ECONOMIC AND SECTOR OUTLOOK
The global economy remains uncertain, marked by ongoing wars, conflicts, and the emergence of new flashpoints around the world, which cast a shadow on the macroeconomic outlook. Despite this global uncertainty, the Indian economy has performed remarkably well in recent years. India remained the fastest growing large economy with GDP growth at 8.2%, 8.1%, 8.4% and 7.8% during Ql, Q2, Q3 and Q4 of FY24 respectively. Yearly GDP growth rate during FY24 stood at 8.2%, as compared to 7% in FY23. International Monetary Fund (IMF) has made mild growth projection for most of the economies across the world, however it expects India to show strong growth of 6.8% in FY25 and 6.5% in FY26.
Based on the Indices of Industrial Production (IIP), electricity sector has shown a growth of 7.1% over the last fiscal. This growth is higher when compared to IIP for manufacturing of 5.5% but is slightly lower when compared to mining which registered a growth of 7.5%.
FY24 has seen Indias Power Sector achieving new milestones and meeting the aspirations of a rapidly growing nation. While peak demand touched 243 GW (13% higher than FY23), peak demand met almost touched a new high of 240 GW. With the gross generation of 1739 BUs (7% growth), peak shortage has reduced to 1.4% (3340 MW) from 4.0% (8657 MW) in the previous year. Aided by addition of more than 18 GW of RE capacity, India continued its stride in the Renewables. The share of RE capacity crossed 43% (including large Flydro) of the total installed capacity in FY24.
Amid these developments, universal access to affordable and consistent power supply remains the primary goal for the Power Sector. To meet this goal, fuel security and affordability remains the prime challenge on the supply side, whereas financial health of the DISCOMS and demand side management remains the prime challenge on the delivery side.
The government has implemented proactive measures and policy initiatives to ensure sufficient fuel stocks. These include modifications to the SHAKTI Policy and strategic imports. Introduction of Time-of-Day tariff, smart metering, and Revamped Distribution Sector Scheme (RDSS) are also gathering pace. Flowever, further efforts are required for modernisation of the distribution sector through rapid adoption of smart grid technologies and digitalization of processes & customer interface. Additionally, ever increasing share of renewable energy into the grid, posed the challenge of grid stability.
To meet these challenges and move ahead with the decarbonization of the economy, Government of India has taken several initiatives in FY24, key among them are:
Power Sector Reforms
• Indian Electricity Grid Code Regulations (IEGC), 2023
• Introduction of Time-of-Day tariff
• Guidelines to promote development of Pump Storage Projects (PSP)
• Electricity (Late Payment Surcharge and Related Matters) (Amendment), 2024
• Phasing plan for implementation of flexible operation of coal-based units.
• Electricity (Rights of Consumers) Amendment Rules, 2023 Renewable Energy Promotion
With a commitment to increase non-fossil fuel-based energy capacity to 500 GW by 2030, India added 18 GW of renewable energy in FY24 showcasing a 20% YoY growth over 15 GW RE capacity installed in FY23, 360 BUs of power was generated from renewable energy sources (including large hydro) present across India to cater to increasing renewable power demand. Coupled with technology improvement and enabling government initiatives, growth of RE for India is expected to be exponentially high. CEA in its National Electricity Plan has projected Indias RE based requirement to be 336 GW by FY27 and around 596 GW by FY32. As of FY24 end, renewable energy was contributing around to 21% of total power production in India. As India has committed to achieve Net Zero by 2070, it has laid out corresponding policies to create synergic effect which in turn will increase renewable energy demand. With providing Viability Gap Funding (VGF) for BESS and laying out pathway for green Hydrogen and offshore wind, GOI is increasing the possibilities of large-scale capacity growth of renewable power, helping the renewable sector and related organizations.
GOI has taken the following new initiatives to promote RE capacity addition:
• RE Bidding trajectory - As per the Bidding trajectory finalized by the Ministry of New and Renewable Energy (MNRE), 50 GW of RE bids shall be issued each year from FY24 to FY28, consisting of at least 10GW of Wind energy capacity. The plan is in line with Indias target of 500 GW of installed electricity capacity from non-fossil fuel (renewable energy and nuclear) sources by 2030.
• Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme to stimulate the growth of the green hydrogen value chain in India. This includes:
SIGHT I - Incentive scheme for electrolyser manufacturing
SIGHT II - Incentive scheme for green hydrogen production
• Green National Repowering & Life Extension Policy for Wind Power Projects - 2023
• Waiver of the ISTS charges on offshore wind, green hydrogen, and ammonia projects
• Introduction of Green Hydrogen Standard for India
• MOP draft Notification on Renewable Generation Obligation
• Viability Gap Funding for development of Battery Energy Storage Systems (BESS)
• Offshore Wind Energy Lease Rules, 2023
• Allocation of CPSU to States/UTs for Rooftop Solar implementation
INDUSTRY STRUCTURE AND DEVELOPMENTS
The power sector is one of the key enablers of Indias economic growth. Electricity contributes ~22% in the final energy consumption of India. The sector with its three pillars: Generation, Transmission, and Distribution, is crucial to Indias infrastructure and economic growth. The global stature of the Indian Power Sector is depicted well by its positioning in terms of generation capacity.
India is ranked 3rd in the world in terms of electricity generation and 4th in terms of total renewable capacity installed after China, US, and Brazil. Our world ranking in Wind, Solar and Hydro installed capacity is 4th, 5th and 6th respectively as reported by international agencies like IEA, Statista, IRENA etc. The achievements and various issues/ challenges faced by the Power Sector and key initiatives taken by the Ministry of Power are discussed in the following paragraphs.
SNAPSHOT 2023-24
• Gross generation of the country (including imports from Bhutan) increased from 1624 BUs in the previous year to 1739 BUs, registering a growth of about 7%.
• Generation from Renewable sources increased by about 11% from 203 BUs to 226 BUs, (excluding Large Hydro) while generation from conventional sources (Thermal, Nuclear and Large Hydro including Bhutan import) increased by about 6.5% from 1421 BUs to 1513 BUs.
• Conventional capacity addition was 7426 MW during FY24as compared to 1580 MW during the previous year.
• With the addition of 18485 MW, the renewable energy capacity has reached 190 GW (including large hydro) at the end of FY24, an increase of about 10% over the previous year.
• With an addition of 14203 Ckms of transmission lines, total installed transmission capacity reached 485544 Ckms as on FY24 end.
• 70728 MVA of transformer capacity was added during FY24 as against 75902 MVA in FY23.
• PLF of coal and lignite-based stations increased to 69.49% in FY24 from 64% in FY23.
• The energy deficit stands at 0.3% lower than previous year deficit of 0.5%. Further, peak demand deficit has also decreased to 1.2% from 4% on YoY basis.
• For FY24, Peak demand met registered a growth of 13% at 239931 MW, as compared to 211856 MW in FY23. While Maximum energy demand met stood at 5224 MUs, as compared to 4722 MUs achieved in FY23.
Existing Installed Capacity
The total installed capacity (including renewables) in the country as on 31 March 2024 was 441970 MW with the Private Sector contributing 52% of the installed capacity while both State and Central Sector contributing 24% each.
| Sector | Total Capacity (MW) | % Share |
| Private | 229847 | 52% |
| State | 107670 | 24% |
| Central | 104453 | 24% |
| Total | 441970 | 100% |
Source-wise installed capacity in the country as of 31 March 2024 is as under:
| Mode | Total Capacity (MW) | % Share |
| Thermal | 243217 | 55% |
| Nuclear | 8180 | 2% |
| Hydro | 46928 | 11% |
| RES (Renewables) | 143645 | 32% |
| Total | 441970 | 100% |
Capacity Utilization and Generation
Sector-wise PLF in % (Coal-based)
| Sector | 2023-24 | 2022-23 |
| Central | 75.86 | 74.93 |
| State | 65.35 | 62.30 |
| Private | 64.17 | 61.61 |
| Private IPP | 67.68 | 55.56 |
| All India | 69.49 | 64.00 |
Generation
Sector-wise and fuel-wise break up of conventional generation (BUs) for FY24 is detailed as under:
| Sector | Thermal | Hydro | Nuclear | Total |
| Central | 472 | 58 | 48 | 578 |
| State | 404 | 62 | — | 466 |
| Private | 450 | 14 | — | 464 |
| Bhutan Import | — | — | — | 5 |
| Total | 1326 | 134 | 48 | 1513 |
Sector-wise share in conventional installed capacity vis-a-vis share in conventional generation:
| Sector | Share in installed capacity (%) | Share in generation (%) |
| Central | 24% | 38% |
| State | 24% | 31% |
| Private | 52% | 31% |
Electricity Consumption
The per capita consumption of power in India has reached 1327 units in FY23. It is still well below 50% of the global average, providing enough room for growth.
Major end-users of power are broadly classified into 6 categories: Agricultural, Commercial, Domestic, Industrial, Traction, and others. Their shares of electricity consumption, during FY23, were approximately 17.2%, 7.5%, 27.2%, 42.7%, 1.8% and 5.7%, respectively. During FY24, although absolute consumption of all the sectors has increased, the share of agriculture and domestic consumption in the total consumption has increased whereas for other sectors it has decreased slightly.
Transmission
The total inter-regional transmission capacity of the country has increased to 112340 MW as on 31 March 2024. This augmentation of the national grid is essential for supporting the higher injection of renewable energy into the grid for the transfer of power from RE-rich states to other states.
Further, to meet the power evacuation requirement of over 500 GW RE Capacity planned by 2030, connectivity of RE generators to the load centres through Inter-State Transmission System (ISTS), is essential. It is estimated that the length of the transmission lines and sub-station capacity required under ISTS for integration of additional wind and solar capacity by 2030 will be 50890 Ckms and 433575 MVA respectively.
Distribution
Distribution is the key link in realizing the Government of Indias vision of supplying reliable 24x7 Power for All. In this regard, the financial health of distribution companies is of prime importance, enabling them to efficiently discharge their functions and responsibilities. Flowever, their poor financial health has remained a matter of concern. To reverse this trend, reduction of AT&C losses and ACS (Average Cost of Supply) - ARR (Average Revenue Realization) gap are critical factors. With these intentions, Revamped Distribution Sector Scheme (RDSS) has been launched to reinvigorate the DISCOMS. Important objectives of RDSS are:
• Reduction of AT&C losses to pan-India levels of 12-15% by 2024-25.
• Reduction of ACS-ARR gap to zero by 2024-25.
• Improvement in the quality, reliability, and affordability of power supply to consumers through a financially sustainable and operationally efficient distribution sector.
This results-linked scheme, launched in July 2021, has pushed the utilities and states to address performance gaps, and chart action plans to avail the benefits worth Rs. 300,000 crore. The outlay includes an estimated Government Budgetary Support (GBS) of Rs. 97,631 crore. The Scheme is comprised of two components:
• Part A: Financial support for Prepaid Smart Metering, System Metering, and Up-gradation of Distribution Infrastructure; and
• Part B: Training and capacity building and other enabling and supporting activities.
Under this scheme Action Plans for 46 DISCOMs (28 States/ UTs) have been approved where around 20.46 crore pre-paid smart consumer meters, 54 Lakh smart DT meters and 1.98 Lakh smart feeder meters have been sanctioned.
The impact of these initiatives is reflected in the finding of the 12th Integrated Rating & Ranking of Power Distribution Utilities. The key indicators of the improvement of Discoms performances are as below:
• In FY23, performance of 32 Discoms have improvement over the last fiscal.
• Cash Adjusted ACS-ARR gap per unit reduced from 79 paise/kWh in FY20, to 55 paise/kWh in FY23.
• AT&C losses have reduced from 16.2% in FY22 to 15.4% in FY23.
Power Trading
In India, power is transacted largely through long-term Power Purchase Agreements (PPAs), entered between generating companies and the distribution utilities. A small portion is transacted through various short-term (contract period<l Year) mechanisms. This includes Day Ahead Market and Real- Time Market (RTM), followed by bilateral contracts (through trades, term-ahead contracts on power exchanges, and directly between DISCOMs) and through Deviation Settlement Mechanism (DSM). Around 88% of the power generated in the country is transacted through the long-term PPA route and about 12% of the power is transacted through short-term trading mechanisms.
KEY INITIATIVES/REFORMS & REGULATORY CHANGES IN THE POWER SECTOR
SECTORAL REFORMS
1. CERC Tariff Regulations, 2024-29
In March 2024, Central Electricity Regulatory Commission (CERC) notified (Terms and Conditions) of Tariff Regulations, 2024-29. The salient features of these Regulations are:
a. Rate of return on equity for thermal stations retained at 15.5%.
b. Normative availability for recovery of Annual Fixed Charges (NAPAF) and Normative Annual Plant Load Factor (NAPLF) for incentive for coal stations completing 30 years from COD as on 31 March 2024 reduced to 83% from 85%.
c. Capacity charges to be recovered in two parts, namely, capacity charges for peak hours (4 hours in a day) and capacity charges for off-peak hours (20 hours in a day). High Demand & Low Demand season criteria for capacity charge recovery removed.
d. Incentive payable to thermal station on ex-bus scheduled energy - During peak hours @ 75 paise/kWh and during off peak hours @55 paise/kWh corresponding to the scheduled energy in excess of ex-bus energy corresponding to NAPLF achieved on cumulative basis.
e. Incentive for primary frequency response - Thermal station shall be allowed an Incentive up to 1% of Annual Fixed Charges for providing primary frequency response.
f. Station Heat Rate Norm for coal-based units:
• 200 MW & 500 MW units - Reduced by 15 Kcal/ kWh as compared to 2019-24 tariff period (New norms 200 MW/500 MW 2415/2375 kcal/kWh).
• Stations achieving COD on or after 1 April 2009 -
200 MW units 5% margin over design heat rate. 500 MW & above units - Margin of 4.5% over design heat rate. Minimum boiler efficiency retained at 86%.
g. Auxiliary Energy Consumption (AEC) Norms -
200 MW units - 8.5% (no change from 2019-24 tariff period), 500 MW and above - 5.25% (reduced by 0.5% as compared to 2019-24 tariff period).
h. Gross Calorific Value (GCV) of Coal: GCV on as received basis along with margin of 85 Kcal/ Kg retained with third party sampling by agency to be appointed by generating company as per guidelines issued by the Central Government. In the absence of third-party sampling, GCV as billed by coal company to be considered. In case of coal from captive/integrated mine, the GCV of coal received at the end use generating station shall be adjusted by 15 Kcal/Kg from the GCV measured at the mine end for every 100 km distance beyond 200 km, or actual whichever is lower, subject to the condition that such an adjustment in aggregate shall not exceed 300 Kcal/Kg.
Other changes:
• Normative transit loss of 1% introduced for multi modal transportation of coal by Road Cum Rail, Rail Ship Rail mode.
• Interest rate on working capital reduced by 0.25%.
• Specific Fuel oil consumption of 1.0 ml/kWh for front/rear/side fired boilers.
2. Electricity (Late Payment Surcharge and Related Matters) (Amendment) 2024
MOP, vide notification in February 2024 amended LPS Rules 2022. As per amendment, the generating company, shall offer, any un-requisitioned surplus power (including the capacity under reserve shutdown), in the real-time market if such power offered is not cleared in the day ahead market. Such offer of power shall be at a price not exceeding 120% of its energy charges. Provided also that if the generating company fails to do so, the unrequisitioned surplus power to the extent not offered in the power exchange up to the declared capacity shall not be considered as available for the payment of fixed charges.
3. Indian Electricity Grid Code Regulations (IEGC) 2023
CERC notified IEGC-2023 in May 2023 and same has been implemented w.e.f. 1 October 2023. Subsequently, CERC has issued orders for removal of difficulties in the implementation of IEGC 2023.
