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« Back STATEMENT OF UNAUDITED STANDALONE & CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED 30 JUNE 2020

STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 30 JUNE 2020

(Rupee Crore)
Sl. No.ParticularsQuarter ended
30.06.2020
(Unaudited)
Quarter ended
31.03.2020
(Unaudited)
Quarter ended
30.06.2019
(Unaudited)
Year ended
31.03.2020
(Audited)
123456
1Income    
 (a) Revenue from operations23453.4627246.8824192.5997700.39
 (b) Other income567.541031.87326.222778.02
 Total revenue  (a+b)24021.0028278.7524518.81100478.41
2Expenses    
 (a) Fuel cost11508.1814988.4113874.3354241.82
 (b) Electricity purchased for trading860.74829.69784.482776.44
 (c) Employee benefits expense1287.771427.901195.814925.60
 (d) Finance costs 2082.521836.911565.266781.97
 (e) Depreciation and amortisation expense2529.742128.952050.958622.85
 (f) Other expenses 2051.692683.121885.598663.81
 Total expenses (a+b+c+d+e+f)20320.6423894.9821356.4286012.49
3Profit before exceptional items, tax and regulatory deferral
account balances (1-2)
3700.364383.773162.3914465.92
4Exceptional items-(income) / expense (Refer Note 8)802.57---
5Profit before tax and before Regulatory deferral account balances (3-4)2897.794383.773162.3914465.92
6Tax expense:    
 (a) Current tax522.723287.07696.405153.46
 (b) Deferred tax707.451696.58373.814028.49
 Total tax expense (a+b)1230.174983.651070.219181.95
7Profit/(loss) after tax and before regulatory deferral
account balances (5-6)
1667.62(599.88)2092.185283.97
8Net movement in regulatory deferral account balances (net of tax)802.541852.32510.614828.84
9Profit for the period (7+8)2470.161252.442602.7910112.81
10Other comprehensive income    
 Items that will not be reclassified to profit or loss    
 (a) Net acturial gains/(losses) on defined benefit plans(59.20)(152.81)(64.00)(346.04)
 (b) Net gains/(losses) on fair value of equity instruments11.70(21.36)(7.50)(41.64)
 Income tax on items that will not be reclassified to profit or loss    
 (a) Net acturial gains/(losses) on defined benefit plans10.3426.7013.7960.46
 Other comprehensive income (net of tax)(37.16)(147.47)(57.71)(327.22)
11Total comprehensive income for the period (9+10)2433.001104.972545.089785.59
12Paid-up equity share capital
(Face value of share Rupee 10/- each)
9894.569894.569894.569894.56
13Other  equity  excluding  revaluation  reserve  as  per  balance sheet   103674.88
14Earnings per share (of Rupee 10/- each) - (not annualised) (including net movement in regulatory deferral account balances): Basic and Diluted (in Rupee)2.501.272.6310.22
15Earnings   per   share   (of   Rupee   10/-   each)   -   (not   annualised) (excluding   net   movement   in   regulatory   deferral   account balances): Basic and Diluted (in Rupee)1.69(0.61)2.115.34

See accompanying notes to the standalone financial results.

STANDALONE SEGMENT-WISE REVENUE, RESULTS, ASSETS AND LIABILITIES FOR THE QUARTER ENDED 30 JUNE 2020

(Rupee Crore)

