Dear Members,
 
 The Directors are pleased to present the 35th Annua I Report and the
 audited accounts for the year ended March 31, 2011.
 
 During theyear 2010-11, your Company has added capacity
 
 of 2,490 MW (including 500 MW through JV) which is the highest ever in
 ayearsince its inception. After commissioning of one unit of 660MW at
 Sipat in June 2011, the Company has become a 34,854 MW Company
 (including 3,364 MW through JV).
 
 1.  FINANCIAL RESULTS
 
 Income                             2010-11              2009-10
 
                             Rs. Crore    US $ Mn*      Rs. Crore   US $ Mn*
 
 Sale of Energy             54704.55       12095     46168.67      10207
 
 Consultancy                  169.45          37       153.92         34
 
 Other income 
 (Including energy 
 internally consumed)        2525.49         559      2911.29        644
 
 Total Income               57399.49       12691     49233.88      10885
 
 Expenditure
 
 Fuel                       35373.78        7821     29462.74       6514
 
 Employees Remuneration 
 & Benefits                  2789.71         617      2412.36        533
 
 Generation, Administration 
 & other expenses            2646.01         585      2094.03        463
 
 Interest                    1386.71         307      1070.96        237
 
 Finance charges              762.37         168       737.97        163
 
 Depreciation                2485.69         550      2650.06        586
 
 Total Expenditure          45444.27       10048     38428.12       8496
 
 Profit before tax, 
 provisions and prior 
 period adjusts.            11955.22        2643     10805.76       2389
 
 Tax                         2947.01         651      2157.26        477
 
 Profit after tax but 
 before provisions and 
 prior period                9008.21        1992      8648.50       1912
 
 Less:
 
 Prior Period 
 Adjustments (Net)         (1638.72)       (362)      (77.83)       (17)
 
 Provisions (Net)           1544.34         341        (1.87)         -
 
 Net Profit after tax       9102.59        2013       8728.20       1929
 
 Appropriations:
 
 Transfer to Bonds 
 Redemption Reserve          494.94         109        497.78       110
 
 Interim Dividend           2473.63         547       2473.64       547
 
 Proposed Dividend           659.63         146        659.63       146
 
 Tax on Dividend             514.77         114        527.62       117
 
 Transfer to General 
 Reserve                    5200.00        1150       4750.00      1050
 
 Transfer to 
 Capital Reserve               6.87            2         4.97         1
 
 *1 US $= Rs. 45.23 as on March 31, 2011
 
 2.  FINANCIAL PERFORMANCE
 
 2.1 Income
 
 The total income of your company for the year increased by 16.59% to Rs.
 57,399.49 Crore from Rs. 49,233.88 Crore during the previous year.
 
 2.2 Profit After Tax:
 
 The profit after tax but before provisions and prior period adjustments
 increased by 4.16% to Rs. 9008.21 Crore from Rs. 8648.50 Crore. Net profit
 after tax increased to Rs. 9102.59 Crore from Rs. 8728.20 Crore registering
 a growth of 4.29% over last year.
 
 3.  DIVIDEND
 
 3.1 Interim and Final Dividend:
 
 In addition to interim dividend of Rs. 3.00 per equity share paid in
 February 2011, your Directors have recommended a final dividend of Rs.
 0.80 per equity share for the year 2010-11. The total dividend for the
 year is Rs. 3.80 per equity share of Rs. 10/- each which is equal to the
 amount of dividend paid last year. The total dividend payout for the
 year amounting to Rs. 3133.26 Crore represents 34.42% of the profits
 after tax. The total dividend payout including dividend tax accounts
 for 40.08% of profit after tax. The final dividend shall be paid after
 your approval at the Annual General Meeting. The dividend has been
 recommended in accordance with your Company''s policy of balancing
 dividend payout with the requirement of deployment of internal accruals
 for its growth plans.
 
 Your Directors believe that growth of the company through capacity
 addition, backward and forward integration and strategic
 diversification of its operations would lead to increase in
 shareholders'' value.
 
 4.  OPERATIONAL PERFORMANCE
 
 4.1 Generation:
 
 During the year, the power stations of your Company generated 220.54 BU
 of electricity which was 27.19% (29.18% including JVs) of the total
 power generated in India. The power generated by the company has
 registered an increase of 0.77% over the previous year''s generation of
 218.84 BU. Your Company (including JVs) contributed 16.93% of the
 generation increase in the country during the year. The total
 generation contributed by coal stations is 195.28 BU during the year
 against generation of 191.26 BU last year registering a growth of 2.1%.
 Generation from coal station could have been still higher but for an
 unprecedented generation loss of 5.94 BU due to less grid demand. The
 gas stations having commercial capacity of 3,955 MW achieved annual
 generation of 25.26 BU at a PLF of 71.77 as against 27.58 BU last year
 due to lowergrid demand which resulted in generation loss of 7.29 BUs.
 The average availability of gas based stations of the year was 92.60%
 as compared to 90.64% during previous year. The coal based stations of
 your company operated at average Plant Load Factor (PLF) of 88.29%
 (National PLF 75.08%) and average Availability Factor of 91.67% on bar
 during the year. As on 31.03.2011, your Company has an installed coal
 based capacity of 26,875 MW excluding 1,424 MW from JV Projects. During
 the year, 10 coal based stations out of 15 achieved more than 90% PLF
 including three stations registering PLF above 95%.
 
 A detailed discussion on the operations and performance for the year is
 given in the Management Discussion and Analysis, Annexure-I included
 as a separate section to this report.
 
 5.  COMMERCIAL PERFORMANCE
 
 5.1 Realisation of Dues:
 
 During theyear, your Company realized 100% payment of current bills
 raised for sale of power for the eighth successive year. All the
 beneficiaries are paying within 30 days of billing except UPPCL, BSEB
 and JSEB which are making payment within the permissible 60 days
 period.
 
 5.2 Rebate Scheme/ One Time Settlement Scheme for realization of dues:
 
 An innovative rebate scheme of providing incentive for early payment
 based on provisional bill has helped in achieving early realization of
 dues. All the beneficiaries have established and are maintaining
 Letters of Credit (LC). As on date, your Company has monthly LCs of Rs.
 4386.03 Crore. RBI, on behalf of State Governments, serviced
 redemptions due on bonds and half-yearly interest installments on bonds
 in time as per One Time Settlement Scheme. The matter of securitization
 of outstanding dues amounting to Rs. 1310.83 Crore pertaining to DESU
 period payable by Government of NCT of Delhi is under active
 consideration by the Ministry of Power.
 
 5.3 Power Purchase Agreements:
 
 YourCompanyhad signed Power PurchaseAgreements (PPAs) for 49000 MW
 capacity during the year.  Government of India (Gol) has issued an
 order for allocation of 50% powerto HomeStateson 17.01.2011 for 14
 upcoming projects of your Company. Gol has allocated 75MW each from
 Farakka III (500 MW) and Korba III (500MW) for sale outside long term
 PPA. It has issued Scheme for provision of supply of electricity in 5
 km area around Central Power Plants on 27.04.2010.  29 stations and
 projects of your Company have been identified for this purpose and
 implementation of the scheme is under progress.
 
 5.4 Commercial Capacity:
 
 The following units were declared commercial during the year 2010-11,
 adding 1600 MW to commercial capacity of your Company
 
 Project / Unit                    Capacity                COD*  
                                    (MW)
 
 Dadri, Unit#6                       490               31.07.2010
 
 Muzaffarpur**, Unit#1               110               15.10.2010
 
 Jhajjar***, Unit#1                  500               05.03.2011
 
 Korba , Unit#7                      500               21.03.2011
 
 Total                              1600         
 
 * COD- Commercial Operation Date
 
 ** In Joint Venture with Bihar State Electricity Board.
 
 *** In joint Venture with IPGCPLand HPGCL.
 
 5.5 Determination of Tariff:
 
 Your Company has filed tariff petitions for the five-year period
 starting 1.4.2009 before CERC for all stations in accordance with the
 CERC (Terms and Conditions of Tariff) Regulations, 2009. Pending final
 orders, CERC has issued provisional tariff orders for 26 stations of
 your Company for the period 2009-2014.
 
