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NTPC

BSE: 532555|NSE: NTPC|ISIN: INE733E01010|SECTOR: Power - Generation & Distribution
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Directors Report Year End : Mar '17    Mar 16
The Directors are pleased to present the 41st Annual Report on the business and operations of the Company
along with audited financial statements for the year ended March 31, 2017.
 Financial Year 2016-17 had been yet another year of achievements for your Company. With the addition of
3,845 MW capacity (including 325 MW through Subsidiary Companies) during the year, total installed capacity
of your Company (including subsidiaries & JVs) as on 31.03.2017 was 50,498 MW.
 With the commissioning of 660 MW of Solapur Thermal, 245 MW of Mandsaur Solar, 18 MW of Rojmal Wind and 250
MW of BRBCL (subsidiary of NTPC) after 31.03.2017, group capacity of your Company has become 51,671 as on
31.07.2017.
 Major highlights for the year 2016-17 are:
 -    Power projects of 3,845 MW were commissioned.
 -    Declared 2,190 MW Power Projects on commercial generation including 510 MW of Solar Projects.
 -    PLF of 78.59% as against all India PLF of 59.88% with two stations of your Company recording more than
90% PLF. Three stations of your Company achieved top three position and 11 stations (including JV) are in top
25 stations of the country in terms of PLF.
 -    Excellent MOU rating by Government of India for the year 2015-16.
 -    Group Capital Expenditure (CAPEX) including CAPEX of JV/subsidiaries of NTPC for the year 2016-17 was
Rs.33,991 crore.
 -    100% realization of current bills from customers.
 -    Revenue from operations was Rs.78,273.44 crore and total revenue was Rs.79,342.30 crore. Net Profit
after Tax (PAT) was Rs.9,385.26 crore.
 -    Dividend of Rs.4.78 per share comprising interim dividend of Rs.2.61 per equity share paid in February
2017 and recommended final dividend of Rs.2.17 per equity share for the year 2016-17, subject to approval of
the shareholders.
 -    Cash contribution of Rs.5,998.36 crore to Government of India's exchequer through dividend, dividend
distribution tax and income tax in the financial year 2016-17.
 -    Market capitalization of Rs.1,36,874.64 crore as on 31.03.2017.
 -    Planted approx. 1 crore trees during 2016-17 to mitigate the GHG emissions arising out of plant
operations, thereby bringing total to about 3.2 crore planted trees till end of 31.03.2017.
 -    About 7.15 crore fly ash bricks produced by fly ash brick plants of your Company's stations, which are
being utilised in plant and township construction works.
 -    Honoured with Business Standard 'Star PSU Award'.
 -    Bestowed with India Pride Award 2016-17 for best performance in the Power Sector.
 -    Adjudged 4th among the Asian electric utilities in 2016 rankings as per Forbes Global 2000.
 -    Awarded with Dun & Bradstreet Corporate Awards 2016 for best performing Company in India in Power
Sector.
 -    Bagged Golden Peacock Award for Excellence in Training from Institute of Directors for the year 2016.
 -    NTPC has been given SCOPE Award for RTI Act 2005 Compliance at SCOPE Meritorious Awards.
 -    NTPC conferred Good Corporate Citizen Award instituted by PHD Chamber of Commerce, New Delhi.
 You will appreciate the fact that the company ecorded growth and excellent performance despite numerous
challenges before the sector. 
 1. FINANCIAL RESULTS (STAND ALONE)
 Particulars	2016-17	2015-16	
 	Rs. Crore	US $ MnRs. CroreUS $ Mn*			
 Revenue					
 Revenue from operations (including energy sales, consultancy, energy consumed
internally)	78,273.44	11,908.33	70,843.81	10,778.00	
 Other income	1,068.86	162.61	1,165.35	177.29	
 Total Revenue	79,342.30	12,070.94	72,009.16	10,955.29	
 Expenses					
 Fuel	47,572.19	7,237.52	43,798.59	6,663.41	
 Employee benefits expense	4,324.60	657.93	3,581.65	544.90	
 Finance costs	3,597.20	547.27	3,296.41	501.51	
 Depreciation, amortization and impairment expense	5,920.82	900.78	5,172.34	786.91	
 Other expenses	5,092.38	774.74	5,576.49	848.39	
 Total expenses	66,507.19	10,118.24	61,425.48	9,345.12	
 Profit before exceptional items, tax and rate regulated activities	12,835.11	1,952.70	10,583.68	1,610.17	
 Add: Movements in Regulatory deferral account balances	335.74	51.08	12.09	1.84	
 Profit before exceptional items and tax	13,170.85	2,003.78	10,595.77	1,612.01	
 Exceptional items - impairment loss on investment	782.95	119.12	-	-	
 Profit before tax	12,387.90	1,884.66	10,595.77	1,612.01	
 Tax expense	3,002.64	456.81	(173.83)	(26.45)	
 Profit for the year	9,385.26	1,427.85	10,769.60	1,638.46	
 
 Appropriations:	2016-17	2015-16	
 	Rs. Crore	US $ Mn*	Rs. Crore	US $ Mn*	
 Transfer to bonds/ debentures redemption reserve	1,667.08	253.63	1,284.13	195.36	
 Transfer to general reserve	4,500.00	684.62	6,000.00	912.83	
 Dividend paid	3,595.03	546.94	2,762.24	420.24	
 Tax on dividend paid	727.79	110.72	562.32	85.55	
 
 1US $= '65.73 as on March 31, 2017 
 2.    DIVIDEND
 Interim and Final Dividend:
 Your company paid interim dividend of Rs. 2.61 per equity share in February 2017 and the Board of your
Company have recommended a final dividend of Rs. 2.17 per equity share for the year 2016-17. With this, the
total dividend for the year is Rs. 4.78 per equity share of Rs. 10/- each. In the year 201516, the total
dividend paid was Rs. 3.35 per equity share of Rs. 10/- each.
 The dividend payout is 42% and the total dividend payout including dividend tax is 50.54% 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 Dividend Distribution Policy which is
available at the website link .
 3.    OPERATIONAL PERFORMANCE
 During the year, the power stations of your Company generated 250.31 BUs (276.77 BUs including JVs &
Subsidiaries) of electricity (including solar and hydro power) which was 20.20% (22.40% including generation
by JVs and Subsidiaries) of the total power generated in India registering an increase of 3.44% (5.07%
including JVs & Subsidiaries) over the previous years generation of 241.98 BUs. Generation contributed by
Koldam hydro station and NTPC solar power stations were 3.23 BUs and 0.528 BUs respectively.
 The total generation contributed by coal stations is 237.96 BUs during the year against generation of 230.64
BUs last year registering a growth of 3.18%. Generation from coal based units could have been still higher but
due to less generation schedule, there was opportunity loss of 41.25 BUs. The coal based stations operated at
average Plant Load Factor (PLF) of 78.59% (All India PLF 59.88%) and average Availability Factor of 88.81% on
bus bar during the year.
 For 2nd year in succession, 3 NTPC Stations were ranked as the Top 3 stations in the country and 11 NTPC
Stations were in top 25 stations in the country in terms of PLF. 6 coal based stations out of 18 commercial
Stations achieved more than 85% PLF.
 The gas stations having a capacity of 4,017 MW achieved annual generation of 8.59 BUs at a PLF of 24.42% as
against 8.87 BUs last year, mainly due to less generation schedule which accounted for an opportunity loss of
24.48 BUs.
 4.    COMMERCIAL PERFORMANCE
 4.1 Billing and Realisation:
 Your Company has realized 100% of its current bills raised for energy supplied in 2016-17, thus achieving
this feat for the 14th consecutive year.
 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 Credit (LCs) at 105% of
the average monthly billing.
 The Company has in place a robust payment security mechanism in the form of Letter of Credit (LCs) backed by
the Tri-Partite Agreement (TPA). Apart from the LCs, payment of NTPC is secured by the TPAs signed amongst the
State Governments, Govt. of India and Reserve Bank of India (RBI). As per the TPA, any default in payment by
the Distribution Companies of a state can be recovered directly from the account of the respective State
Governments with RBI.
 The original TPAs signed during 2000-01 were valid upto 31.10.2016. As per the decision of the Union Cabinet
and as agreed by the various States and RBI, these TPAs have been extended for a further period of 10 to 15
years. As of now 26 States/ UTs have signed the TPA documents. The signing process is in progress in the
balance states.
 4.2    Rebate Scheme for realization of dues:
 In order to encourage early and full realization of dues, your Company has issued 'Rebate Scheme' for the
year 2017-18. In the Scheme for 2017-18, 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.
 4.3    Commercial Capacity:
 The following units including that of subsidiary companies were declared commercial during the year 2016-17,
adding 2,190 MW to commercial capacity of your Company:
 Project/ unit	Capacity (MW)	COD*	
 NTPC units- Coal Based (I)	
 Bongaigaon, Unit#1	250	01.04.2016	
 Mouda, Stage-II, Unit#1	660	01.02.2017	
 Total (I)	910		
 NTPC Units - Solar (II)	
 Ananthapur Solar	200	09.05.2016	
 Ananthapur Solar	50	10.08.2016	
 Bhadla Solar Project	260	25.03.2017	
 Total (II)	510		
 Subsidiaries - Coal Based (III)	
 Patratu Thermal Power Station, Unit#1(PVUNL)**	325	01.04.2016	
 Nabinagar Thermal Power Project, Unit#1 (BRBCL)	250	15.01.2017	
 
