NHPC Ltd Directors Report

Dear Members,

The Board of Directors of your Company is pleased to present before you the 49th Annual Report of your Company, highlighting the development and progress for the financial year 2024-25 along with audited financial statements, Auditors Report thereon, Secretarial Auditors Report and review of financial statements by the Comptroller and Auditor General of India (C&AG).

Major highlights of performance of your Company are as under:

• NHPC has earned Profit After Tax (PAT) of Rs 3,083.98 crore on standalone basis in the financial year 2024-25 compared to Rs 3,721.80 crore in the previous financial year. The consolidated net profit decreased to Rs 3,411.73 crore in financial year 2024-25 from Rs 3,999.54 crore in previous financial year.

• Total income and revenue from operations were Rs 10,573.41 crore and Rs 8,994.26 crore respectively during the financial year 2024-25. Total comprehensive income and other comprehensive income for financial year 2024-25 were Rs 2,981.09 crore and (102.89) crore respectively.

• NHPCs power stations recorded overall Plant Availability Factor (PAF) of 73.94% and generated 19878 Million Units (MUs) during the year.

• Cash contribution of Rs 1,286.33 crore was made to Government of Indias exchequer through dividend (final dividend for financial year 2023-24 of Rs 338.51 crore and interim dividend for financial year 2024-25 of Rs 947.82 crore) during the financial year 2024-25.

• One of the most notable moments of the year was conferment of the Navratna status to NHPC by the Government of India in August, 2024.

• NHPC celebrated its 50th Raising Day on November 7, 2024 marking a significant milestone and reflecting glorious 50-year journey with five decades of achievements, unwavering dedication and growth.

• Commercial operation of all the four units (200 MW each) of Parbati-II Hydroelectric Project, located in Himachal Pradesh, has been declared in April, 2025.

• NHPC has received the prestigious "Great Place to Work" certification from Great Place to Work, India, recognizing our commitment to fostering a workplace culture rooted in trust, respect, dignity, inclusivity and employee recognition.

• NHPC and Bihars Department ofIndustries signed an MoU for "Intent for Investment"to develop 1000 MW Solar Energy and Green Hydrogen (GH2) mobility pilot projects in Bihar through an investment of Rs 5,500 crore.

• NHPC has commissioned 160.71 MW of the 300 MW Karnisar Solar Power Plant in Bikaner, Rajasthan.

• NHPC signed a Memorandum of Understanding (MoU) with the Global Green Growth Institute (GGGI) to promote innovative clean energy solutions, focusing on agrivoltaics, green hydrogen and sustainable financing strategies.

• NHPC Renewable Energy Limited (NHPC REL) - wholly owned subsidiary of NHPC and Tata Power Renewable Energy Limited (TPREL) have formed a strategic partnership, by signing an MoU to collaborate on Rooftop Solar Projects under PM Surya Ghar Yojna Scheme aiming for 100% solarization of government buildings of Central Ministries, States, and Union Territories by December, 2025.

• At the Dibang Multipurpose Project, we have achieved the completion of permanent approach/ bridge over crucial Sirki Nalla, a significant stride towards ensuring all-weather road access to the project site.

• NHPCs accomplishments were showcased on international stage as part of the Indian Pavilion at the 26th World Energy Congress (WEC) in Rotterdam, Netherlands.

1 FINANCIAL PERFORMANCE

The important financial highlights are given in table below:

(Rs in crore)

PARTICULARS	FINANCIAL YEAR
	2024-25	2023-24 (restated)
Revenue from operations	8,994.26	8,396.49
Profit before depreciation, interest, rate regulated income and tax	6,131.02	5,877.12
Depreciation	1,125.06	1,111.00
Profit after depreciation but before rate regulated income, interest and tax	5,005.96	4,766.12
Interest and finance charges	1,147.00	726.06
Profit after depreciation and interest but before rate regulated income and tax	3,858.96	4,040.06
Rate regulated income	141.09	233.28
Tax	916.07	551.54
Profit after depreciation, interest, rate regulated income and tax	3,083.98	3,721.80
Other Comprehensive Income (OCI)	-102.89	-24.96
Total Comprehensive Income (TCI)	2,981.09	3,696.84
Surplus from statement of profit and loss of earlier years (including Other Comprehensive Income)	14,258.95	12,253.20
Transfer from bond redemption reserve	161.95	178.69
Sub-total	17,401.99	16,128.73
Less : Appropriations
Dividend	1,908.56	1,858.33
Closing Balance of Retained Earnings including Other Comprehensive Income	15,493.43	14,270.40

1.1 REVENUE

Your Company has generated total income of Rs 10,573.41 crore during the financial year 2024-25. The total income during the financial year 2023-24 was Rs 9,996.65 crore (restated).

1.2 EXPENSES

The total expenditure during financial year 2024-25 was increased to Rs 6,714.45 crore as compared to Rs 5,956.59 crore (restated) in the previous financial year.

1.3 TOTAL COMPREHENSIVE INCOME

Total Comprehensive Income of your Company was decreased to Rs 2,981.09 crore during the financial year 2024-25 as compared to Rs 3,696.84 crore (restated) in the previous financial year.

1.4 NET WORTH

Your Companys net worth as on March 31, 2025 was Rs 38,348.48 crore as compared to Rs 37,275.95 crore (restated) at the end of previous financial year.

1.5 SHARE CAPITAL

Your Companys paid-up share capital as on March 31, 2025 was Rs 10,045.03 crore which remained unchanged during the financial year 2024-25. However, consequent to merger of wholly owned subsidiary Lanco Teesta Hydro Power Limited with NHPC w.e.f. January 27, 2025, the authorized share capital of the Company has increased to Rs 17,500 crore from Rs 15,000 crore.

1.6 TRANSFER TO RESERVES

During the year 2024-25, Company did not transfer any amount to any reserve.

2 DIVIDEND

Your Company has a consistent track record of dividend payment. The Board of Directors has recommended a final dividend of Rs 0.51 per equity share for the financial year 2024-25 amounting to Rs 512.30 crore. The above dividend is in addition to the interim dividend of Rs 1.40 per equity share amounting to Rs 1,406.30 crore paid in March, 2025. Accordingly, total dividend for the financial year 2024-25 comes to Rs 1.91 per equity share amounting to Rs 1,918.60 crore.

Your Company has a Dividend Distribution Policy in place since May, 2017 which was amended in December, 2024 pursuant to revision in guidelines on Capital Restructuring of Central Public Sector Enterprises issued by Department of Investment and Public Asset Management (DIPAM), Ministry of Finance. As per the latest Dividend Distribution Policy of the Company, broadly the dividend payment shall be 30% of PAT or 4% of the Net worth, whichever is higher which is in line with the extant guidelines of DIPAM for dividend payment. However, considering sufficient internal resources after equity requirement of CAPEX and other payments, the Board of Directors has recommended to pay dividend for the financial year 2024-25 equivalent to 5% of Net Worth of the Company which is higher than the minimum dividend as prescribed in the Dividend Distribution Policy. Accordingly, total dividend payout for financial year 2024-25 (subject to approval of final dividend by the members of the Company) @ Rs 1.91 per share will be Rs 1,918.60 crore i.e. 62% of Profit after Tax for financial year 2024-25 and 5% of Net worth as on March 31, 2025 as against total dividend pay-out of Rs 1,908.55 crore i.e. 51% of the Profit after Tax for financial year 2023-24 and 5.12% of Net worth as on March 31, 2024 in the previous year.

The Dividend Distribution Policy of the Company is available on website of the Company at https://www. nhpcindia.com/assests/pzi public/gallery/1734608696. pdf

3 OPERATIONAL PERFORMANCE

Your Companys power stations have achieved total generation of 19878 MUs during the year 2024-25 against generation of 21779 MUs during the previous year. Your Company has achieved overall Plant Availability Factor (PAF) of 73.94% during financial year 2024-25 against overall PAF of 77.60% during the previous year.

The power station wise generation and PAF during the year 2024-25 are given in table below:

NAME OF POWER STATIONS	GENERATION TARGET * (MU)	ACTUAL GENERATION (MU)	ACTUAL PAF (%)
BAIRA SIUL	709	569	83.29
LOKTAK	496	706	97.73
SALAL	3832	3230	87.79
TANAKPUR	525	453	86.28
CHAMERA-I	2500	2089	94.67
URI	3050	1940	73.16
RANGIT	355	321	86.77
CHAMERA-II	1567	1344	95.49
DHAULIGANGA	1285	1123	94.56
DULHASTI	2300	2233	92.75
TEESTA-V#	2614	-	-
SEWA-II	620	371	89.20
CHAMERA-III	1160	1012	97.31
CHUTAK	213	169	57.90
TLDP-III	622	154	16.39
NIMOO-BAZGO	250	244	92.77
URI-II	1794	1293	81.45
PARBATI-III	776	572	51.58
TLDP-IV	763	605	61.36
KISHANGANGA	1713	1292	85.23
PARBATI-II**	252	16	-
Total (Hydro)	27396	19736	73.94
WIND POWER PROJECT, JAISALMER	94	56	-
SOLAR POWER PROJECT, TAMIL NADU	100		-
Total (Wind & Solar)	194	142	-
TOTAL (NHPC)	27590	19878	73.94

Note:

* As per MoU Financial year 2024-25, Consolidated Generation Target was 32738 MUs i.e. including Generation Target of NHPC, NHDC and BSUL. Actual generation for financial year 2024-25 including NHPC, NHDC (ISPS, OSPS & Sanchi Solar) and BSUL was 25547 MUs.

** Actual Generation shown is infirm power.

# Teesta-V Power Station is under complete shutdown since October 4, 2023 due to flood induced by the glacial outburst in Lhonak Lake followed by breach of the Teesta Urja-IM Dam in upstream of Teesta-V power station.

During the financial year 2024-25:

• Seven (07) power stations viz. Loktak, Salal,Tanakpur, Chamera-I, Dulhasti, Uri-II and Nimoo Bazgo Power Stations have achieved their respective annual design energy.

• Fourteen (14) power stations viz. Loktak, Chamera-I, Chamera-II, Dhauliganga, Dulhasti, Sewa-II, Chamera-III, Nimoo Bazgo, Parbati-III, Kishanganga, Salal, Tanakpur, Uri-II and Chutak have achieved their respective NAPAF (Normative PAF).

