India Power Corporation Ltd Management Discussions

ECONOMIC OVERVIEW Global Economic Review

In 2024, the global economy expanded at a moderate pace of 3.3%, indicating a period of relative stability, though growth remained subdued. However, as we move through 2025, the global landscape is undergoing a significant shift, driven by countries reordering their policy priorities in response to rising geopolitical tensions and growing economic challenges.

The United States has introduced a series of new tariff measures, prompting swift and forceful retaliations from major trading partners. This culminated in the implementation of near-universal tariffs on 2nd April, 2025. As a result, effective tariff rates have surged to levels not seen in over a century, delivering a sharp and damaging shock to global growth.

The situation has been compounded by the pace and unpredictability of these policy changes, which have significantly heightened economic uncertainty and made the near-term outlook increasingly volatile. This growing instability has also undermined the reliability of traditional forecasting models, making it difficult to base projections on previously dependable assumptions.

Amidst this uncertainty, global headline inflation is expected to decline more slowly than earlier anticipated. It is now projected to ease to 4.3% in 2025 and further to 3.6% in 2026. The revision reflects higher inflation estimates for advanced economies, partially offset by marginal downward adjustments in emerging markets and developing economies.

GDP growth projections

Economies	2024	2025	2026
Global Economy	3.3	2.8	3.0
Advanced Economies	1.8	1.4	1.5
Emerging Markets and Developing Economies	4.3	3.7	3.9

(Source: World Economic Outlook, April 2025)

United States: The U.S. economy is now expected to grow at 1.8% in 2025, reflecting a downward revision driven by the combined impact of restrictive monetary policy and escalating trade disruptions. Inflation is likely to remain elevated at around 3%, with recent tariff measures alone adding an estimated one percentage point. Domestic consumption is losing momentum, while the manufacturing sector is grappling with rising input costs amid persistent global supply chain pressures.

China: Chinas growth is also moderating, with forecasts revised to 4% in 2025, reflecting the impact of subdued external demand, ongoing internal deleveraging, and structural transitions toward a consumption-led economy. Inflation is expected to remain low, and could even turn deflationary. This trend raises concerns over underlying demand weakness and the potential for renewed credit stress, particularly within the property sector

Euro Area: The eurozone remains weighed down by sluggish consumption and exports, with GDP growth revised to 0.8% in 2025. Political instability in some regions and persistent energy insecurity continue to undermine investor confidence, especially in Germany and France.

Emerging Markets and Developing Economies (EMDEs): Growth across emerging market and developing economies is showing signs of moderation, with the impact particularly pronounced in countries such as Mexico, South Africa, and Argentina. High debt levels and depreciating currencies in these markets are intensifying inflationary pressures and constraining policy flexibility. At the same time, many developing nations are grappling with tighter financing conditions and declining investor interest, further deepening economic vulnerabilities.

Outlook

Despite the challenges facing the global economy, this period offers a unique opportunity to strengthen resilience and chart a more sustainable path forward. The adaptability shown by many economies under pressure signals that recovery is possible with the right mix of coordinated policies and proactive reform.

By working together to establish a stable and transparent trade environment, advancing timely debt resolution, and addressing structural imbalances, countries can support a more balanced and inclusive global recovery. Maintaining clear monetary policy direction, using macro prudential tools as needed, and implementing credible fiscal plans will help restore financial stability and protect long-term growth.

International cooperation will be essential in navigating the road ahead. With aligned strategies, strong leadership, and a commitment to shared progress, the global economy can regain momentum, rebuild buffers, and open up new opportunities for prosperity across regions.

Indian Economic Review

India has emerged as a beacon of resilience and stability, marked by consistent GDP growth, moderate inflation, and robust domestic demand, despite persistent headwinds from global markets. The countrys GDP is projected to grow by 6.5% in FY 2024-25, supported by strong performance across key sectors such as construction, trade, and financial services. This momentum reflects sustained consumption trends and strategic government spending.

Indias expanding middle class, driven by rising incomes and aspirations, is powering consumption, boosting investments, and strengthening financial markets. With growing financial awareness and access, household savings are increasingly directed into productive channels, supporting capital formation and economic stability. This shift is reshaping Indias growth story through sustained demand and deeper market participation.

