The CompanyNTPC, the largest power Company in India, was setup in 1975 to accelerate power development in the country. It is among the world’s largest and most efficient power generation companies. In Forbes list of World’s 2000 Largest Companies for the year 2007, NTPC occupies 411th place.

NTPC has installed capacity of 29,394 MW. It has 15 coal based power stations (23,395 MW), 7 gas based power stations (3,955 MW) and 4 power stations in Joint Ventures(1,794 MW). The company has power generating facilities in all major regions of the country. It plans to be a 75,000 MW company by 2017.

NTPC has gone beyond the thermal power generation. It has diversified into hydro power, coal mining, power equipment manufacturing, oil & gas exploration, power trading & distribution. NTPC is now in the entire power value chain and is poised to become an Integrated Power Major.

NTPC's share on 31 Mar 2008 in the total installed capacity of the country was 19.1% and it contributed 28.50% of the total power generation of the country during 2007-08. NTPC has set new benchmarks for the power industry both in the area of power plant construction and operations.

With its experience and

expertise in the power sector, NTPC is extending consultancy services to various organisations in the power business. It provides consultancy in the area of power plant constructions and power generation to companies in India and abroad.

In November 2004, NTPC came out with its Initial Public Offering (IPO) consisting of 5.25% as fresh issue and 5.25% as offer for sale by Government of India. NTPC thus became a listed company with Government holding 89.5% of the equity share capital and rest held by Institutional Investors and Public. The issue was a resounding success. NTPC is among the largest five companies in India in terms of market capitalization.

Recognising its excellent performance and vast potential, Government of the India has identified NTPC as one of the jewels of Public Sector 'Navratnas'- a potential global giant. Inspired by its glorious past and vibrant present, NTPC is well on its way to realise its vision of being "A world class integrated power major, powering India's growth, with increasing global presence".

Vision

A world class integrated power major, powering India's growth with increasing global presence.

Mission

Develop and provide reliable power related products and services at competitive prices, integrating multiple energy resources with innovative & Eco-friendly technologies and contribution to the society

Core Values - BCOMIT

Business ethics Customer Focus

Organizational & Professional Pride

Mutual Respect & Trust

Innovation & Speed

Total Quality for Excellence

Human ResourcesNTPC believes in achieving organizational excellence through Human Resources and follows "People First" approach to leverage the potential of its 23,500 employees to fulfill its business plans. Human Resources Function has formulated an integrated HR strategy which rests on four building blocks of HR viz. Competence building, Commitment building, Culture building and Systems building pramod.

All HR initiatives are undertaken within this broad framework to actualize the HR Vision of "enabling the employees to be a family of committed world class professionals making NTPC a learning organization." To induct talent and groom them into a dedicated cadre of power professionals "Executive Trainee" Scheme was introduced in the year 1977 for recruitment in the disciplines of Mechanical, Electrical, Civil, Control & Instrumentation and now encompasses Computer Science, Chemistry, HR and Finance disciplines also.

Besides a comprehensive one year training comprising theoretical inputs as well as on-the-job training, the new recruits are also attached with senior executives under a systematic and formal 'Mentoring System' of the company to integrate them into the Culture of the company. As part of post employment training and development opportunities, a systematic Training plan has been formulated for ensuring minimum seven man days training per employee per year and includes level-wise planned intervention designed to groom people for assuming positions of higher responsibility, as well as specific need-based interventions based on scientific Training Needs Analysis.

NTPC has set up 15 project training centres, 2 simulator training centres and an apex institute namely 'Power Management Institute' (PMI). While the project training centres (Employee Development Centres) have specialized in imparting technical skills and knowledge, PMI places emphasis on management development. Besides opportunities for long term education are also provided through tie ups with reputed Institutions like IIT, Delhi, (M.Tech in Power Generation Technology), MDI, Gurgaon (Executive MBA programme), BITS, Pilani (B.Tech) etc.

In order to realize the HR Vision of making NTPC a learning Organization by providing opportunities to continually learn new capabilities a number of initiatives have been taken. NTPC Open Competition for Executive Talent (NOCET) is organized every year in which teams of executives compete annually through oral and written presentation on a topical theme. Similarly "Professional Circles" have been formed department-wise where Executives of the department meet every fortnight to share their knowledge and experiences and discuss topical issues. In order to tap the latent talent among non executives and make use of their potential for creativity and innovation, Quality Circles have been set up in various units/offices in NTPC. Besides a management journal called "Horizon" is published quarterly to enable employees to share their ideas and experiences across the organization.

Demonstrating its high concern for people, NTPC has developed strong employee welfare, health & well-being and social security systems leading to high level of commitment. NTPC offers best quality-of-life through beautiful townships with all amenities such as educational, medical and recreational opportunities for employees and their family members.

The motivation to perform and excel is further enhanced through a comprehensive NTPC Rewards and Recognition system. In order to institutionalize a strong Culture based on Values a number of initiatives are taken to actualize the Vision and Core Values (BCOMIT) across the company. A culture of celebrating achievements and a strong focus on performance are a way of life in NTPC. NTPC has institutionalized "Development Centers" in the company to systematically diagnose the current and potential competency requirements of the employees with the objective of enhancing their development in a planned manner. These Centers give a good insight to the employees about their strengths and weaknesses, the gaps in their competencies which they can bridge through suitable support from company. Due to innovative people management practices there is a high level of pride and commitment amongst employees as reflected in the various external surveys including Great Places to Work for in India in which NTPC was rated third Great Place to work for in the country in 2005

Board of DirectorsShri R.S. Sharma, CMD, NTPC, started his career in Madhya Pradesh State Electricity Board in Power Generation in the year 1971 and worked in Plant operation and various areas of plant maintenance. He joined NTPC in 1980, worked extensively in operation and maintenance at various levels and various power plants of NTPC, has rich experience of more than 25 years in O&M of large thermal power plants, later on he headed various projects of NTPC. He took charge as Executive Director (Southern Region) and contributed immensely to make successful turn around of revenue realization in Southern States, after that he moved to Corporate Centre as Executive Director (Corporate Planning) and he was pivotal in implementing the various initiatives in the project “Disha”, a project for organization transformation. From Corporate Planning he moved to Commercial function and served as Executive Director (Commercial) looking after commercial functions of the company. He has taken over as Director (Commercial) since October 2004. He has very vast and varied experience of around 36 years in various functions of Indian power industry. He has guided the activities of business development in the organization. Under his guidance trading has made much progress in terms of value and scope. He has been instrumental in guiding the preparation of guidelines for setting up a power exchange in India. He is the firm believer of philosophy “Can Do & Customer Focus” and took many initiatives for strengthening the customer relationship management systems.

