NTPC
BSE: 532555|NSE: NTPC|ISIN: INE733E01010|SECTOR: Power - Generation/Distribution
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| Download Annual Report PDF Format 2012 | 2011 | 2010 |
The Directors are pleased to present the 36th Annual Report and MW
during 2010-11. With this addition, the Company surpassed the audited
financial statements for the year ended March 31, the 11th plan target
of 9,220 MW by achieving a total capacity 2012. addition of 9,610 MW.
Your Company has added capacity of 2,820 MW during the year After
commissioning of 2,160 MW capacity since April 2012, 2011-12 surpassing
its earlier best capacity addition of 2,490 NTPC has now become a
39,174 MW Company.
1. FINANCIAL RESULTS
Revenue 2011-12 2010-11
Rs. Crore US $ Mn* Rs. Crore US $ Mn*
Net Revenue from
Operations (including
Energy Sales, 62,052.23 12,018.64 55,062.65 10,664.86
Consultancy, Energy
consumed internally)
Other Income 2,778.42 538.14 2,344.65 454.12
Total Revenue 64,830.65 12,556.78 57,407.30 11,118.98
Expenses
Fuel 41,635.46 8,064.20 35,373.78 6,851.40
Employee Benefits
Expense 3,090.48 598.58 2,789.71 540.33
Finance Costs 1,711.64 331.52 1,420.96 275.22
Depreciation and
amortization
expense 2,791.70 540.71 2,48569 481.44
Generation,
administration &
other expenses 3,588.79 695.10 4,926.28 954.15
Prior Period
items (net) (313.58) (60.74) (1,638.72) (317.40)
Total Expenses 52,504.49 10,169.37 45,357.70 8,785.14
Profit before Tax 12,326.16 2,387.41 12,049.60 2,333.84
Tax Expense 3,102.43 600.90 2,947.01 570.79
Profit for the year 9,223.73 1,786.51 9,102.59 1,763.05
Appropriations:
Transfer to bond
redemption reserve 482.38 93.43 494.94 95.86
Transfer to general
reserve 5,200.00 1,007.17 5,200.00 1,007.17
Transfer to
capital reserve 0.44 0.09 6.87 1.33
Interim dividend 2,885.92 558.96 2,473.63 479.11
Proposed dividend 412.27 79.85 659.63 127.76
Tax on dividend 527.92 102.25 514.77 99.70
*1US $= Rs. 51.63 as on March 31, 2012
2. FINANCIAL PERFORMANCE
2.1 Revenue
The total revenue of your Company for the year increased by 12.93% to Rs.
64,830.65 crore from Rs. 57,407.30 crore during the previous year.
2.2 Profit Before and After Tax
The profit before tax was Rs. 12,326.16 crore for the financial year
2011-12 as against Rs. 12,049.60 crore last year. The profit after tax
increased by 1.33% to Rs. 9,223.73 crore from Rs. 9,102.59 crore.
3. DIVIDEND
3.1 Interim and Final Dividend
In addition to interim dividend of Rs. 3.50 per equity share paid in
February 2012, your Directors have recommended a final dividend of Rs.
0.50 per equity share for the year 2011-12. The total dividend for the
year is Rs. 4.00 per equity share of Rs. 10/- each against Rs. 3.80 per
share paid during last year. The total dividend payout is 35.76% and the
total dividend payout including dividend tax is 41.48% of profit after
tax. The final dividend shall be paid after your approval at the
Annual General Meeting. The dividend has been recommended in accordance
with your Companys policy of balancing dividend pay-out with the
requirement of deployment of internal accruals for its growth plans.
Your Directors believe that growth of the Company through capacity
addition, backward and forward integration and strategic diversifi
cation of its operations would lead to increase in shareholders value.
4. OPERATIONAL PERFORMANCE
4.1 Generation
During the year, the power stations of your Company generated 222.07
BUs of electricity which was 25.48% of the total power generated in
India (without Bhutan import). The total power generated by the
Company including its JVs and subsidiary was 240.31 BUs which was
27.57% of the total power generated in India (without Bhutan import).
The power generated by the Company has registered an increase of 0.69%
over the previous years generation of 220.54 BUs. The total generation
contributed by coal stations is 199.054 BUs during the year against
generation of 195.282 BUs last year registering a growth of 1.93%.
Generation could have been still higher but due to less grid demand,
there was generation loss of 5.93 BUs. The coal based stations of your
Company operated at average Plant Load Factor (PLF) of 85.00% (All
India PLF 73.32%) and average Availability Factor of 89.73% on bar
during the year. During the year, 6 coal based stations out of 15
achieved more than 90% PLF.
The gas stations having a capacity of 3,955 MW achieved annual
generation of 23.014 BUs at a PLF of 65.22% as against 25.255 BUs last
year mainly due to less grid demand which accounted for a generation
loss of 10.176 BUs. The average declared capacity of gas based stations
of the year was 93.81% as compared to 92.60% during previous year.
Management Discussion and Analysis Report
Management Discussion and Analysis Report for the year under review, as
stipulated under Clause 49 of the Listing Agreement with the Stock
Exchanges in India, is presented in Annex-I to this Report. 5.
COMMERCIAL PERFORMANCE
Your Company has realized 100% payment of current bills raised for sale
of power for the ninth consecutive year.
5.1 Rebate Scheme/ One Time Settlement Scheme for realization of dues
In order to achieve early realization of dues, provision of rebate,
even for customers making payment after 30 days and upto 55th day, has
been introduced in the Rebate Scheme for 2012-13. All the benefi
ciaries have established Letters of Credit (LC) and are maintaining it.
As on 31.05.2012, your Company has monthly LCs of Rs. 4,888.74 crore.
RBI, on behalf of State Governments, redeemed the bonds and serviced
half-yearly interest installments on bonds in time as per One Time
Settlement Scheme. The matter of securitization of outstanding dues
amounting to Rs. 1,310.83 crore pertaining to DESU period payable by
Government of NCT of Delhi is under active consideration by the
Ministry of Power.
5.2 Power Purchase Agreements for renewable energy Your Company had
signed Power Purchase Agreements (PPAs) for Solar PV projects at
Andaman & Nicobar Islands, Dadri, Faridabad, Raigarh, Ramagundam,
Unchahar & Talcher and for Solar Thermal Project at Anta. The
cumulative renewable energy capacity for which PPAs have been signed is
118 MW, consisting of 110 MW of solar capacity and 8 MW of small hydro
capacity at Singrauli. PPA has been signed with West Bengal for sale of
75 MW allocated to the Company from Farakka-III.
5.3 Commercial Capacity
The following units were declared commercial during the year 2011-12,
adding 1,160 MW to commercial capacity of your Company:
Project/ Unit Capacity (MW) COD*
Sipat-I, Unit#1 660 01.10.2011
Simhadri-II, Unit#1 500 16.09.2011
Total 1,160
* COD- Commercial Operation Date
Further, after the financial year 2011-12, Unit#6 of 500 MW of
Farakka, Unit#2 of 660 MW of Sipat, Unit#2 of 500 MW of Jhajjar (JV
i.e. Aravali Power Company Private Limited) have been declared
commercial.
5.4 Determination of Tariff
Your Company had filed tariff petitions for the five-year period
starting 1.4.2009 before CERC for all the stations in accordance with
the CERC (Terms and Conditions of Tariff) Regulations, 2009. The final
tariff orders have been received for 19 stations till 30.06.2012.
5.5 Strengthening Customer Relationship
Customer Relationship Management (CRM) initiative has been taken by
your Company towards strengthening relationship with our customers.
Under this, regular structured interaction with customers takes place
on an ongoing basis for sharing of feedbacks /experiences
/expectations. These meetings provide a platform for better interaction
and sharing of experiences for mutual benefits. Based on the feedback
received from the customers, the Company provides various support
services to them, identifi es potential areas of cooperation and shares
each others best practices. Besides, your Company also organized
Regional Customer Meets, State specific Business Partner Meets and
GENCOs Meets for better interaction and sharing of experience.
Starting from 2008-09, NTPC has rolled out a Customer Satisfaction
Index (CSI) for gathering customers feedback and responding to their
requirements. This initiative serves as a useful tool for further
strengthening Customer Relationship and better appreciation of our
business imperatives.
5.6 Supply of Electricity in 5 Kms area around plant
Under the scheme of Government of India for provision of supply of
electricity in 5 Kms area around Central Power Plants, your Company is
implementing the electrification work around 29 projects. Award for
implementation of the scheme has been placed at 8 stations.
