacity of the NTPC Group was 41,184 MW as on
 31.03.2013. For gas based power projects, till now the capacity was
 indicated based on Net Guaranteed Output as per Main Plant Specifi
 cations.  It has been revised to capacity at Generator Terminal w.e.f.
 01.04.2014. Accordingly, the installed capacity as on 01.04.2014 has
 become 43,108.31 MW as tabulated below:
 
 Owned by NTPC                         MW
 
 Coal based projects                33,015.00
 
 Gas based projects                  4,017.23
 
 Renewable Energy Projects              75.00
 
 Sub-total                          37,107.23
 Joint Ventures & Subsidiaries
 
 Coal based projects                 4,034.00
 
 Gas based projects                  1,967.08
 
 Sub-total                           6,001.08
 
 Total                              43,108.31
 
 7.  CAPACITY ADDITION PROGRAM
 
 Your Company has adopted a multi-pronged growth strategy which includes
 capacity addition through green field projects, brown field
 expansions, joint ventures and acquisitions, towards its journey to
 become the world class integrated power major.
 
 In addition to furthering capacity addition through Coal and Gas based
 power projects, your Company has been pursuing enhancement of its power
 generation portfolio through Hydro, Renewable Energy and Nuclear energy
 projects.
 
 7.1 Projects under Implementation
 
 Your Companys various projects having aggregate capacity of 22,434 MW
 including 4,690 MW, being undertaken by Joint Venture companies are
 under implementation as on 31.03.2014. This includes 20,900 MW through
 coal based projects, 1,534 MW through renewable energy projects,
 comprising 1,499 MW through hydro capacity and 35 MW through solar
 energy. The details of such projects are as under:
 
                                                  Capacity 
 Ongoing Projects as on 31.03.2014                   (MW)
 
 I.  NTPC owned:
 
 A.  Coal Based Projects
 
 1.  Bongaigaon, Assam                              750
 
 2.  Barh-I, Bihar                                1,980
 
 3.  Barh-II, Unit V, Bihar                         660
 
 4.  Lara-I, Chattisgarh                          1,600
 
 5.  North Karanpura, Jharkhand                   1,980
 
 6.  Kudgi-I, Karnataka                           2,400
 
 7.  Gadarwara-I, Madhya Pradesh                  1,600
 
 8.  Vindhyachal-V, Madhya Pradesh                  500
 
 9.  Mouda-II, Maharashtra                        1,320
 
 10.  Solapur, Maharashtra                        1,320
 
 11.  Darlipalli, Odisha                          1,600
 
 12.  Unchahar, Uttar Pradesh 500 Sub Total (A)  16,210 
 
 B.  Renewable Energy Projects 
 B1. Hydro Electric Power Projects (HEPP)
 
 13.  Koldam, Himachal Pradesh                      800
 
 14.  TapovanVishnugad, Uttarakhand                 520
 
 15.  LataTapovan, Uttarakhand                      171
 
 16.  Singrauli CW Discharge (Hydro), Uttar           8
      Pradesh
 
      Sub Total (B1)                              1,499
 
 B2. Solar Energy Projects
 
 17.  Rajgarh Solar PV, Madhya Pradesh*              20
 
 18.  Singrauli Solar PV, Uttar Pradesh              15 
 Sub Total (B2)                                      35 
 Total I (A)+(B1)+(B2)                           17,744
 
 II Projects under JVs & Subsidiaries Coal 
 Based Projects
 
 19. Nabinagar- JV with Railways, Bihar           1,000
 
 20. Muzaffarpur Expansion (MTPS)–
 Subsidiary of NTPC in JV with BSPGCL, Bihar        390
 
 21. Nabinagar, JV with BSPGCL, Bihar             1,980
 
 22. Meja, JV with UPRVUNL, Uttar Pradesh         1,320
 Total II                                         4,690
 
 III Total On-Going Projects as on               22,434
 31.03.2014 (I)+(II)
 
 *Subsequently declared commercial on 30.04.2014
 
 7.2 New Projects
 
 Currently, your Company has projects for 6,800 MW capacity under
 bidding. Feasibility Reports of 17,900 MW capacity have already been
 approved by your Board and project development activities are in
 various stages of completion.
 
 Further, West Bengal State Government has approved transfer of the
 proposed 2X800 MW Coal Based Katwa Project from West Bengal Power
 Development Corporation Limited to NTPC and your Board has also
 approved the proposal for taking over the Project.
 
 7.3 New Technology
 
 To meet the challenges of fulfilling Indias electricity demands at
 affordable cost with minimum environmental impact, your Company has
 drawn a long term Technology Roadmap up to 2032. The technology roadmap
 envisages development, adoption and promotion of safe, effi cient and
 clean technologies for entire value chain of power generation business.
 
 Your Company is planning to set up coal fi red units with ultra
 supercritical parameters targeting effi ciency comparable to best
 available technology in the world. It is planning to establish
 integrated gasifi cation combined cycle for high ash Indian coal. It
 has planned to implement 100MWe IGCC Technology Demonstration Project
 at NTPC Dadri. The plant is intended to be implemented in two stages
 with Stage-I comprising installation and stabilization of coal gasifi
 er, gas clean up and other associated systems and Stage-II comprising
 gas turbine combined plant. Stage-II shall be implemented after
 successful completion and stabilization of Stage-I.
 
 Your Company has adopted several new technologies, system and practices
 including combined cycle gas- fi red power stations, Merry-Go-Round,
 Distributed Digital Control & Management Information System, High
 Voltage Direct Current transmission, Sliding Pressure Operation of SG,
 Dry Ash Extraction and Disposal, 765 KV Switchyard, Ash Water
 Recirculation System, Liquid Waste Management System, Performance
 Analysis and Diagnostic Optimization, Tunnel Boring Machines and Super
 Critical Technologies. Three (03) numbers Super critical units of 660
 MW are already under operation at Sipat-I where steam parameters are
 247 kg/cm2/537oC/565oC. For all the new sub-critical 500 MW units also,
 reheat temperature has been increased to 565oC resulting in 0.7% gain
 in effi ciency over conventional sub-critical 500 MW units.
 
 Your Company has entered into MOU with BHEL and Indira Gandhi Centre
 for Atomic Research (IGCAR) for indigenous development of advanced
 ultra super critical technology which will have enhanced effi ciency of
 around 46% and about 15-20% less CO2 emission as compared to
 conventional 500 MW sub-critical thermal power plants. The program is
 targeted to deliver a plant having 800 MW unit with steam parameters of
 310 kg/ sq cm-710oC/720oC at super heater outlet and 720oC at re-heater
 outlet.
 
 Your Company has taken an initiative for hybrid solar thermal plant of
 about 3.6 MW by integration of solar heat with 210 MW coal based unit
 at Dadri. Solar heat is being integrated along with feed heaters in the
 turbine cycle for conversion of solar heat to electrical power by
 utilizing it in existing steam cycle of 210 MW. Once integrated, this
 will reduce coal consumption, thereby reducing CO2 emissions.
 
 7.4 Project Management
 
 Your Company has an established state-of-the-art IT enabled Project
 Monitoring Centre (PMC) for facilitating fast track project
 implementation. PMC has advanced features like Web-based Milestone
 Monitoring System (Webmiles), Project Review and Internal Monitoring
 System (PRIMS), Enterprise-wide Issues Tracking System, etc. PMC
 facilitates monitoring of key project milestones and also acts as
 decision support system for the management.
 
 PMC is integrated enterprise-wide collaborative system to facilitate
 consolidation of project related issues and their resolution. Features
 like SMS based information delivery, real time video capture, storage
 and retrieval facility and conference facility are extensively utilized
 for project tracking, issues resolutions and management intervention.
 It has helped in providing effective coordination between the agencies
 and has provided enhanced/ effi cient monitoring of the projects
 leading to better, faster and holistic approach to project
 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
 abroad. Details of Joint Ventures abroad are covered under the heading
 Globalisation Initiatives.
 
 The information of Indian Subsidiaries and JV Companies along with
 details of partners of joint ventures for capacity addition is given
 below:
 
 Further, an MOU has been signed on 22.02.2014 among NTPC, Bihar State
 Power Generation Company Limited (BSPGCL) and Lakhisarai Bijlee Company
 Private Limited for implementation of 2X660 MW Kajra Coal based power
 project at Lakhisarai, Bihar. The project is proposed to be developed
 as a Joint Venture Company between NTPC and BSPGCL.
 
 7.6 Hydro Power
 
 7.6.1 Your Company is setting up hydro projects for increasing its
 footprints in renewable energy development by developing Koldam Hydro
 Electric Power Project (800 MW), Tapovan Vishnugad HEPP (520MW), Lata
 Tapovan HEPP (171MW) and Rammam HEPP (120 MW).
 
 Koldam HEPP is under construction on river Satluj at Barmana, district
 Bilaspur, Himachal Pradesh. Three units are targeted to be commissioned
 in Feb-March 2015.  124.054 hectares of forest land in the submergence
 area of reservoir is falling under Majathal Wild Life area for which
 Supreme Court of India has already accorded clearance.  Proposal for
 diversion of 44.9585 hectares of this land is in process for Forest
 Advisory Committee (FAC) clearance.
 
 For Rammam HEPP Stage-III (120 MW), construction of approach roads and
 bridges for power house and barrage has been completed. Award of
 contract for barrage and part of head race tunnel package are held up
 for want of investment approval for which PPA is required.  PPA
 documents have been submitted to WBSEDCL for approval.
 
 Though construction work was in progress in Tapovan – Vishnugad HEPP,
 Uttarakhand and Lata Tapovan HEPP, Uttarakhand, due to fl ash fl oods
 in June 2013, there was devastation in the projects which affected
 their schedule.  After this devastation, Supreme Court of India had
 directed Ministry of Environment and Forests (MOEF) constituted a
 committee for review of all 24 proposed hydro projects in Uttarakhand,
 as included in report of Wildlife Institute of India. This included
 Lata Tapovan HEPP also. Based on the recommendation of the committee
 constituted by MOEF in this regard, Supreme Court of India in the
 hearing on 07.05.2014, had directed to stop the construction at Lata
 Tapovan HEPP till further orders. Since Lata Tapovan HEPP was under
 construction, review petition has been submitted for modifi cation of
 order to the extent that the said order may be waived for Lata Tapovan
 HEPP.
 
