Annexure-II

Business Overview
Organizational Description
Organizational Environment

1. Organization’s SIZE, LOCATION and OWNERSHIP.

Nabinagar Super Thermal Power Project, Stage-I :

Stage-I, 3 X 660 MW

Investment Estimation : Project completion cost- Rs 15,132 Crore

Land requisition : 2970 Acres (including Stage-II)

Address : Shivan, PO-Ankorha, Dist- Aurangabad, Bihar 824303

2. Main features of the organizational culture, covering PURPOSE, VISION,

MISSION and VALUES of the organization are as below.

A. Vision

To be the best Power generating company supplementing the

need for Powering India’s Progress

B. Mission

Page 1 of 25
 Generate and provide reliable Power and services to customers
at competitive price with eco-friendly and state of the art-super
critical technology

C. Purpose

To set up & commission Nabinagar Super Thermal Power

Project having 3 units of 660 MW each in stage-I and 3 units of
660 MW each in stage II as per approved plan by using latest
construction technologies & best safety practices during
construction.

To operate Super Nabinagar Thermal Power Project having

ultimate capacity of 3960 MW in the efficient, safe & eco friendly
manner to provide quality power to beneficiaries

D. Core Values of Nabinagar Super Thermal Power “ ICOMIT “

I : Integrity

C : Customer Focus

O :Organization Pride

M : Mutual Respect & Trust

I : Innovation & Learning

T : Total Quality & Safety

Page 2 of 25
C. Nabinagar Super Thermal Power culture

Nabinagar Super Thermal Power’s objective is to institutionalize these

core values and create a culture of team building, empowerment,
equity, innovation and openness which would motivate employees
and enable achievement of strategic objectives.

E. organization’s main products and services :

Sole product of NPGC is “power” generated using coal as primary

fuel.

F. Main delivery mechanisms of NPGC for reaching to our CUSTOMERS

:

 The generated power transmitted through 400 kV lines.

 Thus NPGC is limited to switchyard beyond which Transmission
Company feed power to discom. Mainly the power Generated
by NPGC shall be distributed by the state distribution boards
who shall take off the power generated thru the grid.
 NPGC customers are primarily consists of state distribution
companies in member states grids.

Page 3 of 25
  To maintain the grid stability demand and supply consistently
should be matched for which communication between grid and
NPGC is established on continuous basis.
G. Major facilities and technologies at NPGC

1 Super critical technology in Boiler

2 Improved Performance due to Higher Temperature and Pressure
3 Wireless communication for control and monitoring of offsite
system
4 Communication of monitoring parameters through Profybus
5 High pressure governing system of Main turbine
6 Advance governing (Proportional valves) of HP & LP bypass system
7 Two MDBFP of 30 % capacity instead of single MDBFP of 50 %
capacity for better redundancy
8 Advance metallurgy of boiler pressure part and turbine.
9 SOFA is provided in furnace for controlling NOx.
10 Improved material selection of pressure part for easy maintenance
11 Current of HT / LT drives provided in CCR through SCADA
12 Sub Station automation system (SAS) through optical fibre.
13 Installation of FGD (Flue gas desulphurisation) has been proposed
for controlling SOx
14 AWRS and ETP is being installed for attaining Zero water discharge.
15 FINMAT system
16 Intranet ( ASP .NET and SQL server )
17 Bio-metric attendance system

Page 4 of 25
18 Contract labour monitoring system

H. Regulatory environment and compliance's under which NPGC is

required to operate are as follows : (Main industry, OH&S,
environmental, financial and product standards, regulations,
accreditation, certification or registrations to be complied with).

1.Forest Clearance: As per DFO, Aurangabad letter No: 185 dated 13.02.10
there is no forest land in the Project land being acquired.

2.MOEF Clearance: MOEF clearance received vides letter dtd. 27.12.10.

3. Mega Power Status: Obtained on 30.04.09.

4. CWC/WRD Clearance: Applied on 11.12.07. CWC accorded clearance

vide letter dated 11.08.10.

5. Company Registration : September,2008

6. Factory License : Presently working under BOCW act, Factory license is

in the process of application

Page 5 of 25
b). Organizational Relationships of NPGC

1. Organizational structure and governance system

Due to nature of JV, The Board Chairman and Managing Director is

Dir (P) NTPC who supervises the project construction & execution
activities.