6. INSTALLED CAPACITY
During the year 2011-12, your Company added 2,820 MW detailed as under:
Project/ Unit installed during Capacity
FY 2011-12 (MW)
NTPC owned
Sipat-I 1,320
Simhadri-II 500
Under JVs
Jhajjar (JV with HPGCL & IPGCL) 500
Vallur (JV with TANGEDCO) 500
Addition during FY 11-12 2,820
Project/ Unit installed in the first Capacity
quarter of FY 2012-13 (MW)
NTPC owned
Sipat -I, Unit#3 660
Vindhyachal, Unit#11 500
Rihand, Unit#5 500
Mouda, Unit#1 500
Addition after FY 11-12 2,160
The capacity added by NTPC Group has registered a growth
of 13.25% over the preceding year.
6.1 Installed Capacity of NTPC Group
The total installed capacity of the NTPC Group has increased
to 37,014 MW as on 31.03.2012 as tabulated below:
Owned by NTPC MW
Coal based projects 28,695
Gas based projects 3,955
Sub-total 32,650
Joint Ventures & Subsidiaries
Coal based projects 2,424
Gas based projects 1,940
Sub-total 4,364
Total 37,014
Now, with the commissioning of 2,160 MW after the
financial year 2011-12, the installed capacity of NTPCs
Group has become 39,174 MW.
7. CAPACITY ADDITION PROGRAM
Your Company has adopted a multi-pronged growth strategy which includes
capacity addition through green field projects, brown field
expansions, joint ventures and acquisitions towards its journey to
become the worlds largest power producer. In addition to furthering
capacity addition through Coal / Gas based thermal power projects, your
Company has been pursuing enhancement of its power generation portfolio
through Hydro, Renewable Energy and Nuclear energy projects.
7.1 Projects under Implementation
Your Companys various projects having aggregate capacity of 14,818 MW
including 2,890 MW, being undertaken by Joint Venture Companies were
under construction as on 31.03.2012 excluding 2,160 MW commissioned
during first quarter of financial year 2012-13, as detailed below:
List of Ongoing Projects as on 31.03.2012 excluding 2,160 MW
commissioned during first quarter of FY 2012-13
Name of the Project Capacity
(MW)
I. Projects under NTPC Ltd
A. Coal Based Projects
1. Barh-I 1,980
2. Bongaigaon-I 750
3. Mouda-I 500
4. Barh-II 1,320
5. Rihand-III 500
6. Vindhyachal-IV 500
7. Kudgi 2,400
8. Solapur 1,320
9. Mouda-II 1,320
Sub Total (A) 10,590
Name of the Project Capacity
(MW)
B. Hydro Electric Power Projects (HEPP)
10. Koldam 800
11. Tapovan Vishnugad 520
Sub Total(B) 1,320
C. Renewable Projects
12. Singrauli CW HEPP 8
13. Dadri Solar PV 5
14. Andaman Solar PV 5
Sub Total (C) 18
Total I (A)+(B)+(C) 11,928
II Projects under JVs
Coal Based Projects
15. Jhajjar- JV with HPGCL & IPGCL 500
16. Vallur - JV with TNEB 1,000
17. Nabinagar- JV with Railways 1,000
18. Muzaffarpur Expansion (MTPS)- 390
JV with BSEB
Total II 2,890
III Total On-Going Projects as on 14,818
31.03.2012 (I)+(II)
List of Projects added in first quarter of
FY 2012-13
IV. Project under NTPC Ltd. (Coal Based)
19. Vindhyachal-V| 500
V Project under JVs
20. Meja (JV with UPRVUNL) 1,320
VI Total Ongoing Projects added within 1,820
first quarter after FY 2011-12
VII Total Projects under Construction by 12,428
NTPC till first Quarter after FY 2011-12
(I+IV)
VIII Total Projects under Construction by 4,210
JVs till first Quarter after FY 2011-12
(II+V)
IX Total Projects under Construction by 16,638
NTPC Group till first Quarter after FY
2011-12 (VII+VIII)
Now, with the placement of main plant package award for Vindhyachal-V
(500 MW) and for Meja (1,320 MW) projects, NTPC Groups aggregate
capacity under construction has become 16,638 MW (including 4,210 MW by
JVs).
7.2 New Projects
Your Company has a capacity addition program for 14,038 MW capacity
under 12th Plan Period (2012-2017) which includes 2,890 MW capacity
through Joint Ventures and Subsidiaries. Proposals for 12,941 MW
capacity addition are under various stages of bidding. Feasibility
Reports have been approved for additional capacity of 12,111 MW
(including 2,100 MW through JV and Subsidiaries). Your Company has
also taken up studies/ preparation of
Feasibility Reports of about 13,000 MW capacity and is pursuing
statutory clearances for various other projects to be taken up in
future.
7.3 New Technology
To meet the future challenges of meeting Indias electricity needs at
affordable cost with minimum environmental impact, your Company has
drawn a long term Technology Roadmap up to year 2032 which involves
development, adoption and promotion of safe, Efficient and clean
technologies for entire value chain of power generation business.
Your Company has adopted several new technologies including combined
cycle gas-fired power stations, Merry-go-round, Distributed Digital
Control & Management Information System, High Voltage Direct Current
transmission, Sliding Pressure Operation of SG, Dry Ash Extraction and
Disposal, 765 KV Switchyard, Ash Water Recirculation System, Liquid
Waste Management System, Performance Analysis and Diagnostic
Optimization, Tunnel Boring Machines and Super Critical Technologies.
In order to improve efficiency further your Company has adopted higher
steam parameters for Barh Expansion project and all of its 660 MW and
800 MW projects resulting in 5% gain in efficiency over the effi
ciency of conventional sub-critical 500 MW unit considering similar
coal. For the sub-critical 500 MW units also, reheat temperature has
been increased to 565 deg C for all the new units resulting in about
0.7% gain in efficiency.
Your Company has taken initiatives for development of advance ultra
super critical technology for which it has entered into MOU with BHEL
and IGCAR. It will enhance thermal efficiency to around 45% and result
in about 15- 17% less CO2 emission as compared to conventional sub-
critical thermal power plants. Detailed project report is being
prepared for hybrid solar thermal plant of about 3.6 MW by integration
of solar heat with 210 MW coal based unit at Dadri. Solar heat is being
integrated along with feed heaters in the turbine cycle for conversion
of solar heat to electrical power with the help of existing steam cycle
of 210 MW. Once integrated, this will reduce coal consumption thereby
reducing CO2 emissions.
7.4 Project Management – A New Approach
Your Company believes that in order to achieve its ambitious capacity
addition targets, it has to build on its capabilities and leverage its
expertise in power project execution. Accordingly, it has revised its
delegation of powers and has empowered its regions and projects to
enable faster decision making. Your Company has already established a
state-of-the-art IT enabled Project Monitoring Centre (PMC) for
facilitating fast track project implementation. PMC is extensively
utilized for tracking and resolving project issues and helps in
providing effective coordination between the agencies. It ensures
better and fast monitoring of the projects.
7.5 Capacity addition through Subsidiaries and Joint Ventures (JVs)
Besides adding capacities on its own, your Company plans to add
capacities through some of its subsidiaries and joint ventures. The
detail of JV Companies/Subsidiaries along with details of Joint Venture
partners for capacity addition are as under:
7.6 Hydro Power
At present 1,320 MW Hydro capacity is under implementation apart from
291 MW under bidding.
7.6.1 Your Company is setting up the following hydro projects for
increasing its footprints in renewable energy development:
Project Location Capacity
Koldam HEPP Himachal Pradesh 800 MW
Tapovan-Vishungad HEPP Uttarakhand 520 MW
Lata Tapovan HEPP* Uttarakhand 171 MW
Rammam-III HEPP* West Bengal 120 MW
*Lata Tapovan HEPP and Rammam-III are being developed as Regional
projects, which were earlier to be implemented by NTPC Hydro Limited, a
wholly-owned subsidiary of NTPC. NTPC Hydro Limited is now being merged
with NTPC Limited.
Your Company is also considering Rupsiabagar-Khasiabara HEPP (261 MW)
located at Uttarakhand for which the Company has submitted to Ministry
of Environment and Forests for reconsideration of case of rejection of
forest clearance.
Loharinag Pala HEPP had been discontinued on the advice of Ministry of
Power. Ministry of Power has constituted Empowered Committee to
facilitate settlement of claims, project-site safety measures and for
transfer of project to Government of Uttarakhand.
7.6.2 Hydro Engineering
7.6.2.1 In pursuance of Memorandum of Agreement signed with Govt. of
Mizoram, Detailed Project Report of Kolodyne HEPP (4X115MW) prepared by
Central Water Commission for Govt. of Mizoram and updated by NTPC was
submitted to CEA for according Techno-Economic Clearance (TEC). CEA
has considered the proposal and accorded Techno- Economic Clearance on
14.09.2011. The environment clearance for the project is being pursued
with the Government of Mizoram.
7.6.2.2 Your Company carried out the assignment of preparation of
Detailed Project Report (DPR) for Amochu Reservoir Hydro-electric
Project (4X135 MW) in Bhutan and the DPR has been submitted to CEA and
Royal Government of Bhutan in October 2011. Additional geological
investigations based on CEA comments are being carried out.
