NTPC

Welcomes You
to

5th Analysts and Investors Meet August 3 2009 A t 3,
Mumbai

A Presentation
on

NTPC
By y Mr. A.K.Singhal Director (Finance) NTPC (Finance),

Corporate Vision
Corporate Vision

“A world class integrated A power major, powering India’s growth, with increasing global presence presence”

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Contents
1 2 3 NTPC today Performance Highlights:2008-09 & Q1/10 Opportunities and Challenges

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Evolution of NTPC
1975
Set up in 1975 with 100% ih ownership by the Government of India

1997
GOI conferred status of “Navratna’ – granting more autonomy to the Board of Directors.

2004
Listed on 5.11.2004. 5 11 2004 Became 3rd largest by Market capitalisation

2005
Rechristened as

2007

2008
Strategic alliances : JV Co. with BHEL for EPC and Mfg, JV Co. with Bharat Forge for mfg castings JV Co. for setting-up a power exchange.

First step towards t d NTPC Limited in line strategic with its changing diversificationbusiness portfolio to Decides to transform from a 44 6% thermal power utility acquire 44.6% stake in TELK to become world class integrated power major.

Stakeholder Value Creation

Investments philosophy aimed at I t t hil h i d t maximizing returns; adherence to best practices

89.5 % owned by Govt. of India FII own about 3% and rest 7.5% owned by domestic institutions & public

Strong Management team, Professional and dedicated organization

Sound business concept & High standards of Corporate Governance

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000 (2 000 MW) Region Northern Coal 7.294 30.980 MW MAUDA (1000 MW) RGPPL (1480 MW) RAMAGUNDAM (2.950 7.293 350 – 1.395 3.035 6.600 MW) SIMHADRI (2.600 7.955 28.435 THERMAL POWER STATION Western Southern Eastern JVs Total HYDRO POWER PROJECTS GAS POWER STATIONS ONGOING PROJECTS VALLUR ( (1000 MW) ) KAYAMKULAM (350 MW) Capacity includes capacity under construction 5 .500 MW) KAHALGAON AURAIYA (1.644 FARAKKA (2.480 5.600 MW) 3.340 MW) (652 MW) ANTA (413 MW) SINGRAULI RIHAND (2.347 7.360 3.000 MW) TALCHER Thermal (460 MW) MW Total 9.644 SIPAT 2.312 1.400 2.709 Gas 2.000 MW) (3.653 3.260 MW) KORBA (2.Pan India Presence No of plants NTPC Owned KOLDAM (800 MW) DADRI (817 MW) FARIDABAD (430 MW) BTPS (705 MW) LOHARINAG PALA (600 MW) RUPSIABAGAR KHASIABARA (260MW) LATA TAPOVAN (162 MW) Capacity (MW) Coal Gas/Liquid fuel Total Owned by JVs RAMMAM III BONGAIGAON (90 MW) (750 MW) 15 7 22 24.000 MW) BARH VINDHYACHAL (4.820 MW)(520 MW) TANDA IGSTPP (440 MW) UNCHAHAR (1.300 MW Coal & Gas Total 4 26 2.100 MW) GANDHAR (648 MW) KAWAS (645 MW) Regional Spread of Generating Facilities TALCHER KANIHA (3.294 30.350 TAPOVAN VISHNUGAD NCTPP (1.400 814 24.050 MW) (2.

NTPC. 574 billion Owns total assets of Rs.1778 billion Ranks 126th on the basis of market Cap globally (Forbes 2009 data) Has a net worth of Rs. 1052 billion The Size Ranked # 1 independent power producer in Asia in 2008 ( by Platts.Today The Stature One of the three largest Indian companies with market cap of Rs. a division of Mcgraw-Hill companies) 5th largest generating company in Asia 317th Largest company in the world (FORBES ranking – 2009) The largest generator in India Powering Growth Responsibly 6 .

3.NTPC – Subsidiaries (6) Generation NTPC Hydro Ltd. 1. Net-worth above Rs. 81 Billion. (74%) Pipavav Power Development Co Ltd (100%)* NTPC Group as on 31. (100%) NTPC Electric Supply Company Ltd. (100%) Services Power Trading NTPC Vidyut Vyapar Nigam Ltd.2009: Total Assets Rs.110 Billion. 574 Billion Profit after tax Rs. (51%) Bhartiya Rail Bijlee Company Ltd. * Under winding up Figures in brackets indicate holding of NTPC 7 . (100%) Kanti Bijlee Utpadan Nigam Ltd.