The salient provisions of the new Grid Code Regulations are:
• Reference Frequency - 50.000 Hz (Resolution of 0.001 Hz against existing 0.01 Hz). The allowable band of frequency has been kept 49.900-50.050 (same as in earlier regulation).
• Minimum Turndown Level - For a unit of a regional entity thermal generating station shall be 55% of Maximum Continuous Rating (MCR) or such other minimum power level as specified in the CEA Regulations as amended from time to time.
• Reserve Maximization - To maximize the reserves in the grid, concept of Security Constrained Unit Commitment (SCUC) is introduced, which provides that, some of the units which have received schedule less than Minimum Turndown Level may be committed by NLDC for running under SCUC based on its merit order. The generating stations or units identified underSCUC, but not brought on bar under SCUC, shall have the option to operate at a level below the minimum turn down level or to go under Unit Shut Down (USD). In case a generating station, or unit thereof, opts to go under USD, it shall fulfil its obligation to supply electricity to its beneficiaries who had made requisition from the said generating station prior to it going under USD by arranging supply either:
a. by entering a contract(s) covered under the Power Market Regulation; or
b. by arranging supply from any other generating station or unit thereof owned by such generating company; or
c. through Security Constrained Economic Dispatch (SCED).
If a generator wants to retain its Declared Capability (DC) in the event of forced outage of a unit, the generating company owning the generating unit shall fulfil its supply obligation to the beneficiaries which made requisition from such generating unit.
• Mandated to provide Primary Reserve Ancillary Service - The generating units thereof with governors shall be under Free Governor Mode of Operation (FGMO).
• Commercial settlement for reactive power - As per the provisions specified, the regional entity (including generating station) shall be paid for VAr return when voltage is below 97% and for VAr drawal when voltage is above 103%. The charge for VArh shall be at the rate of 5 paise/kVArh escalated at 0.5 paise/kVArh per year thereafter.
• Revision of DC shall be allowed on accou nt of forced outage, only in case of bilateral transactions and not in case of collective transaction, as per following conditions:
| Unit Type | Max daily revisions in DC | Monthly | Reason to be recorded in writing |
| Coal Plants | 4 | 60 | Partial outage of the unit or variation of fuel quality or any other technical reason |
| Lignite, Gas based | 6 | 120 | Partial outage of the unit, fuel quality or variations in supply of gas or any other technical reason |
| Hydro | 6 | 120 | Water availability & Partial outage |
4. National Electricity Plan (NEP)
Notified by CEA, for the period of 2022-32, it includes a detailed plan for the next five years (2022-27) and the prospective plan for the subsequent five years (2027- 32). According to the NEP, the projected all India peak electricity demand and electrical energy requirement is 277 GW and 1908 BU for the year 2026-27 and 366 GW and 2474 BU for the year 2031-32.
5. Scheme for Operation of Gas Based Power (GBP) during peak crunch period (10 April 2023 to 16 May 2023)
The scheme envisaged power generation from gas stations on RLNG fuel and to be sold through Power Exchange with shortfall between the cost of generation and revenue received from Power exchange to be reimbursed from Power System Development Fund (PSDF). CEA was made nodal agency for operationalisation of scheme. Earlier CERC vide order dated 16 February 2023 in Petition No. 359/MP/2022, had introduced HP-DAM for gas-based generators, imported coal-based generators and Battery Energy storage systems.
6. Guidelines for Resource Adequacy planning framework of India
MOP released guidelines for resource adequacy framework of India on 28 June 2023, the salient features of guidelines are:
• DISCOMs to supply 24 X 7 reliable power to its consumers. All DISCOMs are duty bound to tie up sufficient capacity to meet the demand of its consumers. If any DISCOM does not do so, it is failing in its duty.
• Compliance to the Resource adequacy norms and Guidelines shall ensure that DISCOMs tie up sufficient capacity to meet the demand of the area they are licensed to serve.
• The capacity which the DISCOMs tie up shall be a judicious mix of long/medium and short-term contracts to ensure security of supply to their consumers at least cost.
• The resource adequacy framework lays down the optimal capacity mix required to meet the projected demand at minimum cost. New generation capacities, energy storage and other flexible resources needed to reliably meet future demand growth at optimal cost to the system will be timely assessed.
• Guidelines provide for an institutional mechanism for Resource Adequacy ranging from National level to DISCOM level such that the availability of resources to meet the demand is ensured at each level.
7. Electricity (Amendment) Rules 2024: MOP has notified Electricity Amendment Rules 2024 in January 2024. The salient features are:
• Establishment, operation and maintenance of dedicated transmission lines: Agenerating company or a person setting up a captive generating plant or an Energy Storage System or a consumer having load of not less than twenty-five Megawatt in case of Inter State Transmission System and ten Megawatt in case of Intra-State Transmission System shall not be required to obtain license under the Act for establishing, operating or maintaining a dedicated transmission line to connect to the grid.
• Charges for using network of State Transmission Utilities: The charges for using State Transmission Utility network by the consumers availing short-term open access or Temporary-General Network Access (GNA), as the case may be, shall not be more than one hundred ten per cent of the charges levied on consumers using State Transmission Utility network on long-term basis or on General Network Access basis, as the case may be.
• Additional Surcharge: The additional surcharge levied on any Open Access Consumer shall not be more than the per unit fixed cost of power purchase of the distribution licensee.
• Gap between approved Annual Revenue Requirement and estimated annual revenue from approved tariff: The tariff shall be cost reflective and there shall not be any gap between approved Annual Revenue Requirement and estimated annual revenue from approved tariff except under natural calamity conditions.
8. Electricity (Rights of Consumers) Amendment Rules, 2023
MOP in June 2023 amended Electricity (Rights of Consumers) Rules, 2020. Key points of the amendment to rules are given below:
• Smart metering - All types of smart meters shall be read remotely at least once in a day instead of month. After the installation of smart meters, no penalty shall be imposed on the consumer, based on the maximum demand recorded by the smart meter, for the period before the installation date. In case maximum demand recorded by the smart meter exceeds the Sanctioned Load in a month, the bill, for that billing cycle, shall be calculated based on the actual recorded maximum demand.
• Time of the Day Tariff - The Time of the Day tariff introduced for Commercial and Industrial consumers having maximum demand more than 10 KW made effective from a date not later than 1 April 2024 and for other consumers except agricultural consumers, the Time of the Day tariff shall be made effective not later than 1 April 2025. Time of the Day tariff shall be made effective immediately after installation of smart meters, for the consumers with smart meters.
FUEL RELATED REFORMS
1. MOP modifies coal allocation methodology under SHAKTI Policy
According to the modification, all power plants which do not have PPAs, shall be allowed coal linkage for a period of minimum 3 months to maximum 1 year, provided further that the power generated through that linkage is sold through any product in power exchanges or in short term through a transparent bidding process through DEEP portal.
2. Directions regarding import of coal
To ensure uninterrupted power supply across the country, in view of constantly rising power demand, MOP in October 2023 gave directions to all GENCOs including Independent Power Producers (IPPs) for timely import of coal for minimum blending @ 6% (by weight) till March 2024. Later this advisory was extended till June 2024.
3. CERC issues Order on Blending of imported coal with domestic coal to mitigate the domestic coal shortage.
Ministry of Power vide letter dated 9 January 2023, directed the Central GENCOs, State GENCOs and IPPs to take necessary action and immediately plan to import coal through a transparent competitive procurement for blending at the rate of 6% by weight so as to have coal stocks at their power plants for smooth operation till September 2023, provided that in such case, prior permission from beneficiaries shall not be a precondition for blending up to 6% by weight, unless otherwise agreed specifically in the power purchase agreement.
4. Empanelment of Third-party sampling agency
M/s CSIR-CIMFR discontinued the works of Third-Party Sampling at loading and unloading end w.e.f. 11 November 2023. To have additional third-party agencies other than CIMFR, Ministry of Power has empaneled 11 parties (through two rounds of empanelment) for sampling and testing of coal at the loading end, with the choice of Coal Consumer for taking services from the empaneled agencies.
5. Notification for Agro-residue Utilization by TPP Rules, 2023
The Ministry of Power (MOP) has issued revised biomass policy in June 2023, which mandates that all thermal power stations must co-fire 5% biomass pellets from FY25 & 7% from FY26. These guidelines also have a provision of benchmark price notification by MOP. Accordingly, MOP announced benchmark price for NCR, WR & NR region in August & November 2023 respectively. Failure to meet the set targets will result in the imposition of Environmental Compensation at the specified rate outlined in the regulations starting from FY25.
RENEWABLE ENERGY RELATED REFORMS
1. Waiver of the ISTS charges on offshore wind, green hydrogen and ammonia projects. Notified in May 2023, GOI announced for Waiver of the ISTS charges for:
a) Offshore wind power projects commissioned on or before 31 December 2032 and established via PPAs or merchant basis, shall be granted exemption from payment of ISTS Charges for 25 years, starting from the date of commissioning of the project.
b) Green Hydrogen/Green Ammonia Plants commissioned on or before 31 December 2030, and which utilize renewable energy from Solar, Wind or Large Hydro, commissioned after 8 March 2019, or Energy Storage Systems (ESS) (such as Pump Storage Plants or Battery Energy Storage Systems) or any hybrid combination of aforementioned technologies, forthe production of Green Hydrogen or Green Ammonia, shall be granted exemption from the payment of ISTS Charges for a period of 25 years, starting from the date of commissioning of the project. Further, Plants commissioned after the above-mentioned dates shall be levied ISTS charges as per the trajectory specified.
c) To promote the development of pump storage plants (PSP), the criteria for availing the complete waiver of ISTS charges for PSP projects has now been linked to the date of award of the project instead of commissioning of the project. Waiver shall be applicable in certain cases.
2. MOP mandates Renewable Generation Obligation for coal and lignite-based power stations
In October 2023 MOP issued a draft notification on Renewable Generation Obligation for coal and lignite- based power stations. The obligations vary depending on the stations commercial operations start date.
| Commercial Operation Date of coal/lignite based generating station | Minimum RGO (%) | Due Date for RGO compliance |
| On or before 31 March 2023 | 6% | 1 April 2026 |
| 10% | 1 April 2028 | |
| 1 April 2023 to 31 March 2025 | 10% | 1 April 2025 |
| 1 April 2025 onwa rds | 10% | From COD of coal/ lignite based generating station |
Generators can meet RGO by establishing renewable capacity or procuring and supplying renewable energy. There will be a penalty in case of a shortfall of RGO compliance.
3. National Repowering & Life Extension Policy for Wind Power Projects - 2023
In December 2023, MNRE floated a new policy which allows developers to extend the lifespan of following wind turbines:
• Non-compliant turbines (failing to meet quality control standards).
• Turbines reaching the end of their certified design life.
• Turbines with a rated capacity below 2 MW (regardless of age).
• Turbines after 15 years of operation (considered on a commercial or voluntary basis).
The estimated capacity of turbines is to increase by
1.5 times or above after repowering.
4. Viability Gap Funding for development of Battery Energy Storage Systems (BESS)
In December 2023, the Union cabinet approved scheme for development of BESS which envisages development of 4 GWh of BESS projects by FY31, with financial support of up to 40% of the total capex of project in the form of VGF. In June 2021, GOI had introduced PU scheme with an outlay of Rs. 18,100 crore for manufacturing of Advanced Chemistry Cell (ACC) battery storage of 50 GWh capacity, out of which 30 GWh has been allocated via competitive bidding process.
5. Offshore Wind Energy Lease Rules, 2023
Ministry of External Affairs (MEA) notified rules for leasing the seabed for offshore wind power projects with the lease being valid for 3 years for resource measurement, which can be further extended by an additional period fortwo years. Forthe construction and operation of offshore wind energy farms, the lease period will be for 35 years, which can be extended further on a case-to-case basis. The area covered under a lease shall ordinarily be 25 sq. km to 500 sq. km and the same may vary depending on the size of the project.
6. Electricity Rules 2024 to speed up connections to promote EVs & Solar PV Systems.
In February 2024, Electricity Rules 2024 were issued providing amendments to the Electricity (Rights of Consumers) Rules, 2020, aiming to simplify processes for new electricity connections and rooftop solar installations. Changes include defining terms "Owner" and "Resident Welfare Association", setting timeframes for connection provision, and streamlining procedures for rooftop solar. These adjustments prioritize consumer convenience and promote renewable energy adoption.
7. MNRE issued a scheme guideline for setting up hydrogen hubs in India
MNRE issued guidelines for setting up of green hydrogen hubs, the scheme acts as an extension of Green Hydrogen Mission. The main objective of the scheme is to identify and develop regions capable of supporting large scale production and/ or utilization of hydrogen as green hydrogen hubs.
8. Strategic Interventions for Green Hydrogen Transition (SIGHT)
• SIGHT I focuses on incentivizing domestic manufacturing of electrolyzers. With a budget of Rs. 4,440 crore spread over five years, this scheme aims to bridge the gap between the cost of imported and domestically produced electrolyzers.
• SIGHT II directly targets green hydrogen production in India. This component boasts a larger budget of Rs. 13,050 crore. It aims to maximize green hydrogen and its derivatives production, making it cost- competitive with fossil fuel-based alternatives.
9. Green Hydrogen Standard for India
To provide a clearer prospective on definition of Hydrogen and derivatives for National Green Hydrogen Mission to enable production of 5 MMT per annum by 2030, the standard redefined "Green Hydrogen" as, Hydrogen produced from renewable energy, including:
• Production through electrolysis, where Green-house gas emission from water treatment, electrolysis gas purification, drying and compression of Hydrogen shall not be greater than 2 kg CO2 eq. per kg of H2 produced.
• Production from biomass conversion given that GHG emission footprint in the entire production process shall not be greater than 2 kg CO2 eq. per kg of H2 produced.
OPPORTUNITIES AND THREATS/CHALLENGES OPPORTUNITIES
India has been a key economic growth engine for the world, contributing 16% to the global growth in 2023. As per the Vision India @2047, Government has set a goal of making India a USD 30 trillion economy with per capita income moving to the developed economy zone (USD 18,000-20,000). Hence the economy is poised to grow at a rapid pace. As electricity is key input for all sectors of the economy, the demand for electricity is expected to grow proportionally.
Additionally, the growth will be driven by increased urbanization and electrification of other sectors. According to CEA estimates, demand for electricity is expected to grow at 6.7% till FY27 and at 5.3% till FY32.
To meet this growing demand and parallelly addressing the climate concerns, India has set an ambitious target to install 500 GW of non-fossil energy by 2030, which includes 280 GW of solar power and 140 GW of wind power projects. This requires an average annual addition of installed capacity of about 40-50 GW till 2030, providing a huge opportunity for capacity expansion. In alignment with this, your Company has set a target to increase its installed RE Capacity to 60 GW by 2032. Along with clean power, the demand for the Green Chemicals and energy storage system like Battery and Pumped Hydro Storage will also rise rapidly, presenting huge opportunity in this space.
While RE capacity addition is rapidly increasing, the seasonality, intermittent availability, and storage constraints limit the actual generation and hence there is ample space for thermal capacity addition as well. As per Government estimates, an addition of around 80 GW of thermal capacity is required by FY32 to meet the power demand and provide energy security to the nation. However, these capacities must be based on high efficiency and low emission technologies. At present, NTPC has around 10 GW of thermal capacity under construction.
Presently bulk of the power is purchased through the long term PPA, but there is an increasing shift towards short term power procurement from power markets, OTC and bilateral agreements by the DISCOMs. Hence power trading is also expected to grow at a brisk pace both domestically and across the borders and your Company has a significant presence in this area. These opportunities coupled with the supportive policy framework in Renewable Energy Sector, Green chemical and fuels, E-mobility, Power trading, is leading to new business development domestically as well as internationally, as elaborated below.