Sl.No.ParticularsQuarter ended 30.06.2020
(Unaudited)
Quarter ended 31.03.2020
(Unaudited)
Quarter ended 30.06.2019
(Unaudited)
Year ended 31.03.2020
(Audited)
123456
1Segment revenue    
      - Generation22958.8327079.0623516.9396583.92
      - Others1385.251384.301300.424991.11
      - Unallocated17.54188.0084.43428.19
      - Less: Inter segment elimination340.62372.61382.971524.81
      Total24021.0028278.7524518.81100478.41
2Segment results    
 Profit before interest, exceptional items and  tax (including regulatory deferral account balances)    
      - Generation7159.958638.445486.2127606.70
      - Others104.75122.34154.73569.02
      Total7264.708760.785640.9428175.72
 Less:    
 (i) Finance costs2082.521836.911565.266781.97
 (ii) Other unallocable expenditure net of unallocable income509.37295.62262.421076.68
 (iii) Exceptional items802.57---
 Profit before tax (including regulatory deferral account balances)3870.246628.253813.2620317.07
 Income tax expense (including tax on movement in regulatory deferral account balances)1400.085375.811210.4710204.26
 Profit after tax2470.161252.442602.7910112.81
3Segment assets    
      - Generation225747.72211353.34178489.85211353.34
      - Others7310.656685.205817.956685.20
      - Unallocated107841.53109628.91119140.08109628.91
      Total340899.90327667.45303447.88327667.45
4Segment liabilities    
      - Generation19928.0418410.2717472.5718410.27
      - Others3567.463841.803597.533841.80
      - Unallocated201435.60191845.94172415.89191845.94
      Total224931.10214098.01193485.99214098.01

The operations of the Company are mainly carried out within the country and therefore, there is no reportable geographical segment.

Notes to Standalone Financial Results:

1. The above standalone financial results have been reviewed by the Audit Committee of the Board of Directors in their meeting held on 14 August 2020 and approved by the Board of Directors in the meeting held on the same day.

2. The Joint Statutory Auditors of the Company have carried out the limited review of these standalone financial results as required under Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

3. a) (i)The CERC notified the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019 vide Order dated 7 March 2019 (Regulations, 2019) for determination of tariff for the tariff period 2019-2024. Pending issue of provisional/final tariff orders with effect from 1 April 2019, capacity charges are billed to beneficiaries in accordance with the tariff approved and applicable as on 31 March 2019, as provided in Regulations, 2019. In case of new projects, which got commercialised from 1 April 2019 and projects where tariff approved and applicable as on 31 March 2019 is pending from CERC, billing is done based on capacity charges as filed with CERC in tariff petition. Energy charges are billed as per the operational norms specified in the Regulations 2019. The amount provisionally billed for the quarter is  Rupee 21,618.11 crore (30 June 2019:  Rupee 23,124.53 crore).

(ii) Sales for the quarter ended 30 June 2020 have been provisionally recognized at Rupee 21,588.19 crore (30 June 2019:  Rupee 23,025.66 crore) on the said basis.

b) Sales for the quarter ended 30 June 2020 include Rupee 540.24 crore (30 June 2019: (-) Rupee 11.64 crore) pertaining to earlier years on account of revision of energy charges due to grade slippages and other adjustments.

c) Sales for the quarter ended 30 June 2020 include Rupee 20.39 crore (30 June 2019: Rupee 22.87 crore) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2019.

d) Revenue from operations for the quarter ended 30 June 2020 include Rupee 880.97 crore (30 June 2019: Rupee 824.73 crore) on account of sale of energy through trading.

4. The environmental clearance (“clearance”) granted by the Ministry of Environment and Forest, Government of India (MoEF) for one of the Company's project consisting of three units of 800 MW each, was challenged before the National Green Tribunal (NGT). The NGT disposed off the appeal, inter alia, directing that the order of clearance be remanded to the MoEF to pass an order granting or declining clearance to the project proponent afresh in accordance with the law and the judgement of the NGT and for referring the matter to the Expert Appraisal Committee ("Committee") for its re-scrutiny, which shall complete the process within six months from the date of NGT order. NGT also directed that the environmental clearance shall be kept in abeyance and the Company shall maintain status quo in relation to the project during the period of review by the Committee or till fresh order is passed by the MoEF, whichever is earlier. The Company filed an appeal challenging the NGT order before the Hon’ble Supreme Court of India which stayed the order of the NGT and the matter is sub-judice. All the units of the project have been declared commercial in the earlier years. The carrying cost of the project as at 30 June 2020 is Rupee15,508.93 crore (31 March 2020: Rupee 15,662.28 crore). Management is confident that the approval for the project shall be granted, hence no provision is considered necessary.