Ltd (50%) National High Power Test Laboratory Pvt Ltd (25%) Transformers and Electricals Kerala Ltd. (44.67%) NTPC Tamil Nadu Energy Company Ltd (50%) NTPC Alstom Power Services Pvt Ltd (50%) BF NTPC Energy Systems Ltd (49%) NTPC SCCL Global Ventures Pvt Ltd (50%) Nabinagar Power Generating Company Pvt.29%) Power Trading National Power Exchange Ltd (16.6%) Meja Urja Nigam Pvt. Ltd (50%) NTPC SAIL Power Company Pvt Ltd (50%) Ratnagiri Gas and Power Pvt Ltd (28.33%) Figures in brackets indicate holding of NTPC 8 .NTPC – Joint Ventures (15) Power Generation Aravali Power Company Pvt Ltd (50%) Services Utility Powertech Ltd (50%) Equipment Manufacturing NTPC BHEL Power Projects Pvt Ltd (50%) Coal Acquisition International Coal Ventures Pvt. Ltd (14.

Contents 1 2 3 NTPC today Performance Highlights:2008-09 & Q1/10 Opportunities and Challenges 9 .

Performance Highlights:2008-09 & Q1/10 1 2 3 4 5 Capacity Growth Operational Performance Financial Performance Fi i lP f Commercial Performance Others 10 .

4868 million for R&M of Auriaya GBPP Rs.Capacity Growth Increase in commissioned capacities 500 MW at Sipat-II 500 MW at Bhilai Expansion Q1/10 500 MW at Kahalgaon-II Increase in commercial capacities 1000 MW at Sipat –II 1000 MW at Kahalgaon-II Investment approved I t t d Project investment Rs. 545 million for R&M of (Phase-I) extension works at Rihand (2X500 MW) Rs 673 million for R&M of Controls & Instrumentation System works at Korba 3X500 MW 11 . 121458 million for Rihand-III and Vindhyachal-IV Vindhyachal IV R&M investment Rs.

36% 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 CAGR of generation 21.6 All India PLF 91.09 92.41 72.7 NTPC 206.966 MW NTPC 27850 MW 71.54 87 54 73.56  BUs 88.79 84.2 87.3.3 NTPC AvF 92.12 91.6 89.2 10 Coal Based stations achieved over 90% PLF NCTPP achieved 99.43 76.192.2009 18.21% All India All India 147.24 78.8 90.47 77.91 87.94 BUs NTPC PLF 89.Operational Performance 2008-09 Installed Capacity Crosses 30000 MW TOTAL CAPACITY TOTAL CAPACITY AS ON 31.83% since inception 12 .64% 28 64% 81.51 87 51 74.79% 28.36% 1000 MW commissioned GENERATION 2008‐2009 2000 MW commercial capacity addition GENERATION  GENERATION GROWTH All India 723.

Operational Performance – Generation & Capacity utilization Generation – Quarter and Year PLF – Year and Quarter 2009 2008 92.19% 67. •Q1 generation contributed to 48.87% 77.41% of the generation Contributed increase in the country during fiscal 2009.56% 87.61% Q1-10 92.87% 79.01% 77.12% 85.64% 93.14% 67.87% for gas stations during Q1 13 11 . In ESO by 11% over corresponding quarter •Highest ever PLF of 79.74% BUs Coal Stations Gas Stations All India 91.08% Q1-09 92.93% Q1-10 92.19% Availability – Year and Quarter 2009 Coal Stations Gas Stations 92.65% 2008 92.47% 86.14% 78.75% Q1-09 92.16% •Contributed 31. Gross Generation increases by 10%.20% 77.24% 68.15% of country’s addition in generation •In Q1.

645 20.202 21. 452 billion Adjusted PBT up by 8% after adjustment of income tax Recoverable 14 *GOLY-Growth over last Year .140 GOLY* 13% 13% 13% 21% 23% 11% 12% -9% -59% 11% 8% Gross revenue up by 13% Crosses Rs.133 271.148 75.229 93.013 80.Financial Performance – 2008-09(Audited) Rs.501 29.177 400 177 370.107 23.238 33.676 297.385 17.490 359.728 452 728 419.628 220.783 2007-08 400. Million 2008-09 Total income Net Sales Other income Total Expenditure Fuel Depreciation Interest & finance charges PBT Tax PAT Adjusted PAT 452.595 11582 82.981 102.549 28401 74.

052.Debt-Equity is 0.50 0.530 329.3% (14% Last Yr) 14 3% RoNW improves to 16.678 106.052.03.299 16. & Prov . stores Investments Current assets.386 526 386 271.246 573.60 0.937 224. Others (Deferred AAD/ FERV liability) TOTAL 623.FITCH RoCE improves to 14.70 0.20 0 20 0.488 893.YOY Rs.680 260.734 1. 700 600 500 418 400 300 200 100 0 171 0.2009 Gross fixed assets Net block CWIP incl.7% (16.455 491.248 1 052 248 82.377 264.049 139.S&P ‘BBB-’ with stable outlook .253 9.906 79.41 Debt to Net Worth 574 526 486 450 0.931 526.00 17% -8%21% 18% 11% 9% 27% 35% 60% 18% 2004-05 2005-06 2006-07 2007-08 2008-09 Net Worth Year Debt Ratio Highest Credit Rating ‘AAA’ by CRISIL& ICRA AAA ‘BBB-’ with negative outlook .248 31.52 Last Yr) 15 .289 893.835 309.60 0.10 0.701 573 701 345.880 GOLY 17% 26% Rs Billion s.30 0.Robust Financials.1% last Yr) Improved Leverage.45 346 245 202 272 0.880 893 880 82.783 152.03. Million 31.886 25.50 0.983 1.672 255.455 443.52 0.40 0.2008 533. loans and advances Deferred FE Assets TOTAL Equity share capital Reserves and surplus Net worth Long Term Liabilities Current Liab.60 (0.

