Dear Members,
It is a great honor to present the 48th Annual Report of your Company,
offering insights into the organization structure. I extend a warm welcome to everyone
attending this Annual General Meeting. I am truly humbled to have been entrusted the
additional charge of Chairman & Managing Director of NHPC, embarking on this journey
with a deep sense of gratitude. It is both an honor and a privilege to lead our Company.
India's power sector is undergoing one of the most rapid
diversifications in the world shifting significantly from conventional to renewable
sources such as water, wind, solar and other non-fossil fuel sources. Electricity demand
in the Country has increased swiftly and is expected to grow further in the near future.
To meet this rising demand, the supply will predominantly come from Renewable Sources. I
sincerely hope that NHPC will continue to scale greater heights, contributing to India's
energy sufficiency and efficiency.
PERFORMANCE HIGHLIGHTS
Electricity is a vital component of infrastructure essential for
inclusive economic growth and national development.
The Indian power sector has demonstrated resilience and adaptability,
continuously evolving to meet emerging challenges. Hydropower plays a crucial role in
balancing the grid and meeting the peak energy demands. In light of growing environmental
concerns and India's commitment to sustainability, the Government of India has implemented
supportive policies to enhance competitiveness of clean sources of energy. Your Company's
management is actively monitoring the progress of construction projects providing
unwavering support and direction.
The past year tested our resolve as our Power Stations/ Project in the
Teesta Basin faced unprecedented flash floods caused by the outburst of Lhonak Lake in
North Sikkim. Nevertheless, our team displayed remarkable commitment and professionalism
in restoring our projects and power stations after the deluge.
NHPC is at a pivotal moment in the power sector, actively constructing
hydro & renewal energy projects with a combined capacity exceeding 10,000 MW including
the ambitious 2880 MW Dibang Multipurpose Project. Significant projects like 2000 MW
Subansiri Lower HE Project & 800 MW Parbati-II HE Project are nearing completion. I am
confident that our technical expertise and dedication will enable us to overcome
challenges and achieve our goals.
Recently, we marked a significant milestone in the Subansiri Lower HE
Project, with the successful installation of Spillway Radial Gates Nos. 7, 8 and 9 along
with the sealing arrangement on April 25, 2024. Additionally, the Dirki Nalla diversion at
the Dibang Multipurpose Project is a key step forward ensuring all-weather road access to
the project site.
I am proud to announce that NHPC's accomplishments were highlighted on
International stage at the 26th World Energy Congress (WEC) in Rotterdam, Netherlands.
NHPC signed a Memorandum of Understanding (MOU) with Ocean Sun, a Norwegian Company
specializing in Floating Solar technology.
Under the MNRE-REIA Scheme, NHPC has signed Power Purchase Agreements
(PPAs)/ Power Sale Agreements (PSAs) for 3000 MW solar power. As the Renewable Energy
Implementing Agency, NHPC will earn trading margins through this initiative.
Operating Performance Overview
As India works towards ensuring continuous energy access for all
consumers while increasing reliance on clean energy, NHPC is committed to overcoming
substantial challenges in delivering sustainable energy solutions. This year, our total
cumulative generation across all Power Stations reached 21,779 MUs with an overall annual
Plant Availability Factor (PAF) of 77.60% for financial year 2023-24. Six power stations
met their annual design energy targets while ten power stations achieved their respective
Normative PAF.
Financial Performance Overview
Despite facing numerous challenges, NHPC delivered strong financial
performance achieving a Profit After Tax (PAT) of Rs 3,743.94 crore on a standalone basis
compared to Rs 3,833.79 crore in the previous year. Total income for financial year
2023-24 was Rs 10,024.99 crore. Revenue from Operations amounted to Rs 8,404.92 crore.
I am pleased to announce that the Board of Directors has recommended a
final dividend of Rs 0.50 per equity share, totaling Rs 502.25 crore for financial year
2023-24. An interim dividend of Rs 1.40 per equity share amounting to Rs 1406.30 crore,
was paid in March 2024. Subject to approval at the 48th Annual General Meeting, the total
dividend for financial year 2023-24 will amount to Rs 1.90 per equity share, totaling Rs
1,908.55 crore.
HIGHLIGHTS OF THE YEAR
In pursuit of new business opportunities, NHPC has made significant
strides over the past year .
Major Highlights of your Company since last AGM:
1. Hon'ble Prime Minister of India, Shri Narendra Modi laid the
foundation stone for:
- India's largest hydroelectric 2,880 MW Dibang Multipurpose Project.
