Page 1 of 24

Transforming Lives

PERFORMANCE HIGHLIGHTS 2009-10 Growth in Capacity

Installed capacity reaches 31,704 MW (including 2864 MW under JVs). 17,830 MW under construction at 17 locations.

Growth in Commercial Capacity

1490 MW declared commercial (including 500 MW under JV). New national benchmark: Dadri Unit-5 (490 MW) begins commercial

operation in 39 months from zero date. Generation

Impressive Growth Rate

Generation increased by nearly 6% to 218.84 BUs compared to 3% generation growth achieved in 2008-09; Exceeded the MoU ‘Excellent’ target of 217 BUs.

Sustaining Market Leadership

Contributed 28.6% of total electricity generated in the country.

World Class Capacity Utilization

Page 2 of 24

Transforming Lives

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 in terms 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 coal to 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 0.5

MMSCMD on fallback basis signed with GAIL for 10 years.

Under NELP VIII, NTPC has been allotted one block at Cambay basin as a sole operator 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 as

against 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 against Rs.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.8,656.53

crore as compared to Rs.8,201.30 crore during the year 2008-09, an increase of 5.55%.

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

year.

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

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

NTPC Group the outlay is around Rs.29,104.06 crore.

Page 3 of 24

Transforming Lives

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 the Growth Management Centre (GMC), first of its kind in the sector.

Yet Another Turnaround

Impressive revival of Ratnagiri project (all six gas turbines operational) - achieved full 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 agency

for phase-I of Jawahar Lal Nehru National Solar Mission. Commencing Distribution Business

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

Rural Electrification

Under Rajiv Gandhi Grameen Vidyutikaran Yojana, NTPC Electric Supply Company Ltd (NESCL) completed electrification of 8017 villages and provided 8.65 Lakhs BPL connections, thereby exceeding GoI target of electrification of 7500 villages and 8.5 Lakhs BPL connections.

Leveraging Expertise

Consultancy wing working on a capacity of more than 28,000 MW apart from 7690 MW of NTPC JV projects.

Page 4 of 24

Transforming Lives

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

Bangladesh.

Commonwealth Games

Official Power Partner of Delhi 2010 Commonwealth Games. Further Public Offer

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

Accolades

Top six out of eight National Awards for Meritorious Performance of Thermal Power Stations for 2008-09 instituted by the Government of India won by NTPC coal stations.

No. 1 Independent Power Producer in Asia and 2nd globally in the Platts Top 250

Global Energy Company Rankings 2009.

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

Gold Trophy for SCOPE Meritorious Award for best practices in Human Resource

Management.

Simhadri 1000 MW Gold Shield

Korba 2100 MW Silver Shield

Ramagundam 2600 MW Silver Shield

Dadri (coal) 840 MW Bronze Shield Rihand 2000 MW Bronze Shield

Vindhyachal 3260 MW Bronze Shield

Page 5 of 24

Transforming Lives

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) Commercial Operation 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 declared

commercial. New national benchmark with Dadri Unit-5 (490 MW) starting commercial operation

within 39 months from zero date (reckoned from MoEF clearance, as per investment approval).

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

Page 6 of 24

Transforming Lives

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

Future Capacity Under Different Stages

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

Bulk tenders invited for the following NTPC units:

Projects Capacity(MW)

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

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

Projects Capacity (MW)

Lara (2X800) 1600 Darlipalli (2X800) 1600 Kudgi (3X800) 2400 Gajmara (2X800) 1600 Total 7200

MoU with Government of Chhattisgarh for setting up 4000 MW coal based power

project at Lara in Raigarh. MoU with Government of Madhya Pradesh and MP Tradeco for setting up a 2640

MW 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 1500

Vallur (Phase -I & Phase –II) (Coal) - JV With TNEB, Tamil Nadu 1500

Nabinagar-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

Page 7 of 24

Transforming Lives

Growth Management Centre

Set up a state of the art Growth Management Centre (GMC), first of its kind in the sector, comprising of Operation Monitoring Centre (OMC), Project Monitoring Centre (PMC) and Investors Services Centre (ISC). The project monitoring system 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 achieved

the highest PLF of 97.6%. Out of fifteen coal stations, six stations have achieved PLF of more than 95% and

twelve stations achieved PLF of more than 90%. Availability of NTPC coal stations was 91.76%.

