performance highlights 2009-10

8/7/2019 Performance Highlights 2009-10

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With 90.81% Plant Load Factor (PLF) during 2009-10 (National PLF 77.48%),coal stations achieved PLF of more than 90% for third consecutive year.

Six coal stations achieved PLF of more than 95%.

Dadri (Coal) Stage I (4X210 MW) achieved highest ever PLF of 100.59 %.

Sixteen units recorded more than 100% PLF.

Seven NTPC coal stations figure among the top 10 stations in the country interms of PLF.

Highest ever PLF of gas stations at 78.38% (previous year PLF 67.01%).

Augmenting Fuel Security

Model Coal Supply Agreement signed with Coal India Ltd (CIL) for supply of coalto NTPC stations for 20 years.

Gas supplies increase to 13.88 MMSCMD (up 29% over previous year).

Long term contract for supply of RLNG of 2.0 MMSCMD on firm basis and 0.5MMSCMD on fallback basis signed with GAIL for 10 years.

Under NELP VIII, NTPC has been allotted one block at Cambay basin as a soleoperator and three blocks as a member of consortiums.

Robust Financials

100% realization of the billing for the seventh consecutive year.

Provisional and un-audited Net Sales of Rs. 46,504.47 crore during 2009-10 asagainst Rs. 41,791.30 crore registering an increase of 11.28%. The provisionaland un-audited Gross Revenue is Rs.49,478.86 crore during 2009-10 as againstRs.45,272.76 crore for the year 2008-09, an increase of 9.29%.

Provisional and un-audited Profit after tax for the year 2009-10 is Rs.8,656.53crore as compared to Rs.8,201.30 crore during the year 2008-09, an increase of5.55%.

Highest interim dividend @ 30% amounting to Rs. 2,473.64 crore paid during theyear.

Capital Expenditure of Rs. 10,137.18 crore during 2009-10; NTPC Group’scapital expenditure was Rs. 14,002.11 crore.

Approved outlay for 2010-11 for NTPC’s capital schemes is Rs.22,350 crore; forNTPC Group the outlay is around Rs.29,104.06 crore.



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Contributed Rs.3,260.21 crore to exchequer on account of Corporate tax,Dividend and tax thereon and wealth tax.

Shareholder Wealth

Third largest market capitalization of over Rs.1,70,000 crore as on 31-03-2010.

Growing Stature

Recommended for “Maharatna” status.

EXCELLENT rating under Government of India MoU for the year 2008-09.

Bulk Tendering

Tendering undertaken for 11 units of 660 MW (including 2 units for DVC).

Strengthening Project Management

Set up a state of the art IT enabled Project Monitoring Centre as part of theGrowth Management Centre (GMC), first of its kind in the sector.

Yet Another Turnaround

Impressive revival of Ratnagiri project (all six gas turbines operational) - achievedfull capacity of 1,940 MW.

Focus on Renewables

To implement solar energy projects of 301 MW capacity by 2014.

NTPC Vidyut Vyapar Nigam (NVVN) has been designated as the nodal agencyfor phase-I of Jawahar Lal Nehru National Solar Mission.

Commencing Distribution Business

Commenced distribution of power through KINESCO, a joint venture companybetween KINFRA and NESCL (a fully owned subsidiary of NTPC).

Rural Electrification

Under Rajiv Gandhi Grameen Vidyutikaran Yojana, NTPC Electric SupplyCompany Ltd (NESCL) completed electrification of 8017 villages and provided

8.65 Lakhs BPL connections, thereby exceeding GoI target of electrification of7500 villages and 8.5 Lakhs BPL connections.

Leveraging Expertise

Consultancy wing working on a capacity of more than 28,000 MW apart from7690 MW of NTPC JV projects.



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Lowest quoted bidder for O&M services for a gas based power station inBangladesh.

Commonwealth Games

Official Power Partner of Delhi 2010 Commonwealth Games.

Further Public Offer

Government shareholding in NTPC reduced from 89.5% to 84.5% throughdivestment of Government stake by 5% under Further Public Offer (FPO).

Accolades

Top six out of eight National Awards for Meritorious Performance of ThermalPower Stations for 2008-09 instituted by the Government of India won by NTPCcoal stations.

No. 1 Independent Power Producer in Asia and 2nd globally in the Platts Top 250Global Energy Company Rankings 2009.

National Award for excellence in Corporate Governance 2009 by Institute ofCompany Secretaries of India (ICSI).

Gold Trophy for SCOPE Meritorious Award for best practices in Human ResourceManagement.

Simhadri 1000 MW Gold ShieldKorba 2100 MW Silver ShieldRamagundam 2600 MW Silver ShieldDadri (coal) 840 MW Bronze ShieldRihand 2000 MW Bronze ShieldVindhyachal 3260 MW Bronze Shield



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CAPACITY ADDITION

Current installed capacity is 31,704 MW, including 2,864 MW under JVs

2009-10

Added 1560 MW :

Project/ Unit Capacity (MW)

NTPC owned

Kahalgaon Stage-II 500

Dadri Stage-II, Unit # 5 490

Under JVs

RGPPL Block- I 640

Less on account of overall de-rating of RGPPL (-)180

Kanti Stage-I 110*

Net addition 1560

*Capacity stabilized during the year

1490 MW declared commercial

Project/ Unit Capacity (MW) CommercialOperation Date

Kahalgaon Unit #7 500 20.03.2010

Dadri Unit # 5 490 31.01.2010

Bhilai Unit # 2 250 21.10.2009

Bhilai Unit # 1 250 22.04.2009

Total 1490

In addition, Block # I of Ratnagiri GPPL (640 MW) was also revived and declaredcommercial.

New national benchmark with Dadri Unit-5 (490 MW) starting commercial operationwithin 39 months from zero date (reckoned from MoEF clearance, as per investmentapproval).

2010-11

Plan to add 4,150 MW

Project/ Unit Capacity (MW)

Sipat Stage-I, Unit-1 660

Jhajjar, Unit-1 & 2 1000

Korba Stage –III, Unit-7 500

NCTPP Stage – II, Unit-6 490

Simhadri, Stage-II, Unit-3 & 4 1000

Farakka, Stage-III, Unit-6 500

Total 4150

Total Capacity Under Construction: 17,830 MW



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* Work under suspension based on Government order since February 2009.