 Also, on 31.03.2014, Regional Offi ce of MOEF, Lucknow had directed
 Government of Uttarakhand that project developers should apply for
 obtaining clearance from National Board for Wildlife as the projects
 were falling within 10km periphery of Nandadevi National Park. Your
 company had submitted proposal for both the projects with Dy.
 Conservator of Forest, Nandadevi on 30.04.2014.
 
 Loharinag Pala HEPP had been discontinued on the advice of Ministry of
 Power. The Empowered Committee constituted by GOI for the purpose of
 settling the claims had approved reimbursement of Rs. 536.30 crore in fi
 rst Phase to NTPC, which has been received by the Company. As
 liabilities of the contractors are increasing day by day due to non-
 settlement of claims in time, Ministry of Power has been requested to
 constitute a Settlement Commission with single point responsibility
 to evaluate and settle claims of all the contractors. Further,
 Government of Uttarakhand has identifi ed Uttaranchal Jal Vidyut Nigam
 Limited as nodal agency for taking over the closed project on
 as-is-where-is basis in terms of the MOU signed between NTPC and
 Government of Uttarakhand.
 
 7.6.2 Hydro Engineering
 
 In pursuance of Memorandum of Agreement signed with Govt. of Mizoram,
 Detailed Project Report of Kolodyne-II HEPP (4X115MW) prepared by
 Central Water Commission for Govt. of Mizoram and updated by NTPC has
 been cleared by Central Electricity Authority.
 
 7.7 Capacity Addition through other Renewable Energy Sources
 
 Your Company is adding capacity through renewable sources of energy as
 it offers environmentally clean power.
 
 Your Company plans to broad-base its generation mix to ensure long term
 competitiveness and mitigation of fuel risks and promotion of
 sustainable power development.
 
 In pursuit of these objectives, 75 MW Solar power capacity has already
 been commissioned till 31.03.2014 and 20 MW solar capacity has been
 further added on 30.04.2014.  15 MW capacity solar power projects is
 presently under execution, details of which are given under the heading
 project implementation.
 
 A Joint Venture Company among NTPC Limited, Asian Development Bank and
 Kyuden International Cooperation, Japan under the name PAN-ASIAN
 Renewables Private Limited was incorporated to develop projects
 portfolio of about 500 MW of renewable power generation resources in
 India. Though, the company was searching for another strategic investor
 for investing in the Company, it could not fi nd the same.
 
 Your Company has signed an MOU with Chattisgarh Renewable Energy
 Development Agency (CREDA) for development of Tatapani Geothermal
 project. Another MOU has been signed with Geological Survey of India
 for detailed study and analysis for preparation of feasibility report.
 
 8. STRATEGIC DIVERSIFICATION- INCREASING SELF- RELIANCE
 
 8.1 In order to strengthen its competitive advantage in power
 generation business, your Company has diversifi ed its portfolio to
 emerge as an integrated power major, with presence across entire power
 value chain through backward and forward integration into areas such as
 coal mining, power equipment manufacturing, power trading, and
 distribution.
 
 Your Company continuously explores business opportunities through
 market scanning and adopts new business plans accordingly.
 
 8.2 The details of other subsidiary companies are as under:
 
 8.2.1 NTPC Electric Supply Company Limited, a wholly owned subsidiary
 of NTPC was incorporated to foray into the business of distribution and
 supply of electrical energy as a sequel to reforms initiated in the
 power sector. The Company is implementing Rajiv Gandhi Gramin
 Vidyutikaran Yojna projects on turnkey basis and undertakes turnkey
 execution of sub-stations for utilities and also takes up project
 management consultancy.
 
 The Company is making continuous efforts for acquisition of
 distribution circles through various modes including franchisee bidding
 mode.
 
 This subsidiary is carrying business of retail distribution of power in
 various industrial parks developed by Kerala Industrial Infrastructure
 Development Corporation (KINFRA), through its Joint Venture Company
 namely KINESCO Power and Utilities Private Limited, formed with KINFRA.
 
 8.2.2 NTPC Vidyut Vyapar Nigam Limited (NVVN), a wholly owned
 subsidiary is involved in power trading, sale of fl y ash and
 cenosphere.
 
 During the year 2013-14, the Company transacted business with various
 state electricity boards spread all over the country and traded 9,322
 MUs of electricity.
 
 NVVN has been appointed as the nodal agency for cross border trading of
 electricity with Bhutan and Bangladesh.  The power supply to Bangladesh
 from NTPC stations under PPA signed between NVVN and Bangladesh Power
 Development Board has commenced from 05.10.2013.
 
 The Company has also been designated as the Nodal Agency for purchase
 of grid connected solar power upto 1000 MW as a part of Phase-I of
 JawaharLal Nehru National Solar Mission. The total solar capacity
 commissioned till 31.03.2014 under JNNSM Phase-I is 548 MW which
 includes 498 MW of Solar PV Projects and 50 MW of Solar Thermal
 Project.
 
 8.3 In order to strengthen its competitive advantage in power
 generation business, the Company has diversifi ed into the area of
 manufacturing through the following joint ventures:
 
 8.3.1 NTPC-BHEL Power Projects Pvt. Limited (NBPPL), a joint venture
 with BHEL was incorporated for taking up activities of engineering,
 procurement and construction (EPC) of power plants and manufacturing of
 equipments.  The manufacturing plant of NBPPL is being set up at
 Mannavaram, Tirupati in Andhra Pradesh for CHP and AHP.
 
 The Company is executing EPC contracts for balance of plants packages
 of Palatana Combined Cycle Power plant in Tripura, Namrup Combined
 Cycle Power Plant in Assam, Balance of Plant including Erection &
 Commissioning works of the entire plant at Monarchak, Tripura for
 NEEPCO and EPC Contract for Unchahar.
 
 8.3.2 BF-NTPC Energy Systems Limited was incorporated with Bharat Forge
 Limited to manufacture castings, forgings, fittings and high pressure
 piping required for power projects and other industries.
 
 As in the recent past thermal power capacity addition program has
 suffered a major setback due to a variety of reasons including slow
 environment clearance of new projects, non- availability of land,
 shortage of Indian coal and costly imported coal, this JVC is being
 reconsidered.
 
 8.3.3 Your Company has acquired 44.6% stake in Transformers And
 Electricals Kerala Limited (TELK) from Government of Kerala on June 19,
 2009. The Company deals in manufacturing and repair of Power
 Transformers. TELK order booking as on 31.03.2014 was Rs.142.59 crore and
 the total turnover of the Company was Rs.166.07 crore in the financial
 year 2013-14.
 
 Please refer to Management Discussion and Analysis, Annexure-I
 included as a separate section to this report for further details of
 subsidiary and joint venture companies of NTPC.
 
 9.  GLOBALISATION INITIATIVES
 
 9.1 Trincomalee Power Company Limited (TPCL), a 50:50 joint venture
 Company between NTPC and Ceylon Electricity Board was formed to
 undertake the development, construction, establishment, operation and
 maintenance of a coal based electricity generating station of 2X250 MW
 capacity at Trincomalee at Sri Lanka.  All major agreements like Power
 Purchase Agreement, Implementation Agreement and Board of Investment
 Agreement have been signed. NTPC has been appointed as the Owners
 Engineer for the project. TPCL is taking necessary actions for
 obtaining environmental clearance for the project from Central
 Environment Authority of Sri Lanka. Public Utilities Commission of Sri
 Lanka has granted electricity license to TPCL in May 2014.
 
 9.2 Bangladesh-India Friendship Power Company Private Limited, a 50:50
 joint venture company between NTPC and Bangladesh Power Development
 Board (BPDB) has been formed for developing a 2X660 MW Coal based power
 project at Khulna Division, Rampal, Bangladesh.  All major project
 arrangements like Power Purchase Agreement and Implementation Agreement
 have been signed. The Company has appointed its Owners Engineer.
 Project activities at site have commenced.
 
 10.  NTPC Consultancy Wing: As a result of the phenomenal success
 achieved by your Company in executing its own power projects, many
 utilities from India and abroad approach NTPC to benefit from the rich
 experience gained by your Company. With this in view, NTPC formally
 established a Consultancy Wing in 1989. Since then, this wing has been
 receiving orders from domestic and international clients. Consultancy
 Wing is now recognized as consultant of repute by several leading
 domestic and international development and financial institutions and
 clients. It offers services like Engineering Services, Operation &
 Maintenance Management Services, Project Management Services, Contracts
 & Procurement Management Services, Quality Management Services,
 Training & Development Services etc.
 
 Consultancy Wing has provided various services in international markets
 in Gulf countries, Bangladesh, Nepal, Sri Lanka and Bhutan. The
 services include consultancy for training, design review, review
 engineering, supervision of erection, testing & commissioning,
 performance monitoring, due diligence, operation of plant, construction
 of sub-stations, preparation of feasibility reports, site selection,
 site specific studies etc for various projects. The international
 projects include 2X660 MW Khulna Power Project at Bangladesh and 2X250
 MW Trincomalee Coal Power Project at Sri Lanka.  This Wing is also
 providing O&M Management Services to 2X120 MW Siddhirganj Peaking Power
 Plant of Electricity Generation Company of Bangladesh under a World
 Bank funded contract. It has also recently signed a contract for
 providing entire Owners Engineer Services for proposed 2X250 MW
 Trincomalee Coal Power Project at Sri Lanka.
 
 On the domestic front too, Consultancy Wing has been effectively
 sharing its expertise with State and Central PSUs and private
 utilities.
 