 Muzaffarpur Thermal Power Station, Stage-II, Unit#1 (KBUNL)	195	18.03.2017	
 Total (III)	770		
 Total Capacity declared	2,190		
 commercial during			
 2016-17 (I)+(II)+(III)			
 * COD- Commercial Operation Date
 **as per PTPS Transfer Scheme, 2015 dated 01.04.2016, Government of Jharkhand has transferred specified
assets of Patratu Thermal Power Station to Patratu Vidyut Utpadan Nigam Limited (subsidiary of NTPC)
 As on 31.03.2017, the Commercial Capacity of NTPC stood at 40,522 MW and NTPC Group's Commercial Capacity
stood at 47,293 MW.
 In 2017-18, 195 MW of Muzaffarpur Thermal Power Station (subsidiary of NTPC i.e. KBUNL) and 800 MW of Kudgi
Super Thermal Project had been declared commercial making commercial capacity of NTPC Group as on 31.07.2017
as 48,288 MW:
 Owned by NTPC	MW	
 Coal based projects	35,885	
 Gas based projects	4,017	
 Renewable Energy Projects	620	
 Hydro Projects	800	
 Sub-total	41,322	
 Joint Ventures & Subsidiaries		
 Coal based projects	4,999	
 Gas based projects	1,967	
 Sub-total	6,966	
 Total	48,288	
 4.4 Tariff Related Matters:
 In the year 2016-17, your Company had been able to reduce the Energy Charge Rate significantly through
various measures such as reduced consumption of imported coal, rationalization of coal transportation across
its various stations.
 Hearings for determination of tariff for the 2014-19 period for various stations were completed and tariff
orders were issued for most of the stations.
 4.5    Strengthening Customer Relationship:
 Your Company's Core Values - ICOMIT contains 'Customer Focus' as one of the key elements. In line with this,
your Company has taken up several initiatives targeted towards the external Customers. Customer Relationship
Management (CRM) and Customer Satisfaction Index (CSI) are some of the most important parts of these
initiatives.
 As part of the CRM, your Company has been implementing several structured activities with the objective of
sharing its experiences and best practices with the customers, capturing their feedbacks and expectations and
addressing their issues. Some of these activities included providing various support services to the
beneficiaries, which involves identifying potential areas of cooperation and sharing of each others' best
practices. In the financial year 2016-17, a total of 61 such programmes have been conducted for the customers
on the basis of requirement expressed by them.
 Your Company offers training programs to the representatives of beneficiary companies at Power Management
Institute (PMI), the apex training institute of Company on free of cost basis. In 2016-17, 134 participants
from various customer organizations attended training in 71 programs.
 Your Company has also put in place Customer Satisfaction Index (CSI) survey scheme, to gather customer's
feedbacks through a survey and respond to their requirements. This CSI survey was conducted in 2016-17.
 4.6    UDAY Scheme:
 As part of the UDAY Scheme, your Company has been entrusted with the responsibility to help and guide the
state generating companies to improve their operational efficiency and reduce the cost of generation. With
this objective, workshops were conducted by your Company with representatives of Generating Companies of
various states. Multidisciplinary teams from your Company have also visited power stations at 12 states and
suggested measures to improve efficiency in these plants.
 4.7    Power Trading in Power Exchange:
 In line with provisions of amended Tariff Policy, your Company has commenced trading of the UnRequisitioned
Surplus (URS) power in the Power Exchange through its trading arm NTPC Vidyut Vyapar Nigam Limited
(wholly-owned subsidiary) from June 2016. As per the amended Tariff Policy, gains from these transactions
have to be shared in the ratio of 50:50 with the beneficiaries whose URS power is sold.
 5. INSTALLED CAPACITY
 During the year 2016-17, your Company added 3,845 MW to its installed capacity as per details given below:
 Project/ unit installed	Capacity (MW)	
 NTPC owned	
 Coal Based Power Projects	
 Kudgi, Unit#1 and 2	1,600	
 Bongaigaon, Unit#2	250	
 Mouda, Unit#4	660	
 Unchahar, Unit#6	500	
 Total NTPC owned	3,010	
 Solar Based Power Projects	
 Bhadla	260	
 Ananthapur Solar	250	
 Total NTPC Owned	510	
 under Subsidiaries (Coal Based Power Projects)	
 Patratu (subsidiary of NTPC in JV with JBVNL)	325	
 Total by Subsidiaries	325	
 Total Addition during FY 2016-17	3,845	
 With above capacity addition during 2016-17, capacity added in 12th Plan Period was 13,395 MW.
 The total installed capacity of NTPC Group as on 31.03.2017 has become 50,498 MW (46,653 MW as on
31.03.2016) as tabulated below:
 Owned by NTPC	MW	
 Coal based projects	38,095	
 Gas based projects	4,017	
 Renewable Energy Projects	620	
 Hydro Projects	800	
 Sub-total	43,532	
 Joint Ventures & Subsidiaries		
 Coal based projects	4,999	
 Gas based projects	1,967	
 Sub-total	6,966	
 Total	50,498	
 With the commissioning of 660 MW of Solapur Thermal, 245 MW of Mandsaur Solar, 18 MW of Rojmal Wind and 250
MW of BRBCL (subsidiary of your Company) after 31.03.2017, installed capacity of your Company has become
51,671 MW as on 31.07.2017.
 6. CORPORATE PLAN 2032
 Due to changes in the business environment, regulatory and environment norms and emergence of renewable
energy combined with technological breakthroughs, your Company has reviewed and has prepared its Long Term
Corporate Plan to set the goals & targets for the period up to 2032. Through this Corporate Plan, the Company
has adopted the vision to be the world's leading power company, energizing India's growth.
 Commensurate with India's growth aspirations, your company has embarked upon an ambitious plan to attain a
total installed capacity of 130 GW and annual generation of more than 600 BU by 2032. The capacity will have
a diversified fuel mix comprising 65.4% coal, 4.6% gas, 1.5% nuclear and 28.5% Renewable Energy Sources (RES)
including hydro. Therefore, by 2032, non-fossil fuel based generation capacity shall make up nearly 30% of
NTPC's portfolio.
 Besides pursuing its strategic targets, your company is also likely to replace its old & inefficient units
with technologically advanced, efficient and environmentally compliant units by 2032, in a phased manner.
 Your company has been allotted 10 coal blocks with a peak production capacity of more than 100 MTPA. With
these coal blocks, the company envisages being one of the largest captive coal mining companies in the
Country fulfilling about one third of its own coal requirement by 2030.
 Your company would continue pursuing the power trading business in India as well as with the neighboring
countries increasing its market share in the region through its wholly-owned subsidiary 'NTPC Vidyut Vyapar
Nigam Ltd'.
 Going forward, your company envisages enhancing its current presence in the ancillary and consultancy
services. It is also planning to make a foray into E-mobility and battery storage, supported by research &
development and collaboration with OEMs, research institutes etc.
 7    CAPACITY ADDITION PROGRAMME
 7.1 Projects under Implementation
 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.
 Your Company's various projects having aggregate capacity of 19,656 MW (including 4,090 MW being undertaken
by Joint Venture and subsidiary companies) are under implementation at 22 locations across length and breadth
of the country as on 31.07.2017. This includes 18,800 MW through Coal based projects, 45 MW through Renewable
Energy projects including Small Hydro project of 8 MW and 811 MW through Hydro capacity. Apart from these
projects, your company is also implementing 1,320 MW coal based power projects in joint venture with BPDB at
Bangladesh. The details of such projects are as under:
 Ongoing Projects as on 31.07.2017	
 	Capacity (MW)	
 I. NTPC owned:	
 A. Coal Based Projects	
 1. Bongaigaon, Assam	250	
 2. Barh-I, Bihar	1,980	
 3. Lara-I, Chattisgarh	1,600	
 4. North Karanpura, Jharkhand	1,980	
 5. Kudgi-I, Karnataka	800	
 6. Gadarwara-I, Madhya Pradesh	1,600	
 7. Solapur, Maharashtra	660	
 8. Darlipalli-I, Odisha	1,600	
 9. Tanda-II, Uttar Pradesh	1,320	
 10. Khargone, Madhya Pradesh	1,320	
 11. Telangana Phase-I, Telangana	1,600	
 Sub Total (A)	14,710	
 B. Hydro Electric Power Projects (HEPP)	
 12. Tapovan Vishnugad, Uttarakhand	520	
 13. Lata Tapovan, Uttarakhand@	171	
 14. Rammam Hydro, West Bengal	120	
 Sub Total (B)	811	
 C. Renewable Projects (Solar/Small Hydro)	
 15. Singrauli Small Hydro	8	
 16. Mandsaur SPV, Madhya Pradesh	5	
 17. Rojmal Wind	32	
 Sub Total (C)	45	
 Total I (A)+(B)+(C)	15,566	
 
 II Projects under JVs & Subsidiaries	
 Coal Based Projects	
 18. Nabinagar-JV with Railways (BRBCL), Bihar	500	
 19. Nabinagar, JV with BSPGCL (NPGCL), Bihar	1,980	
 20. Meja, JV with UPRVUNL (MUNPL), Uttar Pradesh	1,320	
 21. Rourkela, JV with SAIL (NSPCL), Odisha	250	
 22. Durgapur, JV with SAIL (NSPCL), West Bengal	40	
 23. Khulna, JV with BPDB (BIFPCL), Bangladesh	1,320	
 Total II	5,410	
 III Total On-Going Projects as on 31.07.2017 (I)+(II)	20,976	
 @Work of Lata Tapovan HEPP stopped since 07.05.2014 as per orders of the Hon'ble Supreme Court.
 7.2    New Projects
 Your Company awarded 1st Wind power project at Rojmal (50 MW) during the Financial Year 2016-17. The tender
for Flue Gas Desulphurisation (FGD) for Telengana Project is under bidding stage.
 As on 14.07.2017, your Company has projects for 3,720 MW Thermal capacity (Patratu 2,400 MW & Talcher-III
1,320 MW) and 1,276.5 MW Renewable capacity (Pavagada, Karnataka 1,000 MW Solar PV; Andaman 25 MW Solar PV
with Battery backup; Kudgi Roof Top Solar PV of 1.5 MW & 250 MW Wind Project) 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 efficiency.
 With emphasis on efficiency of electricity generation, your Company has adopted ultra super critical
technology by improving the steam parameters for North Karanpura (3X660 MW) to 260 kg/ cm2, 593oC/ 593 C.
For Khargone (2X660 MW) 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.
 For the first time in your Company, Air Cooled Condenser System has been adopted at North Karanpura STPP,
which has led to a significant reduction in make-up water requirement for the project.
 Your Company has gone ahead for utility slab grid interactive Battery Energy Storage System for solar plant
output smoothening (intermittences due to closed effect) and energy time shift application at Port Blair,
Andaman & Nicobar (A&N). This is your Company's contribution towards greening the Islands. Your Company is
taking up solar projects of 25 MW capacity at Port Blair, A&N Islands. This is first large scale commercial
project for critical application for sustainability of Solar project at A&N.
 Pilot project for Biomass co-firing
 Your company is planning to install biomass cofiring facility as a pilot project at its Dadri station to
partially substitute the coal by carbon neutral crop residues obtained from agricultural fields in form of
pellets/briquettes. This is intended to cut down carbon emissions and also to discourage crop residue burning
by farmers after harvesting by adding economic value to the crop residue and providing extra income to farmers
and employment in rural sector.
 Hybrid solar thermal plant
 Your Company has awarded a project for Solar Thermal Integration with the existing coal based unit at Dadri
during the financial year 2016-17. The project is under construction and is expected to be commissioned this
year. The expected peak electrical output contribution from the plant would be about 3.6 MW.
 This shall result in coal savings of around 3,825 Tonnes/year and in CO2 emissions reduction of around 4,060
Tonnes/year.
 Development of Advanced 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, 710 C/720o C. Phase-I (R&D phase-I) of the project is already approved by Government of
India.
 Environment Protection
 Your Company, as pioneer in Environment monitoring, has already installed Ambient Air Quality Monitoring
Systems (AAQMS) employing NOx, SOx, CO, SPM & RSPM analysers in 20 operating stations in 2009-10 and data is
being 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.
 Your Company is working to install additional air and water pollution control systems at various projects to
comply with the applicable new environmental norms notified by MOEF&CC vide gazette notification dated
07.12.2015.
 Your Company has already tendered (Under Lot-1A) on 30.06.2017 for installation of Flue Gas
De-Sulphurisation System Package for 11 Projects of total 17,440 mW capacity in order to meet SO2 emission
limits as per New Environmental Norms. Your Company has also tendered on 30.06.2017 for installation of Waste
to Energy (WtE) System Package for 400 tpd capacity to be located at Badarpur, New Delhi.
 7.3.1 Energy Conservation, Technology Absorption and Foreign Exchange Earnings and Outgo Details of
conservation of energy, technology absorption and Foreign Exchange Earnings and Outgo in accordance with
section 134(3)(m) of the Companies Act, 2013 read with Companies (Accounts) Rules, 2014 forms part of this
report as Annex-III.
 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 abroad.
 The information of Indian Subsidiaries and JV Companies along with details of partners of joint ventures
engaged in power generation is given below:
 Name of Company	JV Partner(s)	Details	
 KBuNL	Bihar State	A subsidiary Company	
 (Kanti Bijlee	Power	in which your	
 Utpadan	Generation	company holds 65%	
 Nigam Ltd.)	Company	shares in joint venture	
 	Limited	with BSPGCL (erstwhile	
 	(erstwhile	BSEB), took over	
 	BSEB)	Muzaffarpur Thermal Power Station having 2 units of 110 MW each from BSEB. Both the units of Stage-I
have been declared on commercial operation. Total generation in FY 2016-17 was 769.88 MU at 38.63 % PLF. The
Company has also taken up expansion of the project by 2X195 MW units. Unit#3 of Stage-II was declared
commercial on 18.03.2017 and Unit#4 of Stage-II was declared commercial on 01.07.2017.	
 BRBCL	Ministry of	A subsidiary of your	
 (Bhartiya	Railways	company in joint	
 Rail Bijlee		venture with Ministry	
 Company		of Railways with	
 Ltd.)		equity contribution in the ratio of 74:26 respectively for setting up power project of 1000 MW (4X250
MW) capacity at Nabinagar in Bihar. Unit#1 of 250 MW was declared commercial on 15.01.2017 and Unit#2 was
commissioned on 03.04.2017. Construction activities in other units are in progress.	
 