7.7 Capacity Addition through other Renewable energy Sources - Solar
and Wind
Your Company is having ambitious plan for capacity addition of 1,000 MW
through renewable energy sources, out of which for 300 MW road map has
already been prepared for implementation by 2017. Your Company is
implementing 5 MW Solar PV based project in Uttar Pradesh (Dadri), 5 MW
Solar PV based Project in Andaman & Nicobar (Port Blair) and 8 MW HEPP
at Uttar Pradesh (Singrauli). In addition, 15 MW Solar Thermal based
power in Rajasthan (Anta), 5 MW Solar PV based project in Haryana
(Faridabad), 10 MW each Solar PV based Projects in Uttar Pradesh
(Unchahar) and Odisha (Talcher), 50 MW Solar PV based project in Andhra
Pradesh (Ramagundam), 50 MW Solar PV based project in Madhya
Pradesh (Rajgarh), 100 MW wind energy based project in Karnataka and 20
MW wind energy based project in Kerala are also being planned.
8. STRATEGIC DIVERSIFICATION- INCREASING SELF- RELIANCE
8.1 In order to strengthen its competitive advantage in power
generation business, your Company also plans to diversify its portfolio
to emerge as an integrated power major, with presence across entire
energy value chain through backward and forward integration into areas
such as coal mining, power equipment manufacturing, power trading,
distribution, etc.
Business opportunities are being continuously explored through market
scanning and new business plans are adopted accordingly.
8.1.1 The details of joint venture Companies taking up activities in
other businesses is as under:
Name of JV Partner Activities
Company undertaken
UPL Reliance Takes up assignments of
(Utility Infrastructure construction, erection
Powertech Limited and supervision of
Ltd.) power sector and
other sectors like O&M
services, RLA studies,
power distribution, non-
conventional projects.
NASL ALSTOM Takes up renovation and
(NTPC Power modernization assignments
ALSTOM Generation AG of power plants both
Power in India and in SAARC
Services Countries.
Pvt. Ltd.)
EESL PFC, PGCIL and The Company was formed
(Energy REC on December 10, 2009
Efficiency for implementation of
Services Energy Efficiency projects
Ltd.) and to promote energy
conservation and climate
change.
The Company is working
on Energy Audit of
Buildings and Agricultural
Pump replacement under
Perform Achieve Trade
scheme and implementing
Bachat Lamp Yojna for
various State Govts.
NHPTL NHPC, PGCIL The Company was
(National and DVC incorporated on
High 22.05.2009 for setting up
Power Test facility for short circuit
Laboratory testing of transformers and
Pvt. Ltd.) other electrical equipment.
The site for setting up
the laboratory is located
at Bina, MP. Construction
activities and award
activities are in progress.
NPEX NHPC, PFC, The Company was formed
(National TCS, BSE, IFCI, to facilitate, promote,
Power Meenakshi, assist, regulate and manage
Exchange DPSC nation wide trading of
Ltd.) all forms of Electrical
energies and also to settle
Trades in a transparent
fair and open manner.
By-laws of Exchange
submitted by NPEX to
CERC on 30.03.2011 and
the approval has been
accorded by CERC on
24.04.2012.
8.2 The details of subsidiary Companies in other businesses are as
under:
8.2.1 NTPC Electric Supply Company Limited, a wholly owned subsidiary
of NTPC was incorporated to foray into the business of distribution and
supply of electrical energy as a sequel to reforms initiated in the
power sector. The Company is undertaking implementation of turnkey
Rajiv Gandhi Gramin Vidyutikaran Yojna Projects (details given under
Rural Electrification in the Report), turnkey execution of
sub-stations for utilities, project management consultancy for
provision of supply of electricity in 5 km area around NTPC power
projects.
This subsidiary has commenced business of retai distribution of power
in various industrial parks developed by Kerala Industrial
Infrastructure Development Corporation (KINFRA), through its Joint
Venture Company namely KINESCO Power and Utilities Private Limited,
formed with KINFRA.
8.2.2 NTPC Vidyut Vyapar Nigam Limited, a wholly owned subsidiary of
NTPC was incorporated to undertake sale and purchase of electric power
and to effectively utilize installed capacity and thus enable reduction
in the cost of power. The Company is involved in power trading, sale of
fl y ash and cenosphere. It has been appointed as the nodal agency for
Jawahar Lal Nehru National Solar Mission.
8.3 In order to strengthen its competitive advantage in power
generation business, the Company has diversified into the area of
manufacturing through the following joint ventures:
8.3.1 NTPC-BHEL Power Projects Pvt. Limited (NBPPL), a joint venture of
your Company with BHEL was incorporated on April 28, 2008 for taking up
activities of Engineering, procurement and construction of power plants
and manufacturing of equipments. Manufacturing plant of NBPPL is being
constructed at Mannavaram, Tirupati in Andhra Pradesh. The Company is
executing EPC contracts for balance of plants packages of Palatana
Combined Cycle Power plant in Tripura, Namrup Combined Cycle Power
Plant in Assam for BHEL and BOP including Erection & Commissioning
works of entire plant for Monarchak, Tripura for NEEPCO.
8.3.2 Another joint venture Company, BF-NTPC Energy Systems Limited was
incorporated with Bharat Forge Limited on June 19, 2008 to manufacture
castings, forgings, fittings and high pressure piping required for
power projects and other industries. Land acquisition for establishing
manufacturing plant at Sholapur, Maharashtra is in progress. Business/
Technical alliances for key product lines and technology tie-up are
being actively pursued.
8.3.3 Your Company has acquired 44.6% stake in Transformers and
Electricals Kerala Limited from Government of Kerala on June 19, 2009.
The Company deals in manufacturing and repair of Power Transformers.
The Company produced 5,789 MVA transformers which was highest
production ever achieved till date, registering a plant capacity
utilization factor of 130% as against the industry utilization factor
of 75% in 2011-12.
Please refer to Management Discussion and Analysis, Annexure-I
included as a separate section to this report for further details.
9. GLOBALISATION INITIATIVES
9.1 Trincomalee Power Company Limited, a 50:50 joint venture Company
between NTPC and Ceylon Electricity Board was incorporated on
26.09.2011 to undertake the development, construction, establishment,
operation and maintenance of coal based electricity generating station
of 2X250 MW capacity at Trincomalee at Srilanka. Finalisation of
various agreements between JV Company and CEB is in progress.
9.2 Pan-Asian Renewables Private Limited, a joint venture Company has
been incorporated amongst NTPC Limited, Asian Development Bank and
Kyushu to develop projects for portfolio of about 500 MW of renewable
power generation resources in India. In future, the Company may develop
projects outside India in Developing Member Countries.
9.3 Joint Venture Agreement has been executed between NTPC and
Bangladesh Power Development Board (BPDB) on 29.01.2012 for developing
a 1,320 MW Coal based power project at Khulna, Bangladesh through a
joint venture Company to be incorporated between NTPC and BPDB.
9.4 Your Company has prepared and submitted the DPR for Amochu
Hydro-electric project in Bhutan. NTPC has requested Government of
India for allocation of Amochu Reservoir Hydro Electric Project to NTPC
for execution in Bhutan.
9.5 NTPC Consultancy Wing has bagged an order for O&M services for
2X120 MW Siddhirganj Peaking Power Plant for an amount of Rs. 43.05 crore
from Electricity Generation Company of Bangladesh, which is the largest
international order bagged by Consultancy Wing so far.
10. FINANCING OF NEW PROJECTS
The capacity addition programs shall be financed with a debt to equity
ratio of 70:30. Your directors believe that internal accruals of the
Company would be sufficient to finance the equity component for the
new projects. Given its low geared capital structure and strong credit
ratings, your Company is well positioned to raise the required
borrowings.
Your Company is exploring domestic as well as international borrowing
options including overseas development assistance provided by bilateral
agencies to mobilize the debt required for the planned capacity
expansion program.
During the year 2011-12, term loan agreements of Rs. 13,500 crore were
entered into with banks and domestic financial institutions which
included loan of Rs. 10,000 crore executed with State Bank of India. The
cumulative amount of domestic loans tied up till March 31, 2012 was Rs.
59,799.35 crore.
Bonds amounting to Rs. 830 crore were raised from domestic market for fi
nancing the capital expenditure and refinancing of the loans.
Your Company tied-up about USD 700 million from international debt
markets through bilateral loan, export credit agency guaranteed loan
and bonds. The bond offering of the Company received strong investor
response despite the prevalent uncertainty in the global markets.
11. FIXED DEPOSITS
The cumulative deposits received by your Company from 158 depositors as
at March 31, 2012 stood at Rs. 12.26 crore. Further, an amount of
Rs. 0.17 crore has not been claimed on maturity by 19 depositors as on
that date.
