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EQUITY - MARKET SCREENER

NTPC Ltd
Industry :  Power Generation And Supply
BSE Code
ISIN Demat
Book Value()
532555
INE733E01010
126.0772563
NSE Symbol
P/E(TTM)
Mar.Cap( Cr.)
NTPC
9.68
144965.16
EPS(TTM)
Face Value()
Div & Yield %
15.44
10
4.68
 

As on: May 21, 2022 01:55 AM

Dear Members,

Your Directors are pleased to present the 45th 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, 2021 and Auditors' Report thereon on behalf of the Board of Directors.

Financial Year 2020-21 had been yet another year of achievements for your Company.

Major highlights of your Company for the financial year 202021 are:

> Your Company topped the 300 BUs generation (on Group basis) mark for the 2nd time and registered highest group generation since inception. Further, your Company recorded highest ever single day gross generation of 1192.41 MUs (Group) on March 19, 2021 and 990.65 MUs (Standalone) on March 20, 2021.

> Plant Load Factor (PLF) of 66.00% as against all India PLF of 54.56% maintaining a spread of over 11%. 4 coal stations of your Company were among the top 10 performing stations in the country in terms of PLF. It included Korba with 93.66%, Sipat with 90.12%, Rihand with 89.04% and Vindhyachal with 88.73% PLF.

> Your Company has achieved capacity addition of 4,160 MW and commercial capacity addition of 3,824 MW including 904 MW capacity from renewable and hydro Projects. Your Company (Group) is now a 65.80 GW company.

> Your Company raised a loan in JPY 50 Billion for funding FGD and RE projects at a very competitive rate. Further, through proactive refinancing, the weighted average cost of borrowings stood at 6.24%, which is one of the best in the market.

> Group Capital Expenditure (CAPEX) including CAPEX of JV/ subsidiaries of your Company for the year 2020-21 was ' 33,981.64 crore and on stand-alone basis was ' 20,685.99 crore on cash basis.

> Revenue from operations was ' 99,206.72 crore and total revenue was ' 1,03,552.71 crore. Net Profit after Tax (PAT) was ' 13,769.52 crore.

> Dividend of ' 6.15 per share comprising interim dividend of ' 3.00 per equity share paid in Feb. 2021 and recommended final dividend of ' 3.15 per equity share for the year 2020-21, subject to your approval in the upcoming Annual General Meeting.

> Cash contribution of ' 6,678.82 crore to Government of India's exchequer through dividend, buy back tax and income tax in the financial year 2020-21.

> Planted approx. 10.45 lakh trees during 2020-21 to mitigate the GHG emissions arising out of plant operations, thereby bringing total to about 3.60 crore planted trees till end of 31.3.2021.

> Your Company has been conferred "Excellence in the prestigious CII-ITC sustainability award- 2020 in "Corporate Social Responsibility" category.

> Your Company secured 5th position (Utilities segment) in Forbes - World's Best Employer list - 2020 and 1st in PSUs (India). The overall rank is 261st.

> Your Company has been selected as one of the Best Workplaces in Asia 2020 under the Large Category by Great Places to Work. Your Company also received "Role Model" award in HR domain from CII.

> Your Company has been conferred with the prestigious FICCI Jury Commendation Certificate under the Category "Women Empowerment". The award has been received for your Company's flagship "Girl Empowerment Mission" Project.

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

> Your Company has saved 3.3 crore paper which is equivalent to 4,000 fully grown trees annually by going paperless. Project "PRADIP" has been implemented for digitization of documents and paperless processes.

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

Further, during the COVID-19 crisis, your Company has worked (24X7) to provide uninterrupted power supplies every day to millions of Indians. 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.

Despite all the challenges, Team NTPC worked tirelessly at its Power Plants to keep up the generation and meet the power demand of the nation.

1. FINANCIAL RESULTS (STANDALONE)

Particulars 2020-21 2019-20
' Crore US $ Mn* ' Crore US $ Mn*
Income
Revenue from operations (including energy sales, sale of energy through trading, consultancy fee etc.) 99,206.72 13,395.45 97,700.39 13,192.06
Other income 4,345.99 586.82 2,778.02 375.10
Total income 1,03,552.71 13,982.27 1,00,478.41 13,567.16
Expenses
Fuel cost 52,849.64 7,136.06 54,241.82 7,324.04
Electricity purchased for trading 3,031.25 409.30 2,776.44 374.89
Employee benefits expense 4,942.19 667.32 4,925.60 665.08
Finance costs 7,459.03 1,007.16 6,781.97 915.74
Depreciation and amortisation expense 10,411.80 1,405.86 8,622.85 1,164.31
Other expenses 9,580.28 1,293.58 8,663.81 1,169.84
Total expenses 88,274.19 11,919.28 86,012.49 11,613.90
Profit before exceptional items, tax and regulatory deferral account balances 15,278.52 2,062.99 14,465.92 1,953.27
Exceptional Items 1,363.00 184.04

-

-

Profit before tax and regulatory deferral account balances 13,915.52 1,878.95 14,465.92 1,953.27
Tax expense 1,925.39 259.98 9,181.95 1,239.80
Profit for the year before regulatory deferral account balances 11,990.13 1,618.97 5,283.97 713.47
Net movement in regulatory deferral account balances (net of tax) 1,779.39 240.26 4,828.84 652.02
Profit for the year 13,769.52 1,859.23 10,112.81 1,365.49
Appropriations 2020-21 2019-20
' Crore US $ Mn* ' Crore US $ Mn*
Transfer to general reserve 6,500.00 877.67 6,500.00 877.67
Dividend paid 5,531.06 746.83 2,968.37 400.81
Tax on dividend paid - - 607.80 82.07

*1US $= ' 74.06 as on March 31, 2021

2. FORMATION OF NTPC EDMC WASTE SOLUTIONS PRIVATE LIMITED AND NTPC RENEWABLE ENERGY LIMITED

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 74:26 shareholding with East Delhi Municipal Corporation (EDMC) on 1.6.2020.

Further, NTPC Renewable Energy Limited (NTPC RE), a wholly owned subsidiary of your Company was incorporated on 7.10.2020 with a target to accelerate the RE capacity addition plan. Thus, your Company is taking steps to make its energy portfolio greener by adding significant capacities of Renewable Energy (RE) Sources by 2032.

3. BUY BACK OF SHARE

The Board of Directors of your Company had approved buyback of equity shares in its meeting held on 2.11.2020. Accordingly, your Company has bought back 19,78,91,146 equity shares of the Company for an aggregate amount of ' 2,275.75 crore being 2% of the total paid up equity share capital at ' 115.00 per equity share.

4. DIVIDEND

Interim and Final Dividend:

Your Company has declared and paid interim dividend of ' 3.00 per equity share in February 2021 and the Board of Director of your Company has recommended a final dividend of ' 3.15 per equity share for the financial year (FY) 2020-21. Total dividend for FY 2020-21 will be ' 6.15 per equity 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 2016-2017 42.00%
2 2017-2018 40.82%
3 2018-2019 46.18%
4 2019-2020 30.82%
5 2020-2021 43.31%

The total dividend payout ratio for FY 2020-21 will be 43.31%. The final dividend shall be paid after your approval at the upcoming 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/ DividendDistributionPolicyofNTPCLimited.pdf.

5. OPERATIONAL PERFORMANCE

During the year, the power stations of your Company generated 270.91 bUs (314.07 BUs including JVs & Subsidiaries) of electricity. This was 19.60% (22.73% including generation by JVs and Subsidiaries) of the total power generated in India. Previous years' generation was 259.62 BUs by your Company (290.19 BUs including JVs & Subsidiaries).

The total generation contributed by coal stations was 260.43 BUs during the financial year 2020-21 against generation of 249.71 BUs in financial year 2019-20. Generation from coal-based units could have been still higher but due to less generation schedule, there was opportunity loss of 94.12 BUs. The coal-based stations operated at an average Plant Load Factor (PLF) of 66.00% (All India Coal PLF was 54.56%) and average Availability Factor (DC) of 91.43% during the year.

Korba Thermal Power Station with a PLF of 93.66% 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. Five coal based stations out of twenty four commercial Stations achieved PLF of more than 85%.

The gas stations having a capacity of 4,017 MW achieved annual generation of 5.7 BUs at a PLF of 16.19 % as against 4.97 BUs last year. Opportunity loss due to less generation schedule on Gas was at 28.29 BUs. Generation contributed by Koldam Hydro Power Station was 3.22 BUs against 3.45 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 1.56 BUs.

6. COMMERCIAL PERFORMANCE

6.1 Billing and Realisation

Your Company has realized 100% of its current bills raised for energy supplied in 2020-21. Your Company has also successfully achieved the target for realization of dues set by Government of India (GoI) for energy supplied in 202021. 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 2020-21. 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 3,824 MW of your Company including those of JV's and subsidiary companies was added during the year 2020-21:

Project/ Unit Capacity (MW) COD*
1.Owned by your Company
(A) Coal Based Power Projects
Khargone Unit# 2 660 4-Apr-20
Lara Unit# 2 800 7-Nov-20
Gadarwara Unit#2 800 1-Mar-21
Total (A) 2,260
(B) Renewable Projects
Auraiya Solar 7 10-Nov-20
Auraiya Solar 8 4-Dec-20
Auraiya Solar 5 20-Feb-21
Bilhaur Solar 140 18-Jan-21
Bilhaur Solar 70 28-Mar-21
Total (B) 230
Total (A+B)-I 2,490
2. Under JVs & Subsidiaries
(A) Coal Based Power Projects
Meia Unit #2 (JV with UPRVUNL) 660 31-Jan-21
(B) Renewable Projects
Dhukwan SHP 24 5-May-20
Kasaragod Solar 50 31-Dec-20
(C) Hydro Projects
Kameng HEP Unit #1 150 17-Jun-20
Kameng HEP Unit #2 150 1-Jul-20
Kameng HEP Unit #3 150 22-Jan-21
Kameng HEP Unit #4 150 12-Feb-21
Total (A+B+C)-II 1,334
Total Capacity declared commercial during 2020-21 (I)+(II) 3,824

* COD- Commercial Operation Date

As on 31.3.2021, the Commercial Capacity of your Company stood at 51,725 MW* (49,695 MW as on 31.3.2020) and your Company Group's Commercial Capacity stood at 64,490 MW (61,126 MW as on 31.3.2020):

Owned by your Company Capacity MW
Coal based projects 45,750
Gas based projects 4,017
Renewable Energy Projects 1,158
Hydro Projects 800
Sub-total 51,725
Joint Ventures & Subsidiaries
Coal based projects 7,154
Gas based projects 2,494
Renewable Energy Projects 192
Hydro Projects 2,925
Sub-total 12,765
Total 64,490

*Talcher thermal 460 MW was decommissioned on 31.03.2021.

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 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.

6.5 Security Constrained Economic Dispatch (SCED)

1. 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.

2. Starting from 1.6.2020, this Pilot has been extended twice by CERC, first till 31.3.2021 and then again till 30.9.2021. During these periods, 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.

3. SCED has resulted in cumulative savings of '1660 crore in generation cost from start of the SCED pilot in April 2019 up to March 2021 thereby resulting in increased saving in the cost of power procurement of the Discoms.

4. 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.

6.6 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 provides various support services to the beneficiaries, which involves identifying potential areas of cooperation and sharing of each other's best practices. In the financial year 2020-21, total 8 such programs have been conducted for the customers on the basis of requirement expressed by them.

- Your Company offers training programs to the representatives of beneficiary companies at Power Management Institute (PMI), the apex training institute of your Company on free of cost basis. In 2020-21, 18 participants from various customer organizations attended training in 5 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 2020-21 and the score falls under excellent category.

6.7 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 for the generators as per applicable provisions.

6.8 Real Time Market (RTM)

RTM has been implemented in the country since 1st June 2020 with participation on voluntary basis. The main objective of Real Time Market (RTM) is to provide a market mechanism to the generating stations to sell their surplus power in the market. This also provides an opportunity to the Discoms to buy power from the market to meet their contingent requirements. For generators, to sell their URS in the RTM, no consent is required from the beneficiaries. 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. 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 NVVN. Besides selling the URS power, it has also been selling any regulated power or merchant power also in the Power Exchanges. In the FY 2020-21, around 920 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:

1. Following PPA / Power Usage Agreements have been signed:

a. Agreements for power under CPSU Scheme (1,692 MW) has been tied up with Telangana.

b. PPA for 90 MW Anta Solar has been initialed with KSEBL.

c. PPA signed with GUVNL by NREL for 200 MW Solar PV plant.

d. PPA for 300 MW signed with TBEA Energy India Pvt. Ltd. and ABC Renewables Private Limited.

e. PSA for 100 MW signed on 5.1.2021 with Puduchery for Solar Power from TBEA Energy India Pvt. Ltd.

f. PPA for Nokh 190 MW signed in developer mode with Rising Sun.