1. Renewable Energy
a. Solar Technologies
Solar PV modules technology has shifted from poly crystalline to mono crystalline modules having higher efficiency and wattage and now with advent of Topcon modules with even higher efficiency, it is possible to generate more power in same footprint area enabling further growth of solar parks and utility scale projects. Further increasing use of Bi-facial modules and solar tracker, has reduced the inherent variations in solar power generation which has been the biggest drawback for solar power. The inverter capacity per block has increased to 4.4 MW, enabling, higher conversion ratios and reducing capital expenditure. Government has allocated, around 40 GW of domestic Solar PV module manufacturing capacity under PLI (Tranche-ll) in March 2023. This shall boost domestic module availability and support capacity addition programme.
b. Green Hydrogen Technologies
With advancements in Green Hydrogen production technology, in various Electrolyzers (PEM, AEM, alkaline, and Solid Oxide), Hydrogen from biomass etc. value to cost of production of Green Hydrogen is decreasing. Further increasing thrust in Green Hydrogen/Green
Chemicals utilization is leading to an increased demand of renewable power.
NTPC is implementing pilots for green hydrogen blending with Piped Natural Gas (PNG) network. Green mobility projects are aimed at finding the techno-economic feasibility of Hydrogen buses for short & long haul. Further, Green Hydrogen based microgrid project and locomotive(s) are at an advanced stage of planning.
c. Energy Storage
In National Electricity Plan, CEA has projected energy storage capacity of 82.37 GWh by FY27 and 411.4 GWh (including PSP) by FY32. Advancement in BESS technology (Li-ion, Na-ion, Ni-Cd, Flow batteries etc.) and introduction of other potential storage methods like Hydrogen and Thermal storage can potentially catapult the RE sector for further growth. The global energy storage market has seen growth in 2023, nearly tripling to 45GW/97GWh.
d. C&l customer for RE-RTC
With increase in demand of renewable energy, C&l customer preference is shifting towards RE-RTC (Round the Clock) power. With advent of domestic cloud storage as well as Al, there shall be a high demand for RE power from data centers. NTPC has also tied up with C&l Customers for supply of RE-RTC.
2. Carbon Capture and Utilization, Green Chemicals and Green Fuels
Your Company is exploring opportunities in the domain of carbon capture and utilization, green hydrogen, green fuel, and green chemicals. Salient projects in these areas are listed below:
a. Carbon Capture & Utilization (CCU)
The projects undertaken under CCU are as follows:
• 10 TPD Flue Gas CO2 to Methanol plant at NTPC Vindhyachal
• 10 TPD Flue Gas CO2 to Ethanol plant at NTPC Lara
• Study on CO2 Geological Storage Potential in Cat-1 Coal Fields
• CO2 based Carbonated Coarse Aggregate Project
b. Green Hydrogen technology
The projects undertaken for producing green hydrogen are as follows:
• Set up of 25KWe Green Hydrogen Grid at NETRA
• Setup of 1 TPD Sea Water to Green Hydrogen Plant at NTPC Simhadri
c. Water technology
The projects being undertaken for producing clean water from wastewater and to subsequently produce hydrogen are as follows:
• Set up of 240 TPD Non-Thermal Forward Osmosis plant at NTPC Mouda
• Set up of 200TPH Electrocoagulation System at NTPC Solapur
d. Ash Technology
• Set up of 30,000 M3/Year Fly Ash based FALG Aggregate Plant at NTPC Korba
• Light Weight Aggregate Plant at NTPC Sipat
3. E-Mobility
Your Company envisions to provide zero emission mobility solutions for public transport which includes providing vehicles based on various technologies. Your Companys subsidiary NVVN has supplied 40 E-buses to the Department of Transport Andaman & Nicobar (A&N) and 90 E-buses to Bengaluru Metropolitan Transport Corporation. The buses in A&N are under commercial operation for last 3 years and have logged approximately 6 million kms. Buses in Bangalore are also under commercial operation and have travelled more than 10 million kms till 31 March 2024.
Towards achieving Carbon-Neutral Ladakh, your Company is setting up Hydrogen Fuelling Station, Solar Plant and providing five Fuel Cell buses for operation on intracity routes of Leh. The first-of-its-kind Green Hydrogen Mobility Project at 11562 ft. is co-located with dedicated Solar plant of 1.7 MW for providing renewable power. A unique feature of this project is that the fuel cell buses are designed for operation in sub-zero temperatures in rarefied atmosphere, which is typical for high altitude locations. A similar Green Hydrogen Mobility Project is under implementation at Greater Noida for supplying green hydrogen for running five FCEVs for long haul transport.
4. Cross Border Power Trading
The guidelines issued by MOP, and CERC regulations for cross-border trading of power have opened opportunities to export power to neighbouring countries. Presently, India exports electricity to Nepal, Bangladesh, and Myanmar. India imports power from Nepal and Bhutan but exports power during the lean hydro season. Your Companys subsidiary NVVN has been assigned the role of Nodal Agency for cross-border trading of power by GOI. NVVN has also been nominated as Settlement Nodal Agency (SNA) for the settlement of Grid operation- related charges with neighbouring countries, Bangladesh, Bhutan, Nepal, and Myanmar. Following this, NVVN has signed an SNA agreement with Nepal Electricity Authority and with Druk Green Power Corporation, Bhutan. SNA agreement with Bangladesh Power Development Board shall be signed shortly.
NVVN has signed various Power Purchase Agreements with Bangladesh aggregating up to 742 MW power. NVVN is also supplying 200 MW power to Haryana from Nepal Electricity Authority. NVVN is exploring possibilities for sale of power from NEA hydro power stations to BPDB through Indian Grid.
NVVN has also been trading power with Nepal Electricity Authority (NEA). NVVN has commenced the Cross-Border Electricity Trade (CBET) in power exchange platform by supplying power to Nepal Electricity Authority through day ahead market platform of Power Exchange. This is a first of its kind initiative that helped NVVN to further expand its cross-border portfolio. NEA through NVVN had started export of hydro power to India through power exchange market.
5. International Business
Your Company, building on the proven project management and O&M experience with an expanding power generation portfolio, has made a global presence in various countries as below:
a. Project Development
Bangladesh-lndia Friendship Power Company Private Limited: This 50:50 joint venture company, formed with the Bangladesh Power Development Board (BPDB), commissioned a coal-based power plant of 1,320 MW capacity at Rampal (Khulna) christened as Maitree Super Thermal Power Plant. The first unit of 660 MW is under commercial operation since December 2022. The second unit was declared COD w.e.f. 12 March 2024.
Trincomalee Power Company Limited (TPCL): TPCL (A 50:50 JV between NTPC Ltd and Ceylon Electricity Board (CEB), Sri Lanka) is developing a 50 MW (extendable to 120 MW) solar power project at Sampur, Sri Lanka, for which JVSHA has been signed on 11 March 2022.
b. PMC consultancy work with International Solar Alliance
Your Company is associated as a corporate partner with International Solar Alliance (ISA) and has been awarded the following Project Management Consultancy (PMC) jobs abroad:
• ISA Solar Park PMC assignment (ISA Program-06)
Appointed as PMC consultant for implementation of 6.6 GW Projects in various countries, NTPCs mandate is to structure projects, tendering for selection of developers on behalf of the countries and oversee the construction activities till successful commissioning. More countries are being approached for assignments on similar lines.
| Country | Capacity |
| Togo | 250 MW |
| Mali | 500 MW |
| Malawi | 100 MW |
| Niger | 50 MW |
| Cuba | 1150 MW |
| Paraguay | 500 MW |
| Ethiopia | 410 MW |
| Zambia | 400 MW |
| Venezuela | 2000 MW |
| Guinea Bissau | 60 MW |
| DR Congo | 1000 MW |
| Nicaragua | 100 MW |
| Republic of Guinea | 100 MW |
| Total | 6620 MW |
Cuba: Post identification of LI developer, Negotiations for the Phase-1 of 60 MW Solar PV Park Project in Cuba (extendable to 360MW), between LI developer and LINE (Cuban Govt appointed entity for the project), is underway.
• Rooftop Solar Projects (ISA Program-04)
Your Company is providing PMC services for implementation of lOOkW Roof Top Solar Project in Ethiopia & Sao Tome. Selection of EPC Agency for execution of the Roof Top Solar Project, Ethiopia is underway.
• ISA 27 Demonstration Projects:
Your Company has been appointed as Project Management Consultant (PMC) for implementation of solarization projects in 10 countries (Viz. Seychelles, Senegal, Djibouti, Cuba, Ethiopia, Suriname, Burundi, Mozambique, Malawi & Uganda) across three themes:
(i) Solarization of building roof-top/ground mounted PV installation,
(ii) Solar based Cold Storages, and
(iii) Solar PV based Water Pumping Systems.
Projects in 5 countries (Seychelles, Cuba, Malawi, Uganda, and Ethiopia) have been successfully commissioned. Projects in other 5 countries are in various stages of implementation.
c. Other Consultancy assignments secured:
Your Company has secured several consultancy assignments through competitive bidding which are in various stages of development.
• Mauritius: Execution of a consultancy assignment for 2 MW Floating Solar PV Plant at Tamarind Falls Reservoir in Mauritius by CEB Mauritius is underway. 1st phase of the assignment has been completed and PMC services for 2nd phase are in progress.
Your Company won the consultancy assignment of a 30 MW Floating Solar Project in Mauritius through International Competitive Bidding (ICB) in February 2024. The assignment includes the Feasibility Report preparation and Conceptual Design Report for 30 MW Floating Solar PV at Tamarind Falls Reservoir and a Grid Integration study of a Floating Solar, Wind and Battery Storage System.
• Kuwait: Your Company (in Consortium with Local Party) has emerged LI during the financial bid opening of the Ministry of Electricity, Water and Renewable Energys (MEWRE) tender for comprehensive maintenance of Sabiya Stage-1 CCGT, Kuwait. The proposal is currently under evaluation with Central Agency for Public Tenders (CAPT), Kuwait.
• Jordon/Togo: Your Company has provided O&M audit services to AMEA Power for 66 MWp Solar PV plant in Jordan and 50 MWp Solar PV in Togo. The assignments have been successfully completed.
• Oman: Your Company has provided Pre-bid engineering support services in Oman for ASaffa Poultrys 7 MW Solar Project and Solar Wadis 86 MW Solar Project. The assignment has been successfully completed.
• Nepal: Your Company has been awarded three contracts for vetting of Detailed Project Reports (DPR) of transmission line and substation projects through Exim Banks GOI supported Line of Credit (GOI-LOC) of USD 750 Mn. to the Government of Nepal in July 2023 and the findings on the DPRs has been submitted to EXIM Bank.
d. International MOU
Your Company has signed two MOUs:
• MOU with ESB-lreland in November 2023 to promote clean energy technologies by way of promoting R&D and innovation.
• MOU with Nepal Electricity Authority (NEA), Nepal in January 2024 for the co-operation in the renewable power projects including Hydro power plants and capacity building initiatives.
e. Training and Capability Building Programs
Your Company is actively engaged with stakeholders across the globe to run capability building programs for the power sector officials. Such training programs are strategic in nature as these shall not only create increased outreach and goodwill for your Company but also may generate various business prospects through people-to- people networking.
Your Company has provided training to over 250 power sector professionals from various countries (including Myanmar, Cambodia, Maldives, Sri Lanka, Costa Rica, Mongolia, Mauritius, Guyana, Peru, Vietnam, Kenya, Nigeria, Kyrgyzstan etc.) under the aegis of Indian Technical and Economic Cooperation Program (ITEC), Ministry of External Affairs, GOI.
In February 2024, Your Company has secured assignment for the Capacity Building Program on Combined Cycle Power Plant (CCPP) for the power sector professionals of the Nigerian National Petroleum Corporation Limited (NNPCL). Training of the 1st batch has been successfully completed in April 2024.
In February 2024, Your Company has been awarded the contract against RFP for "Hiring of Agency for Delivering in-person training in Bangladesh", by the International Solar Alliance (ISA). The assignment consists of delivering four training programs on topics including "Small-scale Solar Rooftop systems" and "Mini grids".
f. Other Initiatives
Your Company is also exploring investment opportunities in the Renewable Energy and consultancy opportunities in the areas of PMC, O&M services, R&M of power plants, capability building, etc. in the regions such as the Middle East, Southeast Asia, CIS regions, Latin America, and Africa.
6. Efficiency improvement
Your Company has laid major stress on the efficient utilization of resources and the use of technological advancements for improving energy efficiency. Till March 2024, your Company along with its JVs, including foreign and Subsidiaries, has implemented 24640 MW capacity based on Super Critical technology. Your Company has commissioned two of the countrys most efficient power plants based on the Ultra-SuperCritical (USC) technology at Khargone (2x660MW) and Telangana (2x800 MW).
Your Company aims to enhance the overall efficiency of its coal plants, thereby achieving a substantial reduction in CO2 emissions. Adoption of USC parameters shall result in substantial reduction of CO2 emission when compared to conventional subcritical power plants for every unit of electricity generated.
7. Consultancy
NTPCs wealth of knowledge, experience, expertise, and brand image in the entire value chain of power generation business positions us as the preferred Consultant for providing consultancy services in power generation and related areas. NTPC Consultancy offers comprehensive services in conventional and renewable power generation, providing value-added solutions tailored to the specific needs of its clients within the power sector and beyond.
NTPC Consultancy provides a range of offerings, including:
• Owners Engineer Services: NTPC Offers concept to commissioning services through Owners Engineer Assignment in conventional as well as renewable energy systems, encompassing:
Prefeasibility, feasibility studies, Pre-award services including Bid process management and post award engineering services including inspection.
Project Management, Site Supervision, assistance in commissioning and PG Test
• Quality Assurance & Inspection Services: NTPCs stringent Quality Management System, Vendor assessment process, inspection offices all over India and capability to undertake inspections abroad with experienced professionals help client to achieve high quality standards.
• Operation & Maintenance of Power Plants: NTPC offers a bouquet of O&M services including:
O&M advisory services of power plants including comprehensive O&M services and O&M management services like Technical Audits, Performance Improvement Services, O&M Management System, Efficiency Management etc.
Environmental Audits
Renovation & Modernization - NTPC offers solutions for R&M of old plants for enhancement of performance and life cycle from its extensive experience in system restoration, efficiency improvement and R&M of old thermal power projects.
Technical Due Diligence - NTPC supports lenders in management of stressed assets through technical due diligence.
• Implementation of New Environment norms: NTPC also provides Owners Engineer Consultancy service from Concept to commissioning for Flue Gas Desulphurization (FGD) systems, and SPM control and reduction in water consumption.
• Renewable Energy Transition: Recognizing the imperative to transition towards renewable energy sources, we actively support clients in their journey towards sustainable power generation. Through Owners Engineer Services, we facilitate the development and commissioning of renewable energy projects, including wind and solar power plants, pump storage hydro projects etc. Our efforts in this domain contribute to reducing reliance on fossil fuels and promoting a greener energy mix.
• IT and HR Services: NTPC offers IT services including some of its flagship home-grown products such as DREAMS (Drawing Review and Management System), CLIMS (Contract Labour Management Information System), Implementation of ERP, Plant Information (PI) System etc. NTPC conducts Organizational restructuring studies, policy framing and system formation.
• Distribution: NTPC has been appointed as Project Implementing Agency (PIA) for implementation of loss reduction works under GOI Revamped Reforms- Based and Results-linked, Distribution Sector Scheme (RDSS scheme) in 9 districts of UT of J&K.