5. The Company is executing a hydro power project in the state of Uttrakhand, where all the clearances were accorded. A case was filed in Hon’ble Supreme Court of India after the natural disaster in Uttrakhand in June 2013 to review whether the various existing and ongoing hydro projects have contributed to environmental degradation. Hon’ble Supreme Court of India on 7 May 2014, ordered that no further construction shall be undertaken in the projects under consideration until further orders, which included the said hydro project of the Company. In the proceedings, Hon’ble Supreme Court is examining to allow few projects which have all clearances which includes the project of the Company where the work has been stopped. Aggregate cost incurred on the project up to 30 June 2020 is Rupee 163.52 crore (31 March 2020: Rupee 163.40 crore). Management is confident that the approval for proceeding with the project shall be granted, hence no provision is considered necessary.

6. An amount of Rupee 751.82 crore (31 March 2020: Rupee 749.01 crore) has been incurred upto 30 June 2020 in respect of one of the hydro power projects of the Company, the construction of which has been discontinued on the advice of the Ministry of Power (MOP), Government of India (GOI), which includes Rupee 442.14 crore (31 March 2020: Rupee 439.57 crore) in respect of arbitration awards challenged by the Company before the Hon'ble High Court of Delhi. In the event the Hon'ble High Court grants relief to the Company, the amount would be adjusted against provisions made in this regard. Management expects that the total cost incurred, anticipated expenditure on the safety and stabilisation measures, other recurring site expenses and interest costs as well as claims of  contractors/vendors for various packages for this project will be compensated in full by the GOI. Hence, no provision is considered necessary.

7. The Company had entered into an agreement for movement of coal through inland waterways for one of its stations. As per the agreement, the operator was to design, finance, build, operate and maintain the unloading and material handling infrastructure for 7 years, after which it was to be transferred to the Company at Rupee 1/-. After commencement of the operations, the operator had raised several disputes, invoked arbitration and raised substantial claims on the Company. Based on the interim arbitral award and subsequent directions of the Hon’ble Supreme Court of India, an amount of Rupee 356.31 crore was paid upto 31 March 2019.

Further, the Arbitral Tribunal had awarded a claim of Rupee 1,891.09 crore plus applicable interest in favour of the operator, during the financial year 2018-19. The Company aggrieved by the arbitral award and considering legal opinion obtained, had filed an appeal before the Hon'ble High Court of Delhi (Hon'ble High Court) against the said arbitral award in its entirety.

In the previous year, against the appeal of the Company, Hon'ble High Court vide its order dated 23 September 2019 held that subject to deposit of Rupee 500.00 crore by the Company with the Registrar General of the Court within six weeks, execution of the impugned award shall remain stayed till the next date of hearing and upon handing over the entire infrastructure in terms of the contract by the operator to the Company, the Registrar General shall release the amount to the operator against a bank guarantee. The said amount was deposited with the Hon'ble High Court on 5 November 2019. Hon'ble High Court vide its order dated 8 January 2020 directed the parties to commence formal handing over of the infrastructure in the presence of appointed Local Commissioner and also directed release of Rupee 500.00 crore to the operator by the Registrar General subject to the outcome of this application of the Company for formal handing over of the infrastructure. On 17 January 2020, unconditional bank guarantee was submitted by the operator to Registrar General and Rupee 500.00 crore was released to operator by the Hon’ble High Court. As per orders of Hon'ble High Court, formal handing over of the infrastructure started on 20 January 2020 at the project site. However, due to certain local administrative issues initially and further due to COVID-19 pandemic, Local Commissioner’s visit has been deferred. The handing over of the infrastructure facility has not yet completed.

Pending final disposal of the appeal by the Hon’ble High Court, considering the provisions of Ind AS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ and Significant Accounting Policies of the Company, provision has been updated by interest to Rupee 37.97 crore as at 30 June 2020 (31 March 2020: Rupee 37.92 crore) and the balance amount of Rupee 2,049.43 crore (31 March 2020: Rupee 2,014.84 crore) has been considered as contingent liability.

