Corporate Governance

The philosophy is: As a good corporate citizen, the Company is committed to sound corporate practices based on conscience, openness, fairness, professionalism and accountability in building confidence of its various stakeholders in it thereby paving the way for its long term success. The Board The CMD, whole time Directors and Independent Directors (nominated/ through search committee). All the agendas placed e!ore the "oard are appro#ed y the concerned Director The Directors ma$e Disclosure o! Interest in %orm &' AA pursuant to (ection &)* and &)) o! the Companies Act, +),-. I! and when any matter comes to the "oard in which a Director is interested in any way, the particular Director e.cuses himsel! !rom the discussion o! that item !or a !ree and !air discussion. In terms o! /a#ratna guidelines and the listing agreement, the "oard o! Directors ha#e constituted the !ollowing su 0committees o! the "oard: i) ii) iii) i#) #) #i) #ii) Audit Committee (hareholders/In#estors 1rie#ance Committee Committee on Management Controls Contracts (u 0Committee 2ro3ect (u 0Committee In#estment/Contri ution (u 0Committee Committee o! the "oard !or allotment and post0allotment acti#ities o! /T2C4s (ecurities

The "oard o! Directors has also set up the !ollowing 1roup o! Directors !or in0depth analysis o! #arious matters and its recommendations !or consideration o! the "oard: i) ii) iii) i#) 1roup o! Directors !or 5igilance matters 1roup o! Directors !or /on05igilance matters 1roup o! Directors !or C(6 matters 1roup o! Directors !or 76 matters

Non-mandatory requirements Remuneration Committee: Independent Directors are paid only sitting !ees at the rate !i.ed y the "oard within the ceiling !i.ed under the Companies Act, +),- and appro#ed y the 1o#ernment !or attending the "oard Meetings as well as Committee Meetings. Shareholder Rights: The 8uarterly !inancial results o! the Company are pu lished in leading newspapers and also hosted on the we site o! the Company. (igni!icant e#ents are also disclosed on the company we site.

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Audit Quali ication: It is always Company4s endea#or to present un8uali!ied !inancial statements. Training to Board !em"ers: "oard o! Directors are !ully rie!ed on all usiness related matters, ris$ assessment and minimi9ing procedures and new initiati#es proposed y the Company through presentations made y senior e.ecuti#es/ pro!essionals and consultants. #histle Blo$er %olicy: %raud or suspected !raud in#ol#ing employees and the total supply chain are in#estigated with utmost speed. Communication: (%inancial results, shareholding pattern, disclosure, etc) %er ormance &valuation: 2er!ormance o! !unctional directors on the "oard is also e#aluated through a per!ormance e#aluation system (target setting, midyear re#iew !or ministry e#aluation as per M:;. Transparency and Accounta"ility It had set up an Audit Committee in the year +)),, much e!ore the setting up o! Audit Committee had ecome mandatory in the year &<<<. /T2C is a signatory to the ;/ 1lo al Compact. The ta le elow pro#ides an o#er#iew o! the sta$eholder role and consultations:
Sta'eholder

1o#t. o! India In#estors

Customer

(orum (ecretary le#el re#iew

Con!erence, >or$ (hops, A1M, DII ? %II meet) 6egional customer meet, commercial/ technical committee meeting 2u lic hearings 5DAC Meetings, =mployee (ur#ey 2u lic hearings 2re0 id con!erence, (upplier meet Audits, inspections, clearances, compliances 2ress 6elease 2ress con!erence

Agenda 2er!ormance, Target (etting, /ew initiati#es

1rowth, progress, opportunity, shareholders4 8ueries/ grie#ances %eed ac$, ma3or issues, assessment o! !uture re8uirements, technical/ commercial agenda o! the region. Community de#elopment issues Issues o! concern, grie#ances and !eed ac$ Issues relating to tari!!s Aatest de#elopments, technical speci!ications Audits, clearance, inspection To $eep the general pu lic and community appraised o! de#elopments

(requency =#ery 8uarter

@uarter/ Annual (i. monthly/ 8uarterly /eed ased/ 8uarterly /eed ased /eed ased need ased /eed asedB /eed ased, de#elopments

Community =mployees 6egulators (uppliers (tatutory odies Media

)ey *mpacts+ Challenges and ,pportunities

)ey impacts (Aand, water, air, ash, !orest and sa!ety) Challenges (%uel, pro3ect e.ecution, de t reco#ery, 6?6, di#ersi!ication, !und)
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,pportunities ( ac$ward integration (!uel), !orward integration (distri ution, nuclear, rand e8uity, etc.) Strategies (di#ersi!ication, ad#ance technology, selling power at mar$et price, etc.) Strengths (cash !low, high 2A%, go#ernment support, etc.) Ris' !anagement (!orward and ac$ward integration, entity and enterprise0wise ris$ register)