NTPC coal stations with PLF > 90%

Sl. No.

Coal Stations Capacity Availability Factor (%)

PLF (%)

Average age of Plant( as on 31.03.2010)

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 capacity

comprising 81 units with average fleet age of 18.8 years. Sixteen coal units achieved more than 100% PLF, eighteen units achieved PLF

between 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 operating

availability of 98.56%.

Page 8 of 24

Transforming Lives

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 on

31st March, 2010. Exceeded the MoU target of 217 BUs for generation. Sustaining Market Leadership: Contributed 28.6% of total electricity generated

in the country.

Total electricity available in the country 771.17 BUs Electricity import from Bhutan 5.34 BUs Total Electricity Generation in the Country 765.83 BUs Total Generation from NTPC Units 218.84 BUs NTPC share in total electricity generation in 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%

Coal

Model Coal Supply Agreement signed with Coal India Ltd (CIL) for supply of coal to NTPC stations for 20 years. Further agreements with subsidiaries of CIL signed for all stations except Farakka, Kahalgaon & Ramagundam-III. The agreement provides for supply/off-take at 90% of ACQ (Annual Contracted Quantity) for determining incentive/penalties, which are like mirror images on either side of the 90% trigger level. ACQ can be reviewed every 5 years.

Page 9 of 24

Transforming Lives

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 tons through E-Auction.

Letter of Assurance (LOA) for 15.138 MMT for 11th plan coal based projects and approval for LOA with total capacity of 5960 MW (projects covered under bulk tendering for 12th plan) has been obtained.

Gas

Additional gas allocation of 4.46 MMSCMD from KG-Basin by EGoM; out of this contract already in place for 1.81 MMSCMD.

Long term contract for supply of RLNG of 2.0 MMSCMD on firm basis and 0.5 MMSCMD 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 sole operator 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 blocks allotted.

More than 6735 acres of Land in Pakri Barwadih and about 1594 acres of land in Chatti Bariatu coal block have been acquired and land acquisition for Dulanga and Talaipalli are in progress.

Rehabilitation Action Plan (RAP) has been approved by NTPC Board for Pakri Barwadih, 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 and

maintenance 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 coal block in Mozambique.

International Coal Ventures Ltd (ICVL) has been incorporated on 20.05.2009 as a JV company of NTPC, RINL, SAIL, NMDC and CIL for sourcing coking and thermal 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 as against 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 against Rs.45,272.76 crore for the year 2008-09, an increase of 9.29%.

Page 10 of 24

Transforming Lives

Provisional and un-audited Profit after tax for the year 2009-10 is Rs.8656.53 crore as compared to Rs.8,201.30 crore during the year 2008-09, an increase of 5.55%.

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. NTPC Group’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 at

the 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 face

value of Rs. 10/- being 30% of paid-up capital translating into a dividend payout of Rs.2,473.64 crore.

Contributed Rs.3,260.21 crore to exchequer on account of corporate tax amounting to Rs.45.94 crore (net of receipt of refund of Rs.2,896.56 crore pertaining to previous years), Dividend amount of Rs.2,680.58 crore, Dividend tax amounting 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 other Financial institutions during 2009-10; cumulative loan tied up Rs.49,308.35 crore so far including Rs.8,500 crore from State Bank of India and Rs.2,750 crore from Canara Bank during the current year.

