Presentation on

Corporate Plan of NTPC

Bhawanjeet Singh, DGM, Corporate Planning

Presentation Outline.

Meaning and Framework for Corporate Plan NTPCs Corp. Plan(s) Process and Structure
(Corporate Agenda, SWOT analysis, Business Portfolio, Functional strategies)

Key to success of Planning Process

Presentation Outline.

Meaning and Framework for Corporate Plan

NTPCs Corp. Plan(s) Process and Structure
(Corporate Agenda, SWOT analysis, Business Portfolio, Functional strategies)

Key to success of Planning Process

WHAT IS CORPORATE PLAN?

LONG RANGE
TIME HORIZON

--- S TRATEGIC PLAN

THE TASK OF SELECTING A CORPORATE STRATEGY FOR LONG-RUN SURVIVAL AND GROWTH CONSIDERING: THE ORGANIZATIONS OBJECTIVES ITS ENVIRONMENTAL OPPORTUNITIES RESOURCES

VARIES FROM SECTOR TO SECTOR FOR POWER SECTOR 15 YEARS ROLLING PLAN

STRATEGIC PLANNING INVOLVES UNDERSTANDING THE HARD AND SOFT DATA ABOUT A BUSINESS AND ITS ENVIRONMENT; AND SYNTHESIZING THAT UNDERSTANDING INTO PLAN

GIVEN A VISION, STRATEGIC PLANNING BREAKS IT DOWN IN A STEP-BY-STEP METHOD TO REALISE THE VISION.
STRATEGIC PLANNING IS NOT STRATEGIC PROGRAMMING.

THE STRATEGY MAKING PROCESS IN MORE ABOUT INTUITION, CREATIVITY, SYNTHESIS AND NOT ONLY ANALYSIS.
4

Presentation Outline.

Meaning and Framework for Corporate Plan

NTPCs Corp. Plan(s) Process and Structure
(Corporate Agenda, SWOT analysis, Business Portfolio, Functional strategies)

Key to success of Planning Process

Long term planning process adopted by NTPC

First

Corporate Plan (1985-2000)

Corporate Plan: Looking Ahead (1997-2012) Corporate Plan (2002-2017)

Second Current

FIRST CORPORATE PLAN (1985-2000)

1983- NTPC first Corporate Plan -period of 15 years 1985 to 2000. Post 1991, the power sector started witnessing rapid changes in Government policies affecting NTPCs growth Plan

After announcement of private power policy, Several projects identified by NTPC in its Corporate Plan earmarked for IPPS
The realization of dues assumed serious concern, resulting in paucity of investible funds. The Government started withdrawing investments. Transmission business transferred to NPTC (erstwhile Powergrid) in1991. NTPC adopted vision of becoming one of the largest and best power utility in the world

NTPC was accorded the status of a potential Global Giant - a Navratna in July 1997
7

LOOKING AHEAD VISION 2017

(1997-2012) 2nd C PLAN (2002-2017) 3rd C PLAN

To translate the vision into tangible action plan in the new business environment, Corporate Plan: Looking Ahead 1997-2012 was formulated
It was a 5- year rolling plan i.e to be rolled for next 15 years after 5year i.e 2002

Project Disha Team (NTPC & ATK ) jointly formulated the current Plan Vision- 2017 (2002- 2017) Next rollout is already due

Presentation Outline.

Meaning and Framework for Corporate Plan

NTPCs Corp. Plan(s) Process and Structure
(Corporate Agenda, SWOT analysis, Business Portfolio, Functional strategies)

Key to success of Planning Process

Planning Process

Currently where we are? How do we reach our destination? (Strategic Planning)

The Planning Processes

Where do we want to reach? (our destination)

10

Methodology adopted for formulating the Plan

Vision, Mission, Values and Objectives
Past Performance Appraisal Business Environment Appraisal

Strengths and Weaknesses

Opportunities and Threats

Business Portfolio and Functional Strategies

Capacity Addition scenarios

Inputs from organisation wide intensive discussions
Financial Modeling for next 15 years to determine availability of funds

Plan implementation Strategies

11

Corporate Plan

Section 1: The Corporate Agenda (Vision, Mission, Objectives, Values) Section 2: Review of Past Performance Section 3: Changing Business Environment and Expected Future Trends Section 4: Business Portfolio Section 5: Functional Strategies Section 6: Plan Implementation Strategies

12

Our Vision and Mission

Vision
A world class integrated power major, powering Indias growth, with increasing global presence

Mission
Develop and provide power and related product services at competitive prices integrating multiple energy sources, with innovative and eco-friendly technologies and contribute to society

Business portfolio growth

Financial soundness

Customer focus

Agile corporation

Performance leadership

Human Resource Development

Sustainable Power Development

Research & Development

Objectives

13

Our Core Values BCOMIT

B C O M I T

Business Ethics Customer Focus Organisational and Professional Pride Mutual Respect and Trust Innovation and Speed Total Quality for Excellence

14

Section 2: Review of Past Performance Section 3: Changing Business Environment and Expected Future Trends

STRENGTH
WEAKNESS

OPPORTUNITY
THREAT ANALYSIS

15

Strengths

Largest market share in domestic power generation and a broad customer portfolio across the country Excellent track record of performance in project implementation and plant operations Highly skilled and experienced human resources, exposed to state-of-the-art technologies in project execution and power generation Navaratna status High brand equity among stakeholders Strong balance sheet ability to raise low cost debt Engineering skills in project configuration and package design High national and international ranking/benchmarking Established systems and procedures to institutionalise excellence in business operations received ISO accreditation in several functions/areas In-house training facility (PMI), CENPEEP, R&D, etc that assists in development of the sector Thrust on reducing social costs of capacity growth strong execution of Resettlement and Rehabilitation plans
16

Key Weaknesses

Low risk-diversification of business portfolio: Consists primarily of generation assets Long and multi layered procurement process leading to long lead times and process delays Fragmented IT architecture Gaps in HR systems such as performance management, rewards and incentives and career development Inadequate deployment of a strong knowledge management system that could assist in improving efficiency and effectiveness in all aspects of the business Hierarchy for decision making that affects responsiveness Role ambiguity and dilution within different levels of the organisation

17

Key Opportunities for NTPC

Expand generation capacities by putting up thermal and hydro capacities, maintaining the position of a dominant generating utility in the Indian power sector Broad base fuel mix by considering imported coal, gas, domestic coal, nuclear power etc with a view to mitigate fuel risks and maintain long run competitiveness Lead the development and commercial deployment of non-conventional energy sources especially in the distributed generation mode

Expand services for EPC, R&M and O&M activities in the domestic as well as international markets
Backward integrate into fuel management to exercise greater control and understanding of supply economics

Improve collections by trading, direct sale to bulk customers and active role in capacity allocation in new plants
Execute increased number of power plants that classify for Mega Power Project status, thereby reducing the cost of projects and power generated
18

Key Threats to NTPC

Limited experience of operating in a truly liberalized environment with competition Limited experience of operating in an independently regulated system Delayed SEB reforms and continuing financial ill-health SERCs might mandate lower off take for slow-reforming states Redirecting power may be constrained by inter-regional connectivity Possibility of issues of coal non-availability as coal supply agreements of CIL with the State Gencos and IPPs evolve Lower than expected availability of gas Stringent norms for approval of increase in capital costs for projects in event of time overrun Stringent norms for the utilisation of ash generated by power stations in the absence of adequate demand from user industries and due to the high cost of transportation of ash Stringent environmental norms in the future may add to the cost of generation

19

NTPC BY 2017

PRESENT INSTALLED CAPACITY (MW) 29,894 -3.3 BU (2007-08) -~ 24,000 (2007-08)

2011-12 ~ 50,000 12 MTPA 10 BU 1,000 MW ~2,800,000

2016-17 ~ 75,000 ~ 47 MTPA 25 BU 2,000 MW PLAN UNDER PREPARATION

COAL MINING (PRODUCTION)

TRADING (UNITS TRADED)