 NSPCL	Steel	A 50:50 Joint Venture	
 (NTPC-SAIL	Authority	Company between	
 Power Co.	of India Ltd.	your company and	
 Ltd.) (now	(SAIL)	SAIL, owns and	
 converted		operates captive	
 into a Public		power plants for	
 Limited		SAIL at Durgapur (120	
 Company		MW), Rourkela (120	
 from NTPC-		MW) & Bhilai (74	
 SAIL Power		MW) and Bhilai PP-III	
 Company		(2X250 MW), which	
 Private		is supplying power	
 Limited)		to SAIL, Chhattisgarh, DNH and D&D. Its present installed capacity is 814 MW. NSPCL generated
5,981.91 MU at 83.89% PLF in FY 201617 with PAF of 96.68%. Trading of URS power started from 03.08.16 at IEX.
Total 130.34 MU has been traded during the year. NSPCL has paid final dividend of Rs.10 Cr for FY 2015-16 and
interim dividend of Rs.60 Cr for FY 2016-17 to NTPC. under Implementation-New Coal based Capacity at Rourkela
PP-II Expansion (1 x 250 MW) & Durgapur PP-III (2 x 20 MW) is under construction. Solar Power Plants of 200 MW
capacity at various plant locations of SAIL is also being pursued. Solar Power Plant of 50 MW capacity at
Salem is being implemented in the first phase.	
 
 NTECL (NTPC Tamil Nadu Energy Co. Ltd.)Tamilnadu Generation and Distribution Corporation Limited (TANGEDCO)
(erstwhile TNEB)A 50:50 JVC has commissioned 3x500 MW coal based power project at Vallur, Tamilnadu. All the
units have been declared on commercial operation. Total generation of NTECL during FY 201617 was 9,211 MUs at
70.13% PLF. NTECL had made a profit of Rs.197.94 crore for FY 2016-17.			
 APCPL (Aravali Power Company Pvt. Ltd.)	Indraprastha Power Generation Company Ltd. (IPGCL) and Haryana Power
Generation Corporation Ltd. (HPGCL)	This JVC is operating 3X500 MW coal based Indira Gandhi Super Thermal
Power Project. NTPC, IPGCL and HPGCL have contributed equity in the ratio of 50:25:25. Total generation of
APCPL during FY 201617 was 5,474 MU. APCPL has paid interim dividend of Rs.66.60 crore to NTPC for FY
2016-17.	
 munpl (Meja Urja Nigam Pvt. Ltd.)	Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd. (UPRVUNL)	A 50:50 JVC is
implementing 1,320 MW (2X660 MW) coal based power project in the state of Uttar Pradesh. Construction
activities are in progress.	
 NPGCL (Nabinagar Power Generating Company Pvt.Ltd.)	Bihar State Power Generation Company Limited (erstwhile
BSEB)	A 50:50 JVC is setting up a 3x660 MW Coal based plant at Nabinagar. Construction activities are in
progress.	
 
 RGPPL (Ratnagiri Gas and Power Pvt. Ltd.)	GAIL, ICICI Bank, SBI, IDBI, Canara Bank and MSEB Holding Co.
Ltd.	Your company has a stake of 25.51%. Total 15 LNG Cargos were unloaded during FY 2016-17. PPAs have been
signed by RGPPL with Indian Railways for supply of ~500 MW for 5 years w.e.f. 01.04.2017 and Gas Supply
Agreements were signed with GAIL for supply of 1.75 MMSCMD of RLNG w.e.f. 01.04.2017 for 5 years. For the
year 2016-17, gross generation was 4,560 MUs. Pursuant to approval by RGPPL Board for demerger of power & LNG
Blocks into separate Companies, a scheme of demerger of its LNG Block into Konkan LNG Private Limited, in the
Delhi High Court on 29.07.2016 for its approval. Last hearing was held on 29.06.2017. Final order from NCLT
(before commencement of IBC Code, 2016, High Court was empowered to hear demerger petitions) is yet to
come.	
 ASHVINI	Nuclear	Your company is having	
 (Anushakti	Power	a stake of 49%. The	
 Vidhyut	Corporation	company was formed	
 Nigam Ltd.)	of India Ltd.	for setting up nuclear	
 	(NPCIL)	power project(s). Department of Atomic Energy has permitted joint venture of two CPSEs to set up
Nuclear Power Project, due to change in definition of Government Company under Atomic Energy (Amendment) Act,
2015. Currently, no activities are being taken up by the Company.	
 
 PVUNL	Jharkhand	PVUNL has been	
 (Patratu	Bijli Vitran	incorporated on	
 Vidyut	Nigam Limited	15.10.2015 as a	
 Utpadan	(JBVNL)	subsidiary of your	
 Nigam		company with 74%	
 Limited)		stake in the Company and 26% of stake held by JBVNL to acquire, establish, operate, maintain,
revive, refurbish, renovate and modernize the performing existing units of 325 MW and tie-lines, sub-stations
and main power transmission lines connected therewith and setting up of the new units. Government of Jharkhand
had issued the Notification dated 01.04.2016 for transfer of assets of Patratu Thermal Power Station to
Patratu Vidyut Utpadan Nigam Limited. Keeping in view the high cost of generation, age of the units and
difficulty in complying with the new environmental norms, operations of all existing units has been stopped
w.e.f. 24.01.2017. Steps are being taken for decommissioning of these units. For expansion units (Phase-I
3X800 MW), application for environment clearance was submitted to MOEF on 09.06.2017. Further, Deed of
Adherence was signed with Banhardi Coal Mine and bridge linkage was applied to Ministry of Coal.	
 
 Pan-Asian	Asian	Pan-Asian was	
 (Pan-Asian	Development	incorporated	
 Renewables	Bank and	to carry on the	
 Private	Kyuden	business of power	
 Limited)	International	generation through	
 	Cooperation	non-conventional/ renewable energy sources. Pan-Asian and Promoters made reasonable endeavours
to identify and induct 4*1 Investor. However, the Board of Pan-Asian in its meeting, noted that since
incorporation several efforts were made, but due to reasons beyond the control of the Board of Pan-Asian, the
New Investor could not be inducted and business operations of the Company could not be started. It was then
decided to voluntary wind-up the Company. Hon'ble High Court of Delhi, based on satisfaction accorded by the
Official Liquidator, through its Order pronounced that the Pan-Asian is hereby wound up and dissolved with
effect from the date of filing of the petition.	
 An MOU has been signed with NALCO on 16.12.2016 for revival of Gajmara Power Project and supply of power to
NALCO for captive use. A joint technical task force has been constituted for finalization of detailed
modalities.
 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 were declared commercially operational on 18.07.2015. Since then, the project is
running successfully. The generation for the financial year 2016-17 had been 3,225 MU.
 B.    Tapovan Vishnugad HEPP (4x130 MW) is on River Dhauliganga, District Chamoli (Uttarakhand). Project is
under construction with approximately 80% work completed.
 C.    Lata Tapovan HEPP (3x57 MW) is just upstream of Tapovan-Vishnugad HEPP, in District Chamoli
(Uttarakhand). 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 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 & CC and informed the Court that
Lata - Tapovan Project must be implemented. The matter is still pending in Hon'ble Supreme Court for want of
affidavit from Ministry of Water Resources.
 For National Board of Wild Life (NBWL) Clearance, for Tapovan- Vishnugad and Lata Tapovan HEPPs, the
proposal regarding redefining of Eco Sensitive Zone (ESZ) was discussed in Uttarakhand State Cabinet Meeting.
Formal proposal redefining the limits of ESZ of Nanda Devi National Park has been forwarded by Govt. of
Uttarakhand to the standing committee of NBWL on 26.07.2016. Approval of GOI is awaited.
 D.    Rammam-III HEPP (3x40MW) is situated on river Rammam in Teesta Basin, Darjeeling (West Bengal).
Construction work is in progress.
 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 development.
 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 883 MW of RE projects as on 31st July 2017 and 37 MW is
under execution. Further, NITs have been issued for 1,025 MW of Solar PV projects to be set up in the states
of A&N and Karnataka and 250 MW Wind power project in the states of Gujarat, Karnataka, Andhra Pradesh &
Madhya Pradesh.
 7.7.2 National Solar Mission:
 Your Company has been entrusted to develop 15 GW Solar PV under 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 of 3,000 MW of Solar PV capacity, PPA have been signed for 2,750 MW solar PV projects till 30th
June 2017 and for balance 250 MW, Reverse Auction has been completed. Out of this 3,000 MW, 1,380 MW Solar PV
capacity has been commissioned till 30th June 2017. The guidelines for the balance 12 GW is awaited from
MNRE.
 8. STRATEGIC DIVERSIFICATION - INCREASING SELFRELIANCE
 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 distribution.
 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, transferred and vested all
its operations, with effect from April 1, 2015, to your company.
 NESCL was incorporated for the distribution business and later started deposit and consultancy works. The
transfer and vesting of existing operations would enable a focused business approach in the area of
distribution, the objective for which NESCL was incorporated. Although currently NESCL does not have any
business operations in retail distribution, the same will be taken-up at an appropriate time when the
opportunity becomes visible.
 8.2.2    NTPC Vidyut Vyapar Nigam Limited (NVVN), a wholly-owned subsidiary, is engaged in the business of
Power trading. NVVN has a trading License under Category I (highest category).
 In the Financial Year 2016-17, NVVN achieved highest ever power trading volume of 15,861 million units (MUs)
apart from trading of Renewable Energy Certificates equivalent to 68 MUs.
 NVVN has paid dividend of Rs.30 Crore as final dividend for FY 2016-17.
 8.3 The details of other joint venture companies which are taking up activities in other business related
areas are given below:
 Name of Company	JV Partner	Activities undertaken	
 UPL (Utility Powertech Ltd.)	Reliance Infrastructure Limited	Takes up assignments of construction, erection
and supervision of business in power sector and other sectors like O&M services, Residual Life Assessment
Studies, non-conventional projects etc. UPL has paid dividend of Rs.2.5 Cr. as final dividend to NTPC for FY
2015-16.	
 NGPSL (NTPC GE Power Services Private Limited, earlier NTPC Alstom Power Services Private Limited)	GE Power
Systems GmbH	To provide R&M services for coal based power plants in India. To renovate, modernise, refurbish,
rehabilitate, upgrade, reverse engineering and component damage assessment. Also for undertaking Residual life
assessment, reengineering in India and on a project by project basis elsewhere in abroad, utilising
state-of-the-art technology. General Electric Company (GEC) on 2nd November 2015, has acquired the thermal
power, renewable power and grid business of ALSTOM, which also includes indirectly acquiring the 50%
shareholding of Alstom in NTPC-Alstom Power Services Pvt. Limited (NASL). Accordingly, Supplementary
Promoters' Agreement was signed between NTPC and GE Power Systems GmbH for inducting GE as a JV Partner in
place of ALSTOM. Also, the name of the Company was changed to NTPC GE Power Services Private Limited. R&M
including RLA work orders are under execution. NGPSL gave Rs.0.60 Cr as final dividend to NTPC for FY 15-16.
The dividend was received in FY 16-17.	
 
