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EQUITY - MARKET SCREENER

NTPC Ltd
Industry :  Power Generation And Supply
BSE Code
ISIN Demat
Book Value()
532555
INE733E01010
137.0255862
NSE Symbol
P/E(TTM)
Mar.Cap( Cr.)
NTPC
9.93
166928.11
EPS(TTM)
Face Value()
Div & Yield %
17.33
10
4.07
 

As on: Dec 05, 2022 12:00 AM

Dear Members',

Your Directors are pleased to present the 46th Integrated Annual Report on the business and operations of the Company along with the Audited Standalone and Consolidated Financial Statements for the year ended March 31, 2022 and Auditors' Report thereon on behalf of the Board of Directors.

Financial Year 2021-22 had been yet another year of achievements for your Company despite being many challenges imposed by the second wave of COVID-19.

Performance highlights of your company for the financial year 2021-22 are briefly mentioned here to give an overview of accomplishments on all fronts:

> Your company has achieved over 106% of the capex target. Your company realised 100% of the billed amount, thus achieving realization of Rs. 1,16,148 crore. Further, your company trade receivables are less than 45 days.

> Your company has registered growth of 10.44% (Standalone) & 14.78% (NTPC Group) in power generation.

> Plant Load Factor (PLF) of 70.74 % as against all India Coal PLF of 58.76% with Korba Thermal station of your Company recording highest PLF of 93.28 %. 8 Stations (including JVs) were in the top 25 in the country in terms of PLF.

> Your company has registered a growth of 27% in coal production from our captive mines by achieving 14.01 MMT of coal production.

> Your company has achieved capacity addition of 3,372 MW and commercial capacity addition of 4,032 MW including 502 MW capacity from renewable. Your Company (Group) is now nearly 69 GW company.

> Your company raised a loan in US Dollar 750 million for its funding its capex plan at a very competitive rate. Further, through proactive refinancing, the weighted average cost of borrowings stood at 5.94%, which is one of the best in the market.

> Group Capital Expenditure (CAPEX) including CAPEX of JV/ subsidiaries of your Company for the year 2021-22 on cash basis was Rs 34,490.55 crore and on standalone basis was Rs 21,035.88 crore.

> Revenue from operations was Rs 1,16,137.33 crore and total revenue was Rs 1,20,042.43 crore. Net Profit after Tax (PAT) was Rs 16,111.42 crore.

> Dividend of Rs 7.00/- per share comprising interim dividend of Rs 4.00/- per equity share paid in February 2022 and recommended final dividend of Rs 3.00 per equity share for the year 2021-22, subject to your approval in the ensuing Annual General Meeting.

> Cash contribution of Rs 7,039.07 crore to Government of India's exchequer through dividend and income tax in the financial year 2021-22.

> Planted approx. 10.44 lakh trees during 2021-22 to mitigate the GHG emissions arising out of plant operations, thereby bringing total to about 3.70 crore planted trees till end of 31.3.2022.

> Your company has been selected as a 2022 ATD BEST Award winner. This is the 5th time that NTPC has been selected for this prestigious global award in the talent development space. This award recognizes organizations that demonstrate enterprise-wide success through talent development.

> Your company has recognised as a Great Place to Work for the 15th year in a row by the Great Place to Work Institute and it was the only PSU to consistently feature in India's Top 50 Best Workplaces.

> Your company, the largest power Utility of the country has been conferred "Excellence in Corporate Social Responsibility" in the prestigious CII-ITC Sustainability Awards 2021, consecutive 2nd time in a row. This is the highest award conferred by CII-ITC. This award recognises companies that have positively impacted both business and society by taking a strategic approach to CSR through collaborative programmes with government and civil society.

> In its endeavour towards more sustainable power generation, your Company has started using agro- residue- based pellets.

> Your Company is saving every year nearly 3.4 crore paper which is equivalent to 4,100 fully grown trees annually by going paperless. Project "PRADIP" (Pro-Active and Digital Initiatives to become Paperless) has been implemented for digitization of documents and paperless processes.

You will appreciate the fact that your company recorded growth and excellent performance despite numerous challenges before the sector like Environmental concerns, lower availability of coal, Non-availability of Gas, strict emission norms, etc.

Despite many operational challenges imposed by the second wave of COVID-19, your company has worked (24X7) to provide uninterrupted power supplies every day to millions of Indians. Further, as a responsible corporate citizen, it is our duty to follow the directives issued by Government of India (GoI) from time to time to fight against COVID-19 pandemic.

1. FINANCIAL RESULTS (STANDALONE)

Particulars 2021-22 2020-21
' Crore US $ Mn* ' Crore US $ Mn*
Income
Revenue from operations (including energy sales, sale of energy through trading, consultancy fee etc.) 1,16,137.33 15,215.16 99,206.72 12,997.08
Other income 3,905.10 511.61 4,345.99 569.37
Total income 1,20,042.43 15,726.77 1,03,552.71 13,566.45
Expenses
Fuel cost 64,163.68 8,406.09 52,849.64 6,923.84
Electricity purchased for trading 3,450.22 452.01 3,031.25 397.12
Employee benefits expense 5,289.51 692.98 4,942.19 647.48
Finance costs 7,350.91 963.04 7,459.03 977.21
Depreciation and amortisation expense 11,234.14 1,471.79 10,411.80 1,364.05
Other expenses 9,388.22 1,229.95 9,580.28 1,255.11
Total expenses 1,00,876.68 13,215.86 88,274.19 11,564.81
Profit before exceptional items, tax and regulatory deferral account balances 19,165.75 2,510.91 15,278.52 2,001.64
Exceptional Items - - 1,363.00 178.57
Profit before tax and regulatory deferral account balances 19,165.75 2,510.91 13,915.52 1,823.07
Tax expense 4,366.39 572.04 1,925.39 252.25
Profit for the year before regulatory deferral account balances 14,799.36 1,938.87 11,990.13 1,570.82
Net movement in regulatory deferral account balances (net of tax) 1,312.06 171.89 1,779.39 233.12
Profit for the year 16,111.42 2,110.76 13,769.52 1,803.94
Appropriations 2021-22 2020-21
' Crore US $ Mn* ' Crore US $ Mn*
Transfer to general reserve - - 6,500.00 851.57
Dividend paid 6,933.12 908.31 5,531.06 724.62
Tax on dividend paid

-

-

-

-

2. FORMATION OF NTPC GREEN ENERGY LIMITED (NGEL)

Your Company is taking various steps to make its energy portfolio greener by adding significant capacities of Renewable Energy (rE) Sources.

In this regard, your Company has incorporated NTPC Green Energy Ltd. ("NGEL") as a wholly owned subsidiary of your Company on 7th April 2022 for consolidation of the identified rE portfolio in which RE assets of your Company and NTPC Renewable Energy Limited (NREL), wholly owned subsidiary of your Company is proposed to be transferred. Monetization of NGEL is proposed through strategic stake sale to Financial/ Strategic/Private Equity investors and/ or IPO.

3. MERGER OF KANTI BIJLEE UTPADAN NIGAM LIMITED AND NABINAGAR POWER GENERATING COMPANY LIMITED (WHOLLY OWNED SUBSIDARY COMPANIES) WITH YOUR COMPANY

Your Company has filed application to the Ministry of Corporate Affairs on 5 February, 2021 for approval of Scheme of Amalgamation of Nabinagar Power Generating Co. Limited and Kanti Bijlee Utpadan Nigam Limited (wholly owned subsidiaries of the Company) with your Company under provisions of Section 230-232 of the Companies Act, 2013. The scheme has been approved by the shareholders and Unsecured Creditors of the Company in their respective meetings held on 18 April 2022 as per the Order of the Ministry of Corporate Affairs. Approval of the Scheme of merger had received on 29.7.2022 from the Ministry of Corporate Affairs.

4. DIVIDEND

Interim and Final Dividend:

Your Company has declared and paid interim dividend of Rs 4.00/- per equity share in February 2022 and the Board of Director of your Company has recommended a final dividend of Rs 3.00/- per equity share for the financial year (FY) 2021-22. If approved by shareholders, total dividend for FY 2021-22 will be Rs 7.00/- per share. This will be the highest ever dividend per share in the history of Company.

The dividend pay-out ratio during the last five year was as under:

S.No. Financial Year Dividend Pay-out Ratio
1 2017-2018 40.82%
2 2018-2019 46.18%
3 2019-2020 30.82%
4 2020-2021 43.31%
5 2021-2022 42.13%

The final dividend shall be paid after your approval at the ensuing Annual General Meeting.

The dividend has been recommended in accordance with your Company's Dividend Distribution Policy. Further, as per Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI Listing Regulations), the top 1,000 listed companies shall formulate a dividend distribution policy. Accordingly, the policy was adopted to set out the parameters and circumstance that will be taken into account by the Board in determining the distribution of dividend to its shareholders and / or retained profits earned by the Company. The policy is also available on the Company's website https://www.ntpc.co.in/sites/ default/files/downloads/DividendDistributionPolicyofNT- PCLimited.pdf.

5. OPERATIONAL PERFORMANCE

During the year, the power stations of your Company generated 299.20 BUs (360.50 BUs including jVs & Subsidiaries) of electricity. This was 20.16% (24.29% including generation by JVs and Subsidiaries) of the total power generated in India. Previous years' generation was

270.9 BUs by your Company (314.10 BUs including JVs & Subsidiaries).

The total generation contributed by coal stations is 291.90 BUs during the year against generation of 260.40 BUs last year. Generation from coal-based units could have been still higher. However, due to less generation schedule there was opportunity loss of 66.3 BUs. The coal-based stations operated at an average Plant Load Factor (PLF) of 70.74 % (All India Coal PLF was 58.76%) and average Availability Factor (DC %) of 88.76% during the year.

Korba Thermal Power Station with a PLF of 93.28 % was ranked 2nd in the country and 8 Stations (including JVs) of your Company were in the top 25 in the country in terms of PLF. Three coal-based stations out of twenty-three commercial Stations achieved PLF more than 85%.

The gas stations having a capacity of 4,017 MW achieved annual generation of 2.03 BUs at a PLF of 5.76 % as against

5.7 BUs last year generation. Opportunity loss due to less generation schedule on Gas was 30.43 BUs. Generation contributed by Koldam Hydro Power Station was 3.12 BUs against 3.22 BUs achieved in last year. Less generation was due to low water inflow. Generation contributed by RE Projects/stations (Solar, wind, small hydro) of your Company was 2.16 BUs.

6. COMMERCIAL PERFORMANCE

6.1 Billing and Realisation

Your Company has realized 100% of its current bills raised for energy supplied in 2021-22. Your Company has also successfully achieved the target for realization of dues set by Government of India (GoI) for energy supplied in 202122. Most of the beneficiaries have made timely payments and availed attractive rebates as per Company's Rebate Scheme.

Your Company has in place a robust payment security mechanism in the form of Letters of Credit (LC) backed by the Tri-Partite Agreement (TPA). Apart from the LCs, payment is secured by the Tri-Partite Agreements (TPAs) signed amongst the State Governments, Government of India (GoI) and Reserve Bank of India (RBI). As per the TPAs, any default in payment by the State owned Discoms can be recovered directly from the account of the respective State Governments in association with RBI. The original TPAs signed during 2000-01 were valid up to 31.10.2016. As per the decision of the Union Cabinet and as agreed by the various States and the RBI, these TPAs have been extended for a further period of 10 to 15 years. As of now, 29 out of total 31 States/UTs have signed the TPAs extension documents. The signing of TPAs extension by remaining States is being taken up.

6.2 Rebate Scheme for realization of dues

In order to encourage early and full realization of dues, your Company issued 'Rebate Scheme' for the year 202122. 1.65% rebate was allowed for amounts credited to your Company's accounts for any payments against provisional bills and advance payments made on 1st day of the Billing Month and graded gradually to 1.590% till 5th day of the billing month. 1.575% rebate was allowed for amounts credited to your Company's accounts for any payments made on 6th day and graded gradually to 1.5% till 11th day of the billing month. For amounts credited to your Company accounts from 12th day of the Billing Month till 18th day of the month next to Billing Month, graded rebate was offered from 1.485% to 0.020%.

6.3 Commercial Capacity

Commercial Capacity totaling to 4,032 MW of your Company including those of JV's and subsidiary companies was added during the year 2021-22:

Project/ Unit Capacity (MW) COD*
1. Owned by your Company
(A) Coal Based Power Projects
Tanda-II Unit#2 660 1.7.2021
Darlipali Unit#2 800 1.9.2021
Barh-1 Unit#1 660 12.11.2021
Barauni-II Unit#2 250 1.11.2021
Total (A) 2,370
(B) Renewable Projects
Bilhaur Solar (85MW) 15 8.4.2021
Simhadri Floating Solar PV (25MW) 10 30.6.2021
15 21.8.2021
Jetsar Solar PV (160MW) - 80 22.10.2021
80 25.3.2022
Ramagundam Floating Solar PV (100MW) - 17.50 28.10.2021
20 22.12.2021
42.50 24.3.2022
Fatehgarh Solar PV (296MW) 49.92 30.12.2021
74.88 5.2.2022
74.88 5.3.2022
Kayamkulam Floating Solar PV (92MW) 22 31.3.2022
Total(B) 502
Total (A+B)-I 2,872
2. Under JVs & Subsidiaries
Coal Based Power Projects
NPGCL Unit#2 660 23.7.2021
BRBCL Unit #4 250 1.12.2021
Rourkela, NSPCL 250 29.3.2022
Total II 1,160
Total Capacity declared commercial during 2021-22 (I)+(II) 4,032

* COD- Commercial Operation Date

As on 31.3.2022, the Commercial Capacity of your Company stood at 54,597 MW (51,725 MW as on 31.3.2021) and your Company Group's Commercial Capacity stood at 68,302 MW (64,490 MW as on 31.3.2021):

Owned by your Company Capacity MW
Coal based projects 48,120
Gas based projects 4,017
Renewable Energy Projects 1,660
Hydro Projects 800
Sub-total (I) 54,597
Joint Ventures & Subsidiaries
Coal based projects 8,094
Gas based projects 2,494
Renewable Energy Projects 168
Hydro Projects 2,949
Sub-total (II) 13,705
Total (I+II) 68,302

6.4 Tariff Regulations

Central Electricity Regulatory Commission (CERC) has issued the CERC (Terms and Conditions of Tariff) Regulations, 2019 on 7.3.2019, which are applicable for the period starting from 1.4.2019 to 31.3.2024. The tariff of electricity generated from various stations of your Company is in the process of determination by CERC based on station specific petitions filed as per these Regulations for the above-mentioned period. Further, CERC has also issued the First Amendment to Tariff Regulations, 2019 regarding servicing of capital and operational expenditure incurred on installation and operation of Emission Control Systems through determination of supplementary capacity charges and supplementary energy charges. CERC has also issued Second Amendment to the Tariff Regulations, 2019 regarding determination of transfer price of coal from captive coal mines by the generating company.

CERC (Sharing of Inter State Transmission Charges and Losses) Regulations, 2020 effective from 1 November 2020 provide the framework for sharing of interstate transmission charges and losses by the various users.

6.5 Relinquishment of power from stations that have completed 25 years from COD

Ministry of Power (MOP) has issued Guidelines on enabling the Discoms to either continue or exit from the PPA after completion of the term of the PPA i.e., beyond 25 years or a period specified in the PPA and allow flexibility to the Generators to sell power in any mode after State/ Discom exit from PPA. These guidelines provide a detailed methodology to be followed by Discoms to exit from PPAs with central generating stations beyond 25 years. The Discoms are required to take approval from their respective SERC and give a 6-month notice to the generating company before exiting from the PPA of stations that have completed 25 years from COD. Further, CERC Tariff Regulations 2019 also provide Discoms the first right of refusal to accept the special tariff arrangement offered by generating company for procuring power from stations that have completed 25 years.

Certain states like Odisha, Rajasthan and Delhi have relinquished their allocation from coal stations, such as, Farakka-I&II, Kahalgaon-I, Unchahar-I and Dadri-I, which has been re-allocated by MoP to other needy States requiring power. Further, Punjab, Haryana, Rajasthan, Himachal Pradesh and Delhi have sought to relinquish their allocation in Anta GPS, Auraiya GPS and Dadri GPS while MP has sought relinquishment of its allocation in Kawas and Gandhar GPS.

6.6 Security Constrained Economic Dispatch (SCED)

¦ The mechanism of Security Constrained Economic Dispatch (SCED) is under implementation on Pilot basis starting from 1.4.2019. This mechanism helps in optimization of total schedule of the Inter State Generating Stations based on the variable cost, resulting in savings in cost of procurement for the Discoms.

¦ Subsequently, the scope of the SCED has been expanded to include the state regulated generating stations and the merchant generators based on their willingness to participate in the scheme. Vide Order dated 31.3.2022, it has now been extended indefinitely until further orders. POSOCO has been asked to submit a detailed feedback report on six- monthly basis.

¦ SCED has resulted in cumulative savings of Rs 2,116 crore in generation cost from start of the SCED pilot in April 2019 up to March 2022 thereby resulting in increased saving in the cost of power procurement of the Discoms.

¦ The generating stations of your Company are participating in the SCED mechanism starting from April 2019 and contributing in a significant way in reduction in power purchase cost of the Discoms.

6.7 Strengthening Customer Relationship

Customer Focus is one of the core values of your Company (ICOMIT). 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 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 are described below:

- Your Company offers training programs to the representatives of beneficiary companies at Power Management Institute (PMI), the apex training institute of your Company on free of cost basis. In 2021-22, 53 participants from various customer organizations attended training in 8 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 has been conducted in 2021-22 and the score falls under Excellent category.

- To further strengthen customer relationship, your Company has sponsored 10 officials of beneficiaries / Discoms to the PGDM (Executive) programme of the NTPC School of Business for the year 2021-22 as a capacity building initiative of power sector personnel equipping them with managerial and leadership skills.

6.8 Power Trading in Power Exchange

In line with CERC (IEGC) (5th Amendment) Regulations 2017, a generating company can sell the un-requisitioned surplus (URS) power based on consent of the beneficiary states. The gains realized from the sale of URS are to be shared with beneficiaries in the ratio of 50:50, subject to a cap of 7 paisa per kwh. The URS power can be sold both in the Day Ahead Market (DAM) and Real Time Market (RTM) platforms of the Power Exchanges. Your Company has been participating in various trading platforms for sale of any un-requisitioned surplus (URS) power as under:

i. Day Ahead Market (DAM) - Any sale of URS power in the Day Ahead Market (DAM), which operates during 10:00 to 12:00 Hrs of the previous day requires prior consent of the Discoms, as they would have to give up their right to reschedule this power after it is sold in the Market. This Market constitutes around 75%- 80% of the volume of power traded in the Power Exchanges. Apart from selling the URS power based on consent of the Discoms, your Company also sells the Regulated power of Discoms due to non- payment of outstanding dues, as and when opportunities arise.

ii. Real Time Market (RTM) - Real Time Market has been implemented in the country since 1st June 2020 with participation on voluntary basis. The main objective of RTM is to provide a market mechanism to the generating stations to sell their surplus power in the market and to provide an opportunity to the Discoms to buy power from the market to meet their contingent requirements. RTM is being implemented in the form of 48 half-hourly auctions conducted during the delivery date and provides options to the generators and the Discoms to participate in the market through price sensitive bidding. For generators, to sell their URS in the RTM, no consent is required from the beneficiaries. The gain sharing principle remains same as that the URS sale in the Day Ahead Market (DAM).

Your Company has been participating in both the DAM and the RTM for selling URS power in the Power Exchange through its trading arm NTPC Vidyut Vyapar Nigam Limited, subsidiary co. Besides selling the URS power, it has also been selling any regulated power or merchant power also in the Power Exchanges. In the FY 2021-22, around 1,949 Million Units of power has been sold in the DAM and RTM in Power Exchanges. Corresponding gains for this sale has been shared with the beneficiaries as per the extant regulatory provisions.

6.9 Renewable Energy:

Following PPA / Power Usage Agreements (PUA) have been signed:

a. PSA for 200 MW for ABC Renewable Project under Developer mode signed with MPPMCL.

b. PSA for 190 MW Nokh solar project under Developer mode signed with CSPDCL.

c. PUA for 735 MW solar power under CPSU scheme Phase-II Tranche-III signed with Telangana Discoms.

7. INSTALLED CAPACITY

During the year 2021-22, your Company added 3,372 MW to its installed capacity (including those of JV & Subsidiary Companies) as per details given below:

Project/ Unit installed Capacity (MW)
Owned by your Company
(A) Coal based Power Projects
Darlipali Unit#2 800
Barauni Unit# 9 250
Barh Unit#1 660
Total (A) 1710
(B) Renewable Projects
Bilhaur 15.00
Simhadri (F) 25.00
Ramagundam 80.00
Jetsar 160.00
Fatehgarh 199.68
Kayamkulam(F) 22.00
SOLAR TOTAL (B) 501.68
Total (A+B) 2,211.68
Under Subsidiaries and Joint Ventures
Coal Based Power Projects
NPGCL Unit#3 660
BRBCL Unit#4 250
NSPCL, Rourkela 250
Total by Subsidiaries and JVs 1,160
Total Addition during FY 2021-22 3,372

The total installed capacity of your Company Group as on 31.3.2022 has become 68,962* MW (65,810** MW as on 31.3.2021) as tabulated below:

Owned by your Company Capacity MW
Coal based projects 48,120
Gas based projects 4,017
Renewable Energy Projects 1,660
Hydro Projects 800
Sub-total 54,597
Joint Ventures & Subsidiaries Capacity MW
Coal based projects 8,754
Gas based projects 2,494
Hydro 2,925
Renewable Energy Projects 192
Sub-total 14,365
Total 68,962

* Kanti Stage- 1 (220 MW) Decommissioned w.e.f. 31.1.2022 and ** Talcher thermal 460 MW Decommissioned on 31.3.2021

8 CAPACITY ADDITION PROGRAMME

8.1 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.

Various projects of your Company having aggregate capacity of 15,675.32 MW including 7,494 MW being undertaken by Joint Venture and Subsidiary companies are under implementation in India and abroad. Total Capacity under Construction comprises of 9,980 MW of Coal (Including 5,080 MW being undertaken by Joint Venture and subsidiary companies), 2,255 MW of Hydro (Including 1,444 MW being undertaken by Joint Venture and subsidiary companies) and 3,440 MW of Renewable projects (Including 970 MW being undertaken by subsidiary company).