During the financial year 2024-25, Nimoo Bazgo power station, located in Leh, Ladakh, commissioned in the year 2013, has achieved its highest ever actual generation and PAF since commissioning. The power station has generated 244 MUs during Financial year 2024-25 and also achieved PAF of 92.77%, previous highest generation and PAF was 236 MUs and 92.24% respectively during Financial year 2022-23. NHPC hydro power stations have provided ancillary services necessary for maintaining reactive power support to the Grid and Automatic Generation Control (AGC) for maintaining generation and load balance. Additionally, by effective operation and prompt response to grid frequency changes, NHPC has received net deviation charges also.

DAM-Toe Power House (3X0.8 MW) was commissioned on November 19, 2024 at Kishanganga Power Station (330 MW), located in UT of J&K. As of March 31, 2025, its cumulative generation is 2.262 MU.

Renovation & Modernization of Loktak Power Station Loktak Power Station situated in Churachandpur District of Manipur state is an integral part of Loktak Lake Multipurpose project of Government of Manipur to harness the hydro power potential of Loktak Lake fed by Khuga and Imphal River. The installed capacity of the Power Station is 105 MW with three units of 35 MW each. The Power Station was commissioned in 1983 and has completed its useful life of 35 years in May, 2018 as per CERC Regulations 2014. Accordingly, for life extension of the Power Station, CERC accorded in-principle approval for Renovation & Modernization works with financial implication of Rs 273.59 crore (including IDC & FC) as per Sep PL 2017. After completion of R&M Work, design energy of the Power Station will be 562.73 MU against the existing design energy of 448 MU. In order to undertake above work, complete shutdown of plant/shutdown of generating units were planned from November, 2024 onwards. However, due to Law and Order situation in Manipur resulting in un-availability of supply of materials, R&M works could not be taken-up on time and hence, complete shutdown of plant has been further planned during upcoming lean season in Financial year 2025-26.

4 COMMERCIAL PERFORMANCE

4.1 SALES AND REALIZATION

During the year under Report, your Companys sales from operations stood at Rs 8,994.26 crore. Further, during 2024-25, total billing was Rs 7,527.48 crore and collection was Rs 8,384.47 crore including collection on account of late payment surcharge of Rs 31.87 crore. Total collection in financial year 2024-25 including collection from Power Trading Business was Rs 8,405.97 crore.

As on March 31, 2025, the total outstanding dues of Rs 139.23 crore were pending for more than 45 days. The outstanding amount mainly pertains to Jammu and Kashmir Power Corporation Limited, Jammu & Kashmir (Rs 97.94 crore). Your Company is making all out efforts to liquidate the outstanding dues by continuous follow-up.

4.2 SIGNING OF POWER PURCHASE AGREEMENTS (PPA)

Availability of long term PPAs for our Power Stations is key to survival of Organization as this gives revenue visibility for the Organization and assured rate of return which can be utilized for business expansion.

Therefore, a conscious decision has been taken to focus on this area and execute PPAs for existing, under construction and upcoming projects for complete useful life of the projects. During the financial year, NHPC has signed following PPA in respect of power stations/upcoming Projects:

S.No.	Power Station	Beneficiary DISCOMs	Date of Signing of PPA	Validity of PPA
1	800 MW Parbati-II Power Station, Himachal Pradesh	Chhattisgarh State Power Distribution Corporation Limited	15.07.2024	40 years from COD
		Damodar Valley Corporation	07.02.2025
		West Bengal State Electricity Distribution Company Limited	28.03.2025

With sanction of number of new Hydro projects/Solar projects under CPSU scheme, NHPC has been pursuing states/ DISCOMs to tie-up the capacity of these new projects. PPA for following projects has been signed:

S.No.	Project	PPA signed	Date of Signing of PPA	Validity of PPA
Hydro Projects (Standalone)
1	2880 MW Dibang MPP, Arunachal Pradesh	Uttar Pradesh Power Corporation Limited	29.07.2024	40 years from COD
		Damodar Valley Corporation	07.02.2025
2	1856 MW Sawalkot HEP, UT of J&K	Uttar Pradesh Power Corporation Limited	29.07.2024
		Chhattisgarh State Power Distribution Corporation Limited	15.07.2024
3	240 MW Uri-I Stage-II HEP, UT of J&K	Uttar Pradesh Power Corporation Limited	29.07.2024
4	500 MW Teesta-VI HEP, Sikkim	Madhya Pradesh Power Management Company Limited	19.07.2024
		Damodar Valley Corporation	07.02.2025
		West Bengal State Electricity Distribution Company Limited	28.03.2025
Hydro Projects (JVs/Subsidiary)
1	120 MW Rangit-IV, Sikkim	Madhya Pradesh Power Management Company Limited	12.08.2024	40 years from COD
2	1000 MW Pakaldul HEP, UT of J&K	Uttar Pradesh Power Corporation Limited	27.12.2024
3	850 MW Ratle HEP, UT of J&K	Rajasthan Urja Vikas Nigam Limited	03.01.2024	40 years from COD
		Madhya Pradesh Power Management Company Limited	19.07.2024
4	624 MW Kiru HEP, UT of J&K	Uttar Pradesh Power Corporation Limited	29.07.2024
		Rajasthan Urja Vikas Nigam Limited	12.09.2024
		Chhattisgarh State Power Distribution Corporation Limited	15.07.2024
		Damodar Valley Corporation	07.02.2025
Solar Projects (Standalone)
1	200 MW (Phase XXIII) from 1125 MW Grid connected Solar PV Projects in GSECL Solar Park at Khavda (GSECL Stage 3), Gujarat	Gujarat Urja Vikas Nigam Limited	27.06.2024	25 years from COD
2	40 MW NHPC Solar Project in Ganjam, Odisha	GRIDCO, Ganjam, Odisha	27.06.2024

5 RECENTLY COMMISSIONED HYDROELECTRIC PROJECT

Your Company has recently commissioned 800 MW Parbati-II Hydroelectric Project. Brief detail of Project is as under:-

5.1 PARBATI-II H.E. PROJECT (800 MW), HIMACHAL PRADESH:

Parbati-II HE project is a run-of-the-river scheme to harness the hydro-potential of the lower reaches of Parbati River. A Concrete Gravity Dam of 83.7m height has been constructed at Village Pulga in Parbati valley to divert the river water through a 31557m long Head Race Tunnel (HRT). An underground Power House of 800 MW (4 x 200 MW) capacity has been constructed at Village Suind in Sainj valley utilizing gross head of 863m. The diverted discharge of the Parbati River is to be further augmented by diverting the discharge of various nallahs viz. Jiwa, Hurla, Pancha and Manihar falling along the HRT alignment.

Trial run of Unit#1, Unit#2 and Unit #3 was successfully completed in March, 2025 and Commercial operation of these 3 units has started from April 1, 2025. The trial run of Unit#4 was successfully completed on April 13, 2025 and COD of Unit#4 was declared from April 16, 2025.

6 STATUS OF HYDROELECTRIC PROJECTS UNDER CONSTRUCTION

At present, your Company is actively engaged in the construction of 8 Hydro Power Projects of 8514 MW Capacity (including JV & Subsidiaries). The detail is given in table below:

S. No.	PROJECT	STATE/UNION TERRITORY (UT)	INSTALLED CAPACITY (MW)
A.	STANDALONE BASIS
	i Subansiri Lower	Assam / Arunachal Pradesh	2000
	ii Dibang	Arunachal Pradesh	2880
	iii Teesta Stage-VI HE Project (It was a project of Lanco Teesta Hydro Power Limited which merged with NHPC w.e.f 27.01.2025)	Sikkim	500
		Sub-total (A)	5380
B.	THROUGH SUBSIDIARIES/JOINT VENTURES
	i. Rangit-IV HE Project (implementing through Jalpower Corporation Limited, a wholly owned subsidiary)	Sikkim	120
	ii. Pakal Dul HE Project [implementing through Chenab Valley Power Projects Limited (CVPPL), a joint venture with Jammu & Kashmir State Power Development Corporation Limited (JKSPDCL)]	UT of Jammu & Kashmir	1000
	iii. Kiru HE Project (implementing through CVPPL)		624
	iv. Kwar HE Project (implementing through CVPPL)		540
	v. Ratle HE Project (implementing through Ratle Hydroelectric Power Corporation Limited, a joint venture with JKSPDCL)		850
		Sub-total (B)	3134
		Total (A+B)	8514

6.1 NHPC STANDALONE PROJECTS

6.1.1 SUBANSIRI LOWER H.E. PROJECT - 2000 MW (8 X 250 MW), ARUNACHAL PRADESH / ASSAM

Subansiri Lower HE Project is one of the largest hydroelectric project under construction in India so far and is a run- of-the-river scheme on Subansiri River, a tributary of Brahmaputra. The project is located at Gerukamukh (Dhemaji District) / Kolaptukar (Kamle District) on the border of Assam and Arunachal Pradesh. The right bank of river Subansiri is situated in Arunachal Pradesh and left bank is in Assam. At the right bank of river Subansiri, all the major project component viz. Intake, HRT, Power House and TRC etc. are situated and on the left bank, Diversion Tunnels are located. The CCEA sanction to the project was accorded in September, 2003 and NHPC started construction works in January, 2005. The construction work was halted from December, 2011 to July, 2019 due to various reasons and ban of Honble NGT on construction activities of the Project. Honble NGT dismissed all the petitions and cleared the project vide order dated July 31, 2019. Now, the Project is in advance stage of construction. Clearance from National Dam Safety Authority (NDSA) is awaited for commercial operation of three units (250 MW each).

SALIENT FEATURES:

Location	North Lakhimpur on Assam and Arunachal Pradesh border
River	Subansiri
Capacity	2000 MW (8 x 250 MW)
Dam	Concrete Gravity Dam (116m high, 271m wide, 284m long)
Spillway Radial Gates	9 nos., 11.5m x 14.0m
Head Race Tunnel	8 nos., 9.5m dia, horse shoe shaped, 7102 m total length
Pressure Shaft	8 nos., Vertical 48 m deep. (Circular, Dia varying from 9.5 m to 7 m and length 209 m to 231 m)
Power House	Surface, 285m x 61m x 64m housing 8 units
Reservoir Capacity	Gross Storage at El 205.0, 190.0 & 181.0 M: 1365 / 923 / 720 Mcum
CCEA approval	09.09.2003
Project cost	Rs 6,285.33 crore (DecRs 2002 PL) CCEA approved Rs 26,075.54 crore (at completion cost)
Annual Generation	7422 MU in a 90% dependable year
Anticipated commissioning	All units by May 2026

Total 17 states including all seven North-Eastern states (Assam, Manipur, Meghalaya, Nagaland, Tripura, Arunachal Pradesh and Mizoram), five northern states / UTs (Haryana, Punjab, Rajasthan, Uttar Pradesh and Chandigarh) and five western states (Gujarat, Madhya Pradesh, Chhattisgarh, Maharashtra and Goa) will be benefitted from the power generated from Subansiri Lower H.E. Project.

