Investors

Chairman's Statement

(45th Annual General Meeting)

Dear Shareholders,

It is my pleasure to welcome you all to the 45th Annual General Meeting of your company. With your support, your company has strengthened its fundamentals year after year and emerged as one of the largest and best power utilities in the world.

Before presenting the achievements and targets, I would like to brief about the actions taken for control of COVID-19.

The second wave of the pandemic had a significant impact on lives, livelihoods, and the businesses. The coronavirus pandemic has challenged the entire humanity.

As the government has taken steps for containing the spread of the virus and providing vaccination for all, we have responded rapidly by putting the safety, health and wellbeing of our employees, their families, and other stakeholders as our topmost priority.

Quick action was taken for upgradation of our health care infrastructure including setting up of dedicated COVID hospitals and oxygen plants. We have also extended help to State Governments by way of strengthening their healthcare infrastructure and providing essential medical equipment.

As the country’s largest and responsible power company, your company has ensured that its generators are on bar to meet the power requirement of the country while continuing fighting with the pandemic. Even when many employees were affected by the virus, 24X7 power supply was ensured.

Despite our utmost efforts, unfortunately we lost a few employees and family members. My heartfelt condolence to their families. For taking care of the families of deceased employees, your company was among the first to put in place policies to help their families.

Your company also had to face unprecedented natural calamity that affected Uttarakhand and our Tapovan Vishnugad hydro project. I would like to extend my deepest condolences for the families of all those who lost their lives in this natural calamity. We would like to put on record our gratitude to the Govt. of India, Govt. of Uttarakhand, District authorities, SDRF, ITBP, Indian Army and NDRF for all the support which they extended for rescue and search operations.

In these difficult times, the commitment of employees and cooperation of the stakeholders has helped in ensuring that our growth trajectory remains intact.

We have made significant achievements during the past year and took several new initiatives for transforming NTPC to a more robust organization.

Your company improved its realization, established clear leadership in winning RE bids, started foray into e-mobility, participated in bidding of distribution, continued capacity addition programme and met its capex targets.

Some of the significant achievements are:

  • NTPC group topped the 300 BU generation mark for 2nd time and registered highest generation since inception.
  • Recorded highest ever single day gross generation of 1192 MU in FY21. We have also registered fastest 100 BU generation mark in FY22, which was achieved in 104 days.
  • Our coal stations maintained a positive difference of over 12% as compared to the national PLF of coal stations. The generation share also reached nearly 24%.
  • Our oldest units Singrauli#1 and Korba#2 achieved over 100% PLF again and stood as top performing Units in the country which underlines your Company’s standing as the best in class.
  • Achieved capacity addition of 4160 MW in FY21 and 1090 MW in FY22 till date. NTPC is now close to a 67 GW company.
  • Realized 100% of the billed amount and realization crossed one lakh crores for the first time.
  • A total of 1560 MW of renewable bids won in FY21, which constitute 15% of total bids finalized in the country in FY21, through open competition. We have also won 2765 MW RE bids in FY22 till date. NTPC has now emerged as a serious player in Indian RE sector.
  • As indicated last year, a separate subsidiary for renewables, NTPC Renewable Energy Limited has been formed to add renewables through focused approach. We will also list this company in due course.
  • Achieved 11 MMT of coal production from captive mines.
  • We have adopted a proactive refinancing strategy to leverage market conditions for availing low-cost debt. This has resulted in raising the most competitive debt in the market.
  • Your company has been conferred “Excellence” in the prestigious CII-ITC sustainability award-2020 in “Corporate Social Responsibility” category. It has also secured 5th position (Utilities segment) in Forbes – World’s Best Employer list – 2020 and 1st in PSUs (India).

Your company has delivered robust financial performance in FY21. It has registered its highest ever profit of ₹13,769.52 Crore, registering an increase of 36.16% over previous year.

In FY21, the Board of your company has recommended final dividend @31.50% of paid-up capital i.e @ ₹3.15 per share subject to approval of Shareholders in the Annual General Meeting in addition to the interim dividend @ 30% of paid-up capital. This is the 28th consecutive year that the company has paid dividend. Additionally, for the first time, we have undertaken buyback of 2% of paid-up capital in FY21.

Indian power sector is evolving at a fast pace and the power demand is increasing rapidly. The country recently witnessed all-time high peak demand of 200.57 GW and energy met of 4508 MU in a day on July 07, 2021. The country also registered a generation growth of over 13% in FY22 till 26th September, 2021. The growth in demand augurs well for the company. These numbers coupled with ‘Atmanirbhar Bharat’ initiative indicate that there is huge potential for growth in the power sector going forward.

While focusing on growth, we have taken significant steps for spearheading energy transition to deliver Next level of growth and excellence and to make NTPC a “Sustainable Integrated Energy Company”.

With the focus shifting towards cleaner sources of power and the Government setting a target of 450 GW of RE capacity by 2030, we have also sharpened our focus on RE as the next pillar of growth. Your company has prepared its business plans to tap this opportunity appropriately while continuing work on operating its thermal fleet efficiently, economically, and reliably to meet the growing energy needs of the country.

We have made plans for creating a renewables portfolio which could be as large as the thermal portfolio. Accordingly, the renewable targets have been revised to 60 GW from 30 GW by 2032.

