(47th Annual General Meeting | 30.08.2023)
Dear Shareholders,
It is my pleasure to welcome you all to the 47th Annual General Meeting of your Company.
First, I would like to extend my heartfelt gratitude to all our investors and shareholders for their support and confidence in the Company's growth prospects. With your belief in our vision, we are motivated to continue striving for excellence and delivering long-term value. Your unwavering support and commitment have been instrumental in our journey, and for that, I am truly thankful.
The uncertainties posed by the global environment in terms of supply chain constraints, fuel availability issues and rising interest rates were navigated with great agility. The turbulent operating environment of the past few years has reinforced our commitment to the long-term objective of providing reliable, affordable, and clean power supply for all.
We have been carefully monitoring the fuel supply situation and taking corrective actions continuously to ensure energy security for the country.
We remain committed to driving sustainable growth and maximizing shareholder value through continued innovation, strategic partnerships, and a customer-centric approach.
Some of the significant achievements are:
- Your Company fast-tracked its energy transition plans and made significant progress in renewables. With consistent efforts and the adoption of dynamic business models, our total renewable pipeline has crossed the 20 GW mark. We are working on several new partnerships including C&I consumers.
- In FY23, the Company’s organic non-fossil capacity addition surpassed fossil capacity addition, signifying our strong commitment in the energy transition journey.
- During the FY23, your Company achieved a capacity addition of 3,292 MW, with a commercial capacity addition of 3,952 MW. This also includes a significant contribution of 1,352 MW from renewable sources and the first-ever overseas capacity of 660 MW in Bangladesh through a Joint Venture.
- Your Company added 770 MW in Q1 FY24, elevating the NTPC group's total installed capacity to 73,024 MW.
- Your company recorded an all-time high generation of 399.2 BU in the FY23, registering a growth of 11% as compared to the country's generation growth of 8.8% in the same period.
- Eight of your Company’s coal stations figured in the top twenty-five best-performing stations of the country in terms of PLF. The achievement demonstrates our best-in-class asset management practices and the capability of human resources.
- We have successfully commissioned a blending project that incorporates green hydrogen with PNG (Piped Natural Gas). Further, our first Hydrogen bus reached Leh for field tests.
- We are also working with the Indian Army to set up green hydrogen-based microgrids in remote locations.
- Your Company achieved coal production of 23.2 million metric tons (MMT) during FY23, marking a growth of 65%. Further, in Q1 of FY24, we have registered a growth of over 100% in coal production as compared to Q1 FY23.
- The Business Transfer Agreement (BTA) for the transfer of all coal mines to the wholly owned subsidiary, NTPC Mining Limited (NML) has been approved. This will help mine development with a focused approach and pave the way for venturing into commercial mining and exploring opportunities in non-coal mining activities as well.
- The Ministry of Coal recently invited bid for auction of commercial coal mines where NML emerged as the winner in securing the North Dhadu (East) coal mine in Jharkhand. With this, we have demonstrated our competitiveness in coal mining in addition to renewables.
- NEEPCO, a wholly owned subsidiary of NTPC, signed an agreement with the Government of Arunachal Pradesh for the development of 2626 MW of Hydro projects.
- We have achieved the realization of 100% of the billed amount in FY23. We also exceeded our capex target for the year.
- We successfully demonstrated a Municipal Solid Waste (MSW) to the Green Charcoal plant at Varanasi. With this, more such facilities are being considered.
- Our pioneering efforts in leading India's clean energy transition and emphasis on training have garnered global recognition. Your Company’s contributions to the sector have been acknowledged through prestigious accolades, including the highly esteemed global awards presented by S&P Platts and ATD BEST.
We are at forefront of India’s Energy Transition
Your Company takes great pleasure in sharing the continued success in securing renewable bids, emerging its position as a formidable player in India's renewable market. Our dedication to achieving the targeted renewable capacity addition has propelled us to the forefront of the industry to explore various models and devise innovative business strategies that ensure long-term viability and attractive returns.
With our consistent efforts, we are confident of achieving our targeted 60 GW renewable capacities before the timeline. Additionally, we are working on various storage solutions including large-scale Pumped Storage Projects (PSP).
To facilitate its ambitious growth plans, your Company is actively collaborating with start-ups, innovators, manufacturers, commercial and industrial consumers, as well as leading institutions. By harnessing the collective expertise and synergies of these partnerships, we are confident in achieving our targeted capacities within the stipulated timelines.
Further, the Ministry of New and Renewable Energy has identified us as one of the implementing agencies to auction 50 GW of renewable capacity every year for the next 5 years.
While continuing our efforts for renewable capacity addition, we are also working on various strategies including an Initial Public Offer (IPO) which will unlock value to our renewable business
ESG centric growth
Your Company prioritizes sustainability in a manner that respects the diverse aspects of its operations. I am happy to share with you that your Company’s ESG rating (by Sustainalytics) has improved by one band in the last fiscal.
As a key player in India's energy transition journey, your Company is going to play a critical role as it is the largest contributor to country's power generation.
