This year marks a significant milestone for our company, underscored by remarkable
growth and unwavering resilience. As we continue our journey, we are (progressively
advancing towards I renewable energy, reflecting our commitment to a sustainable and i
foward-looking future. Our dedication to innovation and responsible stewardship positions
us as leaders in this vital transformation.
Prasanna Kumar Motupalli
IX Chairman and Managing Director
LEADERSHIP MESSAGE
Dear Shareholders,
As we stand at a pivotal moment, we pause to reflect on the incredible support you have
provided. Your belief in our mission has been the driving force behind our remarkable
achievements, empowering us to navigate uncharted waters and emerge stronger than ever
before. It is with great pride that we present Your Company's Integrated Annual Report for
the financial year 2023-24.
This report is more than just a collection of numbers and milestones; it is a testament
to our steadfast commitment to sustainability and our promise to create long-term value
for all our stakeholders. Over the past year, we have taken bold strides in our
undertaking to becoming a socially conscious business. We have not only adopted the ESG
(Environmental, Social, and Governance) principles but have established an integrated
approach that empowers us to disclose relevant insights to our stakeholders.
Our Corporate Plan 2030 continues to serve as a guiding framework for our decisions and
actions, ensuring that they align with our sustainability goals and responsible business
practices. This strategic roadmap represents a crucial step towards sustainable growth and
will undoubtedly play a pivotal role in shaping our future. As we embark on this
transformative path, we are confident that with your patronage, we will emerge as a beacon
of sustainable progress in the energy sector.
Operational Excellence:
We are thrilled to report that your Company's operational excellence has yielded
remarkable results, setting new benchmarks in industry. Our teams have worked tirelessly
to push the boundaries of what is possible, and their efforts have been rewarded with
string of impressive achievements.
We are proud to announce that your Company has achieved record coal and lignite
production, reaching an all-time high of 36.32 MT.
The Talabira Mine has been a standout performer, recording the highest ever coal
production of 12.64 MT and dispatch of 11.76 MT. Barsingsar Mines and Mine-IA have also
made significant contributions, reaching new heights in lignite production 2.10 MT and
5.59 MT, respectively. Additionally, your Company successfully completed the permanent
diversion of the Paravanar river which ensures the advancement of Neyveli Mine II.
Your Company's power generation assets have also demonstrated exceptional performance,
with the TPS-II Expansion achieving its highest ever generation of 2153.41 MU and BTPS
recording a generation of 1692.05 MU. We are particularly proud of our in renewable
energy, where we generated 2.1 BU of green power out of a total of 27.1 BU power. This
achievement underscores our commitment to sustainability and our role in shaping a greener
future.
Our zeal for high operational standards has been acknowledged by industry experts, with
our mines receiving 13 Five Star Rating Awards. Our power generation assets have also been
recognized for their outstanding performance, with NNTPS, TPS-I Expansion, and Barsingsar
TPS being ranked the top three in India for Plant Load Factor (PLF).
Financial Milestones:
We are pleased to report significant financial growth that underscores our robust
performance and strategic growth. Your Company's standalone Profit After Tax (PAT) surged
to Crore, reflecting a remarkable increase of 48% compared to previous year. This
achievement marks the highest Profit Before Tax (PBT) in the last decade, reaching 2,788
Crore, a substantial rise of 62%. Additionally, EBITDA climbed to 4,873 Crore,
representing a 25% increase.
On a group level, your Company's PAT reached 1,868 Crore, up 31%, while the Group PBT
increased to 2,882 Crore, a growth of 40%. The Group EBITDA also saw a healthy rise,
reaching 5,556 Crore, up 14%.
Expanding Our Potential:
We are excited to share significant advancements in our strategic initiatives that
position us for future growth and sustainability. year, we established two new
wholly-owned subsidiaries: NLC India Renewables Limited (NIRL) and NLC India Green Energy
Limited (NIGEL). These entities are pivotal in our resolve to expanding our footprint in
the renewable energy sector.