2. Following new units have been declared commissioned/ commercial:

a. Solar unit of Bilhaur 140 MW declared commercial on 18.1.2021.

b. Solar unit of Bilhaur 70 MW out of 85 MW declared commercial on 28.3.2021.

c. Solar unit of Auraiya 20 MW declared commercial on 20.2.2021

d. Developer mode unit of Ananthapuramu Solar (Ayana Power) 250 MW declared commercial on 8.3.2021.

e. Developer mode unit of Ananthapuramu Solar (Sprng Energy) 152 MW of total 250 MW got commissioned this year.

7. INSTALLED CAPACITY

During the year 2020-21, your Company added 4,160 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
Lara Unit # 2 800
Gadarwara Unit #2 800
Tanda Unit #6 660
(B) Renewable Projects
Auraiya Solar 20
Bilhaur Solar 210
Total (A+B) 2,490
Under Subsidiaries and Joint Ventures
(A) Coal Based Power Projects
Meja Unit #2 660
NPGCL Unit #2 660
(B) Hydro Projects
Kameng HEP Unit #3 150
Kameng HEP Unit #4 150
(B) Renewable Projects
Kasaragod Solar 50
Total by Subsidiaries and JVs 1,670
Total Addition during FY 2020-21 4,160

Further, Talcher thermal (460 MW) Project of your Company was decommissioned on 31.3.2021.

The total installed capacity of your Company Group as on 31.03.2021 has become 65,810 MW (62,110 MW as on 31.3.2020) as tabulated below:

Project/Unit Installed Capacity MW
Owned by your Company
Coal based projects 46,410
Gas based projects 4,017
Renewable Energy Projects 1,158
Hydro Projects 800
Sub-total 52,385
Joint Ventures & Subsidiaries
Coal based projects 7,814
Gas based projects 2,494
Hydro 2,925
Renewable Energy Projects 192
Sub-total 13,425
Total 65,810

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 17,989 MW including 8,369 MW being undertaken by Joint Venture and Subsidiary Companies are under implementation in India and abroad. Total Capacity under construction comprises of 12,850 MW of Coal (Including 6,240 MW being undertaken by Joint Venture and Subsidiary Companies), 2,255 MW of Hydro (Including 1,444 MW being undertaken by Subsidiary Companies) and 2,884 MW of Renewable projects (Including 685 MW being undertaken by Subsidiary Company).

The details of such projects as on 31.3.2021 are as under:

Ongoing Projects
NTPC Owned Projects/Units Capacity (MW)
I.A. Coal Based Projects
1. Barh-I, Bihar (3x660MW) 1,980
2. Darlipalli-I, Odisha (2x800 MW) 800
3. North Karanpura, Jharkhand (3x660 MW) 1,980
4. Telangana Phase-I, Telangana (2x800 MW) 1,600
5. Barauni St.-II, Bihar (2x250 MW) 250
Sub Total (A) 6,610
I. B. Hydro Electric Power Projects (HEPP)
6. Tapovan Vishnugad,Uttarakhand(4x130 MW) 520
7. Lata Tapovan, Uttarakhand (3x57 MW)@ 171
8. Rammam Hydro, West Bengal (3x40 MW) 120
Sub Total (B) 811
I. C Renewable Energy Projects
9. Ramagumdam, Solar F, AP 100
10. Simhadri, Solar F, AP 25
11. Kayamkulam, Solar F, Kerala 22
12.Kayamkulam, Solar F, Kerala 70
13. Jetsar, Solar G, Rajasthan 160
14. Rihand, Solar G, UP 20
15. Auraiya, Solar F, UP 20
16. CPSU-I: Shimbhoo Ka Burj, Solar G 250
17. CPSU-I: Devikot, Solar G, Rajasthan 150
18. CPSU-I: Shimbhoo Ka Burj, Solar G 300
19. CPSU-II: Nokhra, Solar G, Rajasthan 300
20. CPSU-II: Fatehgarh, Solar G, Rajasthan 296
21. CPSU-II: Navalakhapatti, Solar G 230
22. CPSU-II: Devikot, Solar G, Rajasthan 90
23. CPSU-I: Gandhar, Solar G, Rajasthan 20
24. Kawas Solar G/F 56
25. Anta Solar G 90
26. Bilhaur, Solar, Uttar Pardesh 15
Sub Total (C) 2,214
Total I (A)+(B)+(C) 9,635
II Projects under JVs & Subsidiaries
II. A Coal Based Projects
27. Nabinagar- JV with Railways (BRBCL), Bihar, (4x250 MW) 250
28. Nabinagar (NPGCL), Bihar (3x660MW) 660
29. Patratu Expansion, JV with JBVNL 2,400
30. Rourkela, JV with SAIL (NSPCL), Odisha 250
31. Durgapur, JV with SAIL (NSPCL), West Bengal (2x20MW) 40
32. Khulna, JV with BPDB (BIFPCL), Bangladesh (2x660MW) 1,320
33. THDC - Khurja (2x660 MW) 1,320
Total II (A) 6,240
II. B Hydro Projects
34. THDC - Tehri PSP, Uttarakhand 1,000
35. THDC - VishnugadPipalkoti, Uttarakhand 444
Total II (B) 1,444
II. C Renewable Projects
36. Chattargarh, Solar G 150
37. Bhensara, Solar G 320
38. Surendernagar, Solar G 200
Total II (C) 670
Total II (A+B+C) 8,354
Total On-Going Projects as on 31.03.2021 (I)+(II) 17,989

@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 technology by improving the steam parameters for North Karanpura (3X660 MW) to 260 kg/cm2, 593oC/593oC. For Khargone (2X660 MW) and Telangana (2X800 MW) the steam parameters are 270 kg/cm2, 600oC/600oC. The Plant efficiency of Ultra-super critical (USC) units is up to 42% which is significantly higher than efficiency of conventional sub-critical 500 MW unit. Ultra-super critical based units of Khargone (2X660 MW) STPP are already commissioned where 600oC temperature was adopted for main steam and reheat steam for the first time in India.

For the first time in your Company, Air Cooled Condenser (ACC) system has been adopted at North Karanpura STPP and Patratu STPP 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's Dadri station, we have started commercial scale biomass co-firing at other stations of your Company also. Your Company has forayed into large scale procurement of biomass for Co-firing by issuing a Long Term (LT) tender on 18.9.2020 for procurement of ~20 MMT biomass for 17 projects of your Company over the period of four years (i.e. 5 Million Metric Tonne Per Annum (MMTPA). It is expected to place the award under the long term tender before the next harvesting season in October-November.

Besides Limited tender, your Company has awarded contracts for procurement of 4.56 LMT of biomass pellet under short term contracts (9 months). Supply has already started at 7 stations of your Company under short term contracts and also under orders placed for 280 TPD for four years (approx. 4 lakh tonnes) at Dadri station. Your Company has already fired ~28,500 metric tonnes of biomass pellets at its various stations by March'21.

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.

Further, your Company has also signed tri-partite MoU on 30th June 2020 with IOCL and SDMC for development of Waste to Energy (WtE) pilot Plant at Okhla landfill site utilizing Municipal Solid Waste (MSW).

Under the said MOU, it is proposed to set up Plasma Enhanced Gasification (PEGS) technology-based Waste to Energy pilot plant at SDMC Okhla Landfill site utlising 50 treatment, storage and disposal (TSD) refuse derived fuel (RDF) and generating one MW of Electricity. The technolgy is eco-friendly as there are hadrdly any flue gases or bottam ash waste. The Pilot Plant is being setup for technology demonstration.

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 advance 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 weld joints through advance Non-Destructive Testing (NDT) techniques meeting the governing standard requirements. All these requires proper understanding of metallurgy, welding, advanced NDT techniques and the governing standards.

To meet all those 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 Weldings 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 AUSC components.

A blue print of your Company's own state of the art Welding Training Center at selected project to train & produce highly skilled high-pressure welders and Welding & NDT Engineers has been developed. A Welding Research Institute is envisioned in one of the upcoming projects and the study is undertaken. These actions are now being carried forward and should impact the complete power sector and other industrial sectors also.

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. Your Company has awarded the work of converting two of its townships "Solapur" and "Khargone" to "Smart Townships". The work of Khargone is under final stages of execution and commissioning. However, Solapur has been commissioned on 17.7. 2021.

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.

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

Your Company has already 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, pisciculture, water body preservation, etc. Treated sewage water will be used for Condenser Cooling Water system makeup for your Company's power stations falling within 50 km distance from STPs meeting the order of closeness criteria as notified in Tariff Notification of GOI dated 28.1.2016. Your Company has identified some projects viz. Meja, Mouda, Solapur, Korba, Sipat, Dadri and Telangana where treated STP water can be used for the plant cooling water system.

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, draft agreements have been shared and discussions under process with respective municipal bodies associated with above stations.

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. Implementation in subsequent units is being planned.

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 are under implementation.

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 8 nos. have already been commissioned.

Technology intensive security system with centralized control and multiple layers of security is being envisaged in place of manpower intensive security currently in place. It has centralized control and multiple layers of security to enhance security with optimized manpower. Pilot project of the same has been completed 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).

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.

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) under construction and same is being planned for R&M project at Rihand-I. Dry Bottom Ash Handling System facilitates extraction of bottom ash in dry form and practically water requirement will be eliminated for handling bottom ash with meagre quantity of water which would be required for conditioning and dust suppression. 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 separation of bottom ash which will result in 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.

Out of 40 stations (37 closed cycle and three open cycle except TTPS), 15 stations of your Company has already achieved ZLD, 5 stations have completed the ZLD work as per schemes and technical specifications in FY 2020-21, 9 more stations likely to complete the ZLD related work by July 2021, 10 Stations will complete the ZLD related work by December 2021 and balance one station will become ZLD compliant by March 2022.

8.2.11 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 Annexure-III.

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 synchronise 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 centers. 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.