The details of such projects as on 31.3.2022 are as under:

Ongoing Projects
Your Company Owned Projects/Units Capacity (MW)
I.A. Coal Based Projects
1. Barh-I, Bihar (3x660MW) 1,320
2. North Karanpura, Jharkhand (3x660 MW) 1,980
3. Telangana Phase-I, Telangana (2x800 MW) 1,600
Sub Total (A) 4,900
I.B. Hydro Electric Power Projects (HEPP)
4. Tapovan Vishnugad, Uttarakhand (4x130 MW) 520
5. Lata Tapovan, Uttarakhand (3x57 MW)@ 171
6. Rammam Hydro, West Bengal (3x40 MW) 120
Sub Total (B) 811
I.C Renewable Energy Projects
7. Ramagumdam, Solar F, AP 20
8. Kayamkulam, Solar F, Kerala 70
9. Rihand, Solar G, UP 20
10. Auraiya, Solar F, UP 20
11. CPSU-I: Shimbhoo Ka Burj, Solar G 250
12. CPSU-I: Devikot, Solar G, Rajasthan 150
13. CPSU-I: Shimbhoo Ka Burj, Solar G 300
14. CPSU-II: Nokhra, Solar G, Rajasthan 300
15. CPSU-II: Fatehgarh, Solar G, Rajasthan 96.32
16. CPSU-II: Ettayapuram, Solar G 230
17. CPSU-II: Devikot, Solar G, Rajasthan 90
18. CPSU-I: Gandhar, Solar G, Rajasthan 20
19. Kawas Solar G/F 56
20. Anta Solar G 90
21. Solapur Solar G 23
22. Nokh Solar, G 735
Sub Total (C) 2,470.32
Total I (A)+(B)+(C) 8,181.32
II Projects under JVs & Subsidiaries
(A) Coal Based Projects
23. Patratu Expansion, JV with JBVNL 2,400
24. Durgapur, JV with SAIL (NSPCL), West Bengal (2x20MW) 40
25. Khulna, JV with BPDB (BIFPCL), Bangladesh (2x660MW) 1,320
26.THDC - Khurja (2x660 MW) 1,320
Total II (A) 5080
II (B) Hydro Projects
27.THDC - Tehri PSP, Uttarakhand 1,000
28.THDC - Vishnugad Pipalkoti, Uttarakhand 444
Total II (B) 1,444
II (C) Renewable Projects
29.Chattargarh, Solar G 150
30. Bhensara, Solar G 320
31. Amreshwar, Solar G 200
32 Limbi, Mithapur, Mesanka Solar G 150
33 Dayapar, Wind 150
Total II (C) 970
Total II (A+B+C) 7494
Total On-Going Projects as on 31.3.2022 (I)+(II)+(III) 15675.32

Note: 1. @Work of Lata Tapovan HEPP stopped as per orders of the Hon'ble Supreme Court dated 7.5.2014 .

8.2 New Technology & Initiatives

Your Company has always laid 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 (USC) technology by improving the steam parameters for Khargone (2X660MW) and Telangana (2X800 MW) steam parameter are 270 kg/ cm2, 600oC/ 600oC. Plant efficiency of USC units is expected to be around 41.5% which is higher by 3.5% percentage point over a conventional subcritical 500 MW unit.

Ultra-super critical based units of Khargone (2X660MW) STPP have already been commissioned.

For the first time in your Company, Air Cooled Condenser (ACC) system has been adopted at North Karanpura STPP and Patratu STPP, JV Co. which will bring a significant reduction in specific water consumption for these projects.

8.2.1 Biomass Co-firing Utilization of Agro residue for Power Generation & reduce pollution

As part of its commitment towards clean environment, your Company has taken a new initiative to utilise agro residue for power generation. 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. Biomass co-firing is a unique method to utilize coal- based power plant infrastructure to produce renewable energy by simply replacing some of the coal with biomass- based fuel. Being carbon neutral fuel, biomass co-firing is a technology recognized by UNFCCC as a measure of reducing greenhouse gas emission.

After successfully demonstrating biomass co-firing at your Company Dadri plant, your Company has started commercial scale biomass co-firing at other stations also. Your Company has so far awarded contracts for procurement of 12.35 LMT of biomass pellet for 20 stations of your Company under various short-term contracts (3 months, 6 months and 9 months) and Long-term contract (4 Years) for Dadri station. Supply has been already started at 13 stations of your Company. Your Company is the highest consumer of Biomass pellets in coal-based power sector with 77,456 metric tonnes of biomass pellets fired in 13 stations of your Company as on 20.7.2022.

As mandate by Guidelines issued by Ministry of Power on 8.10.2021 for utilisation of Agro-residue based biomass in coal-based power plants, your Company was the first company to initiate procurement process on long term basis. In the first lot, your Company is procuring 9.20 MMT of biomass pellets for seven years for stations in NCR or in close proximity to NCR. Tender has been floated for Dadri, Unchahar, Tanda stations and Joint Venture APCPL- Jhajjar. The tender is in advance stage of finalisation and the orders will be placed soon.

8.2.2 Waste to energy (WtE) and disposing municipal solid waste (MSW)

Keeping its commitment towards clean & green environment and Swachh Bharat Mission (SBM), your Company has taken several initiatives to support & leverage Government of India's effort towards realising SBM thereby ensuring pollution free environment for people's health and welfare.

Your Company has successfully revamped and made functional the "Waste to Compost" plant at Karsara, Varanasi and is now managing Operation & Maintenance (O&M) of this entire 600 Tons per Day (TPD) capacity plant. The plant is processing about 600 TPD of MSW and generating about 60-80 TPD of compost. Sanitary land fill facility and Leachate treatment facility have also been created at Varanasi to ensure scientific disposal of municipal solid & liquid waste.

In addition, your Company has commissioned 24 TPD thermal gasification-based demonstration scale WtE plant at Varanasi. The Municipal Solid Waste (MSW) is first converted to produce gas, which is then used to generate approximately 200 kW of electric power. Further, to promote Make in India concept, this Project has been awarded to Micro, Small & Medium Enterprises (MSME) vendor.

8.2.3 Renewable energy

Renewable energy is central focus for your Company. To be in step with ambitious targets, the Company is exploring all avenues for renewable capacity addition to look beyond conventional large scale solar and wind parks. Your Company is utilizing roofs of power plant buildings for solar power generation and integrating to the existing plant infrastructure. Your Company is also going ahead with floating solar at reservoirs of its projects which is a step towards saving of land and water conservation by reducing water surface evaporation.

8.2.4 Welding

There is immense application of welding during manufacturing of various power plant components, during erection and maintenance/overhauling of units. The advanced metallurgy of components exposed to high temperatures in new coal based Supercritical/ Ultra Super Critical 660 MW & 800 MW thermal units of your Company, imposes much greater challenges in welding. The challenge to achieve defect free weld joints always requires highly skilled, well trained and qualified manpower to do the welding and also to conduct quick, accurate and correct inspection of weldjoints through advance Non-Destructive Testing (NDT) techniques meeting the governing standard requirements. All these require proper understanding of metallurgy, welding, advanced NDT techniques and the governing standards.

To meet all these challenges, several new initiatives in welding & NDT were taken by your Company especially in Welding Skill Development, Competency Development in Welding Inspection and advanced NDT techniques through world renowned "The Welding Institute (TWI) - UK/India". Welding Failure Analysis were conducted to understand the root cause and suitable corrective actions were taken to ensure that such failures do not happen again in any other unit. Repair Welding were ensured by following proper welding procedure specifications and initiatives were taken to make aware the latest welding equipment, welding techniques & its implementation at site. New initiatives were also taken in meeting the challenges of developing Welding procedures & NDT techniques in even higher & complex metallurgy involved in Advance Ultra Super Critical (AUSC) components.

A small welding training center is envisaged to train & hone skill of high pressure welders at new upcoming project sites.

For welding competency development of the operating personnel, your Company has established welding simulators at Sipat Plant & Patratu sites, Subsidiary Co.

8.2.5 Smart Township & Eco Park Smart Township:

In CPSE conclave 2018, idea to convert some of CPSE townships to "Mini Smart Cities" was mooted. Earlier, your Company awarded the work of converting two of its townships located at "Solapur" and "Khargone" to "Smart Townships". Smart township at Solapur has been commissioned on 17.7.2021. At Khargone, integration of all the smart systems with integrated Township command & control center is in progress. This smart township shall be commissioned shortly.

The work in these townships involves applications of smart solutions like Pan-Township security and surveillance system, smart water metering, leakage identification and water quality monitoring, smart energy metering and use of renewable energy sources, robust IT infrastructure and FTTH connectivity, rainwater harvesting, solid and liquid waste management, use of smart bicycles, electric vehicle (golf carts), Electric Vehicle (EV) Chargers, open gym and citizen services etc. Application of these smart solutions will provide enhanced quality of life to the residents in an environment friendly and sustainable manner.

Eco Park:

Your Company is developing an Eco Park on the ash disposal area of Badarpur Thermal Power Station (which has since been shut down), to have environmentally sustainable neighborhood and to enhance quality of life. The design concept is taken from the immediate surroundings of Yamuna River itself and the area is being developed as a green island to become a breathing space for the urban area of Delhi, NCR apart from becoming a lively and attractive space. This shall also help in conservation of natural ecosystem and protection of environment.

The work in Eco Park involves Wet lands, Bird sanctuary, theme gardens, green house, butterfly park, Forest, Fish pond, Musical fountain, recreational Boating facility, Garden of light, Lotus plaza & Jungle safari along with other recreational features.

Contracts have been awarded & work is in progress for this world class Eco Park.

8.2.6 Initiative for Use of Treated Sewage Water from Municipal Sewage Treatment Plants (STP)

Your Company has taken up active steps to use treated sewage water from STPs of nearby Municipal bodies for bulk water requirement in its power plants, replacing precious fresh water from rivers/lakes/reservoirs/dams meant for other priority uses like agriculture, drinking, etc. Your Company has explored some projects viz. Meja, Mouda, Solapur, Korba, Sipat, Barh, Kahalgaon, Dadri and Telangana falling within 50 km distance from existing/ under construction STPs as notified in Tariff Notification of GOI dated 28.1.2016 and identified Korba, Barh, Meja, Kahalgaon for further feasibility study where treated STP water can be used for the plant cooling water system while meeting the order of closeness criteria. Further, based on various recent orders & guidelines issued from time to time by Ministry of Power (MoP) & Central Electricity Authority of India (CEA), specifying scope division, modalities, quality standards etc. for use of treated sewage water in thermal power plants, discussions are under process with respective municipal bodies associated with above stations of your Company.

8.2.7 Advanced digital and control technology use

Your Company is on the Digital path and implementing its Digital Strategy Roadmap. The initiatives of Advance Process Control (APC) for enabling flexible operation and Advanced Monitoring of Stockyard (hot spot detection and 3D profiling of stock pile) have been commissioned as a pilot project. Further pilot study for sustained operation of unit at technical minimum load has also been taken up.

Your Company has also taken initiatives of Advanced Performance Management-APM (Maintenance optimization suite), Application of IIOT in General-AIG (IIOT to enhance process visibility), Asset Information Management-AIM (digital twin with lifecycle documentation) to enhance reliability of equipment and processes. Further ART (Augmented reality/Virtual Reality based training) has been completed as a pilot and Turbine Training modules of ART is on the verge of completion and training to start shortly.

For capacity building of operating personnel, your Company is developing full-fledged replica Simulators for all available combinations of SG & TG sets of supercritical units, out of which 9 nos. have already been commissioned.

Technology intensive security system with centralized control and multiple layers of security is being envisaged in place of manpower. Implementation in two of the five projects is going to be completed shortly in your Company's Dadri station. Further, it is being implemented at five (5) projects of your Company. Your Company has taken the initiative to further secure control systems by augmenting the present defense-indepth Cyber Security Posture for Operational Technology (OT). Pilot implementation in one of the projects is going to be completed shortly.

Initiatives have also been taken for upgradation against obsolescence which will patch all cyber vulnerability of obsolete systems and make the latest upgraded systems much more secure. System wise Obsolescence have been identified and taken up for phase wise upgradation.

Your Company has further taken initiatives for pilot study for implementation of Robotics in various process applications of power plant.

8.2.8 Dry Bottom Ash Handling System

To minimize water consumption, in recent times your Company has taken initiative for adopting Dry Bottom Ash Handling System instead of conventional Wet Bottom Ash Handling System for Coal Based Thermal Power Project at Patratu (subsidiary company), which is under construction. With extraction of bottom ash in dry form and requirement of meagre quantity of water for conditioning and dust suppression, water requirement will be practically eliminated for handling bottom ash. The system not only reduces water consumption required for disposal of bottom ash in wet form, but also results in reduction in power consumption for Bottom Ash Disposal and facilitates better utilization of bottom ash.

8.2.9 Change-over to safer Chlorine-di-oxide system from conventional gas Chlorination system for disinfection of plant water system

Keeping commitment to environment and safety, your Company has embarked upon to the more advanced, safer and compact in-situ Chlorine-di-oxide generation system from earlier practice of Gas chlorination system through a comprehensive policy change for its entire fleet of existing power stations as well as all upcoming power stations which is under implementation in various projects and stations of your Company.

8.2.10 Zero Liquid Discharge (ZLD) from Thermal Power Plants

Your Company has already taken proactive approach to become a Zero Liquid Discharge company for all its operating station by identifying and implementing water management initiative, adopting innovation in water use in its Thermal Power Plant. Some of the stations of your Company have already become zero liquid discharge compliant and implementation is under progress in balance stations. Under the scheme, plant effluent water is segregated from storm water and is reused after treatment in the area of Ash handling plant, Coal Handling Plant, FGD make up, Service Water etc.

Your Company has already taken proactive approach to become a Zero Liquid Discharge company for all its operating station by identifying and implementing water management initiative, adopting innovation in water use in its Thermal Power Plant. Out of 40 stations (37 closed cycle and three open cycle except TTPS), ZLD is targeted in 36 stations. 16 stations of your Company has already achieved ZLD, 15 more stations are likely to complete the ZLD related work by December 2022, balance 5 Stations will become ZLD compliant by March 2023.

8.2.11 Successful Commissioning of Barh Unit-1

Your Company Barh Unit#1 (660 MW) which has a unique type of boiler in the world having T-pass, steam to steam reheat was successfully commissioned and taken to full load by completing the remaining engineering, reverseengineering and making available balance materials by indigenisation of critical equipment parts.

8.2.12 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 Director report is placed at Annex-III.

8.2.13 Agility, Innovativeness & Commitment- Setting up of PSA based oxygen generation plants

Engineering department of your Company demonstrated its agility and commitment to serve the nation during peak Covid period, when there was huge crisis of medical oxygen in the country, by successfully setting up PSA (Pressure Swing Adsorption) based oxygen generation plants at various NTPC stations in war footing mode.

8.3 Project Management

Your Company has adopted an integrated system for the planning, scheduling, monitoring and control of approved projects under implementation. To co-ordinate and synchronize all the support functions of project management, the Issuer relies on a three-tiered project management system known as the Integrated Project Management Control System (IPMCS), which integrates its engineering management, contract management and construction management control centres. The IPMCS addresses all stages of project implementation, from concept to commissioning.

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 (Web miles), 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.

In addition to above, in order to make monitoring of projects more effective, Your Company is now adopting Integrated Software monitoring tool for integrating progress of Engineering, Supplies and Erection at one place, and capturing progress online. Features like mobile app based updation of progress and role based access make the tool more user-friendly which will result into regular updation of progress. It will help in taking timely remedial actions. This tool has been included in the bid documents of EPC packages of upcoming projects of your Company.

In a changing global scenario, your Company has added various other project management tools which are Online CAPEX monitoring system/ Digital Hindrance register/ Digital Chronology register/ Safety Register etc.

8.4 Details of Subsidiaries and Joint Ventures (JVs) of your Company engaged in power generation

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 (Kanti Bjlee Utpadan Nigam Limited) A wholly owned subsidiary of your Company (under merger with your Company) The installed capacity of KBUNL is 390 MW (Stage-II: 2X195 MW). On expiry of validity of the PPA entered into with erstwhile BSEB, and ageing of the units, power generation from Stage-I (2X110 MW) of KBUNL has been stopped w.e.f. 8th September 2021.
Generation in FY 2021-22 was 2850 MUs at 66.87% PLF and Availability Factor was 83.65%.
KBUNL has paid dividend of Rs 20.94 crore for FYRs 2021-22 to your Company.
Name of Company JV Partner(s) Details
BRBCL (Bhartiya Rail Bjlee Company Limited) Ministry of Railways A subsidiary of your Company in joint venture with Ministry of Railways with equity contribution in the ratio of 74:26 respectively for setting up power project of 1000 MW (4X250 MW) capacity at Nabinagar in Bihar. All units are under commercial operation.
Generation in FY 2021-22 was 5700 MUs at PLF 77.48%, and Availability Factor was 88.47%. BRBCL has paid dividend of Rs 125.80 crore for FY 2021-22 to your Company.
NSPCL (NTPC-SAIL Power Company Limited) Steel Authority of India Ltd. (SAIL) A 50:50 Joint Venture Company between your Company and SAIL, owns and operates Captive Power Plants of SAIL at Durgapur (2 x 60 MW), Rourkela (2 x 60 MW) and Bhilai (2 x 30 + 1 x 14 MW). NSPCL has also implemented 2 x 250 MW Bhilai Expansion Power Plant.
250 MW NSPCL Rourkela Project COD was done on 29.3.2022. With this NSPCL has become a 1064 MW Company.
NSPCL generated 6049 MUs at 84.43% PLF and Availability Factor was 91.27 in FY 202122.
NSPCL has paid dividend of Rs 100 Crore for FY 2021-22 to your Company.
Under Implementation- New Coal based Capacity at Durgapur PP-III (2 x 20 MW) is under construction.
NTECL (NTPC Tamil Nadu Energy Co. Ltd.) Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) A 50:50 JVC has commissioned 3x500 MW coal-based power project at Vallur, Tamil Nadu.
Generation of NTECL during FY 2021-22 was 7913 MUs at 60.22% PLF and Availability factor was 89.56 %.
NTECL has paid dividend of Rs 244.19 Crore for FYRs 2021-22 to your Company.
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. Your Company, IPGCL and HPGCL have contributed equity in the ratio of 50:25:25.
Generation of APCPL during FY 2021-22 was 7051 MUs at 53.66% PLF & Availability factor was 94.65%.
APCPL has paid dividend of Rs 750 crore for FY 2021-22 to your Company.
MUNPL (Meja Urja Nigam Pvt. Ltd.) Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd. (UPRVUNL) A 50:50 JVC has commissioned 1,320 MW (2X660 MW) coal- based power project in the state of Uttar Pradesh.
Unit-1 of 660 MW capacity has been declared commercial on 30th April 2019. Unit-2 on 31st January 2021.
Generation of MUNPL during FY 2021-22 was 7,573 MUs at 65.49% PLF and Availability was 78.90%.
NPGCL (Nabinagar Power Generating Company Ltd.) A wholly owned subsidiary of your Company (under merger with your Company) NPGCL is setting up a 3x660 MW Coal based plant at Nabinagar.
Unit#1 declared commercial on 6.9.2019 and Unit#2 was declared commercial on 23.7.21. Trial Operation of Unit-3 of 660 MW has been done on 2.3.2022.
Generation of NPGCL during FY 2021-22 was 8,264 MUs, at 81.05% PLF and Availability was 91.30%.
NPGCL has paid dividend of Rs 377.32 Crore for FYRs 2021-22 to your Company.
RGPPL (Ratnagiri Gas and Power Pvt. Ltd.) MSEB Holding Co. Ltd. RGPPL owns and operates gas based Dabhol Power Project of 1967 MW (1 X 640 MW + 2 X 663.5 MW) in Ratnagiri district of Maharashtra.
Consequent upon one time settlement (OTS) of debt with the lenders and purchase of shares of GAIL in RGPPL during the previous year 2020-21, your Company share in RGPPL has increased to 86.49%.
Generation of RGPPL during FY 2021-22 was 3144 MUs at 18.24% PLF and availability was 99.52%.
ASHVINI (Anushakti Vidhyut Nigam Ltd.) Nuclear Power Corporation of India Ltd. (NPCIL) Your Company is having a stake of 49% in the JVC. The JV company was formed to set up Nuclear Power Project as may be mutually discussed and agreed between the parties, subject to establishment of techno-commercial viability. JVC is exploring the possibilities of entering into business activities related with the Nuclear Power generation and front-end fuel at an appropriate stage.
Joint working group with representation from your Company and NPCIL is formed to work on modalities of execution of (2x700) MW Gorakhpur Haryana Anu Vidyut Pariyojana (GHAVP) at Haryana by the JVC.
PVUNL (Patratu Vidyut Utpadan Nigam Limited) Jharkhand Bijli Vitran Nigam Limited (JBVNL) PVUNL has been incorporated on 15.10.2015 as a subsidiary of your Company with 74% stake in the Company and 26% of stake held by JBVNL. PVUNL plans to set up 4000 MW Coal- based power project in two phases. Phase-I of (3X800) MW has been awarded to BHEL on 8.3.2018. Construction work is in progress.
NTPC Renewable Energy Ltd. A wholly owned subsidiary of your Company NTPC Renewable Energy Limited (NTPC REL), a wholly owned subsidiary of NTPC was incorporated on 7.10.2020 with a target to accelerate the RE capacity addition plan to achieve target of 60 GW by 2032.
NTPC RE is taking up large Solar, Wind and Hybrid Projects all over the country and developing Gigawatt scale Renewable Energy Parks and Projects in different states under UMREPP (Ultra Mega Renewable Energy Power Park) scheme of Government of India. In addition to this Green Hydrogen based Mobility and Environmental, Social and Governance (ESG) projects are also being pursued.
THDC India Ltd Government of Uttar Pradesh THDC India Ltd was a joint venture of the Government of India (74.496%) and the Government of Uttar Pradesh (25.504%) and a Mini- ratna Category-I CPSE. Your Company executed Share Purchase Agreement with GoI and acquired 74.496% equity stake in THDCIL on 27.3.2020. THDC is now a subsidiary Company of your Company.
Presently, THDCIL has a portfolio of 11 projects (Hydro, Thermal, Wind & Solar), with a total capacity of 4696 MW comprising of 1587 MW Operational plants and 2764 MW under construction Projects. The balance 345 MW projects are under various stages of development/ implementation.
Generation of THDC during FY 2021-22 was 4671 MUs at 34.8% PLF of Hydro and 23.7% PLF of Wind plants.
THDC has paid dividend of Rs 378.59 crore for FY 2021-22 to your Company.
North Eastern Electric Power Corporation Limited (NEEPCO) A wholly owned subsidiary of your Company North Eastern Electric Power Corporation Limited (NEEPCO) was 100 % GOI held Mini-ratna Category I Central Public Sector Enterprise. Your Company executed a Share Purchase Agreement with GoI and acquired 100% equity stake in NEEPCO on 27.3.2020 NEEPCO is primarily engaged in the business of generation and sale of electricity in the north-eastern region of India. NEEPCO operates 7 hydro, 3 thermal and 1 solar power stations with a combined installed capacity of 2057 MW.
Generation of NEEPCO during FY 2021-22 was 8120 MU with 35.1% PLF for Hydro and 74.3% PLF for thermal plants and availability of 79.30% for Hydro and 76.16% for thermal plants
NEEPCO has paid dividend of Rs 90 crore for FY 2021-22 to your Company.