Million During 2008-09.03.Robust financials leading to strong Cash Flows Rs. Cash & Cash Equivalents : Rs. 149 Billion as on 31.09 171 16 .03. 163 Billion as on 31. 77% of Net Operating Cash Flows used in Investment Activities as compared to 60% during 2007-08.08 Rs.

Financial Performance – Q1 2009-10 (Unaudited) Rs. Million Q1 2009-10 Q1 2008-09 GOLQ 25% Total income Net Sales Ot e Other income co e Total Expenditure 127790 120027 7763 98845 77427 6128 4447 102567 95395 7172 80920 61386 5524 4219 25% 26% 8% 22% 26% 11% 5% Fuel Depreciation Interest & Finance Charges g PBT Tax PAT 28945 7009 21936 21647 4382 17265 34% 60% 27% Better PLF resulting in higher generation Balanced Tariff Regulation 2009 issued b CERC i d by 17 .

year’s Rs 88 bln Total capital expenditure incurred by NTPC Group companies is Rs. bln an increase of 62% over last year 18 177000 126865 87519 80000 70189 53603 3.5X 1.4X 1.3X X Y Years 2006-07 2005-06 2004-05 50000 100000 150000 200000 Rs. 152 bln Rs Outlay for 2009-10 for NTPC’s capital schemes is Rs 177 bln Rs.3X 2. For Group NTPC the outlay is around Rs. 127bln Rs during 2008-09 45% higher than previous year s Rs. 245 bln.Financial PerformanceAccelerated investment in Capex p RAPID EXPENSION Times Projected 2009-10 2008-09 2007-08 Highest ever capital expenditure of Rs. Rs Million .6X 1.

Commercial Performance 100 100 100 100 100 100 100% realization of billing for six years in succession and also for Q Q1/10 Letters of Credit to the extent of 105% of average monthly billing established by all customers 2003‐04 2004‐05 2005‐06 2006‐07 2007‐08 2008‐09 Timely Servicing of Bonds under One-time-settlement Scheme Incentive Incenti e scheme for enco raging encouraging prompt payment continues 66% of energy bills realized within a week of presentation of bill f th k f t ti f for the month Signed PPAs with 24 beneficiaries for new projects of 5820 MW capacity during 2008-09 19 XXX X Realisation of Current Dues (%) Realisation of Current Dues (%) .

bus-ducts." with equal equity participation for short Circuit Testing facility. (NPCIL) for setting up a Nuclear Power Projects. Chattisgarh A JV Company set up along with DVC. New Director (Commercial) and Director (Projects) appointed on the Board. NHPC and PGCIL named “National High Power Test Laboratory Pvt. Q1/10 MoU for 4000 MW Coal Based plant Online High Power Test Laboratory MOU signed on July 12. LT/HT facility transformers Switchgears. NPCIL and NTPC stake in the ratio of 51:49 . 2009 for preparation of DPR for “Repairs of Hot Gas Path C P th Components” which may eventually graduate to manufacturing facility t ” hi h t ll d t t f t i f ilit creation for GT indigenously” by forward and reverse engineering MOU with HAL Foray into Nuclear Power Board of Directors expanded Proposal for formation of JV Company with Nuclear Power Corporation of India Ltd. 7 full time functional directors incl. The company will test power transformers. CTs etc. CMD and two Govt. 5 more independent directors appointed in addition to existing 4 independent directors. 2009 with the Government of Chhattisgarh for establishing a 4000 MW coal based thermal power project having 5 units of 800 MW each at Lara in Raigarh District of Chattisgarh. MOU signed on January 6. Ltd.Other key highlights 2008-09. nominees. 20 .

Awards and Accolades BEST CFO PLATTS TOP 250 GLOBAL ENERGY COMPANY 2008 IPMA AWARD 2005 & 2008 ICAI AWARD Infrastructure Excellence Award CII Exim Bank Award for Excellence 2008 BUSINESS MANAGEMENT Dun & Bradstreet American Express Corporate Award TRAINING BEST WORK PLACE PROJECT MANAGEMENT EFFICIENCY ENVIRONMENT MANAGEMENT OPERATIONAL MANAGEMENT THE AWARDS GALORE ARE IN RECOGNITION OF NTPC’s CONTRIBUTION IN ALMOST EVERY FIELD INDICATING CLEAR INTERACTION BETWEEN PEOPLE AND BUSINESS PROCESS CSR SUSTAINABLE DEVELOPMENT GLOBAL FINANCIAL INDUSTRY PERFORMANCE CORPORATE GOVERNANCE CUSTOMER EXCELLENCE LONG STANDING CONTRIBUTION SERVICE TO NATION SAP award IEEMA POWER AWARD 2008 SCOPE Meritorious Award Star Company of the year Greentech Environment Excellence Award 2007 Business Standard Award 2008 Amity Leadership Award Employer Branding Award 21 .

