The Directors are pleased to present the 40th Annual Report on the
business and operations of the Company along with audited financial
statements for the year ended March 31, 2016.
Financial Year 2015-16 has been yet another year of achievements for
your Company. With the addition of 2,255 MW capacity (including 445 MW
through Subsidiary Companies) during the year, total installed capacity
of your Company (including subsidiaries & JVs) as on 31.03.2016 was
With the commissioning of Anantpur Solar PV unit of 250 MW and takeover
of Patratu Thermal Power Plant of 325 MW after 31.03.2016, capacity of
your Company has become 47,228 MW as on 31.07.2016.
Major highlights for the year 2015-16 are:
- Power projects of 2,255 MW were commissioned.
- Declared 1,960 MW Power Projects on commercial generation.
- PLF of 78.61% as against all India PLF of 62.29% with three NTPC
stations recording more than 90% PLF and 11 stations (including JV) in
top 25 stations of the country.
- Excellent MOU rating by Government of India for the year 2014-15.
- Capital expenditure (CAPEX) for the year 2015-16 was Rs. 25,959.60
crore (Stand-alone) as against the MoU target of Rs. 23,000.00 crore.
Achieved Group Capex of Rs. 32,090.89 crore during FY 2015-16 against
Rs. 28,289.56 crore during FY 2014-15.
- 100% realization of current bills from customers.
- Revenue from operations (Net) was Rs. 70,506.80 crore and total
revenue was Rs. 71,696.07 crore.Net Profit after Tax (PAT) wasRs.
- Dividend of Rs. 3.35 per share comprising interim dividend of Rs.
1.60 per equity share paid in February 2016 and recommended final
dividend of Rs. 1.75 per equity share for the year 2015-16, subject to
approval of the shareholders.
- Cash contribution of Rs. 4,113.30 crore to Government of India''s
exchequer through dividend, dividend tax, income tax and wealth tax in
the financial year 2015-16.
- Market capitalization of Rs. 1,06,242.81 crore as on 31.03.2016.
- Construction of about 29,000 toilets in schools under Swachh Bharat-
Swachh Vidyalaya Abhiyan.
- Planted approx. 5.25 lac trees during 2015-16 to mitigate the GHG
emissions arising out of plant operations, thereby bringing total to
about 2.3 crore planted trees till end of 31.03.2016.
- About 8 crore bricks produced by fly ash brick plants of NTPC
stations, which are being utilised in plant and township.
- Honoured with ASSOCHAM 1st Corporate Governance Excellence Award in
listed PSUs category for the year 2014- 15.
- Ranked No. 2 Independent Power Producer and Energy Trader Globally in
the Platts Top 250 Global Energy Company Rankings 2015.
- Adjudged 4th among the Asian electric utilities in 2016 rankings as
per Forbes Global 2000.
- Honoured with Dun & Bradstreet Corporate Awards 2016 for best
performing Company in India in Power Sector.
- For the year 2016, NTPC has been adjudged as the Best Company to work
in the Public Sector Category in a study carried out by Great Place to
Work and the Economic Times.
- Bagged Golden Peacock Award for Excellence in Training from Institute
of Directors for the year 2016.
You will appreciate the fact that the company recorded growth and
excellent performance despite numerous challenge before the sector.
1. FINANCIAL RESULTS (STAND ALONE)
Particulars Rs. Crore US $ Mn* Rs. Crore US $ Mn*
Net Revenue from
Consultancy, 70,506.80 10,539.13 73,236.94 10,947.23
Other income 1,189.27 177.77 2,100.42 313.96
Total Revenue 71,696.07 10,716.90 75,337.36 11,261.19
Fuel 43,793.25 6,546.08 48,833.57 7,299.49
expense 3,609.32 539.51 3,620.71 541.21
Finance costs 3,230.36 482.86 2,743.62 410.11
amortization expense 5,425.32 810.96 4,911.65 734.18
other expenses 5,787.39 865.08 4,911.28 734.12
Prior period items (net) (196.15) (29.32) (333.83) (49.90)
Total expenses 61,649.49 9,215.17 64,687.00 9,669.21
Profit before tax and
activities 10,046.58 1,501.73 10,650.36 1,591.98
Add: Regulatory Income/
(Expenses) 12.09 1.81 (103.71) (15.50)
Profit before tax 10,058.67 1,503.54 10,546.65 1,576.48
Tax expense (184.24) (27.54) 255.79 38.23
Profit for the year 10,242.91 1,531.08 10,290.86 1,538.25
Appropriations: 2015-16 2014-15
Rs. Crore US $ Mn* Rs. Crore US $ Mn*
Transfer to bonds/
reserve 1,284.13 191.95 1,156.19 172.82
Transfer to general
reserve 6,000.00 896.86 7,000.00 1,046.34
Transfer to CSR reserve - - 78.30 11.70
Transfer to capital
reserve 0.11 0.02 0.12 0.02
Interim dividend 1,319.28 197.20 618.42 92.44
Proposed dividend 1,442.96 215.69 1,442.96 215.69
Tax on dividend 558.25 83.45 417.40 62.39
*1US $= Rs. 66.90 as on March 31, 2016
2.1 OFFER FOR SALE BY THE GOVERNMENT OF INDIA TO THE PUBLIC
Offer for Sale of 5% Equity Share Capital of the Company by the
Government of India was made in terms of CCEA''s approval in May 2015.
The offer was opened on 23.02.2016 for non-retail investors and on
24.02.2016 for retail investors. Non-retail investors were allowed to
place their bids for 80% of unreserved portion and retail investors had
reserved portion of 20%. The indicative price was Rs. 122.22 per equity
share which was above the floor price (Rs. 122 per equity share) and
cut-off price was Rs. 122.05.
Consequent upon sale of 41,22,73,220 shares by Government of India, the
equity holding of GOI in NTPC was reduced to 69.96% of the paid-up
capital from 74.96%. An amount of Rs. 5,014.55 crore exclusive of STT
was garnered through Offer for Sale by the Government of India.
2.2 OFFER FOR SALE BY THE GOVERNMENT OF INDIA TO THE EMPLOYEES
A total of 2,06,13,661 shares were offered to employees, being 5% of
stake sold by the Government of India in February 2016. These shares
were offered to the employees at Rs. 115.90 per equity share i.e. at 5%
discount to OFS price.
10,826 employees participated in the offer and applied for 1,75,82,590
shares being 85.3% of the shares offered under Employee OFS. An amount
of Rs. 203.78 crore was garnered through Offer for Sale for Employees
by the Government of India.
With the above Offer for Sale to Employees, the holding of Government
of India has further reduced to 69.74 %.
3.1 Interim and Final Dividend:
Your company paid interim dividend of Rs.1.60 per equity share in
February 2016 and the Board of your Company have recommended a final
dividend of Rs.1.75 per equity share for the year 2015-16. With this,
the total dividend for the year is Rs.3.35 per equity share of Rs.10/-
each. In the year 2014-15, the total dividend paid was Rs.2.50 per
equity share of Rs.10/- each.
The dividend payout is 26.97% and the total dividend payout including
dividend tax is 32.42% of profit after tax. The final dividend shall
be paid after your approval at the Annual General Meeting.
The dividend has been recommended in accordance with your Company''s
policy of balancing dividend pay-out with the requirement of deployment
of internal accruals for its growth plans.
4. OPERATIONAL PERFORMANCE
During the year, the power stations of your Company generated 241.98
BUs (263.42 BUs including JVs& Subsidiaries) of electricity (including
solar and hydro power) which was 21.95% (23.90% including generation by
JVs) of the total power generated in India (without Bhutan import)
registering an increase of 0.30% (1.09% including JVs & Subsidiaries)
over the previous years'' generation of 241.26 BUs. Generation
contributed by hydro stations was 2.308 BUs.
The total generation contributed by coal stations is 230.64 BUs during
the year against generation of 229.55 BUs last year registering a
growth of 0.5%. Generation from coal based units could have been still
higher but due to less generation schedule there was opportunity loss
of 37.76 BUs. The coal based stations operated at average Plant Load
Factor (PLF) of 78.61% (All India PLF 62.29%) and average Availability
Factor of 88.06% on bus bar during the year. The generation loss on
account of coal shortage was brought down to 0.18 BUs in the current
year from 8.895 BUs in FY 2014-15.
During the year, 3 coal based stations out of 17 (commercial Stations)
achieved more than 90% PLF and ranked as the Top 3 stations in the
country. 11 stations (including JV) of your Company are in top 25
stations in the country.
The gas stations having a capacity of 4,017 MW achieved annual
generation of 8.870 BUs at a PLF of 25.14% as against 11.588 BUs last
year mainly due to less generation schedule which accounted for an
opportunity loss of 25.529 BUs. The declared capacity of gas based
stations for the year was 97.30% as compared to 92.18% during previous
5. COMMERCIAL PERFORMANCE
5.1 Billing and Realisation
Your Company has realized 100% of its current bills raised for energy
supplied in 2015-16, thus achieving this feat for the 13th consecutive
Most of the customers were making their payments within 60 days of
billing and had availed rebates as per Company''s Rebate Scheme.
Beneficiaries have established and are maintaining Letter of Credits
(LCs) at 105% of the average monthly billing.
Apart from LCs, payment of dues is secured by Tri- partite Agreements
(TPAs) signed amongst the State Governments, Government of India and
Reserve Bank of India. In terms of TPAs, any default in payment by the
Discoms of a State can be recovered directly from the account of
respective State Governments with RBI. The TPAs are valid upto
31.10.2016. Most of the States have agreed for extension of existing
TPA, RBI has also given its no objection for the same. Extension of TPA
is under consideration by the Ministry of Power.
5.2 Rebate Scheme for realization of dues:
In order to encourage early and full realization of dues, your Company
has revamped ''Rebate Scheme'' for the year 2016-17. In the Scheme for
2016-17, 2% rebate shall be allowed for amounts credited to the account
of Company for any advance payment and payments made till 8th day of
the billing month. From 9th day of the billing month till 30th day of
the month next to billing month, rebate on amounts credited to the
account of the Company shall gradually reduce from 1.95% to 0% on 31st
of the month next to the billing month. An additional rebate of 0.1% of
the monthly billing would be allowed in all months where a customer
maintains monthly LCs.
5.3 Commercial Capacity:
The following units were declared commercial during the year 2015-16,
adding 1,960 MW to commercial capacity of your Company:
Project/ Unit Capacity COD*
NTPC Units- Coal Based (I)
Vindhyachal -V, Unit# 13 500 30.10.2015
Barh-II, Unit#5 660 18.02.2016
Total (I) 1,160
NTPC Units - Hydro (II)
Koldam, Unit#1 to 4 800 18.07.2015
Total (II) 800
Total Capacity declared 1,960
* COD- Commercial Operation Date
In 2016-17, 250 MW of Bongaigaon Unit#1 and 200 MW Anantpur Solar Power
Plant have been declared commercial making commercial capacity of
Company as on 30.06.2016 as 45,878 MW (including JVs and Subsidiaries)
Owned by NTPC MW
Coal based projects 34,425
Gas based projects 4,017
Renewable Energy Projects 310
Hydro Projects 800
Joint Ventures & Subsidiaries
Coal based projects 4,359
Gas based projects 1,967
5.4 Tariff Related Matters:
In FY 2015-16, your Company has been able to reduce Energy Charge Rate
significantly through various measures such as reduced consumption of
imported coal, rationalization of coal transportation across its
various stations. Tariff petitions with Central Electricity Regulatory
Commission (CERC) have been filed for all the operating stations for
determination of tariff for the period from 01.04.2014 to 31.03.2019.