8.5 Hydro Power Projects

Your Company, as you are already aware, has been in renewable energy sector and now has solid footprints in green energy by developing hydro projects as detailed below:

A. Koldam HEPP (4x200 MW) is on the river Satluj, in District Bilaspur (Himachal Pradesh). All the four units of 200 MW each were declared commercially operational in 2015. Since then, the project is running exceedingly well. The generation for the financial year 2021-22 was 3120.13 MUs against design energy of 3055 MUs. Owing to excellent operation and maintenance practices, the Station achieved yearly availability of 98.5% and DC of 108.82% in FY 202122, which is highest amongst all the Hydro Power Stations in the country for the last 5 years in a row.

Koldam has been accorded Integrated Management Systems (IMS) Certification which includes ISO 9001:2015 for Quality Management System, ISO 45001:2015 for Environment Management System & ISO 14001:2018 for Occupational Health & Safety Management System in March 2021.

Koldam in FY 2021-22 has been bestowed with Golden Peacock Environment Management Award (winner amongst all Stations in power generation category) for its commitment for Environmental improvement. Koldam HPP was also awarded with Greentech Energy Conservation Award & Greentech Safety Award for its best practices for energy conservation and accident free performance. Towards water conservation, backwash water from the Water treatment plant and effluent from the Sewerage Treatment plant is being used for Horticulture purposes in Township area.

Koldam in NovRs 21 has also organized an O&M Workshop (HydroConRs 2021) with participation from several hydro power producing companies including NHPC, THDC, NEEPCO, SJVN, AD Hydro, JSW Energy, and equipment manufacturers for sharing of experiences and best practices of Hydro O&M which turned out to be a great success.

B. Tapovan Vishnugad HEPP (4x130 MW) is on River Dhauliganga, in District Chamoli (Uttarakhand). The Project is under advance stage of construction with a physical progress of nearly 75%. Generator Transformer & Switchyard (GIS) Package is completed. Powerhouse Building works are completed and architectural works are in progress. Erection (Box-up) of two out of four turbines is completed.

On 7.2.2021, unprecedented devasting glacier debris flow in Dhauligaga river caused by glacier rock fall in Nanda Gunti Glacier in the catchment of Rishigaga River (a tributary of Dhauligaga River) which inundated the under-construction Barrage of your Company Tavopan Vishnugad HEPP. The debris/silt/deposit material entered and chocked the Desilting Basin including Intake Adit tunnel, Head Race Tunnel (HRT), Silt Flushing Tunnel (SFT), Barrage & Gate Operating Chamber Area etc., entrapping the manpower & equipment/vehicles engaged in these areas. This devastating flood resulted in extensive damage to breast wall, bridge deck, washing away of spillway gates along with hydraulic cylinders and a pier control room. All the approach roads/access to the project components located in Barrage, Desilting, Intake area, Chormi Adit, Tail Race Tunnel were either washed away or damaged. The progress of work has been affected due to this natural disaster.

Presently all the muck from Barrage, Intake, Desilting Chamber, Conduit, Gate Operating Chamber, Transfer Structure has been removed. 28% of muck have also been removed from HRT and SFT. A comprehensive testing of various structures of barrage has been conducted by SERC & CBRI Team in DecRs 2021 & MarchRs 2022 and all structures were found integral and repairable. The repair, restoration and balance works are in progress and first Unit is likely to be commissioned by Sept. 2024.

C. Lata Tapovan HEPP (3x57 MW) is in upstream of Tapovan-Vishnugad HEPP, in District Chamoli in

Uttarakhand. All Construction activities at LTHPP have been stopped since 8.5.2014 in line with Hon'ble Supreme Court order dated 7.5.2014 for 24 Hydro Projects in the State of Uttarakhand including Lata-Tapovan. MOEF&CC had constituted an expert body which, in October 2015, recommended for implementation of Lata-Tapovan with compliance of certain additional conditions. Your Company submitted in Court that the conditions recommended by expert body shall be strictly complied. On the hearing held on 26.4.2016 also, Additional Solicitor General of India has informed the Apex Court that Lata-Tapovan Project must be implemented. Last hearing was held on 28.2.2020, wherein further information was sought by the Hon'ble court from MoEF & CC and Government of Uttarakhand. The matter was listed for next hearing after 4 weeks, however the hearing could not be scheduled because of limited activities in the Hon'ble Supreme Court due to various reasons. The matter is still pending with Hon'ble Supreme Court.

D. Rammam-III HEPP (3x40MW) is situated on river Rammam in Teesta Basin, with Darjeeling (West Bengal) in south and Sikkim in north. Construction activities at Power House, Switchyard, HRT and Barrage structures are in progress at site. In Barrage, 2nd stage river diversion achieved on 27.3.2022 to carry out construction activities at other bays. The first Unit is likely to be commissioned by March 2025. Switchyard erection work is approximately 86% complete and is in progress, likely to be completed by July 2022. For conservation of water, Bio-digester & Bio-toilets have been installed at Office, Bachelor accommodation & Labour colonies of Rammam Project. Effluent water bio digester is being used for horticulture purpose. Motion sensing emergency lights have been installed at Pre-Fabricated Administrative Office & Bachelor accommodation. IP camera installed for project monitoring purpose at different project locations. Rammam project received Greentech Effective Safety Culture award in AugustRs 2021. Process of installing Flood Warning System is scheduled for August 2022 with help from CWPRS, Pune.

E. Pumped Storage Plants (PSP) in Andhra Pradesh: Your Company has been taken interest in development of PSPs and has identified 3 PSPs in Andhra Pradesh. A memorandum of understanding has been approved by your Company and Govt. of Andhra Pradesh (GoAP) for renewable energy projects including PSPs. However formal communication from GoAP for signing of MOU is awaited.

8.6 Capacity addition through Renewable Energy (RE)

Sources

Your Company plans to have over 60 GW capacity by 2032, through RE sources constituting nearly 50% of NTPC's overall power generation capacity. The Company is pursuing avenues for capacity addition to look beyond conventional large scale solar and wind projects including UMREPP (Ultra Mega Renewable Energy Power Park), Green Hydrogen and Energy Storage.

The green hydrogen initiatives are a step towards decarbonization and various pilot projects are being taken-up in domains like mobility, green chemical, energy storage and blending with natural gas. The green chemical covers green methanol as well as green ammonia. Green hydrogen shall also be used in future as feed stock for petrochemical, steel making and different chemical processes.

Your Company is adding capacity in two modes namely Own Project mode and Outsource Mode. Own investment is done in the former whereas in Outsource Mode, the company acts as an intermediary procurer. Own Project mode includes CPSU projects where domestically manufactured cells and modules with VGF support from MNRE are deployed. Further, the CPSU power is sold in WTO compliant manner only to government entities under a power usage agreement.

Projects under Own Capacity Addition

A) Your Company has a commissioned capacity of 1,645 MW of RE projects including 192 MW owned by the subsidiaries. It covers solar (ground and floating), wind and small hydro installations spread over the country.

B) Your Company won 3,265 MW in FY 21-22 under TBCB Mode including 1,990 MW CPSU Scheme and 502 MW of RE capacity was commissioned in FY 21-22.

C) 3,440 MW of RE projects are under execution comprising of solar (ground and floating) projects.

D) Your Company is also promoting large scale floating solar projects at reservoirs of its plants which is a step towards saving land and water by evaporation. The largest three such projects are in your Company's Simhadri (25 MW), Kayamkulam (22 MW) and Ramagundam (80 MW).

A. Commissioned RE Projects (1,837 MW):-

S No. Project State/UT Capacity (MW)
A Solar (ground mounted)
1 Dadri Uttar Pradesh 5
2 Port Blair Andaman & Nicobar 5
3 Faridabad Haryana 5
4 Ramagundam Telangana 10
5 Talcher Kaniha Odisha 10
6 Unchahar Uttar Pradesh 10
7 Singrauli Uttar Pradesh 15
8 Auraiya Uttar Pradesh 20
9 Kayamkulam Floating Kerala 22
10 Simhadri Floating Andhra Pradesh 25
11 Rajgarh Madhya Pradesh 50
12 Ramagundam Floating Telangana 80
13 Jetsar Rajasthan 160
14 Fatehgarh Rajasthan 200
15 Bilhaur-I & II Uttar Pradesh 210
16 Mandsaur Madhya Pradesh 250
17 Ananthapuramu Andhra Pradesh 250
18 Bhadla Rajasthan 260
B Wind
1 Rojmal Gujarat 50
C Small Hydro
1 Singrauli Uttar Pradesh 8
SUB-TOTAL 1,645
D Subsidiaries
1 Patan Wind (THDC) Gujarat 50
2 Devbhumi Dwarka Wind (THDC) Gujarat 63
3 Dhukwan Small Hydro (THDC) Uttar Pradesh 24
4 Kasargod Solar (THDC) Kerala 50
5 TGBPP Solar (NEEPCO) Tripura 5
SUB-TOTAL 192
GRAND-TOTAL 1,837

B) RE Projects Under Implementation (3,440 MW):-

S No. Projects State MW
A Solar (floating) 110 MW
1 Auraiya Uttar Pradesh 20
2 Ramagundam Telangana 20
3 Kayamkulam II Kerala 70
SUB-TOTAL 110
B Solar (ground) 3,330 MW
1 Rihand Uttar Pradesh 20
2 Gandhar Gujarat 20
3 Solapur Maharashtra 23
4 Kawas Gujarat 56
5 Anta Rajasthan 90
6 Fatehgarh Rajasthan 96
7 Limbdi (60), Mithapur (60), Mesanka (30) Gujarat 150
8 Dayapar Gujarat 150
9 Chhattargarh Rajasthan 150
10 Amreshwar Gujarat 200
11 Ettayapuram Tamil Nadu 230
12 Devikot-I & II Rajasthan 240
13 Nokhra Rajasthan 300
14 Bhensara Rajasthan 320
15 Sambhu Ki Bhurj-I &II Rajasthan 550
16 Nokh Rajasthan 735
SUB-TOTAL 3,330
GRAND-TOTAL 3,440

Green Hydrogen Initiatives:

• Green hydrogen mobility including filling station and 10 FCEVs at Ladakh and Delhi.

• Green hydrogen-based Energy storage at your Company, Simhadri deploying electrolyser and fuel cell.

• Green hydrogen blending in Natural gas at NTPC, Kawas.

UMREPP (Ultra Mega Renewable Energy Power Park):

MNRE has issued UMREPPs scheme on 15.6.2020 to provide land upfront to the project developers and facilitate transmission infrastructure for adding RE capacities with solar/wind/hybrid mode and also with storage system, if required.

Projects totaling about 24 GW are under various stages of development in states of Gujarat (4.75 GW), Maharashtra (2.64 GW), Rajasthan (10 GW), Madhya Pradesh (0.6 GW) and Andhra Pradesh (4 GW), DVC (2 GW).

RE in foreign nations:

Your Company has associated with International Solar Alliance (ISA) as its corporate partner. Project Management Consultancy (PMC) support for development of around 4 GW solar projects in ISA member countries are being provided as given below:

Nation Capacity (MW)
Niger 50
Malawi 100
Nicaragua 100
Togo 285
Zambia 400
Ethiopia 410
Mali 500
Paraguay 500
Cuba 1,150
DR Congo 1,000
Total (MW) 4,405

8.7 The Electricity (Timely Recovery of Costs due to Change in Law) Rules, 2021

The Central Government has notified on 22 Oct 2021 the Electricity (Timely Recovery of Costs due to Change in Law) Rules, 2021 applicable to generating companies and transmission licensees. These rules provide mechanism to compensate the affected party on account of Change in Law so as to restore the affected party to the same economic position as if the change in law had not occurred. It provides a formula for determination of impact in tariff or charges due to change in law and mechanism for adjustment or recovery on a monthly or one-time basis.

8.8 The Electricity (Late Payment Surcharge) Rules, 2021

The Central Government has notified the Electricity (Late Payment Surcharge) Rules, 2021 dated 22nd Feb. 2021 applicable to Power Purchase Agreements (PPAs), Power Supply Agreements (PSAs) and Transmission Service Agreements (TSAs), where tariff is determined under Section 62 and Section 63 of the Electricity Act.

These rules provide for a graded and reduced late payment surcharge, applicable on outstanding amounts beyond the due date. It has provision for debarment of DISCOMs from procuring power from a power exchange or grant of short-term open access if the dues remain unpaid beyond seven months.

8.9 Green Day Ahead Market (GDAM)

As part of the Policy of Ministry of Power (MoP) dated 24.3.2021 on "Development of Integrated Day Ahead Market (DAM) in Power Exchange with separate price formation for RE Power and Conventional Power", CERC has allowed starting of the Green Day Ahead Market (GDAM) on the Power Exchange Platforms vide its order 17th October 2021 and the same has been rolled out by the Power Exchanges. The GDAM along with the earlier launched Green Term Ahead Market (GTAM) provides another avenue for sale of RE power in the market. As per this mechanism, the power is sold in the same DAM with the provision of separate pricing for the RE power and the conventional power. The buyers in the GDAM are eligible for utilising this power against their RPO targets. There is also an option for the RE sellers to sell the unsold

RE power in the conventional DAM and claim renewable energy certificates (RECs) for this power.

8.10 Waiver of Inter State Transmission System (ISTS) charges and losses

The Ministry of Power vide its order dated 15 January 2021 has provided that no ISTS charges will be levied on transmission of the electricity generated from solar and wind power plants (including solar-wind hybrid) with or without storage, commissioned up to 30 June 2023.

This waiver shall be applicable for power sale to distribution licensees, irrespective of whether this power is within the RPO or not, provided that the power has been procured competitively under the guidelines issued by the MOP.

Power from such solar and wind plants may also be used for charging of storage including Hydro pumped storage plants. The waiver shall be applicable for twenty-five years from commissioning of such projects.

8.11 Market Based Ancillary Services Mechanism

CERC on 31st Jan 2022 has issued the Ancillary Services Regulations 2022 which ushers a new era in Ancillary Services procurement in the country. With this, the procurement of the Tertiary Reserve Ancillary Services (TRAS), which is equivalent to the existing RRAs, will be done through bidding in the market platform, unlike the current administrative mechanism whereby the available URS power of the ISGS are being utilised for meeting Ancillary Services requirement. The Secondary Reserve Ancillary Services (SRAS), which is equivalent to the current AGC would continue to be met through the administrative process based on the consent of the willing participants. For implementation of the new mechanism, POSOCO has been asked to prepare the detailed guidelines and the actual date of implementation of this new mechanism will be notified by CERC.

8.12 New Deviation Settlement Mechanism

CERC on 14th March 2022 has issued the Deviation Settlement Mechanism Regulations 2022, which intends to introduce a new paradigm in the settlement of the Deviations. As per these Regulations, pricing of Deviation has been delinked from the administrative based frequency linked deviation charge regime. As per this, the charges of Deviation from Schedule would be same as the weighted average Ancillary Service Charges deployed at that point of time (block). For a period of one year or any date to be notified by the Commission, the deviation charges would be the maximum of the prices of Day Ahead Market, Real Time Market and the Ancillary Services Mechanism. For the generators, the band of deviations has been narrowed whereby within a band of 2% only there is no penalty and beyond this band the penalty increases for both over and under-injections. The actual date of implementation of these Regulations will be notified by CERC.

8.13 Utilization of Agro-residue for power generation & to reduce pollution

The Government has taken initiatives to utilize Agroresidue for power generation. This is intended to reduce emissions by discouraging farmers from burning crop residue and to provide extra income to them through sale of crop residue. Biomass has been recognised as a carbon neutral fuel and biomass co-firing is a technology recognized by UNFCCC as a measure of reducing greenhouse gas emission. MOP has issued revised policy for biomass utilization for power generation through cofiring in coal-based power plants dated 8 Oct 2021 which provides for mandatory use of 5% blend of biomass pellets made from Agro-residue along with coal by all coal based thermal plants on annual basis with effect from one year of date of issue of the guidelines.

8.14 Capacity addition through acquisition

Final Resolution Plan for acquisition of Jhabua Power Limited (1X600 MW) has been successfully negotiated and submitted to CoC by your Company on 14.6.2021. The same was approved by 100% vote share of CoC. Resolution Professional has filed the Resolution Plan for approval of National Company Law Tribunal (NCLT) which was obtained in July 2022.

Your Company along with PFC & REC is participating in the Lenders' backed resolution plan for Lanco Amarkantak Power Ltd. (LAPL) & KSK Mahanadi Power Company Ltd. (KSKMPCL) under NCLT. EOI for LAPL has been submitted on 29.11.2021.

9. STRATEGIC DIVERSIFICATION

9.1 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.

9.2 The details of subsidiary companies engaged in business other than in power generation are as under:

9.2.1 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. 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.

NESCL is actively looking for acquisition of power distribution in UTs/state discoms and had participated

in the bid process for privatization of UT Discoms of Chandigarh, Daman & Diu and Dadra &Nagar Haveli and emerged as a competitive bidder in Chandigarh. Your Company is looking forward to participating in the bid process of Puducherry Discom through NESCL as and when it takes place.

9.2.2 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). It undertakes sale and purchase of electric power, to effectively utilize installed capacity and thus enable reduction in the cost of power. The Company has been nominated as Settlement Nodal Agency (SNA) for settlement of Grid operation related charges with neighboring countries, namely, Bangladesh, Bhutan, Nepal and Myanmar. In the FY 2021-22, NVVN traded 24.152 (provisional) billion units (BUs). NVVN has played a key role in meeting the power demand of A&N by supplying 15 MW DG power to A&N islands. Approx. 40% of total A&N power requirement is being fulfilled by NVVN. The Company is also implementing a 50 MW gas power project in Andaman & Nicobar.

Besides this NVVN is undertaking various other Business activities such as e-mobility segment including providing vehicles and related services in various vehicle segments, Roof top Solar, Waste to Wealth etc. NVVN is actively bidding for e-mobility projects of State / City Transport Authorities / Corporates / Govt. bodies etc. on commercial arrangements.,

NVVN is actively looking for opportunities to expand its current business portfolio and as a strategic opportunity NVVN has acquired 5% Equity stake in PXIL exchange on 29.1.2022.

NVVN has paid dividend of Rs 30 Crore for FY 2021-22.

9.2.3 NTPC Mining Limited (NML), In order to ensure focused management of mining business, your Company has incorporated a wholly owned subsidiary, NTPC Mining Limited (NML) on 29th August 2019 for handling its mining business.

Ministry of Coal has allowed for transfer of Pakri-Barwadih coal mine of your Company, to NML on 16.12.2020. Ministry of Coal on 24.3.2021 conveyed that the request for transfer of other mines allotted under the coal mines (Special provisions) act, 2015 (CMSP) & The Mines and Minerals Act (MMDR) Acts cannot be acceded to.

However, your Company with the support of Ministry of Power is pursuing with Ministry of Coal for transfer of all the mines of your Company to NML.

9.2.4 NTPC EDMC Waste Solutions Private Limited (NEWS), In order to develop & operate state of art/modern integrated waste management and energy generation facility using municipal solid waste, your Company has incorporated a JV Company with East Delhi Municipal Corporation (EDMC) with shareholding in the ratio of 74:26 respectively.

However, due to non-availability of clear land site and Power Purchase Agreement, Waste to energy project could not be taken forward. Your Company is taking up with EDMC to buy out EDMC's stake in NEWS.

9.3 The details of joint venture companies incorporated in India which are taking up activities in other related business areas are given below:

Name of Company JV Partner Activities Undertaken
UPL (Utility Powertech Ltd.) Reliance Infrastructure Limited, Space Trade Enterprises Private Limited, Skyline Global Trade Private Limited and Species Commerce And Trade Private Limited A 50:50 JVC takes up assignments of construction, erection and supervision of business in power sector and other sectors like O&M services, Residual Life Assessment Studies, nonconventional projects etc.
UPL has paid dividend of Rs 17.50 Crore to your Company for FYRs 2021-22.
NGSL (NTPC GE Power Services Private Limited) GE Power India Limited A 50:50 JVC provides R&M services for coal-based power plants in India and RLA, utilizing state of art technology.
NGSL has already diversified in new business areas like O&M services and EPC for RE Projects. It is also looking for diversification in the EPC of FGD and Ash utilisation areas.
EESL (Energy Efficiency Services Ltd.) PFC, PGCIL and REC Your Company is having a stake of 33.33%. 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, standard & leveling work of BEE, Consultancy work, implementing Bachat Lamp Yojana and Agricultural & Municipal Pump replacement with energy efficient pumps for various State Governments.
The Company is taking up different energy efficiency improvement related works like replacement of bulbs, Street Light National Programme (SLNP), & other new business areas like Electric Vehicle (EV), Electric Charging Infrastructure etc.
NHPTL (National High- Power Test Laboratory Pvt. Ltd.) NHPC, PGCIL, DVC and CPRI Your Company is having a stake of 20.0% in JVC. The JV Company was formed to establish a research and test facility for the power sector such as an "Online High Power Test Laboratory" for short circuit testing facility for transformers.
HVTR test Laboratory set up at Bina, M.P. was declared Commercial w.e.f 1.7.2017.
NBPPL (NTPC-BHEL Power Projects Pvt. Limited) Bharat Heavy Electricals Limited A 50:50 JVC was incorporated for taking up activities of engineering, procurement and construction (EPC) of power plants and manufacturing of Power sector and components.
In 2018 both Promoters had approached respective Ministries to exit from NBPPL/winding up of NBPPL. MoP had advised NTPC to consider buyout of BHEL stake in NBPPL. NTPC in its response had proposed that any decision regarding the subject may be taken after completion of balance works of NBPPL at Unchahar (1X500MW) project of your Company. At present, NBPPL is in the advance stage pf completing the EPC work for balance of plant areas.
BF-NTPC (BF-NTPC Energy Systems Limited) Bharat Forge Limited Your Company is having a stake of 49.0% in JVC. 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 BFNESL. Liquidator has been appointed and voluntary liquidation of the company is in progress.
TELK (Transformers and Electricals Kerala Limited) Govt. of Kerala Your Company is having a stake of 44.6% in JVC. The Company deals in manufacturing and repair of Power Transformers.
Your Company has accorded in-principle approval for withdrawal of your Company from TELK in 2016. Accordingly, GoK was informed. However. GoK requested NTPC to review the decision to quit TELK.
Your Company has again approached GoK to allow NTPC to exit in DecemberRs 2021 .Modalities of exit of your Company from TELK are in discussion with GoK.
ICVL (International Coal Ventures Private Limited) CIL, SAIL, RINL, NMDC Your Company is having a stake of 0.11% in JVC. ICVPL was formed under Ministry of Steel 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 ICVPL.
As the Company was formed by a directive from the Cabinet, matter is being taken up with Ministry of Power to pursue with Ministry of Steel for the requisite Cabinet approval for exit of your Company from ICVPL
HURL (Hindustan Urvarak & Rasayan Limited) CIL, IOCL, Fertilizer Corporation of India Limited (FCIL) and Hindustan Fertilizer Corporation Limited (HFCL) Your Company is having a stake of 33.33 % in JVC. HURL was incorporated on 15.6.2016 to establish and operate new fertilizer and chemicals complexes (urea, ammonia and associated chemicals) at Gorakhpur, Sindri and Barauni and market its products.
Lumpsum Turnkey contract was awarded for Gorakhpur, Barauni and Sindri with a completion schedule of 36 months. Gorakpur project has been commissioned in Feb.Rs 2022 and construction work of Barauni and Sindri project are in full swing.
(CNUPL) CIL NTPC Urja Private Limited Coal India Ltd. (CIL) A 50:50 JVC was incorporated on 27 April 2010 between NTPC Ltd. and Coal India Ltd to undertake the Development of Brahmini and Chichro-Patsimal coal mine blocks in Jharkhand and subsequently their operation. In JuneRs 2011, Ministry of Coal, GoI has de-allocated Brahmini and Chichro-Patsimal coal blocks.
CNUPL is exploring new business area for implementation of solar projects. CNUPL has signed MoU with Northern Coalfields Limited (NCL) to support as Project Coordinator for development of 50 MW Solar Pv Power Project at NCL Nigahi coal mine in M.P.