Future Capacity Under Different Stages

Projects for which bids invited 7092 MWProjects for which FR approved 4345 MWProjects for which FR prepared/under preparation ~15,000 MW

Bulk tenders invited for the following NTPC units:

Projects Capacity(MW)

Solapur (2x660) 1320Meja (2x660) 1320Mauda-II (2x660) 1320Nabinagar (3x660) 1980Total 5940

Bulk tenders to be invited for following units in the second phase:

Projects Capacity (MW)Lara (2X800) 1600Darlipalli (2X800) 1600Kudgi (3X800) 2400

Gajmara (2X800) 1600Total 7200

MoU with Government of Chhattisgarh for setting up 4000 MW coal based powerproject at Lara in Raigarh.MoU with Government of Madhya Pradesh and MP Tradeco for setting up a 2640MW thermal power project at district Narsinghpur.

Project (Fuel) , State Capacity

Sipat-I (Coal), Chhattisgarh 1980

Barh –I (Coal), Bihar 1980

Korba-III (Coal), Chhattisgarh 500

Dadri-II (Coal)-Unit # 2, U.P. 490

Farakka-III (Coal), West Bengal 500

Simhadri-II (Coal), Andhra Pradesh 1000

Indira Gandhi STPP - JV With HPGCL & IPGCL (Coal), Haryana 1500Vallur (Phase -I & Phase –II) (Coal) - JV With TNEB, Tamil Nadu 1500Nabinagar-JV With Railways (Coal), Bihar 1000

Bongaigaon (Coal), Assam 750

Mauda-I (Coal), Maharashtra 1000

Barh-II (Coal), Bihar 1320

Rihand-III (Coal), UP 1000

Vindhyachal-IV (Coal), MP 1000

Muzaffarpur-II (Coal), JV With BSEB, Bihar 390

Koldam (Hydro), H.P 800

Loharinag Pala ( Hydro ), Uttaranchal* 600

Tapovan Vishnugad ( Hydro ), Uttaranchal 520

Total 17,830 MW



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Growth Management CentreSet up a state of the art Growth Management Centre (GMC), first of its kind in thesector, comprising of Operation Monitoring Centre (OMC), Project MonitoringCentre (PMC) and Investors Services Centre (ISC). The project monitoringsystem provides milestone based project monitoring, real time network updation,real time video capture apart from latest video conferencing facility.

OPERATIONAL PERFORMANCE

Generation increases by 5.75% to 218.84 BUs from 206.93 BUs in 2008-09.Dadri (Coal) Stage I (4X210 MW) achieved highest ever PLF of 100.59 %.Average PLF of NTPC coal stations was 90.81%. Korba Power Station achievedthe highest PLF of 97.6%.Out of fifteen coal stations, six stations have achieved PLF of more than 95% andtwelve stations achieved PLF of more than 90%. Availability of NTPC coalstations was 91.76%.

NTPC coal stations with PLF > 90%

Sl.No. Coal Stations Capacity

AvailabilityFactor (%) PLF (%)

Average ageof Plant( ason31.03.2010)

1. Korba STPS 2100 95.46 97.61 24.25

2. Feroze Gandhi Unchahar TPS 1050 94.07 97.33 13.51

3. Simhadri TPS 1000 94.38 97.27 7.86

4. Dadri(Coal) TPS 1330 94.33 96.64 13.78

5. Vindhyachal STPS 3260 93.97 96.60 15.28

6. Rihand STPS 2000 92.26 95.57 13.11

7. Ramagundam STPS 2600 93.65 94.81 20.92

8. Sipat STPS 1000 92.97 93.33 2.24

9. Singrauli STPS 2000 90.39 92.83 25.82

10. Tanda TPS 440 90.78 92.24 18.69

11. Talcher TPS 460 90.67 90.87 36.88

12. Talcher Kaniha STPS 3000 94.78 90.41 8.98

Appreciable performance by NTPC coal based stations with 24,885 MW capacitycomprising 81 units with average fleet age of 18.8 years.Sixteen coal units achieved more than 100% PLF, eighteen units achieved PLFbetween 95-100% and twenty one units achieved PLF between 90-95%.Highest ever generation from gas stations – 27.58 BUs (growth of 17%). Highest

ever PLF of Gas stations 78.38%.Faridabad Gas Station has achieved the highest PLF of 84.96% with operatingavailability of 98.56%.



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Gas Stations Capacity (MW) PLF (%)Average age of plant(as on 31.03.2010)

Faridabad 430 84.96 10.30

Anta GPP 413 81.72 20.83

Gandhar 648 77.93 15.74

Auraiya 652 77.93 20.50

Dadri Gas 817 77.13 17.26

Kayamkulam 350 76.75 10.98

Kawas 645 75.28 17.57

All time highest single day generation of 684.55 MUs from all NTPC stations on31st March, 2010.Exceeded the MoU target of 217 BUs for generation.Sustaining Market Leadership: Contributed 28.6% of total electricity generatedin the country.

Total electricity available in the country 771.17 BUs

Electricity import from Bhutan 5.34 BUsTotal Electricity Generation in the Country 765.83 BUsTotal Generation from NTPC Units 218.84 BUsNTPC share in total electricity generationin the country

28.6%

AUGMENTATION OF FUEL SUPPLY

Receipt

2009-10 2008-09 %age increase YoY

Coal

Coal – Domestic 129.9 million tons 124.3 million tons 4.51%

Coal - Imported 6.3 million tons 5.4 million tons 16.67%

Total 136.2 million tons 129.7 million tons 5.01%

Gas

Gas – APM+PMT 9.08 MMSCMD 8.68 MMSCMD 4.6%

Gas – Long Term/ Fallback/ Spot RLNG

4.45 MMSCMD 2.07 MMSCMD 116.02%

Gas - KG D6 0.35 MMSCMD -

Total 13.88 MMSCMD 10.75 MMSCMD 29.11%

CoalModel Coal Supply Agreement signed with Coal India Ltd (CIL) for supply of coalto NTPC stations for 20 years. Further agreements with subsidiaries of CILsigned for all stations except Farakka, Kahalgaon & Ramagundam-III. Theagreement provides for supply/off-take at 90% of ACQ (Annual ContractedQuantity) for determining incentive/penalties, which are like mirror images oneither side of the 90% trigger level. ACQ can be reviewed every 5 years.