Hearing on these petitions had started and orders will be issued after
completion of hearings.
5.5 Power Purchase Agreements:
Your Company has signed Power Purchase Agreements for Telangana
(Phase-I 1600 MW), Patratu (JV with Jharkhand State Electricity Board -
2725 MW) and Solar Capacity of 760 MW (comprising Anantpur -250 MW,
Mandsaur- 250 MW and Bhadla - 260 MW).
5.6 Strengthening Customer Relationship:
Customer Relationship Management (CRM) initiative has been taken by
your company towards strengthening relationship with the customers.
This is also reflected in the Core Values of your Company (BE
COMMITTED) which emphasizes ''Customer Focus'' as one of the core values
of Company. Under CRM, your Company has designed and executed several
structured activities with the objective of sharing of experiences and
best practices with the customers, capturing the feedback and
expectations. Based on the feedback received from the customers, the
Company provides various support services to them and identifies
potential areas of cooperation and sharing of others'' best practices.
During the year 2015-16, 62 such services were provided to the
Your Company offers training programs to the representatives of
beneficiary companies at Power Management Institute (PMI) on free of
cost basis. During the year 2015-16, 124 participants from various
customer organizations attended training in 73 programs conducted by
PMI. Besides above, your Company has put in place a Customer
Satisfaction Index (CSI) Survey for gathering customers'' feedback and
responding to their requirements. The CSI survey was revamped in
2015-16 to include feedbacks of the Grid Operators with the objective
of understanding the view points of grid operators also. This modified
Customer and Grid Operator Satisfaction Index Survey has been conducted
As a part of UDAY Scheme, your Company is helping state generating
companies to improve their operational efficiency and reduce the cost
of generation. With this objective, two workshops were conducted by
your Company with representatives of the Gencos of various states.
5.7 Power Trading in Power Exchange:
Your Company has commenced trading of the Un- requisitioned Surplus
(URS) Power in the Power Exchange through its trading arm NVVN from
June 2016. As per the amended Tariff Policy, gains from these
transactions will be shared in the ratio of 50:50 with the
beneficiaries whose URS is sold.
6. INSTALLED CAPACITY
During the year 2015-16, your Company added 2,255 MW to its installed
capacity as per details given below
Project/ Unit installed Capacity
Coal Based Power Projects
Vindhyachal -V, Unit#13 500
Bongaigaon, Unit#1 250
Mouda-II, Unit#3 660
Hydro Power Projects
Koldam Hydro, Unit#3 and 4 400
Total NTPC owned 1,810
Under JVs & Subsidiaries (Coal Based Power Projects)
Kanti (subsidiary of NTPC in JV with 195
BRBCL (subsidiary of NTPC in JV with 250
Ministry of Railways)
Total by JV & Subsidiaries 445
Total Addition during FY 2015-16 2,255
With above capacity addition during 2015-16, capacity added in the
first four years of 12th Plan Period has reached 9,550 MW against the
target of 11,920 MW for 12th Plan Period (as per CEA).
The total installed capacity of the NTPC Group as on 31.03.2016 has
become 46,653 MW (44,398 MW as on 31.03.2015) as tabulated below:
Owned by NTPC MW
Coal based projects 35,085
Gas based projects 4,017
Renewable Energy 110
Hydro Projects 800
Joint Ventures & Subsidiaries
Coal based projects 4,674
Gas based projects 1,967
With the commissioning of Anantpur Solar PV unit of 250 MW and addition
of Patratu Thermal Power Plant of 325 MW after 31.03.2016, capacity of
your Company has become 47,228 MW as on 31.07.2016.
7. CAPACITY ADDITION PROGRAM
Your Company has adopted a multi-pronged growth strategy which includes
capacity addition through green field projects, brown field expansions,
expansion through joint ventures and acquisitions, towards its journey
to achieve its vision to become world''s largest and best power producer
powering India''s Growth. In addition to furthering capacity addition
through Coal based power projects, your Company has been pursuing
enhancement of its power generation portfolio through Hydro and
Renewable Energy projects.
7.1 Projects under Implementation
Your Company''s various projects having aggregate capacity of 24,009 MW
including 4,050 MW being undertaken by Joint Venture and subsidiary
companies are under implementation at 23 locations across length and
breadth of the country as on 31.03.2016. This includes 22,430 MW
through coal based projects, 1,579 MW through renewable energy
projects, comprising 811 MW through hydro capacity, 8 MW small hydro
project and 760 MW of solar power PV projects. The details of such
projects are as under:
Ongoing Projects as on 31.03.2016
I. NTPC owned:
A. Coal Based Projects
1. Bongaigaon, Assam 500
2. Barh-I, Bihar 1,980
3. Lara-I, Chattisgarh 1,600
4. North Karanpura, Jharkhand 1,980
5. Kudgi-I, Karnataka 2,400
6. Gadarwara-I, Madhya Pradesh 1,600
7. Mouda-II, Maharashtra 660
8. Solapur, Maharashtra 1,320
9. Darlipalli, Odisha 1,600
10. Unchahar-IV, Uttar Pradesh 500
11. Tanda-II, Uttar Pradesh 1,320
12. Khargone, Madhya Pradesh 1,320
13. Telangana Phase-I, Telangana 1,600
Sub Total (A) 18,380
B. Hydro Electric Power Projects (HEPP)
14. TapovanVishnugad, Uttarakhand 520
15. LataTapovan, Uttarakhand@ 171
16. Rammam Hydro, West Bengal 120
17. Singrauli CW Discharge, Uttar Pradesh 8
Sub Total (B) 819
C. Solar Power Projects
18. Anantpur Solar PV, Andhra Pradesh* 250
19. Mandsaur, Madhya Pradesh 250
20. Bhadla, Rajasthan 260
Sub Total 760
Total I (A) (B) (C) 19,959
II Projects under JVs & Subsidiaries Coal Based Projects
21. Nabinagar- JV with Railways, Bihar 750
22. Nabinagar, JV with BSPGCL, Bihar 1,980
23. Meja, JV with UPRVUNL, Uttar Pradesh 1,320
Total II 4,050
III Total On-Going Projects as on 24,009
31.03.2016 (I) (II)
*Subsequently, 200 MW unit of Anantpur Solar has been commissioned on
01.04.2016 and 50 MW on 29.07.2016.
In addition, 250 MW of Rourkela Project by NSPCL had been awarded on
As on 31.07.2016, projects under construction (including JVs and
subsidiaries) are 24,009 MW.
@Work of Lata Tapovan HEPP stopped since 08.05.2014 as per orders of
the Supreme Court.
7.2 New Projects
Your Company has awarded Telangana, Phase-I (2X800 MW), Thermal Power
Project, Mandsaur (250 MW) and Bhadla (260 MW) Solar Projects during
the Financial Year 2015-16.
As on 30.06.2016, your Company has projects for 6,640 MW thermal
capacity and 768 MW renewable capacity under bidding.
7.3 New Technology & Initiatives
Your company has laid major stress on efficient utilization of
resources and use of technological advancements for improving energy
With emphasis on efficiency of electricity generation, your Company has
adopted ultra super critical technology by improving the steam
parameters for North Karanpura (3X660MW) to 260 kg/ cm2, 593oC/ 593oC.
For Khargone (2X660MW) and Telangana (2X800 MW) steam parameter are 270
kg/ cm2, 600oC/ 600oC. Plant efficiency of these units is expected to
increase by around 8% over that of a conventional sub-critical 500 MW
unit and 3% over conventional super critical units using similar coal.
Development of Advance Ultra Super Critical technology:
Your Company has entered into an MOU with BHEL and Indira Gandhi Centre
for Atomic Research (IGCAR) for indigenous development of advanced
ultra super critical technology. This will have enhanced efficiency of
around 46% and about 18% less CO2 emission per unit of power generation
as compared to 500 MW sub-critical thermal power units. The program is
targeted to deliver a plant having 800 MW unit with steam parameters of
310 kg/sq cm, 710oC/720oC. Approval of Phase-I (R&D phase) of the
project is under consideration of Government of India.
Your Company as pioneer in Environment monitoring has already installed
Ambient Air Quality Monitoring Stations (AAQMS) employing Nox, So, CO,
SPM & RSPM analysers in 20 operating stations in 2 x 009-10 and data is
made available to CPCB. Similarly, Continuous Emission Monitoring
System (CEMS) employing Nox, Sox, CO & CO2 analysers at stack for flue
gas have been installed recently in various operating stations. Your
company has recently introduced analysers for Mercury monitoring for
both AAQMS and CEMS.
7.3.1 Energy Conservation, Technology Absorption
Details of conservation of energy and technology absorption in
accordance with section 134(3) of the Companies Act, 2013 read with
Companies (Accounts) Rules, 2014 forms part of this report as
7.4 Project Management
Your Company has established state-of-the-art IT enabled Project
Monitoring Centre (PMC) for facilitating fast track project
implementation. PMC has advanced features like Web-based Milestone
Monitoring System (Webmiles), Project Review and Internal Monitoring
System (PRIMS), etc. PMC facilitates monitoring of key project
milestones and also acts as decision support system for the management.
PMC is an integrated enterprise-wide collaborative system to facilitate
consolidation of project related issues and their resolution. Features
like SMS based information delivery; real time video capture, storage
and retrieval facility and video conference facility are extensively
utilized for project tracking, issues resolutions and management
interventions. PMC has helped in providing effective coordination
between the agencies and has provided enhanced/ efficient monitoring of
the projects leading to better and faster project implementation.
7.5 Capacity addition through Subsidiaries and Joint Ventures (JVs)
Besides adding capacities on its own, your Company develops power
projects through its subsidiaries and joint ventures, both in India and
7.6 Hydro Power
Your Company now has its footprints in renewable energy by developing
hydro projects as detailed below:
A. Koldam HEPP (4x200 MW) is on the river Satluj at Barmana, District
Bilaspur (Himachal Pradesh). All the four units of 200 MW each have
been declared commercially operational on 18.07.2015. Since then the
project is running successfully.
B. Tapovan Vishnugad HEPP (4x130 MW) is on River Dhauliganga, District
Chamoli (Uttarakhand). Project is under construction with approximately
70% work completed. After completion of 7.65 km out of 12.08 km of Head
Race Tunnel (HRT), the contract was terminated on 09.01.2014. Award of
balance works of HRT placed on 09.03.2016. Construction of Barrage,
Switchyard and Electro-Mechanical & Hydro- Mechanical works are in
C. Lata Tapovan HEPP (3x57 MW) is just upstream of Tapovan-Vishnugad
HEPP. The work was stopped by Hon''ble Supreme Court through order dated
07.05.2014 for 24 Hydro Projects in the State of Uttarakhand including
Lata-Tapovan. The MOEF&CC constituted an expert body, which submitted
its report on 19.10.2015 and MOEF submitted the same in court on
05.11.2015, where Lata Tapovan had been recommended for implementation
with compliance of certain additional conditions. Your Company
submitted in Court on 19.11.2015 that the conditions recommended by
expert body shall be strictly complied. On the hearing held on
26.04.2016, Additional Solicitor General of India represented MOEF and
informed the Court that Lata - Tapovan Project must be implemented. The
matter is still to be decided by the Supreme Court. For National Board
of Wild Life (NBWL) Clearance for Tapovan- Vishnugad and Lata Tapovan
HEPPs, the proposal regarding redefining of Eco Sensitive Zone was
discussed in Uttarakhand State Cabinet Meeting and shall be forwarded
for MOEF&CC, GOI for its approval.