9.4 Foray in Packaged Drinking Water Business

Your Company's research arm, NETRA, has developed technology for sea water desalination using waste heat from flue gases from the power plant. The cost-effective technology is now being utilized for packaged drinking water. An MoU in this regard has been signed with IRCTC on January 15, 2018 for setting up a packaged drinking water facility at your Company's Simhadri Power Station. The bottling plant is commissioned by IRCTC. BIS and FSSAI license received. Commercial production expected in AugRs 2022.

9.5 Asset Monetization

Under the broad contours of the National Monetization Pipeline (NMP), your Company has been allotted a monetization target of Rs 15,000 crore to be achieved in tranches over FY22 to FY25. In this regard, your Company has proposed monetization of its identified RE portfolio & divestment of equity stake in NTPC SAIL Power Company Limited (NSPCL).

a) Monetization of RE assets:

Your Company has proposed monetization of identified RE assets of 2,861 MW which are on NTPC's balance sheet along with NTPC Renewable Energy Ltd. (the wholly owned subsidiary of your Company for organic RE growth).

In this regard, for better marketability, your Company has incorporated NTPC Green Energy Ltd. ("NGEL") as a wholly owned subsidiary of your Company on 7th April 2022 for consolidation of the identified RE portfolio in which RE assets of your Company and NTPC Renewables Energy Limited (NREL) are proposed to be transferred. Monetization of NGEL is proposed through strategic stake sale to Financial/ Strategic/Private Equity investors and/ IPO.

The scheme for asset monetization has already been approved by Ministry of Power and Gazette notification issued by Ministry of Finance on 15th June 2022.

b) Divestment of your Company's stake in NSPCL:

Your Company has proposed divestment of its 50% equity stake in NSPCL. In this regard, SAIL has also expressed interest to divest its 24% equity stake and thus joint sale of 74% stake in NSPCL to interested 3rd party investors is being explored. SBICAPs has been appointed by SAIL for carrying out investors' consultation.

9.6 New Business Areas

9.6.1 Exploring business opportunities for setting up Industrial Park at your Company Power Stations

To support the Government's vision of Atmanirbhar Bharat for manufacturing, your Company had floated an EOI inviting energy intensive industries for setting up an Industrial Park within the surplus land available in three of its power plants. Through this unique initiative, your Company plans to supply (24x7) reliable electricity at competitive tariff directly to energy intensive industries, which is a primary requirement for their sustainability. Industries while getting reliable electricity supply get a host of other ready infrastructure facilities like rail, road airport connectivity, township, medical facilities, water supply etc available at your Company power plant which will help industries set up their units at lower Capex with fast gestation time and help realize the vision of Atmanirbhar Bharat Based on the response in EOI Industrial Park at your Company Kudgi is being implemented as a pilot project.

In principle approval by Government of Karnataka and concurrence from MoP has been obtained in NovemberRs 21 and FebruaryRs 22 respectively and tendering process is ongoing for activities related to setting up of Industrial Park at Kudgi.

9.6.2 Pilot Plant for capturing CO2 to Methanol production in NTPC plants as part of CCU initiative

Your Company is actively exploring options to decarbonize its power plants and transition to green energy. In this regard a pilot scale CO2 capture to Methanol synthesis plant of 10 TPD is being set up at your Company's Vindhyachal project for demonstration purpose.

9.6.3 EoI for setting up of CO2 to Methanol production in NTPC plants

As a step forward, a global EOI was also published in January 2021 seeking responses from Industries for setting up commercial scale CO2 capture, H2 generation and conversion to Methanol production facility. The company is now in discussion with NITI Aayog and other stakeholders on ways to make a decarbonization project of Carbon Capture and utilization commercially feasible.

9.6.4 Bamboo based Bio Refinery at Bongaigaon

Your Company is currently pursuing a Techno economic Feasibility Study through EIL to setup a Bamboo based 2G Bio-Refinery project at Bongaigaon Thermal power station. Through this project, your Company aims to extract valuable bio-chemicals from naturally available bamboo in the region and use the remaining as a fuel to replace part of coal in Bongaigaon power plant.

9.6.5 Partnering with Battery Manufacturers

Your Company published a Global Expression of Interest for collaborating/associating in Advanced Chemistry Cell Battery Manufacturing facility in India on 21.12.2021.

9.6.6 MoU with IOCL

Your Company has signed an MoU with Indian Oil in November 2021 for exploring options for supply of around 650 MW Low carbon / Renewable Energy Round the Clock (RE RTC) power for captive use at IOCL refineries.

9.6.7 MoU signed with NIIF and BPP

Your Company has signed an MoU in January 2022 with National Investment and Infrastructure Fund (NIIF) and BP India Private limited to jointly explore opportunities for participation in Gas based RTC tenders and also to supply gas based blended power to C&I consumers.

9.7 Initiatives for Start Up Eco-system

Your Company is working towards developing a holistic Innovation and Start-Up Ecosystem in your Company, to look for innovative and out of the box solutions to its existing problems, In this context, an MoU has been signed with i-Hub (Gujarat Student Start-up and Innovation Hub) to organize open innovation challenge focused on power sector and allied domains for innovative solutions for the challenges being faced by your Company's stations. Further a Grand Energy Challenge for your Company - was launched by Start-up India at their portal on 17.12.2021 for three problem statements related to business of your Company. Your Company is looking forward to offering mentoring support to these shortlisted Innovators, Startups and facilitate them in implementing or piloting their products/solutions.

10. GLOBAL INITIATIVES

10.1 Bangladesh-India Friendship Power Company Private Limited (BIFPCL), a 50:50 JV company with Bangladesh Power Development Board (BPDB), is implementing a (2x660) MW Maitree Super Thermal Power Project at Khulna in Bangladesh.

10.2 JV with Sri Lanka- A 50 MW solar PV power project (extendable to 100 MW) at Sampur, Trincomalee shall be developed by Trincomalee Power Company Limited (TPCL), the existing JV Company between Ceylon Electricity Board (CEB) & NTPC for which a new JVSHA has been signed on 11th March 2022 to modify the earlier JVA to enable solar power project. Feasibility studies have been carried out and the draft report has been shared with Sri Lankan side for their acceptance.

Your Company and CEB, Sri Lanka have signed a JVSHA to incorporate a new 50:50 JV Company for the development of the 300 MW LNG Power Project at Kerwalapitiya, Sri Lanka in 2019 and supplementary JVSHA was initialled in January 2022.

10.3 Other Opportunities Abroad:

a. Project Management Consultancy (PMC) assignments under ISA platform secured for a total of 4245 MW so far viz Malawi (100 MW), Niger (50 MW), Ethiopia (410 MW), Cuba (900 MW), Nicaragua (100 MW), Paraguay (500 MW), Zambia (400 MW), DRC (1000 MW) in the year 2021-22 and Togo (285 MW), Mali (500 MW) in the preceding year.

b. Collaboration for international business through signing of MoUs with UEGCL in August 2021, EDF France in October 2021 and with Inter Rao, Russia in December 2021. Through this route, your Company intends to have more effective presence in respective focus regions and be able to contribute further in power sector development.

c. Your Company has competitively secured two consultancy assignments, one from UNDP Myanmar in December 2021 for carrying out feasibility studies for the adoption of solar based technologies in Agriculture sector of Myanmar which include selection of 30 sites for Solar based Pumping systems and conduct of training and the other one from Central Electricity Board (CEB), Mauritius in March 2022 for setting up of 2 MWp Floating Solar PV Plant at Tamarind Falls Reservoir in Mauritius which include preparation of DPR, EIA report, Tender documents and post award Site Supervision & Project Management. Both the assignments are under progress and part payments have been released against milestones achieved for the UNDP assignment.

d. Your Company is providing Project Management Consultancy & DPR preparation services under ISA platform to 21 LDC & SIDS member countries of ISA for implementation of solarisation pilot projects such as solar water pump, solar powered cold storage and solar rooftop solutions to primary healthcare centers. The DPRs have been approved by ISA and the tendering process is under progress for implementation of the projects in 09 countries.

e. A total of 28 RFPs, 5 RFQs and 34 EOIs have been submitted for power sector opportunities overseas

in the financial year 2021-22. Your Company has won 2 assignments out of 14 tenders for which results are out and the others are under different stages of evaluation.

11. CONSULTANCY SERVICES

Consultancy wing of your Company supports Indian Power Industry with its vast experience & expertise and offers Consultancy services "From Concept to Commissioning and beyond...." for large power stations in the areas of Engineering, O&M, Project Management, Contracts & Procurement, Renovation & Modernization, Quality & Inspection, Training & Development, Human Resource, IT, Solar & renewable power projects, compliance to Environmental norms for power stations etc.

Consultancy services are being provided in India and abroad viz. Gulf countries, Bangladesh, Myanmar, Mali, Togo, Malawi, Mauritius, Ethiopia, Cuba, Paraguay, Niger & other ISA Member countries. Around 138 consultancy assignments are presently under execution.

Some of the Major ongoing assignments are as follows:

- Project Management Consultancy (PMC) for thermal power projects to THDC & SJVN.

- Post Award services to various thermal power projects of UPRVUNL.

- Consultancy services for O&M Support of thermal power project to UPRVUNL.

- Preparation of DPR and Providing Pre-Award Services for thermal power project to SCCL.

- Post award consultancy services for installation of FGD for thermal power project to SCCL.

- Computerization Project on turnkey basis for Ministry of Jal Shakti, Government of India.

- Consultancy services for procurement of imported coal to JVs companies of your Company.

- Consultancy services for replacing existing C&I System with new DDCMIS for thermal power projects to MPPGCL.

- Preparation of PFSR of the 4 Nos. hydro pump storage projects for TANGEDCO.

- Several Consultancy Assignments pertaining to compliance of new environment norms through implementation of Flue Gas Desulphurization (FGD), Combustion modification and ESP R&M etc.

- Consultancy services for several solar projects from 50 MW to 900 MW for various national clients and international clients.

Consultancy clientele of your Company includes Central & State Government organizations, private companies, Joint Venture companies of your Company, international clients and member countries of International Solar Alliance (ISA).

Highlights of FY 21-22

• Consultancy wing has received an all-time highest order value of Rs 629.74 crore during this FY (including international orders in association with International Business Development department).

• Consultancy Wing has added new business portfolios in new energy generation & storage areas.

• Your Company has participated in 47 competitive biddings opportunities including domestic & international clients, highest ever number in a FY. We have won consultancy assignments in domestic as well as international market.

• Consultancy Wing has received ISO 9001:2015 certification on 15.6.2021.

Consultancy wing of your Company is further exploring business opportunities in emerging areas such as providing consultancy services in the area of PMC for implementation of new environmental norms e.g FGD, ZLD, De-NOx & ESP R&M, development of Solar & Renewable power projects, O&M and performance improvement of Thermal Power Plants, Owner's Engineer services for brownfield power projects, IT services e.g. ERP implementation, PRADIP, Dreams 2.0, PI systems, CLIMS etc.

12. FINANCING OF NEW PROJECTS

The capacity addition programs shall generally be financed with a debt to equity ratio of 70:30, in case of thermal and hydro projects of your Company and that of 80:20 in case of solar/ wind 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.

Further, your Company is consistently doing debt swapping in case of domestic loan and cheaper loans are being utilised to repay the older loans with higher rate of interest without paying any repayment penalty to bank.

The details of funding are discussed in the Management and Discussion Analysis Report which forms part of this Report.

13. FIXED DEPOSITS

Your Company has discontinued the acceptance of fresh deposits and renewal of deposits under Public Deposit Scheme with effect from 11.5.2013. 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 are as under:

(a) Accepted during the year Nil
(b) Remained unpaid or unclaimed as at the end of the year 6 Deposits 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.

14. FUEL SECURITY

During the year 2021-22, the supply position of coal and gas is given as under:

14.1.1 Long Term Coal Supply Agreements

- In line with the Model Coal Supply Agreements agreed between your Company and Coal India Limited (CIL) in 2009, 2012 and under Shakti Policy, Long-term Fuel Supply Agreements (FSAs) are in place with the subsidiary coal companies of CIL for an Annual Contracted Quantity (ACQ) of 167.85 Million Metric Tonnes (MMT), as on 31.3.2022 for the existing thermal stations. In addition, FSAs are in place with Singareni Colliery Company Ltd. (SCCL) for Ramagundam and Solapur Unit-2 of your Company for an ACQ of 13.74 MMT. FSAs are generally valid for a period of 20 years with a provision of review after every 5 years.

- In FY 2021-22, your Company has signed Long Term FSA for 2.54 MMT per annum with SCCL for Solapur Unit-2 (660 MW) pursuant to its coal linkage transfer from distantly located MCL sources, thereby reducing cost of generation from the plant. Further, as per decision of SLC(LT) to enhance ACQ of eligible plants upto 100% of normative quantity (i.e., quantity for 85% PLF), your Company has signed supplementary/ amendment agreements with coal companies for various plants viz., Rihand-III Unit-6, Vindhyachal-IV Unit-11&12, Mouda-II Unit-3&4, Unchahar-IV Unit-6, Gadarwara Unit-1&2 for total additional quantity of 1.75 MMT per annum.

- Due to suspension of coal mining activities at NEC (CIL) and pursuant to the Govt. policy of linkage rationalization, coal linkage of Farakka-I&II Unit-1 to 5 with NEC has been transferred and FSA is signed with ECL, whereas for Bongaigaon Unit-1&2 of your Company, the FSA with NEC has been transferred and signed with CCL (1.171 MMT) and ECL (0.15 MMT).

Fresh long-term coal linkages under para-B(i) of SHAKTI policy:

- In FY 2021-22, based on your Company request, SLC (LT) dated: 22.12.2021 recommended coal linkage for Khargone Unit-1 (660 MW) from CIL. Subsequently, CIL has allocated linkage for annual quantity of 3.336 MMT from MCL. Issuance of Letter of Assurance from MCL and signing of FSA is expected in FY 2022-23.

- Pursuant to termination of existing Letter of Assurances (LOA) of Barh-I (Unit 2 & 3) and North Karanpura (Unit 1 to 3) of your Company as per the terms of para A(i) of SHAKTI policy, Standing Linkage Committee (Long-term), SLC(LT) in its meeting held on 29.3.2022 has recommended for grant of fresh coal linkages for the plants from CIL under para B(i) of SHAKTI policy.

Coal under Bridge Linkage and other short-term

Memorandum of Understanding (MoU):

- Bridge linkages of Barh-II, Tanda-II, Lara, Darlipali, Kudgi and Barauni-II: In terms of the Govt. policy of Bridge Linkage, your Company plants viz. Barh-II, Tanda-II, Lara, Darlipali, Kudgi and Barauni-II were allocated Bridge Linkages to bridge the gap between coal from linked captive mine and requirement of the plant. The bridge linkages were granted by SLC(LT), MoC for Tanda-II, Lara and Darlipali each upto 2022; Barh-II upto 2023 and Barauni-II upto 1.9.2022. Based on above and coal quantification by CCO as per tapering based on approved mining plan of respective linked mines, MoUs with allocated coal companies are valid upto MarchRs 2022. In view expiry of Bridge Linkages, your Company has taken up before Ministry of Power / Ministry of Coal for further extension of Bridge Linkages considering present production plan of the linked captive mines. Further, Ministry of Power has recommended to Ministry of Coal for grant of extensions of the Bridge Linkages. The matter was discussed in the SLC(LT) meeting held on 29.3.2022. However, it was deliberated to consider the matter in next SLC(LT) after examination of the company proposal by Nominated Authority, Ministry of Coal.

- In relation to Kudgi, against your Company request for grant of long-term coal linkage, SLC(LT) in the meeting held on 29.3.2022 has recommended for extension of Bridge Linkage by another 01 year (w.e.f. AprilRs 2022) or till surrendering of the linked mine, Bhalumuda is completed.

- Tapering linkage of Telangana Ph-I (2X800 MW): Pursuant to transfer of tapering linkage of Telangana Ph-I (granted against linked captive mine, Mandakini-B) from WCL cost-plus to SCCL, your Company in the FY 2021-22 has signed MoU for 6.846 mMt per annum with SCCL, with validity upto MarchRs 2023.

- MoU with SCCL: A bilateral MoU was signed with SCCL for FY 2021-22 for a quantity of 8.00 MMT on best effort basis for supply of coal to Kudgi plant under Bridge Linkage and other company stations (except Ramagundam) as per requirement.

- MoU with NLC India Ltd.: Pursuant to Govt. notification of MMDR (Amend) Act, 2021 and Mine Concession (Amend) Rules, 2021, permitting commercial sale of captive mine coal up to a percent of the annual production after meeting the end use requirement, your Company has entered into a bilateral MoU with NLC India Ltd. for supply of coal from its Talabira II & III mine to the company plants during period Oct- DecRs 2021. Further, your Company and NLC India Ltd. have to entered into bilateral MoU for supply of Talabira coal for 3 years for annual quantity of 3 MMT on best effort basis.

Flexible Utilization of Domestic Coal

- To leverage potential of rationalization of coal linkages, your Company had signed a Supplementary Agreement with CIL and CIL subsidiaries for all owned JV/ Subsidiary stations on 12.4.2017 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 or any JV/ Subsidiary for optimising the Energy Charges. During the year 2021-22, Company has used 23 MMT of coal under Flexibility Utilization to address AFC under recovery and generation loss.

Agreements for supply of imported Coal

- In compliance of Govt. of India (GOI) envision to lessen use of imported coal, the company had initially reduced ~8 LMT imported coal quantity from the previous years' awarded contracts. However, revival of economy led to unprecedented demand and consumption of electricity. During the period August to September, share of coal-based generation has increased from about 62% in 2019 to 66% in 2021. As a consequence, total coal consumption during Aug-Sept, 2021 has increased by about 18% in comparison to corresponding period in 2019. This led to a gap between coal supply and coal requirement of various power plants in the country. To tide away the coal crisis emanating out of coal shortage as per directions of MoP & CEA vide letters dated 30.8.2021, 11.10.2021 and 12.10.2021, and Minutes of Meeting chaired by Hon. Minister of Power (MoP) and NRE on 18.10.2021 package quantity of running contracts was enhanced by 1.42 MMT for blending of domestic coal with Imported coal.

- Further, as per directions of Ministry of Power (MoP),

a new contract for procurement of 1.0 MMT of imported coal for 8 stations of your Company was awarded in DecRs 21.

- MoP vide letter dated 7.12.2021, further advised your Company and the JVs to procure 16 MMT and 2.5 MMT respectively of imported coal for blending @ 10% of coal requirement for 85% availability.

- Based on MoP directive your Company is procuring 16 MMT of Imported coal in 03 tranches of 7.0 MMT, 5.0 MMT and 4.0 MMT. Contracts have already been awarded for procurement of 6.75 MMT while procurement of 6.25 MMT is under process. For JVs, contracts have been awarded for 1.8 MMT while 0.67 MMT is under process.

- NTPC group of companies (on consolidated basis) have consumed imported coal amounting to Rs 3029.86 crore in FY 2021-22 as compared to Rs 719.09 crore imported coal consumed in FY 202021.

14.1.2 Domestic Coal and Imported Coal Supplies

During 2021-22, your Company received 195.03 MMT of Coal as against 173.37 MMT in FY 2020-21. Out of 195.03 MMT of Coal, 169.77 MMT was from annual contracted quantity of Coal, 8.09 MMT through Bridge Linkage/SCCL Bilateral MoU, 14.70 MMT from Captive Mines and 2.47 MMT from Imported Coal.

14.1.3 Gas & RLNG supplies

- Your Company has long-term Gas Supply Agreements (GSAs) with GAIL for supply of Administered Price Mechanism (APM) gas and Non-APM gas, which are valid upto 6th July 2026. However, because of diversion of allocated gas to CGD (City Gas Distribution) sector as per MoP&NG guidelines, APM & Non-APM gas supplies to your Company became Nil w.e.f. 16.6.2021. Your Company also has a longterm agreement with GAIL for supply of 1.1 MMSCMD RLNG on firm basis, valid upto December 2023.

- To meet the shortfall in supply of long-term domestic gas/RLNG, your Company procures Spot RLNG on limited tender basis from domestic suppliers and on 'Single Offer' basis from Public Sector gas marketing companies. These RLNG supplies are contracted on 'Reasonable Endeavour' basis with no penalty on either party for short supply/short offtake. Further, your Company has arrangement for procuring Spot RLNG on commitment basis, subject to consent of the beneficiary Discoms. Further, adequate stock of liquid fuel is maintained for meeting Grid/Discom's power requirement.

- During 2021-22, your Company received average 0.40 MMSCMD of Domestic gas as against 2.48 MMSCMD of Domestic gas received during 2020-21. Long Term RLNG & Spot RLNG offtakes during 2021-22 were 0.61 & 0.28 MMSCMD as against 0.43 & 0.54 MMSCMD during 2020-21 respectively.

14.2.1 Snapshot of Coal Mining Portfolio of your Company is as under:

Your Company currently has seven coal blocks with an estimated peak rated mine capacity of 71 MMTPA. Your Company is already producing coal from three mines

i.e. Pakri-Barwadih, Dulanga & Talaipalli. Despite being affected by COVID-19 pandemic, your Company has achieved a total coal production of 14.02 MMT from its mines during FY 2021-22, which is 27% higher production than FY 2020-21 and cumulative production was 46.39 MMT till MarRs 22. Coal dispatch was 14.86 MMT during FY21-22.

For Chatti-Bariatu coal block, all statutory clearances and priority land for commencement of mining are available. Mine Developer cum Operator (MDO) is also appointed for this mine and mining activities are expected to start in Q1 of FY22-23. For Kerandari mine, appointment of MDO is under process and major statutory clearances are also in place. Rehabilitation & land possession are under progress.