Shri Chandan Roy Director (Operations) is a graduate in Mechanical Engineering. A power engineer of repute with rich and varied experience of more than 36 years in the areas of project planning, conceptualisation, design, engineering and O&M, Sh. Roy has held various responsible positions in India and abroad. In NTPC, he has served in various capacities including Executive Director of a Regional Head-Quarter, Engineering Division etc. Prior to joining us in 1977, he worked in ACC Vickers Babcock & Wilcox, London. He joined the Board of NTPC Ltd in January 2004. He is also Chairman of Ratnagiri Gas and Power Private Limited (Part time), a joint venture company of NTPC Ltd and GAIL (India) Ltd. In recognition of his expertise in the area of power plant design, commissioning and generation he has been awarded “Eminent Engineer Award” by Institution of Engineers (India) in the year 2006.

Shri R.K. Jain Director (Technical) since May 5, 2005, has vast experience of over 34 years of Power Project Planning, Conceptualisation, Design/Engineering and Contract & Materials. He also served as Executive Director (National Capital Region), Executive Director (Corporate Contract & Materials), and as General Manager (Consultancy & Joint Ventures). Prior to joining NTPC in 1977, he worked with Central Electricity Authority. As Director (Technical), he is responsible for Engineering Division, induction of new technologies like Supercritical etc., development of Energy Technology Centre for research in Energy related areas, non-conventional energy resources, implementation of Distributed Generation Schemes and

development and implementation of IT initiatives in NTPC including ERP. He is also responsible for NTPC’s globalization initiatives in the areas of setting up power plants abroad, O&M Contracts and offer Engineering Services for international clients.

Shri A.K. Singhal Director (Finance) since August 2005, a Chartered Accountant comes with rich experience of 29 years of Corporate Finance Management. He is also a member of All India Management Association (AIMA) and Institute of Internal Auditors (IIA). Prior to joining NTPC in 2001, he was the Executive Director (Finance) in National Fertilizers Limited (NFL) as head of Finance & Accounts department. He held various managerial positions in Krishak Bharati Cooperative Limited (KRIBHCO) and Engineering Projects of India Limited (EPIL). As Finance Director on the Board of NTPC, he is responsible for formulating financial strategies and plans to enable the company in achieving its Vision. He gives directions with respect to the entire gamut of Financial Management of the organization including timely financial resource mobilization at minimum possible cost from Domestic and Global sources including equity issues, optimum utilization of funds, formulation of company’s annual financial budget and undertaking budgetary controls. He is also responsible for designing internal control systems commensurate with the size of the organization and for ensuring compliance of such systems. Being responsible for compliances of Company Law and other statutory requirements, he also gives direction to the Corporate Governance framework of the company. After company become listed he has been acting as one of the vital links between the shareholders of the company and the rest of the Board.

Shri R.C. Srivastav Director (Human Resources) is a Graduate in Electrical Engineering. He has a rich and diverse experience of more than 30 years in the power sector. He started his career in power plant operation in captive power plant of Steel Authority of India Limited. He joined NTPC in 1981 and worked in various capacities in the areas of construction, commissioning and operation & maintenance of power stations as well as corporate operation services. He headed a number of power stations of NTPC and was elevated to the post of Executive Director (Southern Region) in 2002. He later handled the responsibility as Chief Executive Officer of NTPC Electric Supply Company Limited, a wholly owned subsidiary Company of NTPC engaged in electricity distribution before appointment as Director (HR) of NTPC in May 2006. As Director (HR) Shri Shrivastav is overall in-charge of Human Resource function for the entire organization. He is also responsible for Power Management Institute of NTPC and other corporate functions such as Industrial Safety, Resettlement & Rehabilitation, Corporate Communication and Corporate Social Responsibility.

Shri K.B. Dubey Director (Projects) is a graduate in Mechanical Engineering. Shri Dubey started his professional career with Bharat Heavy Electrical Ltd and subsequently joined NTPC in 1981.

He has worked in NTPC in different capacities and in variegated areas. He has headed various Projects, Region and Corporate Groups in NTPC such as Faridabad Gas Power Project, Koldam Hydro Power Project, Hydro Region and Corporate Monitoring Group and has earned laurels in both Professional and Administrative capacities. He took over as Director (Projects) of NTPC on 12.01.2007. Shri Dubey is a member of the Panel of Arbitrators of the Singapore International Arbitration Centre-CIDC Dispute Resolution Centre. He is also an Arbitrator of the Scope forum of Conciliation and Arbitration. He is an Executive member of IHA and a Member in the governing body of National Institute of Rock Mechanics.

Shri I.J.Kapoor, (52 yrs) was appointed Director (Commercial), NTPC as on Dec.26, 2008 is a Bachelor of Science (Engg.) and Master in Business Administration (Marketing). He joined NTPC as Executive Trainee (ET) in 1978 and is the first ET to be on board of the company. He has over 30 years of experience in various functions of NTPC viz Contracts & Materials, Engineering, Project Coordination, Station Performance, Consultancy and Commercial in various capacities. Prior to his elevation as Director (Commercial), he was Regional Executive Director (National Capital Region). He brings with him rich experience in contracting and procurement activities and was responsible for the EPC as well as package-wise Contract Management for NTPC’s power stations. As Executive Director (National Capital Region), he was responsible for operation of 3889MW capacity with two Coal & four Gas based Stations. He improved bottom line and productivity by augmenting alternate fuels through effective advocacy with Oil companies especially during Mid 2008, period of market volatility & countrywide power deficit scenario. He has been instrumental in conceptualization & implementation of Commercial policies & strategies of NTPC to cater to the emerging regulatory challenges/emerging markets with 100% realization of dues for the last seven (07) years.

