Annual Report07 08

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Nuclear Power Corporation of India Limited

(A Government of India Enterprise)
REGISTERED OFFICE
16th Floor, Center I, World Trade Centre NUCLEAR POWER CORPORATION OF INDIA LIMITED
Cuffe Parade, Colaba, Mumbai - 400 005
www.npcil.nic.in 21st ANNUAL REPORT 2007-08
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NUCLEAR POWER CORPORATION OF INDIA LIMITED
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We Generate Nuclear Power,

Creating History with Futuristic value,
towards the Nation’s long-term Energy Security.
Annual Report 2007-08 01

Contents
Corporate Information ______________________________________03

Pride of the Nation _________________________________________04
Recognition ________________________________________________06
Mission and Objectives ______________________________________07
Operating and Financial Highlights____________________________08
Board of Directors __________________________________________10
Chairman's Statement_______________________________________14
The Present Nuclear Power Scenario __________________________18
Indigenisation ______________________________________________19
Operations ________________________________________________20
Life Extension, Modernisation & Advisory Support_______________21
Partnerships and Diversification_______________________________22
Knowledge Management ____________________________________23
The Human Capital _________________________________________24
Corporate Social Responsibility _______________________________26
Environment Stewardship____________________________________28
Project Management ________________________________________30
Convention on Nuclear Safety________________________________32
Directors' Report ___________________________________________33
Annexure 'A' to the Directors' Report __________________________43
Annexure 'B' Management Discussion & Analysis _______________45
Annexure 'C' Corporate Governance___________________________53
Management Replies to the Observations made in
the Statutory Auditors' Report _______________________________62
Auditors' Report ____________________________________________64
Comments of the Comptroller and Auditor General of India ______68
Financials__________________________________________________69
02 Nuclear Power Corporation of India Limited

Corporate Information
REGISTERED OFFICE
16th Floor, Centre-I, World Trade Centre
Cuffe Parade, Colaba, Mumbai-400 005.
CORPORATE OFFICE
Nabhikiya Urja Bhavan, Anushaktinagar
Mumbai-400 094
STATUTORY AUDITORS
M/s. Khimji Kunverji & Co.
Chartered Accountants
Suite No. 52, Bombay Mutual Bldg.
Sir P.M. Road, Fort, Mumbai-400 001
BRANCH AUDITORS
M/s. P. K. K. G. Balasubramaniam & Associates
Flat No. 2 & 3, Door No. 68/38,
Brindavan Street, West Mambalam
Chennai-600 033
M/s. Uberoi Sood & Kapoor

606, Vishal Bhawan,
95, Nehru Place
New Delhi-110 019
M/s. A. Bafna & Co.

K-2, Keshav Path, Ahinsa Circle, C-Scheme
Jaipur-302 001
MAIN BANKER
State Bank of India
Overseas Branch, World Trade Centre
Cuffe Parade, Mumbai-400 005

Pride of the Nation
“Tarapur is where India's quest for developing nuclear

energy began in 1969. I would like to compliment the
NPCIL and all those in the DAE, Indian industry, our R&D
facilities and Universities who have made the development
of TAPS-3&4 possible. It is truly an outstanding effort,
achieved in the face of adverse circumstances and
challenges. This is a moment of pride for all Indians.
The development of our indigenous capability in the area
of nuclear power generation demonstrates that where
there is will, there is a way.”
Dr. Manmohan Singh
Honourable Prime Minister

In Operation - 4120 MW
Under Construction - 2660 MW
Future Projects
NARORA
2X220 MW
RAWATBHATA
1X100 MW
1X200 MW
2X220 MW
2X220 MW
2X700 MW
KAKRAPAR
2X220 MW
2X700MW
TARAPUR
2X160 MW (BWR)
2X540 MW
JAITAPUR
KAIGA
3X220 MW
1X220 MW
KALPAKKAM
2X220 MW
BWR - Boiling Water Reactor

LWR - Light Water Reactor
KUDANKULAM
Unless otherwise specified the type of reactor is PHWR
2X1000 MW (LWR)
Map for representation purpose only, not according to scale.
TARAPUR ATOMIC POWER STATION-3 & 4

Dedication to Nation by Honourable Prime Minister
st
on 31 August 2007

Recognition
AERB AWARDS
TAPS-1&2 received Fire Safety Award for the year 2006.
TAPS-3&4 was the winner of fire safety award for the year 2006 in
category-II, consecutively 2nd time.
NAPS received Industrial Safety Award for the year 2006.
KAPS won Annual Green Site Award (Category-B) for the year 2006.
KGS-1&2 won Industrial Safety Award for the year 2007.
SAFETY AND OTHER AWARDS
National Safety Council awarded a plaque to TAPS-1&2 for “Factories

Working over One Million Man-Hours under Scheme-1 - Lowest Accident
Frequency Rate for the year 2006.
The presentation of TAPS-3&4 in the National level convention for

Quality Circles organised by “Quality Circle Forum of India” was
adjudged “Excellent”.
“Suraksha Puraskar” of NSCI Safety Award 2006 to NAPS.

WANO Nuclear Excellence Award-2007 (Kaiga-1&2) during “Golden Peacock” Award for Environment Excellence 2007 conferred to
WANO BGM-2007 at Chicago, USA on 25-9-2007
NAPS by World Environment Foundation (WEF) in association with
Institute of Directors (IOD), New Delhi.
“Safety Innovation Award 2007” conferred to NAPS by Safety & Qualilty

Forum, Institution of Engineers (India).
NAPS was winner of “National Safety Award 2006” Under Scheme No-1-
(Lowest Average Frequency Rate), conferred by DGFASLI, Mumbai.
NAPS was runner-up for “National Safety Award 2006” Under Scheme
No-II (Accident free Year) conferred by DGFASLI, Mumbai.
“Gujarat State Safety Award-2006” and 'Certificate of honor for lowest

disabling injury index' for KAPS.
KAPS was selected as runner-up of National Safety award (NSA-2006,

Scheme-II) by Ministry of Labour and Employment, Government of India.
KAPS also won “Shreshtha Suraksha Puraskar Award (Category-II) for the
year 2006, from National Safety Council of India, Mumbai for the
assessment years 2003 to 2005.
KGS won the Golden Peacock Award from World Environmental

foundation.

Mission and Objectives
To develop nuclear power technology and to

produce Nuclear Power as a safe, environmentally
benign and economically viable source of
electrical energy to meet the increasing electricity
needs of the country.
To maximise the power generation and profitability from nuclear

power stations with a motto of “safety first and production next.” Flagging by Chairman AEC for Caisson towing
for Breakwater dyke - KKNPP
To increase nuclear power generation capacity in the country,

consistent with available resources in a safe, economical and rapid
manner in keeping with the growth of energy demand in the country.
To continue and strengthen Quality Assurance activities relating to

nuclear power programme within the organisation and those
associated with it.
To develop personnel at all levels through an appropriate Human

Resource Development (HRD) programme in the organization with
a view to further improve their skills and performance consistent
with the high technology.
Energy Security-Chairman, AEC explains to the
To continue and strengthen the environmental protection measures National Security Advisor.
relating to nuclear power generation.
To continue and strengthen the public awareness programmes for

enhancing and improving the public perception of Nuclear Power in
the country.
To share appropriate technological skills and expertise at national

and international levels.
To bring about modernisation and technological innovation in

activities.
To coordinate and endeavour to keep the sustained association with

other units of the DAE. Board of Directors visit to KKNPP

Operating and Financial Highlights
OUR INTRINSIC STRENGTHS (As on 31st March 2008) NPCIL, a Public Sector
(Rs. in crores)
Enterprise of the Department
of Atomic Energy (DAE) is
25,067 entrusted with the task of
Total Fixed Assets
nuclear power generation by
the Government of India.
34,269 Providing end-to-end solutions
for nuclear power production,
Total Assets
NPCIL is making efforts in
forging ahead and keeping
10,145 itself ready for execution of a
Share Capital much larger programme of this
clean, green and safe energy
option. Its portfolio is also
10,595 inclusive of wind power. It
Reserves meets a part of the entire
electricity demand of India at
competitive prices. Currently,
20,740 NPCIL is contributing around
Networth 3% to the electricity generated
in India.
NPCIL CAPACITY ADDITION FIXED ASSETS (Gross Block) YEAR WISE ELECTRICITY GENERATION
(in MWe) (Rs. in crores) (in MUs)
3260
3800
4020
12,662
15,060
16930
17136
18633
16,595
2005-06 2006-07 2007-08 2005-06 2006-07 2007-08 2005-06 2006-07 2007-08

CAPITAL EXPENDITURE
(Rs. in crores) (Rs. in crores)
4,266 1,203 ANCILLARY SCHEMES

8.62%
MODIFICATIONS IN
OPERATING STATIONS
6.00%
Income Profit NEW PROJECTS

0.55% KUDANKULAM 1&2
61.51%
KAIGA 3-4
11.56%
RAPP 5-6
11.76%
THE FINANCIAL TRAJECTORY
Concreting Growth
§ Fixed assets grow by 10.2%, from Rs.15,060 crores to
Rs. 16,595 crores DISTRIBUTION OF REVENUE
§ Reserves & surplus grow by Rs.750 crores, from
Rs.11,291 crores to Rs. 12,041 crores HEAVY WATER
FUEL CHARGES
14.71% CHARGES
11.48%
PROFIT FOR THE YEAR
Sustaining Strengths 28.20%
REPAIRS &
§ Revenue realization maintained at 99.9% DEPRECIATION MAINTENANCE
17.20% 6.17%
§ Dividend payment maintained at 30% of net profit
OTHER
§ A competitive average tariff of Rs. 2.28 per unit OPERATING
INTEREST EXPENSES
§ No Budgetary support from the Government of India 10.67% 11.57%
SOURCES OF FUNDS ASSETS
Net Current
Domestic Borrowings Asset
20% Equity Stations
20%
30% 33%
Russian Power
Credit Bonds
16% 7%
Reserves & Surplus Projects

34% 40%

Board of Directors
SHREYANS KUMAR JAIN S.A. BHARDWAJ J.K. GHAI G. NAGESWARA RAO

Chairman & Managing Director Director, Technical Director, Finance Director, Operations
Dr. S.K. Jain, Distinguished Scientist of the DAE, Shri S.A.Bhardwaj, a Shri J.K. Ghai, a science Shri Nageswara Rao, an
is a Mechanical Engineer from Jiwaji University, Mechanical Engineering graduate from Mumbai Electrical Engineering graduate
Gwalior. After completing his post graduate graduate from Delhi University with dual post from Jawaharlal Nehru
qualification in Nuclear Engineering from the University and M.Tech in graduation in Business Technological University,
BARC Training School in the year 1969 he Design of Mechanical Administration (Finance) Andhra Pradesh joined the 19th
joined the erstwhile Power Projects Equipment, from IIT, Delhi, and Political Science began batch of the BARC Training
Engineering Division, responsible for setting up obtained training in Nuclear his career with the P & T School in 1975. He received the
and operating the nuclear power stations. He Engineering from BARC Accounts and Finance Homi Bhabha Award on
became a member of the AECL team, which Training School and joined Service of the Civil Services completion of his training.
successfully commissioned the first Heavy the PPED in 1971. In his in 1980, after a short spell Thereafter, in 1976, he joined
Water Reactor in Rajasthan. His subsequent career since then, he has of teaching at the Degree the Operation & Maintenance
contribution in the design and construction of been associated with nuclear level. In the tele- (O&M) group at MAPS. He
India's first Standard PHWRs at Narora brought fuel design and engineering communication sector, he worked on the commissioning of
India at par with the other advanced countries. activities, reactor core design, has headed the finance the fuel handling system of both
Dr.Jain was a key member of the team which shut down system design, in- units of DoT , MTNL and RAPS-2 and MAPS. In 1987, he
negotiated the contract with the Russians core fuel management, BSNL in Gujarat, Rajasthan was appointed as the Senior
and later headed the LWR Directorate during reactor physics, reactor and Maharashtra Maintenance Engineer for the
the initial launching phase of 2X1000 MWe components and nuclear respectively. He is credited fuel handling unit at MAPS. In
VVER units at Kudankulam. safety. His contributions in with several large scale 1997, he was promoted as the
He assumed the charge of CMD, NPCIL on these areas are well known in initiatives, such as the Maintenance Superintendent,
3rd January 2004 and has steered the DAE. With this background, introduction of Corporate KAPS where he improved the
company through its most eventful years. he was given the task of total Accounting System at productivity of the manpower as
During this period the company rose to engineering activities of MTNL and BSNL and the well as equipment. In 2000, he
unprecedented heights and came to be PHWRs since February 2002. computerization of was elevated to the post of the
known as one of the most successful He is a Distinguished Customer Billing and Chief Superintendent, KAPS and
companies in the country. Scientist of Department of Accounting at MTNL, worked towards making it as the
Dr. Jain was conferred an honorary Doctorate Atomic Energy. At present he Mumbai. He brought in model NPCIL station by
by the University of Mangalore for his is Director (Technical) and several customer friendly sustaining high performance.
outstanding contribution in the field of nuclear encompassing design, methods of bill payment
construction, procurement like the Internet Banking In April, 2002, NPCIL appointed
technology. Besides, he is also a recipient of him as the Station Director,
Indian Nuclear Society Award for the year activities of PHWRs and new and ECS. At BSNL, he
LWR projects, etc. He is a introduced competitive KGS. With his managerial,
2005 in recognition of meritorious scientific technical & motivational skills,
and engineering achievements. The Indian member of the AERB tariffs and cash
Advisory Committee on management systems. he brought about both technical
National Academy of Engineers recognized his and organizational improvement
valuable contribution with its esteemed Design Codes and Guides and He has been professionally
has participated in the trained in Japan and USA. at the station. Due to his efforts,
Fellowship. Dr. Jain has been a part of many KGS-2 recorded a run of 529
national and international missions for the preparation of a number of He has been a visiting
Safety Codes and Guides for faculty to institutes of days, the longest achieved by an
development of the nuclear industry. He NPCIL unit, so far.
became a figure of international fame when he the AERB. Management Studies for
was elected the President of the World teaching Financial Recognising his outstanding
For his services, he has been Management.
Association for Nuclear Operators in 2007, for awarded the NPCIL Unit contributions in safety in
his contribution to the world nuclear Recognition Award for With his vast experience operation of nuclear power
community. In June this year the President of Outstanding Contribution and know-how of the plants, he was honoured with
India conferred on him a special citation for his and the Indian Nuclear financial sector, he has been the WANO Nuclear Excellence
outstanding contribution to the society. Society Award 2001. He is a Board member of NPCIL Award during the Biennial
As the Chairperson of the Indian Atomic General Meeting of WANO held
Fellow of National Academy since 16th Jan. 2006.
Industrial Forum, he has been successful in of Engineers and at Chicago in September 2007.
getting the best out of the industry and also Chairman,Nuclear Fuel
gainfully showcase the capabilities to the He is on the Board of NPCIL
Complex Board. since 6th August 2007.
world. He is also member of the Advisory
Committee for Project Safety Review. The He is on the Board of NPCIL
Department of Atomic Energy entrusted Dr. since 3rd Feb. 2005.
Jain the additional charge of CMD of BHAVINI
which was set up for construction and
operation of India's first Fast Breeder Reactor.

V.P. RAJA V.R. SADASIVAM SRIKUMAR BANERJEE RAKESH NATH
Director Director Director Director
Shri V.P. Raja is an M.Phil in Shri V.R. Sadasivam, a Dr. S. Banerjee obtained his The entire career of Shri Rakesh
Social Science and a double commerce graduate from B.Tech in Metallurgical Nath spanning over 3 decades
post-graduate in Physics from Loyola College, Chennai, joined Engineering with first class has been shaped up in the
Delhi University and Columbia a nationalized bank, as an honours from IIT, Kharagpur and various organisations of the
University(U.S.A.). He has a officer and worked there for 6 was trained at the BARC Training power sector in India such as
post-graduate degree in Rural years. He later joined Indian School before he joined BARC. CEA, NTPC, electricity boards of
Development Planning from the Defence Accounts Service and He was awarded the Ph.D in the Northern and the Western
University of East Anglia (U.K.). was posted to Meerut, New metallurgical engineering by IIT, regions, Bhakra Beas
As an IAS officer of the Delhi, Madras, Bangalore and Kharagpur on the basis of the Management Board, Power
Maharashtra cadre, he has Mumbai. He has held the post work carried out by him in the Trading Corpn. and so on. He
worked in various assignments of the Controller of Defence first few years of his career at has served as the Chairman of
at the District, State and Centre. Accounts (R&D) at Bangalore. BARC. the Bhakra Beas Management
At the State level, besides In this capacity, he was Board , the largest hydro
holding positions in Finance and responsible for the payment, He is one of the leading experts complex in the Northern region.
Urban Development, he has accounting, audit and financial in materials science and He turned the Power Trading
served as Secretary in the advisory services to the DRDO technology in the country and Corporation into a profit
Departments of Trade & labs. He has a long association has made outstanding earning Company. He has
Commerce, Housing & Special with the DAE and its units. contribution to many materials visited Pakistan and Nepal to
Assistance, Higher & Technical From 1994 to 1995, he has related areas, basic as well as promote power trade. He has
Education and Water Supply and worked with the IGCAR, and application oriented. His been a part of the Committees
Sanitation. While on deputation with BARC from 1998 to 2002. comprehensive work on the appointed by the Government
to the Government of India, he In 2007, he joined the DAE on physical metallurgy of zirconium of India to inquire into grid
has held responsible posts in the the post of the Joint Secretary alloys is widely quoted in failures and suggest remedial
Ministry of Human Resources (Finance). scientific literature. His work has measures. He was Convener of
Development, Planning also provided a basis for Working Groups set up by the
Commission and the Ministry of He is on the Board of NPCIL developing a novel fabrication Government of India to prepare
Defence. He has authored since 18th July 2007. schedule for the pressure tubes guidelines for inter-regional
several books and publications used in the Indian PHWRs. power exchange. Shri Rakesh
on Zero Base Budgeting, State He has held some visiting Nath attended courses in power
Finances and Economic Reforms. positions overseas, such as the system operation & control in
He has made important University of Sussex, Brighton, UK in 1984 and in Sweden in
contributions to administrative UK, Max-Planck Institut fuer 1993. Shri Rakesh Nath was
reforms in Maharashtra while Metallforschung- Institut fuer appointed as Chairperson, CEA
working as Collector of Satara Physik, Stuttgart and in October 2005. He is also an
and as Transport Commissioner. Forschungszeutrum Juelich, ex-officio member of CERC.
In recognition of his outstanding Germany (as Alexander von
contribution to Public He was appointed on the Board
Humboldt Foundation Fellow
Administration, Shri Raja was and Awardee), University of of NPCIL on 3rd Nov. 2005.
awarded the P.J. Chinmulgund Cincinnati and the Ohio State
Distinguished Government University, USA (as Visiting
Administration Award. Since the Faculty).
year 2000, he has been with the
Department of Atomic Energy as In recognition of his contribution
Joint Secretary, Additional to research, he has received
Secretary and is currently many awards. Notable amongst
Principal Adviser. Since 8th June them are National Metallurgists'
2007, he is on the Board of Day Award (1981), Shanti
NPCIL. Swarup Bhatnagar Prize in Engg.
Sciences (1989), Indian Nuclear
Society (INS) Award (2003) and
Padma Shri (2005). He is on the
Board of NPCIL since 8th Oct.
2004.

Board of Directors
H.L. BAJAJ SURYA P. SETHI ANAND MOHAN CHANDAN ROY

Director Director Director Director
Shri H.L. Bajaj has been Technical Shri S.P. Sethi completed his Shri Anand Mohan, a graduate in Shri Chandan Roy, a graduate in
Member in the Appellate engineering and business Civil Engineering from Delhi Mechanical Engineering is a
Tribunal for Electricity since May management degrees in 1974. University and an M.Tech in power engineer of repute with
2005 to May 2008. Prior to He began his career in the Tata Systems & Management from rich and varied experience of
joining the Tribunal, he was Administrative Services. After IIT, New Delhi began his career in more than thirty seven years in
Chairman, Central Electricity working in several Tata the Central Water Commission the areas of project planning,
Authority, ex-officio Secretary to Companies, he became group and during this tenure, he was on conceptualization, design,
the Government of India, head for international projects. In deputation to the Central engineering and operations. Prior
Ministry of Power since 2002 1984, he joined the International Electricity Authority (CEA). Later to joining NTPC in 1977, he
where he brought about Finance Corporation (IFC), on, he joined NTPC. During his worked with Babcock & Wilcox,
structural changes required Washington- the developing stint with the CEA and NTPC, he London, UK.
within CEA and initiated action world's largest source of venture was associated with civil and
for its massive technological and capital. Shri Sethi's experience structural design of 200 MWe Presently, he is Director
qualitative upgradation. He covers industry, banking, capital and 500 MWe Thermal Power (Operations) in NTPC as well as
evolved nationwide consensus markets, infrastructure and Plants. He joined the Power Grid Chairman of Ratnagiri Gas &
for adoption of 800-1000 MW energy, including power, Corpn. of India Ltd.(PGCIL) as Power Private Limited (part-
super critical technology units. hydrocarbons, energy efficiency, General Manager (Engineering) time), a Joint Venture Company
renewables and climate change and was elevated to the post of of NTPC Ltd. and Gas Authority
He served NTPC for 15 years and mitigation. He has worked in Executive Director (Engg.& QA of India Ltd. (GAIL) for 2 years
was responsible for various facets over thirty countries and was & I). During this period, he was and the chief architect of revival
of Super Thermal Power Projects Chief Investment Officer at IFC associated with system planning, of the abandoned project. In
and Operating Stations and prior to joining Government of feasibility study, design and NTPC he has held important
played a key role in promoting India in 2001. He lends his engineering of the transmission positions including Executive
power sector reforms. diverse global experience across systems of various voltage levels Director of National Capital
public and private sector to as well as quality assurance and Region, Engineering Division, etc.
During stint of 14 years with He is also nominated director on
BHEL, he led engineering teams NPCIL's Board. inspection of products &
services. He has been the Boards of Northern
for turnkey generation, Presently, he is Principal Adviser Coalfields Ltd. (NCL) and
transmission and distribution instrumental in increasing the
(Energy) to the Planning efficiency of Corporate Damodar Valley Corporation
projects in India and abroad. In Commission. (DVC).
Haryana State Electricity Board Engineering by introducing the
he was instrumental in He is on the Board of NPCIL concept of standardization in Several papers authored by him
accelerating rural electrification since 28th Jan. 2003. systems, procedures and designs have been published in national
by adopting innovative which have resulted in a and international journals and
construction and management considerable reduction in fetched him great acclaim. In
techniques which resulted in gestation period of the recognition of his expertise in the
100% rural electrification of Transmission System Projects. area of power plant design,
Haryana the first state to achieve Later on, he worked as Executive commissioning and generation,
such distinction in 1970. Director (Corporate Contracts) he has been awarded “Eminent
and Executive Director Engineer Award” by Institute of
Shri Bajaj is Fellow of Institute of (Commercial) as well. Engineers (India) in the year
Engineers, India, Institution of 2006.
Electrical Engineers, UK, the Currently, he is heading the
Institute of Electrical and Southern Region Transmission He is on the Board of NPCIL
Electronics Engineers (IEEE), USA System-1 of PGCIL as the since 8th Oct. 2004.
and All India Management Executive Director (SRTS-1).
Association. He is recipient of He is on the Board of NPCIL
various National and
since 3rd Jan. 2002.
International Awards. He is on
the Board of NPCIL from 27th
Sept. 2006.

Permanent Invitees
G.K. PANDEY T. S. BHATTACHARYA
Director Director
Dr. G.K. Pandey holds a Ph.D in Shri T.S. Bhattacharya is M.Sc. in
Chemistry and a Post Graduate Nuclear Physics, Associate of
Diploma from the International Saha Institute of Nuclear Physics
Institute for Infrastructural and a Post Graduate in
Hydraulics and Environmental Management Studies. With over
Engineering, Netherlands. He has 36 years of distinguished service
a comprehensive experience to the State Bank of India V.C. Agrawal
spanning three decades in (SBI),from 1969 to 2008, Shri Director - HR
environmental pollution control, Bhattacharya has made a mark in
environmental impact the field of banking and finance.
assessment, occupational and In his career spanning over three
environmental health, industrial decades, he has held a variety of
pollution control, air and water critical and challenging
quality monitoring. Dr. Pandey assignments in the banking
has represented India on the sector and executed them with
international platform and excellence.
presented papers on different
aspects of the environment He was appointed Managing
several times. He is a member of Director, State Bank of India on
the Delhi Pollution Control 28th February, 2005. Prior to this,
Committee. He is the he has held the post of MD, State Umesh Chandra
Chairperson of the Task Forces Bank of Indore, an Associate Senior Executive Director
on Fertilizer Plants and Chlor- Bank of the State Bank Group. At
Alkali Plants constituted by its Corporate Office, he has held
MoEF. the position of the Chief General
Manager; in this capacity he has
He holds the post of an Adviser looked after departments such as
in the Ministry of Environment Retail Banking, Marketing and
and Forests (MoEF). Product Development.
Shri Bhattacharya was entrusted
He is on the Board of NPCIL
with the crucial portfolio of
since 24th May 2005. Commercial Banking in the
northern states of Punjab,
Haryana, Himachal Pradesh, and
Jammu & Kashmir. Sudhinder Thakur
Apart from his comprehensive Executive Director
exposure to national banking,
Shri Bhattacharya brings with
him a varied and significant
experience in international
banking. He has held the posts of
the Head, International Merchant
Banking and the International
Correspondent Departments, at
the Corporate Office. At his
offshore postings, he has worked
at SBI Office, Singapore, and
headed the Representative
Offices of SBI at Jakarta,
Indonesia.
Shri Bhattacharya is on the Board
of NPCIL since May 8th 2008, as a
Part-time Director.
Srikar R. Pai
Company Secretary

Chairman's Statement
Dr. S. K. Jain
Chairman & Managing Director
Ladies and Gentlemen,
Welcome you all to the Annual General Meeting. Your Company has gone
through a rough patch during the last year with the generation and profits
falling for the first time in many years. However, the resilience that is the
hallmark of a strong company like NPCIL, has helped in tiding over the
temporary crisis. During this period the generation from the operating units
had to be adjusted to match the supply of Uranium. As a result, the revenues
were less even though the units operated at availability factors in excess of
80 %. In spite of this, the Company was in a position to pay dividend to the
Government. The heartening fact is that the ebb has been crossed and the
good times are round the corner. I am confident that fuel supply is soon to
improve and we will see increased capacity factors and quick completion of
the three new units which had been waiting for fuel.
The recent initiatives taken by the Government has further rekindled hopes
of an end to the nuclear isolation and open up possibilities of nuclear

commerce with the world. We are looking forward to a very busy consideration of the Government. The Company has recognised
year ahead, where activities related to launching our indigenous the necessity of developing indigenous capability to support this
700 MWe units will take priority and of course exploration of growth and has initiated the setting up of facilities to manufacture
collaboration avenues with nuclear partners from other supplier major components by the leading industry partners.
countries is expected to reach a peak. If everything goes as per
plans we should be able to start work on six new sites including In the diversification front, action is being taken to enhance the
those that will be identified for the imported Light Water Reactors. capacity of the Kudankulam Wind Farm of 10 MWe by an equal
amount. NPCIL had been looking for opportunities for investing in
Although the financial performance was below par, the silver Hydel to support the peak demands. An MOU has been signed with
lining was provided by a few landmark achievements. The most Tehri Hydro Electric Development Corporation for set up of Pump
noteworthy was the successful commissioning of Kaiga Unit-3 Storage Scheme at two potential sites. Maharashtra Government
within five years. You must have observed that your Company has already given its approval for the proposed sites.
had been demonstrating continuous improvement in operation
of its units in the past. The uninterrupted operation of Kaiga The Company maintained its contact with the international
Unit-2 for 529 days not only created another benchmark among community through the WANO and IAEA to take maximum
all Heavy Water Reactors worldwide, but also demonstrated the benefit and make contributions through expert missions. This
insatiable hunger for achieving excellence. Completion of Life has resulted in accumulation of 275 reactor years of safe
Extension work on Narora Unit-1 and its successful connection operation. The high quality standards adopted in NPCIL has been
to the grid was a testimony of the maturity in handling such well acknowledged by other organisations. On special request
intricate work. The most defining moment was when the the QA Units located in different parts of the country have been
honourable Prime Minister showered praises and saluted the providing consultancy services to the Defence Department,
engineers and scientists of the DAE for their excellence, while BARC, L&T, BHAVINI, BHEL and State Electricity Boards.
dedicating the 540 MWe units at Tarapur to the nation.
Turnover of engineering manpower has plagued even the best
As mentioned earlier the 220 MWe units of Kaiga-4 and RAPP-5 companies in the country. Although the overall attrition rate is
are ready to receive fuel and are likely to get commissioned in a not significant in NPCIL, loss of experience from among the
couple of months. RAPP-6 is in the final stages of construction licensed operating manpower has posed challenges. HR
and will be ready by March 2009. Construction work at the 1000 Management strategies are being continuously evaluated and
MWe units at Kudankulam are progressing at a fast pace and
system commissioning has already begun in the first unit.
Progress in the second unit is closely following the first. The Company has recognised
the necessity of developing
After getting the approval of the Government of India for four 700
MWe units, the tendering of long delivery items and site
indigenous capability to support
preparations have been stepped up. Site work is likely to start by
our growth and has initiated
year end at Kakrapar, where two of the units are to be set up. The the setting up of facilities to
remaining two are to come up at Rawatbhata in Rajasthan. manufacture major components
Additional sites for the expansion programme are under active by the leading industry partners.