In Badam coal block, though Stage-I Forest Clearance and Environment Clearance have been transferred to your Company by Ministry of Environment, Forest, and Climate Change (MOEF&CC), GoI. Proposals for Stage-II Forest Clearance, Government land transfer, Mining lease, etc. are under process with Govt. of Jharkhand for which your Company is constantly pursuing. Tender for appointment of MDO is also floated for Badam mine. Mining operations in Kerandari and Badam coal blocks are expected to start in FY 2023-24.

In Talaipalli mine coal production is continuing from the South pit. The MDO for the main pit, appointed in AugRs 20, raised disputes over Mining Plan approved by Ministry of Coal (MOC) and the matter is sub-judice. Your Company has gone ahead with the termination of the contract. To meet the coal requirement of its power plant, Lara STPP, which is already operational, your Company has planned for continuation of coal production from 3 pits, South (and its extension), West & East. Tendering of Talaipalli South pit & Talaipalli West pit have already been done.

The mine could not be declared commercial within two years from commencement of coal production due to contractual / legal issues with the MDO. NTPC has informed the issues of MDO to Ministry of Coal and Ministry of Power and requested for their support. Issuance of fresh NIT for appointment of MDO is in progress. The delay in declaration of COD will be appropriately taken up with CERC.

Pakri-Barwadih coal project has been awarded "National Safety Award (Runner Up) - LTIFR (lost time injury frequency rate)" for large opencast mines in FY 2021-22. Talaipalli mine has secured First prize in Opencast Mines category in Annual Safety week organized by DGMS.

14.3 Initiatives through Joint Ventures and Subsidiaries:

Banhardih coal block is being developed by Patratu Vidyut Utpadan Nigam Limited (PVUNL), a subsidiary company incorporated between your Company & Govt. of Jharkhand. Mining plan for this mine has been approved by MOC on 15.7.2021. For land acquisition, Section 11 notification under The Coal Bearing Areas (Acquisition and Development) Act, 1957 (CBA Act) issued by Ministry of Coal (MOC) on 15.6.2021. Public hearing for Environment Clearance conducted on 29.12.2021 and the process for Environment & Forest clearances have been initiated. After receipt of various statutory clearances, appointment of MDO shall be done.

Your Company incorporated a wholly-owned subsidiary company named NTPC Mining Ltd. (NML) for its coal mining business. Ministry of Coal has allowed for transfer of Pakri-Barwadih coal mine of your Company, to NML on 16.12.2020. Ministry of Coal on 24.3.2021 conveyed that the request for transfer of other mines allotted under the coal mines (Special provisions) Act, 2015 (CMSP) & The Mines and Minerals Act (MMDR) Acts cannot be acceded to. However, your Company with the support of Ministry of Power is pursuing with Ministry of Coal for transfer of all the mines of your Company to NML.

15. BUSINESS EXCELLENCE (BE): GLOBAL BENCHMARKING

Your Company has developed and adopted a customized business excellence Model called 'NTPC Business Excellence Model' on the lines of globally accepted Performance Excellence frameworks such as the Malcolm Baldrige Model USA and EFQM Model of Europe.

The assessment process is aimed at identifying the areas for enhancing stakeholders' engagement, improving critical processes and developing leadership potential. The outcome of this model is identification of organizational strengths, opportunities for improvement, issues of concern and best practices.

In the financial year 2021-22, twenty-one generating stations of your Company were assessed by a team of certified assessors. Business Excellence Award for overall excellence was given to Rihand station of your Company. All twenty-one stations are now in yellow band i.e., score band above 501+. Capacity building in BE Model was undertaken and 87 senior level executives were trained in three batches.

BE Model of your Company has revised this year to make it dynamic, contextual and relevant in line with the changes in business environment and organisational requirements for current and next few years. The new revised BE Model 2021 of your Company lays special emphasis on planning and strategy, safety, and key areas of importance like stake holder engagement, digitization, employee wellness and learning & development.

Other contemporary TQM concepts and techniques like ISO, Quality Circles, Professional Circles, 5S etc. have been deployed across the organization. Dadri & Rihand are certified by JUSE for 5S system. Annual Professional Circle Convention of your Company was held at Kudgi station of your Company on 15th March 2022 where in 15 teams participated. Likewise, your Company's Quality Circle convention was held at Kahalgaon station of your Company on 10th March 2022 with 12 teams participating in the convention. Quality Circle teams Lakshya from Barh Station and Urja Jyothi from Simhadri Station of your Company had won Par- Excellence award and Excellence award respectively in the International QC Convention 2021 held at Hyderabad.

16. RENOVATION & MODERNISATION

Renovation and Modernization (R&M) of various units of your Company, especially the ones which have completed 25 years of commercial operation, is considered essential to achieve the objectives such as SAFE operation of the Units, compliance of latest statutory norms/revised Environmental norms / IEGC Code, Recovery/improvement of Efficiency of the Units, Reliability Improvement, flexible operations necessitated due to large scale integration of renewables, Sustenance of operations considering equipment health assessment observed during last 2 to 3 years, overcoming constraints on account of current operating conditions (changes in coal quality, water supply arrangements, change in law, etc.).

Investment approval accorded till date for R&M of 20 stations (Coal & Gas based) is Rs 16,547.71 crore. As against this, cumulative expenditure till 31.3.2022 is Rs 9,050.03 crore which includes R&M capital expenditure of Rs 478.25 crore during financial year 2021-22.

As a responsible corporate citizen, it has always been your Company's endeavour to ensure low levels of pollution from its power stations. With a view to maintain a clean atmosphere in and around the power plant by reduction of particulate emission levels from generating stations, Renovation and Retrofitting of Electrostatic Precipitator (ESP) packages have been awarded for 52 Units in 10* Stations, namely Tanda - (4 x110MW), Singrauli - I & II (5X200MW+2X500MW), Korba - I & II (3X200MW+3X500MW), Farakka - I & II (3X200MW+2X500MW), Vindhyachal - I & II (6X210MW+2x500MW), Rihand - I (2x500MW), Unchahar - I (2x210MW), Talcher STPS - I & II (2X500MW+4X500MW), Unchahar - II (2x210MW), Ramagundam - I (3x200 MW), Ramagundam - II (3x500 MW) and Kahalgaon - I (4 x 210 MW). ESP R&M work has been completed, during 2021-22, in 3 units namely 1x200 MW & 1x500 MW of Farakka and 1x500 MW of Singrauli and total no. of units in which ESP R&M has been completed till MarRs 22 is 39 in 08* stations of your Company.

With a view to removing technological obsolescence, renovation of Control & Instrumentation (C&I) has been taken up in 9 coal based stations namely Singrauli-I (5X200MW) & Singrauli - II (2X500 MW), Korba -I (3X200MW) & Korba - II (3X500 MW), Ramagundam -I (3X200MW) & Ramagundam - II (3X500MW), Farakka-I (3X200MW) & Farakka-II (2X500 MW), Dadri Thermal- I (4X210MW), Unchahar- I (2X210MW), Talcher STPS-I (2X500MW), Kahalgaon-I (4X210 MW) and Rihand - (2X500 MW) comprising a total of 38 units. C&I R&M has been completed in total 37 nos. units till MarRs 22.

Renovation of Control & Instrumentation (C&I) has been completed in 05 gas-based stations namely Anta (419.33 MW, 3 GT + 1 ST), Auraiya (663.36 MW, 4 GT + 2 ST), Kawas (656.20 MW, 4 GT + 2 ST), Dadri Gas (829.78 MW, 4 GT + 2 ST) and Faridabad (432 MW, 2 GT + 1 ST). On completion of these schemes, C&I systems in these units have now been brought nearly on par with the new builds. R&M of Gas Turbines was completed in 14 Gas Turbines in 4 stations namely (4x106) MW in Kawas, (4x111.19) MW in Auraiya, (3x88.71) MW in Anta and (3x144.30) MW in Gandhar.

*ESP R&M was awarded and completed in 04 units in 02 stations [Badarpur - II (2x210MW) & Talcher TPS-II (2X110MW]) but is not included above since these units are no longer in the generation portfolio of NTPC Ltd.

17. HUMAN RESOURCE MANAGEMENT

17.1 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 consistent reduction of Man-MW ratio year after year. The overall Man-MW ratio for the year 2021-22 excluding JV/ subsidiary capacity is 0.29 and 0.26 including capacity of JV/ Subsidiaries. Generation per employee was 18.95 MUs during the year based on generation of your Company's stations.

The total employee strength of your Company (including JV/ subsidiaries) stood at 17,474 as on 31.3.2022 against 18,509 as on 31.3.2021.

Particular FY 2021-22 FY 2020-21
Your Company
Number of employees 15,786 16,798
Subsidiaries & Joint Ventures
Employees of your Company in Subsidiaries & Joint Ventures 1,688 1,711
Total employees 17,474 18,509

The attrition rate of your Company is very low as most employees choose a lifetime career with your Company. During FY 21-22, our employee turnover rate was 0.37%.

17.2 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 others' 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.

17.3 Safety and Security

Occupational health and safety at workplace is one of the prime concerns. 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), ROPR, ORTs, PRTs etc. Consultants are also engaged to strengthen process safety. On various occasions, CMD and the board members of your Company addressed Senior leaders and employees.

Thirty stations of your Company are already certified with ISO:45001 and other stations are migrating to ISO:45001.

Regular plant inspection and review with Heads of Projects/ Stations is being done to guide them from time to time and to ensure that safety systems are in place. Internal Safety Audits by team of Safety Officers are carried out every year, and FY 2021-22, all your Company running stations have completed the Internal Safety Audit. 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.

The Central Electricity Authority of India (CEA) Safety audit of your Company Farakka station has been done with high appreciation from audit team for Safety Management practices. Thirty employees from your different plants have been trained for National Occupational Safety Association (NOSA) internal auditor certification.

Safety Policy was reviewed and updated to ensure accountability for Safety at all levels. In line with Safety Policy, a comprehensive Safety Framework is developed and is linked with SAP for uniform Safety Management across Organization. Fourteen number of Company level documents like Operation Directives (OD) and Operation Guidance Note (OGN) have been prepared and shared with all stations. Twenty-three specific safety training modules for contract workers have been launched and trainings as per job requirement is imparted by qualified and trained persons to enhance the safety knowledge and competency of workers. Safety modules have been released by Power Management Institute (PMI) for learning and enriching knowledge of the engineers working in O&M. New initiatives viz. Key Opinion Maker (KOM- Suraksha Mitra), Swearing-In ceremony, Surakshavali booklet, focused review of Safety by standardized format by BUH have been taken to improve safety culture across Organization.

Various safety systems at work like Permit to Work (PTW), Job Safety Analysis (JSA), Standard Operating procedures (SOP) etc. are in place for ensuring safe work practices. Height work permit, hot work permit, confined space work permit, excavation permits, and related check lists are implemented to ensure safety of workers while carrying out such specific jobs. Adequate numbers of qualified safety officers are posted at all units as per statutory rules/ provisions to look after safety of men & materials. Emergency Management Plan has been prepared by each of your station. Trainings have been done by each of your station to explain the responsibilities of key persons and regarding their role in handling of the emergency situations. Mock drills are conducted regularly to check the effectiveness of the system. Mock drills were conducted with NDRF to prepare for any extreme on-site emergency. Sites are engaging the safety consultant of international repute to uplift safety standards.

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. Non-negotiable safety terms and conditions are a part of the corporate awarded packages during tendering.

In FY 2021-22, fourteen stations of your Company have received prestigious International Safety Award from British Safety Council. In addition, two of your Company stations have received Safety Award from DGFASLI, Govt. of India. Various other safety awards have been received by many of your stations from National Safety Council,

State Governments & Independent bodies in recognition of implementing innovative safety procedures and practices.

Considerable improvement is noted in Safety performance this FY 2021-22 compared to last FY 2020-21.

Security: Your Company has established and is maintaining a secured working environment for all its installations, employees and associates by deploying CISF or SISF and/or DGR sponsored security agencies in all units as per norms / guidelines of Ministry of Home Affairs and Department of Public Enterprises. Further time to time concrete steps are being taken for upgrading surveillance and security systems at all projects/ stations as per security Inspection Report of Intelligence Bureau.

17.4 Training and Development

Your Company is successfully attracting, grooming, motivating and engaging talent. It believes in sustaining the organization as a learning organization and ensuring commitment and expertise at all times and situations so as to enable and drive business success. The Learning and Development (L&D) delivery infrastructure comprises the Power Management Institute (PMI) at the apex, the 7 Regional Learning Institutes (RLIs), the Safety Academy at Unchahar station of your Company and the Employee Development Centres (EDCs) at the stations. L&D is actively engaged in making our people future ready in terms of technology, business acumen and leadership so as to unleash their full potential towards achieving the desired business outcomes in today's VUCA world. The initiatives / programs are derived from business needs and designed to achieve the Company's strategic objectives and create value for stakeholders.

PMI has the state-of-the-art physical and digital infrastructure to impart learning in world class ambience. Its classrooms are equipped with modern facilities including smart boards, video conferencing and sessionrecording which supports contemporary pedagogy. Delivery modes include classroom, simulators, online (web based and Video-Conferencing), Virtual Reality and eLearning with increasing emphasis on technology driven platforms. In fact, in the wake of Covid-19, almost all programs were being delivered virtually on MS Teams / other such platforms.

Newly recruited Executive Trainees (ETs) undergo the Company's flagship ET training program of 1 year which involves on-the-job and simulator training besides technical, managerial and soft-skills modules. 2 ET batches were regularized during the year. Training of 4 batches including 1 all girls batch is currently underway. Planned Interventions (Foundation Course, Enhancing Managerial Competence (EMC) and Advance Management program (AMP) linked to career growth of 11 days are provided at three identified stages of careers of executives along with job-rotation and transfer to ensure experiential learning. During the year 596 executives were exposed to the planned interventions. Total 2,055 training programs were conducted during FY 21-22, resulting in a total of approximately 1,40,416 learning man-days.

Your Company takes pride in being a people friendly organization and strives to ensure safe work places. Besides safety training for employees and contract workers, your Company is imparting safety related certificate courses across the organization.

Some of the innovative talent development initiatives are as follows :

1. Technical and safety modules (mandatory and nonmandatory) and location management instructions customized as per work area and peculiarities of technology at location of posting have been assigned to 6215 O&M executives on the GpiLearn platform. They are required to complete at least the mandatory modules followed by assessments within a specified timeframe. This ensures bridging of functional competency gaps and acquisition of the required proficiency.

2. Procurement of Virtual Reality (VR) equipment, development of 50 VR modules (300 minutes) for training on Safety, Isolation and normalization of critical power plant equipments and train the trainer programs to facilitate training on VR.

3. Targeted Competency Development Programs on identified managerial competencies for those coming out as needing development on those competencies based on CPV assessment undertaken. 363 executives were covered during the year.

4. During the year 290 O&M executives underwent Samarth (job-rotation facilitation) training on the various standardized O&M modules. Similarly, 46 executives transferred to C&M and 51 executives transferred to RE underwent Samarth (C&M) and Samarth (RE) training, respectively. Samarth (Commercial) module was finalized.

5. (24*7) online Employee Assistance Program launched for all employees and family members. Includes unlimited phone/video/chat/e-counselling, assessments, recommendations, risk tagging, articles, videos, podcasts on Stress management, Coping mechanisms, Relationships, Parenting, Sleep, Diet & Nutrition, Grief, Anxiety and Restlessness, etc.

6. Training on Operation Training Simulators through remote besides off-line simulator training.

7. Considering the future of work, new age digital courses like AI, IoT, Block-Chain etc. was made available through the NASSCOM-MeITY Future Skills platform.

8. Special program for selected executives through IIT Bombay on Energy Storage (2 batches), Solar Thermal Systems (1 batch) and Carbon Capture (1 batch).

9. Preparatory course for BOE certification examination in three batches. First class Mining Operator preparatory course for 20 executives.

In the L&D domain, your Company has received the globally acknowledged ATD Best Award for 2017, 2018, 2019, 2020 and 2022, Brandon Hall HCM Excellence Awards 2019 & 2020, the nationally acclaimed ISTD award for Innovative Training Practices for 2017-18, 2018-19 and 2019-20 and the BML Munjal Award in the Sustained Excellence category for 2018 (runner) and 2019 (winner).

17.5 Employee Welfare Trusts

Your Company has established following Trusts for welfare of employees: -

- NTPC Limited Employees Provident Fund Trust manages Provident Fund of employees of your Company.

- NTPC Post Retirement Employees Medical Benefit Trust manages post-retirements medical benefit fund of the employee including separated employee of your Company.

- NTPC Employee Gratuity Fund manages the gratuity fund of the employees for payment of gratuity as per the "The Payment of Gratuity Act" of your Company.

- NTPC Limited Defined Contribution Pension Trust manages the defined Contribution Pension fund of the Employee of your Company.

17.6 Women Empowerment

Women employees constituted nearly seven percent (as on 31.3.2022) of your Company's workforce. During the year, programmes on women empowerment and development, including programmes on gender sensitization were organized. Your Company actively supported and nominated its women employees for programmes organized by reputed agencies. To maintain work life balance and to manage career aspiration, paid childcare leave is provided to women employees. Further to improve the gender diversity, your Company conducted a special recruitment drive for women.

17.7 Other Welfare Measures

In your Company, an entire gamut of benefits, from paid Childcare leave, telemedicine, medical smart card for hospitalization cases to Post-retirement Medical benefits (PRMS) to Family Economic Rehabilitation to Sneh Kiran Scheme are extended to employees to meet any exigency that may arise in a person's life.

17.8 Employee Welfare, Career Advancement & Opportunities & Quality of Work-Life

Your Company is committed to provide quality work life for its employees. Far removed from the buzz of cities, our townships are the epitome of serenity, natural beauty and close community living. A range of welfare and recreation facilities including schools, hospitals, shopping centres, recreation centres, club, gym, pool etc. are provided at the townships to enhance the quality of life and the wellbeing of employees and their families. In addition, cultural programmes involving employees and their families are also conducted.

Providing Urban Facilities at Projects/Stations (PUPs) of your Company has been another unique initiative to create better working & living conditions for employees & their families, to meet the changing needs & aspirations of young employees. From feedback of employees the concept of Club Cinema through for screening of latest movies, wi-fi facilities in hostels, recreation centers, guest houses and offices, facility for e-book in the libraries of recreation centers have been started in your Company power stations.

Further, on the occasion on 7th International Day of Yoga, a session on yoga and meditation was organized for employees and their family at various Projects/stations/ region/CC of your Company.

Your Company has well-established talent management system comprising of Performance Management System, Leadership Development System, Career Development Scheme and Succession Planning Scheme is in place to ensure that we fulfill our promise of meaningful growth and relevant challenges for our employees.

The career development of individuals is linked to diverse job exposure, location exposure, learning input through planned interventions, clearance of online e-learning functional & cross-functional modules and administration of assessment tools.

Your Company recognize the importance of Rewards and Recognition to employees in building the performance culture of the organization. To this end, we have created a culture of rewards and appreciation through celebration of various achievements and recognizing the contributions behind each success.

Your Company has introduced numerous initiatives that seek to enhance the creativity, innovation and spirit of healthy competition among its employees. These platforms give individuals the opportunity to enhance their personal growth, and at the same time, contribute to the organization. These initiatives include NTPC Open Competition for Executive Talent (NOCET-a theme based annual competition), NTPC Business Minds (Simulation Game Challenge). Medha Pratiyogita, an annual quizzing event for employees and families is a unique employee engagement activity which witnessed an overwhelming participation every year. There are 150+ active Professional circles in your Company and nearly 2000 employees participate in the Quality Circles to find solutions to problems in shop floor level.

Your Company has partnered with Archery Association of India (AAI), through this partnership, your Company aims to provide platform to Indian youth to showcase their talent and elevate India's reputation in the field of Archery Globally.

Your Company has launched e-Paramarsh which helps employees and their families to access telemedicine and help to consult a Doctor in any of the reputed hospitals of the country.

Your Company is conducting online coaching facility for children of employees of your Company studying in classes 9th to 12th. The initiatives will help the children to get exposure of various professional courses and prepare for National and state-level engineering and Medical entrance exams.

17.9 HR Unified Services

Your Company introduced HR Unified Services wherein certain HR functions of all units of a region have been centralized. A Unified HR Services portal facilitates the process where employees can login into the portal and raise their service requests.

A Shared HR Services Group from a common location in the region delivers these services resulting in reduction of manpower engaged in these activities and greater economies of scale due to centralization of activities. Application status can be tracked at employee's end resulting in greater accountability. Also, with no requirement of sending hard copies to HR the functioning supports the paperless initiative of the company.

17.10 COVID Response: Health & Safety

During the year, disruptions caused by the pandemic were effectively managed through collective and concerted efforts, leveraging the learnings from the first wave. To control workplace COVID transmission, your Company followed best practices on air management in indoor spaces while also complying with masking and sanitation protocols. Periodic inspections across business locations were conducted to ensure compliance with laid down protocols, thereby ensuring business continuity.

18. SUSTAINABLE DEVELOPMENT

Sustainability at your Company is being driven by two motives:

a. To make fundamental changes in the way we operate our businesses to transform ourselves as the most sustainable power producer.

b. To become more transparent in the timely disclosure of our social, environmental and economic performances.

To achieve the first objective, your Company has become a pioneer among its peers (Power sector/ PSUs) by developing its Sustainability Strategies i.e. The Brighter Plan 2032. As part of this strategy, your Company has identified Decarbonization, Water, Biodiversity, Circular Economy, Safety, Supply chain and Business Ethics as priority sustainability areas and strategizing on them to ensure your Company's business sustainability. Your Company has developed short-term and long-term measurable goals and objectives pertaining to these areas which is also aligned to the Company's Corporate Plan 2032. Your Company has adopted the triple bottom line approach for focusing on people, planet and profit treating them as primary pillars for business sustainability. Your Company believe that development should not endanger the environment & natural eco-systems.

Your Company has become one of the pioneers among Public Sector Undertakings (PSU) to publish Integrated Annual Report since FYRs 20 in compliance with Global Reporting Initiative (GRI) standard and as per IIRC pattern. Additionally, your Company is increasingly working towards improving the scale and size of sustainability disclosures. Currently, your Company is reporting on 7+ reporting standards and frameworks including TCFD, CDP, Stakeholder Capitalism Matrix (WEF) report etc. Sustainability Disclosures also include data of entire "NTPC group" data instead of only stations of your Company. A credible and fair third-party assurance of our Sustainability Report is a critical part of our sustainability disclosures. Your Company has received reasonable assurance (highest level) as per ISAE 3000 assurance standard by M/s KPMG.

Sustainable Development (SD) Plan for FY 2021-22 was prepared and approved by Board of Directors of your Company. As part of SD agenda, your Company is focusing on waste management, water management, promotion of renewable energy and biodiversity / afforestation activities. Action plan-based activities have been implemented at various stations of your Company during the year. To further strengthen sustainable development activities, following new initiatives were taken during 2021-22.

• Awareness programs on Sustainability/ESG and The Brighter Plan 2032 were organized covering all major stations/ regions/ departments of your Company.