Shri Rajesh Verma is a graduate in Electrical Engineer from IIT, Delhi and an Indian Administrative Service Officer from Orissa State cadre. He has held various posts in both the State Governments of Orissa and Rajasthan. Prior to his joining as a Joint Secretary & Financial Adviser, Ministry of Power, Government of India with effect from 02.07.2007, he has held the post of Director (Hydro), Ministry of Power. He is on the Board of the Company as a part-time Director nominated by the Government of India with effect from July 23, 2007.

Dr. R.K. Pachauri , A Nobel Laureate a Padma Bhushan awardee, obtained a Master of Science in Industrial Engineering in 1972, Ph.D in Industrial Engineering and a Ph.D in Economics from North Carolina State University, Raleigh, North Carolina, USA. He assumed his current responsibilities as the head of The Energy and Resources Institute, New Delhi (TERI) in 1981, first as Director and since April 2001, as Director-General. He has been on the Board of the Company with effect from January 30, 2006 as a non-official part-time director.

Prof. Ashok Misra is a Bachelor of Technology in Chemical Engineering from Indian Institute of Technology, Kanpur and a Master of Science in Chemical Engineering from Tufts University, USA, and Ph.D. in Polymer Science & Engineering from University of Massachusetts, USA. Prof. Ashok Misra also successfully completed his EDP from Kellogg School of Management, Northwestern University, USA. Currently he is the Director of Indian Institute of Technology, Bombay. He authored one book on Polymers, published large number of articles and papers in national and international journals and has been awarded six patents. He is the recipient of a number of prestigious awards, including the S.S. Bhatnagar Memorial award. He is a member of several scientific associations and societies and currently, President, National Academy of Sciences, India (NASI). He is also on the Board of Reliance Industries Ltd. and Rashtriya Chemicals & Fertilizes Ltd. He has been on the Board of the Company with effect from January 30, 2006 as a non-official part-time director.

Shri Gian Prakash Gupta (66 yrs), Post Graduate in Commerce, was the Chairman and Managing Director of IDBI & Chairman of UTI. He has 40 years of experience in various financial institutions and held Directorships in various organizations like LIC, GIC, EXIM Bank, IFCI and BHEL in the past. He is presently on the Board of various companies namely Hindustan Aeronautics Ltd., PTC India Ltd., Power Finance Corporation Ltd. He has been on the Board of the Company with effect from January 30, 2006 as a non-official part-time director.

Shri Mirza Ishtiaq Beg (68 yrs) is former Chairman of Central Electricity Authority & Ex-officio Secretary to the Government of India. He obtained Master degree in Economics and Bachelor of Science in Electrical Engineering. Shri M.I. Beg was with Central Electricity Authority for 34 years and had been on the Board of Power Finance Corporation Limited and Nuclear Power Corporation of India Limited. He has undergone 6 months training in Design and Construction of Power Project at New Brunswiek, Canada. He has been on the Board of the Company with effect from January 30, 2006 as a non-official part-time director.

Shri G.S. Sarna (52 years), is an Indian Revenue Service officer. Prior to the present deputation as the Chief Vigilance Officer, NTPC Limited, he was Commissioner of Central Excise. In the Customs, he has held similar senior appointments at the International Airport and the Air Cargo at Delhi besides having been also on deputation in the Commerce Ministry.

Shri M.N. Buch, Former Secretary, Govt of IndiaNon –official Part time Director

Shri Shanti Narain, Former Member, Railway Board;Non –official Part time DirectorShri P.K. Sengupta, Former CMD, Coal India Ltd.Non –official Part time DirectorShri K. Dharamrajan, Former DG, Indian Institute of Foreign Trade(IIFT)Non –official Part time DirectorDr. Govinda Rao Marapalli, Director, National Institute of Public Finance and Policy (NIPFP)Non –official Part time Director

Joint Ventures

NTPC, with a rich experience of engineering, constructing and operating over 26,000 MW of thermal generating capacity, is the largest and one of the most efficient power companies in India, having operations that match the global standards.

NTPC has identified Joint Ventures, strategic alliances as well as acquisitions and diversifications as viable and desired options for its business development.

NTPC looks for opportunity to create such joint ventures and strategic alliances, in the entire value chain of the power business. NTPC as a partner endows the Joint Venture Alliances with a winning edge. Acquisitions and Diversifications in the areas related to the core business not only ensure growth but also add to the robustness of the company. Diversification is carried out either directly or through subsidiaries/JVs.

Joint Venture Partners

The following joint venture companies have been formed so far

NTPC -ALSTOM POWER SERVICES PVT. LTD. (NASL)(Incorporated in 1999 and formerly known as NTPC-ABB ALSTOM POWER SERVICES PVT. LTD)

OBJECTIVE Undertake Renovation & Modernisation of power stations in India and other SAARC countries

PROMOTERS' EQUITY

NTPC: 50% ALSTOM Power Generation AG : 50%

UTILITY POWER TECH LTD(Incorporated in 1996)This JV has been promoted with Reliance Energy Limited (formerly BSES Limited) a private sector Indian power company.

OBJECTIVE To undertake project construction, erection and supervision in power sector and other sectors in India and abroad

PROMOTERS' EQUITY

NTPC: 50%REL: 50%

PTC(India) Ltd (Incorporated in 1998)This JV has been promoted with Power Grid Corporation of India Ltd (PGCIL), a Government owned transmission major in India. Power Finance Corporation (PFC), a power sector finance company owned by the Government of India and National Hydro Electric Power Corporation Ltd. (NHPC), a Government owned hydro power utility.