%er ormance *ndicators

,verall 1eneration (";) 2A% (D) A#aila ility (D) Total Income (6s million) 2AT (6s million) 1eneration / =mployee (M;) 5alue Added/ =mployee (6s million) 2AT per =mployee (6s million) MA/: M> 6atio &nvironment 7and: /T2C increases ash utili9ation and increased the height o! ash dy$e. 2ro3ects are not located in protected areas. :! course, Fahalgaon is located near 1anga ri#er ut with necessary en#ironmental clearance. #ater: /T2C does not draw ground water !or its operations. Ma3ority o! water withdrawal is !rom ri#ers/ dams/ canals and only one plant i.e. (imhadri (uper Thermal 2ower 2ro3ect is using seawater !or cooling purposes. (ossil (uel: In order to ma$e comparisons o! !uel use e!!iciency o#er the years, Cycle e!!iciency (which is the e!!iciency o! energy con#ersion !rom heat energy o! the !uel to electrical energy) has een considered to e more appropriate. The a#erage cycle e!!iciency o! coal ased stations !or the past three years are as !ollows: Gear &<<,0<&<<-0<* &<<*0<C A#erage Annual Cycle =!!iciency Cycle =!!iciency (D) (Coal) E,.'+ E,.-E E,.*E Cycle =!!iciency (D) (1as) 'E.<< 'E.&& '&.*' &<<,0<+*<.) C*.-' C).)+ &)EE)E ,C&<& *.C+ '.'' &.-<.)+ &<<-0<* +CC.* C).'C )<.<) E,EC<* -C-'* *.)) '.* &.)+ <.)+ -../-.0 -..12 2-1-3 2-143..4// /3430 0130 5162 6146 .102/

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Total 8uantity o! !uel used during the year &<<*0<C is as !ollows: S1No1 + & E ' !aterial Coal 1as Ai8uid %uel (/aphtha) Ai8uid %uel (7(D) 8nit MMT MM(CMD MT FA Consumption +&E.)& ++.CE <.-CE &E,,'<

In addition to primary !uels (coal/gas/li8uid !uel), small 8uantities o! secondary !uels (!uel oils) are also used during startup and sta ili9ation o! coal ased thermal power plants. "oth H the primary as well as secondary !ossil !uels are completely consumed in the process and there!ore cannot e recycled. The only possi ility a#aila le is to reco#er ma.imum heat energy !rom the !uels which is eing done at the stations through multiple heat reco#ery systems li$e A2 heaters, 72 heaters, Air pre heater, etc. 7owe#er, the entire 8uantity o! lu e oil and insulating oil used in power stations are recycled y centri!uging which helps in reduction in net oil consumption, cost o! generation and ad#erse impact on the en#ironment. Au.iliary 2ower (Internal) Consumption) =&AR &<<,0<&<<-0<* &<<*0<C Coal Based :>; -.)) -.*) -.-* Gas Based &.+* &.<, &.+<

Air &missions and %ollution Control: In most o! the de#eloped countries limits are prescri ed !or (:&, /:. and (2M emissions either on normati#e emission standards (mg//mE) or on total 8uanti!ied emissions (Ton/yr). In India, limits are in place !or (2M (mg//mE) only. %or the year &<<*0<C, the estimated emissions o! pollutants through stac$ were as !ollows: Total =missions (T/yr) *'))&C E)<*'+-E+<* =mission Intensity(gm/$whr) E.C &.< <.C

(:& /:. (2M

Note

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

Ash !anagement: Ash Generation and 8tili9ation :in !illion Ton; -..5-.< -..<-./ Ash 1enerated E).+ Ash ;tili9ed &<.C
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-../-.0 'E &E.*

?isposal o ,ther #aste: /T2C !ollows the principle o! E I64s (6educe, 6euse and 6ecycle). S No1 + & E Misc. %errous (crap ? /on0%errous (crap (Tons) Au e oil J Trans!ormer :il (FA) ;sed "atteries (/o.) -../-.0 +C<) +,,C +E+) ?estination Auction through M/s M(TC (old to registered recyclers Collected y #endor supplying new atteries under uy ac$ arrangement