8. The Company is in the business of generation and sale of electricity which is an essential service as emphasized by the Ministry of Power, Government of India. During the outbreak of COVID-19, the Company has ensured the availability of its power plants to generate power and has continued to supply power during the period of lockdown. In line with the directions of MOP dated 15 & 16 May 2020, issued in accordance with the announcement of GOI under the Atmanirbhar Bharat Special Economic and Comprehensive package, to allow a rebate of between 20%-25% on the capacity charges during the lock down period subject to approval of the Board, an amount of Rupee1,363.00 crore has been approved by the Board, to be allowed during the year 2020-21 subject to fulfilling conditions stipulated. During the quarter, the Company has accounted for a rebate of Rupee 802.57 crore in respect of beneficiaries fulfilling conditions approved by the Board and the same has been disclosed as exceptional item. The balance amount will be accounted in respect of rest of the beneficiaries in case they meet the conditions approved by the Board.

Further, Central Electricity Regulation Commission issued an order dated 3 April 2020 whereby it was directed that Late Payment Surcharge (LPSC) shall apply at a reduced rate of 12% p.a. instead of the normal rate of 18% p.a. on the payments becoming overdue during the period from  24 March 2020 to 30 June 2020 to contain the impact of COVID-19. Further, under the Atmanirbhar Bharat package, the Company has deferred the capacity charges to DISCOMS for the lockdown period for the power not scheduled to be payable without interest after the lock down period in three equal monthly installments. The impact on profit for the quarter due to the reduction in LPSC rate and deferment of capacity charges, is not material.

The Company expects to fully recover the carrying amounts of the assets including receivables, other financial and non financial assets. The Company believes that the impact due to the outbreak of COVID-19 is likely to be short-term in nature and does not anticipate any medium to long-term risks in the Company's ability to continue as a going concern and meeting its liabilities as and when they fall due. The Company will continue to monitor any material changes to future economic conditions, considering the uncertainty involved therein.

9. During the quarter, one thermal unit of 660 MW at Khargone has been declared commercial w.e.f. 4 April 2020.

10. For all secured bonds issued by the Company, 100% security cover is maintained for outstanding bonds. The security has been created on property, plant and equipment through English/Equitable mortgage as well as hypothecation of movable assets of the Company.

11. Previous periods figures have been reclassified wherever considered necessary.

 

STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED 30 JUNE 2020

(Rupee Crore)

