SUSTAINABILITY REPORT 2007-08

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NTPC Sustainability Report 2007-08

Index
Chapter I II III 0 I! ! !I Corporate "o#ernance 3 $e% Impacts& Challenges and 'pportunities..(( Performance Indicators )conomic.. (* )n#ironment..(+ ,ocial. 3* Addendums.-0 A..re#iations.-( "RI Indicator Inde0-Assurance ,tatement..................................................................-1 Title Page

Message from the Chairman.. 03 Report Parameters..08 An Introduction to NTPC...

!II !III I/ /

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CHAPTER I essa!e "ro# t$e C$air#an

2ear ,ta3eholder& It is m% pleasure to present the first ,ustaina.ilit% Report of NTPC 4td. This Report summari5es the progress along the principles of sustaina.ilit% that NTPC has espoused since its inception in 1+-. NTPC6s sustaina.ilit% strateg% has e#ol#ed o#er the %ears in direct response to a#aila.le technolog% and sta3eholder concerns along 7ith distinct elements of proacti#e initiati#es. I consider sustaina.ilit% reporting as a d%namic process and it 7ill continue to e#ol#e& ser#ing as a platform for dialogue 7ith our sta3eholders& as 7ell as .uilding an archi#e of our sustaina.ilit% .enchmar3s. NTPC% Po&erin! a illion S#iles

As the largest po7er generating compan% in India& NTPC is positioned as a po7er leader 7ith tremendous potential for spearheading the nation6s commitment to sustaina.le po7er generation. 8hile po7ering India9s gro7th& 7e at NTPC .elie#e in touching the li#es of the people and caring for the planet. NTPC prides itself in .eing a strong communit% partner. 8e resol#e to emerge on the glo.al hori5on as a :model energ% compan%6& ma0imi5ing #alue for all the sta3eholders 7ith special focus on the en#ironment& societ% and go#ernance. NTPC toda% accounts for (1; of India6s total po7er generation through a large and efficient fleet of (( po7er generating stations <total capacit% 3 &000 M8 plus=. NTPC is steadil% mo#ing to7ards its stated o.>ecti#e of .ecoming a +-&000 M8 Plus Compan% .% the %ear (0 +. NTPC is pursuing strategic integration along the po7er?#alue?chain through its entr% into coal mining& po7er e@uipment manufacturing& po7er trading& po7er distri.ution and its lateral di#ersification into h%dro& ne7 rene7a.les and nuclear po7er. Presentl% our installed capacit% is 3 & 3A M8 including (&(1A M8 under >oint #entures. A capacit% of +&830 M8 is under construction and +&01( M8 is under .idding. Beasi.ilit% Reports ha#e .een appro#ed for a capacit% of A&+0- M8. Beasi.ilit% Reports for a capacit% of nearl% (0&000M8 are under different stages of preparation. Burther& NTPC is effecti#el% pursuing strategic integration along the po7er?#alue?chain through its entr% into coal mining& po7er e@uipment manufacturing& po7er trading& po7er distri.ution and its lateral di#ersification into h%dro& ne7 rene7a.les and nuclear po7er. NTPC has em.ar3ed on a >ourne% of .ecoming the most #alua.le compan% in the countr%& one of the largest integrated po7er ma>ors in the 7orld and a leader in "R))N P'8)R .% the %ear (03(. Carin! "or t$e En'iron#ent 8e are dri#en .% our !ision concerning Climate Change& 7hich is& C(oin! Hi!$er on (eneration ) redu*in! (H( e#issionsC. NTPC is amongst the cleanest fossil fuel .ased large po7er generators in the 7orld as its C'( intensit% is compara.le 7ith the .est. As the largest and most efficient po7er utilit% in India& 7e are committed to pla% our role in dealing 7ith the climate change related issues and 7e are pla%ing an acti#e
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role in finding solutions. Adoption of ne7 technologies 7ith resultant reduction in C' ( intensit% and monitoring the emissions at the po7er stations are among the steps ta3en .% NTPC. 8e are also engaged in research to promote sustaina.le energ%. Super*riti*al and +ltra super*riti*al te*$nolo!ies 8e ha#e .een pioneering introduction of ne7 technologies in the Indian po7er sector and are adopting super?critical and ultra super?critical technologies for raising the c%cle efficienc% of po7er units from 38; to o#er A0;. An appro0imate estimation sho7s that .% adoption of super?critical technolog% 7ith unit configuration of */**0 M8 or -/800 M8& the coal consumption o#er the (- %ears9 life time of the po7er plant reduces .% (* to 30 million tons as compared to coal consumption .% a t%pical su.?critical A&000 M8 po7er plant 7ith unit configuration of 8/-00 M8. The conse@uent C' ( emission reduction is also e0pected to .e a.out 33 million tons. 8 super critical units of **0 M8 are alread% under construction. NTPC plans to underta3e the ultra supercritical technolog% .% the end of (th Bi#e Dear Plan. ,ut o" t$e total *oal-based *apa*ity to be de'eloped durin! -2t$ Plan period. o'er /00 &ill be based on t$e super*riti*al or ultra super*riti*al te*$nolo!y1 2urin! t$e -2 t$ Plan period. t$e Co#pany plans to indu*t ultra super*riti*al te*$nolo!y also1 "oing to underta3e super?critical units in a large num.er of pro>ects& and e#en ultra super?critical units in the longer term 7ill not onl% sa#e su.stantial amount of coal& a non?rene7a.le resource& .ut also su.stantiall% reduce C'( emissions C,2 onitorin! and A#bient Air 3uality onitorin! Syste#s 4AA3 S5

Bor monitoring 3e% en#ironmental parameters including presence of C' ( in the am.ient air& * AAEM, ha#e .een installed at (0 po7er stations. NTPC has ta3en action to procure e@uipments for online stac3 C'( monitoring for all the e0isting stations. ,uch on? line C'( monitoring e@uipments 7ill .e installed at all the ne7 pro>ects starting 7ith Farh. NTPC has ta3en initiatives to improve efficiency and reliability of its units through Energy Efficiency Management Systems (EEMS) 1 This is a thrust area of our 'GM strateg%. There is an international practice of measuring :C'( a#oided6 to assess the en#ironmental efficienc% of the enterprise. The :C'( a#oided6 since 11- in NTPC stations is estimated to .e (+ million tons. Te*$nolo!y Road#ap 2062 8e are de#eloping a long?term technolog% roadmap for the period up to (03( 7ith an o.>ecti#e of ma3ing NTPC economicall% #ia.le and sustainable- ele*tri*ity pro'ider .% adoption& de#elopment and promotion of safe& efficient and clean technologies. The main target areas of the technolog% adoption plan are energ% di#ersit%& efficienc% increase& climate change& impro#ement of relia.ilit%& impro#ed safet%& .etter afforda.ilit%& energ% conser#ation& automation& increased use of information technolog% and speed% e0ecution of ne7 pro>ects.
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C$an!in! t$e Ener!y- #ix "or Sustainable Ener!y 2e'elop#ent The Compan% has a target of setting up h%dro po7er capacit% of 1&000 M8& nuclear po7er capacit% of (&000 M8& and rene7a.le energ% capacit% of &000 M8 .% (0 +. NTPC !id%ut !%apar Nigam 4imited <N!!N=& the trading arm of NTPC& has .een appointed as the Nodal Agenc% for the first phase of the National ,olar Mission for (001? 3. In the long run& s7itching o#er to non?fossil fuel .ased po7er generation holds the 3e% to mitigation and sustaina.ilit%. 8ith 7ider dissemination of technolog%& the cost of rene7a.le energ% is li3el% to .ecome afforda.le in the future. NTPC is planning to .e a leader in green po7er .% the %ear (03(. Ener!y Resear*$ The Compan% has earmar3ed ; of its profit for research and technolog% de#elopment. In order to integrate the efforts of the Research and 2e#elopment 2epartment 7hich 7as earlier doing applied RG2 to support station performance and the )nerg% Technologies 2epartment 7hich 7as engaged in fundamental research and de#eloping cutting edge technologies& NTPC has merged the t7o departments and created :NTPC )nerg% Technolog% and Research Alliance9. N)TRA is housed in the first )nerg% Conser#ation Fuilding Code <)CFC= compliant .uilding in the Compan%. 8e are planning to ha#e M8 solar thermal po7er plant at N)TRA. Resear*$ "or C,2 #iti!ation NTPC is le#eraging its state?of?the art research facilit%& NTPC )nerg% Technolog% Research Alliance <N)TRA= for car.on fi0ation and utili5ation related research and technolog% de#elopment& de#elopment of solar po7er plants& de#elopment of clean coal technologies and I"CC suited to Indian coal. N)TRA is imparting #er% special focus on studies concerning gainful utili5ation of C'( and capture of C'( through different pro>ects underta3en .% it. N)TRA is engaged in a stud% using micro marine algae for C'( a.sorption. N)TRA is engaged in C' ( related studies in association 7ith leading research institutes li3e C,IR& National Chemical la.orator% <NC4=& Pune and Indian Institute of Petroleum& 2ehradun. Intensi'e A""orestation 8e ha#e planted more than 8.- million trees. The sur#i#al rate is o#er 80 per cent. This green 7ealth pro#ides a car.on sin3. En!a!e#ent &it$ So*iety - 2eep and Extensi'e So*ial Conne*t Committed to the cause of inclusi#e and sustaina.le socio?economic de#elopment& NTPC .elie#es in fulfilling larger societal purposes& going .e%ond po7er generation and 7ealth creation. 8e are focusing on .eing more accessi.le and .ecoming a strong local communit% partner. 8e support the local communities through a 7ide #ariet% of C,R programmes. 8e .elie#e that our resources and emplo%ees can profoundl% impact the 7orld around us. The spirit of #olunteerism promoted .% the Compan% has resulted in (N"'s .eing run .% our emplo%ees for C,R acti#ities. The focus areas for NTPC9s C,R initiati#es include H
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<i= <ii= <iii= <i#= <#= <#i=

)mpo7ering the ph%sicall% challenged 8omen empo7erment& including educational facilities for girls !ocational education and training Iealth care support Communit% 2e#elopment and Infrastructure Fuilding Rural )lectricification

(ood Re$abilitation and Resettle#ent 4R7R5 dispensation NTPC has .een sensiti#e to the needs and aspirations of the Pro>ect Affected Persons <PAPs=. Accordingl%& the Compan% has al7a%s tried for the .est possi.le RGR pac3age for the PAPs. In 3eeping 7ith this tradition& the RGR scheme adopted for the PAPs at NTPC9s Pa3ri Far7adih <PF= mining pro>ect in Jhar3hand is one of the .est such schemes in the countr%. Sa"ety at &or8 Pla*e ,afet% of the emplo%ees as 7ell as others associated in the .usiness is the most important concern for us. This& 7e .elie#e& is our moral as 7ell as statutor% responsi.ilit%. 'ur ,afet% Polic% clearl% commits us in this regard. (o'ernan*e% I#bedded In NTPC9s 2NA NTPC is a #alue .ased enterprise. 8ith fairness& transparenc%& accounta.ilit% and responsi.ilit% as pillars of its .usiness acti#ities& NTPC .elie#es in integrit% as a necessar% condition for enduring success. The Compan% has a strong corporate go#ernance architecture and is full% compliant 7ith re@uirements relating to Corporate "o#ernance prescri.ed .% ,)FI. NTPC .elie#es in going .e%ond compliance and ta3es proacti#e measures through self? regulation. It had set up an Audit Committee in the %ear 11-& much .efore the setting up of Audit Committee .ecame mandator% in the %ear (000& ,ome other non?mandator% steps ta3en .% NTPC for promoting Corporate "o#ernance include? <i= <ii= ,etting up the 9Committee on Management Controls9 in (00 Braud Pre#ention Polic%

NTPC has entered into a MoK 7ith Transparenc% International& India to implement the Integrit% Pact programme. )#er% acti#it% of our .usiness is im.ued 7ith the philosoph% of sustaina.ilit%. The Sustainability Coun*il. headed .% the CM2 and consisting of all the full time 2irectors of the Compan%& o#ersees the sustainability a*ti'ities of the Compan%. The contents of this Report& .ased on the internationall% accepted "RI "3 guidelines& pertain to the %ear (00+?08. The process of reporting& 7e .elie#e& 7ill pro#ide a .asis for
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further engagement& measurements and disclosures. 8e are committed to the TRIP4) F'TT'M4IN) approach in spirit and action. 'ur Compan% is committed to fulfillingL Its ethical responsi.ilities as a #alue?.ased enterpriseM Its social responsi.ilities as a sensiti#e enterpriseM Its en#ironmental responsi.ilities as a far?sighted enterpriseM

NTPC 7ill continue to ma3e positi#e contri.ution to the en#ironment& the societ% and the 7orld of .usiness through its sustaina.ilit% agenda. I 7elcome feed.ac3 from the learned readers to help us further impro#e our sustaina.ilit% initiati#es and reporting. 8ith regards

R , ,harma CM2& NTPC 2atedL *th Ma%& (0 0

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CHAPTER II Report Para#eters

This is the first ,ustaina.ilit% Report of NTPC. The data and performance indicators are presented in the Report pertaining to the fiscal %ear (008 i.e. April & (00+?March 3 & (008 and an annual c%cle of reporting 7ould .e continued 7ith in the future. Bor an% clarifications and feed.ac3 on the content of the Report& 3indl% contact the follo7ingL ,h. A C Chatu#erdi )2 <RGR& ,afet%G C,R= NTPC 4td.& RG2 Fuilding& Plot A?8A& ,ector H (A& Noida H (0 30 <KP= Ba0L 0 (0? (A 0*A8 This Report co#ers the o#erall performance of NTPC 4imited in the conte0t of sustaina.ilit%. The informationNdata reported here reflect significant economic& en#ironment and social impacts that can su.stantiall% influence assessments or decisions of our sta3eholders. ,e#eral proacti#e engagements too3 place 7ith 3e% sta3eholders during the process of de#elopment of unit le#el ,ustaina.ilit% Reports of all the stations. The ,ustaina.ilit% Report at the Corporate Centre follo7ed a defined road map and included the follo7ing elementsL Materialit% anal%sis of sustaina.ilit% aspects Identification of indicators to .e considered for reporting Presentation to the ,ustaina.ilit% Council of NTPC for strategic ad#ice Constitution of the ,teering CommitteeN8or3ing "roup Periodic consultations .et7een the facilitating agenc% and 3e% departments of the compan% Third part% assurance in accordance 7ith the international standards and guidelines

This Report co#ers economic& en#ironment and social aspects of the organi5ation6s performance of (0 'perating ,tations directl% under NTPC 4imited <as listed under addendum H I= and contains all data and performance of our Coal& "as and 4i@uid fuel .ased plants compiled together. The reporting principles and methodolog% are in accordance 7ith "RI guidelines (00* #ersion ? "3. The Core indicator protocols ha#e .een follo7ed for reporting on the #arious indicators. ,ustaina.ilit% and sustaina.le de#elopment are integral to our ethos and find e0pression in our commitment to enhancing the Triple Fottom 4ine .enchmar3s of economic& social and en#ironmental capital. The Report on economic performance is dra7n from the Compan%9s (008 .alance sheet& prepared in accordance 7ith the Companies Act& 1-* and has .een audited .% independent )0ternal Auditors. The en#ironment and safet% data and the social responsi.ilit% data are compiled from actual operating data maintained .% the #arious concerned departments of our stations.
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Io7e#er& 7e e0tend our Triple Fottom 4ine philosoph% to the su.sidiaries& >oint #entures and outsourced manufacturing. The present Report e0cludes reporting on J!s and su.sidiaries etc. and these 7ill .e co#ered in su.se@uent Reports. The measurement techni@ues and .ase of calculations are standardi5ed .% respecti#e departments and follo7 the accepted glo.al protocol. The "RI indicator protocols are also referred for disclosing information in the Report. Binancial and )conomic data are reported as per the guidelines pro#ided in the Compan% 4a7 of India. Monitoring& measurement and cali.ration is carried out as per rele#ant Indian standards. 2ocumentation and communication are done as per the re@uirement of the management s%stems of I,'?100 G I,'? A00 & 'I,A,? 800 and ,A?8000. The norms and procedures prescri.ed for 7or3place ,afet% and )n#ironment .% Ministr% of )n#ironment and Borests& Ministr% of 4a.or and 8elfare is follo7ed in conducting .usiness at NTPC. Bor purpose of sho7ing a trend anal%sis of performance& the data for performance indicators that are compiled are for the period April (00- to March 3 & (008 i.e. fiscal %ears (00-& (00* G (00+. NTPC has contracted MNs )rnst and Doung for pro#iding assurance of the ,ustaina.ilit% Report. The assurance procedure 7ill follo7 the re@uirements of the "RI "uidelines. 8hile the NTPC Corporate Centre is located at Ne7 2elhi& the stations and offices are located across the length and .readth of the countr%. NTPC has an am.itious programme of capacit% addition.

