Corporate Plan-ET Oct08

7/31/2019 Corporate Plan-ET Oct08

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Presentation on

Corporate Plan of NTPC

Bhawanjeet Singh,

DGM, Corporate Planning


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Meaning and Framework for Corporate Plan NTPCs Corp. Plan(s)

Process and Structure

(Corporate Agenda, SWOT analysis, Business Portfolio, Functional strategies)

Key to success of Planning Process

Presentation Outline.


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Meaning and Framework for Corporate Plan

NTPCs Corp. Plan(s)

Process and Structure(Corporate Agenda, SWOT analysis, Business Portfolio, Functional strategies)




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WHAT IS CORPORATE PLAN?

LONG RANGE --- S TRATEGIC PLANTHE TASK OF SELECTING A CORPORATESTRATEGY FOR LONG-RUN SURVIVAL

AND GROWTH CONSIDERING:

THE ORGANIZATIONS OBJECTIVESITS ENVIRONMENTAL OPPORTUNITIESRESOURCES

TIME HORIZON

VARIES FROM SECTOR TO SECTOR

FOR POWER SECTOR 15 YEARS

ROLLING PLAN

STRATEGIC PLANNING INVOLVES UNDERSTANDING THE HARD AND SOFT DATA ABOUT ABUSINESS AND ITS ENVIRONMENT; AND SYNTHESIZING THAT UNDERSTANDING INTO PLAN

GIVEN A VISION, STRATEGIC PLANNING BREAKS IT DOWN IN A STEP-BY-STEP METHOD TO

REALISE THE VISION.

STRATEGIC PLANNING IS NOT STRATEGIC PROGRAMMING.

.


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First Corporate Plan (1985-2000)

Second Corporate Plan: Looking Ahead (1997-2012)

Current Corporate Plan (2002-2017)

Long term planning process adopted by NTPC


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FIRST CORPORATE PLAN (1985-2000)

1983- NTPC first Corporate Plan -period of 15 years 1985 to 2000.

Post 1991, the power sector started witnessing rapid changes in

Government policies affecting NTPCs growth Plan

After announcement of private power policy, Several projects identified

by NTPC in its Corporate Plan earmarked for IPPS

The realization of dues assumed serious concern, resulting in paucity of

investible funds.

The Government started withdrawing investments.

Transmission business transferred to NPTC (erstwhile Powergrid) in1991.

NTPC adopted vision of becoming one of the largest and best power

utility in the world

NTPC was accorded the status of a potential Global Giant - a Navratna in

July 1997


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LOOKING AHEAD - (1997-2012) 2nd C PLANVISION 2017- (2002-2017) 3rd C PLAN

To translate the vision into tangible action plan in the new business

environment,Corporate Plan: Looking Ahead 1997-2012 was

formulated

It was a 5- year rolling plan i.e to be rolled for next 15 years after 5-

year i.e 2002

Project Disha Team (NTPC & ATK ) jointly formulated the current

Plan Vision- 2017 (2002- 2017)

Next rollout is already due


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Meaning and Framework for Corporate Plan

NTPCs Corp. Plan(s)





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How do we

reach our

destination?

(StrategicPlanning)

Where do wewant to reach?

(our

destination)

Currently where we

are?

The

Planning

Processes

Planning Process


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Past Performance Appraisal

Strengths and Weaknesses

Business Environment Appraisal

Opportunities and Threats

Vision, Mission, Values and Objectives

Business Portfolio and Functional Strategies

Financial Modeling for next 15

years to determine availability of

funds

Plan implementation

Strategies

Inputs from organisation

wide intensive discussions

Methodology adopted for formulating the Plan

Capacity Addition scenarios


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Corporate Plan

Section 1: The Corporate Agenda (Vision, Mission, Objectives, Values)

Section 2: Review of Past Performance

Section 3: Changing Business Environment and Expected Future Trends

Section 4: Business Portfolio

Section 5: Functional Strategies

Section 6: Plan Implementation Strategies


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Vision

A world class integrated power major, poweringIndias growth, with increasing global presence

Develop and provide power and related product services at competitive prices

integrating multiple energy sources, with innovative and eco-friendly technologiesand contribute to society

Objectives

Research

& Develop-

ment

Customer

focus

Business

portfolio

growth

Susta-

inable

Power

Develop-

ment

Financial

soundness

Agile

corpor-

ation

Perfor-

mance

leadership

Human

Resource

Develop-ment

Mission

Our Vision and Mission


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Our Core Values -

B Business Ethics C Customer Focus

O Organisational and ProfessionalPride M Mutual Respect and Trust I Innovation and Speed T Total Quality for Excellence

BCOMIT


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Section 2: Review of Past PerformanceSection 3: Changing Business Environment and Expected Future Trends

STRENGTH

WEAKNESS

OPPORTUNITY

THREAT

ANALYSIS

Strengths


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Largest market share in domestic power generation and a broad customerportfolio across the country

Excellent track record of performance in project implementation and plantoperations

Highly skilled and experienced human resources, exposed to state-of-the-arttechnologies in project execution and power generation

Navaratna status

High brand equity among stakeholders

Strong balance sheet ability to raise low cost debt

Engineering skills in project configuration and package design

High national and international ranking/benchmarking

Established systems and procedures to institutionalise excellence in businessoperations received ISO accreditation in several functions/areas

In-house training facility (PMI), CENPEEP, R&D, etc that assists in development ofthe sector

Thrust on reducing social costs of capacity growth strong execution ofResettlement and Rehabilitation plans

Strengths

Key Weaknesses


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Low risk-diversification of business portfolio: Consists primarily of generation

assets Long and multi layered procurement process leading to long lead times and

process delays

Fragmented IT architecture

Gaps in HR systems such as performance management, rewards and

incentives and career development

Inadequate deployment of a strong knowledge management system thatcould assist in improving efficiency and effectiveness in all aspects of thebusiness

Hierarchy for decision making that affects responsiveness

Role ambiguity and dilution within different levels of the organisation

Key Weaknesses

Key Opportunities for NTPC


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Expand generation capacities by putting up thermal and hydro capacities,

maintaining the position of a dominant generating utility in the Indian power

sector

Broad base fuel mix by considering imported coal, gas, domestic coal, nuclear

power etc with a view to mitigate fuel risks and maintain long run

competitiveness

Lead the development and commercial deployment of non-conventional energy

sources especially in the distributed generation mode

Expand services for EPC, R&M and O&M activities in the domestic as well as

international markets

Backward integrate into fuel management to exercise greater control and

understanding of supply economics

Improve collections by trading, direct sale to bulk customers and active role incapacity allocation in new plants

Execute increased number of power plants that classify for Mega Power Project

status, thereby reducing the cost of projects and power generated

Key Opportunities for NTPC

Key Threats to NTPC


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Limited experience of operating in a truly liberalized environment with competition

Limited experience of operating in an independently regulated system

Delayed SEB reforms and continuing financial ill-health

SERCs might mandate lower off take for slow-reforming states

Redirecting power may be constrained by inter-regional connectivity

Possibility of issues of coal non-availability as coal supply agreements of CIL with the State

Gencos and IPPs evolve Lower than expected availability of gas

Stringent norms for approval of increase in capital costs for projects in event of time overrun

Stringent norms for the utilisation of ash generated by power stations in the absence oadequate demand from user industries and due to the high cost of transportation of ash

Stringent environmental norms in the future may add to the cost of generation

Key Threats to NTPC

NTPC BY 2017


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NTPC BY 2017

PRESENT 2011-12 2016-17

INSTALLED CAPACITY (MW) 29,894 ~ 50,000 ~ 75,000

COAL MINING(PRODUCTION)

-- 12 MTPA ~ 47 MTPA

TRADING

(UNITS TRADED)

3.3 BU

(2007-08)

10 BU 25 BU

DISTRIBUTION

(CAPACITY)-- 1,000 MW 2,000 MW

ASH BUSINESS

(METRIC TONNES)