 11.  FINANCING OF NEW PROJECTS
 
 The capacity addition programs shall be fi nanced with a debt to equity
 ratio of 70:30. Your directors believe that internal accruals of the
 Company would be suffi cient to fi nance the equity component for the
 new projects. Given its low geared capital structure and strong credit
 ratings, your Company is well positioned to raise the required
 borrowings.
 
 Your Company is exploring domestic as well as international borrowing
 options including overseas development assistance provided by bilateral
 agencies to mobilize the debt required for the planned capacity
 expansion program.
 
 During the year 2013-14, term loan agreements of Rs.5,775 crore were
 entered into including loan agreement of Rs.2,000 crore each executed
 with Bank of India and IDFC Limited. The cumulative amount of domestic
 loans tied up till March 31, 2014 was Rs.63,174.35 crore (excluding
 undrawn loans short-closed as per agreements).
 
 During 2013-14, an amount of Rs.7,750 crore was drawn from domestic banks
 and the cumulative drawl upto 31st March 2014 was Rs.51,504.35 crore.
 
 Your Company tied-up two loan facilities with Japan Bank for
 International Cooperation (JBIC) and a commercial bank for USD 350
 million and JPY 8,021 million for its Kudgi project and renovation &
 modernization of Auraiya Gas Power Station respectively. The Company
 also signed three facility agreements with Kfw for an aggregate amount
 of Euro 202 million to part fi nance the capital expenditure on retrofi
 t of Electrostatic Precipitators of Tanda Stage-II.
 
 In pursuance of CBDT Notifi cation No. 61/2013/F. No.  178/37/2013 –
 (ITA.I) dated 08.08.2013, Ministry of Finance allocated tax free bonds
 of Rs.1,750.00 crore to the Company to be raised during financial year
 2013-14. The Company made public issue of tax free bonds amounting to
 Rs.1,750.00 crore during December 2013. Further, tax free bonds amounting
 to Rs.500.00 crore was also issued on private placement basis in
 pursuance to CBDT Notifi cation No. 11/2014 F.No. 178/9/2014- (ITA.1)
 dated 13.02.2014.
 
 For the first time, taxable bonds amounting to Rs.750.00 crore were
 issued directly on private placement basis to Employees Provident
 Fund Organisation, which invests through its fund managers. The total
 bonds issued during financial year 2013-14 aggregated to Rs.3,000.00
 crore.
 
 12.  FIXED DEPOSITS
 
 The cumulative deposits received by your Company from 71 depositors as
 at March 31, 2014 stood at Rs.0.52 crore.  Further, an amount of Rs.0.18
 crore has not been claimed on maturity by 11 depositors as on March 31,
 2014.
 
 Your Company has discontinued the acceptance of fresh deposits and
 renewals of deposits under NTPCs Public Deposit Scheme with effect
 from 11.05.2013.
 
 13.  FUEL SECURITY
 
 13.1 During the year, the supply position of coal and gas is given as
 under:
 
 13.1.1 Coal Supplies
 
 During Financial Year 2013-14, your Company has signed long term Fuel
 Supply Agreements (FSA) with subsidiaries of Coal India Limited (CIL)
 for 14,010 MW including 4,390 MW of JVs for units commissioned after
 31st March 2009 and expected to be commissioned by 31st March 2015.
 
 Amendments in FSA have been made to FSA-2009 and FSA-2012 pertaining to
 Useful Heat Value to Gross Calorifi c Value migration and Third Party
 Sampling.
 
 The Company has signed short term MOU for one year with The Singreni
 Collieries Company Limited for supply of 3.5 MMT of coal for Ramagundam
 and Simhadri stations.  Another short term MOU for one year has been
 signed with Eastern Coalfields Limited for supply of 5.0 MMT to
 enhance coal supply at critical stations.
 
 Coal linkage of North Karanpura STPP (1980 MW) with Central Coalfields
 Limited, which was cancelled by Standing Linkage Committee (Long Term)
 in 2008, has been restored.
 
 13.1.2 Domestic Coal and Imported Coal
 
 During 2013-14, your Company received 160.63 MMT of coal as against
 155.06 MMT in 2012-13 marking an increase of 3.59%.
 
 Total domestic coal supply during 2013-14 was 149.79 MMT as against
 145.97 MMT during 2012-13. Out of 149.79 MMT of coal, 144.69 MMT was
 from Annual Contracted Quantity of coal.
 
 The total coal supply from CIL was 138.4 MMT and from SCCL was 11.4
 MMT. 2.0 MMT of coal was procured through bilateral MOU during 2013-14.
 
 During 2013-14, your Company imported 10.84 MMT of coal as against 9.09
 MMT in 2012-13.
 
 13.1.3 Sourcing of coal through E-auction
 
 Your Company participated in 40 e-auctions for coal procurement during
 the financial year 2013-14 in which total coal alloted was 4.76 MMT.
 Total coal received through e-auction was 3.2MMT during 2013-14 as
 compared to 0.23MMT during 12-13.
 
 13.1.4 Supply through Inland Waterways
 
 During 2013-14, operation was started on inland waterways for
 transportation of imported coal for Farraka station. About 2 lac MT
 imported coal has been supplied through this mode to Farakka station.
 
 13.2 Gas supplies
 
 During 2013-14, your Company received 6.87 MMSCMD of gas and RLNG as
 against 10.67MMSCMD received during 2012-13. The gas off-take in
 2013-14 includes 6.72 MMSCMD of gas and 0.15 MMSCMD of RLNG. Gas
 offtake was less due to less availability of generation schedule on
 RLNG from the beneficiary states.
 
 Your Company has Administered Price Mechanism (APM) gas agreements up
 to the year 2021 and Panna Mukta Tapti (PMT) gas agreements up to the
 year 2019 for its gas stations. The term sheet for non-APM gas with
 GAIL is valid till 2016 and long-term RLNG supply agreement with GAIL
 is valid till 2019.
 
 The agreements for KG D6 gas with RIL/Niko/BPEAL expired on 31.03.2014.
 Now, RIL has forwarded a term sheet for supply of KG D6 gas beyond
 31.03.2014 which is under discussion. The entire existing KGD6
 production is being supplied to fertilizer sector in line with
 Empowered Group of Ministers/ MOP&NG directive to supply KG D6 gas as
 per sectoral priority basis. The supplies to the power sector became
 NIL from March 2013 and shall pick up only after production is adequate
 to meet the requirement of fertilizer and Liquifi ed Petroleum Gas
 sectors.
 
 Your Company has been making arrangements for tie-up and supply of spot
 RLNG or Fallback RLNG from domestic suppliers on reasonable endeavour
 basis based on requirement and availability from time to time.
 
 13.3 Development of Coal Mining projects
 
 Your Company was allocated ten coal blocks by the Government of India
 namely Pakri-Barwadih, Chatti- Bariatu, Kerandari, Talaipalli, Dulanga,
 Chatti-Bariatu (South), Bhalumuda, Banai, Chandrabila and Kudanali-
 Luburi with estimated geological reserves of about 5.7 billion tonnes
 and production potential of about 100 million metric tonnes per annum
 (MMTPA) which will cater to the requirement of 20,000 MW of generation
 capacity of NTPC.
 
 Detailed exploration is being carried out in Banai, Bhalumuda and
 Chandrabila and exploration is going to start in Kudanali-Luburi.
 
 In Pakri-Barwadih coal mining block, all the necessary statutory
 clearances are available. Mine opening permission has already been
 received from Coal Controller and DGMS. Mining operations could not be
 commenced mainly because of adverse law and order situation at project
 site and non-cooperation of State Government.  Also, a termination
 notice has been served to Theiss, Mine Developer & Operator appointed
 for Pakri-Barwadih, due to its poor performance.
 
 In Chatti-Bariatu and Kerandari Coal Blocks, mining plan and mine
 closure plans have been approved by the Ministry of Coal. For Kerandari
 Coal Block, environment clearance and Stage-I forest clearance has been
 accorded by Ministry of Environment and Forests. For Chatti-Bariatu,
 environment clearance and both Stage-I and Stage-II forests clearances
 have been accorded. The Mine-developer-cum-operator has been appointed
 for Chatti-Bariatu. NIT has been issued in March 2014 for appointment
 of the Mine-developer- cum-operator for Kerandari Coal Mine Block.
 
 In Dulanga and Talaipalli Coal Mining Block, mining plan and mine
 closure plans have been approved by the Ministry of Coal. For
 Talaipalli Coal Block, environment clearance and both Stage-I and
 Stage-II forest clearance have been accorded by Ministry of Environment
 and Forests. For Dulanga Coal Block, environment clearance and Stage-I
 forest clearance have been accorded by Ministry of Environment and
 Forests. For Dulanga Coal Block, NIT shall be published shortly for
 appointment of the Mine-developer-cum-operator.
 
 A joint venture company is proposed to be formed between NTPC and Jammu
 & Kashmir State Power Development Corporation Limited (J&KSPDCL) for
 development of Kudanali-Luburi coal block in Odisha which has been
 jointly allocated to NTPC and J&KSPDCL.
 
 Your Company has formed the Joint Venture Companies
 
 namely CIL NTPC Urja Private Limited, NTPC-SCCL Global Ventures Private
 Limited and International Coal Ventures Private Limited to explore
 further avenues in the area of coal mining. However, these JV companies
 have not been able to achieve their objectives owing to certain
 constraints like inability of the JV Company to execute the work,
 Government Directive etc.
 
 13.4 Exploration Activities
 
 In Cambay exploration block allotted under NELP- VIII, held by NTPC as
 operator with 100% participating interest, 3D Seismic Data Acquisition
 and processing and interpretation of data has been completed. Based on
 the results, locations have been identifi ed for drilling of
 exploratory wells. Exploration drilling is planned in 2014-15.
 
 In the other three blocks, in each of which NTPC has 10% participating
 interest and Oil and Natural Gas Corporation Limited is the operator,
 exploration activities are in progress. Drilling of an exploratory well
 has commenced from March 2014 in one of the blocks in KG basin.
 