Our capital expenditure (CAPEX) reached an impressive 4,270 Crore, achieving 148% of
our target. This investment reflects our dedication to enhancing our operational
capabilities and infrastructure. Additionally, we won the North Dhadu (West) Coal Mine in
Jharkhand and Machhakata (Revised) Coal block in Odisha at the commercial coal block
auction, further strengthening our resource base.
Our market capitalization reached a record high of 407 billion during this financial
year, with our share price standing at 293.75 per share. It reached an all time high of
311.80 per share on 16th July, 2024 with a market capitalization of 432 billion These
milestones not only highlight our financial resilience but also reinforce our position as
a leader in the energy sector, committed to sustainable growth and innovation.
Overview of Projects Under Implementation:
Your Company is actively advancing several strategic projects that reflect our
commitment to innovation and sustainable growth. of our key initiatives is the Lignite to
Methanol Project, which to utilize lignite from Neyveli Mines with a capacity of 1,200
Tonnes per Day (TPD). This project, estimated at 4,395 Crore, is being executed on a Lump
Sum Turnkey (LSTK) basis, with Engineers India Limited (EIL) appointed as the Project
Management Consultant. We anticipate project completion within 42 months from the zero
with environmental clearance currently in process.
In the renewable energy sector, your Company emerged as a successfully bidder for a 150
MW Hybrid (Solar + Wind) RE Power Project under the SECI framework, securing a tariff of
2.34/Unit. We have received the Letter of Award (LOA) from SECI and have submitted the
Performance Bank Guarantee (PBG), with the Power Purchase Agreement (PPA) signed.
Additionally, we are progressing on a 510 MW Solar Power Project under the CPSU scheme,
which will be executed in three phases across various locations, including Gujarat,
Rajasthan and Neyveli. The project is currently in the implementation phase, with
significant milestones already achieved.
NLC Talabira Thermal Power Project, a coal-based facility with a capacity of 2,400 MW
at Odisha State, utilizing state-of-the-art Ultra Super-critical technology, has received
all necessary approvals, including Environmental Clearance. Power Purchase Agreements have
been signed with multiple state utilities, ensuring a take plan. LoA issued for EPC
contract to BHEL on 12-01-2024 for a value of Rs.18,255 Cr and pre project activities are
under progress Foundation laid by Hon'ble Prime Minister on 03.02.2024.
Furthermore, the Thermal Power Station II Second Expansion project, which will add
1,000 MW of lignite-based capacity, is underway. The feasibility report for a 500 MW unit
configuration is currently in progress, and the required land has already been secured.
Additionally, Mine-III, with an 11.5 MTPA capacity, which serves as a fuel linkage for the
TPS II Second Expansion, is under implementation in Neyveli, Tamil Nadu. The Ministry of
Coal has granted in-principle approval for both the Mining Plan and the Mine Closure Plan
for Mine-III.
NUPPL, the subsidiary company, has been allotted the Pachwara South Coal Block (PSCB)
with a capacity of 9 MTPA in Jharkhand. The Ministry of Coal has approved both the mining
plan and the mine closure plan for PSCB. The process of obtaining the necessary statutory
clearances and land acquisition is currently underway.
Commitment to Renewable Energy and Diversification:
As we look to the future, your Company remains in alignment with India's ambitious
renewable energy targets. We are dedicated to significantly enhancing our capacity in
renewable energy, focusing on innovative technologies and infrastructure improvements.
Your Company is dedicated to enhancing our renewable energy portfolio, with plans to
increase the capacity from 1,431 MW to 10,110 MW by 2030. In addition to our renewable
energy efforts, we are prioritizing policy and regulatory changes that foster market
liquidity and competitive pricing, further driving the transition to a off-sustainable
energy mix. Our ongoing focus on modernizing our power infrastructure ensures that we will
meet and exceed the evolving energy demands while maintaining adherence to sustainability.