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Additional quantity of 7.35 million tons received from CIL and SCCL for Farakka,Kahalgaon and other projects. This includes a quantity of 0.55 million tonsthrough E-Auction.Letter of Assurance (LOA) for 15.138 MMT for 11th plan coal based projects andapproval for LOA with total capacity of 5960 MW (projects covered under bulktendering for 12th plan) has been obtained.

GasAdditional gas allocation of 4.46 MMSCMD from KG-Basin by EGoM; out of thiscontract already in place for 1.81 MMSCMD.Long term contract for supply of RLNG of 2.0 MMSCMD on firm basis and 0.5MMSCMD on fallback basis has been signed with GAIL for 10 years.Under NELP VIII, NTPC has been allotted one block at Cambay basin as a soleoperator and three blocks as a member of consortiums.

Coal Mine Development

Working on captive coal mines with target of 47 MTPA by 2017 from the 6 blocksallotted.

More than 6735 acres of Land in Pakri Barwadih and about 1594 acres of land inChatti Bariatu coal block have been acquired and land acquisition for Dulangaand Talaipalli are in progress.Rehabilitation Action Plan (RAP) has been approved by NTPC Board for PakriBarwadih, Chatti Bariatu and Kerandari.Mining Plan approved for Dulanga (7 MTPA) and Talaipalli (18 MTPA).JV agreement has been signed with CIL for development, operation andmaintenance of Coal Blocks and Integrated Power Projects.

Coal Block Acquisition Abroad

Due diligence for acquisition of stakes in two coal mines in Indonesia is under

progress and consultant appointed for carrying out due diligence for one coalblock in Mozambique.International Coal Ventures Ltd (ICVL) has been incorporated on 20.05.2009 as aJV company of NTPC, RINL, SAIL, NMDC and CIL for sourcing coking andthermal coal from overseas countries like Australia, Mozambique, Canada,Indonesia and USA. ICVL is pursuing 3 thermal coal opportunities in Indonesia,Australia and South Africa.

FINANCIAL PERFORMANCE

Provisional and un-audited Net Sales of Rs. 46,504.47 crore during 2009-10 asagainst Rs. 41,791.30 crore registering an increase of 11.28%. The provisional

and un-audited Gross Revenue is Rs.49,478.86 crore during 2009-10 as againstRs.45,272.76 crore for the year 2008-09, an increase of 9.29%.



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Provisional and un-audited Profit after tax for the year 2009-10 is Rs.8656.53crore as compared to Rs.8,201.30 crore during the year 2008-09, an increase of5.55%.

Approved outlay for 2010-11 for NTPC’s capital schemes is Rs.22,350 crore; for

NTPC Group, the outlay is Rs.29,104.06 crore. Incurred a capital expenditure of Rs.10,137.18 crore during 2009-10. NTPCGroup’s capital expenditure was Rs.14,002.11 crore.Third largest Market Capitalisation of Rs.1,70,890 crore as on 31-03-2010.NTPC scrip continues to add to shareholders’ wealth and closed at Rs. 207.25 atthe end of the year at National Stock Exchange, 15.23% higher than last year.Declared an all time high interim dividend of Rs. 3/- per equity share having facevalue of Rs. 10/- being 30% of paid-up capital translating into a dividend payoutof Rs.2,473.64 crore. Contributed Rs.3,260.21 crore to exchequer on account of corporate taxamounting to Rs.45.94 crore (net of receipt of refund of Rs.2,896.56 crorepertaining to previous years), Dividend amount of Rs.2,680.58 crore, Dividend taxamounting to Rs.530.67 crore and wealth tax of Rs.3.02 crore.New loans aggregating to Rs.16,819 crore tied up with domestic Banks and otherFinancial institutions during 2009-10; cumulative loan tied up Rs.49,308.35 croreso far including Rs.8,500 crore from State Bank of India and Rs.2,750 crore fromCanara Bank during the current year.During 2009-10, NTPC issued four series of Bonds on Private Placementbasis to eligible Institutions aggregating Rs.1,500 crore to finance capital



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expenditure on power generation projects, Coal Mining business, Renovationand Modernization activity, LNG business and refinancing of debt:

Sl Series Coupon Rate

% p.a

Amount

(Rs.crore)

Door-to-Door Maturity

1 XXX 7.89% 700 10 years

2 XXXI 8.78% 500 10 years3 XXXII 8.85% 105 20 years

4 XXXIII 8.73% 195 10 years

Total 1,500

Army Group Insurance Fund (AGIF) extends Funding Line to the tune ofRs.1,200 crore to be drawn over 3 years against bonds.Bond Series XXXIII received an overwhelming response and was over-subscribed by more than 6.28 times, receiving commitments of over Rs.1,225crore.

Outstanding amount of Bonds as on 31.03.2010 is Rs.9,350 crore as against totalamount of Rs.14,035.35 crore raised so far.

Public Deposits

During the year 2009-10, the interest rates of Public Deposit Schemes wererevised twice on 23.05.2009 and 18.09.2009. The present interest rates are6.25%, 6.50% and 6.75% for 1 year, 2 years and 3 years schemes respectively.As on 31.03.2010, there are 277 deposit holders with outstanding deposit amountaggregating to Rs.13.39 crore.

COMMERCIAL PERFORMANCE

100% realization of billing for the seventh consecutive year.All the customers have opened and are maintaining Letters of Credit (LC) of therequired amount and are making full payment of current bills. As on date, NTPChas monthly LCs of Rs. 4,061.32 crore.Payment Security Mechanism by way of Tripartite Agreements is in place upto2016. To ensure payment security beyond 2016, agreements have been signedwith all beneficiaries for escrow arrangement.1st Unit (490 MW) of Dadri Stage-II has commenced commercial operation and iseligible for additional 0.5% Return on Equity as per CERC Tariff Regulations.