 14.  BUSINESS EXCELLENCE: GLOBAL BENCHMARKING
 
 In pursuit of actualizing our vision and with a view to achieve higher
 levels of excellence, the company has developed and adopted its own
 NTPC Business Excellence Model on the lines of globally reputed
 Excellence Models such as Malcom Baldrige Model, USA and EFQM Model of
 Europe.
 
 This model has been deployed at our Business Units (Stations) and we
 carry out assessment of generating stations using this framework of
 excellence.
 
 The assessment process is aimed at identifying the areas for enhancing
 stakeholders engagement, accelerating critical processes and
 developing leadership potential.
 
 The outcome of this model is identifi cation of organizational
 strengths, opportunities for improvement, issues of concern and best
 practices.
 
 In the financial year 2013-14, the 4th cycle of assessment was
 completed in which 21 generating stations were assessed by a team of
 certifi ed and profi cient assessors.  Business Excellence Awards for
 Best Performance to Ramagundam and Runner-up shield to Unchahar
 stations were presented by the Secretary (Power), GOI and Chairperson,
 CEA in the Indian Power Conference- 2014 held at New Delhi.
 
 As a next step on the Journey of Excellence, the company is planning to
 implement Corporate Performance Measure and Dashboard initiative to
 enhance overall strategic focus and speed.
 
 Other TQM initiatives and techniques like Quality Circles, Professional
 Circles, 5S, integrated management system (IMS) etc have been deployed
 across the organization for continuous improvement. Our Quality Circle
 teams of workmen have been consistently representing NTPC at national
 and international Quality Circle conventions and bringing many laurels.
 In the year 2013-14, Jyotikiran Quality Circle from Faridabad CCPP
 represented NTPC in the International Convention of Quality Control
 Circle (ICQCC-2013) held at Tapie, Taiwan. Team Jyotikiran presented
 their case study titled Interruption in Natural Gas Supply to Gas
 Turbines and won Excellence Award.  Total 300 Quality Circles from
 13 countries participated in this convention.
 
 15.  RENOVATION & MODERNISATION
 
 15.1 Need for R&M:
 
 In the present scenario of severe resource constraint, Renovation and
 Modernization (R&M) of power plants is considered to be the best option
 for bridging the gap between demand and supply of power, as R&M schemes
 are cost effective. It increases the life of the plant, improves
 performance & availability, enhances capacity and ensures safe,
 reliable and economic electricity production by replacement of
 worn-out, deteriorated or obsolete electrical, mechanical,
 instrumentation, controls and protection system by state-of-the-art
 equipment. It also helps in compliance of environment norms.
 
 Keeping in view the ageing of the fl eet over the years, investment
 approval accorded for R&M in 19 stations (Coal & Gas based) is Rs.10,993
 crore till 31.03.2014. As against this, cumulative expenditure till
 31.03.2014 was Rs.4,610 crore. Out of this, R&M capital expenditure in FY
 2013-14 alone was Rs.1,162.37 crore.
 
 With a view to removing technological obsolescence, renovation of
 control & instrumentation (C&I) is in progress in Singrauli-II, Korba
 –I & II, Ramagundam -I & II, Farakka- II, Dadri Thermal- I, Unchahar- I
 and Talcher STPS I. On completion of these schemes, the C&I systems in
 these stations will be brought nearly on par with the new power
 projects.
 
 Because of the very high working temperatures, R&M of Gas Turbines
 including their Control & Instrumentation is essential after around 15
 years of life. During the year, this activity was completed in 2 out of
 4 Gas Turbines (GT) in Kawas and 1 out of 3 GT in Gandhar. In Auraiya,
 the GT R&M package has been awarded and implementation is planned in
 2014-15, in addition to the next GT in Kawas and Gandhar.
 
 With a view to comply with increasingly stringent environment norms of
 reduced emission level prescribed by State Pollution Control Boards,
 Renovation and Retrofitting of Electrostatic Precipitator (ESP)
 packages have been awarded and work is in progress in Badarpur-II,
 Singrauli-I & II, Farakka-I, Unchahar-I, Korba-I & II, Rihand-I,
 Vindhyachal-I & II, Talcher STPS –I and Talcher TPS-II. In 2013-14,
 investment approval was accorded for R&M of ESP of Talcher STPS-II,
 award of which is in progress.
 
 In the coming years, life extension of coal based stations on
 completion of 25 years is planned for Singrauli-II, Korba- II,
 Ramagundam- II, Vindhyachal- I, Farakka- I, Rihand- I and Unchahhar- I
 units, aimed at extending their useful life and capturing the benefit
 of latest technological advancements.
 
 The taken-over stations of Tanda and Talcher TPS continued their
 superior performance levels in 2013-14 on account of R&M intervention.
 The PLF of Tanda was 92.80% and the PLF of Talcher TPS was 95.02%
 during 2013-14.
 
 16.  HUMAN RESOURCE MANAGEMENT
 
 16.1 Your Company takes pride in its highly motivated and competent
 human resource that has contributed its best to bring the Company to
 its present heights. The productivity of employees is demonstrated by
 increase in generation per employee and reduction of Man-MW ratio.  The
 over-all Man-MW ratio for the year 2013-14 excluding JV/subsidiary
 capacity is 0.63 and 0.58 including capacity of JV/ Subsidiaries.
 Generation per employee was 9.96 MUs during the year based on
 generation of NTPC stations.
 
 The total employee strength of the company stood at 25,013 as on
 31.3.2014 against 25,484 as on 31.3.2013.
 
                                 Fiscal 2014        Fiscal 2013
 
 NTPC
 
 Number of employees                23,411            23,865
 
 Subsidiaries & Joint
 Ventures
 
 Employees of NTPC
 in Subsidiaries & Joint             1,602             1,619
 Ventures
 
 Total employees                    25,013            25,484
 
 The attrition rate of the NTPC executives (including Executive Trainees
 and those posted in Subsidiaries and JVs) during the year was 1.68%.
 
 16.2 Employee Relations
 
 The Company takes pride in its greatest resource and asset, the
 employees. The human resource has been the backbone of the Company, in
 contributing towards the success of the Company and sustaining the same
 over the years. As a commitment towards the Companys core values,
 Employees Participation in Management was made effective based on
 mutual respect, trust and a feeling of being a progressive partner in
 growth and success. Communication meetings with unions and
 associations, workshop on production and productivity, etc were
 conducted at projects, regions and corporate level during the year.
 
 Both, employees and management complemented each others efforts in
 furthering the interest of the company as well as its stakeholders,
 signifying and highlighting over-all harmony and cordial employee
 relations prevalent in the Company.
 
 16.3 Safety and Security
 
 NTPC recognizes and accepts its responsibility for establishing and
 maintaining a safe working environment for all its employees and
 associates. Occupational health and safety at workplace is one of the
 prime concerns of NTPC Management and utmost importance is given to
 provide safe working environment and inculcate safety awareness among
 the employees. Your Company has a 3-tier structure for occupational
 health and safety management, namely at site at Regional Headquarters
 and at Corporate Centre.
 
 All our stations are certifi ed with OHSAS-18001/IS-18001 (Occupational
 Health and Safety Management System).  Regular plant inspection and
 review with Head of Project, internal safety audits by our own safety
 offi cers of various sites and external safety audits by reputed
 organizations are carried out at each site every year. Recommendations
 of auditors are regularly reviewed and complied with.
 
 Cross Functional Safety task force for O&M and construction projects
 are functional at all sites to monitor working conditions at site and
 their rectifi cation, if required.
 
 Height permit and height check list are implemented to ensure safety of
 workers at high elevations. Adequate numbers of qualifi ed safety offi
 cers are posted at all units as per statutory rules and provisions to
 look after safety of people and property.
 
 For strict compliance and enforcement of safety norms and practices,
 safety clauses are included in General Conditions of Contract.
 
 To mitigate on-site emergencies at all operating stations, effective
 engineering controls are provided to indicate and handle emergency
 situation. Detailed emergency plans have been developed and
 responsibilities are assigned to each concerned to handle emergency
 situations. Mock drills are conducted regularly to check healthiness of
 the system.
 
 Many of our plants have been awarded with prestigious safety awards
 conferred by various Institutions and Bodies like Ministry of Labour &
 Employment, Govt. of India, National Safety Council, Institution of
 Engineers (India) and Greentech Foundations in recognition of
 implementing innovative safety procedures and practices.
 
 Concrete steps are being taken for upgrading surveillance systems at
 all of our projects/ stations by installing state-of- the-art security
 systems. Security and Coordination Group interact with MHA, IB and CISF
 as well as the State/ District level authorities to augment the
 security preparedness in our establishment/ power installations.
 
 16.4 Training and Development
 
 In line with its objective of being a learning organization with
 skilled and committed employees, your Company has relentlessly promoted
 training and development of not only its own employees but also other
 professionals of the power sector. The objective is being driven by a
 comprehensive infrastructure comprising Power Management Institute
 (PMI) at the corporate level and Employee Development Centers at its
 sites. The training imparted is in tune with emerging needs and
 challenges and for this purpose, the existing training programs are
 reviewed and some new programs are included in the annual calendar
 every year. The business scenario in our country is changing with new
 legislations like the fair compensation, R&R and Land Acquisition Act,
 Companies Act, 2013 and your Company is committed to add large
 capacities in this changing scenario.  Considering the imperative of
 upgrading the capability in project management, an Integrated
 International
 
 Project Management framework is being developed through international
 faculties for achieving competitive advantage, besides entering into a
 long term institutional tie-up with IIM-Indore in this area. A similar
 tie-up has been done with IIM-Ahmedabad for knowledge creation.
 
 Apart from this, the usual programs include topics on power project
 execution, operation & maintenance, ash dyke management, environment
 management, advanced welding technologies for super critical boilers,
 performance enhancement of existing plants, electrical protections and
 relays, information technology and general management areas.
 
