NTPC Limited

NTPC Limited

Type	State-owned enterprise Public company
Traded as	BSE: 532555 NSE: NTPC BSE SENSEX Constituent CNX Nifty Constituent
Industry	Electric utility
Founded	1975
Headquarters	New Delhi, India
Key people	Arup Roy Choudhury (Chairman & MD)[1]
Products	electrical power natural gas
Services	Electricity generation and distribution natural gas exploration, production, transportation and distribution
Revenue	INR 72,540 Crores (US$ 12.8 billion) (2012-13)[2][3]
Net income	INR 16,611 Crores (US$ 02.9 billion) (2012-13)[2][3]
Employees	25,484 (March 2013)
Website	www.ntpc.co.in

NTPC Limited (formerly known as National Thermal Power Corporation Limited) is a Central Public Sector Undertaking (CPSU) under the Ministry of Power, Government of India, engaged in the business of generation of electricity and allied activities. It is a Company incorporated under the Companies Act 1956 and a "Government Company" within the meaning of the Act. The Headquarters of the Company is situated at New Delhi. NTPC's core business is generation and sale of electricity to state-owned power distribution companies and State Electricity Boards in India. The company also undertakes consultancy and turnkey project contracts that comprise of engineering, project management, construction management and operation and management of power plants. The company has also ventured into oil and gas exploration and coal mining activities. It is the largest power company in India with an electric power generating capacity of 42,454 MW.^[2] Although the company has approx. 18% of the total national capacity it contributes to over 27% of total power generation due to its focus on operating its power plants at higher efficiency levels (approx. 83% against the national PLF rate of 78%).^[2]
It was founded by Government of India in 1975, which held 75% of its equity shares on 31 March 2013^[2] (after divestment of its stake in 2005, 2009 and 2012).
In May 2010, NTPC was conferred Maharatna status by the Union Government of India.^[4] It is listed in Forbes Global 2000 for 2012 at 384th rank in the world.^[3]

History

1975 to 1994

The company was founded in November 1975 as "National Thermal Power Corporation Private Limited". It started work on its first thermal power project in 1976 at Singrauli in Uttar Pradesh.^[5] In the same year, its name was changed to "National Thermal Power Corporation Limited". In 1983, NTPC began commercial operations (of selling electricity) and earned profits of INR 4.5 crores in FY 1982-83. By the end of 1985, it had achieved power generating capacity of 2000 MW.
In 1986, it completed synchronisation of its first 500 MW unit at Singrauli. In 1988, it commissioned two 500 MW units, one each in Rihand and Ramagundam. In 1989, it started a consultancy division. In 1992, it acquired Feroze Gandhi Unchahar Thermal Power Station (with 2 units of 210MW capacity each) from Uttar Pradesh Rajya Vidyut Utpadan Nigam of Uttar Pradesh.^[6] By the end of 1994, its installed capacity crossed 15,000 MW.

1995 to 2004

In 1995, it took over the Talchar Thermal Power Station from Orissa State Electricity Board.^[5] In the year 1997, Government of India conferred it with "Navratna" status. In the same year it achieved a milestone of generation of 100 billion units of electricity in a year.^[5] In 1998, it commissioned its first naptha-based plant at Kayamkulam with a capacity of 350 MW. In 1999, its plant in Dadri, which had the highest plant load factor (PLF) in India of 96%, was certified with ISO-14001. During 2000, it commenced construction of its first hydro-electric power project, with 800 MW capacity, in Himanchal Pradesh.^[5]
In 2002, it incorporated 3 subsidiary companies: "NTPC Electric Supply Company Limited" for forward integration by entering into the business of distribution and trading of power; "NTPC Vidyut Vyapar Nigam Limited" for meeting the expected rise in energy trading; "NTPC Hydro Limited" to carry out the business of implementing and operating small and medium hydro-power projects.^[7] In the same year its installed capacity crossed 20,000 MW.^[5]
Listing:NTPC got listed on BSE and NSE on 5 November 2004. Against the issue price of INR 62 per share, it closed the first day of listing with INR 75.55 per share.^[8] On the day of listing, it become the third largest company in India in terms of market capitalisation.^[9]