 EESL (Energy Efficiency Services Ltd.)	PFC, PGCIL and REC	The Company was formed for implementation of
Energy Efficiency projects and to promote energy conservation and climate change. EESL is working on Energy
Audit of Buildings, Perform Achieve Trade (PAT) scheme work and standard & leveling work of BEE, Consultancy
work, implementing Bachat Lamp Yogana anc Agricultural & Municipal Pump replacement for various State Govts.
EESL gave Rs.3.39 Cr as final dividend for FY 1516. The dividend was received in FY 16-17.	
 NHPTL	NHPC, PGCIL,	To establish a research	
 (National	DVC and CPRI	and test facility for the	
 High		power sector such as an	
 Power Test		Online High Power Test	
 Laboratory		Laboratory for short	
 Pvt. Ltd.)		circuit testing facility and other facilities as may be required for the same in the country.
Online High Power Test Laboratory has been set up at Bina, M.P. Company has declared Commercial operations of
the laboratory w.e.f 01.07.17.	
 
 NPEXNHPC, PFCThe Company was			
 (National Power	TCS, BSE, IFCI,	formed to facilitate,	
 	Meenakshi,	promote, assist, regulate	
 Exchange	DPSC	and manage nationwide	
 Ltd.)		trading of all forms of	
 		electrical energy and also to settle trades in a transparent fair and open manner. The purpose for which
NPEX was incorporated could not be achieved and in order to protect further deterioration in equity
investment, it was felt that there was no alternative available but to put NPEX into voluntary winding up,
realize assets thereof and distribute proceeds to the shareholders. Hon'ble High Court of Delhi based on
satisfaction accorded by the Official Liquidator, pronounced its Order dated May 26, 2017, that NPEX is wound
up and shall deemed to be dissolved with effect from the date of the filing of the present petition i.e. March
31, 2017.	
 NBPPL	Bharat Heavy	The Company was	
 (NTPC-BHEL	Electricals	incorporated for	
 Power	Limited	taking up activities	
 Projects Pvt.		of engineering,	
 Limited)		procurement and	
 		construction (EPC) of power plants and manufacturing of equipments. NTPC has accorded inprinciple approval
for withdrawal of NTPC from NBPPL on 28.04.2016. EPC contract awarded to NBPPL for Unchahar-Stage IV (500MW)
was commissioned on 31.03.2017. STG Trial Run of Monarchak 1X100 MW Combined Cycle Power Plant was completed
on 4th April, 2017 and CoD had been declared.	
 
 BF-NTPC (BF-NTPC Energy Systems Limited)	Bharat Forge Limited	This Company was incorporated to manufacture
castings, forgings, fittings and high pressure piping required for power projects and other industries.
However, since the project could not take off, it has been decided to wind up BF-NTPC. The proposal is
awaiting clearance from Ministry of Power.	
 TELK (Transformers and Electricals Kerala Limited)	Acquisition of 44.6% stake in TELK from Government of
Kerala on June 19, 2009	The Company deals in manufacturing and repair of Power Transformers. The Company had
a turnover of Rs.167.47 crore in FY 2016-17. NTPC has accorded inprinciple approval for withdrawal of NTPC
from TELK on 28.04.2016	
 ICVL (International Coal Ventures Private Limited)	CIL, SAIL, RINL, NMDC	ICVL was formed for acquisition of
stake in coal mines/ blocks/ companies overseas for securing coking and thermal coal supplies. In view of
lack of suitable commercially viable opportunities for thermal coal, your Company has decided to exit from
ICVL. As the Company was formed by a directive from the Government of India, approval of the Government is
awaited for exit.	
 NTPC-SCCL (NTPC-SCCL Global Ventures Private Limited)	The Singareni Collieries Company Limited	NTPC-SCCL was
formed for acquisition/ development of mines, beneficiation processing, O&M of coal/lignite blocks and selling
of coal/ lignite produced thereof. As the Company could not attain its objectives, it is under voluntary
winding up.	
 