THREATS/CHALLENGES/CONCERNS
1. RE Capacity Growth
The following factors will increase the input cost leading to challenges for the fast-paced growth of RE Capacity:
a. Supply Chain Disruptions: Renewable power projects rely on a complex supply chain for equipment, materials, and components necessary for renewable energy projects. Disruptions in the supply chain, whether due to geopolitical tensions, trade disputes, or natural disasters or force majeure conditions could lead to delays in project execution and cost overruns.
b. Infrastructure Constraints: Developing renewable energy infrastructure, such as offshore wind farms and energy storage facilities, requires substantial investment in land, transmission lines, and grid integration. Challenges related to land acquisition, regulatory approvals, and grid reliability can delay project timelines and increase costs heavily.
c. Technology Adoption: Adopting solar, wind and green hydrogen production requires significant technological expertise and investment. Organizations may face challenges in adopting and scaling up these technologies efficiently, especially if there are delays or setbacks in research and development or if the technologies prove to be economically unviable in the long run due to rapid technological advancements in the field.
d. Environmental and Social Concerns: The development of renewable energy projects, particularly large-scale installations like Solar projects and wind farms, may face opposition from local communities, environmental groups, and indigenous people due to concerns about land use, biodiversity conservation, and cultural heritage.
e. Green Hydrogen growth: Cost of green hydrogen is a major impediment for growth in India or elsewhere. Cost of renewable energy amounts to nearly 60-70% cost of green hydrogen and chemicals resulting into at least twice the cost of traditional green chemicals. It is expected that in coming decades cost of green hydrogen shall come down with sizable scale of domestic Electrolyser production and RE component manufacturing based in India. Till such time green hydrogen production is likely to be dormant.
f. Policy and Regulatory Uncertainty: Changes in policies, regulations, and incentives can create uncertainty for investors and project developers. Delays in project approvals can add on to the business risk and hinder the growth of the renewable energy sector.
Efforts are made to obtain all statutory clearances and ensure land availability before the commencement of the projects. Timely tie up for power evacuation and expediting the installation of associated transmission system is helping in mitigating the grid capacity constraints. Further, GOI has planned the enhancement of the transmission capacity to meet 500 GW renewable capacity by 2030.
2. Flexible operation of Thermal Units
To integrate variable RE into the grid, coal-based power plants must regulate their generation to maintain grid balance. Therefore, the influx of more RE power in the grid would require many coal-based plants to operate at technical minimum capacity, frequent load fluctuations, and two-shift operations. This will result in lower efficiency at partial load, leading to a higher cost of generation. Other factors like the cost of balancing services, and reduced life due to flexible operation of the thermal plant would also adversely affect the cost of generation. Most of the NTPC plants have achieved the ramping rate required for flexible operation and policy advocacy for compensating the additional cost and incentivising the flexible operation is also being taken up at various levels.
3. Environmental Concerns
As per new environment norms, all plants must achieve 100% ash utilization within a compliance period of 3 to 5 Years based on their level of Ash utilization during FY22. Various initiatives have been undertaken for the development of new products and processes such as use of Bottom Ash in place of Sand and because of novel technologies & products such as Nano Concrete Aggregate (NACA), precast elements, paver blocks etc. using NACA has been successfully developed and implemented.
4. Non-availability of Gas
GOI has accorded higher priority for allocation of domestic gas to CGD (City Gas Distribution) sector. Due to the diversion of allocated gas to the CGD sector as per MOP&NG guidelines, allocated domestic gas (APM/ Non-APM) supplies to your Company became Nil w.e.f. 16 June 2021. Further, due to high reserve prices and onerous terms & conditions, the Power sector is not able to tie up new domestic gas from the KG basin. Gas stations are dependent upon costlier RLNG for declaring capacity/generation, however, the generation schedule on RLNG is not available on a sustained basis.
OUTLOOK FOR THE COMPANY Strategic focus of the Company
As India is expected to grow at a fast pace in the Amrit kaal, your Companys priority is to support this pace of economic development by providing accessible, affordable, and reliable power to the consumers. The demand for power registered a growth of 7% in FY24 due to the post pandemic economic recovery and an abnormally hot summer. Under these testing circumstances your Company has not only catered to this surge in demand, but also did it more efficiently. This is reflected in the generation touching 422 BUs for the first time and average PLF of your Companys coal stations reaching 77.25%, way higher than the country average of 69.49%. In terms of market share, your Company supplied more than 24% of the Countrys power demand while having around 17% of installed capacity thus maintaining its leadership position in power generation. This has been made possible with a diversified portfolio and an integrated supply chain from coal mining to power trading.
The stature of your Company is well depicted by its worldwide rankings such as 1st Independent Power Producer (IPP) in the PLATTS IPP and Energy Trader Ranking (2022), 14th in Fortune India 500 companies (2023) and 10th largest among Indian companies (Global rank-372) in Forbes Global 2000 companies (2024).
The focus of your Company is to fulfil the ever-increasing power requirements of the country, critical for meeting the growth aspirations. While doing this, it is of cardinal importance to be a major contributor in the energy transition fostering the achievement of net zero milestone.
In this regard, your Company has an ambitious plan to reach a total installed capacity of 130 GW+ by 2032. In Renewable space, the target is to achieve 60 GW by 2032. Capacity addition is planned through Ultra Mega Renewable Energy Power Projects (UMREPPs), collaborating with other companies, partnering with State Governments and through competitive bids. To focus on RE business, your Company has consolidated its RE portfolio under its wholly owned subsidiary NTPC Green Energy Limited (NGEL).
To ensure the optimal utilization of the vast renewable capacity planned, energy storage solutions will be of vital importance. In this regard, it is planned to develop substantial storage capacity. GOI has indicated power CPSEs for development of Pump storage projects across the country. Under this Pump Storage Projects totalling to 11.5 GW have been indicated for your Company, we are taking up with State Governments for implementing these. NTECL, your Companys JV with TANGEDCO has been allotted Upper Bhavani Pumped Storage Project (4X250 MW) in Nilgiri District of Tamilnadu by Government of Tamilnadu.
Considering the high level of variable Renewable electricity infusion, it is important to provide Base load support to the grid, to ensure grid stability. For this purpose, a thermal capacity of around 10 GW through brown field projects is also under construction.
Further, for its maiden foray into nuclear power, your Company is collaborating with Nuclear Power Corporation of India (NPCIL). NTPC has signed a Supplementary Joint Venture Agreement (SJVA) with NPCIL for development of Nuclear Power Projects. Initially it is planned to develop one project with capacity of 2.8 GW. This will also help the country in meeting the net zero emission target by 2070.
It is also planned to foray into the Hydrogen ecosystem for production of Green Chemicals and fuels (Methanol & Ammonia) supported by research & development and collaboration with OEM/OES, research institutes, etc.
To expand its RE-C&I (Commercial and Industrial) portfolio, your Company has also entered into agreements with various companies for supply of RE-RTC (Round the Clock) power.
Further, your Company envisages enhancing its current presence in consultancy services, power trading, and ancillary services and has targeted a 25% market share in ancillary services and storage by 2032 under its long-term plan.
Fuel security is of critical importance for the thermal portfolio; therefore, your Companys focus is on increasing the captive coal production through NTPC Mining Limited (NML). Efforts are being made for acquisition of new coal & other mineral blocks through participation in auctioning of coal blocks by Ministry of Coal (MOC)/other mineral blocks by Ministry of Mines or by Individual State Governments.
Your Company has embraced digitalization as a fundamental component of its strategy. By extensively implementing digital tools and technologies, we enhance operational efficiency and optimize resource utilization. This approach enables us to achieve our commitment to high productivity while supporting sustainable growth and resource conservation.
Power and carbon credit trading scheme has the potential to fundamentally affect all the sectors of the economy and can play a substantial role in Indias efforts to mitigate climate change. As the government is putting enabling policies and regulations in place, your Company is gearing up to be a major player in this domain. In power trading, NVVN, a wholly owned subsidiary of yourCompany traded more than 35 BUs in FY24.
Growth Outlook
Your Company is looking for opportunities to expand and diversify its business in new areas both domestically and globally by working in close coordination with the Indian and global energy community. Some of the key growth opportunities identified by your Company are discussed below.
Renewable Energy 1. Solar and wind power
As on 31 March 2024, your Company has a group commissioned RE capacity of 3.5 GW. NTPC is already having the largest portfolio of floating solar projects of 262 MW. The expertise and the experience gained is being deployed for executing number of floating solar projects in the country. UMREPP at Gujarat (4.8 GW), DVC (0.7 GW), and Madhya Pradesh (0.6 GW) are being developed by NTPC. These parks shall attain full capacity within next three years. A number of MOUs have been signed with various state governments to undertake more UMREPPs, totalling to over 50 GW capacity. Under NSM, 5.25 GW of RE projects have been commissioned and 3.3 GW of RE projects are under implementation as of March 2024. MNRE has accorded approval to NTPC to act as a renewable energy implementing agency (REIA) and issue tenders for setting up renewable power projects (wind and solar) under developer mode. In FY24 RE capacity of 15 GW, comprising vanilla solar and wind, hybrid and FDRE (Firm and Dispatchable Renewable Energy) have been tendered out.
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2. Green Hydrogen
Green Hydrogen Blending Project at Kawas: Operational since last 15 months, this pilot has succeeded in blending 8%v/vgreen hydrogen in November 2023 after satisfying all regulatory approvals. With this NTPCs engineering and project management capabilities are amply demonstrated.
Mobility Project at Leh and Greater Noida: Two green mobility projects one at Leh and another at Greater Noida are at advanced stage of execution. The project at Leh is aimed at finding the techno-economic feasibility of Hydrogen buses for short haul (less than 200 km), while in project at Greater Noida long haul operation (more than 600 km) is being tried out.
Future Hydrogen Technologies: Green Hydrogen based microgrid project of 200 kW RE-RTC and locomotive(s) are at the advanced stage of planning which are to be put into regular use by FY26. Two Green Hydrogen based microgrid projects of 25 kW each based on AEM and PEM have been commissioned which shall be used for research studies.
3. Offshore Wind
With the GOIs notification of Offshore Wind Lease Rules (2023), developers are allowed to lease areas between 25 and 500 square km for offshore wind projects. This opens a potential field for NTPC and other renewable energy developers in India. NTPC is pursuing collaborations with global partners to leverage expertise and experience in developing offshore wind energy projects. Your Company is actively participating in all relevant tenders for offshore wind projects.
4. Energy Storage
NTPC is actively pursuing different forms of energy storage, e.g., Pumped Hydro, BESS (Battery Energy Storage System) and Thermal energy storage. In addition to previously mentioned technologies, usage of Hydrogen as storage solution is being explored. As a first,
NTPC REL is executing a 500-kW solar based off-grid power generation system coupled with 250kW/1200kWh BESS system, to provide construction power for under execution solar project in Khavda region, avoiding DG sets. NTPC REL has already issued tenders for 4 GW/24 GWh capacity energy storage solutions.
Diversification and New Business Area Initiatives
Your Company is exploring new business opportunities in different areas as summarised below:
1. Nuclear Energy
Joint venture for development of nuclear power projects: NTPC has signed a Supplementary Joint Venture Agreement (SJVA-1) with Nuclear Power Corporation of India Ltd. (NPCIL) for development of Nuclear Power Projects. Initially, one project has been identified for transfer from NPCIL to the JV Company, ASHVINI (Anu Shakti Vidyut Nigam Limited), i.e., Mahi Banswara Rajasthan Atomic Power Project (MBRAPP 4X700 MW).
Development of SMR (Small Modular Reactor): SMR is reactor with power output from lOMWe to 300MWe with passive cooling and walkaway safe feature. This can be utilized for generation of clean Hydrogen, Industrial heating, desalination, repurposing of coal plant etc. NTPC is under discussion with BARC for development of indigenous SMR technology.
Fuel security: For reliable generation from nuclear power plants, uninterrupted nuclear fuel supply needs to be ensured. Given the magnitude of future power generation projections, indigenous sources of fuel supply may not be sufficient. NTPC is in discussion with UCIL (Uranium Corporation of India Ltd.) on due diligence for acquisition of overseas Uranium assets.
Capability development: In association with NPCIL design team, your Company is building inhouse capacity in nuclear technology, for this we have tied up with BARC for one-year OCES (Orientation Course in Engineering graduates and Science Post-Graduates) course for its executives.
2. Hydrogen Hub at Pudimadaka
Your Company has conceptualised setting up of a Green Hydrogen Hub at Pudimadaka near Vishakhapatnam. Spread over 1200 acres, the Project shall involve establishment of manufacturing facilities for Hydrogen related equipments, production & export of Green Hydrogen. When fully developed it shall consume 5 GW of RE power while exporting about 2 MMTPA of green ammonia and green methanol. It is well connected to major transportation hubs covering road, rail and sea. Many international potential off-takers have shown interest in setting up production units.
A detailed proposal was submitted to Andhra Pradesh Government for development of this Hydrogen Hub at Pudimadaka. The State Investment Promotion Board (SIPB) and State Cabinet has cleared NTPCs proposal and Government Order received in February 2023. NTPCs green arm NGEL has been identified for setting up the proposed Green Hydrogen Hub at Pudimadaka. Accordingly, NGEL has executed the Pudimadaka land lease deed in February 2024 with Andhra Pradesh Industrial Infrastructure Corporation (APIIC).
3. Bamboo-based Bio-Refinery at Bongaigaon
Your Company is currently pursuing a techno-economic Feasibility Studies through consultant M/s EILto setup a Bamboo based 2G Bio-Refinery project at Bongaigaon Thermal Power Station. Through this project, NTPC aims to extract valuable bio-chemicals from naturally available bamboo in the region and use the by-product i.e., Bio coal as a fuel for blending with coal to fire in Bongaigaon power plant. Based on EILs global EOI findings, MOU with technology licenser M/s Chempolis, was signed for exploring setting up an integrated bamboo based biorefinery at NTPC Bongaigaon project. The draft DPR is under discussion.
4. Commercial operation of Desalinated Distillate/Mineral Water generated at NTPC Simhadri
NETRA had developed the "FLASH DESALINATION TECHNOLOGY (FDT)" for production of Quality water (desalinate/ distilled) from sea / brackish water utilizing the heat from flue gas of power plant. A facility for production of 120 ton per day of desalinated water using FDT technology was set up by NETRA at NTPC Simhadri. Subsequently, for commercial utilisation of desalinated water a MOA was signed with IRCTC for setting up RAIL NEER packaged drinking water bottling facility at NTPC Simhadri. RAIL NEER plant has been commissioned & declared commercially operative.
5. Collaboration with State Governments/CPSEs Uttar Pradesh
Your Company has signed following proposals for investments in UP Power Sector in February 2023 during UP Global Investors Summit:
• Expansion of MU NPL (a JV of NTPC & U PRVU NL) with Stage-ll units, subject to feasibility, statutory clearance, and equity infusion by Govt, of UP.
• Jointly setting up 2X800 MW supercritical Thermal Power plants at Obra and Anpara with UPRVUNL through the JV MUNPL.
Rajasthan
Your Company and Rajasthan Rajya Vidyut Utpadan Nigam Ltd signed an MOU in March 2024.
• The purpose of MOU is to explore capacity expansion opportunities and collaborate for performance improvement in existing units (4x250 + 2x660 MW) at Chhabra.
• The MOU also aims to explore the possibilities of annuity-based R&M of other units of RVUNL.
NALCO
Your Company and NALCO signed an MOU in February 2024. The purpose of MOU is to explore various options such as Thermal, Solar, Wind, Energy storage or any combination of same to supply round the clock uninterrupted power to cater the requirement of NALCO for expansion of its smelter plant capacity at Angul, Odisha.