D. Rammam-III HEPP (3x40MW) This project is situated on river Rammam in
Teesta Basin, Darjeeling (West Bengal). Civil works of Barrage, Power
House, HRT& S/Y are in progress. The river has been diverted through a
diversion channel and the work in the river bed has been started for
construction of Barrage.
7.7 Capacity Addition through Renewable Energy Sources
Your Company is adding capacity through renewable sources of energy, to
broad-base its generation mix to ensure long term competitiveness,
mitigation of fuel risks and promotion of sustainable power
7.7.1 Under Green Energy Commitment:
Your Company has committed to develop 10 GW of Renewable Energy
Projects under green Energy Commitment to Govt. of India.
Your Company has already commissioned 310 MW of solar projects as on
30th June 2016. 560 MW Solar Power Projects are under execution which
includes Mandsaur Solar (250 MW), Bhadla Solar (260 MW) and Anantpur
Solar (50 MW).
NITs have been issued for 1,750 MW of Solar PV projects to be set up in
the states of Andhra Pradesh and Karnataka.
7.7.2 National Solar Mission:
Your Company has been entrusted to develop 15 GW Solar PV through
National Solar Mission (NSM) Phase-II in three tranches between 2014-15
to 2018-19, where the Company will be the facilitator/trader between
Discoms and developers. Your Company will purchase power from the
developers and sell it to the Discoms. Under Tranche-I, 3000 MW of
Solar PV capacity upto 2016-17 has been planned. NITs for 3,000 MW of
Solar PV capacity to come up in the states of Andhra Pradesh,
Rajasthan, Karnataka, Telangana and Uttar Pradesh have been issued and
awards placed for 2,520 MW projects till 30th June 2016. The developers
have been selected through reverse auction.
8. STRATEGIC DIVERSIFICATION- INCREASING SELF- RELIANCE
8.1 In order to strengthen its competitive advantage in power
generation business, your Company has diversified its portfolio to
emerge as an integrated power major, with presence across entire power
value chain through backward and forward integration into areas such as
coal mining, power equipment manufacturing, power trading and
Your Company continuously explores business opportunities through
market scanning and adopts new business plans accordingly.
8.2 The details of subsidiary companies engaged in business other than
in power generation are as under:
8.2.1 NTPC Electric Supply Company Limited (NESCL), a wholly owned
subsidiary was incorporated to foray into the business of distribution
and supply of electrical energy as a sequel to reforms initiated in the
power sector. The Company was implementing Rajiv Gandhi Gramin
Vidyutikaran Yojna (RGGVY) projects on turnkey basis and undertaken
turnkey execution of sub-stations for utilities and project management
The shareholders of NESCL have transferred existing business of deposit
and consultancy works under RGGVY from NESCL to NTPC on 01.04.2015.
This subsidiary had also dis-associated with the business of retail
distribution of power in various industrial parks developed by Kerala
Industrial Infrastructure Development Corporation (KINFRA), through its
Joint Venture Company namely KINESCO Power and Utilities Private
Limited, as the future prospects of the JV Company are bleak. The
shares held by NESCL had been purchased by KINFRA on 17.12.2015 and
thus NESCL had ceased to be the joint venture partner of KINESCO.
8.2.2 NTPC Vidyut Vyapar Nigam Limited (NVVN), a wholly owned
subsidiary is involved in power trading.
During the year 2015-16, the Company transacted business with various
State Electricity Boards spread all over the country and traded 12,766
MUs of electricity. The Company is designated Nodal Agency for
implementation of Jawahar Lal Nehru National Solar Mission Phase-I by
purchasing and selling of grid connected bundled solar power across the
country. NVVN has also been designated as the nodal agency for cross
border trading of electricity with Bhutan, Bangladesh and Nepal.
PPA was signed on 15.02.2016 between NVVN and Nepal Electricity
Authority (NEA) for supply of upto 80 MW power from Feb to Jun 16
through 400 KV Muzaffarpur- Dhalkabar transmission line. Power supply
to NEA started on 18th Feb 2016.
NVVN has paid dividend of Rs. 20 Crore to NTPC in FY 2015-16.
9. GLOBALISATION INITIATIVES
9.1 Trincomalee Power Company Limited (TPCL), a 50:50 joint venture
between your Company and Ceylon Electricity Board was formed to
undertake the development, construction, establishment, operation and
maintenance of a coal based electricity generating station of (2X250
MW) capacity at Trincomalee at Sri Lanka. EIA clearance was granted by
Central Environmental Authority (CEA) on 02.02.2016 with some specific
conditions. However, Secretary, Ministry of Power & Renewable Energy,
Govt. of Sri Lanka (GoSL) has requested Secretary (Power), GoI, to
form a Joint Working Group to explore the possibility of changing fuel
source of Power Project from Coal to LNG.
9.2 Bangladesh-India Friendship Power Company Private Limited, a 50:50
joint venture Company between NTPC and Bangladesh Power Development
Board (BPDB) was formed for developing a (2X660 MW) Coal based power
project (Maitree Super Thermal Power Plant) at Khulna Division, Rampal,
Bangladesh. EPC contract of the project except township had been
awarded to BHEL. Other activities are also in progress. An MoU has
been signed with Bangladesh Shipping Corporation (BSC) on 24.01.2016 to
explore the possibility of BSC taking up part/full coal logistics for
10. CONSULTANCY SERVICES
Consultancy Wing of your Company offers services like Engineering,
Operation & Maintenance Management, Project Management, Contracts &
Procurement Management, Quality Management, Training & Development etc.
These services have been provided in international markets in Gulf
countries, Bangladesh, Nepal, Sri Lanka and Bhutan.
On international front, Consultancy Wing has been associated with
Trincomalee Power Company Ltd. As Owners'' Engineer for setting up their
(2x250 MW) Coal Based Power Project. It is also providing O&M
Management Services to (2X120 MW) Siddhirganj Peaking Power Plant of
Electricity Generation Company of Bangladesh under a World Bank funded
On the domestic front, Consultancy Wing has been effectively sharing
its expertise with State, Central PSUs and other clients. This includes
Owners Engineer Services to The Singareni Collieries Company Limited
for their coal based power project in Adilabad district, Telangana and
Project Monitoring Services to MPPGCL for (2x600MW) Shree Singaji TPP &
(2x250MW) Satpura TPP by deputing NTPC experts at site.
11. FINANCING OF NEW PROJECTS
The capacity addition programs shall be financed with a debt to equity
ratio of 70:30, in case of thermal and hydro projects and that of 80:20
in case of solar projects. Your directors believe that internal
accruals of the Company would be sufficient to finance the equity
component for the new projects. Given its low geared capital structure
and strong credit ratings, your Company is well positioned to raise the
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
The details of funding are discussed in the Management and Discussion
Analysis Report which forms part of this Report.
12. FIXED DEPOSITS
Your Company has discontinued the acceptance of fresh deposits and
renewals of deposits under Public Deposit Scheme with effect from
11.05.2013. As such, there were no deposits which were not in
compliance with the requirements of Chapter-V of the Companies Act,
The details relating to deposits, as per the Companies Act, 2013 is as
(a) [Accepted during the year Nil
(b) Remained unpaid or unclaimed as 6 Deposits
at the end of the year amounting to
Rs. 15.91 lakh*
(c) Whether there has been any default in repayment of deposits or
payment of interest thereon during the year and if so, number of such
cases and the total amount involved
(i) At the beginning of the year Nil
(ii) Maximum during the year Nil
(iii) At the end of the year Nil
* Pending for completion of legal formalities/ restraint orders/
non-receipt of claims.
13. FUEL SECURITY
13.1 During the year, the supply position of coal and gas is given as
13.1.1 Coal Supplies
Your Company has entered into long term Fuel Supply Agreement with Coal
India Limited (CIL) and The Singreni Collieries Company Limited (SCCL)
for total Annual Contracted Quantity (ACQ) of 152.978 MMT & 11.2 MMT
respectively. The total ACQ of 164.2 MMT of coal from CIL & SCCL is
signed for 33,515 MW units already commissioned/ to be commissioned.
The Company also had a short-term Memorandum of Understanding (MOU)
with SCCL for supply of 3.5MMT of coal for Ramagundam, Simhadri and
Kudgi (start-up coal) stations for supply till March 2016. Short-term
MOU for one year had been signed with Eastern Coalfields Limited (ECL)
for supply of 5.5 MMT of coal. Another short term MOU signed with
Northern Coalfields Limited (NCL) in 2014-15, was extended till
31.03.2016, for supply of balance 2.0 MMT of coal to enhance coal
supply to non NCL linked stations as per requirement The coal supplies
for 2016-17 is tied up mainly through FSA and supplemental through MOU/
e-auction alongwith balance quantity or imported coal of last year.
During the year under review, your Company had made coal tie-up for
Barh Stage-II (2X660MW) units through MOU with CCL and ECL for 6.66
MTPA of coal at notified price, which helped stations to eliminate
usage of costly coal thereby bringing down the cost of generation. Your
Company was also allocated bridge linkages by Special SLC (LT) for
Barethi (4X660MW), Barh -II (2X660MW), Darlipalli (2X800MW), Tanda -II
(2X660MW), Lara -I (2X800MW), Kudgi -I (3X800MW) and Bilhaur (2X660MW)
projects. Your Company was issued Letter of Assurance for tapering coal
linkage for Telangana Phase-I (2X800MW) by WCL
13.1.2 Domestic Coal and Imported Coal
During 2015-16, your Company received 161.8 MMT of coal as against
167.4 MMT in 2014-15 marking a decrease of 3.3%.
Total domestic coal supply during 2015-16 was 152.3 MMT as against
151.1 MMT during 2014-15. Out of 152.3 MMT of coal, 145.2 MMT was from
Annual Contracted Quantity of coal.
The total coal supply from CIL was 138.5 MMT and from SCCL was 13.8
MMT.6.3 MMT of coal was procured through MOU during 2015-16.
During 2015-16, your Company imported 9.7 MMT (including SWAP) of coal
as against 16.4 MMT in 2014-15.Sipat station received 0.53 MMT of
domestic coal against swapping of imported coal with GSECL.
During the year under review, approx. 57.2% of coal (domestic and
international) was transported through merry-go-round (MGR) system of
13.1.3 Sourcing of coal through E-auction
Your Company participated in one e-auction for Vindhyachal, Stage-V in
the year 2015-16 and approx. 1.88 LMT of coal had been allocated. Total
coal received through e-auction was 0.29 MMT during 2015-16 as compared
to 0.94 MMT during 2014-15.
13.1.4 Supply through Inland Waterways
During 2015-16, about 0.716 MMT imported coal has been supplied through
inland waterways to Farakka station under a Tripartite Agreement with
IWAI and service provider.
13.1.5 Rationalisation of Linkage
With the initiatives of Ministry of Power and Ministry of Coal,
Inter-Ministerial Task Force has recommended rationalization of linkage
for optimization of transportation cost and de-congestion of railway
network. In this respect your Company has rationalized the linkage of
Ramagundam and Simhadri during 2015-16. For Ramagundam, amendment to
FSA was signed on 21.01.2016 with SCCL for ACQ of 11.2 MMT (previous
ACQ-10.2 MMT) in lieu of FSA with MCL and SECL for ACQ of 0.5MMT each
for Simhadri reducing ACQ with MCL from 9.82 MMT to 8.32MMT and
corresponding quantity of 1.5MMT rationalized for ECL Estimated annual
saving in transportation cost taking Ramagundam and Simhadri together
is around Rs. 35.95 crore.