Contents 1 2 3 NTPC today Performance Highlights:2008-09 & Q1/10 Opportunities and Challenges 22 .

Opportunities and Challenges Sustaining present level of Operational Performance Resources Fuel Security Growth Challenges Growth Manpower Accelerated Organic Growth Diversification and Inorganic Growth Managing Environment Environment Fuel Security Regulatory Environment Managing people Fund mobilization Technology upgradation Competition Corporate Governance 23 .

real time commissioning guidance. Information I f i Enablement • Plant outage/generation MIS IT enablement.Sustaining present level of Operational Performance Strategy –well defined operations Strategy Follow up • Periodic Regional Operations Performance Review (ROPR). RLA specifications. MRO industry initiative. best practice inputs etc. modular spares p g gp g g p purchase. R&M process streamline. efficiency improvement projects. Station Performance Evaluation Matrix. Technical Audits emphasis and redefinition . Sms alerts. coal/gas imports etc. 24 . • Knowledge teams formation maintenance works package reduction formation. Institution Building Resources Availability • Spares/services preparedness planning. long term overhauling planning. plant efficiency mappings. web based MIS. efficiency gap removal f ll l follow-up. PEER review. Outage Preparedness Index. focus on replacements. overhaul real ti t li h l l time guidance. Vendor Development focus.

. NERC maintains a database of more than 5000 generating units around the world through its Generating Availability Data System (GADS) • Obtained database 5000 units from NERC for the period 1982-2005 for benchmarking b h ki Parameter selection for comparison – – – – • Gross Capacity Factor (PLF) for last year Unplanned Outage Factor (Forced Outage) for last year Availability Factor for last year Planned Outage Factor for last three years • Since utility wise data is not available. Performance Benchmarking with world standards NTPC became a member of North America Electric Reliability Corporation (NERC).Sustaining present level of Operational …. the units were compared in two clusters of 200 220 MW capacity and 475 525 MW capacity l t f 200-220 it d 475-525 it 25 .

of NTPC units = 26 26 . of international units in the cluster = 74 Performance comparison (475 – 525 MW) No.Sustaining present level of …. No.

29 96.23 ‐‐‐‐‐‐‐> (% ) 56.15 ‐‐‐‐‐‐‐> (% ) % 91.Sustaining present level of ….86 9. 0. NT P C MIN.6 5.42 56. Performance comparison (200– 220 MW) No.42 100.89 ME A N MA X . NT P C MIN.16 5. HE R S OT ME A N 27 MIN .86 ‐‐‐‐ ‐‐‐‐> (% ) 91.23 2 23 ME A N MA X . of NTPC units = 35 UNP L ANNE D  O UT AG E  F AC T O R   26.02 NT P C 0.82 6.23 ME A N MA X .48 MIN.52 100.76 2. of international units in the cluster = 81 G R O S S  C AP AC IT Y  F AC T O R  (P L F )  No.51 10.69 1.51 ‐‐‐ ‐‐‐‐‐> (% ) 78.29 96. MIN HE R S OT 2.T HE R S O AVAIL AB IL IT Y  F AC T O R P L ANNE D O UT AG E  F AC T O R 17.52 78.1 21 0 NT P C O T HE R S MA X 2.

Fuel Security Strategy -Reducing reliance on fossil fuels by diversification of fuel-mix •Coal based generation to reduce to 70% by 2017 •Hydro generation to contribute 12% by 2017 •Nuclear and renewable to contribute 3% and 1% respectively CAPACITY MIX .2012 (50.644 MW) CAPACITY MIX .TODAY (30.000 MW) CAPACITY MIX .000 MW) COAL GAS COAL GAS 25209 5435 COAL GAS HYDRO 40000 8000 2000 HYDRO NUCLEAR RENEWABLE 53000 10000 9000 2000 1000 28 .2017 (75.

015 29 . NTPC Rihand/Singrauli (25MW) and Andaman and Nicobar Islands (5+1 MW) under consideration. Hydro Energy: – Mini Hydel plans envisaged at three sites Solar Energy: – Solar field at NTPC Anta (10MW). Andhra Pradesh and Gujrat. Planned Renewable Energy gy Portfolio Renewable Energy Source 1 2 3 4 5 6 7 Wind energy Farms Solar PV Power Projects Solar Thermal Biomass Power Projects Geo Thermal Power Project Small Hydro Project Bio Fuel Capacity ( (MW) ) 650 5 10 15 30 300 5 Total 1. Biomass Energy: – Various projects with different technologies t h l i envisaged in Madhya i d i M dh Pradesh and Chhattisgarh Geothermal Energy: – MOU with National Geophysical Research Institute (NGRI) Hyderabad for development of Geothermal energy based power project.Fuel Security Strategy-Foray into Renewable Energy Wind Energy: – 1.010 MW under active consideration in the State of Karnataka.