FUEL SECURITY
To focus on the mining business, NTPC Mining Ltd. (NML), a wholly owned subsidiary, was formed. While Ministry of Coal (MOC) approved transfer of Pakri-Barwadih mine in December 2020, permission of transfer of other mines were accorded in March 2023. Following which Business Transfer Agreement was executed and Deed of Adherence (DOA) among NTPC, NML & MOC was signed in September 2023. Amended Allotment Agreement for all coal mines was received in January 2024. Asset transfer and clearances are ongoing.
With five operational mines namely, Pakri-Barwadih, Dulanga, Talaipalli, Chatti-Bariatu & Kerandari, coal production in FY24 stands at 34.39 MMT with a growth of 48% over previous year. Cumulative production reached 103.99 MMT in March 2024. Kerandari mine commenced production in January 2024. Additionally, development of the Badam mine is underway, with a Mine Developer cum Operator (MDO) appointed in December 2023. Similarly, development activities and process of obtaining statutory clearances are in progress for Banhardih mine, allocated to Patratu Vidyut Utapadan Nigam Ltd. (PVUNL), a Subsidiary of Your Company in joint venture with Government of Jharkhand. In addition, Amelia Mine owned by NTPCs subsidiary THDCIL produced 1.25 MMT of Coal taking the total captive production of the group to 35.64 MMT for FY24.
NML won its 1st commercial coal block of North-Dhadu (East), through competitive bidding in August 2023. Subsequently, Coal block development & production agreement (CBDPA) signed with MOC in September 2023. The vesting order has been received from MOC and site office has been opened in December 2023. Geological report submitted to the Ministry in April 2024. Efforts are being made for acquisition of new coal & other blocks through participation in auctioning of coal blocks by Ministry of Coal (MOC)/other mineral blocks by Ministry of Mines or by Individual State Governments.
REALISATION
Your Company has in place a robust payment security mechanism in the form of Letters of Credit (LC) backed by the Tri-Partite Agreement (TPA). Apart from the LCs, payment is secured by the Tri-Partite Agreements (TPAs) signed amongst the State Government(s), Government of India (GOI) and Reserve Bank of India (RBI). As per the TPA, any default in payment by the State owned Discoms can be recovered directly from the States account in RBI. The TPAs signed during 2000-01 were valid up to 31 October 2016. Subsequently these TPAs have been extended for a further period of 10 to 15 years. As of now, 29 out of total 31 States/ UTs have signed the TPAs extension documents. The signing of TPAs extension by remaining States is being taken up.
During FY24, your Company has realized 100% of its dues. The target set by the Government of India (GOI), for realization of dues for energy supply in FY24 has also been achieved. Most of the beneficiaries have made timely payments and availed the applicable rebates.
Power Trading in Power Exchange - Your Company has been participating, both in the Integrated Day Ahead Market (I- DAM) and Real time Market (RTM) for selling any URS power in the Power Exchange through its trading arm NVVN. Besides selling the URS power, it has also been selling any regulated power, merchant power, relinquished gas power, infirm power in the Power Exchanges. In FY24, record 3278 MUs of power has been sold in the various segment of power exchanges by NTPC. Corresponding gains for this sale have been shared with the beneficiaries as per the extant regulatory provisions.
Leveraging on Strengths for Delivering Better Future Performance
Your Company derives its competitive edge from its strengths and is confident of meeting future challenges.
Project Management
Your Company has adopted an integrated system for the planning, scheduling, monitoring and control of approved projects under implementation. To co-ordinate and synchronise all the support functions of project management, Company relies on a three-tiered project management system known as the Integrated Project Management Control System (IPMCS), which integrates its engineering management, contract management and construction management control centres. The IPMCS addresses all stages of project implementation, from concept to commissioning.
Your Company has established state-of-the-art IT enabled Project Monitoring Centre (PMC) for facilitating fast track project implementation. PMC has advanced features like Project Review and Internal Monitoring System (PRIMS), etc. PMC facilitates monitoring of key project milestones and also acts as decision support system for the management.
PMC is an integrated enterprise-wide collaborative system to facilitate consolidation of project related issues and their resolution. Features like real time video capture, storage and retrieval facility and video conference facility are extensively utilized for project tracking, issue resolutions and management interventions. PMC has helped in providing effective coordination between the agencies and has provided enhanced/ efficient monitoring of the projects leading to a better and faster project implementation.
In addition to above, in order to make monitoring of projects more effective, your Company is now adopting Integrated Software monitoring tool for integrating progress of Engineering, Supplies and Erection at one place, and capturing progress online. Features like mobile app based updation of progress and role-based access make the tool more user-friendly which will result into regular updation of progress. It will help in taking timely remedial actions. This tool has been included in the bid documents of EPC packages of upcoming projects of NTPC and included in recently awarded projects.
In a changing global scenario, your Company has added various other project management tools which are Online CAPEX monitoring system/ Digital Hindrance register/ Digital Chronology register/lssue Monitoring System etc.
Operational Efficiency
The operating performance of your Company has been consistently above the national average. Over the years, your Company has consistently operated at much higher operating efficiency as compared to All India operating performance.
In order to achieve cost-competitive, environment friendly, efficient & reliable power generation, your Company has adopted following strategies:
• To improve reliability of the units and to reduce the forced outages, close monitoring of start-ups & shutdowns and root cause analysis of all the outages is carried out and an action plan is generated to mitigate the outages.
• Continuous real time monitoring of critical parameter deviations (both reliability & efficiency related) and implementation of action plan to mitigate the deviations.
• Optimizing planned outage period through implementation of Overhaul Preparedness Index (OPI), ensuring all quality checks and time bound monitoring of each activity.
• Improvement in Heat Rate & Auxiliary Power Consumption achieved by parametric optimization, specially at part loads by operation of units in sliding pressure mode & optimizing excess air.
• To minimize efficiency losses in stations, Plant Information (PI) system-based applications for real time efficiency & loss calculations.
• Structured & regular energy audits to identify potential areas of improvement in APC reduction and Implementation of action plans.
• To reduce cost of generation steps have been taken to reduce Energy Charge Rate (ECR) by swapping of coal supplies and optimizing operations.
• Use of a Comprehensive Performance Evaluation Matrix (PEM) for relative evaluation of the performance of various power plants to create an environment of in- house challenge and competition. The parameters are reviewed annually to include new parameters commensurate with market dynamics and developments in power sector.
• Adopting advanced technologies in new units e.g., commissioning of super critical units, which improves system efficiency & reduces carbon footprint and retrofits of DeNOx & DeSOx technologies in older units.
• Renovation & modernization for reduction of greenhouse gas emissions, effective modernized control systems for environment friendly economic generation and particulate emission control.
• Water conservation measures like increasing the Cycle of Concentration (CoC) of circulating water and ash water recirculation, implementation of zero effluent discharge, high concentration ash-slurry discharge, dry evacuation of ash, and Air-Cooled Condensers (ACC) etc.
• Strict compliance of Grid Code, ancillary services for ensuring grid stability.
Human Resources
Your Company has a highly talented team of committed professionals and has been able to induct, develop and retain the best talent. Your Company has a very low executive attrition rate. Your Company is deeply passionate about ensuring the holistic development of all its employees as distinct individuals and good citizens. Competence building, Commitment building, Culture building, and Systems building are the four pillars on which HR Systems of your Company are based. Your Company has been conferred with various HR Awards over the years by reputed institutions and consistently features among the "Great Places to Work for". The commitment of the employees is also reflected in consistent improvement of financial parameters such as sales per employee, value added per employee etc.
Sound Corporate Governance
Your Companys corporate governance practices have been recognised and awarded at several forums. Your Company believes in following the highest standards of transparency, integrity and accountability. It enjoys the confidence of all stakeholders alike. Your Company not only believes in adopting best practices but also includes public interest in its corporate priorities and has developed extensive social outreach programmes. NTPCs consistent commitment to high standards of corporate governance is recognized by the Gold Award for its Annual Report at the "Corporate Governance Disclosures Competition 2022," organized by the South Asian Federation of Accountants (SAFA).
Robust Financials and Systems
Your Company has strong financial systems in place. It believes in prudent management of its financial resources and strives to reduce the cost of capital. Your Company enjoys highest credit-rating assigned by CRISIL, ICRA, CARE and India Ratings. The foreign ratings by Fitch, S&P & Moodys are at par with sovereign ratings. It has robust financials leading to strong cash flows which are being progressively deployed in generating assets. Your Company has a strong balance-sheet coupled with low gearing and healthy coverage ratios. As a result, your Company has been able to raise resources for its capital expansion projects at very competitive interest rates in domestic as well international markets.
Internal Control
To ensure regulatory and statutory compliances as well to provide highest level of corporate governance, your Company has robust internal systems and processes in place for smooth and efficient conduct of business and complies with relevant laws and regulations. A comprehensive delegation of powers exists for smooth decision making which is periodically reviewed to align it with changing business environment and for speedier decision making. Elaborate guidelines for preparation of accounts are followed consistently for uniform compliance. To ensure that all checks and balances are in place and all internal control systems are in order, regular and exhaustive internal audits are conducted by experienced firms of Chartered Accountants in close co-ordination with the Companys own Internal Audit Department. Besides, your Company has two committees of the Board viz. Audit Committee and Committee on Management Controls to keep a close watch on compliance with Internal Control Systems.
A well-defined internal control framework has been developed identifying key controls. The supervision of operational efficiency of designed key controls is done by Internal Audit. The framework provides an elaborate system of checks and balances based on self-assessment as well as audit of controls conducted by Internal Audit at the process level. Gap tracking report for operating efficiency of controls is reviewed by the management regularly and action is taken to further strengthen the Internal Control System by further standardizing systems & procedures and implementing process changes, wherever required, keeping in view the dynamic environment in which the Company is operating.
The Internal Control Framework system presents a written assessment of effectiveness of Companys internal control over financial reporting by the process owners to facilitate certification by CEO and CFO and enhances reliability of assertion.
Depicting strong Internal Control, your Companys Internal Audit department was honoured with the "Internal Auditor of the Year" award at the 5th Audit and Risk Summit & Awards (UBS Forums).
FINANCIAL DISCUSSION AND ANALYSIS
A detailed discussion and analysis on financial statements is furnished below. Reference to Note(s) in the following paragraphs refers to the Notes to the standalone financial statements for the financial year 2023-24 placed elsewhere in this Annual Report.
A. Financial position
The items of the Balance Sheet are as discussed under:
1. Property, plant & equipment (PPE), Capital work-in- progress, Investment property, Intangible assets and Intangible assets under development (Note-2 to Note- 6)
The PPE, Capital work-in-progress, Investment property, Intangible assets and Intangible assets under development of the Company are detailed as under:
Rs. Crore
| Particulars | As at March 31 | % Change | |
| 2024 | 2023 | ||
| Gross block of PPE (Note-2) | 2,98,418.18 | 2,69,166.05 | 11% |
| Net block of PPE (Note-2) | 2,11,323.43 | 1,96,441.71 | 8% |
| Capital work-in- progress (Note-3) | 47,153.81 | 61,743.88 | (24)% |
| Investment property (Note-4) | 859.90 | 465.18 | 85% |
| Net block of Intangible assets (Note-5) | 427.69 | 454.17 | (6)% |
| Intangible assets under development (Note-6) | 3.19 | 44.92 | (93)% |
During the year, total gross block of PPE has increased by 11% while capital work-in-progress has decreased by 24% mainly due to addition of new commercial capacity.
2. Non-current financial assets (Note-7 to Note-11)
(a) Equity investments in subsidiaries and joint ventures (Note-7)
The break-up of equity investments in subsidiaries and joint ventures is as follows:
Rs. Crore
| Particulars | As at March 31 | |
| 2024 | 2023 | |
| Subsidiaries | 22,177.16 | 19,661.63 |
| Joint ventures | 10,228.79 | 9,427.04 |
| Total | 32,405.95 | 29,088.67 |
During the year, equity investments in subsidiaries and joint ventures increased by 11%. The increase/ (decrease) is as under:
Rs. Crore
| Name of Company | Amount |
| NTPC Green Energy Limited | 1,000.00 |
| Patratu Vidyut Utpadan Nigam Ltd. | 526.93 |
| Energy Efficiency Services Ltd. | 383.00 |
| Hindustan Urvarak and Rasayan Ltd. | 347.04 |
| Bangladesh-lndia Friendship Power Co. Pvt. Ltd. | 162.00 |
| NTPC Mining Ltd. | 154.05 |
| Meja Urja Nigam Private Ltd. | 41.92 |
| NTPC Tamil Nadu Energy Company Ltd. | 30.00 |
| National High Power Test Laboratory Private Ltd. | 18.40 |
| Trincomalee Power Company Ltd. | 0.44 |
| Total investments during the year | 2,663.78 |
| Add: Provision for impairment made in earlier years written back during the year | |
| Ratnagiri Gas & Power Private Ltd. | 834.55 |
| Less: Provision for impairment made during the year | |
| Transformers and Electricals Kerala Ltd. | 25.87 |
| National High Power Test Laboratory Private Ltd. | 6.08 |
| Energy Efficiency Services Ltd. | 149.10 |
| Net increase in investments | 3,317.28 |
(b) Other Non-current financial assets (Note-8 to Note-11)
Other Non-current financial assets mainly comprise of investment in equity and debt instruments, loans to related parties, employees & others, share application money, claims recoverable, finance lease receivables and mine closure deposit.
Rs. Crore
| Particulars | As at March 31 | % Change | |
| 2024 | 2023 | ||
| Other investments (Note-8) | 701.98 | 631.08 | 11.23% |
| Loans (Note-9) | 800.66 | 1,233.47 | (35.09)% |
| Trade receivables (Note-10) | 1,168.10 | 2,399.78 | (51.32)% |
| Other financial assets (Note-11) | 627.98 | 922.93 | (31.96)% |
| Total | 3,298.72 | 5,187.26 | (36.41)% |
Other investments mainly comprise of investment in equity instruments of PTC India Ltd. and debt instruments of Jhabua Power Limited.
Outstanding dues of the beneficiaries have been rescheduled up to a maximum period of 48 months in the manner prescribed in the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 and accordingly presented at their fair value under Non-current Trade Receivables.
Other financial assets include share application money pending allotment in subsidiaries and joint ventures, claims recoverable, finance lease receivables and mine closure deposit.
Rs. Crore
| Other financial assets (Note-11) | As at March 31 | % Change | |
| 2024 | 2023 | ||
| Share application money pending allotment | 137.93 | (100)% | |
| Claims recoverable | 485.07 | 517.28 | (6)% |
| Finance lease receivables | 201.56 | (100)% | |
| Mine closure deposit | 142.91 | 66.16 | 116% |
| Total | 627.98 | 922.93 | (32)% |
Claims recoverable includes amounts outstanding as recoverable from GOI of RS. 483.37 crore (31 March 2023: RS. 517.28 crore), the cost incurred in respect of Loharinag-pala hydro power project, the construction of which has been discontinued on the advice of the Ministry of Power (MOP), GOI and it is expected that the same will be compensated in full by the GOI.
The Company had ascertained that the Power Purchase
Agreement (PPA) entered into for Stage-1 of Tanda thermal power station with the beneficiary falls under the definition of finance lease. The PPA is expiring in the next financial year and accordingly the balance lease recoverable has been included under Current assets - Other financial assets (Note- 19).