• Capacity building of your Company's suppliers on Sustainable Supply Chain Policy covering the evolving environmental, social and governance/ compliance aspects of sustainable development.

• In FYRs 22 5 Stations of your Company (Sipat, Rihand, Tanda, Talcher Super, Kudgi and Jhajjar, JV Co.) have won the CII-ITC Sustainability Award 2021. It is one of the most coveted awards for sustainability in the country. Winning the Award has placed your Company among the top performers and further enhanced brand image of your Company.

• Your Company has increased frequency of regular communications with notable Environmental, Social, and Governance (ESG) rating analysts at global level to address controversies and sharing of data for improvement of ESG rating of your Company.

• Developed ESG profile of your Company in association with a third party for ESG disclosures as per prevalent 12 ESG platforms.

• Your Company has co-founded the "Global Alliance for Sustainable Energy" along with 16 global energy players such as ENEL, Iberdrola, 3M to ensure renewables are wholly sustainable for people and the planet and lead a just transition way towards cleaner fuel.

• In collaboration with US-AID, your Company is supporting a unique Biodiversity Project titled

"Narmada Landscape Restoration Project" along River Narmada between Maheshwar and Omkareshwar dams. With an investment of about Rs 25 crore, this project will be benefitting the local population, Indore City and Madhya Pradesh at large as the project is aimed to enhance green cover, improve water retention, the crop diversity including to promote organic farming and marketing.

18.1 Inclusive Growth -Initiatives for Social Growth

18.1.1 Corporate Social Responsibility

CSR has been synonymous with your Company's core business of power generation. Your Company's spirit of caring and sharing is embedded in its mission statement. Your Company has a comprehensive Resettlement & Rehabilitation (R&R) policy covering community development (CD) activities, which has been revised and updated from time to time. CD activities in green field area are initiated as soon as project is conceived and thereafter- extensive community / peripheral development activities are taken up along with the project development. CSR Policy was formulated in July 2004 and revised in 2010, 2016 and 2019 as "NTPC Policy for CSR & Sustainability" in line with Companies Act, 2013 and Department of Public Enterprises (DPE) Guidelines for CSR. It covers a wide range of activities including implementation of a few key programmes through NTPC Foundation- a charitable Trust set up by your Company to mainly serve and empower the Physically Challenged and Under Privileged Sections of the Society & women.

Focus areas of your Company's CSR & Sustainability activities are Health, Sanitation, Safe Drinking Water and Education. Moreover, Capacity Building, Women Empowerment, Social Infrastructure livelihood creation and support through innovative agriculture & livestock development, support to Physically Challenged Person (PCPs) and activities contributing towards Environment Sustainability have also been taken up. Your Company commits itself to contribute to the society, discharging its corporate social responsibilities through initiatives that have positive impact on society, especially the community in the neighborhood of its operations by improving the quality of life of the people, promoting inclusive growth and environmental sustainability.

Preference for CSR & Sustainability activities is being given to local areas around Company's operations, ensuring that majority CSR funds are spent for activities in local areas. However, considering Inclusive Growth & Environment Sustainability and to supplement Government effort, activities are also taken up anywhere in the country. During the year, about 450 villages and more than 400 schools have been benefitted by your Company's various CSR initiatives at different locations. Your Company's CSR initiatives have touched, in one way or the other, the lives of around 14 lakh people, residing at remote locations.

Apart from the CSR activities undertaken in and around stations to improve the living conditions of the local communities, other CSR initiatives undertaken pan- India are mentioned in the Annual Report on CSR activities annexed with this Report.

Your Company spent Rs 356.72 crore during the financial year 2021-22 towards CSR initiatives, which surpassed the prescribed two percent amount of Rs 281.80 crore, thus achieving a CSR spend of 2.53%.

18.1.2 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 your Company under CSR are covered in the Annual Report on CSR annexed as Annex-VI to this Report.

18.1.3 Rehabilitation & Resettlement (R&R)

Your Company is committed to helping the population affected on account of land acquisition. Your Company has been making efforts to improve the Socio-economic status of the Project Affected Families (PAFs). As a part of its decision-making process, your Company has an R&R Policy since the year 1993 which has been amended from time to time to keep abreast with the Govt. guidelines. Your Company's latest R&R Policy-2017 is in line with the extant Land Acquisition Act - The RFCTLARR Act, 2013 (The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013).

R&R activities are initiated at your Company's projects by undertaking need-based community development activities in the areas of health & sanitation, education, drinking water, capacity building, infrastructure, solar electrification, etc. by formulating the 'Initial Community Development (ICD) Plan' in consultation with concerned Panchayats, District Administration and other Stakeholders. Your Company addresses the R&R issues in line with the extant R&R Policy of your Company/ Central Govt./ State Govt. / extant Land Acquisition Act, with an objective, that after a reasonable transition period, the conditions of PAFs improve or at least they regain their previous standard of living, earning capacity, and production levels.

As per your Company's R&R Policy-2017, which has been aligned with the 'The RFCTLARR Act 2013', a Social Impact Assessment (SIA)/Census Survey will be conducted by the State Govt. during the process of land acquisition for the project, so as to collect detailed demographic data of the area. This shall form the basis for the preparation of the 'Rehabilitation and Resettlement (R&R) Scheme' by the 'Appropriate Government'. The R&R Scheme consists of measures for Rehabilitation & Resettlement and need- based CD infrastructure in Resettlement Colony (RC).

Additionally, your Company has retained the good practices on the Community Development (CD) activities which are primarily aimed at socio-economic development in the PAVs (Project Affected Villages) and the Project's vicinity. This is to ensure that the displaced families in the RC (Resettlement Colony) or the affected families settling in the neighboring villages may secure for themselves a reasonable standard of community life.

Expenditure on implementation of the R&R Plan is part of the Capital cost of the project. The Plan is implemented in a time-bound manner so as to complete it by the time of the project's commissioning. Upon completion of the R&R Plan implementation, a Social Impact Evaluation (SIE) is conducted by a professional agency to know the efficacy of the R&R Plan implementation for future learning & corrective actions, if any.

A. R&R Achievements during the year:

• Rehabilitation and Resettlement (R&R) Plan:

R&R activities were implemented at the Greenfield / Brownfield Thermal Power projects of your Company - Barh, Darlipali, Gadarwara, Kanti, Khargone, Kudgi, Lara, Meja, Mouda, North-Karanpura, NPGC, Patratu, Solapur, Tanda-II, Telangana, Hydro projects- Tapovan- Vishnugad & Rammam-III and Coal Mining Projects at Pakri-Barwadih, Chatti-Bariatu, Kerendari, Dulanga and Talaipalli as per the R&R / CD Plans, which were finalized earlier in consultation with the stakeholders and approved by the State Govt.

Re-appropriations in cost provisions of R&R / CD Plans, as required on a case-to-case basis, for specific activities in view of the request/ needs of stakeholders/ district administration, were also approved to take care of the local needs & requirements.

B. Focus Areas for Community Development activities:

The CD activities are generally initiated by your Company under ICD (Initial Community Development) Policy and subsequently under the R&R/ CD Plan of the Project. Your Company is sensitive to the needs and aspirations of the Project Affected Families (PAFs). Your Company also provides for Stakeholder's Participation through its Public Information Centers/ R&R Offices/ Village Development Advisory Committee (VDAC) Meetings to disseminate useful information sought by the villagers. Other useful information is also communicated through notices, pamphlets, letters, etc. from time to time.

In the last 8 years up to FY 2021-22, more than Rs 2,022 crore worth of expenditure were incurred by your Company towards Community Development (CD) works by various Projects under R&R Plans.

• Drinking water - Planning and implementation of activities towards access to drinking water for 100% coverage of all Project Affected Villages are undertaken. Your Company's Policy- Jal Jyoti Mission embarks upon ensuring safe drinking water and rejuvenation of ponds in its project-affected villages.

• Capacity building / Skill up-gradation - Training programs were conducted by various projects towards the skill enhancement of youths. The specific focus was on imparting training to the villagers on modern farming methods. The support to dependents of PAFs for ITI training was also extended to increase their employability.

• Education - Infrastructure created for Medical College cum Hospital at Sundargarh (Odisha) is ready. A portion with 200-bed facility was utilized by the District Administration as Covid Care Centre cum Isolation ward for Corona virus-infected patients. It helped in contributing to Govts. efforts towards saving the precious lives. Financial assistance was extended towards up-gradation of infrastructure and other basic amenities including setting up of latest equipment in the existing Govt. Medical College at Raigarh (Chhattisgarh).

Construction of the Engineering College at Shivpuri (MP) has been completed and its Academic Sessions have already started (since Nov. 2020). Support has been extended for the construction of Hydro Engineering College, Bilaspur (Himachal Pradesh). Building constructed for Govt. Polytechnic at Dhak (Joshimath) is now being utilized by the Govt.

Your Company has the Policy on Improving Learning Outcomes & Quality of Education for children studying in Government Schools of its project- affected villages

• Health - For the benefit of PAFs and neighboring populations, medical outreach through Mobile Health Clinics & Medical Camps/ NTPC's own Hospital set-ups is ensured. Support is extended by the projects in augmenting the existing health- care infra in the vicinity of various projects. Your Company has the Policy on Maternal and Child Health Care to provide 650 days of antenatal/prenatal & postnatal preventive health care to expectant & new mothers and new born babies.

• Covid related support by Your Company

? Covid ICU beds at District Hospital Khargone station & Oxygen Bed Set-ups in 05 Blocks of Khargone station of your Company.

? Support extended by the Projects to the District Authorities and neighboring communities by providing provisions such as food items, beddings, sanitizers, masks, etc. besides carrying out sanitization & awareness drives in villages.

? PPE Kits, Ambulances, Infrared Thermometers, DG Set, etc. to Uttarakhand.

? Installation of Ventilators & Oxygen Piping at Hazaribagh Govt. Hospital.

18.2 Environment Management -

Environment Policy of your Company:

"To provide cleaner energy by committing to highest possible levels of performance in environmental compliance, practices and stewardship."

Your Company has always envisaged environment protection and management along with optimized usage of natural resource as inherent feature at the time of inception of all projects of your Company and focuses its efforts to minimize the impact of its plant operations on surrounding environment and concerned ecosystem.

Your Company undertakes comprehensive environment management plan right from conception of project, selection of site, source selection (Land, Coal & Water resources) and technology for power generation and pollution control. In case of old stations, your Company has undertaken massive renovation & modernization to upgrade pollution control equipment's wherever necessary. Your Company has also taken initiative for installation of Flue gas desulfurization (FGD) system for SOx emission control and Combustion Modification for NOx emission control to comply with revised emission norms as per The Ministry of Environment, Forest and Climate Change (MOEF&CC) notification.

In new projects, around 18-23% of the project cost is spent on main environment pollution control systems such as High Efficiency Electrostatic Precipitators (ESPs), Effluent Treatment Plant (ETP), Ash Water Recirculation System (AWRS), Coal Settling and Separation Pit (CSSP), Dry Ash Extraction System (DAES), Dust Extraction & Dust Suppression system (DE&DS), Sewage Treatment Plant (STP), Flue Gas Desulfurization (FGD) and DeNOx systems. For Online monitoring of emissions and effluent monitoring, Continuous Emission Monitoring System (CEMS), Effluent Quality Monitoring System (EQMS), Continuous Ambient Air Quality Monitoring System (CAAQMS) are operational at all operating stations and included in main EPC packages for the upcoming units/projects. Your Company has adopted advanced and high efficiency technologies such as super critical boilers at new stations.

Your Company is augmenting its capacity with green power by installing Solar Power, hydel power, wind power, hybrid power plant in combinations e.g. Wind & Solar, Solar & Thermal and small hydel power systems attached to its thermal power stations to encourage garnering of renewable energy resources. These measures are aimed not only to achieve reducing dependency on fossil fuel based thermal power, it also minimizes its contribution to pollution along with optimized consumption of precious natural resources. These efforts further lead to reduction in water and Carbon footprints of your Company. All stations of your Company are ISO 14001 certified or in process of acquiring certification for their sound environment management systems and practices.

Your Company has signed Memorandum of Understanding (MoU) with Indian Institute of Technology, Kanpur to conduct comprehensive study on Source Apportionment Study of air pollution at and around Dadri and Jhajjar station, JV Co. to evaluate the contribution of various pollution sources in ambient area of that region and contribution of coal based station in particular, if any.

Towards its commitment to reduce, reuse and recycle the most prestigious natural resource i.e. water in eco-friendly manner your Company has revised and released "Water Policy-2022" to minimize the water footprint to extent possible levels on basis of techno-economic approach in Company's operations.

Your Company has signed CEO water mandate (UN Global Compact initiative that mobilizes business leaders on water, sanitation, and the Sustainable Development Goals) on 23.3.2021, which is a highly collaborative partnership between the United Nations Global Compact, the Government of Sweden and a group of committed companies and specialized organizations dealing with the problems of water scarcity and sanitation. CEO Water mandate is designed as a private-public initiative with a focus on developing strategies and solutions to contribute positively to the emerging global water crisis.

18.2.1 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 maintain Particulate Matter (PM) emissions well below the applicable permissible limits. All upcoming units have been planned & designed with state of art Air Pollution Control systems (ESPs, De-NOx and FGD system) with high efficiency to meet new emission norms. Performance enhancement of ESPs operating over the years is being enhanced to achieve the desired emission level to meet revised emission levels by augmentation of ESPs size (increased height, additional fields, charging of dummy fields, retrofitting of advanced ESP controllers, new technology i. e. MEEP (Moving electrode Electrostatic Precipitators) and adoption of sound O&M practices. Your Company has planned for Renovation & Modernization of ESP's in 50 units, out of which R&M of ESP's work has been completed in 37 units and in balance 13 units work is in progress.

For control of SOx, first wet FGD has been commissioned and operational at Vindhyachal Station of your Company. Your Company has also commissioned Dry Sorbent Injection (DSI) based FGD in four units of Dadri Stage-I. Your Company has awarded FGD packages for 60GW+ capacity and execution is in progress to comply the new norms for SOx emission as per the timeline Notified by MoEF&CC vide notification dated 31.3.2021. Erection and commissioning of FGD is in advance stage at various Plants of your Company.

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 optimization). To lower down the NOx emission to the extent possible levels, combustion modification has been awarded for 20GW+ capacity. Combustion modification work has already been completed in 29 units and work will be completed in balance units within the timeline given by MOEF&CC. To comply with new norms for NOx emission applicable

to units commissioned after 1.1.2017, pilot study based on Selective catalytic reduction/ Selective non-catalytic reduction (SCR/SNCR) technology was conducted and report submitted to concerned authorities for consideration and finalization of technically viable emission limit and finalize the optimal solution and suitable technology for De-NOx system suitable for Indian Coal.

Change of secondary fuel from Heavy Fuel Oil (HFO) to alternative fuel Light Diesel Oil or Low Sulphur Heavy Stock (LDO or LSHS having low sulfur content) scheme implemented in all stations in NCR and state of UP and Haryana to minimize the SOx emission during the startup of coal-based units.

Your Company has installed Dust Extraction and Dust Suppression systems in coal crusher house, transfer points, coal staking yard and coal unloading locations in the CHP areas in all coal-based stations. Your Company has taken appropriate measures for fugitive dust control system in ash handling areas and ash dyke areas to mitigate remote chance of fugitive dust scenario.

18.2.2 Control of water pollution:

Your Company as a responsible corporate entity for environment has proactively initiated steps towards water stewardship in power generation sector. Your Company released its revised Water Policy-2022 and Rainwater harvesting Policy-2018 to set own benchmark in water consumption in power generation by setting its aim & objectives for various water conservation and management measures by using 3Rs (Reduce, Recycle & Reuse) as guiding principle. Water bodies rehabilitation, rejuvenation & restoration, water withdrawal optimization depending on the sustainable water withdrawal capacity and rejection of water bodies as probable water source, which are recognized as environmentally sensitive due to their relative size and habitat for ecologically sensitive species. Rainwater potential study is being conducted on "PAN NTPC" basis to create facilities for harvesting full Rainwater potential.

All stations of your Company are equipped with advanced wastewater treatment facilities such as state of art technology-based Sewage Treatment Plant (STP), Liquid Waste Treatment Plants (LWTP), Coal Slurry Settlement Pit (CSSP), Ash Water Recirculation System (AWRS) for treatment and reuse of treated effluents.

Your Company is having closed cycle condenser cooling water systems with higher Cycle of Concentration (COC), high concentration slurry disposal (HCSD) system, rainwater harvesting system to optimize water consumption. Reuse of treated effluent in ash slurry disposal and reuse of treated sewage effluent for horticulture purposes are few measures implemented in all stations. For effective monitoring of water use, flow meters with integrators installed at all designated locations in all stations. Real time specific water consumption is also being monitored in water dashboard.

In view of water stressed scenario and new norms for specific water consumption, water conservation and reduction in specific water consumption enables your Company to ensure compliance of new norms on specific water consumption. Your Company has installed Air Cooled Condenser at Patratu and North Karanpura, which will be trend breaking initiative in specific water consumption in power sector of country. Dry bottom ash disposal system is also being installed at North Karanpura and Patratu to save water consumption.

18.2.3 New Environmental Norms Implementation Plan and Challenges:

> SOx, NOx & SPM reduction

Indian power sector is undergoing a significant change that has redefined the industry outlook. The focus has now shifted to ensure a safer environment along with sustainable power generation. Being the premier power generating company in the country, the onus is on your Company for achieving the stringent new emission limits for the power plants across the country.

In order to comply with the applicable new environmental norms notified by MOEF & CC vide gazette notification dated 7.12.2015 pertaining to SO2, FGD system will be required to be installed in the existing as well as under construction coal fired power plants. Your Company along with its JV Companies is having around 149 units (operating units as well as under construction units) of

64.2 GW capacity. Your Company is taking a lead role in the implementation of FGD. Your Company has already issued tenders for all units that covers operating as well as under construction units. Further, FGD in Vindhyachal Stage-V is already in operation and Dry Sorbent Injection (DSI) system (for reduction of SO2) is commissioned in 4 units of 210 MW at Dadri Station of your Company. FGD installation Work in 60,940 MW is underway. This has also set up an example in the Industry for your Company's commitment towards the greener environment.

As a corporate trend setter, your Company is also providing consultancy for installation of various environmental control system to state utilities like HPGCL, PSPCL, UPRVUNL, DVC, SSCL, NALCO etc. Your Company is also continuously assisting CEA/MoP in formulating various measures in implementing new environmental norms.

For controlling the NOx, various De-NOx technique shall be implemented based on the limits prescribed in the norms. Your Company has started working on this. Combustion Modification in 28 units of around 13 GW including units located in NCR i.e. 2 units of Dadri, 3 units of Jhajjar have already been completed. Further, award is already placed for Combustion modification for 50 units of around 21 GW. According to the latest environmental norm, NOx emission from power plants installed after 1.1.2017 will have to be below the limit of 100 mg/N.Cu.m. Selective Catalytic Reduction (SCR) is a proven technology for low ash coal for Nox emission control, however, it is yet to be proven for abrasive & high ash content Indian coal. In view of this, Pilot tests have been conducted at seven stations of your Company by various SCR system suppliers to assess the suitability of SCR technology for Indian coal. Results of the tests submitted to Hon'ble Supreme Court. Hon'ble Supreme Court has constituted a committee to review the NOx norm. Based on decision on NOx Norm, plan & strategy for future will be prepared.

For particulate emission reduction, most of the units of your Company are complying with the SPM norms. ESP R&M is underway in around 4 GW capacity in 13 units for meeting the new environmental norm.

The SO2 & NOx emission levels in the country will plummet to 30% of what it is presently after installation of FGD technology even after adding capacity of another 70 GW from the present year.

> Facilitation for Ash Utilization

To facilitate ash utilisation, in recent time your Company has taken various initiatives like installation of dry bottom ash handling system, installation of de-watering bins, rail loading system for transportation of dry fly ash, feasibility study for large capacity Silo etc.

Dewatering bins for bottom ash are under implementation stage in North Karanpura Station. It is also under planning stages in few other projects/stations of your Company like Ramagundam, Sipat, Korba, Barauni etc.

In its endeavor to promote fly ash utilization, your Company is considering implementation of fly ash classification and Bagging Plant system for its future coal based thermal power projects. Further, feasibility report has been prepared for implementation of Classification system & Technical Specification of Bagging plant has been prepared for studying the feasibility of installation of bagging plants in your Company's different coal fired power stations. New Project for Fly ash classification, grinding & bagging system has been taken-up at Talcher- Kaniha to facilitate export of Fly ash.

Large scale ash utilization will be supplemented greatly when huge quantities of ash produced from coal fired thermal power plants could be transported to the distant location where demand of ash is more. To transport ash from power stations to distant demand Centres, rail transportation is being actively considered. To facilitate rail transportation of fly ash, ash rail loading system is under implementation in your Company's upcoming and underconstruction coal fired projects. Further, plans are afoot for provision of such ash rail loading system in various operating power stations like Barauni, Sipat, Singrauli etc. Furthermore, for enabling temporary storage of massive quantities of fly ash at demand Center, initial study for construction of large capacity fly ash Silo at distant demand centre has been made. For unloading of huge quantities of fly ash from railway wagons at demand Centre, Technical Specification for fly ash unloading system from railway wagons has been prepared for implementation at Dadri Station. Discussions are also underway with Railways for required logistic supports. New Project has been taken-up for Dry Fly ash transportation up to Gorbi Mine end from

Vindhyachal by Rail wagons and subsequently disposal into Mine Void in Slurry form.

18.2.4 Real Time Environment Monitoring System

Your Company remains a benchmark setter in Environment monitoring & protection. As pioneer in environment monitoring your Company have already installed Ambient Air Quality Monitoring Stations (AAQMS) consisting of SO2, NOx, CO, PM 2.5, PM 10 analysers and Continuous emission monitoring systems (CEMS) consisting of SO2, NOx and Particulate matter analysers for Stack emission and Effluent Quality Monitoring System (EQMS) consisting of pH, TSS and Temperature analyzers for Effluent monitoring in all its operating Stations/ Units.

Mercury analysers for emission monitoring are installed in all units wherever central or state regulator stipulated condition for the same. All ambient air quality monitoring data from CAAQMS, Stack emission data from CEMS and effluent monitoring data from EQMS is being transmitted to CPCB & SPCB as per statutory stipulations.

18.2.5 Tree Plantation

Your Company has undertaken massive tree plantation in mission mode covering vast areas of land in and around its projects since inception. A total of more than 37 million trees have been planted throughout the country including 10 million trees planted during 2016-17 under accelerated afforestation programme. Your Company has planted 10.44 lakh saplings during financial year 2021-22 even after Covid-19 pandemic.

After successful demonstration of pilot project based on Miyawaki plantation technology at Ramagundam station during 2019-20, Your Company has replicated the Miyawaki plantation technology-based plantation and planted more than 62000 saplings whose biomass production per unit area is 16 times higher than the conventional plantation. Replication of this technology in plantation will create more efficient carbon sink for Company.