GDP Growth Projections (in %)

FY 2020-21	FY 2021-22	FY 2022-23	FY 2023-24	FY 2024-25
(6.6)	8.7	7.0	7.2	6.5

Source: PIB

Inflationary pressures, while still evident, are gradually easing, buoyed by robust agricultural production and timely policy interventions that have effectively stabilised food prices. Core inflation remains under control, supported by the Reserve Bank of Indias proactive monetary measures, which have adeptly balanced demand management without hindering economic growth. As supply chains continue to recover and global commodity prices trend downward, inflation is poised to steadily realign with targeted benchmarks, fostering an increasingly favourable climate for consumer spending, investment activity, and enduring economic stability.

On the fiscal front, the governments commitment to disciplined financial management remains steadfast, with a targeted fiscal deficit of 4.9% of GDP for FY 202425, marking a significant improvement from 5.6% the previous year. Reinforcing this prudent stance, the Union Budget for FY 2025-26 has earmarked 11.21 lakh crore, approximately 3.1% of GDP, for capital expenditure. This substantial allocation underscores a strategic emphasis on accelerating infrastructure development, catalysing job creation, and stimulating growth across interdependent economic sectors.

Indias external sector is similarly poised for a measured revival. Merchandise exports are projected to gain momentum, driven by sustained global demand in key segments such as engineering goods, pharmaceuticals, and electronics. Concurrently, lower crude oil prices coupled with enhanced domestic manufacturing capabilities, bolstered by the Production-Linked Incentive (PLI) schemes, are expected to moderate import pressures. Consequently, the trade deficit is forecasted to narrow relative to the previous fiscal year. Strategic policy initiatives, encompassing new trade agreements and targeted export incentives, are further anticipated to reinforce Indias competitiveness and strengthen its standing in global markets.

INDUSTRY OVERVIEW GLOBAL POWER SECTOR

The year 2024 marked a pivotal shift in the global electricity sector, characterised by a decisive acceleration in demand and a stronger pivot toward clean energy. As electrification gathered pace across sectors and geographies, renewable sources and nuclear power assumed a central role in shaping the energy transition narrative. This shift not only reflected rising environmental consciousness but also underscored the growing dependence on electricity to power a digitally connected, climate-sensitive global economy.

Global electricity demand grew by 4.3% in 2024, significantly outpacing the 2.5% growth recorded in 2023 and well above the long-term average of 2.7% between 2010 and 2023. This jump reflects a broad-based acceleration in electrification across industries, transportation, and households.

The rise in demand was not limited to any single geography. While China contributed the most to global electricity consumption growth, almost all major regions experienced an above-average increase. In total, global consumption rose by 1,080 TWh, nearly double the average annual growth seen in the last decade.

Buildings and digital infrastructure fuel power consumption

Electricity consumption in buildings increased by more than 600 TWh in 2024, registering a 5% rise and accounting for nearly 60% of the total global increase in electricity demand. This surge was largely driven by two factors. First, prolonged and severe heatwaves, especially in countries such as China and India, led to a sharp rise in the use of air conditioning systems. Second, the growing proliferation of data centres in digitally evolving economies significantly added to power needs. These trends reflect a deeper shift in how energy is being consumed globally. Electricity use is increasingly linked not just to population growth or industrial activity, but also to digital adoption, climate variability, and lifestyle changes. As more services move online and temperature extremes become frequent, electricity demand from buildings and infrastructure is expected to continue rising.

Clean energy dominates generation growth

Global electricity generation increased by over 1,200 TWh in 2024, recording a 4% annual growth rate that exceeded the long-term average of 2.6% observed between 2010 and 2023. Clean energy sources played a dominant role in meeting this demand, contributing more than 80% of the total increase.

Fossil Fuels: Marginal Growth, Gradual Decline in Share

Fossil fuels continued to form the backbone of global electricity generation, but their growth remained subdued in 2024. Total output from fossil sources rose by just over 1%, reflecting a slowing pace as cleaner alternatives gained momentum.

Natural gas generation increased by 2.5%, supported by lower global gas prices and elevated cooling demand during hotter months. Coal-fired power rose by less than 1%, a slowdown compared to the previous year, with many markets curbing coal reliance through stricter environmental regulations and improved availability of cleaner sources.