During 2009-10, NTPC issued four series of Bonds on Private Placement basis to eligible Institutions aggregating Rs.1,500 crore to finance capital

Page 11 of 24

Transforming Lives

expenditure on power generation projects, Coal Mining business, Renovation and 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 years

3 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 of Rs.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.1,225 crore.

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

Public Deposits

During the year 2009-10, the interest rates of Public Deposit Schemes were revised twice on 23.05.2009 and 18.09.2009. The present interest rates are 6.25%, 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 amount aggregating 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 the

required amount and are making full payment of current bills. As on date, NTPC has monthly LCs of Rs. 4,061.32 crore.

Payment Security Mechanism by way of Tripartite Agreements is in place upto 2016. To ensure payment security beyond 2016, agreements have been signed with all beneficiaries for escrow arrangement.

1st Unit (490 MW) of Dadri Stage-II has commenced commercial operation and is eligible 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 1320 Korba-III 500

Vallur 1500

Page 12 of 24

Transforming Lives

Lata Tapovan 171 Khasiabara HEP 261

Kanti Stage-II 390

New Nabinagar 1980

Bhartiya Rail Bijlee Company Ltd. 1000

Solapur 1320

Tariff petitions for the five-year period beginning Financial Year 2009-10 have

been filed before CERC for all stations in accordance with the CERC Tariff Regulations, 2009.

Petitions have also been filed in CERC for revision of tariff for the period upto 31.3.2009 due to additional capital expenditure incurred at the Stations during 2004-09.

Under Customer Relationship Management programme, 68 customer support workshops conducted and training facility extended to 149 officials of state utilities 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 were

awarded 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 packages

valued at Rs. 100 crore and above from NIT onwards w.e.f 01.08.2009. STRATEGIC INITIATIVES Efficiency Improvement Initiatives

Real time efficiency gap analysis using advanced analytical tools Maximization of condition based maintenance through systematic ‘Predictive

Maintenance Program’. Reliability improvement strategies by Failure mode analysis through Reliability

Centered Maintenance (RCM) and risk mitigation by Financial Risk Optimization (FRO).

Thrust on combustion optimization, improvement in performance of condenser and cooling tower.

Centre for Power Efficiency & Environmental Protection (CenPEEP) is engaged 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 efficiency assessment 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

Page 13 of 24

Transforming Lives

Expanding the Real time information coverage of operating units to include monitoring of:

o Equipment health o Plant chemistry o Coal rake movement

SMART (Strategic Monitoring and Assistance Remote Terminus): Advance warning system which picks up signs based on advanced analysis and specialized computing of operational trends of power plant equipment.This intelligent system continuously builds upon its accuracy level as it collects more data.

O&M Business Process Automation(BPA): Automation through Dashboards and Knowledge Management repository which is envisaged to contain all knowledge relevant to O&M facets.

Fuel Security

Model Coal Supply Agreement signed with Coal India Ltd (CIL) for supply of coal to 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 Addition

Changed the development and execution strategies for the future projects with a view 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 milestone based project monitoring, real time network updation, real time video capture apart from latest video conferencing facility.

Getting into Nuclear

JV agreement is expected to be signed shortly with Nuclear Power Corporation of India Limited (NPCIL). Approval has been obtained from Department of Atomic Energy (DAE).

Focus on Renewables

By 2017, NTPC plans to have at least 1000 MW through renewable energy resources such as wind, hydro, solar, biomass and geo-thermal.

Long Term Corporate Plan upto 2032

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

Technology Roadmap upto 2032

Chalking out a long term technology roadmap upto 2032 which involves development, adoption and promotion of safe, efficient and clean technologies for entire value chain of power generation business.

Some of the target technologies are: o Setting up of Coal Fired Units with Ultra Supercritical Parameters targeting

efficiency comparable to the best available technology in the world.

Page 14 of 24

Transforming Lives

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

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 for utilization of renewable energy sources.