6.1.2 DIBANG MULTIPURPOSE PROJECT - 2880 MW (12 X 240 MW), ARUNACHAL PRADESH

Dibang Multipurpose Project is a one of the largest hydropower cum flood moderation scheme of the Country. In addition, the reservoir created behind the dam will provide flood moderation benefit in the downstream, for which reservoir will be kept 40.10m below Full Reservoir Level (FRL) in monsoon period. The back water in the reservoir will travel up to a length of 41 km in Dibang River and its tributaries. The flood moderation will save erosion of agricultural land, damage to crops and further save crores of rupees being spent on flood control measures by the Government.

SALIENT FEATURES:

Location	Village Munli (Dist. Lower Dibang Valley), Arunachal Pradesh
River	Dibang
Capacity	2880 MW
Dam	278 m high, 798 m long concrete gravity
Spillway Radial Gate	Lower Level: 6 Nos.(6 m x 8 m) Upper Level: 5 Nos.(9 m x 12 m)
Diversion Tunnel	5 nos. 12 m dia, Horse Shoe Shape (Length: 1229 m to 1353 m)
Head Race Tunnel	6 nos, 9 m dia, Horse Shoe Shaped, Concrete Lined (Length: 300 m to 600 m, Total 2700 m)
Pressure Shaft	6 nos. Steel lined, 7.5m dia, Circular shaped, Inclined (Length: 231 m each)
Penstock	12 nos. Steel lined, 5.2 to 4.0 m dia, Circular shape
Power House	Underground of size 24.5 m (W) x 56.3 m (H) x 427 m (L) housing 12 units of 240 MW each, Francis Turbine
Reservoir Capacity	Gross Storage: 3510 Mcum at MWL / 3247.9 Mcum at FRL Live Storage: 1282.6 Mcum at FRL
CCEA approval	27.02.2023
Project cost	Rs 31,876.39 crore (May 2021 PL) CCEA approved. Govt. of India has extended grant for Flood Moderation and Enabling Infrastructure of Rs 6,715.55 crore.
Annual Generation	11223 MUs in 90% dependable year
Anticipated commissioning	February, 2032

STATUS OF MAJOR WORKS:

• As on March 31,2025, the overall physical progress of the project is 14.46% and financial progress is 9.99%.

• Major works of the Project have been divided into 7 packages out of which 5 packages have been awarded. The other packages are in various stages of Tendering & Evaluation Process.

• Construction of diversion tunnel and Adits are in Progress. Status of Major works are as under:

Area of Activity	Unit	Total Qty.	Executed Quantity	% Complete
DT Outlet Portal - Open Excavation	Cum	730093	354016	48.49
Additional Access Adit to Diversion tunnel	M	468	459	98.07
DT-5 :Heading Excavation	M	1230	228	18.53
DT-4 :Heading Excavation	M	1273	244	19.17
DT-3 :Heading Excavation	M	1297	103	7.94
DT-2 :Heading Excavation	M	1353	20	1.48
DT Inlet: Surface Excavation	Cum	550000	140369	25.5
MAT-1: Heading Excavation	M	364	226	62.09
MAT-2: Heading Excavation	M	588	559	95.07
MAT-2: Benching Excavation	M	588	523	88.95
CCVT: Heading Excavation	M	468	468	100
CCVT: Benching Excavation	M	468	40.0	8.55
ADIT to TC- Heading Excavation	M	156	156	100
ADIT to TC-Benching Excavation	M	156	126	80.77
ADIT to MIV Floor-Heading Excavation	M	693	545	78.64
ADIT to PH Top- Full Face Excavation	M	325	323	99.38
TC Bottom Pilot Tunnel	M	408	359	87.99

6.1.3 TEESTA STAGE-VI HE PROJECT - 500 MW (4 X 125 MW), SIKKIM

Lanco Teesta Hydro Power Limited (LTHPL) was acquired by NHPC through Corporate Insolvency Resolution Process (CIRP) in October, 2019 and was a wholly owned subsidiary of NHPC developing 500 MW Teesta VI HE Project in Sikkim. Now, LTHPL has been merged with NHPC on January 27, 2025. The project is a Run of River (RoR) Scheme to utilize the power potential of Teesta River Basin in a cascade manner.

SALIENT FEATURES:

Location	Sirwani / Tarkhola, South Sikkim, Sikkim
River	Teesta
Capacity	500 MW (4 X 125 MW)
Barrage	26.5 m high, 105 m long, 5 No. Radial Gates 15 m (W) x 17.5 m (H)
Spillway Radial Gate	3 nos, 15 m (W) x 17.5 m (H) without flap 2 Nos, 15 m (W) x 17.5 m (H) with flap
De-silting Chamber	2 nos desilting chamber with 2 cunette each
HRT	2 nos. HRT, D shape 8 m dia, Length 71 m & 92.6 m Modified Horse Shoe-Shape 9.8 m dia. Length 13712 m& 13815m.
Surge Shaft	2 no, 16m dia., 89.30 m depth
Pressure Shafts	4 nos. Pressure Shafts, 5.4m dia. (steel lined), length varying from 151m to 198 m
Power House	Underground, 142.75 m (L) x 18.5 m (W) x 52.44 m (H), 4 units of 125 MW each
Reservoir Capacity	Live Storage at FRL: 1.73 Mcum
CCEA approval	08.03.2019
Project cost	Rs 5,748.04 crore (July 2018 PL) CCEA approved
Annual Generation	2400 MUs in a 90% dependable year
Anticipated commissioning	December, 2027

STATUS OF MAJOR WORKS:

Construction works of Barrage, Excavation of HRT and Power House works are in full swing. As on March 31, 2025 the overall progress of the project is 66.31%.

Area of Activity	Unit	Total Qty.	Executed Quantity	% Complete
Barrage & Head Regulator Concreting	Cum	344713	273925	79.46
De-silting Basin Concreting	Cum	171080	97371	56.92
HRT Heading Excavation	RM	27596	21305	77.20
HRT Benching Excavation	RM	27596	7377	26.73
HRT Overt Concrete Lining	RM	27596	6439	23.40
HRT Invert Concrete Lining	RM	27596	1750	6.36
Power House Excavation	Cum	378090	366090	96.83
HM Works	%	100	58.05
E&M Works	%	100	63.90

6.2 UNDER WHOLLY OWNED SUBSIDIARIES:

6.2.1 RANGIT-IV HE PROJECT - 120 MW (3 x 40 MW), SIKKIM - Implementing through Jalpower Corporation Limited (JPCL)

JPCL was acquired by NHPC through Corporate Insolvency Resolution Process (CIRP) in March, 2021 and is a wholly owned subsidiary of NHPC developing Rangit-IV HE Project in Sikkim.

SALIENT FEATURES:

Location	Rishi village, West Sikkim, Sikkim
River	Rangit
Capacity	120 MW (3 x 40 MW)
Dam	44 m high concrete gravity dam
Spillway Radial Gate	4 nos., 10 m (W) x 14.0 m (H)
De-silting Chamber	120 m (L) x13 m (W) x 17 m (H)
Head Race Tunnel	1 no., 6.4 m dia., 6488 m length modified horse shoe shaped
Surge Shaft	1 nos. restricted orifice type, semi-underground, 18 m dia.
Pressure Shaft	01 no., 5.5 m dia., Circular, Steel lined, Underground
Power house / No. of unit & size/Turbine	Surface, 3 units of 40 MW each, Francis Turbine Size- 75.3 x 20.2 x 41.38
Reservoir Capacity	Gross Storage: 1.81 Mcum Live Storage: 1.22 Mcum
Investment approval	30.03.2021
Project cost	Rs 938.29 crore (Oct 2019 PL) investment approval
Annual Generation	507.88 MU (90% dependable year)
Anticipated commissioning	December, 2025

STATUS OF MAJOR WORKS:

Civil works of Dam & Power House, Excavation of HRT are completed. Overt lining of HRT in progress. HM works of Dam, Intake and Draft Tube completed. E&M works of Power House is under progress. As on March 31,2025, the overall progress of the project is 85.82%.

Area of Activity	Unit	Total Qty.	Executed Quantity	% Complete
Dam & Intake Excavation	Cum	493684	479474	97.12
Dam & Intake Concreting	Cum	212766	207986	97.75
De-silting Chamber Excavation	RM	480	480	100
De-silting Chamber Concreting	RM	480	480	100
HRT Heading Excavation	RM	6488	6488	100
HRT Benching Excavation	RM	6488	6327	97.51
HRT Overt Concrete Lining	RM	6488	3152	48.58
Area of Activity	Unit	Total Qty.	Executed Quantity	% Complete
HRT Invert Concrete Lining	RM	6488	0	-
Surge Shaft Concreting	RM	57.20	54	94.41
HM Works	%	100	72.10
E&M Works	%	100	81.73

6.3 UNDER SUBSIDIARY/ JOINT VENTURE COMPANIES:

6.3.1 PAKAL DUL HE PROJECT - 1000 MW (4 x 250 MW), UT OF JAMMU & KASHMIR - Implementing through Chenab Valley Power Projects Limited (CVPPL)

The project has been planned as a storage scheme and shall utilize the permissible storage under Indus Water Treaty with storage of 0.1 Million Acre Feet (MAF). The scheme envisages construction of Concrete-Face Rockfill (CFRD) Dam (highest in India) to store and carry water through two HRTs.