13.1.6 Swapping of coal with GSECL
Under swapping agreement with GSECL, Sipat station has received around
0.53 MMT of SECL coal with saving of around 150 crore on account of
13.1.7 Commencement of third party sampling, CIMFR
In the meeting held under the Chairmanship of Hon''ble Minister of State
(I/c) for Power, Coal & NRE on 28.10.2015, tripartite MOU between NTPC,
CIL and CSIR-CIMFR was finalized for sampling and analysis at loading
end. Member Power Utilities and CIMFR had also finalized the bilateral
MOU between Power Utility and CIMFR for sampling and analysis at
unloading end. These tripartite and bilateral MOUs have been signed.
Commercially binding bilateral and tri-partite agreements between NTPC,
CIL and CSIR-CIMFR have been signed on 12th- 13th July 2016 based on
the above mentioned MoUs to enable CIMFR to start sampling and analysis
in a phased manner.
CIMFR has started sampling at the loading points at NCL (Jayant,
Amlori, Dudhichua and Nigahi) supplying coal to Singrauli, Rihand and
Vindhyachal; SECL (Gevra and Dipika) supplying coal to Korba and Sipat,
MCL (Lingraj and Kaniha) supplying coal to Talcher-Kaniha and WCL (New
Majiri) supplying coal to Mouda with their own resources and facilities
from NTPC and the coal companies. For other cases, CIMFR will be taking
up sampling & analysis activities in phases.
This will help your Company in reducing the cost of generation as CIMFR
can ensure that the grade billed by coal companies is actually supplied
to stations of the Company.
13.2 Gas supplies
During 2015-16, your Company received 5.20 MMSCMD of gas and RLNG as
against 6.41 MMSCMD received during 2014-15. The gas off-take in
2015-16 included 4.92 MMSCMD of domestic gas, 0.06 MMSCMD of long-term/
spot RLNG and 0.22 MMSCMD of e-bid RLNG. Gas off-take was less due to
less availability of generation schedule on RLNG from the beneficiary
Your Company has Administered Price Mechanism (APM) gas agreements up
to the year 2021 and Panna-Mukta-Tapti (PMT) gas agreements up to the
year 2019 with GAIL India Limited. The agreement for non-APM gas with
GAIL is valid till November, 2016 and is likely to be extended further.
Further, Government of India came out with a unique scheme of
Útilisation of Gas Based Generation Capacity wherein RLNG was allocated
in reverse e-bidding with discounts/ tax waivers and with Power System
Development Fund (PSDF) support from GOI. Your Company participated in
Phase-II bidding under the scheme and successfully won and utilised the
allocated e-bid RLNG equivalent to ~90MW in Dadri and Auraiya gas
stations for the period of October 2015 to March 2016.
For additional gas requirement over and above the supplies under
long-term domestic gas/ RLNG agreements, your company has been making
arrangements for tie- up and supply of spot RLNG from domestic
suppliers on ''Reasonable Endeavour'' basis based on requirement and
availability from time and time. There has been no generation loss on
account of lack of availability of gas/ RLNG during the year.
13.3 Development of Coal Mining projects
Your Company had been allocated eight coal blocks, namely,
Pakri-Barwadih, Chatti-Bariatu, Kerandari, Talaipalli, Dulanga, Banai,
Bhalumuda and Mandakini-B by the Government of India. In addition,
Government of India has also allocated Kudanali-Luburi coal block
jointly to your company and J&K State Power Development Company Limited
(J&KSPDCL), with NTPC''s share of coal reserves in this block being two-
third. Joint Venture Agreement had been signed between NTPC and
J&KSPDCL on 15.06.2015 for formation of 67:33 joint venture company for
exploration, development and operation of the coal block.
Similarly, Banhardih coal block, allocated earlier to Jharkhand Urja
Utpadan Nigam Limited, has now been allocated to Patratu Vidyut Utpadan
Nigam Limited, a subsidiary company incorporated between NTPC and
Government of Jharkhand.
With about 7 billion metric tonnes of geological reserves estimated
from our own eight coal blocks, altogether your Company expects to
produce about 107 Million Metric Tonnes of coal per annum.
In Pakri-Barwadih mining operations have commenced from the western
quarry with effect from 17.05.2016. Mining operation is also expected
to start from the eastern quarry of this block shortly, after MOEF&CC
issues the amendment to the environment clearance. For coal
transportation from Pakri-Barwadih, Bandag-Hazaribagh'' Railway siding,
funded by NTPC, is now operational with commencement of coal
transportation from CCL''s Amarpali block to Barh Power Station of
Your Company has progressed well in other coal blocks too. Subsequent
to the issuance of Allotment orders by Ministry of Coal, Government of
India, forest clearance for Dulanga Coal Block has been accorded by
MOEF&CC on 23.12.2015. NITs have been published for appointment of
Mine Developer-cum -Operator (MDO) for Talaipalli, Dulanga and
Chatti-Bariatu coal blocks and techno-commercial bids have been
After completion of detailed exploration in Banai coal block,
Geological Report (GR) has been received from CMPDIL on 13.04.2016 and
is now under approval at Ministry of Coal. For Bhalumuda coal block,
detailed exploration has been completed and draft GR is under
finalization by CMPDIL. For Mandakini-B coal block, Company has awarded
a contract to CMPDIL for carrying out detailed exploration and for
preparation of GR and drilling activities have commenced. Your company
has initiated the process for acquisition of mining area land in these
three new blocks i.e. Banai, Bhalumuda and Mandakini-B.
The joint venture company, namely, CIL NTPC Urja Private Limited,
formed with Coal India Limited, is exploring development and operation
of washery reject-based FBC power plants near upcoming/ existing coal
washery of Coal India Limited.
13.4 Exploration Activities
In Cambay exploration block (CB-ONN-2009/5), held by your Company, as
operator with 100% participating interest drilling of all seven
exploratory wells have been completed and testing of wells is in
In the KG basin exploration block viz. KG-OSN-2009/4 where ONGC is the
operator and NTPC has 10% stake, the exploration activities are in
progress and ONGC has submitted a proposal to the Government of India
for reduction in minimum work programme as the permitted area of the
block for exploration has been reduced because of non-grant of defence
clearance. The other KG basin exploration block viz. KG-OSN-2009/1 and
the Andaman basin exploration block viz. AN- DWN-2009/13, where ONGC
was the operator and NTPC had 10% stake, had been relinquished to
Government of India as per the advice from Operator (ONGC).
14. BUSINESS EXCELLENCE: GLOBAL BENCHMARKING
To achieve higher levels of excellence, your company has developed and
adopted its own ''Business Excellence Model'' on the lines of globally
reputed Excellence Models such as Malcom Baldrige Model, USA and EFQM
Model of Europe.
This model has been deployed at our Business Units (Stations) and your
Company carries out assessment of generating stations using this
framework of excellence. The assessment process is aimed at
identifying the areas for enhancing stakeholders'' engagement,
accelerating critical processes and developing leadership potential.
The outcome of this model is identification of organizational
strengths, opportunities for improvement, issues of concern and best
In the financial year 2015-16, the 6th cycle of assessment was
completed in which 21 generating stations were assessed by a team of
certified and proficient assessors. Business Excellence Awards for Best
Performance to Ramagundam and motivational awards to Sipat and
Talcher-Kaniha stations were presented by the Union Minister of Power,
GOI, in the Indian Power Stations Conference- 2016 held at New Delhi.
Contemporary quality initiatives and techniques like Quality Circles,
Professional Circles, 5S, integrated management system (IMS) etc have
been deployed across the organization for continuous improvement. Our
Quality Circle teams of workmen have been consistently representing
your Company at national and international Quality Circle conventions
and bringing many laurels. In the year 2015-16, Aqua Quality Circle
from Rihand station represented your Company in the International
Convention of Quality Control Circle (ICQCC-2015) held at Changwon,
15. RENOVATION & MODERNISATION
In the present scenario of severe resource constraint Renovation and
Modernization (R&M) of power plants is considered to be a
cost-effective option which can complement new capacity addition as R&M
schemes have a shorter gestation period with all clearances, land,
water, fuel and beneficiaries available. To this end, R&M is being
carried out for the purpose of life extension of units, performance
improvements, availability and reliability improvement and improved
environment compliance. It ensures safe, reliable and economic
electricity production by replacement of worn-out, deteriorated or
obsolete electrical, mechanical, instrumentation, controls and
protection system by state-of- the-art equipment
Keeping in view the ageing of the fleet over the years, investment
approval accorded till date for R&M in 19 stations (Coal & Gas based)
is Rs.11,148.80 crore. As against this, cumulative expenditure till
31.03.2016 is Rs. 6,794.36 crore. Out of this, R&M capital expenditure
in the financial year 2015-16 was Rs. 924.37 crore
With a view to removing technological obsolescence, renovation of
control & instrumentation (C&I) has been taken up in 9 stations at
Singrauli-I (5X200MW) & Singrauli - II (2X500 MW), Korba -I (3X200MW) &
Korba - II (3X500 MW), Ramagundam -I (3X200MW) & Ramagundam - II
(3X500MW), Farakka-II (2X500 MW), Dadri Thermal- I (4X210MW), Unchahar-
I (2X210MW), Talcher STPS-I (2X500MW), Kahalgaon-I (4X210 MW) and
Rihand - (2X500 MW). During 2015-16, C&I R&M was completed in one 500
MW unit of Singrauli, (3X200 MW) and (3X500 MW) units of Korba, two 200
MW units and three 500 MW units of Ramagundam, four units of 210 MW of
Dadri Thermal, two units of 210 MW of FGUTPS, both 500 MW units of
Talcher STPS, 500 MW unit of Farakka, one 210 MW unit of Kahalgaon and
one 500 MW unit of Rihand and one 500 MW unit of Talcher STPS. On
completion of these schemes, C&I systems in these stations have now
been brought nearly on par with the new builds.
Owing to very high operating temperatures, R&M of Gas Turbines
including their Control & Instrumentation is essential after around 15
years of life. By 31.03.2016, this activity was completed in all 4 Gas
Turbines (GT) each in Kawas and in Auraiya and all 3 GTs in Gandhar.
R&M activity for GT, C&I, ST, WHRB in Anta, Auraiya and R&M of GT in
Gandhar, R&M of C&I systems for Dadri gas is in progress. As a
responsible corporate citizen, it has always been your Company''s
endeavour to ensure low levels of pollution from its power stations.
With a view to maintain a clean atmosphere in and around the power
plant, for reducing particulate emission levels from generating
stations, Renovation and Retrofitting of Electrostatic Precipitator
(ESP) packages have been awarded and work is in progress in Singrauli-I
& II (5X200MW 2X500MW), Farakka-I (3X200MW), Unchahar-I (2X210MW),
Korba-I & II (3X200MW 3X500MW), Rihand-I (2X500MW), Vindhyachal-I & II
(6X210MW 2X500MW), Talcher STPS -I & II (2X500MW 4X500MW) and Talcher
TPS-II (2X110MW). During 2015-16, ESP R&M of two units of 210MW and two
units (2X210MW) of Badarpur, one unit each of Talcher (110MW) and
Rihand (500MW) has been completed. Moving Electrode Electrostatic
Precipitator (MEEP) technology is being adopted for the first time in
the country in Rihand Stage-I (Unit#1) and work is in advanced stage.