 Presently, there are 25 ITIs with which your Company is associated.
 NTPC has adopted 17 existing Govt. ITIs out of which 14 ITIs have been
 adopted under the PPP scheme of GoI and 3 Govt. ITIs have been adopted
 under bilateral agreement with different State governments.  Moreover,
 NTPC is also setting up 8 new ITIs near its plants/stations. These
 initiatives by your Company have resulted in creation of total 1,595
 new seats by starting of new trades/units in the adopted & new ITIs,
 and, till 31.03.2014, a total of 19,377 students have benefited by
 taking admission in these ITIs. For these ITI students, NTPC organised
 total 23,459 mandays of industrial training/plant visits. Due to all
 these, your Company has been conferred The Education Excellence Award
 2013 for its Skill Development Initiative.
 
 During 2013-14, your Company organized a number of training programmes
 in power and energy related areas which, inter-alia, included an
 Integrated Conclave on Data Analytics, Business Intelligence, Action
 Research & Cases in Dubai, a need-based Workshop on Knowledge
 Management in Goa and hands-on training of 197 participants on the 660
 MW supercritical simulator at PMI.
 
 Your Company has also formulated Corporate Governance Training Policy
 as per the requirement of DPE Guidelines on Corporate Governance for
 imparting training to the Directors. In order to give an impetus to
 developing leadership orientation at senior Management level, PMI
 conducted a conclave for NTPC Board members (Directors & CMD) called
 SIR (Strategic Institutional Renewal) program. PMI also partnered with
 BHEL to conduct the SMILE (Strategic Management Initiative for
 Leadership Effectiveness) program for Executive Directors of NTPC and
 BHEL, conducted consecutively for second year to orient the
 participants toward cutting edge leadership and strategic thinking. In
 addition, newly promoted General Managers of the Company were also
 subjected to an intensive program on developing cross-functional
 insights and developing Boundary Management skills.
 
 PMI conducted 429 training programmes during 2013-14 with a participant
 base of 10,811. The training mandays clocked were 37,493.
 
 PMI also conducted 20 training programmes through video conferencing to
 reach out in one go, to large audiences in remote sites in 2013-14. In
 addition to this methodology and in order to take training a further
 step closer to the employees, PMI this year introduced training through
 Web Conferencing, whereby an employee can undergo training at his or
 her workstation itself. PMI conducted 3 training programs through this
 platform during 2013-14.
 
 17.  SUSTAINABLE DEVELOPMENT
 
 Corporate Sustainability is a business approach that creates long-term
 consumer and employee value by creating a green strategy aimed
 towards the natural environment and taking into consideration every
 dimension of how a business operates in the social, cultural and
 economic environment. The sustainability agenda of your Company
 addresses all aspects related to sustainable development and promotes
 leadership in environmental management, social responsibility and
 economic performance (triple bottom line approach).
 
 Your Company has prepared its Sustainability Report 2012-13 based on
 various initiatives taken in area of environment, economic, labour
 practices, human rights, society and product responsibility. The report
 was in line with internationally accepted Global Reporting Initiative
 guidelines. The report has been assured by an independent external
 assurance provider.
 
 Business Responsibility Report is attached as Annex-X and forms part of
 the Annual Report.
 
 Initiatives by the Company
 
 Your Company has developed a Policy on Sustainable Development in
 accordance with which a sustainable development plan was prepared for
 the year 2013- 14. It mainly covers area of waste management, water
 management, bio-diversity conservation, energy management and promotion
 of renewable energy, life-cycle studies and reduction in air emissions.
 Major activities carried out under this plan included plantation of
 more than 4 lac saplings in and around NTPC plants, installation of
 roof top solar PV, solar street lights at various stations,
 rehabilitation of water body, rain water harvesting, installation of
 bio-methanation plant, vermin composting, other techniques for
 conversion of domestic waste in organic fertilizer, studies like
 pollutant source apportionment, human health risk assessment and
 environment impact assessment.
 
 A total expenditure of Rs. 18.58 crore was incurred on these Sustainable
 Development Projects during the Financial Year 2013-14.
 
 In its endeavor to achieve the goals of Sustainable Development, your
 Company is addressing the issues through multi-pronged approach as per
 the details given below:
 
 17.1 Inclusive Growth –Initiatives for Social Growth
 
 17.1.1 Corporate Social Responsibility:
 
 Your Company has always discharged its social responsibility as a part
 of its Corporate Governance philosophy. It follows the global practice
 of addressing CSR issues in an integrated multi stake-holder approach
 covering the environmental and social aspects.
 
 CSR has been synonymous with NTPCs core business of power generation.
 NTPCs spirit of caring and sharing is embedded in its mission
 statement. NTPC has a comprehensive Resettlement & Rehabilitation (R&R)
 policy covering community development (CD) activities which has been
 revised and updated from time to time.  CD activities in green field
 area are initiated as soon as project is conceived and thereafter
 extensive community / peripheral development activities are taken up
 along with the project development. A separate CSR- Community
 Development Policy, formulated in July 2004 and revised in August 2010
 in line with DPE guidelines, covers a wide range of activities
 including implementation of key programmes through a trust NTPC
 Foundation.
 
 Your Company, being a member of Global Compact Network, India, confi
 rms its involvement in various CSR activities in line with 10 Global
 Compact principles and shares its experience with the representatives
 of the world through Communication on Progress. It submits its
 Communication on Progress (COP) to UN Global Compact on regular basis.
 A report on progress made in this area is enclosed at Annex- VIII to
 this Report.
 
 Expenditure incurred towards CSR Activities:
 
 A total expenditure of Rs.109.77 crore was incurred towards Corporate
 Social Responsibility expenses during the Financial Year 2013-14, which
 was 0.87% of the net profit after tax of the previous year.
 
 Awards:
 
 Your Company received Golden Peacock Award 2013 for CSR, Appreciation
 Certifi cate from ASSOCHAM CSR Excellent Award 2013 and Special Jury
 Commendation from FICCI CSR Award 2012-13.
 
 17.1.2 NTPC Foundation
 
 NTPC Foundation is engaged in serving and empowering the physically
 challenged and economically weaker sections of the society.
 
 Initiatives undertaken by the Company are covered under Annex-VII to
 this Report.
 
 17.1.3 Rehabilitation & Resettlement (R&R)
 
 Your Company is committed to help the people affected by its projects
 and has been making all its efforts to improve the socio-economic
 status of Project Affected Persons (PAPs). In order to meet its social
 objectives, your Company is focusing on effective R&R of PAPs and
 undertaking community development activities in and around the
 projects.
 
 Land availability for bulk tendered projects for which award was placed
 during the year was ensured through proactive redressal of R&R issues.
 
 Initial community development (ICD) activities in the area of Health,
 Education, Sanitation, Drinking water, Infrastructure facilities etc
 for Bilhaur project was approved after consultation with the
 stakeholders and for Khargone project, provisions for ICD activities
 was enhanced during the year. Implementation of earlier approved ICD
 activities continued at Barethi, Darlipali, Gajmara, Khargone, Jhajjar,
 Nabinagar (BRBCL) and Nabinagar (NPGC) projects.
 
 R&R activities and CD activities in the area of in the area of Health,
 Education, Sanitation, Drinking water, Infrastructure facilities,
 capacity building etc were implemented at the new Greenfield projects
 after finalization of respective R&R Plan in consultation and
 participation of the stakeholders at Gadarwara, Lata-Tapovan and
 Dulanga projects. Provisions under R&R Plans was enhanced for North
 Karanpura, Tapovan-Vishnugad, Pakri-Barwadih, Chatti-Bariatu and
 Kerandari projects. At other thermal, hydro and coal mining projects
 like Barh, Bongaigaon, Dadri, Kanti, Korba, Kudgi, Lara, Mouda,
 Solapur, Tanda, Vallur, Vindhyachal, Koldam, Talaipalli projects, R&R
 activities continued throughout the year.
 
 For the benefits of project affected persons and neighbouring
 population, Mobile Health Clinic was deployed by Kudgi and Nabinagar
 (NPGC) projects.  Toilets have been constructed for PAPs at Kudgi and
 Khargone projects. Drinking water facility has been augmented for
 supplying of water for project affected villages at Solapur project.
 
 Socio-economic Survey (SES) for Bilhaur, Mouda-II and Gajmara is in
 progress.
 
 17.2 Environment Management – Initiatives for preserving Environment
 
 Vision Statement on Environment Management:
 
 Going Higher on Generation, lowering GHG intensity
 
 Your Company is pursuing the objective of environment protection as one
 of its prime responsibilities and focuses its efforts to mitigate the
 impact of its operation on surrounding environment. Around 12-15% of
 the project cost is spent on various environment protection equipments.
 To meet the environmental challenges of 21st century and beyond, the
 Company has adopted sound environment management practices and advanced
 environment protection system to minimize impact of power generation on
 environment.
 
 Your Company has adopted advanced and high effi ciency technologies
 such as super critical boilers for the upcoming green field projects.
 Your company is augmenting its capacity by installing solar power
 systems and micro hydel power systems attached to its thermal power
 stations, wherever possible, so as to encourage garnering of renewable
 energy resources. The Company is also designing its up-coming plants to
 use beneficiated coal and imported low ash coal. These measures are
 aimed not only to achieve reduction in pollution and minimize use of
 precious natural resources but also to lead to reduction of CO2
 emissions per unit of generation thereby reducing global warming.
 
 17.2.1 Control of Air Emissions: High effi ciency Electro- static
 Precipitators (ESPs) with effi ciency of the order of 99.97% and above,
 with advanced control systems have been provided in all coal based
 stations to keep Suspended Particulate Matter (SPM) below permissible
 limits. All up-coming new plants are being provided with ESPs designed
 in such a manner that would cater to the anticipated future norms.
 Performance enhancement of ESPs operating over the years is being
 carried out by augmentation of ESPs fields, retrofitting of advanced
 ESP controllers and adoption of sound O&M practices. Flue Gas
 Conditioning systems have also been provided at our old units which are
 helping in reduction of SPM emissions below statutory limits even
 during coal quality variations due to blending of coal etc. Also,
 massive R&M program is being undertaken to upgrade air pollution
 equipments to reduce SPM emissions.
 