~ 24,000

(2007-08)~2,800,000

PLAN UNDERPREPARATION

EMPLOYEE STRENGTH25547 ~ 30000 ~35000

MAN -MW RATIO 0.87 0.60 0.46

NTPC BY 2017 BROADBASED FUEL MIX


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HYDRO

4%

GAS

16%

COAL

80%

COAL 40000

GAS 8000

HYDRO 2000

COAL 24459

GAS 5435

COAL

82%

GAS

18%

RENEW

1%HYDRO

12%

NUCLEA

R

3%

GAS

14%

COAL70%

CAPACITY MIX - 2012

(50,000 MW)

CAPACITY MIX - 2017

(75,000 MW)

CAPACITY MIX - TODAY

(29,894 MW)

COAL 53000

GAS 10000

HYDRO 9000

NUCLEAR 2000

RENEWABLE 1000

INSTALLED CAPACITY CAGR FOR INDIA 8.5%INSTALLED CAPACITY CAGR FOR NTPC 10.4%

NTPC BY 2017 - BROADBASED FUEL MIX


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NTPC by 2017 - A SNAPSHOTPresent 2011-12 2016-17

PowerGeneration(Ownership- wise

in MW)

Owned 27,350 44,700 ~ 69,500

Through JVs/ Subsidiaries

1,794 5,054 ~ 5500

TOTAL 29,144 49,754 ~ 75,000

PowerGeneration(Fuel-wise inMW)

Coal based 23,709 (84%) 40,539 (81.5%) ~ 54,000 (72.0%)

Gas based 4,695 (16%) 7,295 (14.7%) ~9,000 (12.5%)

Hydro -- 1,920 (3.8%) ~ 9,000 (12.2%)

Nuclear -- -- ~ 2,000 (2.5%)

Renewables -- -- ~ 1,000 (0.8%)

Coal Mining (Production) -- 15 MTPA ~ 47 MTPA

Trading (Units Traded)2.66 BU

(provisional 2006-07)10 BU 25 BU

Distribution (Capacity) -- 1,000 MW 2,000 MW

S Sh f S i


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Exploit newbusiness

opportunities

Technologyinitiatives

Further enhance fuelsecurity

Maintain sector

leadership positionthrough rapid

capacity expansion

Nurturing HumanResource

Prudent financialstrategies

SustainableDevelopment

Snap Shot of Strategies


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29894

75000

50000

As on today 2012 2017

INSTALLED CAPACITY MULTI PRONGED APPROACH TO

CAPACITY ADDITION

GREENFIELD PROJECTS

BROWNFIELD EXPANSION

JOINT VENTURES

ACQUISITIONS DIVERSIFICATION IN RELATED BUSINESS

AREAS

HYDRO PROJECTS

COAL MINING

POWER TRADING

OIL / GAS EXPLORATION LNG VALUE CHAIN

RENEWABLE

NUCLEAR

MULTI-PRONGED GROWTH STRATEGY

NTPC-A Navratna Company surging ahead

Projects under construction 16,180 MW

Plans to become an


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29144

50000

75000+

TODAY 2012 2017

Total Installed capacity envisaged

Integrated Power Major

Multi pronged approach to capacityaddition

Greenfield projects Brownfield expansion Joint ventures Acquisitions

Diversification in related business

areas Hydro projects Nuclear projects Renewable Energy projects Coal Mining Power trading

Gas / Oil exploration LNG value chain Consultancy services

Growth Strategy

Projects under construction +12,000 MW

Projects under tendering /ordering

+8,000 MW

NTPC outlay from FY07 to FY12 shall be of the order of Rs.1,60,000 crores

Enhancing Fuel security


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Enhancing Fuel security

Strategies for coal sourcing

Fuel tie up for required quantities with Coal PSUsmore than 80% of NTPCscoal based capacity located at /near pit head. Import as and when required Develop coal mines 7 coal mines including 2 in JV Coal production to commence from 1st mine by 2007-08

Strategies for gas sourcing

Tie up with GAIL, PMT under Administered price mechanism Purchase for short term / from spot market Participate in gas value chain to secure long term supplies

Diversification into hydro

1,920 MW - under implementation 5,000 MW - Agreement signed for implementation

Exploring nuclear and renewable power options

Broad-basing the fuel mix


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The success of the planning process hinges on:

Vision of the CEO in setting the right destination,

Involving right people having right skills in the planning process,

Using right forecasting models/tools

Integrating implementation mechanism with the planning process

(Providing warning signals at right time to facilitate timely corrections)



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Thank you

PAN INDIA PRESENCE


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PAN-INDIA PRESENCE

REGION COAL GAS TOTAL

NORTHERN 7035 2312 9347

WESTERN 5860 1293 7893

SOUTHERN 3600 350 3950

EASTERN 6400 - 6400

JVS 314 740 1054

TOTAL 23209 4695 28644

RIHAND(2,000 MW)

SINGRAULI(2,000 MW)

FARIDABAD(430 MW)

DADRI(817 MW)

NCTPP(840 MW)

ANTA(413 MW)

AURAIYA(652 MW)

UNCHAHAR(840 MW)

TANDA(440 MW)

KAHALGAON(840 MW)

FARAKKA(1,600 MW)

KORBA(2,100 MW)

VINDHYACHAL(2,260 MW)GANDHAR

(648 MW)

KAWAS(645 MW)

TALCHER KANIHA(3,000 MW)

RAMAGUNDAM(2,600 MW) SIMHADRI

(1,000 MW)

KAYAMKULAM(350 MW)

TALCHER Thermal(460 MW)

KOLDAM(800 MW)

GAS POWER STATIONS

THERMAL POWER STATION

HYDRO POWER PROJECTS

TAPOVAN VISHNUGAD(520 MW)

RAMMAM III(90 MW)

LOHARINAG PALA

(600 MW)

LATA TAPOVAN(162 MW)

RUPSIABAGAR KHASIABARA(260MW)

ONGOING PROJECTS

SIPAT

BARH

BTPS(705 MW)

DIVERSIFIED CUSTOMER BASE-SUPPLIER TO MAJOR STATES

PARTICULARS NO OFPLANTS

CAPACITY (MW)

NTPC OWNED

- COAL 15 22895

- GAS / LIQUID

FUEL

7 3,955

TOTAL 22 26850

OWNED BY JOINTVENTURES

- COAL & GAS 4 1794

GRAND TOTAL 26 28644

CAPACITY AS ON 24-9-2007

REGIONAL SPREAD OF GENERATING FACILITIES

Details of Commissioned Projects of NTPC


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WESTERN REGION

Korba (Chhattisgarh) 2100 (3x200+3x500) Coal

Vindhyachal (M.P.) 3260 (6x210+4x500) CoalKawas (Gujarat) 645 (4x106+2x110.5) Gas

Jhanor-Gandhar (Gujarat) 648 (3x131+1x255) GasSipat (Chattisgarh) 500 (1x500) Coal

SUBTOTAL 7153 Contd...