To derive benefits of the latest advancements in technology, in
cooperation with CEA, EEC/VGB/ Steag Germany, a study has been taken up
on ESP performance improvement using CFD modeling in Unit#6 (500MW) of
Ramagundam. CFD modeling is completed and are planned for
implementation. In yet another initiative, under the aegis of Ministry
of Power, RLA of Unit#3 of 210 MW of Dadri Thermal station was done by
JCOAL and draft report has been submitted by them. This is an
identified activity under the ongoing CEA-JCOAL cooperation as per
India-Japan Energy Dialogue (IJED).
16. 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 year
after year. The over-all Man-MW ratio for the year 2015-16 excluding
JV/subsidiary capacity is 0.55 and 0.51 including capacity of JV/
Subsidiaries. Generation per employee was 11.19 MUs during the year
based on generation of NTPC stations.
The total employee strength of the company (including JV/ subsidiary)
stood at 23,133 as on 31.3.2016 against 24,067 as on 31.3.2015.
FY 2015-16 FY 2014-15
Number of employees 21,633 22,496
Subsidiaries & Joint Ventures
Employees of NTPC in 1,500 1,571
Subsidiaries & Joint Ventures
Total employees 23,133 24,067
The attrition rate of the NTPC executives (including Executive Trainees
and those posted in Subsidiaries and JVs) during the year was 1.05%.
16.2 Employee Relations
Employees are the driving force behind the sustained stellar
performance of your company over all these years of company''s
ascendancy. As a commitment towards your Company''s core values,
Employees'' Participation in Management was made effective based on
mutual respect, trust and a feeling of being a progressive partner in
growth and success. Communication meetings with unions and
associations, workshop on production and productivity, etc were
conducted at projects, regions and corporate level during the year.
Both, employees and management complemented each other''s efforts in
furthering the interest of your company as well as its stakeholders,
signifying and highlighting over-all harmony and cordial employee
relations prevalent in your Company.
16.3 Safety and Security
Occupational Health and safety at workplace is one of the prime
concerns of Company Management and utmost importance is given to
provide safe working environment and to inculcate safety awareness
among the employees. Your company has a 3-tier structure for
Occupational Health and Safety management, namely at Stations/
Projects, at Regional Head Quarters and at Corporate Centre. Safety
issues are discussed in the highest forum of management like Risk
Management Committee (RMC), Management Committee Meeting (MCM), ORTs,
PRTs etc. All of your Company''s stations are certified with
OHSAS-18001/IS-18001. Regular plant inspection and review with Head of
Project/Station is being done. Internal safety audits by safety
officers every year and external safety audits by reputed organizations
as per statutory requirement are carried out for each Project/Station.
Recommendations of auditors are regularly reviewed and complied with.
Height permit and height check list are implemented to ensure safety of
workers while working at height. Adequate numbers of qualified safety
officers are posted at all units as per statutory rules/provisions to
look after safety of men & materials. For strict compliance &
enforcement of safety norms and practices by the contractors, safety
clauses are included in General Conditions of Contract/ Erection
Conditions of Contract
Detailed emergency plans have been developed and responsibilities are
assigned to each concerned to handle the emergency situations. Mock
drills are conducted regularly to check the healthiness of the system.
Most of your Company''s plants have been awarded with prestigious safety
awards conferred by various Institutions/ Body like Ministry of Labour
& Employment-Govt. of India, National Safety Council, Institute of
Directors, Institution of Engineers (India), in recognition of
implementing innovative safety procedures and practices.
Security: Your Company recognizes and accepts its responsibility for
establishing and maintaining a secured working environment for all its
installations, employees and associates. This is being taken care of by
deploying CISF at all units of your Company as per norms of MHA.
Concrete steps are being taken for upgrading surveillance systems at
all projects/ stations by installing state-of-the-art security systems.
16.4 Training and Development
As the power leader of India, your Company has also always endeavoured
to be in the forefront of creation and dissemination of knowledge. Its
sustained performance leadership has, to a large extent been achieved
on the platform of comprehensive training and development programs for
its employees. A large number of professionals from other organizations
in the power sector have also benefitted immensely from the training
and development programs of your Company. Many organisations in the
country adopt practices and systems developed by the Company.
The learning activities are being driven by a comprehensive
infrastructure comprising Power Management Institute (PMI) at the
corporate level and Employee Development Centers (EDCs) at sites
providing learning on management, technical competencies and
leadership. At the foundation of the learning structure are the EDCs at
Projects and Stations. EDCs take care of training requirements of non-
executives and junior level executives at projects and stations. The
training requirements of middle and senior level executives are catered
to by PMI, the apex learning centre of your Company. This learning grid
enables us to provide learning solutions for practically every aspect
of the power value chain, covering the strategic, tactical and
operational facets right down to the shop floor.
Initiatives taken by PMI:
(i) During 2015-16, PMI conducted almost 400 training programmes
covering nearly 7,700 professionals, logging a total of approximately
26,000 training mandays.
(ii) Post Graduate Certificate in Project Management (PGCPM) programme
in collaboration with IIM-Indore for developing long term project
management competency. Under this initiative, executives from public
and private sector utilities/companies from various States have been
given skill based training to augment their capacity addition
(iii) One week exposure at Wharton School in June-July, 2015 under the
programme Strategic Management Initiative for Leadership Effectiveness
(SMILE), after a 3 days intervention in New Delhi for top management
group of 22 General Managers and Executive Directors of NTPC to
revitalize their perspective and re-align their strategic orientation
for sustainable leadership practices.
(iv) Special programs on Enterprise Risk Management for senior level
(v) Total 6 weeks'' duration programme during July- October, 2015 for
ABB at Abu Dhabi on Power Plant Operation and Simulator Training for
Combined Cycle Gas Power Plant.
(vi) Conducted 62 training programs through Web conferencing platform
at workstations during 2015-16.
(vii) Developed 20 e-learning packages for end users of ERP-SAP.
(viii) Conducted several customized training programmes for the benefit
of various State utilities, CPSEs and private sector companies. In all,
1,084 participants from other organizations got trained at PMI during
(ix) Opened NTPC School of Business for running 15 months flagship
program titled Executive Post- Graduate Diploma in Management (EPGDM)
from August 2015.
(x) Implementing skill development initiatives of NTPC for the
country''s youth as a nodal agency. Till now, your Company has adopted
18 ITIs and set up 8 new ITIs near its power stations, thus associating
with total 26 ITIs. These initiatives by your Company resulted in
creation of total 1,831 new seats by starting of new trades/units.
Cumulatively, a total of 26,448 students benefitted from this
initiative till 31.03.2016. For these ITI students, your Company
organised 47,992 mandays of industrial training/plant visits. These
skill development initiatives resulted in your Company being conferred
the ASSOCHAM Award for Vocational Training 2015-16.
(xi) Your Company has partnered with the Ministry of Skill Development
and Entrepreneurship, Government of India, to contribute in realising
the vision of Skill India.
(xii) 10 new programs on Safety have been introduced in PMI''s Training
Calendar for 2016-17.
(xiii) A number of programs for establishing Solar and Wind energy
projects and for protection of Environment have been added.
17. SUSTAINABLE DEVELOPMENT (SD)
Your company has adopted the ''triple bottom-line'' approach, recognising
People, Planet and Profit as the primary pillars of corporate
sustainability and believes that Development should not endanger the
natural systems. Your company is preparing Sustainability Report based
on the Global Reporting Initiative (GRI). Sustainability reporting has
helped us in measuring and monitoring our Company''s performance. It has
served as an important management tool helping us re-look at our
Company''s systems, policies and procedures.
Your company has developed a policy and in accordance with a
Sustainable Development Plan prepared for FY 2015-16. The main focus
area of Sustainable development Plan covers waste management water
management bio- diversity, promotion of renewable energy. Major
activities carried out under this plan included plantation of trees in
and around NTPC, installation of rooftop of Solar PV on public
utilities buildings and on schools, installation of solar powered pump,
rain water harvesting, rehabilitation of water bodies, installation of
air quality monitoring systems in major cities, studies on impact
assessment and carrying capacity river basin. A major activity for
conservation of Olive Ridley Sea Turtles has been taken up. Business
Responsibility Report is attached as Annex-X and forms part of the
A total expenditure of Rs. 33.85 Crore was incurred on these SD
projects during Financial Year 2015-16.
17.1 Inclusive Growth -Initiatives for Social Growth
17.1.1 Corporate Social Responsibility (CSR):
Your Company commits itself to contribute to the society, discharging
its corporate social responsibilities through initiatives that have
positive impact on society at large, especially the community in the
neighborhood of its operations by improving the quality of life of the
people, promoting inclusive growth and environmental sustainability.
Focus areas of CSR & Sustainability activities are Health, Sanitation,
Drinking Water, Education, Capacity Building, Women Empowerment, Social
Infrastructure Development, support to Differently-abled Person and
activities contributing towards Environment Sustainability. During the
year special thrust has been given to the Swachh Vidyalaya Abhiyan
making available about 29,000 toilets in government schools for the
benefit of students, especially girl children, covering 82 Districts in
17 States across the country. Your Company spent Rs. 491.80 Cr during
the financial year 2015-16 towards CSR initiatives. Amount spent i.e.
Rs. 491.80 Cr includes unspent amount of Rs. 78.30 crore for the year
17.1.2 NTPC Foundation
NTPC Foundation is engaged in serving and empowering the
differently-abled and economically weaker sections of the society.
Details of expenditure incurred and initiatives undertaken by the
Company under CSR are covered in the Annual Report on CSR annexed as
Annex-VII to this Report.
17.1.3 Rehabilitation & Resettlement (R&R)
Your Company is committed to help the populace displaced for execution
of its projects and has been making efforts to improve the
socio-economic status of Project Affected Persons (PAPs). In order to
meet its social objectives, your Company is focusing on effective R&R
of PAPs and undertaking community development activities in and around
R&R activities are initiated at projects by undertaking need based
community development activities in the area of health, education,
water, capacity building infrastructure etc by formulating ''Initial
Community Development (ICD) Plan in consultation with concerned
Panchayat, district administration and opinion makers of the locality.
Company addresses R&R issues in line with its R&R Policy with an
objective that after a reasonable transition period, the conditions of
affected families improve or at least they regain their previous
standard of living, earning capacity and production levels. As per the
Policy, a detailed Socio- economic Survey (SES)/other Survey is
conducted by a professional agency to create a baseline data of PAPs.
This follows formulation of a ''Rehabilitation and Resettlement (R&R)
Plan'' after adequate consultation with stakeholders in Village
Development Advisory Committee (VDAC)'', which comprises representatives
of PAPs, Gram Panchayat, your Company and District Administration. R&R
Plan consists of measures for rehabilitation, resettlement and need
based community development activities. R&R plan expenditure is
implemented in a time bound manner so as to complete its implementation
by the time the project is commissioned. A social impact evaluation is
being conducted by a professional agency to know the efficacy of R&R
Plan implementation for future learning and improvements.