Chairman's Statement
The prospects of opening up The Company has complied with the Corporate Governance
Guidelines issued by the Authorities.
of nuclear trade with India has
encouraged several suppliers The World Association of Nuclear Operators has recognised the
from around the world to visit success of the Company and the indelible mark it has made on
and have exploratory discussions. the world nuclear industry. As a result, your CMD was elected
the President of the world body during the last Biennial General
major initiatives have been taken to address the challenges. The Meeting (BGM) in Chicago. NPCIL will be co-hosting the next
Company has particularly recognised the difficulties of retaining BGM in 2010. The world watched with keen interest how NPCIL
personnel at remote sites and has taken various measures to maintained a constant growth when other advanced countries
make working at sites more lucrative. The Cabinet approval to did not venture. The timing of the meeting couldn't have been
the NPCIL Guidelines will provide the much needed flexibility to better, because that is when most of the activity is expected to
manage its resources. Further to this, the growth prospects and be. The very fact that US utility companies have requested us to
career opportunities are going to play a major role in reversing host a Construction Benchmarking visit is indicative of the
the trends sooner than later. It is a matter of great pride that recognition that NPCIL enjoys. The prospects of opening up of
harmonious employee relations prevailed at all Stations, nuclear trade with India encouraged suppliers from the US,
Projects and Headquarters. Employee relations continued to rest France and the Russian Federation to visit and have exploratory
on the constructive participation of officers and staff discussions with NPCIL officials. The Indo-US and Indo-French
representatives in decision making on all relevant matters. Business Summits attracted a large number of industry
professionals and provided a platform to know and understand
As always, major emphasis was given to maintaining the spectrum of technologies.
transparency in all areas of functioning. This has lead to
introduction of e-payment system, publishing of tenders on the The preceding account of facts must have given a clear
website. We are all aware that Procurement and Contract impression that NPCIL has stood the test of time and proved its
Management rules are frequently challenged due to ambiguous capability to the world. The world today recognises your
and primitive conditions. NPCIL took the giant step to Company's potential and is eager to collaborate for the bigger
revolutionise the Contract Conditions in tune with the current gains of the industry and ultimately the planet. It is sure going to
domestic and international market trends. This initiative has be a win-win situation for India and the world where the fossil
been widely appreciated in the Government and Public Sector. fuel becomes unaffordable and climate changes demands
The Company attaches a high value to its Corporate Social abatement of GHG emissions.
Responsibility and has been successful in providing the basic
infrastructure support to the neighbourhood. The Environment I am confident that NPCIL will get all the support from the units
Stewardship Programme aims at identifying the rare species and of the DAE, the various ministries and State Electricity Boards as
providing valuable information to the public. it has always been getting. They have all been cogs in the wheel

Dr. Jain delivering the President's speech at the
Chicago BGM of WANO in 2007.
of the chariot. The banks, rating agencies and investors deserve

special mention for their belief in this Company. We owe our
success also to the AERB for their continuous guidance and the
statutory auditors and Comptroller and Auditor General of India
for their expert help. The esteemed Board members deserve all
praise for having pooled their vast experience and provided the
right direction at all situations. Finally it has been an exemplary
team spirit across officers, supervisors and workers which made
all the difference.
It is now time for me to move on to the Directors’ Report,

Balance Sheet as on 31st March 2008 and Profit & Loss account
for your consideration, approval and adoption.
Dr. S. K. Jain
Mumbai
Date: 22nd August 2008
Chairman WANO inviting Dr. Jain to present the

speech after his election as President.

The Present Nuclear Power Scenario:
Opening Vistas
generation, DAE has been working on a three-stage nuclear power

programme based on closed fuel cycle. The three stages need to be
executed sequentially. NPCIL is working on first stage of the three-stage
programme. With a capacity of 660 MWe currently under construction,
the total capacity based on natural uranium fuel will reach 4460 MWe.
Setting up of eight reactors of 700 MWe each will take the total PHWR
capacity to 10000 MWe thus completing the first stage of the three-
stage nuclear power programme.
In addition to the PHWR programme, Light Water Reactors have also

been introduced for faster capacity addition. Two of such reactors are in
operation at Tarapur since 1969 and two 1000 MWe each VVERs are in
advanced stages of construction at Kudankulam, Tamilnadu. Setting up
of additional reactors in cooperation with other countries, subject to
availability of such an option, is also envisaged and efforts have been put
to be ready to take full advantage, quickly, once this route is opened.
The Fuel Hunt

The fuel hunt for first stage of the programme has received
consideration of the Government at the highest level. The output from
the new mill at Jaduguda is expected to augment fuel supplies in the year
2008-09. A new mine is being opened in Andhra Pradesh and the work
on mill there has also commenced. Discussions are also going on with
the Government of Meghalaya for mining activities in the State. While
enough uranium for the first stage capacity of 10000 MWe is already
identified, an aggressive and wide spread exploration work for uranium
bearing mineral, beyond the known programme, has been taken up and
is showing promising indications.
"No Power Is Costlier Than No Power"
Dr. Homi Jehangir Bhabha Collaborating For Additionality
The construction works for Kudankulam project, being set up in
cooperation with Russian Federation are in advanced stages of
THE GLOBAL SCENARIO construction. With this, NPCIL is having experience in diverse
The use of nuclear power for electricity generation commenced about contemporary reactor technologies of boiling water reactors,
50 years ago. Today, at about 16% of the total electricity generation, pressurized heavy water reactors and pressurized water reactors. The
nuclear power produces as much electricity as was produced from all proposals of the XI Plan (2008-2012) envisages commencement of work
sources then. Some two-third of global population lives in nations on ten light water reactors at three sites linked to the availability of
where nuclear power is an integral part of electricity production and international cooperation in this regard. The preliminary works of site
industrial infrastructure. Expanding nuclear power is thus a matter of identification have been completed and pre-project activities have been
continuation of national strategies. More countries are embracing commenced. NPCIL has, thus, poised itself for significant capacity
nuclear power as a part of their energy mix and as their global addition through the light water reactors as an additionality to the
environmental responsibility. indigenous programme.
Nuclear power is a sustainable technology in view of superior safety On Course & Ready
record amongst major technologies. It is non polluting, competitive and India's indigenous programme of nuclear power generation is
has reserves for many centuries and conserves valuable fossils fuels for progressing and is on course at defined pace. Along with the indigenous
future generations. programme, NPCIL is ready to take up any additionality from outside.
At the same time, NPCIL is also fully prepared to export technology to
NUCLEAR POWER IN INDIA other nations.
Towards Self-sufficiency.
The total energy content in the currently known Indian nuclear resources The technological, project management, plant operation and other
is at least twenty times more than that of other non-renewable strengths have been carefully nurtured at NPCIL/DAE.
resources. With a view to utilize this huge resource for electricity

Indigenisation:
From Vision to Execution
Having sought initial support of the US and Canada in 1960s for STRONG RESEARCH & DEVELOPMENT BASE: EVOLVING
the setting up of TAPS-1&2 and RAPS-1&2, respectively, NPCIL COMPETENCIES
visualized the indigenization of nuclear power development as The success story of indigenization of various aspects of the
its long term goal for the nation. MAPS-1&2 was the first nuclear power industry has a strong backing in its Research &
indigenous plant, making certain essential changes in design, Development (R&D) base. This R&D base for nuclear power
sourcing most of the equipment from Indian industry. Decades plants comprises the DAE's Research Centres such as, the Bhabha
of further technological developmental work by the Indian Atomic Research Centre (BARC), Indira Gandhi Centre for
nuclear scientists in the laboratories and execution by engineers, Atomic Research (IGCAR), other national laboratories and
put them on a steep learning curve. It eventually led to the specialized departments at the Indian Institutes of Technology
evolution of indigenous nuclear design and technology. The (IITs) and other renowned academic institutions of the country.
Narora Nuclear Power Plant located in Uttar Pradesh, bears TAPS -3&4 have been commissioned ahead of schedule within
ample testimony to the resilience and perseverance of Indian the stipulated cost, it proves our strength in R&D and successful
scientists and engineers. Distinctly different from the CANDU execution. NPCIL is at present also engaged in R & D with regard
design, which had been implemented at its predecessors-RAPS- to specific plant needs along with Indian industry. Having
1&2 and MAPS-1&2, Narora showcases indigenous design as achieved excellence in the execution of the PHWR technology,
well as equipment; this distinction was achieved in the 1980s NPCIL is now entering the FBR development stage, which will
and the standardized plant design adopted in all the 220 MWe eventually lead to Thorium reactor development.
units thereafter. TAPS-3&4, commissioned recently in August
2007, can be considered to be a high-water mark in the
accomplishment of the right design for the nuclear reactors.
Bearing the stamp of Indian ingenuity, the recently
commissioned TAPS-3&4 220 MWe units, design are equipped
with the state-of-the-art facilities and hold a pride of place in
the heart of every NPCIL scientist and engineer. It gives NPCIL
the confidence in its intrinsic capabilities to forge ahead with the
3-Stage Nuclear Programme, in a resolute manner.
Deployment of Orbital Cutting at Kaiga-3
Bearing the stamp of Indian

ingenuity, the recently
commissioned TAPS-3&4,
and the 220 MWe units
with standardized design are
equipped with the state-of-the-
art facilities and hold a pride
of place in the heart of every
NPCIL scientist and engineer.

Operations:
Setting Standards for Excellence
Today, KGS-2 is credited with A QUANTUM LEAP

Way back in 1969, RAPS could sustain no more than 5 days of
529 days of continuous continuous operations. Today, all stations log long runs, for
operations. The operational example KGS-2 is credited with 529 days of continuous
operations this year. This drastic improvement in continuity in
continuity of the Kaiga nuclear operations of the Indian nuclear power plants marks a great
power plant has been adjudged accomplishment in the chronology of events in the Indian
to be amongst the best by nuclear power. The operational continuity of the Kaiga nuclear
power plant has been adjudged to be amongst the best by
international standards. international standards.
Even TAPS 1&2, which are almost 4 decade old reactors have
shown record performance in 2007-08.
IN THE FACE OF CHALLENGES Such instances of operational efficiency prove NPCIL's nuclear power
India has a commendable international record of having a non- capability and enhance its credibility in the international arena.
stop nuclear power programme for almost 4 decades. Having a
firm conviction in nuclear energy as a viable source of energy, SAFETY FROM RADIATION ENSURED
India has never disbanded the capability to design, construct and Radiation from NPCIL's nuclear power plants is inconspicuous as
operate its nuclear power plants. In fact, the Operating compared to the threshold set by the Atomic Energy Regulatory
Performance of NPCIL has seen an improving trend over the past Board (AERB). The Environmental Survey Laboratory regularly
few years and has even matched the best in the world. WANO collects samples of air, water, milk, vegetables, cereals, fish and
has recognized NPCIL's nuclear power stations to be amongst so on, to measure the radio nuclide levels using the bio-kinetic
the best in the world. Kakrapar in 2006-07 and Kaiga in 2007-08 models. The release of radio nuclides by the nuclear power
have been recognized by WANO for excellence in operations. plants is insignificant in comparison to the natural phenomena
of cosmic and terrestrial radiation too.
This positive change can be primarily attributed to an increased
focus on carrying out in-depth analysis of the failures,
identifying the potential weaknesses and actions to eliminate AVERAGE ENVIRONMENTAL DOSE FROM ALL UNITS
them. Collaboration with organizations like WANO and COG AT A SITE AT 1.6 Km (2004-2007) (micro Sievert/year)
has helped in these efforts through regular exposure to industry 2500
practices world over and by exchange of operating experience. 2400
2000
WANO PEER REVIEW
Dose (mSv/year)
Initiatives in benchmarking of the operating stations by in-house 1500 1000

experts and periodic reviews by international teams have
contributed in raising the standards of all activities. The first
1000
round of WANO Peer Reviews of all operating stations has been
completed and the second round has started. Besides this, NPCIL
has been the only utility in this part of the world to have offered 500
its new units for the Pre-Start-up Peer Review by WANO. This 10.8 32.6 13.7 1.3 1.9 1.1
has given an opportunity to the units to identify the latent 0
TAPS RAPS MAPS NAPS KAPS KGS AERB Nat.
weaknesses and inculcate a sound work culture in the early Limit Bk g.
stages of commissioning.

Life Extension, Modernisation & Advisory Support
In the Face of Challenges
Mainly, the nuclear reactors' control

system, electrical equipment and
mechanical equipment have aged
over the years. These nuclear power
plants have been upgraded
NPCIL has accomplished the life extension of TAPS-1&2,

nuclear power plants of the earliest generation, set up in
1969. Their life span has been extended by about 15
years. For this purpose, NPCIL has invested Rs.90 crores,
which is highly economical by the industry standards,
worldwide. A team of specialist engineers, dedicated to
the task, has systematically studied the ageing of the
nuclear power plants. Accordingly, it has carried out the
upgradation of the older generation of nuclear power
plants such as RAPS-1&2, MAPS-1&2, TAPS-1&2 and
NAPS-1 recently. Mainly, the nuclear reactors' control
system, electrical equipment and mechanical equipment
have aged over the years. These nuclear power plants
have been upgraded largely through retrofitting to bring
their safety levels at par with the currently accepted
industry norms.
CAPACITY BUILDUP: INFUSING POWER

An important innovation on the anvil is the design for capacity
buildup of the recently commissioned TAPS- 3&4. NPCIL's
team is diligently designing an ingenuous capacity buildup of
TAPS-3&4 from 540MWe to 700MWe. This design for
capacity buildup could empower NPCIL for far greater power
generation for the nation at a lower per MWe cost.
ADVISORY SUPPORT: UNDER ITS WINGS

NPCIL is lending advisory support to Bhartiya Nabhikiya
Vidyut Nigam Limited (BHAVINI). BHAVINI has been
created to construct and operate India's first 500 MWe
prototype Fast Breeder Reactor (FBR) at Kalpakkam, Tamil
Nadu. NPCIL is nurturing the nascent BHAVINI by advising
and also participating, as necessary, in various activities
ranging from Civil Engineering to Quality Assurance. Thus,
Enmasse Channel Replacement at NAPS-1.
NPCIL is playing the role of a senior responsible
contemporary in the field of nuclear power.

Partnerships and Diversification:
Newer Realms of Energy
NPCIL intends to contribute

towards various clean sources of
energy to the fullest by entering
into partnerships.
As a testimony to its financial strength, NPCIL intends to

continue undertaking projects without budgetary support
from the government. With healthy surplus reserves,
excellent ratings (AAA) from CRISIL and CARE, and armed
with strategic partnerships, the Company is growing from
strength to strength. At this juncture, NPCIL is well-
equipped to explore new possibilities for greater
accomplishments.
PARTNERSHIPS: SYNERGY FOR ENERGY

NPCIL has signed an MoU with Bharat Heavy Electricals
Limited (BHEL), another premier public sector company,
to enter into a Joint Venture for carrying out
engineering, procurement and construction activities for
conventional island of Nuclear Power Plants. The Joint
Venture Company plans to explore and evaluate the
various technology options for turbo generator sets of
700 MWe rating and above.
Newer Realms of Energy

Synergising human effort with the forces of nature, NPCIL
continues its quest for energy is cater to the nation's
growing needs. Along with its major role in nuclear power,
NPCIL intends is contribute towards other clean sources of
energy like wind power and hydro power as well.
TAPPING CLEAN, GREEN ENERGY

Our responsibilities towards generating more clean
energy and our business sense have propelled us to
diversify into wind and hydro power. The wind power
sector in India has the fourth largest installed capacity in
the world and is the wind power leader in the developing
world. To contribute to this sector, NPCIL initiated the
operation of a 10 MWe wind farm at Kundankulam in
Tamil Nadu, on 19th January 2007. NPCIL is working
towards expanding this capacity.
PUMPED STORAGE SCHEMES

The Company has signed an MoU to establish a joint
venture with Tehri Hydroelectric Development
Corporation Limited (THDC), Uttarakhand, to jointly
develop hydro electricity projects. The Government of
Maharashtra has allotted the Malshej Ghat (600 MWe)
and Humbarli (400 MWe) Pumped Storage Schemes to
the Joint Venture Company, for survey and
investigation purposes.
Malshej Ghat site showing Kalu river

Knowledge Management:
Implementing the Cutting Edge of Technology
Adoption of Knowledge Management practices, a hallmark of

SPECTRUM OF KM ACTIVITIES every modern day organization, can be considered to be a
prudent move, on the part of NPCIL. Having evolved
Documenting Knowledge and experiences continuously in the field of nuclear power over several
decades, NPCIL has amassed an invaluable body of
knowledge, which is ever growing. Organising this vast
Dissemination and sharing processes knowledge capital with the help of IT-centric Knowledge
Management practices is expected to bring in multi-
dimensional efficiencies and transparency within NPCIL.
Manpower forecasting, selection and
training One of the prime considerations in implementing Knowledge
Management is the retirement of many top personnel at
IT enabled tools NPCIL. They have participated in the development of the
nuclear power industry in India over decades. It is essential to
capture their knowledge and experiences for use by the
Human Asset management upcoming generation of employees. Nuclear specific
knowledge is being captured through specific mentoring
Operation and construction forums in the form of documents.
experience sharing
The intranet called Prithvi has been developed for making
information and knowledge accessible to every employee of
KM Portal NPCIL. Here, employees of different departments are able to
access multi-disciplinary information. Prithvi is being
Discussion Forum developed further as the vital channel for the free flow of
information between the departments of NPCIL. It is
expected to lead to better understanding and greater
appreciation of various processes. In the long term, a multi-
disciplinary approach to resolution and innovation could
become plausible at NPCIL. Also, a Discussion Forum, for
employee interaction at professional level, is in the process
of being implemented.
The intranet called Prithvi is NPCIL has introduced IT-based Training Simulators for
training the staff on the critical and sensitive nuclear
the vital channel for the free processes. The Company intends to facilitate training of
flow of information between employees on various aspects of nuclear technology by
the departments of NPCIL and is introducing Web-based training packages with 3-D
Animation.
being continually developed
further. In the long term, a
multi-disciplinary approach to
resolution and innovation could
become plausible at NPCIL.

The Human Capital:
Our Invaluable Asset
CHALLENGING WORK, QUALITY LIFE

3,270 NPCIL offers its human capital challenging work, along with a
comfortable quality of life for the whole family. This is the essence
Engineers and Scientists
of NPCIL's organisational culture. Thoroughly trained in highly
specialised skills of nuclear power operations, the employees of
NPCIL form a valuable resource. NPCIL has a great track record of
5,690 retaining its employees. An attrition rate of 3% at NPCIL, seems

small as compared to the IT industry, which has an attrition rate of
Technical Employees about 20%-25%, despite higher pay packages. However, the
Company regards this rate of attrition with deep concern, and is
leaving no stone unturned in reducing it. With its strength in
relatively low attrition, NPCIL can serve the Indian Nuclear Power
1,759 Industry and its growth in the future.
Non-Technical Executives and Staff ENSURING COMMITMENT

A special feature of NPCIL is the convenient accessibility of the
management for addressing grievances as well as making
1,205 suggestions for improvement. Face-to-face interaction with
employees on a regular basis has led to the evolution of many
Auxiliary Support Staff employee satisfaction measures. Certain such newly formulated
measures using the feedback received through the process of
interaction have been implemented in recent times.
11,924 The basic issue of accommodation has been taken care of in a more
comprehensive manner by adopting a modified housing policy. For
Total Employees
regulatory licensed/qualified personnel that are on duty round-the-
clock at the Operating Stations, a Charge Holding Allowance has
(As on 31st March 2008) been defined. To make postings on sites more attractive, a Site
Location Allowance has also been defined. An award scheme has
been introduced to motivate employees towards greater
achievement.
Full fledged in-house medical facilities are provided for the whole
family. Finally, very convenient post retirement medical care
facilities for the later stage of life are available. This programme thus
works as an effective long term retention tool. Fringe benefits such
Overall, NPCIL is going as work attire, newspapers and periodicals are also extended to
out of its way to bond employees.
with its employees.
Overall, NPCIL is going out of its way, to bond with its employees.
Satisfied employees form We believe that satisfied employees will form a committed
a committed workforce workforce at NPCIL.
at NPCIL.

EDUCATIONAL FACILITIES
The Company has established schools within
the residential complexes at all its
Project/Station Sites. These Schools are
managed by the Atomic Energy Education
Society, an autonomous body under the
Department of Atomic Energy and are
affiliated to the Central Board of Secondary
Education. These schools provide quality
education upto the 10+2 stage for the wards
of employees within the campus itself. The
Company also provide scholarships to
meritorious students and facilities like hostel
subsidy for education beyond the 10+ 2 stage.
Overall, NPCIL is going out of its way to bond

with its employees. We believe that satisfied
employees form a committed workforce at
NPCIL.

Corporate Social Responsibility:
The Nurturing Hand of NPCIL
We, at NPCIL, are not only

working with physics of atoms,
but with physical well being of
our neighbours too.
In pursuit of wealth creation through electricity generation for

the nation, NPCIL has, on its way, fulfilled its responsibility as a
corporate entity in a responsible manner. The humane face of
Foundation of Community Health Centre, Rawatbhata NPCIL helps it to gain acceptance amongst the local people,
April 16,2006 wherever it sets up its facilities. For the people of India, residing
in far flung places, the setting up of a Nuclear Power Plant by the
Company augurs infrastructural development, creation of
employment opportunities, assistance for education facilities
and health care facilities, as never before. Wherever we go, we
make a positive difference to the lives of many people.
HEALTH FOR ALL: A SINCERE STRIVING

India, home to a population of over a billion, has the greatest
responsibility towards mankind in the form of optimal
healthcare delivery. NPCIL is determined to make its
contribution in the 'health for all' endeavour of the Government.
With medical facilities being accessible in a limited manner,
through Public Health Centres to the rural population, the
Company not only assists Public Health Centres, but also makes
proactive attempts at covering the health needs of the residents
surrounding its Nuclear Power Plants.
Chairman AEC & Secretary to the Government of India; and CMD,
NPCIL inaugurate Community Health Centre by breaking coconut
in the presence of village representatives, constructed by NPCIL Camps offering eye check-ups, cataract surgeries, plergion,
at Rawatbhata, December 29, 2007. general medical check-ups, administration of vaccines to
children, diagnostics for diabetes and hypertension are
organised on a regular basis. Consultation and even tests are
carried out; and necessary medicines are provided free of cost.
Lending a hand to the local Public Health Centre, NPCIL has even
supplied them with equipment such as Laryngoscope, Ambubag,
Endotracheal Tubes, Suction Machine & Baby Weighing
Machines. The National Health Policy lays great emphasis on
dissemination of public health related information, education
and communication. The Company regularly conducts
awareness programmes on health, hygiene, family welfare,
AIDS, cancer and preventive health care. These programmes are
targeted at members of local bodies, teachers and students.

BRIDGING THE LITERACY DIVIDE
According to the Census 2001 data, literacy levels in rural areas
have been recorded at 59% approximately as compared to
around 80% in case of urban areas a great divide, which needs to
be bridged. NPCIL is making an attempt to help rural India make
this transition, vital for the development of individuals and the
nation. The Company's community welfare schemes lay much
emphasis on promotion of literacy and education of rural
population. NPCIL continues to help student communities in
local schools and colleges. It has been contributing financially
towards the construction of schools and their renovation in rural
areas. It has also equipped them with furniture, laboratory
equipment, sports and other gadgets. NPCIL also conducts
various co-curricular activities to encourage local talent. To
bring the rural student at par with their computer savvy urban
counterparts, the Company has distributed computers to the
schools around its stations and projects on several occasions.
EMPOWERING INDIA'S GRASS-ROOTS

Today, the infrastructural needs of India are undeniably great. To
sustain the 8% growth rate, infrastructure development is the
need of the hour and NPCIL has been contributing to it, in its own
way. Wherever the Company sets up its power plants,
infrastructure such as good roads, telephone exchanges, P&T
services crop up. It aids infrastructural development such as
widening and asphalting of roads, building of Panchayat and
community halls, distribution of high yielding varieties of seeds
to the local farmers, provision of piped water supply, bore-wells,
hand-pumps, the setting up of water huts and implementing
other suggestions made by the neighbouring Panchayats. Such
schemes of NPCIL are changing the face of rural India, around
Nuclear Power Plants, by building rural infrastructure.
The humane face of NPCIL helps

it to gain acceptance amongst
the local people, wherever it
sets up its facilities. The
Company's community welfare
schemes lay much emphasis on
promotion of literacy and
education of rural population.