 NOX control in plants is achieved by controlling its production by
 adopting best combustion practices.  Since tall stacks are provided in
 coal stations, NOx emitted through stacks is widely dispersed and
 diluted. In gas based stations, NOx control systems (hybrid burners or
 wet DeNOx) have been provided for good combustion practices.
 
 Fugitive emission from ash pond is controlled by maintaining water
 cover, tree plantation on abandoned ash ponds, water spray and earth
 cover in inactive lagoons.  Providing dust suppression and extraction
 system in CHP area has further added to reduction in fugitive dust in
 the vicinity of power stations.
 
 17.2.2 Control of water pollution and promotion of water conservation:
 Various water conservation measures have been taken up to reduce water
 consumption in power generation by using 3Rs (Reduce, Recycle & Reuse)
 as guiding principle.
 
 Provision of advanced treatment facilities such as Liquid Waste
 Treatment Plants (LWTP), Recycling Systems for Ash Pond Effl uent
 called Ash Water Recirculation System (AWRS) and closed cycle condenser
 cooling water systems with higher Cycle of Concentration (COC), rain
 water harvesting wherever possible and reuse of treated sewage effl
 uent for horticulture purposes are some of the measures implemented in
 most of the stations. All these measures have resulted in reduction of
 effl uent discharge from the power plants of NTPC.
 
 17.2.3 Ash Management: Ash dykes in the stations have been engineered
 to ensure that all safety and environmental issues are addressed at
 design stage itself.
 
 Multi-lagoon ash ponds with provision of over-fl ow lagoons and ash
 pipe garlanding arrangement for change over of ash slurry feed points
 have been provided for effective settlement of ash particles.
 
 Water sprinklers have been provided in the ash pond areas for spraying
 water in dried up portion of lagoons for control of fugitive dust.
 Efforts are made to maximize utilization of ash through use of Dry Ash
 Extraction System (DAES).
 
 Unutilized ash is sent to ash pond by making ash slurry.  The decanted
 water in Ash Pond is recycled back with the help of Ash Water
 Recirculation System (AWRS) for making ash slurry again, leading to
 reduction in water consumption.
 
 17.2.4 Automation of environment measurement system: 67 continuous
 ambient air quality monitoring stations (AAQMS) have been installed to
 capture the real time data and access thereof viz., PM 10, PM 2.5, SOx,
 NOx and access has been provided to the Central Pollution Control Board
 and State Pollution Control Boards.  Additional ozone analyzers for
 ambient air are also being provided at the stations. Continuous
 Emission Monitoring Systems (CEMS) to monitor SOx, NOx and CO2 in all
 its units on real time basis are being installed in all existing units
 of the Company. For all the upcoming projects, real time monitors for
 ambient air and emissions are included in the engineering packages
 during design stage itself.
 
 17.2.5 Environmental Studies: Your Company has taken a number of
 studies for better environment protection and to develop strong
 scientifi c database.
 
 17.2.6 Tree Plantation: Your Company has planted about 21 million trees
 till date in and around its projects as a measure of massive
 afforestation.
 
 The afforestation has not only contributed to the aesthetics but also
 helped in carbon sequestration by serving as a sink for CO2 released
 from the stations and thereby protecting the quality of ecology and
 environment in and around the projects.
 
 17.2.7 ISO 14001 & OHSAS 18001 Certifi cation: NTPCs stations have
 been certifi ed with ISO 14001 and OHSAS 18001 by reputed National and
 International certifying agencies as a result of sound environment
 management systems and practices.
 
 17.3 Quality Assurance and Inspection (QA&I)
 
 Your Company has a quality assurance and inspection division which
 mainly focuses on quality assurance in every aspect like quality and
 timely supplies for large capacity units. It continues to emphasize the
 strict implementation of quality systems in construction as well as in
 operations of all the projects/ stations. Regular quality system audits
 are undertaken at our project construction sites to ensure continuous
 improvements in implementation of quality system improvements.
 
 Your company has now added four overseas inspection offi ces at Japan,
 China, Germany and Vietnam.
 
 A recent initiative has been undertaken by your Company to improve the
 procurement of critical/ bulk spares for power stations, to ensure
 quality and reliability of spares and standard quality plans for 30
 such spares have been prepared by QA&I Department.
 
 Your Company is represented on various technical committees of ISO and
 IEC and is actively contributing in formulation and updation of power
 sector technical and quality standards/ guidelines.
 
 17.4 Clean Development Mechanism (CDM)
 
 Your Company is undertaking climate change issues proactively.
 
 The methodology for super critical technology prepared by NTPC viz.
 consolidated base line and monitoring methodology for new grid
 connected fossil fuel fi red power plants using less GHG intensive
 technology has been approved by United Nations Frame Work Convention
 on Climate Change (UNFCCC) under Approved Consolidated Methodology 13
 (ACM0013).
 
 Two of its solar projects namely 5MW each solar PV project at Dadri and
 Port Blair, Andaman & Nicobar had already been registered with UNFCCC.
 Another two projects namely 5MW solar PV project at Faridabad and 8MW
 Small Hydro Power Project at Singrauli are in advanced stage of
 validation for submission to UNFCCC for CDM registration.  Verifi
 cation/ issuance of CERs for 5 MW solar power PV project at Dadri and
 5MW solar power PV project at A&N are in process.
 
 In addition, your companys projects namely North Karanpura, Tapovan
 Vishnugad HEPP, energy effi ciency projects at Singrauli and Dadri have
 got host Country Approval from National CDM Authority.
 
 17.5 Ash Utilisation
 
 During the year 2013-14, 57.83 million tonnes of ash was generated and
 25.37 million tonnes of ash had been utilized for various productive
 purposes. This was 43.88% of the total ash generated.
 
 Important areas of ash utilization are – cement & asbestos industry,
 ready mix concrete plants (RMC), road embankment, mine fi lling, ash
 dyke raising & land development. 7.19 million tonnes of ash has been
 issued to cement, RMC and other industries in the financial year
 2013-14.
 
 Pond ash from all stations of NTPC is being issued free of cost to all
 users. Fly ash is also being issued free of cost to fl y ash/ clay-fl y
 ash bricks, blocks and tiles manufacturers on priority basis over the
 other users from all NTPC coal based thermal power stations. The funds
 collected from sale of ash is being maintained in a separate account by
 NTPC Vidyut Vyapar Nigam Limited, a wholly-owned subsidiary company of
 NTPC and the same is being utilized for development of infrastructure
 facilities, promotion and facilitation activities to enhance ash
 utilization.
 
 The quantity of ash produced, ash utilized and percentage of such
 utilization during 2013-14 from NTPC Stations is at Annex-IX.
 
 17.6 RURAL ELECTRIFICATION
 
 NTPC, through its wholly owned subsidiary NESCL, is carrying out the
 implementation of rural electrifi cation work in 5 States namely Madhya
 Pradesh, Chhattisgarh, Odisha, Jharkhand and West Bengal under
 Government of India, fl agship program, Rajiv Gandhi Grameen
 Vidyutikaran Yojana (RGGVY). During this period, 1,442 villages were
 electrifi ed and 24,742 Below Poverty Line (BPL) connections were
 provided. The cumulative achievement till 31st March 2014 is 33,807
 villages and 26,27,485 BPL connections.
 
 17.7 CenPEEP – towards enhancing effi ciency and protecting Environment
 
 NTPC initiated a unique voluntary program of GHG emission reduction by
 establishing Center for Power Effi ciency and Environmental Protection
 (CenPEEP) and under this program, it is estimated that over 37 million
 tons of CO2 has been avoided since 1996.
 
 CenPEEP is also coordinating the implementation of Perform, Achieve &
 Trade (PAT) Scheme under Prime Ministers National Mission on Enhanced
 Energy Effi ciency (NMEEE) in NTPC where all 22 stations of NTPC are
 designated Consumers (DC). Based on gap analysis, a joint action plan
 is prepared with Station for improvement of effi ciency and auxiliary
 power to achieve the PAT targets in the year 2014-15.
 
 Thrust has been given to effi ciency improvement & auxiliary power
 reduction through strategic initiatives of Energy Effi ciency
 Management System (EEMS), Energy management System (EMS), Energy Audit
 System and reliability improvement through Knowledge Based
 Maintenance systems. Optimization of cooling tower performance and
 air-preheater has also been taken up as thrust area. Leveraging the use
 of information technology, new initiatives have been taken with
 installation of on - line systems such as Thermal Loss Analyser (TLA)
 and System Energy Effi ciency Display (SEED) for tracking and gap
 analysis of heat rate and auxiliary power consumption.  These systems
 assist the operator and facilitate the trending of degradation of
 equipment performance and formulation of action plans for improvement.
 Evaluation has also been done for use of performance diagnostics
 off-line tool based on first principle energy / mass balance to help
 in effi ciency and capacity gap analysis and performance baselining of
 some of the NTPC units thereby enhancing skill for problem analysis.
 
 Under Indo-US bilateral program Partnership to Advance Clean Energy –
 Deployment (PACE-D) being implemented with support of USAID,
 assessment of effi ciencies has been done for two State utilities
 namely Haryana and Maharashtra and action plans were formulated for
 them.  A Best practices manual for super critical units has been
 prepared jointly with US experts and was released by Secretary (Power)
 Govt of India on the occasion of NTPC International O&M Conference
 2014. Work on benchmarking methodology document, coal blending
 impact studies and pilot program on Advanced Pattern recognition (APR)
 is underway with the help of US experts.
 
 18.  NETRA – R&D Mission in Power Sector
 
 NTPC Energy Technology Research Alliance (NETRA), the research &
 development wing of NTPC focuses on areas of effi ciency & availability
 improvement; cost reduction; renewable and alternative energy source;
 climate change & environment protection; and providing scientifi c
 support to utilities.
 