8.4 Capacity addition through Subsidiaries and Joint Ventures (JVs) of your Company

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 Bijlee Utpadan Nigam Limited) A wholly owned subsidiary of your Company The commissioned capacity of KBUNL is 610 MW Stage-I: 2X110 MW and Stage-II: 2X195 MW.
Generation in FY 2020-21 was 2904.64 MUs at 54.21% PLF and Availability Factor was 70.21%.
BRBCL (Bhartiya Rail Bijlee 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. Unit-I, II & III have been declared commercial and Unit-IV is under construction.
Generation in FY 2020-21 was 4264.44 MUs at PLF 64.91%, and Availability Factor was 88.48%.
BRBCL has paid dividend of ' 190.28 crore during FY 202021 to your Company.
NSPCL (NTPC-SAIL Power Company Limited) Steel Authority of India Limited (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. Total installed capacity of NSPCL is 814 MW.
NSPCL generated 5,520.07 MUs at 77.41% PLF and Availability Factor was 96.78% in FY 2020-21.
NSPCL has paid dividend of ' 95.00 crore during FY 202021 to your Company.
Under Implementation- New Coal based Capacity at Rourkela PP-II Expansion (1 x 250 MW) & Durgapur PP-III (2 x 20 MW) is under construction.
NTECL (NTPC Tamil Nadu Energy Company Limited) Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) A 50:50 JVC has commissioned 3x500 MW coal-based power project at Vallur, Tamil Nadu.
All the units have been declared on commercial operation. Generation of NTECL during FY 2020-21 was 4368.97 MUs at 33.25% PLF and Availability factor was 90.17 %.
NTECL has paid dividend of ' 51.41 crore during FY 202021 to your Company.
APCPL (Aravali Power Company Private Limited) Indraprastha Power Generation Company Ltd. (IPGCL) and Haryana Power Generation Corporation Limited (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 2020-21 was 3,842.79 MUs at 29.17% PLF & Availability factor was 91.97%.
APCPL has paid dividend of ' 350 crore during FY 2020-21 to your Company.
MUNPL (Meja Urja Nigam Private Limited) Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) A 50:50 JVC is implementing 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 30.4.2019. Unit-2 on 31.1.2021.
Generation of MUNPL during FY 2020-21 was 3,928 MUs at 58.35% PLF and availability was 79.79%.
NPGCL (Nabinagar Power Generating Company Limited) A wholly owned subsidiary of your Company. NPGCL is setting up a 3x660 MW Coal based plant at Nabinagar. Construction activities are in progress.
Unit#1 declared commercial on 6.9.2019 and Unit#2 full load was achieved on 24.3.2021. Unit#3 first synchronization was achieved on 28.3.2021.
Generation of NPGCL during FY 2020-21 was 4,639.69 MUs at 80.25% PLF and availability was 88.71%.
RGPPL (Ratnagiri Gas and Power Private Limited) MSEB Holding Company Limited RGPPL owns and operates gas based Dabhol Power Project of 1967 MW (1 X 640 MW + 2 X 663.50 MW) in Ratnagiri district of Maharashtra.
On 31.12.2020, your Company has executed agreement for a Composite Resolution Plan with Lenders of RGPPL, wherein outstanding debt liabilities of RGPPL have been settled through One Time Settlement (OTS) by your Company. As per the Resolution Plan, the Company has provided inter corporate loan of ' 885 crore to RGPPL for settlement of loan with the lenders, 35.47% of Lenders Equity in RGPPL has been transferred to your Company. Your Company's Shareholding increased to 60.98 % on 31.12.2020 and RGPPL has become a subsidiary of your Company with effect from 31.12 2020.
Further, your Company has executed Share Purchase Agreements with GAIL (India) Limited (GAIL) on 23.2.2021, for purchase of GAIL's share (25.51%) in Ratnagiri Gas and Power Pvt. Ltd. (RGPPL) and sale of your Company's share (14.82%) in Konkan LNG Ltd. (KLL) to GAIL. With this transaction, your Company has fully exited KLL and your Company's shareholding in RGPPL has become 86.49%.
Generation of RGPPL during FY 2020-21 was 2573.83 MUs at 14.94 % PLF and Availability was 34.48%.
ASHVINI (Anushakti Vidhyut Nigam Limited) Nuclear Power Corporation of India Limited (NPCIL) Your Company is having a stake of 49%. The 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 may also explore the possibilities of entering into business activities related with the Nuclear Power generation and front-end fuel at an appropriate stage.
Currently, no activities are being taken up by the Company.
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 to acquire, operate & maintain existing and setting up of the new units.
Supplementary Joint Venture Agreement was signed on 1.3.2018 for expansion units (Phase-I 3X800 MW). EPC package was awarded to BHEL on 8.3.2018. Construction work is in progress.
NREL (NTPC Renewable Energy Limited) A wholly owned subsidiary of your Company NTPC Renewable Energy Limited (NTPC RE), a wholly owned subsidiary of your Company's was incorporated on 7.10.2020 with a target to accelerate the RE capacity addition plan.
THDCL (THDC India Limited) THDC India Ltd was a joint venture of the Government of India (74.496%) and the Government of Uttar Pradesh (25.504%) and was a Mini- ratna Category-I CPSE. Your Company executed a Share Purchase Agreement with GoI on 25.3.2020 and acquisition of 74.496% equity stake in THDC completed on 27.3.2020. With this acquisition, THDC has become a subsidiary Company of your Company.
Presently, THDC has a portfolio of 13 projects (Hydro, Thermal, Wind & Solar), totaling to an installed capacity of 5,539 MW, which includes 1587 MW Operational and balance under various stages of development/ implementation.
THDC has paid dividend of ' 527.25 crore during financial year 2020-21 to your Company.
NEEPCO (North Eastern Electric Power Corporation Limited) A wholly owned subsidiary of your Company North Eastern Electric Power Corporation Limited ("NEEPCO") was a Mini-ratna Category I Central Public Sector Enterprise. NEEPCO is primarily engaged in the business of generation and sale of electricity in the northeastern region of India. Your Company executed a Share Purchase Agreement with GoI on 25.3.2020 and acquisition of 100% equity stake in NEEPCO was completed on 27.3.2020.
NEEPCO operates 7 hydro, 3 thermal and 1 solar power stations with a combined installed capacity of 2057 MW. NEEPCO commissioned its largest 600 MW Hydro Project Kameng (4 x 150 MW) in the N.E. Region, Commercial operation of Unit-I, 2, 3 & 4 were declared on 17.6.2020, 1.7.2020, 22.1.2021 and 12.2.2021 respectively.
NEEPCO has paid dividend of ' 25 crore during financial Year 2020-21 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 were declared commercially operational in 2015. Since then the project has been running exceedingly well. The generation for the financial year 2020-21 has been 3,221.40 MUs against design energy of 3,055 MUs. Owing to excellent operation and maintenance practices, the Station achieved yearly DC of 108.51% in FY 2020-21, which was highest amongst all the Hydro Power Stations in the country for the last five 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 was bestowed with HP Environment Leadership award by Hon'ble Chief Minister of Himachal Pradesh on the occasion of World Environment day at Shimla for second time. Station was also awarded with Greentech Environment & Safety Awards, Growcare India Environment Award. 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.

B. Tapovan Vishnugad HEPP (4x130 MW) is on river Dhauliganga, in District Chamoli (Uttarakhand). The Project is under advanced stage of construction with a physical progress of nearly 75%. Generator Transformer & Switchyard Package is completed. Powerhouse works are completed and architectural works are in progress. Erection and testing of three out of four turbines is completed.

On the morning of 7.2.2021, there was a massive glacial outburst, avalanching into Rishiganga River. This caused an unprecedented, devastating flash flood in the river consisting of debris, silt, boulders, ice, rock pieces, soil, trees etc. Due to this debris flow, huge quantity of muck got deposited in Barrage area, Desilting Chambers, Intake structure, Head Race Tunnel, Silt Flushing Tunnel, HRT Adits etc. entrapping the manpower and equipment/vehicles in these areas engaged for the purpose of ongoing work. Rescue operation was started immediately with the help of ITBP, Army, NDRF, SDRF and Govt of Uttarakhand. Presently rescue and restoration works are under progress in all the affected areas. It includes muck removal from tunnels and desilting Chamber, River diversion from left to right bank, creating embankment/Bund to prevent further flooding in Monsoon and rectification of damaged roads, on priority. The progress of work has been affected due to this natural disaster.

C. Lata Tapovan HEPP (3x57 MW) is in upstream of Tapovan Vishnugad HEPP, in District Chamoli in Uttarakhand. All Construction activities at LTHPP were stopped since 8.5.2014 in compliance of 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 fully complied. On the hearing held on 26.4.2016 also, Additional Solicitor General informed the Court that Lata -Tapovan Project should be implemented. The Court asked GoI to submit a combined affidavit of all three concerned ministries. The said affidavit is yet to be submitted. The last hearing in the case was held on 28.2.2020. After that, the matter could not be listed because of restrictive functioning of the court due to COVID related restrictions. The matter is still pending with Hon'ble Supreme Court.

D. Rammam-III HEPP (3x40 MW) is situated on river Rammam in Teesta Basin, 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, two bays shall be completed before 2021 monsoon for 2nd stage river diversion to carry out construction activities at other bays.

E. Seli HEP (4x100 MW) & Miyar HEP (3x40 MW) are the two new projects allotted to your Company in Chenab Valley by Govt of Himachal Pradesh (GoHP). MoU was signed with GoHP on 25.9.2019. Finalization of terms and conditions with Govt of Himachal Pradesh (GoHP) is in progress as one of the earlier awardee companies has approached High Court of Shimla for redress of its grievances with GoHP.

8.6 Capacity addition through Renewable Energy (RE) Sources

Renewable energy (RE) is the central focus for your Company. To be in step with ambitious targets of the Government of India (GoI), your Company is attempting all avenues for renewable capacity addition to look beyond conventional large scale solar and wind projects. 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. Your Company is also utilizing roofs of power plant buildings for solar power generation.

By 2032, your Company plans to have over 60 GW capacity through RE sources constituting nearly 50% of its overall power generation capacity.

Your Company is pursuing capacity addition in RE projects in two modes namely Own capacity addition mode and Developer Mode. In Own capacity addition mode, your Company sets up Renewable Energy projects on its own investment. In Developer Mode, your Company acts as an intermediary procurer where it procures power from the Developers and sells to DISCOMs with a trading margin.

The initiatives for hydrogen technologies are being pursued through RE and it is envisaged that RE capacity of your Company shall power the future hydrogen initiatives. The green hydrogen thus generated shall be utilized for various applications ranging from mobility to green chemical to energy storage.

Projects under Own Capacity Addition

A) Commissioned Projects: your Company has a commissioned capacity of 1,350 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: -

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 Rajgarh Madhya Pradesh 50
10 Bihaur-I & II Uttar Pradesh 210
11 Mandsaur Madhya Pradesh 250
12 Ananthapuramu Andhra Pradesh 250
13 Bhadla Rajasthan 260
B Wind
1 Rojmal Gujarat 50
C Small Hydro
1 Singrauli Uttar Pradesh 8
SUB-TOTAL 1,158
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 1,350

B) Projects Under Implementation: 2,884 MW of RE projects are under implementation comprising of solar (ground and floating) projects: -

S No. Projects State MW
A Solar (floating) 237 MW
1 Auraiya Uttar Pradesh 20
2 Simhadri Andhra Pradesh 25
3 Kayamkulam I & II Kerala 92
4 Ramagundam Telangana 100
SUB-TOTAL 237
B Solar (ground) 2,647 MW
1 Bilhaur Uttar Pradesh 15
2 Rihand Uttar Pradesh 20
3 Gandhar Gujarat 20
4 Kawas Gujarat 56
5 Anta Rajasthan 90
6 Chhattargarh Rajasthan 150
7 Jetsar Rajasthan 160
8 Surendranagar Gujarat 200
9 Ettayapuram Tamil Nadu 230
10 Devikot-I & II Rajasthan 240
11 Sambhu Ki Bhurj-I Rajasthan 250
12 Fatehgarh Rajasthan 296
13 Sambhu Ki Bhurj-II Rajasthan 300
14 Nokhra Rajasthan 300
15 Bhensara Rajasthan 320
SUB-TOTAL 2,647
GRAND-TOTAL 2,884

• The Ground Mounted Solar projects of 2,647 MW are spread across UP, Rajasthan, Tamil Nadu, Gujarat and Kerala. Further 1,692 MW out of 2,647 MW are being implemented under CPSU scheme. Under this scheme it is envisaged to set up solar projects using domestically manufactured cells and modules with VGF support from Ministry of New and Renewable Energy (MNRE). The power is sold in WTO compliant manner only to government entities under a power usage agreement.

• Floating Solar projects of 237 MW are spread across UP, Telengana, Andhra Pradesh, and Kerala. Your Company is promoting large scale floating solar projects and towards this a 100 MW project is being set up in Telangana. Incidentally when completed in 2021, this project will be the largest one in the country.

Developer Mode Projects

• In this regard MNRE has accorded its approval to the Company to act as a designated agency for issue of tenders for setting up of renewable power projects covering wind and solar mode.

A) Commissioned Projects: 4,385 MW of RE projects has been commissioned.

B) Projects under Implementation: 1,188 MW of RE projects are under implementation.

New Initiatives/Major Highlights:

• Incorporation of NTPC Renewable Energy Limited (NTPC REL), a wholly owned subsidiary company of your Company on 7.10.2020 to undertake RE business independently.

• Introduction of high efficiency solar PV Modules (490 Wp) in floating solar projects at Kayamkulam and Auraiya.

• Winning a total of 1,510 MW solar capacity in different projects under tariff based competitive bidding of SECI/States.

• MoU signed with DVC on 12.3.2021 for development of UMREPP and projects in DVC reservoirs and land.

• MoU signed with ONGC on 21.5.2020 for developing offshore wind projects.

• JVA finalized between NIIF and your Company and approved by Board of Director of your Company

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 16.94 GW are under various stages of development in states of Gujarat (4.75 GW), Maharashtra (2.64 GW), Rajasthan (5 GW, Madhya Pradesh (0.55 GW) and Andhra Pradesh (4 GW).

Further, THDC Limited, a subsidiary of your Company has created a 74:26 subsidiary company (namely TUSCO Limited) with UPNEDA for implementing UMREPP in the state of Uttar Pradesh.

Hydrogen Energy:

Your Company is in the process of exploring opportunities for production of green hydrogen using electricity from RE sources and using green hydrogen for various applications. These are for mobility, production of green fuel (methanol, ammonia), establishing microgrids, NG blending with hydrogen for CGD system etc. and are steps of decarbonization effort of the Company.

Following initiatives are pursued at different locations:

A. Green mobility in Ladakh and Delhi

1. MoU being planned with UT, Ladakh and Ladakh Autonomous Hill Development Council (LAHDC) for allied green hydrogen initiatives and majorly setting up hydrogen filling stations.

2. Delhi has been chosen to set up hydrogen filling stations so that intercity transport using FCEV buses like Ladakh is supported.

B. Green Chemical production

1. Green Methanol (10 TPD) pilot at Ramagundam using green hydrogen and carbon captured from flue gases of thermal project.

2. Green Ammonia pilot (20 TPD and 50 TPD), using two different technologies where green hydrogen and nitrogen from air is treated together in reactors.