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CHAPTER III An Introdu*tion to NTPC

NTPC 4td.& a Po7er "eneration Compan% as defined under ,ection (<A= A of the )lectricit% <,uppl%= Act& 1A8& 7as incorporated as National Thermal Po7er Corporation on +th No#em.er& 1+- 7ith the mandate for planning& promoting and organi5ing integrated de#elopment of thermal po7er <including Associated Transmission ,%stems= in the countr%. The Compan% ac@uired its ne7 identit%& :NTPC 4imited6 in No#em.er (00-. This ne7 identit% signifies that the Compan% has di#ersified its operations .e%ond thermal po7er segment and has added ne7 .usiness acti#ities .% 7a% of for7ard& .ac37ard and lateral integration& to .ecome an integrated po7er compan% 7ith presence across the entire energ% #alue chain. Toda% NTPC 4td. is the largest po7er generating in India& classified as a schedule 6A6 Compan%. Ac3no7ledging its potential to .e a glo.al giant& it 7as accorded the :Na#ratna6 status in 11+. This gi#es NTPC enhanced autonom% and delegation of po7er in se#eral aspects including decisions on capital e0penditure& formation of >oint #entures and su.sidiaries and organi5ational restructuring. It has a #ision to .ecome :A 7orld class integrated po7er ma>or& po7ering India6s gro7th& 7ith increasing glo.al presenceO. To7ards the aim of po7ering India6s gro7th& the compan% has em.ar3ed upon an am.itious capacit% addition programme to .ecome a -0&000 M8 compan% .% the %ear (0 ( and to ha#e an installed capacit% of +-&000 M8 plus .% the %ear (0 +. In pursuit of its #ision to .ecome an integrated po7er ma>or& the compan% has di#ersified into h%dropo7er generation& coal mining& po7er trading& gasNoil e0ploration and production and manufacturing of e@uipments& etc. The compan% is also ma3ing fora%s into nuclear po7er generation and generation of po7er through rene7a.le energ% sources. The compan% has also entered into >oint #entures 7ith leading pla%ers in the po7er sector for pro#iding consultanc% and ser#ices li3e 2esign )ngineering& RGM& 'GM ,er#ices& etc. .oth in India and a.road. As of 3 .03.(008& the compan% had H A coal .ased po7er plants& + com.ined c%cle po7er plants& 3 h%droelectric po7er pro>ects& * su.sidiaries and >oint #enturesNpro>ects under operationNimplementation spread across the countr%. !arious pro>ects ha#ing an aggregate capacit% of **80 M8 including 3+-0 M8 under >oint #enture are under construction. NTPC is associated 7ith rural electrification 7or3 under Ra>i# "andhi "rameen !id%uti3aran Do>ana and impro#ing the performance of state o7ned po7er plants under the Partnership in )0cellence programme launched .% Ministr% of Po7er. NTPC is entering into a higher or.it of performance and gro7th 7ith man% opportunities and challenges. The Compan% crossed the A00 .illion mar3 in terms of gross re#enue <Rs. A00. 3 .illion= and the (00 .illion mar3 in terms of po7er generation <(00.8A .illion units= in the %ear (00+?08. Its net profit 7as Rs +A& A8 million. NTPC6s generation capacit% 7as 1. ; of the countr%6s installed capacit% as on 3 .03.(008 7hile if accounted for (8.- ; of the entire electricit% generated in the countr%. The generating capacit% of NTPC 7as (1&31A M8 in (00+?08 including (&0AA M8 under >oint #entures. The compan% has an authori5ed capital of Rs 0&000 crores& paid up capital of Rs 8&(A-.crores and a net 7orth of Rs -(&*38.* crores. Burther NTPC has made an impressi#e contri.ution of Rs -+&00.1+ crores to the Central )0che@uer.
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NTPC has .een consistentl% rated among the .est emplo%ers and among the .est places to 7or3 for in some of the most prestigious sur#e%s. "eneration per emplo%ee and other producti#it% indices per emplo%ee are continuousl% impro#ing. The rising manpo7er producti#it% in NTPC shall mean generating more po7er and .uilding more pro>ects 7ith relati#el% marginal increase in 7or3force. 8ith focus on people& emphasis on transparenc%& fairness and sound go#ernance& NTPC has demonstrated concern for the socio?economic support and impro#ement of communities in the #icinit% of its pro>ects there.% strengthening sustaina.le .onds of de#elopment& gro7th and trust. The Compan% is demonstrating strong thrust on Corporate ,ocial Responsi.ilit% .% setting up a large num.er of 2istri.uted "eneration Knits at remote un?electrified #illages. These units ha#e transformed socio?economic conditions in these #illages. Participation of the local communit% and use of locall% a#aila.le rene7a.le energ% sources ha#e .een instrumental in the success of these pro>ects. In order to contri.ute to7ards augmenting a#aila.ilit% of s3illed manpo7er in the sector& the Compan% is adopting and upgrading Industrial Training Institutes <ITIs= and is setting up ne7 ITIs near its units. 8ith its performance oriented culture and its focus on ensuring the highest standards of go#ernance and o#erall e0cellence& the Compan%6s efforts aim at ma0imi5ing the returns to its sta3eholders. The details of other communit% initiati#es underta3en during the period ha#e .een mentioned in the rele#ant section of the Report. '#er the %ears& NTPC has attained glo.all% compara.le stature. In the Platts Top (-0 "lo.al )nerg% Compan% Ran3ing for (00+& NTPC has .een ran3ed amongst the po7er Companies as No. Independent Po7er Producer in Asia. As per :Bor.es "lo.al (0006 .iggest companies ran3ing for the %ear (00+& NTPC is A th largest compan% in the 8orld. The Compan% has the ena.ling structures and empo7erment tools to pursue the o.>ecti#es of not onl% generating po7er and re#enue .ut also to emerge as a sociall% responsi.le corporate entit%& car#ing a niche for itself as an en#ironment friendl% enterprise 7ith .est human resource practices& optimal utili5ation of natural resources li3e 7ater& land& etc. and ample policies and facilities for resettlement and reha.ilitation of Pro>ect affected Persons. Bocus on customer friendl% technological inno#ations& a sound financial .ase and a holistic #ision of contri.uting to the gro7th of the nation6s "2P are amongst the dri#ers of an effecti#e performance. ;ision% NTPC has a #ision to .ecome :A &orld *lass inte!rated po&er #a<or. po&erin! India9s !ro&t$. &it$ in*reasin! !lobal presen*e=1 ission% 2e#elop and pro#ide relia.le po7er& related products and ser#ices at competiti#e prices& integrating multiple energ% sources 7ith inno#ati#e and eco?friendl% technologies and contri.ute to societ%. Core ;aluesL <>-C, IT5 >usiness )thics Customer Bocus ,rgani5ational G Professional Pride utual Respect and Trust Inno#ation G ,peed Total Eualit% for )0cellence
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,b<e*ti'es% To reali5e the a.o#e #ision and mission& eight 3e% corporate o.>ecti#es ha#e .een identifiedL Fusiness portfolio gro7th Customer Bocus Agile Corporation Performance 4eadership Iuman Resource 2e#elopment Binancial ,oundness ,ustaina.le Po7er 2e#elopment Research and 2e#elopment NTPC pro#ides efficient& relia.le and green critical po7er solutions and uninterrupti.le po7er suppl% s%stems to ena.le .usiness continuit%. 8ith e0pert po7er s%stem engineers and nation7ide ser#ices and support& the Compan% ensures that other organi5ations ha#e the po7er to perform. Certi"i*ates. Honors and A&ards% As ac3no7ledgement of NTPC6s sustained and continuous efforts in di#erse fields& #i5. formulation of ne7 policies& adoption of en#ironment friendl% technologies& its sound financial performance& clean and green impact on the neigh.oring resources .e it human or natural& effecti#e RG2& impactful corporate go#ernance& inno#ati#e IR practices and so on& the Compan% has .agged se#eral re7ardsL NTPC .agged the ,C'P) Meritorious A7ard for "ood Corporate "o#ernance for the %ear (00-?0*. The Compan% has promoted strong Corporate "o#ernance and proacti#el% ta3en steps for protecting the s%stems and processes. NTPC 7as ran3ed num.er in the special categor% ? :Fest 8or3places for 4arge 'rgani5ations6 and num.er eight o#erall for the %ear (008 .% "reat Places to 8or3 Institute6s India Chapter in colla.oration 7ith the )conomic Times. This 7as the fourth consecuti#e %ear 7hen the Compan% figured among the :Top 06. Bour Po7er ,tations of NTPC .agged the prestigious National A7ards for Meritorious Performance instituted .% Ministr% of Po7er& "o#ernment of India for the %ear (00*?0+. The National A7ards ha#e .een instituted .% the Ministr% of Po7er to inculcate competiti#e spirit and to moti#ate the po7er utilities to achie#e higher le#els of performance. It 7as also ran3ed the No. Independent Po7er Producer Compan% in Asia& (00+ H :Platts Top (-0 "lo.al )nerg% Compan% (00+ ,ur#e%6. The efforts of NTPC got applauded and it 7on the :"olden Peacoc3 "lo.al A7ard6 for )0cellence in Corporate "o#ernance ? (00+. It 7as also recogni5ed as the ,tar P,K for the %ear (008 .% Fusiness ,tandard. NTPC 7as ran3ed the A th largest compan% in the 7orld in the Bor.es 4ist of 8orld6s (000 4argest Companies for the %ear (00+ and mo#ed up .% 83 positions from the A1Ath ran3 in (00*.
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CHAPTER I; Corporate (o'ernan*e

NTPC .elie#es that the structuring and efficient go#ernance of an enterprise are 3e% indicators of its smooth and regular functioning. Corporate go#ernance is a 3e% element in impro#ing efficienc% and gro7th as 7ell as enhancing in#estor confidence. NTPC has included the principles of accounta.ilit% and transparenc% in its Corporate "o#ernance philosoph% as underL As a good corporate citizen, the Company is committed to sound corporate practices based on conscience, openness, fairness, professionalism and accountability in building confidence of its various stakeholders in it thereby paving the way for its long term success. NTPC is committed to adopting Fest Management Practices <FMPs= in corporate go#ernance& and e0ceeding mandator% regulations. NTPC6s corporate structure& .usiness and disclosure practices are designed to align 7ith its Corporate "o#ernance Philosoph%. Additionall%& NTPC #oluntaril% adheres to the guidelines on Corporate "o#ernance issued .% 2epartment of Pu.lic )nterprises& "o#ernment of India. NTPC is a Pu.lic ,ector Knderta3ing <P,K= under the "o#ernment of India. It has .een one of the .est performing P,Ks and the "o#ernment has .esto7ed upon it the title of PNa#ratna6 <one of the nine >e7els=& ha#ing the potential to .ecome a glo.al giant& there.% gi#ing it more po7ers and autonom% for in#estments. Conse@uentl%& NTPC .enefits from the fact that it has a commercial orientation 7hile ha#ing the support of the "o#ernment. This support and o7nership ensures that NTPC6s #ie7s are ta3en into account 7hile formulating an% polic%. These #ie7s are pro#ided to the "o#ernment proacti#el% and ha#e in#aria.l% resulted in adoption of a holistic approach .% the "o#ernment. NTPC participates in #arious forums and industr% associations such as ,C'P)& CII& BICCI& etc. to ad#ocate policies& 7hich are conduci#e for sustaina.le po7er de#elopment. NTPC6s C,R programs and RGR polic% are seamlessl% attuned to the national policies formulated .% the "o#ernment of India. Corporate ,ocial Responsi.ilit% is an article of faith for NTPC and the Pro>ect Affected People <PAP= are considered to .e partners in the progress of the Compan%. NTPC e0tensi#el% participates in #arious sector? de#elopment?programmes of Ministr% of Po7er& "o#ernment of India such as Accelerated Po7er 2e#elopment G Reforms Program <AP2RP=& Partnership in )0cellence <PI)=& Rural )lectrification Programmes& etc. so as to ensure o#erall de#elopment of the po7er sector and of rural India. >oard o" 2ire*tors The Chairman and Managing 2irector is the highest e0ecuti#e officer of NTPC. . NTPC 4imited is a "o#ernment Compan% 7ithin the meaning of section * + of the Companies Act& 1-* as the President of India holds 81.-; of the total paid?up share capital. As per Articles of Association& the po7er to appoint 2irectors including Chairman and
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Managing 2irector #ests in the President of India. The com.ined posts of the Chairman and Managing 2irector ensure single person authorit% and accounta.ilit%. In terms of the Articles of Association of the Compan% the strength of the Foard is not to .e less than four 2irectors or more than t7ent% 2irectors. These 2irectors ma% .e either 7hole?time functional 2irectors or part?time 2irectors. Co#position o" t$e >oard As on 3 st March (008& the Foard comprised of thirteen 2irectors out of 7hich se#en 7ere 7hole?time functional 2irectors including the Chairman and Managing 2irector. T7o 2irectors 7ere nominees of the "o#ernment of India. The Foard also had four independent 2irectors& appointed .% the "o#ernment of India through a search committee constituted for the purpose. The 2irectors .ring to the Foard 7ide range of e0perience and s3ills. 2uring the %ear (00+?08& there 7ere onl% four Independent 2irectors on the Foard of the Compan%& against the re@uirement of nine. The listing agreements 7ith stoc3 e0changes stipulate half of the Foard mem.ers to .e independent directors. The compan% has re@uested "o#ernment of India to initiate necessar% steps for appointment of ade@uate num.er of Independent 2irectors so that Foard composition is in compliance 7ith the 4isting Agreement. Bor appointment of functional directors including Chairman and Managing 2irector& >o. description and re@uired @ualification and e0perience ha#e .een appro#ed .% the Foard& 7hich is updated from time to time 3eeping in #ie7 the changed scenario in industr%. Bor appointment of independent directors& "o#ernment of India has set up a search committee in 7hich Chairman and Managing 2irector of a P,K is a representati#e. 2P) has also prescri.ed that the independent director to .e appointed shall ha#e an e0perience of not less than 0 %ears at the le#el of Joint ,ecretar% and a.o#e in the "o#ernmentM Chairman and Managing 2irectorN M2 in Corporate ,ectorM Professor le#el in an Academic Institution or professionals of repute li3e eminent Chartered AccountantN Cost Accountants at the le#el of 2irectors of InstitutesN Ieads of 2epartmentM persons of eminence 7ith pro#en trac3 record from Industr%& Fusiness or Agriculture. The age limit of the Chairman and Managing 2irector and other 7hole?time functional 2irectors is *0 Dears. The Chairman G Managing 2irector and other 7hole time Bunctional 2irectors are appointed for a period of fi#e %ears from the date of ta3ing charge or till the date of superannuation of the incum.ent& or till further instructions from the "o#ernment of India& 7hiche#er e#ent occurs earlier. "o#ernment Nominee 2irectors representing Ministr% of Po7er& "o#ernment of India retire from the Foard on ceasing to .e officials of the Ministr% of Po7er. Independent 2irectors are appointed .% the "o#ernment of India usuall% for a tenure of three %ears. >oard eetin!s

The meetings of the Foard of 2irectors are normall% held at the Compan%6s registered office in Ne7 2elhi. The Compan% has defined procedures for meetings of the Foard of
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2irectors and Committees thereof so as to facilitate decision?ma3ing in an informed and efficient manner. All the agendas placed .efore the Foard are appro#ed .% the concerned 2irectorNBinance 2irector andNor the Chairman and Managing 2irector. There is a practice of holding a 7ee3l% meeting of functional directors& in 7hich strategic issues are deli.erated and decisions are ta3en. The 2irectors ma3e 2isclosure of Interest in Borm (A AA pursuant to ,ection (1+ and (11 of the Companies Act& 1-*. If and 7hen an% matter comes to the Foard in 7hich a 2irector is interested in an% 7a%& the particular 2irector e0cuses himself from the discussion of that item for a free and fair discussion. Bourteen Foard Meetings 7ere held during the financial %ear (00+?08. In terms of Na#ratna guidelines and the listing agreement& the Foard of 2irectors ha#e constituted the follo7ing su.?committees of the FoardL i= ii= iii= i#= #= #i= #ii= Audit Committee ,hareholdersNIn#estors "rie#ance Committee Committee on Management Controls Contracts ,u.?Committee Pro>ect ,u.?Committee In#estmentNContri.ution ,u.?Committee Committee of the Foard for allotment and post?allotment acti#ities of NTPC6s ,ecurities

The Foard of 2irectors has also set up the follo7ing "roup of 2irectors for in?depth anal%sis of #arious matters and its recommendations for consideration of the FoardL i= ii= iii= i#= "roup of 2irectors for !igilance matters "roup of 2irectors for Non?!igilance matters "roup of 2irectors for C,R matters "roup of 2irectors for IR matters

Non-#andatory re?uire#ents Fesides the mandator% re@uirements& the status of compliance 7ith non?mandator% re@uirements of Clause A1 of the 4isting Agreement is pro#ided .elo7L . T$e >oard% The Compan% is headed .% an e0ecuti#e Chairman. No Independent 2irector has .een appointed for the period e0ceeding& in the aggregate& a period of nine %ears& on the Foard of the Compan%. (. Re#uneration Co##ittee% The Compan%& .eing a Central Pu.lic ,ector Knderta3ing& the appointment& tenure and remuneration of 2irectors are decided .% the President of India. Ience& the Foard does not decide remuneration of the 2irectors. Independent 2irectors are paid onl% sitting fees at the rate fi0ed .% the Foard 7ithin the ceiling fi0ed under the Companies Act& 1-* and appro#ed .% the "o#ernment for attending the Foard Meetings as 7ell as Committee Meetings. In NTPC there e0ists a responsi.ilit% .ased performance lin3ed graded incenti#e schemes& 7hich mutatis
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mutandis appl% to Bunctional 2irectors. Bunctional 2irectors including Chairman and Managing 2irector falls in the highest categor% of this scheme. 3. S$are$older Ri!$ts% The @uarterl% financial results of the Compan% are pu.lished in leading ne7spapers and also hosted on the 7e.site of the Compan%. ,ignificant e#ents are also disclosed on the compan% 7e.siteL 777.ntpc.co.in under :Announcement6 in the :Compan% Performance6 section. A. Audit 3uali"i*ation% It is al7a%s Compan%6s endea#or to present un@ualified financial statements. The financial statement for the %ear (00+?08 has no audit @ualifications. -. Trainin! to >oard e#bers% Foard of 2irectors are full% .riefed on all .usiness related matters& ris3 assessment and minimi5ing procedures and ne7 initiati#es proposed .% the Compan% through presentations made .% senior e0ecuti#esN professionals and consultants. 2irectors are also .riefed on changesNde#elopments in Indian as 7ell as international corporate and industr% scenario including those pertaining to the statutesNlegislation and economic en#ironment. *. @$istle >lo&er Poli*y% Knder the pro#isions of :Braud Pre#ention Polic%6 adopted .% the Compan%& a 8histle Flo7er mechanism is in place for reporting of fraud or suspected fraud in#ol#ing emplo%ees of the Compan% as 7ell as representati#es of #endors& suppliers& contractors& consultants& ser#ice pro#ider or an% other part% doing an% t%pe of .usiness 7ith NTPC. All reports of fraud or suspected fraud are in#estigated 7ith utmost speed. The mechanism for pre#ention of fraud is also included in the polic%. Co##uni*ation The Compan% pro#ides information to its shareholders through its Annual Report& "eneral Meetings and disclosures through its official 7e. site. The Compan% also communicates 7ith its institutional shareholders through anal%sts6 .riefings and indi#idual discussions as also participation at in#estor conferences from time to time. Annual anal%sts6 and in#estors6 meets are held during the month of August 7here Foard of the Compan% interacts 7ith the in#estor communit%. Binancial results are discussed .% 7a% of conference calls regularl% after the close of each @uarter. Information& updates and announcements regarding the compan% can .e accessed at Compan%6s 7e.siteL 777.ntpc.co.in including the follo7ingL Euarterl%NIalf?%earl%NAnnual Binancial Results ,hareholding Pattern Transcripts of conferences 7ith anal%sts Corporate disclosures made from time to time to ,toc3 )0changes Corporate Biling and 2issemination ,%stem <CB2,=