The afforestation has not only contributed to the 'aesthetics' but also helped in carbon sequestration by serving as a 'sink' for pollutants 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 NDC in COP 21, by planting 4.0 million saplings during 2022-26 @ 1 million per year.

18.2.6 ISO 14001 & OHSAS 18001 Certification

Amongst all commercially operational stations of your Company, 23 stations have ISO-14001 and OHSAS 18001 certifications and for four stations, certifications are under renewal by reputed National and International certifying agencies in recognition of its sound environmental management systems and practices. Certification is in process for newly commercial stations of your Company.

18.2.7 New Projects, expansions and Station Engineering

NIT has been published for Talcher Thermal Power Station- III expansion for (2x660 MW) units by your Company.

Further, your Company is exploring the options to develop the following projects:

a. Singrauli STPP, Stage-III

b. Lara STPP, Stage-II

These projects are under different stages of development.

In order to provide prompt engineering support to our stations at your Company, a dedicated Station Engineering team has been formed which interacts with the stations on continuous basis and ensures that site engineering issues including ash dyke modifications/augmentations are resolved expeditiously which is of prime importance to the generation sustenance of your Company. Station Engineering team also strives for continuous system improvement based on feedback from various stations.

Your Company is also gearing up for tapping into the huge R&M potential of existing coal fired stations in the country.

18.2.8 Nuclear Technology

Prime Minister of India recently committed at the COP26 climate change conference in Glasgow, Scotland, United Kingdom that India would achieve net-zero emissions by 2070. It is imperative that to meet this target all RE and low carbon power generation resources will have to be mobilized. Nuclear Power plays a major role to meet base load due to its high availability and continuous generation as against other RE and hydro resources. India needs speedier and cost competitive nuclear capacity to meet its Net Zero targets and expedite clean energy transition.

Your Company is preparing a Roadmap for Nuclear Generation considering the current generation size of your Company as well as load growth and the net zero energy system target that India has established for 2070. The roadmap shall address both near term and longer- term nuclear options that are best suited for India.

In addition, the Nuclear Roadmap will address the needs of both your Company and the Indian Civil Nuclear Industry to deliver this transition to nuclear thereby addressing issues such as training and development of your Company to become a nuclear utility owner/operator, licensing requirements for the new plants, nuclear export control considerations, civil nuclear liability status and development needs, operational and maintenance infrastructure to support a new fleet of reactors, as well as nuclear waste considerations.

Additionally, your Company's development of nuclear technology may also include consideration of light water reactor (LWR), Small Modular Reactors (SMRs), and advanced reactor SMRs (Gen IV plants).

18.3 Quality Assurance and Inspection (QA&I)

Your Company lays great emphasis on the quality of plant and machinery that are sourced for power plant construction and also on the spares and consumables that are required to support the day-to-day operations of your Company.

The model followed for Quality Assurance seeks to ensure that the Plant Reliability is realized through thoughtful planning and building. Quality attributes start from raw materials, manufacturing, inspection and testing up to erection and commissioning. Each item/sub-system required for construction is subject to rigorous tests and inspection at the appropriate stages to ensure conformity to specified requirements.

Your Company has committed adequate resources for maintaining effective Quality Management System. This includes corporate level Quality Assurance team, Inspection Engineers at various locations and Field Quality experts at projects/ sites of your Company.

Your Company's robust performance on all operational parameters, is a testimony to the soundness of the quality system which is in operation. Your Company is represented in various technical committees of International Organization for Standardization (ISO), Bureau of Indian Standards (BIS) and Importer -Exporter Code (IEC) and is actively contributing in upgradation of power sector related standards and technology to promote align with best practices followed internationally.

Your Company's digitalization initiatives are further strengthened with the Integrated PRADIP (Pro-Active and Digital Initiatives to become Paperless) based QA & I business processes.

2nd & 3rd wave of COVID-19 pandemic has affected the entire world and India is no exception to it. Your Company managed inspections at manufacturer works by utilising digital technologies in carrying out remote inspections by various Regional Inspection Offices (RIOs) thereby maintaining the continuity of project supplies with specified quality & Re-affirmed the 'can do spirit'.

Advanced NDE technology, latest welding equipment & smart monitoring of storage area has been envisaged for the upcoming projects.

18.4 Clean Development Mechanism (CDM)

Your Company is pioneer in undertaking climate change issues proactively. The company has taken several initiatives in CDM Projects in Power Sector.

Five of its renewable energy projects viz. 5 MW Solar PV Power Project at Dadri, 5 Mw Solar PV Power Project at Port Blair (A&N), 5 MW Solar PV Power Project at Faridabad and 8 MW small hydro power project at Singrauli and 50 MW Solar PV Plant at Rajgarh (MP) have already been registered with United Nations Framework Convention on Climate Change (UNFCCC) CDM Executive Board.

15 MW Solar PV Power project at Singrauli, 10 MW Solar PV project at Talcher and 10 MW Solar PV Power Project at Unchahar are registered in UNFCCC CDM Programme of Activities (PoA).

Registration work is under progress for 200 MW capacity of 250 MW Anantpur solar Power project under GCC Program (voluntary mechanism promoted by the Gulf

Organization for Research and Development which has been introduced recently) and 1,502,416 ACCs are expected to generated after verification exercise for first 5 years.

Further, registration work of 22 nos. (3202 MW) RE project(s) is proposed to be taken up under GCC (Global Carbon Council) program.

6173 nos. of Certified Emission Reductions (CERs) for 5 MW Solar PV Power Project at Port Blair (A&N) has been issued by UNFCCC CDM Executive Board. Another 5842 nos. of CERs have also been issued by UNFCCC CDM Executive Board for 5 MW Solar PV Power Project at Dadri and 21,011 nos. of Certified Emission Reductions (CERs) has been issued for 5 MW Solar PV Power Project at Faridabad. Further, 80,278 nos. of CERs are expected shortly, after completion of verification exercise of 50 MW Rajgarh Solar project.

Further, Registration of 50 MW Solar PV power project at Anantpur, 260 MW Solar PV power project at Bhadla, 250 MW Solar PV power project at Mandsaur and 50 MW Wind power project at Rojmal has been done in Verified Carbon Standard (VCS) program. A total of 10,85,005 and 20,89,638 Voluntary Emission Reduction (VERs) has been issued for these projects after completion of 1st and 2nd Verification exercise. Further, 11,76,114 VERs are expected shortly after completion of 3rd verification exercise for these projects.

Prior consideration forms have been sent to United Nations Framework Convention on Climate Change (UNFCCC) and Ministry of Environment and Forests (MoEF) for our upcoming following Solar Projects : 140 MW and 85 MW at Bilhaur, 20 MW at Auraiya,100 MW floating solar at Ramagundam, 25 MW floating solar at Simhadri, 70 MW 6 22 MW floating solar at Kayamkulam, 160 MW at Jetsar, 20 MW floating solar at Auraiya, 20 MW at Rihand, 1692 MW CPSU Scheme (Trench-I & Tranche-II projects), 90 MW at Anta and 23 MW at Solapur.

Further, Prior consideration forms have also been sent for NREL projects (Wholly owned subsidiary of NTPC Limited): 150 Mw at Chhatagarh, 320 MW at Bhensara,150MW at Limdi, 200MW at Waghodia and 150MW wind energy project at Dayapar, Gujarat.

18.5 Ash Utilisation

During the year 2021-22, 711.74 lakh tonnes of Ash was generated and 80.94 % viz. 576.10 lakh tonnes of Ash had been utilized for various productive purposes by your Company.

Important areas of Ash utilization are - Cement Industry, Ready Mix Concrete plants (RMC), Road Projects / Embankment, Brick / Block manufacturing, Mine filling & Land development. 8 nos. of your Company stations achieved Ash utilization value of 100 % or above.

Your Company is also pursuing new initiatives for Fly Ash utilization like Fly Ash based Geo-Polymer Concrete Road, setting up Ash based Light Weight Aggregate (LWA) plant, Fly Ash based Nano Concrete Aggregate (NACA), Use of Fly Ash in Agriculture, Production of zero cement ash based Geo Polymer Concrete aggregate and sand and also use of Fly Ash in Gypsum Vermiculate Plaster (GVP) for plastering work.

Dry Fly Ash and Pond Ash from all stations of your Company is being issued through transparent bidding to all users.

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 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 2021-22 from your Company's Stations is at Annex-VII of this Director Report.

18.6 Centre for Power Efficiency and Environmental Protection (CenPEEP) - towards enhancing efficiency and protecting Environment

CenPEEP is an instrumental in implementation of Energy Efficiency Management System (EEMS) consisting of periodic assessments, field tests, performance gap analysis deviations and updating of action plans at all stations of your Company.

CenPEEP is working for efficiency and reliability improvement in stations through strategic initiatives, development and implementation of systems, performance and guarantee tests in new units and introduction of new techniques & practices. Critical efficiency parameters, draft power consumption, efficiency improvement through overhauling is 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, trending the degradation of equipment performance and taking corrective measures.

Your Company initiated a unique voluntary program of Greenhouse gases (GHG) emission reduction by establishing 'Centre for Power Efficiency and Environmental Protection (CenPEEP)' and under this program, it is estimated that cumulative CO2 avoided is 60.28 million tonnes since 1996, by sustained efficiency improvements.

CenPEEP is also working towards reduction in specific water consumption and auxiliary power consumption in coal and gas stations. A dedicated group conducts regular energy audits to identify potential improvement areas and improvement actions. Further CenPEEP is also associated in carrying out water audits of stations and taking corrective actions for reduction in water consumption.

CenPEEP is also involved in structured and statutory energy audits, which helps to identify potential areas of improvement in APC reduction to be addressed within time bound implementation schedule.

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 performance improvement of Boiler & Auxiliaries, Turbine & Auxiliaries, Cooling Towers, new technologies like Reverse Charge Mechanism (RCM), Product data management (PDM) technologies etc.

Your Company has taken Electric Power Research Institute (EPRI) membership in the areas of Boiler life & Availability improvement, Steam Turbine-Generators & Aux. system and Combustion & Coal Quality impacts to increase the knowledge, expertise of the company and undertake collaborative research projects for improving efficiency and reliability of units.

All coal & gas stations of the company have participated under Perform, Achieve & Trade (PAT) scheme of Government. Till now Energy Savings Certificates of PAT Cycle-I and II have been issued by Bureau of Energy Efficiency (BEE). Overall, currently your Company has 1.81 Lakh surplus ESCerts for further trading, as & when resumed by BEE.

Your Company has taken an initiative for complete replacement of existing lighting with LED light fittings at its all stations including townships, which is nearing completion.

Water Withdrawal per year (in lakh KL)

Sl. No. Type of Water Quantity Consumed 2021-22
1 Total Water withdrawal 6626.74 Lakh KL*
2 Per unit withdrawal 2.96* Litre/kwh
*NTPC coal and gas stations on closed cycle system

19. NTPC Energy Technology Research Alliance (NETRA)

Your Company understands the importance of Research and development (R&D) in the ever-changing dynamics of the energy sector. It also firmly believes that assimilation of knowledge and its conversion into technologies shall be the key differentiator in coming times. Technological progress thus achieved, in aggregation, improves the country's energy security, economic growth and environmental sustainability. Concurrently, it plays a crucial role in determining the competitiveness of companies in the marketplace - both nationally and internationally.

We, in your Company, fully recognize R&D as the cornerstone of technological advancement. Therefore, we have incorporated R&D in our long-term vision and strategy for the benefit of the company and society at large. Your Company has been assigning around 2% of Profit before Tax (PBT) consistently for R&D related activities.

As we gaze towards the future, it is of paramount importance that your Company as power generation company needs to adapt to counter emerging challenges of power sector and at the same time it is equally important that we as a company should increase our presence across entire electricity supply chain and R&D is a vital step to achieve that. Your Company has always taken upon itself to incorporate innovative technologies to enhance the safety, reliability, and efficiency of power plants through a prudent mix of development, adoption, and adaption of frontier technologies. Through our R&D centre, NETRA, we are constantly making efforts to address the major concerns of the power sector - as well as exploring and tapping the potential opportunities available.

Your Company has always taken upon itself to incorporate innovative technologies to enhance the safety, reliability, and efficiency of power plants through a prudent mix of development, adoption, and adaption of frontier technologies. We are constantly making efforts to address the major concerns of the power sector - as well as exploring and tapping the potential opportunities available. Towards this direction, we established NETRA in 2009 as state-of-the-art center for research, technology development and scientific services.

NETRA collaborates with leading institutes, technology players and service providers both at national and international level. A Research Advisory Council (RAC) comprising of eminent scientists and experts from India and abroad has been constituted to steer NETRA for high end research. In-house Scientific Advisory Council (SAC) has also been constituted to provide directions for improving plant performance & reducing cost of generation of your Company.

The focus areas of NETRA are continuously evolving with respect to the dynamic nature of power sector and presently our main focus for R&D is Carbon capture and utilization technologies, ash utilization technology, Waste to energy, water technology, in addition to earlier focus areas of Efficiency Improvement & Cost Reduction; New & Renewable Energy; Climate Change & Environmental protection which includes water conservation, and utilization & Waste Management. NETRA also provides Advanced Scientific Services to its stations and other utilities in the area Non-Destructive Examination (NDE), Metallurgy & Failure analysis, Oil/water chemistry, Environment, Electrical, Computational Fluid Dynamics (CFD), etc. for efficient and reliable performances. NETRA laboratories are ISO 17025 accredited and NETRA NDT laboratory is also recognized as Remnant Life Assessment Organization under the Boiler Board Regulations, 1950.

Our R&D activities are constantly guided and steered by the Research Advisory Council (RAC) comprising of eminent scientists and experts from India and abroad. Padma Bhushan Dr. V.K. Saraswat, former Secretary, DRDO, and member of NITI Aayog is the Chairman of RAC. In addition, the Scientific Advisory Council (SAC) having Functional Director, Director (Operations) and other senior of your Company officials as members gives direction for improving plant performance & reducing cost of generation.

At NETRA, our focus is both on in-house technology development as well as collaborative research. We have networked with various prestigious national and international institutions to harness the specialized knowledge and expertise lying with those institutes. By collaborating with various institutes, we have been successful in promoting research in the field of Ash Utilization, Hydrogen, Carbon Capture, Sensors CFD, Robotics, Drones, Renewables, Environment, NDE and Water chemistry, etc. NETRA has collaborations with National Institutes such as IIT-Delhi, IIT-Bombay, IIT-Madras, IIT-Kanpur, IIT-Kharagpur, IIT-Dhanbad, IISc-Bangalore, RGIPT-Amethi, CSIR lab's such as IIP- Dehradun, CMERI-Durgapur, CGCRI-Kolkata, NCCBM- Ballabgarh, CBRI-Roorkee, etc. We have also collaborated with international institutions such as NETL-USA, Curtin University-Australia; DLR-Germany and ISE-Germany etc.

Various institutional building activities such as training programs, workshops on various topics such as Advanced NDE & Metallurgy etc were conducted. NETRA journal, compendium of Metallurgy focused case studies, compendium on advance NDE methods and numerous research papers were published.

Further to boost our R&D activities, the Phase-II Building of NETRA has been constructed as a state of the art technologically advanced with all R&D facilities by your Company.

20. IMPLEMENTATION OF OFFICIAL LANGUAGE

Your Company took several initiatives for the progressive use of Hindi in the 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 your Company 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 in which extensive discussions took place on progressive use of Hindi and the ways and means to bring about further improvements.

Hindi Divas was celebrated on 14th September 2021 and Hindi Fortnight was organised from 01-15 September, 2021 at the Corporate Centre as well as regional headquarters and projects/stations of your Company to create awareness among the employees, Associates and their family members. Our biannual Hindi magazine 'Vidut Swar' published (in digitized from) to promote creative writing in Hindi.

Employees were motivated to use Hindi in official work by organising Hindi workshops, Unicode Hindi Computer Training along with Hindi e-tools and popularization of Hindi incentive schemes. Hindi webpage was updated with improvement important information of Rajbhasha for employees.

The second sub-committee of Parliament on official

Language had inspected our units; reviewed the progress of Rajbhasha implementation and appreciated our efforts.

Your Company's website also has a facility of operating in a bilingual form, in Hindi as well as in English.

21. WEB BASED CONTRACTORS' LABOUR INFORMATION AND MANAGEMENT SYSTEM (CLIMS)

Your Company has implemented an in house 'captive private cloud' based solution; 'Contractors' Labour Information Management System (CLIMS)' to streamline the labour management processes, to ensure physical and social welfare of workers, statutory compliances and to get accurate picture of real time availability of workers.

It has also resulted in proper keeping of records in a digitalized format and ensuring that the wages and other benefits of labourers deployed at Plants of your Company are disbursed correctly and in time. The CLlMs application also has inbuilt features like bio-metric attendance, medical fitness, safety training/ clearances, ESI registration and other regulatory checks.

22. VIGILANCE

22.1 Vigilance Mechanism:

To ensure transparency, objectivity and quality of decision making in various operations, your Company has a Vigilance Department headed by Chief Vigilance Officer. The Vigilance set up in your Company consists of Vigilance Executives in Corporate Centre as well as in sites. In sites, the Vigilance Executives report to the Project Head in administrative matters and they report to the Chief Vigilance Officer in functional matters.

Your Company Corporate Vigilance Department consists of four Cells as under:

• Vigilance Investigation and Processing Cell

• Departmental Proceedings Cell

• Technical Examination Cell

• MIS Cell

These cells deal with various facets of vigilance mechanism. The vigilance works have been assigned region-wise to Vigilance officers at Corporate Centre (Regional Vigilance Executives) for speedier disposal. Senior officials of Vigilance Department comprising GM (Vigilance), Regional Vigilance Executives and Head of DPC/MIS Cell meet regularly to discuss common issues to ensure uniform working in all Regions of your Company. This facilitates transparency, efficiency and effectiveness of Vigilance functionaries by making use of collective knowledge, experience and wisdom of Vigilance Executives as well as breaking of compartmentalization and abridging of strengths & weaknesses.

22.2 Vigilance work during 2021-22

During the year 2021-22 total 63 Vigilance complaints were investigated, out of which 52 complaints have been finalized and remaining 11 are under various stages of investigation as on 31.3.2022. Appropriate disciplinary action has also been initiated against the involved employees along with system improvements, wherever found necessary. 414 Preventive Vigilance Checks (Surprise, Routine, CTE Type & Scrutiny of Files) were conducted during the period and recovery of Rs 99,76,784 was effected against various discrepancies detected during investigation by your Company. During the last year a total of 89 Preventive Vigilance Workshops were conducted at various projects/ places of your Company.

22.3 Implementation of Integrity Pact

Integrity Pact has been implemented in the Company since 2009. Presently, tenders having estimated value of Rs 10 crore (excluding taxes and duties) and above are covered under the Integrity Pact in your Company.

22.4 Implementation of various policies

Fraud Prevention Policy has been implemented in your Company and suspected fraud cases, referred by the Nodal Officers to Vigilance Department are investigated immediately to avoid/stop fraudulent behaviors as defined in "Fraud Prevention Policy". Based on extant guidelines Fraud Prevention Policy has been revised in 2021. Whistle Blower Policy has also been in place at your Company as per The Securities and Exchange Board of India (SEBI) guideline to strengthen a culture of transparency and trust in the organization, providing employees with a framework/ procedure for responsible and secure reporting of improper activities (whistle blowing) within your Company and to protect employees wishing to raise a concern about improper activity/serious irregularities within your Company. A complaint handling policy is also in place which is designed to provide guidance on the manner in which your Company receives and handles complaints against its employees, suppliers / contractors etc.

22.5 Vigilance Awareness Week 2021

In line with the directive from Central Vigilance Commission (CVC) vide Circular ref. no. 021/VGL/045 dated 1.9.2021 Vigilance Awareness Week 2021 has been observed in all the offices and Power plants of your Company, including the Joint Ventures and Subsidiaries spread across the country from 26th October to 1st November, 2021 on the given theme "Independent India @ 75: Self Reliance with Integrity; @ 75: ?c^Pl^6l ? ^loHPl^T". It was advised to give special emphasis on dissemination of awareness on PIDPI mechanism.

To align all your Company Units for conducting the Vigilance Awareness Week-2021 (VAW 2021) activities with strict adherence to extant COVID - 19 prevention guidelines, strict compliance to the economy measures issued by the Ministry of Finance vide the Department of Expenditure OM No. 7(2)E. Coord/2020 dated 4.9.2020 and following the code of conduct guidelines where elections were scheduled, review meetings were conducted through video conferencing with all sites on

4.10.2021. The meetings were chaired by Chief Vigilance Officer (CVO) of your Company and attended by Regional Heads of HR, Coordinators as identified for VAW 2021 and Vigilance executives from all locations of your Company.

Following activities were undertaken to observe VAW

2021: -

I. Administering Integrity Pledge

Vigilance Awareness Week 2021 formally commenced on 26.10.2021 with administration of Integrity-Pledge. At the Corporate Office, the pledge was administered by CMD of your Company. On this inaugural day of VAW 2021, CMD unveiled the ISO-9000:2015 certificate awarded to Corporate Vigilance Department. At Regional Head Quarters and power plants, the pledge was administered by respective Business Unit Heads. Pledge was also administered to CISF Personnel and contract labors at different sites.

II. Publicity

Banners were displayed at strategic public locations inside plant premises and prominent locations in townships on the PIDPI Awareness and the VAW 2021 theme. E-banners were widely used in local digital displays/ notice boards and online trainings and activities on the VAW theme. As a part of public outreach and to disseminate awareness messages in surrounding areas pamphlets were distributed and hoardings were put up on the VAW theme. Awareness messages and wide publicity for general public was done through publishing, short film in DD and radio jingles.

III. Competitions /Activities involving employees and stakeholders

Various activities were scheduled during this week for employees, their spouses, children, other residents in townships and contract labours to generate vigilance awareness among wide section of the society. Further, local schools and colleges were involved in these activities.

Slogan writing, drawing/poster making, essay, speech, elocution competitions on the VAW theme were conducted for employees and stakeholders of your Company. At various sites competitions were held in local schools inside the township and in surrounding villages to make the children aware about the importance of honesty & integrity, ill effects of corruption etc.

IV. Trainings /Workshops

An online workshop on e-Vigilance was organized on 28.10.2021 by Corporate Vigilance Department for all executives where the faculties from IIT Madras shared overview of cyber security & defence assessment of cyber risk, cyber security governance & compliance, best practices, digital forensics etc. In various power plant sites various workshops on Preventive Vigilance were organized where faculty from local district administration, CBI, retired senior executives from Vigilance function, academicians who delivered talks on role of an organization in curbing corruption, cybercrimes. Gender sensitization programs were also held across your Company during the week.

As a part of public outreach programs Walkathons and gramsabhas were organized at various units of your Company where employees, family members, CISF, associates and school children participated with enthusiasm. PIDPI banners were displayed on these occasions and talks on PIDPI was delivered by Vigilance Executives in surrounding Villages. Nukkad nataks were organised at many stations of your Company on PIDPI Theme / on theme of Honesty and self-reliance / anti-corruption themes.

