Dear Members,
 
 The Directors are pleased to present the Twenty-Third Annual Report of
 the Company for the year ended March 31, 2011 along with the Audited
 Statement of Accounts, Report of Auditors and Comments of the
 Comptroller and Auditor General of India.
 
 The following financial highlights for the year ending 31 st March 2011
 witnesses the performance of your company.
 
 1.  FINANCIAL HIGHLIGHTS
 
                                                          (Rs. in crore)
 
                                                  2010-11    2009-10
 INCOME
 
 Net Sales after adjustments                      1812.67    1769.74
 
 Other Income                                      143.15     138.99
 
 Total Income                                     1955.82    1908.73
 
 EXPENDITURE
 
 Generation, Admn., & Other Exp                    201.83     178.10
 
 Depreciation                                      444.21     433.28
 
 Provisions & write back                            (0.21)     (1.29)
 
 Interest and Finance charges                      158.37     172.93
 
 Expenditure before prior period                   804.20     783.02
 
 Prior Period Adjustment                            (4.58)    108.24
 
 Total Expenditure                                 799.62     891.26
 
 Profit Before Tax                                1156.20    1017.47
 
 Provision for Tax                                 244.07      44.73
 
 Profit After Tax                                  912.13     972.74
 
 Appropriations
 
 Interim dividend paid                                nil      80.00
 
 Proposed Dividend                                 330.93     248.20
 
 Tax on dividend                                    53.69      54.82
 
 Total Dividend incl Tax                           384.62     383.02
 
 2.  GENERATION
 
 During the year ending 31st March 2011, 7140.205 MUs of power was
 generated as compared to the previous year''s generation of 7018.81 MUs.
 The designenergy for the NJHPS is 6612 MUs. Plant availability factor
 was 97.996% which has since been revised by NRPC against representation
 of your Company to 98.318% in June 2011. The normative Capacity index
 was 82%. As a result of efficient planning, systematic operation and
 maintenance management, the company earned an incentive of Rs.216.02
 crore. The annual machines maintenance time has been brought down to
 8.43 days against 10 days last year.
 
 3.  DIVIDEND
 
 The Company earned a net profit after tax of Rs.912.13 crore during the
 year ascomparedto profit after tax of previousyearofRs.972.74crore.  Your
 Directors had recommended a dividend of Rs.330.93 crore as against
 dividend of Rs.328.20 crore for the previous year. The dividend shall be
 paid after your approval. The declared dividend per equity share comes
 to Rs.0.80 as against Rs.0.79 during previous year.
 
 4.  PROJECTS UNDER EXECUTION 
 
 4.1 RAMPUR PROJECT (412 MW)
 
 The Project has taken a major leap in terms of progress in all fronts
 since our last Report. Breakthrough blast between HRT Kajo Upstream and
 HRT Spill Tunnel Downstream has daylighted 7831 m of HRT in a
 continuous stretch. As of now, total Heading of 13668 m (90%), Benching
 of 7438 m (49%) and Lining of 4111 m (27%) has been done.  The
 excavation in critical reach between Goshai upstream and Kasholi
 downstream, is progressing well. The HRT in all respects including
 plugging of adits shall be completed by April 2013.  The construction
 activities are now mainly focused in Power House and its appurtenant
 structures and these activities are as per schedule.  The Surge Shaft
 excavation is complete and lining is in progress with 31% completion as
 on date. The excavation of Pressure Shafts (03 nos) is complete and
 fabrication and erection of liner is in progress. Erection activity of
 all the 06 nos. generating units has been taken up with 50% completion
 of Unit I & 6. About 35% supplies of various electro- mechanical
 components have been received at site. The cumulative expenditure till
 March 2011 was Rs.1127.52 crores.  
 
 5.  PROJECTS UNDERSURVEY AND INVESTIGATION
 
 5.1 ARUN-IH PROJECT(900MW)
 
 The project is a run-off the river scheme located on Arun River in
 Sankhuwasabha Distt. of Eastern Nepal. Survey and Investigation work
 was completed in January 2011. Final DPR was submitted to CEA in March
 2011. As regards Environmental clearance from the Ministry of
 Environment, Govt, of Nepal, SJVN has submitted Scoping document and
 Terms of Reference to the Govt, of Nepal. Action is being taken on the
 observations of Govt, of Nepal. Detailed Agreement for Implementation
 of the project is under negotiation with the Govt, of Nepal. The award
 of major civil works is expected in June 2012 with a construction
 period of 5 years.
 
 For evacuating power from the project, detailed survey for laying 400
 KV D/C transmission line from Diding (Power House) to Dhalkebar in
 Nepal and upto Muzzaffarpur in India using modern techniques is in
 progress.
 