OBJECTIVE To trade, import, export and purchase power from identified power projects and sell it to identified SEBs/others

EQUITYCOMPOSITION

Promoter’s Holding Non-Promoter’s Holding

NTPC: 5.28% A. InstitutionsPGCIL: 5.28% Mutual Fund & UTI – 9.25%PFC: 5.28% Banks & Financial Institutions 5.42% NHPC: 5.28% Insutance Cos – 9.18%FIIs – 0.72% B. Non-Institutions Bodies Corporate(including DVC)-8.26% Individuals(holding < Rs 1 Lac) – 9.97% Individuals(holding>Rs 1 Lac) – 0.72%

C. Others NRI – 0.36% Trust & Foundation – 0.02%

NTPC-SAIL POWER COMPANY (PVT) LTD (NSPCL)

NSPCL, the Joint Venture Company of NTPC and SAILwith 50:50 equity participation, BESCL(Bhilai Electric Supply Co. Pvt Ltd), another JV Co. of NTPC and SAIL with 50:50 equity participation.stood merged with NSPCL,w.e.f 2nd August 2006,as per the scheme of Amalgamation approved by High Court of Delhi. As a result of aforesaid merger of BESCL in NSPCL, all properties, licenses, permissions, debt, liabilities etc. with respect to BESCL now stand vested in NSPCL.

OBJECTIVE To supply power to the Bhilai, Durgapur and Rourkela Steel Plant of Steel Authority of India Limited (SAIL) from its Coal based power stations at Bhilai (Chhattisgarh), 2x30MW+1X14MW, Durgapur (West Bengal) 2x60MW and Rourkela (Orissa) 2x60 MW.

For the purpose of its business development, NSPCL is carrying out the expansion of its installed capacity at Bhilai, by setting up a 500MW (2x250MW) power plant.

PROMOTERS' EQUITY

NTPC: 50% SAIL : 50%

NTPC TAMIL NADU ENERGY COMPANY LIMITEDThis JV was incorporated on 23rd May, 2003 with Tamil Nadu Electricity Board, a State run Electricity Board in the State of Tamil Nadu engaged in generation, transmission and distribution of electricity.

OBJECTIVE To set up a 1000 MW coal based power station at Ennore in Tamil Nadu utilising the existing infrastructure facility at Ennore and supply power mainly to Tamil Nadu and the states of Kerala, Karnataka and Pondicherry.

PROMOTERS' EQUITY

NTPC: 50% TNEB : 50%

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VAISHALI POWER GENERATING COMPANY LIMITEDThis JV was incorporated on with Bihar State Electricity Board, a State run Electricity Board in the State of Bihar, engaged in generation, transmission and distribution of electricity.

OBJECTIVE To take over Muzaffarpur Thermal Power Station (2x110MW), a coal based power station at Kanti, for carrying out restoration, R&M and supplying power mainly to the state of Bihar.

PROMOTERS' EQUITY

NTPC: 51-74% BSEB : 26-49%

ARAVALI POWER COMPANY PRIVATE LTDJoint Venture Agreement was signed on 14.12.2006 among NTPC Ltd,Indrapastha Power Generatuion Company Ltd.(IPGCL) and Haryana Power Generation Company Ltd(HPGCL).The Company was Incorporated on 21.12.2006.

OBJECTIVE To set up a coal-based power station of 1500MW capacity in Distt. Jhajjar, Haryana, in joint venture with IPGCL and HPGCL to supply power to Delhi and Haryana.

PROMOTERS' EQUITY

NTPC-50%, IPGCL-25%, HPGCL-25%

Proposed Joint Ventures

HARATIYA RAIL BIJLEE COMPANY LTDThe Joint Company ( a subsidiary of NTPC) has been incorporated with Railways on 22.11.2007

OBJECTIVE To set up a 1000 MW coal based power station as a mega project under captive status to meet traction and non-traction power requirement of Indian Railways.

PROMOTERS'EQUITY

NTPC - 74 %Railways – 26 %

NTPC – SCCL GLOBAL VENTURES PRIVATE LTDTPC – SCCL GLOBAL VENTURES PRIVATE LTD

OBJECTIVE To jointly undertake Development and O & M of Coal Blocks(s) and Integrated Coal based Power Projects in India and overseas.

PROMOTERS'EQUITY

NTPC - 50 %SCCL – 50 %

MEJA URJA NIGAM PRIVATE LIMITED

The Joint Venture Company has been incorporated on 02.04.2008 with UPRVUNL.

OBJECTIVE To set up a 2X 660MW thermal Power Plant at Meja, Distt. Allahabad in UP.

PROMOTERS'EQUITY

NTPC: 50%UPRVUNL : 50%

PROPOSED JOINT VENTURES /MOUs/ AGREEMENT’s

1.0 Transfer Agreement signed on 30.05.2007, with Govt. of Assam and Assam Power Generation Corporation Ltd. for transfer of the existing power plant and setting up of new 3x250MW coal based power plant at Bongaigaon (Assam).

2.0 MOU signed amongst NTPC, Govt. of Bihar and BSEB on 14.10.2007 for setting up 3x660 MW at Nabinagar, Bihar. JVA signed with BSEB on 14.02.2008.

3.0 MOU signed between NTPC and RINL (Rashtriya Ispat India Ltd.) on 27.07.2007 at Vizag for setting up of around 150 MW Combined Cycle power Plant, using Blast Furnace Gas as the fuel. NIT has been floated by RINL.

4.0 A Business Collaboration and Share Holder’s Agreement has been signed on 23.06.2007 amongst Govt. of Kerala, TELK and NTPC to acquire around 44.6% stake of TELK, held by Govt. of Kerala.

5.0 MOU signed between NTPC and ADB on 23.07.2007 for Establishment of Power Generation Capacity of about 500 MW through Renewable Energy Sources.