 5.6 Strengthening Customer Relationship:
 
 Customer Relationship Management (CRM) initiative has been taken
 byyourcompanytowards strengthening relationship with our customers.
 Under this, regular structured interaction with customers takes place
 regularly for sharing of feedbacks /experiences / expectations. These
 meetings provide a platform for more interaction and sharing of
 experiences for mutual benefits. Based on the feedback received from
 the customers, the Company provides various support services to them,
 identifies potential areas of cooperation and shares best practice on a
 basis of mutuality. Besides, your Company also organized Regional
 Customer Meets, State specific Business Partner Meets and GENCOs Meets
 for better interaction and sharing of experience. Starting from
 2008-09, NTPC has rolled out a Customer Satisfaction Index (CSI) for
 gathering customers'' feedback and responding to their requirement. This
 initiative serves as a useful tool for further strengthening Customer
 Relationship and better appreciation of our business imperatives.
 
 6.  INSTALLED CAPACITY
 
 During the year 2010-11, your Company added 2490 MW detailed as under:
 
 Project / Unit                             Capacity (MW)
                NTPC owned 
 
 Dadri ,Unit#6                                  490
 
 Korba ,Unit#7                                  500
 
 Simhadri ,Unit#3                               500
 
 Farakka ,Unit#6                                500
 
                Under JVs   
 
 Jhajjar ,Unit#1                                500
 
 Net addition                                 2,490
 
 6.1 Installed Capacity of NTPC Group:
 
 The total installed capacity of the NTPC Group has increased from
 31,704 MW at the end of financial year 2009-10 to 34,194 MW at the end
 of financial year 2010-11 as tabulated below:
 
 Owned by NTPC                              Capacity (MW)
 
 Coal based projects                           26,875
 
 Gas based projects                             3,955
 
 Sub-total                                     30,830
 
 Joint Ventures & Subsidiaries_
 
 Coal based projects                            1,424
 
 Gas based projects                             1,940
 
 Sub-total                                      3,364
 
 Total                                         34,194
 
 Further 660 MW of Sipat Unit#1 was added in June 2011, thereby
 increasing the total installed capacity to 34,854 MW.
 
 7.  CAPACITY ADDITION PROGRAM
 
 Towards its journey to become the world''s largest and best power
 producer, your company has embarked upon an ambitious capacity addition
 program so as to have an installed capacity of 128GW by 2032. Your
 Company has adopted a multi-pronged growth strategy which includes
 capacity addition through green field projects, brown field expansions,
 joint ventures and acquisitions. In addition to furthering capacity
 addition through Coal / Gas based thermal power projects, your company
 has been pursuing enhancement of its power generation portfolio through
 Hydro, Renewable Energy and Nuclear energy projects.
 
 At present 1,320 MW Hydro capacity is under implementation togetherwith
 291 MW under bidding.  In its endeavor towards Greener Power, your
 Company plans to add around 1000 MW from Renewable Energy Sources by
 2017.
 
 7.1 Projects under Implementation
 
 As on 31.03.2011, Your Company''s various projects having aggregate
 capacity of 14,748 MW including 3,890 MW, being undertaken by Joint
 Venture companies, are under construction, as detailed below:
 
 Name of the Project                            Capacity(MW)
 
 I.   Project under NTPC Ltd
 
 A.  Coal Based Projects
 
 1.  Sipat-1                                       1980 *
 
 2.  Barh-I                                        1980
 
 3.  Simhadri-II                                    500
 
 4.  Bongaigaon-I                                   750
 
 5.  Mauda-I                                       1000
 
 6.  Barh-II                                       1320
 
 7.  Rihand-III                                    1000
 
 8.  Vindhyachal-IV                                1000
 
 Sub Total (A)                                     9530
 
 B.  Hydro Electric Power Projects (HEPP)_
 
 9.  Koldam                                         800
 
 10. Tapovan Vishnugad                              520
 
 Sub Total(B)                                      1320
 
 C.  Renewable Projects
 
 H.Singrauli CWHEPP                                   8
 
 Sub Total (C)                                        8
 
 Total I (A) (B) (C)                             10,858
 
 II Projects under JVs
 Coal Based Projects
 
 12. Jhajjar- JV with HPGCL & IPGCL                1000
 
 13. Vallur-JV with TNEB                           1500
 
 14. Nabinagar- JVwith Railways                    1000
 
 15. Muzaffarpur Expansion (MTPS)-                  390
 JVwith BSEB
 
 Total II                                          3890
 
 Total On-Going Projects (I) (II)                14,748
 
 * 660 MW of Sipat Unit#1 commissioned on 28.06.2011
 
 7.2 New Projects
 
 Your Company at present has invited bids for Main plant packages, for
 18,051 MW capacity (14,460 MW NTPC owned and 3,591 MW through its JVs
 and Subsidiaries). For most of the new projects, your Company is going
 for setting up Super Critical units of 660 / 800 MW which have higher
 efficiency and are also environment friendly. Towards this end, your
 company has invited bids under Bulk tendering for 5,940 MW capacity
 through 9 units of 660 MW and 7,200 MW capacity through 9 units of 800
 MW respectively. Balance 4911 MW capacity, apart from 660MW units is
 envisaged through coal based, Gas based, Hydro and Renewable Energy
 projects.
 
 Your Company has also taken up studies / preparation of Feasibility
 Reports and is pursuing statutory clearances for various other projects
 to be taken up in future once their viability is established.
 
 In order to meet the future challenges of meeting India''s electricity
 needs at affordable cost with minimum environmental impact, your
 Company has drawn a long term Technology Roadmap up to 2032 which
 involves development, adoption and promotion of safe, efficient and
 clean technologies for entire value chain of power generation business.
 Some of the technologies which your Company has targeted include
 setting up of coal fired units with Ultra Supercritical Parameters,
 establishment of Indian Coal Based Gasifier & Gas Cleaning System for
 IGCC.
 
 NTPC has adopted various technologies like units with advanced steam
 parameters for improving efficiency over that of conventional 500MW
 sub-critical plants.  For the new sub-critical 500 MW Units, reheat
 temperature has been increased to 565 degree Centigrade resulting in
 about 0.7% gain in efficiency.  The Company is also adopting
 technologies like flue gas desulphurization, ammonia flue gas
 conditioning system, advanced dust collection technology, high
 efficiency motors, energy efficient lighting system, plant C&l network
 Security System etc.
 
 7.3 Project Management - A New Approach
 
 Your Company believes that in order to achieve its ambitious capacity
 addition targets, it has to build on its capabilities and leverage its
 expertise in power project execution. Accordingly, it has revised its
 delegation of powers and has empowered its regions and projects to
 enable faster decision making. Your Company has already established a
 state-of-the-art IT enabled Project Monitoring Centre (PMC) for
 facilitating fast track project implementation. PMC has some advanced
 features like Web-based Milestone
 
 Monitoring System (Webmiles), Project Review and Internal Monitoring
 System (PRIMS), Enterprise-wide Issues Tracking System etc. The PMC
 facilitates monitoring of key project milestones and also acts as
 Decision Support System for the management. Features like SMS based
 information Delivery, Real time Video Capture, Storage & Retrieval
 Facility and Video Conference Facility are extensively utilized for
 project tracking, resolution of issues and management interventions.
 