PPAs signed with 13 beneficiaries for the following new projects:

Project Capacity (MW)

Barh – II 1320Korba-III 500

Vallur 1500



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Lata Tapovan 171Khasiabara HEP 261

Kanti Stage-II 390New Nabinagar 1980Bhartiya Rail Bijlee Company Ltd. 1000

Solapur 1320

Tariff petitions for the five-year period beginning Financial Year 2009-10 havebeen filed before CERC for all stations in accordance with the CERC TariffRegulations, 2009.Petitions have also been filed in CERC for revision of tariff for the period upto31.3.2009 due to additional capital expenditure incurred at the Stations during2004-09.Under Customer Relationship Management programme, 68 customer supportworkshops conducted and training facility extended to 149 officials of stateutilities free of cost.

CONTRACTS MANAGEMENT

NIT for Bulk ordering of 11 units of 660 MW has been issued on 16.10.2009. Corporate Contracts amounting to total value of more than Rs. 5,250 crore wereawarded which included 135 contracts for NTPC and 25 contracts on for JVs.

o LOA for main plant package for Vallur TPP (1x500 MW).o LOI for main plant package for Muzaffarpur TPP.

Order placed for import of 12.5 MMT of coal to meet the short term deficit. Independent External Monitors appointed to oversee all contract packagesvalued at Rs. 100 crore and above from NIT onwards w.e.f 01.08.2009.

STRATEGIC INITIATIVES

Efficiency Improvement InitiativesReal time efficiency gap analysis using advanced analytical toolsMaximization of condition based maintenance through systematic ‘PredictiveMaintenance Program’.Reliability improvement strategies by Failure mode analysis through ReliabilityCentered Maintenance (RCM) and risk mitigation by Financial Risk Optimization(FRO).Thrust on combustion optimization, improvement in performance of condenserand cooling tower.Centre for Power Efficiency & Environmental Protection (CenPEEP) isengaged in mitigation of GHG emissions.In association with JICA and consortium of Japanese utilities, a joint project has

been taken up by CenPEEP efficiency improvement such as pump efficiencyassessment using Yates meter, leak buster test for air-in-leak quantification,simplified efficiency evaluations, evaluation of SUS scale, boiler simulation,residual life of boiler tubes, headers, residual life of generator & transformers,etc.

Operations Initiatives



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Expanding the Real time information coverage of operating units to includemonitoring of:

o Equipment healtho Plant chemistryo Coal rake movement

SMART (Strategic Monitoring and Assistance Remote Terminus): Advancewarning system which picks up signs based on advanced analysis andspecialized computing of operational trends of power plant equipment.Thisintelligent system continuously builds upon its accuracy level as it collects moredata.O&M Business Process Automation(BPA): Automation through Dashboards andKnowledge Management repository which is envisaged to contain all knowledgerelevant to O&M facets.

Fuel SecurityModel Coal Supply Agreement signed with Coal India Ltd (CIL) for supply of coalto NTPC stations for 20 years.Developing captive coal mines in India and pursuing acquisitions abroad.Tying up long term gas supply with GAIL.

Pursuing E&P for gas.

Fast Track Capacity AdditionChanged the development and execution strategies for the future projects with aview to reducing the project-time-cycle by 5-6 months through adoption of‘Limited Notice to Proceed’ (LNTP) concept.Implementation of IT based project monitoring system which provides milestonebased project monitoring, real time network updation, real time video captureapart from latest video conferencing facility.

Getting into NuclearJV agreement is expected to be signed shortly with Nuclear Power Corporation of

India Limited (NPCIL). Approval has been obtained from Department of AtomicEnergy (DAE).

Focus on RenewablesBy 2017, NTPC plans to have at least 1000 MW through renewable energyresources such as wind, hydro, solar, biomass and geo-thermal.

Long Term Corporate Plan upto 2032Finalizing the Long Term Corporate Plan of NTPC to set the goals and directionsfor a period of 2032 with a view to positioning NTPC as the world’s largest andbest power producer.

Technology Roadmap upto 2032Chalking out a long term technology roadmap upto 2032 which involvesdevelopment, adoption and promotion of safe, efficient and clean technologies forentire value chain of power generation business.Some of the target technologies are:

o Setting up of Coal Fired Units with Ultra Supercritical Parameters targetingefficiency comparable to the best available technology in the world.



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o Establishment of Indian Coal Based Gasifier & Gas cleaning System forIGCC.

o Adoption of next higher EHV of 1200 KV.o Development and adoption of energy storage systems such as

Compressed Air Energy Storage (CAES), Pump Storage which is critical forutilization of renewable energy sources.

Plans for not ordering any sub-critical technology power plants after 2010-11.

Developing EPC Capability & Equipment ManufacturingNTPC-BHEL Power Projects Pvt. Limited (NBPPPL) - A 50:50 Joint VentureCompany between NTPC and BHEL registered on 28.04.2009. Land acquired(750 acres) at YSR Puram in Chittoor district (Andhra Pradesh). JV company hasbagged contracts for execution of BOP of OTPC gas based power plant and1x100 MW Namrup Thermal Power Station.BF - NTPC Energy Systems Ltd. : A Joint Venture Company (NTPC, 49% equityand BFL, 51% equity) between NTPC and Bharat Forge Limited incorporated on19th June 2008. Foundation stone for manufacturing facility laid on 20th March,2010 at Solapur.44.6% stake acquired in TELK. Highest production of HT transformers and

associated equipment etc. adding to 5085 MVA during the year.

Other DiversificationNational High Power Test Laboratory Limited (NHPTL), promoted by NTPC,NHPC, PGCIL & DVC and incorporated on 22.05.2009 is involved in setting uponline high power test laboratory for short circuit testing of transformers and otherelectrical equipments.Energy Efficiency Services Limited (EESL) promoted by NTPC, PFC, Powergridand REC, for venturing into energy efficiency services business.