Environment Stewardship
A Microcosm of Ecological Well-being
The common Kingfisher is a Majestic 'Ibis' with its unique bill

colourful bird found at all can be seen in the exclusion zones
nuclear power stations in India of all the nuclear power stations
(Photo : Devkinandan, RAPS). (Photo : A.I. Siddiqui, NPCIL)
Environment Stewardship Programme

To preserve and promote this microcosm of ecological
balance and well-being, NPCIL has initiated a voluntary
Environment Stewardship Programme (ESP). The main
The population of Gyps Vultures has rapidly declined and the objective of the programme is environment conservation
bird catergorised as "critically endangered'. It can be seen in the based on scientific lines. The programme also includes
enivrons of RAPS at Rawatbhata. (Photo : Devkinadan. RAPS)
training of local volunteers, public awareness campaigns to
sensitise members of the public on environment, improving
habit, particularly towards avifauna. NPCIL as a responsible
With great emphasis being laid on preservation and
corporate citizen, believes that these efforts will help in
promotion of bio-diversity at all the Nuclear Power Plants
promoting habitat conservation and awareness on the
(NPPs) in India, these sites could well become potential sites
importance of a healthy environment.
for eco-tourism. The Indian NPPs lie in different bio-
geographic zones and have become safe haven to a large
species of birds, both resident and migratory, apart from lush Networking for the Cause
flora. The green belts surrounding the NPPs have become like To implement ESP, NPCIL has tied up with Bombay Natural
sanctuaries for the avifauna. History Society (BNHS). A series of workshops have been
conducted at each of the power stations to train and
The Green Belt: Safe Haven empower local talent in conservation and the scientific
study of avifauna. Officials from the State Forest/ Wildlife
The Exclusion Zones (EZs) ie. about 1.5 km area from the
Departments and officials from the Stations/ Projects also
centre of the nuclear plant which is mandatory and sans
participated. The faculty for these lectures was drawn from
human habitat have become the hot spot for the avifauna.
BHNS with guest speakers from other NGOs such as WWF,
With few concrete plant structures, dense forests and water
Madras Crocodile Bank Trust, Hadoti Naturalists Society,
bodies, around which supply water to NPPs for cooling, no
Nature Club Surat, Pryas etc.
man's land becomes the favourite habitat of the avian
population. NPCIL undertakes green-belt development by
planting trees every year around its facilities. Narora,
Kakrapar and Kaiga sites have developed green-belts around Volunteer surveying Avi-fauna for bird Census (Photo :A.I. Siddiqui)
the stations by planting more than 1,50,000 trees during the
last few years. New techniques for plantation have been
adopted at KKNP Project in view of the low fertility of the
soil around the project. About 10,000 trees have been
planted so far.
NPCIL is making all out efforts

to make a difference to the
entire living world with its
multifarious activities.

The 'Spotted Owlet' is a nocturnal bird difficult to spot in its camouflage
(Photo : A.I. Siddiqui, NPCIL)
Efforts at Rescuing: Saving From Extinction

NPCIL has also undertaken studies of
threatened bird species found here, such as the
Indian Skimmer, Gyps Vultures, Forest Owlet
as well as Spot Billed Pelican. Efforts have been
made towards the conservation of species,
particularly the endangered ones. In addition,
many NPCIL employees have participated and
contributed to National Census on Peafowl
and Asian Wetland Count. Each station has set
up nature clubs named after a threatened bird
to be found in that area.
The Indian NPPs have

become safe haven to a
large species of birds.
The green belts
surrounding the NPPs
have become like
sanctuaries for the
avifauna.
Asian Koel maintains a romantic environment

with its sweet song. Here, a female Koel is shown
(Photo : A.I. Siddiqui, NPCIL)

Project Management
On The Fast Track
From the first pour of concrete to the commissioning of a § Packages are formulated carefully to avoid interface issues
project, effective project management is the key to success between various activities.
in terms of timeliness as well as cost effectiveness of the
project at NPCIL. The Company's newly built nuclear § Major works are executed in Mega Packages for Quality
facilities such as TAPS-3&4, RAPP-5&6, Kaiga-3&4 and the Assurance.
upcoming Kudankulam-1&2 embody the good practices in § Pre-qualification of vendors such as their technical and
project management. The commissioning of TAPS-3&4 and financial capability are considered.
Kaiga-3 before the due dates and as per international bench
marks is a testimony of successful project management § Civil Packages are awarded and Purchase Orders placed for
practices and the realization of a dream. long delivery equipment in advance.
INFUSION OF INFORMATION TECHNOLOGY § Resource based planning is done in great detail.

To put its upcoming projects on the fast track, NPCIL has § Progress is updated on LAN.
implemented the Project Planer, a software application, which
enables the monitoring and forecasting of the project's § Corrective action is taken on time.
progress with efficacy. NPCIL is managing all information for
its projects by implementing the Management Information EXECUTION:
System (MIS). NPCIL has provided the facility of data retrieval The Kudankulam nuclear power plants (KKNPP-1&2) comprise
via Local Area Network (LAN) to its personnel involved in the installation of 2x 1000 MW turbines of Light Water Reactor
projects. They can even access the NPCIL library via LAN. For (LWR) technology for the first time in India. It is a mega
the management of material, which is the key to success of a engineering project taken up by India. Every aspect of the project
project, the Company has implemented the Material construction involves unique challenges and experiences.
Accounting & Information System (MAIS), for managing For instance, welding the main coolant piping involving 70mm
Finace, Financial Management Information System (FAIS) have thick walls is a great technological feat. To achieve this, NPCIL's
been implemented by the Company and all these are engineers indigenously developed equipment, erection
customized to the working process and integrated to give quick procedures, training of operators and mock-ups . Construction of
& accurate results. lined inner containment with new pre-stressing metholodology
has been successfully achieved. Commissioning of Polar Crane,
COMPREHENSIVE PLANNING FOR SUCCESS erection of Reactor Pressure Vessel, Stem Generators, Pressuriser
All the NPCIL projects are marked by detailed planning: and Turbines required special skills which were mastered by NPCIL
§ Infrastructure facilities at sites are set up beforehand, to enable engineers and the work has been completed within fine
full attention to the main works during the execution of project. construction tolerances as specified.

Unique situations arose during the construction of the inland Those project management
project-Kaiga-3&4, as well as that of the coastal project-
TAPS-3&4. The NPCIL workforce managed both the projects practices which have withstood
effectively. To negate the impact of continuous rainfall for a
long duration at Kaiga, the engineers built a temporary dome
the test of time, at NPCIL, have
shaped canopy over the reactor building as well as other been further honed and
buildings and managed to work round the clock. During the
construction of TAPS-3&4, a jetty was constructed for incorporated permanently into
transporting equipment via sea. Many contingency plans and the system. Adding the
mock-ups were made for erection and commissioning of new
systems of TAPS-3&4 to tackle the surprises. Higher Information Technology to
construction targets, adequate resource mobilization and project execution has brought
resource based planning in critical areas were done to meet the
requirement of compressed schedule of Kaiga-3 and TAPS-3&4. forth new dimensions of project
management. Overall, project
PROJECT MONITORING
Projects are monitored on a daily, weekly, fortnightly and managers at NPCIL are able to
monthly basis by a hierarchy of NPCIL personnel. scrutinize every facet of the
INTERFACES
project and give it the right
To avoid conflicting situations and for a smooth project execution, impetus in the right direction.
interface requirements between departments and relevant
authorities have been specified in the Master Control Network. MOTIVATING THE WORKFORCE
27% incentive of the annual salary has been stipulated for
FINANCIAL MANAGEMENT motivating the employees to meet the project deadlines. Good
Sound and strategic financial engineering is also the forte of NPCIL. performance of project personnel on various parameters is
The entire fund for the project expenditure is raised on the basis of being recognized through incentives/awards and rewards.
70:30 debt-equity ratio. 20% of the sanctioned cost is spent in pre-
project activities and advance procurement. The balance amount Those project management practices which have withstood
is spent on the execution of project construction. The expeditious the test of time, at NPCIL, have been further honed and
final settlement of contracts has been implemented and is incorporated permanently into the system. Adding the
appreciated by the industry. NPCIL has revised the terms and Information Technology to project execution has brought forth
conditions of the contracts based on experiences of recent project, new dimensions of project management. Overall, project
which are now a model for the industry. managers at NPCIL are able to scrutinize every facet of the
project and give it the right impetus in the right direction.

Convention on Nuclear Safety:
Synchronising with the “Atoms for Peace”
The Convention on Nuclear Safety (CNS) is an international

incentive convention aimed at maintaining high levels of
safety in nuclear power plants worldwide through a system
of peer reviews conducted once in three years. India ratified
the convention in March 2005 making itself as a Contracting
Party (CP) to CNS. As a part of obligation to the CNS, a
National Report, was prepared by AERB, NPCIL and other
units of DAE and submitted to the CNS. This National
Report, the first such report by India, covered all the nuclear
power reactors of NPCIL and demonstrated article by article
compliance to the CNS and also elaborated robust
mechanisms that are in place for ensuring safety of nuclear
power plants in India. In addition, the National Report also
gave many Good Practices in India for consideration as
appropriate for other CPs. With a view to have a greater
outreach in a transparent manner the National Report
was also put at web sites of DAE/AERB and NPCIL. The
submission of the National Report of India in September
2007 gave an opportunity to all the 61 Contracting Parties to
CNS to carry out first stage of the peer review process by
posting questions on the National Report. 20 CPs asked 143
questions on India's National Report which were all
answered by March 2007. Similarly, Indian team also carried
out Peer Review of the other CPs and posted 60 questions on
the National Reports of 12 countries (Argentina, Canada,
China, France, Finland, Japan, Korea, Pakistan, Romania, This National Report, the first
Russia and the USA). such report by India, covered all
The peer review recognised strong compliance to articles of
the nuclear power reactors of
CNS and our national commitment of safety in operations. NPCIL and demonstrated
The second stage of peer review leading to the oral national
compliance to the CNS and also
presentation and a question answer session thereafter as well as elaborated robust mechanisms
participation in review process of other CPs was held in April 2008. that are in place for ensuring
safety of nuclear power plants
in India.

Directors' Report
This colourful bird “ Purple Moorhen” inhabits wetlands normally; found in the exclusion zones or their neighbourhoods (Photo : A.I. Siddiqui, NPCIL)

Directors' Report
Dear Stakeholders,
Your Directors have immense pleasure in presenting the Twenty-first Annual Report of the Company, together with the Audited
Accounts for the year ended 31st March 2008.
PERFORMANCE HIGHLIGHTS
A summary of the Company's Financial Results is given below:
(Rupees in crores)
Financial Results 2007-08 2006-07
Sales of Electrical Energy 3333.83 3592.10
Other Income 932.53 1062.29
Total Income 4266.36 4654.39
Operating & Maintenance Expenditure 1874.03 1914.83
Interest 455.43 342.85
Depreciation 733.79 663.62
Total Expenditure 3063.25 2921.30
Profit for the year 1203.11 1733.09
Prior period adjustments 1.90 (7.18)
Profit Before Tax 1205.01 1725.91
Provision for Taxation 126.52 155.14
Profit After Tax 1078.49 1570.77
Add: Balance brought forward from previous year 1094.29 1065.91
Balance available for Appropriations 2172.78 2636.68
a) Interim Dividend 300.00 300.00
b) Tax on Dividend 50.99 42.07
c) Proposed Dividend 23.55 171.23
d) Tax on proposed Dividend 4.00 29.10
e) Transfer to General Reserve 1000.00 1000.00
f) Balance carried to Balance Sheet 794.24 1094.28
Earning per Share (Equity share having face value of Rs.1000/- each) 106.30 154.83
The electricity billed in 2007-08 has been 16,964 MUs, as against 18,785 MUs in 2006-07, which is about 9.7% less due to temporary
fuel supply mismatch needing operation of PHWRs at reduced power. The revenue realization has been maintained at a high level of
99.9%. Though the operating and maintenance expenditure has been maintained at the same level, the increased depreciation on
assets augmented on commercialization of unit KGS-3 and interest on borrowing related to KGS-3 being charged to revenue
expenditure have contributed to marginal increase of 4.9% in total expenditure.
In order to take advantage of wind power potential, windmills were installed at Kudankulam. The wind power generators have started
producing wind power, January 2007 onwards, and sold power to the tune of Rs. 6.65 crores as against Rs. 0.87 crores for the previous
year (January - March'07).
The provision for taxation during the year is Rs.126.52 crores. The amount received towards decommissioning levy and interest on
Research & Development (R&D), Renovation & Modernisation (R&M) and Decommissioning levy accumulations have not been
considered as income of the Company. The funds are held by NPCIL on behalf of the Department of Atomic Energy (DAE) and the
decommissioning levy is recovered on the basis of a statutory notification issued by the DAE. However, the Income Tax Tribunal has
treated the interest earned on these funds as income of the Company. The issue has been decided against the Company and an appeal
has been filed by the Company in the Honourable High Court of Maharashtra, Mumbai. During the year, the Company has appropriated
Rs. 58.08 crores from these funds towards the income tax payable on these levies.
The Company has been able to regulate its operational efficiency and has been able to achieve a net profit of Rs.1078.49 crores after tax.

Directors' Report
The Company has adopted the Accounting Standard-22 “Taxes on Income” issued by the Institute of Chartered Accountants of India
(ICAI), with effect from the FY 2007-08. The accumulated net deferred tax liability as on April 1, 2007, amounting to Rs.1, 222.01 crores,
on account of timing differences between book and tax profits as on April 1, 2007, has been recognised and charged to General
Reserves. The deferred tax liabilities as on March 31, 2008 are Rs.1702.65 crores. Since the Income Tax payable on Income from
generation of power is recoverable from beneficiaries, the amount of deferred tax, so recognized, is recoverable on becoming a part of
the current tax. Therefore, such deferred tax is considered to be recoverable and is netted from such deferred tax liability/expense.
CAPITAL
During the year, the Company has not drawn any equity support from the Government of India. The total paid up capital continued to
be Rs.10145.33 crores as on 31st March 2008, against the Authorised Capital of Rs.15000 crores.
DIVIDEND
The Board has recommended a final dividend @30% of Profit After Tax (PAT) of the Company. This amounts to Rs.323.55 crores,
including the interim dividend of Rs.300 crores.
RESOURCE MOBILISATION
As per the plan of allocation approved by the Government of India, the Company raised a sum of Rs.400 crores during the year, for the
various projects by way of market borrowing. The Company has redeemed bonds of Rs.165.09 crores during the year, as per the terms of
their issue.
OPERATING PERFORMANCE OF THE STATIONS
The performance of all operating reactors was satisfactory and stations have generated 16,956 MUs of electricity, exclusive of the
Kudankulam Wind Farm generation. The overall annual average capacity factor, resulting from operation of PHWRs at reduced power
was 54%. However, the overall availability factor recorded during the year has been 83%.
Major Achievements
1. Successful commissioning and first synchronization of 220 MWe (KGS-3) unit at Kaiga on 11th April 2007 and commercial
operation from 6th May 2007.
2. Dedication of TAPS-3&4 units to the Nation on 31st August 2007 by the Honourable Prime Minister of India, Dr. Manmohan
Singh.
3. Completion of the landmark continuous reactor operation by KGS-2 for 529 days from 19th August 2006 to 31st January 2008.
This is the longest continuous run for any Indian Pressurized Heavy Water Reactor (PHWR).
4. Synchronization of NAPS-1 on 25th February 2008 after the completion of En-masse Coolant Channel Replacement (EMCCR)
and feeders of the Heat Transport System.
Highlights of the Operating Performance of the Stations.
The Station/ unit wise generation, the yearly Plant Load Factor and the annual availability factors are summarized in the Table.
Station Unit No. Capacity Generation PLF (%) A.F. (%)

(MWe) (MUs)
TAPS 1 160 1312 93 96
2 160 1239 88 89
3 540 2668 56 93
4 540 2120 45 79
Station Total 1400 7339 60 87
RAPS 2 200 327 73 89
3 220 1239 64 92
4 220 1103 57 82
MAPS 1 220 730 38 68
2 220 1019 53 97

Directors' Report
Station Unit No. Capacity Generation PLF (%) A.F. (%)

(MWe) (MUs)
NAPS 1 220 83 45 93
2 220 591 43 76
KAPS 1 220 904 47 78
2 220 1126 58 97
KGS 1 220 1050 54 83
2 220 1036 54 87
3 220 410 22 24
NPCIL TOTAL 4020 16956 54 83
1. RAPS-2 was shutdown on 2nd July 2007 for en-masse replacement of feeders in Heat Transport (HT) System.
2. NAPS-1 was brought back on bar after successful completion of EMCCR and feeders replacement in HT System on 25th
February 2008. NAPS-2 was taken out on 18th December 2007 for an EMCCR.
3. KGS-3 was synchronized for the first time in this financial year on 11th April 2007. The generation includes infirm generation
prior to commercial operation.
ONGOING PROJECTS
Kaiga Atomic Power Project-4 (220 MWe PHWR)
Kaiga-4 achieved the physical progress of 96.7% as on 31st March 2008. The light water commissioning of the unit is over and it is in the
state of readiness for draining and drying, taking up fuelling and approaching towards its first criticality.
Rajasthan Atomic Power Project-5&6 (2x220 MWe PHWR)

The construction works for RAPP-5 have registered physical progress of 99% as on March'08. The Unit is ready for fuel loading. RAPP-6
has registered physical progress of 88% as on March 2008. Concreting of OC Dome, Erection of Headers, Steam Generators, Main Air
Lock and Emergency Air Lock, etc. have been completed. Feeder fabrication at shop is nearing completion.
Kudankulam Nuclear Power Project -1&2 (2x1000 MWe VVER)

The Kudankulam project, located in Tirunelveli district of Tamilnadu, is being implemented with Technical Co-operation from Russian
Federation within the framework of the Inter-Governmental Agreement signed between India and Russian Federation.
The project has recorded a cumulative physical progress of 80.8% up to March 2008 (Unit-1: 84.6% and Unit-2: 75.3%) with
cumulative expenditure of Rs.10, 528 crores against an approved cost of Rs.13171 crores. The break up of progress has been; Design -
89%, Supplies - 87% and Erection - 78%.
The year marked erection completion of all the heavy lift equipment including Reactor Pressure Vessel (RPV), Pressurizer, Steam
Generators, Reactor Coolant Pump, Emergency Air lock and Main Air Lock in Unit-1. Highly complex welding and cladding of the Main
Coolant Piping (MCP) for the reactor primary circuit was commenced. Passive Heat Removal System (PHRS) heat exchangers have also
been erected in Reactor Building-1. Pre-commissioning works on various equipment and systems have also commenced.
The steel liner dome has been erected in unit 2 and concreting works for inner containment dome are nearing completion. The Polar
Crane, Reactor Pressure Vessel (RPV), Pressurizer and Steam Generators have been erected.
NEW PROJECTS
The Government of India, in October 2005, conveyed its approval in principle for the setting up of additional units at the existing sites at
Kakrapar (KAPP-3&4 - 2x700 MWe PHWRs) and Rawatbhata (RAPP-7&8 - 2x700 MWe PHWRs), Kudankulam (KKNPP-3&4 2x1000
MWe LWRs) and a new site at Jaitapur, Maharashtra (i.e. 2x1000 MWe LWRs). Pre-project activities have been initiated at these sites
as follows.

Directors' Report
Kakrapar Atomic Power Project-3&4

The Ministry of Environment & Forests accorded the environmental clearance for the Project. Applications for seeking consent of
Siting, Excavation and First Pour of Concrete have been submitted to the Atomic Energy Regulatory Board (AERB). For setting up
infrastructure facilities at plant site and residential colony, the drawings and other details are being finalised for taking up the
construction activities.
Rajasthan Atomic Power Project-7&8

The Ministry of Environment & Forests (MOEF) has conveyed environmental clearance. Plant lay out is worked out and is under review.
Kudankulam Nuclear Power Project-3&4 (KKNPP-3&4)

Application for Siting consent was submitted to AERB. The Environment Impact Assessment (EIA) was carried out and report along with
requisite application submitted to Tamil Nadu Pollution Control Board for environmental clearance. The public hearing was conducted
and application for clearance from environmental angle has been submitted to Ministry of Environment & Forests. Geotechnical
investigation work has been completed. Tendering and evaluation of the bids for site grading is completed and Work order for the same
has been issued.
Jaitapur Nuclear Power Project (JNPP)

The Government of Maharashtra has issued gazette notifications under Sections 4, 6 and 11 of the Land Acquisition Act, 1894. A liaison
office has been operational at Ratnagiri for coordinating various activities with District Administration and other agencies.
Simultaneously, various pre-project activities are being undertaken.
NEW INITIATIVES AND BUSINESS DEVELOPMENT

The Business Development Group is examining new areas of opportunities in related areas of power generation and manufacture. The
10MW wind farm set up at Kudankulam performed well and action is being taken to enhance capacity by another 10MW.
An MOU has been signed with Tehri Hydro Electric Development Corporation for exploring the possibility and setting up of Pumped
Storage Scheme were found feasible and economically viable. Government of Maharashtra has allotted two potential sites at Malshej
Ghat and Humbarli. Techno Economic viability study is being carried out to find the business potential.
A Memorandum of Understanding has been signed between NPCIL and BHEL to explore possibilities and evaluate options for
manufacture of Steam Turbine Generator sets of 700MW rating and above.
ENGINEERING & PROCUREMENT

The Directorate is in the process of finalizing 2x700 MWe PHWR design. First two units of this design are planned to be constructed at
Kakrapar followed by two units at Rawatbhata. The plant layout for these has already been finalized. Tender specifications for the Long
Delivery Equipment have been finalized and are being issued. The details for the major EPC packages for the project are in the advanced
stages of finalization.
Keeping the future expansion programme in view, developing new vendors for critical items has always been a key objective. In this
regard, development of Incoloy 800 Tubes, one of the most critical components for Steam Generators manufacture, is likely to be
completed soon.
Engineering support to operating plants for resolving design related issues and plant upgradation is being provided. Prominent amongst
these are repair of End Shield in Kaiga-3, EMCCR of NAPS & KAPS-1.
During the year, two projects of Kaiga-3&4 and RAPP-5&6 were in the advanced stages of construction and commissioning. With
respect to supplies, approximately 98% supplies of the various required equipment, and components are already available at the
respective projects.
The Directorate has been offering services to Bharatiya Nabhikiya Vidyut Nigam Ltd. (BHAVINI) by way of providing technical support
during the finalization of tender, purchase recommendation, execution of contracts and the like.
REACTOR SAFETY & ANALYSIS

The detailed safety analysis of the 700 MWe plant has been completed. Active and passive safety features to adequately address the
challenges posed by the boiling in coolant channels of the 700 MWe Pressurized Heavy Water Reactor have been incorporated.

Directors' Report
Computer codes to analyze the sequences of severe accidents leading to the core meltdown have been further advanced. The codes
have been validated against the available published literature. The Symptom Based Operating Procedures have been successfully
developed in line with the current international practices. The Safety Analysis Reports for the operating stations have been updated in a
comprehensive manner employing the safety analysis using current standards and state of the art computational methodology. This
has been done as a part of the periodic safety regulatory review for renewal of operating license for plants. Probabilistic Safety
Assessment has been initiated for external events involving Fire and Seismic scenarios. Level-1 PSA of all the stations (PHWRs and BWR)
has been completed.
The fuel loading patterns and day to day in core fuel management for all the PHWR operating stations were optimized to increase fuel
burn-up levels that considerably helped in reducing the consumption of the natural uranium fuel bundles.
To share the advanced work done by NPCIL in the frontier areas of Safety and Reliability with the international community, an
International Conference on Reliability, Safety and Quality Engineering of Complex Systems was organized in collaboration with IIT,
Mumbai. An Indo-Japanese Seminar was organized in which the Indian and Japanese experts shared the developments and advances in
the nuclear safety and radiological consequences. A WANO sponsored expert level Technical Meet on improvements in safety levels
with respect to the Containment and Engineered Safety Features was also conducted.
HEALTH & SAFETY AND ENVIRONMENT MANAGEMENT

The Company is committed to its motto of “Safety First”. With its policy of maintaining the highest standards of safety, the
occupational exposures of the Company's employees working at NPPs were maintained well below the values specified by AERB using
the principle of 'As Low As Reasonably Achievable' (ALARA). The dose of radioactive effluents released in the environment by the NPPs,
was kept insignificant [less than 1% of the limit specified by the Atomic Energy Regulatory Board (AERB)]. A LAN based Standardized
Dose Management System has been developed for further strengthening the control of occupational exposures.
NPCIL-apex level-Safety Review Committee carries out the safety monitoring and review of operating NPPs. Regular Corporate
Reviews are also carried out to enhance the safety performance and safety culture at NPPs. WANO peer reviews of KGS-4, RAPS-5 &
KAPS-1&2 were also carried out during the year for getting international inputs for continuous improvement in safety & reliability.
The Environmental Management System (EMS) and Occupational Health & Safety Management System (OHSMS) as per ISO-14001:
2004 and IS-18001: 2000 respectively, have been implemented and maintained at all the stations for continual environmental and
safety improvement. A Radiation Protection Professionals' Meet was organised to identify the good practices being followed in the
stations. The routine off-site emergency exercise was conducted satisfactorily.
NPPs of the Company have registered 275 reactor years of safe operation of stations with excellent safety track record.
QUALITY ASSURANCE
The Quality Assurance (QA) Directorate has played a lead role in the continuous upgradation of Quality Management, Quality
Assurance / Surveillance, Pre-service Inspection (PSI) / In-service Inspection (ISI) and interaction with the regulatory body. The QA
Directorate has been conferred with ISO-9001-2000 re-certification, for Quality Assurance services including Quality Surveillance and
In-service Inspection in 2007. Quality Assurance / Surveillance activities have been carried out expeditiously for projects and stations.
QA Directorate has ensured timely and effective QS coverage to meet the project schedule.
The document for Corporate Management System has been prepared. It is in line with the requirements stipulated in the AERB code and
the IAEA NSR-3; it outlines the Quality Assurance requirements of all phases of Nuclear Power Plants. Based on this apex document the
second tier QA document is being prepared. Assistance from QA Directorate is being provided for preparing these second tier
document.
The QA Directorate has 13 offices located at various work centres. These offices have contributed significantly in the manufacturing of
very critical nuclear core components involving state-of-the-art technology. In addition to Company's jobs, QA Units have earned good
revenue by providing QA consultancy services to customers like Defence, BARC, L&T, BHAVINI, BHEL, various State Electricity Boards
(SEBs), etc.
Corporate QA audits of projects & stations have been completed in a planned manner.
ISO CERTIFICATION
Engineering & Procurement, Safety, R&D, Knowledge Management Directorates have been conferred with ISO-9001-2000
certification.