7 MMT in Q1/09 Domestic Fuel Security • Long term Fuel Supply Agreement signed with CIL for supply of coal to NTPC Power Stations for a period of 20 years Development of Coal Mines • Land Acquisition at advanced stage at PB Coal Mining Project (CMP) • Mining Plan approved for CB CMP & KD CMP.78 MMT (consisting of Domestic Coal of 124.85 MMT of coal received (including imported coal of 3.97 MMT received during 2007-08 Q1/10 32.Fuel Security .Coal Strategy –Sustaining & Enhancing Fuel Security 2008-09 Total Coal Supply received 129. • Environmental Clearance received for PB CMP • 14 MTPA to be mined from Pakri Barwadih (PB) • A JV Company ‘International Coal Ventures Ltd’ incorporated for overseas acquisition and/or operation of coal mines or blocks.41 MMT) as against 122. • Scouting opportunities for acquisition of stakes in Coal Mines in Indonesia and Mozambique Acquisition A i iti of Mines Abroad 31 30 .25 MMT) as against 28.37 MMT & imported coal of 5.

68 MMSCMD received as against 8.9 MMSCMD Gas S gas • New Agreement to be entered with GAIL for Supply of 2. • Agreements with BPCL IOC for utilization of fall back gas Long Term Supply Agreements Participation in Gas Value Chain • Allotted a Block under NELP-V for Exploration activities in Arunachal Pradesh in Consortium (NTPC Share 40%) • Exploration & Production activities in the NELP-V in Arunachal Pradesh in full swing 32 31 .Fuel Security .99 MMSCMD received last Yr.5 MMSCMD of RLNG for 10 Years. Q1/10 14.1 MMSCMD of Spot & Fallback RLNG received as against 2.39 MMSCMD received during Q1/FY09 5.81 MMSCMD last Yr. Purchased 1 9 MMSCMD of regassified LNG from Spot Market and 0 07 MMSCMD 1.9 0.07 on Spot/Fallback Arrangement as against 2.03 MMSCMD received as against 11. BPCL.Gas Strategy –Sustaining & Enhancing Fuel Security 2008-09 APM/PMT Gas of 8.57 MMSCMD during Q1/FY09 l t ith i l f l f 12 9 • G Supply agreement with GAIL in place for supply of 12.

7 +7.5 -3.3/6.5 +0.The Economist 32 .2 India’s GDP Growth is expected to be 2nd highest in the World during 2009 & 2010 leading to sustained demand for electricity d df l t i it As per a recent World Bank report.2 +7.5 0.0 +2.0/-0.5/-3.5 +0.4/1.0 +6.8/-2.0 +4.3/-2.7 -2. India’s GDP is expected to grow at 8.7/1.0% 8 0% in 2010 overtaking China’s GDP growth rate of 7.1/5.2 +0.8 0.5 -2.2 -1.5 -3.5% Global Economic Outlook (Jan 2009) .6 -1.3 +0.6 +0.8/-2.0 +6.5 +3.Rationale for accelerated organic growth… the drivers Growth Drivers: Global GDP Forecasts 2009-10 Consensus Estimate 2009 Consensus Estimate 2010 Worst Case 2009 USA Japan p Euro zone UK China India Brazil World -1.8 +5.6 +2.0 -2.

.2009 Sectorwise Capacity As On 31.4% 7.3.0% 9.1% 7.878 MW 25% 63% Thermal 93.879 MW Nuclear 4.3% 16.2% 11.971 MW Hydro 36.6% At projected GDP growth of 7% . power demand expected to grow significantly 11.8% 9 8% 11.2009 Private Pi t 22. Existing Energy Deficit Need for additional capacity due to soaring energy deficit in India Fuelwise Capacity As On 31.8% for next ten years.03.0% 2003–04 2004–05 2005–06 2006–07 2007–08 2008–09 2003–04 2004–05 2005–06 2006–07 2007–08 2008–09 33 .6% 8.7% 12.3% 9.725 MW Energy deficit Peaking deficit 13.8% 12.Growth Drivers…….242 13 242 MW 9% 15% State 76.115 MW 52% 33% Central 48.120 MW Renewable 3% 13.

.701 704 1.340 6.3% share Source: UNDP Human Development Report 2007–08 – Data for 2004 Low per capita consumption leaves scope for capacity expansion in the power sector • National electricity Policy aims at per capita availability of 1000 k h b 2012 kwh by 34 .459 14.8% share Per Capita Consumption of Electricity India Egypt C a China Brazil Russia Germany Japan USA World Average 2. Low Per Capita Consumption • India is 5th largest power consuming country in the world with 3.68 2.442 7 442 8.684 .465 1.425 7.240 In 2007–08 Figures in kwh • India is 3rd largest power consuming y country in Asia with 11.Growth Drivers….