Plans for not ordering any sub-critical technology power plants after 2010-11. Developing EPC Capability & Equipment Manufacturing

NTPC-BHEL Power Projects Pvt. Limited (NBPPPL) - A 50:50 Joint Venture Company between NTPC and BHEL registered on 28.04.2009. Land acquired (750 acres) at YSR Puram in Chittoor district (Andhra Pradesh). JV company has bagged contracts for execution of BOP of OTPC gas based power plant and 1x100 MW Namrup Thermal Power Station.

BF - NTPC Energy Systems Ltd. : A Joint Venture Company (NTPC, 49% equity and BFL, 51% equity) between NTPC and Bharat Forge Limited incorporated on 19th 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 Diversification

National High Power Test Laboratory Limited (NHPTL), promoted by NTPC, NHPC, PGCIL & DVC and incorporated on 22.05.2009 is involved in setting up online high power test laboratory for short circuit testing of transformers and other electrical equipments.

Energy Efficiency Services Limited (EESL) promoted by NTPC, PFC, Powergrid and REC, for venturing into energy efficiency services business.

Leadership Development

Leadership Assessment and Development System (LEADS) has been launched for developing a pipeline of leaders for key positions.

Skill Development for the Sector

Adoption of ITIs and setting up of new ITIs to bridge the skill gap DEALING WITH CLIMATE CHANGE

Increasing 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 climate change 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 the lead organization for development and deployment of Ultra Super

Page 15 of 24

Transforming Lives

Critical Technology including indigenous materials development for 300 bar/700 ○C regime.

Centre for Power Efficiency & Environmental Protection (CenPEEP): Engaged in mitigation of GHG emissions. Over the last 14 years more than 28 million tons of CO2 has been avoided in NTPC. Total CO2 avoided in the year 2009-10 was 2.72 million tons.

CenPEEP has shared its knowledge and expertise of best practices with 14 state utilities 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 and shares were allotted within 13 days of closure of the issue.

The proceeds of Rs. 8,480.10 crore credited to Government of India’s account and 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 2010 b. First ever public offering on “Fast Track Route” – eliminating the need

to file Draft Red Herring Prospectus thereby reducing the process time by 30 days.

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

GLOBAL FOOTPRINTS

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

Exploring possibility of setting up new coal power project / R&M of old stations in Kazakhstan and sourcing of fuel.

Pursuing coal block acquisition in Indonesia and Mozambique. An MOU for cooperation has been finalized between NTPC and Bangladesh

Power Development Board (BPDB).The MOU covers improving efficiency of BPDB’s under-performing power stations, improving BPDB’s human resource capability 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 to

NTPC for preparation of DPR.

Page 16 of 24

Transforming Lives

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

TOWARDS LOW CARBON ENERGY MIX Renewable Energy

By 2017, NTPC plans to have at least 1000 MW through renewable energy resources such as wind, hydro, solar, biomass and geo-thermal.

Currently implementing 1920 MW hydro capacity Koldam - 800 MW Loharinag Pala* - 600 MW Tapovan 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 Lal

Nehru 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 – 25

MW, Dadri - 5 MW and NTPC plants in Ramagundam, Unchahar, Korba & Faridabad – 50 MW.

MoU signed with Andaman & Nicobar administration for implementation of solar PV 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 is going on with DPR preparation of 100 MW project in Karnataka, Technical bid evaluation of 100 MW project and identification of potential sites in Karnataka for 400 MW projects.

MoU signed with Gujarat Power Corporation Ltd. (GPCL) for implementation of 500 MW of renewable energy preferably wind and solar at potential sites of Gujarat.

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

NTPC ENERGY TECHNOLOGY RESEARCH ALLIANCE (NETRA)

A CO2 capture pilot plant based on 'Pressure Swing Adsorption Technology' has been set up at Indian Institute of Petroleum, Dehradun.

A project for utilizing the captured CO2 to produce bio-fuel through micro algae is being taken up.