17.1.4 R&R achievements during the year:
- ''Initial Community Development (ICD) Plan:
ICD Plan provision for Pudimadaka project enhanced. Implementation of
earlier approved ICD activities continued at Bilhaur project -
Rehabilitation and Resettlement (R&R) Plan:
R&R Plans for Vindhyachal-V and Rammam-III covering R&R obligations and
community development facilities in the area of Health, Education,
Sanitation, Drinking water, Infrastructure facilities finalized in
consultation with stakeholders and approved. R&R Plan provisions for
Lara project enhanced to take care of additional requirement for IIIT,
Raipur and for Darlipalli to take care of additional requirement for
Sundargarh Medical College & Hospital. R&R activities were implemented
at the new Greenfield/Brownfield Thermal projects at Barh, Bongaigaon,
Barethi, Darlipali, Gadarwara, Khargone, Muzaffarpur, Korba, Kudgi,
Lara, Meja, Mouda, North-Karanpura, Solapur, Tanda, Unchahar-IV,
Vallur, Vindhyachal-IV, Hydro projects at Koldam, Lata-Tapovan,
Tapovan-Vishnugad and Coal Mining Projects at Pakri-Barwadih,
Chhatti-Bariatu, Kerendari, Dulanga and Talaipalli wherein R&R
Plans/packages were finalized in consultation and participation of the
stakeholders and approved earlier as well as at Rammam-III and
Vindhyachal-V projects where the R&R Plans have been approved during
Socio-economic Survey (SES)/ Need assessment Survey (NAS)/ Census and
SES for Katwa, Meja railway siding and NAS for Pudimadaka completed.
SES for Talcher-Thermal and C&S for Khargone railway siding is under
Focus on Health:
For the benefits of project affected persons and neighbouring
population ''Mobile Health Clinic'' under R&R provisions at Kudgi,
Nabinagar (NPGCL), Pakri- Barwadih and Nabinagar (BRBCL) projects
started earlier continued during the year.
17.2 Environment Management - Initiatives for preserving Environment
Vision Statement on Environment Management: Going Higher on
Generation, lowering GHG intensity Your Company has always envisaged
environment protection as one of its prime responsibilities and focuses
its efforts to mitigate the impact of its operation on surrounding
environment To meet the environmental challenges of 21st century and
beyond, the Company has adopted sound environment management practices
and advanced environment protection system to minimize impact of power
generation on environment Your Company is undertaking massive
renovation & modernization to upgrade air pollution equipments to
reduce SPM emissions well below current statutory limits. It has
adopted advanced and high efficiency technologies such as super
critical boilers for commissioned and upcoming green field projects.
Around 12-15% of the project cost is spent on various environment
protection equipments such as Electrostatic Precipitators (ESPs),
Liquid Waste Treatment Plants (LWTP), Ash Water Recirculation System
(AWRS), dry ash extraction system, dust extraction, suppression system,
ambient air quality monitoring system, flue gas conditioning system and
desulphurization system etc. Your company is augmenting its capacity
by installing solar power systems and small hydel power systems
attached to its thermal power stations, wherever possible, so as to
encourage garnering of renewable energy resources. The These measures
are aimed not only to achieve reduction in pollution and minimize use
of precious natural resources but also to lead to reduction of CO2
emissions per unit of generation thereby reducing global warming.
17.2.1 Control of Air Emissions:
High efficiency Electro-static Precipitators (ESPs) with efficiency of
the order of 99.97% and above, with advanced control systems have been
provided in all coal based stations to keep Particulate Matter (PM)
below the prevailing permissible limits. All up-coming new plants are
being provided with ESPs designed in such a manner that would cater to
the notified future stringent norms. Performance enhancement of ESPs
operating over the years is being carried out by augmentation of ESPs
fields, retrofitting of advanced ESP controllers and adoption of sound
O&M practices. Flue Gas Conditioning systems have also been provided at
our old units which are helping in reduction of SPM emissions below
statutory limits even during coal quality variations due to blending of
coal etc. NOx control in coal fired plants is achieved by controlling
its production by adopting best combustion practices (primarily through
excess air and combustion temperatures controls). Over and above this,
since tall stacks are provided in coal stations, gases emitted through
stacks is widely dispersed and diluted.
In gas based stations, NOx control systems (hybrid burners or wet
DeNOx) have been provided for good combustion practices.
Fugitive emission from ash pond is controlled by maintaining water
cover, tree plantation on abandoned ash ponds, water spray and earth
cover in inactive lagoons. Providing dust suppression and extraction
system in CHP area has further added to reduction in fugitive dust in
the vicinity of power stations.
17.2.2 Control of water pollution and promotion of water conservation:
Various water conservation measures have been taken up to reduce water
consumption in power generation by using 3Rs (Reduce, Recycle & Reuse)
as guiding principle. Provision of advanced treatment facilities such
as Liquid Waste Treatment Plants (LWTP), Recycling Systems for Ash Pond
Effluent called Ash Water Recirculation System (AWRS) and closed cycle
condenser cooling water systems with higher Cycle of Concentration
(COC), rain water harvesting wherever possible and reuse of treated
sewage effluent for horticulture purposes are some of the measures
implemented in most of the stations. All these measures have resulted
in reduction of effluent discharge from the power plants of your
Company. In view of water stressed scenario, water conservation and
reduction in water consumption per unit of generation has assumed great
importance. NTPC has taken a proactive approach of making all its power
stations to operate with ZLD (Zero liquid discharge) progressively in
phases. Implementation of ZLD at six power plants are at various stages
of implementation during this fiscal year. In addition drain
separation as pre requisite to ZLD has been completed in six stations
viz. Singrauli, Faridabad, Ramagundam, Talcher Super, Gandhar and
Kayamkulam. This concerted effort of NTPC will not only conserve the
water but also will be able the meet the requirements of recently
notified environmental norm of water consumption by MoEF&CC
17.2.3 Automation of environment measurement system:
All the existing power stations are equipped with continuous ambient
air quality monitoring stations (AAQMS) to capture the real time data
of PM 10, PM 2.5, SO , NOx and access thereof viz., and access has been
provided to the Regulators such as Central Pollution Control Board and
State Pollution Control Boards. Additional ozone analyzers for ambient
air are also being provided phase-wise at the existing stations.
Continuous Emission Monitoring Systems (CEMS) to monitor emissions of
SO2 and NOx in all its existing units on real time basis are installed
and commissioned in addition to the opacity meter installed for
monitoring of particulate emission. Installation of real time monitors
for pollutants in effluents (EQMS) is also completed for all its
existing projects. For all the upcoming projects, real time monitors
for ambient air, effluents and emissions are included in the
engineering packages during design stage itself.
17.2.4 Revised Emission Norms
Till 7th December, 2015, the emission norms for coal based thermal
power stations stipulated emission limits for particulate matter only.
For the control of gaseous pollutants in ambient air, a minimum stack
height was stipulated. However, MOEF&CC vide notification dated 7th
December, 2015, has stipulated the emission limits for Oxides of
Nitrogen, Oxides of Sulphur and Mercury also. The emission limits
depend on the unit size and age of the unit and shall be applicable
from 7th December, 2017. This shall require modifications in design of
the power plants as well as additional pollution control systems. Your
Company is designing its new power plants to comply with new norms.
However, in older units, there may be constraints due to Technology
being used, Space available for retrofitting and financial viability of
the retrofits. The matter has been taken up with MOEF&CC and is being
examined on case to case basis with respect to compliance.
17.2.5 Tree Plantation:
Your Company is undertaking tree plantation covering vast areas of land
in and around its projects and till date about 23 million trees have
been planted throughout the country. The afforestation has not only
contributed to the ''aesthetics'' but also helped in carbon sequestration
by serving as a ''sink'' for pollutants released from the stations and
thereby protecting the quality of ecology and environment. Further,
your Company has embarked upon long-term Memorandums with State
authorities to assist National Commitment of INDC in COP 21, by
planning to plant 10 million trees across the country.
17.2.6 ISO 14001 & OHSAS 18001 Certification:
All of your Company''s stations have been certified with ISO 14001 and
OHSAS 18001 by reputed National and International certifying agencies
as a result of sound environment management systems and practices.
17.3 Quality Assurance and Inspection (QA&I)
Your company continues to place great emphasis on quality, with the
view to secure long term reliability and availability of its productive
assets and the investments. This is ensured by committing adequate
number of qualified and trained human resources for quality related
activities, maintaining field laboratories at the construction sites
and pursuing time tested systems & processes, resulting in world class
standards of performance of the plants. In your company, quality needs
are identified & planned, keeping in mind the interests of all the
stake holders, by interacting with major Power Equipment manufacturers
of the world, thereby embracing the latest technologies available. The
quality requirements associated with such technologies are rigorously
pursued during manufacturing, erection & commissioning of various
products/ systems/ services. The dynamic feedback system ensures that
the gaps, if any, are filled through resetting the methods and
standards resulting in continuous improvement Your company''s robust
performance on all parameters, is a testimony to the soundness of the
quality system deployed. Your Company is represented on various
technical committee of ISO and EC and is actively contributing in
formulation and updating of power sector technical and quality
standards/ guidelines, to serve the national as well as international
community at large.
17.4 Clean Development Mechanism (CDM)
Your Company is addressing climate change issues proactively.
Your Company has taken several initiatives in CDM projects in Power
Sector. It has gone ahead with six projects in CDM foray. 8MW Small
Hydro Power Project at Singrauli, 5MW each solar PV projects at Dadri,
Port Blair (Andaman & Nicobar) and Faridabad solar power projects had
already been registered with UNFCCC CDM Executive Board with estimated
annual Certified Emission Reductions (CERs) potential of approx 68,000.
Another two projects i.e. 50 MW Solar PV plant at Rajgarh (MP) and 10
MW Solar PV Project at Unchahar are in advanced stage of registration
with estimated annual CERs potential of approx. 88,000.
17.5 Ash Utilisation
During the year 2015-16, 588.28 lac tonnes of ash was generated and
41.35% viz. 243.23 lac tonnes of ash had been utilized for various
productive purposes. Important areas of ash utilization are - cement &
asbestos industry, ready mix concrete plants (RMC), road embankment,
brick making, mine filling, ash dyke raising & land development Pond
ash from all stations of your Company is being issued free of cost to
all users. Fly ash is also being issued free of cost to fly ash/
clay-fly ash bricks, blocks and tiles manufacturers on priority basis
over the other users from all coal based thermal power stations. The
funds collected from sale of ash is being maintained in the separate
account and this fund is being utilized for development of
infrastructure facilities, promotion and facilitation activities to
enhance ash utilization.
Your Company has an Ash Utilisation Policy, which is a vision document
dealing with the ash utilization issue in an integral way from
generation to end product. This policy aims at maximizing utilization
of ash for productive usage along with fulfilling social and
environmental obligations as a green initiative in protecting the
nature and giving a better environment to future generations. The
quantity of ash produced, ash utilized and percentage of such
utilization during 2015-16 from your Company''s Stations is at
17.6 CenPEEP - towards enhancing efficiency and protecting Environment
Your Company initiated a unique voluntary program of GHG emission
reduction by establishing ''Center for Power Efficiency and
Environmental Protection (CenPEEP)'' and under this program, it is
estimated that cumulative CO2 avoided is 43.6 million ton since 1996,
by sustained efficiency improvements.
CenPEEP is working for efficiency and reliability improvement in
stations through strategic initiatives, development and implementation
of systems and introduction of new techniques & practices.