Growth Drivers….636 MW so far. XI Plan Target-2007-2012 (Revised) Sector Central sector State Sector Private Sector Total Thermal 24840 23301 11552 59693 Hydro 8654 3482 3491 15627 Nuclear 3380 0 0 3380 Total 36874 26783 15043 78700 Year wise XI plan targets vs achievement Year Thermal Hydro Nuclear Total 2007 08 2007-08 2008 09 2008-09 2009 10 2009-10 2010 11 2010-11 2011 12 2011-12 Total 6620 2423 220 9263 9304 1097 660 11061 14229 1805 2000 18034 16655 1741 500 18896 12885 8561 0 21446 59693 15627 3380 78700 NTPC to contribute to 61% of central sector share by adding around 22430MW during XI plan Commissioned 15.. of XI plan target Source : CEA: Executive Summary 35 .

UP KORBA – III (COAL) / CHHATTISGARH FARAKKA – III (COAL) / WEST BENGAL SIMHADRI – II (COAL) AP KOLDAM (HYDRO) / HIMACHAL PRADESH LOHARINAG PALA (HYDRO) / UTTARAKHAND) TAPOVAN VISHNUGAD (HYDRO) UTTARAKHAND MAUDA (COAL) / MAHARASHTRA BONGAIGAON (COAL) / ASSAM Target for 2009-10 g Kahalgaon . JV WITH HPGCLetc.6.unit 7 Total * Commissioned on 28.unit 7 Sipat .JV WITH TNEB NABINAGAR .units 5&6 Korba .Accelerated Organic Growth Strategy-Increasing Generation Capacity 3240 MW already commissioned under XI plan 17930 MW capacity under Construction including 4000 MW under construction in JV companies 17 projects under construction at 16 locations 45 units under construction 7 units of 250 MW each 18 units of 500MW each 8 units of 660 MW each 12 units under Hydro capacity Projects under construction SIPAT – I (COAL) / CHHATTISGARH BARH – I (COAL) / BIHAR (MW) 1980 1980 980 500 500 1000 800 600 520 1000 750 1320 1000 1000 1500 1500 1000 NCTPP – II DADRI (COAL).) VALLUR (COAL) .units 1&2 NCTPP .2009 BARH – II (COAL) / BIHAR 500* 1320 980 500 3300 VINDHYACHAL-IV(COAL)/MADHYA PRADESH RIHAND-III (COAL)/UTATR PRADESH ARAVALI STPP JHAJJAR (COAL-.JV WITH RAILWAYS TOTAL 36 17930 .

forgings.34 Crore subject to final adjustment based on valuation of Assets.66% of equity while TCS 50% equity in the share capital Obtained in-principle approval to set up and operate on July 1. shall operate a Power Exchange at National level. 31. Tripura and EPC works of 100MW CCPP at Namrup. will contributes 16. JV with BHEL “NTPC.Diversification and Inorganic Growth Strategy-Related Diversification Acquisition of 44. balance of plant equipment for power sector “BF NTPC Energy Systems Ltd” incorporated. JV with Bharat Forge Ltd JV to manufacture castings forgings fittings and pressure piping required for power and other castings.6% stake in TELK for manufacturing and repair of high voltage transformers and associated equipment Business collaboration and shareholders agreement signed with Govt of Kerala and TELK Acquired 44. NPEX to provide a neutral and transparent electronic platform for trading of power on “day ahead basis” and ensure clearing of all trades in a transparent.67% equity each.BHEL Power Projects Private Ltd” started functioning as a 50:50 JV JV to manufacture and supply equipments for power plants and other infrastructure projects in India and abroad CMD and two full time directors of the Company selected NTPC Board approved assigning implementation of 500 MW expansion of Singrauli on turnkey EPC contract basis BHEL has issued LOI for BOP works of 726 MW CCPP at Pallatana. Ltd. d Ltd. 2009 37 . Assam to NBPPL.6% stake for Rs. PFC Ltd. d h “National Power Exchange Limited” (NPEX) The JV Co. industries. & NHPC Ltd. fair and open manner with access to all players in the power markets markets. NTPC shall have 49% and BFL 51% The Company is in the process of developing its comprehensive business model. will contributes 16. NTPC Ltd. Setting up of Power Exchange A JV C Company h has b been i incorporated with NHPC L d PFC L d and TCS L d under the name d ih Ltd..

000 MW BY 2017 • Nuclear Power 2000 MW BY 2017 • Renewables ~1000 MW BY 2017 Lateral Integration • Globalization — Setting up of power plants abroad — International consultancy • Power trading • Power distribution Forward Integration Related Diversification • Seven coal mine blocks (~47 MTPA CAP.) Allocated g • One oil/gas block allocated • Sectoral support — PIE — APDRP — Rural electrification — Training under drum • R&M of Power stations • JV For captive power 38 .Way Forward–An Integrated Power Major • Hydel Power ~9.