Directors' Report
HUMAN RESOURCE MANAGEMENT

NPCIL values its human resource as its most critical asset. As on March 31, 2008, NPCIL had a total 11,924 employees on its rolls.
Though the overall attrition rate is not significant, attrition from key segments like trained and licensed scientific manpower has been
matter of concern. HR Management strategies are being continuously evaluated and major initiatives have been taken to address the
challenges.
Improvement in the quality of work and social life, incremental compensation package, knowledge and competency development
initiatives, etc. are being pursued after proper evaluation and identification of segment specific causes affecting retention. Some of the
initiatives taken in this regard include (a) review and restructuring of performance related incentives, (b) sensitization of line
management for consistent improvements for building a culture of strong interpersonal relationship, (c) research based study of the
Organizational Climate for identifying specific areas needing attention, etc.
Staffing is being done strictly in accordance with the optimized manpower models for Projects, Stations and Headquarters, including
multi-Unit Sites. An approach document focusing on 10-year projection of the manpower needs, both scientific and technical, in
different scenarios has been prepared.
Training and Development initiatives included, besides a well developed internal training program, sponsoring employees for acquiring
higher education in technology, management, safety, fire services, etc.
A new induction and career progression for completely professionalizing non-technical functions, the policy for professionals in HR,
Finance and Contracts & Materials Management has been developed and is implemented.
Implementation of Reservation Policies
SC/ST/OBC Reservation policies are being fully complied with and development of SC/ST personnel is being given paramount
importance. Training programmes were also organized for sensitizing operating level personnel on the policies and procedures relating
to reservation in service for SC/ST/OBC/PWD for effective implementation of the policies.
Employee Relations and Welfare
Harmonious employee relations prevailed at all Stations, Projects and Headquarters. Not a single man-day was lost due to industrial
unrest of any kind. Employee relations continued to rest on the constructive participation of officers and staff representatives in
decision making on all relevant matters. Regular meetings were held with recognized Employees' Unions and Associations in Stations,
Projects and Headquarters as well as with the Joint Consultative Committee at the apex level.
All statutory welfare measures are implemented at NPCIL Projects, Stations and Headquarters. Non-statutory welfare measures are
also being continuously evaluated for greater effectiveness and employee satisfaction.
Awards and Recognition for High Performers
A new scheme for conferring individual and group awards for high performance in any given sphere is being implemented in NPCIL as a
major motivational initiative. The employees of TAPS, MAPS, KAPS, KGS and RAPS 3-4 achieved special Rewards for the Excellent
Performing Station. Employees of TAPS, RAPS 1-2, NAPS, MAPS, KGS, RAPS 3-4, TAPS 3-4 and KKNPP achieved rewards for Industrial
Accident Free Period.
IMPLEMENTATION OF OFFICIAL LANGUAGE

NPCIL fully complies with the directives of the Government of India on the implementation of the Official Language i.e. Hindi. The
NPCIL Units bagged the first, second and third All-India prizes instituted by the DAE for the best house magazine. NPCIL also received
award for working towards promoting the Official Language in the category of large Public Sector Units (PSUs). A total of 28 workshops
were organized to increase knowledge of Hindi and to motivate employees to adopt Hindi for official communication. In addition, five
Scientific Hindi seminars were organised for promoting knowledge of technical subjects in Hindi, the Official Language. Oral and
Evidence Committee of Parliament on Official Language inspected Tarapur Site and commended the efforts made to encourage and
implement the use of Hindi.
VIGILANCE
NPCIL relentlessly strived towards evolving a culture of honesty, purity and transparency in the organization, integrating the system of
vigilance with business. A high degree of ethics is being instilled amongst the officers and staff of the Company to attain values such as
honesty, purity, integrity and transparency. Various training programmes were organized at Headquarters and Units with experts from
Central Vigilance Commission as faculty. Surprise as well as regular inspections were carried out by Vigilance Officers.

Directors' Report
Considerable improvement has been achieved in the system of payment to the employees as well as suppliers/contractors by
introducing e-payment system. Tenders are published and updated using NPCIL website www.npcil.nic.in for the purposes of wide
publicity and maintaining transparency. Vigilance Awareness Week 2007 was observed with various programmes.
CORPORATE SOCIAL RESPONSIBILITY

The Company is sensitive and fully committed to its responsibility towards the society. The welfare measures undertaken by NPCIL
support the community in the sphere of health, education and basic infrastructure development. The support in health measures
include organizing regular medical checkups and extending routine medical assistance and also in emergency cases, blood donation
camps, eye camps, provision of drinking water. The support in education comprises of infrastructure development essentially the school
building, laboratory equipment, furniture, teaching aids such as computers and study material to school children etc. In addition to this,
meritorious and needy tribal children are adopted for their education every year at all NPCIL sites.
Concerned equally for the environment, the Company has taken up several initiatives in this sphere as well. Significant among these
consists of development of green fields in and around its NPPs by plantation of trees, Environment Stewardship Programme (ESP), etc.
NPCIL Sites have been ISO 14001 certified for the Environment Management System.
The assistance on account of welfare activities taken up by the stations & projects of NPCIL during the year has been Rs.2.79 crores.
CORPORATE COMMUNICATIONS
NPCIL carries out a variety of programmes to disseminate information on the Company and on various aspects of nuclear power. These
programmes vary from interaction with the media to communication with schools and colleges, public personalities, decision-makers,
etc. A large number of people from various walks of life visit NPCIL plants and projects every year. Communication with media is
maintained on a continuous basis. NPCIL also publishes a variety of literature to disseminate information on nuclear power and the
Company. NPCIL participates in exhibitions at local, regional and national level showcasing the Company's achievements and the
benefits of nuclear power.
THE RIGHT TO INFORMATION ACT, 2005

Seven Assistant Public Information Officers, one at each site, one Central Public Information Officer (CPIO) and an Appellate Authority
have been appointed in NPCIL. CPIO's office has been established at the NPCIL Headquarters. The mandatory information required
under Section 4(1) (b) of the Act has been posted on the NPCIL website and the information is updated as and when required. One
Hundred and Thirty Four requests under the Act were received during the year 2007-08. Nineteen first appeals were disposed off and
four second appeals at Central Information Commission / State Information Commission level were handled during the year.
INTERNATIONAL CO-OPERATION
NPCIL has been a member of various international organisations viz. World Association of Nuclear Operators (WANO) and Candu
Owners' Group (COG). The Company has actively participated in the various programmes of these organisations to enhance the safety
and reliability of its own plants. NPCIL has also contributed to the world nuclear community by lending its experts and sharing many
good practices.
Dr. S.K. Jain, Chairman & Managing Director, NPCIL was elected the President of WANO during the last Biennial General Meeting (BGM)
in Chicago. Incidentally, New Delhi has been chosen to be the venue of the next BGM which is to be held in the year 2010. This meeting
will bring together the Chief Executives of all the nuclear plants across the world and the senior members of WANO.
As a member of the CANDU Owners' Group, which is a representative body of all utilities operating Canadian PHWRs, NPCIL exchanges
operating experiences. Experts participated in a couple of workshops in Canada where major challenges and achievements were shared
amongst members. NPCIL volunteered to offer RAPS-3&4 for a COG Benchmarking Programme for Fuel Handling Systems. This gave
a unique opportunity to compare our performance with other CANDU plants. A large number of Good Practices from RAPS was
considered for emulation by others.
The prospects of opening up of nuclear trade in India encouraged suppliers from the US, France and the Russian Federation to visit and
have exploratory discussions with NPCIL officials. The Indo-US and Indo-French Business Summits attracted a large number of industry
professionals and provided a platform to know and understand the spectrum of technologies. All the overseas participants and other
distinguished visitors at various times were overwhelmed to witness the core strength of NPCIL.
Dr. S.K. Jain, CMD, NPCIL, presided over the Governing Board Meeting in Helsinki in the capacity of the President of WANO. He was also
invited to attend the Annual Conference of Japan Atomic Industrial Forum (JAIF) in Tokyo and the Annual Conference of Korea Atomic
Industrial Forum in Seoul. He delivered the keynote address at both the conferences and had separate meetings with a large number of
business delegates and Chief Executive Officers.

Directors' Report
DIRECTORS' RESPONSIBILITY STATEMENT

As required under Section 217(2AA) of the Companies Act, 1956, the Directors confirm:
1. that in the preparation of the annual accounts, the applicable accounting standards have been followed, along with proper
explanation relating to material departures;
2. that they have selected such accounting policies and applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year
and of the profit or loss of the Company for that period;
3. that they have taken proper and sufficient care for the maintenance of adequate accounting records, in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and
other irregularities;
4. that they had prepared the annual accounts on a going concern basis.
CONSERVATION OF ENERGY/TECHNOLOGY ABSORPTION/ FOREIGN EXCHANGE EARNINGS

AND OUTGO
Information in accordance with the provisions of Section 217(1) (e) of the Companies Act, 1956 read with the Companies (Disclosure of
Particulars in the Report of the Board of Directors) Rules, 1988, regarding the conservation of energy, technology absorption and foreign
exchange earnings and outgo is given in the Annexure A to this report.
PARTICULARS OF EMPLOYEES
Pursuant to the provisions of Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees)
Rules,1975 as amended, it is hereby informed that none of the employees of the Company was in receipt of remuneration of Rs.2 lakhs
p.m. or Rs.24 lakhs p.a. during the year.
MANAGEMENT DISCUSSION AND ANALYSIS

Annexed as Annexure B to this report.
CORPORATE GOVERNANCE
The Department of Public Enterprises (DPE) has laid down guidelines on Corporate Governance for CPSEs. The Department of Atomic
Energy (DAE), the administrative ministry of NPCIL, requested to comply with the instructions contained therein. The guidelines are
similar to the Corporate Governance Clause in the Standard Listing Agreement of Stock Exchanges. In addition to corporate governance
requirements stipulated in the guidelines issued by the DPE, compliance with the code on Corporate Governance stipulated in clause
2.18 of the Listing Agreement with the National Stock Exchange (NSE) has been ensured.
The Board members and senior management have reaffirmed the compliance with the code of conduct.
A compliance report on Corporate Governance is given as Annexure-C.
The Company has obtained a certificate from M/s. Parikh & Associates, a firm of Practicing Company Secretaries regarding compliance
of conditions of corporate governance as indicated in the DPE Guidelines and the listing agreement. The Compliance Certificate is
annexed to this report as Annexure-D.
OBSERVATIONS OF THE AUDITORS

Comments of the management on the observations of the auditors are given in Annexure-E to the report.
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA

The accounts for the year ended March 31, 2008 were reviewed by the Comptroller and Auditor General (C&AG) of India. Comments
of the C&AG on annual accounts have been given as Addendum to the report.
CHANGES IN THE BOARD OF DIRECTORS

1. Dr. S.K. Jain, CMD, NPCIL, from January 2004; his tenure has been extended for a period of 2 years from May 31, 2008.
2. Shri S.K. Agrawal, Director (Projects), NPCIL, who was a Whole Time Director since September 27, 2006 passed away on January
7, 2008.
3. Shri G. Nageswara Rao, Director (Operations), has been appointed as Whole Time Director on the Board w.e.f. August 6, 2007.
4. Shri V.R. Sadasivam, Joint Secretary (F), DAE has been appointed as a part-time Director on the Board from 18 July, 2007 vice
Shri Rahul Asthana, former Joint Secretary(F), DAE.

Directors' Report
5. Shri T.S. Bhattacharya, former MD of SBI, has been appointed as a part-time Director on the Board from May 8, 2008.
6. Shri H.L. Bajaj, who had been appointed as a part-time Director on the Board w.e.f. September 27, 2006 ceased to be Director on
May 12, 2008 as per terms of his appointment.
The Board welcomes the appointment of S/Shri V.R. Sadasivam, G. Nageswara Rao and T.S. Bhattacharya and places on record its
sincere appreciation of the services rendered by Shri H.L. Bajaj and Late Shri S.K. Agrawal during their association with the Company.
APPRECIATION
The Board would like to express its gratitude to the Department of Atomic Energy, Ministry of Power, Ministry of Programme
Implementation & Statistics, Central Electricity Authority, Planning Commission, Ministry of Environment & Forests and other
Ministries and the Departments of the Government of India and various state governments for their cooperation and also to the banks,
financial institutions and other investors who have continued to repose their confidence in the Company.
The Board would also like to place on record its appreciation of the services rendered by the auditors for their service and valuable
advice.
The Board wishes to express its special appreciation of the hard work put in by each and every employee of the Company and the
cooperation extended by the Employees' Union, Supervisors' and Officers' Associations.
For and on behalf of the Board of Directors
(S.K. Jain)
Place: Mumbai
Date : July 30, 2008

Annexure 'A'
to the Directors' Report
Information under Section 217(1)(e) of the Companies Act, 1956 read with Companies (Disclosure of Particulars in the Report
of the Board of Directors) Rules, 1988 and forming part of the Directors' Report for the year ended 31st March 2008.
CONSERVATION OF ENERGY
A. Energy Conservation Measures Undertaken:
Conservation of energy has been given high priority in all the operating Nuclear Power Plants (NPPs) of NPCIL. A Head Quarter
Instruction exists to guide all the stations to take necessary measures for the conservation of energy. The following measures
were continued to be taken at the operating Nuclear Power Plants (NPPs) for the conservation of energy:
Energy Conservation Committees, which were formed in all the operating NPPs, meet periodically to review the situations and
suggest measures for energy conservation.
Energy Audit by an expert agency was carried out at two of the stations and based on its results an action plan has been prepared
for implementation. Carrying out energy audits at other NPCIL stations in the current year has been proposed.
Continuous efforts are put in to reduce heavy water, steam, light water and compressed air leaks and the consumption of the
same is closely monitored. Also consumption of various gases viz. hydrogen, nitrogen, helium, CO2, etc. is also closely
monitored. Number of running equipments has been optimized. During plant shutdown, minimum number of equipments are
kept operating for energy conservation.
B. Additional Investments and proposals for reduction of consumption of energy:
At some of the stations use of solar energy has been initiated. Solar heaters in plant canteen and solar lights at appropriate plant
areas have been installed. Bio-gas plant at Kaiga site was installed to produce heat energy from the waste generated in plant
canteen and households in township.
An extensive in-house study has been completed for reduction of consumption of energy, particularly by major loads which
vary seasonally (e.g. IDCT, CCW, etc.).
FOREIGN EXCHANGE USED/EARNED (Rupees in crores)

2007-2008 2006-2007
1. Foreign Exchange Outgo
a) Value of import based on CIF basis 1942.39 1229.98
b) Expenditure
- Project Related Payments 79.24 112.51
- Interest and Agency fees - -
- Others 21.17 29.86
2. Foreign Exchange Earned 0.08 0.11
FORM-B
A. RESEARCH & DEVELOPMENT (R&D)
1. Specific areas in which R&D is carried out:
R&D efforts in the Company are application-oriented developments addressing the specific requirements emanating from
operating stations/on-going projects/other Directorates within NPCIL. These efforts are focused towards continued
enhancement of nuclear & radiation safety, achieving reliability in operation, reduction in operational cost and project
gestation period as well as cost. R&D in NPCIL is channelised through two R&D Groups - R&D (Nuclear Systems) and R&D
(Electronics Systems).
2. Benefits Derived as a Result of the above R&D
Benefits of R&D-NS activities
The establishment of in-house development and testing facilities at R&D Centre, Tarapur has enabled the Company to carry out
the following:

Annexure 'A'
to the Directors' Report
l Techniques for repair / rehabilitation / refurbishments

l Remotely operated manipulators / tools / gadgets
l Facility for Ageing Assessment
l Safety Study Experiments
Benefits of R&D-ES activities
The establishment and maintenance of in-house Control and Instrumentation (C&I) Laboratories and facilities enabled the
Company in the 'Development and Testing' of final software for several systems including safety and safety-related systems.
The work was carried out on the prototypes at R&D-ES Laboratory and the final softwares were installed and commissioned on
the corresponding hardware panels of the various systems at three units at Kaiga-3, Kaiga-4 and RAPP-5.
Expenditure on R&D
a) Capital - Rs.178.00 Lakhs
b) Recurring - Rs. 853.23 Lakhs
c) Total - Rs.1031.23 Lakhs
d) Total R&D expenditure as % of total turnover - 0.31%
B. Technology Absorption, Adaptation & Innovation

The Company's self-reliance is near total in the areas of design, construction, commissioning and operation of Pressurised
Heavy Water Reactors. Continued efforts are made to upgrade and update Company's knowledge-base and to adapt and
absorb newer technologies that are being evolved. Boiling Water Reactors are also operated by the company meeting
international standards in both safety and performance. Assimilation of technology with respect to construction of Pressurized
Light Water Reactor as at Kudankulam and Fast Breeder Reactors in association with BHAVINI is also underway.
Innovative techniques are being introduced in reactor design to upgrade the 540 MWe PHWR to 700 MWe by permitting
limited boiling in the reactor coolant channels with minimum changes in nuclear components.

Management Discussion & Analysis
The flora of nuclear power plants also attract a variety of butteflies (Photo : Phuspanathan, MAPS)

Annexure 'B'
1.0 Power Scenario in India

The Integrated Energy Policy of the Government of India has made projections of electricity requirements for sustaining the
GDP growth rate of the Indian economy. These projections for a growth rate of 8% are given in the following table:
Year Energy Requirement (BUs) Peak demand (GWe) Installed Capacity (GWe)
2007 761 107 153
2012 1097 158 220
2017 1524 226 306
2022 2118 323 425
2027 2866 437 575
2032 3880 532 778
The share of nuclear power in electricity generation in the year 2007-08 has been about 2.5% whereas in terms of installed capacity
the share as on 31st March 2008 was about 3%. The current situation is on account of low power operation of 15 Pressurised Heavy
Water Reactors. With progressive improvement in indigenous fuel availability the share in generation has to increase beyond share
in capacity as nuclear power reactors are base load stations and a plant load factors upto 90% have been demonstrated already. The
nuclear share in the energy mix is also expected to grow with completion of projects under construction. Several studies, including
the one by DAE, have estimated the nuclear share to rise to 8.5% by 2032 and 16.5% by 2052.
2.0 Resurgence of Nuclear Power

Currently, there has been a revitalized interest in the nuclear power fraternity world over due to its advantages of low carbon
technology, environment friendliness and long-term sustainability.
The power sector contributes significantly, estimated to be in range from 40 to 50% of the total emissions to Green House
Gases emissions. Decarburization of the energy/ power sector is one of the key recommendations made by various agencies
recent being Intergovernmental Panel on Climate Change report (2007) in this regard.
The life cycle emissions (from mining of ore to waste disposal) from nuclear power are very low, between 9 to 21 grams CO2
equivalent / kWh against 966 to 1,306 in case of coal; and 439 to 688 in case of gas technologies.
GREENHOUSE GAS EMISSIONS FROM ELECTRICITY PRODUCTION

Indirect, from life cycle
289
Direct emissions from burning

Twin bars indicate range
grams CO 2equivalent / kWh
176
1017
113
790
77
575
280
362
236
100
21
10
48
9
4
Coal Gas Hydro Solar PY Wind Nuclear

Source : IAEA 2000
2.1 Global Nuclear Power Scenario

The global nuclear power contribution during the year 2007 was about 15.4%. However, in advanced countries the nuclear
power share in the energy portfolio is quite significant as evident from the statistics depicted below:

Annexure 'B'
NUCLEAR SHARE IN ELECTRICITY GENERATION IN 2007
FRANCE 76.8
LITHUANIA 64.4
SLOVAKIA 54.3
BELGIUM 54.0
UKRAINE 48.1
SWEDEN 46.1
ARMENIA 43.5
SLOVENIA 41.6
SWITZERLAND 40.0
HUNGARY 36.8
SOUTH KOREA 35.3
BULGARIA 32.1
CZECH REP. 30.2
FINLAND 26.9
JAPAN 27.5
GERMANY 25.9
USA 19.4
SPAIN 17.4
CANADA 16.0
RUSSIA 16.0
UK 15.1
ROMANIA 13.0
ARGENTINA 6.2
SOUTH AFRICA 5.5
MEXICO 4.6
METHERLANDS 4.1
BRAZIL 2.8
INDIA 2.5
PAKISTAN 2.3
CHINA 1.9
0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 (%)
Source: PRIS, IAEA

The merits of nuclear power have brought a change of mind-set of many countries world over and these nations are thinking of
opting for nuclear power as a source of electricity. Several countries including the US, France, Japan and China have proposed
about 220 nuclear power reactors construction in the long term. Presently worldwide, there are 441 reactors in operation and
35 nuclear reactors under construction world over including 6 in India.
2.2 Role of Nuclear Power in long-term energy security of India
India is not an energy resource rich country. All energy sources, therefore, need to be exploited to meet the growing electricity needs
of the country. Nuclear power, currently supplementing the demand of electricity, is expected to play a significant role in future.
The importance of nuclear energy, as a sustainable energy resource for our country, was recognised at the very inception of
nuclear power programme conceived more than four decades ago under the able guidance of Homi Jehangir Bhabha. A three-
stage nuclear power programme, based on a closed nuclear fuel cycle, was then chalked. The three stages of the programme are:
§ Natural uranium fuelled Pressurised Heavy Water Reactors (PHWRs) in the first stage;
§ Fast Breeder Reactors (FBRs) utilising plutonium based fuel extracted from the spent fuel of the first stage; and
§ Advanced nuclear power systems for utilisation of thorium.

The three stage programme has been found to be robust and on course. All facets of nuclear technology - siting, design,
engineering, construction, commissioning and operation have been mastered. The Indian Industry and different organizations
of the Department of Atomic Energy have very significantly contributed in bringing the country to current status of nuclear
power and are poised to take on greater responsibilities. The performance of Indian Nuclear Power Stations in safety and
reliability in operation has been demonstrated comparable to international benchmark.
Thus, the first stage of the Nuclear Power Programme, comprising of PHWRs has reached to a state of commercial maturity.
The second stage, comprising of FBRs has been fully developed and is launched with the construction of 500 MWe PFBR. The
third stage, aiming at direct utilization of the Thorium, is also developed on pilot scale. The commercial development and
deployment of technology of this stage, however, is expected to take some time.
2.2.1 Current Status of 1st Stage
Based on the experience gained so far, the current technology deployed in the country for generation of nuclear power is the
PHWRs of the first stage. The standard size of these reactors has been 220 MWe. This size was adopted for compatibility with
the grid capacity available at the time of introduction of nuclear power in the country. As the grid capacity evolved and large
carrying capacities became available, the 220 MWe design was scaled up to 540 MWe. Two units of 540 MWe each have been
successfully set up at Tarapur, Maharashtra.
The design has been further scaled up to 700 MWe by permitting limited boiling of coolant, using the same core as that of 540
MWe. Thus, a larger power output is being derived with minimum changes in hardware. The 700 MWe PHWRs will bring the
economies of scale. Setting up of 8 reactors of 700 MWe each will take the total PHWR capacity to 10,000 MWe, thus
completing the first stage of the programme.
3.0 Significant Achievements in Nuclear Power Technology
3.1 Nuclear Power Plant Operations
Nuclear Power Plants in India have registered high availability factor, excellent safety performance and long continuous operation
comparable to international standards in this regard. The performance of the operating plants is depicted in the figures below:

Annexure 'B'
AVG. AVAILABILITY FACTOR OF UNINTERRUPTED RUN

NPCIL'S REACTORS (No. of Days)
372
373
529
252
272
289
236
100
80
No. of Days
A.F. (%)
60
40
20
0
99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 TAPS-2 KAPS-2 NAPS-2 TAPS-1 KAPS-1 RAPS-4 KAIGA-1
3.2 Renovation & Modernization

NPCIL has developed and carried out unique R&M activities in its stations, namely
Enmasse Coolant Channel Replacement and safety upgrades which have been
successfully carried out at four reactors (Rajasthan Atomic Power Station 2, Madras
Atomic Power Station 1&2 & Narora Atomic Power Station -1) with indigenous
technology. En-Masse Feeder Replacement was carried out for the first time in the
world, in a PHWR at Madras Atomic Power Station-1. It has also been carried out
subsequently at Narora Atomic Power Station-1 and is presently near completion at
Rajasthan Atomic Power Station-2.
3.2.1 Safety Upgrades:
The health assessment and safety upgrades of Tarapur Unit-1&2, two boiling water reactors that commenced operation in
the year 1969 and are now in their 39th year of operation, has been carried out using the latest and advanced techniques.
These safety upgrades, matching current international standards of safety, include strengthening of standby power supply
systems, Electrical system upgradation, unitization of shared systems, fire safety, elimination of common cause failures etc.
These measures have enhanced further the safety and plant life of TAPS -1&2. These reactors have operated with 90%+
annual plant load factors.
Atomic Energy Regulatory Board (AERB), based on in-depth review of health assessment and safety upgrades, has accepted
continued operation of the TAPS 1&2.
3.3 Project Construction
NPCIL has re-engineered the Nuclear Power Projects execution methodology and achieved reduction in gestation period. The
construction and commissioning of TAPS 3&4 and Kaiga-3 in 5 years with substantial cost savings further endorse this. The
contribution of Indian industries, DAE units namely UCIL, ECIL, NFC and EPC Contractors etc. in achieving faster completion of
the projects has also been appreciable.
4. Future Plans-Road ahead

Under the aegis of the DAE, vision was to achieve 20,000 MWe by the year 2020 through reaching a PHWR capacity of
10,000 MWe, five FBRs of 500 MWe, including PFBR under construction, by BHAVINI, an Advanced Heavy Water Reactor of
300 MWe by BARC and eight LWRs through the foreign co-operation, including KK-1&2 under construction.
The XI Plan (2007-2012) proposals envisage commencement of work for setting up of eight indigenous 700 MWe PHWRs, an
Advanced Heavy Water Reactor (AHWR) of 300 MWe by BARC and project activities for setting up of two FBRs, by BHAVINI.
Considering availability of international commerce in nuclear power, setting up of ten LWRs of about 1,000 MWe each, based
on foreign co-operation has also been proposed for XI Plan. Based on the proposals of the XI Plan, summary of the projected
capacity build up is as follows:

Annexure 'B'
NUCLEAR CAPACITY BUILD-UP

(with X Plan Ongoing Schemes and New Schemes of XI Plan)
23180
19780
With international co-operation
Without international co-operation+KK-1&2
14380
13180
12680
11780
MWe
10380
9280
8680
7280
7280
7280
7280
7280
7280
7280
5780
5780
4560
4560
4120
4120
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
5. Concerns
The nuclear power tariffs are currently competitive with those of thermal power stations located away from coal pitheads. The
tariff of one station TAPS 1&2 is 94 paise/kWh and that of three stations MAPS, NAPS, KAPS below Rs.2. In the year 2007-08
the average tariff of NPCIL nuclear power stations was Rs.2.28. The nuclear power stations have an advantage of low fuel costs
and longer life resulting in competitive costs for electricity generation.
With measures such as increasing the unit size of future reactors, an appropriate mix of debt: equity, reduction in the gestation
period, the nuclear power would be further competitive. However, the perceived challenges for NPCIL include:
Nuclear power tariffs, being front-loaded, are higher in the first few years of commercial operation. Though the tariffs of NPPs
are comparable to thermal stations located away from pithead locations, there is pressure on tariffs particularly in the initial
years for new builds.
Low Power Operation of NPPs
The PHWRs of NPCIL (14 Nos. 3700 MWe) are currently being operated at reduced power levels to match the fuel supply for nuclear
reactors (PHWRs) using indigenously produced uranium. With the augmentation of fuel supply from indigenous sources by the
Government of India, the high plant load factors, which the company has already demonstrated, is possible progressively.
Attrition of Qualified Manpower
Due to the rapidly growing opportunities and attractive pay packages being offered in the job market, attrition of experienced
professionals of NPCIL has gone up. This, coupled with limitations in attracting new talent from reputed institutions, is an HR
issue. NPCIL has instituted several measures to address this issue.
6. Conclusion
Nuclear Power, by virtue of its environmental friendliness, long-term energy security and a huge potential for electricity
generation in the country, is expected to play a key role in India's electricity portfolio. There is considerable scope for the growth
of nuclear power in the country. The nuclear power growth in India is planned based on over 280 reactor years of operational
experience gained so far. The further expansion of the programme is through 700 MWe capacity PHWRs (of first stage), FBRs (of
the second stage) and advanced Thorium-fed power reactors (of the third stage) by sequential execution of indigenous three
stage Nuclear Power Programme.
Recognizing the imperative of significant nuclear power capacity addition in the near term and as an additionality to the
indigenous programme, setting up of LWRs based on foreign co-operation, efforts are being put in accessing international
technology by the Government of India.
The domain of NPCIL encompasses diverse activities in nuclear power viz. siting, design, construction, commissioning,
operation, renovation and modernization, plant life management, decommissioning and waste management. NPCIL
has qualified, trained, experienced and licensed manpower, strong financial position, experience in execution of diverse
nuclear technologies (BWRs, PHWRs and LWRs). NPCIL is in strong position to take up the ambitious nuclear power
programme in the country.
We at NPCIL are, thus, on course with the present programme and ready to take up future challenges.