 5.2 LUHRI PROJECT (775 MW)
 
 DPR was submitted to CEA in March 2011 which is under examination by
 CEA for accord of TEC. EIA/EMP studies concluded in February 2011.
 Action in respect of Environmental clearance, Forest clearance,
 Acquisition of land for the project etc. has been initiated.
 
 5.3 DHAULASIDH PROJECT (66 MW)
 
 The DPR for 66 MW was submitted to the Government of Himachal Pradesh
 and the Government accorded TEC on 25th June 2011. The estimated cost
 of Project is Rs.497.70 crores approx at November 2010 price level. On
 commissioning, the project shall generate 247 million units in a 90%
 dependable year. EIA/EMP studies for the project have been submitted to
 State Pollution Control Board for conducting public hearing. Action for
 diversion of forest land and acquisition of land for development of
 infrastructural facilities is in process. The construction period of
 the project will be 54 months.
 
 5.4 UTTARAKHAND PROJECTS
 
 Devsari HEP is Run of River (RoR) scheme with installed capacity of 252
 MW. The RoR scheme was cleared by Govt, of Uttarakhand in Oct., 2007.
 The project will generate 913.43 MU of energy in a 90% dependable year.
 Final DPR has been submitted to CEA in June 2010.  Final EIA/EMP report
 has been submitted to MoEF in March, 2011 and project was considered by
 Expert Advisory Committee (EAC) of MoEF in April, 2011 for accord of
 environment clearance. Notification under Section-IV of LA-Act has been
 issued for acquisition of private land. At present, the TEC, private
 land acquisition, forest land diversion, environment clearance, mining
 clearance etc., are in advance stage of their approval. The major civil
 works are likely to be awarded by Oct., 2012 with execution period of 5
 years.
 
 Naitwar Mori HEP, capacity at the time of allocation was 33 MW. After
 detailed survey and investigation, the project installed capacity has
 been revised to 60 MW with annual energy generation of 261.08 MU in a
 90% dependable year. TEC for 60 MW has been accorded by Govt.  of
 Uttarakhand in March, 2010. The estimated cost of Project is Rs.449.78
 crores at Feb 2009 price level. The project has been accorded wild life
 clearance by NBWL in April, 2011. The ToR for the revised capacity of
 the project were approved by the MoEF in July, 2010 and after public
 hearing, final EIA/EMP report has been submitted to MoEF in June, 2011
 for accord of environment clearance. Notification under Section-VI & IX
 of LA-Act has been issued for acquisition of private land. At present,
 the process of land acquisition, environment clearance, forest land
 diversion and mining clearance are at advance stage of approval. Major
 Civil works are likely to be awarded by Jan./Feb., 2012 with 48 months
 completion period of the project.  Jakhol Sankri HEP, capacity at the
 time of allocation was 33 MW which, after detailed survey and
 investigation, has been revised to 51 MW with generation capacity of
 219.99 MU in a 90% dependable year. The DPR has been submitted to Govt,
 of Uttarakhand in Dec, 2010 for TEC. The ToR for EIA/EMP studies for
 the revised capacity of the project have been approved by MoEF in Jan.,
 2011. At present, the process of EIA/EMP studies, private land
 acquisition, forest land diversion, wild life clearance from NBWL,
 mining clearance etc., are in progress. The TEC for the DPR is under
 consideration by the Govt.  of Uttarakhand.
 
 6.  PROJECTS UNDER CONSULTANCY
 
 6.1 PROJECTS1N BHUTAN
 
 The Ministry of Power, Govt, of India, entrusted the work of
 preparation of DPR of Kholongchhu Hydro Electric Project (486 MW) and
 work of updation of Wangchhu Hydropower project (900 MW) to your
 Company.
 
 Survey and Investigation for DPR in respect of Kholongchu HEP was
 completed in February 2011 and Final DPR with revised installed
 capacity of 600 MW was submitted to CEA and Royal Government of Bhutan
 on 30th June 2011. EIA&EMP Studies are in progress.
 
 As regards Wangchhu project, the scheme was revised from 900 MW storage
 scheme to 600 MW ROR and the revised proposal was agreed by CEA. Survey
 and Investigation for the revised scheme is in progress.
 
 7.  PROJECTS UNDER JOINT VENTURE
 
 7.1 T1PAIMUKH H.E.PROJECT (1500MW),MANIPUR
 
 Govt, of Manipur (GOM), SJVN and NHPC limited have signed a MoU on
 28.4.2010 to implement the multipurpose project, namely, the Tipaimukh
 Hydro Electric (Multipurpose) Project having an installed capacity of
 1500 Megawatts to be located at Manipur-Mizoram border, downstream of
 the confluence of the river Barak with Tuivai, in Churachandpur
 District of Manipur through a Joint Venture Company among the GoM, SJVN
 and NHPC. The NHPC shall have the share of 69%, SJVN shal I have a
 share of 26% and GoM shall have a share of 5% of the total share
 holding in the JVC. Implementation of the MoU will be monitored by a
 committee comprising of a representative each from Ministry of Power,
 Govt, of India, GoM, SJVN and NHPC.
 