Although fossil fuels still accounted for nearly 60% of total electricity generation, their contribution to incremental growth was modest. The energy mix is clearly shifting, with renewables and nuclear increasingly meeting new demand and reducing the growth share of traditional fuels.

Evolving Power Mix: Clean Energy Crosses a Major Milestone

In 2024, the global electricity generation mix reached a key inflection point. For the first time, the combined share of renewable and nuclear energy reached 40% of total generation, highlighting a meaningful shift in how the world powers its economies.

Coal remained the leading source of electricity, contributing 35% to total output, maintaining its position for over five decades. Natural gas followed with a stable share of more than 20%, while oil-based power generation remained minimal. However, clean energy sources made their strongest showing yet. Renewables collectively accounted for one-third of global electricity, with hydropower at 14%, wind at 8%, solar PV at 7%, and bioenergy and waste contributing 3%. Nuclear energy added another 9% to the total.

This transition illustrates a global rebalancing of energy systems. As investment, policy, and technology continue to align, clean energy is no longer an alternative it is becoming the cornerstone of future electricity generation.

INDIAN POWER SECTOR

India stands as the third-largest producer and consumer of electricity globally. In 2025, its power sector is undergoing a significant transformation driven by structural reforms, surging energy demand, and an assertive shift toward clean energy. This transition is not merely about generating more electricity; it is about building the infrastructure that underpins long-term economic growth, industrial competitiveness, and environmental responsibility.

Installed Capacity

As of 31st March, 2025, Indias total installed electricity generation capacity reached 475,761.8 MW, showcasing a balanced mix of energy sources:

• Thermal Power: 172,368.17 MW

• Hydropower: 24,728.47 MW

• Nuclear Energy: 4,928.16 MW

• Renewable Energy: 220.10 GW

While thermal power continues to play a critical role in baseload generation, its share is steadily declining in favour

of renewable alternatives. Solar energy, in particular, has experienced exponential growth, fuelled by supportive policies, declining costs, and technological innovation. Wind energy remains a steady contributor, expanding consistently across key corridors.

Reshaping the energy mix

Indias energy landscape is increasingly defined by diversification and sustainability. Solar and wind lead the renewable charge, while hydropower, biomass, and nuclear energy serve as stabilizing forces ensuring energy security and addressing the intermittency of renewables. This evolving mix reflects a strategic pivot toward a low-carbon future.

Indias clean energy agenda continues to gain momentum. Flagship programs ranging from ultra-mega solar parks to green energy corridors and hybrid renewable zones are reshaping the sector. Corporate investments are scaling rapidly across solar, wind, and emerging areas like green hydrogen, signalling robust private sector participation.

However, challenges remain. Grid integration, energy storage infrastructure, and delays in land and regulatory approvals are key areas that demand urgent attention. Overcoming these hurdles will be essential for achieving 24x7 renewable power reliability.

Outlook

Indias power sector is increasingly seen as an attractive investment destination. A supportive regulatory environment, clear demand trajectories, and a determined shift toward clean technologies offer a compelling value proposition for investors.

Innovative financing mechanisms such as green bonds, infrastructure investment trusts (InvITs), and blended capital models are gaining traction to fund the sectors next phase of growth. Simultaneously, policy emphasis on domestic manufacturing of power equipment and a push for public-private collaboration are expected to accelerate the transition.

In essence, Indias energy transformation in 2025 is more than a supply shift, it is a foundational realignment that aims to deliver sustainable, inclusive, and resilient growth for decades to come.

Budget highlights for power sector

The Union Budget 2025-26 reinforces Indias strategic vision for a clean, secure, and self-reliant energy future. It lays the groundwork for accelerating renewable adoption, modernizing infrastructure, and boosting domestic capabilities. Key highlights include:

Accelerating clean energy deployment

• Stepped-up allocations to scale solar, wind, and hydro projects across geographies.

• Tax incentives introduced to attract private capital into green ventures.

• Dedicated R&D grants for next-gen solutions in energy storage, smart grids, and hybrid systems.

Modernising distribution & grid infrastructure

• Financial support for DISCOMs to enhance efficiency, reduce AT&C losses, and improve service delivery.

• Push for smart grid and Al-enabled systems to upgrade the transmission backbone and enable real-time energy management.

Unlocking nuclear energy potential

• Proposed amendments to key legislations to pave the way for private sector participation in nuclear power.