 hurlCoal IndiaHURL was incorporated			
 (Hindustan	Limited	on 15.06.2016 to	
 Urvarak &	Indian Oil	establish and operate	
 Rasayan	Corporation	new fertilizer and	
 Limited)	Limited	chemicals complexes	
 	Fertilizer	(urea- ammonia and	
 		associated chemical	
 	Corporation of India Limited	plants) at Gorakhpur & Sindri units of FCIL and	
 	(FCIL)	Barauni unit of HFCL and	
 	Hindustan	to market its products,	
 	Fertilizer	taking into consideration	
 	Corporation	the assets of FCIL and	
 	Limited (HFCL)	HFCL at Gorakhpur, Sindri and Barauni. Pre project activities like topographic survey,
geotechnical investigation and Water availability for Gorakhpur, Sindri and Barauni project are under
progress. EIA Report was submitted for all the three projects. Tenders have been floated for EPC work of all
3 projects.	
 Your Company is looking forward to develop the charging infrastructure and run a few pilot projects to get a
foothold in this area and also to accumulate data sufficient for assessing the viability of the future
business. It is currently looking to set up electric vehicle charging infrastructure, reach an MOU with city
administrations and seek Strategic collaborations with other stakeholders in energy sector.
 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.
As per the decision of of the Board of TPCL, operation of the Company have been limited till September 2017.
 Govt. of Sri Lanka (GoSL) had issued letter of intent to Government of India for development of 500 MW LNG
based JV power project.
 9.2    Bangladesh-India Friendship Power Company Private Limited, a 50:50 joint venture Company between your
Company 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 has been awarded to BHEL. Financial closure has been achieved on 09.04.2017.
 10. CONSULTANCY SERVICES
 Consultancy Wing offers services From Concept to Commissioning and beyond.... such as in Engineering,
Operation & Maintenance Management, Project Management, Contracts & Procurement Management, Quality
Management, Training & Development, Development of coal mines, Solar power projects etc. These services have
been provided in India and abroad viz. Gulf countries, Bangladesh, Nepal, Sri Lanka and Bhutan. It is
providing Services for more than 21,000 MW capacity to external clients besides 10,090 MW of NTPC JVs.
 On international front, Consultancy Wing is providing O&M management services at Siddhirganj Peaking Power
Plant (2x120MW) in Bangladesh under a World Bank funded contract which has been progressing successfully for
last 4 years. There has been an all round improvement in terms of plant parameters due to implementation of
best practices and systems in power plant with involvement of NTPC experts.
 On the domestic front, Consultancy Wing provided Owner's Engineers Services for 2x600MW plant and is
providing Pre-award services for 1x800MW power plant of Singereni Collieries Co. Ltd. It is also providing
Owner's Engineers and Mine Development Services for Patratu Vidyut Utpadan Nigam Limited. Also executing
assignments of various clients such as UPRVUNL, NMDC, DPCC, THDC, HPGCL, OCPL and NTPC JVs towards FR/DPR
Preparation, Procurement & Inspections and other advisory services.
 Project Monitoring Services are being provided for 2x660 MW Shree Singhaji TPP Khandwa, MPPGCL by deployment
of executives at site resulting in works progressing ahead of schedule.
 Consultancy Wing is providing Performance Improvement services to 4x250 MW units of Chhabra TPS, RVUNL and
Technical support in Operation of 2x600 MW units at Shree Singaji TPS, Khandwa & HQ Jabalpur by deployment of
executives at respective sites. Major O&M Technical Audit and Performance Guarantee test assignments of HPGCL,
RVUNL, LPGCL, MAHAGENCO, PPCL, NEEPCO and DVC were taken up by Consultancy Wing.
 Highlights of FY 16-17:
 -    Consultancy Wing received orders of Rs.468.43 crore, which is highest since inception.
 -    Consultancy Wing bagged 85 nos. of orders, which is highest since inception.
 -    1310 MW capacity declared commercial for clients
 -    Chhabra Power Station of RVUNL achieved turnaround performance and moved up by 64 positions to find a
place at 24th in all India ranking.
 -    Boiler Hydro test of Unit # I (660MW) of Shree Singaji TPP was successfully completed 3 months ahead of
schedule.
 -    More than 90% availability achieved at 2X600 MW Shree Singaji TPS, Khandwa MPPGCL after commissioning
 Consultancy Wing is looking ahead for future business opportunities in areas like implementation of solar &
renewable power projects, mine development & supporting other power utilities for meeting new environmental
norms.
 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 required
borrowings. Your Company is exploring domestic as well as international borrowing options including overseas
development assistance provided by bilateral agencies to mobilize the debt required for the planned capacity
expansion program.
 The details of funding are discussed in the Management and Discussion Analysis Report which forms part of
this Report.
 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, 2013.
 The details relating to deposits, as per the Companies Act, 2013 is as under:
 (a)	Accepted during the year	Nil	
 (b)	Remained unpaid or unclaimed	6 Deposits	
 	as 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 under:
 13.1.1    Coal Supplies
 Your Company had entered into long term Fuel Supply Agreement with Coal India Limited (CIL) & The Singareni
Collieries Company Limited (SCCL) for total Annual Contracted Quantity (ACQ) of 149.93 MMT & 11.2 MMT
respectively and Bridge linkage of 4.65 MMT for Barh-II. The Company has short term MOU with SCCL for supply
of 5.5 MMT of coal for Ramagundam, Simhadri, Mouda, Solapur and Kudgi stations for supplies till March 2017
which was further extended upto 30th June 2017. Further, your Company has signed MOU with SCCL for supply of
8.0 MMT during 2017-18 to the above referred stations with the provision for additional quantity of 2.0 MMT.
Your Company & CIL jointly agreed for rationalization of Source/ ACQ of stations on 13.06.2016 by shifting of
some coal from non-pitheads to pithead stations. Annual benefit on above rationalization is envisaged at
around Rs.862 Crore.
 To leverage further potential of rationalization of coal linkages, your Company has signed a Supplementary
Agreement with CIL and its subsidiaries for all owned/ JV/ Subsidiary stations on 12.04.2017 for
implementation of Govt. policy on Flexibility in utilization of domestic coal for reducing cost of power
generation. Under the Supplementary Agreement, your Company can allocate coal to any station of its own/ JV/
Subsidiary for optimising the Energy Charges.
 Your Company was also allocated Bridge Linkages by Special SLC(LT) in its meeting held on 18.03.2016 for
NTPC stations viz. i) Barethi (4x660 MW), ii) Barh - II (2x660 MW), iii) Darlipalli - I (2x800 MW), iv)
Tanda- II (2x660 MW), v) Lara-I (2x800 MW), vi) Kudgi-I (3x800 MW) & vii) Bilhaur (2x660 MW).
 MOUs for Barh, Lara and Darlipalli have already been signed.
 13.1.2    Domestic Coal and Imported Coal
 During 2016-17, your Company received 160.4 MMT of coal as against 161.8 MMT in 2015-16 marking a decrease
of (-) 0.86%.
 Total domestic coal supply during 2016-17 was 159.35 MMT as against 152.3 MMT during 2015-16. Out of 159.35
MMT of coal, 152.17 MMT was from Annual Contracted Quantity of coal. The total coal supply from CIL was
144.33 MMT and from SCCL was 15.02 MMT. 6.78 MMT of coal was procured through MOU during 2016-17.
 During 2016-17, Company imported 1.09 MMT (including swap) of coal as against 9.7 MMT in 2015-16.
 During the period under review, approx. 52.52% coal (domestic and international) was transported through
merry-go-round of NTPC (MGR).
 13.1.3    Sourcing of coal through E-auction
 Your Company participated in special E-auction for Vindhyachal, Stage-V and Unchahar Stage-IV in the year
2016-17 and 284 rakes (Approx. 1.136 MMT) had been allotted.
 Total coal received through E-auction was 0.29 MMT during 2016-17 as compared to 0.94 MMT during 2015-16.
 13.1.4    Supply through Inland Waterways
 During 2016-17, about 3.71 lac MT imported coal has been supplied through inland waterways mode to Farakka
station under a Tripartite Agreement with IWAI and service provider.
 13.1.5    Commencement of third party Sampling, Central Institute of Mining and Fuel Research (CIMFR)
 In line with the decision made in the meeting held under the Chairmanship of Hon'ble Minister of State (I/C)
for Power, Coal & NRE on 28.10.2015 for sampling and analysis of coal at loading end, Power Utilities and Coal
companies had appointed a single third party agency, CIMFR. CIMFR has started sampling at the loading points
of all stations and JV's expect for NEC supplies to Farakka and Bongaigaon. CIMFR has also started sampling
at unloading end of all stations except Badarpur, Tanda, Bongaigaon, and Vallur, NTECL (JV of NTPC), Kanti,
BRBCL and Patratu (subsidiaries of NTPC).
 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 2016-17, your Company received total 5.17 MMSCMD of domestic gas as against 5.20 MMSCMD received
during 2015-16. RLNG off-take was Nil during 2016-17 due to non-availability of generation schedule from the
beneficiary Discoms. 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. The agreement for Non-APM gas with
GAIL is valid till 30th September 2017, which is getting extended from time to time.
 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 to 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 has been allocated eight coal blocks, namely, Pakri-Barwadih, Chatti-Bariatu &
Chatti-Bariatu(South), Kerandari, Dulanga, Talaipalli, Banai, Bhalumuda and Mandakini-B by Government of
India. In addition, Government of India has also allocated Kudanali-Luburi coal block jointly to NTPC and the
State of J&K, with NTPC's share of coal reserves in this block being two-third. Process of formation of Joint
Venture Company with the state of J&K for Kudanali-Luburi coal block is underway.
 Banhardih coal block, allocated earlier to Jharkhand Urja Utpadan Nigam Ltd., has been assigned to Patratu
Vidyut Utpadan Nigam Ltd., a subsidiary of your Company in joint venture with JBVNL.
 From these 10 coal blocks, with a total estimated geological reserves of about 7.3 Billion Metric Tonnes,
your Company expects to produce about 107 Million Metric Tonnes of coal per annum.
 Coal production commenced from Pakri-Barwadih coal block in December 2016 and a total of 2.27 lakh tonne of
coal was extracted and 28 rakes were dispatched to Barh in FY 2016-17. Further, 3.98 lakh tonne of coal was
extracted and 44 rakes were dispatched to Barh in Q1 2017-18. In this coal block, on community development /
CSR activities, your Company has incurred an expenditure of Rs.3.96 Crore in this FY 2016-17 (Cumulative
expenditure of Rs.22.29 Crore) which has helped in improving the socio-economic conditions of the locals.
 Your Company has progressed well in other coal blocks, too. Mine Developer-cum-Operator (MDO) for Dulanga
coal block has been appointed on 09.02.2017 and the same is in advanced stage for Talaipalli and
Chatti-Bariatu coal blocks. For Kerandari coal block, techno-commercial bids opened on 15.05.2017 and are
under evaluation. CIL NTPC Urja Private Limited was incorporated as 50:50 joint venture company between your
Company and Coal India Limited mainly to undertake development of Brahmini and Chichro Patsimal coal mines in
Jharkhand and subsequently their operation and maintenance. Ministry of Coal deallocated these mines in June
2011. Further, Hon'ble Supreme Court in September 2014 had cancelled allocation of 204 coal blocks including
these two blocks. So far, Brahmini and Chichro Patsimal coal blocks have not been considered for allocation/
auction.
 13.4 Exploration Activities
 In Cambay exploration block (CB-ONN-2009/5) held by your Company as Operator with 100% participating
interest, Minimum Work Programme (MWP) has been completed. No oil or gas of commercial value was observed in
any of the wells. The block was relinquished to Government of India. In the KG basin exploration block
KG-OSN-2009/4 where ONGC is the Operator and your Company has 10% stake, the exploration activities are in
progress. As the permitted area of the block for exploration was reduced because of non-grant of defence
clearance, GOI reduced the minimum work programme to drilling of one well and conduct airborne Full Tensor
Gravity Gradiometer (FTG) survey in conditionally partial cleared area. Drilling of one well was completed.
FTG survey is under progress.
 14. BUSINESS EXCELLENCE: GLOBAL BENCHMARKING
 To achieve higher levels of excellence, NTPC 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 assessment of generating stations is being
carried out using this framework of excellence.
 The assessment process is aimed at identifying the area for enhancing stakeholders' engagement, improving
critical processes and developing leadership potential.
 The outcome of this model is identification of organizational strength, opportunities for improvement,
issues of concern and best practices. In the financial year 2016-17, 21 generating stations were assessed by
a team of certified and professional assessors. Business Excellence Awards for Best Performance was given to
Vindhyachal. Contemporary quality initiative and techniques like Quality Circles, Professional Circles, 5S,
integrated management system (IMS) etc. have been deployed across the organization for continuous
improvement.
 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.14,275.93 crore. As against this, cumulative expenditure till 31.03.2017 is
Rs.6,272.84 crore. Out of this, R&M capital expenditure in the financial year 2016-17 was Rs.592.53 crore.
 With a view to remove technological obsolescence, renovation of control & instrumentation (C&I) had been
taken up in 9 stations at Singrauli - I (5X200 MW) & Singrauli - II (2X500 MW), Korba - I (3X200 MW) & Korba
- II (3X500 MW), Ramagundam - I (3X200 MW) & Ramagundam - II (3X500 MW), Farakka-II (2X500 MW), Dadri Thermal
- I (4X210 MW), Unchahar- I (2X210 MW), Talcher STPS-I (2X500 MW), Kahalgaon-I (4X210 MW) and Rihand - (2X500
MW) comprising a total of 35 units. During 2016-17, C&I R&M was completed in one 500 MW unit of Singrauli and
one 210 MW unit of Kahalgaon. DDCMIS R&M was completed in 26 units. On completion of these schemes, C&I
systems in these stations have now been brought nearly at par with the new builds. Owing to very high
operating temperatures, R&M of Gas Turbines including their Control & Instrumentation was recommended by OEM
after around 15 years of life. This activity was completed in all 4 Gas Turbines (GT) each in Kawas and in
Auraiya and all 3 GTs in Gandhar. To overcome obsolescence, R&M activity for C&I Systems of all modules of
gT, ST & WHRB in Anta, Auraiya and for one module of Dadri gas has been completed.
 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 maintaining a clean atmosphere in and around the power
plant by reduction of 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
(5X200 MW+2X500 MW), Farakka-I (3X200 MW), Unchahar-I (2X210 MW), Korba-I & II (3X200 MW+3X500 MW),
Vindhyachal-I & II (6X210 MW+2X500 MW), Talcher STPS -I & II (2X500 MW+4X500 MW) and Talcher TPS-II (2X110
MW). During 2016-17, ESP R&M of two units of 210 MW and one unit of 500 MW of Korba, one unit each of
Unchahar (210 MW), Vindhyachal (500 MW) and Rihand (500 MW) has been completed. Renovation of ESP has been
ordered for Farakka (2x500 MW) while the same is in advanced stage of ordering in case of Unchahar (2x210
MW), Kahalgaon (4x210 MW) and Ramagundam (3x200 MW).
 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 overall Man-MW ratio
for the year 2016-17 excluding JV/subsidiary capacity is 0.51 and 0.47 including capacity of JVs/
Subsidiaries. Generation per employee was 12.16 MUs during the year based on generation of your Company's
stations.
 The total employee strength of the Company (including JVs/ subsidiaries) stood at 22,124 as on 31.3.2017
against 23,133 as on 31.3.2016.
 	FY 2016-17	FY 2015-16	
 NTPC			
 Number of employees	20,593	21,633	
 Subsidiaries & Joint Ventures		
 Employees of NTPC in Subsidiaries & Joint Ventures	1,531	1,500	
 Total employees	22,124	23,133	
 The attrition rate of NTPC executives during the year was 0.93%.
 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 overall 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 Ministry of Home Affairs. 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
 Your Company has consistently endeavored for attracting, on-boarding, grooming and motivating its talent
recognising that nurturing the talent leads to competitive advantage.
 In this process, your Company has always endeavored 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 learning and development programs for its employees. A large number of professionals from other
organizations in the power sector have also benefitted immensely from the learning and development programs of
your Company. It is not surprising to see many organisations in the country adopting practices and systems
developed by your Company.
 Our quest to keep the Company in tune with emerging business challenges is reflected in our new tagline for
learning Learning@speed of business.
 The learning activities are being driven by a comprehensive infrastructure comprising NTPC Power Management
Institute (PMI) at the corporate level, six Regional Learning Institutes (RLIs) located strategically in six
large power stations of NTPC and Employee Development Centers (EDCs) located at almost all power projects and
stations. At the foundation of the learning structure of your Company are the EDCs. The EDCs take care of