Region/Project/State Capacity (MW) Unit Primary FuelNORTHERN REGION

Singrauli (U.P.) 2000 (5x200+2x500) Coal

Rihand (U.P.) 2000 (4x500) Coal

Dadri (NCTPP) (U.P.) 840 (4x210) Coal

Tanda (U.P) 440 (4x110) Coal

Unchahar (U.P.) 1050 (2x210+ 2x210+1x210) Coal

Badarpur (Delhi) 705 (2x210+3x95) Coal

Dadri (U.P.) 817 (4x131+2x146.5) Gas

Auraiya (U.P.) 652 (4x112+2x102) GasAnta (Rajasthan) 413 (3x88+1x149) Gas

Faridabad (Haryana) 430 (2x143+1x144) Gas

SUBTOTAL 9347

Details of Commissioned Projects of NTPC


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Region/Project/State Capacity (MW) Unit Primary FuelSOUTHERN REGIONRamagundam (A.P.) 2600 (3x200+4x500) Coal

Simhadri (A.P.) 1000 (2x500) Coal

Kayamkulam (Kerala) 350 (2x115+1x120) NaphthaSUBTOTAL 3950

GRAND TOTAL 28,644 MW

EASTERN REGIONFarakka (W.B.) 1600 (3x200+2x500) Coal

Talcher (Kaniha) (Orissa) 3000 (6x500) Coal

Kahalgaon (Bihar) 1340 (1x500+4x210) Coal

Talcher (Orissa) 460 (4x60+2x110) Coal

SUBTOTAL 6400

JOINT VENTURESCaptive Power Plants (CPPs) under JVs with SAIL

Durgapur (West Bengal) 120 (2x60) Coal

Rourkela (Orissa) 120 (2x60) Coal

Bhilai (Chhattisgarh) 74 (1x74) CoalOther Joint Venture Power Plants

RGPPL (Maharashtra) 1480 Gas/ Naphtha

SUBTOTAL 1794

NTPCs Corporate Plan (2002-2017) envisaged four key roles


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NTPC s Corporate Plan (2002 2017) envisaged four key rolesfor NTPC over the next fifteen year period

Best in class Strong financials

Setting benchmarksfor projectconstruction andoperation

Preferred supplier for

customers Employer of choice

Role 1

Sector Architect

Indias foremost

integrated electricutility with businessesspanning value chain

Continue to be 25%+of Indian generation

Assisting customers inspeedy sector reforms

Spearheadingdevelopment anddeployment of

advanced technologyin India

Role 2Catalyst for Indias

Growth

Driving developmentof state utilities

Catalysing privateinvestment in otherindustries

Improving globalcompetitiveness ofenergy intensiveindustries

Adding to investorwealth

Discharging socialresponsibilities

Role 3Overseas

Ambassador

Putting the Indianpower sector on theworld-mapCompetitive player

in global marketsBusiness alliances

with global playersWorld classefficiencies

Role 4

20172002

The Collaborative Approach to Planning


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External stakeholdersPlants/regional offices

12 diff plants duringvarious phases

Presentation in NBCPresentations to NEFI

Customers Regulator Ministry of Power Planning Commission CEA Lending institutions Suppliers Industry Players

Top Management

Corporate and ROs

Project-Team

Key organisational issues Validation of findings

Scope, EOC, R&D, PMI, WRO, NRO Information gathering, discussion ondata analysis and findings

125

sessions

12 plants -

Over 600 people met30 sessions

900

meetings

Integration of 15 year Long-term Corporate Plan with the annualbudgets, internal MoU targets and KPAs through 5 yearly rolling


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g , g g y y gBusiness Plan

Long term corporate plan

0 Years 15 Years5 Years 10 Years

MoU Targets

5 year rolling business plan

Strategic Link

Operational Link

Annual Budgets

PMS

Business planning, MOU, Budgeting distinct processes with interlinkages

Internal MoUs targets and KPAs shall be

derived from the first year targets of approved

Business Plan.

Time

e annua progress measuremen woufollow a four step approach


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follow a four step approach

I

dentifyissuesthatrequireattention

Annual Review

I IVII III

Apr. May. Jun. Jul. Aug. Sep Oct Nov. Dec. Jan. Feb. Mar

Monthly Meetings

Self-review by the Stations and CCfunctions

Minutes by Station to ReEDs

Emphasis on root-cause analysis andearly warnings

Early

Warning

Focus

Performance

Evaluation

Focus

Review by nodal points

ReEDs review L2 plans

Status report on progress from nodalpoints to Corporate Planning

Mid-year Review

Mid-year review by Corporateplanning

Exception reporting in ECM/MCM

Quarterly Review

Monthly Review

I II

Mid-year Review

Course

Correction

Focus

Annual Review

Annual Review

BPC would review progress of BPtargets and Internal MoU targets

Status inputs to be provided by nodal

points to Corporate Planning Status of progress would also be a

factor in determining BP targets forthe subsequent years

Quarterly Review

NTPC Going Forward


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NTPC Going Forward

FORWARD

INTEGRATION

LATERAL

INTEGRATION

RELATED

DIVERSIFICATION

Hydel Power~9,000 MW by 2017

Nuclear Power

2000 MW by 2017

Non-conventional1000 MW by 2017

R&M of powerstations

JV for Captive

Power

Power trading

PowerDistribution

Seven coal mine blocks(~50 MTPA cap.) allocated

One oil/gas block

allocated. NTPC requirement for

coal ~ 180 MTPA by 2012

Globalisation

Setting up of power plants

abroad International Consultancy

Sectoral Support

PIE

APDRP

Rural Electrification

Training under DRUM

NTPC ranks sixth among thetop ten global thermal generators


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43(AT Kearney Survey 2002)

TWH

top ten global thermal generators

501

175152 146 141 133 128 126

102 94

0

100

200

300

400

500

600

RAO-UES(RUS)

ESKOM(SAF)

KEPCO(SKR)

AEP(US)

SouthernCo(US) NTPC

ENEL(ITA)

TEPCO(JAP)

TVA(US)

RWE(GER)

NTPC Asias Second Largest Power Generator


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NTPC Asia s Second Largest Power Generator

ADBs Confidential Information Memorandum, shows that:

NTPC is Asias second largest power generator, with high marketcapitalization and strong balance sheet.

USD MM Country Market Cap Capacity(MW)

Sales EBITDAMargin

Debt/EBITDA

TL/TNW

Korea Electric Power Korea 26,940 56,000 24,654 40% 2.1 0.79

NTPC Limited India 20,436* 24,249 6,396 34% 2.1 0.6

Huaneng Power Intl China 8,225 15,166 4,999 33% 3.3 1.33

Datang Intl Power China 3,225 2,400 2,244 40% 5.3 2.52

Senoko Power Singapore NA 1,930 1,778 12% 0.9 0.63

Huadian Power Intl China 1,608 6,388 1,658 28% 4.9 1.75

Ratchburi Elec Thailand 1,482 3,654 1,132 21% 3.5 1.22

Tata Power India 2,572 2,340 1,078 24% 3.3 1.28

YTL Power Malaysia 2,896 1,212 997 57% 6.2 3.22

China Resources Power Hong Kong 2,774 1,545 764 31% 6 1.17

Malakoff Malaysia 2,224 4,743 576 58% 7.9 4.2

Source : Moody KMW Credit Monitor. Company Data. Data for other companies is latest available financial year end.

*As on Aug. 1, 2006.

NTPC IN FORBES GLOBAL 2000


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Company Company Ranking in India

Rank in

India

Forbes

2000 Rank Name Industry

Sales

($bil)

Profits

($bil)

Assets

($bil)

Market

Value

($bil)

1 256 ONGC Oil & Gas 13.27 3.28 18.56 36.52

2 298 RIL Oil & Gas 15.08 1.75 18.61 22.26

3 310 SBI Banking 12.47 1.25 143.69 10.4

4 311 IOC Oil & Gas 30.13 1.25 19.34 14.62

5 463 NTPC Utility 5.38 1.33 15.45 24.36

6 656 ICICI Bank Banking 3.9 0.42 40.81 12.33

7 764 SAIL Materials 6.83 1.58 6.61 5.93

8 1087 BPCL Oil & Gas 14.75 0.35 6.06 2.94

9 1142 TISCO Materials 3.66 0.82 4.05 5.37

10 1163 TCS Software 2.23 0.45 1.21 18.34

- A COMPARISION OF TOP INDIAN COMPANIESFOR 2005

SWOT ANALYSIS-Business Environment Appraisal


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Power sector in India

Economic Scenario


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Indian Economy on a growth path , broad consensus exists on economic

reforms

4.4%

5.8%

3.8%

8.5%

7.5%

9.0%9.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

FY01 FY02 FY03 FY04 FY05 FY06 FY07

GDP Growth

4254

75

113

142152

199

0

50

100

150

200

250

FY01 FY02 FY03 FY04 FY05 FY06 FY07

Forex Reserves Over $290 Bn

Source: Economic Survey and RBI

(as on 31.03.2008)

Per capita Consumption remains low


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National Electricity Policy aims at per capita availability of