V. Suggestions/Feedbacks/Grievance redressal of Stakeholders

Vendor Meets were conducted at multiple locations where your Company officials made presentations on new development in tendering, new initiative taken by your Company & Govt. e-procurement Representative from various industries association also joined & expressed their views & suggestion for further improvement of your Company procurement & award processes. The vendors were also informed about the Vigilance Mechanism with elaborate discussion on PIDPI mechanism. Open house discussion was carried out with stake holders by your Company.

22.6 System improvement measures undertaken during 2021-22

1. Green Channel system of providing Vigilance status introduced on PRADIP platform. In cases where there are no adverse entries in SAP records against employees, HR department is able to get the Vigilance Status of employees instantly at their end. Only in case where there is an entry in the Vigilance records in SAP against any employee , the request comes to Vigilance for providing the status.

2. In September 2021 Corporate Vigilance Department was certified by M/s BIS for ISO 9001 (the processes followed by the Department).

3. Based on CVC advice to introduce a common application for house allotment, NIKETAN-the online quarter management system pan NTPC has been rolled out in 2021. NIKETAN has greatly enhanced the transparency and policy compliance of all processes of quarter management system in your Company.

23. REDRESSAL OF PUBLIC GRIEVANCES

Your Company is committed for resolution of public grievance in efficient and time bound manner. General Manager (HR) 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 Govt. of India, public grievances are to be resolved within 45 days time. If it is not possible to resolve the same within this period, an interim reply is to be given. Your Company is making all efforts to resolve grievances in above time frame.

24. RIGHT TO INFORMATION (RTI)

Your Company has implemented Right to Information Act 2005 in order to provide information to Citizens and to maintain accountability and Transparency. It has designated a Central Public Information Officer (CPIO), an Appellate Authority and APIOs at all Sites and Offices of your Company.

During 2021-22, there were 1,974 applications (including 46 pending applications from FY 2020-21), out of which 1,924 were replied and 50 are pending to be replied/ resolved, under the RTI Act, 2005. Further, under the section 4(1)(b) of the RTI Act, your Company also got audited its voluntary disclosures by Indian Institute of Public Authority (IIPA) New Delhi.

25. Using Information and Communication Technology for Productivity Enhancement

The Information Technology in your Company is not only a service provider but also being used as a key business driver. Since 2008, your Company has implemented Enterprise Resource Planning (ERP) application to integrate all its business functions. PI data system has been implemented to capture, display and analyze the plant performance parameters on real time basis which is helping the operation and maintenance of our power plants. Non-ERP web based applications have been developed in balance areas such as Engineering Drawings approval, Quality Control Management, Hospital Management, Contractor's Labour Information Management, Transit Camp Management, RTI, Security Control, Safety, Ash Utilization etc.

As a commitment towards environment, your Company has reengineered and redesigned the business processes to paperless mode. The digitization initiative in the form of Project PRADIP resulted in implementation e-Office, digitization of documents and paperless processes for different functions. This has not only saved tons of paper but also resulted in faster decision making, transparency and improved efficiency for your Company. This was the mainstay of the company when lockdown was imposed.

Your Company was quick to switch to IT enabled virtual office when normal working was affected during the pandemic induced lockdown. PRADIP, Virtual office and internet access to major applications through Secured

Virtual Private Network Access helped your Company perform as usual during the lockdown. This in a way enhanced efficiency and speed. This practice continues now after the lockdown also.

Your Company plants and offices across India, are connected to Corporate Office and main Data-Centre (DC) through 2x68/155 Mbps high-speed MPLS links at each site to facilitate seamless communication. The DC and DR (Disaster Recovery) site is connected with high bandwidth 2x400 Mbps MPLS links for data replication. Both the Data Centers at Noida & Hyderabad are ISO 27001 compliant. 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. Desktop/laptop to desktop/laptop VC facility is now available to all executives in the company as part of virtual office and its widely used.

To further leverage IT in your Company, an IT Digital Strategy has been finalized. The IT Digital Strategy aims to achieve 100% Paperless Office, Data Analytics for decision making, induction of new technology such as IIOT, AI, Machine learning etc. over next 2 years. A number of Pilots and proof of concepts have been completed in these areas.

Some of the highlights of the progress in IT/ERP area during the year 2021-22 are as follows:

• Digitization - All approve processes under E-Office was completed. Processes were redesigned for working in paperless mode and to enable Unified Shared Service center model. Digital invoicing was implemented, and all vendors were onboarded on PRADIP to submit their digital invoices and to track them. Also, management dashboard made ready to track payment status.

• ERP - A number of new modules were introduced in ERP as part of process improvements. ERP was implemented in NTPC JV company, MUNPL. Safety framework has been implemented in NTPC.

• M365 Implementation - A Comprehensive Cloud based SaaS solution implemented across your Company including JVs for mail and messaging services, Teams, Share Point, Power App, Power BI etc. along with Single Sign On (SSO).

• Security - No major security breach was observed during the year 2021-22. A 24x7 Cyber Security Operation Centre (CSOC) is in operation where round the clock monitoring of all external and internal data traffic is being done. All latest threat management and security tools are being applied to prevent any cyber-attack or data theft. Timely communications are being sent to all users and admins based on threat perception. Your Company's data centers at Noida and Hyderabad are ISO 27001 compliant for ensuring adequate security posture.

• A number of new web applications and mobile apps such as Day Ahead Market, Real Time Market, Shram Kaushal Portal, Samvaad 2.0, Suraksha App 2.4, Technical Diary, e-Gen Portal, Samarth Portal (Biomass) etc. have been

launched to take care of requirements of various internal departments and ministry of power.

• New Technology - Rail Asset Management System (RAMS) has been implemented for monitoring maintenance activities.

• IT Consultancy assignments towards power sector improvement -

• SAP modules roll out in MUNPL, JV Co. o SAP support in JV companies of your Company. o PI System implementation in JVs. o M365 implementation in JVs.

• MCCS implementation in NTECL, JV Co. for Material & Service Classification and Codification.

All together consultancy works for Rs 4.15 crore were carried out.

26. GROUP COMPANIES: SUBSIDIARIES AND JOINT VENTURES

Your Company has 12 number of subsidiary companies as on 31st March 2022 and 17 nos. joint venture (including 2 foreign Companies) companies for undertaking specific business activities.

Further with an objective to hive-off the identified Renewable Energy Assets of your Company along with NTPC Renewable Energy Limited and carrying out monetization of the wholly owned Company through IPO or strategic investment route, subject to requisite approvals/clearances, your Company had incorporated wholly owned subsidiary named "NTPC Green Energy Limited" on 7th April 2022.

Your Company had decided to exit from International Coal Ventures Private Limited, in view of lack of suitable commercially viable opportunities for thermal coal and in respect of BF-NTPC Energy Systems Limited, after getting approval from Ministry of Power, the process of Winding Up had started and Liquidator was appointed for voluntary Liquidation of this JV Company.

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.

27. 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 and any amendments thereto are as under:

27.1 Statutory Auditors

The Statutory Auditors of your Company are appointed by the Comptroller & Auditor General of India. Joint Statutory Auditors for the financial year 2021-22 were (i) M/s S K Mehta & Co., Chartered Accountants, New Delhi (ii) M/s S.N. Dhawan & Co. LLP, Chartered Accountants,

New Delhi, (iii) M/s Varma & Varma, Chartered Accountants, Hyderabad, (iv) M/s Parakh & Co., Chartered Accountants, Jaipur, (v) M/s C K Prusty & Associates, Chartered Accountants, Bhubaneshwar, (vi) M/s B C Jain & Co., Chartered Accountants, Kanpur and (vii) M/s V K Jindal & Co., Chartered Accountants, Ranchi.

The appointment of the Statutory Auditors for the financial year 2022-23 is yet to be made by the Comptroller & Auditor General of India.

27.2 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 2021-22. However, they have drawn attention under 'Emphasis of Matter' to the following notes:

(i) Note No. 37(a) regarding billing and accounting of sales on provisional basis.

(ii) Note No. 60(iii)(b) with respect to appeal filed by the company with the Hon'ble High Court of Delhi in the matter of Arbitral award pronounced against the Company and the related provision made/disclosure of contingent liability as mentioned in the said note.

The issues have been adequately explained in the respective Notes referred to by the Auditors.'

27.3 Review of accounts by Comptroller & Auditor General of India (C&AG)

The Comptroller & Auditor General of India, through letter dated 22.7.2022, has given 'NIL' Comments on the Standalone Financial Statements of your Company for the year ended 31st March 2022 after conducting supplementary audit under Section 143(6)(a) of the Companies Act, 2013.

The Comptroller & Auditor General of India, through letter dated 22.7.2022, has also given 'NIL' Comments on the Consolidated Financial Statements of your Company for the year ended 31st March 2022 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 2022 are being placed with the report of Statutory Auditors of your Company elsewhere in this Annual Report.

27.4 Cost Audit

As prescribed under the Companies (Cost Records and Audit) Rules, 2014, the Cost Accounting records are being maintained by all stations and Coal mines of your Company.

The firms of Cost Accountants appointed under Section 148(3) of the Companies Act, 2013 for the financial year 2021-22 were (i) M/s Chandra Wadhwa & Co., Cost Accountants, Delhi, (ii) M/s S. C. Mohanty & Associates,

Cost Accountants, Bhubaneshwar, (iii) Dhananjay V. Joshi & Associates, Cost Accountants, Pune, (iv) M/s DGM & Associates, Cost Accountants, Kolkata, (v) M/s Tanmaya S. Pradhan & Co., Cost Accountants, Odisha, (vi) M/s K. L. Jaisingh & Co., Cost Accountants, U.P., (vii) M/s Niran & Co., Cost Accountants, Bhubaneshwar (viii) M/s A. C. Dutta & Co., Cost Accountants, Kolkata (ix) M/s R.M. Bansal & Co., Cost Accountants, Kanpur and (x) M/s ABK & Associates, Mumbai.

The due date for filing consolidated Cost Audit Report in XBRL format for the financial year ended March 31, 2021 was upto December 31, 2021 and the consolidated Cost Audit Report for your Company was filed with the Central Government on October 4, 2021.

The Cost Audit Report for the financial year ended March 31, 2022 shall be filed within the prescribed time period under the Companies (Cost Records & Audit) Rules, 2014.

27.5 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 2021-22, your Company has entered into derivative contracts amounting to USD 293.85 million in respect of foreign currency loans exposure.

27.6 Policy for Selection and appointment of Directors' and their remuneration

Your Company being a Government Company, the provisions of Section 134(3)(e) of the Companies Act, 2013 do not apply in view of the Gazette notification dated 5.6.2015 issued by Government of India, Ministry of Corporate Affairs.

27.7 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 of performance evaluation of every director by the Nomination & Remuneration Committee. The aforesaid circular of MCA further exempted 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.

Further, as per MCA Notification dated 5.7.2017, in case the 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, provisions of Schedule IV w.r.t. performance evaluation of Directors are exempted for the Government Companies.

In this regard, Deptt. of Public Enterprises (DPE) has already laid down a mechanism for performance appraisal of all functional directors. DPE has also initiated evaluation of Independent Directors.

Your Company enters into a Memorandum of Understanding (MOU) with Government of India each year, demarcating key performance parameters for the company. The performance of the Company are evaluated by the Department of Public Enterprises vis-a-vis MOU entered into with the Government of India.

In terms of Regulation 25 of SEBI LODR, 2015, the performance of the Board as a whole and nonindependent directors including Chairman & Managing Director were evaluated by the Independent Directors in a separate Meeting held by them on 27th March 2022.

27.8 Declaration by Independent Directors

During the year, all the Independent Directors have met the requirements specified under Section 149(6) of the Companies Act, 2013 for holding the position of 'Independent Director' and necessary declaration from each Independent Director under Section 149 (7) of the Companies Act, 2013 was received. Also, declaration under Regulation 25 of SEBI (LODR) Regulations, 2015 and Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014 are also obtained from all the Independent Director of your Company.

27.9 Management Discussion and Analysis

In addition to the issues stated in the Directors' Report, some issues have been brought out in report on Management Discussion and Analysis placed at Annexure-I and forms part of this Director Report, as per the terms of regulations 34(2)(e) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

27.10 Corporate Governance

A detailed report on Corporate Governance as stipulated under Regulation 34(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is placed at Annexure-II and forms part of the Directors' Report.

27.11 Business Responsibility Report

The Business Responsibility Report, as stipulated under Regulation 34 (2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is given in Annexure-IX and forms part of this Directors' Report.

27.12 Investor Education and Protection Fund (IEPF)

Details of transfer of unclaimed dividends and eligible shares to IEPF have been placed in the Corporate Governance Report at Annexure-II, which forms part of the Directors' Report.

27.13 Secretarial Audit

The Board had appointed M/s J. K. Gupta & Associates, Company Secretaries, to conduct Secretarial Audit for the financial year 2021-22. The Secretarial Audit Report for the financial year ended March 31, 2022 is annexed here with marked as Annexure X to this Directors' Report.

The Managements' Comments on Secretarial Audit Report are as under:

Observations Management's Comments
Compliance with the provisions of Section 149 of the Act read with Regulation 17 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 regarding the requirements of having at least half of the Board of Directors as the Independent Directors. Further half of the Board of the Company was not "nonexecutive" for a certain period. During the financial year 2021-22, Independent Director was less than the required limit. As per the provisions of the Articles of Association of the Company, the power to appoint Directors vests with the President of India. The Company had requested Ministry of Power, Government of India, being administrative ministry for appointment of Independent Director from time to time for compliance of the above regulations.
Compliance of Regulation 17(10) 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 26.6 & 26.7
Compliance of Regulation 19(4) read with Schedule II Part D of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the required policies/criteria for Board of Directors were not formulated As the Government of India (GOI) is making appointment of Directors, evaluation of Directors are done by the GOI.

27.14 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 (Annexure-VIII) as required under Section 134(3) (h) of the Companies Act, 2013. They were intended to

further enhance your Company's interests.

Web-links for Policy on Materiality of Related Party Transactions and also on Dealing with Related Party Transactions have been provided in the Report on Corporate Governance, which also form part of the Annual Report.

27.15 Significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and company's operations in future

No significant and material orders were passed by any regulator or court or tribunal impacting the going concern status and company's operations during the FY 2021-22.

27.16 Adequacy of internal financial controls with reference to the financial reporting

Your Company has in place adequate internal financial controls with reference to financial reporting. During the year, such controls were regularly tested and no reportable material weakness in the design, implementation and operation effectiveness was observed.

27.17 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 2021-22.

Details of Loans granted to subsidiaries and Joint venture companies are disclosed at Note 56 to the standalone financial statements for the year 2021-22.

27.18 Prevention, Prohibition and Redressal of Sexual Harassment of Women at Workplace

Your Company has in place a policy on Prevention, Prohibition & Redressal of Sexual Harassment of Women at Workplace in line with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013.

Internal Committees (ICs) have been constituted at all Projects/Locations of your Company to redress complaints received regarding Sexual Harassment. All female employees (regular, contractual, temporary, trainees) are covered under the policy. Every three years, the constitution of these committees is changed and new members are nominated.

During the year 2021-22, two cases were reported to different ICCs across your Company, both were resolved and currently no case is pending.

27.19 Procurement from Micro and Small Enterprises (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 during FY 202122 was Rs 2,791.24 crore which was 42.95% of the total procurement of Rs 6,498.56 crore against the minimum threshold of 40% as stipulated by the Public Procurement Policy for Micro and Small Enterprises (MSMEs) Order.

The total procurement percentage made from MSMEs owned by SC/ST and Women entrepreneurs during the year 2021-22 was 0.32% and 0.63% respectively.

*Excluding Primary fuel, Secondary fuel, steel, cement, project procurement including Renovation & Modernization and procurement from Original Equipment Manufacturer (OEM)/ Original Equipment Supplier (OES)/ Proprietary Article Certificate (PAC) as per Order of the Development Commissioner, Ministry of MSME vide letter No. F. No. 21(9)/2017-MA(Pt-I) (E-17230) dated 31.8.2021.

Your Company has organized 15 Vendor Development Programs (VDPs), including 2 Special VDPs for MSEs owned by SC/ST and Women Entrepreneurs across the company in FY 2021-22.

Your Company has on-boarded all the three TReDS platforms approved by Reserve Bank of India. Invoices worth Rs 61.03 Lakh are discounted through the TReDS platform.

Annual procurement plan for 2021-22 from MSEs is uploaded on www.ntpc.co.in.

27.20 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 and do not form part of this Directors' Report.

27.21 Extract of Annual Return

Annual Return pursuant to Section 92 (3) of the Companies Act, 2013, read with Section 134(3)(a) and rule 12(1) of the Company (Management & Administration) Rules, 2014 for the Financial Year ended 31st March 2022 is available on the Company's website i.e www.ntpc.co.in.

27.22 Credit rating

Your Company's financial discipline and prudence is reflected in the strong credit ratings ascribed by rating agencies. The details of credit ratings are disclosed in the Management Discussion and Analysis Report, which forms part of the Annual Report.

27.23 Reporting of frauds by Auditors

During the year under review, neither the statutory auditors nor the secretarial auditor has reported to the audit committee, under Section 143 (12) of the Companies Act, 2013, any instances of fraud committed against your

Company by its officers or employees, the details of which would need to be mentioned in the Director's report.

27.24 Compliance with Secretarial Standards

Your Company is in compliance with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India and approved by the Central Government under Section 118(10) of the Companies Act, 2013.

27.25 Key Financial Ratios

Key Financial Ratios for the financial year ended 31st March, 2022, are provided in the Annexure forming part of this Report.

27.26 Consumption of Imported Goods (On consolidated basis)

The consumption of imported goods for your Group companies is as follows:

Import Consumption FY 2021-2022 (Rs Crore) FY 2020-2021 (Rs Crore)
Coal 3,029.86 719.09
Others Spares 65.08 58.96
Total Import 3,094.94 778.05

27.27 Proceeding pending under the Insolvency and Bankruptcy Code, 2016

During the year under review, no application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016 during the year.

27.28 One-time Settlement and Valuation

During the financial year 2021-22, no event has taken place that give rise to reporting of details w.r.t. difference between amount of the valuation done at the time of onetime settlement and the valuation done while taking loan from the Banks or Financial Institutions.

27.29 Other Information

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, a chart or a matrix setting out the skills/expertise/competence of the board of directors, Total fees for all services paid by the listed entity and its subsidiaries, on a consolidated basis, to the statutory auditor and all entities in the network firm/network entity of which the statutory auditor is a part, Details of utilization of funds raised through preferential allotment or qualified institutions placement as specified under Regulation 32(7A), if any, 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.

27.30 Para on development of risk management policy including therein the elements of risks are given elsewhere in the Annual Report.

27.31 Your Company has followed the applicable Secretarial Standards, i.e. SS-1 and SS-2, relating to 'Meetings of the Board of Directors' and 'General Meetings' respectively.

27.32 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 annexure forming part of this report areas 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
Annual Report on CSR Activities VI
Project Wise Ash produced and utilized VII
Disclosure of Related Party Transactions in Form AOC-2 VIII
Business Responsibility Report for the year 2021-22 IX
Secretarial Audit Report in Form MR-3 X

28. INTEGRATED REPORT

Your Company being one of the top companies in the country in terms of market capitalization, has voluntarily provided Integrated Report, which encompasses both financial and non-financial information to enable the Members to take well informed decisions and have a better understanding of the Company's long-term perspective. This Report also touches upon aspects such as organization's strategy, governance framework, performance and prospects of value creation based on the six forms of capital viz. financial capital, manufactured capital, intellectual capital, human capital, social and relationship capital and natural capital.

29. BOARD OF DIRECTORS & KEY MANAGERIAL PERSONNEL (KMP)

Shri Jitender Jayantilal Tanna has been appointed as Independent Director w.e.f. 30.11.2021.

Shri Vivek Gupta has been appointed as Independent Director w.e.f. 30.11.2021.

Shri Vidyadhar Vaishampayan has been appointed as Independent Director w.e.f. 30.11.2021.

Smt. Sangitha Varier has been appointed as Independent Director w.e.f. 7.12.2021.

Shri Piyush Singh has been appointed as Govt. Nominee Director w.e.f. 31.5.2022.

Shri Jaikumar Srinivisan has been appointed as Director (Finance) w.e.f. 21.7.2022

Dr. K P K Pillay and Dr. Bhim Singh ceased to be Independent Director of the company w.e.f. 16.7.2021 on completion of three years' tenure.

Shri Vivek Kumar Dewangan ceased to be Govt. Nominee Director of the Company w.e.f. 30.5.2022 due to change in nomination by Ministry of Power.

Shri A K Gautam ceased to be Director (Finance) of the Company w.e.f. 31.5.2022 on attaining the age of his superannuation.

The Board wishes to place on record its deep appreciation for the valuable services rendered by Dr. K P K Pillay, Dr. Bhim Singh, Shri Vivek Kumar Dewangan & Shri A K Gautam during their association with the Company.

The Board welcomes Shri Jitender Jayantilal Tanna, Shri Vivek Gupta, Shri Vidyadhar Vaishampayan, Smt. Sangitha Varier, Shri Piyush Singh and Jaikumar Srinivisan on the Board of your Company.

30. MATERIAL CHANGES AND COMMITMENTS AFFECTING FINANCIAL POSITION BETWEEN THE END OF THE FINANCIAL YEAR AND DATE OF THE REPORT

There have been no material changes and commitments, which affect the financial position of the Company, that have occurred between the end of the financial year to which the financial statements relate and the date of this report.

31. DIRECTORS' RESPONSIBILITY STATEMENT

As required under Section 134(3)(c) & 134(5) of the Companies Act, 2013, your Directors state that:

1. in the preparation of the annual accounts for the year ended March 31, 2022, 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 as at March 31, 2022 and of the profit of the company for the year ended on that date;

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.

32. 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, Ministry of Corporate Affairs, Ministry of Labour and Employment, the Ministry of Environment and Forests, the Central Board of Direct Taxes, the Central Board of Indirect Taxes and Customs, GST authorities, Department of Public Enterprises, Department of Investment and Public Asset Management, Central Electricity Authority, Central Electricity Regulatory Commission, Comptroller & Auditor General of India, Appellate Tribunal for Electricity, State Governments, Regional Power Committees, State Utilities, Stock exchanges, Governments of various countries 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, Statutory Auditors and Cost Auditors.

We wish to place on record our appreciation for the untiring efforts and contributions made by the NTPC's family at all levels to ensure that the company continues to grow and excel.

The Directors of your Company regret the loss of life due to COVID-19 pandemic (2nd Wave) and are deeply grateful to and have immense respect for every person who risked his life and safety to fight this pandemic.

For and on behalf of the Board of Directors
Place: New Delhi (Gurdeep Singh)
Dated: 30th July, 2022 Chairman & Managing Director