8.7 Capacity addition through acquisition

Your Company has submitted final Resolution Plan on possible acquisition of Jhabua Power Limited (under NCLT) having 600 MW Coal based thermal power plant in the Seoni district of Madhya Pradesh. Resolution Plan has been approved by Committee of Creditors (CoC) and sent to NCLT for its approval.

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 1.4.2015, to your Company.

NESCL was incorporated for the distribution business and later started deposit and consultancy works. The transfer and vesting of existing operations would enable a focused business approach in the area of distribution, the objective for which NESCL was incorporated.

NESCL is actively looking for acquisition of power distribution and had participated in bid process of UT Chandigarh, Daman & Diu and Dadra & Nagar Haveli.

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. The Company is also implementing a 50 MW gas power project in Andaman & Nicobar.

In the FY 2020-21, NVVN traded 18.54 billion units (BUs). Besides this NVVN has also undertaken various other Business activities

A. Renewable Projects:

NVVN has ventured into renewable energy business and has signed MoU with Airport authority of India for implementing Ground/ Rooftop Solar PV Projects at identified airports/ buildings. Accordingly, the tender for 2 MW solar project at Agartala airport has been floated by NVVN and price for the same has been discovered by reverse auction. The project is likely to be commissioned by March 2022. Further, feasibility study and survey of various other airports to identify possible solar capacity installation is under process.

In addition to the above NVVN has also signed MoU's with South Delhi Municipal Corporation (SDMC) and IIT Jodhpur for development of solar projects.

B. E-Mobility

NVVN has forayed into the e-mobility segment including providing vehicles and related services as a part of turnkey solution in various vehicle segments. Based on this, the L1 Bidder for 450 E-buses has been selected through tendering process. These E-buses are planned to be provided to State / City Transport Authorities / Corporates / Govt. bodies etc. on commercial arrangements.

NVVN has signed agreement with Department of Transport, Andaman and Nicobar Islands for supply of total 40 E-buses. Further, NVVN has won Bengaluru Metropolitan Transport Corporation (BMTC) tender to supply 90 E-buses.

NVVN is adopting the integrated business strategy to increase its respective business portfolio. Therefore, the signed MoU's with AAI and SDMC includes development of charging infrastructure as one of the major components of the scope of work.

C. Fuel Cell Electric Vehicle

Besides Battery based E-mobility, NVVN has also planned to enter Hydrogen Mobility business. Pilot projects based on green Hydrogen are planned to be carried out in Leh and Delhi with 5 nos. of Fuel cell electric buses at each location. NIT for the Hydrogen buses (Fuel cell electric vehicle) has been issued.

D. Waste to Energy and disposing municipal solid waste (MSW)

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

In addition to this, NVVN has also signed Memorandum of understanding with Municipal Corporations of Surat, East Delhi, Varanasi, Indore, Bhopal and Hubli Dharwad for setting up state of the art Waste to Energy plant/ Municipal solid waste to Charcoal plant.

To fast-track the technology development, NVVN, has organized technology challenge aptly named as Green Charcoal Hackathon. The purpose of the event is to leverage the innovative Indian mind to bridge the technology gap, with the prime objective to clean the air by eliminating farm fire, producing renewable energy out of the agro residue, to promote local entrepreneurship, and to increase the income of the farmers. The final evaluation has been completed.

NVVN has paid dividend of ' 30 Crore during FY 2020-21.

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 29.8.2019 for handling its mining business. It is expected that undertaking of mining business by this subsidiary would result in timely development of mines with efficient handling of contracts by dedicated team. This will ultimately achieve substantial efficiency and increased competitiveness.

9.2.4 NTPC EDMC Waste Solutions Private Limited (NEWS),

In order to develop and operate state of art/modern integrated waste management and energy generation facility using municipal solid waste. Your Company has incorporated a JV Company with 74:26 shareholding with East Delhi Municipal Corporation (EDMC). The power plant capacity will be 12 MW and shall utilize approx. 2000 T/day of municipal waste and will comply to latest environmental norms.

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 Limited) 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 ' 5.00 crore to your Company during FY 202021.
NGSL(NTPC GE Power Services Private Limited, earlier NTPC Alstom Power Services Private Limited) GE Power India Limited A 50:50 JVC provides R&M services for coal-based power plants in India to renovate, modernize, refurbish, rehabilitate, upgrade, reverse engineering, component damage assessment and RLA, utilizing state of art technology.
R&M including RLA work orders are under execution. NGSL is diversifying to take up new business assignments in area of FGD, Ash Utilization, O&M and RE.
NGSL paid ' 0.25 crore as dividend to your Company during FY'20-21
EESL (Energy Efficiency Services Limited) PFC, PGCIL and REC Your Company is having a stake of 47.15%. The Company was formed for implementation of Energy Efficiency projects and to promote energy conservation and climate change.
EESL is working on Energy Audit of Buildings, Perform Achieve Trade (PAT) scheme work and standard & leveling work of BEE, Consultancy work, implementing Bachat Lamp Yojana and Agricultural & Municipal Pump replacement 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 Private Limited) NHPC, PGCIL, DVC and CPRI Your Company is having a stake of 20.00% in JVC. The 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 and other facilities as may be required for the same in the country.
HVTR test Laboratory set up at Bina, M.P. was declared Commercial w.e.f 1.7.2017.
NBPPL (NTPC-BHEL Power Projects Private 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 equipment.
In 2018 both Promoters had approached respective Ministries to exit from NBPPL/ closure of NBPPL. MoP had advised your Company to consider buy out of BHEL stake in NBPPL. Your Company vide letter dated 20.10.2020 to MoP has suggested that since both NBPPL & BHEL are under administrative control of DHI and NBPPL is in the field of EPC and Manufacturing, which has more synergy and alignment to BHEL's business, therefore, DHI/BHEL may be impressed upon to buy out your Company stake in NBPPL.
BF-NTPC (BF-NTPC Energy Systems Limited) Bharat Forge Limited Your Company is having a stake of 49% 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 44.60% in JVC. The Company deals in manufacturing and repair of Power Transformers.
Your Company has accorded in-principle approval for withdrawal from TELK on 28.4.2016.
Government of Kerala (GoK) through Additional Chief Secretary to Government requested your company to review the decision to quit TELK.
The matter is under consideration.
ICVL (International Coal Ventures Private Limited) CIL, SAIL, RINL, NMDC Your Company is having a stake of 0.09% in JVC. ICVL was formed for acquisition of stake in coal mines/ blocks/ companies overseas for securing coking and thermal coal supplies.
In view of lack of suitable commercially viable opportunities for thermal coal, your Company has decided to exit from ICVL.
As the Company was formed by a directive from the Government of India, approval of the Government is awaited for exit.
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 29.67% in JVC. HURL was incorporated on 15.6.2016 to establish and operate new fertilizer and chemicals complexes (urea- ammonia and associated chemical plants) at Gorakhpur, Sindri and Barauni and market its products.
Lumpsum Turnkey contract was awarded for Gorakhpur, Baruani and Sindri with a completion schedule of 36 months. Construction work in all the three projects are in progress.
CNUPL (CIL NTPC Urja Private Limited Coal India Limited (CIL) A 50:50 JVC was incorporated on 27.4.2010 between your Company. and Coal India Ltd to undertake the Development of Brahmini and Chichro-Patsimal coal mine blocks in Jharkhand and subsequently their operation and maintenance and integrated coal-based power plants.
In June 2011, Ministry of Coal, GoI has de-allocated Brahmini and Chichro- Patsimal coal blocks which were earlier allotted to the JV Company.
CNUPL is exploring new business area for implementation of solar projects. MoU is to be signed by CNUPL with Northern Coalfields Limited (NCL) to support as Project Coordinator for development of 50 MW Solar PV Power Project in the vacant land of NCL at Nigahi mine, 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 gas 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 Station. Commercial arrangement is being finalized with IRCTC. Construction of Bottling Plant is under progress by IRCTC.

9.5 New Business Areas

MoU was signed on 24.7.2019 with BHEL for forming a joint venture company to set up 800 MW Technology Demonstration Plant (TDP) based on Advanced Ultra Supercritical Technology (AUSC) at Sipat, Chhattisgarh. PIB Proposal for Financial support to proposed JV Company between your Company and BHEL, for setting up of 1 X 800 MW capacity Technology Demonstration plant (TDP) to establish AUSC technology for coal fired thermal power plants is under consideration by GoI.

9.5.1 JV with National Investment and Infrastructure Fund (NIIF). Your Company has signed an MoU with NIIF on 16.7.2020 for investment in Renewable Energy Domain and also exploring the possibility of venturing into the field of supply and distribution of electricity. Joint Venture Agreement with NIIF for the above collaboration was approved by Board of Directors in its meeting held on 4.2.2021 to form a Joint Venture Company, with 51:49 equity participation by NIIF and your Company respectively. Approval of National Institution for Transforming India (NITI Aayog) has been obtained.

9.5.2 Exploring business opportunities for setting up Industrial Park at your Company's Power Stations. In a first of its kind initiative your Company has issued an Expression of Interest in 21.9.2020 to develop Industrial parks at land parcels available at various power plants of your Company. Three stations of your Company, Kudgi (Karnataka), Solapur (Maharashtra), and Gadarwara (Madhya Pradesh) are selected for the initiative on a pilot basis and interests have been received from several industries which are willing to setup energy-intensive manufacturing facilities at your Company Power Stations. M/s KPMG has been engaged by your Company to prepare a Strategic blueprint and Roadmap for execution of the Industrial parks.

9.5.3 Eol for setting up of CO2 to Methanol production in your Company's plants

Keeping focus on decarbonisation of the Indian energy sector, India's commitment to COP 21 for reducing GHG emissions and ‘Methanol Economy' program initiated by NITI Aayog, your Company intends to set-up commercial scale CO2 Capture, H2 Generation & Conversion to Methanol (composite facility) in aggregator mode on BOO basis at its various plants in India. In the proposed facility, CO2 will be captured from flue gas and will be converted to Methanol by utilizing appropriate hydrogen production facility to be set up for this purpose. In this regard, your Company has invited Global Expression of Interest (EoI) on 28.1.2021 from Indian/Global Company /their consortium/Affiliates/Representatives. The EoI has been issued to evaluate the industry response, identification of suitable technologies for Carbon Capture, Hydrogen Production and Methanol production thereof, assess the financial viability and the best possible option for commercialization.

9.5.4 Setting up of Energy Intensive (Chemical) manufacturing facility in your Company Plants- Your Company is in the process of engaging a suitable consultant for carrying out market survey for setting up Caustic Soda manufacturing facility in one of the your Company's station located in Southern or Western Region.

9.5.5 Exploring new Hydro Power Projects and Pump Storage Hydro (PSH) Projects - Your Company is in discussion with Govt. of Arunachal Pradesh for allocation of suitable Hydro Power projects in the state of Arunachal Pradesh. Your Company is also taking up with Govt. of Andhra Pradesh for allocation of suitable Pump Storage Hydro Projects.

9.5.6 Common Backend Infrastructure Facility (CBIF)

Your Company is in process of setting up of Common Backend Infrastructure Facility (CBIF), for supporting nationwide rollout of smart meters, through EESL.

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. Milestones of Unit#2 TG erection start and Unit#1 Boiler Drainable Hydro Test at design pressure were achieved during the year.

10.2 Trincomalee Power Company Limited (TPCL), For development of the proposed 300 MW LNG Power Project at Kerawalapitiya, Sri Lanka, JVSHA with Ceylon Electricity Board (CEB) was signed in 2019. Discussions are underway for incorporation of a 50:50 JV company which would then develop the project.

Further, a 50 MW solar PV power project at Sampur, Trincomalee is envisaged to be developed by the existing JV Trincomalee Power Co. Ltd. for which draft JVSHA has been shared with Sri Lankan side for their confirmation.

10.3 Other Opportunities Abroad:

a. Project management consultancy assignments under ISA platform secured for 500 MW in Republic of Mali in June 2020 and 100 MW in Republic of Malawi in March 2021. Total capacity under implementation is now 885 MW including earlier secured 285 MW in Republic of Togo;

b. Collaboration for international business through signing of MoUs with EGENCO, Malawi in May 2020 and with IOCL in Dec 2020. Further three MoUs have been approved in March 2021 for signing viz. with Inter RAO Exports of Russia, Bank Muscat of Oman and Masen of Morocco. 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. Consultancy assignments viz. Energy audit of cement factory in UAE and Evaluation of PPA methodology of PP9 in Saudi Arabia were completed during the year of which payment for energy audit assignment was also received in March 2021;

d. Your Company is providing Project management consultancy & DPR preparation services under ISA platform to 47 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. Agreement for the same was signed by your Company & ISA in Sept' 2020; and

e. A total of 6 RFPs, 6 RFQs and 28 EOIs have been submitted so far in this financial year for power sector opportunities overseas. Your Company has been shortlisted in 10 of them while results of most are awaited.