Leadership DevelopmentLeadership Assessment and Development System (LEADS) has been launched

for developing a pipeline of leaders for key positions.

Skill Development for the SectorAdoption of ITIs and setting up of new ITIs to bridge the skill gap

DEALING WITH CLIMATE CHANGEIncreasing the share of power generation based on non fossil sources (hydro,solar, wind and nuclear).Collaborative studies taken up with reputed institutions to address the climatechange issues:

o Study of CO2 capture technology (With IIT Guwahati)o Study of CO2 storage technology (With IIT Kharagpur)o PSA based CO2 capture technology (With IIT Mumbai, IIP Dehradun,

NEERI Nagpur, CSMRI Bhavnagar).Active role under National Action Plan for Climate Change (NAPCC):

o NVVN designated as nodal agency under National Solar Mission.o Under National Mission on Clean Coal (Carbon) Technologies, NTPC

along with Indira Gandhi Centre for Advanced Research (IGCAR) is thelead organization for development and deployment of Ultra Super



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Critical Technology including indigenous materials development for300 bar/700 ○C regime.

Centre for Power Efficiency & Environmental Protection (CenPEEP):Engaged in mitigation of GHG emissions. Over the last 14 years more than 28million tons of CO2 has been avoided in NTPC. Total CO2 avoided in the year2009-10 was 2.72 million tons.CenPEEP has shared its knowledge and expertise of best practices with 14 stateutilities in order to improve their efficiency and reduce carbon footprint.

FURTHER PUBLIC OFFER (FPO)

412,273,220 equity shares of NTPC divested by Govt. of India during the year.The Red Herring Prospectus was filed within 26 days of kick-off meeting andshares were allotted within 13 days of closure of the issue.The proceeds of Rs. 8,480.10 crore credited to Government of India’s accountand refund orders amounting to Rs. 131.36 crore issued on February 18/19,2010.The Govt. of India’s shareholding in NTPC Ltd. reduced from 89.5% to 84.5%w.e.f. 18.02.2010. Some of the firsts associated with the issue are :

a. First mega issue in the calendar year 2010b. First ever public offering on “Fast Track Route” – eliminating the needto file Draft Red Herring Prospectus thereby reducing the process timeby 30 days.

c. First issue under “Alternate Book Building Method” for pricing whichachieved a weighted average price of 205.69 per share for the book asagainst floor price of Rs. 201 per equity share.

GLOBAL FOOTPRINTS

2x250 MW coal based power plant in Trincomalee region in Sri Lanka - Site hasbeen identified. JVA and PPA has been finalized.

Exploring possibility of setting up new coal power project / R&M of old stations inKazakhstan and sourcing of fuel.Pursuing coal block acquisition in Indonesia and Mozambique.An MOU for cooperation has been finalized between NTPC and BangladeshPower Development Board (BPDB).The MOU covers improving efficiency ofBPDB’s under-performing power stations, improving BPDB’s human resourcecapability through training and taking O&M and R&M activities.NVVN identified as a nodal agency for cross border trading of power.

CONSULTANCY SERVICES

Consultancy wing is working on a capacity of more than 28,000 MW apart from

7690 MW of NTPC JV projects.Provisional Gross Income of Rs.152.73 crore (16.29% increase from last year)and provisional net profit of Rs.57.13 crore.Orders secured for Rs.277.63 crore, including four overseas orders.Amochu Reservoir Scheme (620 MW) project in Bhutan has been allocated toNTPC for preparation of DPR.



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NTPC submitted a bid for O&M service provider for a 2X 120 MW + 300 MW gasbased Power Project, being developed by Electricity Generation Company ofBangladesh at Siddhirgunj (near Dhaka). As per the bid opening statement NTPCis the lowest bidder.

TOWARDS LOW CARBON ENERGY MIX

Renewable Energy

By 2017, NTPC plans to have at least 1000 MW through renewable energyresources such as wind, hydro, solar, biomass and geo-thermal.Currently implementing 1920 MW hydro capacity

Koldam - 800 MWLoharinag Pala* - 600 MWTapovan Vishnugad - 520 MW

*Work under suspension based on Government order since February 2009.

Pre-award activities in progress for 552 MW of new hydro capacity.NVVN has been designated as the nodal agency for phase-I of Jawahar LalNehru National Solar Mission.NTPC to implement solar energy projects of 301 MW capacity by 2014.DPR has been prepared for solar energy project in Anta -15 MW, Singrauli – 25MW, Dadri - 5 MW and NTPC plants in Ramagundam, Unchahar, Korba &Faridabad – 50 MW.MoU signed with Andaman & Nicobar administration for implementation of solarPV projects of 5 MW at south Andaman and 1 MW at middle Andaman.Preparatory work for setting up wind energy projects in several part of India isgoing on with DPR preparation of 100 MW project in Karnataka, Technical bidevaluation of 100 MW project and identification of potential sites in Karnataka for400 MW projects.MoU signed with Gujarat Power Corporation Ltd. (GPCL) for implementation of500 MW of renewable energy preferably wind and solar at potential sites of

Gujarat.NTPC has commissioned 15 Distributed Generation Projects with a total capacityof 300 KW benefiting 12000 persons.

NTPC ENERGY TECHNOLOGY RESEARCH ALLIANCE (NETRA)

A CO2 capture pilot plant based on 'Pressure Swing Adsorption Technology' hasbeen set up at Indian Institute of Petroleum, Dehradun.A project for utilizing the captured CO2 to produce bio-fuel through micro algae isbeing taken up.MoU has been signed with IOCL for collaborative research on biochemicalTreatment of organic rich waters; development of Energy efficient lubricants;

States in which project has beencommissioned

No. of DGProjects

Uttar Pradesh 5Madhya Pradesh 5Chattishgarh 4Rajasthan 1



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Integrated plant for biodiesel production and utilization of biomass for powergeneration; NDT and Corrosion related projects for health assessment.Research Advisory Council (RAC) and Scientific Advisory Council (SAC) hasbeen constituted to guide NETRA's research and technology development effortsand to resolve power station problems.Commissioning of 5 KW MALAE Cycle pilot plant (with UICT, Mumbai).Development of Robotic crawler for boiler tube thickness assessment.GUI based software codification for power plant performance evaluation system.Development of expert system for transformer winding life assessment (withJadavpur University).Setting up a demonstration plant for solar air conditioning to be commissioned in2010-11.