training requirements of non-executives and junior level executives at the projects and stations. The
training requirements of middle and senior level executives are catered to by RLIs at regional level and PMI,
Noida at the corporate center as the apex learning center.
 Together, the PMI, six RLIs and large number of EDCs form a strong learning grid covering the entire human
resource 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 and learning domains ranging from mining to distribution.
 Initiatives taken by PMI:
 (i)    Learning and Development (L&D) interventions are designed and delivered after a multidimensional
Training Need Analysis (TNA) focussed on enhancing technical, functional, strategic and leadership skills.
Additionally, there are specific Planned Learning Interventions after about 7, 13 and 20 years of working in
the Company which groom executives for the next level. In 2016-17, total 14 such planned interventions were
carried for middle and senior level managers.
 (ii)    During 2016-17, PMI conducted almost 387 training programmes covering nearly 8,096 professionals,
logging a total of approximately 30,898 training mandays.
 (iii)    PMI has also taken a learning initiative to develop a Project Analytics based learning module with
an aim to bring paradigm change in Project Planning, Monitoring and Control. It will focus on creating single
integrated dynamic Project Analytic System to facilitate active task management, measurement of progress,
course correction and faster decision making for on-time project delivery.
 (iv)    Conducted about 34 training programs through Web conferencing platform at workstations during
2016-17.
 (v)    Launching the Harvard Managementor e-learning modules with 2000 licenses, which will be made
available to middle level executives across the company.
 (vi)    Has been pioneer to start an Employee Assistance Program, a confidential expert counselling service
for employees and their family members.
 (vii)    Started NTPC PMI eminent speaker series, in which eminent speakers from India and abroad are
invited for delivering half day sessions on subjects like innovation, leadership, environment, water
conservation, health and wellness, strategy etc. for top management and employees of your Company. This
program is also telecasted live to all the projects, stations and offices of your Company across the
country.
 (viii)    PMI has conducted several customized training programs for the benefit of State utilities (like
Himachal Pradesh, Punjab, Rajasthan and Uttar Pradesh), PSEs (like PFC, REC, THDC, EESL, DVC etc.), private
sector companies (Adani, ICICI, Siemens, GE India Power etc.) and overseas based clients (Abu Dhabi, UAE) at
their locations as well as in PMI.
 (ix)    With the objective of grooming professionals into world class leaders in power sector, your Company
has also opened the NTPC School of Business for running the flagship program titled Executive
Post-Graduate Diploma in Management (EPGDM). The program is duly approved by AICTE and is being administered
at PMI premises. This 15 months' course has been launched with the objective of fulfilling the demand for
professionals with focused domain expertise in their business and also having a general management
perspective, in the rapidly growing power and energy sectors. This rigorous and challenging program also
includes learning inputs from international faculty, 2 weeks' international exposure at Nanyang Technical
University, Singapore, and exposure to industries within and outside India. 1st batch, which started on
03.08.2015, had completed the course successfully and 2nd batch is undergoing the course.
 (x)    As the nodal agency, PMI is facilitating the adoption of existing Government ITIs and setting up of
new ITIs in different parts of the country spanning 16 States. Till now, your Company has adopted 18 ITIs and
set up 8 new ITIs near its power stations, thus associating with total 26 ITIs. Of the 18 Govt. ITIs adopted
by your Company, 15 ITIs were adopted under the PPP scheme of GoI and 3 ITIs have been adopted under
bilateral agreement with different State governments. These initiatives by your Company resulted in creation
of total 1,831 new seats by starting of new trades/units in the adopted and new ITIs. Cumulatively, a total
of 29,109 students benefitted from this initiative till 31.03.2017. For these ITI students, your Company
organised 49,559 mandays of industrial training/plant visits.
 (xi)    PMI has also been nominated to conduct focused capacity building programs for executives of several
Discoms in the country under the IPDS (Integrated Power Development Scheme) of Govt of India. This capacity
building mission aims at improving the skills and performance of Discoms, thus improving a vital link of the
power value chain which also helps your Company immensely because these Discoms are our valued customers.
 17. SUSTAINABLE DEVELOPMENT 
 Your Company has adopted the 'triple bottom-line' approach recognizing 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 the Company's performance. It has served
as an important management tool helping your Company to relook the systems, policies and procedures.
 Your Company has developed a policy and in accordance with it, a Sustainable Development Plan was prepared
for FY 2016-17. 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
include plantation of 10 million trees, installation of 310 kw rooftop of Solar PV at NTPC Dadri on public
utilities buildings and on schools, Sewage treatment plant at Amarkantak, studies on impact assessment and
carrying capacity river basin. Major activities under bio-diversity conservation taken up are conservation of
Olive Ridley sea Turtles and study on bio-productivity of Gangetic Dolphin at NTPC Kahalgaon.
 Business Responsibility Report is attached as Annex-X and forms part of the Annual Report
 Revenue expenditure of Rs.35.33 Crore was incurred on these SD projects during Financial Year 2016-17.
 17.1    Inclusive Growth - Initiatives for Social Growth
 17.1.1    Corporate Social Responsibility:
 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 your Company's CSR & Sustainability activities are Health, Sanitation, Drinking Water,
Education, Capacity Building, Women Empowerment, Social Infrastructure Development, support to Physically
Challenged Person (PCPs), and activities contributing towards Environment Sustainability.
 During the year, more than 400 villages and more than 360 schools have been benefitted by your Company's
various CSR initiatives at different locations. These CSR initiatives have touched the lives of around 10
lakh people in one or the other way, residing at remote locations.
 During 2016-17, special thrust had been given to the Clean Water and Sanitation, with an objective to
provide adequate and equitable drinking water & sanitation and hygiene to the people around your Company's
operations and to end open defecation through construction of individual, cluster and community toilets
enabling a clean, safe, healthy, livable and sustainable city.
 Your Company spent Rs.277.81 crore during the financial year 2016-17 towards CSR initiatives, which
surpassed the prescribed two percent amount of Rs.227.85 crore, thus achieving a CSR spend of 2.43%.
 17.1.2    NTPC Foundation
 NTPC Foundation, funded by your Company, 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 line with its social
objectives, the Company has focused on effective resettlement and rehabilitation (R&R) of PAPs and also on
community development works in and around its projects.
 R&R activities are initiated at projects by undertaking need based community development activities in the
area of health, education, water, capacity building, infrastructure etc. by formulating 'Initial Community
Development (ICD) Plan' in consultation with concerned Panchayat, district administration and opinion makers
of the locality. Your 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 Panchayats, NTPC and District Administration. R&R Plan consists of measures for rehabilitation,
resettlement and need based community development (CD) activities.
 R&R Plan is implemented in a time bound manner so as to complete its implementation by the time the project
is commissioned. On completion of the R&R Plan implementation, a Social Impact Evaluation (SIE) is conducted
by a professional agency to know the efficacy of R&R Plan implementation for future learnings.
 17.1.4 R&R achievements during the year:
 -    Initial Community Development (ICD) Plan:
 Implementation of earlier approved ICD activities continued at Bilhaur and Pudimadaka projects.
 -    Rehabilitation and Resettlement (R&R) Plan:
 -    R&R Plan for Khargone Railway siding 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. CD Plan for Telangana Phase-I also approved. R&R Plan provisions
for Tanda-II project enhanced to take care of additional requirements for resettlement of PAPs.
 -    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-II, Unchahar-IV, Vallur, Vindhyachal-IV, Vindhyachal-V, Hydro projects at
Koldam, Tapovan Vishnugad, Rammam-III and Coal Mining Projects at Pakri-Barwadih, Chhatti-Bariatu, Kerendari,
Dulanga and Talaipali where R&R / CD Plans were finalized in consultation and participation of the
stakeholders and approved earlier as well as at Telangana where the CD Plan has been approved during the
year. Reappropriation of under implementation R&R / CD Plans as required on a case to case basis for specific
projects was also approved to take care of the local requirements during implementation.
 -    Socio-economic Survey (SES)/ Need assessment Survey (NAS)/ Census and Survey (C&S):
 SIA for Pudimadaka (earlier Lalam Koduru) project was conducted as per requirement.
 -    Focus areas for Community Development activities:
 -    Swachh Bharat Abhiyan - Various initiatives were taken to make project affected villages open
defecation free by taking up activities related to construction of individual toilets and awareness
programmes.
 -    Drinking water - Planning and implementation for access to drinking water for 100% coverage of all
project affected villages of your Company's projects under construction is being undertaken.
 -    Capacity building / Skill upgradation-MOU / Tie up with National Skill Development Corporation (NSDC)
is
 being implemented for imparting skill development to PAPs at various projects as part of 'National Skill
Development Mission' of GOI.
 -    Education - Construction activities started for Medical College at Sundargarh (Odisha) and Engineering
College at Shivpuri (MP). MOU signed with Govt. of Odisha for setting up a Polytechnic at Sundargarh
(Odisha).
 -    Health - For the benefits of project affected persons and neighbouring population 'Mobile Health
Clinic', Medical camps and dispensaries are being operated for comprehensive health coverage of PAPs at North
Karanpura and mining projects at Jharkhand 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 and management practices as one of its prime
responsibilities and focuses its efforts to minimize the impact of its operation on surrounding environment.
 Your Company is undertaking massive renovation & modernization to upgrade air pollution equipments to reduce
SPM emissions well below current statutory limits. 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.
It has adopted advanced and high efficiency technologies such as super critical boilers at new stations and
upcoming green field projects.
 Your Company is augmenting its capacity by installing solar power systems in a big way and small hydel power
systems attached to its thermal power stations, wherever possible, so as to encourage garnering of renewable
energy resources. 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 upcoming 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,
new technology i.e. MEEP (Moving Electrode Electrostatic Precipitators) 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. NOx control in coal fired plants is
presently 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.
 For compliance of new norms, pilot study based on SCR/SNCR technology are being undertaken at 11 locations
to find out the optimal solution and suitable technology for DENOx system.
 For control of SOx, first FGD has been commissioned at Vindhyachal. Erection of FGD at Bongaigaon is in
advance stage.
 Fugitive emission from ash pond is controlled by maintaining water cover, 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 by your Company 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), Coal Settlement Pit (CHP), 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. For effective
monitoring of water use, flow meters with integrators are being installed at all designated stations. All
these measures have resulted in reduction of effluent discharge from the power plants of your Company. In
view of water stressed scenario and new norms for specific water consumption, water conservation and
reduction in water consumption per unit of generation has assumed great importance. Your Company has taken a
proactive approach of making all its power stations to operate with ZLD (Zero liquid discharge) progressively
in phases. ZLD at six power plants have already been completed during this fiscal year. Further, ZLD is
planned in all other stations during the current year.
 17.2.3    Automation of environment measurement system: All the power stations are equipped with continuous
ambient air quality monitoring stations (AAQMS) to capture the real time data of PM 10, PM 2.5, SO2, 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 units on real time basis 24x7 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. The real-time data is being transmitted to
regulators through the cloud server and alerts are being generated in case of excursions beyond the limits.
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:
 MOEF&CC vide notification dated 7th December, 2015, has stipulated the emission limits for Oxides of
Nitrogen (NOx), Sulphur dioxide (SO2) and Mercury also and made stringent norms for particulate matter. The
emission limits of these elements depend on the unit size and age of the units and shall be complied by 7th
December, 2017 for all operating units. Various issues due to implementation of revised norms, including
relaxation in time period for implementation, has been taken up with MOEF&CC.
 Your company is designing its new plants to comply with new norms. Parallely various actions are being taken
up for operating units and under construction units for meeting revised norms. Your company has already
undertaken extensive R&M of ESPs for complying emission limit of particulate matter. For meeting SO2 emission
limit, First set of tenders for installation of Flue Gas De-sulphurisation (FGD) has been issued for 54 units
of around 33GW. Selective catalytic reduction (SCR) will be required for controlling of NOx for which Pilot
test studies are being undertaken at various NTPC operating stations to check the suitability of SCR
technology for high ash and abrasive ash. Once the technology for DeNOx is established, which is expected by
Mid-2018, tendering for implementation for NOx control with SCR will be taken up.
 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 32 million trees have been planted throughout the country including 10 million trees planted
during 2016-17 under accelerated afforestation programme.
 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 during 2016-2026 @ 1
million trees per year across the country.
 17.2.6    ISO 14001 & OHSAS 18001 Certification:
 All stations of your Company 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 IEC 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 nine
projects in CDM foray. 8 MW Small Hydro Power Project at Singrauli, three 5 MW solar PV projects at Dadri,
Port Blair (Andaman & Nicobar) & Faridabad, 50 MW Solar PV project at Rajgarh (MP) & 10 MW Solar PV Project
at Unchahar had already been registered with UNFCCC CDM Executive Board with estimated annual Certified
Emission Reductions (CERs) potential of approx. 1,57,000. Another three Solar PV projects i.e. 15 MW
Singrauli (UP), 10 MW Talcher (Odisha) & 10 MW Ramagundam (Telangana) are in advanced stage of registration.
 17.5    Ash utilisation
 During the year 2016-17, 50.58% viz. 295.69 lakh tonnes (52.38% viz 335.1 lac tonnes including JV &
Subsidiaries) 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 Utilization 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 2016-17 from your
Company's Stations is at Annex VIII.
 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 43.7 million tonnes 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, draft
power consumption, efficiency improvement through overhauling are monitored. PI based real time programs and
dashboards are in use for real time tracking of plant parameters. These programs also assist operating
engineers in tracking the gaps in heat rate and auxiliary power consumption and trending the degradation of
equipment performance.
 CenPEEP is also working towards reduction in specific water consumption and auxiliary power consumption in
coal and gas stations. A dedicated group CEETEM - Centre for Energy Efficient Technology & Energy Management,
conducts regular Energy audits to identify potential improvement areas and improvement actions. CenPEEP is
actively involved in training and development of power professionals for the Company and other utilities in
the power sector in the areas of Boiler & Auxiliaries, Turbine & Auxiliaries, Cooling Towers, RCM and PdM
technologies etc. CenPEEP coordinated implementation of Perform, Achieve & Trade (PAT) scheme under Prime