Sl. No.ParticularsQuarter ended
30.06.2020
(Unaudited)
Quarter ended 31.03.2020
(Unaudited)
Quarter ended 30.06.2019
(Unaudited)
Year ended 31.03.2020
(Audited)
123456
1Income    
 (a) Revenue from operations26194.7630201.0826886.22109464.04
 (b) Other income599.921114.24467.142908.54
 Total income (a+b)26794.6831315.3227353.36112372.58
2Expenses    
 (a) Fuel cost12101.9215804.0914590.4957185.62
 (b) Electricity purchased for trading1371.001447.511443.045185.95
 (c) Employee benefits expense1536.681624.041412.425830.48
 (d) Finance costs 2465.252211.301857.508116.85
 (e) Depreciation and amortisation expense2936.642613.232429.3010356.16
 (f) Other expenses 2237.552984.852081.579725.41
 Total expenses (a+b+c+d+e+f)22649.0426685.0223814.3296400.47
3Profit before exceptional items, tax, Regulatory deferral account balances and Share of net profit of joint ventures
accounted for using equity method (1-2)
4145.644630.303539.0415972.11
4Share of net profits of joint ventures accounted for using equity method134.0550.26147.12405.40
5Profit before exceptional items, tax and regulatory deferral
account balances (3+4)
4279.694680.563686.1616377.51
6Exceptional items-(income) / expense (Refer Note 9)836.76---
7Profit before tax and regulatory deferral account balances (5-
6)
3442.934680.563686.1616377.51
8Tax expense:    
 (a) Current tax583.293417.81768.275526.53
 (b) Deferred tax803.291530.31347.983821.01
 Total tax expense (a+b)1386.584948.121116.259347.54
9Profit  /  (loss)  after  tax  before  regulatory  deferral  account
balances (7-8)
2056.35(267.56)2569.917029.97
10Net movement in regulatory deferral account balances (net of tax)892.591791.33562.824872.01
11Profit for the period (9+10)2948.941523.773132.7311901.98
12Other comprehensive income    
 (a)Items that will not be reclassified to profit or loss    
  (i) Net acturial gains/(losses) on defined benefit plans(61.36)(171.80)(63.94)(372.10)
  (ii) Net gains/(losses) on fair value of equity instruments11.70(21.36)(7.50)(41.64)
  (iii) Share  of  other  comprehensive  income  of  joint  ventures
accounted for under the equity method
(0.06)0.74(0.32)(0.50)
 Income tax on items that will not be reclassfied to profit or loss    
  (i) Net acturial gains/(losses) on defined benefit plans10.6932.7613.3266.52
 (b) Items that will be reclassified to profit or loss    
  (i) Exchange differences on translation of foreign operations(4.84)31.40(2.42)40.00
 Other comprehensive income (net of tax) (a+b)(43.87)(128.26)(60.86)(307.72)
13Total comprehensive income (11+12)2905.071395.513071.8711594.26
14Profit attributable to owners of the parent company2890.391442.573086.8711600.23
15Profit attributable to non-controlling interest58.5581.2045.86301.75
16Other comprehensive income attributable to owners of the parent
company
(43.61)(124.75)(60.62)(303.43)
17Other comprehensive income attributable to non controlling interest(0.26)(3.51)(0.24)(4.29)
18Paid-up equity share capital (Face value of share Rupee 10/- each)9894.569894.569894.569894.56
19Other equity excluding revaluation reserve as per balance sheet   108944.60
20Earnings per share (of Rupee 10/- each) - (not annualised) (including net movement  in  regulatory  deferral  account  balances):  Basic  and Diluted (in Rupee)2.921.463.1211.72
21Earnings  per  share  (of  Rupee  10/-  each)  -  (not  annualised)  (excluding net movement in regulatory deferral account balances): Basic and Diluted (in Rupee)2.02(0.35)2.556.80

See accompanying notes to the consolidated financial results.

 

CONSOLIDATED SEGMENT-WISE REVENUE, RESULTS, ASSETS AND LIABILITIES FOR THE QUARTER ENDED 30 JUNE 2020

(Rupee Crore)

Sl.No.ParticularsQuarter ended 30.06.2020
(Unaudited)
Quarter ended 31.03.2020
(Unaudited)
Quarter ended 30.06.2019
(Unaudited)
Year ended 31.03.2020
(Audited)
123456
1Segment revenue    
      - Generation25304.3729708.9925663.03106441.61
      - Others2363.412536.652516.029425.86
      - Unallocated12.2525.2698.35162.13
      - Less: Inter segment elimination885.35955.58924.043657.02
      Total26794.6831315.3227353.36112372.58
2Segment results     
 Profit before interest, exceptional items and  tax (including regulatory deferral account balances)    
      - Generation8082.469300.996191.6330688.92
      - Others126.44149.58179.22605.39
      Total8208.909450.576370.8531294.31
 Less    
 (i) Finance costs2465.252211.301857.508116.85
 (ii) Other unallocable expenditure net of unallocable income380.61365.50101.38895.87
 (iii) Exceptional items836.76---
 Profit before tax (including regulatory deferral account balances)4526.286873.774411.9722281.59
 Income tax expense (including tax on movement in regulatory deferral account balances)1577.345350.001279.2410379.61
 Profit after tax2948.941523.773132.7311901.98
3Segment assets    
      - Generation271176.54249707.52209543.59249707.52
      - Others9597.048496.377949.308496.37
      - Unallocated112032.23119525.64143498.90119525.64
      - Less: Inter segment elimination529.27342.40444.39342.40
      Total392276.54377387.13360547.40377387.13
4Segment liabilities    
      - Generation27357.4925614.7624526.8525614.76
      - Others5228.255254.415305.515254.41
      - Unallocated238565.38228021.20216749.64228021.20
      - Less:Inter segment elimination529.27342.40444.39342.40
      Total270621.85258547.97246137.61258547.97

The operations of the Group are mainly carried out within the country and therefore, there is no reportable geographical segment.