6.0 MOU signed amongst NTPC, RINL, SAIL, NMDC and CIL for sourcing Coking coal and Thermal coal from abroad.

7.0 MOU signed with BHEL on 07.09.2007 for taking up EPC contracts for Power Plants. Further a JVA has been signed with BHEL on 17.12 2007, followed bysigning of a Supplementary agreement on 11.01.2008, for activities related to carrying out EPC and Manufacturing of equipments in field of power sector and infrastructure

projects.

8.0 MOU signed with BHARAT FORGE LIMITED on 08.02.2008, for setting up a new facility to take up manufacture of castings, forgings, fittings and high pressure piping required for Power and other industries, Balance of Plant (BOP) equipment for the power sector etc.

Acquisition

Business development through Acquisition serves both NTPC's own commercial interest as well as the interest of the Indian economy

Taking over being a part of the acquisition process, is also an opportunity for NTPC to add to its power generation capacity through minimal investment and very low gestation period. NTPC has, over the years, acquired the following three power stations belonging to other utilities/SEBs and has turned around each of them using its corporate abilities.

POWER STATIONS TAKEN OVER YEAR ORIGINAL OWNER

2x210 MW FEROZE GANDHI UNCHAHAR THERMAL POWER STATION

1991UP RajyaVidyut Utpadan Nigam of Uttar Pradesh

4x60 MW + 2x110 MW TALCHER THERMAL POWER STATION

1995Orissa State Electricity Board

4x110 MW TANDA THERMAL POWER STATION

2000UP State Electricity Board

705MW Badarpur Thermal Power Station 2006Central Electricity Authority

Diversification

To broad-base the business and also to ensure growth, diversification in the areas related to NTPC's core business of power generation such as Hydro power, Distribution, Trading, Coal mining, LNG etc. have been identified as priority areas.

A. Nuclear Power Generation

In line with its Corporate Plan, NTPC exploring foray into the field of Nuclear Power Generation. NTPC is now planning to set up Nuclear Power Projects of about 2000MW by the year 2017.

B. Vertical (Backward) Integration - Coal Mining And Lng Business:

Coal MiningThe policy changes in coal sector provide an opportunity to NTPC to enter captive coal mining business. Production is expected by 2007 in one coal block already allotted in 2004 (Pakri Barwadih in the state of Jharkhand). Six more blocks (~40MTPA) have been allotted to NTPC, including two in JV with CIL.

POWER GENERATION

Installed Capacity

An Overview

No Of Plants Capacity MW

NTPC Owned

Coal 15 23,895

Gas/Liquid Fuel 7 3,955

Total 22 27,850

Owned By JVs

Coal & Gas 4 2,044

Total 26 29,894

Regional Spread Of Generating Facilities

Region Coal Gas Total

Northern 7,035 2,312 9,347

Western 6,360 1,293 7,653

Southern 3,600 350 3,950

Eastern 6,900 - 6,900

JVs 5,64 1,480 2,044

Total 24,459 5,435 29,894

Project Profile

Coal Based Power Stations

Coal based State Commissioned

Capacity(MW)

1. Singrauli Uttar Pradesh 2,000

2. Korba Chattisgarh 2,100

3. Ramagundam Andhra Pradesh 2,600

4. Farakka West Bengal 1,600

5. Vindhyachal Madhya Pradesh 3,260

6. Rihand Uttar Pradesh 2,000

7. Kahalgaon Bihar 1,840

8. NTCPP Uttar Pradesh 840

9. Talcher Kaniha Orissa 3,000

10. Unchahar Uttar Pradesh 1,050

11. Talcher Thermal Orissa 460

12. Simhadri Andhra Pradesh 1,000

13. Tanda Uttar Pradesh 440

14. Badarpur Delhi 705

15. Sipat Chattisgarh 1,000

Total (Coal) 23,895

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Gas/Liq. Fuel Based Power Stations

 

Gas based State Commissioned

Capacity(MW)

16. Anta Rajasthan 413

17. Auraiya Uttar Pradesh 652

18. Kawas Gujarat 645

19. Dadri Uttar Pradesh 817

20. Jhanor-Gandhar Gujarat 648

21. Rajiv Gandhi CCPP Kerala 350

Kayamkulam

22. Faridabad Haryana 430

Total (Gas) 3,955

Power Plants With Joint Ventures

Coal

Based State Fuel

Commissioned Capacity

(MW)

23. Durgapur West Bengal Coal 120

24. Rourkela Orissa Coal 120

25. Bhilai Chhattisgarh Coal 324

26. RGPPL Maharastra Naptha/LNG 1,480

Total(JV) 2,044

Grand Total (Coal + Gas + JV) 29,894

New Capacities

The company has formulated a long term Corporate Plan for 15 years upto 2017. The Corporate Plan seeks to integrate the Company's vision, mission and strategies for growth with the national plans and to provide the company the cutting edge in the emerging competitive environment. NTPC is targeting to become a 75,000 MW Plus company by 2017.

  Coal / Hydro State Fuel

Additional Capacity Under Implementation

(MW)

1. Kahalgaon

Stage II (Phase I) (Phase II)

Bihar Coal 500

2. Sipat (Stage I) Chhattisgarh Coal 1980

3. Barh Bihar Coal 1980

4. Bhilai (Exp. Power

Project-JV with SAIL)Chhattisgarh Coal 500

5. Korba (Stage III) Chhattisgarh Coal 500

6. Farakka (Stage III) West Bengal Coal 500

7. NCTPP (Stage II) Uttar Pradesh Coal 980

8. Simhadri (Stage II)Andhra Pradesh

Coal 1000

9.Indira Gandhi STPP-JV with HPGCL & IPGCL

Haryana Coal 1500

10.Vallur (Stage-I)(Phase-I) -

JV with TNEBTamilnadu Coal 1000

11.Nabinagar TPP- JV with

RailwaysBihar Coal 1000

12. Bongaigaon TPP Assam Coal 750

13. Koldam (HEPP) Himachal Pradesh

Hydro 800

14. Loharinag Pala (HEPP) Uttarakhand Hydro 600

15. Tapovan Vishnugad

(HEPP)Uttarakhand Hydro 520

16. Mauda* Maharashtra Coal 1000

17. Barh-II ** Bihar Coal 1320

Total (Coal + Hydro) 16,180

* LOI placed. LOA to be placed shortly.**LOA for SG placed. LOA for TG to be placed.