MoU has been signed with IOCL for collaborative research on biochemical Treatment of organic rich waters; development of Energy efficient lubricants;

States in which project has been commissioned

No. of DG Projects

Uttar Pradesh 5

Madhya Pradesh 5 Chattishgarh 4 Rajasthan 1

Page 17 of 24

Transforming Lives

Integrated plant for biodiesel production and utilization of biomass for power generation; NDT and Corrosion related projects for health assessment.

Research Advisory Council (RAC) and Scientific Advisory Council (SAC) has been constituted to guide NETRA's research and technology development efforts and 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 (with

Jadavpur University). Setting up a demonstration plant for solar air conditioning to be commissioned in

2010-11. INTEGRATED GASIFICATION COMBINED CYCLE TECHNOLOGY

NTPC is planning to implement a 100 MWe IGCC technology demonstration plant at NCTPP Dadri.

NTPC plans to shortly appoints a consultant. The technology demo plant is planned to be implemented in two phases. Phase-I

involves setting up of a suitable gasifier and gas clean-up facilities and stabilization of their operation. Phase-II will involve installation of matching combined cycle plant.

ENVIRONMENT MANAGEMENT

NTPC has adopted advanced and high efficiency technologies such as super critical boilers for the up-coming greenfield projects (e.g Barh, Sipat etc). Out of total coal based capacities to be developed during 12th plan period, over 90% will be based on supercritical technologies.

In addition to adopting advanced and high efficiency technologies, NTPC has been pursuing the objective of sustainable power development with following initiatives:

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

61 Ambient Air Quality Monitoring System (AAQMS) installed in all NTPC stations.

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.

Page 18 of 24

Transforming Lives

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 manufacturing plants.

1.13 million tons of ash from Talcher-Thermal has been utilized for filling of abandoned 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 CONSERVATION

Nine NTPC stations have installed On-line Energy Management Systems for reduction of Auxiliary Power Consumption. The same is being implemented at other stations also.

In the year 2009-10, NTPC carried out 107 energy audits in different power plants, which resulted in savings amounting to approx Rs.29 crore.

INFORMATION TECHNOLOGY

Enterprise Resource Planning based on SAP has been implemented at all NTPC location 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 (Overhaul

preparedness index) have been implemented. HUMAN RESOURCE MANAGEMENT

Leadership Assessment and Development System (LEADS): With a view to developing a pipeline of leaders for key leadership positions in the company, an initiative 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 increased from Rs. 1.77 crore to Rs.1.96 crore, profit per employee increased from Rs. 34.7 lakh to Rs. 36.45 lakh, value added per employee increased from Rs. 59.36 lakh to Rs. 72.96 lakh and the man:MW ratio improved from 0.85 to 0.82.

Page 19 of 24

Transforming Lives

Total employee strength is 24,955 as on 31.03.2010, as against 24,713 on 31.03.2009 (including employees in JVs & Subsidiaries).

The attrition rate of the executives during the year was 0.91% as compared to 1.77% in 2008-09.

1398 fresh professionals joined NTPC during 2009-10, including 442 through campus recruitment from IITs / NITs. Plan to hire around 1200 fresh professionals during 2010-11.

Presently there are 458 physically challenged persons employed in NTPC. Policies to reward the individual performance in the form of Annual Performance

Related pay (PRP). Power Management Institute (PMI) trained 9,049 participants which clocked

42,190 man-days.

POWER TRADING AND OTHER ACTIVITIES OF NVVN

NTPC Vidyut Vyapar Nigam Ltd., a 100% owned subsidiary of NTPC is the second largest power trading company in India.

Transacted a business of 5548.92 MUs of power in 2009-10, out of which the trading 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 the skill gap in the power sector. New courses have been started in 12 ITIs in 2009-10.

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

• Vocational training programmes, such as Computer training, Vehicle driving and Mobile repairing etc. for youth and various Coaching Classes etc. for village children, based on the need of the local community in the neighbourhood of its stations.