Notes to Consolidated Financial Results:

1. The above consolidated financial results have been reviewed by the Audit Committee of the Board of Directors in their meeting held on 14 August 2020 and approved by the Board of Directors in the meeting held on the same day.

2. The Joint Statutory Auditors of the Company have carried out the limited review of these consolidated financial results as required under Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

3. The subsidiary and joint venture companies considered in the consolidated financial results are as follows:

a)Subsidiary CompaniesOwnership (%)
1NTPC Electric Supply Company Ltd.100.00
2NTPC Vidyut Vyapar Nigam Ltd.100.00
3Kanti Bijlee Utpadan Nigam Ltd.100.00
4Nabinagar Power Generating Company Ltd.100.00
5Bhartiya Rail Bijlee Company Ltd.74.00
6Patratu Vidyut Utpadan Nigam Ltd.74.00
7North Eastern Electric Power Corporation Ltd. (NEEPCO)100.00
8THDC India Limited (THDCIL)74.496
9NTPC Mining Ltd.100.00
b)Joint Venture Companies 
1Utility Powertech Ltd.50.00
2NTPC GE Power Services Private Ltd.50.00
3NTPC SAIL Power Company Ltd.50.00
4NTPC Tamilnadu Energy Company Ltd.50.00
5Ratnagiri Gas and Power Private Ltd.25.51
6Aravali Power Company Private Ltd.50.00
7Meja Urja Nigam Private Ltd.50.00
8NTPC BHEL Power Projects Private Ltd.50.00
9National High Power Test Laboratory Private Ltd.20.00
10Transformers and Electricals Kerala Ltd.44.60
11Energy Efficiency Services Ltd.47.15
12CIL NTPC Urja Private Ltd.50.00
13Anushakti Vidhyut Nigam Ltd.49.00
14Hindustan Urvarak and Rasayan Ltd.29.67
15Konkan LNG Ltd.14.82
16Trincomalee Power Company Ltd.50.00
17Bangladesh-India Friendship Power Company Private Ltd.50.00

All the above Companies are incorporated in India except Companies at Sl. No.16 and 17 which are incorporated in Srilanka and Bangladesh respectively.

During the quarter, the Company has incorporated a subsidiary company 'NTPC EDMC Waste Solutions Pvt.Ltd' ,a joint venture with East Delhi Municipal Corporation (EDMC) on 1 June 2020, with equity participation of 74:26 respectively to develop and operate state of the art / modern integrated waste management & energy generation facility. There was no financial transaction in the subsidiary company till 30 June 2020.

4.a) (i)The CERC notified the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019 vide Order dated 7 March 2019 (Regulations, 2019) for determination of tariff for the tariff period 2019-2024. Pending issue of provisional/final tariff orders with effect from 1 April 2019, capacity charges are billed to beneficiaries in accordance with the tariff approved and applicable as on 31 March 2019, as provided in Regulations, 2019. In case of new projects, which got commercialised from 1 April 2019 and projects where tariff approved and applicable as on 31 March 2019 is pending from CERC, billing is done based on capacity charges as filed with CERC in tariff petition. Energy charges are billed as per the operational norms specified in the Regulations 2019. The amount provisionally billed for the quarter is Rupee 23,373.98 crore (30 June 2019: Rupee 24,527.74 crore).

ii) Sales for the quarter ended 30 June 2020 have been provisionally recognized at Rupee 23,387.28 crore (30 June 2019:  Rupee 24,485.44 crore) on the said basis.

b) Sales for the quarter ended 30 June 2020 include Rupee 589.85 crore (30 June 2019: (-) Rupee 9.30 crore) pertaining to earlier years on account of revision of energy charges due to grade slippages and other adjustments.

c) Sales for the quarter ended 30 June 2020 include Rupee 20.39 crore (30 June 2019: Rupee 22.87 crore) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2019.

d) Revenue from operations for the quarter ended 30 June 2020 include Rupee 1,884.46 crore (30 June 2019: Rupee 2,048.61 crore) on account of sale of energy through trading.