INTEGRATED GASIFICATION COMBINED CYCLE TECHNOLOGYNTPC is planning to implement a 100 MWe IGCC technology demonstrationplant at NCTPP Dadri.NTPC plans to shortly appoints a consultant.The technology demo plant is planned to be implemented in two phases. Phase-Iinvolves setting up of a suitable gasifier and gas clean-up facilities and

stabilization of their operation. Phase-II will involve installation of matchingcombined cycle plant.

ENVIRONMENT MANAGEMENTNTPC has adopted advanced and high efficiency technologies such as supercritical boilers for the up-coming greenfield projects (e.g Barh, Sipat etc). Out oftotal coal based capacities to be developed during 12 th plan period, over 90% willbe based on supercritical technologies.In addition to adopting advanced and high efficiency technologies, NTPC hasbeen pursuing the objective of sustainable power development with followinginitiatives:

CO2 measurement systems are being installed at all our stations in the

chimney stacks.61 Ambient Air Quality Monitoring System (AAQMS) installed in all NTPCstations.Installed Bio–methanation Plant at Faridabad.Creation of green wealth of more than 18.80 million trees.

ASH UTILISATION

Achieved ash utilization of 59.73% i.e . 27.61 million tons of ash.



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10.85 million tons fly ash issued to cement and concrete industry which is 8.5 %more than last year.545 million ash bricks have been manufactured in Pilot ash brick manufacturingplants.1.13 million tons of ash from Talcher-Thermal has been utilized for filling ofabandoned South Balanda coal mine of MCL in Orissa.MoU has been signed with Research Designs & Standards Organization (RDSO),Lucknow to explore use of ash in Railway embankment.

ENERGY CONSERVATIONNine NTPC stations have installed On-line Energy Management Systems forreduction of Auxiliary Power Consumption. The same is being implemented atother stations also.In the year 2009-10, NTPC carried out 107 energy audits in different powerplants, which resulted in savings amounting to approx Rs.29 crore.

INFORMATION TECHNOLOGY

Enterprise Resource Planning based on SAP has been implemented at all NTPClocation and its subsidiaries covering all core business processes of Finance,

Materials, Maintenance, Projects, Operations, HR, Fuel management etc.SAP integrated with FOIS (Freight Online Integrated System) of Railways.New initiative like Activity based budgeting (ABB) and OPI (Overhaulpreparedness index) have been implemented.

HUMAN RESOURCE MANAGEMENT

Leadership Assessment and Development System (LEADS): With a view todeveloping a pipeline of leaders for key leadership positions in the company, aninitiative named LEADS has been launched. A Leadership Development Centre(LDC) at corporate centre has been set up to formulate the process of identifying

and grooming potential leaders.High Productivity of Team-NTPC: During 2009-10, sales per employee increasedfrom Rs. 1.77 crore to Rs.1.96 crore, profit per employee increased from Rs. 34.7lakh to Rs. 36.45 lakh, value added per employee increased from Rs. 59.36 lakhto Rs. 72.96 lakh and the man:MW ratio improved from 0.85 to 0.82.



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Total employee strength is 24,955 as on 31.03.2010, as against 24,713 on31.03.2009 (including employees in JVs & Subsidiaries).The attrition rate of the executives during the year was 0.91% as compared to1.77% in 2008-09.1398 fresh professionals joined NTPC during 2009-10, including 442 throughcampus recruitment from IITs / NITs. Plan to hire around 1200 freshprofessionals during 2010-11.Presently there are 458 physically challenged persons employed in NTPC.Policies to reward the individual performance in the form of Annual PerformanceRelated pay (PRP).Power Management Institute (PMI) trained 9,049 participants which clocked42,190 man-days.

POWER TRADING AND OTHER ACTIVITIES OF NVVN

NTPC Vidyut Vyapar Nigam Ltd., a 100% owned subsidiary of NTPC is thesecond largest power trading company in India.Transacted a business of 5548.92 MUs of power in 2009-10, out of which thetrading through Swap arrangement is 2293.93 MUs.It also sold 759,055.70 MT of Fly Ash and 552.97 MT of Cenospheres through e-

auction.

CORPORATE SOCIAL RESPONSIBILITY

Promoting Employability:

• Adopted 18 ITIs and to set up 8 new ITIs at various locations to bridge theskill gap in the power sector. New courses have been started in 12 ITIs in2009-10.

• Setting up a Power Training Institute at Solapur, Maharashtra, to provideskill development for power generation and transmission.

• Vocational training programmes, such as Computer training, Vehicledriving and Mobile repairing etc. for youth and various Coaching Classes

etc. for village children, based on the need of the local community in theneighbourhood of its stations.

ICT Centres: NTPC Foundation has set up Information and CommunicationTechnology Centre (ICT) at University of Delhi where 800 physically challengedstudents have already benefited. Similar centres for visually challenged havebeen set up at Mysore, Trivandrum and Ajmer.



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A District Disability Rehabilitation Centre (DDRC) has been set up incollaboration with National Institute of Orthopedically Handicapped (NIOH), atTanda. More than 26000 physically challenged persons have got benefited andclose to 1800 such persons have been provided with various artificial aids andappliances.DOT Centres: Direct Observation Treatment cum Designated Microscopy centre(DOT cum DMC) with Mobile Vans, diagnostic equipments and paramedicalservices have been started at 10 NTPC stations for diagnosis and treatment ofTuberculosis patients in the neighbourhood villages of the stations. More than5700 patients have been examined by these centres and treatment has beenprovided.Gender Justice: MoU was signed between NTPC and Govt. of Uttarakhand inDecember’09 for setting up of Technical Polytechnic at Kaladungi, Nainital Dist.,Uttaranchal with financial support of NTPC. Commitment to set-up Women’sPolytechnic at Gopeshwar, Chamoli Dist., Uttaranchal. Construction of a Schoolcum Multipurpose Building for Girls in Village Shaulana, Dist Ghaziabad, UttarPradesh with NTPC support got completed in July’09. Financial Assistance hasbeen provided in self reliance for 500 tribal girls/ women in 15 tribal villages ofUdaipur district.