Accordingly, Water conservation and circular economy have already been made part of your Company’s core business strategy. We are continuously working on optimizing our water footprint by adopting technological measures.
In terms of Corporate Social Responsibility (CSR), your Company continues to be one of the largest corporate spenders in India. We have initiated several schemes like supporting archery, Girl Empowerment Mission, Swachh Vidyalaya etc., which are expected to make a positive impact in the long run.
I am happy to share that in the recently concluded (August-2023) “World Archery Championship” in Berlin, Indian archers won 3 historic gold medals.
Your Company is actively pursuing "just transition" by not only incorporating clean energy into its portfolio but also by providing skilling opportunities to the youth of the country.
We remain dedicated to our sustainability goals and are constantly striving to improve our performance across various dimensions. Through transparency, accountability, and proactive measures, we aim to create a positive impact on the environment, society, and economy.
Financial performance
Despite a challenging economic environment, your Company demonstrated strong growth and achieved remarkable financial results. This growth was driven by an increase in generation from the existing assets as well as newly commissioned Units. Additionally, our diligent cost management strategies and operational efficiencies contributed to achieving the highest-ever profit of ₹17,197 Crore during the FY23 as against ₹ 16,282 Crore in FY 22, registering an increase of 6%.
We remain focused on our commitment to optimizing financial performance, ensuring consistent returns for shareholders, and upholding our position as a trusted and responsible player in the industry.
In FY23, the Board of Directors of your Company has recommended a final dividend of 30% of paid-up capital, equivalent to ₹3 per share. This recommendation is subject to the approval of Shareholders in the Annual General Meeting. Additionally, it is worth noting that this final dividend is in addition to the interim dividend of 42.5% of paid-up capital, already paid at ₹4.25 per share.
By remaining agile, adapting to market dynamics, and leveraging our strong financial foundation, we are confident of our ability to deliver consistent and sustainable growth in the years to come.
Corporate Governance
We prioritize sound corporate governance and remain steadfast in our commitment to ethical corporate practices. Our actions are guided by principles of ethics, transparency, fairness, professionalism, and accountability. These values serve as the foundation for the actions of our employees and management.
We recognize the importance of upholding the trust and confidence reposed in us. By practicing sound governance principles and consistently fostering a culture of integrity, we aim to ensure that your Company operates in a manner that aligns with the best interests of all our stakeholders.
Unmatched growth potential
The Indian power sector is undergoing a significant transformation, driven by government policies. The demand is growing at an exceptional pace owing to rapid economic development, Industrialization, and urbanization.
The country has recently crossed a peak demand of 234 GW with a non-solar peak of 216.5 GW and is set to grow further. With the economic activities gaining further momentum, leading to increased energy demand, as the largest utility in the country, your Company plays a crucial role in meeting the growing power requirement and is pursuing opportunities to expand its presence across the energy spectrum. This provides huge opportunities for your Company to maximize its reach and offers room for adding more and more capacities.
To facilitate the integration of more and more renewables, there is a huge requirement for adding storage capacities including pumped storage. Your company is well-placed to seize this opportunity.
Your Company has developed its experience in renewables, storage, and green hydrogen. As we pursue energy transition, we are strengthening our existing core business while building a new core, to continue growth momentum and stay ahead of the curve.
We are constantly working on imbibing agility in the workforce, improving the capability of our employees, and building a strong leadership pipeline. I am happy to share that many of your Company’s former employees are playing leading role in major power utilities in the country now. This is possible due to our continuous thrust on employee capability development.
Our focus is on completing existing projects, fast-tracking new ones, and operating our fleet efficiently and reliably. Simultaneously, we are adding renewable capacity aggressively and exploring opportunities in green hydrogen, nuclear including Small Modular Reactors (SMRs), green charcoal, CCU, green chemicals, and more. Additionally, two nuclear power projects, Chutka and Mahi Banswara will be developed through a joint venture between NTPC and NPCIL.
Through diversification, collaboration, and innovative business models, we aim to not only maintain our leadership position but to scale new heights and ensure sustained returns for our shareholders. These initiatives position us for success in the dynamic energy landscape while contributing to a sustainable and prosperous future for all.
Acknowledgement
I would like to extend my heartfelt thanks and gratitude to the Government of India, particularly the Ministry of Power, Ministry of Coal, Ministry of Railways, Ministry of Environment, Forest, and Climate Change, Ministry of New and Renewable Energy, DIPAM, CERC, CEA, CAG, State Governments, our esteemed Customers, Auditors, Vendors and other authorities and agencies who have provided continued support and has been instrumental in our success.
I would also like to express my appreciation to my fellow Board members for their invaluable contributions towards strengthening the Company. I am deeply grateful to our investors, shareholders, employees, and customers for their trust and support. Your trust is highly valued, and we remain committed to working tirelessly to uphold it.
Once again, I extend my sincere thanks to all stakeholders for their trust and confidence in your Company. We are dedicated to surpassing expectations and creating a sustainable energy future.
Thank you!
Gurdeep Singh
Chairman & Managing Director