• Long-term goal to scale nuclear capacity to 100 GW by 2047, strengthening base-load reliability in a green grid.

Building domestic capability & energy security

• Expansion of PLI schemes and production-linked incentives for solar PVs, wind turbines, batteries, and green hydrogen components.

• Focus on reducing import dependency and creating a globally competitive supply chain in clean energy.

Skilling the green workforce

• Budgetary support for skill development and reskilling programs in renewables and emerging energy technologies.

• Structured collaborations with academia, research institutes, and industry to nurture innovation and job- ready talent.

Indian Power transmission and distribution

Indias power transmission and distribution (T&D) sector is undergoing a remarkable transformation, driven by the dual imperatives of rising energy demand and the rapid growth of renewable energy. As the country moves towards a more sustainable and resilient power ecosystem, modernization of the T&D infrastructure has emerged as a strategic priority.

India is significantly expanding its national transmission network to facilitate seamless power flow across regions. The target is to increase transmission lines and transformation capacity substantially by 2032, ensuring a future-ready grid that can manage peak loads and integrate intermittent renewable sources.

Key developments include:

• Deployment of high-capacity HVDC (High Voltage Direct Current) lines to enhance long-distance power transmission.

• Expansion of inter-regional transfer capacity, helping balance supply-demand mismatches across geographies.

• Integration of advanced conductors like HTLS (High-Temperature Low-Sag), enabling capacity enhancement without extensive land use.

Technology as the catalyst

The backbone of grid modernization lies in technology. India is accelerating the adoption of next-gen solutions such as:

• FACTS (Flexible AC Transmission Systems) to optimize power flow and improve voltage stability.

• Smart grid technologies, including automation systems and remote monitoring tools, under initiatives like the Revamped Distribution Sector Scheme (RDSS).

• Digital substations and predictive maintenance tools to reduce downtime and enhance asset performance.

Renewables integration

The integration of large-scale solar and wind energy into the grid has posed unique challenges. India is addressing these through:

• Dedicated green energy corridors and renewable evacuation plans.

• Strategic investments by Power Grid Corporation to support projects like the Gujarat Hybrid Renewable Energy Park, which will contribute 30 GW to the grid.

• Grid-balancing mechanisms and storage innovations to manage variability and ensure reliability.

Strengthening the distribution end

Distribution remains the most consumer-facing segment of the value chain and the most financially stressed. Reforms are underway to improve efficiency and reduce losses:

• Privatization and public-private partnerships are being encouraged to bring in capital, accountability, and operational excellence.

• Smart metering rollouts are empowering consumers, improving billing accuracy, and enabling better load management.

• Focused investments in last-mile connectivity and automation are helping DISCOMs enhance reliability and customer experience.

The Road Ahead

With over 9 trillion earmarked for T&D modernization by 2032, Indias vision is clear: to build a grid that is intelligent, flexible, and future-ready. As the nation marches towards its net-zero goals and a $5 trillion economy, the power sector especially transmission and distribution will be the silent enabler behind this progress.

The convergence of policy support, advanced technology, and private sector participation is shaping a new era of power delivery in India one that is smarter, stronger, and truly sustainable.

Challenges and Future Prospects

Indias power sector is undergoing a significant transformation amid rising demand, renewable integration, and financial constraints. Distribution companies remain under pressure due to high losses, outdated infrastructure, and delayed subsidy disbursements, affecting the overall efficiency of the value chain. The grid is also facing challenges in integrating intermittent renewable sources like solar and wind, which require better forecasting, flexible grid operations, and energy storage. Fuel supply risks, especially for thermal power, continue to impact reliability and cost stability.

On the positive side, India is making steady progress toward its clean energy targets, supported by strong policy push for solar, wind, and green hydrogen. Technology adoption is accelerating through smart grids, smart meters, and AI- based energy management. Privatization of distribution and reforms in power markets are introducing efficiency and accountability. The growth of electric mobility and digital infrastructure is driving new demand, while energy storage and hybrid systems are being developed to support round-the-clock power availability. These shifts position Indias power sector for a more resilient, sustainable, and consumer-centric future.