Critical efficiency parameter aberrations and draft power consumption
are monitored using PI based real time programs and dashboards. These
programs assist operating engineers in tracking the gaps in heat rate
and auxiliary power consumption and trending the degradation of
CenPEEP is also working towards reduction in specific water consumption
and auxiliary power consumption in coal and gas stations. A dedicated
group CEETEM - Centre for Energy Efficient Technology & Energy
Management, conducts regular Energy audits to identify potential
improvement areas and improvement actions. CenPEEP is actively
involved in training and development of power professionals for company
and other utilities in the power sector in the areas of Boiler &
Auxiliaries, Turbine & Auxiliaries, Cooling Towers, RCM and PdM
CenPEEP coordinated implementation of Perform, Achieve & Trade (PAT)
scheme under Prime Minister''s National Mission on Enhanced Energy
Efficiency (NMEEE) in NTPC coal & gas plants. Station specific action
plans were jointly prepared and implemented. Your Company''s coal and
gas stations exceeded the Net Heat Rate improvement targets and earned
around 1,69,000 EScerts (Energy saving certificates) in PAT-1 cycle.
However, formal notification is awaited.
18. NETRA - R&D Mission in Power Sector
The Company as the leading power utility of the country, has allocated
1% of PAT for R&D activities. Company has focused its research efforts
to address the major concerns of the sector as well as the futuristic
technology requirements of the sector. In this effort, your company has
established NTPC Energy Technology Research Alliance (NETRA) as
state-of-the-art centre for research, technology development and
scientific services in the domain of electric power to enable seamless
work flow right from concept to commissioning. The focus areas of NETRA
are - Efficiency Improvement & Cost Reduction; New & Renewable Energy;
Climate Change & Environmental protection which includes water
conservation, Ash utilization & Waste Management Research Advisory
Council (RAC) of NETRA comprising of eminent scientists and experts
from India and abroad is in place to steer research direction.
Scientific Advisory Council (SAC) provides directions for undertaking
specific applied research projects aimed to develop techniques in power
plant for efficient, reliable and environment friendly operation with
emphasis on reducing cost of generation. NETRA also provides Advanced
Scientific Services to all its stations and many other utilities in the
area of oil/water chemistry, environment, electrical, Rotor dynamics
etc. for efficient performances.
NETRA laboratories are accredited as per ISO 17025 and its NDT
laboratory also been recognized as well known Remnant Life Assessment
Organization under the Boiler Board Regulations,1950.
The details of activities undertaken by NETRA are given in Annex-III
which forms part of the Director''s Report
19. IMPLEMENTATION OF OFFICIAL LANGUAGE
Several Steps were taken for the proper propagation and implementation
of Official Language Policy of Government of India in your Company.
Meetings of Official Language Implementation Committee were held on
25th June, 21st September, 28th December, 2015 & 24th March, 2016 in
which the implementation of Hindi in the Organization was reviewed
thoroughly. Various Hindi competitions were organized during Hindi
fortnight from 1st to 14th September, 2015 in the corporate office as
well as in all other establishments of the Company. Corporate Hindi
Magazine Vidyut Swar was conferred, special commendation award by the
TOLIC (Town Official Language Implementation Committee), Delhi. Hindi
workshops were conducted for the various departments of the Company.
Renowned Hindi scholars inspired the participants of Hindi workshops to
use Hindi in their day- to-day official work. Office orders, formats
and circulars were issued in Hindi as well. Important advertisements
and house journals were released in bilingual form in Hindi as well as
in English. Your Company''s website also has a facility of operating in
bilingual form, in Hindi as well as in English.
20.1 Vigilance Mechanism
Your Company ensures transparency, objectivity and quality of decision
making in its operations, and to monitor the same, the Company has a
Vigilance Department headed by Chief Vigilance Officer, a nominee of
Central Vigilance Commission. Vigilance set up comprises of Vigilance
Executives in Corporate Centre and Projects. Corporate Vigilance
consists of four cells namely Investigation & Processing Cell,
Departmental Proceedings Cell, Technical Examination Cell and MIS Cell
deal with various facets of vigilance mechanism. For speedier disposal
of vigilance cases, works have been assigned to Vigilance Executive at
each of the regions of the Company. 376 surprise checks were made
during the period.
20.2 Implementation of Integrity Pact
Your Company is committed to have total transparency to its business
processes and as a step in this direction; it signed a Memorandum of
Understanding with Transparency International India in December, 2008.
The Integrity Pact is being implemented for all contracts having value
exceeding Rs. 10 crore. Presently, your Company is having two
Independent External Monitors to oversee the implementation of
Integrity Pact Programme.
20.3 Implementation of various policies/ circulars
Fraud Prevention Policy and Whistle Blower Policy have been implemented
in your Company to build and strengthen a culture of transparency. Your
Company has also laid down a comprehensive policy for withholding and
banning of business dealings with agencies, wherever the situation so
During 2015-16, 161 complaints were received, out of which 93
complaints were carried to a logical conclusion and the remaining 68
complaints are under various stages of investigation. Appropriate
disciplinary action has also been initiated wherever necessary.
20.4 Vigilance Awareness Week and Workshops
During 2015-16, 51 preventive vigilance workshops were conducted at
various projects/ places in which 1,371 employees participated.
Vigilance awareness week was observed from October 26, 2015 to October
31, 2015 in all NTPC projects and stations/ establishments. The theme
for the Vigilance Week was ''Preventive Vigilance as a Tool of Good
Governance'', during which various competitions amongst the employees
like slogan writing/ essay writings were held. A special booklet titled
''Handbook for Vigilance Executives'' was also published containing
guidelines for vigilance executives for conducting technical
examination of packages, investigations alongwith circular issued by
the Vigilance Commission.
Besides these, as advised by the Vigilance Commission, NTPC also
conducted outreach activities during Vigilance Awareness Week in total
405 Colleges/ Schools/ Institutions all over the country, organizing
elocutions, debates, lectures etc on ethics, integrity and corruption
and its ill effects for students.
21. REDRESSAL OF PUBLIC GRIEVANCES
Your Company is committed for resolution of public grievance in
efficient and time bound manner. Company Secretary has been designated
as Director (Grievance) to facilitate earliest resolution of public
grievances received from President Secretariat, Prime Minister''s
Office, Ministry of Power etc.
In order to facilitate resolution of grievances in transparent and time
bound manner, Department of Administrative Reforms & Public Grievances,
Department of Personnel & Training, Government of India has initiated
web-based monitoring system at www.pgportal.gov.in. As per directions
of GOI, public grievances are to be resolved within two months time. If
it is not possible to resolve the same within two months period, an
interim reply is to be given. Your company is making all efforts to
resolve grievances in above time frame.
22. 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 sites and
offices of the Company.
During 2015-16, 1,456 applications were received under the RTI Act, out
of which 1,384 applications were replied to, till 31.03.2016.
23. USING INFORMATION AND COMMUNICATION TECHNOLOGY FOR PRODUCTIVITY
Your Company has implemented an Enterprise Resource Planning (ERP)
package covering maximum possible processes across the organization
including subsidiaries. In addition to the core business processes and
Employee Self Service (ESS) functionality, the ERP solution also
includes e-procurement, Knowledge Management, Business Intelligence,
Document Management, and Workflow etc. The ERP system is fully managed
through in-house expertise from process groups and technical groups.
Parallely, in- house solutions have been developed to take care of the
A state of the art data centre with centralized server facility for ERP
to cater to the entire Company is in Operation at NOIDA A 100% disaster
recovery centre is also operational at Hyderabad for change over in
case of any emergency. During the year under review, security
operation centre had been commissioned to counter and mitigate security
risks and no severe threats were observed. Project Monitoring Centre
was upgraded to High Definition system. Disaster Recovery mechanism
was 100% available during the year. Vendors Bill Tracking system
launched for pilot site i.e. Dadri. Online Earnest Money Deposit refund
process was implemented.
24. NTPC GROUP: SUBSIDIARIES AND JOINT VENTURES
Your Company has currently 5 subsidiary companies and 22 joint venture
companies for undertaking specific business activities.
A statement containing the salient feature of the financial statement
of your Company''s Subsidiaries, Associate Companies and Joint Ventures
as per first proviso of section 129(3) of the Companies Act, 2013 is
included in the consolidated financial statements. It does not contain
information about Hindustan Urvarak & Rasayan Limited, which was
incorporated on 15.06.2016. The financial statements of subsidiary
companies along with the respective Directors'' Report are placed
elsewhere in this Annual Report.
25. INFORMATION PURSUANT TO STATUTORY AND OTHER REQUIREMENTS
Information required to be furnished as per the Companies Act, 2013 and
Listing Agreement with Stock Exchanges are as under:
25.1 Statutory Auditors
The Statutory Auditors of your Company are appointed by the Comptroller
& Auditor General of India. Joint Statutory Auditors for the financial
year 2015-16 were (i) M/s T R Chadha & Co., LLP, New Delhi (ii) M/s PSD
Associates, Chartered Accountants, New Delhi, (iii) M/s Sagar &
Associates, Chartered Accountants, Hyderabad, (iv) M/s Kalani & Co.,
Chartered Accountants, Jaipur, (v) M/s P. A & Associates, Chartered
Accountants, Bhubaneshwar, (vi) M/s S. K. Kapoor & Co., Chartered
Accountants, Kanpur and (vii) M/s B. M. Chatrath & Co., Chartered
Accountants, Kolkata. The appointment of Statutory Auditors for the
financial year 2016-17 has been made by the Comptroller & Auditor
General of India.
25.2 Management comments on Statutory Auditors'' Report
The Statutory Auditors of the Company have given an un- qualified
report on the accounts of the Company for the financial year 2015-16.
However, they have drawn attention under ''Emphasis of Matter'' to Note
No. 12 (i) & 35 (a) in respect of change in accounting of capital
expenditure on assets not owned by the Company with retrospective
effect taking guidance available in AS 10 notified by MCA on 30th March
2016 effective from the financial year 2016-17; Note No. 22 (a) & (b)
regarding billing & recognition of sales on provisional basis and
measurement of GCV of coal on ''as received'' basis after secondary
crusher pending disposal of the matter by CERC/Hon''ble Delhi High Court
and related matters as mentioned in said note; and Note No. 33 in
respect of a Company''s ongoing project where the order of NGT has been
stayed by the Hon''ble Supreme Court of India and the matter is
sub-judice. The issues have been adequately explained in the
respective Notes referred to by the Auditors.
25.3 Review of accounts by Comptroller & Auditor General of India
As advised by the Office of the C&AG, the comments of C&AG for the year
2015-16 alongwith management replies thereto are placed with the report
of Statutory Auditors of your Company elsewhere in this Annual Report.
25.4 COST AUDIT
As prescribed under the Companies (Cost Records and Audit) Rules, 2014,
the Cost Accounting records are being maintained by all stations of
your Company. The firms of Cost Accountants appointed under Section
148(3) of the Companies Act, 2013 for the financial year 2015-16 were
(i) M/s Bandopadhyay Bhaumik & Co., Kolkata, (ii) M/s S. Dhal & Co.,
Bhubhaneshwar (iii) M/s Musib & Co., Mumbai, (iv) M/s Sanjay Gupta &
Associates, New Delhi, (v) M/s Narasimha Murthy & Co., Hyderabad, and
(vi) M/s RJ. Goel & Co., Delhi. The due date for filing consolidated
Cost Audit Report in XBRL format for the financial year ended March 31,
2015 was September 30, 2015 and the consolidated Cost Audit Report for
your Company was filed with the Central Government on September 22,
2015. The Cost Audit Report for the financial year ended March 31,
2016 shall be filed within the prescribed time period under the
Companies (Cost Records & Audit) Rules, 2014.