DISTRIBUTION
(CAPACITY) ASH BUSINESS (METRIC TONNES) EMPLOYEE STRENGTH MAN -MW RATIO

25547

~ 30000

~35000

0.87

0.60

0.46
20

NTPC BY 2017 - BROADBASED FUEL MIX

CAPACITY MIX - TODAY (29,894 MW)

GAS 18%

CAPACITY MIX - 2012 (50,000 MW)

CAPACITY MIX - 2017 (75,000 MW)

NUCLEA R 3% RENEW HYDRO 1% 12%

GAS 16%

HYDRO 4%

GAS 14% COAL 70%

COAL 82%

COAL 80%
COAL GAS 24459 5435 COAL GAS HYDRO 40000 8000 2000

COAL GAS HYDRO

53000 10000 9000

NUCLEAR
RENEWABLE

2000
1000

INSTALLED CAPACITY CAGR FOR INDIA 8.5% INSTALLED CAPACITY CAGR FOR NTPC 10.4%
21

NTPC by 2017 - A SNAPSHOT

Present Power Generation
(Ownership- wise in MW)

2011-12

2016-17

Owned
Through JVs / Subsidiaries TOTAL Coal based

27,350
1,794 29,144 23,709 (84%) 4,695 (16%)

44,700
5,054 49,754 40,539 (81.5%) 7,295 (14.7%)

~ 69,500
~ 5500 ~ 75,000 ~ 54,000 (72.0%) ~9,000 (12.5%)

Power Generation
(Fuel-wise in MW)

Gas based

Hydro
Nuclear Renewables

-----

1,920 (3.8%)
--15 MTPA

~ 9,000 (12.2%)
~ 2,000 (2.5%) ~ 1,000 (0.8%) ~ 47 MTPA

Coal Mining (Production)

Trading (Units Traded)

Distribution (Capacity)

2.66 BU
(provisional 2006-07)

10 BU
1,000 MW

25 BU
2,000 MW
22

--

Snap Shot of Strategies

Maintain sector leadership position through rapid capacity expansion

Sustainable Development

Further enhance fuel security

Nurturing Human Resource

Prudent financial strategies

Technology initiatives

Exploit new business opportunities

23

NTPC-A Navratna Company surging ahead

INSTALLED CAPACITY
75000

MULTI-PRONGED GROWTH STRATEGY

MULTI PRONGED APPROACH TO CAPACITY ADDITION GREENFIELD PROJECTS BROWNFIELD EXPANSION JOINT VENTURES ACQUISITIONS DIVERSIFICATION IN RELATED BUSINESS AREAS HYDRO PROJECTS COAL MINING POWER TRADING OIL / GAS EXPLORATION LNG VALUE CHAIN RENEWABLE NUCLEAR
24

50000

29894

As on today
Projects under construction

2012

2017
16,180 MW

Plans to become an Integrated Power Major

Total Installed capacity envisaged
75000+

Growth Strategy
Multi pronged approach to capacity addition Greenfield projects Brownfield expansion Joint ventures Acquisitions Diversification in related business areas Hydro projects Nuclear projects Renewable Energy projects Coal Mining Power trading Gas / Oil exploration LNG value chain Consultancy services

50000

29144

TODAY

2012

2017

Projects under construction Projects under tendering / ordering

+12,000 MW +8,000 MW

NTPC outlay from FY07 to FY12 shall be of the order of Rs.1,60,000 crores
25

Enhancing Fuel security

Strategies for coal sourcing

Fuel tie up for required quantities with Coal PSUs more than 80% of NTPCs coal based capacity located at /near pit head. Import as and when required Develop coal mines 7 coal mines including 2 in JV Coal production to commence from 1st mine by 2007-08 Tie up with GAIL, PMT under Administered price mechanism Purchase for short term / from spot market Participate in gas value chain to secure long term supplies 1,920 MW - under implementation 5,000 MW - Agreement signed for implementation

Strategies for gas sourcing

Diversification into hydro

Exploring nuclear and renewable power options

Broad-basing the fuel mix

26

Presentation Outline.

Meaning and Framework for Corporate Plan

NTPCs Corp. Plan(s) Process and Structure
(Corporate Agenda, SWOT analysis, Business Portfolio, Functional strategies)

Key to success of Planning Process

27

Key to success of Planning Process

The success of the planning process hinges on:
Vision of the CEO in setting the right destination,
Involving right people having right skills in the planning process, Using right forecasting models/tools Integrating implementation mechanism with the planning process
(Providing warning signals at right time to facilitate timely corrections)

28

Thank you
29

PAN-INDIA PRESENCE

PARTICULARS NTPC OWNED - COAL

NO OF PLANTS

CAPACITY (MW)

15 7 22

22895 3,955 26850

KOLDAM (800 MW) DADRI (817 MW) FARIDABAD (430 MW) BTPS (705 MW)

LOHARINAG PALA (600 MW) RUPSIABAGAR KHASIABARA (260MW) LATA TAPOVAN (162 MW)

- GAS / LIQUID FUEL TOTAL OWNED BY JOINT VENTURES

RAMMAM III (90 MW)

ANTA (413 MW)

TAPOVAN VISHNUGAD NCTPP (840 MW) (520 MW) TANDA (440 MW) UNCHAHAR KAHALGAON (840 MW) AURAIYA (840 MW) (652 MW) SINGRAULI (2,000 MW) RIHAND (2,000 MW) BARH

- COAL & GAS GRAND TOTAL

4 26

1794 28644

GANDHAR (648 MW)

VINDHYACHAL (2,260 MW) KORBA (2,100 MW)

FARAKKA (1,600 MW)

TALCHER KANIHA (3,000 MW)

REGIONAL SPREAD OF GENERATING FACILITIES

REGION COAL GAS TOTAL

KAWAS (645 MW)

SIPAT TALCHER Thermal (460 MW)

RAMAGUNDAM (2,600 MW)

NORTHERN
SIMHADRI (1,000 MW) THERMAL POWER STATION HYDRO POWER PROJECTS GAS POWER STATIONS ONGOING PROJECTS

7035 5860 3600 6400

2312 1293 350 -

9347 7893 3950 6400

WESTERN SOUTHERN EASTERN

KAYAMKULAM (350 MW)

JVS
TOTAL CAPACITY AS ON 24-9-2007

314
23209

740
4695

1054
28644

DIVERSIFIED CUSTOMER BASE-SUPPLIER TO MAJOR STATES

30

Details of Commissioned Projects of NTPC

Region/Project/State Capacity (MW) Unit Primary Fuel NORTHERN REGION Singrauli (U.P.) 2000 (5x200+2x500) Coal Rihand (U.P.) 2000 (4x500) Coal Dadri (NCTPP) (U.P.) 840 (4x210) Coal Tanda (U.P) 440 (4x110) Coal Unchahar (U.P.) 1050 (2x210+ 2x210+1x210) Coal Badarpur (Delhi) 705 (2x210+3x95) Coal Dadri (U.P.) 817 (4x131+2x146.5) Gas Auraiya (U.P.) 652 (4x112+2x102) Gas Anta (Rajasthan) 413 (3x88+1x149) Gas Faridabad (Haryana) 430 (2x143+1x144) Gas SUBTOTAL 9347 WESTERN REGION Korba (Chhattisgarh) 2100 (3x200+3x500) Coal Vindhyachal (M.P.) 3260 (6x210+4x500) Coal Kawas (Gujarat) 645 (4x106+2x110.5) Gas Jhanor-Gandhar (Gujarat) 648 (3x131+1x255) Gas
Sipat (Chattisgarh) 500 (1x500)
Contd...
31

Coal

SUBTOTAL

7153

Details of Commissioned Projects of NTPC

Region/Project/State Capacity (MW) 2600 1000 350 3950 1600 3000 1340 460 6400 Unit (3x200+4x500) (2x500) (2x115+1x120) Primary Fuel Coal Coal Naphtha

SOUTHERN REGION
Ramagundam (A.P.) Simhadri (A.P.) Kayamkulam (Kerala) SUBTOTAL

EASTERN REGION
Farakka (W.B.) Talcher (Kaniha) (Orissa) Kahalgaon (Bihar) Talcher (Orissa) SUBTOTAL (3x200+2x500) (6x500) (1x500+4x210) (4x60+2x110) Coal Coal Coal Coal