3. Other non-current assets (Note-12)
The changes in other non-current assets during the year are as follows:
Rs. Crore
| Other non- current assets | As at March 31 | % Change | |
| 2024 | 2023 | ||
| Capital advances | 6,089.11 | 6,026.69 | 1% |
| Security deposits | 303.05 | 306.87 | (1)96 |
| Advances to contractors and suppliers (other than capital advances) | 1,666.51 | 1,810.82 | (8)96 |
| Advance tax and tax deducted at source (net of provision for tax) | 2,194.06 | 2,476.02 | (11)% |
| Deferred foreign currency fluctuation asset | 1,486.57 | 1,565.41 | (5)96 |
| Others | 199.40 | 167.83 | 19% |
| Total | 11,938.70 | 12,353.64 | (3)96 |
4. Current assets (Note-13 to Note-20)
The changes in the current assets during the year are as follows:
T Crore
| Particulars | As at March 31 | % | |
| Current assets | 2024 | 2023 | Change |
| Inventories (Note-13) | 17,369.83 | 13,679.75 | 27% |
| Investments (Note-14) | 50.00 | 50.00 | - |
| Trade receivables (Note-15) | 27,347.52 | 26,028.64 | 5% |
| Cash and cash equivalents (Note-16) | 197.16 | 3.13 | 6,199% |
| Bank balances other than cash and cash equivalents (Note-17) | 4,403.34 | 3,738.60 | 18% |
| Loans (Note-18) | 415.85 | 312.45 | 33% |
| Other financial assets (Note-19) | 11,664.94 | 11,273.81 | 3% |
| Other current assets (Note-20) | 10,907.50 | 10,726.15 | 2% |
| Total current assets | 72,356.14 | 65,812.53 | 10% |
(a) Inventories (Note-13)
Inventories mainly comprise of coal and stores & spares, which are maintained for operating stations. Value of coal inventory has increased from RS. 5,064.63 crore as at 31 March 2023 to RS. 7,560.67 crore as at 31 March 2024. Further, stores and spares inventory has increased from RS. 6,231.13 crore as at previous year end to RS. 7,148.84 crore, mainly on account of addition of new commercial capacity.
(b) Investments (Note-14)
Current investments comprise of current maturities of debt instruments held in Jhabua Power Limited.
(c) Trade receivables (Note-15)
As on 31 March 2024, current trade receivables amounted to RS. 27,347.52 crore (including doubtful debts which have been provided for) and the corresponding trade receivables as on 31 March 2023 were RS. 26,028.64 crore. Trade receivables include unbilled revenue for the month of March amounting to RS. 13,326.46 crore (31 March 2023: Til,176.95 crore) billed, net of advance, to the beneficiaries after 31 March. Based on arrangements between Company, banks and beneficiaries, the bills of the beneficiaries have been discounted. Trade receivables include bills discounted amounting to Tl,824.71 crore (31 March 2023: Tl,287.19 crore) pursuant to opinion of EAC of ICAI. Trade receivables for previous period has also been restated. Non-current trade receivables amounted to Tl,168.10 crore as on 31 March 2024 (31 March 2023: RS. 2,399.78 crore).
Excluding the unbilled revenue and bills discounted, trade receivables are equivalent to 31 days of sales as on 31 March 2024 in comparison to 36 days of sales as on 31 March 2023.
(d) Cash and cash equivalents (Note-16) & Bank balances other than cash and cash equivalents (Note-17)
Cash and cash equivalents & Bank balances other than cash and cash equivalents have increased from RS. 3,741.73 crore as at 31 March 2023 to RS. 4,600.50 crore as at 31 March 2024. The main reason for change is increase in deposits representing unutilized amount of External Commercial Borrowings from RS. 145.64 crore as at 31 March 2023 to RS. 832.76 crore as at 31 March 2024.
(e) Other financial assets (Note-19)
Other current financial assets have increased by RS. 391.13 crore. This is mainly due to net effect of increase in Contract assets by RS. 3,586.08 crore and decrease in advances (Unsecured) to related parties by RS. 3,174.38 crore, which mainly represented recoverable from NGEL consequent to transfer of RE assets in the previous year, settled during the year.
Contract Assets represent Companys right to consideration in exchange for goods and services that the Company has transferred / provided to customers when that right is conditioned on matters, other than passage of time, like receipt of income tax assessment orders, truing up orders from CERC etc. and are net of credits to be passed to customers.
(f) Other current assets (Note-20)
Other current assets comprise of security deposits, advances to related parties, employees, contractors and suppliers, claims recoverable etc.
Rs. Crore
| Particulars | As at March 31 | % Change 1 | |
| 2024 | 2023 | ||
| Security deposits (unsecured) | 1,863.76 | 2,322.88 | -20% |
| Advances | 4,804.97 | 4,426.26 | 9% |
| Claims recoverable | 4,030.67 | 3,852.26 | 5% |
| Others | 208.10 | 124.75 | 67% |
| Total | 10,907.50 | 10,726.15 | 2% |
Other current assets have increased mainly due to increase in Advances to contractors and suppliers by RS. 287.10 crore. Advances to contractors and suppliers mainly include payment made to coal companies amounting to Rs. 3,420.89 crore (31 March 2023: Rs. 3,143.51 crore) for supply of coal to various stations of the Company.
Claims recoverable includes claims against Railways amounting to Rs. 1,962.65 crore (31 March 2023: Rs. 2,023.76 crore) mainly towards diversion of coal rakes and claims amounting to Rs. 1,725.37 crore (31 March 2023: Rs. 1,615.66 crore) made against coal companies towards various issues such as credit notes to be received as per referee results for grade slippages, supply of stones, claims under settlement through AMRCD, surface transportation charges, etc.
5. Assets held for sale (Note-21)
Land, Building, Plant and equipment and Other assets which have been identified for disposal has been classified as Assets held for sale. These assets are expected to be disposed within the next twelve months. Assets held for sale has decreased from RS. 120.52 crore as at 31 March 2023 to RS. 117.19 crore as at 31 March 2024.
6. Regulatory deferral account debit/credit balances (Note-22 & Note-39)
Expense/income recognized in the Statement of Profit & Loss to the extent recoverable from or payable to the beneficiaries in subsequent periods as per CERC Tariff Regulations are recognized as Regulatory deferral account balances.
Regulatory deferral account balances are adjusted from the year in which the same become recoverable from or payable to the beneficiaries. The regulatory assets recognized in the books are as follows:
Rs. Crore
| Particulars | Regulatory deferral account debit/ credit balance |
| A. Opening balance as on 1 April 2023 | 11,961.97 |
| B. Additions during the year | 1,539.05 |
| C. Amount realized/recognised during the year | (164.67) |
| D. Regulatory deferral account balances recognized in the statement of profit and loss (B+C) | 1,374.38 |
| E. Adjustments during the year | (206.86) |
| F. Closing balance as on 31 March 2024 (A+D+E) | 13,129.49 |
Closing balance as at 31 March 2024 comprises of Regulatory deferral account debit balances of RS. 13,409.81 crore (Note-22) and Regulatory deferral account credit balances of RS. 280.32 crore (Note-39).
Refer Note-70 of financial statements for detailed disclosures.
7. Total equity (Note-23 & Note-24)
The total equity of the Company at the end of financial year 2023-24 increased to Tl,49,885.02 crore from Tl,38,889.88 crore in the previous year, an increase of 8%. Major reasons for the same are tabulated below:
Rs. Crore
| Particulars | Total Equity |
| Opening balance | 1,38,889.88 |
| Profit for the year | 18,079.39 |
| Other comprehensive income | 15.26 |
| Increase in Fly ash utilization reserve fund | 172.99 |
| Dividend paid during the year | (7,272.50) |
| Closing balance | 1,49,885.02 |
The President of India, acting through the Ministry of Power, holds 495,53,46,251 shares constituting 51.10% of total equity shares and balance 474,13,19,883 i.e., 48.90% equity shares are publicly held.
The increase in total equity resulted in book value per share rising to RS. 154.57 from RS. 143.23 as at the end of previous year.
8. Non-current and current liabilities (Note-25 to Note- 37)
a. Non-current financial liabilities-Borrowings (Note-25):
Details of non-current borrowings including current maturities are as under:
Rs. Crore
| Particulars | As at March 31 | |
| 2024 | 2023 | |
| Non-current financial liabilities-Borrowings (Note-25) | 1,46,159.07 | 1,56,315.69 |
| Current maturities of non- current borrowings included in current financial liabilities -Borrowings (Note-31) | 22,355.46 | 17,172.23 |
| Total borrowings | 1,68,514.53 | 1,73,487.92 |
Total non-current borrowings have decreased by 3% over the previous financial year. Debt amounting to Rs. 16,334.16 crore was raised during the financial year 2023-24. The amount raised through term loans, non-convertible debentures (NCDs) and foreign currency borrowings is used for capital expenditure, refinancing, recoupment of capital expenditure and other general corporate purposes.
Details in respect of proceeds and repayment of borrowings for the financial year 2023-24 are as under:
Rs. Crore
| Source (Principal Amount) | Debt raised | Repayment | Net |
| Rupee term loans | 7,705.00 | 8,316.37 | (611.37) |
| Domestic NCDs | 4,500.00 | 10,605.50 | (6,105.50) |
| Foreign borrowings | 4,129.16 | 1,126.97 | 3,002.19 |
| Total | 16,334.16 | 20,048.84 | (3,714.68) |
| FERV on foreign borrowings | (1,279.33) | ||
| Transaction costs | 20.62 | ||
| Total | (4,973.39) |
Rupee Term loans: Banks and domestic financial institutions continued to support the capex program of the Company by extending term loans for financing the on-going capacity expansion plans. During the financial year 2023-24, agreements for term loans of RS. 5,000 crore were entered into with various banks. An amount of Rs. 7,705 crore was drawn from domestic banks & financial institutions during the year and an amount of Rs. 8,316.37 crore was repaid during the year. The undrawn balance available under various sanctioned loans from domestic banks and financial institutions was Rs. 3,008.58 crore as at 31 March 2024.
Domestic bonds: During the financial year 2023-24, Company raised Rs. 4,500 crore through private placement of domestic bonds. Bonds amounting to Rs. 10,605.50 crore were redeemed during the year.
Foreign borrowings: During the financial year 2023-24, the Company has drawn Rs. 4,129.16 crore and repaid Rs. 1,126.97 crore of foreign currency borrowings. The undrawn balance available under foreign currency borrowings was Rs. 5,456.75 crore as at 31 March 2024.
The Company continues to enjoy highest credit ratings for its NCDs and borrowings from banks, while Companys International Ratings are at par with sovereign ratings as detailed hereunder:
| Credit Rating Agency | Rating | Remarks |
| Domestic | ||
| CRISIL | CRISIL AAA/Stable | Highest ratings |
| ICRA | [ICRA] AAA (Stable) | |
| CARE | CARE AAA; Stable | |
| INDIA Ratings | IND AAA/Stable | |
| International | ||
| S&P | BBB-/Stable | Equivalent to sovereign ratings |
| Fitch | BBB-/S table | |
| Moodys | Baa3/Stable |
The maturity profile of the principal amount of borrowings (excluding unamortized transaction costs and interest accrued) of the Company is as under:
Rs. Crore
| Particulars | Domestic Borrowings | Foreign Borrowings | Total |
| Up to 1 year | 13,250.26 | 9,105.20 | 22,355.46 |
| Beyond 1 and within 3 years | 27,315.59 | 13,181.64 | 40,497.23 |
| Beyond 3 and within 5 years | 20,482.61 | 14,260.62 | 34,743.23 |
| Beyond 5 and within 10 years | 48,185.79 | 9,428.66 | 57,614.45 |
| Beyond 10 years | 13,293.39 | 334.56 | 13,627.95 |
| Total | 1,22,527.64 | 46,310.68 | 1,68,838.32 |
b. Non-current financial liabilities - Lease liabilities (Note- 26) & Other financial liabilities (Note-27)
Lease liabilities have increased from RS. 815.44 crore as at 31 March 2023 to RS. 824.52 crore as at 31 March 2024. The lease liabilities are repayable in instalments as per the terms of the respective lease agreements, generally over a period of more than 1 year and up to 99 years.
Other financial liabilities primarily consist of liabilities for capital expenditure and Contractual obligations representing security deposit and retention money deducted from vendors at present value. Other financial liabilities have decreased from RS. 505.81 crore as at 31 March 2023 to RS. 465.60 crore as at 31 March 2024.
c. Non-current liabilities - Provisions (Note-28):
Non-current provisions consist of amounts provided towards employees benefits as per actuarial valuation, which are expected to be settled beyond a period of 12 months from the Balance Sheet date. Non-current provisions also consist of Mine closure obligations and Stripping activity adjustments. Non-current provisions as at 31 March 2024 were Rs. 1,898.03 crore as compared to Rs. 1,727.78 crore as at 31 March 2023.
d. Non-current liabilities - Deferred tax liabilities (net) (Note-29)
Deferred tax liabilities (net) have increased from Rs. 10,614.07 crore as at 31 March 2023 to Rs. 13,066.53 crore as at 31 March 2024. The increase in deferred tax liabilities (net) during the year is mainly due to capitalization of new units during the year.
e. Other non-current liabilities (Note-30)
Other non-current liabilities have increased from RS. 70.64 crore as at 31 March 2023 to RS. 83.27 crore as at 31 March 2024.
f. Current liabilities (Note-31 to Note-37)
The break-up of current liabilities is as under:
Rs. Crore
| Particulars | As at March 31 | % | |
| Current assets | 2024 | 2023 | Change |
| Borrowings (Note-31) | 39,059.55 | 29,969.15 | 30% |
| Lease liabilities (Note-32) | 162.87 | 170.79 | (5)% |
| Trade payables (Note-33) | 9,474.66 | 9,598.10 | (1)% |
| Other financial liabilities (Note-34) | 21,970.54 | 23,634.04 | (7)% |
| Other current liabilities (Note-35) | 1,260.33 | 1,212.97 | 4% |
| Provisions (Note-36) | 6,376.21 | 7,470.25 | (15)% |
| Current tax liabilities (net) (Note-37) | 62.97 | (100)% | |
| Total | 78,304.16 | 72,118.27 | 9% |
Borrowings (Note-31) comprise of short-term borrowings and current maturities of long-term borrowings. In order to finance the mismatches in the short-term fund requirement, short-term borrowings in the form of Bills discounting, commercial papers, short-term working capital loan from Banks and cash credit were resorted to by the Company. Short-term borrowings outstanding as on 31 March 2024 were Rs. 16,704.09 crore as against Rs. 12,796.92 crore as on 31 March 2023.
Current financial liabilities - Lease liabilities (Note-32) comprise of current maturities of lease liabilities. The same has decreased from RS. 170.79 crore as at 31 March 2023 to RS. 162.87 crore as at 31 March 2024.
Trade payables (Note-33) mainly comprise amount payable towards supply of goods & services etc. Trade payables have decreased by RS. 123.44 crore. Refer Note-54 of financial statements for restatement of trade payables.
Other current financial liabilities (Note-34) mainly comprise of interest accrued but not due on borrowings and payables towards capital expenditure. The details of other current financial liabilities are as under:
Rs. Crore
| Particulars | As at March 31 | |
| 2024 | 2023 | |
| Interest accrued but not due on borrowings | 2,449.72 | 2,523.78 |
| Payables for capital expenditure | 13,972.92 | 15,375.83 |
| Other payables - | 2,454.81 | 2,409.24 |
| Contractual obligations | ||
| Others | 3,093.09 | 3,325.19 |
| Total | 21,970.54 | 23,634.04 |
Other current financial liabilities have decreased mainly due to decrease in payables for capital expenditure by Rs. 1,402.91 crore.
Other current liabilities (Note-35) mainly consist of advances from customers & others and statutory dues. Other current liabilities have increased by RS. 47.36 crore.
Current liabilities - Provisions (Note-36) mainly comprises of provisions for employee benefits, obligations incidental to land acquisition, tariff adjustments, arbitration awards and others. During the year current liabilities-provisions have decreased by Tl,094.04 crore. The main reason for the same is decrease in provision for arbitration awards by RS. 625.32 crore and provision for obligations incidental to land acquisition by RS. 567.73 crore. However, same is offset to some extent by increase in the provision for employee benefits by RS. 122.12 crore.