2005 to present

In October 2005, the company's name was changed from "National Thermal Power Corporation Limited" to "NTPC Limited".^[5] The primary reason for this change was the company's foray into hydro and nuclear based power generation along with backward integration by coal mining. In 2006, it entered into an agreement with Government of Sri Lanka to set up two units of 250 MW each in Trincomalee in Sri Lanka.^[5] During 2008 and 2011, NTPC entered into Joint Ventures with BHEL, Bharat Forge, NHPC, Coal India, SAIL, NMDC and NPCIL to expand its business of power generation.^[5][6] By the end of 2010, its installed capacity crossed 31,000 MW.^[5]

Operations

NTPC operates from 55 locations in India, one location in Sri Lanka and 2 locations in Bangladesh.
Headquarters: In India, it has 8 head quarters (HQ):

Scheduling and generation despatch: The Scheduling and Despatch of all the generating stations owned by National Thermal Power Corporation is done by respective Regional Load Despatch Centres which are the apex body to ensure integrated operation of the power system grid in the respective region. All these Load Despatch Centres come under Power System Operation Corporation Limited (POSOCO).

NTPC Plants and their installed capacity

The total installed capacity of the company is 41,794 MW (including JVs) with 17 coal-based and seven gas-based stations, located across the country. In addition under JVs (joint ventures), six stations are coal-based, and another station uses naphtha/LNG as fuel.

Thermal-Coal based

Coal Based (Owned through JVs)

Gas based

Hydel

The company has also stepped up its hydroelectric power (hydel) projects implementation. Some of these projects are:

1. Loharinag Pala Hydro Power Project by NTPC Ltd: Loharinag Pala Hydro Power Project (600 MW i.e.150 MW x 4 Units) is located on river Bhagirathi (a tributary of the Ganges) in Uttarkashi district of Uttarakhand state. This is the first project downstream from the origin of the Ganges at Gangotri. Project was at advance stage of construction when it was discontinued by Government of India in August 2010 .
2. Tapovan Vishnugad 520MW Hydro Power Project by NTPC Ltd: In Joshimath town.
3. Lata Tapovan 130MW Hydro Power Project by NTPC Ltd: is further upstream to Joshimath. This project is under environmental revision.
4. Koldam Dam Hydro Power Project 800 MW in Himachal Pradesh (130 km from Chandigarh )
5. Rupasiyabagar Khasiabara HPP, 261 MW in Pithoragarh, Uttarakhand State, near China Border.
6. Amochu in Bhutan 600 MW

Future Goals

The National Thermal Power Corporation Ltd is on an expansion spree to meet the power requirements of the country – it has adopted a multi-pronged growth strategy to become a 50,000-mW plus company by 2012. NTPC envisages 75,000 mW plus installed capacity by 2017 which includes a significant addition of hydro capacity and forays into non-conventional and nuclear power generation. Dr. Arup Roy Choudhury, Chairman and managing director, NTPC, said that capacity addition through greenfield projects, expansion of existing stations, joint ventures and takeover of SEB stations were on the cards. Disclosing NTPC’s future plans, Dr. Arup Roy Choudhury said that the nuclear agreement with the US would provide flexibility on the acquisition of technology for nuclear energy. A 2,000-mW nuclear power plant will come up in the middle of the 11th Five-Year Plan and another 2,000 mW at the end of the plan. The power major has also signed MoUs with the Arunachal Pradesh government for implementation of the 4,000-mW Etalin hydel power plant, the country’s largest hydro power project, and the 500-mW Attunli HEP project. NTPC also plans to go global. The public sector company has signed a memorandum of agreement with the Government of Sri Lanka and Ceylon Electricity Board for setting up a 500-mW (2x250 mW) coal-based thermal power plant in the island nation. An MoU has also been signed with Kyushu Electric Power Co. Inc., Japan, for establishing an alliance for exchange of information and experts from different areas of the business. The company is also in the process of finalising an MoU with Nigeria for setting up power plants against allocation of LNG on long-term basis for NTPC plants in India. Despite the major shortfall in the power ministry’s 10th plan capacity addition programme, NTPC has all reason to be pleased with its performance of a total addition of 7,155 mW power during the period. The company’s Vindhyachal super thermal power plant has become the country’s largest thermal generation plant with a total installed capacity of 3,200 mW. Apart from the commissioned projects, NTPC has reported good progress in its ongoing projects. At present, NTPC has a total of 11,360 mW capacity under construction. Its foray into hydro power has also gathered momentum with the 800-mW Koldam, 600-mW Loharinag Pala and 520-mW Tapovan Vishnugad moving ahead at a good pace. To ensure fuel supply for its upcoming thermal projects, NTPC has entered into agreements with Coal India Ltd and Singareni Collieries Company Ltd for jointly undertaking the development, operation and maintenance of the coal blocks. The coal ministry has also recently approved NTPC’s Pakri Barwadih coal mining project which will be the largest mining capacity plan in India with estimated reserves of 15 million tonnes per annum.^[10]