Minister's National Mission on Enhanced Energy Efficiency (NMEEE) in your Company coal & gas plants. As per
notification, Company's coal and gas stations exceeded the Net Heat Rate improvement targets and earned net
170653 EScerts (Energy saving certificates) in PAT-1 cycle. CenPEEP is taking up benchmarking study for your
Company coal station by EPRI. Performance & Guarantee tests are being coordinated by CenPEEP which includes
approval of procedure, conducting test & its evaluation.
 18. NETRA
 Your Company, as the leading power utility of the country, has been assigning a minimum of 1% of its PAT for
R&D activities.
 Your Company has focused its research efforts to address the major concerns of the sector as well as the
future 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. NETRA also provides Advanced Scientific Services to its stations and other utilities in the area
of oil/water chemistry, environment, electrical, Rotor dynamics etc. for efficient performances.
 Research Advisory Council (RAC) of NETRA comprising 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.
 Initiatives are taken to develop technologies for reducing forced outages, installing intelligent online
monitoring of critical components, understanding the likely damages due to corrosion and providing
appropriate solutions etc. Effort is being made for reducing cost of generation by either increasing the
overhaul cycle or reducing overhaul duration through correct and proper health assessment of critical
components, developing diagnostic tools and ensuring environmental & safety compliances. The prime thrust is
towards clean and economic power generation. Patents have been filed in the areas of climate change, waste
management etc. NETRA has collaborations with National Institutes like I IT's, IISc-Bangalore, C-DAC, NML,
CSIR labs, IOCL R&D, CPRI, CINFR, CBRI Roorkee and Geological Survey of India, etc. to promote research in
the field of CFD, Flow batteries, Renewable, environment, water chemistry, ash utilization, process
development, etc.
 NETRA is setting up Solar Thermal & PV Labs under the aegis of Indo German R&D co-operation. Projects on
improvement in the ESP performance through CFD modeling has been undertaken with Excellence Enhance Centre
(EEC), VGB Germany. NETRA is also a member of EPRI USA.
 NETRA laboratories are ISO 17025 accredited and provide high end scientific services to all the stations of
your Company as well as many other utilities. NETRA NDT laboratory is also recognized as Remnant Life
Assessment Organization under the Boiler Board Regulations,1950.
 Phase-II NETRA infrastructure is under construction with approx. 21,000 sq m floor area and is expected to
be completed by 2018. Phase-II will have 30 laboratories, workshop, pilot plant bay and an auditorium with
seating capacity of 400 persons.
 The details of activities undertaken by NETRA are given in Annex-III.
 19.    IMPLEMENTATION OF OFFICIAL LANGUAGE
 Several initiatives were taken for the progressive use of Hindi in day to day official work and
implementation of Official Language policy of the union of India in your Company. The compliance of Official
Language policy in our projects and regional headquarters was inspected and need based suggestions were given
to the respective Heads of offices in this regard.
 Quarterly meeting of Official Language Implementation Committee were held under the chairmanship of CMD &
Director (HR), in which extensive discussions took place on the use of Hindi and the ways and means to bring
about further improvements.
 Hindi Divas was celebrated on 14th September 2016 and Hindi Fortnight was organised from 01-15 September,
2016 at Corporate Centre as well as regional headquarters and projects to create awareness among the
employees, associates and their family members. Vidyut Swar, our biannual Hindi magazine was published to
promote creative writing in Hindi. Annual conference of Hindi Officers organised to review the progress of
Rajbhasha in your Company.
 Employees were motivated to use Hindi in official work by organising Hindi workshop, Unicode Hindi Computer
Training and Hindi incentive schemes. Hindi webpage was updated with important information of Rajbhasha for
employees.
 The second sub-committee of Parliament on official Language had inspected our units and Headquarters;
reviewed the progress of Rajbhasha implementation and appreciated our efforts.
 Your Company's website also has a facility of operating in bilingual form, in Hindi as well as in English.
 20.    VIGILANCE
 20.1 Vigilance Mechanism
 Your Company ensures transparency, objectivity and quality of decision making in its operations, and to
monitor the same, the Company has a Vigilance Department headed by Chief Vigilance Officer, a nominee of
Central Vigilance Commission. Vigilance set up comprises 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.
 344 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 one Independent External Monitor 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 demands. During 2016-17, 117
complaints were handled, out of which 71 complaints were carried to a logical conclusion and the remaining 46
complaints are under various stages of investigation. Appropriate disciplinary action has also been initiated
wherever necessary.
 20.4    Vigilance Awareness Week and Workshops
 During 2016-17, 11 preventive vigilance workshops were conducted at various projects/ places in which 477
employees participated. Vigilance Awareness Week was observed from October 31, 2016 to November 5, 2016 in
all the projects and stations/ establishments of your Company.
 The focus of Vigilance Awareness Week was Public Participation in Promoting Integrity and eradicating
Corruption. 72,380 pamphlets were distributed containing Citizens Pledge in bilingual at all locations of
Projects and Regional Headquarters all over the country. 45 links were provided for e-pledges to be placed on
intranets of all projects/Subsidiaries and Joint Ventures. 32 workshop/sensitization programmes were conducted
at various locations of Projects and Regional Headquarters. A total no. of 165 competitions (debates, quiz
etc.) held for employees and families at various locations of Projects and Regional Headquarters all over the
country were conducted.
 Outreach activities were conducted in 48 Colleges/Universities in 17 States in which 3,297 no. of students
participated. Similarly, outreach activities were conducted in 127 schools in 17 states in which 11,922
students participated. 19 Customer Grievance Redressal Camps were organized at Projects in which vendors
concerns and suggestions were discussed and noted. Use of Social Media, Facebook, Twitter & LinkedIn were
made for the purpose.
 21.    REDRESSAL OF PUBLIC GRIEVANCES
 Your Company is committed for resolution of public grievance in efficient and time bound manner. ED (Human
Resources) 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 its 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 2016-17, 1,580 applications were received under the RTI Act, 2005 out of which 1,496 applications
were replied to, till 31.03.2017.
 23.    USING INFORMATION AND COMMUNICATION TECHNOLOGY FOR PRODUCTIVITY ENHANCEMENT
 Your Company is leveraging Information Technology in its goal of sustainable growth in business. Since 2008,
your Company has implemented Enterprise Resource Planning (ERP) application to integrate all its business
functions to improve information availability, transparency and decision making. PI data system has been
developed to capture, display and analyze the plant performance parameters on real time basis. Non-ERP
applications areas are Engineering Drawings approval, Quality Control Management, Hospital Management,
Transit Camp Management, RTI, Security Control etc.
 The Stations projects and Offices across India, are connected to Corporate Office and main Data-centre (DC)
through 2x12 mbps MPLS links to facilitate seamless communication. The DC and DR (Disaster Recovery) site is
connected with 156 mbps MPLS links for data backup. The progress of ongoing projects and issues of the
running power stations are discussed regularly over high definition Video Conferencing system at Project
Monitoring Centre of Corporate Office. Dashboards for top management (REDs, Heads of Projects) were developed
and deployment of the same is in progress. Some of the highlights of the progress in IT/ERP area during the
year 2016-17 are as follows: ERP Hardware Refresh - The Hardware refresh of both ERP Data centre and Disaster
Recovery Centre was carried out. Your Company also built and commissioned its own Disaster Recovery Centre.
The Company was awarded with Data Centre Transformation award at Indian Express IT meet. The availability of
ERP and DR set up was more than 99.9% during the year.
 ERP - The Employee Self Service Portal was launched on Internet. A number of new processes such as
commercial billing as per 2014-19 tariff, Coal mining, FGD, third party coal sampling, Self Booking Travel
interface with Balmer Lawrie, PMS for all etc. were developed in ERP.
 Paperless Office - In an effort towards 'Go Green' initiative, a number of processes like e-MB, Telephone
claim, Travel Claim, Probation clearance etc. were made paperless. Tender has been initiated for Enterprise
Content Management to go for 100% digitization across the organization. Board Agenda is being e-mailed to the
Board Members in encrypted form through an in-house software.
 Security - No major security breach was observed during the year 2016-17. A 24x7 Security Operation
Centre(SOC) is in operation where round the clock monitoring of all external and internal data traffic is
being analyzed with latest tools monitored through SOC and latest threat management tools are being applied
to prevent any cyberattack or data theft. Timely communication is being sent to all users based on threat
perception. The IT security Audit for plants have been completed.
 Mobile Apps - Emphasis is being given for digital communication in place of paper communication. A number of
mobile apps have been developed for ease in communication.
 Vendor Bill Tracking Portal - Online Vendor Bill Tracking Portal was developed and deployed for bill
submission and bill tracking by the vendors. Other Vendor Portals are also in operation to facilitate for
registration and bidding.
 24. NTPC GROUP: SUBSIDIARIES AND JOINT VENTURES
 Your Company has currently 5 subsidiary companies and 18 joint venture companies for undertaking specific
business activities.
 Besides 18 joint venture companies detail of which is elsewhere in this Report, National Power Exchange
Limited and Pan-Asian Renewables Private Limited have been wound up by the Order of Hon'ble High Court.
 NTPC-SCCL Global Ventures Private Limited is also being wound up voluntarily. In view of lack of suitable
commercially viable opportunities for thermal coal, your Company has decided to exit from International Coal
Ventures Private Limited.
 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.
 25. INFORMATION PURSUANT TO STATUTORY AND OTHER REQUIREMENTS
 Information required to be furnished as per the Companies Act, 2013 and as per SEBI (Listing Obligations &
Disclosure Requirements) Regulations, 2015 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 2016-17 were (i) M/s T R Chadha & Co LLP, Chartered Accountants,
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 LLP, Chartered Accountants, Kolkata.
 The appointment of the same Statutory Auditors for the financial year 2017-18 has also 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 2016-17. However, they have drawn attention under 'Emphasis of Matter' to Note No. 37 (a)
& (b) regarding billing & recognition of sales on provisional basis and measurement of GCV of coal on 'as
received' basis after secondary crusher till 30th September 2016 and GCV measured on wagon top at the
unloading point w.e.f. 1st October 2016 in respect of most of the stations pending disposal of petition by
CERC and ratification by Hon'ble Delhi High Court and related matters as mentioned in the said note; Note
No.47 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; and Note No. 60 regarding recognition of an impairment loss of
Rs.782.95 crore in respect of investment in joint venture Ratnagiri Gas & Power Private Limited (RGPPL) as
'Exceptional items - impairment loss on investment' in the Statement of Profit and Loss based on recoverable
amount of these investments arrived at by an independent expert after considering the proposed demerger
scheme awaiting approval of NCLT, New Delhi.
 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 (C&AG)
 The Comptroller & Auditor General of India, through letter dated 14.07.2017, has given 'NIL' Comments on the
Standalone Financial Statements of your Company for the year ended 31st March 2017 after conducting
supplementary audit under Section 143 (6) (a) of the Companies Act, 2013.
 The Comptroller & Auditor General of India, through letter dated 24.07.2017, has also given 'NIL' Comments
on the Consolidated Financial Statements of your Company for the year ended 31st March 2017 after conducting
supplementary audit under Section 143 (6) (a) read with Section 129 (4) of the Companies Act, 2013.
 As advised by the Office of the Comptroller & Auditor General of India (C&AG), the comments of C&AG for both
the stand-alone and consolidated financial statements of your Company for the year ended 31st March 2017 are
being 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 2016-17 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 R.J. Goel & Co., Delhi.
 The due date for filing consolidated Cost Audit Report in XBRL format for the financial year ended March 31,
2016 was September 30, 2016 and the consolidated Cost Audit Report for your Company was filed with the Central
Government on September 28, 2016.
 The Cost Audit Report for the financial year ended March 31, 2017 shall be filed within the prescribed time
period under the Companies (Cost Records & Audit) Rules, 2014.
 25.5    Exchange Risk Management
 Your 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 2016-17, your Company has entered into
derivative contracts amounting to USD 101 million equivalent in different currencies in respect of foreign
currency loans exposure.
 25.6    Performance Evaluation of the Directors and the Board
 Ministry of Corporate Affairs (MCA), through General Circular dated 5th June, 2015, has exempted Government
Companies from the provisions of Section 178 (2) of the Companies Act, 2013 which requires performance
evaluation of every director by the Nomination & Remuneration Committee. The aforesaid circular of MCA
further exempted listed Govt. Companies from provisions of Section 134 (3) (p) of the Companies Act, 2013
which requires mentioning the manner of formal evaluation of its own performance by the Board and that of its
Committees and Individual Director in Board's Report, if directors are evaluated by the Ministry or Department
of the Central Government which is administratively in charge of the company, or, as the case may be, the
State Government as per its own evaluation methodology.
 Now, MCA, through Notification dated 05.07.2017, has amended Schedule IV to the Companies Act, 2013 with
respect to performance evaluation of directors of the Government Companies that in case of matters of
performance evaluation are specified by the concerned Ministries or Departments of the Central Government or
as the case may be, the State Governments and such requirements are complied with by the Government
companies, such provisions of Schedule IV are exempt for the Government Companies.
 Further, Deptt. of Public Enterprises (DPE) has already laid down a mechanism for performance appraisal of
all functional directors. Your Company enters into Memorandum of Understanding (MOU) with Government of India
each year, demarcating key performance parameters for the Company. The performance of the Company and Board of
Directors are evaluated by the Department of Public Enterprises vis-a-vis MOU entered into with the Government
of India.
 Similar exemption has been requested from SEBI under the SEBI LODR, which is under consideration.
 25.7    Secretarial Audit
 The Board has appointed M/s Agarwal S. & Associates, Company Secretaries, to conduct Secretarial Audit for
the financial year 2016-17. The Secretarial Audit Report for the financial year ended March 31, 2017 is
annexed herewith marked as Annexure XI to this Report.
 The Management's Comments on Secretarial Audit Report are as under:
 Observations	Management's Comments	
 Compliance of Regulation 17(1) of the Securities and Exchange Board of India (Listing Obligations &
Disclosure Requirements) Regulations, 2015 and Clause 3.1.4 of the DPE Guidelines on Corporate Governance for
Central Public Sector Enterprises w.r.t.  appointment of requisite no. Of  Independent Directors on the Board
of the Company.	As per Regulation 17(1) of SEBI LODR Regulations, 2015 and DPE Guidelines on Corporate
Governance for CPSEs, the Company should have nine Independent Directors since Company has seven functional
Directors including the Chairman & Managing Director and two Government Nominee Directors on its Board. At
present, Company has three Independent Directors in position. Being a Government Company, the power to
appoint the Directors on the Board of the Company vests with the President of India and accordingly, the
Company is, from time to time, requesting Ministry of Power to appoint requisite number of Independent
Directors on its Board.	
 Compliance of Regulation 17(10) & 25(4) of Securities and Exchange Board of India (Listing Obligations  and
Disclosure Requirements) Regulations, 2015, the Company has not carried out the performance evaluation of the
Directors.	Refer Para 25.6	
 		