New Projects Being Pursued For Benefits Starting In The 11th Plan Capacity Addition For Eleventh Plan And Beyond

In addition to the above on-going projects, proposals for a host of new power projects as given below are being pursued for benefits starting in the 11th plan subject to timely linkages, clearances/approvals.

Sl. No.

Project/ StateCapacity (MW)

Fuel

1. North Karanpura, Jharkhand 1980# Coal

2. Rihand - III 1000## Coal

3. Kawas-II CCPP, Gujarat@ 1300 Coal

4. Jhanor Gandhar-II CCPP, Gujarat@ 1300 Coal

@ These projects will be taken up after signing of Gas Sale Purchase Agreement.

# Unit II & Unit III (660 MW each) in XII Plan## Unit II (500 MW) in XII Plan

CSR

Community Development

NTPC has been a committed and socially responsible corporate citizen since its inception and formulated specific guidelines for the welfare of Project Affected persons (PAPs) and community development in the neighborhood villages around its power stations as early as 1980s. It is one of the first in the corporate sector to formulate comprehensive resettlement and

rehabilitation policy for addressing the issue of PAPs.

The concept of Corporate Social Responsibility is deeply ingrained in NTPC.s culture. NTPC's mission in the area of CSR is to "Be a socially responsible corporate entity with thrust on environment protection, ash utilization, community development, and energy conservation".

NTPC's approach towards CSR, further articulated in the corporate objectives on sustainable power development, is as follows::

"To contribute to

sustainable power development by discharging corporate social responsibilities.

lead the sector in the areas of resettlement and rehabilitation and environment protection including effective ash-utilization, peripheral development and energy conservation practices."

NTPC's fresh impetus on Community Development is reflected through formulation of CSR-CD Policy, July 04, establishing NTPC foundation as a trust and initiating scheme for economic self reliance of physically challenged persons (PCP).

A member of Global Compact, a UN initiative launched by its Secretary General Mr Kofi Annan. NTPC is committed to adhere to its ten principles in the areas of Human Rights, Labour, Environment and Anti-corruption.

Resettlement & Rehabilition

The Social Commitment

NTPC believes in growth with a human face, and pursuing people-centred development. NTPC is a socially committed organisation and a socially responsible corporate citizen. It attaches great importance to discharging its overall social responsibilities to the community and the society at large where its projects and stations are located. In this regard Resettlement and Rehabilitation (R&R) program becomes an area of sharp focus, a program that addresses people affected directly or indirectly in the wake of the projects undertaken by NTPC.

The Pioneer

Sensitive to the social issues since its inception, the organisation framed guidelines for the facilities to be given to the land oustees in 1980 Building on the earlier guidelines, a comprehensive R&R policy was formulated and approved for implementation in May 1993. Based on its experiences and good practices adopted at various projects since the implementation of the 1993 policy, as also taking into consideration the GO's recently notified NPRR-2003, NTPC R&R policy has been revised in June 2005. The policy has been arrived at after intense consultation with the stakeholders. Click here to view the R&R policy.

The organisation was the first Public Sector Undertaking(PSU), and in that way the pioneer, in having such a policy in 1993. International funding agencies, as also the Government of India, recognise and acknowledge the experiences gained by NTPC in this significant task.

The Comprehensive Policy Framework

The R&R policy aims at improving the overall economic status of Project Affected Persons (PAPs). This is achieved by providing opportunities in the fields of sustainable income, health, education, sanitation, communication and other such areas. Community development activities are carried out in a transparent and participative manner. Each program is based on the specific local requirement and guided by the extensive Socio Economic Surveys (SES). This helps meet the objective of ensuring that the Project Affected

Persons (PAPs) improve or at least regain their previous standard of living. Efforts are made to adopt a holistic approach to community development.

Resettlement

Developed alternate free house plot in resettlement colony with necessary infrastructure facilities or provisions for self resettlement.

Free transport arrangement for belongings and reusable material or suitable transport grant.

Infrastructure to be provided includes primary school, dispensary, panchayat ghar, drinking water well/ hand pumps, WBM roads, drainage, Sulabh Sauchalaya etc.

Suitable Resettlement Grant etc.

Rehabilitation

'Land for land' on a 'willing buyer willing seller' basis Other rehabilitation options based on need and requirement

Capacity Addition Programmes

Suitable Rehabilitation Grants, Subsistance Allowance etc.

Other innovative measures like incentivising purchase of land by the landless etc.

Additional Economic Opportunities as per need and requirement

The rehabilitation plans rest on the sound foundation of Socio economic surveys (SES). Independent and reputed professional institutes conduct these surveys. Surveys help assess the information on each PAP and chalk out the Rehabilitation Action Plan (RAP). RAPs are prepared for new expansion and green field projects The plans are finalised in a consultative manner with the PAPs and the State administration and soon they translate into viable projects. The plans primarily aim at resettling PAPs in resettlement colonies, providing them infrastructure facilities and also ways and means of rehabilitation.

The rehabilitation process is attuned to the local conditions and the needs of the people. Facilitation for Land for Land on a 'willing buyer willing seller basis' is the main focus for rehabilitation. The PAPs are encouraged to be partners in the implementation of the project. With an eye on long-term development, vocational training has been built into the rehabilitation

process. The plans are implemented within a definite time frame and a specified budget.