 Other Initiatives:
 
 Your Company has signed MOU with Government of Punjab and Punjab Power
 Corporation Limited to set up 2640MW power project at Gidderbaha in the
 State of Punjab.
 
 Another MOU has been signed with Government of Madhya Pradesh and MP
 Tradeco Limited to set up 3960 MW power project at Barethi, Distt.
 Chhatarpur, Madhya Pradesh.
 
 Your Company has also signed MOU with Ministry of Railways to set up
 1320 MW power plant at Adra, West Bengal.
 
 7.5 Hydro Power
 
 75.1 Your Company is also setting up small and medium sized hydro
 projects through its wholly owned subsidiary NTPC Hydro Limited (NHL).
 Two such projects under development are:
 
 Project                         Location                Capacity
 
 LataTapovan                     Uttarakhand             171 MW
 
 Rammam-III                      West Bengal             120 MW
 
 7.5.2 Your Company''s Hydro Engineering Group is providing pre-award
 engineering support to the above projects. It is also providing
 detailed engineering support to Koldam (4X200MW) and Tapovan Vishnugad
 (4X130MW) Hydro-electric Power Projects.
 
 7.5.3 Further, in pursuance of Memorandum of Agreement signed with
 Govt, of Mizoram, Detailed Project Report of Kolodyne HEPP (4X115MW)
 prepared by Central Water Commission for Govt, of Mizoram and updated
 by NTPC has been submitted to CEA for accord of Techno-Economic
 Concurrence (TEC).  CEA in its 306th meeting considered the project
 proposal for accord of concurrence on 07.06.11.  Formal communication
 from CEA is awaited
 
 7.5.4 Your Company has been assigned the job of preparation of Detailed
 Project Report (DPR) for Amochhu Reservoir Hydro-electric Project
 (620MW) in Bhutan. Survey and Investigation for DPR is in progress and
 DPR is scheduled to be completed by September 2011.
 
 8. STRATEGIC DIVERSIFICATION- INCREASING SELF- RELIANCE
 
 8.1 In order to strengthen its competitive advantage in power
 generation business, your Company also plans to diversify its portfolio
 to emerge as an integrated power major, with presence across entire
 energy value chain through backward and forward integration into areas
 such as coal mining, manufacturing activities, power trading,
 distribution, etc.
 
 Business opportunities are being continuously explored through market
 scanning and new business plans are adopted accordingly.
 
 8.2 In order to strengthen its competitive advantage in power
 generation business, the Company has diversified into the area of
 manufacturing through the following joint ventures:
 
 8.2.1 NTPC-BHEL Power Projects Pvt. Limited (NBPPL), a
 
 joint venture of your Company with BHEL, incorporated on April 28,2008
 for taking up activities of Engineering, procurement and construction
 of power plants and manufacturing of equipments, has acquired 750 acres
 of land at Mannavaram in Andhra Pradesh. Construction at site is in
 progress. The Company has bagged two contracts for EPC and Balance of
 Plant for Palatana Combined Cycle Power
 
 Plant in Tripura and Namrup Combined Cycle Power plant from BHEL on
 nomination basis. Your Company is also negotiating with NBPPL for award
 of EPC contract for Unchahar Stage-IV (500MW). NBPPL is also exploring
 technology tie-up for Coal Handling Plant and Ash Handling Plant.
 
 8.2.2 Another joint venture Company, BF-NTPC Energy Systems Limited was
 incorporated with Bharat Forge Limited on June19, 2008 to manufacture
 castings, forgings, fittings and high pressure piping required for
 power projects and other industries. Land acquisition for establishing
 manufacturing plant at Sholapur, Maharashtra is in progress. Business/
 Technical alliances for key product lines are being actively pursued.
 
 8.2.3 Your Company has acquired 44.6% stake in Transformers and
 Electricals Kerala Limited from Government of Kerala on June 19,2009.
 The Company deals in manufacturing and repair of Power Transformers.
 The Company plans to augment the existing capacity to 6000MVA. For
 expansion and upgradation of the facility, technology tie-up is being
 pursued.
 
 8.2.4 Apart from the above initiatives, a subsidiary of your Company
 namely NTPC Electric Supply Company Limited, has commenced business of
 distribution of power through its JVC namely KINESCO Power and
 Utilities Private Limited, formed with KINFRA.
 
 Please referto Management Discussion and Ana lysis, Annexure-I
 included as a separate section to this report for further details.
 
 9.  GLOBALISATION INITIATIVES
 
 9.1 Your Company has finalized Joint Venture Agreement and Power
 Purchase Agreement with Ceylon Electricity Board for setting up a
 2X250MW Coal Based Power Project in Trincomalee, Sri Lanka. Joint
 Venture Company with equal equity participation shall be incorporated
 as soon as certain issues are resolved with Government of Sri Lanka.
 
 9.2 Your Company has also submitted draft Feasibility Report (FR) of
 1320MW Coal Based Khulna Power Project to Bangladesh Power Development
 Board (BPDB). FR would be finalized after BPDB carries out the coal
 sourcing study.
 
 9.3 Joint Venture Agreement has also been finalized and approved by
 NTPC Board for developing a 1320 MW coal based power project with BPDB
 with equal equity participation. The same has been forwarded to BPDB
 for approval at their end.
 
 10.  FINANCING OF NEW PROJECTS
 
 The capacity addition programs shall be financed
 
 with a debt to equity ratio of 70:30. Your directors believe that
 internal accruals of the Company would be sufficient to finance the
 equity com ponent for the new projects. Given its low gearing 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 2010-11, your Company has tied up loans of Rs. 3,479
 crore including loan of Rs. 2,000 crore from HUDCO Ltd. and Rs. 1,000 crore
 from HDFC Bank Limited for part funding of debt requirement in respect
 of capex for next three years. In addition, loans amounting to Rs. 479
 crore have also been tied with other banks to fulfill the debt
 requirement for next three years.
 
 YourCompanyhas entered into Term Loan Agreement with State Bank of
 India on 07.07.2011 for Rs. 10,000 crore for financing NTPC''s Ongoing
 Capital Expenditure for various power generation projects including
 renovation/ modernization of existing power plants.
 
 Bonds amounting to Rs. 720 crore were raised from domestic market for
 financing the capital expenditure and refinancing of the loans.
 
 Your Company raised USD 500 million senior unsecured fixed rate 10 year
 bonds under its USD One Billion MTN programme during July 2011. The
 bonds carry a coupon of 5.625% p.a. payable semi- annually and are due
 for maturity in July 2021.
 
 11.  FIXED DEPOSITS
 
 The cumulative deposits received by your Company from 244 depositors as
 at March 31, 2011 stood at Rs. 13.26 Crore. Further, an amount of Rs. 0.19
 Crore has not been claimed on maturity by 22 depositors as on that
 date.
 
 12.  FUEL SECURITY
 
 12.1 Diversified Fuel Mix
 
 Although coal will remain the mainstay for adding generation capacity
 owing to its abundant reserves in the country, your Company is
 progressively diversifying its fuel mix to increase the share of non-
 fossil fuel with a view to promote sustainable energy development and
 further reduce COQ intensity of power generation.
 
 12.1.1 Coal Supplies
 
 During the year, your Company has signed a 20 years Fuel Supply
 Agreement with SCCL for supply of 10.02MMT coal to Ramagundam (2100MW),
 and has entered into bilateral tie-ups with Eastern Coalfields Limited
 for 2.5MMT and with SCCL for supply of 5.0 MMT of coal at a mutually
 agreed price.
 
 Your Company has also entered into an Agreement with STC for supply of
 12MMT imported coal from the Financial Year 2011-12.
 
 During the year 2010-11, your Company received 137.3 MMT of coal as
 against 136.2 MMT in the previous year. Total import during 2010-11 was
 10.56MMT as against 6.3MMT in 2009-10.
 