1000 kwh by 2012

2,701

14,240

8,459

7,442

6756

6,425

2,340

1,684

618665

World Average

USA

Japan

Germany

UK

Russia

Brazil

China

India

In 2006Figures in kwh

Source: UNDP Human Development Report 2007-08 Data for 2004

A deficit scenario persists(i B )


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507523

546559

591

631

691

737

467

483498

519

548

579

624

665

450

500

550

600

650

700

750

2001 2002 2003 2004 2005 2006 2007 2008

REQUIREMENT AVAILABILITY

7.8%7.5%

8.8%7.1%

7.3%

8.3%

9.6%

DURING 2007-08, PEAKING SHORTAGES WERE 16.6%

9.8%

(in Bus)

Power Infrastructure in India


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Fuel wise break-up (MW)

(Excluding captive capacity of 14636 MW connected to grid)

Thermal 91,907 64.2%

Hydro 35,909 25.1%

Nuclear 4,120 2.8%

Renewable 11,125 7.9%

TOTAL 143,061 100.0%

Sector wise break-up (MW)

State

Sector52%

Private

Sector

14%

CentralSector

34%

Total generation in 2007-08 704.45 BU

Large Capacity addition is required to meet the demand


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National Electricity Policy

Mar'07 2012 2022 2032

Generating Capacity needs to grow rapidly withthe current rate of growth of economy

Source: Ministry of Power, Integrated Energy Policy GOI

By 2012

Per capita consumption 1,000units

Installed capacity over 200 GW

Spinning reserves 5%

Inter-regional transmissioncapacity 30 GW with National Gridin place (currently 9.5 GW)

Energy efficiency/ conservationsavings about 15%

Total rural household

electrification by 2009 (currentlyonly 44%)

Quality and reliable power supply

132 GW220 GW

425 GW

778GW

Energy Resources of India

Fossil Fuels


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24 33

242

Coal Crude Oil Natural Gas

R/P ratio

Reserves Production

Coal (proved) MT 92,445 382

Crude oil (MT) 786 33

Natural Gas (BCM) 1101 @ 33

Source: *CIL, IEP **Central Electricity Authority @ IEP

Y

ears


Hydro


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(As Assessed by CEA):

Potential 150,000 MW

Present Installed Capacity 34,654 MW

Balance (Recoverable) 115,346 MW

Hydro

Source: IEP

Does not include pump storage potential

Generation Options going forward


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Issues / fuel Availability /potential

Capitalcosts

Fuel costs Gestationperiod

Technologymaturity

Environmental issues

R&R issues

Coal High canmeet demand

Medium Low -Medium Medium Good Yes Low

Hydro Good can besubstantial

High Very low High Good No Very high

Nuclear High forThorium,limited foruranium

High Low High Low forthorium

No Low

Gas / LNG Low Low Very high Low Good No Low

The dependence on coal for generation of power, is quite high in India

The predominant position of coal is expected to continue going forward


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NTPC in the

Power Market

NTPC - Today


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Current Business

THE LARGEST POWER GENERATION COMPANY IN INDIA, WITHCOMPREHENSIVE IN-HOUSE CAPABILITIES IN BUILDING AND OPERATINGPOWER PROJECTS

CURRENT OPERATING CAPACITY 29894 MW(INCLUDING JV)

18 COAL BASED AND 8 GAS BASED POWER PLANTS

SETTING UP HYDRO BASED POWER PLANTS

DEVELOPING COAL MINES FOR CAPTIVE USE

EXPLORING OIL / GAS BLOCKS IN CONSORTIUM WITH PARTNERS ONE

PETROLEUM BLOCK ALLOCATED IN ASSAM.

SUBSIDIARY & JV COMPANIES FOR TAKING UP GENERATION, POWERTRADING, HARNESING RENEWABLE RESOURCES,DISTRIBUTION BUSINESSAND FOR SETTING UP OF SMALL HYDRO PLANTS (


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TOTAL CAPACITYAS ON 31.03.2008

ALL

INDIA

NTPC

NTPC27,350*

MW19.1 %

ofAll

India143,061

MW

19.1%

GENERATION2007-08

ALL

INDIA

NTPC

NTPC200.864*

BUs28.5%

ofAll

India704.451

BUs

28.5%

* excluding joint ventures.

Contributes more than one-fourth of Indias total power generationwith less than one-fifth capacity.

Spread across all major States


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58

Region Coal Gas Total

Northern 7035 2312 9347

Western 6360 1293 7653

Southern 3600 350 3950

Eastern 6900 - 6900

JVs 564 1480 2044

Total 24459 5435 29894

RIHAND(2,000 MW)

SINGRAULI(2,000 MW)

FARIDABAD(430 MW)

DADRI(817 MW)

NCTPP(840 MW)

ANTA(413 MW)

AURAIYA(652 MW)

UNCHAHAR(840 MW)

TANDA(440 MW)

KAHALGAON(840 MW)

FARAKKA(1,600 MW)

KORBA(2,100 MW)

VINDHYACHAL(2,260 MW)GANDHAR

(648 MW)

KAWAS(645 MW)

TALCHER KANIHA(3,000 MW)

RAMAGUNDAM(2,600 MW)

SIMHADRI(1,000 MW)

KAYAMKULAM(350 MW)

TALCHER Thermal(460 MW)

KOLDAM(800 MW)

GAS POWER STATIONS

THERMAL POWER STATION

HYDRO POWER PROJECTS

TAPOVAN VISHNUGAD(520 MW)

RAMMAM III(90 MW)

LOHARINAG PALA(600 MW)

LATA TAPOVAN(162 MW)

RUPSIABAGAR KHASIABARA(260MW)

ONGOING PROJECTS

SIPAT

BARH

BTPS(705 MW)

Regional Spread of Generating Facilities

No of plants Capacity

( MW)

NTPC OwnedCoal 15 23895

Gas/Liquid fuel 7 3955

Total 22 27850

Owned by JVs

Coal & Gas 4 2044

Total 26 29894

BONGAIGAON(750 MW)

VALLUR((1000 MW)

MAUDA((1000 MW)

RGPPL(1480 MW)

BUSINESS STRENGTH PROJECT IMPLEMENTATION SKILLS


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59

BAGGING OF IPMA INTERNATIONAL PROJECT MANAGEMENT AWARD

2005 FOR SIMHADRI PROJECT A TESTIMONY OF PROJECT MANAGEMENT

ABILITIES OF THE COMPANY

NTPC PROJECTENGINEERINGCOMPONENTS

PREPARATION &FINALISATION OFFR

ASSISTANCEDURING PLANTCOMMISSIONING

PREPARATION &FINALIZATIONOF PDM

TECHNICAL EVALUATION& FINALIZATION OFTENDERS

PACKAGING &PREAWARDACTIVITIES

DETAILED PROJECTENGINEERING

ENGG TIME & COSTCONTROL

SUPPORT TO SITEDURINGPROJECTEXECUTION

SITESUPPORTDURINGO&M

STAGE

STATIONR&M

O&M FEEDBACK

NTPC PROJECT ENGG. SYSTEMS- 360 DEG APPROACH

Sustaining Cost leadership


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60

1.45

0.730.72

1.57

0.82

0.75

1.43

0.84

0.59

1.47

0.85

0.62

1.47

0.89

0.58

1.52

0.96

0.56

1.64

1.14

0.5

1.75

1.23

0.52

1.84

1.28

0.56

0.3

0.4

0.5

0.6

0.7

0.8

0.91

1.1

1.2

1.3

1.4

1.5

1.6

1.7

1.8

1999-

2000

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Avg. Tariff Fuel Cost Fixed Cost

All figures in Rs/ KwH

NTPC supplies power at the lowest costs



56/104

61

(AT Kearney Survey 2002)

TWH

501

175152

146 141 133 128 126102 94

0

100

200

300

400

500

600

RAO-UES(RUS)

ESKOM(SAF)

KEPCO(SKR)

AEP(US)

SouthernCo(US)NTPC

ENEL(ITA)

TEPCO(JAP)

TVA(US)

RWE(GER)