COMPANYS PROGRESS IN FINANCIAL YEAR 202425

The Company, established in 1919, is a time honoured and trusted organization in the distribution sector, renowned for its reliability, service orientation, and consumer-friendly approach. With expertise in distribution management and engineering, it has built a diversified portfolio across India, encompassing power distribution, smart metering, digital transformation covering both renewable and conventional power generation.

Its license area covers 798 sq. kms.in the Asansol-Raniganj area of West Bengal, a significant hub for industrial activities in the state of West Bengal. Serving diverse consumer segments, including government establishments, industrial houses, railways, and domestic consumers. The Company has one of the lowest transmission and distribution losses in the industry and has successfully been able to maintain transmission and distribution losses below 3% despite its extensive network and large customer base. The Company plays a crucial role in providing power to critical industries among thousands of other customers within its license area. The Company has been commended for its uninterrupted and reliable power supply, as well as its commitment to delivering seamless service to consumers. Notable achievements include the completion of a 33 kV and 132 kV transmission line, enhancing power delivery efficiency. Embracing digitalization, IPCL introduced e-Bill Payment System, sate-of-the-art meter recharge platforms, adoption of various digital payment methods for consumers, advance deployment of effective methods for meter integration & smart meter installation in the network, demonstrating its commitment to innovation and customer service.

The Company has established a sustainable energy portfolio, fulfilling more than 75% of its energy needs through renewables. The Company is driving the renewable revolution through strategic initiatives aimed at integrating renewable energy sources into the grid. To achieve its green energy mix to more than 80%, the Company is procuring 200 MW of renewable power from the Solar Energy Corporation of India (SECI) and promoting distributed renewable energy systems for industrial and commercial consumers. The Company actively seeks opportunities in the renewable power sector to further bolster its green energy contributions. The Companys renewable energy initiatives, including the contracted 200 MW Renewable Energy capacity, are estimated to save 1.44 million tons of CO2 emissions annually. This has significant environmental impact and underscores the Companys commitment to environmental sustainability and combating climate change.

On the conventional power side, the Company operates a 12 MW generating unit in Asansol, West Bengal, supplying power to its license area. As part of efforts to repurpose assets and enhance system flexibility, the Company has installed and integrated a pilot Thermal Energy Storage Plant with a capacity of 250 kWh, in technological collaboration with E2S Power, a Switzerland-based technology provider. This initiative marks a strategic step towards modernizing conventional assets and promoting innovative energy solutions.

The Company possesses an asset-light renewable energy portfolio that includes long-term Power Purchase Agreements (PPAs). With decades of expertise, the Company has successfully operated wind energy projects in Gujarat, with a total operational generation capacity of 24.8 MW. In collaboration with the West Bengal Green Energy Development Corporation Limited, the Company has also established a Photo Voltaic Solar Power Plant in the Jamuria area of West Bengal. This solar power plant has capacity of 2 MW, further contributing to the Companys commitment to sustainable and clean energy generation.

A wholly-owned subsidiary, MP Smart Grid Private Limited, is engaged in a pioneering Public Private Partnership (PPP) project, installing 3.50 lakhs smart meters across five towns in Madhya Pradesh. 2.75 lakhs smart meters have already been installed which has significantly reduced average AT&C losses and contributing to Indias national smart metering mission.

We have been awarded a prestigious project by MSEDCL for the development of a 133 MW solar power plant across 26 locations in Maharashtra under the Mukhyamantri Saur Krushi Vahini Yojana 2.0, aligned with the Government of Indias Component C of PM-KUSUM Scheme for feeder-level solarisation. To execute this project, IPCL has incorporated a Special Purpose Vehicle (SPV), M/s. Parmeshi Urja Limited, a wholly-owned subsidiary, which shall develop the said project with a PPA of 25 years. In addition to strengthening the Companys renewable energy portfolio, this initiative will contribute significantly towards environmental sustainability by achieving an estimated annual carbon emissions reduction of 1.66 lakh tonnes.

This project underscores IPCLs continued commitment towards promoting green energy and supporting Indias transition to a cleaner and more sustainable energy future.