 Research Advisory Council (RAC) of NETRA comprising eminent scientists
 and experts from India and abroad is in place to steer research.
 Scientifi c Advisory Council (SAC) with Executive Directors as its
 members provides directions for undertaking specific applied research
 projects aimed to develop techniques in power plant for effi cient,
 reliable and environment friendly operation with emphasis on reducing
 cost of generation. The meetings for both these Advisory Councils were
 held periodically.
 
 In order to provide maximum possible benefit to the stations, many
 projects/activities have been undertaken for implementation like waste
 Flue gas based air conditioning system for control rooms at Ramagundam,
 Computational Fluid Dynamics (CFD) modeling based plant improvement in
 boiler and CW system for increasing effi ciency and reducing auxiliary
 power consumption, robotic inspection of boiler pressure parts, PDC-RVM
 based expert system for transformer condition monitoring etc.
 Development of many in-house products/technologies is in advance stage
 like NETRA e Power Plant Solution (NePPS) based on Artifi cial
 Intelligence Software for real time plant performance monitoring,
 optimization & diagnostic, Flue gas utilization for pH reduction of
 re-circulating ash pond water at Ramagundam etc. NETRA continued to
 provide scientifi c support to all NTPC stations as well as many other
 utilities stations in the area of oil/water chemistry, environment,
 electrical, Rotor dynamics etc for effi cient performances.
 
 Some state-of-the-art facilities established for condition monitoring
 and diagnostic techniques include frequency scanning eddy current
 system for evaluation of coating on gas turbine blades; portable
 automated ball indentation for evaluation of in-situ mechanical
 properties; eddy current array, Time of Flight Diffraction technology
 for rapid, reliable, accurate inspection of weldments of high pressure
 and high temperature pipeline and headers, Energy Dispersive X-Ray
 Fluoresce, Frequency Domain Spectroscopy, Simultaneous Thermal
 Analyzer, Particle Counter (NAS Value) etc.
 
 NTPC has inked an umbrella MOU with Indian Institute of Science,
 Bangalore to promote research in CFD, renewable, water chemistry, ash
 utilization etc.
 
 Agreement has been signed with KFW, Germany for setting up of (i)
 Advanced Test and Qualifi cation Centre for Concentrating Solar Thermal
 Technologies with
 
 DLR Germany (ii) Advance pilot test setup for 91kwp concentrating solar
 PV and PV characterization test lab with ISE-Fraunhofer, Germany.
 
 NETRA laboratories are accredited as per ISO 17025 and its NDT
 laboratory has also been recognized as Well known Remnant Life
 Assessment Organization under the Boiler Regulations, 1950.
 
 Phase-II NETRA infrastructure is under construction with approx 21,000
 sq m fl oor area and is expected to be completed in FY 2014-15. Phase
 II will have 30 laboratories, workshop, pilot plant bay and an
 auditorium with seating capacity of 400 persons.
 
 NETRA organized National Workshops during 2013-14 in the area of
 Sensors for Power Plant Process & Equipment, Metallurgical Aspects in
 Power Plants, Condition monitoring and Life Assessment of Transformers,
 and also Coordinated International Conference on Advance Technologies
 & Best Practices for Super Critical Thermal Plants under PACE-D
 Technical Assistance Program.
 
 19.  IMPLEMENTATION OF OFFICIAL LANGUAGE
 
 Your Company has taken several steps for the propagation and
 implementation of Offi cial language Hindi in the Company. The
 progress of usage of Hindi was inspected and proper suggestions were
 given to the Heads of the Offi ces. The quarterly meetings of the Offi
 cial Language Implementation Committee were held to review the
 implementation of Hindi in the organization.
 
 Hindi Diwas and Hindi Competitions were organized from 1st to 13th
 September, 2013 in the Corporate Offi ce as well as in all the Projects
 and Regional HQ of NTPC.  NTPC Limited received All India Indira Gandhi
 Rajbhasha Second Prize from Honble President of India, Shri Pranab
 Mukherjee. Various Hindi workshops and Hindi Computer Training were
 conducted for the employees. Your Company organized Akhil Bhartiya
 Rajbahsha Sammelan for Power Sector Undertakings on 9th May, 2013.
 Annual Rajbhasha Conference for the Heads of Rajbhasha was held on 10th
 & 11th May, 2013.
 
 All offi ce orders, formats and circulars were issued in Hindi as well.
 Important advertisements and house journals were released in bilingual
 form- in Hindi and in English. Two issues of half-yearly Hindi magazine
 Vidyut Swar was published to promote creative writing in Hindi.
 
 Your Companys website also has a facility of operating in bilingual
 form- in Hindi as well as in English.
 
 20.  VIGILANCE
 
 20.1 Vigilance Mechanism:
 
 Your Company ensures transparency, objectivity and quality of decision
 making in its operations, and to monitor the same, the Company has a
 Vigilance Department headed by Chief Vigilance Offi cer, a nominee of
 Central Vigilance Commission. The CVO reports to the Central Vigilance
 Commission.
 
 The four units of Vigilance Department namely Corporate Vigilance Cell,
 Departmental Proceeding Cell (DPC), MIS Cell and Technical Cell (TC)
 deal with various facets of vigilance mechanism. The Vigilance
 Department submits its report to the Competent Authority and also to
 the Board of Directors.
 
 Surprise checks are being conducted in various departments and recovery
 is being made against discrepancies, if any, found. Vigilance
 department issued various circulars for improvements in systems like
 import of coal, material handling, single tender awards, owner issue
 materials, utilization of non-moving items etc. A total of 146
 vigilance complaints were received during the year, out of which 82
 complaints have been resolved and balance 64 complaints are under
 various stages of investigations.
 
 As per the directive of DOPT/ MOP, the property returns of all the
 executives have been published on NTPC Website.
 
 20.2 Workshops and Vigilance Awareness Week
 
 Preventive Vigilance Workshops are being conducted every year to
 sensitize employees about DOs and DONTs in work areas and their role
 in preventing corruption. 19 such workshops were held across NTPC in
 which 529 employees participated.
 
 Vigilance awareness week was observed from October 28, 2013 to November
 2, 2013 across all NTPC projects and sites.
 
 20.3 Implementation of Integrity Pact
 
 Your Company is committed to have total transparency to its business
 processes and as a step in this direction; it signed a Memorandum of
 Understanding with Transparency International India in December, 2008.
 The Integrity Pact is being implemented for all contracts having value
 exceeding Rs. 10 crore. Two Independent External Monitors have been
 nominated by the Central Vigilance Commission for all contracts with
 value exceeding Rs. 100 crore. Regular meetings are being organized with
 Independent External Monitors.
 
 20.4 Implementation of various policies/ circulars
 
 20.4.1 Fraud Prevention Policy
 
 The Fraud Prevention Policy has been formulated and implemented in your
 Company since 2006. The cases referred by the nodal offi cers are being
 investigated immediately to avoid fraudulent behaviors as defi ned in
 the Fraud Prevention Policy.
 
 20.4.2 Complaint Handling Policy
 
 Vigilance department has formulated and implemented Complaint Handling
 Policy w.e.f. 01.08.2013 which contains the procedure for handling
 various complaints lodged with the department.
 
 20.4.3 Whistle Blower Policy
 
 Whistle Blower Policy has been issued to build and strengthen a culture
 of transparency and trust in the organization and to provide employees
 with a framework/ procedure for responsible and secure reporting of
 improper activities within the company and to protect employees who
 raise concern about improper activities/ serious irregularities.
 
 21.  RIGHT TO INFORMATION
 
 Your Company has implemented Right to Information Act, 2005 in order to
 provide information to citizens and to maintain accountability and
 transparency. The Company has put RTI manual on website for access to
 all citizens of India and has designated a Central Public Information
 Offi cer (CPIO), an Appellate Authority and APIOs at all sites and offi
 ces of NTPC.
 
 During 2013-14, 1,226 applications were received under the RTI Act, out
 of which 1,171 applications were replied to.
 
 22.  USING INFORMATION AND COMMUNICATION TECHNOLOGY FOR PRODUCTIVITY
 ENHANCEMENT
 
 NTPC has implemented an Enterprise Resource Planning (ERP) package
 covering maximum possible processes across the organization including
 subsidiaries. In addition to the core business processes and Employee
 Self Service (ESS) functionality, the ERP solution also includes
 e-procurement, Knowledge Management, Business Intelligence, Document
 Management, Workfl ow etc. The ERP system is fully managed through
 in-house expertise from process groups and technical groups. Parallely,
 in- house solutions have been developed to take care of the non-ERP
 areas.
 
 A state-of-the-art main data center with centralized server facility to
 cater to the needs of entire Company is located at Noida. There is a
 disaster recovery center at Hyderabad as a full back up for real time
 changeover in case of any emergency.
 
 Videoconferencing (VC) facility is widely used for management reviews/
 training/ deliberations among locations. The facility has also been
 augmented to hold VC with external agencies in secured manner.
 
 In order to improve upon effi ciency and bringing transparency in
 procurement process in NTPC, e-procurement process using SRM module of
 ERP is widely used.
 
 An emergency response system (ERS) has been deployed and hosted
 centrally at Noida to cater to different requirements of sending
 information to the employees using SMS services and emergency alerts
 during Voice Calls.
 
 Various other applications have been developed to take care of RTI,
 Parliament Questions Management, legal system, transit camp booking
 requirement etc.
 
 NTPC tender website www.ntpctender.com is being regularly used for
 publishing all open tenders on the Internet. Additional Website
 www.ntpcexemployees.  co.in for facilitating superannuated employees
 has also been hosted.
 
 The Information Technology department at Corporate Center Noida has
 been awarded certifi cate in recognition of the organizations Quality
 Management System which complies with ISO 9001:2008 for Providing IT
 Enabled Services.
 