 12.1.2 Sourcing of coal through E-auction
 
 For supplementing/strengthening the coal supply chain for Farakka and
 Kahalgaon, your Company also procured coal (0.08 MMT) through
 E-auction.
 
 12.2 Gas supplies
 
 During the year 2010-11, your Company received 13.77 MMSCMD of gas/RLNG
 as against 13.88 MMSCMD received during 2009-10. The gas off-take in
 2010-11 includes 9.00 MMSCMD APM/ PMT gas, 2.86 MMSCMD RLNG and 1.91
 MMSCMD of KG D6 basin gas.
 
 Your Company renewed APM gas agreements up to the year 2021 and PMT gas
 agreements up to the year 2019 for its gas stations. The long-term RLNG
 supply agreement with GAIL is valid till 2019. Further, out of 4.46
 MMSCMD of KG D6 gas allocated by Government of India for NCR gas
 stations, viz. Anta, Auraiya, Dadri & Faridabad, 2.30 MMSCMD has
 already been tied up. The balance 2.16 MMSCMD KG D6 gas is under
 negotiation.
 
 Your company has been making arrangements for tie- up/ supply of spot
 RLNG/ Fallback RLNG from domestic suppliers on ''reasonable endeavour''
 basis based on requirement/ availability from time to time.
 
 12.3 Development of Coal Mining projects
 
 Your Company has been allocated six coal blocks by the Government of
 India. Further, Brahmini coal block (including Chichro-Patsimal) has
 been allocated for joint operation by Coal India Limited & NTPC. All
 these mining blocks together have a production potential of more than
 73 million tonnes per annum.
 
 Your Company has appointed Thiess Minecs India Private Limited as Mine
 Developer cum Operator for
 
 Pakri Barwadih Coal Mining Project.
 
 Rehabi litation Action Plans (RAP) for these coal blocks have been
 prepared in association with District Administration and Project
 affected families. NTPC is providing adequate compensation and
 benefits. As a regular income generating scheme for the project
 affected families, ''Annuity Scheme1 has been launched in association
 with LIC.  Your Company is taking up community development activities
 involving youth and woman empowerment; skill development; education
 encouragement like scholarship to meritorious students, improvement of
 school infrastructure, etc.; regular health check-up,- local area
 infrastructure development schemes like installation of solar street
 lights, de-silting of ponds, distribution of drinking water,
 construction of community hall, road repairing work, etc. A new ITI is
 being set up at Barkagaon in Hazaribagh Distt. for the project affected
 persons.
 
 In reply to Ministry of Coal (MOC) letter dated 14.06.2011 for
 de-allocation for Chatti Bariatu, Chatti Bariatu (South) and
 Kerandari-A coal blocks of NTPC, Brahmini & Chichro-Patsimal coal
 blocks allocated to CIL-NTPC Urja Pvt. Ltd., Your Company requested MOC
 for review the decision of de-allocation at the highest level. In
 addition to this Secretary (Power) vide letter 07.07.11 has also
 requested Secretary (Coal) to review the de-allocation of coal blocks
 and restore it to NTPC.
 
 Your Company is reviewing the proposal to explore the possibility of
 using pet coke in Thermal Power Stations received from Hindustan
 Petroleum Corporation Limited - Mittal Energy Investment Private
 Limited.
 
 Your Company is also receiving proposals from time to time for
 acquiring coal mines abroad from Investment bankers as well as from
 mine owners from countries like Indonesia, South Africa, Australia and
 Mozambique. These proposals are under review and discussion with
 respective parties.
 
 12.5 Exploration Activities
 
 Under New Exploration Licensing Policy (NELP-VIII), your Company signed
 Production Sharing Contracts (PSCs) on 30.06.2010 with Government of
 India for four Oil/ Gas Exploration blocks.
 
 One of the blocks allotted under NELP-VIII is held by NTPC with 100%
 participating interest and as operator. Exploration activities in this
 block will commence after grant of Petroleum Exploration Licence for
 which application has been made to the Government of Gujarat. Minimum
 work programme commitment (MWP) for this block is Rs. 1701.6 million.
 
 The other three blocks are held by your Company in consortium with ONGC
 as operator and NTPC''s participating interest is 10% in each block.
 Exploration activities in these blocks have commenced during the year.
 NTPC''s share of MWP for these blocks is Rs. 810.3 million.
 
 13.  BUSINESS EXCELLENCE: GLOBAL
 
 BENCHMARKING
 
 In order to give an impetus to the journey towards
 
 continuous improvement, NTPC Business Excellence Model 2010, (an
 Internal Assessment Model for Excellence) using EFQM methodology has
 been developed for the organization suitably integrating the
 requirements of all stakeholders, after studying various world class
 frameworks. This Internal Assessment Model has been rolled out this
 year to all operating stations. An e-training module for Business
 Excellence Model has been developed for providing awareness to all
 employees across the organization.
 
 For employees engagement and development, Quality Circles and
 Professional Circles are given thrust by organizing competitive
 conventions at three levels i.e. station, regional and national level.
 Winning teams are encouraged to participate in International
 Conventions. There are about 800 Quality Circles and 325 Professional
 Circles. Every year one Quality Circle is being sent to International
 QC Convention.
 
 At strategic level apart from adopting NTPC Business Excellence Model,
 attempt is also being made for adopting balanced score card approach by
 integrating both for achieving automation of all business processes,
 meetings and reviews by adopting suitable lead & lag indicators and
 strategy maps.
 
 14.  RENOVATION & MODERNISATION
 
 14.1 Need for R&M:
 
 Renovation and modernization (R&M) of power plants in the present
 scenario of severe resource constraint is considered to be the best
 option for bridging the gap between the demand and supply of power as
 (R&M) schemes are cost effective. To this end, renovations are being
 carried out for the purpose of life extension of units, performance
 improvements, capacity up rating, availability improvement, and
 improved environment compliance. It increases the capacity, 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.
 
 14.2 S trategy by the Company:
 
 Your Company has approved the Strategy to be adopted for Mid Life R&M
 as well as Post 25 years Life Extension of Units in coal based
 stations, based on Tariff Regulations by CERC for 2009-14. R&M
 activities are under implementation in the power stations of Singrauli,
 Korba, Farakka Stage-I, Rihand Stage -I and Anta Gas Power Station and
 the take - over plants of Talcher TPS, Tanda TPS and Unchahar Stage-1
 totalling more than 7400 MW. Approvals for Mid Life R&M of Coal based
 projects of Talcher Kaniha (2x500 MW), Ramagundam (3x500 MW), Farakka
 (2x500 MW), Kahalgaon (4x210 MW), Vindhyachal (6x210 2x500 MW), FGLJTPP
 (2x210 2x210 MW) and Singrauli (2x500 MW) are under process.
 
 14.3 Benefits from R&M:
 
 Through the R&M, there has been substantial improvement in PLF of Tanda
 and Talcher Thermal Power Plants in comparison with the time your
 Company took over these plants. The details are as under:
 
 Name of the                  PLF prior to             PLF in
 Plant                        Take-over               2010-11
 
 Tanda                         21.59%                 92.61%
 
 Talcher                       19.80%                 94.22%
 
 15.  VIGILANCE
 
 15.1 Viligance Mechanism:
 
 Your Company ensures transparency, objectivity and quality in its
 operation and to monitor the same, the Company has a Vigilance
 Department headed by Chief Vigi lance Officer, a nom inee of Centra I
 Vigi lance Commission. The four units of Vigilance Department namely
 Corporate Vigilance Cell, Departmental Proceeding Cell (DIPC), MIS Cell
 and Technical Cell (TC) deal with various facets of Vigilance
 Mechanism.  Your Company''s employees also adhere to directives of CVC
 by submitting record of movable and immovable property annually to CVO
 office. The employees can give their suggestions and feedback for
 improvement of the vigilance mechanism on Vigilance portal on NTPC
 Intranet.
 