FINANCIAL AND OPERATIONAL PERFORMANCE

In the financial year ended 31st March, 2025, the Company supplied 893.46 MU of power in its licensed area in West Bengal and 27.20 MU of wind power. The total income (including Regulatory income/expenses) was recorded at Rs. 74,507.77 lakhs compared to the previous years figure of Rs. 67,334.20 lakhs. Total wind power sales amounted to Rs. 892.64 lakhs compared to the previous years figure of Rs. 1,638.05 lakhs. The standalone Profit after Tax for the financial year ended 31st March, 2025, was recorded at Rs. 422.45 lakhs compared to the previous years figure of Rs. 1509.47 lakhs.

Particulars	Financial Year
	2024-25	2023-24
Debtors turnover ratio	5.45	5.78
Interest coverage ratio	9.00	8.46
Current ratio	0.92	1.02
Debt equity ratio	0.15	0.18
Operating profit margin	5.17	8.17
Net profit margin	0.67	2.35
Return on net worth	0.44	1.48

RISK MANAGEMENT

All business activities involve risks, therefore there is a need for a structured and proactive approach to manage and mitigate the companys risks, both locally and centrally within the organisation. Well-managed risks can create opportunities and add value to the business while risks that are not well-managed can cause unfavourable incidents resulting in losses. The Companys Risk Management Policy is designed to ensure sustainable business growth with stability, and to promote a proactive approach in reporting, evaluating and resolving risks associated with the business. The Policy establishes a structured and disciplined approach to Risk Management to guide decisions on risk- related matters.

The following are the broad categories of risks faced by the Company and monitored as a part of the Risk Management Plan:

Risk identification	Risk definition	Risk mitigation
Critical infrastructure risk	The Companys operations are reliant on critical assets and widespread infrastructure. The risk or contingencies in the event of an unfavourable event would impact quality of service delivery and profitability.	Monitoring Key Performance Indicators of the infrastructure to reduce downtime or break-down of such assets in service.
Market risk	Operating in a competitive environment where the majority of the participants are public sector organisations, the business is continuously faced with the market risk of staying competitive and in the business.	The Company has adopted a competitive tariff structure wherever necessary and endeavours to extend its network to support both domestic and industrial customers.
Regulatory risk	The power industry is heavily regulated. Changes in regulation may impact business operations.	All regulatory pronouncements and decisions that directly impact the Companys business activities are continuously monitored and associated risks are quantified to the extent possible.
Cyber security risk	Increasing digitisation and digital inter-connections in the power system of the country have made the stakeholders (generators, distribution entities and load dispatch centres) exposed to increased risks of cyber-attacks and vulnerable to widespread and prolonged service disruptions and data leakage, etc.	Periodic audit and risk assessment of the Companys Information Technology infrastructure is carried out and vulnerabilities, if any, are addressed.
Sustainability risk	Principled or Ethical performance of the business with respect to its regulations and Social / Environmental responsibilities is the call of the stakeholders to maintain a sustainable business environment.	The Company is committed to ethical business practices and comply with all relevant statutes pertaining to Social / Environmental responsibilities. Periodic review and audits are conducted to ensure compliance to statutes at all time.

HUMAN RESOURCES

The Company sees Human Capital the driving force behind its growth and operational expansion by recognizing its people as the foundation and most valuable asset. India Powers strong and visionary leadership remains committed to fostering a supportive, employee-centric culture. By upholding a value-based, high-performance work ethic, the organization continues to champion a culture of ongoing improvement and excellence.

IPCLs greatest strength lies in its ability to attract and retain top talent, especially, individuals who are inspired to contribute to the companys journey toward excellence. At IPCL, creating and nurturing a great workplace is rooted in collective synergy, where employees bring their best selves to work, collaborate as a cohesive team, and thrive in an environment built on trust.

India Powers workforce represents a dynamic mix of emerging talent and experienced professionals. As of March 31, 2025, the company employs a diverse team of 358 permanent staff members, including 19 women, supported by approximately 249 contractual and outsourced personnel.

We leverage industry-leading HR practices to unlock and maximize employee potential, ensuring our workforce is equipped for the future. Our transformative initiatives include the Integrated Performance Management System (IPMS), built on the principles of Pay for Performance and Promoting Potential.

India Power champions an inclusive workplace culture, actively fostering stakeholder engagement in initiatives that create meaningful impact across the Environment, Society, People, and other key stakeholder groups.