50 Percent Bihar & 50 Percent NTPC, Principal Secretary of

Government of Bihar is the Chairman of Board of NPGC

2. KEY CUSTOMERS and STAKEHOLDER groups, and market SEGMENTS

The key customer states areas below

Sl.No State MW
1 Bihar 1552.2 MW
2 Uttar Pradesh 209.0 MW
3 Jharkand 60.0 MW
4 Sikkim 10.0 MW
5 Unallocated 148.5 MW
Total 1980.0 MW
Table-1 :Distribution of the power which shall be generated by NPGC

Though financially NTPC ( 50%) and Bihar State (50%) are key stake
holders, all the people of Bihar particularly the near by villages (which are
being affected by project execution ) and the key equipment suppliers

Page 6 of 25
and contractors are also being considered as the key stakeholders in the
power generating venture in addition to the customer group that is the
beneficiary states who shall get the generated power distribution.

Page 7 of 25
 Organizational Challenges for NPGC

(a) Competitive Environment

NPGC’s competitive position In power industry , relative size and growth

in industry & markets served.

In recent years, power generation has assumed paramount important for

the growth of industry, agriculture and service sectors. Nation’s GDP is in
direct proportion to the growth rate of power generation in India. However,
All is not well within the power generation industry. After the
implementation of the UDHAY scheme, most of the bottle necks which are
suffering power industry got vanished and 1st time in independent India, to
increase the energy demand Currently GOI launches SAUBHAGYA scheme
which will increase the energy demand in India.

As NPGC is relatively a small player and have focussed state as Bihar ( who
shall draw 78% of the future power generation ), the market dynamics are
not going to really affect the performance NPGC. NPGC has already
executed the PPA as per the Table-1 :Distribution of the power which shall
be generated by NPGC.

Page 8 of 25
BUSINESS CHALLENGES

• Land acquisition.

• Quality assurance.

• Environmental Issues

1.Sulpher content <0.5% of coal

2.Ash content <34% of coal

3.particulate emission <50 mg/nm3

4. Exit velocity of gas <22 m/s

• Resettlement and Rehabilitation

To keep our selves competitive and to increase our efficiency we have

incorporated the following state of art technologies in our plant.

PERFORMANCE IMPROVEMENT SYSTEM

• Supercritical technology in Boiler

• Improved Performance due to Higher Temperature and Pressure

• Sliding pressure turbine operation

Page 9 of 25
 • Dry ash evacuation system

• Burner management system (BMS)

Which shall give the following advantages in the competitive market

• It has supercritical technology which haves improved efficiency.

• Reduced emission for each Kwh of electricity generated

• 1% rise in efficiency reduces the CO2 emission by 2-3%

• Expert manpower for operation of the power plant.

Principal factors that determine our success relative to our competitors

• Availability of suitable and adequate land

• Distance from coal mine

• Distance from available reliable sources of water

• Road and railway access

• Environmental aspects

Page 10 of 25
 Our main available sources of comparative and competitive data.

1. Power Ministry web site

2. ABT (Availability Based Tariff)system
3. Feasibility study Report

(b) Strategic Context

Our KEY business, operational, and human resource STRATEGIC

CHALLENGES and advantages associated with organizational
SUSTAINABILITY.

As the Coal availability is the major variable for long term sustenance of the
entity, a long term coal supply agreement is being executed with coal India
which may get fructify by Feb,2018.

In addition to the above, to fail safe the future generation issues, NPGC is
already started working on power generation thru renewable energy
resources like Solar and wind. It can be seen that we already started
installing light masts in the nearby villages with support of Solar Technology
only. It is also planned to provide our NPGC township with the rooftop solar
panels which shall cater to the energy requirements of the NPGC.

Plans are in pipeline to harvest the power generation thru the bio-waste and
for the same, 6 No.s of foodie bio-waste systems are procured which
generate power as well as fertilizer from the waste food and organic waste.

Page 11 of 25
 The main asset of NPGC is our dedicated and compete human resource and
we always treat our man power as the main asset of our organization whose
competency is giving us the cutting edge in the competitive industry.

