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Annex-IX to DirectorsReportUNGC Communication on Progress (2009-10)NTPC expresses its continued support for the Global Compact and its commitment to take action in this regard, as wascommunicated by the Chairman & Managing Director, NTPC in his letter dated May 29, 2001 addressed to SecretaryGeneral, United Nations.NTPC has posted the brief of Global Compact and its commitment to the principlesof GC on its website at www.ntpc.co.in . The principles of GC were communicated to all employees through in housemagazines, internal trainingprogrammes and posters. NTPC, a core member of Global Compact Network (GCN), India, (formerly known as GlobalCompact Society) actively participated in the Annual Convention of the Global Compact Network at Mumbai and AsiaPacifi c Regional Conclave at New Delhi. NTPC representative contributed as faculty for various training programmesorganized by GCN for Global Compact Member Organizations in Chennai and Delhi.NTPC is in the process of preparing its Corporate Sustainability Reportcovering Economic, Environmental and Socialaspects with the triple bottom lineapproach based on widely accepted and updatedGlobal Reporting Initiative (GRI)Guidelines.Human Rights: Principle 1-2

Most of NTPCs operating power stations are located in remote rural areas which are socio-economically backward anddefi cient in the basic civic amenities. NTPC, as responsible corporate citizen,has been addressing the issue of communitydevelopment in the neighbourhood areas of its stations, which had been impacteddue to establishment of the project.While, this has been initially administered as part of Resettlement and Rehabilitation (R&R) effort, NTPC recognized itssocial responsibility to continue community and peripheral development works where the same has been closed underR&R policy. Towards this, NTPC adopted Corporate Social ResponsibilityCommunity Development (CSR-CD) PolicyinJuly04. Keeping in view the new Organizational Strategies towards Community Devel

opment in line with the emergingtrends and multifarious community needs, the CSR-CD policy of NTPC is being re-visitedUnder this policy, during 2009-10, NTPC allocated a fund of Rs.86 million to 20operating stations for carrying outcomprehensive Community Development work in the area of health, education, drinking water and peripheraldevelopment. In addition, Quality Circles (QCs) are functioning in neighborhoodvillages of its stations. The NTPCemployees participate in various CD activities through Employee Voluntary Organization for Initiative in CommunityEmpowerment (EVOICE). 50 Solar Lanterns were provided for GirlsHostel attached to one of the Kasturba Gandhi Balika

Vidyalay in the vicinity of NTPC Korba Station through TERI under their LaBL campaign.NTPC representatives associated with Confederation of Indian Industry (CII) as Certifi ed Assessors for the assessment ofCII-ITC Sustainability Award constituted by the CII and actively participated and contributed for establishing CSR Hub atTISS, Mumbai.NTPC Foundation, registered in December2004, is engaged in serving and empoweringthe physically challenged andeconomically weaker sections of the society. The Information and Communication T

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echnology (ICT) Centre, set up jointlyby NTPC Foundation and University of Delhi, and similar ICT facilities to the existing blind schools in Lucknow, Ajmer,Thiruvanathapuram and Mysore are helping a large number of physically challengedstudents to learn IT Skills and movealong with the mainstream society. More than 800 physically challenged studentshave got benefi ted in these centres tillnow.NTPC Foundation is providing grants for setting up of Distributed Generation Projects for preparation of feasibility report,DPR, Insurance and for meeting funding gap.Major activities taken up by NTPC in this area are highlighted under the head Inclusive Growthand NTPC Foundationunder DirectorsReport for the Annual Report 2009-10.Labour Standard: Principle 3-6For addressing the issue of labour standard in comprehensive manner, NTPC has decided to adopt international standardslike SA-8000 and OHSAS-18001.98 34th Annual Report 2009-2010During the year 2009-10, accreditation SA-8000 got revalidated for Auraiya, Badarpur, Jhanor-Gandhar and Dadri stationsof NTPC. Revalidation is in process at Faridabad, Kayamkulam, Unchahar and Vindhyachal. The process for accreditationhas been initiated at Kawas station.

Environment: Principle 7-9As a result of pursuing sound environment management systems and practices, NTPCsall 20 operating stations haveobtained accreditation for ISO 14001 Certifi cation. Surveillance audit was donethrough agencies at various stations toensure adherence to the ISO requirements. During the year 2009-10, 6 stations viz. Korba, Singrauli, Unchahar, Ramagundam,Kayamkulam and NCPP-Dadri Stations have been recertifi ed under ISO 14001Steps have been taken up by dedicated groups for training of NTPC Employees forstrengthening Environment Managementat Stations, Regional Headquarters and Corporate Centre. Following training programmes were organized in the area ofenvironment during the year:

Strengthening Environment Managementfor Executives working in Environment Management Group/ Function, Insightinto the Environmental Issuesexclusively for Senior Offi cials at the level of DGM & Above, and Environmental Concernsfor Non-EMG Executives.Major activities taken up by NTPC in the area of Environment are highlighted under the head Environment Managementunder DirectorsReport for the Annual Report 2009-10.Anti-corruption: Principle10The Company has a Vigilance Department headed by Chief Vigilance Offi cer who isa nominee of the Central VigilanceCommission. The Vigilance Department Consisting of Four Units, namely CorporateVigilance Cell, Departmental Proceeding

Cell (DPC), MIS Cell, Technical Cell (TC). These units deal with various facetsof Vigilance Mechanism Exclusive andindependent functioning of these Units ensure transparency, objectivity and quality in vigilance functioning. The VigilanceDepartment submits its reports to Competent Authority including the Board of Directors. The CVO also reports to theCentral Vigilance Commission as per their norms.Major activities taken up by NTPC in the area regarding Implementation of Integrity Pact, Implementation of Fraud PreventionPolicy, Preventive Vigilance Workshops and Vigilance Awareness Week etc. are hig

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hlighted under the head Vigilanceunder DirectorsReport for the Annual Report 2009-10.Place : New DelhiDated : August 04, 2010For and on behalf of the Board of Directors(R.S. Sharma)Chairman & Managing Director