Annexure 'B'
FINANCIAL PERFORMANCE ANALYSIS

The financial performance of NPCIL for the last 10 years along with key financial ratios is summarized as “Performance at a glance”.
Performance at a glance
(Rupees in Crores)
For the Year 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-00 1998-99
Sales and Other Income 4,266 4,654 4,186 3,967 5,501 4,840 4,620 3,755 2,481 2,118
Total Expenditure 1,874 1,915 1,793 1,563 1,649 2,390 2,298 1,953 1,535 1,326
Interest 455 343 235 279 342 355 414 327 157 155
Depreciation 734 664 361 283 457 472 496 353 236 209
Profit for the Year 1,203 1,733 1,797 1,843 3,054 1,622 1,412 1,123 552 428
Profit Before Tax 1,205 1,726 1,776 1,838 2,970 1,614 1,662 1,123 223 402
Profit After Tax 1,079 1,571 1,713 1,705 2,604 1,509 1,549 825 85 362
Dividend 324 471 514 342 521 269 102 163 61 50
At the End of Year
Gross Block 16,595 15,060 12,662 9,197 8,945 8,473 8,223 8,109 4,640 3,155
Net Block 11,221 10,454 8,739 5,673 5,727 5,815 6,039 6,382 3,230 2,026
Total Fixed Assets 25,067 24,229 21,875 18,410 14,797 11,884 10,205 9,357 8,953 8,268
Investments 2,451 2,936 3,094 3,023 2,647 15 340 264 0 0
Current Assets 7,694 7,389 4,405 5,804 7,189 7,165 4,806 4,452 3,598 3,142
Current Liabilities 944 1,358 1,269 1,276 1,363 1,079 888 1,970 2,248 2,188
Net Current Assets 6,750 6,031 3,136 4,528 5,825 6,086 3,918 2,482 1,350 954
Total Assets 34,269 33,196 28,105 25,960 23,270 17,985 14,463 12,104 10,319 9,243
Inventories 361 356 268 216 229 216 229 184 156 166
Sundry Debtors 429 585 373 496 880 3,203 2,484 2,096 1,642 1,469
Share Capital 10,145 10,145 10,145 10,145 9,245 8,032 6,383 5,530 4,944 4,149
Reserves 10,595 9,895 8,867 7,743 6,426 4,410 3,205 1,662 1,016 1,000
Misc. Expenditure W/o - - - - - - (0) (0) (16) (21)
Networth 20,740 20,040 19,012 17,889 15,672 12,442 9,587 7,191 5,944 5,127
Capital Reserve &

Other Funds 1,446 1,396 1,313 1,224 1,313 1,305 1,055 801 584 424
Borrowings 12,083 11,761 7,780 6,848 6,286 4,238 3,822 4,112 3,774 3,671
Total Liabilities 34,269 33,196 28,105 25,960 23,270 17,985 14,463 12,104 10,319 9,243
Total # of shares
(FV-Rs.1000/-) 101,453,327 101,453,327 101,453,327 101,453,327 89,321,727 76,971,727 58,109,127 48,999,127 41,487,927 37,583,327
Generation (MUs) 16,964 18,785 17,354 16,709 17785 19242 19,199 16,621 12,460 11,174
Capacity Factor (%) 54 63 74 76 81 90 85 82 80 75

Annexure 'B'
Performance at a glance
Key Ratios 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-00 1998-99
Liquidity
Current Ratio 8.15 5.44 3.47 4.55 5.27 6.64 5.41 2.26 1.60 1.44
Quick Ratio 7.77 5.18 3.26 4.38 5.10 6.44 5.15 2.17 1.53 1.36
Solvency
Debt to Equity 0.58 0.59 0.41 0.38 0.40 0.34 0.40 0.57 0.63 0.72
Debt to Asset 0.35 0.35 0.28 0.26 0.27 0.24 0.26 0.34 0.37 0.40
Interest Cover 5.25 7.99 10.16 8.63 11.27 6.90 5.61 5.51 6.01 5.11
Profitability
Return on Sales 25% 34% 41% 43% 47% 31% 34% 22% 3% 17%
Return on Equity 5% 8% 9% 10% 17% 12% 16% 11% 1% 7%
Return on Assets 3% 5% 6% 7% 11% 8% 11% 7% 1% 4%
Gross Profit Margin 56% 59% 57% 61% 70% 51% 50% 48% 38% 37%
Net Profit Margin 39% 45% 49% 53% 62% 41% 40% 39% 29% 28%
Efficiency
Fixed Asset Turnover 17% 19% 19% 22% 37% 41% 45% 40% 28% 26%
Total Asset Turnover 12% 14% 15% 15% 24% 27% 32% 31% 24% 23%
Debtors Turnover Ratio 9.94 7.95 11.23 7.99 6.25 1.51 1.86 1.79 1.51 1.44
Average Collection
Period (days) 37 46 32 46 58 242 196 204 242 253
Earnings per share (Rs.) 106 155 169 180 315 227 282 177 21 108
Book Value per share (Rs.) 2044 1975 1874 1763 1755 1616 1650 1468 1433 1364
Dividend per share (Rs.) 31.89 46.45 50.70 36.00 63.00 40.50 18.50 16.50 15.00 15.00

Annexure 'B'
Financial Ratios at a glance
Name of Ratio Ratio Comments

Liquidity Ratios
Current Ratio 8.15 Company has sufficient liquidity to meet its short-term maturing
obligations.
Quick Ratio 7.77 Company has sufficient funds to cover all its immediate and long
term obligations.
Solvency Ratios
Debt to Equity Ratio 0.58 Company is currently executing projects involving huge capital
outlays, predominantly through internal accruals. No equity support
has been availed from the Government of India during last four
years. Prospects for future financing through debt are good.
Interest Coverage Ratio 5.25 times Company's earnings adequately cover fixed charge liabilities.
Profitability Ratios
Gross Profit Margin 56%} Company has been able to keep production costs at optimum level.
Net Profit Margin 39%}
Return on Equity 5% RoE is lower due to increase in reserves. Company is currently
executing some key projects involving huge outlay, returns on which
are expected to materialize over the next few years, which would
result in higher RoE in future.
Efficiency Ratios
Fixed Asset 17% Considered good for the electricity generating companies.
Turnover Ratio
Average Collection period 37days Company has been efficient in collection of receivables and average
outstanding period has been reduced.
WORKING CAPITAL
The net working capital was Rs.6,750 crores as on March 31, 2008 against Rs.6,031 crores as compared to previous year. The
Company plans to further optimize the working capital requirement to improve the financial position.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has adequate internal control system commensurate with the nature and size of business which meets the objectives
of efficient use and safeguarding of resources, compliance with statutes, policies and procedures and maintaining accuracy of
recording of transaction and reporting the same promptly. The scope of internal audit involves examination and evaluation of the
adequacy and the effectiveness of system of internal accounting system & procedures and other operational areas. Independent
firms of Chartered Accountants who are appointed with the approval of the Audit Committee carry out the internal audit. The
observations raised out of the audit are subject to periodic review and compliance monitoring by Audit Committee.

Report on Corporate Governance
'Spot-billed Pelican' is a threatened bird found in the environs of KKNPP and MAPS. NPCIL volunteers have recently documented its
distribution in 4 districts of Tamil Nadu (Photo : A.I. Siddiqui, NPCIL)

Annexure 'C'
Corporate Governance
1. COMPANY'S PHILOSOPHY ON CORPORATE GOVERNANCE

NPCIL's business philosophy appreciates the need of upholding the highest standard of corporate governance in its
operations. The management of the Company believes that strong and sound corporate governance is an important
instrument of protection of stakeholders and good corporate governance practices would enable it to face the challenges of
growth effectively and successfully.
2. BOARD OF DIRECTORS
Composition of the Board
Presently, the Board comprises four whole time directors, including Chairman & Managing Director, and nine non-
executive directors.
All directors, including non-executive directors are professionals and have wide experience in their respective fields. A
brief resume of all the directors is given in this annual report elsewhere.
The Board functions either as a full board or through committees constituted by it. The Board of directors and its
committees meet at regular intervals. A table showing present composition of the Board and attendance of the
members of the Board at Board Meetings held during the year is given below:
Year 2007-08
Five meetings of the Board of Directors were held during the year on 5.5.2007, 7.7.2007, 15.09.2007, 18.12.2007 and
31.03.2008. The attendance of directors was as follows:
Name of Board Member Board meetings Attendance at No. of other No. of

attended during last AGM (August Directorships Committees on
the year 3, 2007 which Chairman/
Member apart
from NPCIL
Dr. S.K. Jain Five Yes (one) Nil
CMD, Bharatiya
Nabhikiya Vidyut
Nigam Ltd.
(BHAVINI)
Executive Non-Independent Directors (Whole Time Directors)
Shri S.A. Bhardwaj, Five Yes Nil Nil
Shri J.K. Ghai, Five Yes Nil Nil
Shri G. Nageswara Rao Three Not applicable Nil Nil
(appointed w.e.f. 6.8.2007)
Shri S.K. Agrawal Four Yes Nil Nil
(Passed away on
January 7, 2008)
Non-executive Non-Independent Directors (Government Directors)
Shri V. P. Raja, Four Yes (One) (One)
(appointed w.e.f. 8.6.07) BHAVINI As Member, Audit
Committee
Shri V.R. Sadasivam
(appointed w.e.f. 18.7.2007) One Yes (Four) (Four)
1. BHAVINI As
2. Electronics Member,
Corporation Audit
of India Ltd. Committee
(ECIL)

Annexure 'C'
Name of Board Member Board meetings Attendance at No. of other No. of

attended during last AGM (August Directorships Committees on
the year 3, 2007 which Chairman/
Member apart
from NPCIL
3. Indian Rare
Earths Ltd.
(IRE)
4. Uranium
Corporation of
India Ltd.
(UCIL)
Shri R.C. Joshi (ceased Nil Not Applicable (One) (One)
to be Director w.e.f. BHAVINI As Member,
June 5, 2007 (also ceased to Audit Committee
be Director of
BHAVINI)
Non-executive Independent Directors (Part-time Directors)
Dr. S. Banerjee, Four Not attended (One) Nil
BHAVINI
Shri Rakesh Nath Three Yes Nil Nil
Shri H.L. Bajaj Four Yes Nil Nil
(ceased to be Director
on 12.05.2008)
Shri S.P. Sethi One Yes (One) Nil
BHAVINI
Shri Anand Mohan Two Not attended Nil Nil
Shri Chandan Roy Two Not attended (Five) Nil
1. NTPC Ltd.
2. Ratnagiri Gas
& Power
Pvt. Ltd.
3. Damodar Valley
Corporation
4. NTPC Vidyut
Vyapar Nigam
Ltd.
5. Northern Coal
Fields Ltd.
Dr. G.K. Pandey Three Yes Nil Nil
Shri T.S. Bhattacharya N.A. N.A. Nil Nil
(appointed w.e.f.
May 8, 2008)
For the purpose of reckoning Chairmanship/ membership of the Committees, only Audit Committee and the Investors'
Grievance Committee have been considered.
The following are the Permanent Invitees to the meetings of Board of Directors:
1. Shri V.C. Agrawal, Director (HR), NPCIL
2. Shri Umesh Chandra, Sr. Executive Director, NPCIL
3. Shri S. Thakur, Executive Director, NPCIL
The Company has a process to provide the information to the Board as required under Annexure IV of the Guidelines on
Corporate Governance for Central Public Sector Enterprises (CPSEs), 2007 issued by the Department of Public Enterprises
(DPE) and Annexure to clause 2.18 of the Listing Agreement for the debt securities which was followed.

Annexure 'C'
Code of Conduct
The Board of Directors has laid down Code of Conduct for the Board members and senior management personnel of the
Company. A copy of the Code is available on the website of the Company.
All the members of the Board and Senior Management Personnel have affirmed compliance of respective Code of Conduct
during the financial year ended on March 31, 2008.
The following are the sub-committees of the Board:
1. Board Sub-Committee on Contracts & Purchases.
2. Board Sub-Committee on Resource Mobilisation.
3. Audit Committee.
4. Bonds Allotment/Transfer Committee.
5. Shares Allotment/Transfer Committee.
6. Investors' Grievance Redressal Committee.
3. AUDIT COMMITTEE
Composition
The Audit Committee consists of four members and out of which three are Non-Executive Independent Directors. The members
of audit committee are experienced and have fair knowledge of project finance, accounts and corporate laws. The Director
(Fin.) and General Manager (F&A) are the Permanent Invitees at the meetings and the Statutory Auditors attend as Special
Invitees. The Internal Auditors are also invited, on rotation basis (unit-wise), at Audit Committee meetings for participation in
discussions.
Number of meetings held and the dates on which they were held.
Four meetings of the Audit Committee were held during the year 2007-2008. The meetings were held on 05.05.07, 03.07.07,
24.10.07 and 22.02.2008. The present composition of the Audit Committee is given below:
Name of the Member / Secretary Category Number of meetings

attended
Shri Rakesh Nath, Chairman, CEA, Delhi Chairman Three
Shri Anand Mohan, Exe. Director (SRTS-1), PGCIL Member Four
Dr. G.K. Pandey, Adviser,
Min. of Environment & Forests Member Three
Shri V.R. Sadasivam, Jt. Secretary (Finance), DAE
(Appointed w.e.f. 15.9.2007) Member ---
Shri J.K. Ghai, Director (Finance), NPCIL Permanent Invitee Four
Shri V. Nagabhushana Rao, GM(F&A), NPCIL Permanent Invitee Four
None of the above directors has any material pecuniary relationship or transactions with the company, its management, which
in the judgment of the Board may affect independence of judgment of the director.
Role of Audit Committee
The terms of reference of the Committee are spelt out in Section 292A of the Companies Act, 1956, as applicable under the
Model Listing Agreement for Debt Securities notified by the SEBI and Guidelines on Corporate Governance for CPSEs 2007.
The role of the audit committee shall include the following:
1. Oversight of the company's financial reporting process and the disclosure of its financial information to ensure that the
financial statement is correct, sufficient and credible.
2. Noting appointment and removal of external auditors. Recommending the fixation of audit fee of external auditors and
also approval for payment for any other services.
3. Reviewing, with the management, the annual financial statements before submission to the board for approval, with
particular reference to:
a. Matters required to be included in the Directors' Responsibility Statement to be included in the Board's report in terms
of clause (2AA) of section 217 of the Companies Act, 1956.

Annexure 'C'
b. Changes, if any, in accounting policies and practices and reasons for the same.
c. Major accounting entries involving estimates based on the exercise of judgment by management.
d. Significant adjustments made in the financial statements arising out of audit findings.
e. Compliance with listing and other legal requirements relating to financial statements.
f. Disclosure of any related party transactions.
g. Qualifications in the draft audit report.
4. Reviewing, with the management, the financial statements before submission to the board for approval.
5. Reviewing, with the management, performance of statutory and internal auditors, adequacy of the internal control systems.
6. Reviewing the adequacy of internal audit function, if any, including the structure of the internal audit department, staffing and
seniority of the official heading the department, reporting structure coverage and frequency of internal audit.
7. Discussion with internal auditors any significant findings and follow up thereon.
8. Reviewing the findings of any internal investigations by the internal auditors/auditors/agencies into matters where there is
suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the board.
9. Discussion with statutory auditors before the audit commences about the nature and scope of audit as well as post-audit
discussion to ascertain any area of concern.
10. Looking into the reasons for substantial defaults in the payment to the debenture holders, shareholders (in case of non payment
of declared dividends) and creditors.
11. Reviewing the follow up action on the audit observations of the C&AG audit.
4. REMUNERATION COMMITTEE
The company follows Government of India pattern of pay scales and Dearness Allowance for its employees. The perks available
to the employees are broadly based on the pattern followed by the Government of India for its employees or as available to the
employees of other PSEs of the Government of India. The same principle is applicable in case of remuneration and perquisites
of whole time directors. Presently no sitting fees are being paid to any Director for the meetings attended by him. In view of
this, the Company has not constituted any Remuneration Committee.
5. BOARD SUB-COMMITTEE ON CONTRACTS & PURCHASES
This Sub-Committee is entrusted with the responsibility of implementing the decisions of the Board relating to Contracts &
Purchases for the Company which are above the delegated powers of the officers of the Company and upto a limit of Rs.100
crores. The Committee meets from time to time, depending upon the requirements of the business.
Present Composition of the Committee
1 Shri S.K. Jain, CMD, Chairman
2 Shri S.A. Bhardwaj, Director (Tech.) Member
3 Shri J.K. Ghai, Director (Finance) Member
4 Shri V.P. Raja, Principal Advisor, DAE, Member
5 Shri V.R. Sadasivam, Joint Secretary (Finance), DAE Member
6 Shri S.C. Goeal, ED (C&MM) Permanent Invitee
7 Shri V. Nagabhushana Rao, GM(F&A) Permanent Invitee
6. BOARD SUB-COMMITTEE ON RESOURCE MOBILISATION

This Sub-Committee considers the requirements of funds raising from the market for the Ongoing projects of the Company as
per the approval received from the Government of India and decides various modalities for the same. This Committee has also
been assigned the additional responsibility of considering disposal of Bonds in the market received from the SEBs against the
outstanding dues in accordance with the recommendations of the Ahluwalia Committee.

Annexure 'C'
Composition
1 Shri S.K. Jain, CMD Chairman
3 Shri V.P. Raja, Principal Advisor, DAE Member
5 Shri V. Nagabhushana Rao, GM(F&A) Permanent Invitee
7. SHARES ALLOTMENT/TRANSFER COMMITTEE

This Committee considers the allotment and transfer of Shares and issuance of share certificates and other matters incidental
thereto. The sub-committee presently comprises the following members:

3 Shri V.P. Raja, Principal Advisor, DAE Member
8. BONDS ALLOTMENT/TRANSFER COMMITTEE

The Committee considers the allotment of Bonds to the applicants and subsequent transfers of holdings, issuance of bond
certificates and other matters incidental thereto.
Composition
9. INVESTORS' GRIEVANCE REDRESSAL COMMITTEE

The present composition of the Committee is given below:
Composition
1 Shri V.P. Raja, Principal Advisor, DAE Chairman
3 Shri Anand Mohan, ED(SRTS-1), PGCIL Member
The committee is vested with the following powers:

a) To look into/monitor investors' complaints like transfer of bonds/debentures/securities, non-receipt of interest,
redemption proceeds, etc.
b) To investigate any activity within its terms of reference.
c) To seek information from any employee.
d) To obtain outside legal or other professional advice.
e) To secure attendance of outsiders with relevant expertise, if it considers necessary.
f) To advise on the matters relating to rendering of services to the Investors.
The Company Secretary acts as the Secretary to the Committee and also as compliance officer to liaise with the regulatory
authorities.
One meeting of the Committee was held during the year on 31st March 2008. The following were present at the meeting:
1. Shri V.P. Raja Chairman
2. Shri Anand Mohan Member
3. Shri J.K. Ghai Member

Annexure 'C'
Name, Address, telephone number of the compliance officer:

Shri Srikar R. Pai, Company Secretary,
16th Floor, Centre-1, World Trade Centre,
Cuffe Parade, Mumbai-400 005.
Tel. Nos.( O) 022-22180281 (Fax)022-2218 5464.
Subsidiary Company
The Company has no subsidiary.
Details of the bond holders' grievances received during the year:

Queries received from the bondholders were replied to promptly. As on March 31, 2008, no complaints were pending.
10. DISCLOSURES
1. During the year, there were no transactions of material nature with the directors or their relatives or the management that
had potential conflict with the interest of the Company.
2. There were no instances of non-compliance on any matter related to the capital markets, during the last three years.
3. The Company has complied with the "Corporate Governance Guidelines for CPSEs" issued by the Department of Public
Enterprises as directed by the DAE and quarterly compliance reports have been regularly submitted to the DAE.
4. The company is in the process of documenting appropriate procedure about the risk assessment and minimisation
procedures.
5. No personnel has been denied access to the Audit Committee.
6. CEO/CFO Certificate was placed before the Board at its meeting held on July 30, 2008 and is being provided in the Annual
Report.
11. MEANS OF COMMUNICATION
1. Half yearly financial results of the Company are published in all editions of The Economics Times (English) and Navbharat
Times (Hindi), in Delhi and Maharashtra Times (Marathi) in Mumbai, where the Registered office of the company is situated.
In addition to the above the financial results were published in leading newspapers such as Business Standard, Business Line,
Financial Express, etc. for larger circulation.
2. The Company's website (http://www.npcil.nic.in) provides a variety of information on the Company like the organisation's
profile, plant performance statistics, financial performance, FAQ, reference articles etc. The hit-rate of the web site is
significant.
3. The Company participates in important exhibitions as an exercise towards public awareness on nuclear power and
informative booklets/pamphlets are distributed to the visitors.
4. Matters of interest to employees are circulated internally in the form of Notices, Office Orders and Instructions.
5. Management's Discussion & Analysis forms part of the annual report.
12. GENERAL SHAREHOLDERS INFORMATION:
The total shareholding of the Company is by the Government of India through its nominees.
General Body Meetings

The last three Annual General Meetings were held as under:
Financial Year Date & Time Venue

2006-07 August 3, 2007 2.00 p.m. Registered Office : 16th Floor, Centre-1,
World Trade Centre, Cuffe Parade, Mumbai-400 005.
2005-06 July 14, 2006 2.30 p.m same as above
2004-05 June 29, 2005 3.00 p.m. same as above

Annexure 'C'
Postal Ballot
At the ensuing Annual General Meeting, there is no resolution proposed to be passed by Postal Ballot. However, the Company
will extend the facility of voting by postal ballot, as and when decisions of Shareholders/investors will be sought (on matters of
critical nature and notified by the GOI).
Market Price Data

The shares of the Company are not listed on any Stock Exchange. However, bonds issued by the Company are listed with the
National Stock Exchange of India since December 1996. The Bonds are traded on the Wholesale Debt Market Segment of the
NSE. Trading of the bonds does occasionally take place, however, market value of the bonds does not fluctuate much, and
therefore, information relating to market price movements of bonds is not given, being of no significance.
FINANCIAL CALENDAR
From April 2008 to March 2009
Key financial reporting dates for the financial year:
§ Financial Results for the half year ending 30th September 2008 will be published on or before October 31, 2008;
§ Financial Results for the year ending on 31st March, 2009 will be published on or before May 30, 2009;
The Financial Results will be simultaneously hosted on the website (www.npcil.nic.in) of the Company.
Since 100% shares are owned by the Government of India, information regarding date of payment of Dividend and book closure
is not given here.
Distribution of Bonds Holding

The bonds are issued by private placement. The bonds are mostly held by the Banks, financial institutions and Employees
Gratuity/Provident/Death Relief Funds of various organisations.
Dematerialisation
The Company has entered into agreements with The National Securities Depository Ltd. (NSDL) and Central Depository
Services Ltd. (CDSL) for the dematerialisation facility. All bonds issued, so far, are admitted to the depository systems of the
NSDL and the CDSL.
Registrar and Transfer Agent appointed for servicing of the Bonds issued by the Company:
TSR Darashaw Limited, 6-10, Haji Moosa Patravala Industrial Estate, 20, Dr. E. Moses Road, Mahalaxmi, Mumbai-400 011.
Telephone No.022-66568484, Fax-022-66568494
Email: csg-unit@tsrdarashaw.com
Plant Locations
The details of the plant locations of the Company are available elsewhere in the report.
Address for Correspondence

1. Registered Office: 2. Corporate Office:
16th Floor, Centre-1 Nabhikiya Urja Bhavan
World Trade Centre Anushaktinagar
Cuffe Parade Mumbai-400 094
Mumbai-400 005

Annexure 'D' to
the Directors' Report
Certificate of the Practising Company Secretary on Corporate Governance
To
The Members of
World Trade Centre
Mumbai- 400 005.
We have examined the compliance of the conditions of corporate governance by Nuclear Power Corporation of India Limited, for the
year ended on 31st March 2008, as stipulated in clause 2.18 of the Listing Agreement for debt securities of the said Company with
National stock exchange of India Ltd. and also in the guidelines on Corporate Governance for Central Public Sector Enterprises, 2007,
which were forwarded by the Department of Atomic Energy (DAE), the Administrative Ministry of NPCIL, for compliance with the
instructions contained therein.
The Corporate Governance requirements specified in clause 2.18 of the Listing Agreement for debt securities as also in the said
guidelines on Corporate Governance for Central Public Sector Enterprises are recommendatory and may be implemented as per the
discretion of the Company. The compliance of the conditions of Corporate Governance is the responsibility of the management. Our
examination was limited to a review of the procedures and implementation thereof, adopted by the Company for ensuring the
compliance with the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial
statements of the Company.
In our opinion and to the best of our information and according to the explanation given to us and the representations made by the
management we certify that the Company has generally complied with the conditions of Corporate Governance to the extent possible
as stipulated in clause 2.18 of the above mentioned Listing Agreement and in the said guidelines on Corporate Governance for Central
Public Sector Enterprises.
We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or
effectiveness with which the management has conducted the affairs of the Company.
For Parikh & Associates

Practising Company Secretaries
Place: Mumbai P.N. Parikh

Date: July 30, 2008 FCS: 327 CP:1228

Annexure 'E' to
the Directors' Report
Management Replies to the Observations made in the Statutory Auditors' Report.
Para No. Observations Management Replies
2.i.a. The Corporation has maintained proper records showing At Rawatbhata Rajasthan Site (RRS), records mentioning
full particulars, including quantitative details and situation the identification of assets in the case of furniture and
of fixed assets, except at Rawatbhata Rajasthan Site (RRS) fixtures are maintained by the respective Sections.
where details such as identification of fixed assets are not
mentioned in the records.
2.ii.a Operation and Maintenance (O&M) stocks and spares at Material in transit represent material transferred from one
units of the Corporation have been physically verified by Unit to another, which are in transit and have not reached
the management except materials with fabricators. the receiving Unit on the balance sheet date. Hence, it
Contractors and material in transit. would not be possible to carry out physical verification for
such material. The balance in this account gets adjusted as
soon as the material reaches the receiving Unit.
Confirmation of balances have been received from most

of the fabricators and contractors in respect of the
material issued to them.
2.ix.a The Corporation is generally regular in depositing with The liability of Rs. 16.5 lacs has been provided in the books
appropriate authorities undisputed statutory dues of Rawatbhata Rajasthan Site on estimation basis only.
including Provident Fund, Investor education Protection The amount payable is being ascertained and necessary
Fund, Income-tax, Wealth tax, Service Tax, Sales-tax, action for adjusting the liability would be taken during
Custom Duty, Excise Duty, Cess and other material 2008-09.
statutory dues applicable to it except at RRS where an
amount of Rs.16.5 lac provided as liability on account of
house tax payment which is due against House Tax liability
of FY 2003-04 to FY 2006-07, which as explained is not
deposited due to non receipt of demand notice.
4.2 As mentioned in Note 2.10.c (i) to 2.10.c (vi), 2.10.d and Balance confirmation / reconciliation is an ongoing
2.16, Sundry Creditors, Advances to Suppliers, DAE process. Advances to suppliers, contractors, fabricators,
accounts, Advances to Contractors, Fabricators, Material material to contractors/ fabricators are always settled /
to Contractors/ Fabricators, Deposits, Amount recoverable reconciled before release of final payments. With DAE,
from various state Electricity Board relating to Fringe DDR Heads settlement is on monthly basis, periodical
Benefit Tax (FBT) and Income Tax, Account with reconciliation for fuel and heavy water is done with DAE.
Government Bodies/ Public bodies at certain units and Tax recoverable from SEB's are reconciled periodically and
Income-tax provisions, are subject to confirmation/ members sorted out for any issues in this regard.
reconciliation and consequential adjustment thereof.