Listings and shareholding

The equity shares of NTPC are listed on the Bombay Stock Exchange,^[11] where it is a constituent of the BSE SENSEX index,^[12] and the National Stock Exchange of India,^[13] where it is a constituent of the S&P CNX Nifty.^[14]

As on 30 June 2013, Government of India held around 75% equity shares in NTPC. Over 740,000 individual shareholders hold approx. 1.93% of its shares.^[15] Life Insurance Corporation of India is the largest non-promoter shareholder in the company with 7.66% shareholding.^[16]

Employees

As on 31 March 2013, the company had 23,865 employees (out of which 1,467 were women (6%) and 472 were employees with disabilities (2%)) and its subsidiaries and JVs had 1,619 employees, totaling to an employee strength of 25,484.^[2] The attrition rate for the FY 2012-13, including the trainee employees and employees working for subsidiaries and JVs, was 1.46%.^[2] As per the Employee Cost summary provided by the company in its Annual Report for FY 2012-13, it had approx. 23,938 employees during the year to whom it paid an annual remuneration of approx. INR 15,77,000 per employee and spent approx. INR 284,000 per year per employee on other employee related costs like subsidised transport, canteen, medical facilities, school facilities, township and welfare expenses.^[2]

Awards and recognitions

• NTPC was ranked 62nd among the 250 largest Power Producers and Energy Traders in the world by Platts in 2012.^[17]
• In 2009, it received ICSI National Award for Excellence in Corporate Governance.^[18]

Criticism

Land acquisition in tribal areas: The company (and other PSUs in India) has been allotted land for setting up power plants and related infrastructure in rural/tribal areas across the country by Central Government and various state governments. Some of these lands have been allotted to NTPC (and other PSUs in India) through Land Acquisition Acts passed by Central/State Governments. Wherever a land acquisition law is enacted, it also places a liability on the PSUs/governments to take actions for proper rehabilitation of displaced residents of that rural/tribal area. Governments/PSUs are criticised if they do not fulfill their liability towards displaced residents. In many areas where land acquisition is proposed through land acquisition laws, local residents oppose the forcible acquisition as they are not sure of proper rehabilitation. In one such incident in Keredari block of Jharkhand's Hazaribagh district, the local residents were opposing the land acquisition. NTPC had to take police help for getting the land acquired for local residents.^[19][20] Two villagers agitating against land acquisition were shot dead by police in July 2013.^[21][22][23] This incident led to severe criticism of PSUs and Governments for not understanding the needs of residents and not taking their prior consent before acquiring the lands.^[24]

See also

• Electricity in India
• List of companies of India

References

External links

• Official website
• Jobs at NTPC
• NTPC on Facebook
• NTPC at Times of India
• NTPC at Bombay Stock Exchange
• NTPC at National Stock Exchange of India