Per"or#an*e E'aluation Ministr% of Po7er e#aluates the performances of the Foard and the 2irectors as it is the administrati#e ministr% for the Compan%. Bor e#aluating the performance of the Compan%& the "o#ernment has instituted a s%stem of target?setting& 7hich is agreed to .et7een the Compan% and the "o#ernment through a Memorandum of Knderstanding
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<M'K=. The actual performance in comparison to the targets set for the %ear is monitored on a @uarterl% .asis .% the "o#ernment. At the end of the %ear& the performance for the 7hole %ear is assessed on the .asis of parameters li3e financial performance& producti#it%& human resource de#elopment acti#ities& pro>ect implementation& operational performance& etc. The Chairman and Managing 2irector and fulltime 2irectors in different functional areas are appointed .% the President of India for a period of fi#e %ears or till the date of superannuation. )0tension .e%ond the fi#e?%ear tenure is granted on .asis of the performance of the indi#idual 2irectors. Burther& performance of functional directors on the Foard is also e#aluated through a performance e#aluation s%stem. Knder this s%stem the 2irectors agree 7ith the Chairman and Managing 2irector for targets and measures for different 3e% performance Areas. A mid?%ear re#ie7 of the targets and measures& if re@uired& are carried out.. The performance reports of all 2irectors are re#ie7ed .% the Chairman and Managing 2irector and for7arded to the administrati#e ministr% for e#aluation. NTPC .eing India6s largest po7er generating Compan% is respected as a glo.al entit% and its distinguished presence can .e felt amongst national and international institutions& organi5ations and corporate .odies of repute and esteem. This pro#ides it a platform to e0pand its hori5ons across une0plored territories and learn and gro7 from an e0ercise of mutual interaction and producti#e e0change of information and technologies. A list of Associations and NationalN International Ad#ocac% 'rgani5ations& in 7hich NTPC is a mem.er& is presented in Addendum ? II. Transparen*y and A**ountability NTPC has a strong corporate go#ernance architecture and is full% compliant 7ith Clause A1 of the 4isting Agreement re@uirements relating to Corporate "o#ernance prescri.ed .% ,)FI. NTPC .elie#es in going .e%ond compliance and ta3es proacti#e measures through self?regulation. It had set up an Audit Committee in the %ear 11-& much .efore the setting up of Audit Committee had .ecome mandator% in the %ear (000. ,ome of the other non?mandator% steps ta3en .% NTPC for promoting Corporate "o#ernance includeL <i= ,etting up the 9Committee on Management Controls9 in (00 <ii= Braud Pre#ention Polic% NTPC has t7o Codes of Conduct& one for its Foard Mem.ers and the other for senior management personnel. The Codes are in alignment 7ith Compan%6s !ision and !alues to achie#e its Mission and '.>ecti#es and aim at ensuring ethical and transparent process in managing the affairs of the Compan%. The Code of Conduct for Foard Mem.ers and for ,enior Management Personnel entails that the mem.ers of the Foard shall act 7ithin the authorit% conferred upon them and shall act 7ith utmost care& s3ill& diligence and integrit%& fulfill their fiduciar% dut%& not in#ol#e themsel#es in an offence in#ol#ing moral turpitude and ma3e necessar% disclosures.

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NTPC has constituted a committee namel% :Committee on Management Controls6 for esta.lishing a transparent and effecti#e s%stem of internal monitoring. This Committee& inter alia& re#ie7s the Management Control ,%stems& significant de#iations in pro>ect implementation and construction& operation and maintenance .udgets& etc. NTPC is a signator% to the KN "lo.al Compact and has posted the .rief of "lo.al Compact and its commitment to the principles of "C is enlisted on its 7e.site at 777.ntpc.co.in. The principles of "C are communicated to all emplo%ees through in? house maga5ines& internal training programmes and posters. NTPC participated in the recent "lo.al Compact 4eader ,ummit held at "ene#a& ,7it5erland in (00+. NTPC& a core mem.er of "lo.al Compact ,ociet% <"C,= in India acti#el% participated and organi5ed its Annual Con#ention on 0th 2ecem.er (00+. 2irector <IR= of NTPC is nominated as !ice President& NR for "C,& India. Fesides& the Compan% acti#el% participates in the a7ard process initiati#es of Central and ,tate "o#ernments for safet% and en#ironmentM and the stations too participate acti#el% in #arious Regional )lectricit% Foards in their 'perational and Commercial Coordination Committees. 8orld )nerg% Council is the foremost multi?energ% organisation in the 7orld toda% 7ith a mission to promote sustaina.le suppl% and use of energ% for the greatest .enefit of all .India is a mem.er of this .od% since 1(A. In the %ear (000& in line 7ith its commitment of po7ering the nation through sustaina.le initiati#es& NTPC too3 the lead in steering the acti#ities of 8orld )nerg% Council in India under the patronage of Minister of Po7er and esta.lished the ,ecretariat of the Indian Mem.er Committee in NTPC. ,ince then the committee has .een ta3ing numerous initiati#es for technolog%& polic% G strateg% ad#ocac% to s%nergi5e energ% and catal%5e gro7th at national and international le#el and has .een recogni5ed as one of the .est committees of 8)C 7orld7ide. Sta8e$older En!a!e#ents ,ta3eholder engagement in NTPC in#ol#es dialogue .et7een the compan% and one or more of its sta3eholders. There are& ho7e#er& important reasons for the compan% to engage 7ith some of its sta3eholders. In NTPC sta3eholder engagement is a part of continuous learning and a means of pro#iding the compan% 7ith the .enefits associated 7ith di#erse perspecti#es. The total sta3eholder .ase of the compan% encompasses "o#ernment of India& financiers& in#estors& customers& media& communit%& emplo%ees& regulators& suppliers& partners and statutor% .odies. In the %ear (00A& the compan% launched its Initial Pu.lic 'ffer <IP'=& ma3ing the shareholders a ma>or sta3eholder. Thus ma>or sta3eholders includeL "o#ernment ,hareholders In#estors Partners Customers ,uppliers Neigh.orhood Communities Media ,tatutor% Authorities )mplo%ees
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(o'ern#ent% The Compan% 7as formed in the %ear 1+- as a 7holl%?o7ned entit% of "o#ernment of India and the "o#ernment of India held 81.-; of the paid?up share capital of the Compan% in (00+?08. The 7or3ing of the Compan% is su.>ect to @uarterl% re#ie7s .% the "o#ernment at its ,ecretar% le#el. "o#ernment has also nominated its representati#es on the Compan%6s Foard and monitors the performance of the Compan% through #arious means such as the Parliamentar% Committees& Comptroller and Auditor "eneral of India& Ministr% of Po7er& 2epartment of Pu.lic )nterprises and the Mem.ers of the Parliament. All these agencies ha#e .een gi#ing a num.er of feed.ac3s on #arious facets of operation of the Compan%. The Compan%& after assessment of such feed.ac3& su.mits action ta3en reports to these agencies. S$are$olders% In (00A& NTPC came out 7ith an IP' of e@uit% shares including an offer for sale .% "o#t. of India The Compan% has more than *&-0&000 retail shareholders. The Compan% .esides appointing a ,hare Transfer Agent for ser#icing these shareholders has set up an in?house In#estor ,er#ices 2epartment to ensure proper and timel% redressal of grie#ances of these small shareholders. The department along 7ith the Compan% ,ecretariat constantl% ta3es feed.ac3 from these shareholders to .ring out impro#ement in the ser#ices .eing pro#ided. In'estors% In (00+?08& 0.-; of the paid?up capital 7as held .% the pu.lic out of 7hich Boreign Institutional In#estors and Mutual Bunds held 8;. The 2irectors of the Compan% constantl% interact 7ith the Institutional In#estors to e0plain to them the strategies and plans of the compan%. 2uring such interactions& in#estors ha#e e0pressed #arious #ie7points on the sector and .usiness of the compan% and the management has& in turn& addressed their concerns and e0plained the measures ta3en .% the Compan%. A dedicated PIn#estor ,er#ices 2epartmentO e0ists under Binance 2i#ision to ta3e care of minorit% shareholders and their grie#ances. An ela.orate mechanism e0ists for resol#ing complaintsN@ueries recei#ed from shareholders. A; Partners% NTPC has formed a num.er of >oint #enture companies for underta3ing specific .usiness acti#ities. The names of these companies areM NTPC?,AI4 Po7er Compan% P#t. 4td.& NTPC?Aistom Po7er ,er#ices P#t. 4td.& Ktilit% Po7ertech limited& NTPC Tamilnadu )nerg% Co. limited& Ratnagiri "as and Po7er Pri#ate ltd.& PTC India 4imited& Ara#ali Po7er Compan% P#t. 4td.& NTPC ,CC4 "lo.al !entures P#t. 4td.& Me>a Kr>a Nigam Pri#ate limited& NTPC FI)4 Po7er Pro>ects P#t. 4td.& FB?NTPC )nerg% ,%stems 4td. Custo#ers% The ,tate )lectricit% Foards& J! partners& "o#ernment of India and users of consultanc% ser#ices are the ma>or customer groups. NTPC organi5es customer 7or3shops to meet and o.tain the feed.ac3 from them. Regular meetings are held 7ith customers in each region for operating plants. All capacit% additions are planned in consultation 7ith the customers for meeting their future re@uirement of po7er. Customer Bocus .eing one of the Core !alues of the Compan%& NTPC ma3es it a point to regularl% participate in all Regional )lectricit% Foard Meetings& 7hich has representation of all customers of the region. These meetings are held on a regular .asis& 3?A times in a %ear and pro#ide a forum for feed.ac3 regarding current re@uirements of the customers. Customers attend these meetings along 7ith concerned functional e0ecuti#es of NTPC from such areas li3e commercial& operations& etc. and issues pertaining to the respecti#e areas are discussed and resol#ed to the mutual satisfaction of customers and NTPC. Technical co?ordination committee meetings and Foard Meetings are attended at a #er% senior le#el in 7hich NTPC ensures regular participation for a #er% fruitful interaction 7ith its customers. !ie7s e0pressed .% the customers are gi#en due importance in formulating future .usiness plans and strategies
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NTPC9s Custo#er Initiati'es% Customer focus is an article of faith for the Compan%. CRM <Customer Relationship Management= is at the core of the Compan%6s .usiness approach. NTPC stri#es to source fuel and inputs at lo7 cost in order to pro#ide po7er at the least possi.le cost. It reaches out to the customers through #arious initiati#es li3e performance impro#ement support& e0tending training facilities& customer support ser#ices& customer meets and customer satisfaction inde0. Suppliers% "ood supplier relations and supplier net7or3 are must for successful construction and operation of a plant. Therefore& the% are identified as one of the sta3eholders. NTPC organi5es pre?.id conferences 7ith suppliers to learn a.out the latest de#elopments in the rele#ant field and to incorporate these in the .idding documents .efore the tendering process commences for a7ard of ma>or pac3ages. Co##unity% Pu.lic interest groups affected .% the setting up of pro>ects ha#e their concerns& needs& aspirations and re@uirements. These ma% .e 7ith reference to en#ironment& RGR or an% other rele#ant aspect. Pu.lic hearings and meetings 7ith local interest groups are a cohesi#e part of pro>ect implementation programme to satisf% the local communities and the Pro>ect Affected People <PAP=. The process of consultation is continued e#en after setting up the plant. Statutory Aut$orities% The Compan% has to adhere to #arious statutor% and mandator% rules and regulations and licenses ha#e to .e o.tained for setting up and running the plant. All such go#ernment and local authorities and their re@uirements are identified and met 7ith. edia% There are effecti#e communications and regular interactions 7ith media <.oth print and electronic= on #arious occasions including pu.lication of @uarterl% results& annual results and other important e#ents. Annual press meet is held in the first 7ee3 of April e#er% %ear. E#ployees% The emplo%ees of the compan% are the most important sta3eholders of the Compan%. Professional and career gro7th opportunities& emplo%ee satisfaction& social 7elfare& health& safet% and @ualit% of life are the issues and interests that ha#e to .e addressed 7ith respect to them. The ta.le .elo7 pro#ides an o#er#ie7 of the sta3eholder role and consultationsL
Sta8e$older

"o#ernment of India
In#estors

Boru# ,ecretar% re#ie7

Conference Calls

A!enda le#el Re#ie7 of o#erall performance Target ,etting Ne7 initiati#es

2iscussion 7ith In#estors after close of each Euarter.

Bre?uen*y )#er% @uarter

Euarter Annual

8or3 ,hop& 'ne on Interaction of Foard of 2irectors 'ne Meetings 7ith in#esting communit% during PAnal%sts and In#estors MeetO to re#ie7 progress of the pro>ects and share the gro7th opportunities of the Compan% so as to achie#e fair #aluation.
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Annual Meeting 'ne on 'ne

"eneral Interaction 7ith shareholders a.out Annual the Compan%6s gro7th and direction Iandling shareholders Need .ased @ueriesNgrie#ances Annual

Customers

Communit% )mplo%ees

Regulators ,uppliers

Re#ie7 meets 7ith To re#ie7 progress of the pro>ects Fan3ers <2omestic and and share the gro7th opportunities Boreign= of the Compan% and to discuss de.t re@uirements Regional le#el Beed .ac3& ma>or issues and customer meet for each assessment of future re@uirements. region Attended .% CM2& directors& regional )2 and senior e0ecuti#es of customers Commercial Committee Technical and commercial agenda Meetings& Technical at .oard le#el of NTPC and committee meetings customers for each region 'peration "rid operation& scheduling and Co?ordination special re@uirements at e0ecuti#e Committee Meetings le#el Pu.lic hearings Communit% de#elopment issues !illage de#elopment committee Participati#e forums Issues of concern& grie#ances and Communication feed.ac3 meetings& )mplo%ee Climate ,ur#e% Pu.lic hearings Issues relating to tariffs Pre?.id conference& 4atest de#elopments& technical ,upplier meet specifications

,i0 monthl%

Euarterl% Monthl%

,tatutor% .odies

Media

Need .asedM at least once in a %ear As per the re@uirement of different forums. Need .ased Fefore the tendering process commences for a7ard of ma>or pac3agesM need .ased ,tatutor% Audits& Audits& clearance& inspection Need .asedM as Mandator% inspections& per standard clearances& fre@uenc% for Compliances& mandator% and ,tatements statutor% inspections and audits Press Release To 3eep the general pu.lic and Need .ased& Press conference communit% appraised of Announcement de#elopments of ne7 capacit% additions& performance reports and an% ne7 de#elopments

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CHAPTER ; Cey I#pa*ts. C$allen!es and ,pportunities

The po7er industr% in India has .een historicall% facing im.alances .et7een demand and suppl%. Although the po7er generation capacit% has increased su.stantiall% in recent %ears& it has not 3ept pace 7ith the continued gro7th of Indian econom%. To address the persistent shortages& the "o#ernment of India has ta3en significant steps to restructure the industr%& attract in#estment and plan for fast trac3 capacit% addition through incenti#ised polic% initiati#es. These include polic% inter#ention such as )lectricit% Act& (003& National )lectricit% Polic% (00- and Tariff Polic% (00*. Burther the "o#ernment has also li.erali5ed policies relating to transmission and distri.ution sectors. NTPC faces numerous challenges& .eing the largest po7er generating compan% in the countr%& 7ith a mar3et share of appro0imatel% 1. ; in terms of installed capacit% and producing (8.- ; of the total electricit% generated in India. 8ith the responsi.ilit% of operating a capacit% of around 30&000 M8 and an e#er?increasing urgenc% of timel% capacit% addition& the responsi.ilities and challenges associated to achie#ing its organi5ational goals are increasing. Io7e#er& as the leader in the po7er industr%& NTPC understands that the onl% 7a% to sustain gro7th is to com.at challenges& continuall% see3 opportunities and formulate appropriate strategies. Cey i#pa*ts NTPC has generating stations .ased on coal and gas.. NTPC is ta3ing a num.er of initiati#es to7ards preser#ation of the en#ironment .% pro#iding state?of?the?art pollution control s%stems& strict en#ironment monitoring& >udicious use of natural resources <coal& gas& 7ater and land=& stud% of impact on am.ient air due to plant6s operations& etc. ,trict control is e0ercised during operation of the plants to optimi5e use of fuel. $e% impacts of the .usiness of NTPC ma% .e summari5ed asL A*?uisition o" DandL Con#ersion agricultural and forest to industrial land use ? displacement of peopleNloss of homesteads and li#elihoods. As$ (eneration% Con#ersion agricultural and forest land to 7aste land in the form of ash disposal sites. @ater Consu#ptionL 8ithdra7al of 7ater and generation of effluents Air 3uality% Air emissions due to com.ustion of fossil fuels A""orestation% Maintenance of ecological .alance Sa"ety Con*erns% Bire and safet% ha5ards