25.5 Exchange Risk Management
Company is exposed to foreign exchange risk in respect of contracts
denominated in foreign currency for purchase of plant and machinery,
spares and fuel for its projects/ stations and foreign currency loans.
In term of its Exchange Risk Management Policy, during financial year
2015-16, the Company has entered into derivative contracts amounting to
USD 62 million equivalent in different currencies in respect of foreign
currency loans exposure.
25.6 Performance Evaluation of the Directors and the Board
As required under the Companies Act, 2013 and the Securities and
Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015, evaluation of performance of directors
including that of the Independent Directors and of the Board is to be
carried out either by the Board or by the Nomination and Remuneration
Committee or by the Independent Directors. It also requires disclosure
of formulated criteria for performance evaluation in Annual Report. In
this regard, the Ministry of Corporate Affairs, through Notification
dated 05.06.2015, has exempted the Government Companies from these
provisions. The appointment of the Functional Directors, Government
Nominee Directors and Independent Directors of your Company is made by
the Government of India. Their terms & conditions of appointment as
well as tenure of all directors are also decided by GOI and there is a
well laid down procedure for evaluation of Functional Directors & CMD
as well as of Government Directors by Administrative/ respective
Ministry. Also, the performance of the Board of the Government
Companies is evaluated during the performance evaluation of the MOU
signed with the Government of India.
Your Company has made representation to SEBI for exempting Government
Companies from evaluation of Directors and the Board. The matter is
under consideration by the SEBI.
25.7 Secretarial Audit
The Board has appointed M/s Agarwal S. & Associates, Company
Secretaries, to conduct Secretarial Audit for the financial year
2015-16. The Secretarial Audit Report for the financial year ended
March 31, 2016 is annexed herewith marked as Annexure XI to this
Report. The Managements'' Comments on Secretarial Audit Report are as
Observations Management''s Comments
Regulation 17(1) As per the Listing Agreements
of Securities and executed with the Stock Exchanges
Exchange Board pursuant to SEBI LODR Regulations,
of India (Listing 2015 and DPE Guidelines on
Obligation Corporate Governance by CPSEs,
& Disclosure the Company should have eight
Requirements) Independent Directors since
Regulations, Company has six functional
2015 (erstwhile Directors including the Chairman
Clause 49 (II) (A) & Managing Director and two
& (B) of the Listing Government Nominee Directors
Agreement) and on its Board. At present, Company
Clause 3.1.2 has three Independent Directors in
and 3.1.4 of position.
DPE Guidelines Being a Government Company the
on Corporate power to appoint the Directors on
Governance the Board of the Company vests
for Central with the President of India and
Public Sector accordingly, the Company is, from
Enterprises w.r.t. time to time, requesting Ministry
composition of of Power to appoint requisite
the Board of the number of Independent Directors
Company. on its Board.
25.8 Particulars of contracts or arrangements with related parties
During the period under review, your Company had not entered into any
material transaction with any of its related parties. The Company''s
major related party transactions are generally with its subsidiaries
and associates. All related party transactions were in the ordinary
course of business and were negotiated on an arm''s length basis except
with Utility Powertech Limited, which are covered under the disclosure
of Related Party Transactions in Form AOC-2 (Annex- IX) as required
under Section 134(3)(h) of the Companies Act, 2013. They were intended
to further enhance the Company''s interests. Web-link for Policy on
Materiality of Related Party Transactions & also on Dealing with
Related Party Transactions has been provided in the Report on Corporate
Governance, which forms part of the Annual Report.
25.9 Significant and material orders passed by the regulators or courts
or tribunals impacting the going concern status and company''s
operations in future: NIL
25.10 Adequacy of internal financial controls with reference to the
The Company has in place adequate internal financial controls with
reference to financial reporting. During the year, such controls were
tested and no reportable material weakness in the design or operation
25.11 Loans and Investments
Details of Investments covered under the provisions of Section 186 of
the Companies Act, 2013 forms part of financial statement attached as a
separate section in the Annual Report FY 2015-16.
Your Company had not granted any loans to parties during 2015-16
covered under Section 186 of the Companies Act, 2013.
25.12 Sexual Harassment of Women at Workplace
The Company has in place a Policy on Prevention, Prohibition and
Redressal of Sexual Harassment of Women at Workplace in line with the
requirements of the Sexual Harassment of Women at the Workplace
(Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints
Committee (ICC) has been set up to redress complaints received
regarding sexual harassment All employees (permanent contractual,
temporary, trainees) are covered under this policy.
These ICCs have been constituted at all Projects/ stations also. Every
three years, the constitution of these committees is changed and new
members are nominated. No complaint of sexual harassment was received
by the ICC during the year 2015-16.
NTPC PMI has been conducting gender sensitization workshops for
building a collaborative work culture across the organisation, in
association with the National Commission for Women. In these workshops,
employees, both male and female, are sensitized and made aware about
issues and laws pertaining to sexual harassment as well as appropriate
behavior at the workplace. During 2015-16, PMI has conducted 12 such
workshops across the organization covering 250 employees.
25.13 Procurement from MSEs
The Government of India has notified a Public Procurement Policy for
Micro and Small Enterprises (MSEs), Order 2012. The total procurement
made from MSEs (including MSEs owned by SC/ST entrepreneurs) during the
year 2015-16 was Rs. 559.51 crore, which was 12.53% of total annual
procurement by your Company. Your Company orgainsed 12 vendor
development programmes for MSMEs. Annual procurement plan for purchases
from MSEs is uploaded on www.ntpc.co.in.
25.14 Particulars of Employees
As per provisions of Section 197(12) of the Companies Act, 2013 read
with the Rule 5 of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, every listed company is required to
disclose the ratio of the remuneration of each director to the median
employee''s remuneration and details of employees receiving remuneration
exceeding limits as prescribed from time to time in the Directors''
However, as per notification dated 5th June, 2015 issued by the
Ministry of Corporate Affairs, Government Companies are exempted from
complying with provisions of Section 197 of the Companies Act, 2013.
Therefore, such particulars have not been included as part of
25.15 Extract of Annual Return:
Extract of Annual Return of the Company is annexed herewith as Annexure
VI to this Report.
25.16 Information on Number of Meetings of the Board held during the
year, composition of committees of the Board and their meetings held
during the year, establishment of vigil mechanism/ whistle blower
policy and web-links for familiarization/ training policy of directors,
Policy on Materiality of Related Party Transactions and also on Dealing
with Related Party Transactions and Policy for determining ''Material''
Subsidiaries have been provided in the Report on Corporate Governance,
which forms part of the Annual Report
25.17 Para on development of risk management policy including therein
the elements of risks are given elsewhere in the Annual Report.
25.18 No disclosure or reporting is required in respect of the
following items as there were no transactions on these items during the
year under review:
1. Issue of equity shares with differential rights as to dividend,
voting or otherwise.
2. Issue of shares (including sweat equity shares) to employees of the
Company under any scheme.
The particulars of annexures forming part of this report are as under:
Management Discussion & Analysis I
Report on Corporate Governance II
Information on conservation of III
energy, technology absorption and
foreign exchange earnings and outgo
Statistical information on persons IV
belonging to Scheduled Caste /
Scheduled Tribe categories
Information on Differently abled V
Extract of Annual Return VI
Annual Report on CSR Activities VII
Project Wise Ash Utilisation VIII
Disclosure of Related Party IX
Transactions in Form AOC-2
Business Responsibility Report for the X
Secretarial Audit Report in Form MR-3 XI
26. BOARD OF DIRECTORS
Shri I.J. Kapoor resigned from the post of Director (Commercial) on
20.08.2015 on being appointed as Technical Member of the Appellate
Tribunal for Electricity.
Consequent upon completion of three years'' tenure, Dr. A. Didar Singh
had ceased to be the Independent Director w.e.f. August 22, 2015. Shri
Rajesh Jain and Dr (Mrs.) Gauri Trivedi had been appointed as
Independent Directors w.e.f. 18.11.2015 for a period of three years.
Shri Anil Kumar Singh ceased to be the Government Nominee Director
w.e.f. 08.12.2015 consequent his transfer from Ministry of Power. Shri
Aniruddha Kumar, JS (Thermal), Ministry of Power has joined as
Government Nominee Director of the Company with effect from 25.02.2016.
Shri Seethapathy Chander has been appointed as the Independent Director
on the Board w.e.f. 22.06.2016.
On completion of five years'' tenure, Dr. Arup Roy Choudhury ceased to
be the Chairman & Managing Director of the Company w.e.f. 31.08.2015
(A/N). In the absence of regular Chairman & Managing Director, the
Ministry of Power, through order dated 28.08.2015, entrusted the
additional charge of the post of Chairman & Managing Director, to Shri
A.K. Jha, Director (Technical). He held the additional charge from
01.09.2015 to 03.02.2016, after which Shri Gurdeep Singh joined as the
Chairman & Managing Director of the Company on 04.02.2016. On
Completion of three years'' tenure, Shri Prashant Mehta has ceased to be
the Independent Director of the company w.e.f. 29.07.2016 (A/N). The
Board wishes to place on record its deep appreciation for the valuable
services rendered by Shri I.J. Kapoor, Dr. A. Didar Singh, Dr. Arup Roy
Choudhury, Shri Anil Kumar Singh and Shri Prashant Mehta during their
association with the Company. In accordance with Section 152 of the
Companies Act, 2013 and the provisions of the Articles of Association
of the Company- Shri S.C. Pandey and Shri K. Biswal shall retire by
rotation at the Annual General Meeting of your Company and, being
eligible, offers themselves for re-appointment.
27. DIRECTORS'' RESPONSIBILITY STATEMENT
As required under Section 134 (5) of the Companies Act, 2013, your
Directors confirm that:
1. in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures;
2. the Directors had selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the company at the end of the financial year 2015-16 and of the
profit of the company for that period;
3. the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 2013 for safeguarding the assets of
the company and for preventing and detecting fraud and other
4. the Directors had prepared the Annual Accounts on a going concern
5. the Directors, had laid down internal financial controls to be
followed by the company and that such internal financial controls are
adequate and were operating effectively; and
6. the Directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.
The Directors of your Company acknowledge with deep sense of
appreciation, the co-operation received from the Government of India,
particularly the Prime Minister''s Office, Ministry of Power, Ministry
of New & Renewable Energy, Ministry of Finance, Ministry of
Environment, Forests & Climate Change, Ministry of Coal, Ministry of
Petroleum & Natural Gas, Ministry of Railways, Department of Public
Enterprises, Central Electricity Authority, Central Electricity
Regulatory Commission, Comptroller & Auditor General of India,
Appellate Tribunal for Electricity, State Governments, Regional Power
Committees, State Utilities and Office of the Attorney General of
The Directors of your Company also convey their gratitude to the
shareholders, various international and Indian Banks and Financial
Institutions for the confidence reposed by them in the Company. The
Board also appreciates the contribution of contractors, vendors and
consultants in the implementation of various projects of the Company.
We also acknowledge the constructive suggestions received from the
Office of Comptroller & Auditor General of India and Statutory
Auditors. We wish to place on record our appreciation for the untiring
efforts and contributions made by the employees at all levels to ensure
that the company continues to grow and excel.
For and on behalf of the Board of Directors
Chairman & Managing Director
Place: New Delhi DIN : 00307037
Date: 3rd August , 2016