- 1,200 MW Jalaun Ultra Mega Renewable Energy
Power Park, a Joint Venture with Uttar Pradesh New and Renewable Energy
Development Agency (UPNEDA).
1 300 MW Solar Power Plant in Bikaner under the Government of India's
CPSU Scheme, Phase-II, Tranche-III, with total investment of over Rs 1,732 crore.
2. Hon'ble Prime Minister of India, Shri Narendra Modi also inaugurated
a 380 MW Solar Project in Jaisalmer District, Rajasthan under the REIA scheme.
3. Signed an MOU with Kerala State Electricity Board for establishing a
"Design Clinic" for project design vetting.
4. Signed a Memorandum of Agreement (MOA) with Government of Arunachal
Pradesh for the development of 1,605 MW Subansiri Upper Hydroelectric Project and 1,720 MW
Kamala Hydroelectric Project.
5. Signed an MOU with Andhra Pradesh Power Generation Corporation for
Implementing Pumped Hydro Storage and Renewable Energy Projects in joint venture mode in
Andhra Pradesh.
6. Signed an MOU with ONGC for cooperation in exploration &
development of Pumped Hydro Storage & other Renewable Projects.
7. Signed an MOU with Gujarat Power Corporation Limited for a proposed
Rs 4,000 crore investment in the Kuppa Pumped Storage Project (750 MW) in Gujarat.
8. Signed an agreement with the Japan Bank for International
Cooperation for a loan of JPY 20 billion for renewable energy projects including 300 MW
Solar power Project in Bikaner being developed under CPSE 1000 MW Scheme.
CREATING VALUE FOR NATION AND SOCIETY AT LARGE
NHPC conducted its affairs in a socially responsible manner, adhering
to high standards of integrity and ethical behavior. Our CSR & Sustainability Policy
complies with Section 135 of the Companies Act, 2013 and the Companies (Corporate Social
Responsibility Policy) Rules, 2014, addressing social, economic and environmental issues.
We are committed to impactful CSR interventions, promoting inclusive growth and fostering
long term relationships with all stakeholders based on mutual respect. In financial year
2023-24, NHPC spent Rs 85.73 crore on CSR & SD activities reflecting our commitment to
enhancing community welfare through sustainable development projects CORPORATE
GOVERNANCE
You are aware that NHPC is dedicated to the highest standards of
Corporate Governance ensuring ethical conduct and sustainable value creation for all
Stakeholders. Our adherence to best global practices enhances transparency and builds
stakeholder trust. As a listed Central Public-Sector Enterprise (CPSE), your Company
comply with SEBI regulations and DPE Guidelines on Corporate Governance. In financial year
2023-24, your Company's compliance with'DPE Guidelines on Corporate Governance' has been
rated as"Excellent"by the DPE's Corporate Governance Grading System.
RECOGNITIONS AND ACCOLADES
Your Company has received numerous awards and accolades for excellence,
reflecting our commitment to growth and performance. Your Company's efforts to grow
overall has resulted in the following notable awards being given to your Company:
1. SCOPE's 'Commendation Certificate' for 'Effective Implementation of
the RTI Act'.
2. 'Second prize' under the NTPC Rajbhasha Shield Award Scheme for
2021-22 and 2022-23 for outstanding implementation of Rajbhasha.
3. 'Second prize' in the 'Annual Report' category of 'PRSI National
Awards 2023'.
4. 'Winner' in the Power Generation-Renewables (CPSU) category of the
Dun & Bradstreet PSU AwardsRs 23.
5. Winner of 'Economic Times HR World Exceptional Employee Experience
Award 2023' in 'Large Scale Enterprise' category.
6. Awarded "India's Best Hydro & Renewable Energy Public
Sector Enterprise" award at the 16th ENERTIA Award' 23.
ACKNOWLEDGEMENT
We deeply appreciate your faith in our management, which serve as a
vital source of inspiration. With our capacity addition plans, NHPC is poised to play a
key role in the green energy movement, striving for net zero emissions. This endeavor
requires our continued focus, motivation and commitment to excellence.
I extend my gratitude to all stakeholders, business partners,
customers, CERC and various Ministries of Govt. of India, especially Ministry of Power for
their invaluable guidance. I also thank the various State Governments for their support
and express my sincere appreciation to the Board of Directors for their guidance. Finally,
I recognize the hard work of all employees in achieving our objectives.
Together, we look forward to exploring exciting opportunities that will
benefit our communities and support the growth of clean and green energy. I assure you
that the strategies of your Company will translate into sustainable returns for all
stakeholders.