There is sharp focus on all round socio economic development of the community, which is why the efforts do not stop at the individual or family level redressal but take a holistic approach. Improving the roads, health care, education, vocational training, infrastructure development and sports are major activities. Apart from that various welfare and cultural activities are also taken up.

Raps Under Implementation

RAPs have been finalised for thirteen projects and are in various stages of implementation viz.

1. Kayamkulam2. Talcher Kaniha

3. Vindhyachal Ash Dyke

4. Korba Ash Dyke

5. Rihand Ash Dyke

6. Faridabad

7. Simhadri

8. Unchahar-II

9. Sipat

10. Anta-II

11. Auraiya-II

12. Kol Dam

13. Barh

14. Remedial Action Plan

15. Some Projects/Stations of NTPC were already fully or substantially developed by the time the 1993R&R Policy was adopted/implemented in 1993. In those projects/stations also, the PAPs' Resettlement & Rehabilitation was taken care of and the inputs/facilities etc. were provided for. However, to cope with its total commitment to the well being of PAPs, the Company did a re-

assessment of the activities in the older projects/stations and carried out a 'retrofit' R&R operation to bridge the gaps wherever they had occurred. Retrofit SES for such 12 projects viz. Singrauli, Rihand-I, Vindhyachal-I, Korba, Kawas, Gandhar, Farakka, Kahalgaon, Ramagundam, Anta-I, Auraiya-I and NCPS Dadri have been carried out and Remedial Actions Plans (ReAPs) prepared. These ReAPs were time bound with a specified budget. All the 12 ReAPs have been completed and are closed as on date

16. Implementation, Monitoring And Evaluation

17. Institutional Framework

18. R&R Group

19. Recognising the importance of sound institutional framework to achieve the desired results NTPC has set up dedicated R&R groups. The R&R groups operate at projects, Regional Headquarters and the Corporate Centre. At the project level the group is responsible for coordinating and implementing the R&R plans and activities. The regional R&R groups are responsible for monitoring the progress of implementation of R&R plans and follow up of the respective R&R activities. At Corporate level, it oversees consistent application of policies, its revision from time to time and facilitates the projects and the regions in planning, scheduling ,budgeting and approval of RAPs etc.

20. The right skill mix has also been provided by associating people with social expertise and philanthropic thoughts, consultants, facilitators, social scientists wherever and whenever such help was felt necessary. Professional NGOs/CBOs capable of assisting self employment have been engaged at times to achieve the desired results depending upon the need and requirement. Encouragement has been given for the formation of informal groups at project level involving employees, their families, service groups etc to augment organisational efforts for the socio economic development of the areas.

21. For effective participation, consultation and transparency with the stakeholders in its activities, Public Information Centres (PICs) and Village Development Advisory Committees (VDACs) have been set up by the organisation. In addition to this, depending upon the need, the programmes are carried out closely with the NGOs/CBOs. The Grievance Redressal Mechanism for each project encourages PAPs to approach them if dissatisfied with the arrangements.

22. In an endeavour to not just meet its promise but transcend, innovative practices are used from time to time depending on the project. Our personnel in-charge of R&R activities in the organisation endeavour to not just meet the formal organisational commitments made to the PAPs but go beyond them through the application of innovative practices from time to time

23. Public Information Centre (PIC)

24. To disseminate information on the project, PICs at Corporate Centre and the projects house an array of documents- survey reports, action plans, land records, policy etc. The PAPs are able to glean information on various facets of the project and also submit any query or grievance.

Village Development Advisory Committee (VDAC)

VDACs facilitates finalisation and implementation of RAPs in a participative manner. The representatives of PAPs, Gram Pradhan, Panchayat representative, Block Development Officer, other representatives of State Government NTPC and NGOs/CBOs, constitute it and meet regularly since the formulation of RAP till completion and closure of RAPs at respective projects.

Global Compact

Introduction

Globalisation has brought significant advantages to countries and business around the world but the benefits have spread unequally both within and among countries.

While the rules favouring global market expansion have grown more robust, the rules intended to promote equally valid social objectives viz. in the areas of human rights, labour standards and environment lag behind and in some cases actually have become weaker.

In order to promote Corporate Social Responsibility and citizenship in the new global marketplace, UN Secretary General, Mr. Kofi Annan first proposed the Global Compact at Davos in Jan'99. It was thus created to help organisations redefine their strategies and course of actions so that all people can share the benefits of globalisation, not just a fortunate few.

The Global Compact's operational phase was launched at UN Headquarters in New York on 26 July 2000. and has since then focussed its efforts on achieving practical results and fostering the engagement of business leaders in the direction.

Through the power of collective action, the Global Compact seeks to promote responsible corporate citizenship so that business can be part of the solution to the challenges of globalisation. In this way, the private sector's in partnership with other social actor's can help realize the Secretary-Generals vision: a more sustainable and inclusive global economy.

The Global Compact is a network. At its core are the Global Compact Office and six UN agencies:

Office of the High Commissioner for Human Rights ; United Nations Environment Programme ;

International Labour Organization ;

United Nations Development Programme ;

United Nations Industrial Development Organization ; and

United Nations Office on Drugs and Crime .

The Global Compact involves all the relevant social actors: governments, who defined the principles on which the initiative is based; companies, whose actions it seeks to influence; labour, in whose hands the concrete process of global production takes place; civil society organizations, representing the wider community of stakeholders; and The United Nations, the world's only truly global political forum, as an authoritative convener and facilitator.

The Ten Principles of Global Compact

The Global Compact's ten principles in the areas of human rights, labour, the environment and anti-corruption enjoy universal consensus and are derived from:

The Universal Declaration of Human Rights The International Labour Organization's Declaration on Fundamental

Principles and Rights at Work

The Rio Declaration on Environment and Development

The United Nations Convention Against Corruption

The Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labour standards, the environment, and anti-corruption:

Human Rights

Principle 1 : Business should support and respect the protection of internationally proclaimed human rights; and

Principle 2 : Make sure that they are not complicit in human rights abuses.