 Your Company has commenced certain measures like publishing of post bid
 details of tenders on website www.ntpctender.com, e-payments to
 contractors, suppliers, employees and other parties, use of website for
 recruitment process, etc to ensure transparency in the systems and
 processes.
 
 15.2 Workshops and Vigilance Awareness Week
 
 Preventive Vigilance Workshops are being conducted every year to
 sensitize employees about sensitive points and DOs and DONTs in work
 areas and their role in preventing corruption.
 
 Vigilance Awareness Week is being organized every year in first week of
 November to emphasize upon leveraging IT, creating awareness for
 transparency accountability, fair play and objectivity. The issues
 relating to contractors are also addressed to their satisfaction during
 Customer Meet organized during Vigilance Awareness Week.
 
 15.3 Implementation of Integrity Pact
 
 Your Company is committed to bring total transparency to its business
 processes and as a step in this direction has 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 Commission for all contracts with values exceeding Rs.
 100 crore.
 
 15.4 Implementation of Fraud Prevention Policy
 
 The Fraud Prevention Policy has been formulated and implemented in your
 Company since 2006. The cases referred by the nodal officers are being
 investigated immediately to avoid fraudulent behaviors as defined in
 the Fraud Policy.
 
 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 reflected in the
 consistent reduction of Man-MW ratio over the years.  The over-all
 Man-MW ratio for the year 2010-11 excluding JV/subsidiary capacity is
 0.77 and 0.74 including capacity of JV/Subsidiary. Generation per
 employee has increased to 9.27 MUs registering an increase of 0.5% over
 the last year.
 
 The total employee strength of the Company stood at 25,144 as on
 31.3.2011 against 24,955 as on 31.3.2010.
 
                                         FY 2010-11    FY 2009-10
 
 NTPC
 
 Number of employees                         23,797        23,743 
 Subsidiaries & Joint Ventures
 
 Employees of NTPC                            1,347         1,212
 in Subsidiaries & Joint
 Ventures
 
 Total employees                            25,1441        24,955
 
 The attrition rate of the executives during the year was 1.00%.
 
 16.2 Employee Relations
 
 During the year employees'' relations climate was peaceful and
 conducive. The scheme for employees'' participation in management
 continues to function successfully all over NTPC. There have been
 continuous interactions between the management and the apex fora of
 workmen and executives - National Bipartite Committee (NBC) and NTPC
 Executives Federation of India (NEFI) respectively.  The unions and
 associations and also the individual employees complimented the efforts
 of the management in developing and sustaining an enabling performance
 culture in the organization.  Meetings and workshops forworkmen and
 executives association were held during the year wherein issues
 relating to performance and productivity were discussed. The overall
 employee relations scenario in NTPC continued to be cordial marked by
 industrial harmony and mutual trust.
 
 16.3 Safety
 
 Occupational safety and Health at workplace is one of the concerns of
 NTPC Management and utmost importance is given to provide safe working
 environment and inculcate safety awareness among the employees.
 
 Regular plant inspection, internal and external safety audits are
 carried out at each Project/Station. Safe methods are practised in all
 areas of Operation and Maintenance (O&M) and Construction & Erection
 (C&E) activities. Safety task force for O&M and Construction
 activities, height permit and height check list are implemented.
 Qualified safety officers are posted at all units as per statutory
 rules/provisions.  Safety control roomsare established atal I
 construction projects to monitor unsafe conditions and unsafe acts.
 
 Through our continuous efforts in safeguarding the employees, accidents
 have come down by 30% as compared to last year. Many of our plants have
 been awardedwith prestigious safety awards in recognition of
 implementing innovative safety procedure and practices.
 
 16.4 Training and Development
 
 In line with its long-term objective of being a learning organization,
 your Company has continuously promoted training and development of not
 only its own employees but also other professionals of the power
 sector. In this effort, your Company has established Power Management
 Institute (PMI) at the corporate level aswellasthe employee development
 centres at the sites. Training imparted is always in tune with new
 emerging needs in diverse areas like nuclear power, coal-mining,
 hydro-power, super- critical technology, renewable energy etc. and for
 this purpose every year some new programmes are included in the annual
 calendar. Apart from this, the usual programmes include managerial
 topics, power station operation & maintenance and project construction,
 erection and commissioning and information technology.
 
 Under the on-going scheme of strengthening the Industrial Training
 Institutes (ITIs) across the country, your Company had taken the
 initiative of adopting ITIs near its power generating stations and a
 total of 18 ITIs have been adopted under this scheme till 31.03.2011.
 This activity is being coordinated through PMI which is also
 facilitating the construction of eight new ITIs where new projects are
 coming up. Through this initiative, PMI has created 1209 extra seats in
 ITIs.
 
 During 2010-11, your Company organized the following training
 programmes in power and energy sectors:
 
 (a) A national conference on Cases & Research in Power Sector to
 provide a platform for practising managers, academicians and research
 scholars to develop, contribute and present real life cases and action
 research from business practices in power and energy sector.
 
 (b) Hands-on training in 660 MW simulator at PMI to 256 participants.
 
 (c) Four Batches of 12-weeks each of the flagship programme on Thermal
 Power Generation for internal participants as well as external
 clients.
 
 (d) The Strategic Management Initiative for Leadership & Empowerment
 (SMILE) programme for Executive Directors of NTPC during March 14 -17,
 2011 which was attended by 15 participants. The programme revitalized
 the vision for developing strategic orientation and sustainable
 leadership practices in the organization.
 
 (e) Internationally accredited prestigious programme - American Society
 of Mechanical Engineers (ASME) Boiler and Pressure Vessel Code Section
 VIII Div. 1- by PMI faculty authorized by ASME.
 
 (f) An international conference on O&M of power stations was held
 wherein several technical papers were presented for experiential
 learning by professionals from power sector companies of India as well
 from other countries.
 
 (g) 396 training programmes were conducted with a participant base of
 9,130. The training mandays clocked was 55,737.
 
 17.  INCLUSIVE GROWTH
 
 17.1 Corporate Social Responsbility:
 
 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 environment and social aspects.
 
 With a view to address the domains of socio- economics issues at
 national level and in line with its Corporate Social Responsibility -
 Community Development Policy, your company has taken up various
 activities.
 
 Initiatives undertaken by the Company:
 
 As most of the stations of your Company are located in remote rural
 areas, various activities were taken up essentially in the areas of
 basic infrastructure development like primary education, community
 health, drinking water, sanitation, road, vocational training etc.
 
 In the area of Education, Financial assistance is being
 
 given to Ramakrishna Mission for conducting various activities under
 the banner Awakening India heralding the 150th Birth Anniversary
 celebration of Swami Vivekananda.
 
 Further, financial contribution was given to Sri Vedmata Gayatri Trust
 for construction of School cum Multipurpose Building in Village
 Shaulana, Distt.  Ghaziabad, UP; and to District Administration,
 Visakhapatnam for preparation and development of Audio Study material
 for Visually Challenged Persons.
 
 NTPC took up various vocational training programmes, such as web page
 designing and computer training, motor rewinding, motor driving,
 general electrical repairing, and mobile repairing etc. for youth and
 various coaching classes etc. for village children, based on the need
 of the local community in the neighbourhood of its stations.
 
 In order to contribute in the Conservation of selected National
 Monuments, NTPC has committed financial support to Archaeological
 Survey of India (ASI) and National Culture Fund (NCF) for conservation
 of 3 identified sites.
 