12. FUEL SECURITY
12.1 Diversified Fuel Mix
In line with the capacity addition plan of the Government of India,
your Company will take up more coal-based capacity addition in the
coming years owing to large reserves of coal in the Country. However,
with a view to promote sustainable energy development and further
reduce CO2 intensity of power generation, your Company is progressively
diversifying its fuel mix to increase the share of non-fossil fuels.
12.1.1 Coal Supplies
During the year, your Company has signed a 20 years Fuel Supply
Agreement with ECL for supply of 15 MMT coal to Farakka (1,600 MW) and
Kahalgaon (1,840 MW) and with MCL & SECL for supply of 1 MMT of coal
for Ramagundam (500 MW). The Company has tied up coal through MOU route
from Coal India Limited for seven units commissioned after 31.03.2009.
It has tied-up bilaterally 0.3 MMT coal for Farakka with NEC and 5.0
MMT with SCCL for Ramgundam, Simhadri, Dadri and Sipat at a mutually
negotiated price.
Government of India has issued Presidential Directive to Coal India
Limited (CIL) for supply of minimum assured quantity of coal to power
producers and to sign Fuel Supply Agreements with power producers.
Discussions are being held with CIL for signing Fuel Supply Agreement.
12.1.2 Import of Coal
Your Company resorted to direct procurement of 4 MMT of imported coal
at competitive prices for the first time. Earlier, the Company had an
agreement with STC for supply of imported coal.
During 2011-12, your Company received 140.99 MMT of coal as against
137.32 MMT in the previous year. Total domestic coal supply during
2011-12 was 128.98 MMT as against 126.717 MMT during 2010-11 and import
during 2011-12 was 12.00 MMT as against 10.60 MMT in 2010-11.
12.1.3 Sourcing of coal through E-auction
For supplementing the coal supply chain for Farakka and Kahalgaon, your
Company also procured coal (0.38 MMT) through E-auction.
12.1.4 A New Initiative – Coal Transportation through Inland Waterways
Your Company has signed a Tripartite Agreement with Inland Waterways
Authority of India and Jindal ITF on 11.08.2011 for transportation of 3
MMT of imported coal through inland waterways to NTPC Farakka to
supplement coal supplies. Activities for implementation of the project
are in progress. This will pave a new era in the development of Inland
Waterways system in India.
12.2 Gas supplies
During 2011-12, your Company received 13.09 MMSCMD of gas/RLNG as
against 13.77 MMSCMD received during 2010-11. The gas off-take in
2011-12 includes 10.74 MMSCMD of domestic gas and 2.35 MMSCMD of RLNG.
Your Company has APM gas agreements up to the year 2021 and PMT gas
agreements up to the year 2019 for its gas stations. The long-term RLNG
supply agreement with GAIL is valid till 2019. Further, out of 4.46
MMSCMD of KG-D6 gas allocated by Government of India for NCR gas
stations, viz. Anta, Auraiya, Dadri & Faridabad, 2.30 MMSCMD has
already been tied up. For the balance 2.16 MMSCMD KG D6 gas, Empowered
Group of Minister on Pricing & Commercial Utilisation of gas has
directed Reliance Industries Limited to enter into GSPA for supply of
gas to NTPC immediately. As per the directive, the terms and condition
of GSPA for 2.16 MMSCMD KG-D6 gas is in advance stage of finalisation.
Your Company has been making arrangements for tie- up/ supply of spot
RLNG/ Fallback RLNG from domestic suppliers on reasonable endeavour
basis based on requirement/ availability from time to time.
12.3 Development of Coal Mining projects
Your Company was allocated six coal blocks by the Government of India.
Further, Brahmini coal block (including Chichro-Patsimal) was allocated
for joint operation by CIL NTPC Urja Private Limited, a joint venture
Company of Coal India Limited and NTPC. All these mining blocks
together have a production potential of more than 73 million tonnes per
annum.
However, in case of Chatti-Bariatu, Kerendari and Chatti- Bariatu
(South), the timeline stipulated by Ministry of Coal for development of
these blocks could not be met for reasons beyond the control of the
Company. Accordingly, Ministry of Coal had de-allocated these coal
blocks on 14.06.2011. NTPC made representation to Ministry of Coal.
Ministry of Coal through letter dated 27.01.2012 had conveyed
in-principle approval for withdrawal of de- allocation, but the formal
communication is still awaited.
Block development activities are in advance stage in all coal blocks.
Mining Plans have been approved by Ministry of Coal for all of these
coal blocks except for Chatti-Bariatu (South), for which it was
submitted to Ministry of Coal but returned due to de-allocation. All
Notifications for mining area land & Socio-Economic Survey have been
completed for all of these coal blocks. Payment of land compensation to
project-affected families has started in Pakri-Barwadih,
Chatti-Bariatu, Kerandari & Talaipalli coal blocks. MOEF, Govt. of
India accorded environment clearance for Pakri-Barwadih, Chatti-Bariatu
& Kerandari Coal blocks. In-principle environment clearance received
from MOEF for Talaipalli & Dulanga coal blocks and final environment
clearance will be issued after Stage-I forest clearance. MOEF accorded
Stage-I & Stage-II forest clearances for Pakri-Barwadih &
Chatti-Bariatu coal blocks and Stage-I forest clearance for Kerandari
coal block. Forest proposal for Talaipalli and Dulanga coal blocks are
under process with MOEF and State Govt. of Odisha, respectively.
Construction of R&R Colony, CHP, Sub-Station, Railway Siding, etc.
commenced for Pakri-Barwadih coal block. Mine Developer-cum-Operator
[MDO] has commenced work in Pakri-Barwadih coal block.
In addition to the above coal blocks, Ministry of Coal has conveyed
in-principle approval for allotment of more coal blocks to NTPC in lieu
of coal linkages for the following new projects: (i) Kudgi, (2,400MW)
(ii) Gajamara, (1,600MW) (iii) Barethi, (3,960 MW) (iv) Unchahar,
Stage-IV, (500 MW) 12.4 Other initiatives for securing coal supply
To leverage the strength of established players in mining and related
areas, your Company has formed the following Joint Venture Companies:
Name of JV Partners Purpose
Company
CIL NTPC Coal India For undertaking the
Urja Pvt. Ltd. Development, O&M of
Ltd.* Brahmini and Chichro
Patsimal coal blocks
and Integrated Power
Projects). CMPDIL has
been entrusted with
the job of detailed
exploration.
NTPC SCCL Singareni For undertaking
Global Collieries development and O&M
Ventures Company of coal blocks in India and
Pvt. Ltd. Ltd. abroad.
*In case of Brahmini and Chichro-Patsimal coal blocks, allocated to CIL
NTPC Urja Private Limited, though there was no schedule stipulated with
the allotment letter, Ministry of Coal had de-allocated these blocks
for delay in their development. Your Company has taken up the matter
with the Ministry of Coal for withdrawal of de- allocation. The Board
of NTPC has accorded approval to exit International Coal Ventures
Private Limited.
12.5 Exploration Activities
Under New Exploration Licensing Policy (NELP-VIII), your Company has
signed Production Sharing Contracts (PSCs) on 30.06.2010 with
Government of India for four Oil/ Gas Exploration blocks.
One of the blocks allotted under NELP-VIII is held by NTPC with 100%
participating interest and as operator. 3D Seismic Data Acquisition has
been started subsequent to grant of Petroleum Exploration Licence and
the work has been completed. Minimum Work Programme Commitment (MWP)
for this block is Rs. 177.53 crore.
The other three blocks with 10% participating interest in each block
are held by your Company in consortium with ONGC as operator. Various
activities in these blocks are under progress. NTPCs share of MWP for
these blocks is Rs. 87.83 crore.
13. BUSINESS EXCELLENCE: GLOBAL BENCHMARKING
NTPC has developed its own excellence framework for assessing
generating stations. This framework is based on globally reputed
excellence frameworks like Malcolm Balddridge, USA and European
Foundation for Quality Management. This initiative is known as NTPC
Business Excellence Model. The outcomes of this model are
organizational strength, opportunity for improvement, issues of concern
and best practices. A jury of eminent persons from within and outside
organization judges outcome of the assessment process and suggests
improvements. In the financial year 2011-12, 2nd cycle of assessment
was completed and stations ranking high on excellence level like
Ramagundam and Dadri were awarded by Honourable Minister of Power in
O&M conference during Feb12. External jury members for assessment
cycle have praised the initiative as holistic approach towards
excellence.
At strategic level apart from adopting NTPC Business Excellence Model,
proposal has also been initiated for Balanced Score Card implementation
using ERP enabled software across the organization.