The Company has developed and implemented a range of workshops under the theme "Inclusive Futures," aligned with the Sustainability and Social Impact Goals. These workshops address key policy areas including Human Rights, Diversity & Inclusion, Gender Sensitization, Fair Treatment, Anti-Discrimination, and the Prevention of Sexual Harassment (POSH) at the workplace.

As part of our Leadership Architecture, IPCL have introduced a Multi-Hierarchy, Multi-Domain Leadership model aimed at strengthening the leadership pipeline, deepening domain expertise, and preparing successors across all levels of the organization. The "Leading to Excellence" framework offers high-impact, modular programs that build essential leadership skills in aspiring managers while advancing the strategic capabilities of seasoned leaders. These programs blend internal and external learning, group coaching, and mentorship from senior leaders. Additionally, IPCL engaged an external facilitator to conduct a High Potential Trait Indicator (HPTI) workshop for the leadership team, aimed at identifying and nurturing key traits that signal high leadership potential.

In 2024-25, the company in collaboration with Thomas Assessment Pvt. Ltd., conducted workshops to cover 25 High-Potential and High-Performing Managers in 2 batches at the corporate office to assess their readiness on such various domains of leadership at the Corporate. The Company believes that this assessment is a significant step in the ongoing commitment to professional growth and career advancement of People Managers.

Focused training interventions were conducted to build domain-specific and leadership capabilities. Key programs included Advanced Power System Skills, Technical Loss Reduction & Power Quality, and Creative Thinking, Organizational Problem Solving & Decision-Making.

Upskilling of the Workmen and Contractual Workforce remained a critical priority with training interventions on Condition Monitoring & Maintenance of Substations and Standard Operation & Maintenance Practices in Transmission & Distribution was delivered to improve efficiency and operational quality on the ground. Recognizing the challenges of sustaining motivation among the operational workforce, a unique initiative titled "Prayaas" was launched with the aim to inspire Workmen and Contractual Staff to adopt a more mindful approach to personal and professional life, promoting happiness, purpose, and a positive work environment.

The year also saw increased emphasis on sensitizing employees to key workplace values such as Safety, Human Rights, Anti-Discrimination, and Gender Equality which has been bundled under one name called "Inclusive Futures". For the first time, dedicated Wellness Sessions were introduced for female employees, supporting them in balancing professional responsibilities with personal wellbeing.

As part of our commitment to total employee involvement, we have designed and conducted workshops focused on employee wellness, effective communication, and time and task management. To foster a culture of quality within the organization, employees were also trained in the Japanese philosophies of 5S and Kaizen through sessions led by both internal and external facilitators in 2024, with full-scale implementation planned for 2025.

Several initiatives have been undertaken for workmen, including the introduction of a QR code-based grievance redressal system at the Asansol location, wellbeing and welfare measures such as medical insurance and ambulance support across all sites, and quarterly meetings between union representatives and management to foster open dialogue and collaboration resulting in zero mandays and less IR issues.

Over the past five years, the company has actively participated in the CII HR Excellence Assessment, earning the "Significant Achievement in HR Excellence" award in both 2022 and 2023, joining a distinguished group of 15 leading Indian organizations. Six members of our HR team are also certified CII HR Excellence Assessors, actively contributing to the HR ecosystem by visiting other organizations to assess, learn, exchange and implement global best practices.

IPCL remain steadfast in its pursuit of excellence, guided by HR vision to become the most admired people-centric organization in the power sector and being Par Excellence in the Eastern Region.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

To encourage a strong culture of integrity and ethics, provide reasonable assurance on the efficient conduct of business and ensure the safeguarding of assets, prevention of frauds/ errors and compliance with the applicable regulatory requirements, the Company has robust internal control systems in place, commensurate with the size and industry in which it operates. Internal audit plays a critical role in the Companys operations and corporate governance. The Internal Auditors evaluate the Companys internal controls and help maintain operational efficiency by identifying crucial areas which require immediate attention. The key observations and recommendations from such internal audit and follow-up actions for improvement of the business processes and controls are periodically reviewed and monitored by the Audit Committee. The Internal Control Systems of the Company are being constantly evaluated and reviewed to ensure that the business operations run more effectively and efficiently.

		For and on behalf of the Board of Directors
	Raghav Raj Kanoria	Somesh Dasgupta
Place: Kolkata	Managing Director	Whole-time Director
Date: 20th May, 2025	DIN:07296482	DIN: 01298835