 23.  NTPC GROUP: SUBSIDIARIES AND JOINT VENTURES
 
 Your Company has currently 4 subsidiary companies and 21 joint venture
 companies for undertaking specific business activities.
 
 NTPC Hydro Limited, a wholly owned subsidiary of NTPC has been merged
 with NTPC Limited on 18.12.2013 in terms of Section 391-394 of the
 Companies Act, 1956.
 
 The names of Subsidiaries and Joint Venture Companies and the
 percentage of your Companys shareholding in these Companies as on
 31.03.2014 are as follows:
 
 The performance of these companies as well as the consolidated fi
 nancial statements are briefl y discussed in the Management Discussion
 & Analysis section. The financial statements of subsidiary companies
 along with the respective Directors Report are placed elsewhere in
 this Annual Report.
 
 24.  INFORMATION AS PER COMPANIES (PARTICULARS OF EMPLOYEES) RULES,
 1975
 
 As per provisions of Section 217 (2A) of the Companies Act, 1956 read
 with the Companies (Particulars of Employees) Rules, 1975, every
 company is required to provide particular of employees in the
 Directors Report exceeding the stipulated remuneration limit(s).
 
 However, as per notifi cation dated 31.03.2011 issued by the Ministry
 of Corporate Affairs, amending provisions of said rules, Government
 Companies are exempted from including such particulars in the
 Directors Report.
 
 As your Company is a Government Company, such particulars have not been
 included in the Directors Report.  Any member desirous of obtaining
 such particulars may write to the Company Secretary at the Registered
 Offi ce of the Company or download them from the website
 www.ntpc.co.in. Such particulars shall also be made available to the
 shareholders on a specific request made by them during the course of
 Annual General Meeting to be held on 27.08.2014.
 
 25.  STATUTORY AUDITORS
 
 The Statutory Auditors of your Company are appointed by the Comptroller
 & Auditor General of India. M/s O.P. Bagla & Co., K.K. Soni & Co., PKF
 Sridhar & Santhanam, V. Sankar Aiyar & Co., Ramesh C. Agrawal & Co. and
 A.R. & Co.were appointed as Joint Statutory Auditors for the financial
 year 2013-14.
 
 26.  MANAGEMENT COMMENTS ON STATUTORY AUDITORS REPORT
 
 The Statutory Auditors of the Company have given an unqualifi ed report
 on the accounts of the Company for the financial year 2013-14. They
 have drawn attention towards Note-32 to the financial statements in
 respect of the accounting of fuel on GCV based pricing system.
 
 The issue has been adequately explained in Note 32 of the financial
 statements of NTPC for FY 2013-14 referred to by the Auditors.
 
 27.  REVIEW OF ACCOUNTS BY COMPTROLLER & AUDITOR GENERAL OF INDIA
 
 You would be pleased to know that for the fi fth year in a row your
 organization has received NIL Comments on the Financial Statements
 for the year from the Comptroller & Auditor General of India (C&AG).
 
 As advised by the Offi ce of the C&AG, the comments of C&AG for the
 year 2013-14 are being placed with the report of Statutory Auditors of
 your Company elsewhere in this Annual Report.
 
 28.  COST AUDIT
 
 As prescribed under the Cost Accounting Records (Electricity Industry)
 Rules, 2001, the Cost Accounting records are being maintained by all
 stations of the Company. The particulars of Cost Auditors as required
 under Section 233(B) of the Companies Act, 1956 read with General
 Circular No. 15/2011 dated 11.04.2011 issued by Ministry of Corporate
 Affairs are given below:
 
 The fi rms of Cost Accountants appointed for the financial year
 2012-13 were (i) M/s Dhananjay V. Joshi & Associates, Pune,
 Maharashtra, (ii) M/s Jugal K. Puri & Associates, Gurgaon, Haryana,
 (iii) M/s Mandal Mukherjee Datta & Associates, Kolkata, West Bengal,
 (iv) M/s S.C. Mohanty & Associates, Bhubhaneshwar, Orissa, (v) M/s V.P.
 Gupta & Co., Noida, Uttar Pradesh and (vi) M/s Chandra Wadhwa & Co.,
 Daryaganj, Delhi.
 
 The fi rms of Cost Accountants appointed for the financial year
 2013-14 were (i) M/s Narasimha Murthy & Co., Hyderabad, (ii) M/s Musib
 & Co., Mumbai, (iii) M/s Sanjay Gupta & Associates, Delhi, (iv) M/s
 Bandopadhyay Bhaumik & Co., Mumbai, (v) M/s S. Dhal & Co.,
 Bhubhaneshwar and (vi) M/s R.J. Goel & Co., Delhi.
 
 The due date for fi ling consolidated Cost Audit Report in XBRL format
 for the financial year ended March 31,
 
 2013 was September 27, 2013 and the consolidated Cost Audit Report for
 your Company was filed with the Central Government on September 16,
 2013.
 
 The Cost Audit Report for the financial year ended March 31, 2014
 shall be filed within the prescribed time period under the Companies
 Act, 2013.
 
 29.  BOARD OF DIRECTORS
 
 Dr. Pradeep Kumar, JS & FA, Ministry of Power has joined as Government
 Nominee Director of the Company with effect from September 10, 2013 in
 place of Shri Rakesh Jain who ceased to be the Director of the Company
 w.e.f.  July 9, 2013 consequent upon his transfer from Ministry of
 Power.
 
 Shri A.K. Singhal, Director (Finance) ceased to be the Director of the
 Company w.e.f. October 9, 2013 consequent upon his appointment as
 Member of the Central Electricity Regulatory Commission.
 
 Consequent upon superannuation of Shri B.P. Singh on September 30,
 2013, Shri S.C. Pandey has taken over as Director (Projects) with
 effect from October 1, 2013.
 
 Shri I.C.P. Keshari has ceased to be the Director of your Company
 w.e.f. September 30, 2013 on ceasing to be the offi cial of Ministry of
 Power.
 
 Shri G. Sai Prasad, JS (Thermal), Ministry of Power had joined as
 Government Nominee Director of the Company with effect from December 5,
 2013. However, he has ceased to be the Director on the Board w.e.f.
 June 16, 2014 consequent upon his transfer from Ministry of Power.
 
 Shri Kulamani Biswal, Director (Finance), Mahanadi Coalfields Limited
 has taken over the charge of the Director (Finance) of the Company with
 effect from December 9, 2013.
 
 The Board wishes to place on record its deep appreciation for the
 valuable services rendered by Shri Rakesh Jain, Shri A.K. Singhal, Shri
 B.P. Singh, Shri I.C.P. Keshari and Shri G.  Sai Prasad during their
 association with the Company.
 
 In accordance with Section 152 of the Companies Act, 2013 and the
 provisions of Article 41(iii) of the Articles of Association of the
 Company – Shri I.J. Kapoor shall retire by rotation at the Annual
 General Meeting of your Company and, being eligible, offers himself for
 re-appointment.
 
 30.  DIRECTORS RESPONSIBILITY STATEMENT
 
 As required under Section 217(2AA) of the Companies Act, 1956, your
 Directors confirm that:
 
 1.  in the preparation of the annual accounts, the applicable
 accounting standards had been followed along with proper explanation
 relating to material departures;
 
 2.  the Directors had selected such accounting policies and applied
 them consistently and made judgments and estimates that are reasonable
 and prudent so as to give a true and fair view of the state of affairs
 of the company at the end of the financial year 2013-14 and of the
 profit of the company for that period;
 
 3.  the Directors had taken proper and suffi cient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Companies Act, 1956 for safeguarding the assets of
 the company and for preventing and detecting fraud and other
 irregularities; and
 
 4.  the Directors had prepared the Annual Accounts on a going concern
 basis.
 
 31.  INFORMATION PURSUANT TO STATUTORY AND OTHER REQUIREMENTS
 
 Information required to be furnished as per the Companies Act, 1956,
 Listing Agreement with Stock Exchanges, Government guidelines etc. is
 annexed to this report as below:
 
 Particulars                                       Annexure
 
 Management Discussion & Analysis                      I
 
 Report on Corporate Governance                       II
 
 Information on conservation of energy,              III
 technology absorption and foreign
 exchange earnings and outgo
 
 Statement pursuant to Section 212 of the             IV
 Companies Act, 1956 relating to subsidiary
 companies
 
 Statistical data of the grievance cases               V
 
 Statistical information on persons                   VI
 belonging to Scheduled Caste / Scheduled
 Tribe categories
 
 Information on Physically Challenged                VII
 persons
 
 UNGC - Communications on progress                  VIII
 
 Project Wise Ash Utilisation                         IX
 
 Business Responsibility Report for the year           X
 2013-14
 
 32.  ACKNOWLEDGEMENT
 
 Your Directors acknowledge with deep sense of appreciation, the
 co-operation received from the Government of India, particularly the
 Prime Ministers Offi ce, Ministry of Power, Ministry of Finance,
 Ministry of Environment & Forests, Ministry of Coal, Ministry of
 Petroleum & Natural Gas, Ministry of Railways, the Planning Commission,
 Department of Public Enterprises, Central Electricity Authority,
 Central Electricity Regulatory Commission, Comptroller & Auditor
 General of India, Appellate Tribunal for Electricity, State
 Governments, Regional Power Committees, State Electricity Boards and
 Offi ce of the Attorney General of India.
 
 Your Directors also convey their gratitude to the shareholders, various
 international and Indian Banks and Financial Institutions for the confi
 dence reposed by them in the Company.
 
 The Board also appreciates the contribution of contractors, vendors and
 consultants in the implementation of various projects of the Company.
 
 We also acknowledge the constructive suggestions received from
 Government and Statutory Auditors.
 
 We wish to place on record our appreciation for the untiring efforts
 and contributions made by the employees at all levels to ensure that
 the company continues to grow and excel.
 
                           For and on behalf of the Board of Directors
 
 Place : New Delhi                            (Dr. Arup Roy Choudhury)
 
 Date  : 11th July 2014                   Chairman & Managing Director
Source : Dion Global Solutions Limited
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