SALIENT FEATURES:

Location	Kishtwar District, UT of Jammu & Kashmir
River	Marusudar
Capacity	1000 MW (4 x 250 MW)
Dam	Concrete Face Rock Fill Dam (167 m high, 305 m long)
Spillway Gate	Surface Spillway- 2 nos. 12 m (W) x 16 m (H) & Tunnel spillway -2 nos. 6.2 m x 7 m
HRT	2 Nos., 7.2 m dia, Horse shoe shaped/Circular, HRT-1 - 9612 m, HRT-2- 9619 m length
Surge Shaft	2 nos. 13 m dia and 200 m height
Pressure Shaft	2 nos; 6.0 m dia. before manifold and 4 no. 3.9 m dia. after manifold (Horizontal)/ 4 nos., 3.9 m dia, circular (Vertical) Penstock- 4 nos; 2.9m
Rated Head	397.30 m
Reservoir Capacity	Gross Storage: 125.4 Mcum (at FRL) Live Storage: 108.39 Mcum
CCEA Approval	28.10.2014
Project cost	Rs 8,112.12 crore (March 2013 PL) CCEA approved
Annual generation	3230.18 MU in a 90% dependable year
Anticipated commissioning	September, 2026

STATUS OF MAJOR WORKS:

As on March 31,2025, the overall progress of the project is 68%. Status of major components of Project are as under: Dam: River diversion, construction of upstream and downstream coffer dam, dam stripping, excavation in cut off wall area, and heading excavation of Tunnel Spillway, HRT excavation (except Dismantling Portion) completed.

Area of Activity	Unit	Total Qty.	Executed Quantity	% Complete
CFRD Rock filling	Cum	7546000	4462838	59
HRT Lining (DBM) portion	M	4116.8	2585	63
Surface excavation of Power Intake incl. Gate shaft platform	Cum	447500	366196	81.8
Surface excavation of Tunnel Spillways Outlet, Inlet and Gate Shaft Platform	Cum	420000	400365	95
Surface excavation of Surface Spillway	Cum	778000	762807	98

Powerhouse: Excavation of Power House cavern, MIV cavern, Transformer cavern, Valve House cavern, Tail Race Tunnel and Pothead yard, completed. Concreting upto machine hall for all 4 units completed.

Area of Activity	Unit	Total Qty.	Executed Quantity	% Complete
Powerhouse concreting	Cum	54000	40088	74
Vertical Pressure Shaft excavation	M	1164	1123	96
Surge Shaft-2 Slashing	M	200	117.7	59
Valve house concreting	Cum	1450	889	61

E&M Works: Detailed Engineering, manufacturing, inspection, supply and erection of E&M components are in progress. Unit: 1- Erection of Spiral case & Stay ring completed, Stator lowered in pit on November 7, 2024. Rotor build up work at PH Service Bay is in progress, Installation of Bottom ring, Discharge ring, Draft tube upper cone of Unit#1 has been completed. Installation of guide vanes competed. Turbine Runner coupled with shaft has been lowered in Unit#1 on April 2, 2025. Installation of IP Bus Duct of Unit#1 is in progress.

Unit: 2- Erection of Spiral casing & stay ring completed. Stator lowered in pit on November 30, 2024.

Unit: 3- Erection of Spiral case & stay ring completed. Stator Core build up work has been completed. In-situ machining of Unit#3 stay ring flange has been completed.

Unit: 4- Erection of Spiral casing & stay ring completed. Stator built- up work at PH Service bay is in progress.

HM Works: Detailed Engineering, manufacturing, inspection, supply & erection of HM components are in progress. Erection of Pressure shaft liner of 2.9m dia PS1A, PS1B, PS2A and PS2B completed. Erection of 6m diameter Horizontal portion and Vertical pressure shafts is in progress.

HRT-TBM Works: Excavation of HRT-1 by TBM: 3172.7m (43.2%) achieved out of 7350m. Excavation of HRT-2 by TBM: 2808.8 m (38.2%) achieved out of 7350 m. Lining Segment casting is in progress.

6.3.2 KIRU HE PROJECT - 624 MW (4 x 156 MW), UT OF JAMMU & KASHMIR - Implementing through Chenab

Valley Power Projects Limited (CVPPL)

The project has been planned as run-of-river scheme.

SALIENT FEATURES:

Location	Village Kiru / Patharnakki, Kishtwar District, UT of Jammu & Kashmir
River	Chenab
Capacity	624 MW
Dam	Concrete gravity dam (135 m high, 193 m long)
Spillway Gate	Lower Spillway- 4 nos., 9 m (W) x 12.5 m (H) Upper Spillway- 2 nos., 9 m (W) x 16.6 m (H)
Surge Shaft	1 No., restricted orifice type, semi underground, 18 m dia.
Pressure Shaft/Penstock	4 Nos., 5.5 m dia, Underground Circular steel lined, 316 m to 322 m length
Power House	Underground, 4 Units, size 182 m x 23.6 m x 51.2 m
Rated Head	117.98 m
Reservoir Capacity	Gross Storage: 41.50 Mcum at FRL Live Storage: 10.5 Mcum
CCEA Approval	08.03.2019
Project cost	Rs 4,287.59 crore (July 2018 PL) CCEA approved
Annual generation	2272.02 MU in a 90% dependable year
Anticipated commissioning	September, 2026

STATUS OF MAJOR WORKS:

As on March 31,2025 the overall progress of the project is 59.14%. Status of major component of Project are as under: Civil Package Work: Construction of coffer dams, River bed excavation and Dam foundation concreting completed after River diversion in December, 2021. The excavation of Power House Cavern, Transformer Cavern, Pressure Shaft, TRT and Power Intake, completed.

Area of Activity	Unit	Total Qty.	Executed Quantity	% Complete
Dam concreting	Cum	1200000	829341	69
Power Intake Concreting	Cum	140000	35460	25
Plunge Pool Excavation	Cum	320000	72100	22
Powerhouse concreting	Cum	49000	21281	43
Transformer Concreting	Cum	3800	2135	56

Electro-Mechanical Works: Detailed Engineering, manufacturing, inspection, supply & erection of E&M components is in progress. Erection of Draft Tube is in progress.

Hydro-Mechanical Works: Detailed Engineering, manufacturing, inspection, supply & erection of HM components is in progress. Erection of PS liner is in progress and 326 m achieved out of 1215 m.

6.3.3 KWAR HE PROJECT - 540 MW (4 x 135 MW), UT OF JAMMU & KASHMIR - Implementing through Chenab

Valley Power Projects Limited (CVPPL)

The project has been planned as run-of-river scheme.

SALIENT FEATURES:

Location	Padyarna village, Kishtwar, UT of Jammu & Kashmir
River	Chenab
Capacity	540 MW (4 x 135 MW)
Dam	Concrete gravity dam (109 m high, 195 m long)
Spillway Gate	4 nos., of orifice Spillway of 9.5 m x 13.8 m and 1 no. crest spillway of 9.5 m x 17.0 m
Surge Shaft	4 nos shaft of size 5.4 m x 7.5 m and 2 nos. galleries 10.4 m
Pressure Shaft / Penstock	4 Nos., 5.65 m dia, Underground Circular steel lined.
Power House	Underground, 4 Units, size 140 m x 23.3 m x 50 m
Rated Head	103.1 m
Reservoir Capacity	Gross Storage: 27.167 Mcum at FRL Live Storage: 9.16 Mcum
CCEA Approval	10.05.2022
Project cost	Rs 4,526.12 crore (Sept 2020 PL) CCEA approved
Annual generation	1975.54 MU in a 90% dependable year
Anticipated commissioning	December, 2027

STATUS OF MAJOR WORKS:

As on March 31,2025, the overall progress of the project is 20.8%. Status of major component of Project are as under:

Civil Package Works: River Diversion achieved on January 15, 2024. Excavation of Dam, MAT, Cable cum Ventilation Tunnel, Adit to PH, Adit to Control Block, Adit cum Surge Gallery-1 (Heading) for TRT-1, Adit to TRT completed.

Area of Activity	Unit	Total Qty.	Executed Quantity	% Complete
Dam concreting	Cum	750000	77873	10.4
Powerhouse excavation	Cum	141000	81803	58
Transformer Cavern excavation	Cum	57000	54470	96
Control Block Excavation	Cum	17500	8599	49
Adit cum Surge Gallery for TRT-2 (heading)	M	776	300	39
Surge Gallery-1 concrete lining	M	766	6	0.8
TRT-1 excavation	M	2785	558	20
TRT-2 excavation	M	2963	428	14.5

E&M Works and HM Works: The works have been awarded.

6.3.4 RATLE HE PROJECT - 850 MW (4 x 205 MW + 1 x 30 MW), UT OF JAMMU & KASHMIR - Implementing through

Ratle Hydroelectric Power Corporation Limited (RHPCL)

The project has been planned as run-of-river scheme.

SALIENT FEATURES:

Location	Drabshalla, Kishtwar, UT of Jammu & Kashmir
River	Chenab
Capacity	850 MW (4 X 205 MW + 1 X 30 MW)
Dam	133m high RCC Gravity Dam
Spillway Radial Gate	Lower Spillway: 5 nos., 10.75 m (W) x 14.20 m (H) Upper Spillway: 1 Nos, 10.75 m (W) x 16.50 m (H)
Pressure Shaft / Penstock	Main Pressure shaft (4 Nos. with dia. 7 m) & Auxiliary pressure shaft (1No. with dia 3.2m)
Power House	Underground, 221.85 m x 23.9 m x 59.1 m; Francis Turbine
Rated Head	97.39 m
Reservoir Capacity	Gross Storage: 78.71 Mcum at FRL Live Storage: 23.86 Mcum
CCEA Approval	11.02.2021
Project cost	Rs 5,281.94 crore (Nov 2018 PL) CCEA approved
Annual generation	3137 MU in a 90% dependable year
Anticipated commissioning	August, 2028

STATUS OF MAJOR WORKS:

As on March 31,2025 the overall progress of the project is 22.10%. Status of major component of Project are as under:

EPC contract for the project was awarded in January, 2022. River Diversion achieved on January 27, 2024. Power House & Transformer Cavern access tunnels and adits excavation, Road Tunnel to dam top excavation, Dam stripping, Power Intake excavation, completed.