NTPC REL has received approval from the Ministry of New and Renewable Energy for setting up of 4750 MW renewable energy park in Rann of Kutch in Gujarat, which is the largest in the country. Approval has also been received from Government of Madhya Pradesh for development of solar plant in the land acquired for a coal-based plant. Additionally, discussions are also in progress with various State Governments for allocation of land parcels and water bodies. With all these, activities have commenced for reaching the targeted capacity addition.

Your company believes that Green Hydrogen is going to occupy significant energy space in future and the interplay between electrons and molecules would lead to significant benefits. Accordingly, we have initiated development projects as well as field demonstration projects for Hydrogen production. An agreement has been signed with Union Territory of Ladakh for setting up of country’s first green Hydrogen mobility project in the region.

We have taken up pilot projects on fuel cell-based storage and short-term energy storage micro grid project. Additionally, R&D works are in progress for development of High Temperature Steam Electrolysers, Static Hydrogen Compression System, and development of sea water electrolyser.

We are exploring various options using Hydrogen like transport, blending with natural gas, green ammonia, methanol etc. and aspire to lead “Hydrogen Economy” in India and globally.

On sustainability front, I would like to reaffirm that we are committed to make fundamental changes in our business to transform ourself into the most sustainable power producer as well as to become more transparent in the timely disclosure of our social, environmental, and economic performances. We had already adopted integrated reporting for our sustainability performance disclosures along with financial disclosures.

In our quest to deliver sustainable and affordable energy, we have declared our Energy Compact goals at UN and became the 1st energy company in the world to do so. Our current zero-carbon based energy capacity is around 7.5 % and with further massive RE addition, we anticipate reducing our specific CO2 emissions substantially over the years.

As indicated earlier, we have taken up development of an eco-park at the ash pond of Badarpur power plant, post its shut down, which will be bigger than New York city Central Park and shall act as “Green Lungs” for National Capital Region of Delhi. The Park will be ready by FY23. This displays our commitment towards environment.

All our coal units are being equipped with Flue Gas Desulphurization system for reducing SOX emission as per Moef&CC notification. Under ‘Blue Sky’ initiative, to address the issue of stubble burning in the northern part of India, we have started co-firing in 14 of our coal plants. To find a technological solution, a technical hackathon was also conducted. With the objective of increasing farmers income and promote entrepreneurship, several awareness and vendor development programmes were undertaken. As a result of these initiatives, 109 vendors have participated in recently invited tender.

Operating in a water intensive sector, we consider it as our moral responsibility to undertake water efficiency measures at significant scale and set tougher targets. Towards this end, your company has become signatory of UN CEO Water Mandate to better its water stewardship programs as part of long-term Sustainable Development goals.

Being a responsible corporate organization, community engagement is one of our business priorities. In FY21, we have spent around ₹419 crore towards various CSR activities. It gives me immense pleasure to share with you that your company has partnered with Archery Association of India since 2018. The Indian archers have won Seven gold medals and one bronze medal in the world cup held at Paris. They also represented India at Olympic Games Tokyo 2020 and Paralympic Games Tokyo 2020.

Many power sector reforms are being introduced by the Government. New market mechanisms are under discussion to promote competition thereby providing affordable power to the consumers. While these policies and reforms offer new opportunities and bring discipline into the sector, they will also offer certain challenges. We are geared up to adapt to these changes and working on various models to maintain leadership in the sector.

Your company believes in setting standards of transparency and sound systems. It has put a well-defined Risk Management Framework in place involving risk optimization, risk strategy, risk reporting structure and its monitoring.

We are working on improving and to achieve excellence in every facet of our business. With the start of plying of 40 e-buses in Port Blair, your company has forayed into e-mobility. Efforts are also underway for increasing power trading through NVVNL. We are focusing on increasing business portfolio of NVVNL which will also be listed in due course.

We have taken initiative to explore setting up of captive industries and sought Expression of Interest for the same. Additionally, we are exploring tying up with Commercial and Industrial (C&I) consumers for direct supply of power.

Your company believes in digitalization and automation as the key drivers for improving business efficiency, speed, transparency, and efficacy. Accordingly, we are deploying various digital, AI/ML tools for power plant operation to increase efficiency, safety, cost optimization, ensuring cyber security and to reduce downtime.

We are actively pursuing various option for increasing geo-strategic reach. We have undertaken PMC assignments for 1835 MW solar capacity under ISA programme in 5 countries.

We are constantly working on imbibing agility in workforce, improving the capability of our employees and building a strong leadership pipeline. Various initiatives have been taken in Human Resource front to make the organization future ready including introduction of job rotation and undergoing compulsory training before taking up new responsibilities.

We are constantly working on improving our competitiveness. Efforts are underway for improving the profitability and thereby increasing the wealth of the shareholders. With constant efforts, the under-recoveries on account of fuel were eliminated in FY21. Additionally, with strong focus on efficiency improvements, adoption of best O&M practices and optimization of fuel linkages, the Energy Charges Rate (ECR) of your company’s coal plants were reduced, which resulted in savings to the tune of ₹4500 crore for the beneficiary states.

I take this opportunity to place on record my sincere thanks and gratitude to the Government of India, particularly 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 valued Customers, Auditors, Vendors, other authorities and agencies that provided unstinted support.

I convey my appreciation to my colleagues on the Board for their invaluable contribution in strengthening the Company. I express my sincere thanks to investors, shareholders, employees, and customers for their unstinted cooperation.

Your company values your trust and confidence and shall continue to work tirelessly to take it forward.

Thank you,


(Gurdeep Singh)
Chairman & Managing Director