CEO & CFO Certification
It is certified that:
(a) We have reviewed financial statements and the cash flow statement for the year ended 31st March 2008 and that to the best of
our knowledge and belief:
(i) these statements do not contain any materially untrue statement or omit any material fact or statements that might be
misleading;
(ii) these statements together present a true and fair view of the Company's affairs and are in compliance with existing
accounting standards, applicable laws and regulations
(b) There are to the best of our knowledge and belief, no transactions entered into by the Company during the year which are
fraudulent, illegal or violative of the Company's code of conduct.
(c) We accept responsibility for establishing and maintaining internal controls and that we have evaluated the effectiveness of the
internal control system of the Company and we have disclosed to the auditors and the Audit Committee, deficiencies in the
design or operation of internal controls, if any, of which we are aware and the steps we have taken or propose to take to rectify
these deficiencies.
(d) We have indicated to the auditors and the Audit Committee
(i) significant changes in internal control during the year;
(ii) significant changes in accounting policies during the year and that the same have been disclosed in the notes to the
financial statements; and
(iii) instances of significant deviations in the Company's internal control system.
For and on behalf of

Nuclear Power Corporation of India Ltd.
Place : Mumbai (J.K. Ghai) (S.K. Jain)

Date: July 28, 2008 Director (Finance) Chairman & Managing Director

Auditors' Report
The Members of

We have audited the attached Balance Sheet of NUCLEAR POWER CORPORATION OF INDIA LIMITED (herein after referred to as
'the corporation') as at March 31, 2008, the Profit and Loss account and the Cash Flow statement for the year ended on that date
annexed thereto in which are incorporated the accounts of certain Power stations and Projects audited by Branch auditors
appointed by the Government of India and whose reports have been considered in preparation of this report. These financial
statements are the responsibility of the corporation's management. Our responsibility is to express an opinion on these financial
statements based on our audit.
1. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
As the corporation is governed by Electricity (Supply) Act, 2003 and the Atomic Energy Act, 1962, the provisions of the said Acts
have prevailed wherever they have been inconsistent with the provisions of the Companies Act, 1956 (hereinafter referred
to as 'the Act').
2. As required by the Companies (Auditor's Report) Order, 2003 (hereinafter referred to as 'the Order') issued by the Central
Government of India in terms of Section 227 (4A) of the Act, we give below a statement on the matters specified in paragraphs
4 and 5 of the said Order:
2.i.a The corporation has maintained proper records showing full particulars, including quantitative details and situation of
fixed assets, except at Rawatbhata Rajasthan Site (RRS) where details such as identification of fixed assets are not
mentioned in the records.
2.i.b All assets have not been physically verified by the management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the size of the corporation and the nature of its assets.
Discrepancies noticed on such verification, if any have been properly dealt with in the books of account.
2.i.c During the year the corporation has not disposed off a substantial part of its fixed assets.
2.ii.a Operation and Maintenance (O&M) Stocks and spares at units of the Corporation have been physically verified by the
management except materials with fabricators, contractors and material in transit.
2.ii.b The procedure for physical verification of inventories followed by the management seems to be reasonable and
adequate in relation to the size of the corporation and the nature of its business. Discrepancies noticed on
verification between physical stocks and book records, if any were not material and were appropriately dealt with
in the books of accounts
2.ii.c The corporation is maintaining proper records of inventory. Discrepancies noticed on verification between physical
stock and book records at various Units of the corporation, which were not material, have been appropriately dealt
with in the books of accounts.
2.iii As informed, the corporation has not granted or taken any loans to/ from companies, firms or other parties covered in
the register maintained under section 301 of the Act. Accordingly, provisions of clause 4 (iii) (b) to (g) of the Order
are not applicable to the corporation.
2.iv In our opinion and according to the information and explanations given, there are adequate internal control
systems commensurate with the size of the corporation and the nature of its business, for the purchase of
inventory, fixed assets, equipment and other assets and with regard to sale of electricity and services. Further, on
the basis of examination of books and records of the corporation and according to the information and
explanations given, as per the checking carried out in accordance with the auditing and assurance standards
generally accepted in India, neither we have observed nor we have been reported for any continuing failure to
correct major weaknesses in the internal control system.
2.v.a As informed by the management, there are no contracts or arrangements referred to in section 301 of the Act that need
to be entered i the register maintained under section 301 of the Act.
2.v.b In our opinion and according to the information and explanations given, there were no transactions made in pursuance
of contracts or arrangements referred to in section 301 of the Act, during the year, in respect of any party.

Auditors' Report
2.vi In our opinion and according to the information and explanations given, the corporation has not accepted any
deposits in terms of sections 58A and 58AA or any other relevant provisions of the Act. According to the information
and explanations given, no order has been passed by the Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any Court or any other Tribunal.
2.vii In our opinion, the corporation has an internal audit system, which is commensurate with its size and nature of its
business.
2.viii We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by
the corporation pursuant to the rules made by the Central Government for the maintenance of cost records under
Section 209 (1) (d) of the Act and we are of the opinion that prima facie the prescribed accounts and records have
been made and maintained.
2.ix.a The corporation is generally regular in depositing with appropriate authorities undisputed statutory dues including
Provident Fund, Investor Education Protection Fund, Income-tax, Wealth tax, Service Tax, Sales-tax, Custom Duty,
Excise Duty, Cess and other material statutory dues applicable to it except at RRS where an amount of Rs16.5 lac
provided as liability on account of house tax payment which is due against House Tax liability of FY 2003-04 to FY
2006-07, which as explained is not deposited due to non receipt of demand notice.
Provident fund dues in respect of employees on deputation from Department of Atomic Energy (DAE), Government
of India (GOI) are credited to the DAE's account in the books of Corporation and intimated to DAE.
As informed, provisions of the Employees State Insurance Act, 1948 are not applicable to the corporation.
According to the information and explanations given, no undisputed amount payable in respect of Income Tax/
Wealth Tax/ Service Tax/ Sales Tax/ Customs Duty/ Excise Duty/ Cess were in arrears, as at March 31, 2008 for a
period of more than six months from the date they became payable .
2.ix.b According to the records of the Corporation, dues of Income Tax, Sales tax, service tax and cess that have not been
deposited on account of any dispute is as follows:
Statute Nature of Dues Amount Forums where the dispute
(Rs' crore) is pending
Entry Tax Karnataka Tax on Entry of Goods Act 5.80 Sales Tax Department,
Karnataka
Water (Prevention and Water Cess 20.79 Cess Appellate Committee of
Control of Pollution) Cess Act, 1977 Maharashtra Pollution
Control Board
Rajasthan Motor Vehicle Show cause notices/ demand notices 0.22 RTO, Rajasthan
Transport Act, 1951
Water Cess Water Cess 7.2 Rajasthan High Court
Further, there are no dues of Custom Duty, Wealth Tax and Excise Duty that have not been deposited on account of any
dispute.
2.x The Corporation has neither accumulated losses as at March 31, 2008 nor has it incurred any cash losses during the
financial year covered under audit and the immediately preceding financial year.
2.xi In our opinion and according to the information and explanations given, the corporation has not defaulted in repayment
of dues to a financial institution, bank or Bond holders.
2.xii According to the information and explanations given, the corporation has not granted any loans and advances on the
basis of security by way of pledge of shares, bond and other securities except for advances given to contractors against
bank guarantee and house building advances to employees granted against security of the respective asset.
2.xiii According to the information and explanations given, the corporation is not a chit fund or a nidhi mutual benefit fund/
society. Accordingly, the provisions of clause 4 (xiii) of the Order is not applicable to the corporation.
2.xiv According to the information and explanations given, the corporation is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provision of clause 4 (xiv) of the Order is not applicable to the
corporation.
2.xv According to the information and explanations given, the corporation has not given any guarantees for loans taken by
others from banks or financial institutions.

Auditors' Report
2.xvi According to the information and explanations given, the term loans taken during the year have been applied for the
purpose for which they were raised.
2.xvii According to information and explanations given and based on our examination of the Balance Sheet of the
Corporation as at March 31, 2008 on an overall basis, it is observed that no funds were raised on short term basis
hence the question of the same being utilized for long term investment does not arise.
2.xviii According to the information and explanations given, the corporation has not made any preferential allotment of
shares to parties and companies covered in the register maintained under section 301 of the Act.
2.xix According to the information and explanations given, during the period covered by our audit report, the Corporation has
not issued any Secured Bonds.
2.xx The corporation has not raised any money through a public issue during the year.
2.xxi According to the information and explanations given, no fraud on or by the corporation has been noticed or reported
during the course of our audit.
3. Further to our comments above, we report that:
3.1 We have obtained all the information and explanations, which to the best of our knowledge and belief were
necessary for the purposes of our audit; except information and details in respect of usage and expenditure
pertaining to Heavy Water and Fuel Charges, being sensitive and confidential in nature, are not available for
verification, due to secrecy attached as per the Atomic Energy Act, 1962. Accordingly, we are unable to comment on
the same.
3.2 In our opinion, proper books of account as required by law have been kept by the corporation so far as appears from
our examination of such books and proper returns adequate for the purpose of our audit have been received from
power stations and projects not audited by us.
3.3 The Balance Sheet, Profit and Loss Account and Cash Flow statement dealt with by this report are in agreement with the
books of account.
3.4 In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow statement dealt with by this report comply
with the Accounting Standards (AS) referred to in section 211 (3C) of the Act except to the extent mentioned in
paragraph 4.5 below.
3.5 In our opinion and to the best of our information and according to the explanation given, the said accounts give the
information required by the Act, in the manner so required except that:
3.5.1 As mentioned in Note 2.29 and 2.30, information as required by para 4D (a) and para 4D(c) of part II of Schedule VI to the
Act has not been disclosed.
3.6 As explained, in terms of circular dated March 22, 2002 issued by Department of Company Affairs, provisions of Sec
274(I) (g) of the Act are not attracted to the corporation.
4. We further report as under:
4.1 As mentioned in Note 2.6, management's representation has been relied upon in respect of identification of
Insurance spares, Shortage/ obsolescence of stores, spares and capital inventories, which are non-moving/ slow
moving in view of technical reasons.
4.2 As mentioned in Note 2.10.c (i) to 2.10.c (vi), 2.10.d and 2.16, Sundry Creditors, Advances to Suppliers, DAE
accounts, Advances to Contractors, Fabricators, Material to Contractors/ Fabricators, Deposits, Amount
recoverable from various State Electricity Board relating to Fringe Benefit Tax (FBT) and Income Tax, Account
with Government Bodies/ Public bodies at certain units and Income-tax provisions, are subject to confirmation/
reconciliation and consequential adjustment thereof.
4.3 Long old outstanding Materials procured and advances given relating to current and Future Projects at RRS
and Contracts and Materials Management (C&MM) division as referred to in Note 2.5.i and 2.5.ii respectively,
which in the opinion of the management are serviceable/ recoverable, have been relied upon, being a technical
matter

Auditors' Report
5. We further report that without considering the remarks referred to in paragraph 4 above and the related notes to the
accounts referred to therein, the effect of which could not be determined by the management, in our opinion, subject to
paragraphs 1 to 4 above and the related notes to the accounts referred to therein, and to the best of our information and
according to the explanations given, the said accounts read together with Significant Accounting Policies and Notes on
Accounts in Schedule '16' and those appearing elsewhere in the accounts give the information required by the Act, in the
manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India;
5.a in so far it relates to the Balance Sheet, of the state of affairs of the corporation as at March 31, 2008;
5.b in so far it relates to the Profit and Loss account, of the Profit of the corporation for the year ended on that date; and
5.c in so far it relates to the Cash Flow statement, of the cash flow for the year ended on that date
For and on behalf of

KHIMJI KUNVERJI & CO
Mumbai, SHIVJI K VIKAMSEY

Dated: May 16, 2008 Partner
Membership No 2242

Comments of
The Comptroller and Auditor General of India
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 619(4) OF THE COMPANIES ACT,
1956 ON THE ACCOUNTS OF NUCLEAR POWER CORPORATION OF INDIA LIMITED FOR THE YEAR ENDED 31 MARCH 2008.
The preparation of financial statements of Nuclear Power Corporation of India Limited for the year ended 31 March 2008 in accordance
with the financial reporting framework prescribed under the Companies Act, 1956 is the responsibility of the management of the
company. The statutory auditor appointed by the Comptroller and Auditor General of India under section 619(2) of the Companies Act
1956 are responsible for expressing opinion on these financial statements under section 227 of the Companies Act 1956 based on
independent audit in accordance with the auditing and assurance standards prescribed by their professional body the Institute of
Chartered Accountants of India. This is stated to have been done by him vide his Audit Report dated 16th May 2008.
I on the behalf of the Comptroller and Auditor General of India have conducted a supplementary audit under section 619(3)(b) of the
Companies Act, 1956 of the financial statements of Nuclear Power Corporation of India Limited for the year ended 31 March 2008. This
supplementary audit has been carried out independently without access to the working papers of the statutory auditors and is limited
primarily to inquiries of the statutory auditors and company personnel and a selective examination of some of the accounting records.
On the basis of my audit nothing significant has come to my knowledge which would give rise to any comment upon or supplement to
Statutory Auditors' report under section 619(4) of the Companies Act, 1956.
For and on the behalf of the

Comptroller and Auditor General of India
(K.P. SASIDHARAN)
Principal Director of Commercial Audit and
Ex-Officio Member, Audit Board-1, Mumbai.
Place: Mumbai
Date: 24 June 2008

Financials 2007-08
'Black-necked Stork', a threatened species, has exclusion zone of MAPS as its abode where it breeds too (Photo : A.I. Siddiqui, NPCIL)

Balance Sheet
As at March 31, 2008
(Rupees in Lacs)
Schedule As at 31st As at 31st

March, 2008 March, 2007
No.
I. SOURCES OF FUNDS
1. Shareholder's Funds
a) Share Capital 1 1014533.27 1014533.27
b) Reserves and Surplus 2 1204095.20 1129064.22
2. Loan Funds
a) Secured Loans 3 668700.00 645209.40
b) Unsecured Loans 4 539584.35 530842.27
1208284.35 1176051.67
3. Deferred Tax Liability 170265.80
Less : Deferred Tax Recoverable 170265.80 0.00 0.00
TOTAL 3426912.82 3319649.16
II. APPLICATION OF FUNDS

1. Fixed Assets 5
a) Gross Block 1659501.19 1506017.55
Less : Depreciation 537360.98 460643.09
Net Block 1122140.21 1045374.46
b) Capital Work in Progress 6 1384608.93 1377556.02
2506749.15 2422930.48
2. Investments 7 245116.37 293598.12
3. Current Assets, Loans and Advances 8

a) Inventories 36107.83 35631.11
b) Sundry Debtors 42940.23 58530.44
c) Cash and Bank Balances 620405.07 552485.21
d) Other Current Assets 45845.41 36957.32
e) Loans and Advances 24139.30 55297.83
769437.84 738901.91
Less: Current Liabilities and Provisions 9
a) Liabilities 76451.71 101679.50
b) Provisions 17938.83 34101.85
94390.54 135781.35
Net Current Assets 675047.30 603120.56
Notes forming part of the Accounts 16
TOTAL 3426912.82 3319649.16
As per our report of even date attached
For and on behalf of For and on behalf of
KHIMJI KUNVERJI & CO. NUCLEAR POWER CORPORATION OF INDIA LIMITED
(SHIVJI K. VIKAMSEY) (SRIKAR R. PAI) (J. K. GHAI) (DR. S. K. JAIN)

Partner Company Secretary Director (Finance) Chairman and Managing Director
(Membership No. 2242)
Place : Mumbai
Date : May 16, 2008

Profit and Loss Account
For the Year Ended March 31, 2008
(Rupees in Lacs)
Schedule For the For the
Year ended Year ended
31st March 31st March
No.
2008 2007
INCOME
Sales :
Electrical Energy 333383.04 359209.76
Other Income 10 93252.88 106229.50
TOTAL INCOME 426635.92 465439.26
EXPENDITURE
Fuel & Heavy Water 11 108212.58 119223.69
Generation Expenditure 12 29294.91 25404.05
Employee's Remuneration and Benefits 13 34728.76 35242.73
Administration and Other Expenses 14 15167.12 11612.24
Interest
On Bonds & Term Loan 48694.98 38237.33
On Foreign Loans 17554.76 15688.00
66249.74 53925.33
Less: Transferred to Expenditure during
Construction (Sch. 6A) 20707.16 19639.95
45542.58 34285.38
TOTAL EXPENDITURE 306324.60 292129.96
PROFIT FOR THE YEAR 120311.32 173309.30
Prior Period Adjustments (Net) 15 (190.04) 717.69
PROFIT BEFORE TAX 120501.36 172591.61
Provision for Fringe Benefit Tax 607.43 581.29
Provision for Income Tax/Wealth tax 12044.31 14932.44
Provision for Deferred Tax 48064.80
Less : Deferred Tax Recoverable 48064.80 0.00
12651.74 15513.73
PROFIT AFTER TAX 107849.62 157077.88
Balance Brought forward from
previous year 109428.65 106590.50
PROFIT FOR APPROPRIATIONS 217278.27 263668.38
APPROPRIATIONS :
Interim Dividend paid 30000.00 30000.00
Tax on Interim Dividend paid 5098.50 4207.50
Proposed Dividend For The Year 2354.89 17123.36
Tax on Proposed Dividend 400.21 2910.11
Transfer to General Reserve 100000.00 100000.00
Balance carried to Balance Sheet 79424.67 109427.40
Notes forming part of the Accounts 16
TOTAL 217278.27 263668.38
EARNING PER SHARE (EPS) (Amount in Rs.) 106.30 154.83
As per our report of even date attached

For and on behalf of For and on behalf of
KHIMJI KUNVERJI & CO. NUCLEAR POWER CORPORATION OF INDIA LIMITED
(SHIVJI K. VIKAMSEY) (SRIKAR R. PAI) (J. K. GHAI) (DR. S. K. JAIN)

Partner Company Secretary Director (Finance) Chairman and Managing Director
(Membership No. 2242)
Place : Mumbai
Date : May 16, 2008

Schedules Annexed to and
Forming Part of Accounts
(Rupees in Lacs)
As at 31st As at 31st
SCHEDULE - 1
SHARE CAPITAL
Authorised
150,000,000 Equity shares of Rs.1000/- each 1500000.00 1500000.00
Issued,Subscribed and Paid up 1014533.27 1014533.27
101453327 (Previous year:101453327) Equity Shares
of Rs.1,000/- fully paid
Of the above, 96,68,611 Equity Shares allotted as
fully paid up without payment being received in cash.
TOTAL 1014533.27 1014533.27
(Rupees in Lacs)
SCHEDULE - 2
RESERVES AND SURPLUS
CAPITAL RESERVE
Balance as per last Balance Sheet 36748.31 26002.38
Add : Transferred from Renovation &
Modernisation Fund 4922.00 10170.00
Add : Transferred from Research &
Development Fund 178.00 575.93
Less : Transfer of depreciation on R&D
assets to R&D fund 181.51 0.00
Less : Depreciation on R&D Assets for current year 104.90 0.00
41561.90 36748.31
GENERAL RESERVE
Add : Transferred from Profit and Loss Account 100000.00 100000.00
Less : Deferred Tax Liability 122201.00
Less : Deferred Tax Recoverable 122201.00 0.00 0.00
900075.00 800075.00
BOND REDEMPTION RESERVE 80000.00 80000.00
DECOMMISSIONING FUND
Add : Levy for the year 2861.02 3277.12
Interest on Fund investments 4704.40 4014.74
66439.89 60499.99
Less : Payment of Income Tax 2460.66 1625.52
63979.23 58874.47
RENOVATION AND MODERNISATION FUND
Add : Interest on Fund Investments 1417.27 2069.96
18758.60 27979.32
Less : Transferred to Capital Reserve 4922.00 10170.00
Less : Payment of Income Tax 2001.42 467.99
11835.18 17341.33
RESEARCH AND DEVELOPMENT FUND
Add : Interest on Fund Investments 2712.41 2286.23
29310.12 28470.52
Less : Transferred during the year 0.00 70.00

(Rupees in Lacs)
As at As at
2008 2007
SCHEDULE - 2 (contd.)
Less: Transferred to Capital Reserve 178.00 575.94
Less: Payment of Income Tax 1346.08 498.43
Less: Transferred to P&L 748.33 728.44
Add : Dep. On R&D assets transferred
from Capital Reserve 181.51 0.00
27219.22 26597.71
PROFIT AND LOSS ACCOUNT 79424.67 109427.40
TOTAL 1204095.20 1129064.22
(Rupees in Lacs)
As at As at
SCHEDULE - 3 2008 2007
SECURED LOANS
Category Series Class Redemeeable
on
I REDEEMABLE SECURED BONDS OF RS. 1,00,000/- EACH:
NON-CUMULATIVE INTEREST SCHEME
B 11A2 10.4% Tax-free repayable in 3 instalments of
Rs.30,000, Rs.30,000 & Rs.40,000 on 13-11-2005, 13-11-2007 - 12,308.40
2006 & 2007 respectively
B 14 9% Tax-free with put & call option at par 31-03-2015 10,000.00 10,000.00
on 31-03-2007,2010,2011,2012,2013 & 2014 #
B 15 8.25% Tax-free with put & call option at par 06-01-2016 6,000.00 6,000.00
on 06-01-2008,2009,2010,2011,2012,2013,2014 & 2015 #
B 18 8.2% Tax-free with put & call option at par 20-02-2012 7,000.00 7,000.00
on 20-02-2007,2008,2009,2010 & 2011 #
B 19 5.30% Tax-free with put&call option at par on 31-12-2012 3,500.00 7,700.00
31-12-2007,2008,2009,2010&2011 #
A 20 6.15% Taxable - Rs.5500 lac. Each repayable on 14-8-2018 55,000.00 55,000.00
14/08/2009, 2010, 2011,2012,2013,2014,
2015,2016 2017 and 2018*
C 21 5.50% Infrastructure with put and call option at par on 14-08-2013 13,900.00 13,900.00
14.08.2010, 2011, 2012
Sub-Total (I) 95,400.00 111,908.40
II REDEEMABLE SECURED BONDS OF RS. 10,000/- EACH :
B 11B 10% Tax-free 06-03-2008 1.00
Sub-Total (II) - - 1.00
III REDEEMABLE SECURED BONDS OF Rs.10,00,000/- EACH:
A 22 6.10% Taxable ** 15-03-2014 82,000.00 82,000.00
C 23 5.25% Taxable Infrastructure with Put/Call Option on 23-03-2014 17,700.00 17,700.00
23/03/2009,2010, 2011, 2012 & 2013 **
B 24 4.75% Tax-free with Put/call Option on 26/03/2009, 2010,
2011,2012, 2013, 2014, 2015, 2016, 2017 & 2018. ** 26-03-2019 5,000.00 5,000.00
Sub-Total (III) 104,700.00 104,700.00
GRAND TOTAL (I + II + III) 200,100.00 216,609.40
Bonds repayable within one year (Put /Call option) Rs. 392,00.00 Lacs (Previous year Rs.165,09.40 Lacs)

(Rupees in Lacs)
Redemption between April 2007 and March, 2008
1) Redemption of XI A2 (10.4%) Bonds (13/11/2007) 12,308.40
2) Redemption of XI-B (10%) Bonds (06/03/2008) 1.00
3) Part Redemption of Sr.XIX (5.30%) Bonds (31/12/2007) - PUT OPTION 4,200.00
16,509.40
As at As at
2008 2007
IV TERM LOAN FROM SBI 28.03.2015 70,000.00 70,000.00

With bullet repayment after 10 years Floating Rate -G-Sec .
Rate (+) 50Bps at the end of each year secured by negative
lien of asset of TAPP-3&4
V TERM LOAN FROM CANARA BANK 28.10.2015 45,600.00 45,600.00
Rate (+) 30Bps, at the end of each year secured by negative
VI TERM LOAN FROM CANARA BANK 28.10.2015 13,000.00 13,000.00
lien of asset of MAPS
VII TERM LOAN FROM SBI and it`s associate banks 26.04.2011 55,000.00 55,000.00
With bullet repayment after 05 years. Floating Rate G-Sec.
Rate(+) 100 Bps at the end of each year secured by negative
lien of asset of Kaiga-1&2 and RAPP-3&4.
VIII TERM LOAN FROM CANARA BANK 14.07.2011 55,000.00 55,000.00
With bullet repayment after 5 years.Floating Rate -G-Sec .
IX TERM LOAN FROM SBI 25.07.2011 50,000.00 50,000.00
X TERM LOAN FROM Bank of India 02.08.2011 30,000.00 30,000.00
XI TERM LOAN FROM Bank of Baroda 04.08.2011 30,000.00 30,000.00
With bullet repayment after 05 years. Floating Rate G-Sec.
Rate(+) 125 Bps at the end of each year secured by negative
XII TERM LOAN FROM State Bank of Hyderabad 28.08.2011 10,000.00 10,000.00
Rate (+) 100Bps subject to minimum of 8%at the end of each
year secured by negative lien of asset of TAPP-3&4
XIII TERM LOAN FROM CANARA BANK 31.01.2012 25,000.00 25,000.00
Wiith bullet repayment after 5 years Floating Rate -G-Sec .
lien of asset of Kaiga-3&4
XIV TERM LOAN FROM SBI 29.11.2011 25,000.00 25,000.00

(Rupees in Lacs)
As at As at
2008 2007
XV TERM LOAN FROM CANARA BANK 26.03.2012 20,000.00 20,000.00
XVI TERM LOAN FROM BANK OF MAHARASHTRA 07.03.2013 20,000.00 -
XVII TERM LOAN FROM BANK OF MAHARASHTRA 13.03.2013 20,000.00 -
Sub-Total (IV-XVII) 468,600.00 428,600.00
GRAND TOTAL (I - XVII) 668,700.00 645,209.40
Note:
Bonds of the following series are secured by way of trusteeship agreement coupled with covenants of negative lien and irrevocable power of
attorney in favour of trustees to create equitable mortgage over the fixed assets.
Series Secured by
* XX & XXI Rajasthan Atomic Power Station-unit 3 & 4
# XIV, XV, XVIII & XIX Kaiga Generating Station-unit 1 & 2
** XXII, XXIII & XXIV Tarapur Atomic Power Project - 3 & 4
(Rupees in Lacs)
SCHEDULE - 4
UNSECURED LOANS
Loan from Department of Atomic Energy 506942.19 506871.29
Government of India (Russian Credit)
Interest Free loan KK Project (DAE) 2900.00 2900.00
Interest Accrued on Russian Credit 29742.16 21070.98
TOTAL 539584.35 530842.27