Business data

• NTPC at Google Finance
• NTPC at Yahoo! Finance
• NTPC at Reuters

v t e NTPC Power Stations Thermal Coal Based Badarpur Barh Dadri Farakka Korba Ramagundam Rihand Simhadri Singrauli Sipat Vindhyachal Talcher Talcher Kaniha Tanda Unchahar Coal Based (Owned by JVs) NSPCL Gas Based Anta Auraiya Dadri Faridabad Jhanor-Gandhar Kawas Kayamkulam Hydel Koldam Loharinag Pala

v t e Major Indian companies Economy of India List of companies of India Automotive Ashok Leyland Bajaj Auto Eicher Motors Hero MotoCorp Mahindra & Mahindra Maruti Tata Motors TVS Motor Company TAFE - Tractors and Farm Equipment Limited Aviation Jet Airways Air India IndiGo Conglomerates Aditya Birla Group Adani Group Avantha Group Bajaj Group Bharti Enterprises Essar Group Essel Group GMR Group Godrej Hinduja Group ITC Jaypee Group Jindal Group Kirloskar Group JSW Group Larsen & Toubro Mahindra Group Muthoot Group Muthoot Murugappa Group Reliance ADA Group Reliance Industries RPG Group Sahara India Shapoorji Pallonji Group Sun Group Tata Group Torrent Group United Breweries Group Videocon Construction HCC DLF Gammon India Consumer goods Dabur Godrej Consumer Hindustan Unilever Nirma Tata Global Beverages Energy and natural resources Bharat Petroleum Cairn India Chennai Petroleum Coal India GAIL Essar Oil Hindustan Petroleum Indian Oil Corporation Oil India NMDC NTPC NHPC ONGC PowerGrid Corporation of India Reliance Infrastructure Suzlon Energy Sesa Goa Tata Power Finance Axis Bank HDFC Bank ICICI Bank ING Vysya Bank Jammu & Kashmir Bank Kotak Mahindra Bank Life Insurance Corporation of India Muthoot Finance Ltd Tamilnad Mercantile Bank IDBI Bank State Bank of India Punjab National Bank Bank of Baroda Canara Bank Central Bank of India Union Bank of India Bank of India Healthcare and pharmaceutical Cipla Ranbaxy Laboratories Dr. Reddy's Laboratories Sun Pharmaceutical Lupin Limited Heavy & electrical industry ACC Limited Ambuja Cements Bhushan Steel BHEL Hindalco India Cements Jindal Steel JSW Steel SAIL Tata Steel UltraTech Cement Havells Information technology HCL Infosys Mahindra Satyam Tata Consultancy Services Tech Mahindra Wipro Media/Entertainment The Times Group Retail Future Group Easyday Reliance Retail Telecommunications Aircel Airtel BSNL Idea Cellular Micromax Mobile Reliance Communications Tata Communications Chemical & Tyres/rubber Apollo Tyres Asian Paints Madras Rubber Factory Methodology: FY 2012/13 revenues of over US$ 1 billion

v t e BSE SENSEX companies of India As of 20 January 2014: Airtel Axis Bank Bajaj Auto BHEL Cipla Coal India Dr. Reddy's Laboratories GAIL HDFC HDFC Bank Hero MotoCorp Hindalco HUL ICICI Bank Infosys ITC L&T Mahindra & Mahindra Maruti Suzuki NTPC ONGC Reliance Industries SBI Sterlite Industries Sun Pharma Tata Motors Tata Power Tata Steel TCS Wipro

v t e S&P CNX Nifty companies of India As of 28 Sep 2012: ACC Ambuja Cements Asian Paints Axis Bank Bajaj Auto Bank of Baroda BHEL BPCL Bharti Airtel Cairn India Cipla Coal India DLF Dr. Reddy's Laboratories GAIL Grasim Industries HCL Technologies HDFC HDFC Bank Hero MotoCorp Hindalco Industries HUL Infosys ICICI Bank IDFC ITC Limited Jaiprakash Associates Jindal Steel and Power Kotak Mahindra Bank L&T Lupin Mahindra & Mahindra Maruti Udyog NTPC ONGC Power Grid Corporation PNB Ranbaxy Laboratories Reliance Infrastructure Reliance Industries Sesa Goa Siemens SBI Sun Pharmaceutical TCS Tata Motors Tata Power Tata Steel Ultratech Cement Wipro