JOINT VENTURES
Captive Power Plants (CPPs) under JVs with SAIL Durgapur (West Bengal) 120 Rourkela (Orissa) 120 Bhilai (Chhattisgarh) 74 Other Joint Venture Power Plants RGPPL (Maharashtra) 1480 SUBTOTAL 1794 (2x60) (2x60) (1x74) Coal Coal Coal Gas/ Naphtha

GRAND TOTAL

28,644 MW

32

NTPCs Corporate Plan (2002-2017) envisaged four key roles for NTPC over the next fifteen year period
Role 4 Role 3 Role 2 Sector Architect Role 1 Best in class Strong financials Setting benchmarks for project construction and operation Preferred supplier for customers Employer of choice Indias foremost integrated electric utility with businesses spanning value chain Continue to be 25%+ of Indian generation Assisting customers in speedy sector reforms Spearheading development and deployment of advanced technology in India Catalyst for Indias Growth Overseas Ambassador Putting the Indian power sector on the world-map Competitive player in global markets Business alliances with global players World class efficiencies

Driving development of state utilities Catalysing private investment in other industries Improving global competitiveness of energy intensive industries Adding to investor wealth Discharging social responsibilities

2002

2017

33

The Collaborative Approach to Planning

Key organisational issues Validation of findings

Top Management 125 sessions 12 plants Over 600 people met

30 sessions
Project-Team 900 meetings

Plants/regional offices 12 diff plants during various phases Presentation in NBC Presentations to NEFI

External stakeholders Customers Regulator Ministry of Power Planning Commission CEA Lending institutions Suppliers Industry Players

Corporate and ROs

Scope, EOC, R&D, PMI, WRO, NRO Information gathering, discussion on data analysis and findings

34

Integration of 15 year Long-term Corporate Plan with the annual budgets, internal MoU targets and KPAs through 5 yearly rolling Business Plan Time
0 Years 5 Years 10 Years 15 Years

Long term corporate plan

Strategic Link

5 year rolling business plan

Operational Link

MoU Targets Annual Budgets PMS

Business planning, MOU, Budgeting distinct processes with interlinkages

Internal MoUs targets and KPAs shall be derived from the first year targets of approved Business Plan.

35

The annual progress measurement would follow a four step approach

Annual Review BPC would review progress of BP targets and Internal MoU targets Status inputs to be provided by nodal points to Corporate Planning Status of progress would also be a factor in determining BP targets for the subsequent years Mid-year Review Mid-year review by Corporate planning Exception reporting in ECM/MCM Quarterly Review Review by nodal points ReEDs review L2 plans Status report on progress from nodal points to Corporate Planning
Monthly Meetings Self-review by the Stations and CC functions Minutes by Station to ReEDs Emphasis on root-cause analysis and early warnings Course Correction Focus Performance Evaluation Focus Annual Review Annual Review Identify issues that require attention

Mid-year Review
I II

Quarterly Review
I II III IV

Early Warning Focus

Monthly Review
Apr. May. Jun. Jul. Aug. Sep Oct Nov. Dec. Jan. Feb. Mar

40

NTPC Going Forward

Hydel Power ~9,000 MW by 2017 Nuclear Power 2000 MW by 2017 Non-conventional 1000 MW by 2017 Globalisation
Setting up of power plants abroad International Consultancy
LATERAL INTEGRATION FORWARD INTEGRATION

Power trading Power Distribution

RELATED DIVERSIFICATION

Seven coal mine blocks (~50 MTPA cap.) allocated One oil/gas block allocated. NTPC requirement for coal ~ 180 MTPA by 2012

Sectoral Support
PIE APDRP Rural Electrification Training under DRUM

R&M of power stations JV for Captive Power

42

NTPC ranks sixth among the top ten global thermal generators

TWH
600 500 400 300

501

175
200 100 0

152

146

141

133

128

126

102

94

TP C

EL (I TA )

Co (U S)

(S AF )

(J AP )

(U S)

(U S)

U S)

(R

AE P

CO

TV A

-U ES

ES KO

So ut he r

KE P

TE PC

EN

AO

W E

(G ER

(S KR

(AT Kearney Survey 2002)

43

NTPC Asias Second Largest Power Generator

ADBs Confidential Information Memorandum, shows that: NTPC is Asias second largest power generator, with high market

capitalization and strong balance sheet.

USD MM Korea Electric Power NTPC Limited Huaneng Power Intl Datang Intl Power Senoko Power Huadian Power Intl Ratchburi Elec Tata Power YTL Power China Resources Power Malakoff Country Korea India China China Singapore China Thailand India Malaysia Hong Kong Malaysia Market Cap 26,940 20,436* 8,225 3,225 NA 1,608 1,482 2,572 2,896 2,774 2,224 Capacity (MW) 56,000 24,249 15,166 2,400 1,930 6,388 3,654 2,340 1,212 1,545 4,743 Sales 24,654 6,396 4,999 2,244 1,778 1,658 1,132 1,078 997 764 576 EBITDA Margin 40% 34% 33% 40% 12% 28% 21% 24% 57% 31% 58% Debt/ EBITDA 2.1 2.1 3.3 5.3 0.9 4.9 3.5 3.3 6.2 6 7.9 TL/TNW 0.79 0.6 1.33 2.52 0.63 1.75 1.22 1.28 3.22 1.17 4.2

Source : Moody KMW Credit Monitor. Company Data. Data for other companies is latest available financial year end.

*As on Aug. 1, 2006.

44

NTPC IN FORBES GLOBAL 2000 - A COMPARISION OF TOP INDIAN COMPANIES FOR 2005

Company Rank in Forbes India 2000 Rank 1 256 2 298 3 310 4 311 5 463 6 656 7 764 8 1087 9 1142 10 1163

Company Ranking in India Sales ($bil) 13.27 15.08 12.47 30.13 5.38 3.9 6.83 14.75 3.66 2.23 Profits ($bil) 3.28 1.75 1.25 1.25 1.33 0.42 1.58 0.35 0.82 0.45 Assets ($bil) 18.56 18.61 143.69 19.34 15.45 40.81 6.61 6.06 4.05 1.21 Market Value ($bil) 36.52 22.26 10.4 14.62 24.36 12.33 5.93 2.94 5.37 18.34

Name ONGC RIL SBI IOC NTPC ICICI Bank SAIL BPCL TISCO TCS

Industry Oil & Gas Oil & Gas Banking Oil & Gas Utility Banking Materials Oil & Gas Materials Software

45

SWOT ANALYSIS-Business Environment Appraisal

Power sector in India

46

Economic Scenario

GDP Growth
10.0% 9.0% 8.5% 8.0% 5.8% 4.4% 4.0% 3.8% 7.5% 9.6%

Forex Reserves Over $290 Bn

(as on 31.03.2008)

250 200 150

113 142 152 199

6.0%

100 50 0
42 54

75

2.0%

0.0% FY01 FY02 FY03 FY04 FY05 FY06 FY07

FY01 FY02 FY03 FY04 FY05 FY06 FY07

Source: Economic Survey and RBI

Indian Economy on a growth path , broad consensus exists on economic reforms

47

Per capita Consumption remains low

665 618 1,684 2,340 6,425 6756 7,442 8,459 14,240 2,701
In 2006

India China Brazil Russia UK Germany Japan USA World Average

Figures in kwh

Source: UNDP Human Development Report 2007-08 Data for 2004

National Electricity Policy aims at per capita availability of 1000 kwh by 2012

48

A deficit scenario persists

(in Bus)
750 700 650 600 550 507 500 450 546 523 559 591 REQUIREMENT AVAILABILITY 691 737

9.8%

631

9.6%
665 624

8.3%
579

7.3%
548

7.1% 8.8%
519 498 2003 2004 2005

7.5% 7.8%
483 467 2001 2002

2006

2007

2008

DURING 2007-08, PEAKING SHORTAGES WERE 16.6%

49

Power Infrastructure in India

Fuel wise break-up (MW)
Thermal Hydro Nuclear Renewable 91,907 35,909 4,120 11,125 64.2% 25.1% 2.8% 7.9%