SCHEDULE - 5 (Rupees Lacs)
(RupeesininLacs)
GROSS BLOCK DEPRECIATION NET BLOCK
Fixed Assets AS AT ADDI -DEDUC AS AT AS AT FOR THE DEDUC- AS AT AS AT AS AT
01.04.2007 TIONS TIONS/ 31.03.2008 01.04.2007 YEAR TIONS/ 31.03.2008 31.03.2008 31.03.2007
ADJUST- ADJUST-
MENTS MENTS
LAND(Leasehold And Freehold) 14715.04 540.65 0.00 15255.69 3.75 0.65 0.00 4.40 15251.29 14711.29
BUILDINGS 78358.07 15828.36 0.00 94186.43 11011.81 1595.58 (0.86) 12608.25 81578.18 67346.26
76
RAILWAY SIDINGS 34.02 0.00 0.00 34.02 32.05 0.28 0.00 32.33 1.69 1.97
PLANT AND MACHINERY 1387232.67 137063.34 2405.85 1521890.16 435376.22 74390.75 1712.50 508054.47 1013835.69 951877.51
FURNITURE, FIXTURES AND
OFFICE EQUIPMENT 24356.76 2864.25 411.42 26809.59 13272.36 2532.65 120.53 15684.48 11125.11 11063.34
VEHICLES 1309.47 27.67 22.45 1314.69 942.46 54.62 21.32 975.76 338.93 367.01
ASSETS HELD FOR DISPOSAL 11.52 9.21 10.12 10.61 4.44 0.29 3.44 1.29 9.32 7.08
TOTAL 1506017.55 156333.48 2849.84 1659501.19 460643.09 78574.82 1856.93 537360.98 1122140.21 1045374.46
PREVIOUS YEAR TOTAL 1266206.42 247693.56 7882.43 1506017.55 392335.94 68792.20 485.05 460643.09 1045374.46 873870.48
Depreciation for the Year Rs. 76,717.89 Lakhs is reconciled as under

2007-2008 2006-2007
Depreciation charged to Profit & Loss 73,378.65 66361.88
Add : Depreciation included under Expenses During 3,800.33 2227.80

Construction pending allocation ( Sch - 6A)
: Depreciation relating to prior period ( Sch 15 ) 1497.54 283.95
: Deduction / Adjustments (1958.63) (566.48)
76,717.89 68,307.15
(Rupees in Lacs)
SCHEDULE - 6
CAPITAL WORK - IN PROGRESS
Capital Work-in-progress 732320.48 618659.93
Transferred from Sch.-14 52.99 0.00
Capital goods and Stores : (Incl.goods in transit) 216178.03 206353.32
Less : Provision for Obsolescence/Loss 6.00 876.00
216172.03 205477.32
ADVANCES
Against material pending acceptance 38704.34 55.27
(As certified by the Management)
Against Capital Expenditure Considered good - Secured 1242.02 8049.86
Against Capital Expenditure Considered good 166996.52 337684.51
Against Capital Expenditure Considered doubtful 1338.32 1337.71
168334.84 339022.22
Less : Provision for doubtful advances 1338.32 1337.71
166996.52 337684.50
Expenditure During Construction Pending Allocation (Schedule 6A) 219937.98 199022.33
Advance Procurement/Expenses for Future Projects 9182.57 8606.80
TOTAL 1384608.93 1377556.02
Note : All advances are unsecured and considered good, unless otherwise stated.
(Rupees in Lacs)
SCHEDULE - 6A
STATEMENT OF EXPENDITURE DURING
CONSTRUCTION PENDING ALLOCATION
OPENING BALANCE 199022.33 170690.76
ADD : ADMINISTRATIVE AND OTHER EXPENSES
Fuel 2698.07 1158.60
Heavy Water Charges 822.05 9751.04
Sub-Total (A) 3520.12 3520.12 10909.64
Stores and Spares Consumed 939.31 2578.63
Repairs and Maintenance
a) Building 533.12 618.57
b) Plant and Machinery 1450.65 1935.03
c) Others 3075.63 2472.49
Rates and Taxes 38.93 83.63
Insurance 647.37 841.90
Electricity and Water Charges -Plant Site 1342.87 1847.81
Sub-Total (B) 8027.88 8027.88 10378.06
Salaries, Wages and Bonus 7658.13 6278.84
Staff Welfare expenses 1530.15 1202.48
Contribution to Provident and Other Funds 508.46 411.36
Sub-Total (C) 9696.74 9696.74 7892.68
Rent 74.74 77.84
Travelling and Conveyance expenses 185.86 384.56
Printing and Stationery 107.89 98.95
Electricity and Water Charges - Township 370.74 170.10
Advertisement Expenses 35.02 32.50
Other Expenses 2028.93 1613.06
Security Expenses 846.79 870.86
Consultancy Charges 4624.64 4235.93
Allocation of head office expenditure 4328.73 7532.54
Sub-Total (D) 12603.34 12603.34 15016.34

(Rupees in Lacs)
SCHEDULE - 6A (contd.)
Detailed Project Report Expenses (Foreign Exchange Fluctuations) (1703.31) (488.62)
Interest on Borrowed Funds 3152.40 3951.95
Interest on Foreign Loan 17554.76 15688.00
Prior period expenses 1.53 1.36
Sub-Total (E) 22805.71 22805.71 21380.49
TOTAL EXPENDITURE (A+B+C+D+E) 56653.79 65577.21
Less : Income
Interest (Others) 30.77 126.25
Infirm Power 214.00 982.11
Other Income 915.07 1034.76
1159.84 1159.84 2143.12
NET EXPENSES FOR THE YEAR 55493.95 63434.09
254516.28 234124.85
Less : Allocated to Fixed Assets 34578.30 0.00
Less : Allocated to Ongoing Projects 0.00 35102.52
34578.30 0.00
TOTAL 219937.98 199022.33
(Rupees in Lacs)
SCHEDULE - 7
INVESTMENTS (AT COST)
LONG TERM INVESTMENTS (UNQUOTED)
1. 10264 Shares of KAPS Co-Operative society of Rs.10/- each fully paid. 1.03 1.03
2. 7102 Shares of NAPS Co-operative society of Rs.10/- each fully paid 0.71 0.71
3. 4923.5 Shares of MAPS Co-operative society of Rs. 10/- each fully paid. 0.49 0.49
4. 1200 Shares of TAPS Co-operative society of Rs.10/- each fully paid. 0.12 0.12
5. Bonds (as per details herein below) 245114.02 293595.77
Aggregate Amount of Unquoted Investments 245116.37 293598.12
(Rupees in Lacs)
Particulars of Bonds Quantity Face Value Total
As on As on (Rs. In As at As at
31.03.2008 31.03.2007 Lakhs) 31.03.08 31.03.07
1. 8.5 % tax free Govt. of Andhra Pradesh Special Bonds 721,632.00 856,938.00 0.01 7,216.32 8,569.38
2. 8.5 % tax free Govt. of Gujarat Special Bonds 2,959,616.00 3,514,544.00 0.01 29,596.16 35,145.44
3. 8.5 % tax free Govt. of Haryana Special Bonds 2,307,680.00 2,740,370.00 0.01 23,076.80 27,403.70
4. 8.5 % tax free Govt. of Himachal Pradesh Special Bonds 129,296.00 153,539.00 0.01 1,292.96 1,535.39
5. 8.5 % tax free Govt. of Karnataka Special Bonds - 364,192.00 0.01 - 3,641.92
6. 8.5 % tax free Govt. of Kerala Special Bonds 36,064.00 42,826.00 0.01 360.64 428.26
7. 8.5 % tax free Govt. of Punjab Special Bonds 170,928.00 202,977.00 0.01 1,709.28 2,029.77
8. 8.5 % tax free Govt. of Tamil Nadu Special Bonds - 742,691.00 0.01 - 7,426.91
9. 8.5 % tax free Govt. of Uttar Pradesh Special Bonds 2,394,080.00 2,842,970.00 0.01 23,940.80 28,429.70
10. 8.5 % tax free Govt. of Uttaranchal Special Bonds 269,200.00 319,675.00 0.01 2,692.00 3,196.75
11. 8.5 % tax free Govt. of Maharashtra Special Bonds 452,272.00 537,073.00 0.01 4,522.72 5,370.73
12. 8.5 % tax free Govt. of Jammu & Kashmir Special Bonds 2,326,240.00 2,762,410.00 0.01 23,262.40 27,624.10
13. 8.5 % tax free Govt. of Madhya Pradesh Special Bonds 7,850,240.00 9,322,160.00 0.01 78,502.40 93,221.60
14. 8.5 % tax free Govt. of Delhi Long Term Advance - - - 11,350.44 11,981.02
15. 8.5 % Govt. of Jammu & Kashmir Special Bonds 3,759,110.00 3,759,110.00 0.01 37,591.10 37,591.10
(Tax Refundable)
245,114.02 293,595.77

(Rupees in Lacs)
SCHEDULE - 8
CURRENT ASSETS, LOANS AND ADVANCES
A CURRENT ASSETS
1. Inventories (Including material in transit)
(As certified by the Management)
Store and Spares 36610.22 35928.37
Less: Provision for obsolescence/loss 502.39 297.26
36107.83 35631.11
2. Sundry Debtors
Secured (Considered good)
i) Over six months 103.44 14.63
ii) Others 19351.01 30688.00
19454.45 30702.63
Unsecured
i) Over six months
- Considered good 9661.90 12327.58
- Considered doubtful 1.19 18.33
9663.09 12345.91
Less : Provision for Doubtful Debts 1.19 18.33
9661.90 12327.58
ii) Others (Considered good) 13823.88 15500.23
42940.23 58530.44
3. Cash and Bank Balances
i) Cash and cheques on hand 12389.66 4043.86
ii) Remittance in Transit (8.89) 1445.44
iii) With Scheduled Banks
- in Current accounts 9868.67 5660.54
- in Deposit accounts 483108.14 492976.81 428786.86
iv) Balances with Scheduled Banks
for Earmarked Funds
- In Current Accounts 868.86 0.00
- In Deposit Accounts 96519.48 100755.59
97388.34 100755.59
Add : Interest accrued 17659.15 115047.49 11792.92
620405.07 552485.21
4. Other Current Assets
i) Interest accrued on Deposits/Advances 41423.01 32718.68
ii) Interest accrued but not due on loans to staff 4218.53 3983.22
iii) Others 203.87 255.42
45845.41 36957.32
B LOANS AND ADVANCES
1. Loans and Deposits (Unsecured )
i) To Government Companies (Considered good) 2.18 327.08
2.18 327.08
2. Advances recoverable in cash or in kind or for
Value to be received
i) Secured, considered good 1279.95 900.34
ii) Unsecured
- Considered good 9668.20 10017.27
- Considered doubtful 14.86 201.78
10963.01 11119.39
Less : Provision for doubtful advances 14.86 201.78
10948.15 10917.61
3. Advance Tax (Net) 10220.92 15487.81
4. Recoverable from DAE/DAE Undertakings 1163.15 27384.78
5. Government Departments/Public Bodies and 1804.90 1180.55
State Electricity Boards
TOTAL 769437.84 738901.91

(Rupees in Lacs)
SCHEDULE - 9
CURRENT LIABILITIES AND PROVISIONS
A. CURRENT LIABILITIES
1. Sundry Creditors
SSI Undertaking 26.92 19.52
Others 30909.18 30936.10 48512.02
2. Payable to DAE/DAE Undertakings 2926.21 16803.05
3. Investor Education and Protection Fund shall be credited
(to the extent and as and when required) by the following
amounts namely :-
(a) Unclaimed Bonds 28.01 35.24
(b) Unclaimed Interest 23.40 48.13
4. Other Liabilities 32758.06 25277.25
5. Advance Received from Debtors 36.68 0.83
6. Interest Accrued but not due 9743.25 10983.46
76451.71 101679.50
B. PROVISIONS
1 Gratuity 8688.92 8300.45
2. Leave Encashment 6493.81 5766.68
3. Wealth Tax 1.00 1.25
4. Proposed Dividend 2353.66 17123.36
5. Tax on Proposed Dividend 401.44 2910.11
17938.83 34101.85
TOTAL 94390.54 135781.35
(Rupees in Lacs)
For the For the
SCHEDULE - 10 2008 2007
OTHER INCOME
1. Interest received
i) on deposits with Nationalised Banks 50164.66 31145.68
ii) on staff loans 492.22 494.87
iii) on others 26579.77 25851.52
77236.65 57492.07
Less : Transferred to Expenditure During Construction 15.64 16.22
15.64 16.22
77221.01 57475.85
2. Transferred from Research & Development Fund 748.33 728.44
3. Income Tax Reimbursement 10033.00 43487.10
4. Delayed Payment Charges 0.00 118.27
5. Excess Provision written back 3025.24 306.39
6. Profit on sale of fixed assets 42.14 1834.06
7. Miscellaneous Income 2561.60 2279.39
Less:Transferred to Expenditure during Constr. (Sch. 6A) 279.21
Adjust with dues of DAE (Sch. 9) 99.23 378.44 0.00
TOTAL 93252.88 106229.50

(Rupees in Lacs)
For the For the
SCHEDULE - 11 2008 2007
FUEL & HEAVY WATER
Fuel Charges
(a) Fuel Use Charges 53831.70 67187.44
(b) Fuel Lease Charges 1499.60 1929.15
(c) Fuel Recovery Charges 7422.69 5745.21
62753.99 74861.81
Heavy Water charges
(a) Heavy Water Lease Charges 46485.38 43465.04
(b) Heavy Water Make up Charges 2493.33 4118.78
48978.71 47583.82
Less : Transferred to
Expenditure during Construction (Sch.6A) 3520.12 3221.95
TOTAL 108212.58 119223.69
(Rupees in Lacs)
For the For the
SCHEDULE - 12 2008 2007
GENERATION EXPENDITURE
Stores and Spares consumed 3909.15 2602.20
Repairs and Maintenance
a) Buildings 4054.53 3651.30
b) Plant & Machinery 15675.14 12816.17
c) Others 6593.18 2594.94
26322.85 19062.41
Rates and Taxes 469.44 427.93
Insurance 1843.99 1647.81
Electricity and Water Charges Plant Site 5525.10 2049.22
Expenditure during Construction (Sch. 6A) 8027.88 385.52
Adjust with dues of DAE (Sch. 9) 747.74 0.00
8775.62 385.52
TOTAL 29294.91 25404.05
(Rupees in Lacs)
For the For the
SCHEDULE - 13 2008 2007
EMPLOYEE'S REMUNERATION & BENEFITS
Salaries & Wages 32637.57 25189.30
Bonus 2686.17 2917.12
Contribution to Provident and other funds 2414.29 1694.79
Gratuity 1886.25 3046.43
Staff Welfare expenses 6840.02 4373.67
Expenditure during Construction (Sch.6A) 9696.74 1978.58
11735.54 1978.58
TOTAL 34728.76 35242.73

(Rupees in Lacs)
For the For the
SCHEDULE - 14 2008 2007
ADMINISTRATION AND OTHER EXPENSES
Rent 115.53 44.68
Travelling and Conveyance expenses 1619.64 1428.46
Printing and Stationery 729.24 631.49
Electricity and Water Charges - Township 1488.98 447.19
Loss on sale of fixed asset 75.43 55.55
Advertisement Expenses 466.80 317.73
Rebates/ Discount 7926.15 8482.13
Research and Development Expenditure 748.33 728.44
Other Expenses 12354.92 4471.25
Security Expenses 3093.45 2095.80
Allocation of Head Office Expenses 0.00 (6260.18)
PROVISIONS :
- for loss/Obsolete Stocks 168.20 901.88
- for doubtful debts 1.50 3.00
- for doubtful advances 0.00 0.57
169.70 905.45
28788.17 13347.99
Expenditure during Construction (Sch. 6A) 12603.34 1735.76
CWIP (Sch. 6) 52.99 0.00
13621.05 1735.76
TOTAL 15167.12 11612.24
(Rupees in Lacs)
For the For the
SCHEDULE - 15 2008 2007
PRIOR PERIOD ADJUSTMENTS
DEBITS
Stores and Spares 0.21 0.54
Interest 0.42 3.20
Salaries and Wages & Contribution 1.81 114.76
Repairs & Maintenance 21.94 33.33
Rebate/Discount on prompt payments 11.98 0.00
Miscellaneous 32.18 394.32
1567.18 958.14
CREDITS
Fuel & Heavy Water 1342.48 (56.41)
Repairs & Maintenance 0.00 0.12
Miscellaneous 408.06 168.70
Salaries and Wages & Contribution 3.91 0.00
1755.55 240.45
(188.37) 717.69
Less : Income Transferred to Sch. 6A 1.53
Adjust with dues of DAE (Sch. 9) 0.14
(1.67) 0.00
TOTAL (190.04) 717.69

SCHEDULE 16 - Significant Accounting Policies and Notes forming part of Accounts

1. Significant Accounting Policies
1.1 Basis of Accounting
The financial statements are prepared under historical cost convention on an accrual basis and in accordance with accounting
standards, provisions of the Companies Act, 1956 (hereinafter referred to as 'the Act') and Electricity (Supply) Act, 2003 and
Atomic Energy Act, 1962.
1.2 Fixed Assets
Fixed assets taken over from the Department of Atomic Energy (DAE), Government of India (GOI), are recorded at the cost
available from records of DAE or Engineer's estimates wherever costs are not ascertainable.
All fixed assets acquired/constructed by the Corporation thereafter are capitalized at cost of acquisition/ construction/
fabrication/ erection or on engineers' estimates, wherever the actual cost is not available.
Assets acquired on lease: Lease premium paid and other costs incurred for acquiring lease rights of assets is treated as cost of
the leasehold asset.
For joint ownership: Wherever ownership is available such assets are capitalized.
In case of receipt of contribution: at cost, net of contribution from other parties.
In case of payment of contribution: at contribution so paid to other parties.
Wherever ownership is not available, such payments are treated as revenue expenditure and charged to the profit & loss
account.
1.3 Capital Work in Progress
Capital work in progress (CWIP) includes all expenditure for acquisition and construction of assets. Such expenditure includes
cost of preparing project report, conducting feasibility study, land survey and location study, etc. CWIP also includes all indirect
costs and incidental expenditure during construction, pending allocation. Expenditure during Construction (EDC) is allocated
on prorata basis to the assets capitalized on commencement of commercial operation.
Major renovation, modernization and upgradation of Units at Stations, requiring long shut down is considered as capital
projects.
All direct expenditure & related indirect expenditure during major renovation, modernization & upgradation of units at Power
Stations, is considered as 'CWIP' and capitalized on its completion.
Where at one Site, one of the units is under long shutdown or all identifiable expenses are allocated to respective units
under Construction CWIP or Profit & Loss a/c, as the case may be
all other expenses are apportioned to CWIP or Profit & Loss
a/c equally
1.4 Depreciation
Depreciation on fixed assets is provided on straight line method on capitalized cost at the rates notified under the Act.
Cost of computers and peripherals, are depreciated on straight line method over a period of 5 years.
Individual assets costing less than Rs5,000 are fully depreciated in the year of purchase.
Depreciation is provided at the normal rates on opening balance of assets at respective units, irrespective of its transfer/
disposal or its non-availability for use during the year.
Depreciation on fixed assets used during construction period is charged to EDC.
Assets acquired on lease are depreciated at rate of depreciation applicable to respective asset or are written off over the period
of lease, whichever is higher.
Depreciation on assets added on or after April 1, 2004 is provided on prorata basis with reference to the date of addition. Assets
added prior to April 1, 2004 were depreciated with effect from start of subsequent financial year.
1.5 Investments
Long Term Investments are stated at cost after deducting Provision, if any made for permanent diminution in the values.
Current investments are stated at lower of cost or market/ fair value.
1.6 Inventories
Spares which can be used only in connection with a particular item of fixed assets & whose use is expected to be irregular are
considered as capital stores. Stores & spares are valued at lower of cost or Engineer's estimates (where costs are not.

ascertainable). 'Costs' include 'cost of purchase' and 'cost of conversion', including incidentals like freight, octroi, etc.
Stocks of stores and spares, are valued at monthly moving weighted average.
Operation & Maintenance (O&M) stores & spares, including consumable stores and loose tools, are charged to revenue at the
time of issue.
Non-moving and slow moving items of inventory are subjected to continuous technical monitoring and unserviceable items are
provided for.
1.7 Reserves and Surplus
Amounts appropriated from Research & Development Fund and Renovation & Modernization Fund towards capital
expenditure is transferred from these funds to Capital Reserve, and amounts towards revenue expenditure is transferred from
these funds to Profit & Loss Account.
1.8 Foreign Exchange Transactions
Foreign currency transaction are initially recorded at the rates of exchange ruling at the date of transaction.
At the balance sheet date, foreign currency monetary items are reported using the closing rate. Non-monetary items
denominated in foreign currency are reported at the exchange rate ruling on the date of transaction. Exchange differences are
recognized as income or expense in the period in which they arise.
1.9 Income
1.9.a Revenue recognition
Revenue is recognized on accrual basis and when its collection or receipt is reasonably certain.
1.9.b Sale of Electrical Energy
Revenue on sale of electrical energy is recognised net of levies and is on the basis of net units exported to State Electricity Boards
(SEBs) at tariff notified by DAE. In cases where tariff is not notified, the same is recognised in accounts at provisional tariff,
subject to final notification of tariff.
Adjustments arising on account of finalisation of Global Accounts/ Regional Energy Adjustments (REAs) are effected in the year
of its finalization.
1.9.c Liquidated Damages
Liquidated Damages recovered from suppliers/contractors are recognised as income only at the time of clearance of final bill, till
which time, the same are shown under liabilities.
1.9.d Consultancy Income
Income from Consultancy service is accounted for on the basis of actual progress/ technical assessment of work executed in line
with the terms of respective consultancy contracts.
1.10 Expenses
1.10.a Allocation of Head Office expenditure
Identifiable expenses of Head Office are directly transferred to respective locations. Unidentifiable expenses are allocated to
power stations and projects in the ratio of aggregate of annual net sale of electrical energy & annual capital outlay.
1.10.b Borrowing costs
Borrowing costs includes interest, commitment charges, brokerage, under-writing costs, discounts, premium, financing
charges, exchange difference on account of interest costs and all ancillary/ incidental costs incurred in connection with the
arrangement of borrowing.
Borrowing costs, which are directly attributable to acquisition/ construction of a fixed asset, are capitalised as a part of cost
pertaining to that asset. Other borrowing cost is considered as expenditure in the period in which these are incurred and are
charged to Profit and loss account or EDC, as the case may be.
Borrowing costs are arrived at after netting off any income on temporary investment of those borrowings.
1.10.c Expenditure on Research & Development incurred by the Corporation
Revenue expenditure on Research & Development (R&D) is charged to Profit & Loss Account in the year of its incurrence.
Expenditure on acquisition of fixed assets for R&D is included in fixed assets and depreciation is provided thereon, at applicable
rates of depreciation.
1.10.d Retirement benefits
Leave Salary & Pension contribution and Provident Fund contributions in respect of employees on deputation from DAE are
paid to GOI, in accordance with the norms prescribed by DAE/ GOI.
Pension contribution in respect of employees who have opted for combined pension is paid to DAE, in accordance with the
norms prescribed by DAE/ GOI.

Contribution to Provident Fund for Corporation's employees is made to recognised provident fund, registered under Provident
Fund Act, 1925. Liability on account of gratuity and leave encashment for the year is determined on the basis of actuarial
valuation and provided for in the books of accounts.
1.10.e Provision for Exgratia payment and Incentives
Provision for ex-gratia payments is made as per orders of GOI. Incentives are provided as per the schemes adopted by the
Corporation, as applicable from time to time.
1.11 Taxation
Tax expense comprises of current, deferred and fringe benefit tax.
Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with
the Income Tax Act, 1961.
The deferred tax for timing differences between the book and tax profits for the year is accounted for, using the tax rates and
laws that have been substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are
recognized to the extent there is reasonable certainty that these would be realized in future.
Deferred tax assets in case of unabsorbed losses and unabsorbed depreciation are recognized only if there is virtual certainty
that such deferred tax asset can be realized against future taxable profits.
Fringe Benefit Tax is provided in accordance with the provisions of the Income Tax Act, 1961.
1.12 Contingent Liabilities
Contingent Liabilities in respect of show cause notices received are considered only when they are converted into demands.
Contingent Liabilities under various fiscal laws include those in respect of which the Corporation/ department is in appeal.
2 Notes forming part of Accounts
2.1 Contingent Liabilities Not Provided For
(As Certified by the Management)
Sr. Particulars 2007-08 2006-07 Uncertainties relating

No. (Rs. in lac) (Rs. in lac) to outflows
i) Claims against the Corporation not 12998.94 16275.94 Claims are not as per contractual obligations
acknowledged as debts and possibility of payments is remote
ii) Sales tax/ Entry Tax Demands 558.66 580.35 Based on the past case laws on similar grounds,
contested in Appeals (Amount paid the management is of the opinion that
under protest Rs. 259.02 lac, Previous contingencies relating to outflows, if any,
year Rs. 259.02 lac. Provided for in the relating to the said disputed statutory dues are
books of account Rs. 21.69 lac, remote
Previous year Nil)
iii) Unexpired value of Letters of Credits/ 3583.84 680.82

Bank Guarantees given on behalf of
corporation
iv) Estimated amount of contracts 235043.48 325529.13

remaining to be executed on capital
Account (net of advances)
v) Income-tax demands contested in 21923.23 68656.53 Based on the past case laws on similar grounds,
appeals (Amount paid under protest and on the opinion given by tax consultant,
Rs. 21923.23 lac, Previous year management is of the opinion that
Rs. 56324.67 lac) contingencies relating to outflows, if any,
relating to the said disputed statutory dues are
remote

In the opinion of management, the aforesaid contingent liabilities relating to income-tax demands, if eventually arise on the
corporation, would be claimed from SEBs.
Amount payable to Project Affected People on rehabilitation at a unit has been paid or provided in respect of demands received
till date, as per court orders. In view of pending court cases, the future liability is unascertainable. To rehabilitate the Project
Affected People it was agreed that 1,250 houses should be constructed by Revenue and Forest Department at the cost of the
Corporation. Further, due to increase in cost of steel and cement, the concerned authority demanded an additional amount of
Rs315 lac. Against this, an amount of Rs203.3 lac has been approved and passed vide a resolution by the corporation. The
balance of Rs111.7 lac is accordingly included under point (i) above.
Claims under point (i) above includes notice received from Maharashtra Pollution Control Board (MPCB) by Tarapur
Maharashtra Site (TMS) for payment of Cess under Water Cess Act, 1977 amounting to Rs2,836 lac disputed by TMS before the
Cess Appellate Committee against which an amount of Rs757 lac (Previous year Rs757 lac) has been paid under protest.
Claims under point (i) above includes Rs89.42 lac (Previous year Rs89.42 lac) against an estimated liability of Rs362.57 lac
(Previous year Rs362.57 lac) towards land compensation to landowners at Kakrapar Atomic Power Station (KAPS) against
which Rs270.25 lac has been paid and Rs2.90 lac stands provided in the books of accounts till March 31, 2008. No other claim is
made on the corporation beyond Rs273.15 lac (Previous year Rs273.15 lac) till date.
2.2 Unsecured Loans
DAE loan (Russian credit) represents funds provided by DAE to deposit with Controller of Aid Accounts & Audit (CAA&A) for
repayment of credit extended by Government of Russian Federation to Government of India, repayable after moratorium
period and utilised by the Corporation for payments to Russian exporters in terms of various contracts entered into with M/s
Atomstroyexport to set up two units of 1000 Mwe each at Kudankulam, with an understanding that exchange fluctuation on
repayment of the credit by GOI shall be on account of the Corporation.
2.3 Fixed Assets
2.3.1 Gross Block of Fixed Assets and related Accumulated Depreciation include:
i) Value of assets taken over from GOI are accounted at their original cost and related accumulated depreciation based on its
classification.
ii) Assets of Kaiga Unit-3 has been capitalized during the year on pro-rata basis from CWIP containing expenditure of Kaiga
Unit-3 & Unit-4 after commercialization of Unit-3 on May 6, 2007.
2.3.2 Land
2.3.2.i Land includes cost incurred on its development
2.3.2.ii Title deeds of land owned by TMS remains in name of erstwhile Tarapur Atomic Power Project
2.3.2.iii Land at Rawatbhata Rajasthan Site (RRS) includes
a) 267.21 hectares of Revenue Department & Private land acquired for which title (Jamabandi) is available and does not
include:
a) 393.58 hectares of Forest and Revenue Department land acquired on the condition that its legal status would remain
unchanged.
b) 983.40 hectares of forest land taken on notional rent of Re1 per annum.
2.3.3 Buildings include:
2.3.3.i Lease premium in respect of premises taken on long lease at various places.
2.3.3.ii Proportionate cost in respect of buildings constructed on the land belonging to DAE & others, as per the respective
arrangements/ understandings.
2.3.3.iii Buildings include Buildings Constructed on Land belonging to DAE as per respective arrangements/ undertakings.
2.4 Depreciation
2.4.i Depreciation on fixed assets is provided on straightline method at rates Specified in Schedule XIV of the Act. The accumulated
depreciation is restricted to 95% of cost of assets.
2.4.ii With effect from April 1, 2007, the Corporation has changed its policy in respect of Computers and Peripherals from rate
specified under Schedule XIV of the Act to 19% and will be depreciated over a period of five years, whereby balance
depreciation is amortised over the revised remaining useful life of assets, due to this change, the depreciation is higher by
Rs. 481.85 lac. Accordingly, net profit for the year is lower by Rs. 412.39 lacs and EDC is higher by Rs. 69.46 lacs.