11. CONSULTANCY SERVICES

Your Company supports Indian Power Industry with its vast experience & expertise and offers Consultancy services "From Concept to Commissioning and beyond...." in 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 & ISA Member countries. Around 130 assignments are presently under execution.

Some of the Major ongoing assignments are as follows:

- Project Management Consultancy (PMC) for implementation of (2X660 MW) Khurja STPP of THDC and (2X660 MW) Buxar TPP of SJVN.

- Post Award Review Engg. & Project Monitoring services at (1X660 MW) Panki Extn.TPP (2X660 MW) Obra Extn. TPS & (2X660 MW) Jawaharpur TPS of UPRVUNL.

- Commissioning support to UPRVUNL Harduaganj Extn -II (1x 660 MW).

- Engineering review of (2x20 MW) AFBC Unit of NSPCL Durgapur.

- Solar Projects.

International:

- PMC of Dalwak in Dapaong (35 MWp) and in Mango (250 MW) in Savanes Region, Govt. of Togo.

- PMC of 500 MW in The Republic of Mali

- PMC of 100 MW in Malawi.

Domestic:

- PMC of 50 MW solar project of NCL (Northern Coalfields Ltd)

- DPR of 1200 MW solar projects of THDC

- 24 Consultancy Assignments pertaining to compliance of new environment norms through implementation of FGD, Combustion modification, ESP R&M etc. are under various stages of implementation.

Your Company's Consultancy clientele includes Govt. organizations such as UPRVUNL, APGENCO, CSPGCL, HPGCL, DVC, PSPCL, OCPL, JPVL, NALCO, Haldia Energy, NLC, PFC, CCL, SCCL, Pollution control Boards, WBPDCL, KPCL, Joint Venture companies of your Company and member countries of International Solar Alliance (ISA).

Highlights of FY 2020-21

• Your Company Consultancy received orders worth ' 266.66 Crore during FY 2020-21, which includes orders worth ' 200 Crore for implementation of Solar projects.

• In first of its kind consultancy project, your Company Consultancy prepared Feasibility report for utilizing waste flue gas heat for air-conditioning at BPCL's Cochin refinery.

• Your Company is working as Project Management consultant (PMC) for implementation of solarization projects in 47 Least Developed Countries (LDC) and Small Island Developing States (SIDS) member countries of ISA.

Consultancy Wing of your Company is looking ahead for future business opportunities in areas such as Complete O&M of thermal power plants, Solar & Renewable power projects, Owner's Engineer for major power projects, PMC for implementation of new environmental norms e.g FGD, ZLD, DNOx & ESP R&M, IT services e.g. ERP implementation, PRADIP, Dreams 2.0, PI systems, etc.

• International project management consultancy for setting up of solar projects for Togo and Mali in Africa under ISA initiative are under execution.

12. FINANCING OF NEW PROJECTS

The capacity addition programs shall be financed with a debt to equity ratio of 70:30, in case of thermal and hydro projects 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 at Annexure-I.

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 ' 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/ nonreceipt of claims.

14. FUEL SECURITY

During the year 2020-21, the supply position of coal and gas of your Company is given as under:

14.1.1 Long Term Coal Supply Agreements

- In line with the Model Coal Supply Agreements (CSA) signed between your Company and Coal India Limited (CIL) in 2009, 2012 and under Shakti Policy, Long-term Coal Supply Agreements (CSAs) are in place with the subsidiary coal companies of Coal India Ltd. (CIL) for an Annual Contracted Quantity (ACQ) of 166.69 Million Metric Tonnes (MMT) for the existing thermal stations. In addition, CSA is in place with Singareni Colliery Company Ltd. (SCCL) for Ramagundam for an ACQ of 11.20 MMT. Fuel supply Agreement (FSAs) are valid for a period of 20 years with a provision of review after every 5 years.

- In FY 2020-21, your Company has signed new LongTerm Fuel Supply Agreements (FSA) for 1.851 MMTPA with NCL for Vindhyachal-V Unit-13 (500 MW) and 2.805 MMTPA with NCL for Gadarwara (2X800 MW). Further, with handover of Barauni TPS from BSPGCL (Bihar State Power Generation Company Ltd.) to your Company, FSA of Barauni-I (2X110 MW) for 0.885 MMTPA with ECL has been transferred to your Company.

- Under coal linkage rationalization policy of GoI, Mouda-II (2X660 MW) FSA has been shifted from distantly located MCL mines to nearby WCL mine- specific sources, thereby reducing cost of generation from the plant. Accordingly, your Company has signed FSA for 4.72 MMTPA with WCL. Further, due to suspension of coal mining activities, coal linkages of Farakka and Bongaigaon with NEC (CIL) have been shifted to various other subsidiary coal companies of CIL. However, the transferred FSAs to this effect are expected to be signed in FY 2021-22.

- Linkage under Scheme to Harness and Allocate Koyla (Coal) Transparently in India (SHAKTI) policy for upcoming units: After grant of Long-term coal linkage by SLC (LT), during the year, your Company has secured Letter of Assurance (LoA), 5.61 MMTPA for Singrauli-III from NCL.

Short Term Coal Supply Agreements Signed and coal supply agreement modified during the financial year 2020-21

Agreement with SCCL

- A bilateral Memorandum of Understanding (MoU) was signed with SCCL for financial year 2020-21 with the validity of one year for a quantity of 8.00 MMT, which can be further increased to 10 MMT, on best effort basis. The MoU was signed for supply of coal to Kudgi plant under Bridge Linkage and other stations of your Company as per requirement at Notified prices as per notification of SCCL applicable for power consumers.

Bridge Linkages

- Pursuant to recommendations of SLC (LT), GoI for grant of Bridge Linkage for Barauni Extn. Unit 8 and Unit 9 (2X250MW) for three years from the date of transfer /allotment of linked Badam coal block, your Company has signed Bridge Linkage MoUs with CCL and ECL for 1.392 MMTPA and 0.426 MMTPA respectively, both valid up to 31.3.2022. Further, Bridge linkage of Tanda, Lara, Kudgi and Darlipalli allocated by MoC under the Bridge Linkage policy to bridge the start of supply from the captive mines to requirement of coal of plant is valid up to the 2021-2022. Further, Bridge Linkage of Barh is valid up to 2022-23.

- Your Company had been allocated short-term tapering linkage for Telangana-Phase- I Project (2X800 MW) from WCL (cost-plus source). During the year, based on your Company's requests, SLC (LT), GoI in its meeting dated 27th July 2020 recommended transfer of the tapering linkage from existing WCL to nearby SCCL mines. The Tapering linkage MoU for 6.846 MMTPA with SCCL is expected to be signed in FY 2122.

- 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 2020-21, your Company has used 10.50 MMT of coal under Flexibility Utilization to address AFC under recovery and generation loss.

- As per directives of Govt., Central Institute of Mining and Fuel Research (CIMFR) started coal sampling in Jan. 16. During the period 2020-21, sampling is being done at all loading end sidings except Bukru and Phulbasia of CCL. Sampling at unloading end of all stations is already under progress.

Agreements for supply of imported Coal

- To mitigate the shortage of coal from domestic sources and for the blending purpose to improve the quality of coal, your Company has awarded imported coal contracts for procurement of 1.50 MMT in October 2019 and restored the contract of 2.25 MMT in March 2019 for supply of imported coal to Mouda and Dadri. Your Company received 1.08 MMT of imported coal during the financial year 2020-21. No fresh contract for import of coal has been awarded.

14.1.2 Domestic Coal and Imported Coal Supplies

- During 2020-21, your Company received 173.09 MMT of Coal as against 174.84 MMT in 2019-20. Out of 173.09 MMT of Coal, 153.25 MMT was from Annual contracted quantity of Coal, 7.97 MMT through Bridge Linkage/SCCL Bilateral MoU, 10.78 MMT from Captive Mines and 1.08 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 2021. These agreements may be extended based on Government of India (GoI) directions. Your Company also has a long-term 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 regasified liquefied natural gas (RLNG) supplies are contracted on ‘Reasonable Endeavour' basis with no penalty on either party for short supply/short off take. Further, your Company has started procuring Spot RLNG on commitment basis since March 2020 from domestic suppliers, subject to consent of the beneficiary Discoms. Further, adequate stock of liquid fuel is maintained for meeting Grid requirement.

- Further, in line with Ministry of Petroleum and Natural Gas (MoP&NG) guidelines for ‘Clubbing/diversion of gas between two or more power plants' and with the approval of Ministry of Power (MoP), your Company entered into arrangement with GAIL for flexibility of diversion of APM and Non-APM gases between its gas stations in NR and WR region on daily basis. With the diversion of unutilized gas from the Company's WR stations to NR stations, additional 1.65 BUs (approx.) of electricity has been generated at NR gas stations during financial year 2020-21.

- During 2020-21, your Company received annual average 2.48 MMSCMD of Domestic gas as against 2.53 MMSCMD of Domestic gas received during 2019-20. Long Term RLNG & Spot RLNG off-takes during 202021 were 0.43 & 0.54 MMSCMD as against 0.49 & 0.14 MMSCMD during 2019-20 respectively.

- There has been no loss of station availability on account of lack of availability of Domestic gas / RLNG / Liquid fuel during the year.

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

- Your Company has seven coal blocks with an estimated mine capacity of 71 MMTPA.

- Your Company has achieved a total coal production of 11 MMT during FY 2020-21 and cumulative production was 32.36 MMT till the end of FY 2020-21.

- Pakri-Barwadih coal mine was declared commercial w.e.f 1.4.2019 with an estimated mine capacity of 18 MMTPA. 7.07 MMT coal produced in FY 2020-21

- Dulanga coal mines was declared commercial w.e.f 1.10.2020 with an estimated mine capacity of 7 MMTPA. 3.12 MMT coal produced in FY 2020-21

- Coal extraction was commenced from Talaipalli w.e.f 1.11.2019 with an estimated mine capacity of 18 MMTPA. 0.81 MMT coal produced in FY 2020-21.

- Further Coal extraction targeted to start in Kerandari & Chatti-Bariatu coal blocks from FY 2023.

14.2.2 Development of Coal Mining Projects

Your Company has started coal production from three mines i.e Pakri-Barwadih, Dulanga & Talaipalli. Other mines i.e. Chatti-Bariatu, Kerandari & Badam are in various stages of development. Development activities are also going on in Banhardih mine, allocated to Patratu Vidyut Utapadan Nigam Ltd. (PVUNL), a subsidiary company incorporated between your Company & Government of Jharkhand.

Further, Pakri-Barwadih coal project of your Company has been awarded "Abheraj Baldota Environment Award" for best Environment Management System by Federation of Indian Mineral Industries (FIMI), New Delhi in FY 2020-21.

Amidst COVID-19 pandemic and stoppage of work for about 94 days during Jul-Nov'20 in Pakri-Barwadih mine due to resistance of the villagers, your Company has achieved a total coal production of 11 MMT from three mines during FY 2020-21. Cumulative 32.37 MMT of coal have been produced from these three mines, 26.21 MMT from Pakri-Barwadih, 5.16 MMT from Dulanga and 1 MMT from Talaipalli, till Mar'21.

For Chatti-Bariatu coal block, all statutory clearances and priority land for commencement of mining are available. NIT for appointment of Mine Developer and Operator (MDO) issued on 25.11.2020; Price Bids opened on

16.4.2021 are under evaluation.

In Kerandari coal block, priority land and major statutory clearances are in place except tree cutting permission from Jharkhand State Forest Department for which your Company is constantly pursuing. For this mine, your Company earlier decided for departmental mining with limited outsourcing, but against that tender response was inadequate. So, process has been initiated for appointment of a Mine Developer-cum-Operator and NIT has been issued on 28.6.2021.

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), proposals for Stage-II Forest Clearance, Government land transfer, Mining lease, etc. are pending with Govt. of Jharkhand for which your Company is constantly pursuing.

Your Company has incurred an expenditure about ' 39.33 Crore on community development in the coal mining projects and in the vicinity, in FY 2020-21 (cumulative expenditure of about ' 233 Crore), which has helped in improving the socio-economic conditions of the local community.

In Mandakini-B coal block, villagers were not allowing your Company and its agencies to carry out the work of drilling, site specific studies like SES, EIA/EMP, land acquisition notifications, etc. since 2018, in spite of intervention of Dist. Admn./State Govt./MOP/MOC. Your Company had no other option but to surrender the block to MOC on 26.12.2020. Performance Security (BG) of ' 168 crore was encashed by MOC on 22.3.2021 citing delay in achieving the milestones of efficiency parameters which were actually beyond the control of your Company. Your Company has approached MOP on 30.3.2021 to take up the matter in AMRCD (Administrative Mechanism for Resolution of CPSEs Disputes) for resolution of the dispute on BG encashment.