As all NPGC manpower is deputed from the JV parent i.e NTPC who’s core
competency is Operation of the plant execution of the Project, there is a
huge demand for our executives else where in the industry.

We recognize the role played by rewards & recognitions in motivating our

executives. To achieve this end, we have created a culture of rewards and
appreciation through celebration of various achievements and recognizing
the contributions behind such success. There are reward schemes for
individuals and teams excelling in their work right from the stage of project
construction to the running of the power station, as well as, awards for
special events/competitions where employees can demonstrate their
competence and skills. NPGC also recognizes the contribution of employees’
families by involving them in various events and competitions on a regular
basis.

(c) Performance Improvement System

KEY elements of NPGC PERFORMANCE improvement strategy, including
evaluation and LEARNING PROCESSES.

The main challenge in the context of our core values is its application and
relevance in day to day business activities. To this end, our organization has
taken various steps, namely, creating a suitable weightage for core values in

Page 12 of 25
our Performance Management Systems (PMS). Our Organization Conduct
regular training programs on values and including sessions on values in our
key programs. Rewarding value based behavior and creation of Value
Actualization Task force. A Vision & Values Revisit Workshop by our top
management is a major component of our core value actualization.

Learning Process & Training

 A online knowledge bank in ESS (Employee Self Service in SAP system

) has been established and all the experienced executives are regularly
sharing their Ideas & knowledge in the knowledge bank which shall be
referred by all junior executives to hone & update their skill set.

 Mentor – Mentee program is systemized so that junior level executives

get proper guidance in planning their career and update their skill set.

 Professional Circles and rewarding the best professional circle for

innovation / creativity is in place for promoting the thinking brain for
coming out with out of the box approaches and ideas.

 All the executives who get inducted into NPGC thru NTPC shall go
thru one year executive trainee (ET) training program.

 Every Year , All the executives shall go thru minimum 7 Days training
for updating their technical knowledge, skill set and for adopting to
the changes in technical and management systems.

Page 13 of 25
  Recently i.e in 2017 , a policy of Job rotation has been implemented
for mandatory changes in the Job profile after max 10 years tenure in
a particular job profile
Status of the applicant w.r.t certification for ISO 9001 / ISO 14001 / OHSAS
18001/ SA 8000 / others.

As NPGC is still in construction phase and as most of the systems and

processes are still in evolution and stabilization phase, we are yet to apply
and certified for ISO 9001 & ISO 14001. However, We are planning to apply
for OHSAS 18001 & SA 8000 in year 2018. In can be seen in recent year
2017, We got Greentech Gold safety award for safety practices at work
place which is a recognisation of our management stress and focus on
adopting in benchmark practices in the industry.

Page 14 of 25
Annexure-III

SECTION – A- Community Development Activities (CSR)

A.1 Present Board Structure comprises of the following:

Sl. Name Post in Designation Address

No. NPGC
01 Shri A0.K.Gupta Chairman Director, NTPC Bhawan, Scope
Commercial Complex, 7
Institutional Area,
Lodhi Road, New
Delhi- 110003
02 Shri Pratyay Director CMD Vidyut Bhawan, Bailey
Amrit (BSPHCL) Road, Patna- 800001
03 Shri Director MD Vidyut Bhawan, Bailey
R.Lakshmanan (BSPHCL) Road, Patna- 800001
04 Shri K.S. Director RED (ER- 2nd Floor, Lok Nayak Jai
Garbyal 1HQ) NTPC Prakash Bhawan, Dak
Bunglow Chowk,
Patna-800001
05 Shri Sudhir Director ED (Finance), NTPC Bhawan, Scope
Arya NTPC Complex, 7
Institutional Area,

Page 15 of 25
 Lodhi Road, New
Delhi- 110003

A.2
a) Company publishes its monthly e-magazine where programs
implemented under CD Activities are mentioned. This e-magazine is
circulated among all employees of NPGC.

b) Yes. Net worth of NPGC is more than Rs.500 crores.

c) The Company has been allocated Rs.52.00 crore collectively for year 2016-
17 & 2017-18 in which Rs. 9.51 crore have been spent.

A.3-The Company do not have CSR Policy as the Company has not started
the production yet and have made no business too. Instead, Rehabilitation
& Re settlement and Community Development Activities are carried out thru
the budget allocated to NPGC regulated by R&R Policy of NTPC (Copy
Enclosed).