ICT Centres: NTPC Foundation has set up Information and Communication

Technology Centre (ICT) at University of Delhi where 800 physically challenged students have already benefited. Similar centres for visually challenged have been set up at Mysore, Trivandrum and Ajmer.

Page 20 of 24

Transforming Lives

A District Disability Rehabilitation Centre (DDRC) has been set up in collaboration with National Institute of Orthopedically Handicapped (NIOH), at Tanda. More than 26000 physically challenged persons have got benefited and close to 1800 such persons have been provided with various artificial aids and appliances.

DOT Centres: Direct Observation Treatment cum Designated Microscopy centre (DOT cum DMC) with Mobile Vans, diagnostic equipments and paramedical services have been started at 10 NTPC stations for diagnosis and treatment of Tuberculosis patients in the neighbourhood villages of the stations. More than 5700 patients have been examined by these centres and treatment has been provided.

Gender Justice: MoU was signed between NTPC and Govt. of Uttarakhand in December’09 for setting up of Technical Polytechnic at Kaladungi, Nainital Dist., Uttaranchal with financial support of NTPC. Commitment to set-up Women’s Polytechnic at Gopeshwar, Chamoli Dist., Uttaranchal. Construction of a School cum Multipurpose Building for Girls in Village Shaulana, Dist Ghaziabad, Uttar Pradesh with NTPC support got completed in July’09. Financial Assistance has been provided in self reliance for 500 tribal girls/ women in 15 tribal villages of Udaipur district.

Preserving Heritage: In order to contribute in the Conservation of selected National Monuments, NTPC has signed in MoU with Archaeological Survey of India (ASI) and National Culture Fund (NCF) for financial support for conservation of 3 identified sites.

Transforming Villages: NTPC has commissioned 15 Distributed Generation Projects with a total capacity of 300 KW benefiting 12,000 persons in remote villages.

RESETTLEMENT & REHABILITATION (R&R)

The R&R scheme adopted for the PAPs at Pakri Barwadih (PB) mining project in Jharkhand 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 Rupsiabagar Khasiyabara were completed.

The Rehabilitation Action Plan (RAP) / Community Development (CD) Plan has been approved and is under implementation at Dadri-II, Solapur, Mouda-I, Pakri Barwadih, Chatti Bariyatu and Kerandari with a total cost of Rs.1,477 crore.

As part of the Initial Community Development (ICD) program, mobile health clinics deployed by Nabinagar, North Karanpura and Pakri Barwadih projects.

Right To Information

With a designated CPIO and Appellate authority and APIOs at all project stations and 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 its wholly own subsidiary NESCL is carrying out the implementation in 29 districts in 5 states (Madhya Pradesh, Chhattisgarh, Orissa, Jharkhand and West Bengal).

Page 21 of 24

Transforming Lives

MoU target of 7500 Un-electrified/De-electrified (UE/DE) and 8.5 Lakhs BPL house hold connection was achieved ahead of schedule. Total number of villages electrified during 2009-10 was 8017 and BPL connection provided to 8.65 Lakhs house holds.

AWARDS & ACCOLADES

Ranked No. 1 Independent Power Producer in Asia and 2nd in the world in the Platts Top 250 Global Energy Company list for 2009.

ICSI National Award for excellence in Corporate governance 2009 has been conferred to NTPC by Institute of Company Secretaries of India.

Awarded Gold Trophy for SCOPE Meritorious Award for best practices in human resource management.

Top six out of eight National Awards for Meritorious Performance of Thermal Power Stations for 2008-09 instituted by the Government of India won by NTPC coal stations.

Bagged two CII –ITC Sustainability Awards for 2009 – i)“Commendation for Significant Achievement” to NTPC in large business category and ii) “Certificate for Significant Achievement” to NTPC-Rihand.