Preserving Heritage: In order to contribute in the Conservation of selectedNational Monuments, NTPC has signed in MoU with Archaeological Survey ofIndia (ASI) and National Culture Fund (NCF) for financial support forconservation of 3 identified sites.Transforming Villages: NTPC has commissioned 15 Distributed GenerationProjects with a total capacity of 300 KW benefiting 12,000 persons in remotevillages.

RESETTLEMENT & REHABILITATION (R&R)

The R&R scheme adopted for the PAPs at Pakri Barwadih (PB) mining project inJharkhand is one of the best such schemes in the country.Socio Economic Survey (SES) for Mouda-II, Vindhyachal-IV, Solapur, Kudgi,Marakkanam, Nabinagar STPP (JV with Govt. of Bihar) and RupsiabagarKhasiyabara were completed.The Rehabilitation Action Plan (RAP) / Community Development (CD) Plan hasbeen approved and is under implementation at Dadri-II, Solapur, Mouda-I, PakriBarwadih, Chatti Bariyatu and Kerandari with a total cost of Rs.1,477 crore.As part of the Initial Community Development (ICD) program, mobile healthclinics deployed by Nabinagar, North Karanpura and Pakri Barwadih projects.

Right To Information

With a designated CPIO and Appellate authority and APIOs at all project stationsand offices, NTPC has replied 93.3% of total applications received under RTI act

2005.

RURAL ELECTRIFICATION

Under Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) NTPC through itswholly own subsidiary NESCL is carrying out the implementation in 29 districts in5 states (Madhya Pradesh, Chhattisgarh, Orissa, Jharkhand and West Bengal).



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MoU target of 7500 Un-electrified/De-electrified (UE/DE) and 8.5 Lakhs BPLhouse hold connection was achieved ahead of schedule. Total number ofvillages electrified during 2009-10 was 8017 and BPL connection provided to8.65 Lakhs house holds.

AWARDS & ACCOLADES

Ranked No. 1 Independent Power Producer in Asia and 2nd in the world in thePlatts Top 250 Global Energy Company list for 2009.ICSI National Award for excellence in Corporate governance 2009 has beenconferred to NTPC by Institute of Company Secretaries of India.Awarded Gold Trophy for SCOPE Meritorious Award for best practices in humanresource management.Top six out of eight National Awards for Meritorious Performance of ThermalPower Stations for 2008-09 instituted by the Government of India won by NTPCcoal stations.

Bagged two CII –ITC Sustainability Awards for 2009 – i)“Commendation forSignificant Achievement” to NTPC in large business category and ii) “Certificatefor Significant Achievement” to NTPC-Rihand.Ranked number ONE in the category the 'Best Workplaces for LargeOrganizations' and number tenth overall for the year 2009 by Great Places toWork Institute’s India chapter in collaboration with Economic Times.NCPDEP- Shell Helen Keller Award 2009 has been conferred to NTPC for

demonstration of belief in equal rights and gainful employment for persons withdisabilities through their policies and practices.Best performing CFO award by CNBC TV-18 in the Infrastructure category to ShriA.K. Singhal, Director (Finance), NTPC Ltd.“CII- EXIM Excellence Award 2009” to three NTPC stations namely Talcher-Kaniha, Kayamkulam and Rihand for ‘Strong Commitment to Excel’ .NTPC was awarded Gold Trophy for India Pride Awards – Energy and PowerCategory.Received certificate of merit for best presented Accounts and CorporateGovernance disclosures Awards in the category of public sector entities fromSAFA.International Gold Star Award for quality 2009 has been received by NTPC

CenPEEP in recognition for outstanding commitment to quality.Water Digest Water Award was conferred to NTPC in the category of “Best waterManagement – Public Sectors”.

Simhadri 1000 MW Gold ShieldKorba 2100 MW Silver Shield

Ramagundam 2600 MW Silver ShieldDadri (coal) 840 MW Bronze ShieldRihand 2000 MW Bronze ShieldVindhyachal 3260 MW Bronze Shield



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Subsidiaries

Note: Another subsidiary Pipavav Power Development Company Limited is under winding up.

JOINT VENTURES UNDER COMMERCIAL OPERATION

Name of theJV Company

Promoter’s EquityHolding as on31.3.2010

Area(s) of Operation Performance during 2009-10

NTPC 50%1 UtilityPowertechLimited (UPL) Reliance

InfrastructureLtd.

50%

To take up assignments ofconstruction, erection andsupervision in powersector and other sectors inIndia and abroad.

• Provisional un-audited TotalIncome Rs.261.4 crore

• Provisional un-audited PAT Rs 11.8crore

NTPC 50%2 NTPC-SAILPowerCompany

Pvt. Ltd.SAIL 50%

To own and operate acapacity of 814 MW mostlyas captive power plants for

SAIL’s steel manufacturingfacilities located atDurgapur, Rourkela andBhilai.

• Provisional un-audited TotalIncome Rs.1437 crore

• Provisional un-audited PAT Rs 98

crore• Captive plant of 314 MW recorded

PLF of above 95%, generated2.625 BUs.

• 2X 250 MW units under commercialoperation, generated 2.418 BUs.

3 NTPC-AlstomPower

NTPC 50% To take up Renovation &Modernization

• Provisional un-audited TotalIncome Rs.28.56 crore

Particulars NTPC Electric SupplyCo. Limited

NTPC VidyutVyapar NigamLimited

NTPC HydroLimited

Kanti BijleeUtpadanNigam Limited

Bhartiya RailBijleeCompanyLimited

1 Extent ofNTPCholding

100% 100% 100% 64.57% 74%

2 Performance for theyear 2009-10

Provisional un-auditedTotal Income Rs.72.50crore

Provisional un-auditedPAT Rs 25.77 crore

Commenced distributionthrough KINESCOPower and Utility Pvt.Ltd, a JV with KeralaIndustrial InfrastructureDevelopment w.e.f01.02.2010.