Sector wise break-up (MW)

Private Sector 14% State Sector 52%

TOTAL

143,061

100.0%

Central Sector 34%

(Excluding captive capacity of 14636 MW connected to grid)

Total generation in 2007-08 704.45 BU

50

Large Capacity addition is required to meet the demand

National Electricity Policy

By 2012 Per capita consumption 1,000 units Installed capacity over 200 GW Spinning reserves 5% Inter-regional transmission capacity 30 GW with National Grid in place (currently 9.5 GW) Energy efficiency/ conservation savings about 15% Total rural household electrification by 2009 (currently only 44%) Quality and reliable power supply
Source: Ministry of Power, Integrated Energy Policy GOI

778 GW 425 GW 132 GW 220 GW

Mar'07

2012

2022

2032

Generating Capacity needs to grow rapidly with the current rate of growth of economy

51

Energy Resources of India Fossil Fuels

Reserves
Coal (proved) MT Crude oil (MT) Natural Gas (BCM) 92,445 786 1101 @

Production
382 33 33

242

R/P ratio

Years

24 Coal
Source: *CIL, IEP **Central Electricity Authority @ IEP

33

Crude Oil

Natural Gas
52

Energy Resources of India Hydro

Hydro
(As Assessed by CEA): Potential Present Installed Capacity Balance (Recoverable) 150,000 MW 34,654 MW 115,346 MW
Does not include pump storage potential

Source: IEP

53

Generation Options going forward

Issues / fuel

Availability / potential

Capital costs

Fuel costs

Gestation period

Technology maturity

Environmenta l issues

R&R issues

Coal

High can meet demand

Medium

Low -Medium

Medium

Good

Yes

Low

Hydro

Good can be substantial

High

Very low

High

Good

No

Very high

Nuclear

High for Thorium, limited for uranium Low

High

Low

High

Low for thorium

No

Low

Gas / LNG

Low

Very high

Low

Good

No

Low

The dependence on coal for generation of power, is quite high in India The predominant position of coal is expected to continue going forward
54

NTPC in the Power Market

55

NTPC - Today

Current Business

THE LARGEST POWER GENERATION COMPANY IN INDIA, WITH COMPREHENSIVE IN-HOUSE CAPABILITIES IN BUILDING AND OPERATING POWER PROJECTS CURRENT OPERATING CAPACITY 29894 MW (INCLUDING JV) 18 COAL BASED AND 8 GAS BASED POWER PLANTS

New Business Areas

SETTING UP HYDRO BASED POWER PLANTS DEVELOPING COAL MINES FOR CAPTIVE USE

EXPLORING OIL / GAS BLOCKS IN CONSORTIUM WITH PARTNERS ONE PETROLEUM BLOCK ALLOCATED IN ASSAM.
SUBSIDIARY & JV COMPANIES FOR TAKING UP GENERATION, POWER TRADING, HARNESING RENEWABLE RESOURCES,DISTRIBUTION BUSINESS AND FOR SETTING UP OF SMALL HYDRO PLANTS (<250 MW)
56

Indias Premier power utility Contributes more than one-fourth of Indias total power generation with less than one-fifth capacity. TOTAL CAPACITY AS ON 31.03.2008
NTPC 27,350* MW 19.1 % of All India 143,061 MW

GENERATION 2007-08
NTPC 200.864* BUs 28.5% of All India 704.451 BUs

19.1%
NTPC

28.5%
NTPC

ALL INDIA

ALL INDIA

* excluding joint ventures.

57

Spread across all major States

No of plants
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)

ANTA (413 MW)

TAPOVAN VISHNUGAD NCTPP (840 MW) (520 MW) TANDA (440 MW) UNCHAHAR KAHALGAON AURAIYA (840 MW) (840 MW) (652 MW) SINGRAULI (2,000 MW) RIHAND (2,000 MW)

RAMMAM III BONGAIGAON (90 MW) (750 MW)

BARH

GANDHAR (648 MW) KAWAS (645 MW)

VINDHYACHAL (2,260 MW) KORBA (2,100 MW)

FARAKKA (1,600 MW)

NTPC Owned Coal Gas/Liquid fuel Total Owned by JVs Coal & Gas Total

15 7 22
4 26

23895 3955 27850

2044 29894

TALCHER KANIHA (3,000 MW)

SIPAT MAUDA ((1000 MW) RGPPL (1480 MW) RAMAGUNDAM (2,600 MW) SIMHADRI (1,000 MW) TALCHER Thermal (460 MW)

Regional Spread of Generating Facilities

Region Coal 7035 6360 3600 6900 564 24459 Gas 2312 1293 350 1480 5435 Total 9347 7653 3950 6900 2044 29894

THERMAL POWER STATION

HYDRO POWER PROJECTS GAS POWER STATIONS ONGOING PROJECTS

VALLUR ((1000 MW) KAYAMKULAM (350 MW)

Northern Western Southern Eastern JVs Total

58

BUSINESS STRENGTH PROJECT IMPLEMENTATION SKILLS

NTPC PROJECT ENGG. SYSTEMS - 360 DEG APPROACH
O&M FEED BACK STATION R&M SITE SUPPORT DURING O&M STAGE PREPARATION & FINALISATION OF FR PREPARATION & FINALIZATION OF PDM

NTPC PROJECT ENGINEERING COMPONENTS

PACKAGING & PREAWARD ACTIVITIES TECHNICAL EVALUATION & FINALIZATION OF TENDERS DETAILED PROJECT ENGINEERING

ASSISTANCE DURING PLANT COMMISSIONING SUPPORT TO SITE DURING PROJECT EXECUTION

ENGG TIME & COST CONTROL

BAGGING OF IPMA INTERNATIONAL PROJECT MANAGEMENT AWARD 2005 FOR SIMHADRI PROJECT A TESTIMONY OF PROJECT MANAGEMENT

ABILITIES OF THE COMPANY

59

Sustaining Cost leadership

NTPC supplies power at the lowest costs

All figures in Rs/ KwH
1.8 1.7 1.6 1.5 1.4 1.3 1.2 1.1 1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 19992000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

1.75 1.43 1.47 1.47 1.52 1.64

1.84

1.45

1.57

1.14 0.89 0.96

1.23

1.28

0.73 0.72

0.82 0.75

0.84

0.85 0.62

0.59

0.58

0.56

0.5

0.52

0.56

Avg. Tariff

Fuel Cost

Fixed Cost

60

NTPC ranks sixth among the top ten global thermal generators
TWH
600 500 400 300

501

175
200 100 0

152

146

141

133

128

126

102

94

TP C

EL (I TA )

Co (U S)

(S AF )

(J AP )

(U S)

(U S)

U S)

(R

AE P

CO

TV A

-U ES

ES KO

So ut he r

KE P

TE PC

EN

AO

W E

(G ER

(S KR

(AT Kearney Survey 2002)

61

Business strength - Consistent Growth

Capacity (MW)
27350 26350

Generation (Billion Units)

201
23435 23935

189 171

20935

21435

159 141 149

2003 2004 2005 2006 2007 2008

2003 2004 2005 2006 2007 2008

Excluding JV projects
NTPC HAS CONTRIBUTED TO OVER 28% OF GENERATING CAPACITY ADDITION IN THE COUNTRY DURING LAST 25 YEARS
62

Business strength - Operational efficiency

Continuous Improvement of Capacity Utilization
93 90 87 84 81 78 75 72 69 66 63 60
2003-2004 2004-2005

88.79 84.41

91.2 89.91 90.09 Unchahar Plant PLF 89.43 87.54 87.51

92.24

92.12

150 100 50 0
73.6

18.0
76.8

95.7
78.6

72.7

74.3

Taken 2006 over in

2006-07 2007-08

During the year 2007-08, NTPCs coal based stations achieved a PLF of more than 92%. Dadri (Coal) recorded highest ever PLF of 98.02%.