 As regards women empowerment, construction of one floor of Girls Hostel
 in Guntur district of AP has been completed, the same at Ongole is
 nearing completion. Various vocational training programmes for women in
 the neighbourhood villages of its stations including Cutting,
 Tailoring, Stitching, Dress Designing, Beautician, Embroidery, food
 preservation and food processing etc. were taken up. Financial support
 to Centre of the Study of Values, Udaipur was extended for vocational
 training in self reliance for 500 tribal girls/ women Udaipur district.
 
 Committed to its social responsibility, your Company had become a
 member of Global Compact, a voluntary initiative of the UN for CSR.
 Your Company confirms its involvement in various CSR activities in line
 with 10 Global Compact principles and shares its experience with the
 representatives of the world through Communication on Progress.
 
 A report on progress made in this area is enclosed at Annex-IXto
 Directors'' Report.
 
 17.2 NTPC Foundation
 
 NTPC Foundation, registered in December 2004, is engaged in serving and
 empowering the physically challenged and economicallyweaker sections of
 the society.
 
 Initiatives undertaken by the Company:
 
 The Information and Communication Technology
 
 (ICT) Centre, set up jointly by NTPC Foundation and University of
 Delhi, and similar ICT facilities to the blind schools in Lucknow,
 Ajmer, Thiruvanathapuram and Mysore are helping a large number of
 physically challenged students to learn IT Skills and move along with
 the mainstream society.
 
 NTPC Foundation-NIOH Disability Rehabilitation
 Centre(NFNDRC)establishedatTanda in collaboration with National
 Institute for the Orthopaedically Handicapped (NIOH), Ministry of
 Social Empowerment, Govt of India is providing rehabilitation/
 restorative surgery to physically challenged persons like medical
 interventions and surgical corrections, fitting of artificial aids and
 appliances and therapeutic services etc.
 
 New Disability Rehabilitation centers have been started at 4 more
 stations at Dadri, Korba, Rihand and Bongaigaon.
 
 In the area of health, Directly Observed Treatment cum Designated
 Microscopy Centre (DOT cum DMC) with Mobile Vans, diagnostic equipments
 and paramedical services have been started at 10 NTPC hospitals in
 Farakka, Kahalgaon, Korba, NCPP-Dadri, Ramagundam, Rihand, Singrauli,
 Talcher-Kaniha, UnchaharandVindhyachal respectively for diagnosis and
 treatment of the Tuberculosis patients in the neighbourhood villages of
 the stations. New centre has been started in 2 more stations i.e. at
 Anta and Sipat.
 
 NTPC is also supporting the efforts of Distributed Generation (DG) for
 preparation of feasibility reports, project insurance and bridging the
 funding gap between cost of the projects and available funds, through
 NTPC Foundation.
 
 15 projects have been supported in the past benefiting 2153 households.
 
 17.3 Rehabilitation & Resettlement
 
 Your Company is committed to help the populace displaced for execution
 of its projects and has been making efforts to improve the
 Socio-economic status of Project Affected Persons (PAPs). In line 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.
 
 Initiatives undertaken by the Company:
 
 During the year, R&R Policy has been revised aligning it with the
 provisions of GOI National Rehabilitation & Resettlement Policy 2007
 and retaining its learnings and well structured mechanism in the area
 of R&R.
 
 R&R Plan for Meja and Community Development (CD) for Bongaigoan project
 were approved during the year. Other R&R and CD Plans in process for
 the projects/ plants continued to be implemented.
 
 Socio-economic Survey was completed for Mouda- II, Kudgi, Marakkanam
 and Nabinagar STPP and is in progress at Muzaffarpur, Darlipalli,
 Gajamara, Barethi, Lara, Gadarwara and Khargone Projects.
 
 18.  IMPLEMENTATION OF OFFICIAL LANGUAGE
 
 Your Company has made vigorous efforts for the propagation and
 successful implementation of the Official Language Policy of the
 Government of India.  Several Hindi workshops, meetings, conferences
 and competitions were conducted at projects, regional offices and
 corporate centre during the year to encourage the employees to maximize
 the use of Hindi in official work. All office orders, formats and
 circulars were issued in Hindi as well. Important advertisements and
 house journals were released in bilingual form- in Hindi and in
 English. Annual Rajbhasha Conference was organized on 8th June 2010 for
 Hindi Officers under the Chairmanship of Director (Human Resources). To
 promote Hindi in Power Sector Meeting of Hindi Advisory Committee was
 held in Coorg under the Chairmanship of Minister of Power.
 
 Your Company''s website also has a facility of operating in bilingual
 form- in Hindi as well as in English.
 
 19.  SUSTAINABLE ENERGY DEVELOPMENT
 
 Vision Statement on Sustainable Energy Development:
 
 Going Higher on Generation, lowering GHG intensity
 
 Initiatives undertaken by the Company:
 
 Your Company is committed for development of renewable energy in view
 of global warming and fast depletion of fossil fuel.
 
 Your Company envisages capacity addition of 1000 MW through renewable
 energy sources by 2017.  These include wind, solar and small hydro
 based capacities. In this endeavor, Ministry of Power has allocated
 105MW (Phase-I) of unallocated thermal power from upcoming projects of
 NTPC for bundling with solar energy being generated from NTPC''s Solar
 Projects. Potential sites for 50MW have already been identified within
 NTPC''s generating stations and land for balance capacity have been
 identified in Madhya Pradesh and Andaman & Nicobar.
 
 Your Company has initiated competitive bidding process for
 implementation of 25MW solar projects and for the remaining projects.
 Detailed Project Reports are being finalized.
 
 Solar based projects in Karnataka, Gujarat and Rajasthan for total
 capacity of 195MW are under preliminary stages of development.
 
 As a measure to hedge against volatile fuel prices and the uncertain
 cost of complying with future environmental regulations, bids have been
 opened and are under evaluation for award for 39 MW Wind Energy
 Projects at Chakala in Maharashtra, 36MW at Modurgudda in Karnataka and
 100MW at Guledagudda in Karnataka.
 
 Your Company has already commissioned 15DG projects with cumulative
 capacity of 300KW at Chattisgarh, Uttar Pradesh, Rajasthan and Madhya
 Pradesh. One micro hydro based DG project of 2X20 KW is under
 construction at Nakkiya in Chattisgarh which is scheduled to be
 commissioned by December 2011.
 
 Your Company has signed the Joint Venture Agreement with ADB & Kyushu
 for power generation (500MW) through renewable energy sources. Joint
 Venture Company would be incorporated soon.
 
 20.  NETRA - R&D Mission in Power Sector
 
 NTPC Energy Technology Research Alliance (NETRA) focuses on areas such
 as Climate Change, Waste Management, New & Renewable Energy, Efficiency
 improvement, scientific support to stations, Cost reduction and
 reliability of stations.
 
 In order to provide utmost benefits to the stations, projects like
 Artificial Intelligence based plant performance advisory system,
 real-time advisory system for maintaining boiler water chemistry
 parameters, Radio frequency Identification (RFID) based fish plate
 removal detection system, etc have been successfully completed and
 deployed/tested at stations.
 
 Research Advisory Council (RAC) comprising eminent scientists and
 experts from India and abroad is in place to steer high-end research.
 Scientific Advisory Council (SAC) with Regional Executive Directors &
 Station Heads as its members provides directions for improving plant
 performance & reducing cost of generation. Meetings of both the
 Advisory Councils were held periodically where members deliberated on
 various project activities and gave guidelines for implementation of
 suggestions. Applications for 15 patent applications are in advanced
 stage of processing. NETRA provides technical support to all NTPC
 stations as well as other Utilities to improve their performance.
 
 As a part of establishing state-of-the art facilities for condition
 monitoring and diagnostic techniques, facilities like phased array,
 lon-chromatograph, alloy analyzer, High Pressure Liquid Chromatography
 (HPLC), 8 sensor solar radiation station, etc have been procured and
 installed at NETRA. To further expand the infrastructure creating
 laboratories and facilities, etc, the Phase II building activities are
 in advanced stage.
 