Business strength - Consistent Growth


57/104

62

141149

159

171

189

201

2003 2004 2005 2006 2007 2008

2093521435

2343523935

26350

27350

2003 2004 2005 2006 2007 2008

Capacity (MW) Generation (Billion Units)

Excluding JV projects

NTPC HAS CONTRIBUTED TO OVER 28% OF GENERATING CAPACITY ADDITION IN THECOUNTRY DURING LAST 25 YEARS

Business strength - Operational efficiency

Continuous Improvement of Capacity Utilization


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63

Unchahar Plant PLF

18.0 95.7

050100150

Taken

over

in

2006

%

Talcher Plant PLF

18.7

86.35

0

20

40

60

80

100

Taken over in

1995

2008

%

p p y

72.7

84.41

88.79

74.3

87.51

91.2

73.6

87.54

89.91

76.8

89.43

90.09

78.6

92.24 92.12

60

63

66

69

72

75

78

81

84

87

90

93

2003- 2004 2004- 2005 2005- 2006 2006- 07 2007- 08

All India PLF NTPC PLF NTPC AvF

Turn Around Ability

Tanda Plant PLF

14.9

91.66

0

20

40

60

80

100

Taken over in

2000

2008

%

Unchahar Plant PLF

18.0

97.7

0

20

40

60

80

100

120

Taken over in

1992

2008

%

During the year 2007-08, NTPCs

coal based stations achieved aPLF of more than 92%. Dadri

(Coal) recorded highest ever PLF

of 98.02%.

Achieved turn-around in performance of stations taken over from State Electricity Boards through application ofand strict adherence to well laid down Management and Operation and Maintenance principles.

Business strength - Human Resources


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64

GREAT PACE TO WORK 2008-NTPC has been ranked number one in thespecial category the Best Workplace for Large Organisations and number

eight(8) overall for the year 2008.

Generation per Employee

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0MU 8.48

0.95


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65

NTPC Shares

Consolidated Shareholding Pattern

Authorised Capital : Rs.10,000 crores


61/104

Issued, Subscribed & Paid-up : Rs.8,245 crores

S.No. Category No. of cases Total Shares % to equity

1. Government of India 1 7379634400 89.499318

2. Foreign Institutional Investors 164 569914122 6.911850

3. Resident individuals 556425 140312270 1.701690

4. Indian Financial Institutions 14 63868537 0.774590

5. Mutual Funds 72 49360656 0.598640

6. Bodies Corporates 3188 29686098 0.360029

7. Banks 33 5571292 0.067568

8. HUF 9370 3557715 0.043148

9. Non-Resident Indians 4064 2647466 0.032108

10. Trusts 68 479083 0.005810

11. Clearing Members 369 387287 0.004697

12. Directors and Relatives 13 44946 0.000545

13. Transit 1 314 0.000003

14. Foreign Nationals 1 214 0.000003

T o t a l 573783 8245464400 100%


62/104

67

NTPC RANKED #1 INDEPENDENT POWER PRODUCER IN ASIA


63/104

68

TOP INDEPENDENT POWER PRODUCER COMPANIES 2007

RANK COMPANY COUNTRY

1 TXU USA

2 CONSTELLATION ENERGY USA

3 MIRANT USA

4 ATEL SWITZERLAND

5 NTPC INDIA

6 EDISON SPA ITALY

7 HUANENG POWER CHINA

8 INTERNATIONAL POWER UK

9 CALPINE CORP USA

10 DRAX UK

FIRST IN ASIA

Source: PLATTS GLOBAL ENERGY COMPANY RANKINGS

LARGEST POWER UTILITIES IN ASIA-DATAMONITOR 2006


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69

RANKING BYCAPACITY

COMPANY COUNTRY CAPACITY(MW)

SALES(TWh)

RANKINGBY SALES

2 KEPCO KOREA 56053 322 1

1 TEPCO JAPAN 61387 289 2

4 TAIWAN POWER TAIWAN 36122 175 3

7 NTPC INDIA 26194 171 4

6 HUANENGPOWER

CHINA 28187 160 5

3 KANSAIELECTRIC

JAPAN 41750 147 6

5 CHUBU JAPAN 32586 131 7

Forbes Global 2000 list for 2007Asia Utility Rankings


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70

Global Rank Company

Sales

($ Bil) Profits ($Bil) Assets ($Bil)

Market Value

($Bil)1 143 Tokyo Electric Power 44.96 2.54 112.46 34.93

2203 Korea Electric Power 29.6 2.4 83.63 22.72

3 273 Kansai Electric Power 22.1 1.26 55.75 22.59

4 353 Chubu Electric Power 18.84 0.77 47.47 19.74

5 411 NTPC 7.84 1.6 20.34 41.57

6 564 Kyushu Electric Power 11.98 0.56 33.48 11.98

7574 CLP Holdings 6.51 1.36 16.97 19.04

8 583 Tohoku Electric Power 14.71 0.45 33.31 11.47

9 624 Tokyo Gas 11.72 0.86 14.17 12.04

10 625 Tenaga Nacional 6.66 1.16 19.34 12.27

Released on April 2nd2008

UP FROM 494TH RANK LAST YEAR 6TH LARGEST COMPANY IN INDIA

NTPC Ltd. - An Employer of ChoiceGreat Places to Work Institute, India Economic Times Survey


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71

Sl.No. Name of Company Industry Ownership

1. RMSI Private Limited IT (Consulting & Software) Foreign

2. Marriott Hotel, India Hospitality Foreign

3. Google India Pvt. Ltd. IT (Software) Foreign

4. Agilent Technologies IT (R&D) Indian

5. Classic Stripes Pvt. Ltd. Mfg. Rubber & Plastic Products Indian

6. American Express, India Financing Services & Insurance Foreign

7. Cadbury India Ltd. FMCG Foreign

8. NTPC Ltd. Power Indian

9. Godrej Cons. Products Ltd. FMCG Indian

10. Hilti India Private Ltd. Construction & Real Estate Foreign

NTPC was ranked Number-1 in the special category Best Work Places for LargeOrganisations and NTPC is the only Public Sector Company among the top 25Companies.

Great Places to Work for-2008

DIVIDEND PERFORMANCE


67/104

72

2004-05 2005-06 2006-07

Share Capital 8245 8245 8245

Dividend Rs Cr 1978.92

24%

2308.73

28%

2638.56

32%

Net Profit 5807.01 5820.20 6864.70

Rs./ Cr.

Human Resources The Performer


68/104

73

24,000 HIGHLY TRAINEDEMPLOYEES

SENIOR EXECUTIVES POSSESSEXTENSIVE EXPERIENCE OF THEINDUSTRY

SYSTEMATIC TRAINING ENSURES 7MAN DAYS TRAINING PER

EMPLOYEE PER YEAR TIE-UPS WITH LEADING

INSTITUTIONS LIKE IIT DELHI, BITSPILANI, MDI GURGAON

TRAINING SIMULATORS FOR 200MW / 500 MW UNITS HELPS

EMPLOYEES SHARPEN THEIRSKILLS

Improving Productivity

7.81Generationper Employee

4.1

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

94-95

95-96

96-97

97-98

98-99

99-00

00-01

01-02

02-03

03-04

04-05

'05-06

MU

SEVENTH GREAT PLACE TO WORK FOR IN INDIA FOR THE YEAR 2006 IN A SURVEYCONDUCTED BY GROW TALENT AND BUSINESS WORLD

Robust Financial Performance


69/104

74

FISCAL2008

FISCAL2007

% CHANGE

TOTAL INCOME 40011 35377 13.1%

SALE OF ENERGY 36946 32535 13.5%

OTHER INCOME 3065 2842 7.8%

TOTAL EXPENDITURE 29481 26473 11.4%

FUEL 22020 19818 11.1%

DEPRECIATION 2139 2075 3.1%

INTEREST & FINANCECHARGES

1798 1859 (3.2%)

PBT 10530 8907 18.2%

TAX 2840 2042 39.1%

PAT 7415 6865 8.0%

RS CRORE

Strong Financial Performance


70/104

75

(Rs. / Crs.)