2005-2006

All India PLF

NTPC PLF

NTPC AvF

Turn Around Ability

Unchahar Plant PLF 97.7

120 100 80 60 40 20 0

100 80 60 40 20 0

Tanda Plant PLF

91.66

100 80 60 40

Talcher Plant PLF

86.35

18.0

14.9

18.7

20 0

Taken over in 1992

2008

Taken over in 2000

2008

Taken over in 1995

2008

Achieved turn-around in performance of stations taken over from State Electricity Boards through application of and strict adherence to well laid down Management and Operation and Maintenance principles.
63

Business strength - Human Resources

9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0

MU

Generation per Employee

8.48

0.95

GREAT

PACE TO WORK 2008-NTPC has been ranked number one in the special category the Best Workplace for Large Organisations and number eight(8) overall for the year 2008.
64

NTPC Shares

65

Consolidated Shareholding Pattern

Authorised Capital : Rs.10,000 crores Issued, Subscribed & Paid-up : Rs.8,245 crores
S.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Category Government of India Foreign Institutional Investors Resident individuals Indian Financial Institutions Mutual Funds Bodies Corporates Banks HUF Non-Resident Indians Trusts Clearing Members Directors and Relatives Transit

No. of cases
1 164 556425 14 72 3188 33 9370 4064 68 369 13 1

Total Shares
7379634400 569914122 140312270 63868537 49360656 29686098 5571292 3557715 2647466 479083 387287 44946 314

% to equity
89.499318 6.911850 1.701690 0.774590 0.598640 0.360029 0.067568 0.043148 0.032108 0.005810 0.004697 0.000545 0.000003

14.

Foreign Nationals
Total

1
573783

214
8245464400

0.000003
100%

67

NTPC RANKED #1 INDEPENDENT POWER PRODUCER IN ASIA

TOP INDEPENDENT POWER PRODUCER COMPANIES 2007

RANK 1 2 3 4 5 6 TXU CONSTELLATION ENERGY MIRANT ATEL NTPC EDISON SPA COMPANY USA USA USA SWITZERLAND COUNTRY

FIRST IN ASIA

INDIA ITALY

7
8 9 10

HUANENG POWER
INTERNATIONAL POWER CALPINE CORP DRAX

CHINA
UK USA UK

Source: PLATTS GLOBAL ENERGY COMPANY RANKINGS

68

LARGEST POWER UTILITIES IN ASIA-DATAMONITOR 2006

RANKING BY COMPANY CAPACITY

2 1 4 7 KEPCO TEPCO

COUNTRY

CAPACITY (MW)
56053 61387 36122 26194

SALES (TWh)
322 289 175 171

RANKING BY SALES
1 2 3 4

KOREA JAPAN

TAIWAN POWER TAIWAN NTPC INDIA

6
3 5

HUANENG POWER
KANSAI ELECTRIC CHUBU

CHINA
JAPAN JAPAN

28187
41750 32586

160
147 131

5
6 7
69

Forbes Global 2000 list for 2007Asia Utility Rankings

Released on April 2nd 2008

Global Rank 143 1 203 2 273 3 4 5 6 7 8 9 10 353 411 564 574 583 624 625 Company Tokyo Electric Power Korea Electric Power Kansai Electric Power Chubu Electric Power NTPC Kyushu Electric Power CLP Holdings Tohoku Electric Power Tokyo Gas Tenaga Nacional Sales ($ Bil) Profits ($Bil) Assets ($Bil) 44.96 2.54 112.46 29.6 22.1 18.84 7.84 11.98 6.51 14.71 11.72 6.66 2.4 1.26 0.77 1.6 0.56 1.36 0.45 0.86 1.16 83.63 55.75 47.47 20.34 33.48 16.97 33.31 14.17 19.34 Market Value ($Bil) 34.93 22.72 22.59 19.74 41.57 11.98 19.04 11.47 12.04 12.27

UP FROM 494TH RANK LAST YEAR

6TH LARGEST COMPANY IN INDIA

70

NTPC Ltd. - An Employer of Choice

Great Places to Work Institute, India Economic Times Survey

Great Places to Work for-2008

Sl.No. Name of Company Industry Ownership

1.
2. 3. 4. 5. 6. 7. 8. 9. 10.

RMSI Private Limited

Marriott Hotel, India Google India Pvt. Ltd. Agilent Technologies Classic Stripes Pvt. Ltd. American Express, India Cadbury India Ltd. NTPC Ltd. Godrej Cons. Products Ltd. Hilti India Private Ltd.

IT (Consulting & Software)

Hospitality IT (Software) IT (R&D) Mfg. Rubber & Plastic Products Financing Services & Insurance FMCG Power FMCG Construction & Real Estate

Foreign
Foreign Foreign Indian Indian Foreign Foreign Indian Indian Foreign

NTPC was ranked Number-1 in the special category Best Work Places for Large Organisations and NTPC is the only Public Sector Company among the top 25 Companies.
71

DIVIDEND PERFORMANCE
Rs./ Cr.

2004-05
Share Capital Dividend Rs Cr Net Profit 8245 1978.92 24% 5807.01

2005-06
8245 2308.73 28% 5820.20

2006-07
8245 2638.56 32% 6864.70

72

Human Resources The Performer

24,000 HIGHLY TRAINED EMPLOYEES SENIOR EXECUTIVES POSSESS EXTENSIVE EXPERIENCE OF THE INDUSTRY SYSTEMATIC TRAINING ENSURES 7 MAN DAYS TRAINING PER EMPLOYEE PER YEAR TIE-UPS WITH LEADING INSTITUTIONS LIKE IIT DELHI, BITS PILANI, MDI GURGAON
MU 9.0 8.0 7.0 6.0 5.0 4.1 4.0 3.0 2.0 1.0 0.0
94-95 95-96

Improving Productivity

Generation per Employee

7.81

96-97

97-98

98-99

99-00

00-01

TRAINING SIMULATORS FOR 200 MW / 500 MW UNITS HELPS EMPLOYEES SHARPEN THEIR SKILLS

SEVENTH GREAT PLACE TO WORK FOR IN INDIA FOR THE YEAR 2006 IN A SURVEY CONDUCTED BY GROW TALENT AND BUSINESS WORLD
73

'05-06

01-02

02-03

03-04

04-05

Robust Financial Performance

RS CRORE FISCAL 2008 FISCAL 2007 % CHANGE

TOTAL INCOME

40011
36946 3065 29481 22020 2139 1798 10530

35377
32535 2842 26473 19818 2075 1859 8907

13.1%
13.5% 7.8% 11.4% 11.1% 3.1% (3.2%) 18.2%

SALE OF ENERGY OTHER INCOME

TOTAL EXPENDITURE FUEL DEPRECIATION INTEREST & FINANCE CHARGES PBT

TAX
PAT

2840
7415

2042
6865

39.1%
8.0%
74

Strong Financial Performance

(Rs. / Crs.)

Sl No
1. 2. 3. 4. 5. 6. 7.

Description
Total Income Profit after Tax Net Worth Capital Employed Dividend (%) Return on net worth (%) Debt to Equity

FY 2007
35,381 6,864 48,597 56,433 * 32 14.13 0.50

FY 2006
29,339 5,820 44,959 52,357 28 12.95 0.45

FY 2005
26,281 5,807 41,776 50,053 24 13.90 0.41

* includes final dividend of 8% to be approved by the Shareholders

75

Bouquet of Services - Tailor-made for Power Sector

Training

Project Formulation

O&M Services

Engineering Services

Contracts & Procurement Construction Management Quality Assurance Inspection

Project Management

76

NTPC Fleet microcosm of worldwide design practice

NTPC owns equipment from practically all major power plant suppliers
GTs for CCPPs
ABB 13 D2
13 E2 PG 9151 V 94.2 701D 94.2A

Anta
Gandhar Kawas Dadri Auraiya Faridabad KWU/BHEL GEC ABB
RUSSIAN/BHEL

Coal fired Steam Generators

CE/BHEL ANSALDO STEIN ICL 500 MW 500 MW 500 MW 500 MW 13 Units 2 Units 2 Units 2 Units

ABB GE Siemens MHI BHEL Siemens)