5. The environmental clearance (“clearance”) granted by the Ministry of Environment and Forest, Government of India (MoEF) for one of the Company's project consisting of three units of 800 MW each, was challenged before the National Green Tribunal (NGT). The NGT disposed off the appeal, inter alia, directing that the order of clearance be remanded to the MoEF to pass an order granting or declining clearance to the project proponent afresh in accordance with the law and the judgement of the NGT and for referring the matter to the Expert Appraisal Committee ("Committee") for its re-scrutiny, which shall complete the process within six months from the date of NGT order. NGT also directed that the environmental clearance shall be kept in abeyance and the Company shall maintain status quo in relation to the project during the period of review by the Committee or till fresh order is passed by the MoEF, whichever is earlier. The Company filed an appeal challenging the NGT order before the Hon’ble Supreme Court of India which stayed the order of the NGT and the matter is sub-judice. All the units of the project have been declared commercial in the earlier years. The carrying cost of the project as at 30 June 2020 is Rupee 15,508.93 crore (31 March 2020: Rupee 15,662.28 crore). Management is confident that the approval for the project shall be granted, hence no provision is considered necessary.

6. The Company is executing a hydro power project in the state of Uttrakhand, where all the clearances were accorded. A case was filed in Hon’ble Supreme Court of India after the natural disaster in Uttrakhand in June 2013 to review whether the various existing and ongoing hydro projects have contributed to environmental degradation. Hon’ble Supreme Court of India on 7 May 2014, ordered that no further construction shall be undertaken in the projects under consideration until further orders, which included the said hydro project of the Company. In the proceedings, Hon’ble Supreme Court is examining to allow few projects which have all clearances which includes the project of the Company where the work has been stopped. Aggregate cost incurred on the project up to 30 June 2020 is Rupee 163.52 crore (31 March 2020: Rupee 163.40 crore). Management is confident that the approval for proceeding with the project shall be granted, hence no provision is considered necessary.

7. An amount of Rupee 751.82 crore (31 March 2020: Rupee 749.01 crore) has been incurred upto 30 June 2020 in respect of one of the hydro power projects of the Company, the construction of which has been discontinued on the advice of the Ministry of Power (MOP), GOI, which includes Rupee 442.14 crore (31 March 2020: Rupee 439.57 crore) in respect of arbitration awards challenged by the Company before the Hon'ble High Court of Delhi. In the event the Hon'ble High Court grants relief to the Company, the amount would be adjusted against provisions made in this regard. Management expects that the total cost incurred, anticipated expenditure on the safety and stabilisation measures, other recurring site expenses and interest costs as well as claims of  contractors/vendors for various packages for this project will be compensated in full by the GOI. Hence, no provision is considered necessary.

8. The Company had entered into an agreement for movement of coal through inland waterways for one of its stations. As per the agreement, the operator was to design, finance, build, operate and maintain the unloading and material handling infrastructure for 7 years, after which it was to be transferred to the Company at Rupee 1/-. After commencement of the operations, the operator had raised several disputes, invoked arbitration and raised substantial claims on the Company. Based on the interim arbitral award and subsequent directions of the Hon’ble Supreme Court of India, an amount of Rupee 356.31 crore was paid upto 31 March 2019.

Further, the Arbitral Tribunal had awarded a claim of Rupee 1,891.09 crore plus applicable interest in favour of the operator, during the financial year 2018-19. The Company aggrieved by the arbitral award and considering legal opinion obtained, had filed an appeal before the Hon'ble High Court of Delhi (Hon'ble High Court) against the said arbitral award in its entirety.