 NETRA is in the process of entering into a MOU with KFW, Germany for
 establishing solar & PV research facilities at NETRA.
 
 21. ENVIRONMENT MANAGEMENT - CONTINUOUS IMPROVEMENTS
 
 21.1 YourCompanyispursuingtheobjective of sustainable power
 development. It has taken a number of initiatives towards protection of
 the environment by providing advanced environment protection control
 systems, regular environment monitoring and judicious use of natural
 resources, adoption of high efficiency technologies such as super
 critical boilers for the up-coming Greenfield projects. High efficiency
 Electro-static Precipitators (ESPs) with efficiency of the order of
 99.9% or higher and advanced ESP control systems have been provided in
 all coal based plants to keep suspended Particulate Matter (PM) below
 the permissible level of 150 mg/ Nm3. All new plants are being provided
 with ESPs designed for outlet dust burden of below 100 mg/ Nm3. R&M of
 ESP is also underway in old units by providing additional collection
 area, advanced controllers and replacement of electrodes etc to keep PM
 values within limits. Flue Gas Conditioning (FGC) system has also been
 provided at our older stations as a short term measure to reduce PM
 emissions.
 
 To treat the waste water and reduce consumption of fresh water
 requirements for the plants, your Company has installed Liquid Waste
 Treatment Systems, Ash Water Recirculation System and closed cycle
 condenser cooling water systems with higher Cycle of Concentration
 (COC) in its stations. The Company is using 3 R''s (Reduce, Recycle &
 Reuse) as guiding principle for reduction in consumption of water.
 Further, treated waste water is used in various plant systems resulting
 in reduction of fresh water
 
 requirement. This has resulted in considerable reduction in fresh water
 intake by 20% to 30% and also reduction in quantity of effluent
 discharge from the power plants.
 
 Ash dykes in the Company have been engineered to ensure that all safety
 and environment issues are addressed at design stage itself.
 Multi-lagoon ash ponds with provision of over-flow Lagoons and ash pipe
 garlanding arrangement for change over of ash slurry feed points have
 been provided for effective settlement of ash particles. Water
 sprinklers have been provided in the Ash Pond areas for control of
 fugitive dust.
 
 As a proactive measure and to effectively utilize bio- degradable solid
 wastes generated in project canteens and townships, Bio-Methanation
 Plant has been set up at Faridabad and Singrauli to convert the waste
 into useful energy and bio-fertilizer. Methane generated from these
 plants is used in canteens to reduce energy requirement for cooking
 purpose.
 
 In order to monitor key environmental parameters of
 stackemissions,ambientairandeffluentscontinuously on real time basis,
 61 continuous Ambient Air Quality Monitoring System (AAQMS) along with
 Meteorological Sensors have been installed at 20 stations located all
 over India.
 
 To understand impact of power plants on flora & fauna and human beings,
 your Company has taken up a number of Environment Studies such as Human
 Health Risk Assessment, Fly Ash Leachate Study, pollutant Source
 Apportionment Study and Post Operational Environment Impact Assessment
 Study at various stations.
 
 Your Company has planted more than 19 million trees till date in and
 around its projects as a measure to take 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.
 
 21.2 Clean Development Mechanism (CDM)
 
 Your Company is pioneer in undertaking climate change issues
 proactively The Company has taken several initiatives in CDM Projects
 in Power Sector. Its projects i.e. Northkaranpura STPP and Tapovan
 Vishnughad HEPP & energy efficiency projects at Singrauli STPP have got
 Host Country Approval from National CDM Authority. The methodology
 prepared by NTPC viz. consolidated base line and monitoring
 methodology for new grid connected fossil fuel
 
 fired power plants using less GHG intensive technology for Super
 Critical technology has been approved by United Nations Frame Work
 Convention on Climate Change (LJNFCCC) under ''Approved Consolidated
 Methodology 13''. More green field energy efficiency CDM projects are in
 pipeline.
 
 21.3 Ash Utilisation
 
 During the year 2010-11, 26.03 million tonne of ash had been utilized
 for various productive purposes which is 55.14% of the total ash
 generation against MoU target of 55%.
 
 Important areas of ash utilization are - cement & asbestos industry,
 ready mix concrete plants (RMC), Road Embankment, Mine filing, Ash Dyke
 Raising & Land Development. Issue of fly ash to cement, RMC and other
 industries has been 9.88 Million Tonnes.
 
 Pond ash is being issued free of cost to all ash users from all NTPC
 Stations. Fund collected from sale of ash is being maintained in a
 separate account by the subsidiary company i.e. NTPC Vidyut Vyapar
 Nigam Limited and the same is being utilized for development of
 infrastructure facilities, promotion and facilitation activities to
 enhance ash utilization.
 
 21.4 CenPEEP - towards enhancing efficiency
 
 ''Center for Power Efficiency and Environmental Protection'' (CenPEEP),
 was set up to take initiatives to address climate change issues. It is
 a symbol of NTPC''s proactive approach towards Greenhouse Gas (GHG)
 reduction and commitment towards environmental protection. The centre
 has been entrusted with some of the Strategic Initiatives such as
 improvement in Efficiency and reliability. The thrust has been given to
 efficiency improvement through customized Energy Efficiency Management
 System (EEMS) and reliability through ''Knowledge Based Maintenance''.
 The activities include use of advanced analytical tools for efficiency
 gap analysis, combustion optimization, improvement in performance of
 condenser, cooling tower, coal mills and air-preheater, maximization of
 condition based maintenance through systematic ''Predictive Maintenance
 Program'', Reliability improvement strategies by Failure mode analysis
 through Reliability Centered Maintenance (RCM) and risk mitigation by
 Financial Risk Optimization (FRO).
 
 Through these efforts, over the years, more than 30 million tons of C02
 has been avoided in NTPC. The technical assistance to CenPEEP has been
 provided by USAID through USDOE and various other US
 
 institutes. CenPEEP has shared its knowledge and expertise of best
 practices with 14 State utilities in order to improve their efficiency
 and reduce carbon footprint.
 
 A project on ''Study on enhancing Efficiency of Operating Thermal Power
 Plants in NTPC-lndia'' was completed with Japan International Agency for
 Cooperation (JICA) where technical assistance was provided by experts
 from a consortium of three Japanese utilities namely Electric Power
 Development Co., Kyushu Electric Power Co. and The Chugoku Electric
 Power Co.
 
 22.  RURAL ELECTRIFICATION
 
 NTPC through its wholly owned subsidiary NESCL is carrying out the
 implementation of rural electrification in 29 districts in 5 States
 namely Madhya Pradesh, Chhatisgarh, Orissa, Jharkhand and West Bengal
 under Rajiv Gandhi Grameen Vidyutikaran Yojna (RGGW). 4315
 un-electrified/ de-electrified (UE/DE) villages were made ready and
 12.52 lac Below Poverty Line Rural household connections were provided
 during the Financial Year 2010-11.
 
 The cumulative achievement till 31.03.2011 includes 14433 UE/DE
 villages which have been electrified and 23.23 lac BPL connections have
 been provided.
 
 Besides above, 4443 partially electrified villages were also made ready
 during the financial year 2010- 11. The cumulative achievement of PE is
 11279 till 31.03.2011.
 
 23.  RIGHT TO INFORMATION
 
 Your Company has implemented Right to Information Act, 2005 in order to
 provide information to citizens and to maintain accountability and
 transparency. The Company has put RTI manual on website for access to
 all citizens of India and has designated a Central Public Information
 Officer (CPIO), an Appellate Authority and APIOs at all projects/
 stations/ offices of NTPC.
 