000 14 MTPA 10 BU 1.644 -4.60 0.000 MW ~35000 30.82 0.000 ~ 47 MTPA 25 BU 2.46 39 .309* Man MW Ratio 0.83 BU (2008-09) -23.000 MW ~ 30000 2016-17 2016~ 75.NTPC BY 2017 … Poised to become a well diversified corporate Present Installed capacity (MW) Coal mining (production) Trading (units traded) Distribution (capacity) Employee strength *Excluding JVs & Subsidiaries 2011-12 2011~ 50.

GE Energy Financial Securities and Kyushu Electric Power Distributed Generation (DG) projects • • • • • • • Assumptions: 1)The largest generating companies with Annual generation above 150 BU 2)The companies having minimum fossil fuel mix of 50% New Technologies • In the domain of CO2 fixation and utilization.600 MW – Tapovan Vishnugad . hydro. yd o.Managing Environment – generating clean power Strategy – Sound environment management NTPC is amongst the cleanest fossil fuel based power generator in the world with CO2 intensity of power generation comparable with the best Renewables • By 2017. solar. biomass and geo-thermal d. Feasibility to set up a 1500 sq. NETRA is actively pursuing biological route using marine algae for producing bio.800 MW – Loharinag Pala .fuels. along with national labs. so a . NTPC plans to have at least 1000 MW thro’ renewable energy resources– wind. b o ass a d geo t e a Currently implementing 1920 MW hydro capacity at – Koldam .520 MW Pre-award activities i progress f 552 MW P d ti iti in for of new hydro capacity MoUs signed for development of Hydro / Renewables 460 MW Kolodyne hydro project with Mizoram With Karnataka for 500 MW wind farms With ADB.0 % of PAT for research and technology development No of projects In operation Under construction DPR prepared 10 6 40 Total Capacity 220 KW 140 KW 1200 KW • • 40 .mtr size demonstration plant at Simhadri TPS is being explored Inducting Flue Gas Desulphurising (FGD) technology in the coal based power plant at Bongaigaon (3X250 MW) 1.

4 MTs of ash.7% i. Strategy – Innovating methods for Ash Utilisation Achieved ash utilization of 56.Managing Environment …. Ash tili ti A h utilization increased to over 5 times in 7 years. i dt ti i 41 . 24.e..

The Challenge of Regulatory Environment Strategy – to strive to remain commercially attractive source of power Average selling price is around Rs.term Power Purchase Agreements Off-take secured for entire output Payment security arrangement in place – TPA upto 2016 and escrow thereafter Adequate evacuation arrangement Associated transmission system for each project being developed by CTU matching with project schedule Regional grids being integrated to provide flexibility in evacuation of power across the country National grid capacity expansion from 17000 MW to 37700 MW under way d 42 .12 per unit in fiscal 2009 Supply decisions based on commercial principles Allocation of power to customers with ability to pay Regulation/reallocation in case of default Long.2.

– Operation and Maintenance Expenditure–at normative rate per MW escalated annually. hedging costs are recoverable.Tariff Regulation 2009-14…… providing certainty for next 5 years CERC issues Tariff Regulations guided by the National Policies Tariff Petitions by the Utility Tariff Fixing Process Tariff Components p • Transparent public consultation process Tariff Orders Supportive Regulatory Structure provides certainty of Revenues for next 5 Years • • • Capacity Charges: – Return on Equity–15. – Interest on Working Capital–Normative – Secondary Fuel–Normative with efficiency sharing Annual Capacity Charges are payable in the ratio of Actual Availability and Normative Availability (depending upon age of the unit for incentive and depreciation). FERV during construction period included in capital cost. Energy Charges–Normative Operating parameters with landed cost of fuel FERV: On normative loan to the extent not hedged. For hedged exposure.5% grossed up for Tax – Depreciation–aligned with Companies Act. 43 . – Interest on Loans–at actual interest rate on Normative loan.

1 Among PSUs NTPC has been ranked Tenth overall Improving Productivity 8.88% in 2008-09 from 3.Managing people-Human Resource Development Strategy –to retain experienced manpower and attract new talent Senior executives possess extensive experience of the industry y Planned interventions at various stages of career Systematic training ensures 7 man days training per employee per year Knowledge sharing & develop Over 24000 highly trained employees including JV s and JV’s Subsidiaries Executive Turnover rate has come down to 1. 1 Among large Companies No.75 4.45 Generation per Employee 44 . 1 in Manufacturing and Production No.1% last year NTPC Limited – Best Employer g g p No.

2.. 5.90 0..7 Million Rs.1 Million Rs. 2.9 Million Rs.7 Million Rs.7 Million Sales Per Employee PAT Per Employee Rs.5 Million Value Added Per Employee Rs 4.Managing people.. Sustained improvement in Per Employee Performance Indicators Rs. 17. 4.8 Million Rs. 10. 13.91 0.85 20042004-05 • 20062006-07 20082008-09 Growth doesn’t have a linear relationship with number of resources.9 Million Man MW Ratio 0.9 Million Rs 3. . Improvement in productivity 45 helps improving bottom lines as well as sustaining competition.