In our diversification efforts, we are also exploring innovative projects such as OB to
M-Sand, Lignite to Methanol, and Green Hydrogen initiatives.
Our targeted initiatives, including the expansion of solar and wind power projects, are
poised to make substantial contributions to the country's goal of achieving 500 GW of
non-fossil fuel-based electricity capacity by 2030.
Empowering Communities:
At your Company, we firmly believe that lasting progress can be achieved through
inclusive growth that uplifts the communities we serve. As a socially responsible
corporate citizen, we have been carrying out developmental works in the surrounding
villages since our inception, focusing on the socio-economic development of our operating
regions to achieve inclusive and sustainable growth. During the financial year 2023-24, we
spent 47.36 Crore on CSR projects, with a significant focus on promoting healthcare
nutrition.
Some of our key initiatives include the construction of a Care Centre at the Government
General Hospital in Kurinjipadi, benefiting 141 villages in 53 Panchayats, and the
upgradation Primary Health Centres (PHCs) in Marungur Village and near our Corporate
Office in Perumathur Panchayat. Through these interventions, we are making significant
strides in improving quality of life for the communities surrounding our operations,
contributing to a more equitable future for all.
Towards a greener tomorrow:
In the past year, we have continued to intensify our mass tree plantation initiatives
aimed at stabilizing the slopes of mine overburden dumps, transforming mine spoil into
cultivable soil suitable for habitation.
Our investments in eco-care have resulted in the development of vibrant habitats, which
have been converted into eco-parks and eco-tourism locations, enhancing biodiversity while
serving as natural barriers against air pollution and soil erosion.
Aligned with India's Mission LiFE, a global mass movement aimed at encouraging
individual and community action to safeguard our environment, your Company is dedicated to
driving impactful positive change.
Your Company's strategic initiatives encompass a broad of environmental improvement
programs. These include eco-restoration in our mines, extensive afforestation efforts, and
rainwater harvesting projects. We prioritize waste utilization biodiversity conservation
while implementing effective energy management practices. Our pollution control measures
stringent, and we are actively working to mitigate the impacts climate change. Your
Company is also in process of setting Net target in alignment with Science-based Targets
and contributing to India's net zero goals.
By integrating these initiatives, your Company aims to contribute significantly to the
Mission LiFE movement, driving a culture of environmental responsibility that extends from
our operations to the communities we serve. Together, we can make a lasting of difference
in protecting and preserving our planet for future generations.
For our proactive measures in environmental management, we have received numerous
accolades for our efforts, including the prestigious GEEF Global Environment Award 2024 in
the Platinum category and the Greentech Environmental Excellence Award 2023. These
recognitions reflect our dedication to maintaining high environmental standards and
implementing effective management practices across all our operations.
Acknowledgement:
I extend my heartfelt gratitude to all our stakeholders whose contributions have been
instrumental in driving the organization's progress and achievements this year. I would
like to specifically acknowledge the support of the Ministry of Coal, Ministry of Power,
Ministry of Environment, Forest and Climate Change, NITI Aayog, DPE, DIPAM, and various
other ministries of the Government of India, as well as the State Governments, District
Administration and other stakeholders, all of whom have played a vital role in
facilitating our work. My sincere thanks also goes to the DISCOMs, customers, investors,
bankers, auditors, CERC, APTEL, CEA, and other authorities and agencies for their
continued trust and support.
Lastly, I would like to express profound admiration and gratitude to our dedicated
employees and the Associations of Officers and Recognized Unions for their unwavering
commitment to the development and growth of your Company.
Our vision is centered on driving sustainable growth and creating exceptional value for
your Company and stakeholders. As we look to the future, we are enthusiastic about the
journey ahead and confident in our ability to achieve these objectives. This confidence is
rooted in the unwavering support of our dedicated partners and robust well-wishers, whose
collaboration and commitment are essential to our success. Together, we will continue to
make a positive and and lasting impact.
With best regards,
Prasanna Kumar Motupalli
Chairman and Managing Director