Area of Activity	Unit	Total Qty.	Executed Quantity	% Complete
Upstream Coffer Dam concreting	Cum	35000	23288	66.5
Power House Cavern Excavation	Cum	290000	228800	79
Pressure Shaft Excavation	Cum	64000	53950	84
Surge Chamber Excavation	Cum	87000	70900	82
TRT Excavation	Cum	98000	90000	92

7 PROJECTS UNDER CLEARANCE/APPROVAL

The status of projects including projects of subsidiaries/joint ventures under various stages of clearance/approval are as under:

S. No. PROJECT	STATE/UNION TERRITORY (UT)	INSTALLED CAPACITY (MW)
A. HYDRO
STANDALONE BASIS
1 Teesta-IV	Sikkim	520
2 Sawalkot	UT of Jammu & Kashmir	1856
3 Dugar	Himachal Pradesh	500
4 Uri-I, Stage-II	UT of Jammu & Kashmir	240
	Sub-total	3116
THROUGH JOINT VENTURES/ SUBSIDIARIES
1 Kirthai-II through Chenab Valley Power Projects Limited (A Joint Venture with JKSPDCL)	UT of Jammu & Kashmir	820
2 Loktak Downstream HE Project through Loktak Downstream Hydroelectric Corporation Limited (A Joint Venture with Govt. of Manipur)	Manipur	66
Sub-total	886
Total Hydro (A)	4002
B. SOLAR
STANDALONE BASIS
1 100 MW Floating Solar Project at Rengali Reservoir	Odisha	100
	Sub-total	100
THROUGH JOINT VENTURES/ SUBSIDIARIES
1 Mirzapur Solar Park through Bundelkhand Saur Urja Limited (A Joint Venture with UPNEDA)	Uttar Pradesh	100
2 Madhogarh Solar Project through Bundelkhand Saur Urja Limited (A Joint Venture with UPNEDA)		45
Sub-total	145
Grand Total (A+B)	4247

7.1 NHPC STANDALONE

7.1.1 TEESTA-IV H.E. PROJECT (520 MW), SIKKIM

All statutory clearances received except forest clearance (stage-II) & Investment approval. Forest Clearance (Stage-II)

is pending for want of compliance under FRA-2006, for which Gram Sabha meetings at remaining 3 Gram Panchayat Units (GPUs), out of total 10 GPUs and completion of settlement of rights under FRA, 2006 are yet to be resolved. The matter is being pursued by NHPC for early resolution.

7.1.2 SAWALKOT H.E. PROJECT (1856 MW), UT OF JAMMU & KASHMIR

MoU was signed between NHPC and JKSPDCL on January 3, 2021. Agreement for handing over / taking over of Sawalkot HE Project has been signed between NHPC and JKSPDCL on December 11,2021 and NHPC has taken over the Project. MoP accorded approval on July 12, 2022 for incurring expenditure on pre-investment activities for Sawalkot HE Project for an amount of Rs 973 crore at November, 2021 PL. CEA vide letter dated December 27, 2022 vetted the cost estimates of hard cost, IDC/FC and tariff of Sawalkot HE project at completion level for an amount of Rs 22,704.80 crores including Rs 4,593.41 crores for IDC and Rs 1,124.20 crores for enabling infrastructure. FC-I&II, EC, Clearance from Defence Angle and Investment approval pending.

7.1.3 DUGAR HE PROJECT (500 MW), HIMACHAL PRADESH

MoU was signed on September 25, 2019 between NHPC and Govt. of Himachal Pradesh for implementation of the Dugar HE Project. CEA vide letter dated April 26, 2022 vetted the cost estimates of the project for an amount of Rs 4,250.20 crore at completion i.e. April, 2021 PL. FC-I & II, EC and Investment approval pending.

Govt. of Himachal Pradesh vide corrigendum/notification dated December 12, 2023 and September 30, 2024 has altered the terms & conditions agreed in Implementation Agreement for implementation of Dugar HEP by NHPC, making the project commercially unviable with revised terms & conditions.

NHPC has filed a writ petition in the Honble High Court of Shimla on February 5, 2024 to quash above Cabinet decisions/ notifications/corrigendum. The matter at present is sub-judice.

7.1.4 URI-I, STAGE-II (240 MW), UT OF JAMMU & KASHMIR

MoU has been signed between NHPC and JKSPDCL on January 3, 2021. DPR of Uri-I, Stage-II was concurred by CEA vide O.M. dated March 7, 2023 amounting to Rs 2,526.79 crore at completion level including Rs 249.45 crore for IDC and Rs 26.20 crore for enabling infrastructure. IWT Clearance, FC-I and EC received. FC-II, Implementation Agreement and Investment approval pending.

7.1.5 100 MW FLOATING SOLAR PROJECT AT RENGALI RESERVOIR, ODISHA

Modalities for implementation of 100 MW Floating Solar Project at Rengali Reservoir, Odisha in the 1st Phase is under discussion with GRIDCO Limited.

7.2 UNDER JOINT VENTURE / SUBSIDIARY COMPANIES

7.2.1 KIRTHAI-II HE PROJECT (820 MW), UT OF JAMMU & KASHMIR

MoU has been signed between NHPC and JKSPDCL on January 3, 2021 for execution of Kirthai-II (820 MW) and other Hydroelectric Projects in Jammu and Kashmir. Extension of validity of appraisal up to June 13, 2024 has been accorded by CEA on August 29, 2022. Balance investigation works are in progress in compliance to DPR concurrence. IWT, FC-I&II, EC, PIB & CCEA pending.

7.2.2 LOKTAK DOWNSTREAM HE PROJECT (66 MW), MANIPUR

The details are provided elsewhere in the Directors Report.

7.2.3 100 MW MIRZAPUR SOLAR PARK, UTTAR PRADESH

100 MW Mirzapur Solar Park, Uttar Pradesh is being implemented through Bundelkhand Saur Urja Limited (subsidiary of NHPC). PPA and Investment Approval is pending.

7.2.4 45 MW MADHOGARH SOLAR PROJECT, UTTAR PRADESH

45 MW Madhogarh Solar Project, Uttar Pradesh is being implemented through Bundelkhand Saur Urja Limited (subsidiary of NHPC). PPA and Investment Approval is pending.

8 PROJECTS UNDER SURVEY AND INVESTIGATION (S&I)

Survey & investigation for preparation of Detailed Project Reports (DPR) of some of the Hydroelectric & Pump Storage Projects under progress, are as under:

S.No.	Projects	Installed capacity (MW)
A	Hydro Electric Projects
1	Goriganga-IIIA HE Project, Uttarakhand	150
2	Dulhasti (Stage-II) H.E. Project, UT of J&K	260
3	Garba Tawaghat HEP*, Uttarakhand	630
4	Siang Upper Multipurpose Project, Arunachal Pradesh	11200
5	Siang Lower Project, Arunachal Pradesh	2700
6	Kamala HE Project, Arunachal Pradesh	1720
7	Subansiri Upper HE Project, Arunachal Pradesh	1605
	Nepal Projects
1	West Seti HE Project	800
2	SR-6 HE Project	460
3	Phukot Karnali HE Project	624
Sub Total- A	20149
B	Pump Storage Projects
1	Indira Sagar Omkareshwar, PSP, Madhya Pradesh	640
2	Masinta, PSP, Odisha	1000
3	Kengadi, Maharashtra	600
4	Kalu, Maharashtra	1350
5	Jalond, Maharashtra	2400
6	Longtharai,Tripura	800
7	Kuppa, Gujarat	900
8	Harbhangi, Odisha	300
9	Badanala Stream, Odisha	600
10	Singli PSP- Rajasthan	860
11	Paharkalan PSP-I, Rajasthan	1200
12	Paharkalan PSP-II, Rajasthan	900
13	Ghaghri PSP, Rajasthan	580
14	Gadikota, Andhra Pradesh	1200
15	Aravetipalli, Andhra Pradesh	1320
16	Deenepalli, Andhra Pradesh	750
17	Rajupalem, Andhra Pradesh	800
18	Yaganti PSP, Andhra Pradesh	1000
19	Savitri PSP, Maharashtra	2400
Sub Total - B	19600
Total (A+B)	39749

* Consent from Govt. of Nepal is still awaited for carrying out survey and investigation activities for preparation of DPR.

9 RENEWABLE ENERGY (RE) PROJECTS

Your Company is actively participating in the renewable energy growth story of India by contributing to the Govt. of Indias ambitious target of development of 50% power from non-fossil fuel sources by 2030. NHPC is making significant efforts to contribute towards Govt of Indias RE generation targets by exploring all possible opportunities to develop solar parks/Floating solar projects, develop solar power projects under CPSU Scheme, pilot Green Hydrogen Projects, Pumped Storage Projects in various potential rich states across the Country.

NHPC has already incorporated two subsidiary companies for development of RE potential namely NHPC Renewable Energy Limited (NHPC REL) (a wholly owned subsidiary for taking up Renewable Energy, Small Hydro Projects and Hydrogen Technology based projects) and Bundelkhand Saur Urja Limited (BSUL) (JV with UPNEDA to develop RE projects in Uttar Pradesh). Further, NHPC has also formed a JV Company ANGEL (APGENCO NHPC Green Energy Limited) with Andhra Pradesh Power Generation Corporation Limited (APGENCO), Andhra Pradesh for development of pumped storage hydro projects and RE projects (solar/floating solar/wind).

NHPC has been designated as Renewable Energy Implementing Agency (REIA) by MNRE. NHPC has also been designated as BESS Implementing Agency (BIA) to act as intermediary procurer for development of BESS projects anywhere in India.

9.1 POWER PLANTS UNDER OPERATION

NHPC has already commissioned 50MW Wind project and 376.49 MW Solar Power Projects (including Joint Venture/ Subsidiary Companies) totalling to 426.49 MW in different states:

S. No. Power Plants	Installed Capacity (MW)	State
1 Wind Power Project at Jaisalmer	50	Rajasthan
2 Solar Power Project at Theni & Dindigul	50	Tamilnadu
3 300 MW Karnisar Solar Power Plant, Bikaner (Under CPSU Scheme)	160.71*	Rajasthan
4 Solar Power Plant, CU Ajmer (By NHPC REL)	0.7	Rajasthan
5 Solar Power Plant, Kalpi (By BSUL)	65	Uttar Pradesh
6 Floating Solar Power Plant, Omkareswar (By NHDC)	88	Madhya Pradesh
7 Solar Power Plant, Sanchi (By NHDC)	8	Madhya Pradesh
8 Roof Top Solar	4.08	NHPC various locations
TOTAL	426.49

* COD of part capacity of 107.14 MW declared w.e.f. April 12, 2025 and 53.57 MW declared w.e.f. June 7, 2025.

Besides above, NHPC being the REIA, also commissioned 320 MW Solar Power Project at Bikaner and 380 MW Solar Power Project at Jaisalmer in the State of Rajasthan as an "Intermediary Procurer" aggregating to total 700 MW capacity commissioned under REIA mode.