Ranked number ONE in the category the 'Best Workplaces for Large Organizations' and number tenth overall for the year 2009 by Great Places to Work 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 with disabilities through their policies and practices.

Best performing CFO award by CNBC TV-18 in the Infrastructure category to Shri A.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 Power Category.

Received certificate of merit for best presented Accounts and Corporate Governance disclosures Awards in the category of public sector entities from SAFA.

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 water Management – Public Sectors”.

Simhadri 1000 MW Gold Shield Korba 2100 MW Silver Shield Ramagundam 2600 MW Silver Shield

Dadri (coal) 840 MW Bronze Shield Rihand 2000 MW Bronze Shield Vindhyachal 3260 MW Bronze Shield

Page 22 of 24

Transforming Lives

Subsidiaries

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

JOINT VENTURES UNDER COMMERCIAL OPERATION

Name of the JV Company

Promoter’s Equity Holding as on 31.3.2010

Area(s) of Operation Performance during 2009-10

NTPC 50% 1 Utility Powertech Limited (UPL) Reliance

Infrastructure Ltd.

50%

To take up assignments of construction, erection and supervision in power sector and other sectors in India and abroad.

• Provisional un-audited Total Income Rs.261.4 crore

• Provisional un-audited PAT Rs 11.8 crore

NTPC 50% 2 NTPC-SAIL Power Company Pvt. Ltd. SAIL 50%

To own and operate a capacity of 814 MW mostly as captive power plants for SAIL’s steel manufacturing facilities located at Durgapur, Rourkela and Bhilai.

• Provisional un-audited Total Income Rs.1437 crore

• Provisional un-audited PAT Rs 98 crore

• Captive plant of 314 MW recorded PLF of above 95%, generated 2.625 BUs.

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

3 NTPC-Alstom Power

NTPC 50% To take up Renovation & Modernization

• Provisional un-audited Total Income Rs.28.56 crore

Particulars NTPC Electric Supply Co. Limited

NTPC Vidyut Vyapar Nigam Limited

NTPC Hydro Limited

Kanti Bijlee Utpadan Nigam Limited

Bhartiya Rail Bijlee Company Limited

1 Extent of NTPC holding

100% 100% 100% 64.57% 74%

2 Performance for the year 2009-10

Provisional un-audited Total Income Rs.72.50 crore Provisional un-audited PAT Rs 25.77 crore Commenced distribution through KINESCO Power and Utility Pvt. Ltd, a JV with Kerala Industrial Infrastructure Development w.e.f 01.02.2010.

Transacted a business of 554.9 crore Units in 2009-10. Provisional un-audited Total Income Rs.2,008.30 crore Provisional un-audited PAT Rs 27.50 crore

Pre award activities for 171 MW Lata Tapovan HEP and 120 MW Rammam HEP in progress

Existing Units: One unit of 110 MW is under operation after restoration. Infirm power generated 460.58 MU at PLF of 47.8%. R&M Contract awarded to BHEL on 15.04.2010 Expansion: Main plant package award finalized for 2x195 MW and LoI issued to BHEL for Rs. 1076 crore

• 1250 acres (approx) of Land taken under possession

Page 23 of 24

Transforming Lives

Services Private Limited

Alstom Power Generation AG

50% assignments of power plants both in India and abroad.

• Provisional un-audited PAT Rs.1.30 crore

NTPC 29.65%

GAIL 29.65%

MSEB HCL 15.71%

4 Ratnagiri Gas and power Pvt. Limited

IFIs 24.99%

Operating gas based Dabhol Power Project.

• Generation during 2009-10 is 8289 MUs against target generation of 7735 MUs.

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

• PAT (Provisional Unaudited): Rs.226.9 crore.

NTPC 44.6%

Government of Kerla

55.3%

5 Transformers & Electricals Kerla Ltd. (TELK)

Others 0.1%

• NTPC acquired 44.6% stake in TELK on 19.06.09.

• Production of 5085MVA during 2009-10 against 4566 MVA in 2008-09.