14. RENOVATION & MODERNISATION
14.1 Need for Renovation and Modernization
Renovation and Modernization (R&M) of power plants in the present
scenario of severe resource constraint is considered to be the best
option for bridging the gap between the demand and supply of power as
R&M schemes are cost effective. To this end, renovations are being
carried out for the purpose of life extension of units, performance
improvements, capacity enhancement, availability improvement and
improved environment compliance. It increases the capacity, ensures
safe, reliable and economic electricity production by replacement of
worn-out, deteriorated or obsolete electrical, mechanical,
instrumentation, controls and protection system by state-of-the-art
equipment. Y o u r Company completed 724 schemes of R&M out of 930
schemes, which cost around Rs. 2,185 crore.
With a view to comply with increasingly stringent environment norms of
reduced emission level prescribed by State Pollution Control Boards,
planning, tendering and approval is on for Renovation and Retrofitting
of Electrostatic Precipitator (ESP) in stations like Singrauli, Korba,
Rihand, Vindhyachal, Farakka, Unchahar, Talcher Kaniha, Talcher STPS
etc. With the same objective, implementation of renovation of ESP is
already in progress at Badarpur TPS (2X210 MW).
15. VIGILANCE
15.1 Viligance Mechanism
Your Company ensures transparency, objectivity and quality 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. The four units of Vigilance Department namely
Corporate Vigilance Cell, Departmental Proceeding Cell (DIPC), MIS Cell
and Technical Cell (TC) deal with various facets of Vigilance
Mechanism. The Vigilance Department submits its report to the Competent
Authority and also to the Board of Directors. The CVO reports to the
Central Vigilance Commission.
As per the directive of DOPT/ MOP, the property returns of all the
executives have been published on NTPC Website.
15.2 Workshops and Vigilance Awareness Week
Preventive Vigilance Workshops are being conducted every year to
sensitize employees about DOs and DONTs in work areas and their role in
preventing corruption.
Vigilance Awareness Week is being organized every year in first week
of November to emphasize upon leveraging IT, creating awareness for
transparency, accountability, fair play and objectivity. The issues
relating to contractors are also addressed to their satisfaction during
Customer Meet organized during Vigilance Awareness Week.
15.3 Implementation of Integrity Pact
Your Company is committed to bring total transparency to its business
processes and as a step in this direction, has signed a Memorandum of
Understanding with Transparency International India in December, 2008.
The Integrity Pact is being implemented for all contracts having value
exceeding Rs. 10 crore. Two Independent External Monitors have been
nominated by the Central Vigilance Commission for all contracts with
value exceeding Rs. 100 crore.
15.4 Implementation of Fraud Prevention Policy
The Fraud Prevention Policy has been formulated and implemented in your
Company since 2006. The cases referred by the nodal officers are being
investigated immediately to avoid fraudulent behaviors as defi ned in
the Fraud Prevention Policy.
16. HUMAN RESOURCE MANAGEMENT
16.1 Your Company takes pride in its highly motivated and competent
human resource that has contributed its best to bring the Company to
its present heights. The productivity of employees is demonstrated by
increase in generation per employee and consistent reduction of Man-MW
ratio year after year. The over-all Man-MW ratio for the year 2011-12
excluding JV/subsidiary capacity
is 0.74 and 0.69 including capacity of JV/ Subsidiary. Generation per
employee was 9.25 MUs during the year based on generation of NTPC
stations.
The total employee strength of the company stood at 25,511 as on
31.3.2012 against 25,144 as on 31.3.2011.
FY 2011-12 FY 2010-11
NTPC
Number of employees 24,011 23,797
Subsidiaries & Joint Ventures
Employees of NTPC 1,500 1,347
in Subsidiaries & Joint
Ventures
Total employees 25,511 25,144
The attrition rate of the NTPC executives (including ETs and those
posted in Subsidiaries and JVs) during the year was 1.17%.
16.2 Employee Relations
During the year employees relations climate was peaceful and
conducive. The scheme for employees participation in management
continues to function successfully all over NTPC. There have been
continuous interactions between the management and the apex fora of
workmen and executives - National Bipartite Committee (NBC) and NTPC
Executives Federation of India (NEFI) respectively. The unions and
associations and also the individual employees complemented the efforts
of the management in developing and sustaining an enabling performance
culture in the organization. Meetings and workshops for workmen and
executives association were held during the year wherein issues
relating to performance and productivity were discussed. The overall
employee relations scenario in NTPC continued to be cordial marked by
industrial harmony and mutual trust.
16.3 Safety & Security
Occupational safety and health at workplace is one of the concerns of
NTPC Management and utmost importance is given to provide safe working
environment and inculcate safety awareness among the employees. The
Company has 3-tier monitoring system of safety measurement i.e. at
site level, at Regional Head Quarters and at Corporate Centre.
Regular plant inspection, internal and external safety audits are
carried out at each Project/Station. Safe methods are practised in all
areas of Operation & Maintenance (O&M) and Construction & Erection
(C&E) activities. Safety task force for O&M and Construction
activities, height permit and height check list are implemented.
Qualifi ed safety officers are posted at all units as per statutory
rules/ provisions. Safety control rooms are established at all
construction projects to monitor unsafe conditions and unsafe acts
through cameras installed at valuable locations of sites. All our
plants are certifi ed by OHSAS-18001.
Through our continuous efforts in safeguarding the employees, accidents
have come down considerably as compared to last year. Many of our
plants have been awarded with prestigious safety awards by various
Insitutions/ Bodies like Ministry of Labour & Employment, Govt. of
India and National Safety Council, Institution of Engineers in
recognition of implementing innovative safety procedures and practices.
Concrete steps are being taken for upgrading surveillance systems at
all of our projects/ stations by installing State of the Art security
systems as security of the plant is an area of prime concern for our
power plants. A group under the name Security and Coordination has been
formed which is responsible for direct liaison with MHA, IB and CISF as
well as the State/ District level authorities to augment the security
preparedness in our establishment/ power installations. This group also
plays a crucial role in strategic intervention in land acquisition
related issues prevailing at our green/ brown field projects.
16.4 Training and Development
In line with its long-term objective of being a learning organization,
your Company has continuously promoted training and development of not
only its own employees but also other professionals of the power
sector. In this effort, your Company has endeavored to continuously
upgrade the training infrastructure of both Power Management Institute
(PMI) at the corporate level as well as the Employee Development
Centres at the sites. Training imparted is always in tune with new
emerging needs in diverse areas like nuclear power, coal-mining, hydro-
power, super-critical technology, renewable energy etc. and for this
purpose every year some new programmes are included in the annual
calendar. Apart from this, the usual programmes include managerial
topics, power station operation & maintenance and project construction,
erection and commissioning and information technology.
Under the on-going scheme of strengthening the Industrial Training
Institutes (ITIs) across the Country, your Company has taken the
initiative of adopting ITIs near its power generating stations and a
total of 17 ITIs have been adopted under this scheme till 31.03.2012.
This activity is being coordinated through PMI which is also
facilitating the construction of nine new ITIs where new projects are
coming up. Through this initiative, PMI has created 1398 seats in it
till 31.03.2012.
During 2011-12, your Company organized a number of training programmes
in power and energy sectors which, inter-alia, included National
Conference on Cases & Research in Power Sector to provide a platform
for practising managers, academicians and research scholars, a two day
training programme for Directors on Corporate Governance, Hands-on
training in 660 MW supercritical simulator at PMI to 234 participants,
National Seminar on Challenges and Issues in Renewable Energy covering
the uncertainties in fossil fuel supply and the need for distributed
generation using renewable sources.
PMI conducted 405 training programmes with a participant base of
10,326. The training mandays clocked were 45,509.
PMI, for the first time, conducted a training programme through video
conferencing, primarily to reach out to more number of people at one go
and provide quality training programme to remote sites.
17. SUSTAINABLE DEVELOPMENT
Vision Statement on Sustainable Energy envelopment
Going Higher on Generation, lowering GHG intensity
Sustainable Development is the development that meets the needs of the
present without compromising the ability of future generations to meet
their own needs. Sustainable Development involves an enduring and
balanced approach to economic activity, social progress and
environmental responsibility.
Department of Public Enterprises, Government of India has issued
Guidelines on Sustainable Development for CPSEs. These guidelines
provide for policy and projects for sustainable development.
Your Company is committed for development of renewable energy in view
of global warming and fast depletion of fossil fuel.
Initiatives by the Company
Your Company is aligning its organisational structure to achieve the
goal of sustainable development. Sustainable Development Projects have
been identified by your Company for implementation next year which
includes waste management, bio-diversity conservation, reduction in air
emission, life cycle environmental impact assessment and electrification
of un-electrified and de-electrified villages (under Rajiv
Gandhi Grameen Vidyutikaran Yojna – RGGVY) through its wholly owned
subsidiary Company NTPC Electric Supply Company Limited.