9.2 PROJECTS UNDER CONSTRUCTION

NHPC, in line with the latest technological developments and advancements, is exploring road maps and strategies to scale up its renewable energy projects. Your Company is implementing 1336.97 MW of RE projects under different schemes of MNRE besides 5580 MW of Projects as REIA and 1200 MW Solar Park Project through BSUL described as under:

S.No.	Project	Capacity (MW)	State
A	EPC Mode:
i.	Solar Power Project, Kutch, Gujarat under CPSU Scheme	600	Gujarat
ii.	300 MW Karnisar Solar Power Project, Bikaner, Rajasthan under CPSU Scheme (Already commissioned 160.71 MW)	139.29	Rajasthan
iii.	Solar Power Project, N.P. Kunta, Andhra Pradesh under CPSU Scheme	100	Andhra Pradesh
iv.	Solar Power Project at GSECL Solar Park, Stage 1 Khavda, Kutch, Gujarat (Through TBCB)	200	Gujarat
v.	Solar Power Project at GSECL Solar Park, Stage 3 Khavda, Kutch, Gujarat (Through TBCB)	200	Gujarat
vi.	Floating Solar Power Project at West Kallada, Kerala	50	Kerala
vii.	Solar Power Project at Ganjam, Odisha	40	Odisha
viii.	Roof Top Solar Projects under PM Surya Ghar Yojana	7.68	Across NHPC locations
	Total	1336.97
B	1200 MW Solar Park Project, Jalaun, UP through BSUL*	-	Uttar Pradesh
C	As an Intermediary Procurer: (REIA)
i.	Solar projects under Phase-I (2000 MW Capacity)	1300	Across country
ii.	Solar Projects under MNRE Bidding Calendar for FY 2023-24	3000	Across country
iii.	FDRE Projects under MNRE Bidding Calendar for FY 2023-24	1280	Across country
	Total	5580

* Investment approval for 1200 MW Solar Park Project, Jalaun, UP implementing through BSUL was accorded on April 23, 2025. Besides above, one 25 kWe capacity Pilot Green Hydrogen Project at Leh and two pilot green hydrogen-based e-mobility projects (one at Kargil and one at Chamba, Himachal Pradesh) are under advanced stages of implementation.

9.3 NEW RENEWABLE ENERGY PROJECTS

NHPC has already awarded over 14900 MW RE project capacity under various configurations to different vendors as REIA. Back-to-back tie up for PPA with discoms are under way for further implementation of these projects. Further, Projects of 145 MW are under clearance stage. The details are as under:

S.No.	Project	Capacity (MW)	State
A	As an Intermediary Procurer: (REIA)
(i)	RE Projects under MNRE Bidding Calendar for FY 2023-24	3180	Across country
(ii)	RE Projects under MNRE Bidding Calendar for FY 2024-25	11720	Across country
Sub Total (A)		14900
B	Through Joint Ventures:
(i)	Solar Park, Mirzapur, UP, through BSUL	100	Uttar Pradesh
(ii)	Solar Project, Madhogarh, UP, through BSUL	45	Uttar Pradesh
Sub Total (B)		145
Total (A+B)		15045

9.4 NHPC UNDER DIFFERENT GOVERNMENT INITIATIVES / SCHEMES FOR RENEWABLE ENERGY SECTOR

9.4.1 CPSU Scheme:

Your Company is implementing total 1000 MW Solar Power Projects under Tranche-III of CPSU Scheme (Phase-II) which includes 300 MW Karnisar Project at Bikaner, Rajasthan, 600 MW Project at Kutch, Gujarat and 100 MW Project at N.P. Kunta, Andhra Pradesh. The projects are under implementation at various stages. 160.71 MW out of a total capacity of 300 MW Karnisar Solar Project at Bikaner has already been commissioned and balance capacity along with 100 MW Project at N.P. Kunta, Andhra Pradesh is scheduled to be commissioned during financial year 2025-26. 600 MW Project at Kutch, Gujarat is targeted to be commissioned during financial year 2026-27 aligned with the commissioning of respective ISTS sub-station for power evacuation.

9.4.2 Tariff Based Competitive Bidding (TBCB) Process:

Your Company also participates in TBCB conducted by various implementing agencies to win projects across India and has won total 400 MW Solar Power Projects viz. 200 MW Solar Project in 600 MW GSECL Solar Park at Khavda, Gujarat (Stage-1) and 200 MW Solar Project in 600 MW GSECL Solar Park at Khavda, Gujarat (Stage-3). These Projects are scheduled to be commissioned during financial year 2025-26.

9.4.3 Solar Park Scheme:

Your Company is exploring possibilities for development of several projects under Solar Park Scheme of MNRE in various potential rich states across the Country. NHPC is implementing 50 MW Grid Connected Floating Solar photovoltaic Power Project at West Kallada reservoir, Kerala and 40 MW Grid Connected Solar photovoltaic Power Project at Ganjam, Odisha. NHPC through BSUL (a Joint Venture of NHPC and UPNEDA) is also implementing 1200 MW Solar Park at Jalaun and 100 MW Solar Park at Mirzapur.

9.4.4 NHPC as Renewable Energy Implementing Agency (REIA mode):

Your Company was designated as a REIA by MNRE on June 11, 2020. The primary role is to aggregate the power purchased from different RE Power plants of selected developers through long term Power Purchase Agreement (PPA) and sell it to the distribution licensee(s)/consuming entities/open access consumers through Long Term Power Sale Agreement (PSA). PPA and PSA is signed on back-to-back basis. Trading margin shall be payable by the End Procurer to your Company being the Intermediary Procurer.

Under Phase-I, your Company awarded 2000 MW Solar Projects, out of which 320 MW capacity commissioned on December 10, 2022 and 380 MW capacity commissioned on February 7, 2024. Balance 1300 MW Projects targeted to be commissioned in financial year 2025-26.

Further, your Company was allocated 10000 MW of the Renewable Energy Projects (in REIA mode) as per the bidding Calander of MNRE for 2023-24. Out of these, NHPC has awarded 7460 MW RE Projects under different technology (3000 MW of Solar Projects, 3500 MW of Firm and Dispatchable Renewable Energy (FDRE), 960 MW of Solar-Wind Hybrid Projects) against which RE projects of 4280 MW are under implementation stage.

Also, your Company has been allocated a target to implement approximately 10200 MW (10.20 GW) in REIA mode under bidding Calander for 2024-25. Out of these NHPC has already awarded 11720 MW RE Projects (with Green Shoe option for additional capacity) under different technology (4570 MW of Solar Projects, 2350 MW of FDRE, 2400 MW of Solar + Storage, 2400 MW Solar + wind Hybrid) Projects till date and additional capacity are under tender finalization.

9.4.5 NHPC as BESS Implementing Agency (BIA mode):

Your Company has been designated as a Battery Energy Storage System (BESS) Implementing Agency (BIA) by MoP on October 17, 2024. The BIAs have been directed by MoP to take time bound action for development of BESS in accordance with the operational guidelines as well as other rules, regulations, guidelines etc. issued by Central Government and appropriate Commission. BESS capacity to the tune of 1500 MWh has been allocated to NHpC under the CPSU component with provision for Viability Gap Funding (VGF) of up to 30% of capital cost for BESS or 27 Lakh/MWh whichever is lower. VGF shall be provided by the Central Government to BIAs for disbursement to the BESS developers in five tranches based on achieving various project milestones. The applicable trading margin under BIA role shall also result as a revenue stream for NHPC for the entire BESPA period.

NHPC has already floated bids for the entire 1500 MWh BESS capacity which included 500 MWh for Kerala and 1000 MWh for Andhra Pradesh. The bids are under finalization.

9.4.6 PM Surya Ghar - Muft Bijli Yojana:

The Yojna was Launched by MNRE on February 13, 2024 with total financial outlay of Rs 75,021 crore. Your Company has also been allotted five States viz. Haryana, UT of J&K, Sikkim, Manipur and Nagaland for taking up Roof Top Solar Projects in State Govt. Offices/premises. Additionally, 8 Central Ministries/ Departments have been allocated to NHPC for installation of Roof Top Solar at the premises of these ministries. The projects under PM Surya Ghar: Muft Bijli Yojana Scheme are being taken up through NHPC Renewable Energy Limited.

9.5 GREEN HYDROGEN TECHNOLOGY The National Green Hydrogen Mission launched by MNRE in January, 2023 aims to make India a global hub for using, producing and exporting green hydrogen. Green Hydrogen Technology is at nascent stage and emerging as the future source of energy in zero carbon emission scenario. NHPC is willing to leverage the emerging opportunities of green hydrogen in power sector to fulfil the grid balancing services and also to explore the end demand of hydrogen in other sectors. In order to avail the opportunities and gain business in Green Hydrogen sector, your Company has planned to enter and explore the production of Green Hydrogen with the use of various Renewable Energy Sources which are planned to be developed in potential rich States across the Country.

To start with, your Company has initiated actions for development of Green Hydrogen Technology on pilot project basis as below:

a) Pilot Green Hydrogen Based Fuel-Cell Micro grid (25 kWe) at NBPS Guest House, Leh: The project is targeted to be commissioned during financial year 2025-26.

b) Pilot Green Hydrogen Mobility Station at

Kargil, UT of Ladakh: The project is targeted to be commissioned during the financial year 2025-26.

c) Pilot Green Hydrogen Mobility Station at

Chamba, Himachal Pradesh: The project is targeted to be commissioned during financial year 2025-26.

During the year, your Company has expressed intent and signed MoU with Govt. of Bihar during Bihar Business Connect Summit 2024 for exploring development of 1000 MW Solar Projects and Green Hydrogen mobility-based pilot project in any identified route in Bihar. At present, feasibility assessment of the renewable energy projects is underway.

9.6 PUMPED STORAGE PROJECT (PSP) SCHEMES

NHPC is actively advancing its PSP portfolio across multiple Indian states to enhance grid stability and renewable energy integration. NHPC is pursuing for development of PSPs in many states of India at various stages of development. Some of them are:

• 7390 MW in Maharashtra and Madhya Pradesh as indicated by the Ministry of Power. Key projects include Savitri (2400 MW), Kengadi (600 MW), Kalu (1350 MW), Jalond (2400 MW) in Maharashtra and Indirasagar-Omkareshwar PSP (640 MW) in Madhya Pradesh - all under various stages from PFR to DPR preparation.

• 1900 MW in Odisha, including Masinta (1000 MW), Harbhangi (300 MW) and Badanalla stream (600 MW). All under various stages from PFR to DPR preparation.

• 9770 MW of PSPs being pursued by NHPC through MoUs or Joint Ventures, such as:

o Andhra Pradesh (5070 MW) via JV with

APGENCO including Rajupalem, Yaganti, Gadikota, Deenepalli and Aravetipalli PSPs.

o Gujarat (900 MW) - Kuppa PSP under development.

o Tripura (800 MW) - Longtharai PSP. o Chhattisgarh (1000 MW) - Kurund PSPs. o Rajasthan (2000 MW) - Singli and Paharkalan under initial study.