 8.  CURRENT PERFORMANCE 2011-12
 
 For the quarter ending 30th June 2011, the power generated was 2650.53
 MUs (previous year: 2424.57 MU) as against the target of 2287 MUs. The
 total Income recorded was Rs.553.57 crore as against Rs.524.98 crore for
 the corresponding quarter of the previous year.
 
 9.  ENVIRONMENT
 
 Towards this end, your company launched a comprehensive environment
 management plan of Rs.35.85 crore and Rs.45.52 crore in NJHEP and RHEP
 respectively. Asum of Rs.27.96 crore and about Rs.37.67 crore in NJHEP&RHEP
 were spent so far.
 
 In recognition of the efforts on environmental activities, your company
 was in receipt of Awards for the year 2009-10 from Greentech
 Foundation, New Delhi.
 
 10.  Resettlement and Rehabilitation
 
 SJVN, being conscious of its responsibilities towards society, is
 committed to execute and operate Hydro Electrical Projects in a
 socially responsible manner through laid down Resettlement and
 Rehabilitation measures for the project affected people. To ensure
 sustainable development, your company recognizes the fundamental rights
 and corporate social responsibilities that its business has towards the
 sustainable existence of the communities within which it operates.  To
 fulfil these responsibilities, apart from various R&R works as per its
 policy, SJVN is implementing various infrastructural and community
 development works in NJHPS and RHEP with recurring annual budget plans
 of Rs.1.5 crore and Rs. 2.5 crore respectively. Following the spirit of R&R
 policy and Corporate Social Responsibility SJVN spent Rs.5.098 crore in
 NJHPS and RHEP during FY 2010-11. Your R&R, Area Development and CSR
 works in NJHPS and RHEP since beginning to as on date becomes Rs. 105.56
 crore.
 
 In addition to the above, an amount of Rs. 0.094 crore was released for
 State Institute of Engineering & Technology in Pragatinagar, Gumma,
 Distt. Shimla against the proposed amount of Rs. 15 crore during FY
 2010-11. This year, your company approved financial assistance of Rs.2.0
 crore for adoption of two ITIs in HP. The fund is proposed to be
 released during FY 2011-12. The company also extended financial
 assistance of Rs. 0.5 crore to Uttarakhand government for rehabilitation
 of affected people due to natural calamities like heavy rains and
 floods etc. during FY 2010-11.
 
 11.  HUMAN RESOURCES
 
 The total manpower (excluding deputationists) on the rolls of SJVN was
 1203 as on 31st March 2011 as against 1088 as on 31st March 2010.  The
 strength of HPSEB/HP Govt, on deputation on the above date was 677 as
 against 699 on 31st March 2010. The strength of SC, ST and OBC
 employees as on the above date was respectively 258,67 and 134 as
 against 231,60 and 116duringthe previous year.  Your company gives
 utmost importance for the enrichment of skills and towards this
 in-house and external training programmes are organized in all
 disciplines and all levels. As a result, during the financial year 1060
 employees were trained for 4030 man days.  11.1 INDUSTRIAL RELATIONS
 
 Regular Meetings are held with the representatives of the various
 Associations/Unions to sort out the local issues as well as policy
 related matters. Recreational, Cultural and Sports functions on
 different occasions were also held, thus, resulting better
 employee-employer relations and cordial industrial relations during the
 year.
 
 12.  STATUTORY AND OTHER INFORMATIONS
 
 The information required to be furnished as per the Companies Act 1956,
 Listing Agreements, Government Guidelines, and, Code of Corporate
 Governance of your Company, on the following matters is placed at
 Annexure''A
 
 a) Management Discussion and Analysis
 
 b) Report on Corporate Governance
 
 c) Information on Conservation of Energy, technology Absorption and
 Foregin exchange earnings and out go
 
 d) Information as per Companies (Particulars of Employees) Rules 1975
 
 13.  DIRECTORS'' RESPONSIBILITIES STATEMENT
 
 The Directors''confirm that in the preparation of the annual accounts
 for the year ended March 31,2011:
 
 - the applicable accounting standards had been followed along with
 proper explanation relating to material departures, if any;
 
 - that the directors had selected such accounting policies and app I
 ied them con s istentl y except as d isc losed i n the Notes on Accou
 nts and made judgment 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;
 
 - that the directors had taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Companies Act for safeguarding the assets of the
 Company and for preventing and detecting fraud and other
 irregularities; and
 
 - that the directors had prepared the annual accounts on a going
 concern basis.
 