A.4

a) Complete CSR Policies and strategies are framed by the approval of the
Directors as well as final fund allocation is also approved by them. Director
(HR) has the sole responsibility for CSR Policy.

b) No, the board has not appointed any CSR committee, which reports to it
directly. However, CSR Activities are monitored by Sh. PRATYAY AMRIT (IAS)

Page 16 of 25
followed by District Magistrate of Aurangabad Sh. Kanwal Tanuj. Also, a
monthly review meeting is conducted in the chairmanship of CEO, NPGC

c) Director (HR) frames the Policies related to CSR.

A.5

a) & b) FILES ATTACHED IN FOLDER

A.6 - Sh. PRATYAY AMRIT (IAS) monitors the programs initiated by the
concerned department. Sh. Kanwal Tanuj (DM, Aurangabad) also keeps an
eagle’s eyes to the Community Development Activities of the Company.

A.7- Cells such as Public Information System is established at R&R

Department which enables the public and visitors to deal with their queries.
VDAC (Village Development Advisory Committee) is also formed for
providing a platform to the locals of Project Affected Villages. Grievance
Addressal Mechanism also deals in looking up of issues such as
transparency, disclosure and anti- corruption, integral to the fulfillment of
the organization’s corporate social responsibility.

A.8- The Organizational Structure for measurement and auditing of CSR

performance is that the CSR performance as well as the expenditure is cross
functionally audited by our appointed internal Audit Team at Project Level
and then at regional level and afterwards finally it is audited by external
agencies at Corporate Level.

Page 17 of 25
SECTION - B

B.1- A major focus area of the community development of NPGCL includes

the following:

i). Education
ii). Health
iii). Infrastructure
iv). Welfare
v). Sanitation
vi). Community Development of Surrounding Areas
Livelihood through direct and indirect ways is provided through Public
Private Partnership model.

B.2-The Company allocates fund and provides sponsors hips to various

NGOs, educational institutions and others.

Livelihood through direct and indirect ways is provided through Public

Private Partnership model by the means of sub contractors

B.3- Monthly meeting is organized at District level chaired by DM. Meeting

with local Representatives like Mukhiya and ward counselors are also
organized as per need.

B.4-The Project NPGC has not yet started any production and also not yet
made any business. However, a grant of Rs.63.50 Crore has been provided
to execute and implement Community Developmental Activities.

Page 18 of 25
B.5- Employees of the Company are enthusiasts in participating cultural
activities. Some of the prominent works done by them are providing aid and
volunteer of schools for under privileged, etc.

B.6- Yes, the Company assists, encourages and supports the employees to
participate in social activities. During working days too they are allowed to
contribute their skills for social issues.

B.7- Programs are initiated in request of the villagers after consent and
reports received by concerned government departments. An observation
and survey is done initially to find the grass root status of particular
program. After the implementation of the program an observation is made
again to figure the output of the program.

SECTION - C

C.1

A) As a CSR Policy, our institutional objective has been to reach all PAPs
residing in, working, doing business or cultivating land or having rights over
resources within the project area as per the categorization and provisions
for eligibility in the policy are entitled for compensation for their lost assets
as per the law of the land and for other R&R benefits as per livelihood loss
as per categorization detailed in this policy, sufficient to assist them to
improve or at least regain their previous standard of living.

B). Indicative List of Possible Areas of Interventions are as follows:-

Page 19 of 25
1. Drinking water facility
2. Education
3. Improving the quality of life of girl child
4. Improving lives of vulnerable persons such as physically challenged,
destitute women, widow
5. Improving lives of scheduled caste and scheduled tribe people
6. Electricity
7. Solar lighting system
8. Health and family welfare
9. Irrigation facilities
10. Sanitation and public health
11. Animal care
12. Promotion of sports and games
13. Promotion of art and culture
14. Promotion of livelihood for economically weaker sections through
forward and backward linkages
15. Relief of victims of natural calamities like earthquake, cyclone, drought,
flood situation in any country
16. Supplementing development programs of the government
17. Construction of community centres/ night shelters/ old age homes
18. Imparting vocational training
19. Setting up of skill development centres
20. Adoption of villages
21. Scholarships to meritorious students belonging to SC, ST, OBC and
disabled categories
22. Adoption or construction of hostels (especially those for SC/ST and girls)