C$allen!es Buel lin3agesN fuel securit% issues Pro>ect e0ecutionNimplementation issues ,ustaining mar3et reali5ation due to poor financial health of man% ,)Fs.
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,ustaining mar3et share in 7a3e of Competition. ,tringent en#ironmental norms and #ulnera.ilit% due to climate change regulations in the future ma% add to cost of generation. To lead the sector in en#ironment protection including effecti#e Ash utili5ation& peripheral de#elopment and energ% conser#ation practices. Reha.ilitation and resettlement of Pro>ect affected persons Capacit% constraints of po7er e@uipment manufacturers 2i#ersification of .usiness portfolio Mo.ili5ation of ade@uate financial resources at competiti#e rates for capacit% addition plans

,pportunities )0pand generation capacities .% setting up thermalNh%dro& nuclear capacities. Aggressi#el% enter and esta.lish presence in nuclear po7er and rene7a.le energ%. Froad .ased fuel mi0 viz coal <domestic and imported=& gas& h%dro po7er& nuclear po7er& etc 7ith a #ie7 to mitigate fuel ris3s and maintain competiti#eness. 2e#elopment and commercial deplo%ment of rene7a.leNnon?con#entional energ% sources Fac37ard integration into fuel management through ac@uisition and de#elopment of coal mines to e0ercise greater control and understanding of suppl% economics. ,trengthening of re#enue collection .% trading& setting up of merchant po7er plants& direct sale to .ul3 customers and for7ard integration into distri.ution .usiness. )0panding consultanc% ser#ices in the areas of 'GM& RGM& )PC .usiness in domestic and international mar3ets. 4e#erage cleaner and ad#anced technologies to cut emissions& conser#e energ%& higher operational efficiencies there.% reducing operational costs. Impro#e mar3et share through high .rand e@uit% amongst sta3e holders. Participating in communit% .uilding through #arious programmes under C,R. To .uild ash utili5ation models to insure compliance 7ith regulations To le#erage ro.ust financials& e0cellent operational performance and strong pro>ect management s3ills for achie#ing performance relati#e to glo.al peers.

Strate!ies
- 24 -

The tremendous po7er appetite of the countr% H 7hetted .% economic gro7th& rising li#ing standards and re@uirements of a huge population H translates into a.undant gro7th opportunities for NTPC. To actuali5e 'ur !ision and to meet the challenges in our .usiness& the Compan% is read% 7ith the follo7ing strategies le#eraging its resources and strengths and to e0ploit the gro7th opportunitiesL aintain #ar8et leaders$ip% Plan to .ecome +-000 M8 capacit% .% (0 + Burt$er i#pro'e our operatin! per"or#an*e Pursue our "uel se*urity %Fac37ard integration into mining and gas sectors 2i'ersi"y "uel #ix % !enture into I%dro& Nuclear and rene7a.le sector 2e'elop #er*$ant po&er *apabilities% To sell po7er at mar3et .ased price Stren!t$en our di'ersi"ied businesses Adopt ad'an*ed te*$nolo!ies E Adopt super critical and ultra super critical technologies E#p$asiFe resear*$ and de'elop#ent% In#est upto ; of annual profit after ta0 in RG2. In'est in e#ployee de'elop#ent Expand our Corporate So*ial Responsibility initiati'es% Through C,R?C2 and NTPC Boundation. 4eadership position in the Indian po7er sector ,trong cash flo7 ,ound customer relations and commercial performance Iigh operational efficienc% of coal?.ased stations 4ong term agreements for coal and gas suppl% ,trategic locations near fuel source )ffecti#e pro>ect implementation A.ilit% to turn around underperforming stations )0perienced in?house engineering capa.ilities Ad#anced information technolog% platform ,trong .alance sheet "o#ernment support Competent and committed 7or3force )mphasis on corporate go#ernance

Stren!t$s Ris8

ana!e#ent

The compan% has to sustain its gro7th& retain its leadership position in the countr% and at the same time impro#e its operational efficienc%. In order to reduce dependence on con#entional fuel& the compan% is fora%ing into h%dro& nuclear and non?con#entional energ% sources. As a step in .ac37ard integration& the Compan% is entering into coal mining .usiness and also natural gas #alue chain. Po7er generation .usiness in#ol#es man% ris3s and potential impacts including failure or loss of generation& safet% and en#ironment ha5ards& o.solescence of technolog%&
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inade@uate suppl% of fuel and 7ater& legal ris3s& .reach of information securit%& financial ris3s& sustaining mar3et share& sustaining reali5ation& dela% in pro>ect e0ecution& ina.ilit% to attract and retain s3illed and e0perienced manpo7er& threats to securit% of people and propert%& impact of natural calamities& impact of go#ernment policies and performance .elo7 e0pected or contracted le#els of output or efficienc%. NTPC has ta3en ade@uate measures to address the a.o#e mentioned ris3s .% de#eloping appropriate s%stems and practices. In order to institutionali5e the ris3 management in NTPC& a ris3 management polic% 7as formulated in fiscal (00-. After careful anal%sis of .usiness en#ironment& corporate plan and .usiness practices and 7ith a #ie7 to enhance .usiness performance& NTPC has adopted a t7o?pronged strateg% ? the short term as 7ell as long term measures to mitigate the ris3s and put in place a reporting s%stem 7hich 7ould ena.le critical ris3s .e%ond certain tolerance le#els to .e reported for further action. In order to im.i.e the .est practices pre#alent in the industr%& NTPC has also appointed a reputed consultant to de#elop the enterprise ris3 Management frame7or3. After holding detailed deli.erations in#ol#ing all the units of the Compan%& an entit% 7ide Ris3 Register is under de#elopment and an enterprise 7ide Ris3 Reporting Brame7or3 7ould .e implemented in (008?01.

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CHAPTER ;I Per"or#an*e Indi*ators

NTPC measures it success on three parametersL economic performance& en#ironmental performance& and social performance. NTPC has maintained a trac3 record of high le#el of performance since its inception. 2uring the financial %ear (00+?08& some of the nota.le achie#ements of NTPC 7ereL E*ono#i* Per"or#an*e Coal .ased stations recorded the highest e#er Plant 4oad Bactor <P4B= of 1(.(A; as compared to 81.A3; pre#ious %ear. All time record P4B of 18.0(; .% 2adri ,tation <Coal=. Ten coal .ased stations achie#ed more than 10; P4B. Commenda.le turnaround at Knchahar ,tation ? from a P4B of 8.0(; at the time of ta3eo#er to present P4B of 1+.*1;. Iighest e#er generation of (00.8* Fillion Knits <FKs= ? an increase of *.A*; o#er the pre#ious %ear. Contri.uted (8.- ; of the total electricit% generated in the countr% during (00+? 08 7ith 1. (; share of the total installed capacit% of the nation. Robust Binan*ials Net ,ales of Rs 3+0&-0 million during (00+?08 as against Rs 3(-&1-( million registering an increase of 3.*+;. "ross Re#enue is Rs A00& ++ million during (00+?08 as against Rs 3-3&80+ million for the %ear (00*?0+& an increase of 3. ;. Profit after ta0 for the %ear (00+?08 is Rs +A& A8 million as compared to Rs *8&*A+ million during the %ear (00*?0+& an increase of 08.0 ;. Iighest total di#idend Q 3-; amounting to Rs (8& 8-1 million for the %ear (00+?08. Contri.uted Rs -+&001.+ million to e0che@uer on account of corporate ta0& di#idend and ta0 thereon and 7ealth ta0. Mar3et capitali5ation of the compan% is o#er Rs *( .illion <K, R A0.33 .illion appro0imatel%= ma3ing it the third largest compan% as on 3 .3.(008. Iighest e#er?capital e0penditure of Rs 8+- 1 million during (00+?08. 00; reali5ation of the .illing for the fifth %ear in succession. of NTPC o#er the %ears is gi#en (00*?0+ 88.+ 81.A8 10.01 3-380+ *8*A+ +.11 A.+ (.1 2007-08 2001/ /212G /21-2 G00-77 7G-G8 81G8 H16/ 61-6

Per"or#an*e o'er t$e years A glimpse of e#er impro#ing operational performance .elo7L (00-?0* "eneration <FK= +0.1 P4B <;= 8+.*A A#aila.ilit% <;= 81.1 Total Income <Rs million= (13313 PAT <Rs million= -8(0( "eneration N )mplo%ee <MK= +.8 !alue Added per )mplo%ee <Rs million= A.AA PAT per )mplo%ee <Rs million= (.**
- 27 -

MANL M8 Ratio Turnaround Capability

0.1

0.1

018/7

A testimon% to NTPC6s e0cellent operation and maintenance practices is the remar3a.le turn around of ta3en o#er pro>ects as can .e seen from the data of the ta3en o#er pro>ects gi#en .elo7L P4B prior to ta3eo#er <;= (00+?08 P4B <;= Talcher Thermal 8.+ 8*.3Fadarpur 3 .1A 8*.A* Tanda A.01 1 .** Knchahar 8.0( 1+.*1

E*o;al T$e e*ono#i* 'alue !enerated and distributed 2007-08 <Big. in RsNmill= A00& ++ (3*&3A+ 8&1*0 A*&8A0 3 & 8 31 **&+ 0

a . c d e f

Total income 'perating costs )mplo%ee 7age G .enefits Pa%ments to pro#iders of capital Pa%ments to go#ernment Communit% in#estments )conomic !alue Retained <a?.?c?d?e?f=

2e#elopment and impact of infrastructure in#estments and ser#ices are pro#ided primaril% for pu.lic .enefit through commercial& in?3ind& or pro .ono engagements. In line 7ith the Corporate ,ocial Responsi.ilit% H Communit% 2e#elopment <C,R H C2= Polic% H Jul% (00A& NTPC has ta3en up follo7ing acti#ities addressing the niche domains of socio?economic issues at National le#el. The Compan% does not recei#e an% financial assistance from the go#ernment. En'iron#ental Per"or#an*e NTPC uses three ma>or natural resources for its .usinessL 4and& 8ater and Bossil Buel. NTPC is ta3ing a num.er of initiati#es to7ards preser#ation of the en#ironment .% >udicious use of natural resources <coal& gas& 7ater and land=& pro#iding state?of?the?art pollution control s%stems& en#ironmental studies& en#ironment management monitoring etc. Dand% 4and is a precious commodit%. 8ith (.-; of the land area& India is home for *; of the 7orld6s human population and 8; cattle population. This calls for optimal G proper utili5ation of our land resources. Accordingl%& NTPC ma3es e#er% effort to optimi5e the land re@uirement for its po7er plants H main plant area as 7ell as au0iliar% facilities including ash disposal. Judicious siting to a#oid agricultural and forest lands and adoption of the state of the art technolog% such as compact la%out designs for main plant and to7nships& increasing ash utili5ation and increasing the height of ash d%3e. These steps ha#e resulted in significant reduction in land re@uirement for the pro>ect o#er the %ears. NTPC does not o7n& lease or manage an% su.?surface or underground land. ,ites
- 28 -

for NTPC stations are selected after rigorous e0ploration .ased on guidelines issued .% Ministr% of )n#ironment and Borests. NTPC& .eing a responsi.le corporate citi5en underta3es #arious studies to assess impact of operation of po7er plants on surrounding ecolog% and en#ironment. None of the pro>ect sites esta.lished .% NTPC 7ere located 7ithin the protected areas& the areas ad>acent to the protected areas or the areas of high .iodi#ersit% outside the protected areas. Io7e#er& in case of $ahalgaon ,TPP& the stretch of "anga ri#er ad>acent to the pro>ect 7as declared as a sanctuar% .% ,tate "o#t. after the pro>ect 7as accorded en#ironmental clearance .% Ministr% of )n#ironment and Borests and the construction of the pro>ect 7as nearing completion. Therefore& the construction and operation of po7er plants and associated facilities ha#e no direct or indirect impacts on the .iodi#ersit%.

8hile selecting the sites for pro>ects& areas ha#ing pri#ate land and homesteads are a#oided or the pro>ect .oundaries are routed in such a 7a% as to e0clude these areas. If it .ecomes ine#ita.le to ac@uire pri#ate properties& NTPC helps the displaced persons to impro#e their socio?economic status. In addition& communit% de#elopment 7or3 is also carried out around the pro>ects for the .enefit of general population li#ing in the #icinit%. @aterL Bresh 7ater is an essential .ut limited resource. Ma>or concerns related to 7ater resources include conser#ation of the 7ater @uantit% and control of 7ater pollution for conser#ation of 7ater?@ualit%. NTPC does not dra7 ground 7ater for its operations. Ma>orit% of 7ater 7ithdra7al is from ri#ersN damsN canals and onl% one plant i.e. ,imhadri ,uper Thermal Po7er Pro>ect is using sea7ater for cooling purposes. The source?7ise .rea3 up of 7ater 7ithdra7al @uantit% .% NTPC stations in %ear (00+?08 7as as follo7sL 0 o" *onsu#ption /81G20 -1H80 -00100 0 total

Sour*e Ri#er 8ater ,ea 8ater Total

3uantity A1A8.AA +1.-0 H0271/G

4#illion

Po7er plants of NTPC need 7ater for steam generators& condenser cooling as 7ell as other process re@uirements and effluents are produced as .%?product. ,teps for the conser#ation of 7ater in NTPC includeL All the po7er stations of NTPC ha#e cooling to7ers& e0cept its first set up generation po7er stations at ,ingrauli& Bara33a and Rihand <,tage?I=& all other stations ha#e closed c%cle cooling s%stem 7ith cooling to7ers. Increasing c%cles of concentration in Cooling ,%stem&
- 29 -

Kse of sea 7ater& 7here#er possi.le. Ash 7ater recirculation s%stem Rec%cling and reuse of effluents& e.g. use of Cooling To7er .lo7 do7n for ser#ice 7ater& ash 7ater and coal dust suppressionM Rec%cle of ser#ice 7ater& ash 7ater and coal dust suppression 7asteM Re?use of treated oil% 7aste as ser#ice 7ater etc. Treatment of sanitar% 7aste from plant and to7nship in ,e7age Treatment Plants and re?use in horticulture& as far as possi.le.

These steps ha#e resulted in significant reduction in 7ater re@uirement as 7ell as effluent generation. Treated effluents conforming to the regulator% standards are discharged into the natural 7ater course. Bossil Buel% Bossil fuels <coal& gas and li@uid fuels li3e naphtha and diesel= are the prime sources of energ% for thermal po7er plants of NTPC. The consumption of fossil fuels in a %ear depends on the generation capacit%& heat content of the fuel as 7ell as plant load factor during the %ear. '#er the %ears& the total consumpti#e use of fossil fuel .% the po7er plants of NTPC has .een on the rise due to the increased production capacit% as 7ell as increased capacit% utili5ation. 'n the other hand& Plant 4oad Bactor and Buel Eualit% <heat content= also #aried. Therefore& in order to ma3e comparisons of fuel use efficienc% o#er the %ears& C%cle efficienc% <7hich is the efficienc% of energ% con#ersion from heat energ% of the fuel to electrical energ%= has .een considered to .e more appropriate. The a#erage c%cle efficienc% of coal .ased stations for the past three %ears are as follo7sL A#erage Annual C%cle )fficienc% <Coal .ased stations= Dear C%cle )fficienc% <;= (00-?0* 3-.A (00*?0+ 3-.*3 (00+?08 3-.+3 Bor the same period& a#erage c%cle efficienc% of "as and 4i@uid .ased stations of NTPC are as follo7s. A#erage Annual C%cle )fficienc% <"as .ased stations= Dear C%cle )fficienc% <;= (00-?0* A3.00 (00*?0+ A3.(( (00+?08 A(.+A The slight fall in efficienc% of gas and li@uid .ased stations in (00+?08 can .e attri.uted to the com.ined effect of lo7er Plant 4oad Bactor <P4B= and 4oading Bactor <4B= as detailed .elo7
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IEAR (00-?0* (00*?0+ (00+?08

PDB 405 *-.8 + .10 *8. A

D B 405 80. 0 83.-+1.30

Total @uantit% of fuel used during the %ear (00+?08 is as follo7sL S1No1 ( 3 A aterial Coal "as 4i@uid Buel <Naphtha= 4i@uid Buel <I,2= +nit MMT MM,CM2 MT $4 Consu#ption (3.1( .83 0.*83 (3--A0