Current tax liabilities (net) (Note-37) denotes the excess of current tax for the year over advance tax paid amounting to m\\ (31 March 2023: RS. 62.97 crore).
9. Deferred revenue (Note-38)
Deferred revenue consists of income from foreign currency fluctuation detailed as under:
Rs. Crore
| Deferred revenue on account of | As at March 31 | |
| 2024 | 2023 | |
| Income from foreign currency fluctuation | 2,328.01 | 2,616.87 |
Foreign exchange rate variation (FERV) on foreign currency loans and interest thereon is recoverable from/payable to the customers in line with the Tariff Regulations. Keeping in view the opinion of the EAC of ICAI, the Company is recognizing deferred foreign currency fluctuation asset by corresponding credit to deferred income from foreign currency fluctuation in respect of the FERV on foreign currency loans adjusted in the cost of property, plant and equipment, which is recoverable from the customers in future years as provided in accounting policy. This amount will be recognized as revenue corresponding to the depreciation charge in future years. The amount does not constitute a liability to be discharged in future periods and hence, it has been disclosed separately from equity and liabilities.
B. Results from operations
1. Total Income (Note-40 & Note-41)
Rs. Crore
| SI. No. | Particulars | 2023-24 | 2022-23 | % Change |
| Revenue | ||||
| 1 | Energy sales (including electricity duty) | 1,56,155.82 | 1,57,762.43 | (1.02)% |
| 2 | Sale of energy through trading | 3,990.52 | 3,753.48 | 6.32% |
| 3 | Consultancy & other services | 170.59 | 154.08 | 10.72% |
| 4 | Lease rentals on assets on operating lease | 19.58 | 19.58 | |
| 1,60,336.51 | 1,61,689.57 | (0.84)% | ||
| Other operating revenues | ||||
| 5 | Interest from beneficiaries | 1,512.58 | 1,609.33 | (6.01)% |
| 6 | Energy internally consumed | 77.90 | 92.04 | (15.36)% |
| 7 | Interest income on assets under finance lease | 23.81 | 32.53 | (26.81)% |
| 8 | Recognized from government grants | 4.00 | 94.88 | (95.78)% |
| 9 | Provision written back-others | 16.48 | 242.98 | (93.22)% |
| 10 | Income from Trading of ESCerts | 13.75 | 8.44 | 62.91% |
| 1,648.52 | 2,080.20 | (20.75)% | ||
| Revenue from operations | 1,61,985.03 | 1,63,769.77 | (1.09)% | |
| 11 | Other income | 3,722.24 | 3,954.64 | (5.88)% |
| Total income | 1,65,707.27 | 1,67,724.41 | (1.20)% |
The income of the Company comprises of income from energy sales, sale of energy through trading, consultancy and other services, operating lease rentals on assets, interest and surcharge received from the beneficiaries, interest earned on investments such as term deposits with banks, interest on loan to employees & subsidiary companies, interest on other investment in joint venture companies, interest income on non-current trade receivables and dividend from equity investments in subsidiary, joint venture and other companies. The total income for financial year 2023-24 is Tl,65,707.27 crore as against Tl,67,724.41 crore in the previous year registering a decrease of 1.20%. The main reasons for decrease in total income are decrease in the energy sales, decrease in interest from beneficiaries, interest income on non-current trade receivables and provisions written back- others.
The major revenue comes from energy sales. The tariff for computing energy sales is determined in terms of CERC Regulations as notified from time to time, which are briefly discussed below:
Tariff for computation of sale of energy
CERC vide notification dated 7 March 2019 notified the Tariff Regulations 2019, effective for the period 2019-24. Further, CERC vide notifications dated 25 August 2020 and 19 February 2021 notified the CERC (Terms and Conditions of Tariff) First Amendment Regulations, 2020 and Second Amendment Regulations, 2021, respectively.
Sales have been provisionally recognized based on principles enunciated in Tariff Regulations, 2019. CERC has issued provisional tariff orders in respect of thirty-nine stations for the tariff period 2019-24. As per Regulation 10(4) of Tariff Regulations 2019, pending issue of provisional/final tariff orders in respect of balance stations with effect from 1 April 2019, capacity charges are billed to beneficiaries in accordance with the tariff approved and applicable as on 31 March 2019. In the case of new projects, which got commercialized from 1 April 2019 onwards and projects where tariff approved and applicable as on 31 March 2019 is pending with CERC, billing is done based on capacity charges as filed with CERC in tariff petition. Energy charges are billed as per the operational norms specified in Regulations 2019.
Capacity charges
As per Tariff Regulations 2019, the capacity charges shall be recovered under two segments of the year, i.e., High Demand Season (period of three months) and Low Demand Season (period of remaining nine months), and within each season in two parts viz., Capacity Charge for Peak Hours of the month and Capacity Charge for Off-Peak Hours of the month.
Energy charges
The energy charges cover the primary and secondary fuel cost and limestone consumption cost (where applicable). Energy charges for coal-based station are to be calculated based on normative heat rate, normative APC, weighted average landed price of primary fuel & secondary fuel and weighted average GCV of coal on as received less 85 Kcal/kg on account of variation during storage & weighted average GCV of secondary fuel respectively as per the Tariff Regulations 2019.
Energy charges for gas-based station have been calculated based on normative heat rate, weighted average landed price of primary fuel and weighted average GCV of primary fuel.
Other charges
Besides the capacity and energy charges, the other elements of tariff are:
• Special Allowance: For the financial year 2023-24, special allowance has been considered for units which have completed 25 years as on 31 March 2023 in terms of Tariff Regulations 2019.
• Sharing of gains due to variation in norms: As per Regulation 60, financial gains on account of controllable parameters - station heat rate, auxiliary consumption, and secondary fuel oil consumption, have been accounted for to be shared with the beneficiaries on annual basis in the ratio of 50:50.
• Sharing of Non-Tariff Income: As per Regulation 62, nontariff income from rent of land or building, sale of scrap and advertisements has been shared with beneficiaries on annual basis, in the ratio of 50:50.
• Compensation for degradation: Compensation for degradation of heat rate, APC and secondary fuel consumption due to part load operations and multiple start/stop of units are being accounted as per CERC order relating to operating procedures and the compensation mechanism in terms of Grid Code.
• Incentive: As per Regulation 49(B)(a), incentive to be accounted for ex-bus schedule energy corresponding to scheduled generation in excess of ex-bus energy corresponding to 85% PLF.
Elements of Total income are discussed below:
Energy sales (including electricity duty)
Your Company sells electricity to bulk customers, mainly electricity utilities owned by State Governments as well as private DISCOMs operating in States. Sale of electricity is generally made pursuant to long-term Power Purchase Agreements (PPAs) entered into with the beneficiaries.
Income from energy sales (including electricity duty) for the financial year 2023-24 was Tl,56,155.82 crore constituting 94% of the Total income. The income from energy sales (including electricity duty) has decreased by 1.02% over the previous years income of Tl,57,762.43 crore.
Capacity charges provisionally billed to beneficiaries for the year ended 31 March 2024 is Rs. 51,405.34 crore (31 March 2023: Rs. 47,631.73 crore). Energy and other charges are billed as per the operational norms specified in the Regulations 2019. The amount billed for the year ended 31 March 2024 is RS. 96,337.27 crore (31 March 2023: RS. 97,042.05 crore).
Capacity charges for the year ended 31 March 2024 have been provisionally recognized considering the provisions of CERC Tariff Regulations amounting to RS. 54,458.51 crore (31 March 2023: Rs. 49,832.28 crore). Energy and Other charges for the year ended 31 March 2024 have been recognized at Rs. 98,307.09 crore (31 March 2023: Tl,00,306.61 crore) as per the operational norms specified in the Regulations 2019.
Capacity charges for the year ended 31 March 2024 include Rs. 1,661.51 crore (31 March 2023: Rs. 1,829.50 crore) pertaining to earlier years on account of impact of CERC orders and other adjustments. Energy and other charges for the year ended 31 March 2024 include RS. 327.76 crore (31 March 2023: Rs. 3,206.12 crore) pertaining to earlier years on account of revision of energy charges due to grade slippages and other adjustments. Other adjustments during previous year include an amount of Rs. 3,097.04 crore on account of adjustment of Net movement in regulatory deferral account balances (net of taxes) relating to reimbursement of ash transportation cost.
Sales for the year ended 31 March 2024 also include Nil (31 March 2023: RS. 262.97 crore) on account of income tax recoverable from the beneficiaries as per Regulations, 2004 and RS. 124.70 crore (31 March 2023: RS. 87.51 crore) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2019. Energy sales include electricity duty amounting to Rs. 1,668.20 crore (31 March 2023: Rs. 1,516.71 crore).
The average tariff for the financial year 2023-24 is RS. 4.61/kWh as against RS. 4.89/kWh for the previous year. The average tariff includes adjustments pertaining to previous years. If the impact of such adjustments were to be excluded, the average tariff would be RS. 4.55/kWh in the financial year 2023-24 as against RS. 4.73/kWh in the previous year.
Sale of energy through trading
Your Company is purchasing power from the developers and selling it to the DISCOMs on principal-to-principal basis. During the financial year, your Company has accounted sales of energy purchased from solar power plants set up under National Solar Mission of Rs. 3,990.52 crore (31 March 2023: Rs. 3,753.48 crore).
Consultancy and other services
During the financial year 2023-24, Consultancy, project management and supervision fees amounted to RS. 170.59 crore as against RS. 154.08 crore in the previous financial year.
Lease rentals on assets on operating lease
The Power Purchase Agreements (PPA) signed in respect of one of the power stations was operative initially for a period of five years with the beneficiary which may be extended, renewed or replaced as the parties mutually agree. The Company has continued to classify this arrangement with its customers as lease based on the practical expedient provided in Appendix C of Ind AS 116. Accordingly, recovery of capacity charges towards depreciation, interest on loan capital & return on equity (pre-tax) components from the beneficiary are considered as lease rentals on assets on operating lease. Accordingly, lease rentals amounting to RS. 19.58 crore has been recognised in the financial year 2023-24 (31 March 2023: RS. 19.58 crore).
Sale of captive coal
CERC vide notification dated 19 February 2021, notified the Second amendment to Tariff Regulations 2019, which inter alia includes mechanism for determination of transfer price of coal from integrated coal mines to generating stations and are effective for the period 2019-24. Coal extracted from Companys captive mines and supplied to generating stations have been accounted considering these Regulations.
Interest from beneficiaries
CERC Regulations provides that where after the truing-up, the tariff recovered is less/more than the tariff approved by the Commission, the generating Company shall recover from /pay to the beneficiaries the under/over recovered amount along-with simple interest. Accordingly, the interest recoverable from the beneficiaries amounting to Rs. 1,512.58 crore (31 March 2023: Rs. 1,609.33 crore) has been recognised during the year as Interest from beneficiaries.
Energy internally consumed
Energy internally consumed relates to own consumption of power for construction works at station(s), township power consumption, etc. It is valued at variable cost of generation and is shown in Revenue from operations with a debit to corresponding expense head under power charges. The value of energy internally consumed during the financial 2023-24 was RS. 77.90 crore as compared to RS. 92.04 crore in the previous financial year.
Interest income on assets on finance lease
The Company had ascertained that the PPA entered into for Stage-1 of a power station with the beneficiary falls under the definition of finance lease. Accordingly, recovery of capacity charges towards depreciation (including AAD), interest on loan capital & return on equity (pre-tax) components from the beneficiary are being adjusted against FLR. Accordingly, an amount of RS. 23.81 crore has been recognised in the financial year 2023-24 as compared to RS. 32.53 crore in the previous financial year.
Provision written back
Provision amounting to RS. 16.48 crore has been written back during the financial year 2023-24 mainly on account of tariff adjustments. During the financial year 2022-23, Provision was written back towards water conservation fund at few projects of the Company amounting to RS. 242.98 crore.
Other income (Note-41)
The break-up of other income is as under:
Rs. Crore
| Particulars | 2023-24 | 2022-23 |
| Interest from | ||
| Advance to contractors and suppliers | 113.65 | 166.02 |
| Non-current trade receivables | 155.96 | 149.88 |
| Loan to subsidiary companies | 94.29 | 81.45 |
| Loan to employees | 62.98 | 61.92 |
| Deposits with banks | 218.40 | 67.76 |
| Income tax refunds | 296.71 | 1.13 |
| Others | 107.38 | 94.61 |
| Dividend from subsidiaries, joint ventures and other investments | 1,639.08 | 2,342.54 |
| Other non-operating income | ||
| Surcharge from beneficiaries | 303.42 | 429.82 |
| Provisions written back | 215.47 | 124.06 |
| Sale of scrap | 180.60 | 148.67 |
| Others | 354.47 | 343.05 |
| Total | 3,742.41 | 4,010.91 |
| Less: Transferred to EDC (net)/ development of coal mines | 20.17 | 56.27 |
| Net other income | 3,722.24 | 3,954.64 |
Other income has decreased by RS. 232.40 crore mainly due to decrease in dividend income & surcharge from beneficiaries. However, same is offset to some extent by increase in Interest from deposits with banks and income tax refunds.
2. Expenses (Statement of Profit & Loss and Note-42, 43, 44, 45 & 46)
2.1 Expenses related to operations
| FY | 2023-24 |
2022-23 |
||
| Commercial generation (MUs) | 3,60,596 |
3,43,959 |
||
| Expenses | Rs. Crore | Rs. per kWh | Rs. Crore | Rs. per kWh |
| Fuel cost | 94,037.49 | 2.61 | 96,851.50 | 2.82 |
| Employee benefits expense | 5,670.10 | 0.16 | 5,559.03 | 0.16 |
| Other expenses | 15,213.43 | 0.42 | 14,474.59 | 0.42 |
| Total | 1,14,921.02 | 3.19 | 1,16,885.12 | 3.40 |
Expenses indicated above includes expenses of consultancy and coal mining.
The expenditure incurred on fuel, employee benefits and other expenses for the financial year 2023-24 was Tl,14,921.02 crore as against the expenditure of Tl,16,885.12 crore incurred during the previous year. In terms of expenses per unit of power produced, it was RS. 3.19 per unit in the financial year 2023-24 as against RS. 3.40 per unit in the previous year. These components are discussed below.
2.1.1 Fuel cost (Note-42)
Expenditure on fuel was RS. 94,037.49 crore in the financial year 2023-24 in comparison to RS. 96,851.50 crore in the financial year 2022-23. The fuel-wise break-up of fuel cost is detailed as under:
Rs. Crore
| Fuel Type | 2023-24 | 2022-23 | % Change |
| Coal | 87,985.99 | 92,081.38 | (4.45)% |
| Gas | 4,604.50 | 3,052.30 | 50.85% |
| Naphtha | 2.91 | 158.43 | (98.16)% |
| Oil | 1,285.57 | 1,495.00 | (14.01)% |
| Biomass pellets | 158.52 | 64.39 | 146.19% |
| TOTAL | 94,037.49 | 96,851.50 | (2.91)% |
Includes the cost of captive coal RS. 4,383.95 crore (FY 2022-23: f3,039.06 crore) & adjustment due to Intra company elimination by (-) Rs. 5,579.79 crore (FY 2022-23: (-) Rs. 3,980.12 crore). Includes adjustment related to earlier years, (-) Rs. 4.88 crore (FY 2022-23: RS. 55.64 crore).
The expenditure towards fuel has decreased by 12.32% due to price variation mostly on account of lesser quantity of Imported Coal purchased. However, there is an increase in fuel cost by 9.47% because of quantity variation as a result of increased commercial generation in coal & gas plants. There is also a decrease of 0.06% due to decrease in previous year fuel cost. These expenses account for 82% of operational expenditure in the financial year 2023-24.