 During the year 2010-11, 831 applications were received under the RTI
 Act, out of which 813 applications were replied to. Twelve Workshops on
 RTI Act have been conducted at regional headquarters/ stations to share
 and deliberate on latest notifications, amendments and other issues for
 smooth implementation apart from the APIO''s Conference held in June
 2010. An interaction session with the Delegates from Commonwealth
 countries was also organized on 09.02.2011.
 
 24.  USING INFORMATION AND COMMUNICATION TECHNOLOGY FOR PRODUCTIVITY
 ENHANCEMENT
 
 Your Company has implemented an Enterprise Resource Planning (ERP)
 package covering maximum possible processes across the organization
 including subsidiaries. In addition to core business processes and
 Employee Self Service functionality, the ERP solution also includes
 e-procurement, Knowledge Management, Business Intelligence, Document
 Management and workflow etc. To take care of the need for process data
 at desktop for analysis and monitoring, PI system has been implemented
 at all plants in operation. PI based applications for real time
 performance monitoring analysis have been implemented at many locations
 and the remaining locations will be covered soon.
 
 Network connectivity has been strengthened using Multi-Protocol Label
 Switching- Virtual Private Network (MPLS-VPN). Bandwidth of
 communication network has now been doubled to make ERP operation
 faster. Further, a parallel communication network from alternate
 service provider is being arranged toensure maximum reliabilityand
 availability of communication network.
 
 A state-of-the-art Data Centre and centralized server facility to cater
 the entire NTPC is in operation at NOIDA. A disaster recovery centre is
 also functional at Hyderabad.
 
 Your company has already implemented Video conferencing at all NTPC
 Plant locations and subsidiaries which is being extensively used for
 Management Committee Meetings and Project Monitoring on regular basis.
 This facility at PMI is also now being used for conducting virtual
 class room coaching for students located at NTPC sites.
 
 25.  NTPC GROUP: JOINT VENTURES AND SUBSIDIARIES
 
 YourCompanyhasformed18jointventure Companies and 5 subsidiary Companies
 for undertaking specific business activities. The name of Pipavav Power
 Development Company Limited, a wholly owned subsidiary of NTPC has been
 struck off from the Registrar of Companies, NCT of Delhi & Haryana
 w.e.f.  28.01.2011 pursuantto Section 560 of the Companies Act, 1956.
 As such, the Company stands dissolved w.e.f. 28.01.2011.
 
 The names of Subsidiaries and Joint Venture
 
 The performance of these Companies as well as the consolidated
 financial statements are briefly discussed in the Management Discussion
 & Analysis section. The financial statements of subsidiary Companies
 along with the respective Directors'' Report are placed elsewhere in
 this Annual Report.
 
 26.  STATUTORY AND OTHER INFORMATION 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
 
 Information as per Companies                           IV 
 (Particulars of Employees) Rules,
 1975**
 
 Statement pursuant to Section 212 of                    V 
 the Companies Act, 1956 relating
 to subsidiary companies
 
 Statistical data of the grievances                     VI 
 
 Statistical information on persons                    VII
 belonging to Scheduled Caste / Tribe
 categories
 
 Information on Physically Challenged                 VIII
 persons
 
 UNGC-Communications on progress                        IX
 2010-11
 
 Project Wise Ash Utilisation                            X
 
 **INFORMATION AS PER COMPANIES (PARTICULARS OF EMPLOYEES) RULES, 1975
 
 Ministry of Corporate Affairs, through Notification G.S.R. 289(E) dated
 31st March 2011 has amended the Companies (Particulars of Employees)
 Rules, 1975 by providing that the information required under Section
 217(2A) of the Companies Act, 1956 read with the Companies (Particulars
 of Employees) Rules, 1975 shall be required to be provided for those
 employees whose remuneration is more than Rs. 60 lac per financial year,
 if employed for whole of the year or more than Rs. 5 lac per month, if
 employed for part of the year. The said Notification further provides
 that in case of Government Companies such particulars are not required
 to be included in the Board''s Report. However, such particulars shall
 be made available to the shareholders on a specific request made by
 them during the course of Annual General Meeting to be held on
 20.09.2011.
 
 27.  STATUTORY AUDITORS
 
 The Statutory Auditors of your Company are appointed by the Comptroller
 & Auditor General of India. M/s Dass Gupta & Associates, K.K. Soni &
 Co., Varma & Varma, Parakh & Co., B.C. Jain & Co. and S.K.  Mehta & Co.
 were appointed as Joint Statutory Auditors for the financial year
 2010-11.
 
 28.  MANAGEMENT COMMENTS ON STATUTORY AUDITORS’ REPORT
 
 The Statutory Auditors of the Company have given an un-qualified report
 on the accounts of the Company for the Financial Year 2010-11.
 
 29.  REVIEW OF ACCOUNTS BY COMPTROLLER & AUDITOR GENERAL OF INDIA
 
 The Comptroller & Auditor General of India, through letter dated
 20.05.2011, has given ''NIL'' Comments on the Financial Statements of
 your Company for the year ended 31st March 2011 under section 619(4) of
 the Companies Act, 1956. As advised by the Office of the Comptroller &
 Auditor General of India (C&AG), the comments of C&AG for the year
 2010-11 are being placed with the report of Statutory Auditors of your
 Company elsewhere in this Annual Report.
 
 30.  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 since the year 2002-03. The cost audit for the
 year 2010-11 has been completed and the Cost Audit reports are being
 submitted by the Cost Auditors.
 
 31.  BOARD OF DIRECTORS
 
 Shri Arup Roy Choudhury has taken over as Chairman & Managing Director
 of your Company w.e.f.  September 1, 2010. Shri R.S. Sharma ceased to
 be the Chairman & Managing Director of your Company with effect from
 31.08.2010 on attaining the age of superannuation. The Board wishes to
 place on record its deep appreciation for the valuable services
 rendered by Shri R.S. Sharma during his association with NTPC.
 
 Shri S.P. Singh, Executive Director has taken over as Director (Human
 Resources) with effect from October 16, 2010.
 
 Shri N.N. Misra, Executive Director has taken over as Director
 (Operations) with effect from October 19, 2010.
 
 In accordance with the provisions of Article 41 (iii) of the Articles
 of Association of the company four directors - Shri I.J. Kapoor, Shri
 A.K. Sanwalka, Shri Kanwal Nath and Shri Adesh Jain shall retire by
 rotation at the Annual General Meeting of your Company and, being
 eligible, offer themselves for re-appointment.
 
 32.  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 2010-11 and of the
 profit of the company for that period;
 
 3.  the Directors had taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Companies Act, 1956 for safeguarding the assets 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.
 
 33.  ACKNOWLEDGEMENT
 
 Your Directors acknowledge with deep sense of appreciation the
 co-operation received from the Government of India, particularly the
 Prime Minister''s Office, Ministry of Power, Ministry of Finance,
 Ministry of Environment & Forests, Ministry of Coal, Ministry of
 Petroleum & Natural Gas, Ministry of Railways, Planning Commission,
 Department of Public Enterprises, Central Electricity Authority,
 Central Electricity Regu latory Comm ission, Appel late Tribuna I for
 Electricity, State Governments, Regional Power Committees, State
 Electricity Boards and Office of Solicitor General of India.
 
 Your Directors also convey their gratitude to the shareholders, various
 International and Indian Banks and Financial Institutions for the
 confidence reposed by them in the Company. The Board also appreciates
 the contribution of contractors, vendors and consultants in the
 implementation of various projects of the Company. We also acknowledge
 the constructive suggestions received from Government and the 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
 
 (Arup Roy Choudhury) 
 
 Chairman & Managing Director 
 
 Place: New Delhi
 Date : August 04, 2011