2.5 Capital Work-in-Progress (CWIP)

2.5.i Inventories procured amounting to Rs7549 lacs, (previous year Rs7549 lacs) relating to Future Projects at RRS with a possibility
of commencement of the same in near future is considered as CWIP.
2.5.ii CWIP of Contracts & Materials Management division (C&MM) includes (i) materials lying with fabricators amounting to
Rs3160.99 lacs (Previous year Rs8035.99 lacs) and (ii) advances amounting to Rs39817.65 lacs (Previous year Rs64930.81 lacs).
These Balances in Advances are predominantly supply/ stage payments made to Suppliers/ fabricators against dispatch
documents or against materials received by sites/ units and under inspection or delivered to fabricators for further processing,
which are in the process of adjustment/ reconciliation. In the opinion of the management, stagnancy in respect of such
advances is periodically reviewed and provisions required, if any is accordingly made.
2.5.iii Unit 1 at Narora Atomic Power Station (NAPS) has been taken for modernisation/ renovation and upgradation from November
01, 2005, and has been commercialized on February 25, 2008 and the expenditure incurred for modernization/ renovation and
upgradation has been capitalized accordingly during the year. Unit 2 at NAPS has been taken for modernization/ renovation and
upgradation from December 18, 2007 and it is treated as a project. Accordingly, unidentifiable expenses incurred are
apportioned to CWIP and profit and loss account in accordance with accounting policy adopted by the corporation.
2.5.iv Unit 3 at Kaiga has been commercialized on May 6, 2007 and the expenditure incurred on the Project has been capitalized
during the year. Unidentifiable expenses between Kaiga Unit-3 & Unit-4 (Project) is distributed equally in accordance with
accounting policy adopted by the corporation.
2.5.v CWIP at Kudankulam includes gain on Foreign Exchange Rate fluctuation amounting to Rs35505.91 lac (Previous Year:
Rs13599.37 lacs).
2.5.vi Other Expenses in EDC at Kudankulam includes Loss due to Foreign Exchange Rate Fluctuation amounting to Rs1.48 lacs
(Previous Year Rs2.81 lacs).
2.6 Inventories
As per Technical appraisal made by the management, it is of the opinion that slow moving and surplus inventory lying with the
Corporation as at the yearend are serviceable and in good condition. Accordingly, provision has been made there against in the
books of accounts, where identified.
The management affirms correct identification of Shortage/ obsolescence of stores, spares and capital inventories which are
non-moving/ slow moving, in view of technical reasons.
Insurance spares for Kaiga Unit-3&4 have been capitalized along with Assets of Unit-3 proportionately as per the identification
made by the concerned Engineer-in-Charge.
2.7 Vide Notification no. DAE/OM/No.3/10(17)/87PP dated December 22, 1988, the corporation is collecting levy from SEBs for
Decommissioning of power plants, on behalf of DAE and the levy is credited to Decommissioning Fund account, as required by
the said notifications.
2.8 Investments include Bonds received from various SEBs in the form of RBI securitised 8.5% tax free and taxable bonds/ long term
advance against Debtors outstanding on Sale of Power upto September 2001, in accordance with the recommendations of
Ahluwalia Committee.
2.9 During the year Decommissioning Fund levy aggregating to Rs2861.02 lacs (Previous year Rs3277.12 lacs) has been collected
on the basis of net units exported to SEBs & others, at tariffs notified by DAE.
Expenditure During Construction includes Internal Consumption of Power in respect of Projects amounting to Rs801.39 lacs
(Previous Year Rs779.80 lacs) considered at cost of generation.
2.10.a Debtors at NAPS include Rs7733 lacs (previous year Rs7733 lacs) recoverable from Delhi Electric Supply Undertaking (DESU)
which is more than 3 years old. These dues have been confirmed by the Ministry of Power, hence being fully recoverable, no
provision is required to be made for the same in the opinion of the Management.
2.10.b Debtors at Head Office include Rs 30.21 lacs (Previous Year Rs 30.21 lacs) recoverable from Bhartiya Nabhikiya Vidyut Nigam
Limited (BHAVINI), a company under the same Management.
2.10.c (i) Balance of Advances to Suppliers/ Advances to Contractors and Deposits are subject to confirmation in respect of Kaiga.
(ii) Balance with DAE, account with Government Bodies, Fringe Benefit tax (FBT) recoverable from Gujarat Urja Vikas Nigam
Limited (GUVNL) and Chattisgarh State Electricity Board (CSEB) are subject to confirmation/ reconciliation and
consequential adjustment thereof in respect of TMS.
(iii) Balances with Government Bodies, Amount recoverable from DAE relating to Gratuity and interest on Gratuity relating to
Canteen Employees, Amount recoverable from State Electricity Boards relating to FBT are subject to confirmation and
reconciliation in respect of KAPS.

(iv) Balance shown under Supplier's accounts at RRS are subject to confirmation and consequent adjustment, if any.
(v) Balances of Sundry Creditors, Balance with DAE, Advances to Suppliers/Contractors and Amount recoverable from
Government Bodies are subject to confirmation/ reconciliation and consequential adjustment thereof in respect of CMM.
(vi) Balance of Sundry Creditors, Advances to Suppliers/ Contractors and Deposits are subject to confirmation and
consequential adjustment if any, at Head Office.
2.10.d Deposit with Government Departments/ Public Bodies and State Electricity Boards lying at Head Office includes Rs. 24 lacs paid
for construction of 100 flats against arbitration award, is pending approval in High Court and is subject to confirmation.
2.11 For the actuarial valuation of the liability of Gratuity & leave salary, following disclosures are made:
Valuation Valuation
Date Date
31st March, 31st March,
2008 2007
I Assumptions as at
Mortality LIC (1994-96) Ult LIC (1994-96) Ult
Discount Rate 7.50% 7.50
Rate of increase in compensation 4.00% 4.00%
Rate of return (expected) on plan assets
Withdrawal rates 0.80% 0.80%
Expected average remaining service 18.15 years 17.48 years
(Gratuity)
17.48 years
(Leave
Encashment)
Gratuity as Leave
on 31st Encashment
March, 2008 as on 31st
March, 2008
Rupees Rupees
II Changes in present value of obligations
PVO at beginning of period# 831,383,713 579,083,538
Interest cost 61,096,381 42,350,190
Current Service Cost # 75,547,886 75,757,622
Benefits paid # (33,530,609) (28,828,685)
Actuarial (gain)/loss on obligation (80,074,282) (24,678,099)
PVO at end of period # 854,423,089 643,684,566
III Changes in fair value of plan assets
Fair Value of Plan Assets at beginning of period # - -
Expected Return on Plan Assets - -
Contributions # 33,530609 28,828,685
Benefits Paid # (33,530,609) (28,828,685)
Actuarial gain/(loss) on plan assets - -
Fair Value of Plan Assets at end of period # - -
IV Fair Value of Plan Assets
Fair Value of Plan Assets at beginning of period # - -
Actual Return on Plan Asset # - -
Contributions 33,530,609 28,828,685
Benefit paid (33,530,609) (28,828,685)
Fair Value of Plan Assets at end of period # - -
Funded Status (854,423,089) (643,684,566)
Excess of actual over estimated return on Plan Assets - -
V Actuarial Gain/(Loss) Recognized
Actuarial Gain/(Loss) for the period (Obligation) 80,074,282 24,678,099
Actuarial Gain/(Loss) for the period (Plan Assets) - -
Total Gain/(Loss) for the period 80,074,282 24,678,099
Actuarial Gain/(Loss) recognized for the period 80,074,282 24,678,099
Unrecognized Actuarial Gain/(Loss) at end of period - -

Gratuity as Leave
on 31st Encashment
March, 2008 as on 31st
March, 2008
Rupees Rupees
VI Amounts to be recognized in the balance sheet and
Statement of profit & loss account
POV at end of period 854,423,089 643,684,566
Fair Value of Plan Assets at end of period - -
Funded Status (854,423,089) (643,684,566)
Unrecognized Actuarial Gain/(Loss) - -
Net Asset/(Liability) recognized in the balance sheet (854,423,089) (643,684,566)
VII Expense recognized in the statement of P&L A/C
Current Service Cost 75,547,886 75,757,622
Interest Cost 61,096,381 42,350,190
Expected Return on Plan Assets - -
Net Actuarial (Gain)/Loss recognized for the period (80,074,282) (24,678,099)
Expense recognized in the statement of P&L A/C 56,569,985 93,429,713
VIII Movements in the liability recognized in Balance Sheet
Opening Net Liability 831,383,713 579,083,538
Expenses as above 56,569,985 93,429,713
Contribution paid (33,530,609) (28,828,685)
Closing Net Liability 854,423,089 643,684,566
2.12 Income Tax assessments of the Corporation have been completed up to financial year 2004-05 corresponding to Assessment
Year 2005-06.
2.13 With effect from Assessment year 1997-98, Income Tax department has considered levies for Research & Development,
Renovation & Modernisation and Decommissioning collected by the Corporation from SEBs, as a part of taxable income of the
Corporation. The Corporation has disputed such treatment by the Tax department. The matter which was pending with
Appellate Authority for assessment year 1997-98 was finalised by ITAT against the corporation on April 5, 2007, against which
the corporation has appealed in the Hon. High Court of Mumbai. During the year, an amount of Rs. 5808.16 lacs (Previous year
Rs. 2591.94 lacs) has been paid under protest towards Income Tax against such levies and has been appropriated from
respective funds.
2.14 The Corporation has adopted Accounting Standard 22 "Taxes on Income" issued by Institute of Chartered Accountants of India
(ICAI) with effect from the current financial year.
The accumulated net deferred tax liability as on April 1, 2007, amounting to Rs. 122201 lac on account of timing differences
between book and tax profits as on April 1, 2007 has been recognized and charged to General Reserves. Deferred tax Liability/
(Assets) as on April 1, 2007 comprise timing differences on account of:
(Rupees in Lacs)
Depreciation 127262.65
Expenditure/Provisions allowable (5061.65)
122201.00
Deferred tax expense during the year amounting to Rs. 48064.80 lac on account of the timing differences between
book and tax profits for the current year has been charged to the Profit & Loss account.
Deferred tax Liabilities/ (Assets) as on March 31, 2008 comprise timing differences on account of:
(Rupees in Lacs)
Depreciation 175800.20
Expenditure/Provisions allowable (5534.40)
170265.80
Since Income Tax payable on Income from generation of power is recoverable from SEBs/ Electricity Companies, the
amount of deferred tax so recognized is recoverable on becoming part of the current tax. Therefore, such deferred tax is
considered as recoverable and netted from such deferred tax liability/ expense.
2.15 Provision for Income-tax; Income-tax on income of Decommissioning Fund, Research & Development Fund and
Renovation & Modernization Fund paid from the respective funds; and Contingent Liabilities on account of Income-tax;
are subject to reconciliation and consequential adjustment thereof, if any.

2.16 Advance Income tax of Rs. 10220.92 lacs (previous year Rs. 15487.81 lacs) is net of provisions made for Income tax
Rs. 74050.84 lacs (previous year Rs. 200229.54 lacs).
2.17 The operation of the Corporation of generation of electricity is considered as a single segment, which operates in one
geographical segment; hence Segment Reporting as required under Accounting Standard (AS)17 is not applicable.
2.18 Disclosure in respect of Related Parties pursuant to AS 18 on Related Party Disclosures:
2.18.a Key Management Personnel and Enterprises having Common Key Management Personnel.
Key Management Personnel: Dr S K Jain, Chairman & Managing Director
Enterprises having common key management personnel: Bhartiya Nabhikiya Vidyut Nigam Limited (BHAVINI)
2.18.b During the year following transactions were carried out with related parties in the ordinary course of business:
Transaction/ Name of Relationship Amount Received
Service rendered in respect of awarding Rs. 738.34 lacs
contracts and inspection of materials (Previous Year Rs. 176.41 lacs)
2.19 Outstanding amount as at the year end relating to dues payable to the Corporation's Suppliers which are Micro, Small and
Medium Enterprises to the extent possible to be ascertained and identified from available information aggregates to Rs. 10.78
lacs is furnished below:
(1) Abbott Air Systems (2) Ionics
(3) Smart Technologies (4) SP Equipments and Services
2.20 In the opinion of the Management, the value on realisation of current assets, loans and advances in the ordinary course of
business will not be less than the amount at which these are stated and provision for all known liabilities is adequate and not in
excess than reasonably necessary.
2.21 Expenditure in foreign currency (on Payment Basis)
(Rupees in Lacs)
2007-08 2006-07
i) Project related payments including
Kudan Kulam (KK) Project (Net of Tax) 7924.32 11251.16
ii) Other matters (Travelling, subscription to books,
periodicals, membership fee, etc) 2117.30 2986.66
2.22 Receipts in foreign currency

(Rupees in Lacs)
2007-08 2006-07
i) Guest House Receipt (at KK Project) 7.83 11.16
2.23 Managerial Remuneration Paid/ Payable to Managing Director & Whole Time Directors
(Rupees in Lacs)
2007-08 2006-07
i) Salaries 30.91 25.21
ii) Contribution to Pension and other Funds, Provision for leave encashment 3.25 1.74
2.24 Remuneration to Auditors

(Rupees in Lacs)
2007-08 2006-07
i) Audit Fees:
To Statutory Auditors 7.50 7.50
To Branch Auditors 8.20 8.20
ii) Tax Audit Fees
To Statutory Auditors 2.84 2.37
To Branch Auditors 3.44 2.87
iii) As expenses:
Paid to Statutory Auditors 1.64 0.89
Paid to Branch Auditors 0.59 2.12
iv) Certification Fees:
Paid to Statutory Auditors & Branch Auditors 4.18 1.53

2.25 Disclosure in respect of Accounting Standard 20: Earnings per Share

Earnings per share (EPS) (after tax) is calculated as under:
Year Numerator Net Profit Denominator Weighted Earning Per Share (Rs)
as per Profit and Loss Average number of equity
Account (Amount in lacs) shares outstanding
2007-08 107849.62 101453327 106.30
2006-07 157077.88 101453327 154.83
2.26 Disclosure of provision as required under AS-29 Provisions Contingent Liabilities and Contingent Assets
Sl No Nature of Provision Provision Provision Provision Provision
provision & expected outstanding made utilised reversed outstanding
time of outflow at the beginning during during during at the end
of the year the year the year the year of the year
Nil Nil Nil Nil Nil Nil
2.27.i Licensed and Installed Capacities (as certified by the management)
Nuclear Energy Wind Energy
a) Licensed capacity Not applicable Not applicable
b) Installed capacity 4020 Mwe 10 Mwe
(Commercial units) (Nuclear) (Wind)
2.27.ii Quantitative information in respect of Generation and Sales of Electricity
Electricity Nuclear Energy Wind Energy
Generation 2007-08 16,964.02 22.74
(In Millions KWh) 2006-07 18,785.23 3.51
(Includes Precommercial)
Sales 2007-08 14,604.17 22.74
(In Millions KWh) 2006-07 16,408.94 3.51
(Includes Precommercial)
Rupees in lacs 2007-08 3,32,717.94 665.10
2006-07 3,59,121.95 87.81
(Rs in lacs)
2007-08 2006-07
2.28 Value of imports calculated on CIF basis 194238.76 122998.18
In the opinion of the management, the break up between (i) Components and spare parts and (ii) Capital goods, being
confidential in nature, has not been disclosed.
2.29 The information regarding value of imported spare parts and components consumed and value of all indigenous spare parts and
components consumed and percentage of each to the total consumption being confidential in nature, in the opinion of the
management, has not been disclosed as per DAE Order No. AEA/18/i/89-ER/3345 dated November 22, 1989.
2.30 As stipulated in AS-28 Impairment of Assets, the corporation assessed potential generation of economic benefits from its
business units and is of the view that assets employed in continuing businesses are capable of generating adequate returns over
their useful lives in the usual course of business, there is no indication to the contrary and accordingly the management is of the
view that no impairment provision is called for in these accounts.
2.31 Figures of previous year have been regrouped and rearranged wherever necessary to make them comparable with current year figures.
2.32 The amount in the Balance Sheet and Profit and Loss Account are rounded off to the nearest thousand and indicated in lac of rupees.
2.33 Schedules 1 to 16 to the Balance Sheet and Profit and Loss Account form an integral part of these Accounts.
For and on behalf of Board of Directors
Nuclear Power Corporation of India Ltd
SRIKAR R. PAI J. K. GHAI DR S. K. JAIN

Company Secretary Director (Finance) Chairman & Managing Director
Mumbai
Dated: May 16, 2008

Balance Sheet Abstract and
Company's General Business Profile

STATEMENT PURSUANT OF PART IV OF SCHEDULE VI TO THE COMPANIES ACT, 1956
I. Registration Details
Registration No L 4 0 1 0 4 M H 1 9 8 7 G O I 1 4 9 4 5 8
State Code 1 1 Balance Sheet Date 3 1 0 3 2 0 0 8
II. Capital Raised During the Year
Public Issue N I L Rights Issue N I L
Bonus Issue N I L Private Placement
Equity N I L
Preference N I L
Issued to Government N I L
III. Position of Mobilisation and Deployment of Funds (Amount in Rs. Thousands)
Total Liabilities 3 4 2 6 9 1 2 8 2 Total Assets 3 4 2 6 9 1 2 8 2
Sources of Funds
Paid up Capital * 1 0 1 4 5 3 3 2 7 Reserves and Surplus 1 2 0 4 0 9 5 2 0
Secured Loans 6 6 8 7 0 0 0 0 Unsecured Loans 5 3 9 5 8 4 3 5
Application of Funds
Net Fixed Assets (including 2 5 0 6 7 4 9 1 5 Investments 2 4 5 1 1 6 3 7

Capital Work in Progress)
Net Current Assets 6 7 5 0 4 7 3 0 Misc. Expenditure 0 0
Accumulated Losses N I L
IV. Performance of the Company (Amount in Rs. Thousands)
Turnover (Gross Revenue) 4 2 6 6 3 5 9 2 Total Expenditure 3 0 6 3 2 4 6 0
Profit/Loss Before Tax + 1 2 0 5 0 1 3 6 Profit/Loss After Tax + 1 0 7 8 4 9 6 2
Earning per Share ** 1 0 6 . 3 0 Dividend %** 3 . 1 9
** On Pro-rata basis
Generic Principal Services of the Company(as per monetary terms)
Item Code No. N I L
Product Description G E N E R A T I O N O F P O W E R

Srikar R. Pai J.K. Ghai Dr. S.K. Jain


Cash Flow Statement
For the Period Ending March 31, 2008
(Rupees in Lacs)
2007-08 2006-07
A CASH FLOW FROM OPERATING ACTIVITIES:
Net Profit before tax and extraordinary items 120501.36 129,104.50
Adjustments for :
Add: (a) Depreciation 73378.65 66,361.88
(b) Prov. For Obsolete stock (664.87) 872.31
(c) Prov. For doubtful debts (17.14) (294.38)
(d) Prov. For doubtful advances (186.30) (17.60)
(e) Prov. For Gratuity 388.49 2,685.43
(f) Prov. For Leave encashment 727.13 1,672.18
(g) Loss on sale of fixed assets 75.43 55.55
(h) Write off of adv. debited to misc exp 0.00 183.12
(i) Prior Period 1497.54 75198.93 283.95 71802.44
195700.29 200906.94
Less : (a) Prov. No longer required 3025.24 306.39
(b) Profit on sale of fixed assets 42.14 3067.38 1,834.06 2,140.45
192632.91 198766.50
Adjustments for :
Decrease/(Increase) in Debtors 15607.35 (20,971.40)
Decrease /(Increase) in Inventories (681.85) (8,852.87)
Decrease/(Increase) in Other Current Assets (8888.09) (15,204.69)
Increase/(Decrease) in Current liabilities (25227.79) (19190.38) (20,919.16) (65948.12)
CASH GENERATED FROM OPERATION 173442.53 132,818.38
Add: Tax Reimbursement by SEBs 0.00 43,487.10
173442.53 176305.48
less : Taxes Paid 10981.54 12,570.21
NET CASH FROM OPERATING ACTIVITIES 162460.99 163735.27
B CASH FLOW FROM INVESTING ACTIVITIES

Purchase of Fixed Assets (156324.27) (242,222.65)
Sale of Fixed Assets 1770.46 2,303.91
Investments(Net) 51342.77 19,051.06
Interest on Earmarked Funds 8834.08 8,370.95
Taxes paid on earnmarked funds (5808.16) (2,591.94)
Capital Work in Progress (2802.17) (64,675.61)
NET CASH (USED IN) / FROM INVESTING ACTIVITIES (102987.29) (279764.29)
C CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from issue of Equity share capital
Loans and advances sch 8 31345.45 3,775.01
Loan from banks and Russian credit 48742.08 411,604.88
Repayment of bonds (16509.40) (13,545.80)
Interim Dividend for current year(including tax thereon) (35098.50) (34,207.50)
Final Dividend Paid for previous year(including tax thereon) (20033.47) (13,040.86)
Payment to BHAVINI 0.00 (70.00)
NET CASH (USED IN) / FROM FINANCING ACTIVITIES 8446.16 354515.73
Net (Decrease)/Increase in cash and
cash equivalents (A+B+C) 67919.86 238486.70
Cash & Cash equivalents as at the commencement
Of the year (Opening Balance) 552485.21 313,998.51
Cash & Cash equivalents as at the commencement
Of the year (Closing Balance) 620405.07 552,485.21
NET (Decrease)/Increase as disclosed above 67919.86 238486.70

Nuclear Power Corporation of India Ltd
SRIKAR R. PAI J. K. GHAI DR. S. K. JAIN

Mumbai,
Dated: May 16, 2008

Notes

Notes

Notes

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On course
and ready...
siting
design
construction
commissioning
operation
maintenance
waste management
renovation & modernisation
upgrades
plant life extension
dickenson www.notension.biz

(A Government of India Enterprise)
REGISTERED OFFICE
16th Floor, Center I, World Trade Centre NUCLEAR POWER CORPORATION OF INDIA LIMITED
Cuffe Parade, Colaba, Mumbai - 400 005
www.npcil.nic.in 21st ANNUAL REPORT 2007-08
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Nuclear Power Corporation of India Limited

NUCLEAR POWER CORPORATION OF INDIA LIMITED

We Generate Nuclear Power,

Annual Report 2007-08 01

Corporate Information ______________________________________03

02 Nuclear Power Corporation of India Limited

M/s. Uberoi Sood & Kapoor

M/s. A. Bafna & Co.

Annual Report 2007-08 03

“Tarapur is where India's quest for developing nuclear

04 Nuclear Power Corporation of India Limited

BWR - Boiling Water Reactor

Map for representation purpose only, not according to scale.

TARAPUR ATOMIC POWER STATION-3 & 4

Annual Report 2007-08 05

TAPS-1&2 received Fire Safety Award for the year 2006.

NAPS received Industrial Safety Award for the year 2006.

KGS-1&2 won Industrial Safety Award for the year 2007.

SAFETY AND OTHER AWARDS

National Safety Council awarded a plaque to TAPS-1&2 for “Factories

The presentation of TAPS-3&4 in the National level convention for

“Suraksha Puraskar” of NSCI Safety Award 2006 to NAPS.

“Safety Innovation Award 2007” conferred to NAPS by Safety & Qualilty

“Gujarat State Safety Award-2006” and 'Certificate of honor for lowest

KAPS was selected as runner-up of National Safety award (NSA-2006,

KGS won the Golden Peacock Award from World Environmental

06 Nuclear Power Corporation of India Limited

To develop nuclear power technology and to

To maximise the power generation and profitability from nuclear

To increase nuclear power generation capacity in the country,

To continue and strengthen Quality Assurance activities relating to

To develop personnel at all levels through an appropriate Human

To continue and strengthen the public awareness programmes for

To share appropriate technological skills and expertise at national

To bring about modernisation and technological innovation in

To coordinate and endeavour to keep the sustained association with

Annual Report 2007-08 07

2005-06 2006-07 2007-08 2005-06 2006-07 2007-08 2005-06 2006-07 2007-08

08 Nuclear Power Corporation of India Limited

4,266 1,203 ANCILLARY SCHEMES

Income Profit NEW PROJECTS

THE FINANCIAL TRAJECTORY

SOURCES OF FUNDS ASSETS

Reserves & Surplus Projects

Annual Report 2007-08 09

SHREYANS KUMAR JAIN S.A. BHARDWAJ J.K. GHAI G. NAGESWARA RAO

10 Nuclear Power Corporation of India Limited

Annual Report 2007-08 11

H.L. BAJAJ SURYA P. SETHI ANAND MOHAN CHANDAN ROY

12 Nuclear Power Corporation of India Limited

Annual Report 2007-08 13

14 Nuclear Power Corporation of India Limited

Annual Report 2007-08 15

16 Nuclear Power Corporation of India Limited

of the chariot. The banks, rating agencies and investors deserve

It is now time for me to move on to the Directors’ Report,

Chairman WANO inviting Dr. Jain to present the

Annual Report 2007-08 17

generation, DAE has been working on a three-stage nuclear power

In addition to the PHWR programme, Light Water Reactors have also

The Fuel Hunt

18 Nuclear Power Corporation of India Limited

Bearing the stamp of Indian