 14.  AUDITORS'' REPORT
 
 M/s Hingorani M & Co., Chartered Accountants, New Delhi, were appointed
 by C&AG as Statutory Auditors of the Company for the financial year
 2010-11.
 
 The Report of the Statutory Auditors to the Members on the Accounts for
 the year ended 31.03.2011 along with reply to Qualification is placed
 at Annexure ''B''. Comments of the C&AG of India on the
 Accountsfortheyearended31.03.2011 are placed at Annexure *C\ Comments
 of C&AG being ''nil'', the reply by the Management is not applicable.
 
 14.1 COST AUDIT
 
 Pursuant to the Central Government directions to audit Cost Accounting
 Records as maintained by the Company, your Company appoi nted
 ShriK.S.Berk, Cost Accou ntant, as Cost Au d itor for the year 2010-11
 with the approval of Ministry of Corporate Affairs for the audit.
 
 The Cost Audit Report for the year 2009-10 was filed with MCA on 22nd
 September 2010 as against 15th October 2010 being due date for filing.
 
 15.  BOARD OF DIRECTORS
 
 The Directors Report for the year 2010 contained changes in the Board
 level positions on account of appointments and cessations up to
 September 2010. Subsequently, the following changes in the Board have
 occurred.
 
 Pursuant to the orders of Ministry of Power, Shri R.P.Singh, Director
 (Electrical), has assumed the current charge of Chairman and Managing
 Director in addition to his duties with effect from 01 st March 2011,
 Shri A.S.Bindra, joined as whole time Director (Finance) with effect
 from 09th December 2010 and Shri Nand Lai Sharma joined as whole time
 Director (Personnel) with effect from 22nd March 2011.  Pursuant to the
 orders of Ministry of Power, Shri H.K.Sharma, ceased as Chairman &Mg.
 Director with effect from 25th Feb 2011 on account of completion of
 given tenure. Also on attaining the age of superannuation, Shri
 R.S.Katoch ceased as Director (Personnel) with effect from 28th Feb
 2011.
 
 As regards part-time Independent Directors, on account of completion of
 tenure, Shri K.S.Sarma, Shri K.S.Gill and Shri S.M.Lodha ceased as
 Directors of the Company.
 
 The Board welcomes the appointments and noted the contributions made by
 the outgoing Directors during their tenure and placed on record its
 highest appreciation for their services.
 
 16.  IMPLEMENTATION OF OFFICIAL LANGUAGE Celebration of Hindi
 Fortnight, quiz competitions, workshops, publication of house journal
 i.e. Himshakti and translation of manuals into Hindi from time to
 time are regular feature. During the year 242 employees were imparted
 training in usage of Hindi in day to day work. 741 employees were given
 prizes for winning various competitions organized on national/important
 occasions.  Sub-Committee of Parliamentary Committee on Official
 Language Inspected the progress of use of Hindi at the Corporate
 Office, Shimla on 01 st November 2010 and expressed its satisfaction
 over the progress made in this regard.
 
 In recognition of its efforts, your Company was awarded with TOLIC
 Rajbhasha Shield (Second Prize) by Town Official Language Committee,
 Shimla, for the year 2009-10 and NTPC Rajbhasha Shield (Third Prize) by
 Ministry of Power for the year 2008-09 for the best performance in the
 field of Official Language implementation.
 
 17.  ACKNOWLEDGEMENT
 
 The Board of Directors acknowledge with thanks the guidance and help
 extended by various Ministries/Departments of the Government of India,
 particularly, Ministry of Power, Ministry of Finance, Ministry of
 External Affairs, MoEF, Central Electricity Authority, Central Water
 Commission, Geological Survey of India, the Government of Nepal, the
 Government of Bhutan, the Government of Himachal Pradesh, particularly,
 Deptt of Power, DeptL of Finance, Deptt of Forests, Pollution Control
 Board, Government of Uttarakhand, State Electricity Boards, World Bank.
 
 Your Directors also convey their gratitude to the shareholders, various
 international and Indian banks and financial institutions for the
 confidence reposed by them in the Company.
 
 The Board also records its deep appreciation of valued cooperation
 extended by the Office of the Comptroller and Auditor General of India
 and the Auditors. Last but not least, the Board commends the hard work
 and dedicated efforts put in by the employees of the Corporation
 including the employeesondeputation atall levels.  Thanking you
 
                              For and on behalf of Board of Directors
 
 
                                                           (R.P.Singh)
 
                                       CHAIRMAN AND MANAGING DIRECTOR
 
 Place: New Delhi
 
 Date: 14th July 2011