In addition to primar% fuels <coalNgasNli@uid fuel=& small @uantities of secondar% fuels <fuel oils= are also used during startup and sta.ili5ation of coal .ased thermal po7er plants. Foth H the primar% as 7ell as secondar% fossil fuels are completel% consumed in the process and therefore cannot .e rec%cled. The onl% possi.ilit% a#aila.le is to reco#er ma0imum heat energ% from the fuels 7hich is .eing done at the stations through multiple heat reco#er% s%stems li3e 4P heaters& IP heaters& Air pre heater& etc. Io7e#er& the entire @uantit% of lu.e oil and insulating oil used in po7er stations are rec%cled .% centrifuging 7hich helps in reduction in net oil consumption& cost of generation and ad#erse impact on the en#ironment. Ener!y% All NTPC stations are .ase load stations and therefore& there is hardl% an% period 7hen the stations are not producing electricit% and NTPC stations generall% do not dra7 an% po7er from e0ternal sources. ,uch situations& if an%& are e0tremel% rare and the @uantum of such energ% 7ould .e too miniscule to @ualif% as a performance indicator for NTPC po7er plants. Internal energ% re@uirement of po7er plants is e0pressed in terms of 9Au0iliar% Po7er Consumption6 <internal po7er consumption as a percentage of the total po7er generated=. The 9Au0iliar% Po7er Consumption6 of coal .ased stations of NTPC has .een reducing steadil% o#er the past %ears& as follo7sL Auxiliary Po&er Consu#ption 4Coal >ased Stations5 IEAR (00-?0* (00*?0+ (00+?08 Auxiliary Po&er Consu#ption 405 *.11 *.+1 *.*+

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Au0iliar% Po7er Consumption of gasN li@uid fuel .ased stations for the last three %ears are similarl% ta.ulated .elo7. It can .e seen that the APC parameter has .een more or less sho7ing a reducing trend. The slight increase in APC in the reporting %ear can .e attri.uted to the poor loading factor at 7hich these stations ha#e .een operating on account of high fuel costs and conse@uent reduced dispatch. Auxiliary Po&er Consu#ption 4(asJ Di?uid Buel >ased Stations5 IEAR (00-?0* (00*?0+ (00+?08 Auxiliary Consu#ption 405 (. + (.0(. 0 Po&er

ini#iFin! I#pa*ts% A detailed )n#ironmental Impact Assessment <)IA= ,tud% is underta3en and an )n#ironmental Management Plan is prepared .efore start of an% pro>ect H 7hether green field pro>ect or e0pansion of e0isting pro>ect. Fased on )IA Report& en#ironmental clearance for the pro>ect is o.tained from the Ministr% of )n#ironment and Borests& "o#ernment of India. Compliance 7ith en#ironmental legislations& standards and stipulations made in the en#ironmental clearance ensure that there is no ad#erse impact on the .iodi#ersit% of the surrounding area. Air E#issions and Pollution Control% Com.ustion of fossil fuels in thermal po7er plants leads to air emissions. The emissions from coal .ased po7er plants mainl% contain particulate matters and o0ides of nitrogen and sulphur 7hile the emissions from gasN li@uid fuel .ased po7er plants are free from particulate matters and o0ides of sulphur. These emissions mainl% contain o0ides of nitrogen. Burther& .oth coal and gas .ased po7er plants emit car.on dio0ide& a ma>or green house gas. In addition to the a.o#e& fugiti#e emissions ma% also .e generated due to handling and storage of coal and ash. In most of the de#eloped countries limits are prescri.ed for ,' (& N'0 and ,PM emissions either on normati#e emission standards <mgNNm3= or on total @uantified emissions <TonN%r=. In India& limits are in place for ,PM <mgNNm 3= onl%. Bor the %ear (00+?08& the estimated emissions of pollutants through stac3 7ere as follo7sL Total )missions <TN%r= +A11(8 310+A* *3 0+ )mission Intensit% <gmN37hr= 3.8 (.0 0.8

,'( N'0 ,PM

Note !. "imits for #$% & N$' emissions from stack for coal based stations have not been specified by (o)* + C,C-. %. Assessment of .uantity has been done based on stack sampling data collected from stations on monthly basis.

In order to control air pollution& all coal .ased pro>ects are pro#ided 7ith high efficienc% electrostatic precipitators and proper .urner design for N'0 Control. The emissions are discharged through tall stac3s so that the resultant impact at ground le#el is minimum.
- 32 -

Bor control of fugiti#e dust emissions& dust e0traction and suppression s%stems are pro#ided in coal handling plants 7hile the fugiti#e dust emissions from ash disposal areas is controlled through 7ater spra%N 7ater co#er. In gasN li@uid fuel .ased po7er plants& lo7 N'0 .urners or pro#ided. As$ ana!e#ent% Ash is a .%product of coal .ased po7er stations. Io7e#er& NTPC considers ash as a resource rather than a 7aste product. Ash utili5ation is one of the thrust areas of NTPC and NTPC has made a stead% progress in ash utili5ation. NTPC has underta3en se#eral scientific studies through reputed la.oratoriesN institutes to pro#e the #arious facades of ash utili5ation. At present& ash is utili5ed for ma3ing ash .ric3s& construction of road em.an3ments& ash d%3e raising& manufacturing of cement& concrete and other construction materials& mine filling and sto7ing of underground mines. The dr% fl% ash is dispersed through dr% ash e0traction s%stems. Pond ash is also distri.uted for land filling& em.an3ments and road construction. 2elhi Metro Rail Corporation <2MRC= has used fl% ash generated at 2adri and Fadarpur e0tensi#el% for construction purpose. NTPC has set up fl% ash .ric3 units at most of the plants for meeting their internal .ric3 demands as 7ell as for demonstrating the use of fl% ash .ric3s to the societ%. This has %ielded results .% fresh fl% ash .ric3 units .eing set up in the near.% areas generating self emplo%ment opportunities for the rural %outh and also ensuring the suppl% of @ualit% .ric3sN .loc3s to near.% industries. Ash generation and utili5ation for the last three %ears is as follo7sL As$ (eneration and +tiliFation 4in illion Ton5 200H-0K 200K-07 Ash "enerated 31. Ash Ktili5ed (0.8 2007-08 A3 (3.+

2uring (00+?08& NTPC utili5ed a.out (3.+0 million tones of ash accounting to o#er --; of total ash generated. Knutili5ed ash is disposed off in an en#ironment friendl% manner in the 7ell?designed and maintained ash d%3e areas. 2isposal o" ,t$er @asteL NTPC has a comprehensi#e 7aste management s%stem. NTPC follo7s the principle of 3 :R6s <Reduce& Reuse and Rec%cle=. NTPC manages its 7aste #ia rec%cling& reusing or properl% disposing& 7ith the intention of causing no harm to the en#ironment. 8astes other than ash& disposed off during (00+?08 are as follo7sL , No. ( 3 Misc. Berrous ,crap G Non?Berrous ,crap <Tons= 4u.e oil S Transformer 'il <$4= Ksed Fatteries <No.= (00+?08 801 --8 3 1 2estination Auction through MNs M,TC ,old to registered rec%clers Collected .% #endor suppl%ing ne7 .atteries under .u% .ac3 arrangement

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A""orestation% Maintenance of ecological .alance has .een of utmost importance at NTPC. NTPC underta3es afforestation programmes co#ering #ast tracts of land in and around its pro>ects in a concerted .id to counter the gro7ing ecological threat. Appropriate afforestation programme for plant& to7nship& green?.elt and other sites are designed according to the geographical features. ,a#ing e0isting trees& planting right at the .eginning of construction phase& preser#ation of trees and ad#ice from ,tate Borest 2epartments and agricultural uni#ersities are a fe7 general guidelines follo7ed .% NTPC. ,pecies are selected on the .asis of their adapta.ilit% and grouped 7ith local representati#es. The gro7th characteristics& flo7ering pattern and canop% <spreading nature= are e#aluated in their distri.ution o#er these sites of afforestation. These considerations not onl% contri.ute to the aesthetics .ut also go a long 7a% in ser#ing as :,in3s6 for the pollutant emission of the po7er plant. Till date NTPC has planted more than 8.3+ million trees at its pro>ects throughout the countr%. NTPC and Cli#ate C$an!e India predominatel% relies on its #ast coal reser#es to meet its energ% re@uirements& particularl% for po7er generations <a.out +8; of the coal produced in the countr% is used for po7er generation= and this is e0pected to continue in the medium term. 8ith the increasing demand for po7er& e0pected to fuel the economic gro7th and the fact that large parts of India6s population still does not ha#e access to electricit%& the onus 7ould .e on po7er utilities to implement po7er pro>ects. The a#aila.ilit% of po7er shall ha#e to .e ensured in terms of relia.ilit% as 7ell as afforda.ilit%. The Knited Nations Brame7or3 Con#ention on Climate Change <KNBCC= and the $%oto Protocol does not put an% targets for reduction of C'( emissions for de#eloping countries& since it is understood that the de#elopment needs in these countries need to .e addressed first. 8ithin this frame7or3& NTPC recogni5es itself as strategicall% placed to pla% a leadership role in po7er generation in India& and see3s to ser#e as an e0emplar% compan%. NTPC has large coal .ased capacities <a.out 80;=. NTPC is amongst the cleanest fossil fuel .ased large po7er generators in the 7orld as its C' ( intensit% is compara.le 7ith the .est. As the largest and most efficient po7er utilit% in India& 7e are committed to pla% a leading role in dealing 7ith climate change related issues. A multi dimensional approach has .een adopted .% NTPC comprising the reduction of C'( emission through fuel portfolio management 7ith special thrust on rene7a.le energ%& adoptions of state of the art technolog% for enhancing the operational efficienc% of stations& Reno#ation G Moderni5ation <RGM= of older plants& de#eloping green .uilding space 7ithin compan% premises& promoting energ% conser#ation& research and technolog% de#elopment. NTPC has plans to ha#e a 7ell di#ersified fuel mi0 for po7er generation comprising h%dro& nuclear and rene7a.le energ% .ased po7er generated apart from the e0isting coal and gas .ased po7er generation. This 7ill reduce emissions intensit% <C'( emissions gramsN37hr= in the process of po7er generation. F% (0 +& NTPC intends to ha#e a more di#ersified fuel mi0 7ith +0; of its capacit% .ased on coal& around A; .ased on gas& (; .ased on h%dro& 3; nuclear and ; .ased on rene7a.le energ% sources. In terms of capacit%& NTPC has a target of setting up h%dropo7er capacit% of 1&000 M8& nuclear po7er capacit% of (&000 M8& and rene7a.le energ% capacit% of &000 M8 .% (0 +.
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In the long run& s7itching o#er to non?fossil fuel .ased po7er generation holds the 3e% to mitigation and sustaina.ilit%. 8ith 7ider dissemination of technolog%& cost of rene7a.le energ% is li3el% to .ecome afforda.le in the future. Rene&able Ener!y Sour*es: I%dropo7er is en#ironmentall% .enign and is not lin3ed to issues concerning fuel suppl%. It enhances our energ% securit% and is ideal for meeting the e#er?pea3ing demand. Intrinsic merit of h%dropo7er is ? it is rene7a.le and non?polluting in nature& has high con#ersion efficienc%& has fle0i.ilit% in operation 7ith longer life of e@uipment and lo7er operation and maintenance cost. NTPC has alread% commenced construction of h%dro po7er plants and a capacit% totaling &1(0 M8 is under implementation. NTPC is planning to set up po7er plants .ased on rene7a.le energ% as part of its strateg% to ha#e a di#ersified po7er generation portfolio. 'ut of the &000 M8 planned .% NTPC for rene7a.les .% (0 +& solar po7er shall account for - M8. <'thers are 8ind H *-0 M8& ,mall I%dro 300 M8& Fiomass H - M8& "eothermal H 30 M8=. Beasi.ilit% studies ha#e .een ta3en up for setting up a 0 M8 solar field at Anta. A M8 solar plant at Andaman G Nico.ar is also .eing e0plored. Continuous efficienc% impro#ement& through technological initiati#es and up?gradation and promoting en#ironmentall% sustaina.le po7er de#elopment& has al7a%s .een high in NTPC6s agenda. NTPC has .een inducting progressi#el% higher efficienc% generating units in its fleet since 1+8 and has consistentl% focussed on impro#ing the thermal c%cle efficienc%. Burther& energ% efficient supercritical technolog% .ased **0 M8 units are under implementation .% NTPC& 7hich also reduce the "I" emissions. ,tudies are .eing underta3en to e0amine the techno?economic #ia.ilit% for commercial adoption of the more efficient Kltra?,upercritical technolog% in the Indian conte0t. 'n the one hand NTPC is ma3ing all efforts for sustaina.le po7er de#elopment on the other it is also in#ol#ed in #arious glo.al forumsNpartnerships as 7ell as independent research acti#ities related to "I" mitigation& C'( fi0ation& solar energ% and other related measures. ,ome of the ma>or ones are detailed ahead. 2e'elop#ent o" I(CC Te*$nolo!yL In order to efficientl% utili5e Indian coal& there.% reducing its car.on footprints& NTPC is also pursuing the Integrated Coal "asification Com.ined C%cle <I"CC= technolog% suita.le for Indian coal. NTPC R72 and Ener!y Te*$nolo!y Centre a*ti'ities "or e""i*ien*y i#pro'e#ent : NTPC6s RG2 Centre and )nerg% Technolog% Centre pro#ide high end scientific ser#ices to all the stations of NTPC as 7ell as man% stations of other po7er companies resulting in impro#ing a#aila.ilit% and relia.ilit% of stations .% pro#iding condition assessment& failure anal%sis& sol#ing and anal%5ing specific pro.lems and helping stations in increasing the a#aila.ilit% and relia.ilit% of the po7er generating units. RG2 centre is de#eloping coal .eneficiation techni@ue .% oil agglomeration method. This method 7ill reduce the ash content in coal economicall%.

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The Centre is 7or3ing in areas li3e car.on capture& po7er plant efficienc% impro#ement& 7aste heat utili5ation& flue gas conditioning& etc. 'ther research pro>ects 7ould include de#elopment of Coal "asification Technolog% for commercial use& reducing cost of harnessing solar energ%& 4)2 lighting etc. Ener!y E""i*ien*y: As a proacti#e measure to address issues concerning sustaina.le energ% de#elopment& NTPC had esta.lished Centre for Po7er )fficienc% and )n#ironment Protection <CenP))P= in the %ear 11-& 7ith the help of K, 2epartment of )nerg% and K,AI2. CenP))P too3 #arious initiati#es for impro#ement in efficienc% and maintenance to achie#e sustaina.le "I" emission reduction from e0isting thermal po7er plants. A customi5ed :)fficienc% Management ,%stem6 has .een de#eloped and is implemented in NTPC plants for sustaining the efficienc% impro#ement. )ncouraged .% the success of its efforts in "I" emission reduction& the K,AI2 e0tended its technical cooperation 7ith CenP))P up to (0 0. NTPC has ta3en initiati#es to impro#e efficienc% and relia.ilit% of its units& 7hich are the thrust areas of its 'GM strateg% through )nerg% )fficienc% Management ,%stems <))M,=. NTPC reali5es that .eing the largest po7er utilit% in the countr%& it has to ta3e the pole position and pro#ide the countr% 7ith relia.le and afforda.le po7er. The initiati#es mentioned a.o#e are e0pected to reinforce the compan%6s leadership in the sector& climate change concerns not 7ithstanding. Super*riti*al and +ltra Super*riti*al Te*$nolo!ies% NTPC has .een pioneer in introduction of ne7 technologies in the Indian po7er sector and are adopting super? critical and ultra super?critical technologies for raising the c%cle efficienc% of po7er units from 38; to o#er A0;. An appro0imate estimation sho7s that .% adoption of super? critical technolog% 7ith unit configuration of */**0 M8 or -/800 M8& the coal consumption o#er the (- %ears9 lifetime of the po7er plant reduces .% (* to 30 million tons as compared to coal consumption .% a t%pical su.?critical A&000 M8 po7er plant 7ith unit configuration of 8/-00 M8. The conse@uent C'( emission reduction is also e0pected to .e a.out 33 million tons. (reen House (as E#issions "ro# NTPC% In @uantif%ing greenhouse gas <"I"= emissions associated 7ith a po7er station& it is important to consider the entire process chain. Ful3 of C'( emissions from po7er plants is from direct com.ustion of CoalN"as. Remaining indirect components in the process chain are insignificant 7hen compared 7ith C'( from com.ustion process. C'( emissions on account of au0iliar% po7er consumption and po7er consumption in to7nships ha#e alread% .een included in com.ustion process. Bor assessing C'( emission from NTPC plants& methodolog% prepared .% 8orld Resource Institute has .een used. This methodolog% is .ased on a#erage calorific #alue of the coal .urnt and @uantit% of coal .urnt in a %ear. This method uses default factor <IPCC?Intergo#ernmental Panel on Climate Change= for particular t%pe of coal for car.on content in coal. Bor the %ear (00+?08& the estimates of C'( emissions due to com.ustion of fossil fuels in po7er plants of NTPC are as follo7sL Total C,( C,( E#ission E#issions Intensity 4 etri* TJyr5 4!#J8&$r5
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All NTPC Stations 4Coal -K/-KG72H L(as5

8HG1H

/ C$% emissions from (01 operations will be part of indirect 020 emissions at #ingrauli, 3indhyachal, 1ihand, 4ahalgaon, *arakka, 4orba and 5alcher 4aniha #tations. 020 emissions from (01 operations are insignificant when compared to C$% emissions from combustion process.