Because of geo-mining constraints, likely less percentage of coal extraction in two adjacent coal blocks, Banai & Bhalumuda and due to non-availability of any noncoal bearing land in the vicinity for OB dumping, your Company has surrendered these two coal blocks to MOC on 26.12.2020.

14.3 Initiatives through Joint Ventures and Subsidiaries:

For Banhardih coal block, being developed by PVUNL, a subsidiary company incorporated between your Company & Govt. of Jharkhand., in-principle approval of the mining plan has been accorded by MOC on 5.7.2021. 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.

Your Company incorporated a wholly-owned subsidiary Company named NTPC Mining Ltd. (NML) for its coal mining business. MOC has allowed for transfer of Pakri-Barwadih coal mine of your Company, to NML on 16.12.2020. Ministry of Coal (MOC) on 24.3.2021 conveyed that the request of transfer of the other mines allotted under CMSP & MMDR Acts cannot be acceded to. However, your Company is still pursuing with MOC for the same.

15. BUSINESS EXCELLENCE: 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 European Foundation for Quality Management (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 2020-21, twenty-two generating stations were assessed by a team of certified assessors. Business Excellence Award for overall excellence was given to your Company's Singrauli project. Tanda has moved to next higher band as compared to last year. Ten stations are now at a higher band of 551-600. Capacity building in BE Model was undertaken and 92 senior level executives were trained in 3 batches.

Other contemporary total quality management (TQM) concepts and techniques like ISO, Quality Circles, Professional Circles, 5S etc. have been deployed across the organization. Dadri & Rihand Stations were certified by JUSE for 5S system. Annual Professional Circle Convention of your Company was held at Meja Urja Nigam Private Limited (JV company) on 6th March 2021 where in 17 teams participated. Likewise, Your Company's Quality Circle convention was held at Lara on 13th March 2021 with 15 teams participating. Both the events were organised "Online" on company's IT platform. Quality Circle team Anusandhan from Farakka station of your Company had qualified for the International QC Convention 2020 held at Dhaka, Bangladesh.

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 in 20 stations (Coal & Gas based) is ' 16,049.24 crore. As against this, cumulative expenditure till 31.3.2021 is ' 8,571.78 crore which includes R&M capital expenditure of ' 538.34 crore during financial year 2020-21.

As a responsible Corporate citizen, it has always been your Company's endeavour to ensure low levels of emission from its power stations. With a view to maintain a clean atmosphere by reduction of particulate emission levels from generating stations, Renovation and Retrofitting of Electrostatic Precipitator (ESP) packages have been awarded for 60 units in 20 stations totalling 16.70 GW and is under implementation. Out of total 60 units, work of 44 units have already been completed and for remaining 16 units works are in progress.

With a view to overcome technological obsolescence, Renovation of Control & Instrumentation (C&I) system has been taken up in nine (9) coal-based stations comprising of total forty-two (42) units. Out of these 42 units, work has been completed for 35 units. Similarly, Renovation of Control & Instrumentation (C&I) system has been taken up in five (5) gas-based stations. Out of these 5 stations, jobs completed in four (4) stations comprising of fifteen (15) Gas Turbines and seven (7) Steam Turbines. After completion of R&M, C&I systems in these units will be nearly at par with the new builds.

Your Company is also executing R&M of Steam turbines at its Ramagundam super thermal power station stage-I (3x210 MW) units and planning for R&M in few more units. These R&M interventions ensure life extension and restoration of heat rate towards design values.

At Rihand Stage-I, both Premier Air Pre Preheater (PAPH) of Unit#1 (NEI Design) were replaced by new (PAPH) which improved heat rate and also increased ID fan margin. With this renovation the unit achieves 105% capability. Also Purchase order was placed for Stage-I E Mill replacement by HP Mill which will reduce annual maintenance cost and also reduce auxiliary power consumption.

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 2020-21 excluding JV/ subsidiary capacity is 0.32 and 0.29 including capacity of JV/Subsidiaries. Generation per employee was 16.13 MUs during the year based on generation of your Company's stations.

The total employee strength of your Company (including JV/ subsidiaries) stood at 18,509 as on 31.3.2021 against 19,165 as on 31.3.2020

Particular FY 2020-21 FY 2019-20
Your Company
Number of employees 16,798 17,398
Subsidiaries & Joint Ventures
Employees of your Company in Subsidiaries & Joint Ventures 1,711 1,767
Total employees 18,509 19,165

The attrition rate of your Company is very low as most employees choose a lifetime career with your Company. During FY 20-21, our employee turnover rate was 0.32%.

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 other's efforts in furthering the interest of your Company as well as its stakeholders, signifying and highlighting overall harmony and cordial employee relations prevalent in your Company.

17.3 Safety and Security

Occupational health and safety at workplace is one of the prime concerns of your Company Management. 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 addressed Senior leaders and employees.

23 of your Company's stations are already certified with ISO:45001 and other stations are having OHSAS:18001 and are migrating to ISO:45001. The base line audit of four of the stations for international level NOSA accreditation in Safety and Environment has been done. Certification auditing of these stations shall be carried out after the easing out of the current pandemic situation of COVID-19. Regular plant inspection and review with Head of Project/Station is being done to guide 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. 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. Company level documents like Operation Directives (OD), Operation Guidance Note (OGN), Hazard Identification and Risk Assessment (HIRA) etc. have been prepared and shared with all stations. Specific 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.

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 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 station. Trainings have been done by each 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 National Disaster Response Force (NDRF) to prepare for any extreme on-site emergency. Sites are engaging the safety consultants of international repute to uplift safety standards.

For strict compliance and 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.

Most of your Company's plants have been awarded with prestigious safety awards conferred by various Institutions/ Body like Ministry of Labour & Employment-Govt. of India, National Safety Council, British Safety Council, Institute of Directors, Institution of Engineers (India), Safety awards instituted by different state governments, Apex Greenleaf Safety Foundation, Greentech Foundation, Global Safety Forum in recognition of implementing innovative safety procedures and practices.

Security: Your Company has established and is maintaining a secure 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 systems at all projects/ stations by installing state-of-the-art security systems.

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 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 volatile, uncertain, complex and ambiguous (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, outbound activities, online (web based and Video-Conferencing), Virtual Reality and e-Learning with increasing emphasis on technology driven platforms. In fact, in the wake of COVID-19, almost all programs are being delivered virtually on MS Teams / other such platforms.

Innovative practices like theatre workshop and CSR exposure form part of your Company's flagship Executive Trainee program. Planned interventions [Foundation Course, Enhancing Managerial Competence (EMC) and Advance Management program (AMP)] of 11 days are provided at three identified stages of careers of executives along with job-rotation and transfer to ensure experiential learning. Total 1,756 training programs were conducted during FY 2020-21, resulting in a total of approximately 2,18,582 learning man-days.

Your Company takes pride in being a people friendly organization and strives to ensure safe workplaces. Through it's Safety Academy, your Company is conducting safety related certificate courses across the organization. In the year 2020-21, Safety Academy has coordinated and facilitated 12 weeks program on Industrial Safety Engineering through IIT- Kharagpur via NPTEL SWAYAM online portal of Government of India. It has also organized special interventions for Operation and Maintenance Heads through ASCI, Hyderabad on Human factors in Safety and for developing safety competency of agency supervisors.

In a first of its kind initiative, PMI started "NTPC Women Leaders Annual Conclave" on 8th March 2020 to celebrate women leadership, encourage networking and facilitate women leaders from all walks of life inspire and connect with each other. The second edition of the Conclave was held in 2021. Both the editions had Speakers from varied backgrounds like army, navy, science and technology, sports and fitness, entrepreneurship, media and academia share their journey. Moreover, gender sensitisation workshops are conducted both as standalone programs and as part of the planned interventions and ET program, to strengthen inclusivity, Around 7,700 executives have been provided the opportunity to undertake Harvard Manage Mentor (HMM), a Company sponsored online certification course. Operation and Maintenance executives are being covered under the GpiLearn Online technical competency enhancement modules wherein, depending upon the station and department, learning paths have been created for both core-function and cross-functional learning followed by assessments. The courses are being accessed over internet, any time, at any place through computer or mobile.

PMI has also associated with NASSCOM to provide online access to all executives of your Company for completing courses on emerging technologies like AI, IoT, Big Data, AR / VR etc. and Project Management, Digital Leadership, Design Thinking etc. on the future skills platform. PMI is also providing instructor led online classes for participants who have enrolled to some of these courses.

Considering the Covid pandemic, a number of holistic wellness programs was conducted through external experts and reputed organizations like Isha Foundation, Brahmakumaris etc. Families were also included by leveraging YouTube for delivering such programs. Innovative practices undertaken during the year were Coaching, development of Virtual Reality (VR) training modules, online Employee Assistance (EAP) program on pilot basis and commissioning of Simulator training at Tanda & Meja (JV Company) through remote at RLI, Solapur.

Besides building capability by training employees across the power sector, PMI is extending its support towards building capability among SAARC and African countries. In the year 2020-21, PMI has trained Engineering Executive trainees and executives from Chemistry from Bangladesh, Malawi and Eritrea.

In the L&D domain, your Company has received the globally acknowledged ATD Best Award for 2017, 2018, 2019 & 2020, 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 31.3.2021) 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 & 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 well-being of employees and their families. In addition, cultural programmes involving employees and their families are also conducted.

Further, on the occasion on 6th 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 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 had started 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.

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 the 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. We believe that development should not endanger the environment & natural eco-systems.

Your Company has become one of the pioneers among PSUs to publish Integrated Annual Report in FY 2020, in compliance with Global Reporting Initiative (GRI) standard and as per IIRC pattern. In the report, SCOPE 2 & 3 data were also reported along with SCOPE 1 emission data and Rain Water harvesting data. A credible and fair third-party assurance of our Sustainability Report is a critical part of our sustainability disclosures. Your Company received reasonable assurance (highest level) as per ISAE 3000 assurance standard by M/s KPMG.

Sustainable Development (SD) Plan for FY 2020-21 was prepared and approved by CSR & SD Board level Sub Committee 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 2020-21.

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

> Development of Sustainable Supply Chain Policy for capacity building of our suppliers on the evolving environmental, social and governance/compliance aspects of sustainable development.

> Your Company was declared winner of CII-ITC Sustainability Award 2nd time in a row i.e. in year 2019 and 2020. It is one of the most coveted award 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 ESG rating analysts at global level to address controversies and sharing of data for improvement of your Company ESG rating. Your Company has been covered as a Case Study in CA100+ Global Progress Report 2020.

> 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):

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 respectively 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 500 villages and more than 450 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 18 lakhs 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 ' 418.87 Crore during the financial year 2020-21 towards CSR initiatives, which surpassed the prescribed two percent amount of ' 278.57 Crore, thus achieving a CSR spend of 3.04%.

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 Annexure-VII to this Report.

18.1.3 Rehabilitation & Resettlement (R&R)

Your Company is committed to help the population displaced on account of land required for execution of the projects and has been making efforts to improve the Socio-economic status of the Project Affected Families (PAFs). In line with its social objectives, the company has focused on effective Rehabilitation and Resettlement (R&R) of PAFs and Community Development (CD) activities in Project Affected Villages (PAVs) and vicinity.

R&R activities are initiated at your Company projects by undertaking need based community development activities in the area of health, education, drinking water, capacity building, infrastructure, etc. by formulating ‘Initial Community Development (ICD) Plan' in consultation with concerned Panchayats, District Administration and opinion makers of the locality. Your Company addresses R&R issues in line with extant R&R Policy of your Company/ Central Govt./ State Govt. Policy/ Guidelines with an objective that after a reasonable transition period, the conditions of affected families improve or at least they regain their previous standard of living, earning capacity and production levels. Your Company revised its R&R Policy 2010 in the year 2017 to incorporate R&R entitlements as per ‘The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013' (RFCTLARR Act, 2013). As per your Company's R&R Policy-2017, aligned in line with 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 which shall form the basis for the preparation of ‘Rehabilitation and Resettlement (R&R) Scheme by the appropriate Govt. The R&R Scheme consists of measures for Rehabilitation & Resettlement and need based CD infrastructure in Resettlement Colony (RC).

Additionally, your Company in its R&R Policy 2017 has kept provision for need based community development (CD) activities to be taken up in project affected villages where Project Affected Families (PAFs) continue to reside even after land acquisition as also in vicinity of the project so as to ensure that the displaced families in the RC or the affected families settling in neighboring villages may secure for themselves a reasonable standard of community life.

Expenditures on implementation of R&R Plan is part of Capital cost of the project and the Plan is implemented in a time bound manner so as to complete its implementation by the time the project is commissioned. On completion of the R&R Plan implementation, a Social Impact Evaluation (SIE) is conducted by a professional agency to know the efficacy of the R&R Plan implementation for future learnings.