Page 20 of 25
23. Skill training, entrepreneurship development and placement assistance
programs for youth
24. Building roadways, pathways, and bridges
25. Entrepreneurship development programmes
26. Activities related to continuation of R&R action plan
27. Capacity building of the project affected persons to improve their
employability

C.2.
A). Yes, the organisation’s internal audit system cover audit of CSR Programs
and performance, including the system for collecting and analyzing data
relevant to CSR projects & targets.
A joint committee comprising VDAC representatives, the local government
(the collector's representative) and the CD representative shall be formed to
evaluate the CD projects on quarterly basis. This active participation of local
stakeholders inculcates a sense of ownership among the community, and is
essential from the point of view of sustainability. The CD staff of the
operating station monitors the CD projects on monthly basis. The CD cell at
regional headquarters monitors the CD projects implemented.
At the corporate level, the outcome of the meeting of regional heads of CSR
is deliberated for suggesting suitable policy interventions. The director (HR)
reviews the progress on half-yearly basis.

B). The effectiveness of the CD projects is evaluated through credible

external agencies for providing required feedback and inputs to formulate
and improve the projects in future.

Page 21 of 25
C.3.
A). The company has operations spread across several states, and most of
its projects/stations are located in remote rural areas, where basic
infrastructure is inadequate. NTPC has always endeavoured to be a leader in
community development (CD) and corporate performance, which can be
measured in terms of economic, social, and environmental impacts.
NTPC resolves to contribute towards sustainable power development by
discharging corporate social responsibilities (CSR) that would positively
impact on customers, employees, shareholders, communities, and the
environment in various aspects of its operations. However, activities and
expenditure related to staff benefits are not counted as CSR.
NTPC CD policy also conforms to the guidelines on CSR for central public
sector enterprises, issued by the Department of Public Enterprises, Ministry
of Heavy Industries, and Public Enterprises, Government of India. All the
operating stations of NTPC shall follow a synchronized reporting format.
The reporting format for CD projects is placed at Annexure VI

B). For up skilling, know-how and capacity building in the community

around the Project vicinity, NPGC has organised a Skill Development
Training Program where youths of Project Affected Village have been sent
to Learning institution and also conducts various kinds of local training
programs for the people of the villages.

C.4.

Page 22 of 25
A). Various Programmes that are conducted and implemented by R&R
Department is covered by the local media. Along wit hthis, Employees are
awarded about such Program through notice board clips and e-magazine of
NPGC- Vihar Vani.

B). Yes, the Company reports all the aspects in the Annual Report. (Copy
Enclosed)

C). No, CSR is not yet published separately.

SECTION - D

D.1

Major initiatives under CSR by NPGC are:-

i). MOBILE HEALTH SERVICE

Page 23 of 25
ii). HEALTH CAMPS

iii). Distribution of educational items like bags, note books, sweaters, etc in
large quantity.

To provide health service to the Project Affected Persons of villages which

are affected from Nabinagar Power Generating Company, MOBILE HEALTH
SERVICE is being provided to the public.

D.1 Title:- MOBILE HEALTH SERVICE

Objective:- To provide door step health facilities to local Project Affected

Persons.

D.2. There was an acute absence of Govt. Health Care Centers in the
specified area. Nearby Govt. Primary Health Care Centre is located at Block
level.

D.3. Health Service is provided with the association of renowned Indian Red
Cross Society. A team of well qualified Doctors and compounders are part
of the Mobile Health Service.

D.4. Impact of the Program can be seen and observed at mass scale. With
the implementation of the program, easy and reliable heath care facility is
received by the villagers. Since the rural area is under developed,
transportation facilities are scarce in the NPGC too which lead to delayed

Page 24 of 25
first aid facilities. But, with the presence of Mobile Health Van Service
facilities goes to the door steps of the beneficiaries.

D.5. To ensure the suitability, the Program is being reviewed every month. It
is developed in a way where facility outreaches the maximum population.
The MOBILE HEALTH SERVICE Program covers 22 villages in the Project
vicinity.

Page 25 of 25