E#issions o" ,Fone 2epletin! Substan*es% 2uring the process of po7er generation no o5one depleting su.stances are produced. Io7e#er& some of the stations use fire?fighting s%stems 7ith Ialon gas. These s%stems are also .eing phased out at NTPC. CBC in all air conditioning s%stems ha#e .een replaced .% ICBC. ,ome of the stations ha#e alread% replaced e0isting ICBC .ased air?conditioning s%stem to #apor a.sorption s%stems for further reducing the use of o5one depletion su.stances. All care is ta3en through planned maintenance for arresting lea3s of o5one depleting su.stances from air condition s%stems so that consumption of ICBC is minimi5ed. )n#ironment planning and conser#ation is an integral part of pro>ect acti#ities in NTPC. NTPC pro>ects compl% 7ith all the e0isting norms and standards laid do7n .% regulator% agencies. )n#ironmental audits are regularl% conducted to identif% en#ironmental pro.lems and measures are ta3en to o#ercome or reduce it. All NTPC stations are e@uipped 7ith state?of?the?art pollution control de#ices. 8here#er feasi.le& these s%stemsNde#ices are up?graded from time to time to meet the ne7er en#ironmental standards stipulated .% the Central and ,tate regulator% Authorities. All NTPC stations are certified 7ith I,'L A00 certification& an internationall% recogni5ed )n#ironmental Management ,%stem. No spill of 'il has .een reported from an% NTPC station for the %ear (00+?08. )ffluent @ualit% is regularl% monitored at all NTPC stations at prescri.ed inter#als& Concentration of 'il and "rease is .elo7 statutor% limit at all stations. Products and ser#ices rendered .% NTPC do not ha#e en#ironmental impact at user end. )lectricit% produced is transmitted and consumed at the time it is produced. The product for NTPC is )lectricit%& 7hich gets consumed as it is produced. It doesn6t re@uire an% pac3aging therefore this indicator is not rele#ant to NTPC as such. No monetar% fine& sho7 cause notices or direction recei#ed from regulators for non compliance 7ith en#ironmental la7s and regulations has .een imposed on an% NTPC station during (00+?08. No instances of introduction of in#asi#e species& pests and pathogens& reduction of species& ha.itat con#ersion& changes in ecological processes outside the natural range of #ariation or species affected ha#e ta3en place.

So*ial Per"or#an*e Committed to the cause of inclusi#e and sustaina.le socio?economic de#elopment& NTPC .elie#es in fulfilling larger societal purposes& going .e%ond po7er generation and 7ealth creation. NTPC is focusing on .eing more accessi.le and .ecoming a strong local
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communit% partner. 8e support local communities through a 7ide #ariet% of C,R programmes. Internal A**ountability to ,ur @or8"or*e% NTPC has a strong 7or3force of (3*+A emplo%ees spread across India. 'ur po7er generation operations ha#e .een di#ided under si0 regions ? North& ,outh& )ast& 8est& National Capital and I%dro. 1-; <Nos. ((&010= of the manpo7er is emplo%ed in these regions. Apart from this& 7e also ha#e presence in po7er distri.ution& po7er trading& po7er consultanc% ser#ices and coal mining.. Bor po7er distri.ution and po7er trading& 7e ha#e set up su.sidiar% companies. anpo&er Status ," Po&er Stations As ,n 6-10612008 4ocationN,tation CC NRIE ,ingrauli Rihand Knchahar Tanda Sub-Total4NR5 8RIE $or.a !indha%achal Jhanor?"andhar $a7as Sub-Total4@R5 ,RIE Ramagundam ,imhadri R"CPP Sub-Total4SR5 )R?IE Bara33a $ahalgaon Talcher<$= TTP, Sub-Total4ER5 NCR?IE Fadarpur 2adri Anta Aurai%a Barida.ad Sub-Total4NCR5 Total-,peratin! Stations )0ecuti#es -78K 13 A+0 AA38 (38 -K27 (8 A1A *(( 0+ -GK2 +1 - 3 33+ 8+ ---K 3A+( -(* A8+ ( 1 -86/ (0 3A* A-( 8* 03 1* -206 /066 Non? )0ecuti#es H8H A(03 * 1 *1* 3AA 2/07 (0 (8( 0 * 8+ +3 2H78 +A A ( 0 + -GK/ *0 8 *-+ * 0 8(3 62K8 3+ 83 *8 A -0 -8 22H0 -60H7 Total 26738 *+3 0*A 0++ -8( GH6G A8 ++* *38 1A (8A G0G0 (-3 *(+ -A+ -8 2H8H 1-10 83 01+ 0A( H-07 -+ -(1 33 ((+ (-3 -A 6GH6 220/0

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All emplo%ees in NTPC are permanent and full time. The manpo7er can .e classified into ( categories H e0ecuti#es and non?e0ecuti#es. The e0ecuti#es are distri.uted across le#els from ) to )1& 7hile non?e0ecuti#es are distri.uted across ( le#els from 80 to 8 . )0ecuti#es are emplo%ees 7ith professional @ualification <e.g. )ngineering& MFA& CA& etc.= and comprise appro0imatel% A-; of the 7or3force. Non?e0ecuti#es& 7ho comprise the .alance --;& can .e classified into 3 cadres H uns3illed& semi?s3illed and s3illed. NTPC has .een graduall% increasing its e0ecuti#e manpo7er o#er the %ears in line 7ith its long?term #ision and strateg%. F% (0 +& 7e plan to .ecome an integrated po7er ma>or 7ith +-&000 M8 installed capacit% .% emplo%ing appro0imatel% 30&000 emplo%ees. This implies that 7e ha#e to .ring do7n our ManL Mega7att ratio from current of 0.1 to 0.*. This can .e achie#ed through a @ualified and multi?s3illed 7or3force. 8e ha#e .een recruiting -00? 000 emplo%ees per %ear in e0ecuti#e cadre under this strateg%& 7hile non? e0ecuti#e recruitments ha#e .een limited to speciali5ed s3ills. NTPC has a structured s%stem of conducting e0it inter#ie7s for emplo%ees separating& #oluntaril% and in#oluntaril%& from NTPC. The inter#ie7 is ta3en .% the Iead of IR of the plantN office 7here the concerned emplo%ee is posted. It is then re#ie7ed .% the Fusiness Knit Iead of the location. The primar% o.>ecti#e of conducting e0it inter#ie7 is to find out the cause of emplo%ee6s dissatisfaction and remo#e it& if possi.le. It is also an opportunit% to retain the emplo%ee in the compan%. At organi5ational le#el& data from e0it inter#ie7s is anal%5ed to find the reasons of attrition at macro le#el. This information is shared 7ith compan%6s top management 7herein emplo%ee retention strategies are chal3ed out. In NTPC& o#er past man% %ears& there ha#e not .een an% significant #oluntar% separations <e0cept a fe7 under #oluntar% retirement scheme= in the non?e0ecuti#e cadre. Attrition amongst 7omen emplo%ees& .oth in e0ecuti#e as 7ell as non?e0ecuti#e cadre& has .een nil. Burther& it has .een seen that A0; to -0; emplo%ees 7ho separate from NTPC each %ear are the ones 7ho are under 30 %ears of age and ha#e ser#ed for less than - %ears 7ith the Compan%. NTPC has plants in remote locations& a7a% from cities and most of ne7 recruits are posted to these areas to fuel our rapid e0pansion and gi#e them e0posure of our operations. Although& the Compan% has de#eloped full?fledged to7nships around its pro>ects& attrition is found to .e higher in ne7 pro>ects 7here to7nship facilities are not full% de#eloped. The IR policies pertaining to the organi5ation defined plan .enefit o.ligation areL Pay#ent o" (ratuity H "ratuit% is pa%a.le to all emplo%ees under Pa%ment of "ratuit% Act 7ho ha#e completed minimum - %ears of ser#ice 7ith NTPC. Knder the scheme& - da%s pa% for e#er% completed %ear of ser#ice is pa%a.le to emplo%ee upon his separation. Till recentl% this amount 7as capped at Rs 3.- la3hs. Io7e#er& after the last pa% re#ision& the cap has .een re#ised to Rs 0 la3hs.
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Pro'ident Bund H NTPC has )mplo%ee Pro#ident Bund <)PB= esta.lished for its emplo%ees. Knder this scheme& e#er% emplo%ee contri.utes (; of his monthl% .asic pa% and dearness allo7ance to7ards his )PB. The compan% also contri.utes an e@ual amount to7ards the emplo%ee9s )PB account. The fund earns an interest <as declared .% "o#ernment= that is compounded annuall%. The corpus is pa%a.le to emplo%ee at the time of his superannuation. ,e#eral non?refunda.le and refunda.le loans are also allo7ed to emplo%ees as per the scheme rules. (roup Personal A**ident Insuran*e S*$e#e H NTPC has su.scri.ed to "roup Personal Accident Insurance ,cheme <"PAI,= for its emplo%ees. Knder this scheme& an emplo%ee and his dependents are eligi.le for compensation up to -0 times his monthl% pa% <Fasic and 2earness allo7ance= in current financial in e#ent of his death or disa.ilit% resulting from accidents. (roup Insuran*e H NTPC has su.scri.ed to a Term "roup Insurance Polic% for its emplo%ees. Knder the scheme& life of each emplo%ee is insured .% the Compan%. The sum assured& depending on le#el& is pa%a.le to emplo%ee6s famil% in e#ent of his death. S*$e#e o" Post Retire#ent edi*al >ene"its H NTPC e0tends its medical .enefits to emplo%ees after their retirement also. The ,cheme is framed 7ith a #ie7 to pro#ide medical .enefits to the e0ecuti#es of NTPC and their spouses su.se@uent to their retirement& on contri.utor% .asis. Knder the scheme reim.ursement of Medical e0penses incurred for indoor treatment are allo7ed& su.>ect to the condition that the treatment is done in "o#ernment hospitals or other hospitals notified .% the Compan%. Bor domiciliar% treatment& the annual ceiling for reim.ursement of e0penditure incurred for treatment has .een set e@ui#alent to the ma0imum of the Pa% ,cale of a ser#ing e0ecuti#e of e@ui#alent statusNran3& on the last da% of the rele#ant financial %ear. Pension S*$e#e H A contri.utor% pension scheme e0ists for emplo%ees. Knder the scheme& a fi0ed sum is deducted from their salar% e#er% month to7ards the pension fund. The .enefit arising out of scheme is proportionate to the contri.ution made .% each emplo%ee. NTPC E#ployees >ene'olent Bund S*$e#e ? The NTPC )mplo%ees Fene#olent Bund ,cheme 7as introduced 7ith a #ie7 to pro#ide financial assistance to the families of mem.er emplo%ees 7ho die a natural death 7hile in the emplo%ment of the Compan%. Knder the scheme& in case of death of an emplo%ee during ser#ice& all emplo%ees contri.ute Rs (- from their salar%. The fund accumulated is paid to the famil% of deceased.

All non?e0ecuti#es in NTPC& comprising of --; total 7or3force& are co#ered under collecti#e .argaining agreements.

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The ape0 le#el .ipartite committee <NFC= comprising Knion and Management representati#es& has one representati#e each from the follo7ing four Central Trade Knion 'rgani5ationsL INTKC& FM,& CITK and AITKC. The composition of the National Fipartite Committee <NFC= necessitates determination of representati#e unions from each pro>ectNstation as one Knion from one pro>ectNstation& represent the 7or3men of that particular pro>ectNstation in NFC. Thus& 7here ,tate 4a7s do not e0ist for identification of representati#e union& Management through the concerned 4a.or 2epartment identifies the representati#e union from that particular pro>ectNstation .% conducting secret .allot. NTPC deals firml% 7ith ,tri3es and Management of 2iscipline and 7or3s on the principle of :No 8or3 No Pa%6 and puniti#e action for indiscipline. ,ince it is not possi.le to ha#e de#elopment and gro7th 7ithout industrial peace and harmon%& efforts are regularl% concentrated on securing this in the first instance. Not a single man?da% has .een lost in NTPC in last 0 %ears due to an% Industrial Relations <IR= scenario. An IR Model has .een de#eloped& 7hich is made use of for creating a conduci#e climate for enhancing producti#it%. The model emphasi5es on proacti#e approach to )mplo%ee Relations including Compensation and )mplo%ee 8elfare. :,omething for ,omething6 principle in NegotiationsNCollecti#e Fargaining is adopted. This has .een used in 113& 11+ and (00+ 8age Re#isions and is no7 accepted as an esta.lished principle .% the emplo%ee representati#es. This has resulted in mutual gains for .oth& management and 7or3men. A programme :Partners in Progress6 7as started for emplo%ee representati#es& 7ith the o.>ecti#e of primaril% aligning them to organi5ational needs and re@uirements in the conte0t of changed .usiness situation. The programme includes 7or3shopNaction planning at ape0 le#el 7ith the o.>ecti#e of .ringing producti#it% and @ualit% impro#ement 7ith commitment to increasing producti#it%& and follo7 up 7or3shopsNre#ie7 of implementation at Regional le#el. The programme has helped in the emergence of responsi.le trade unionism in the Compan% NTPC promises an opportunit% for lifetime emplo%ment to its emplo%ees. There ha#e .een no la%?offs or retrenchment .% the Compan% since its inception in 1+-. In case an% emplo%ee 7ishes to #oluntaril% terminate his ser#ices 7ith the organi5ation& he is re@uired to gi#e a 3 months notice to the Compan%. Minimum notice periods<s= regarding other significant operational changes are specified in the respecti#e standing order of each NTPC Knit. These are formulated under the Industrial )mplo%ment ,tanding 'rder Act& 1A*. There is no local recruitment at senior le#els in the compan%. NTPC has a formali5ed and standardi5ed recruitment process. NTPC .elie#es in the philosoph% :"ro7 %our o7n Tim.er6. 8e recruit fresh engineers and MFAs from institutesN colleges and groom them into po7er professionals. In line 7ith our a.o#e philosoph%& upto 10;?1-; of hiring is done at induction le#el onl%. The hiring is done at follo7ing entr% le#el positions H a. .. )0ecuti#es ?? ) <Assistant )ngineer= and )( <)0ecuti#e Trainee= le#el Non?e0ecuti#es H <i= 2iploma trainee <,uper#isor% G e@ui#alent grade= H , N 8+ le#el <ii= Artisan Trainee <,3illed categor%= H 83 G 8A le#els <iii= Kns3illed "roup H 80 le#el

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4ateral hiring is done onl% to o#ercome shortages that cannot .e internall% filled. Burther& as NTPC is a "o#ernment of India enterprise& all posts are openl% ad#ertised in National 2ailiesN Regional 2ailies and posted on NTPC 7e.site httpLNN777.ntpc.co.inN>o.sQntpc and intimated at )mplo%ment )0changes. )0tensi#e Programmes& 7or3shops and medical camps are organi5ed in NTPC Iospitals as 7ell as training centers for creating a7areness and pre#ention of diseases. The emplo%ees as 7ell as their famil% mem.ers are gi#en e0posure on education and counseling is regularl% underta3en at #arious )mplo%ee 2e#elopment Centers <)2Cs=& 7hich are local training centers at each location. The programmesN7or3shops on safet%& ris3 control as 7ell as serious diseases are .eing conducted regularl%. ,ome of the programmes on Iospital Management& as 7ell as& serious diseases are also .eing conducted at Po7er Management Institute <PMI=& 7hich is the ape0?training institute of NTPC. ,ome of the programmes conducted areL Iospital Management Programme Programme on Cancer 2etection and )radication 8or3shops on health Care Programmes on Recent Trend in Nursing Care Programmes on Ieart Care& Cardiolog%& dia.etes and h%pertension Care Participants CI,BNNTPC )mplo%ees )ducationN Counseling Training T T T T T T T T T T T T T T T T T T Pre#entionN Ris3 control T T T T T T T T T T T T T T T T T Treatment UU

Programme AI2, Nutrition

CI,BNNTPC )mplo%eesN !illagers 8ater Forne 2iseases Communit% Cardiac 2iseases G CI,BNNTPC I%pertension 2ia.etes )mplo%ees Pre#ention of CI,BNNTPC ,mo3ingNTo.acco )mplo%eesN Consumption Communit% "eneral Iealth Communit%N A7areness )mplo%ees ,na3e Fite Communit% Population control )mplo%eesN CI,BN Communit% Maternit%NChild Iealth Communit%

NTPC pro#ides minimum + man da%s <-* Iours= of training to each emplo%ee e#er% %ear irrespecti#e of le#el or categor%. 4ast %ear& a#erage hours of training per %ear per emplo%ee in e0ecuti#e categor% 7ere +.31 and + in non?e0ecuti#e categor%. 8e ha#e a 7ell?structured training polic% that is .ased on organi5ation6s philosoph% of )mplo%ee
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2e#elopment. The s%stem is .ased on the training need anal%sis in the form of essential& desira.le& short?term and long term. Training and 2e#elopment s%stem consists of mainl% three processes H Training Need Assessment <TNA=& Imparting the Re@uisite Training and Training )#aluation. Training need anal%sis process ta3es input not onl% from Fusiness Needs& Performance Management 2ata& 'rgani5ation 7ide Training Need Anal%sis& .ut also specific de#elopment plans& indi#idual Training Need Anal%sis& 2e#elopment Centre output& Ps%chometric Tests output& Planned inter#entions at different le#els& Iealth G ,afet%& TEM areas& etc. Bollo7ing t%pes of training inter#entions are underta3en as en#isaged in our training polic%L . Technical training and s3ill up gradation in po7er plant <thermalN h%dro= technologies (. Non?technical and softer areas A. )0ecuti#e and Managerial s3ills F. Customer orientation C. Integrated personalit% de#elopment 2. Attitudes G .eha#iors 3. 'rgani5ational de#elopment issues li3eL A. Bunctional management area F. Industr% .est practices C. Fenchmar3ing& -,& EC& $ai5en etc. A. )ducational Kp gradation plan A. F, <Po7er )ngineering= in colla.oration 7ith FIT, Pilani F. M Tech <Po7er generation= in colla.oration 7ith IIT& 2elhi C. P"2FM in "eneral Management 7ith M2I "urgaon 2. ITI for all matric?pass non?e0ecuti#es ). 2iploma course for all ITI non?e0ecuti#es NTPC has its o7n training infrastructure for pro#iding technical and managerial training 7hich comprises of the Po7er Management Institute <PMI= at ape0 le#el& )mplo%ee 2e#elopment Centers <)2Cs= at (* locations& and ( ,imulator Centers for pro#iding training in operating po7er plants. 8e also sponsor emplo%ees to e0ternal training facilities in India and a.road. Men and 7omen are paid e@ual salar% and other .enefits in NTPC. Pa% in NTPC is go#erned .% pre?determined pa% grades. Fasic pa% is a function of grade and seniorit%. )mplo%ees in same grade and 7ith same seniorit% ha#e same .asic pa% irrespecti#e of their se0. All other .enefits are incidental on ser#ice conditions and performance. NTPC is an e@ual opportunit% emplo%er o7ing to its pan India presence. Apart from this natural mi0& there are a num.er of special pro#isions at 7or3place for impro#ing the gender ratio in the organi5ation. Toda%& there are & 00 7omen emplo%ees 7or3ing in NTPC against ((&-+A male emplo%ees. Hu#an Ri!$ts