Labour

Principle 3 : Business should uphold the freedom of association and the effective recognition of the right to collective bargaining;

Principle 4 : The elimination of all forms of forced and compulsory labour;

Principle 5 : The effective abolition of child labour; and

Principle 6 : The elimination of discrimination in respect of employment and occupation.

Environment

Principle 7 : Business should support a precautionary approach to environmental challenges;

Principle 8 : Undertake initiatives to promote greater environmental responsibility; and

Principle 9 : Encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption

Principle 10 : Business should work against corruption in all its forms, including extortion and bribery.

Participation By NTPC

Due to keenness of UN that this movement takes root in India, some business leaders took the initiative and organised a meeting of select business leaders in Mumbai in Dec' 2000. NTPC as a prominent business and community leader in the power sector was also invited to the meeting and thus engage/associate itself with Global Compact.

Following this meeting which was attended by CMD NTPC, NTPC agreed to be associated with the Global Compact. In his letter in May 2001 CMD addressed to Mr. Kofi Annan, Secretary

General, UN formally expressed its support for the Global Compact and its commitment to take action in this regard.

NTPC expresses its continued support for the Global Compact and its commitment to take action in this regard. The principles of GC are regularly communicated to all employees through in-house magazines, internal training programmes and posters.

NTPC along with major corporate in India took the lead and founded Global Compact Society of India in the year 2003. Further, NTPC as founder member of Global Compact Society took the lead for organizing the 1st national convention on .Excellence in Corporate Citizenship and Global Compact's on 27th July 2004 at New Delhi.

UNGC - Communications On Progress (2006-07)

NTPC expresses its continued support for the Global Compact and its commitment to take action in this regard, as was communicated by the Chairman & Managing Director, NTPC in his letter dated May 29, 2001 addressed to Secretary General, United Nations.

Top

NTPC has posted the brief of Global Compact and its commitment to the principles of GC on its website at http://www.ntpc.co.in//. The principles of GC were also communicated to all employees through in - house magazines, internal training programmes and posters. Director (HR) of NTPC has been nominated as Vice President, Northern Region for Global Compact Society, India.

Human Rights: Principle 1-2

Most of NTPC's operating power stations are located in remote rural areas which are socio-economically backward and deficient in the basic civic amenities. NTPC, as responsible corporate citizen has been addressing the issue of community development is the neighbourhood areas of its stations, which had been impacted due to establishment of the project.

While, this has been initially administered as part of resettlement and rehabilitation effort, NTPC recognized its social responsibility to continue community and peripheral development works where the same has been closed under R&R policy. Towards this, NTPC during 2004-05 adopted 'Corporate Social Responsibility'Community Development (CSR-CD) Policy, July 04.

Under this policy, during 2006-07, NTPC allocated a fund of Rs.62.049 million to 20 operating stations for carrying out comprehensive Community Development work in the area of health,

education, drinking water and peripheral development. In addition, Quality Circles (QCs) have been started in neighborhood villages of 10 stations. The NTPC employees participate in various CD activities through Employee Voluntary Organization for Initiative in Community Empowerment (EVOICE).

NTPC also recognizes that generation of power is key to development, particularly in the remote and far-flung places where the power is either not available or is in acute shortage. The Decentralized Distributed Generation and Supply (DDGS) of power is a plausible solution. Under its CD initiatives, NTPC supported for preparation of 45 Detailed Project Reports (DPRs), for insurance of the commissioned DG projects and for bridging the gap between the total project cost and the grant received from external funding agencies in respect of 11 Distributed Generation (DG) Projects.

NTPC supported various Institutions/ Bodies and undertook initiatives for major activities as detailed below:

i. In Uttarakhand, NTPC is committed to provide support for setting up a technical polytechnic at Kaladungi, Dist. Nainital.

ii. In Kerala, NTPC has committed to provide support to Allapuzha medical College Hospital for one dialysis machine. The hospital will provide free medical facilities to the economically under privileged patients.

iii. In Orissa, NTPC has taken up Developmental works for Car parking, Water tanks and Lighting of approach road for Shree Jagannath Temple, Puri, a renowned cultural heritage site.

iv. Further in the field of Health, NTPC has committed to provide support to Hyderabad Eye Research Foundation for three specialized Eye Centers at Bhubneswar Eye Hospital, Bhubneswar, Orissa. These Centers will provide free medical facilities to the economically under privileged patients.

v. NTPC has also committed support to Centre of the Study of Values, Udaipur for assistance in self reliance for 200 tribal girls/ women in tribal area of Jhamar Kotra in Udaipur District, Rajasthan.

vi. NTPC supported and participated in the "Ability Mela" organized by Business & Community Foundation, Delhi for the benefit of Persons with Disability.

Labour Standard: Principle 3-6

For addressing the issue of labour standard in comprehensive manner, NTPC has decided to adopt international standards like SA-8000 and OHSAS-

18001.

During the year 2006-07, two of the NTPC stations viz Unchahar and Vindhyachal received SA-8000 accreditation. Anta, Auraiya, Badarpur, Faridabad, Kayamkulam, NCPP Dadri, Ramagundam, Simhadri, Talcher-Thermal and Tanda are already accredited in the previous years.

All the 20 operating Stations of NTPC have already obtained accreditation under OHSAS 18001. During 2006-07 seven stations viz. Anta, Kahalgaon, Kayamkulam, Korba, Ramagundam, Simhadri, and Singrauli have been re-certified under OHSAS 18001. Surveillance audits were conducted for OHSAS 18001 for all other stations.

Environment: Principle 7-9

Towards its commitment to environment NTPC has decided to adopt ISO-14001 and all its 20 operating stations have obtained accreditation for ISO-14001.

During the year 2006-07, six stations viz. Kayamkulam, Korba, Ramagundam, Simhadri, Singrauli and Tanda stations have been re-certified under ISO 14001. Surveillance audits were conducted for ISO-14001 for all other stations.