 		
 		
 		
 		
 		
 		
 		
 		
 		
 		
 		
 		
 		
 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 your Company's interests.
 Web-link for Policy on Materiality of Related Party Transactions & also on Dealing with Related Party
Transactions has been provided in the Report on Corporate Governance, which forms part of the Annual Report.
 25.9    Significant and material orders passed by the regulators or courts or tribunals impacting the going
concern status and company's operations in future: NIL
 25.10    Adequacy of internal financial controls with reference to the financial reporting:
 The Company has in place adequate internal financial controls with reference to financial reporting. During
the year, such controls were tested and no reportable material weakness in the design or operation was
observed.
 25.11    Loans and Investments
 Details of Investments covered under the provisions of Section 186 of the Companies Act, 2013 forms part of
financial statement, attached as a separate section in the Annual Report for FY 2016-17.
 Your Company had granted loans to its subsidiaries namely, Patratu Vidyut Utpadan Nigam Limited (PVUNL) and
Kanti Bijlee Utpadan Nigam Limited (KBUNL) during 2016-17 covered under Section 185 and 186 of the Companies
Act, 2013. The details of loans granted to PVUNL and KBUNL is given in Note - 57 of Standalone Financial
Statements for 2016-17.
 25.12    Prevention, Prohibition and Redressal of Sexual Harassment of Women at Workplace
 Your 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 2016-17.
 Your Company has been conducting gender sensitization workshops for building a collaborative and safe work
culture across the organisation. 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 behaviour at the workplace.
During 2016-17, PMI has conducted nine such workshops across the organization covering about 200 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 2016-17 was Rs.1,019.06* crore, which was 25.61% of total annual procurement of Rs.3,978.40* crore
against target of 20% of total procurement made by your Company.
 The total procurement made from MSEs owned by SC/ST entrepreneurs during the year 2016-17 was Rs.15.59*
crore, which was 0.39% against the target of 4% of total procurement value.
 *It excludes Primary fuel, Secondary fuel, Steel & Cement, the Project procurement including R&M packages
and procurement from OEM, OES & PAC sources.
 Your Company orgainsed 15 vendor development programmes for MSEs. 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 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' Report.
 However, as per notification dated 5th June, 2015 issued by the Ministry of Corporate Affairs, Government
Companies are exempted from complying with provisions of Section 197 of the Companies Act, 2013. Therefore,
such particulars have not been included as part of Directors' Report.
 25.15    Extract of Annual Return:
 Extract of Annual Return of the Company is annexed herewith as Annexure VI to this Report.
 25.16    Information on Number of Meetings of the Board held during the year, composition of committees of
the Board and their meetings held during the year, establishment of vigil mechanism/ whistle blower policy
and web-links for familiarization/ training policy of directors, Policy on Materiality of Related Party
Transactions and also on Dealing with Related Party Transactions and Policy for determining 'Material'
Subsidiaries have been provided in the Report on Corporate Governance, which forms part of the Directors
Report at Annex-II.
 25.17    Para on development of risk management policy including therein the elements of risks are given
elsewhere in the Annual Report.
 25.18    No disclosure or reporting is required in respect of the following items as there were no
transactions on these items during the year under review:
 1.    Issue of equity shares with differential rights as to dividend, voting or otherwise.
 2.    Issue of shares (including sweat equity shares) to employees of the Company under any scheme.
 The particulars of annexures forming part of this report are as under:
 Particulars	Annexure	
 Management Discussion & Analysis	I	
 Report on Corporate Governance	II	
 Information on conservation of energy, technology absorption and foreign exchange earnings and outgo	III	
 Statistical information on persons belonging to Scheduled Caste / Scheduled Tribe categories	IV	
 Information on Differently Abled persons	V	
 Extract of Annual Return	VI	
 Annual Report on CSR Activities	VII	
 Project Wise Ash Utilisation	VIII	
 Disclosure of Related Party Transactions in Form AOC-2	IX	
 Business Responsibility Report for the year 2016-17	X	
 Secretarial Audit Report in Form MR-3	XI	
 26.    BOARD OF DIRECTORS & KEY MANAGERIAL PERSONNEL
 Shri Seethapathy Chander had been appointed as Independent Director w.e.f. 22.06.2016 for a period of three
years.
 On completion of three years' tenure, Shri Prashant Mehta has ceased to be Independent Director of the
Company w.e.f. 29.07.2016 (A/N).
 Shri U.P. Pani ceased to be Director (Human Resources) of the Company w.e.f. 31.10.2016 on attaining the age
of superannuation.
 Shri Saptarshi Roy, Executive Director had taken over the charge as Director (Human Resources) of the
Company w.e.f. 01.11.2016.
 Shri Anand Kumar Gupta, Executive Director had taken over the charge as Director (Commercial) of the Company
w.e.f. 03.02.2017.
 Shri A.K. Rastogi, Executive Director & Company Secretary separated from NTPC Limited w.e.f. 28.02.2017
after taking pre-mature retirement. Shri K.P Gupta, Executive Director took over the charge as Company
Secretary on 22.03.2017.
 The Board wishes to place on record its deep appreciation for the valuable services rendered by Shri
Prashant Mehta, Shri U.P. Pani and Shri A.K. Rastogi 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 K.K. Sharma, Director shall retire by rotation at the Annual General Meeting of your
Company and, being eligible, offers himself 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 201617 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 irregularities;
 4.    the Directors had prepared the Annual Accounts on a going concern basis;
 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.
 28. ACKNOWLEDGEMENT
 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 India.
 The Directors of your Company also convey their gratitude to the shareholders, various international and
Indian Banks and Financial Institutions for the confidence reposed by them in the Company.
 The Board also appreciates the contribution of contractors, vendors and consultants in the implementation of
various projects of the Company.
 We also acknowledge the constructive suggestions received from the Office of Comptroller & Auditor General
of India and Statutory Auditors.
 We wish to place on record our appreciation for the untiring efforts and contributions made by the employees
at all levels to ensure that the company continues to grow and excel.
                                                                                         For and on behalf of
the Board of Directors
                                                                                                             
                      (Gurdeep Singh) 
                                                                                                           
Chairman & Managing Director 
 Place: New Delhi                                                                                            
            DIN: 00307037
 Date: 4th August, 2017
 
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