Sl No Description FY 2007 FY 2006 FY 2005

1. Total Income 35,381 29,339 26,281

2. Profit after Tax 6,864 5,820 5,807

3. Net Worth 48,597 44,959 41,776

4. Capital Employed 56,433 52,357 50,053

5. Dividend (%) * 32 28 24

6. Return on net worth (%) 14.13 12.95 13.90

7. Debt to Equity 0.50 0.45 0.41

* includes final dividend of 8% to be approved by the Shareholders

Bouquet of Services - Tailor-made for Power Sector


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76

ConstructionManagement

ProjectManagement

Inspection

Contracts &Procurement

Project

FormulationTraining

O&MServices

QualityAssurance

EngineeringServices

NTPC Fleet

microcosm of worldwidedesign practice


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77

NTPC owns equipment from practically all major power plant suppliers

GTs for CCPPs

ABB

ABB

GE

Siemens

MHI

BHEL Siemens)

BHEL (GE)

13 D2

13 E2

PG 9151

V 94.2

701D

94.2A

9E

Anta

Gandhar

Kawas

Dadri

Auraiya

Faridabad

Kayamkulam

Coal fired Steam Generators

CE/BHEL

ANSALDO

STEIN

ICL

CE/BHEL

ANSALDO

RUSSIAN

B & W

500 MW

500 MW

500 MW

500 MW

200 MW

200 MW

200 MW


73/104

78

*One Unit Commissioned during X Plan**Under Joint Venture

Project (Fuel) / State TotalCapacity

CapacityDuring XI Plan

Kahalgaon-II, Phase-I (Coal) / Bihar 1000* 500

Kahalgaon-II, Phase-II (Coal) / Bihar 500 500Sipat-II (Coal) / Chhattisgarh 1000 1000

Sipat-I (Coal) / Chhattisgarh 1980 1980

Barh(Coal) / Bihar 1980 1980

Bhilai (Coal) / ChhattisgarhJV with SAIL

500 500

NCTPP-II, Dadri (Coal) / U.P (Unit-5) 980 980

Korba-III (Coal) / Chhattisgarh 500 500Farakka-III (Coal) / West Bengal 500 500

Simhadri-II (Coal)/ Andhra Pradesh 1000 1000

Aravali Power Project Jhajjar (Coal), Haryana** 1500 1500

Koldam (Hydro) / Himachal Pradesh 800 800

Loharinag Pala (Hydro) / Uttaranchal 600 600

Tapovan-Vishnugad (Hydro)/Uttranchal 520 520Ennore (Coal), Tamil Nadu* * 1000 1000

Sub Total (I) 14360 13860

Capacity Addition during XI Plan- Projects for which Main Plant Bids have beenreceived/ invited and FR is under preparation

(Fi i MW)


74/104

(Figures in MW)

* Under Joint Ventures** Subject to signing of GSPA. Matter sub-judice.

Project (Fuel) / State TotalCapacity

Capacityduring XI Plan

Bongaigaon (Coal), Assam 750 750Mauda (Coal), Maharashtra 1000 1000

Barh-II (Coal), Bihar 1320 1320

Nabinagar (Coal), Bihar* 1000 1000

North Karanpura (Coal), Jharkhand 1980 1320

Kawas-II (Gas), Gujarat** 1300 1300

Jhanor Gandhar-II (Gas), Gujarat** 1300 1300

Sub Total (II) 8650 7990

Rihand-III (Coal), U.P. 1000 500

Sub Total (III) 1000 500

NTPC overseas foray


75/104

80

500 MW COAL BASED POWER PLANT IN SRI LANKA

MOA SIGNED WITH GOVT OF SRI LANKA AND CEYLON ELECTRICITY BOARDIN DECEMBER 2006 FOR SETTING UP A 500 MW COAL BASED POWER PLANT

SITE UNDER IDENTIFICATION

POWER PLANTS IN NIGERIA

MOU UNDER DISCUSSION WITH GOVT OF NIGERIA FOR SETTING UP

A GAS BASED POWER PLANT

A COAL BASED POWER PLANT

GOVT OF NIGERIA TO ALLOCATE LNG /OIL FOR EXPORT TO INDIA

Strong Government Support


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81

NAVRATNA STATUS:

TO THE COMPANY IN MAKING INVESTMENT DECISIONS, FORMATION OF JVS /SUBSIDIARIES, ETC

TRIPARTITE AGREEMENTS:

FOR ONE TIME SETTLEMENT OF OUTSTANDING DUES AND FUTURE PAYMENT

SECURITY

COAL MINES ALLOCATION:TO NTPC TO IMPROVE FUEL SECURITY AND ECONOMICS OF POWER COSTS

NODAL AGENCY FOR SECTORAL IMPROVEMENT

PARTNERSHIP IN EXCELLENCE, APDRP, TRAINING OF UTILITY PERSONNEL, RURAL

ELECTRIFICATION, ETC

NTPCAsias Second Largest Power Generator

USD MM Country Market Cap Capacity (MW) Sales EBITDA Margin Debt/ EBITDA


77/104

83

y p p y ( ) g

Korea Electric Power Korea 26,940 56,000 24,654 40% 2.1

NTPC Limited India 20,436* 24,249 6,396 34% 2.1

Huaneng Power Intl China 8,225 15,166 4,999 33% 3.3

Datang Intl Power China 3,225 2,400 2,244 40% 5.3

Senoko Power Singapore NA 1,930 1,778 12% 0.9

Huadian Power Intl China 1,608 6,388 1,658 28% 4.9

Ratchburi Elec Thailand 1,482 3,654 1,132 21% 3.5

Tata Power India 2,572 2,340 1,078 24% 3.3

YTL Power Malaysia 2,896 1,212 997 57% 6.2

China Resources Power Hong Kong 2,774 1,545 764 31% 6

Malakoff Malaysia 2,224 4,743 576 58% 7.9

NTPC IN FORBES GLOBAL 2000- A COMPARISION OF TOP ASIAN ELECTRIC UTILITIES FOR 2006


78/104

84

Utility Utility Ranking in Asia

Rank in

Asia

Forbes

2000 Rank Name Country

Sales

($bil)

Profits

($bil)

Assets

($bil)

1 98

Tokyo Electric

Power Japan 47.09 2.11 124.98

2 151

Korea Electric

Power

South

Korea 23.14 2.78 69.89

3 251

Chubu Electric

Power Japan 19.9 0.85 51.69

4 253

Kansai Electric

Power Japan 24.38 0.65 61.05

5 380

Kyushu Electric

Power Japan 13.14 0.83 36.71

6 494 NTPC Ltd. India 5.38 1.33 15.45

NTPC IN FORBES GLOBAL 2000


79/104

85


Rank in

India

Forbes


Sales

($bil)

Profits

($bil)

Assets

($bil)

Market

Value

($bil)

1 256 ONGC Oil & Gas 13.27 3.28 18.56 36.52

2 298 RIL Oil & Gas 15.08 1.75 18.61 22.26

3 310 SBI Banking 12.47 1.25 143.69 10.4

4 311 IOC Oil & Gas 30.13 1.25 19.34 14.62

5 463 NTPC Utility 5.38 1.33 15.45 24.36


7 764 SAIL Materials 6.83 1.58 6.61 5.93

8 1087 BPCL Oil & Gas 14.75 0.35 6.06 2.94

9 1142 TISCO Materials 3.66 0.82 4.05 5.3710 1163 TCS Software 2.23 0.45 1.21 18.34

NTPC IN FORBES GLOBAL 2000- A COMPARISION OF TOP INDIAN COMPANIES FOR 2005



80/104

86

(AT Kearney Survey 2002)

TWH

501

175152 146 141

133 128 126102 94

0

100

200

300

400

500

600

RAO-UES(RUS)

ESKOM(SAF)

KEPCO(SKR)

AEP(US)

SouthernCo(US)NTPC

ENEL(ITA)

TEPCO(JAP)

TVA(US)

RWE(GER)

As envisaged in Corporate Plan NTPC has diversified into variousrelated areas and is launching new initiatives for ensuring growth