• Total Income : Rs.205.90 crore

• PAT: Rs.23.11 crore

OTHER JOINT VENTURES Name of the

JV Company Promoter’s Equity Holding as on 31.3.2010

Area(s) of Operation Performance during 2009-10

NTPC 50% 1 NTPC Tamil Nadu Energy Company Ltd.

Tamil Nadu Electricity Board

50%

To set up a coal-based power station of 1500 MW capacity, at Vallur, using Ennore port infrastructure facilities.

• Main plant Boiler & Turbine for phase II (1x500MW) awarded to BHEL.

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

NTPC 50%

Indraprastha Power Generation Co. Ltd.

25%

2 Aravali Power Company Private Ltd.

Haryana Power Generation Corp. Ltd.

25%

To set up coal based power Project of 1500 MW (3x500 MW), in Jhajjar District of Haryana. NTPC would also operate and maintain the station on Management Contract basis for at least 25 years.

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

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

NTPC 50% 3 Meja Urja Nigam Private Limited Uttar

Pradesh Rajya Vidyut Utpadan Nigam Limited

50%

To set-up a power plant of 1320 MW (2X660 MW) at Meja Tehsil in Allahabad district in the state of Uttar Pradesh.

• Completion of land acquisition

• Clearance from CWC/MoWR for use of Ganges water received.

• In-principle approval of coal linkages received from MoC.

NTPC 50% 4

NTPC BHEL Power Projects Pvt Ltd.

Bharat Heavy Electrical Ltd

50%

To carry out Engineering Procurement and Construction (EPC) activities in the power sector and to engage in manufacturing and supply of equipment for power plants and other infrastructure projects in India and Abroad.

• Land acquired for setting up manufacturing facility at YSR Puram in Chittoor district (Andhra Pradesh).

• Business Plan approved by the board.

5 BF-NTPC Energy

NTPC 49% To establish a facility to take up manufacturing of

• Land identified at Solapur for setting up manufacturing facility.

Page 24 of 24

Transforming Lives

Systems Limited

Bharat Forge

Limited

51% castings, forgings, fittings and high pressure piping required for power projects and other industries, Balance of Plant (BOP) equipment for the power sector

• Consultant has identified 5 potential products opportunities.

NTPC 50% 6 Nabinagar Power Generating Company Private Limited

Bihar State Electricity Board

50%

To set-up a coal based power project having capacity of 1980 MW (3X660 MW) and operation & maintenance thereof at Nabinagar in district Aurangabad of State of Bihar.

• Land acquisition activities initiated and clearances under progress

NTPC 16.67%

NHPC 16.67%

PFC 16.66%

7 National Power Exchange Limited TCS 50%

To operate a Power Exchange at National level.

• NPEX received in-principle approval from CERC to set-up and operate a national level power exchange.

NTPC 50% 8 NTPC-SCCL Global Venture Pvt. Ltd.

Singareni Collieries

50%

To jointly undertake the development and operation & maintenance of coal Blocks and integrated coal based power projects in India and abroad.

-

NTPC 14.28%

SAIL 28.57%

CIL 28.57%

RINL 14.28%

9 International Coal Ventures Pvt. Ltd

NMDC 14.28%

For overseas acquisition and/or operation of Coal mines or blocks for securing coking coal and thermal coal supplies

-

NTPC 25%

NHPC 25%

Powergrid 25%

10 National High Power Test Laboratory Pvt. Ltd

DVC 25%

For setting up an online High Power Test Laboratory for short-circuit test facility in the country.

• Submission of Project Feasibility Report by technical consultants CESI.

NTPC 25%

PFC 25%

Powergrid 25%

11 Energy Efficiency Services Limited

REC 25%

To engage in the business of carrying on and promoting business of energy efficiency and climate change, including manufacture and supply of energy efficiency services and products and providing consultancy services in relation to the same.

-