Your Company has been a member of TERI – Business Council for
Sustainable Development – India (TERI-BCSD) since August 2001, which is
the Indian partner of the World Business Council for Sustainable
Development, Geneva. Your Company is also a member of Global Compact
since 2001, a voluntary initiative of the United Nations for Corporate
Social Responsibility. These forums provide an independent and credible
platform to address issues related to sustainable development and
promote leadership in environmental management, social responsibility
and economic performance.
In its endeavour to achieve the goals of Sustainable Development, your
Company is addressing the issues through multi-stakeholder approach
covering environment and social aspects by implementing Corporate
Social Responsibility –Community Development Policy, Distributed
Generation Projects, Rehabilitation & Resettlement Schemes and Rural
Electrification. Your Company has formed a trust named NTPC Foundation
for serving physically challenged and economic weaker sections of the
society. For preserving the environment, your Company is implementing
renewable energy projects thereby reducing carbon footprints. It is
seeking continuous improvements in Environment Management through Clean
Development Mechanism, Ash Utilisation and has established Center for
Power Efficiency and Environmental Protection (CenPEEP) to address
climate change issues. Details of each of these are as follows:
17.1 Inclusive Growth – An initiative for Social Growth
17.1.1 Corporate Social Responsibility
Your Company has always discharged its social responsibility as a part
of its Corporate Governance philosophy. It follows the global practice
of addressing CSR issues in an integrated multi stake-holder approach
covering the environmental and social aspects.
With a view to address the domains of socio-economic issues at national
level and in line with its Corporate Social Responsibility – Community
Development Policy (CD), your Company has created basket of activities
and taken up various initiatives at its stations, regional and national
level.
Your Company confirms its involvement in various CSR activities in
line with 10 Global Compact principles and shares its experience with
the representatives of the world through Communication on Progress.
Your Company, being a core member of Global Compact Network, India,
actively participated in the Annual Convention of the Global Compact
Network.
A report on progress made in this area is enclosed at Annex- VIII to
this Report.
Expenditure incurred towards CSR Activities
A total expenditure of Rs. 49.44 crore was incurred towards Corporate
Social Responsibility expenses during the Financial Year 2011-12, which
was 0.54% of the net profit of the previous year.
Awards:
Your Company received SCOPE Meritorious Award for CSR and
Responsiveness for 2010-11, Golden Peacock Award for CSR for the year
2011 and Greentech Award for the year 2011.
17.1.2 NTPC Foundation
NTPC Foundation, registered in December 2004, is engaged in serving and
empowering the physically challenged and economically weaker sections
of the society.
Initiatives undertaken by the Company are covered under Annex-VII to
this Report.
17.1.3 Distributed Generation Power Projects
Your Company is setting up off-grid Distributed Generation Power
projects in villages around its generating stations through a self
sustained model.
It has already commissioned 16 Decentralised Distributed
Generation (DDG) power projects, out of which five projects each are
in Uttar Pradesh, Madhya Pradesh, Chhattisgarh and one in Rajasthan.
This includes commissioning of first Micro Hydel Project (2 X 20 kw)
on 27.03.2012 at tribal village Nakkiya located at a place 75 Km from
NTPC Korba in Chattisgarh. This is the first DG project based on hydro
energy (run-off stream) commissioned with the grant from Deptt. of
Science and Technology (DST), Govt. of India and NTPC Foundation.
Electricity generated through this micro hydel project is provided
round the clock to 82 households with a population of 410 residents.
Total installed capacity of these DG projects is around 340 KW, benefi
ting approximately 2,280 households and population of 12,500.
17.1.4 Rehabilitation & Resettlement (R&R)
Your Company is committed to help the populace displaced for execution
of its projects and has been making efforts to improve the
Socio-economic status of Project Affected Persons (PAPs). In order to
meet its social objectives, your Company is focusing on effective R&R
of PAPs and undertaking community development activities in and around
the projects.
R&R Plan for Barh ash dyke, Korba Stage-III ash dyke, Vindhyachal
Stage-IV and Talaipalli Coal Mining projects were approved during the
year. Other R&R and CD Plans in process for the projects/ plants
continued to be implemented.
Socio-economic Survey was completed for Tanda- II, Khargone and Dhruvan
projects and is in progress at Muzaffarpur, Darlipalli, Gajamara,
Barethi, Lara, Gadarwara and Khargone Projects.
In the area of health, your Company is providing financial assistance
for setting up a Medical College at Raigarh in Chhattisgarh and for
renovation and refurbishment of Sundargarh District Hospital in
Odisha. In the area of education, Your Company is providing financial
assistance for setting up a Hydro Engineerng College at Bilaspur in
Himachal Pradesh and is setting up an Industrial Training Institute
(ITI) at Korba.
17.2 Environment Management – An Initiative for preserving Environment
Your Company is pursuing the objective of sustainable power
development. It has taken a number of initiatives towards protection of
the environment by providing advanced environment protection control
systems, regular environment monitoring and judicious use of natural
resources, adoption of high efficiency technologies such as super
critical boilers for the up-coming green field projects etc and
existing brown field projects.
17.2.1 Control of Air Emissions and Automation of Environment
measurement systems: High efficiency Electro-static Precipitators
(ESPs) with efficiency of the order of 99.9% or higher have been
provided to control particulate matter from stacks. Renovation &
modernization of old ESPs at various plants is underway by addition of
collection area, installation of the state-of-the-art controller to
keep Particulate Matter emission below statutory limits.
Flue Gas Conditioning using ammonia is also used as an additional
measure to reduce PM emission. Sulphur content in coal is controlled
through high stacks and NOx emission in coal based stations is
controlled by providing tall stacks and over fire dampers.
In order to monitor key environmental parameters of stack emissions of
SO2, NOx and CO2, ambient air and effluents continuously on real time
basis, 61 continuous Ambient Air Quality Monitoring System (AAQMS)
along with Meteorological Sensors have been installed at 20 stations
located all over India.
Water Conservation: To treat the waste water and reduce consumption of
fresh water requirements for the plants, your Company has installed
Liquid Waste Treatment Systems, Ash Water Recirculation System and
closed cycle condenser cooling water systems with higher Cycle of
Concentration (COC) (using more than 4.0 COC) in its stations. The
Company is using 3Rs (Reduce, Recycle & Reuse) as guiding principle for
reduction in consumption of water. The Company is conducting Water
Balance studies at most of its stations. It is using techniques like
water harvesting and reuse and recycling of STP & CW Blow Down to
achieve maximum water conservation.
Ash Pond Management: Ash dykes in your Company have been engineered to
ensure that all safety and environment issues are addressed at design
stage itself. Multi-lagoon ash ponds with provision of over-fl ow
Lagoons and ash pipe garlanding arrangement for change over of ash
slurry feed points have been provided for effective settlement of ash
particles. Water sprinklers have been provided in the Ash Pond areas
for spraying water in dried up portion of lagoons for control of
fugitive dust. Efforts are made to maximize utilization of ash through
use of Dry Ash Extraction System (DAES). Balance unutilized ash is sent
to ash pond by making ash slurry. The decanted water in Ash Pond is
recycled back with the help of Ash Water Recirculation System (AWRS)
for making ash slurry again.
Environmental Studies: Your Company has taken a number of steps for
establishing scientific database to provide room for betterment of
environment around the power plant through various studies by reputed
Institutes and Consultants. To understand impact of power plants on fl
ora & fauna and human beings, your Company has taken up a number of
Environment Studies such as Human Health Risk Assessment, Source
Apportionment studies, Fly Ash Leachate Study, Post Operational
Environment Impact Assessment Study, Green Cover assessment study and
Impact of operation on Mango orchard.
Tree Plantation: Your Company has planted more than 19 million trees
till date in and around its projects as a measure to take massive
afforestation. The afforestation has not only contributed to the
aesthetics but also helped in carbon sequestration by serving as a
sink for CO2 released from the stations and thereby protecting the
quality of ecology and environment in and around the projects.
ISO 14001 & OHSAS 18001 Certification: NTPCs stations have been
certifi ed with ISO 14001 and OHSAS 18001 by reputed National and
International certifying agencies as a result of sound environment
management systems and practices.
17.2.2 Clean Development Mechanism (CDM)
Your Company is committed to undertake climate change issues
proactively. The Company has taken several initiatives in CDM Projects
in Power Sector. Tapovan Vishnughad HEPP & energy efficiency projects
at Singrauli STPP, Dadri, small hydro project at Singrauli and 5 MW
Solar PV at Dadri have got Host Country Approval from National CDM
Authority. The methodology for super critical technology prepared by
NTPC viz. consolidated base line and monitoring methodology for new
grid connected fossil fuel fired power plants using less GHG intensive
technology has been approved by United Nations Frame Work Convention
on Climate Change (UNFCCC). All super critical power projects are
using the same methodology. More green field energy efficiency CDM
projects are in pipeline.