57 14.77 12.5 0.5 3 2.52 0.1 3.07 14 07 14.33 16.29 .Fund Mobilization Strategy – to maintain robust Key Ratios 18 17 16 15 14 13 12 11 10 2004-05 2005-06 2006-07 2007-08 2008-09 ROCE RONW 16.45 0.16 3.91 3.70 15.89 14.5 1 0.41 0.16 14 16 13.89 14.60 2004‐05 2005‐06 2006‐07 2007‐08 2008‐09  Low gearing ratio ensures favored borrower status amongst lenders Financial Leverage to improve RoNW due to higher debt deployment 46 . 9 2 1.5 0 12.56 1.5 Current Ratio Debt to Equity 2.46 0.22 2.

75 billion from banks.Fund Mobilization… Strategy – to leverage strong ratios to raise debt at optimal cost New projects to be financed with Debt equity ratio of 70:30. NBFCs. Banks.19 billion Term loans of Rs. Committed loans of Rs. financial institutions and NBFC tied up 2009-10 Tied up single largest corporate loan with a Public Sector bank for Rs. 243 billion to be drawn over next 2 yrs 47 47 .85 billion Signed loan agreements of Rs.43. Internal accruals sufficient to finance equity portion of scheduled investment Borrowings to made from domestic and foreign sources based on optimal cost of funds Long Term loans/bonds preferred to match project cash flows Projects executed by Subsidiaries and JVs to be financed under project finance route Debt tie-ups 2008-09 Raised bonds of Rs.5 billion with domestic banks Total loans of Rs.115. 453 billion tied up with domestic financial institutions.

Economies.00% by adopting higher Hot Reheat Temperature of 5950C and Super heater temperature of 5650C in 2x660 MW Barh-II project. NETRA 3Es. NETRA (NTPC Energy Technology Research Alliance) to focus on research and technology development related to green power.1% in progress. presently under construction. t ti Adoption of higher g efficiency units Base 0.0% 5. Sub . Efficiency & Environment Progressive adoption of supercritical technology raising the cycle efficiency to 39.7% 3.critical units Unit Size MS Pressure kg/cm2 MS Steam Temp (O C) RH Steam Temp (O C) 500 MW 170 537 537 500 MW 170 537 565 Super .Technological Up gradation Strategy –to imbibe latest technological innovations considering 3 Es • NTPC’s Research and technology development wing.1% Study for adopting p ultra-supercritical technology with efficiency levels of 41.96% from 38. • NETRA building in Greater Noida is the first ECBC (Energy Conservation Building Code) compliant building in NTPC.critical units 660 MW 247 537 565 660 MW 247 565 593 48 .

Competition Strategy –Recent Initiatives to sustain leadership thru better monitoring & Planning Monitoring of ongoing projects on daily/weekly basis Conducting Management committee Meeting-covering practically all sites Video g Conferencing Project Monitoring Centre Set up to identify bottlenecks in project management at an p y p j g early stage and flag it to top management for quick decision Shall move to swift working Pilot implemented at Dadri Integration with BHEL for status of supplies o extend other p ojects cou se To exte d to ot e projects in due course Last Corporate Plan was for 2002-17 Process commenced for revisiting the Corporate Plan and finalizing targets for a period upto 2032 49 Web Based Monitoring g Corporate Plan .

Committee for Controls for award of large value contracts Investors Grievance Committee for expeditious handling of investors Complaints • Recently constituted Remuneration Committee consisting of 3 independent director d di t and one govt. investment decisions. Nominee Directors 9 Independent Directors Audit Committee of independent Directors oversees Financial Reporting Committee on Management Controls review & Monitor management Control System Project Sub-committee for approving FRs. Balanced Disclosures • • Transparency of Operations All important events/ happenings/ material decisions are disclosed on Co pa y s ebs e o Company’s website & to Stock Exchanges • • Internal Control Framework on Financial Reporting • Elaborate Framework consisting of Key controls drawn up and implemented at all 40 units Gap Tracking Reports are reviewed by g Management. Test of operating effectiveness of key controls conducted by Audit Department 50 Enterprise wide Risk Management Framework • Well developed risk portfolio • ERMC: Consisting of 24 Executive Directors in place –meets regularly • Focus on mitigating top risks Controls over Operations • Subject to 3 audits o Independent Audit by C&AG o Independent audit by Statutory Auditors o Internal Audit • • .Sound Corporate Governance Practices Fully Compliant with Clause 49 (Corporate Governance) of Listing Agreement Management Oversight Various Committees of the Board • • • • • Composition of Board of Directors: • • • 7 Full Time Directors 2 Govt. nominee di t t i director Accountability of the Board to the stakeholders • Well established system of appraisal of Directors performance by Ministry of Power Well established PMS for employees at all levels.

Any opinion expressed is given in good faith but is subject to change without notice. 51 . No liability is accepted whatsoever for any direct or consequential y p y q loss arising from the use of this document. depending upon economic conditions. government policies and other f factors. Actual result may vary materially from those expressed or implied.The information contained in this presentation contains forward looking statements.

ntpc.in 52 .co.Power Producer of International Repute www.

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