Transacted abusiness of554.9 croreUnits in 2009-10.

Provisional un-auditedTotal IncomeRs.2,008.30crore

Provisional un-auditedPAT Rs 27.50crore

Pre awardactivities for171 MW LataTapovanHEP and 120MWRammamHEP inprogress

Existing Units:One unit of 110MW is underoperation afterrestoration.Infirm powergenerated460.58 MU atPLF of 47.8%.

R&M Contractawarded toBHEL on15.04.2010

Expansion:Main plantpackage awardfinalized for2x195 MW andLoI issued toBHEL for Rs.1076 crore

• 1250 acres(approx) ofLand takenunderpossession



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ServicesPrivateLimited

Alstom PowerGenerationAG

50% assignments of powerplants both in India andabroad.

• Provisional un-audited PAT Rs.1.30crore

NTPC 29.65%

GAIL 29.65%

MSEB HCL 15.71%

4 Ratnagiri Gasand powerPvt. Limited

IFIs 24.99%

Operating gas basedDabhol Power Project.

• Generation during 2009-10 is 8289MUs against target generation of7735 MUs.

• Total Income (ProvisionalUnaudited): Rs.3,753.7 crore

• PAT (Provisional Unaudited):

Rs.226.9 crore.NTPC 44.6%

Governmentof Kerla

55.3%

5 Transformers& ElectricalsKerla Ltd.(TELK)

Others 0.1%

• NTPC acquired 44.6% stake inTELK on 19.06.09.

• Production of 5085MVA during2009-10 against 4566 MVA in2008-09.

• Total Income : Rs.205.90 crore

• PAT: Rs.23.11 crore

OTHER JOINT VENTURESName of theJV Company

Promoter’s EquityHolding as on31.3.2010

Area(s) of Operation Performance during 2009-10

NTPC 50%1 NTPC TamilNadu EnergyCompany Ltd.

Tamil NaduElectricityBoard

50%

To set up a coal-basedpower station of 1500 MWcapacity, at Vallur, usingEnnore port infrastructurefacilities.

• Main plant Boiler & Turbine forphase II (1x500MW) awarded toBHEL.

• Loan agreement for Rs. 2,114 croresigned with REC for unit-3.

NTPC 50%

Indraprastha PowerGenerationCo. Ltd.

25%

2 Aravali PowerCompanyPrivate Ltd.

HaryanaPower

GenerationCorp. Ltd.

25%

To set up coal based powerProject of 1500 MW (3x500MW), in Jhajjar District ofHaryana. NTPC would alsooperate and maintain thestation on ManagementContract basis for at least 25years.

• Letter of Assurance obtained fromMCL for 6.94 MTPA ‘F’ grade coal.

• Water agreement signed withHaryana Irrigation Deptt. For 150cusec water from JLN canal.

NTPC 50%3 Meja UrjaNigam PrivateLimited Uttar

PradeshRajyaVidyutUtpadanNigamLimited

50%

To set-up a power plant of1320 MW (2X660 MW) atMeja Tehsil in Allahabaddistrict in the state of UttarPradesh.

• Completion of land acquisition

• Clearance from CWC/MoWR for useof Ganges water received.

• In-principle approval of coal linkagesreceived from MoC.

NTPC 50%4 NTPC BHELPowerProjects Pvt

Ltd.

Bharat

HeavyElectricalLtd

50%

To carry out EngineeringProcurement andConstruction (EPC) activities

in the power sector and toengage in manufacturingand supply of equipment forpower plants and otherinfrastructure projects inIndia and Abroad.

• Land acquired for setting upmanufacturing facility at YSR Puramin Chittoor district (Andhra Pradesh).

•

Business Plan approved by theboard.

5 BF-NTPCEnergy

NTPC 49% To establish a facility to takeup manufacturing of

• Land identified at Solapur for settingup manufacturing facility.



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SystemsLimited

BharatForge

Limited

51% castings, forgings, fittingsand high pressure pipingrequired for power projectsand other industries,Balance of Plant (BOP)equipment for the powersector

• Consultant has identified 5 potentialproducts opportunities.

NTPC 50%6 NabinagarPower

GeneratingCompanyPrivateLimited

Bihar StateElectricityBoard

50%

To set-up a coal basedpower project having

capacity of 1980 MW (3X660MW) and operation &maintenance thereof atNabinagar in districtAurangabad of State ofBihar.

• Land acquisition activities initiatedand clearances under progress

NTPC 16.67%

NHPC 16.67%

PFC 16.66%

7 NationalPowerExchangeLimited TCS 50%

To operate a PowerExchange at National level.

• NPEX received in-principle approvalfrom CERC to set-up and operate anational level power exchange.

NTPC 50%8 NTPC-SCCLGlobalVenture Pvt.Ltd.

SingareniCollieries

50%

To jointly undertake thedevelopment and operation& maintenance of coalBlocks and integrated coalbased power projects inIndia and abroad.

-

NTPC 14.28%

SAIL 28.57%

CIL 28.57%

RINL 14.28%

9 InternationalCoal VenturesPvt. Ltd

NMDC 14.28%

For overseas acquisitionand/or operation of Coalmines or blocks for securingcoking coal and thermal coalsupplies

-

NTPC 25%

NHPC 25%

Powergrid 25%

10 National HighPower TestLaboratoryPvt. Ltd

DVC 25%

For setting up an online HighPower Test Laboratory forshort-circuit test facility in thecountry.

• Submission of Project FeasibilityReport by technical consultantsCESI.

NTPC 25%

PFC 25% Powergrid 25%

11 Energy

EfficiencyServicesLimited

REC 25%

To engage in the business of

carrying on and promotingbusiness of energy efficiencyand climate change,including manufacture andsupply of energy efficiencyservices and products andproviding consultancyservices in relation to thesame.

-

performance highlights 2009-10

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