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NTPC is an e@ual opportunit% emplo%er and o7ing to its pan India presence& there is a lot of di#ersit% amongst emplo%ees in terms of religion& dialect and culture. Apart from this natural mi0& there are a num.er of special pro#isions at 7or3place for gro7th and de#elopment of emplo%ees of .ac37ard classes and ph%sicall% challenged categories. There is no discrimination made .ased on gender& religion& or ethnicit% of emplo%ees. The Compan% has a full?fledged mechanism of resol#ing the grie#ance cases& 7hich inter alia& includes the alleged discrimination. The Compan% secretar% is the 2irector <"rie#ances= in this regard. 8e tr% to address emplo%ee grie#ances in a time .ound manner as stipulated in the polic%. The incidences of grie#ances reported under the s%stem o#er past * %ears and their status is gi#en in the ta.le .elo7L (rie'an*es Status "rie#ance cases at the .eginning "rie#ance Cases Recei#ed "rie#ance Cases 2isposed "rie#ance Cases 'utstanding 07-08 * (* (( 0 0K-07 3 3( (1 * 0H-0K ( 3A 3 0G-0H A ((+ ( 06-0G A A3 A3 A

The a.o#e cases comprise of grie#ances related to salar% pa%ment& reco#eries of dues& increment& 7or3ing conditions& lea#e& allotment of compan% accommodation& medical facilities& non?e0tension of .enefits under rules& transfer& promotion& and li3e issues. NTPC la%s great stress on )mplo%ees Participation in Management <)PM=. It is a part of our )mplo%ee Relations strateg% and is considered essential for industrial peace and harmon%. NTPC has #arious participator% forums in 7hich Knion?Management representation occurs at Knit& Regional and Corporate le#el. )mplo%ee Relations cell at Corporate and Knits is responsi.le for o#erseeing the la.or?management relationship. The >oint councils at the Corporate 4e#el consist ofL . )mplo%ee 7elfareN.enefits related H National Fipartite Committee <NFC=& N)BI <NTPC )0ecuti#es Bederation of India=& and (. Producti#it% related H NTPC Joint Performance Committee <NJPC=& N)BI on Producti#it%. At Pro>ect N ,tation 4e#el there are follo7ing foraL a= .= c= Plant 4e#el Councils H to discuss and decide plant le#el issues& #i5. generation& producti#it%& cost control& in#entor%& health and safet%& and issues referred .% ,hop Councils. ,hop 4e#el Councils H to discuss and decide 2epartmental le#el issues of producti#it%& @ualit% impro#ement& safet%& etc. 'ther Joint Committees of 7or3men and e0ecuti#es to deal 7ith 7or3place and to7nship aspects H Canteen Management Committee& To7nship Ad#isor% Committee& Iouse Allotment Committee& ,afet% Council& Recreation Clu.& ,ports Promotion Council& etc. These committees are empo7ered to ta3e decisions in their specified areas. All decisions regarding the management of to7nship facilities li3e canteen&
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house allotment& recreation& sports& etc. are ta3en through participati#e decision ma3ing method onl%. Regular union association and management meetings are arranged and the minutes of the meeting are 7idel% circulated. 'n an a#erage -0?-- union association meets across NTPC ta3es place e#er% month. 2edicated .ulletin .oards ha#e .een put up at units 7here decisions of these fora are displa%ed. Impro#ements in 7or3place en#ironment ha#e also come from the 7a% of suggestion schemes and Eualit% Circles. )mplo%ee in#ol#ement is also sought through creating opportunities for meaningful 7or3 li3e ECs& -, etc. NTPC does not ha#e an% pre#alence of child la.or. NTPC units are 'I,A, and ,A 8000 certified. There are no such operations in NTPC& 7hich ha#e incidents of forcedNcompulsor% la.or. 2e'elopin! a Culture "or Su**ess Sa"ety at &or8 Pla*e% ,afet% of the emplo%ees as 7ell as others associated in the .usiness is the most important concern for us. This& 7e .elie#e& is our moral as 7ell as statutor% responsi.ilit%. 'ur ,afet% Polic% clearl% commits us in this regard. NTPC recogni5es and accepts its responsi.ilit% for esta.lishing and maintaining a safe 7or3ing en#ironment for all its emplo%ees. This responsi.ilit% arises fromL Compan%6s moral responsi.ilit% to its emplo%ees to pro#ide the .est practica.le conditions of 7or3 from the point of #ie7 of health and safet%. The o.ligation to consult 7ith its staff and their representati#es to implement policies and procedures de#eloped as a result of discussions. ,tatutor% responsi.ilit% in respect of health& safet% and 7elfare of emplo%ees emanating from rele#ant legislations such as the Bactories Act& Foilers Act& etc.

In order to promptl% report all accidents and mishaps to compl% 7ith re@uirementNo.ligation under different statutes and to inform the concerned authorities 7ithin the organi5ation for 3eeping complete information of accidents for record and anal%sis& 7hich 7ill .e of help in ta3ing remedial measures for accident pre#ention in future& a s%stem is introduced for reporting of accidentsNdangerous occurrences in NTPC. !arious acti#ities .eing underta3en at Pro>ectsN,tations to maintain safet% standard and its monitoringL The protection of 7or3ers against in>ur% and disease has al7a%s .een a 3e% issue for the NTPC and 'ccupational ,afet% at 7or3place is one of the primar% concerns. Therefore& utmost importance is gi#en to pro#ide a safe 7or3ing en#ironment and create safet% a7areness among the emplo%ees. ,afe methods are practiced in all areas of 'perations and Maintenance and Construction and )rection acti#ities. ,afet% clauses in general conditions of contracts are re#ised and penalt% pro#isions for #iolation are pro#ided. Regular plant inspections are carried out at each Pro>ectN,tation.
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An e0ternal safet% audit is .eing conducted e#er% %ear .% all the Pro>ects and ,tations .% reputed agencies li3e National ,afet% Council& Regional 4a.or Institute& Central 4a.or Institute& 2isaster Management Institute& etc. The recommendations gi#en .% them are implemented at site. To ensure the .est health and safet% performance and an accident free en#ironment& all NTPC Pro>ectsN,tations ha#e o.tained the 'I,A,NI, H 800 <'ccupational Iealth G ,afet% Management ,%stems= certification. Ris3 assessment of all ha5ardous is done as re@uired under 'I,A,NI, 800 . The ris3s are re#ie7ed and updated after e#er% 3 months. A comprehensi#e safet%?training module is de#ised for emplo%ees and contract 7or3ers as per our culture. 8or3ers6 participation in ,afet% Management is promoted through ,afet% Committees& ,afet% Circles& ,afet% Tas3forces and ,afet% ,te7ards ,chemes. 2isaster Management Plans are re#ie7ed and regular moc3 drills are conducted at all the pro>ectsNstations to familiari5e the emplo%ees and to meet an% emergenc%. 8or3place monitoring and medical e0amination of the emplo%ees are .eing carried out to create safe 7or3ing conditions at 7or3 place. ,afet% 2epartments ha#e .een set up at corporate le#el and at all the pro>ectsNstations to esta.lish and maintain procedures for the identification of ha5ards& assessment of ris3s and to coordinate in implementation of necessar% control measures in pre#ention of personal in>uries& maintaining safe 7or3ing en#ironment and also fulfillment of its statutor% o.ligations. To identif% the unsafe acts and unsafe conditions& our safet% department conducts dail% site inspections. Periodical site inspections& surprise chec3s& >oint site inspections are also carried out .% safet% department. The unsafe acts and unsafe conditions found <if an%= are .rought to the notice of concerned engineer?in? charge 7ith suita.le remedial measures. A plant le#el safet% committee is set up as per pro#isions of Bactories Act 1A8 7ith e@ual participation from management and 7or3ers to re#ie7 plans and results of #arious 'I, ris3 related acti#ities. 2etailed ,afet% clauses are incorporated in the "eneral Conditions of the Contracts including penalties to ensure that contractors follo7 'ccupational ,afet% and Iealth practices. Ris3 assessment of all ha5ardous e@uipment and processes is done as re@uired under 'I,A,NI, 800 . Compulsor% ,afet% Training to all the emplo%ees including contractor 7or3ers is ensured .efore posting at 7or3place and dail% pep tal3s are gi#en at 7or3sites and s%stems are .eing monitored at regular inter#als.
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Knfortunatel%& fi#e fatal accidents ha#e occurred at NTPC ,tations during the %ear (008. These accidents ha#e ta3en place due to fall from height <'ne=& electrical flash o#er <T7o= and caught in .et7een <T7o=. )n@uir% committees constituted .% the competent authorit% in#estigate these accidents. The recommendations of the committees are circulated to all the pro>ectsNstations for ta3ing correcti#e actions. En!a!e#ent &it$ So*iety Re$abilitation and Resettle#ent 4R7R5 dispensation% As a sociall% responsi.le entit%& NTPC has .een sensiti#e to the needs and aspirations of the Pro>ect Affected Persons <PAPs=. Accordingl%& the Compan% has al7a%s tried for the .est possi.le RGR pac3age for the PAPs. In 3eeping 7ith this tradition& the RGR scheme adopted for the PAPs at NTPC9s Pa3ri Far7adih <PF= mining pro>ect in Jhar3hand is one of the .est schemes in the countr% of its 3ind and pro#ides a template for others to emulate. As per M')B Notifications related to )n#ironmental Clearance <dated (+.0 . 11A and A.01.(00*=& Pu.lic Iearing and Pu.lic Consultations are underta3en prior to the start of construction of the pro>ect. The process of Pu.lic Iearing and Pu.lic Consultations are open to general pu.lic& during 7hich the% can e0press their concerns regarding en#ironmental impacts of the pro>ect& socio?economic impacts due to ac@uisition of land and homesteads& reha.ilitation and resettlement programmes& e0pectations from the pro>ect& etc. The comments of the general pu.lic are recorded and for7arded to M')B& 7hich ta3es them into consideration 7hile according en#ironmental clearance for the pro>ect. In line 7ith the pro#isions of RGR Polic% of (00-& an audit is also no7 conducted from (00- on7ards .% an e0ternal agenc% to e#aluate pre and post ac@uisition of affected #s unaffected #illages on completion of implementation of RAP. Audit also e#aluates 7hether all acti#ities identified in the RAP ha#e .een completed satisfactoril% and issues recommendations for necessar% modificationNcorrecti#e measures& if an%& for the future pro>ect. Indi#idual PAP?7ise details are also compiled for comparison of their pre and post ac@uisition status and restoration of li#elihood. In the recent past such e#aluations ha#e .een conducted for ,imhadri and ,ipat pro>ects. Recogni5ing the importance of a sound institutional frame7or3 to achie#e the desired results& NTPC has set up dedicated RGR groups. These RGR groups operate at pro>ects& Regional Iead@uarters and the Corporate Centre. Associating people 7ith social e0pertise and philanthropic thoughts& consultants& facilitators& social scientists and N"'sNCF's& 7here#er and 7hene#er such help 7as felt necessar% ha#e also pro#ided the right s3ill mi0. Bor effecti#e participation& consultation and transparenc% 7ith the sta3eholders in its acti#ities& Pu.lic Information Centres <PICs= and !illage 2e#elopment Ad#isor% Committees <!2ACs= ha#e .een set up .% the organi5ation. The "rie#ance Redressal Mechanism for each pro>ect encourages PAPs to approach them if dissatisfied 7ith the arrangements. In an endea#or to not >ust meet its promise .ut also transcend its o7n parameters and perform .etter& inno#ati#e practices are used from time to time depending on the pro>ect. RGR acti#ities in the organi5ation endea#or to not >ust meet the formal organi5ational commitments made to the PAPs in line 7ith compan%6s RGR polic% .ut also go .e%ond them through the application of inno#ati#e practices from time to time.
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Publi* In"or#ation Centre 4PIC5% To disseminate information on the pro>ect& PICs at Corporate Centre and pro>ects house an arra% of documents such as sur#e% reports& action plans& land records& polic%& etc. The PAPs are a.le to glean information on #arious facets of the pro>ect and also su.mit an% @uer% or grie#ance. ;illa!e 2e'elop#ent Ad'isory Co##ittee 4;2AC5% !2ACs facilitate finali5ation and implementation of RAPs in a participati#e manner. The representati#es of PAPs& "ram Pradhan& Pancha%at representati#e& Floc3 2e#elopment 'fficer& other representati#es of ,tate "o#ernment NTPC and N"'sNCF's& constitute it and meet regularl% since the formulation of RAP till completion and closure of RAPs at respecti#e pro>ects. I#ple#entation Ba*ilitation and E'aluation% The implementation of RAP is facilitated and e#aluated periodicall% during the implementation of RGR plan .% Regional Iead Euarter and Corporate RGR "roup. Corporate Monitoring "roup <CM"= also 3eeps trac3 of RAP implementation progress through Pro>ect Re#ie7 Team <PRT= meetings regularl% Corporate So*ial Responsibility% 8e .elie#e that our resources and emplo%ees can profoundl% impact the 7orld around us. The spirit of #olunteerism promoted .% the Compan% has resulted in (- N"'s .eing run .% our emplo%ees for C,R acti#ities. The focus areas for NTPC9s C,R initiati#es include H <i= )mpo7ering the ph%sicall% challenged <ii= 8omen6s empo7erment& including educational facilities for girls <iii=!ocational education and training <i#= Iealth care support <#= Communit% de#elopment and infrastructure .uilding <#i= Rural electricification Most of the ,tations are located in remote Rural Areas& 7hich are socio?economicall% .ac37ard and deficient in the .asic ci#ic amenities. NTPC underta3es comprehensi#e Communit% 2e#elopment in the neigh.orhood area of operating stations under C,R?C2. The 7or3 is .eing done essentiall% in the areas of Primar% )ducation& Communit% Iealth& Fasic Infrastructure 2e#elopment& !ocational Training& etc. In addition& Eualit% Circles <ECs= ha#e .een started in neigh.orhood #illages of 0 stations. The NTPC emplo%ees participate in #arious C2 acti#ities through )mplo%ee !oluntar% 'rgani5ation for Initiati#e in Communit% )mpo7erment <)!'IC)=. In addition& the follo7ing ma>or communit% initiati#es 7ere underta3enL In the field of education& NTPC is committed to pro#ide support for setting up a technical pol%technic at Kttaranchal& at $aladungi 2istrict& Nainital. ,upport for a 8omen6s Pol%technic at "opesh7ar& 2istrict Chamoli is also pledged. 8ith a #ie7 to impro#e the emplo%a.ilit% of the #illage %outh residing in the #icinit% of NTPC ,tationsN Pro>ects and also to impro#e a#aila.ilit% of s3illed manpo7er around Pro>ects& NTPC is pro#iding sponsorship to candidates from #illages in the #icinit% of NTPC stationsN Pro>ects for ITI training at "o#ernmentN "o#ernment recogni5ed pri#ate ITIs in the trades of 7elder& fitter& instrument
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mechanic and electrician. Close to +-0 #illage %outh ha#e .een sponsored during the financial %ear. ,upport has .een e0tended .% NTPC for deli#er% #ehicles for mid?da% meal programmes for the children of "o#ernment. ,chools located in the National Capital Region through Bood Relief Boundation of I,$C'N. )mpo7erment of 7omen is a3in to empo7erment of the societ% as a 7hole as 7omen inculcate #alues and discipline in their offspring 7ho gro7 up to form the .ac3.one of the nation. ,elf?reliance and opportunities of self?emplo%ment im.i.e them 7ith confidence and ena.le them to generate additional income .esides contri.uting to domestic 7or3. In accordance& NTPC6s support has also .een e0tended for assistance in self?reliance for (00 tri.al girlsN 7omen in tri.al area of Jhamar $otra in Kdaipur 2istrict of Ra>asthan Assistance is .eing e0tended for construction of ,chool cum Multipurpose Fuilding for "irls in !illage ,haulana& 2istrict "ha5ia.ad& Kttar Pradesh through Nari Jagriti A.hi%an& Iard7ar. Assistance is committed for construction of one floor each for "irls Iostel in 2istrict 'ngole and "untur of Andhra Pradesh. In $erala& NTPC has pro#ided support to Allapu5ha medical College Iospital for one dial%sis machine. The hospital 7ill pro#ide free medical facilities to the economicall% under pri#ileged patients. In 'rissa& NTPC has e0tended support for infrastructure 7or3s li3e area lighting& 7ater treatment plant and open car par3ing in and around ,hri Jagannath Temple& Puri. Bor all?round impro#ement in communit% li#ing& at Angul 2istrict in 'rissa& assistance is committed for construction of Fuilding and Indoor Iall for 'rissa Ta.le Tennis Academ%& Angul. As a C,R initiati#e in the field of Iealth& NTPC is pro#iding support to I%dera.ad )%e Research Boundation for three speciali5ed )%e Centers at Fhu.anes7ar )%e Iospital& Fhu.anes7ar& 'rissa. The centers 7ere inaugurated on 0 'cto.er (00+& .% Ion6.le Knion Minister of Po7er. These Centers 7ill pro#ide free medical facilities to the economicall% under pri#ileged patients. NTPC has also e0tended support for pro>ect :Kddha# $%ari6 a -A?acre gro#e situated in #illage Nandgaon in Mathura district of Kttar Pradesh& in#ol#ing regeneration of the gro#e through Fra> Boundation.