In the previous year, against the appeal of the Company, Hon'ble High Court vide its order dated 23 September 2019 held that subject to deposit of Rupee 500.00 crore by the Company with the Registrar General of the Court within six weeks, execution of the impugned award shall remain stayed till the next date of hearing and upon handing over the entire infrastructure in terms of the contract by the operator to the Company, the Registrar General shall release the amount to the operator against a bank guarantee. The said amount was deposited with the Hon'ble High Court on 5 November 2019. Hon'ble High Court vide its order dated 8 January 2020 directed the parties to commence formal handing over of the infrastructure in the presence of appointed Local Commissioner and also directed release of Rupee 500.00 crore to the operator by the Registrar General subject to the outcome of this application of the Company for formal handing over of the infrastructure. On 17 January 2020, unconditional bank guarantee was submitted by the operator to Registrar General and Rupee 500.00 crore was released to operator by the Hon’ble High Court. As per orders of Hon'ble High Court, formal handing over of the infrastructure started on 20 January 2020 at the project site. However, due to certain local administrative issues initially and further due to COVID-19 pandemic, Local Commissioner’s visit has been deferred. The handing over of the infrastructure facility has not yet completed.

Pending final disposal of the appeal by the Hon’ble High Court, considering the provisions of Ind AS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ and Significant Accounting Policies of the Company, provision has been updated by interest to Rupee 37.97 crore as at 30 June 2020 (31 March 2020: Rupee37.92 crore) and the balance amount of Rupee 2,049.43 crore (31 March 2020: Rupee 2,014.84 crore) has been considered as contingent liability.

9.The Group is mainly in the business of generation and sale of electricity which is an essential service as emphasized by the Ministry of Power, Government of India.During the outbreak of COVID-19, the group companies in the business of generation and sale of electricity  have ensured the availability of its power plants to generate power and have continued to supply power during the period of lockdown.  In line with the directions of  MOP dated 15 & 16 May 2020, issued in accordance with the announcement of GOI under the Atmanirbhar Bharat Special Economic and Comprehensive package, to allow a rebate of between  20%-25% on the capacity charges during the lock down period subject to approval of respective Board, an amount of Rupee1,510.47 crore has been approved by respective Boards, to be allowed during the year 2020-21 subject to fulfilling conditions stipulated. During the quarter, the Group has accouted for a rebate of Rupee 836.76 crore in respect of beneficiaries fulfilling conditions approved by respective Boards and the same has been disclosed as exceptional item. The balance amount will be accounted in respect of rest of the beneficiaries in case they meet the conditions approved by respective Boards.

Further, Central Electricity Regulation Commission issued an order dated 3 April 2020 whereby it was directed that Late Payment Surcharge (LPSC) shall apply at a reduced rate of 12% p.a. instead of the normal rate of 18% p.a. on the payments becoming overdue during the period from  24 March 2020 to 30 June 2020 to contain the impact of COVID-19. Further, under the Atmanirbhar Bharat package, the group companies in the business of generation and sale of electricity have deferred the capacity charges to DISCOMS for the lockdown period for the power not scheduled to be payable without interest after the lock down period in three equal monthly installments. The impact on profit for the quarter due to the reduction in LPSC rate and deferment of capacity charges, is not material.

The Group expects to fully recover the carrying amounts of the assets including receivables, other financial and non financial assets. The Group believes that the impact due to the outbreak of COVID-19 is likely to be short-term in nature and does not anticipate any medium to long-term risks in the Group's ability to continue as a going concern and meeting its liabilities as and when they fall due. The Group will continue to monitor any material changes to future economic conditions, considering the uncertainty involved therein.

10. During the quarter, one thermal unit of 660 MW at Khargone of the Company and one unit of 150 MW at Kameng Hydro Electric Project of a Subsidiary  have been declared commercial w.e.f. 4 April 2020 and 17 June 2020 respectively.

11. For all secured bonds issued by the Company, 100% security cover is maintained for outstanding bonds. The security has been created on property, plant and equipment through English/Equitable mortgage as well as hypothecation of movable assets of the Company.

12. The figures for the quarter ended 30 June 2019 have been restated consequent to acquisition of 74.496% and 100% of paid up equity share capital, held by Government of India, in THDCIL and NEEPCO respectively w.e.f. 27 March 2020 and accounted as a common control acquisition considering Appendix C of Ind AS 103- Business Combinations in the previous financial year.

13. Previous periods figures have been reclassified wherever considered necessary.

 

For and on behalf of the Board of Directors of NTPC Limited
Sd/-
(A.K.Gautam)
DIRECTOR (FINANCE)
DIN:08293632

Place: New Delhi
Date: 14 August 2020