Steam Turbines
500 MW 500 MW
15 Units 2 Units 2 Units 17 Units 3 Units 14 Units 4 Units 6 Units

500 MW
200 MW 200 MW 200 MW
<200 MW <200 MW

BHEL (GE)

9E

Kayamkulam

CE/BHEL
ANSALDO RUSSIAN B&W

200 MW
200 MW 200 MW <200MW

21 Units
3 Units 10 Units 8 Units

ANSALDO KWU/BHEL GE SKODA

Exposure to comprehensive fleet provides our staff the cutting edge in Engineering and O&M systems
77

Capacity Addition during XI Plan - Ongoing Projects

(Figures in MW)

Project (Fuel) / State Kahalgaon-II, Phase-I (Coal) / Bihar Kahalgaon-II, Phase-II (Coal) / Bihar Sipat-II (Coal) / Chhattisgarh Sipat-I (Coal) / Chhattisgarh Barh(Coal) / Bihar Bhilai (Coal) / Chhattisgarh JV with SAIL NCTPP-II, Dadri (Coal) / U.P (Unit-5) Korba-III (Coal) / Chhattisgarh Farakka-III (Coal) / West Bengal Simhadri-II (Coal)/ Andhra Pradesh Aravali Power Project Jhajjar (Coal), Haryana** Koldam (Hydro) / Himachal Pradesh Loharinag Pala (Hydro) / Uttaranchal Tapovan-Vishnugad (Hydro)/Uttranchal
Ennore (Coal), Tamil Nadu* *

Total Capacity 1000* 500 1000 1980 1980 500 980 500 500 1000 1500 800 600 520
1000

Capacity During XI Plan 500 500 1000 1980 1980 500 980 500 500 1000 1500 800 600 520
1000

Sub Total (I)

*One Unit Commissioned during X Plan **Under Joint Venture

14360

13860

78

Capacity Addition during XI Plan - Projects for which Main Plant Bids have been received/ invited and FR is under preparation
Project (Fuel) / State Bongaigaon (Coal), Assam Mauda (Coal), Maharashtra Barh-II (Coal), Bihar Nabinagar (Coal), Bihar* North Karanpura (Coal), Jharkhand Kawas-II (Gas), Gujarat** Jhanor Gandhar-II (Gas), Gujarat** Total Capacity 750 1000 1320 1000 1980 1300 1300 Capacity during XI Plan 750 1000 1320 1000 1320 1300 1300

(Figures in MW)

Sub Total (II)

Rihand-III (Coal), U.P.

8650
1000

7990
500

Sub Total (III)

1000

500

* Under Joint Ventures ** Subject to signing of GSPA. Matter sub-judice.

NTPC overseas foray

500 MW COAL BASED POWER PLANT IN SRI LANKA

MOA SIGNED WITH GOVT OF SRI LANKA AND CEYLON ELECTRICITY BOARD IN DECEMBER 2006 FOR SETTING UP A 500 MW COAL BASED POWER PLANT SITE UNDER IDENTIFICATION MOU UNDER DISCUSSION WITH GOVT OF NIGERIA FOR SETTING UP

POWER PLANTS IN NIGERIA

A GAS BASED POWER PLANT A COAL BASED POWER PLANT

GOVT OF NIGERIA TO ALLOCATE LNG /OIL FOR EXPORT TO INDIA

80

Strong Government Support

NAVRATNA STATUS:
TO THE COMPANY IN MAKING INVESTMENT DECISIONS, FORMATION OF JVS / SUBSIDIARIES, ETC

TRIPARTITE AGREEMENTS:
FOR ONE TIME SETTLEMENT OF OUTSTANDING DUES AND FUTURE PAYMENT SECURITY

COAL MINES ALLOCATION:

TO NTPC TO IMPROVE FUEL SECURITY AND ECONOMICS OF POWER COSTS

NODAL AGENCY FOR SECTORAL IMPROVEMENT

PARTNERSHIP IN EXCELLENCE, APDRP, TRAINING OF UTILITY PERSONNEL, RURAL ELECTRIFICATION, ETC

81

NTPC Asias Second Largest Power Generator

USD MM Country Market Cap Capacity (MW) Sales EBITDA Margin Debt/ EBITDA

Korea Electric Power

Korea

26,940

56,000

24,654

40%

2.1

NTPC Limited

India

20,436*

24,249

6,396

34%

2.1

Huaneng Power Intl Datang Intl Power Senoko Power Huadian Power Intl Ratchburi Elec Tata Power YTL Power China Resources Power

China China Singapore China Thailand India Malaysia Hong Kong

8,225 3,225 NA 1,608 1,482 2,572 2,896 2,774

15,166 2,400 1,930 6,388 3,654 2,340 1,212 1,545

4,999 2,244 1,778 1,658 1,132 1,078 997 764

33% 40% 12% 28% 21% 24% 57% 31%

3.3 5.3 0.9 4.9 3.5 3.3 6.2 6

Malakoff

Malaysia

2,224

4,743

576

58%

7.9

83

NTPC IN FORBES GLOBAL 2000 - A COMPARISION OF TOP ASIAN ELECTRIC UTILITIES FOR 2006

Utility Rank in Forbes Asia 2000 Rank 1 2 3 4 5 6 98 151 251 253 380 494

Utility Ranking in Asia Sales ($bil) 47.09 23.14 19.9 24.38 13.14 5.38 Profits ($bil) 2.11 2.78 0.85 0.65 0.83 1.33 Assets ($bil) 124.98 69.89 51.69 61.05 36.71 15.45

Name Tokyo Electric Power Korea Electric Power Chubu Electric Power Kansai Electric Power Kyushu Electric Power NTPC Ltd.

Country Japan South Korea Japan Japan Japan India

84

NTPC IN FORBES GLOBAL 2000 - A COMPARISION OF TOP INDIAN COMPANIES FOR 2005
Company Rank in Forbes India 2000 Rank 1 256 2 298 3 310 4 311 5 463 6 656 7 764 8 1087 9 1142 10 1163 Company Ranking in India Sales ($bil) 13.27 15.08 12.47 30.13 5.38 3.9 6.83 14.75 3.66 2.23 Profits ($bil) 3.28 1.75 1.25 1.25 1.33 0.42 1.58 0.35 0.82 0.45 Assets ($bil) 18.56 18.61 143.69 19.34 15.45 40.81 6.61 6.06 4.05 1.21 Market Value ($bil) 36.52 22.26 10.4 14.62 24.36 12.33 5.93 2.94 5.37 18.34

Name ONGC RIL SBI IOC NTPC ICICI Bank SAIL BPCL TISCO TCS

Industry Oil & Gas Oil & Gas Banking Oil & Gas Utility Banking Materials Oil & Gas Materials Software

85

NTPC ranks sixth among the top ten global thermal generators
TWH
600 500 400 300

501

175
200 100 0

152

146

141

133

128

126

102

94

TP C

EL (I TA )

Co (U S)

(S AF )

(J AP )

(U S)

(U S)

U S)

(R

AE P

CO

TV A

-U ES

ES KO

So ut he r

KE P

TE PC

EN

AO

W E

(G ER

(S KR

(AT Kearney Survey 2002)

86

As envisaged in Corporate Plan NTPC has diversified into various related areas and is launching new initiatives for ensuring growth

LATERAL INTEGRATION (Hydro Projects, Small Hydel)

FORWARD INTEGRATION (Distribution Business, Power Trading)

BACKWARD INTEGRATION (Captive Mining of Coal, Coal Washery, Sourcing of LNG)

DIVERSIFICATION (JVs & Strategic Alliances)

87

CAPITAL COST (excluding IDC & Taxes) NTPC V/s IPPs / INTERNATIONAL
Capital Cost (excl. IDC & Taxes) for the ongoing/new projects being set up by NTPC is in the range of US$ 500/KW to US$ 750/KW. Present day average international cost of power projects is in the range of US$ 700/KW to US$ 1100/KW
Capital Cost in US$/KW excluding IDC and Taxes & Duties NTPC Ongoing/X Plan Projects Europe* USA* China* Malaysia* IPPs 514 761 473 1605 722 1314 683 928 805 771 936

*As per AT Kearney report on International capital cost for plants > 400 MW

88

LEVELISED COST OF GENERATION

Country
USA W. Europe

Cents/kWh
4.45 4.25

China Japan

3.63 4.72
Source: Deutsche Bank Report August 2001

NTPC

3.07*

*AVERAGE OF LEVELISED COST OF GENERATION OF X PLAN / ONGOING NTPC PROJECTS RANGING FROM 2.47 to 4.58 Cents/kwh

89

Enhanced Delegations of Powers to Navratnas

Navratna PSEs incl. NTPC have been delegated powers as under :

Incur capital expenditure on purchase of new items or for replacement without any monetary ceiling.