Apart from above, NHPC has also signed MoUs with Punjab State Power Corporation Limited (PSPCL) and Oil and Natural Gas Corporation Limited (ONGC) for collaborative development of PSPs. In Madhya Pradesh, PFRs for two additional self-identified projects-Tekwa-2 (800 MW) and Satpura-2 (1500 MW) have been submitted to CEA. Varandghat (800 MW), Atvan (500 MW), Nive (1200 MW), Mutkhel (110 MW), Koyna Stage-6 (400 MW), Chikhaldara (400 MW) and Humbarli-Koyna Stage V (400 MW) which are newly identified and assessed sites in Maharashtra, are currently awaiting for allotment.

10 DIVERSIFICATION

With an objective to strengthen its role in sustainable development of clean power, NHPC has diversified in the field of renewable energy and green hydrogen energy development. For facilitating the clean energy transition and in line with the trajectory of energy markets in the Country, NHPC has diversified its business portfolio towards development of Pumped Storage Projects in the Country.

NHPC is pursuing for development of PSPs capacities across different states viz Maharashtra, Madhya Pradesh, Odisha, Andhra Pradesh, Gujarat, Chhattisgarh, Tripura and with Organizations like PSPCL and ONGC.

11 POWER TRADING BUSINESS AND POWER TRADING LICENSE

As part of business expansion and diversification program, your Company has ventured into Power Trading Business. Endeavour of Power Trading Business of the Company is to provide efficient and smart business solution to its clients, viz. Buyers/DISCOMs, Generators/Sellers, Utilities etc. In the year 2018-19, NHPC obtained Category-I license from CERC for interstate trading of electricity in whole of India. NHPC is registered at DEEP (Discovery of Efficient Electricity Price) e-bidding portal and has obtained trader membership in Indian Energy Exchange (IEX) and Power Exchange of India Limited (PXIL).

During financial year 2023-24, NHPC had traded 960.59 MUs with turnover of Rs 252.34 crore and during financial year 2024-25 NHPC has traded 1907.69 MUs with turnover of Rs 608.09 crore.

NHPC as REIA invited bid for development of 1280 MW FDRE projects. LOAs have been issued to 6 developers. NHPC has signed PSA with Uttar Pradesh and back-to- back PPAs have been signed with successful bidders. Projects are likely to be commissioned in financial year 2026-27.

12 DETAILS OF SUBSIDIARIES AND ASSOCIATE COMPANIES

During the year, APGENCO NHPC Green Energy Limited (ANGEL) was incorporated on January 23, 2025 as Joint Venture Company of NHPC (50%) and Andhra Pradesh Power Generation Corporation Limited (APGENCO) (50%) and Lanco Teesta Hydro Power Limited, which was wholly owned subsidiary of NHPC, has merged with NHPC w.e.f. January 27, 2025.

A statement containing the salient features of the financial statements of subsidiaries and associate/joint venture companies in AOC-I as per Section 129(3) of the Companies Act, 2013 and details of individual contribution of these companies in the overall performance of the Company during the financial year 2024-25 is given under Consolidated Financial Statements.

The audited financial statements of subsidiary companies are not being attached to the audited annual financial statements of the Company. In terms of Section 136 of the Companies Act, 2013, any shareholder who desires to have information on aforesaid financial statements may visit website of the Company i.e. www.nhpcindia.com. Your Company has following subsidiaries and associate/ joint venture companies as on March 31, 2025:

12.1 Subsidiary Companies:

i) NHDC Limited (NHDC):

NHDC was incorporated as a joint venture of NHPC and Government of Madhya Pradesh (GoMP) in August, 2000. The shareholding pattern of NHDC as on March 31, 2025 was; NHPC (51.08%), GoMP (26%) and Narmada Basin Projects Company Limited (wholly owned by GoMP) (22.92%). NHDC has two operating power stations viz. Indira Sagar Power Station (ISPS) (1000 MW) and Omkareshwar Power Station (OSPS) (520 MW) in Madhya Pradesh. NHDC also has two solar power projects viz. Sanchi Solar Project (8 MW) and 88 MW Omkareshwar Floating Solar Project.

During the financial year 2024-25, NHDC generated 5574.66 MUs from its power stations i.e. 3631.33 MUs from ISPS, 1832.25 MUs from OSPS, 15.02 MUs from Sanchi Solar Power Station and 96.06 MUs from Omkareshwar Floating Solar Project.

ii) Chenab Valley Power Projects Limited (CVPPL): CVPPL is a joint venture of NHPC and Jammu & Kashmir State Power Development Corporation Limited (JKSPDCL) with shareholding of 59.15% and 40.85% respectively as on March 31, 2025. CVPPL was incorporated in June, 2011. CVPPL is developing four hydro-electric projects in UT of Jammu & Kashmir viz. Pakal Dul HE Project (1000 MW), Kiru HE Project (624 MW), Kwar HE Project (540 MW) and Kirthai-II HE Project (820 MW). The status of the Projects are provided elsewhere in the Report.

iii) Ratle Hydroelectric Power Corporation Limited (RHPCL):

RHPCL was incorporated in June, 2021 as joint venture of NHPC and JKSPDCL. As on March 31, 2025, shareholding of NHPC and JKSPDCL was 57.41% and 42.59% respectively.

RHPCL is developing Ratle Hydroelectric Project (850 MW) in UT of Jammu & Kashmir. The status of the Project has been provided elsewhere in the Report.

iv) Bundelkhand Saur Urja Limited (BSUL):

BSUL is a joint venture between NHPC and Uttar Pradesh New & Renewable Energy Development

Agency (UPNEDA). BSUL was incorporated in February, 2015 for development of Solar Power Project in Tehsil Kalpi, District Jalaun, Uttar Pradesh and other conventional and non-conventional power projects entrusted by the Govt. of Uttar Pradesh. As on March 31, 2025, shareholding of NHPC and UPNEDA was 88.82% and 11.18% respectively.

BSUL is in the process of development of 1400 MW Solar Power Projects in Uttar Pradesh through various modes of implementation i.e. in EPC mode and in developer mode. BSUL has achieved the commissioning of Kalpi Solar Power Project (65 MW) in March, 2024.

The investment approval for development of 1200 MW Solar Park in Jalaun District, under Mode-8 of MNREs UMREPP Scheme has been obtained. Preparation of investment proposals for other projects, namely Mirzapur Solar Park (100 MW) and Madhogarh Solar Power Project (45 MW), is currently underway. The status of the Projects/Park has been provided elsewhere in the Report.

v) Lanco Teesta Hydro Power Limited (LTHPL): LTHPL was acquired by NHPC through Corporate Insolvency Resolution Process (CIRP) in October, 2019 and was a wholly owned subsidiary of NHPC. LTHPL was executing 500 MW Teesta VI HE Project in Sikkim. The Scheme of Amalgamation between LTHPL and NHPC has become effective on January 27, 2025. Consequently, LTHPL stands dissolved and merged with NHPC and Teesta-VI HE Project is now a project of NHPC. The status of the Project has been provided elsewhere in the Report.

vi) Jalpower Corporation Limited (JPCL):

JPCL was acquired by NHPC through CIRP in March, 2021 and equity of Rs 165 crore was infused as consideration amount pursuant to approved resolution plan. JPCL is a wholly owned subsidiary of NHPC. JPCL is developing Rangit-IV HE Project in Sikkim and construction works are in full swing. The status of Rangit-IV HE Project has been provided elsewhere in the Report.

NHPC (Transferee Company) and JPCL (Transferor Company) has filed Merger application with Ministry of Corporate Affairs consequent on receiving approval from Ministry of Power, Govt. of India. The merger of JPCL with NHPC is under process.

vii) NHPC Renewable Energy Limited (NHPC REL): NHPC REL was incorporated in February, 2022 as wholly owned subsidiary of NHPC for taking up Solar, Wind, Small Hydro and Green Hydrogen ventures. NHPC REL is exploring various renewable energy projects for expansion of its activities. The status of its Projects has been provided elsewhere in the Report.

viii) Loktak Downstream Hydroelectric Corporation Limited (LDHCL):

LDHCL is subsidiary of NHPC with 74% shareholding of NHPC and 26% shareholding of Government of Manipur as on March 31, 2025. LDHCL was incorporated in October, 2009 to execute Loktak Downstream Hydro-electric Project (66 MW) in Noney District of Manipur.

The process of initiation of closure of LDHCL is under progress subject to the approval of DIPAM, Ministry of Power and Govt. of Manipur.

12.2 Associate Companies:

i) National High Power Test Laboratory Private Limited (NHPTL):

NHPTL was incorporated in May 2009 as a joint venture between five power sector entities viz. NHPC, NTPC, Power Grid Corporation of India Limited (PGCIL), Damodar Valley Corporation (DVC) and Central Power Research Institute (CPRI), each initially holding an equal equity stake of 20%. NHPTL was established to set up an online high power test laboratory for short-circuit test facility in the Country. NHPTL has setup laboratory for testing of High Voltage Transformers (HVTR) of 400 kV level and 765 kV level at Bina, Madhya Pradesh which is already operational. During the course of its operation, NHPTL faced fund crunch. To address the same and for long term sustenance of this important testing facility, revival plan for NHPTL was agreed with Ministry of Power, Govt. of India. Pursuant to the approved revival plan, Supplementary Joint Venture Agreement was executed by all JV partners. Consequently, the revised shareholding structure of NHPTL stands as follows: PGCIL - 50% and the remaining JV partners- NHPC, NTPC, DVC and CPRI-holding 12.5% each. As on March 31,2025, shareholding of NHPC in NHPTL was 12.5%. The revival and restructuring of NHPTL underscore NHPCs commitment to sustaining strategically important power sector infrastructure in the Country.

ii) APGENCO NHPC Green Energy Limited (ANGEL):

ANGEL was incorporated in January, 2025 as a joint venture of NHPC and Andhra Pradesh Power Generation Corporation Limited with equal participation of 50% in equity by each partner to plan, promote and organize an integrated and efficient development of pumped storage hydro power projects and renewable energy (solar/ floating solar/wind) projects.

13 GLOBAL INITIATIVES

NHPC has ventured into Nepal to expand its footprint in the hydropower sector aligning with Govt. of Indias directive for CPSEs to enhance their geographic presence in the neighboring countries and evolve into globally respected multinational enterprises capable to generate substantial revenues from international operations.