2.1.2 Employee benefits expense (Note-43)
Employee benefits expense includes salaries & wages, bonus, allowances, benefits, contribution to provident & other funds and welfare expenses. Employee benefits expense have marginally increased to RS. 5,670.10 crore in the financial year 2023-24 from RS. 5,559.03 crore in the financial year 2022-23. However, in terms of expenses per unit of generation, it remains unchanged at TO.16 in the financial year 2023-24. These expenses account for approximately 5% of operational expenditure in the financial year 2023-24.
2.1.3 Other expenses (Note-46)
Other expenses primarily consist of the expenses for repair and maintenance of plant & equipment, buildings, water charges, security expenses, CSR expenses, electricity duty, travelling, power charges, insurance, loss on fair valuation of non-current trade receivables at amortised cost, interest to beneficiaries, ash utilization and marketing expenses, training and recruitment and provisions. Other expenses increased to RS. 15,213.43 crore in the financial year 2023-24 from RS. 14,474.59 crore in the financial year 2022-23. However, in terms of expenses per unit of generation, it remains unchanged at Rs. 0.42 in the financial year 2023-24 as compared to previous year. These expenses account for 13% of operational expenditure in the financial year 2023-24.
Other expenses for the year also include an amount of RS. 77.09 crore being the amount appropriated by Ministry of Coal for non-adherence to certain parameters in respect of Talaipalli and Chatti Bariatu coal mines. May also refer to Note 46 - Other expenses of the financial statements explaining reasons for significant items of expenses.
2.2 Energy purchased for trading
Company has incurred expenditure of RS. 3,881.66 crore in the financial year 2023-24 as compared to RS. 3,656.26 crore in the previous year on purchase of energy for trading from solar power plants set up under National Solar Mission.
2.3 Finance costs (Note-44)
The finance costs for the financial year 2023-24 are RS. 10,250.82 crore in comparison to RS. 9,979.23 crore in the financial year 2022-23. The details of interest and other borrowing costs are tabulated below:
Rs. Crore
| Particulars | 2023-24 | 2022-23 |
| Finance costs on financial liabilities measured at amortized cost | ||
| Borrowings-Domestic/Foreign -Bonds/Loans/Notes | 11,434.38 | 11,490.32 |
| Cash credit, Commercial papers and unwinding of discount on vendor liabilities/provisions | 868.93 | 780.68 |
| Sub-total | 12,303,-31 | 12,271.00 |
| Exchange differences regarded as an adjustment to borrowing costs | 82.90 | 457.54 |
| Others | 42.77 | 36.64 |
| Finance costs before EDC | 12,428.98 | 12,756.18 |
| Less: Transferred to | ||
| Expenditure during construction period (net) | 1,993.72 | 2,589.03 |
| Development of coal mines | 184.44 | 196.92 |
| Total Finance costs | 10,250.82 | 9,979.23 |
Finance costs has increased by 3% over previous financial year mainly due to increase in the average cost of borrowings from 6.40% to 6.67% on account of higher rate of interest on new/ existing borrowings.
2.4 Depreciation, amortization and impairment expense (Note-45)
The depreciation, amortization and impairment expense charged to the Statement of Profit and Loss during the financial year 2023-24 was RS. 13,943.15 crore as compared to RS. 13,136.71 crore in the financial year 2022-23, registering an increase of 6%. This is mainly due to increase in the gross PPE by RS. 29,252.13 crore in the financial year 2023-24 over the previous year.
2.5 Exceptional items in the Statement of Profit and Loss (Note-51)
The Company has an investment of RS. 834.55 crore in Ratnagiri Gas & Power Pvt. Ltd. (RGPPL). The entire investment was considered impaired and provided for in the earlier years based on the financial position of the Subsidiary. During the year, fair valuation of investments in RGPPL was carried out and as per the valuation, the provision made in the earlier years has been written back and disclosed as an Exceptional item in the Statement of Profit and Loss. Refer Note-51 of financial statements for detailed disclosure.
3. Profit before tax & Regulatory deferral account balances
The profit of the Company before tax & Regulatory deferral account balances is tabulated below:
Rs. Crore
| Particulars | 2023-24 | 2022-23 |
| Total Income | 1,65,707.27 | 1,67,724.41 |
| Less: | ||
| Expenditure related to operations | 1,14,921.02 | 1,16,885.12 |
| Electricity purchased for trading | 3,881.66 | 3,656.26 |
| Finance costs | 10,250.82 | 9,979.23 |
| Depreciation, amortisation and impairment expense | 13,943.15 | 13,136.71 |
| Add: | ||
| Exceptional items | 834.55 | - |
| Profit before tax and regulatory deferral account balances | 23,545.17 | 24,067.09 |
4. Tax expense (Note-55)
Provision for current tax
A provision of RS. 3,941.73 crore has been made towards current tax for the financial year 2023-24 as against the provision of Rs. 4,499.91 crore made for the financial year 2022- 23. Current tax provision is mainly lower because of lower PBT in the financial year 2023-24 and due to reversal of tax provision of RS. 152.63 crore pertaining to earlier years income as against additional tax of RS. 206.35 crore on receipt of orders pertaining to earlier years during previous year.
Provision for deferred tax
Net increase in deferred tax liability during the year amounting to Rs. 2,658.30 crore (previous year: Rs. 1,779.36 crore) has been debited to the Statement of Profit and Loss.
Details of tax expense
Rs. Crore
| Particulars | 2023-24 | 2022-23 |
| Provision for current year | 4,094.36 | 4,293.56 |
| Adjustments for earlier years | (152.63) | 206.35 |
| Current tax | 3,941.73 | 4,499.91 |
| Deferred tax liability | 4,093.09 | 4,532.62 |
| MAT Credit | (1,434.79) | (2,753.26) |
| Deferred tax | 2,658.30 | 1,779.36 |
| Total Tax expense | 6,600.03 | 6,279.27 |
5. Net movement in regulatory deferral account balances (net of tax) (Note-70)
Net movements in regulatory deferral account balances (net of tax) for the financial year 2023-24 is Rs. 1,134.25 crore in comparison to (-) RS. 591.09 crore for the financial year 2022- 23 as detailed below:
Rs. Crore
| Particulars | 2023-24 | 2022-23 |
| Exchange differences | (1,262.44) | 960.93 |
| Pay Revision | (6.56) | (0.49) |
| Deferred tax | 2,808.05 | 1,650.50 |
| Ash transportation cost | - | (3,090.42) |
| Sub-total (i) | 1,539.05 | (479.48) |
| Amount realized/ recognized during the year (ii) | (164.67) | (236.75) |
| Net movement in regulatory deferral account balances (i)+(ii) ID | 1,374.38 | (716.23) |
| Tax on net movements in regulatory deferral account balances (II) | 240.13 | (125.14) |
| Total amount recognized in the statement of profit and loss [l-ll] | 1,134.25 | (591.09) |
Refer Note-70 of financial statements for detailed disclosures.
6. Profit after tax
The profit of the Company after tax is tabulated below:
Rs. Crore
| Particulars | 2023-24 | 2022-23 |
| Profit before tax and regulatory deferral account balances | 23,545.17 | 24,067.09 |
| Less: Tax expense | 6,600.03 | 6,279.27 |
| Add: Net movement in regulatory deferral account balances (net of tax) | 1,134.25 | (591.09) |
| Profit after tax | 18,079.39 | 17,196.73 |
7. Other comprehensive income
The other comprehensive income net of tax for the financial year 2023-24 is RS. 15.26 crore in comparison to (-) RS. 75.70 crore for the financial year 2022-23. For the financial year 2023- 24, net actuarial loss on defined benefit plans is (-) RS. 128.00 crore, while net gain on fair value of equity instruments is RS. 120.90 crore as against net actuarial loss on defined benefit plan and net gain on fair value of equity instrument amounting to (-) RS. 96.09 crore and RS. 3.60 crore respectively in the previous year.
C. Cash flows
Statement of cash flows comprises of cash flows from operating activities, investing activities and financing activities. Net cash generated from operating activities decreased to Rs. 34,830.91 crore during the financial year 2023- 24 as compared to Rs. 42,351.34 crore in the previous year majorly due to working capital changes amounting to Rs. 7,594.15 crore.
Cash outflows on investing activities arise from expenditure on setting up power projects, acquisition of power plants, investments in joint ventures & subsidiaries and tax outflow on income from investing activities. Cash inflows arise from interest from banks and dividend income from joint ventures and subsidiaries. Cash invested on purchase of fixed assets increased from Rs. 17,320.53 crore in financial year 2022-23 to Rs. 17,444.27 crore in financial year 2023-24. Cash inflow on account of dividend received has decreased from Rs. 1,992.54 crore in previous year to Rs. 1,765.59 crore in the financial year 2023-24. Considering all the investing activities, the net cash used in investing activities was Rs. 15,118.16 crore in the financial year 2023-24 as compared to Rs. 14,100.69 crore in the previous year.
During the financial year 2023-24, the Company had an inflow of Rs. 16,334.16 crore from non-current borrowings as against Rs. 16,257.48 in the previous year and net inflow of Rs. 3,907.17 crore from current borrowings as against outflow of Rs. 2,511.28 crore in the previous year. Cash used for repayment of non- current borrowings during the financial year 2023-24 was Rs. 20,048.84 crore as against Rs. 22,371.86 crore repaid in the previous year. Interest paid during the year was Rs. 12,383.23 crore as compared to Rs. 12,557.58 crore during the previous year. Cash used for paying dividend was Rs. 1,272.50 crore. Thus, from financing activities during the year, the Company has an outflow of Rs. 19,518.72 crore as against an outflow of Rs. 28,365.00 crore in the previous year.
Cash, cash equivalents and cash flows on various activities is summarized below:
Rs. Crore
| 1 Particulars | 2023-24 | 2022-23 1 |
| Opening cash & cash equivalents | 3.13 | 117.48 |
| Net cash from operating activities | 34,830.91 | 42,351.34 |
| Net cash used in investing activities | (15,118.16) | (14,100.69) |
| Net cash inflow/(outflow) from financing activities | (19,518.72) | (28,365.00) |
| Change in cash and cash equivalents | 194.03 | (114.35) |
| Closing cash & cash equivalents | 197.16 | 3.13 |
FINANCIAL SUMMARY OF SUBSIDIARY COMPANIES
The Company has 10 subsidiary companies as on 31 March 2024, out of which 5 (NESCL, NVVN, NML, NEEPCO & NGEL) are wholly owned by the Company. A summary of the financial performance of the subsidiary companies during the financial year 2023-24 is given below:
Rs. Crore
| SI. No. | Company | NTPCs investment in equity | Total Income | Profit/ (Loss) for the year |
| 1 | NTPC Electric Supply Company Ltd. | 0.08 | 1.18 | 0.04 |
| 2 | Bhartiya Rail Bijlee Company Ltd. | 1,774.12 | 3,721.22 | 517.01 |
| 3 | NTPC Vidyut Vyapar Nigam Ltd. | 30.00 | 5,351.06 | 160.94 |
| 4 | Patratu Vidyut Utpadan Nigam Ltd. | 2,164.55 | 0.11 | (0.01) |
| 5 | NTPC Mining Limited | 154.10 | 0.24 | (3.42) |
| 6 | North-Eastern Electric Power Corporation Ltd. | 4,000.00 | 4,264.23 | 548.14 |
| 7 | THDC India Ltd. | 7,500.00 | 2,012.61 | 596.97 |
| 8 | NTPC Green Energy Limited | 5,719.61 | 2,037.66 | 342.86 |
| 9 | NTPC EDMC Waste Solutions Pvt. Ltd. | 0.15 | . | (0.02) |
| 10 | Ratnagiri Gas & Power Pvt. Ltd. | 834.55 | 3,095.31 | 1,734.23 |
| Total | 22,177.16 | 20,483.62 | 3,896.74 |
FINANCIAL SUMMARY OF JOINT VENTURE COMPANIES
Proportion of ownership and financial performance of the joint venture companies for the financial year 2023-24 are given below:
Rs. Crore
| SI. No. Company | NTPCs Ownership (%) | NTPCs Investment in equity | Total Income | Profit/ (Loss) for the year(NTPC Share) |
| A. Joint venture companies incorporated in India | ||||
| 1 Utility Powertech Ltd. | 50.00 | 1.00 | 571.24 | (2.88) |
| 2 NTPC-GE Power Services Pvt. Ltd. | 50.00 | 3.00 | 511.36 | 6.34 |
| 3 NTPC-SAIL Power Co. Ltd. | 50.00 | 490.25 | 3,870.59 | 217.92 |
| 4 NTPC Tamil Nadu Energy Co. Ltd. | 50.00 | 1,466.40 | 4,381.41 | 293.41 |
| 5 Aravali Power Co. Pvt. Ltd. | 50.00 | 1,433.01 | 5,463.41 | 376.92 |
| 6 Meja Urja Nigam Pvt. Ltd. | 50.00 | 1,826.33 | 4,283.31 | 174.05 |
| 7 NTPC-BHEL Power Project Pvt. Ltd. | 50.00 | - | 20.00 | - |
| 8 National High Power Test Laboratory Pvt. Ltd. | 21.63 | 12.32 | 46.11 | (6.08) |
| 9 Transformers and Electricals Kerala Ltd. | 44.60 | 5.47 | 131.21 | (1.94) |
| 10 Energy Efficiency Services Ltd. | 39.25 | 697.51 | 1,856.33 | (49.36) |
| 11 CIL NTPC Urja Pvt. Ltd. | 50.00 | 0.08 | 0.06 | 0.02 |
| 12 Anushakti Vidyut Nigam Ltd. | 49.00 | 0.05 | - | - |
| 13 Hindustan Urvarak and Rasayan Ltd. | 29.67 | 2,642.99 | 14,987.43 | 392.98 |
| 14 Jhabua Power Limited | 50.00 | 325.00 | 1,977.06 | (55.30) |
| B. Joint venture companies incorporated outside India | ||||
| 15 Trincomalee Power Company Ltd., Sri Lanka | 50.00 | 1.36 | 0.05 | (0.16) |
| 16 Bangladesh-lndia Friendship Power Company Private Ltd., Bangladesh | 50.00 | 1,324.02 | 3,313.78 | 289.68 |
| Total | 10,228.79 | 41,413.35 | 1,635.60 |
Consolidated financial results
A brief summary of the financial results on a consolidated basis is given below:
Rs. Crore
| 1 Particulars | 2023-24 | 2022-23 |
| Total income | 1,81,165.86 | 1,77,976.39 |
| Profit before tax and regulatory deferral account balances | 27,141.45 | 24,330.59 |
| Tax Expense | 6,809.20 | 6,796.12 |
| Profit before regulatory deferral account balances | 20,332.25 | 17,534.47 |
| Net movement in regulatory deferral account balances (net of tax) | 1,000.20 | (413.12) |
| Profit for the year | 21,332.45 | 17,121.35 |
| Other comprehensive income (net of tax) | (24.61) | (203.00) |
| Total comprehensive income for the year | 21,307.84 | 16,918.35 |
CAUTIONARY STATEMENT
Statements in the Management Discussion and Analysis and in the Directors Report, describing the Companys objectives, projections and estimates, contain words or phrases such as "will", "aim", "believe", "expect", "intend", "estimate", "plan", "objective", "contemplate", "project" and similar expressions or variations of such expressions, are "forward-looking" and progressive within the meaning of applicable laws and regulations. Actual results may vary materially from those expressed or implied by the forward-looking statements due to risks or uncertainties associated therewith depending upon economic conditions, government policies and other incidental factors. Readers are cautioned not to place undue reliance on these forward-looking statements.
| For and on behalf of the Board of Directors | |
| Sd/- | |
| (Gurdeep Singh) | |
| Chairman & Managing Director | |
| Place: New Delhi | |
| Date: 2 August 2024 |
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