NTPC also recogni5es that generation of po7er is 3e% to de#elopment& particularl% in the remote and far?flung places 7here the po7er is either not a#aila.le or is in acute shortage. The 2ecentrali5ed 2istri.uted "eneration and ,uppl% <22",= of po7er is a plausi.le solution. Knder its C2 initiati#es& NTPC is also supporting the efforts of 2istri.uted "eneration <2"= for preparation of Beasi.ilit% Reports& pro>ect insurance and
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.ridging the funding gap .et7een cost of the pro>ects and a#aila.le funds& through NTPC Boundation. Anti ) Corruption #easures% The Compan% has ta3en pre#enti#e measures to cur. the corruption le#elsL i= ii= iii= !erification of complaints recei#ed from #erifia.le sources Technical )0amination of randoml% selected #illages ,urprise chec3s of a fe7 ongoing 7or3s .% site !igilance )0ecuti#e in association 7ith site BEA& etc.

'ne of the important functions of these e0ercises is to assess the need for s%stem impro#ement and implementing them. Plugging the s%stem loopholes and gaps is the most effecti#e tool for cur.ing corruption at an% and e#er% le#el. )mplo%ees are trained in organi5ation6s anti?corruption policies and procedures and the details of the trainings imparted are sho7n .elo7L ,NTH @,RCSH,PS C,N2+CTE2 Apr?0+ ( Ma%?0+ Jun?0+ 3 Jul?0+ Aug?0+ ,ep?0+ ( 'ct?0+ No#?0+ 8 2ec?0+ ( Jan?08 + Be.?08 ( Mar?08 * T,TAD G0 N,1 ,B PARTICIPANTS +( 30 0 33 +0 1* (8 - 0 -( (++ A0 A -H62 PRE;ENTI;E CIRC+DARS A 3 3 3 0 3 3 A 0 A ( 6G

Ma>or Penalt% Proceedings during the periodL S1 No1 ( 3 A 2es*ription )0onerated Closed Remo#al from ,er#ice 2ismissal Reduction to lo7er postNran3 Total 2007-08 00( 0 0 08 +

Minor Penalt% Proceedings during the periodL

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S1 No1 ( 3 A

2es*ription )0onerated Closed Censure 'ther than Censure Total

2007-08 00( ( * 3-

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Addendu# ) I National Capital Re!ion Coal Based Stations i= Fadarpur Thermal Po7er ,tation? Fadarpur& Ne7 2elhi ii= National Capital Thermal Po7er Pro>ect? 2istt. "autum Fudh Nagar& Kttar Pradesh Gas Power Stations i= Anta "as Po7er Pro>ect H 2istt. Faran& Ra>asthan ii= Aurai%a "as Po7er Pro>ect H 2istt. Aurai%a& Kttar Pradesh iii= Barida.ad "as Po7er Pro>ect H 2istt. Barida.ad& Iar%ana i#= National Capital Po7er Pro>ect? 2istt. "autum Fudh Nagar& Kttar Pradesh Eastern Re!ion Coal Based Stations i= Bara33a ,uper Thermal Po7er ,tation H 2istt. Murshida.ad& 8est Fengal ii= $ahalgaon ,uper Thermal Po7er Pro>ect? 2istt. Fhagalpur& Fihar iii= Talcher ,uper Thermal Po7er ,tation? 2istt. Angul& 'rissa i#= Talcher Thermal Po7er ,tation? 2istt. Angul& 'rissa Nort$ern Re!ion Coal Based Stations i= Bero5e "andhi Knchahar Thermal Po7er ,tation H 2istt. Rae.areli& Kttar Pradesh ii= Rihand ,uper Thermal Po7er Pro>ect H 2istt. ,one.hadra& Kttar Pradesh iii= ,ingrauli ,uper Thermal Po7er ,tation? 2istt. ,one.hadra& Kttar Pradesh i#= Tanda Thermal Po7er ,tation? 2istt. Am.ed3ar Nagar& Kttar Pradesh Sout$ern Re!ion Coal Based Stations i= Ramagundam ,uper Thermal Po7er ,tation? 2istt. $arimnagar& Andhra Pradesh ii= ,imhadri ,uper Thermal Po7er Pro>ect? !isha3apatnam& Andhra Pradesh Gas Power Stations Ra>i# "andhi Com.ined C%cle Po7er Pro>ect H 2istt. Alappu5ha& $erala @estern Re!ion Coal Based Stations i= $or.a ,uper Thermal Po7er ,tation? 2istt. $or.a& Chhattisgarh ii= ,ipat ,uper Thermal Po7er Pro>ect?2istt. Filaspur& Chattisgarh iii= !indh%achal ,uper Thermal Po7er ,tation? 2istt. ,idhi Madh%a Pradesh Gas Power Stations i= Jhanor "andhar "as Po7er Pro>ect? 2istt. Fharuch& "u>arat ii= $a7as "as Po7er Pro>ect? Adit%a Nagar& ,urat& "u>arat
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Addendu# ) II G1-6 The list of mem.ership in associations andNor nationalNinternational ad#ocac% organi5ations isL ,l. No. . (. Name Council of Po7er Ktilities ,l. No. 8. Name 8orld )nerg% Council H Indian Mem.er Committee Institute of Internal Auditors The Indian Iotels Co. 4td. <Ta> Mahal Iotel= 8orld )conomic Borum National Accreditation Foard for Testing G Cali.ration "lo.al Compact ,ociet% All India Association of Industries Committee for Int. "eos%nthetics ,ociet% Po7er IR?Borum 'PC?Boundation "A2, ,er#ice All India Pu.lic ,ector ,ports Foard International Mar3et Assessment IndiaHCB' Indian Nuclear ,ociet% ,olar )nerg% ,ociet% of India ,outh Asia Borum for Infrastructure Regulations

3. A. -. *. +. 8. 1. 0. . (. 3. A. -. *. +.

The Committee for 1. International Conference on 4arge Iigh !oltage )lectric ,%stem All India Management (0. Association 2elhi Producti#it% Council ( . Fritish ,tandards Institution ((. Indian "eotechnical ,ociet% National ,afet% Council& K,A Bederation of Indian Cham.ers of Commerce G Industr% Central Foard of Irrigation and Po7er Fritish ,afet% Council Centre for Pu.lic ,ector ,tudies National ,afet% Council ,tanding Conference of Pu.lic )nterprises ,iri Bort ,ports Comple0 Institution of fire )ngineers <India= TI, International Cham.er of Commerce (3. (A. (-. (*. (+. (8. (1. 30. 3 . 3(. 33.

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A>>RE;IATI,NS
APC AP2RP CF' CC, CC"T C2 C2M CII CM" C'( CPCF CenP))P C,4B C,R 22", 2" 2MRC 2P) )IA )2C )PA ),P )!'IC) B"2 BICCI BI BII "AAP "AI4 "C "C, "I" Au0iliar% Po7er Consumption Accelerated Po7er 2e#elopment and Reform Program Communit% Fased 'rgani5ation Car.on Capture and ,torage Com.ined C%cle "as Tur.ines Communit% 2e#elopment Clean 2e#elopment Mechanism Confederation of Indian Industr% Corporate Monitoring "roup Car.on 2io0ide Central Pollution Control Foard Center for Po7er )fficienc% and )n#ironmental Protection Car.on ,e@uestration 4eadership Borum Corporate ,ocial Responsi.ilit% 2ecentrali5ed 2istri.uted "eneration and ,uppl% 2istri.uted "eneration 2elhi Metro Rail Construction 2epartment of Pu.lic )nterprises )n#ironment Impact Assessment )mplo%ee 2e#elopment Centre )n#ironmental Protection Agenc% )lectrostatic Precipitator )mplo%ee !oluntar% 'rgani5ation for unit% )mpo7erment Bocus "roup 2iscussion Bederation of Indian Cham.ers of Commerce and Industr% Binancial Institution Boreign Institutional In#estor "enerall% Accepted Accounting Principles "as Authorit% of India 4td. "lo.al Compact "lo.al Compact ,ociet% "reen Iouse "as
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"m "oI "RI "8 ICBC I2 I)A I"CC IPCC IP' I,' ITI IKCN $7hr DE2 4B 4N" MM,CM2 MoK M')B M8 NAPCC N)TRA N"' N'( NRI NRRP NRRP '2, 'I,A, 'GM PAP PIC

gram "o#ernment of India "lo.al Reporting Initiati#es "iga7att I%dro chlorofluorocar.on Induced 2raft International )nerg% Agenc% Integrated Coal "asification Com.ined C%cle Intergo#ernmental Panel on Climate Change Initial Pu.lic 'ffer International 'rgani5ation for ,tandardi5ation Industrial Training Institute International Knion for Conser#ation of Nature Cilo @att Hour Di!$t E#ittin! 2iode 4oading Bactor 4i@uefied Natural "as Million Metric ,tandard Cu.ic Meter per 2a% Memorandum of Knderstanding Ministr% of )n#ironment and Borests Mega7att National Action Plan on Climate Change NTPC )nerg% Technologies G Research Alliance Non?"o#ernmental 'rgani5ation Nitrogen '0ide Non Resident Indian National Polic% on Reha.ilitation and Resettlement National Reha.ilitation and Resettlement Polic% '5one 2epleting ,u.stances 'ccupational Iealth and ,afet% Ad#isor% ,er#ices 'perations and Maintenance Pro>ect Affected Persons Pu.lic Information Centre
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PI) PRA PRT P,K EC RAP RG2 R"CPP RI,C R4ANRGM R4N" RGM RGR R,PM ,A ,C'P) ,)F ,), ,'( ,PCF ,PM KC4 KNBCC K,AI2 K,)PA !2AC

Partnership in )0cellence Participati#e Rural Appraisal Pro>ect Re#ie7 Team Pu.lic ,ector Knderta3ing Eualit% Circle Reha.ilitation Action Plan Research and 2e#elopment Ra>i# "andhi Com.ined C%cle Po7er Pro>ect Ris3?Integrated ,oft7are for Cleanups Residual 4ife AssessmentNReno#ation G Moderni5ation Re?4i@uefied Natural "as Reno#ation and Moderni5ation Reha.ilitation and Resettlement Respira.le ,uspended Particulate Matter ,ocial Accounta.ilit% ,tanding Committee of Pu.lic )nterprises ,tate )lectricit% Foard ,ocio )conomic ,ur#e%s ,ulfur 2io0ide ,tate Pollution Control Foard ,uspended Particulate Matter Kni#ersit% College 4ondon Knited Nations Brame7or3 Con#ention on Climate Change Knited ,tates Agenc% for International 2e#elopment Knited ,tates )n#ironmental Protection Agenc% !illage 2e#elopment Ad#isor% Committee

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(RI IN2ICAT,R IN2EM - S+STAINA>IDITI REP,RT 2007-08 S N, -10 210 610 G10 2ESCRIPTI,N Strate!y and Analysis . ,tatement of C)' .( 2escription of $e% Impacts& ris3s and opportunities ,r!aniFation Pro"ile Report Para#eters (o'ernan*e. Co##it#ent and En!a!e#ent PA(E N,1 3?+ ((?(0? ( 8?1 3?(

STAN2AR2 2ISCD,S+RES % PERB,R ANCE IN2ICAT,RS S1No1 Ind N )N )N ( )N 3 )N A )N 8 )N Indi*ator En'iron#ent Materials used .% 7eight or #olume Percentage of materials used that are rec%cled input materials 2irect energ% consumption .% primar% energ% source. Indirect energ% consumption .% primar% source Total 7ater 7ithdra7al .% source 4ocation and si5e of land o7ned& leased& managed in& or ad>acent to& protected areas and areas of high .iodi#ersit% #alue outside protected areas. 2escription of significant impacts of acti#ities& products& and ser#ices on .iodi#ersit% in protected areas and areas of high .iodi#ersit% #alue outside protected areas Total direct and indirect greenhouse gas emissions .% 7eight 'ther rele#ant indirect greenhouse gas emissions .% 7eight )missions of o5one?depleting su.stances .% 7eight. N'(& ,'(& and other significant air emissions .% t%pe and 7eight Total 7ater discharge .% @ualit% and destination Total 7eight of 7aste .% t%pe and disposal method Total num.er and #olume of significant spills Initiati#es to mitigate en#ironmental impacts of products and ser#ices& and e0tent of impact mitigation.
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In"or#ation Sour*e (1& 30 30 30 30& 3 & 3A (8 (+

( 3 A *

)N (

(8

8 1 0

)N * )N + )N 1 )N (0 ( 3 A )N ( )N (( )N (3 )N (*

3 333 (8 3( 3( 3*

* +

)N (+ )N (8

Percentage of products sold and their pac3aging materials that are reclaimed .% categor% Monetar% #alue of significant fines and total num.er of non?monetar% sanctions for non? compliance 7ith en#ironmental la7s and regulations.

3* 3*

STAN2AR2 2ISCD,S+RES % PERB,R ANCE IN2ICAT,RS 8 )C E*ono#i* 2irect economic #alue generated and distri.uted& including re#enues& operating costs& emplo%ee compensation& donations and other communit% in#estments& retained earnings& and pa%ments to capital pro#iders and go#ernments. Binancial implications and other ris3s and opportunities for the organi5ation6s acti#ities due to climate change Co#erage of the organi5ation6s defined .enefit plan o.ligations ,ignificant financial assistance recei#ed from go#ernment Polic%& practices& and proportion of spending on locall%? .ased suppliers at significant locations of operation. Procedures for local hiring and proportion of senior management hired from the local communit% at significant locations of operation 2e#elopment and impact of infrastructure in#estments and ser#ices pro#ided primaril% for pu.lic .enefit through commercial& in?3ind& or pro .ono engagement. (*& (+

1 (0 ( (( (3 (A

)C ( )C 3 )C A )C * )C + )C 8

33 38& 31 (+ (+ (+ (+

STAN2AR2 2ISCD,S+RES% PERB,R ANCE IN2ICAT,RS (,' So*iety Nature& scope& and effecti#eness of an% programs and practices that assess and manage the impacts of operations on communities& including entering& operating& and e0iting. Percentage and total num.er of .usiness units anal%5ed for ris3s related to corruption Percentage of emplo%ees trained in organi5ation6s anti? corruption policies and procedures Actions ta3en in response to incidents of corruption Pu.lic polic% positions and participation in pu.lic polic% de#elopment and lo..%ing. Monetar% #alue of significant fines and total num.er of non?monetar% sanctions for non?compliance 7ith la7s and regulations
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A-?A8

(* (+ (8 (1 30

,' ( ,' 3 ,' A ,' ,' 8

A8 A8 A1 A1 A1

STAN2AR2 2ISCD,S+RES % PERB,R ANCE IN2ICAT,RS 3 PR Produ*t Responsibility 4ife c%cle stages in 7hich health and safet% impacts of products and ser#ices are assessed for impro#ement& and percentage of significant products and ser#ices categories su.>ect to such procedures. T%pe of product and ser#ice information re@uired .% procedures& and percentage of significant products and ser#ices su.>ect to such information re@uirements Programs for adherence to la7s& standards& and #oluntar% codes related to mar3eting communications& including ad#ertising& promotion& and sponsorship. Monetar% #alue of significant fines for non?compliance 7ith la7s and regulations concerning the pro#ision and use of products and ser#ices STAN2AR2 2ISCD,S+RES % PERB,R ANCE IN2ICAT,RS Dabour Pra*ti*es Total 7or3force .% emplo%ment t%pe& emplo%ment contract& and region Total no. and rate of emplo%ee turno#er .% age group& gender and region. Percentage of emplo%ees co#ered .% collecti#e .argaining agreements Minimum notice period <s= regarding significant operational changes& including 7hether it is specified in collecti#e agreements. Rates of in>ur%& occupational diseases& lost da%s& and a.senteeism& and total num.er of 7or3?related fatalities .% region. )ducation& training& counseling& pre#ention& and ris3? control programs in place to assist 7or3force mem.ers& their families& or communit% mem.ers regarding serious diseases. A#erage hours of training per %ear per emplo%ee .% emplo%ee categor%. Composition of go#ernance .odies and .rea3do7n of emplo%ees per categor% according to gender& age group& minorit% group mem.ership& and other indicators of di#ersit% Ratio of .asic salar% of men to 7omen .% emplo%ee categor% 3*

3( 33 3A

PR 3 PR * PR 1

3* 3* 3*

33* 3+ 38 31 A0

4A 4A ( 4A A 4A 4A + 4A 8

3*& 3+ 3+& 38 31 31 A3?AA0& A

A A(

4A 0 4A 3

A A

A3

4A A

A(

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STAN2AR2 2ISCD,S+RES % PERB,R ANCE IN2ICAT,RS AA AA* A+ IR IR ( IR A IR Hu#an Ri!$ts Percentage and total num.er of significant in#estment agreements that include human rights clauses or that ha#e undergone human rights screening. Percentage of significant suppliers and contractors that ha#e undergone screening on human rights and actions ta3en Total num.er of incidents of discrimination and actions ta3en. 'perations identified in 7hich the right to e0ercise freedom of association and collecti#e .argaining ma% .e at significant ris3& and actions ta3en to support these rights. 'perations identified as ha#ing significant ris3 for incidents of child la.or& and measures ta3en to contri.ute to the elimination of child la.or. 'perations identified as ha#ing significant ris3 for incidents of forced or compulsor% la.or& and measures ta3en to contri.ute to the elimination of forced or compulsor% la.or. A( A( A( A(

A8 A1

IR * IR +

A( A(

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