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87

FORWARD

INTEGRATION

(Distribution Business,

Power Trading)

LATERAL INTEGRATION

(Hydro Projects, Small Hydel)

BACKWARD INTEGRATION

(Captive Mining of Coal, Coal

Washery, Sourcing of LNG)

DIVERSIFICATION

(JVs & Strategic

Alliances)

CAPITAL COST (excluding IDC & Taxes)NTPC V/s IPPs / INTERNATIONAL

Capital Cost (excl. IDC & Taxes) for the ongoing/new projects being set up by NTPC


82/104

88

Capital Cost in US$/KW excluding IDCand Taxes & Duties

NTPC Ongoing/X Plan Projects 514 761

Europe* 473 1605

USA* 722 1314China* 683 928

Malaysia* 805

IPPs 771 936

is in the range of US$ 500/KW to US$ 750/KW. Present day average internationalcost of power projects is in the range of US$ 700/KW to US$ 1100/KW

*As per AT Kearney report on International capital cost for plants > 400MW

LEVELISEDCOST OF GENERATION


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89

Source: Deutsche Bank Report August 2001

*AVERAGE OF LEVELISED COST OF GENERATION OF X PLAN / ONGOINGNTPC PROJECTS RANGING FROM 2.47 to 4.58 Cents/kwh

Country Cents/kWh

USA 4.45

W. Europe 4.25

China 3.63

Japan 4.72

NTPC 3.07*

Enhanced Delegations of Powers to Navratnas


84/104

90

Navratna PSEs incl. NTPC have been delegated powers as under :

Incur capital expenditure on purchase of new items or for replacementwithout any monetary ceiling.

Establish Financial JVs and wholly owned subsidiary in India or abroadwith the stipulation that equity investment of the PSE should be limitedto Rs.200 Crs. in any one project, 5% of the net worth of the PSE in

any one project and 15% of the net worth of the PSE in all JVs Enter into technology JVs or strategic alliances

Obtain by purchase or other arrangements technology and know-how

Establish org. restructuring, opening up of offices abroad, creating newactivity/ profit centers

Creation and winding up of all posts including and upto those of non-boardlevel directors (Functional Directors)

INVESTMENT APPROVALEnhanced Delegations of Powers to Navratnas(From July, 1997)

(CONTD/...)

Enhanced Delegations of Powers to Navratnas


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91

Structure and implement schemes relating to personnel & HRM,training, voluntary or compulsory retirement etc.

Raise debt from the domestic capital markets

Borrow from International market subject to approval of RBI/Deptt. of

Economic Affairs through Adm. Ministry

CONDITIONS APPLICABLE FOR NAVRATNA POWERS


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92

Proposals must be with an analysis of relevant factors and

quantification of the anticipated results and benefits. Riskfactors if any must be clearly brought out.

Government Directors, Finance Director and the concernedFunctional Director (s) must be present when major decisions aretaken, especially when they pertain to investments, expenditure or

organisational/ capital restructuring. Decisions on such proposals should preferably be unanimous.

Otherwise a majority decision may be taken but at least two-thirdsof the Directors should be present, including those mentionedabove, when such a decision is taken.

CONDITIONS APPLICABLE FOR NAVRATNA POWERS CONTD.


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93

No financial support or contingent liability (incl. GOI Guarantee) onthe part of the Government should be involved.

Establish transparent and effective systems of internal monitoring, includingthe establishment of Audit Committee of the Board with membership of non-official Directors

Proposals with substantial financial / managerial commit-ments or having a

long term impact on the structure and functioning, should be prepared by orwith the assistance of professionals and experts and should be appraised,in suitable cases, by financial organisations with expertise in the areas. Theappraisal should also preferably be by institutions funding through loans orequity participation.

CONDITIONS APPLICABLE FOR NAVRATNA POWERS CONTD.


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94

Exercise of authority to enter into technology joint ventures and strategic

alliances to be in accordance with the Government guidelines as may be

issued from time to time.

Board of the PSE to be restructured by inducting non official Directors as the

first step before the exercise of the enhanced delegation of authority

PSE not to depend upon budgetary support or Government guarantees.

Resources for implementing the programmes should come from internal

resources or through other sources, including the capital markets.

DPE vide letter dt. 11.2.03 clarified that delegated powers would not include

the power to decide about merger and acquisition

NTPCAsias Second Largest Power Generator

ADBs Confidential Information Memorandum, shows that:


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95

ADB s Confidential Information Memorandum, shows that:

NTPC is Asias second largest power generator, with high market

capitalization and strong balance sheet.

USD MM Country Market Cap Capacity(MW)

Sales EBITDAMargin

Debt/EBITDA

TL/TNW

Korea Electric Power Korea 26,940 56,000 24,654 40% 2.1 0.79

NTPC Limited India 20,436* 24,249 6,396 34% 2.1 0.6

Huaneng Power Intl China 8,225 15,166 4,999 33% 3.3 1.33

Datang Intl Power China 3,225 2,400 2,244 40% 5.3 2.52

Senoko Power Singapore NA 1,930 1,778 12% 0.9 0.63

Huadian Power Intl China 1,608 6,388 1,658 28% 4.9 1.75

Ratchburi Elec Thailand 1,482 3,654 1,132 21% 3.5 1.22

Tata Power India 2,572 2,340 1,078 24% 3.3 1.28

YTL Power Malaysia 2,896 1,212 997 57% 6.2 3.22

China Resources Power Hong Kong 2,774 1,545 764 31% 6 1.17

Malakoff Malaysia 2,224 4,743 576 58% 7.9 4.2

Source : Moody KMW Credit Monitor. Company Data. Data for other companies is latest available financial year end.

*As on Aug. 1, 2006.

NTPC IN FORBES GLOBAL 2000- A COMPARISION OF TOP INDIAN COMPANIES

FOR 2005


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96


Rank in

India

Forbes


Sales

($bil)

Profits

($bil)

Assets

($bil)

Market

Value

($bil)

1 256 ONGC Oil & Gas 13.27 3.28 18.56 36.52

2 298 RIL Oil & Gas 15.08 1.75 18.61 22.26

3 310 SBI Banking 12.47 1.25 143.69 10.4

4 311 IOC Oil & Gas 30.13 1.25 19.34 14.62

5 463 NTPC Utility 5.38 1.33 15.45 24.36


7 764 SAIL Materials 6.83 1.58 6.61 5.93

8 1087 BPCL Oil & Gas 14.75 0.35 6.06 2.94

9 1142 TISCO Materials 3.66 0.82 4.05 5.37

10 1163 TCS Software 2.23 0.45 1.21 18.34

NTPC Ltd. - An Employer of ChoiceBusiness World Grow Talent Survey


91/104

97



1. RMSI IT (Consulting & Software) Foreign

2. Classic Stripes Auto Ancilliaries Indian

3. Google India IT (Software) Foreign

4. Federal Express Logistics Foreign

5. Marriott International Hospitality Foreign

6. MindTree Consulting IT (Consulting) Indian

7. NTPC Power Indian

8. SAP India Labs IT (Software) Foreign

9. American Express India IT (Services) Foreign

10. Freescale Semiconductors India Manufacturing (Electronics) Foreign

NTPC is the only Public Sector Company among the 25 Companies for which Rankingswere published.

Partnership in Excellence Programme- Excellent Post-PIE Improvements

Improvement in PLF


92/104

98

Pre-PIE(Apr-Aug. 05)

Post-PIE(Apr.-Jun.07)

Station Capacity(MW)

PLF(%) PLF(%)

Improvement(%)

Tenughat 420 33.80 66.12 32.32

Bokaro B 630 45.21 75.42 30.21

Harduaganj 160 26.79 51.68 24.89

Patratu 170 24.76 47.73 22.97Ennore 340 29.45 51.55 22.1

Rajghat Power House 135 46.02 65.49 19.47

Chandrapura 390 61.58 73.64 12.06

Durgapur DPL 220 59.38 65.73 6.35

Panki 210 52.66 58.90 6.24

Paricha 220 44.39 44.88 0.49

Durgapur DVC 350 62.31 61.61 ---

Before PIE (Apr.-Aug.05) and After PIE (Apr.-Jun.07)

NTPCIndias Largest Power Generator As per Dun & Bradstreet India 2006 publication Indias Top 500

Companies NTPC is ranked 1st in the Power Generation, Transmission, Distribution.