A orestation: Till date /T2C has planted more than +C.E* million trees at its pro3ects throughout the country. NT%C and Climate Change ?iversi ied uel mi@ or po$er generation comprising hydro, nuclear and renewa le energy ased power generated apart !rom the e.isting coal and gas ased power generation. This will reduce emissions intensity (C: & emissions grams/$whr) in the process o! power generation. "y &<+*, /T2C intends to ha#e a more di#ersi!ied !uel mi. with *<D o! its capacity ased on coal, around +'D ased on gas, +&D ased on hydro, ED nuclear and +D ased on renewa le energy sources. In terms o! capacity, /T2C has a target o! setting up hydropower capacity o! ),<<< M>, nuclear power capacity o! &,<<< M>, and renewa le energy capacity o! +,<<< M> y &<+*. In the long run, switching o#er to non0!ossil !uel ased power generation holds the $ey to mitigation and sustaina ility. >ith wider dissemination o! technology, cost o! renewa le energy is li$ely to ecome a!!orda le in the !uture. Rene$a"le &nergy Sources: Construction o! hydro power plants and a capacity totaling +,)&< M> is under implementation. :ut o! the +,<<< M> planned y /T2C !or renewa les y &<+*, solar power shall account !or +, M>. (:thers are >ind H -,< M>, (mall 7ydro E<< M>, "iomass H +, M>, 1eothermal H E< M>). %easi ility studies ha#e een ta$en up !or setting up a +< M> solar !ield at Anta. A , M> solar plant at Andaman ? /ico ar is also eing e.plored. *ntegrated Coal Gasi ication Com"ined Cycle :*GCC; technology Supercritical and 8ltra Supercritical Technologies: Green Aouse Gas &missions rom NT%C: Total C,& &missions :!TByr; 4<24<3/-5 C,& &mission *ntensity :gmB'$hr; 05315

All NT%C Stations :Coal CGas;

&missions o ,9one ?epleting Su"stances: C%C in all air conditioning systems ha#e een replaced y 7C%C. (ome o! the stations ha#e already replaced e.isting 7C%C
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ased air0conditioning system to #apor a sorption systems !or !urther reducing the use o! o9one depletion su stances. Social %er ormance /T2C has a strong wor$!orce o! &E-*' employees spread across India and has all the pro#isions, li$e, 2%, gratuity, insurance, ene#olent !und, etc. There is a * days mandatory training !or each employee in a year. Training include sa!ety, ris$ control, hospital management, so!t s$ill, power plant related technical training, etc. Today, there are +,+<< women employees wor$ing in /T2C against &&,,*' male employees. Auman Rights The Company secretary is the Director (1rie#ances). The incidences o! grie#ances reported under the system o#er past - years and their status is gi#en in the ta le elow: Grievances Status 1rie#ance cases at the eginning 1rie#ance Cases 6ecei#ed 1rie#ance Cases Disposed 1rie#ance Cases :utstanding ./-.0 &&& +< .<-./ E E& &) .5-.< & E' E+ , .3-.5 ' &, &* & .6-.3 ' 'E 'E '

The a o#e cases comprise o! grie#ances related to salary payment, reco#eries o! dues, increment, wor$ing conditions, lea#e, allotment o! company accommodation, medical !acilities, non0e.tension o! ene!its under rules, trans!er, promotion, and li$e issues. /T2C lays great stress on =mployees 2articipation in Management (=2M). The 3oint councils at the Corporate Ae#el consist o!: +. =mployee wel!are/ ene!its related H /ational "ipartite Committee (/"C), /=%I (/T2C =.ecuti#es %ederation o! India), and &. 2roducti#ity related H /T2C Koint 2er!ormance Committee (/K2C), /=%I on 2roducti#ity. At 2ro3ect / (tation Ae#el there are plant le#el council, shop le#el council and other 3oint committees producti#ity cost control, health, sa!ety, recreation, etc. :n an a#erage ,<0,, union association meets across /T2C ta$es place e#ery month. Dedicated ulletin oards ha#e een put up at units where decisions o! these !ora are displayed. Impro#ements in wor$place en#ironment ha#e also come !rom the way o! suggestion schemes and @uality Circles. =mployee in#ol#ement is also sought through creating opportunities !or meaning!ul wor$ li$e @Cs, ,( etc. /T2C units are :7(A( and (A C<<< certi!ied. There are no such operations in /T2C, which ha#e incidents o! !orced/compulsory la or.

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?eveloping a Culture or Success Sa ety at $or' %lace: 6is$ assessment o! all ha9ardous e8uipment and processes is done as re8uired under :7(A(/I( +C<<+. Compulsory (a!ety Training to all the employees including contractor wor$ers is ensured e!ore posting at wor$place and daily pep tal$s are gi#en at wor$sites and systems are eing monitored at regular inter#als. ;n!ortunately, !i#e !atal accidents ha#e occurred at /T2C (tations during the year &<<C. These accidents ha#e ta$en place due to !all !rom height (:ne), electrical !lash o#er (Two) and caught in etween (Two). =n8uiry committees constituted y the competent authority in#estigate these accidents. The recommendations o! the committees are circulated to all the pro3ects/stations !or ta$ing correcti#e actions. &ngagement $ith Society (6?6, 2IC, 5DAC, 6A2, C(6 HCD) Anti D Corruption measures: S1 No1 + & E ' , ?escription =.onerated Closed 6emo#al !rom (er#ice Dismissal 6eduction to lower post/ran$ Total -../-.0 <, <& <+ <+ <C +*

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