17.2.3 Ash Utilisation
During the year 2011-12, 27.53 million tonne of ash had been utilized
for various productive purposes which is 55% of the total ash
generation.
Important areas of ash utilization are – cement & asbestos industry,
ready mix concrete plants (RMC), Road Embankment, Mine filling, Ash
Dyke Raising & Land Development, Issue of fl y ash to cement, RMC and
other industries has been 9.06 Million Tonnes.
Pond ash from all stations of NTPC is being issued free of cost to NTPC
Vidyut Vyapar Nigam Limited (NVVN), a wholly owned subsidiary of the
Company, which in turn sells it to the users. Fund collected from sale
of ash is being maintained in a separate account by NVVN and the same
is being utilized for development of infrastructure facilities,
promotion and facilitation activities to enhance ash utilization.
The quantity of ash produced, ash utilized and percentage of such
utilization during 2011-12 from NTPC Stations is at Annex-IX.
17.2.4 CenPEEP – towards enhancing efficiency
Center for Power Efficiency and Environmental Protection (CenPEEP),
was set up to take initiatives to address climate change issues. It is
a symbol of NTPCs voluntary proactive approach towards Greenhouse Gas
(GHG) reduction and commitment towards environmental protection. The
centre has been entrusted with some of the Strategic Initiatives such
as improvement in efficiency and reliability. Various
state-of-the-art technologies and practices for improvement in efficiency
and reliability have been demonstrated in local conditions and
disseminated to power stations through hands-on training, guidelines
and workshops. The activities include new technologies and practices
such as use of thermal cycle modeling and audit, CFD, cooling tower
performance optimization, gas turbine capability assessment, LP turbine
performance assessments, technology application development for
strengthening Predictive Maintenance Program and Failure mode
analysis through Reliability Centered Maintenance (RCM) and risk
evaluation.
CenPEEP has also shared its knowledge and expertise, demonstrated best
practices and provided training at SEBs under GHG Pollution Prevention
Project (GEP) and Asia Pacific Partnership (APP) programs in order to
improve their efficiency and reduce carbon footprint. A large degree
of GEPs success in sustainability is attributed to the creation,
evolution, and institutionalization of CenPEEP.
CenPEEP has estimated cumulative CO2 emission avoided in NTPC since the
year 1996 as 30 million tones.
A study on Efficient and clean use of coal in Asia Region was also
initiated under the Asia region work programme of World Energy Council
with involvement of Japanese experts.
17.2.5 RURAL ELECTRIFICATION
NTPC through its wholly owned subsidiary NESCL is carrying out the
implementation of rural electrification in 5 States namely Madhya
Pradesh, Chhatisgarh, Odisha, Jharkhand and West Bengal under Rajiv
Gandhi Grameen Vidyutikaran Yojna (RGGVY). 273 un-electrified/ de-
electrified (UE/DE) villages were made ready and 2,61,115 Below
Poverty Line (BPL) Rural household connections were provided during the
Financial Year 2011-12.
Besides the above, 3,582 partially electrified villages were also made
ready during the financial year 2011-12. The cumulative achievement of
PE is 14,861 till 31.03.2012.
The cumulative achievement till 31.03.2012 includes 29,567 UE/DE
villages which have been electrified and 25,84,377 BPL connections
have been provided.
18. IMPLEMENTATION OF OFFICIAL LANGUAGE
Your Company has made vigorous efforts for the propagation and
successful implementation of the Official Language Policy of the
Government of India. Several Hindi workshops, meetings, conferences
and competitions were conducted at projects, regional offices and
corporate centre during the year, in which renowned Hindi Scholars
inspired the participants to use Hindi in day-to-day Official works.
The progress and usage of Rajbhasha Hindi was inspected in the stations
and proper suggestions for compliance were given to the Heads of the
Offices. The Sub-committee of Parliament on Official Language
appreciated the efforts for Rajbhasha implementation in our projects.
All office orders, formats and circulars were issued in Hindi as well.
Important advertisements and house journals were released in bilingual
form- in Hindi and in English. Your Companys website also has a
facility of operating in bilingual form- in Hindi as well as in
English.
19. NETRA – R&D Mission in Power Sector
Your Company is fully aligned to the needs of adapting emerging
technologies and upgrading the technologies through R&D. NTPC Energy
Technology Research Alliance (NETRA) as a research and development wing
of the Company focuses on areas of efficiency improvement, cost
reduction, renewable and alternate energy, Climate Change, scientific
support to utilities.
In order to provide utmost benefits to the stations, projects like
Artifi cial Intelligence based plant performance advisory system,
real-time advisory system, development and trails of Robotic inspection
devices at stations, development of PDC-RDM based expert system
(analyzer) for online monitoring and advisory system for transformer
conditioning, maintaining boiler water chemistry, monitoring CO2
utilization through mineralization of fl y ash, etc have been
successfully completed and deployed/ tested at stations.
Research Advisory Council (RAC), comprising eminent scientists and
experts from India and abroad, is in place to steer high-end research.
Scientific Advisory Council (SAC), with Regional Executive Directors &
Station Heads as its members, provides directions for improving plant
performance & reducing cost of generation. Meetings of both the
Advisory Councils were held periodically where members deliberated on
various project activities and gave guidelines for implementation of
suggestions. 16 patent applications filed are in advanced stage of
processing. NETRA provides scientific support to all NTPC stations as
well as other Utilities to improve their performance.
As a part of establishing state-of-the art facilities for condition
monitoring and diagnostic techniques, equipments like ultra-sound
phased array, total organic carbon (solid sample module), NDT
Simulation CIVA software etc have been procured and installed at NETRA.
To further expand the infrastructure creating laboratories and
facilities, etc, Phase II building activities are in advanced stage.
NETRA is actively involved in developing DPE guidelines on R&D, R&D
inputs for 12th plan as well as contribution to Sectoral Innovation
council for power.
NETRA has entered into MOU with National Metallurgical Laboratory,
Jamshedpur for collaborative research in the area of Metallurgy, NDE,
Corrosion and materials developments.
NETRA laboratories have been accredited as per ISO 17025:2005. NETRA is
also certifi ed by Central Boiler Board for RLA studies.
The Company organized a National Workshop on Carbon Capture and Storage
on 27th September 2011 for formulating a policy for carbon capture and
storage.
20. 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 Act is being implemented in its true spirit since its
inception. The Company has put RTI manual on website for access to all
citizens of India and has designated a Central Public Information Offi
cer (CPIO), an Appellate Authority and APIOs at all projects/ stations/
offices of NTPC.
During 2011-12, 1,270 applications were received under the RTI Act, out
of which 1,241 applications were replied to. Seven workshops on RTI Act
have been conducted at regional headquarters/ stations to share and
deliberate on latest Notifications, amendments and other issues for
smooth implementation. For better understanding of the employees, your
Company has created RTI portal on its Intranet. An interactive session
with the delegates from Commonwealth countries was also organized on
01.02.2012 to share and interact on implementation of RTI Act in Public
Sector Undertakings.
21. USING INFORMATION AND COMMUNICATION TECHNOLOGY FOR PRODUCTIVITY
ENHANCEMENT
Your Company has implemented an Enterprise Resource Planning (ERP)
package covering maximum possible processes across the organization
including subsidiaries. In addition to core business processes and
Employee Self Service functionality, the ERP solution also includes
E-procurement, Knowledge Management, Business Intelligence, Document
Management and workflow etc. To take care of the need for process
data at desktop for analysis and monitoring, Process Integration (PI)
system has been implemented at all plants in operation. PI based
applications for real time performance monitoring analysis have been
implemented at all the locations. To take care of the employee self
service needs of remotely located personnel, connectivity through web
has been provided through secured access.
The ERP system is fully managed through in-house experts from process
groups and technical groups. In-house solutions have been developed to
take care of the non-ERP areas and business needs of the joint venture
Companies where such vast set up is not available.
Network connectivity has been strengthened using Multi- Protocol Label
Switching- Virtual Private Network (MPLS- VPN). Bandwidth of
communication network has now been doubled to make ERP operation
faster. Further, a parallel communication network from alternate
service provider is being arranged to ensure maximum reliability and
availability of communication network.
A state-of-the-art Data Centre and centralized server facility to cater
the entire NTPC is in operation at NOIDA. A disaster recovery centre
is also functional at Hyderabad.
Your Company has already implemented Videoconferencing at all NTPC
Plant locations and subsidiaries which is being extensively used for
Management Committee Meetings and Project Monitoring on regular basis.
This facility at PMI (Super 30) is also now being used for conducting
virtual class room coaching for students located at NTPC sites.
22. NTPC GROUP: SUBSIDIARIES AND JOINT VENTURES
Your Company has formed 5 subsidiary companies and 20 joint venture
companies for undertaking specific business activities.