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 - North- Karanpura, Darlipali, Gadarwara, Khargone, Lara, Kudgi, Telangana, Mouda, Solapur, Tanda-II, Barh, Meja, NPGC, Kanti, Patratu, 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 & participation of the stakeholders and approved.

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

B. Focus Areas for Community Development activities:

• Drinking water - Planning and implementation for access to drinking water for 100% coverage of all project affected villages of your Company projects under construction is being 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 upgradation - Training programs conducted by various projects towards skill enhancement. Specific focus is being kept on imparting training to villagers on modern farming methods for improving the output. The support to dependents of PAFs for ITI training was also extended by various projects.

• Education - Infrastructure created for Medical College-cum-Hospital at Sundargarh (Odisha) is ready for handover to Govt. of Odisha. A portion of the same for 200 bed facility is being used as Covid Care Centre cum Isolation ward for Corona virus infected patients. Financial assistance extended towards upgradation of infrastructure and other basic amenities including setting up of latest equipment in the Govt. Medical College at Raigarh (Chhattisgarh).

Construction of Engineering College at Shivpuri (MP) has been completed and academic session 2020-21 has been started in on-line mode.

Support has been extended for construction of Hydro Engineering College, Bilaspur (Himachal Pradesh). Building for Govt. Polytechnic at Dhak (Joshimath) was constructed.

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 population, Mobile Health Clinics, Medical camps and dispensaries are being operated for comprehensive health coverage of PAFs at various projects. Support extended to District Administration, Peddapalli (Telangana) for augmentation of another floor and equipment at Govt. Hospital. 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 mother and new born babies.

• COVID-19 related support by your Company

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

S Installation of Ventilators at Hazaribagh Govt. Hospital.

S Covid ICU beds at District Hospital Khargone & Oxygen Bed Set-ups in 5 Blocks of Khargone.

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

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 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 undertakes massive renovation & modernization to upgrade pollution control equipment wherever necessary. Your Company has also taken initiative for installation of Flue gas desulfurization (FGD) system for SOx emission control and optimization & implementation of appropriate technology for NOx emission control to comply with revised emission norms as per stipulated timeline for respective station/unit.

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, DeNOx and FGD in all upcoming green field projects are under erection.

Your Company is augmenting its capacity with green power by installing Solar Power, hydel power and wind power in a big way, 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 station 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 ecofriendly manner, your Company has revised and released "Water Policy-2021" to minimize the water footprint to the extent possible levels on basis of techno-economic approach in Company's operations.

Your Company has signed CEO water mandate 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, DeNOx 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 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 ESPs in 64 units, out of which R&M work of ESPs has been completed in 48 units and in balance 16 units work is in progress as per schedule.

For control of SOx, first wet FGD has been commissioned and become operational at Vindhyachal Station. Your Company has commissioned Dry Sorbent Injection (DSI) based FGD in four units of Dadri Stage-I. Erection of wet FGD at Dadri Stage-II is in advanced stage. FGD based of dry sorbent injection (DSI) system erection work is in advanced stage of erection in two units of Tanda (Stage-I) to meet the emission norms for SOx. Your Company has awarded FGD packages for 60 GW+ capacity and execution are in progress to comply the new norms for SOx emission as per the timeline Notified by MoEF & CC vide notification dated 31.3.2021.

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 20 GW+ capacity. Combustion modification work in 16 units has already completed and in balance units work shall be completed in next scheduled overhaul. To comply with new norms for NOx emission, pilot study based on SCR/SNCR technology was conducted and report was submitted to concerned authorities for consideration and finalization of technically viable emission limit and finalise the optimal solution and suitable technology for DeNOx system suitable for Indian Coal.

Change of secondary fuel from HFO to alternative fuel (LDO or LSHS having low sulfur content) scheme implemented in all stations of your Company 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 of 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 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 - 2021 and Rain Water harvesting Policy-2018 to set its own benchmark in water consumption in power generation by setting its aim and 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.

All stations of your Company are equipped with advanced waste water 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. For optimum use of water, all stations of your Company are having closed cycle condenser cooling water systems with higher Cycle of Concentration (COC). Adoption of high concentration slurry disposal (HCSD) system, rain water harvesting system, 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 have been installed at all designated locations in all stations of your Company.

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 planned to install Air Cooled Condenser at new projects at Patratu (Subsidiary Company) and North Karanpura, which will be trend breaking initiative in specific water consumption in power sector of country.

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 64.40 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 58,940 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 15 units of around 7 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 34 units of around 14 GW. According to the latest environmental norm, NOx emission from power plants 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 5 GW capacity in 16 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.

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 under-construction 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 Railway for required logistic supports.

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, PM2.5, PM10 analyzers and Continuous emission monitoring systems (CEMS) consisting of SO2 , NOx, CO, CO2 , Particulate matter analyzers for Stack emission and Effluent Quality Monitoring System (EQMS) consisting pH, Conductivity, BOD, COD, TSS, oil in water analyzers for Effluent monitoring in all our Stations/ Units of your Company.

Mercury analyzers for emission and air monitoring are installed in all 800 MW units of your Company.

All required environmental monitoring data is made available to CPCB & SPCB as per their requirement online.

Your Company is already installing additional air and water pollution control systems at various projects to comply with the applicable new environmental norms notified by MOEF & CC vide gazette notification dated 7.12.2015.

Your Company has brought out Bio-Diversity Policy on 31.7.2018 and developed strategy for its implementation in and around its business units for conservation and enrichment of bio-diversity.

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/stations since inception. A total of more than 36 million trees have been planted throughout the country under accelerated afforestation programme. Your Company planted 1 million saplings during financial year 2020-21 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 work at 5 stations during 2020-21 and planted more than 18000 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 your 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 5 million saplings during 2021-26 @ 1 million per year.

Your Company has also entered into long-term MoUs with state Authorities to assist National Commitment of Nationally Determined Contributions in COP 21, by planting 7 million saplings between 2019-26 @ 1 million per year.

18.2.6 ISO 14001 & OHSAS 18001 Certification:

Amongst all commercially operational stations of your Company, 19 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.

18.3 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 ISO, BIS and 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 launch of Integrated PRADIP (ProActive and Digital Initiatives to become Paperless) based QA & I business processes.

COVID-19 pandemic has not deterred your Company in carrying out inspections and testing at Vendors' works, despite several travel restrictions imposed during lock down period. Your Company has utilized digital technologies in carrying out Remote inspections at vendors premises this year by various Regional Inspection Offices (RIOs) thereby maintaining the continuity of project supplies with specified quality.

18.4 Clean Development Mechanism (CDM)

Your Company is pioneer in undertaking climate change issues proactively. Your 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 Frame Work 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 is registered in UNFCCC CDM Programme of Activities (PoA).

6,173 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 5,842 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 of your Company.

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 Voluntary Emission Reduction (VERs) has been issued for these projects registered with VCS Board. Further, 21,17,005 VERs are expected shortly, after completion of verification exercise of these projects.

Prior consideration forms have been sent to United Nations Framework Convention on Climate Change (UNFCCC) and Ministry of Environment and Forests (MOE&F) 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 & 22 MW floating solar at Kayamkulam, 160 MW at Jetsar, 20 MW floating solar at Auraiya, 20 MW at Rihand, 400 MW CPSU Scheme Tranche -I projects and 1,292 MW CPSU Tranche-II projects.

18.5 Ash Utilisation

During the year 2020-21, 624.56 lakh tonnes of Ash was generated and 77.83 % viz. 486.07 lakh tonnes of Ash had been utilized for various productive purposes by your Company.

Important areas of Ash utilization are - Cement & Asbestos industry, Ready Mix Concrete plants (RMC), Road Embankment, Brick making, Mine filling & Land development. 10 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 Road, setting up Ash based Light Weight Aggregate (LWA) plant. Transportation of Ash started through your Company owned BTAP rakes from Rihand station of your Company.

Pond Ash from all stations of your Company is being issued free of cost to all users. Fly Ash is also being issued free of cost to Fly Ash/Clay-Fly Ash Bricks, Blocks and Tiles manufacturers on priority basis over other users from all Coal based Thermal Power Stations of your Company. The fund collected from sale of Ash is being maintained in separate account and this fund is being utilized for development of infrastructure facilities, promotion and facilitation activities to enhance Ash utilization.

Your Company has an Ash Utilization Policy, which is a vision document dealing with the Ash utilization issue in an integral way from generation to 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 2020-21 from your Company's Stations is at Annexure - VIII of this Director Report.

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

CenPEEP is instrumental in implementation of Energy Efficiency Management System (EEMS) consisting of periodic assessments, field tests, performance gap analysis deviations and updation 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 are monitored. PI based real time programs and dashboards are in use for real time tracking of plant parameters. These programs also assist operating engineers in tracking the gaps in heat rate and auxiliary power consumption, trending the degradation of equipment performance and taking corrective measures.

Your Company initiated a unique voluntary program of GHG emission reduction by establishing CenPEEP and under this program, it is estimated that cumulative CO2 avoided is 53.78 million tonnes since 1996, by sustained efficiency improvements in your Company.

CenPEEP is also working towards reduction in specific water consumption and auxiliary power consumption in coal and gas stations of your Company. 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.

Water Withdrawal per year (in lakh KL)

Sl. No. Type of Water Quantity Consumed 2020-21
1 Total Water withdrawal 5908.87 Lakh KL*
2 Per unit withdrawal 3.03* Litre/kwh

* Your Company's coal and gas stations on closed cycle system.

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 RCM, PdM technologies etc.

Your Company has taken 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 of your Company.

CenPEEP coordinated implementation of Perform, Achieve & Trade (PAT) scheme under Prime Minister's National Mission on Enhanced Energy Efficiency (NMEEE) in your Company's coal & gas plants. As per notification, Company's coal and gas stations exceeded the Net Heat Rate improvement targets and earned net 1,70,653 EScerts (Energy saving certificates) in PAT-1 cycle. Your Company participated in EScerts trading & purchased required EScerts. Subsequent to the trading, your Company is having 1,61,759 EScerts that will be used for PAT - II cycle. After completion of PAT cycle - II & III in March 2019 & March 2020 respectively, M&V audits have been carried out in all stations of your Company. Notification of EScerts earned in PAT cycle - II & III is awaited.

Your Company has taken an initiative for complete replacement of existing lighting with LED light fittings at its all stations including townships. Till March 2021, 12.2 lakh LED fittings (94.80% of the population) have been replaced on Pan NTPC basis.

19. NTPC Energy Technology Research Alliance (NETRA)

Your Company understands the importance of 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 more than 1% of PAT 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 center, NETRA (NTPC Energy Technology Research Alliance), we are constantly making efforts to address the major concerns of the power sector - as well as exploring and tapping the potential opportunities available.

The focus areas of NETRA are - Efficiency Improvement & Cost Reduction; New & Renewable Energy; Climate Change & Environmental protection which includes water conservation, Ash utilization, carbon capture, 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.

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 executives your Company as members who 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, I IT - 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 is under construction.

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 our projects and regional headquarters was inspected and need based suggestions were given to the respective Heads of offices in this regard.

Quarterly meetings 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 2020 and Hindi Fortnight was organized from 1-15 September 2020 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. Your Company biannual Hindi magazine "Vidyut Swar" was published (in digitized form) to promote creative writing in Hindi. We have been awarded the 2nd prize in the best magazine category by TOLIC (NARAKAS).

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

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 CLIMS 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.

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 in order to ensure uniform working in all Regions. 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 FY 2020-21

Regarding Investigation of Complaints, during the year 2020-21, a total 84 complaints were investigated & out of these 64 complaints have been finalized while the remaining 20 are under various stages of investigation as on 31.3.2021. Appropriate disciplinary action has also been initiated against the involved employees along with system improvements, wherever found necessary. 187 Surprise Checks were conducted during the period and recovery of ' 46,32,242 was effected against various discrepancies detected during investigation. During the last year a total of 34 Preventive Vigilance Workshops were conducted at various projects/ places of your Company.

22.3 Implementation of Integrity Pact

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

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". Whistle Blower Policy has also been in place at your Company as per 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 the Company and to protect employees wishing to raise a concern about improper activity/serious irregularities within the 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 - 2020

In line with the directive from Central Vigilance Commission (CVC) vide Circular ref. no. 020/VGL/036 dated 8.9.2020 Vigilance Awareness Week 2020 has been observed in all the Offices and Power plants of your Company , including the Joint Ventures and Subsidiaries spread across the country from 27th October to 2nd November, 2020 on the given theme -"Vigilant India, Prosperous India".

To align all your Company Units for conducting the Vigilance Awareness Week-2020 (VAW 2020) 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

5.10.2020 and 22.10.2020. The meetings were chaired by CVO of your Company and attended by Regional Heads of HR, Coordinators as identified for VAW 2020 and Vigilance executives from all locations of your Company.