Establish Financial JVs and wholly owned subsidiary in India or abroad with the stipulation that equity investment of the PSE should be limited to Rs.200 Crs. in any one project, 5% of the net worth of the PSE in any one project and 15% of the net worth of the PSE in all JVs
Enter into technology JVs or strategic alliances Obtain by purchase or other arrangements technology and know-how Establish org. restructuring, opening up of offices abroad, creating new activity/ profit centers Creation and winding up of all posts including and upto those of non-board level directors (Functional Directors)
90

Enhanced Delegations of Powers to Navratnas Enhanced Delegations of Powers to Navratnas

(From July, 1997)
(CONTD/...)

INVESTMENT APPROVAL

Structure and implement schemes relating to personnel & HRM, training, voluntary or compulsory retirement etc.
Raise debt from the domestic capital markets Borrow from International market subject to approval of RBI/Deptt. of Economic Affairs through Adm. Ministry

91

CONDITIONS APPLICABLE FOR NAVRATNA POWERS

Proposals must be with an analysis of relevant factors and quantification of the anticipated results and benefits. Risk factors if any must be clearly brought out.
Government Directors, Finance Director and the concerned Functional Director (s) must be present when major decisions are taken, especially when they pertain to investments, expenditure or organisational/ capital restructuring. Decisions on such proposals should preferably be unanimous. Otherwise a majority decision may be taken but at least two-thirds of the Directors should be present, including those mentioned above, when such a decision is taken.

92

CONDITIONS APPLICABLE FOR NAVRATNA POWERS CONTD.

No financial support or contingent liability (incl. GOI Guarantee) on the part of the Government should be involved.
Establish transparent and effective systems of internal monitoring, including the establishment of Audit Committee of the Board with membership of nonofficial Directors
Proposals with substantial financial / managerial commit-ments or having a long term impact on the structure and functioning, should be prepared by or with the assistance of professionals and experts and should be appraised, in suitable cases, by financial organisations with expertise in the areas. The appraisal should also preferably be by institutions funding through loans or equity participation.

93

CONDITIONS APPLICABLE FOR NAVRATNA POWERS CONTD.

Exercise of authority to enter into technology joint ventures and strategic alliances to be in accordance with the Government guidelines as may be

issued from time to time.

Board of the PSE to be restructured by inducting non official Directors as the first step before the exercise of the enhanced delegation of authority PSE not to depend upon budgetary support or Government guarantees.

Resources for implementing the programmes should come from internal resources or through other sources, including the capital markets. DPE vide letter dt. 11.2.03 clarified that delegated powers would not include

the power to decide about merger and acquisition

94

NTPC Asias Second Largest Power Generator

ADBs Confidential Information Memorandum, shows that: NTPC is Asias second largest power generator, with high market

capitalization and strong balance sheet.

USD MM Korea Electric Power NTPC Limited Huaneng Power Intl Datang Intl Power Senoko Power Huadian Power Intl Ratchburi Elec Tata Power YTL Power China Resources Power Malakoff Country Korea India China China Singapore China Thailand India Malaysia Hong Kong Malaysia Market Cap 26,940 20,436* 8,225 3,225 NA 1,608 1,482 2,572 2,896 2,774 2,224 Capacity (MW) 56,000 24,249 15,166 2,400 1,930 6,388 3,654 2,340 1,212 1,545 4,743 Sales 24,654 6,396 4,999 2,244 1,778 1,658 1,132 1,078 997 764 576 EBITDA Margin 40% 34% 33% 40% 12% 28% 21% 24% 57% 31% 58% Debt/ EBITDA 2.1 2.1 3.3 5.3 0.9 4.9 3.5 3.3 6.2 6 7.9 TL/TNW 0.79 0.6 1.33 2.52 0.63 1.75 1.22 1.28 3.22 1.17 4.2

Source : Moody KMW Credit Monitor. Company Data. Data for other companies is latest available financial year end.

*As on Aug. 1, 2006.

95

NTPC IN FORBES GLOBAL 2000 - A COMPARISION OF TOP INDIAN COMPANIES FOR 2005

Company Rank in Forbes India 2000 Rank 1 256 2 298 3 310 4 311 5 463 6 656 7 764 8 1087 9 1142 10 1163

Company Ranking in India Sales ($bil) 13.27 15.08 12.47 30.13 5.38 3.9 6.83 14.75 3.66 2.23 Profits ($bil) 3.28 1.75 1.25 1.25 1.33 0.42 1.58 0.35 0.82 0.45 Assets ($bil) 18.56 18.61 143.69 19.34 15.45 40.81 6.61 6.06 4.05 1.21 Market Value ($bil) 36.52 22.26 10.4 14.62 24.36 12.33 5.93 2.94 5.37 18.34

Name ONGC RIL SBI IOC NTPC ICICI Bank SAIL BPCL TISCO TCS

Industry Oil & Gas Oil & Gas Banking Oil & Gas Utility Banking Materials Oil & Gas Materials Software

96

NTPC Ltd. - An Employer of Choice

Business World Grow Talent Survey Great Places to Work for-2006
Sl.No.
1. 2. 3.

Name of Company
RMSI Classic Stripes Google India

Industry
IT (Consulting & Software) Auto Ancilliaries IT (Software)

Ownership
Foreign Indian Foreign

4.
5. 6. 7. 8. 9. 10.

Federal Express
Marriott International MindTree Consulting NTPC SAP India Labs American Express India Freescale Semiconductors India

Logistics
Hospitality IT (Consulting) Power IT (Software) IT (Services) Manufacturing (Electronics)

Foreign
Foreign Indian Indian Foreign Foreign Foreign

NTPC is the only Public Sector Company among the 25 Companies for which Rankings were published. 97

Partnership in Excellence Programme - Excellent Post-PIE Improvements Improvement in PLF Before PIE (Apr.-Aug.05) and After PIE (Apr.-Jun.07)
Station Capacity (MW) 420 630 160 170 340 135 390 220 210 220 350 Pre-PIE (Apr-Aug. 05) PLF(%) 33.80 45.21 26.79 24.76 29.45 46.02 61.58 59.38 52.66 44.39 62.31 Post-PIE (Apr.-Jun.07) PLF(%) 66.12 75.42 51.68 47.73 51.55 65.49 73.64 65.73 58.90 44.88 61.61 Improvement (%) 32.32 30.21 24.89 22.97 22.1 19.47 12.06 6.35 6.24 0.49 ---

Tenughat Bokaro B Harduaganj Patratu Ennore Rajghat Power House Chandrapura Durgapur DPL Panki Paricha Durgapur DVC

98

NTPC Indias Largest Power Generator

As per Dun & Bradstreet India 2006 publication Indias Top 500 Companies
NTPC is ranked 1st in the Power Generation, Transmission, Distribution. NTPC is ranked 3rd as per Net Worth, 4th as per Net Profit & 10th as per total income among Indias top 500 companies.

Rank

Company Name

Sector

NetWorth (Rs. Crs.)

Total Income (Rs.Crs.) 36090 46633

Net Profit (Rs.Crs.) 2147 12983

1 2

Bharat Sanchar Nigam Ltd. Oil and Natural Gas Corporation Ltd.

Telecom Services Oil and Gas Exploration

72757 46182

3
4 5 6 7 8 9

NTPC Ltd.
Reliance Industries Ltd. Indian Oil Corporation Ltd. State Bank of India National Bank for Agriculture and Rural Development Nuclear Power Corporation of India Ltd. ICICI Bank Ltd.