NTPC i k d 3rd N t W th 4th N t P fit & 10th t t l


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NTPC is ranked 3rd as per Net Worth, 4th as per Net Profit & 10th as per totalincome among Indias top 500 companies.

Rank Company Name Sector NetWorth

(Rs. Crs.)

Total

Income(Rs.Crs.)

Net Profit

(Rs.Crs.)

1 Bharat Sanchar Nigam Ltd. Telecom Services 72757 36090 2147

2 Oil and Natural Gas Corporation Ltd. Oil and Gas Exploration 46182 46633 12983

3 NTPC Ltd. Power Generation, Transmission, Distribution 42108 25521 5807

4 Reliance Industries Ltd. Oil Refining and Marketing 36657 67046 7572

5 Indian Oil Corporation Ltd. Oil Refining and Marketing 25874 140805 4891

6 State Bank of India Banks 24072 39548 4305

7 National Bank for Agriculture and Rural Development FIs / NBFCs / Financial Services 23806 3939 1033

8 Nuclear Power Corporation of India Ltd. Power Generation, Transmission, Distribution 19112 3967 1705

9 ICICI Bank Ltd. Banks 12773 12826 2005

10 Mahanagar Telephone Nigam Ltd. Telecom Services 10944 6084 939

11 Coal India Ltd. Mining 10878 1837 1325

12 Steel Authority of India Ltd. Iron and Steel 10010 29482 6817

13 Power Grid Corporation of India Ltd. Power Generation, Transmission, Distribution 8905 2831 786

14 GAIL (India) Ltd. Gas Processing, Transmission and Marketing 8584 12761 1954

15 Hindustan Petroleum Corporation Ltd. Oil Refining and Marketing 8424 60123 1277


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RANKING BY

CAPACITY COMPANY COUNTRY

CAPACITY

(MW)

SALES

(TWh)

RANKING BY

SALES




7 NTPC INDIA 26194 171 4

6 HUANENG POWER CHINA 28187 160 5

3 KANSAI ELECTRIC JAPAN 41750 147 6


PLATTS GLOBAL ENERGY COMPANY RANKINGS



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1 TXU USA


3 MIRANT USA

4 ATEL SWITZERLAND

5 NTPC INDIA

6 EDISON SPA ITALY



9 CALPINE CORP USA

10 DRAX UK

FIRST IN ASIA

Rank Company CountrySales($bil)

Profits($bil) Assets ($bil)

Market Vaue($bil)

FORBES RANKING - 2006, UTILITY INDUSTRY
http://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Rank.htmlhttp://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=B0NJJ17http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=B0NJJ17http://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Counrty.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Sales.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Sales.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Prof.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Prof.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Assets.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_MktVal.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_MktVal.htmlhttp://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=B0NJJ17http://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_MktVal.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_MktVal.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Assets.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Prof.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Prof.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Sales.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Sales.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Counrty.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Company.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Rank.html


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30 Electricit de France France 77.75 7.39 233.4 133.37

47 E.ON Germany 80.53 6.34 167.11 86.32

76 RWE Group Germany 56.56 5.08 118.52 57.28

101 Suez Group France 49.04 2.97 93.54 61.5

112 Tokyo Electric Power Japan 44.72 2.64 113 47.03

- - - - - - -

478 Consolidated Edison United States 12.14 0.75 26.7 12.52

494 NTPC India 6.06 1.31 17.25 26.06

GLOBAL RANKING HEADED BY CITIGROUP

http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=B037HF1http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=2216850http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=6895404http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=7118047http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=4768962http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=4942904http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=B0NJJ17


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TWH

501

175152 146 141 133 128 126

102 94

0

100

200

300

400

500

600

RAO-UES(RUS)

ESKOM(SAF)

KEPCO(SKR)

AEP

(US)

SouthernCo(US)NTPC

ENEL

(ITA)

TEPCO(JAP)

TVA

(US)

RWE(GER)

NTPC Ltd. - An Employer of Choice


Business World Grow Talent Survey


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1. RMSI IT (Consulting & Software) Foreign

2. Classic Stripes Auto Ancilliaries Indian

3. Google India IT (Software) Foreign

4. Federal Express Logistics Foreign

5. Marriott International Hospitality Foreign

6. MindTree Consulting IT (Consulting) Indian

7. NTPC Power Indian

8. SAP India Labs IT (Software) Foreign

9. American Express India IT (Services) Foreign

10. Freescale Semiconductors India Manufacturing (Electronics) Foreign

NTPC is the only Public Sector Company among the 25 Companies for which Rankingswere published.

LARGEST POWER UTILITIES IN ASIA- DATAMONITOR 2006


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RANKING BYCAPACITY COMPANY COUNTRY

CAPACITY(MW)

SALES(TWh)

RANKING BYSALES




7 NTPC INDIA 26194 171 4

6 HUANENG POWER CHINA 28187 160 5

3 KANSAI ELECTRIC JAPAN 41750 147 6


PLATTS GLOBAL ENERGY COMPANY RANKINGS



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1 TXU USA


3 MIRANT USA

4 ATEL SWITZERLAND

5 NTPC INDIA

6 EDISON SPA ITALY



9 CALPINE CORP USA

10 DRAX UK

FIRST IN ASIA

S l P fit M k t V

FORBES RANKING - 2006, UTILITY INDUSTRY
http://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Sales.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Prof.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_MktVal.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_MktVal.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Prof.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Sales.html


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Rank Company CountrySales($bil)

Profits($bil) Assets ($bil)

Market Vaue($bil)

30 Electricit de France France 77.75 7.39 233.4 133.37

47 E.ON Germany 80.53 6.34 167.11 86.32

76 RWE Group Germany 56.56 5.08 118.52 57.28

101 Suez Group France 49.04 2.97 93.54 61.5

112 Tokyo Electric Power Japan 44.72 2.64 113 47.03

- - - - - - -

478 Consolidated Edison United States 12.14 0.75 26.7 12.52

494 NTPC India 6.06 1.31 17.25 26.06

GLOBAL RANKING HEADED BY CITIGROUP


Nuclear and Hydro

Hydro
http://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Rank.htmlhttp://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=B0NJJ17http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=B0NJJ17http://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Counrty.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Sales.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Sales.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Prof.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Prof.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Assets.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_MktVal.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_MktVal.htmlhttp://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=B037HF1http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=2216850http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=6895404http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=7118047http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=4768962http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=4942904http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?sedol=B0NJJ17http://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_MktVal.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_MktVal.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Assets.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Prof.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Prof.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Sales.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Sales.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Counrty.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Company.htmlhttp://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Rank.html


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Reserves Potential

Tonnes of Metal Gwe-Yr

Uranium 61,000 42,530

Thorium 225,000 150,000

Nuclear

(As Assessed by CEA):

Potential 150,000 MW

Present Installed Capacity 34,654 MW

Balance (Recoverable) 115,346 MW

Source: IEP

Does not include pump storage potential

SECTORAL IMPROVEMENT

Improvement in performance of 15 under-performing stations entrusted to NTPC under

Partnership in Excellence. Generation increased 11% creating an equivalent capacity


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p g q p y

of 237 MW in less than a year. Major improvements were in Tenughat 47.83%, Patratu

32.71%, Rajghat 28.24%.

Electrification of Rural Villages & Households under Rajiv Gandhi Grameen Vidyuti-

Karan Yojana (RGGVY). NTPC is working on the electrification of about 40,000

villages in 5 States.

Village Category 2005-06 2006-07 2007-08 2008-09 Total

Un-Electrified Villages 43 700 7234 7811 15788

Partially Electrified Villages Nil 530 10170 11823 22523

*

Year-wise Electrification Plan

Documents

Corporate Plan-ET Oct08