Following activities were undertaken to observe VAW 2020: -

I. Administering Integrity Pledge

Vigilance Awareness Week 2020 formally commenced on 27.10.2020 with administration of Integrity-Pledge. At the Corporate Office, the pledge was administered by CMD of your Company. At Regional Head Quarters concerned Regional Executive Director administered the pledge and at the power plants, the pledge was administered by respective Business Unit Head. This was done mostly on the digital platform of MS Teams and through Video Conferencing.

II. Publicity

Banners were displayed at strategic public locations inside plant premises and prominent locations in townships on "Vigilant India, Prosperous India". 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.

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 and further, in city based locations nearby colleges were involved in some of the thought provoking activities whereby their suggestions for Vigilant India were sought for.

IV. Trainings /Workshops

As a part of public outreach and interact with the young citizens of the country a talk on "Vigilance Awareness for nation building" was delivered by CVO of your Company for students of Dayal Singh Evening College, Delhi.

Three online Preventive vigilance courses were conducted by internal faculties from Vigilance department during this period whereby 504 employees joined the same from different location of your Company. In various power plant sites, lectures were organized where faculty from local district administration, CBI and retired senior executives from Vigilance function had delivered talks on role of an organization in curbing corruption, cybercrimes etc.

Gender sensitization workshops were held in different units. During this occasion Online suggestion was sought on gender equality by your Company and the same is under compilation.

V. Suggestions/Feedbacks/Grievance redressal of Stakeholders

Online Vendor meets were organized by Contracts and Materials department in the Shared Service Centre (SSC) groups in different regions. The participants were administered Integrity pledge. Vendors were apprised about the new initiatives taken by your Company, Government e-procurement policy, MSME, online payment status system, vendor code requirement etc.

22.6 System improvement measures undertaken during 2020-21

1) Modification of HRA Policy

On the basis of suggestion for system improvement from Vigilance Dept., your Company's House Rent Allowance was comprehensively reviewed and revised HRA Rules have been introduced on 17.9.2020.

2) Revised Policy and Procedure of Withholding and Banning of Business Dealings

Policy and Procedures for Withholding and Banning of Business Dealings have been revised on 29.8.2020 where pending investigation, provision to suspend business dealings with agency which is alleged to have committed fraud has been introduced, The revised policy and procedure of withholding and banning of business has been made applicable on your Company as well as its Joint Ventures & Subsidiaries Company.

3) Digitization of Complaint Handling system

Complaint handling system has been digitized reducing the process cycle time significantly as compared to physical file movement. Records are instantly available in system. Various reports can be automatically generated by the system thereby allowing more time for value addition activities by your Company.

4) Preventive Vigilance Modules in Mid-career trainings

On the advice of the Central Vigilance Commission, 2 days' module on preventive vigilance has been made mandatory in all planned intervention training programs for executives at different grades.

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 (GoI) has initiated web based monitoring system at www.pgportal.gov.in.

As per directions of GoI, public grievances are to be resolved within two months' time. If it is not possible to resolve the same within two months period, an interim reply is to be given. Your Company is making all efforts to resolve grievances in above time frame.

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. Your Company has put RTI manual on its website, i.e www.ntpc.co.in for access to all citizens of India and has designated a Central Public Information Officer (CPIO), an Appellate Authority and APIOs at all sites and offices of your Company.

During 2020-21, there were 1,712 applications (including 179 pending applications from FY 2019-20), out of which 1,666 were replied and 46 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 your Company power plants. Non-ERP web-based applications have been developed in balance areas such as Engineering Drawings approval, Quality Control Management, Hospital Management, Contract Labour Management, Transit Camp Management, RTI, Security Control, Safety, Ash utilization etc.

As a commitment towards environment, your Company has re-engineered 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 your 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 VPN 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's plants and offices across India, are connected to Corporate Office and main DataCentre (DC) through high-speed MPLS links at each site to facilitate seamless communication. The DC and DR (Disaster Recovery) site is connected with high bandwidth MPLS links for data replication. Both the Data centres at Noida & Hyderabad have been certified with ISO: 27001 certification during this period. 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 your company as part of virtual office and it is widely used.

To further leverage IT in your Company, an IT Strategy has been finalized. The IT 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 2020-21 are as follows:

• Digitization - All approved processes under E-Office was completed. Processes were redesigned for working in paperless mode and to enable 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 of your Company.

• ERP - A number of new modules were introduced in ERP as part of process improvements. ERP was implemented in two JV companies, i.e. APCPL and NTECL during this year.

• Mail and Messaging Services - The mail and messaging services were upgraded and migrated to Cloud as part of virtual office.

• Security - No major security breach was observed during the year 2020-21. A (24x7) Security Operation Centre (SOC) is in operation where round the clock monitoring of all external and internal data traffic is being done with latest tools through SOC and latest threat management tools are being applied to prevent any cyber-attack or data theft. The entire SOC hardware was refreshed during the year. Timely communication being sent to all users based on threat perception. Your Company's data centers at Noida and Hyderabad are ISO 27001 certified for security compliance.

• New Technology - Robotic Process Automation has been implemented in the field of commercial monthly billing.

• A virtual team consisting of 21 executives has been formed and extensively trained through IIT Kanpur on AI/ML. The teams are now working on specific projects as identified by the users from different sites.

• Centralised dashboard for RE asset monitoring and a water dashboard to monitor and optimize water consumption were implemented.

• IT Consultancy assignments towards power sector improvement - Implemented the following:

o SAP-PM module in SCCL o PI System in JV companies of your Company o Advising NEEPCO in their ERP implementation o DREAMS 2.0 in PGCIL o TPIEA for NR discoms

o All together consultancy works for ' 6.5 Crore were carried out.

• Work From Home (WFH) enablement due to COVID-19. During the lockdown, there was no disruption of any work as enablement through VPN access to critical applications to all the required employees and a VC facility through MS teams were provided.

26. GROUP COMPANIES: SUBSIDIARIES AND JOINT VENTURES

Your Company has 12 number of subsidiary companies and 17 nos. Joint Venture companies as on 31st March 2021 for undertaking specific business activities.

Your Company has 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 2020-21 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 2021-22 is yet to be made by the Comptroller & Auditor General of India.

27.2 Management comments on Statutory Auditors' Report

The Statutory Auditors of your Company have given an un-qualified report on the accounts of the Company for the financial year 2020-21. However, they have drawn attention under ‘Emphasis of Matter' to the following notes:

(i) Note No. 34(a) regarding billing and accounting of sales on provisional basis.

(ii) Note No. 46(a) in respect of one of the projects of Company consisting of three units of 800 MW each, where the order of National Green Tribunal (NGT) on the matter of environmental clearance for the project has been stayed by the Hon'ble Supreme Court of India, the matter is sub-judice and the units have since been declared commercial.

(iii) Note no. 46(b) in respect of one of the projects under construction consisting of two units of 800 MW each, where the National Green Tribunal (NGT) has passed an order to keep the environment clearance granted to the project in abeyance, and directed to carry out additional studies relating to environmental impact assessment, and the Company has filed an appeal before Hon'ble Supreme Court of India.

(iv) Note No. 57(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 13.8.2021, has given ‘NIL' Comments on the Standalone Financial Statements of your Company for the year ended 31st March 2021 after conducting supplementary audit under Section 143 (6)(a) of the Companies Act, 2013.

The Comptroller & Auditor General of India, through letter dated 13.8.2021, has also given ‘NIL' Comments on the Consolidated Financial Statements of your Company for the year ended 31 March 2021 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 31 March 2021 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 projects/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 2020-21 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, 2020 was upto December 31, 2020 and the consolidated Cost Audit Report for your Company was filed with the Central Government on November 18, 2020.

The Cost Audit Report for the financial year ended March 31, 2021 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 2020-21, your Company has entered into derivative contracts amounting to EUR 7.20 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-avis MOU entered into with the Government of India, MOP.

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 on 23rd March 2021.

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-X 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 Chandrasekaran Associates, Company Secretaries, to conduct Secretarial Audit for the financial year 2020-21. The Secretarial Audit Report for the financial year ended March 31, 2021 is annexed here with marked as Annexure XI to this Directors' Report.

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

Observations Management's Comments
Compliance of Regulation 17 of Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations, 2015 with regard to the requirements of having at least one half of the Board of Directors comprising of Independent Director including one Independent Woman Director on the Board of the Company. During the financial year 2020-21, there is no Woman Director & Independent Woman Director as required under SEBI LODR. Further Independent Director was also 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 and Woman 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 (A) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the required policies/criteria 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- IX) 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 2020-21.

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 2020-21.

The loan granted by your Company to its Subsidiaries Company namely NTPC Renewables Energy Limited and NTPC Electric Supply Company Limited of ' 15 crore and ' 1.50 crore for meeting its immediate fund requirement covered under Section 185 and 186 of the Companies Act, 2013.

Details of Loans granted to subsidiaries and Joint venture companies are disclosed at Note 53 to the stand-alone financial statements for the year 2020-21.

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 2020-21, 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 202021 was ' 3,538.43 crore which was 50.73% of the total procurement of ' 6,975.38 crore against the minimum threshold of 25% as stipulated by the Public Procurement Policy for Micro and Small Enterprises (MSEs) Order.

The total procurement percentage made from MSEs owned by SC/ST and Women entrepreneurs during the year 2020-21 was 0.22% and 0.39% respectively.

*It excludes 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).

In FY 2020-21, your Company has recorded highest ever procurement from MSEs in terms of absolute value and procurement percentage in a financial year. Further, in FY 2020-21, your Company has recorded highest procurement percentage from MSEs among all Maharatna CPSUs.

Your Company has organised 20 Vendor Development Programs (VDPs), including 10 Special VDPs for MSEs owned by SC/ST and Women Entrepreneurs across the Company in FY 2020-21.

Your Company has on-boarded all the three Trade Receivables Discounting System (TReDS) platforms approved by Reserve Bank of India. Invoices worth ' 4.43 crore are discounted through the TReDS platform.

Annual procurement plan for 2020-21 from MSEs is uploaded on your Company website i.e. 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:

Extract of Annual Return (MGT-9) pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company (Management & Administration) Rules, 2014 is annexed herewith as Annexure - VI to this Director Report. The Extract of Annual Return for the Financial Year ended 31st March 2021 is also available on your Company's website i.e www.ntpc.co.in.

27.22 Credit Rating

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

27.24 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 Annexure-II.

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

27.26 The 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.

27.27 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 are as under:

Particulars Annexure
Management Discussion & Analysis I
Report on Corporate Governance II
Information on conservation of energy, technology absorption and foreign exchange earnings and outgo III
Statistical information on persons belonging to Scheduled Caste / Scheduled Tribe categories IV
Information on Differently Abled persons V
Extract of Annual Return VI
Annual Report on CSR Activities VII
Project Wise Ash produced and utilized VIII
Disclosure of Related Party Transactions in Form AOC-2 IX
Business Responsibility Report for the year 2020-21 X
Secretarial Audit Report in Form MR-3 XI

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. The 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 Dillip Kumar Patel had been appointed as Director (HR) w.e.f. 1.4.2020.

Shri Ramesh Babu V. had been appointed as Director (Operations) w.e.f. 1.5.2020.

Shri Chandan Kumar Mondol had been appointed as Director (Commercial) w.e.f. 1.8.2020.

Shri Ujjwal Kanti Bhattacharya had been appointed as Director (Projects) w.e.f. 28.8.2020.

Shri Prakash Tiwari ceased to be Director (Operations) of the Company w.e.f. 30.4.2020 on attaining the age of his superannuation.

Shri Anand Kumar Gupta ceased to be Director (Commercial) of the Company w.e.f. 31.7.2020 on attaining the age of his superannuation.

Shri P K Deb, Shri M. P. Singh, Shri Vinod Kumar, Shri Subhash Joshi and Shri Shashi Shekhar ceased to be Independent Director w.e.f. 7.9.2020 on completion of three years' tenure.

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

The Board wishes to place on record its deep appreciation for the valuable services rendered by Shri Prakash Tiwari, Shri Anand Kumar Gupta, Shri P K Deb, Shri M P Singh, Shri Vinod Kumar, Shri Subhash Joshi, Shri Shashi Shekhar, Dr. K.P.K. Pillay and Dr. Bhim Singh during their association with the Company.

The Board welcomes Shri Dillip Kumar Patel, Shri Ramesh Babu V., Shri Chandan Kumar Mondol and Shri Ujjwal Kanti Bhattacharya 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, 2021, 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, 2021 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, 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 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 of your Company.

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 and are deeply grateful to and have immense respect for every person who risked his life and safety to fight this pandemic.