Power Generation, Transmission, Distribution

Oil Refining and Marketing Oil Refining and Marketing Banks FIs / NBFCs / Financial Services Power Generation, Transmission, Distribution Banks

42108
36657 25874 24072 23806 19112 12773

25521
67046 140805 39548 3939 3967 12826

5807
7572 4891 4305 1033 1705 2005

10
11 12 13 14 15

Mahanagar Telephone Nigam Ltd.

Coal India Ltd. Steel Authority of India Ltd. Power Grid Corporation of India Ltd. GAIL (India) Ltd. Hindustan Petroleum Corporation Ltd.

Telecom Services
Mining Iron and Steel Power Generation, Transmission, Distribution Gas Processing, Transmission and Marketing Oil Refining and Marketing

10944
10878 10010 8905 8584 8424

6084
1837 29482 2831 12761 60123

939
1325 6817 786 1954 1277

99

NTPC IN FORBES GLOBAL 2000 - A COMPARISION OF TOP ASIAN ELECTRIC UTILITIES FOR 2005
Utility Rank in Forbes Asia 2000 Rank 1 2 3 4 5 6 7 8 9 10 98 151 251 253 380 402 463 535 602 690 Utility Ranking in Asia Sales ($bil) 47.09 23.14 19.9 24.38 13.14 15.03 5.38 4.72 9.44 3.96 Profits ($bil) 2.11 2.78 0.85 0.65 0.83 0.53 1.33 0.38 0.44 1.11 Assets ($bil) 124.98 69.89 51.69 61.05 36.71 36.88 15.45 29.15 24.1 10.4 Market Value ($bil) 36.59 27.72 19.55 21.64 11.44 11.33 24.36 48.66 7.9 13.8
100

Name Tokyo Electric Power Korea Electric Power Chubu Electric Power Kansai Electric Power Kyushu Electric Power Tohoku Electric Power NTPC Ltd. Saudi Electricity Chugoku Electric Power CLP Holdings

Country Japan South Korea Japan Japan Japan Japan India Saudi Arabia Japan China

LARGEST POWER UTILITIES IN ASIA- DATAMONITOR 2006

RANKING BY CAPACITY

COMPANY

COUNTRY

CAPACITY (MW)

SALES (TWh)

RANKING BY SALES

2 1 4 7

KEPCO TEPCO TAIWAN POWER NTPC

KOREA JAPAN TAIWAN INDIA

56053 61387 36122 26194

322 289 175 171

1 2 3 4

HUANENG POWER

CHINA

28187

160

3 5

KANSAI ELECTRIC CHUBU

JAPAN JAPAN

41750 32586

147 131

6 7

101

PLATTS GLOBAL ENERGY COMPANY RANKINGS

TOP INDEPENDENT POWER PRODUCER COMPANIES 2007

RANK COMPANY COUNTRY

1
2 3 4 5 6 7 8 9

TXU
CONSTELLATION ENERGY MIRANT ATEL NTPC EDISON SPA HUANENG POWER INTERNATIONAL POWER CALPINE CORP

USA
USA USA SWITZERLAND

FIRST IN ASIA

INDIA ITALY CHINA UK USA

10

DRAX

UK
102

FORBES RANKING - 2006, UTILITY INDUSTRY

Sales ($bil) 77.75 80.53 56.56 49.04 44.72 12.14 6.06 Profits ($bil) 7.39 6.34 5.08 2.97 2.64 0.75 1.31 Market Vaue ($bil) 133.37 86.32 57.28 61.5 47.03 12.52 26.06

Rank 30 47 76 101 112 478 494

Company Electricit de France E.ON RWE Group Suez Group Tokyo Electric Power Consolidated Edison NTPC

Country France Germany Germany France Japan United States India

Assets ($bil) 233.4 167.11 118.52 93.54 113 26.7 17.25

GLOBAL RANKING HEADED BY CITIGROUP

103

NTPC ranks sixth among the top ten global thermal generators

TWH
600 500 400 300

501

175
200 100 0

152

146

141

133

128

126

102

94

TP C

EL (I TA )

Co (U S)

(S AF )

(J AP )

(U S)

(U S)

U S)

(R

AE P

CO

TV A

-U ES

ES KO

So ut he r

KE P

TE PC

EN

AO

W E

(G ER

(S KR

(AT Kearney Survey 2002)

104

NTPC Ltd. - An Employer of Choice

Business World Grow Talent Survey Great Places to Work for-2006
Sl.No.
1. 2. 3.

Name of Company
RMSI Classic Stripes Google India

Industry
IT (Consulting & Software) Auto Ancilliaries IT (Software)

Ownership
Foreign Indian Foreign

4.
5. 6. 7. 8. 9. 10.

Federal Express
Marriott International MindTree Consulting NTPC SAP India Labs American Express India Freescale Semiconductors India

Logistics
Hospitality IT (Consulting) Power IT (Software) IT (Services) Manufacturing (Electronics)

Foreign
Foreign Indian Indian Foreign Foreign Foreign

NTPC is the only Public Sector Company among the 25 Companies for which Rankings were published. 105

LARGEST POWER UTILITIES IN ASIA- DATAMONITOR 2006

RANKING BY CAPACITY 2 1 4 7 6 3 5

COMPANY KEPCO TEPCO TAIWAN POWER NTPC HUANENG POWER KANSAI ELECTRIC CHUBU

COUNTRY KOREA JAPAN TAIWAN INDIA CHINA JAPAN JAPAN

CAPACITY (MW) 56053 61387 36122 26194 28187 41750 32586

SALES (TWh) 322 289 175 171 160 147 131

RANKING BY SALES 1 2 3 4 5 6 7

106

PLATTS GLOBAL ENERGY COMPANY RANKINGS

TOP INDEPENDENT POWER PRODUCER COMPANIES 2007

RANK COMPANY COUNTRY

1
2 3 4 5 6 7 8 9

TXU
CONSTELLATION ENERGY MIRANT ATEL NTPC EDISON SPA HUANENG POWER INTERNATIONAL POWER CALPINE CORP

USA
USA USA SWITZERLAND

FIRST IN ASIA

INDIA ITALY CHINA UK USA

10

DRAX

UK
107

FORBES RANKING - 2006, UTILITY INDUSTRY

Rank 30 47 76 101 112 478 494

Company Electricit de France E.ON RWE Group Suez Group Tokyo Electric Power Consolidated Edison NTPC

Country France Germany Germany France Japan United States India

Sales ($bil) 77.75 80.53 56.56 49.04 44.72 12.14 6.06

Profits ($bil) 7.39 6.34 5.08 2.97 2.64 0.75 1.31

Assets ($bil) 233.4 167.11 118.52 93.54 113 26.7 17.25

Market Vaue ($bil) 133.37 86.32 57.28 61.5 47.03 12.52 26.06

GLOBAL RANKING HEADED BY CITIGROUP

108

Energy Resources of India Nuclear and Hydro

Hydro
(As Assessed by CEA):

Potential
Present Installed Capacity Balance (Recoverable)

150,000 MW
34,654 MW 115,346 MW
Does not include pump storage potential

Nuclear
Reserves Tonnes of Metal 61,000 225,000 Potential Gwe-Yr 42,530 150,000

Uranium
Thorium

Source: IEP

109

SECTORAL IMPROVEMENT

Improvement in performance of 15 under-performing stations entrusted to NTPC under

Partnership in Excellence. Generation increased 11% creating an equivalent capacity

of 237 MW in less than a year. Major improvements were in Tenughat 47.83%, Patratu 32.71%, Rajghat 28.24%.

Electrification of Rural Villages & Households under Rajiv Gandhi Grameen VidyutiKaran Yojana (RGGVY). villages in 5 States. NTPC is working on the electrification of about 40,000

Year-wise Electrification Plan

Village Category Un-Electrified Villages Partially Electrified Villages 2005-06 43 Nil 2006-07 700 530 2007-08 7234 10170 2008-09 7811 11823 Total 15788 22523
110