The names of Subsidiaries and Joint Venture Companies and the
percentage of your Companys shareholding in these Companies as on
30.06.2012 is as follows:
The performance of these Companies as well as the consolidated financial
statements are briefly discussed in the Management Discussion
& Analysis section. The financial statements of subsidiary companies
along with the respective Directors Report are placed elsewhere in
this Annual Report.
23. INFORMATION PURSUANT TO STATUTORY AND OTHER REQUIREMENTS
Information required to be furnished as per the Companies Act, 1956,
Listing Agreement with Stock Exchanges, Government guidelines etc. is
annexed to this report as below:
Particulars Annexure
Management Discussion & Analysis I
Report on Corporate Governance II
Information on conservation of energy, III
technology absorption and foreign
exchange earnings and outgo
Statement pursuant to Section 212 of IV
the Companies Act, 1956 relating to
Subsidiary Companies
Statistical data of the grievances V
Statistical information on persons VI
belonging to Scheduled Caste / Tribe
categories
Information on Physically Challenged VII
persons
UNGC - Communications on progress VIII
2011-12
Project Wise Ash Utilisation IX
INFORMATION AS PER COMPANIES (PARTICULARS OF EMPLOYEES) RULES, 1975
Ministry of Corporate Affairs, through Notification G.S.R. 289(E)
dated 31st March 2011 has amended the Companies (Particulars of
Employees) Rules, 1975 by providing that the information required under
Section 217(2A) of the Companies Act, 1956 read with the Companies
(Particulars of Employees) Rules, 1975 shall be required to be provided
for those employees whose remuneration is more than Rs. 60 lac per
financial year, if employed for whole of the year or more than Rs. 5 lac
per month, if employed for part of the year. The said Notification
further provides that in case of Government Companies such particulars
are not required to be included in the Boards Report.
Also, any member interested in obtaining such particulars may write to
the Company Secretary at the Registered Office of the Company.
However, such particulars shal be made available to the shareholders on
a specific request made by them during the course of Annual General
Meeting to be held on 18.09.2012.
24. STATUTORY AUDITORS
The Statutory Auditors of your Company are appointed by the Comptroller
& Auditor General of India. M/s O.P. Bagla & Co., K.K. Soni & Co., PKF
Sridhar & Santhanam, V. Sankar Aiyar & Co., Ramesh C. Agrawal & Co. and
A.R. & Co. were appointed as Joint Statutory Auditors for the financial
year 2011-12.
25. MANAGEMENT COMMENTS ON STATUTORY AUDITORS REPORT
The Statutory Auditors of the Company have given an unqualifi ed report
on the financial statements of the Company for the Financial Year
2011-12.
26. REVIEW OF ACCOUNTS BY COMPTROLLER & AUDITOR GENERAL OF INDIA
The Comptroller & Auditor General of India, through letter dated
21.05.2012, has given NIL Comments on the Financial Statements of
your Company for the year ended 31st March 2012 under section 619(4) of
the Companies Act,1956. As advised by the Office of the Comptroller &
Auditor General of India (C&AG), the comments of C&AG for the year
2011-12 are being placed with the report of Statutory Auditors of your
Company elsewhere in this Annual Report.
27. COST AUDIT
As prescribed under the Cost Accounting Records (Electricity Industry)
Rules, 2001 applicable for financial years 2010-11 and 2011-12, the
Cost Accounting records are being maintained by all stations of the
Company. The particulars of Cost Auditors as required under Section
233(B) of the Companies Act, 1956 read with General Circular No.
15/2011 dated 11.04.2011 issued by Ministry of Corporate Affairs are
given below:
The firms of Cost Accountants appointed for the financial year
2010-11 are (i) M/s Dhananjay V. Joshi & Associates, Pune, Maharashtra,
(ii) M/s Jugal K. Puri & Associates, Gurgaon, Haryana, (iii) M/s Mandal
Mukherjee Datta & Associates, Kolkata, West Bengal, (iv) M/s S.C.
Mohanty & Associates, Bhubhaneshwer, Orissa, (v) M/s V.P. Gupta & Co.,
Noida, Uttar Pradesh, (vi) M/s Chandra Wadhwa & Co., Daryaganj, Delhi
and (vii) M/s Sanjay Gupta & Associates, Janak Puri, New Delhi.
The firms of Cost Accountants appointed for the financial year
2011-12 are (i) M/s Dhananjay V. Joshi & Associates, Pune, Maharashtra,
(ii) M/s Jugal K. Puri & Associates, Gurgaon, Haryana, (iii) M/s Mandal
Mukherjee Datta & Associates, Kolkata, West Bengal, (iv) M/s S.C.
Mohanty & Associates, Bhubhaneshwer, Odisha, (v) M/s V.P. Gupta & Co.,
Noida, Uttar Pradesh and (vi) M/s Chandra Wadhwa & Co., Daryaganj,
Delhi.
The due date for fi ling Cost Audit Reports for the financial year
ended March 31, 2011 was September 27, 2011 and the Cost Audit Reports
were filed with the Central Government between 29.07.2011 and
09.09.2011. The due date for fi ling Cost Audit Reports for the fi
nancial year ended March 31, 2012 is September 27, 2012 and the
consolidated Cost Audit Report as prescribed for the financial year
2011-12 shall be filed within the prescribed time period.
28. BOARD OF DIRECTORS
Shri M.N. Buch, Shri Shanti Narain, Shri P.K. Sengupta and Shri K.
Dharmarajan have ceased to be the Non- Official Part-time Directors on
August 25, 2011. Shri A.K. Sanwalka, Shri Kanwal Nath, Shri Adesh C.
Jain and Shri Santosh Nautiyal have ceased to be the Non-Official
Part- time Directors on January 29, 2012.
Dr. M. Govinda Rao was re-appointed as Non-Official Part-time Director
with effect from August 26, 2011 after his tenure of three years was
completed on August 25, 2011.
Shri S.B. Ghosh Dastidar and Shri R.S. Sahoo have joined as Non-Offi
cial Part-time Directors of the Company with effect from August 26,
2011. Shri Ajit M. Nimbalkar and
Shri S.R. Upadhyay have joined as Non-Official Part-time Directors of
the Company with effect from January 20, 2012. Ms. Homai A. Daruwalla,
Shri A.N. Chatterji and Prof. Sushil Khanna have joined as the Non-Offi
cial Part- time Directors with effect from February 28, 2012.
Shri A.K. Jha, Executive Director has taken over as Director
(Technical) with effect from July 1, 2012 as Shri D.K. Jain has ceased
to be the Director (Technical) of your Company with effect from June
30, 2012 on attaining the age of superannuation.
The Board wishes to place on record its deep appreciation for the
valuable services rendered by Shri M.N. Buch, Shri Shanti Narain, Shri
P.K. Sengupta, Shri K. Dharmarajan, Shri A.K. Sanwalka, Shri Kanwal
Nath, Shri Adesh C. Jain, Shri Santosh Nautiyal and Shri D.K. Jain
during their association with the Company.
In accordance with the provisions of Article 41(iii) of the Articles of
Association of the Company four directors - Shri B.P. Singh and, Shri
S.P. Singh shall retire by rotation at the Annual General Meeting of
your Company and, being eligible, offer themselves for re-appointment.
29. DIRECTORS RESPONSIBILITY STATEMENT
As required under Section 217(2AA) of the Companies Act, 1956, your
Directors confirm that:
1. in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures;
2. the Directors had selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the financial year 2011-12 and of the
profit of the Company for that period;
3. the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities; and
4. the Directors had prepared the Annual Accounts on a going concern
basis.
30. ACKNOWLEDGEMENT
Your Directors acknowledge with deep sense of appreciation for the
co-operation received from the Government of India, particularly the
Prime Ministers Office, Ministry of Power, Ministry of Finance,
Ministry of Environment & Forests, Ministry of Coal, Ministry of
Petroleum & Natural Gas, Ministry of Railways, Planning Commission,
Department of Public Enterprises, Central Electricity Authority,
Central Electricity Regulatory Commission, Appellate Tribunal for
Electricity, State Governments, Regional Power Committees, State
Electricity Boards and Office of Solicitor General of India.
Your Directors also convey their gratitude to the shareholders, various
International and Indian Banks and Financial Institutions for the confi
dence reposed by them in the Company. The Board also appreciates the
contribution of contractors, vendors and consultants in the
implementation of various projects of the Company. We also acknowledge
the constructive suggestions received from Government and the Statutory
Auditors.
We wish to place on record our appreciation for the untiring efforts
and contributions made by the employees at all levels to ensure that
the Company continues to grow and excel.
For and on behalf of the Board of Directors
Place : New Delhi (Arup Roy Choudhury)
Date : 3rd August 2012 Chairman & Managing Director |
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| Source : Dion Global Solutions Limited | |
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