NHPC is currently engaged in three hydro-electric projects in Nepal, namely West Seti, Seti River (SR6) and Phukot Karnali.

NHPC has submitted Detailed Project Reports (DPRs) for West Seti (800 MW) and Seti River-6 (460 MW) projects to the Investment Board Nepal (IBN) within the stipulated timelines. These DPRs are currently under examination by the Central Electricity Authority (CEA) and Central Water Commission (CWC) in India, as well as by IBN in Nepal. For the Phukot Karnali project (624 MW), NHPC has submitted the Inception Report and DPR Review report as per the agreed timelines. Notably, strategic discussions have been initiated for joint ventures and power purchase agreements, and the development model includes both domestic supply and cross-border electricity export, aligning with regional energy security goals. These projects are expected to significantly contribute to Nepals energy sector and help to meet its growing electricity demand.

Your Company has commissioned 14.1 MW Devighat Hydropower Project in Nepal and 60 MW Kurichu Hydropower Project in Bhutan on deposit basis. Company has already marked its footprints in countries like Nepal, Bhutan, Myanmar, Tajikistan, Nigeria and Ethiopia and is looking further to expand its business in various other countries.

14 HEALTH, SAFETY & ENVIRONMENT (HSE)

NHPC is committed to run its business with a strong environment conscience and socially responsible manner. NHPC is dedicated to protect local environment during implementation of different phases of hydropower project. It is well aware of its obligation to conserve and protect the environment. During the investigation stage probable impacts on environment and social aspects are assessed and identified by carrying out Environment Impact Assessment (EIA) study. Environmental Management Plans (EMPs) are formulated and implemented to compensate for the adverse impacts of the project by taking necessary measures.

In NHPC, Safety Manual and Safety Policy has been prepared which provides the detail of Scope, Applicability of Laws, Standard Operating Procedures (SOPs), Operations Control Procedures, Roles & Responsibilities etc. for effective Safety Management. All Power Stations/ Projects have prepared their Safety and Disaster Management Plan.

Safety Policy and Safety Manual has been placed and followed at all Power Station s/Projects of NHPC with a target of Zero hazard potential at workplace. In addition of the above, occupational Safety, Health and Working Conditions Code, 2020/Factories Act, 1948, Building and Other Construction Workers Act, 1996, Disaster Management Act, 2005, The Environment Protection Act, 1986, Hazardous Waste Rules, 2016, National Building Code and other applicable Acts, Rules & Standards are being followed at all Power Stations/Projects.

Annual Internal and External Safety Audits are being conducted at Power Stations/Projects to identify, assess and control hazards. Various type of Mock drills/trainings/ awareness camps are being conducted for awareness and also preparing the employees/stakeholders for any probable threat, disaster and risk.

Early Warning System (EWS) is installed/under progress at all Power Stations/Projects to receive the early warnings from upstream of the river. Hooters, Caution Boards are installed in Dam and Power House to sensitize public in the vicinity areas/ downstream before release of water from Dam.

Most of the power stations of Company are ISO: 9001:2015 (Quality Management System), ISO: 14001:2015 (Environmental Management System) and ISO:45001:2018 (Occupational Health and Safety Management System) certified, thus ensuring sustainable development and enrichment of quality of life of its stakeholders. Compliance to safety systems & procedures and environmental laws is regularly monitored.

Green Credit Program (GCP)

GCP is an innovative market-based mechanism designed to incentivize voluntary environmental actions across various sectors by diverse stakeholders, including individuals, communities, private sector industries, and companies.

To foster a sustainable lifestyle and environmental conservation, LiFE (Lifestyle for Environment), an initiative has been announced by the Honble Prime Minister. Under this initiative, NHPC participated in GCP in August, 2024 by selecting 25 plantation blocks covering an area of 224 hectares in Gujarat and paid Rs 1,551.47 lakh on August 6, 2024 to Indian Council of Forestry Research and Education (ICFRE), Dehradun, the Administrator for GCP.

15 CONSULTANCY SERVICES

Your Company takes up consultancy assignments within India and in its neighboring countries. The main aim is to share its best practices with fellow Organizations and other stakeholders in the hydropower sector in construction of hydro-electric projects in the geologically fragile Himalayan Region. These practices have allowed NHPC to achieve best plant availability, increased efficiency and increased plant/equipment life across its various power stations.

During the financial year 2024-25, a payment of Rs 54.22 crore has been received by NHPC for consultancy services rendered to its different clients.

16 FINANCING OF NEW PROJECTS

The financing of any new hydro power project is carried out in line with CERC Regulations and debt equity ratio is generally kept at 70:30. For solar/wind projects, debt equity ratio varies from project to project, however largely it is kept at 80:20. For equity component, the Company has sufficient internal resources to meet out future CAPEX targets. Further, the Company possesses highest domestic credit rating and international credit rating at par with sovereign rating of India. Due to low geared capital structure and strong credit credentials, the Company is better positioned to raise debt for its CAPEX requirement.

During the financial year 2024-25, your Company has raised Rs 2,250 crore through Long Term Loan from Banks, Rs 2,489 crore through issue of unsecured non-cumulative non-convertible redeemable taxable bonds (AE Series) in the nature of debentures and Rs 2,348.45 crore through Monetization of Free Cash Component (Return on Equity) of Dulhasti Power Station for next 8 years under the ambit of National Monetization Pipeline (NMP).

17 CREDIT RATINGS

• Domestic Rating

NHPC has highest domestic credit rating of AAA with stable outlook assigned by domestic credit rating agencies i.e. ICRA, CARE and India Ratings & Research for its listed bonds which indicates lower credit risk for the investors.

• International Rating

NHPC has International Credit Rating of Baa3 with stable outlook rated by the Moodys Investors Service Singapore Pte. Ltd.

18 INFORMATION TECHNOLOGY AND COMMUNICATION

NHPC considers I nformation Technology as a strategic tool for the attainment of sustainable growth in business and to improve overall productivity and efficiency. All locations of the Company including remotely located Power Stations/ Projects are connected to Corporate Office/ Regional Offices through multimode communication links using MPLS-VPN/ ILL/ VSAT Ku band/ VSAT Phones. IP Telephony has been deployed between Corporate Office/ Regional Offices and Power Stations / Projects.

Work is in progress for implementation of state-of-the- art technology; AI/BI enabled SAP based ERP solution at NHPC. This software solution will bring in latest available technologies to improve the efficiencies in core business areas. Apart from ERP, NHPC has implemented a host of other software applications/ Mobile apps to take care of day-to-day business requirements.

As per Government of India directives, e-procurement, Government e-Marketplace (GeM), e-Office, e-Sushrut HMIS, Vendor payment portal and e-Reverse auction system are operational in the Company. NHPC has implemented "Early Warning System (EWS) - e-Aabhas" an Internet Cloud based Software Application for monitoring of water level/discharge of rivers so as to raise alarms with sufficient lead time to handle disastrous situation. Accordingly, Master Control Room facility has also been set up in NHPC Corporate Office.

IT & Cyber Security Policy and Cyber-Crisis Management Plan are in place to strengthen Cyber Security Posture of the Organization. Critical IT Infrastructure including servers, data storage, communication equipment etc. have been installed at safe locations and are being managed through internal resources. NHPC Corporate Office and all Power Stations of NHPC are ISMS ISO 27001:2013 certified. A centralised End Point Security Software solution has also been implemented to protect Servers/ Desktops against Cyber threats. NHPC has been nominated as nodal agency for Sectorial CERT i.e. CERT-Hydro to guide and monitor the Cyber security related activities in the constituent member organizations.

19 HUMAN RESOURCES

Your Company boasts a strong and dedicated workforce of 4577 employees, consisting of 3166 executives and 1411 non-executives as on March 31, 2025. The above workforce includes 468 women employees. Your Company places high emphasis on attracting top talent from across the Country through competitive examinations such as GATE, NET, CLAT and professional qualifications like CA, CMA and CS. Committed to nurture and retain this talent, your Company continuously provides opportunities for skill enhancement and knowledge development. With a strong focus on lifelong learning and competency development, it strives to build employee capacity, enhance performance, and strengthen organizational capabilities. Training programs are delivered through both in-house experts and reputed external agencies.

Your Company adheres to the Government of Indias guidelines on reservations in employment for SC, ST, OBC, PwD (Persons with Disabilities), Ex-servicemen, and EWS, thereby promoting inclusive growth. In line with applicable regulations, necessary concessions and relaxations are provided to SC/ST candidates and persons with disabilities during recruitment. Further details on the representation of SC, ST, OBC, and PwD employees are given in Management Discussion & Analysis.

NHPC consistently strives to foster strong industrial relations among its stakeholders. Your Company designs and implements employee-centric HR policies with a genuine commitment to ensuring their benefits reach all levels of the workforce. However, with a declining workforce and evolving challenges in collective bargaining, the landscape of industrial relations in Public Sector Enterprises (PSEs) across India has undergone significant change. Despite these challenges, industrial relations at NHPC remained cordial and harmonious during the year, with employees actively contributing to the Companys growth.

Your Company is certified as SA 8000 compliant by Geotech Global Certification Pvt. Ltd. The SA 8000 certification is a globally recognized standard for social accountability, focusing on areas such as child labour, forced labour, health and safety, freedom of association, discrimination, working hours and remuneration. This certification reflects NHPCs commitment to maintaining high standards of social responsibility and ethical conduct in all aspects of its operations. It further reinforces our dedication to fostering a safe, fair, and inclusive work environment in line with international best practices.

Further, to effectively address the changes and keeping the welfare of the Contract Workers engaged by Contractors in R&M/Service Contracts in view, your Company has extended Uniform Higher Wages and Financial Benefits which is approximately 37%-47% over and above the Minimum Wages notified by the Central Government or the state Government as the case may be, whichever is higher. Your Company provides financial assistance of up to Rs 1.5 lakh per annum for inpatient (IPD) treatment and extends social security support of Rs 10 lakh to contract workers engaged by contractors in the event of death or permanent disability resulting from a workplace accident in addition to the payments mandated by statutory compliances. Your Company has established a robust and transparent Grievance Redressal Mechanism to address concerns and complaints from employees, stakeholders, and the public in a fair and timely manner.

The Company follows a structured, multi-tiered process to ensure that grievances related to employment, services, project-affected families (PAFs) or any operational issue are resolved effectively. Your Company ensures regular monitoring and review of grievance cases, promoting accountability, trust, and continuous improvement in its service delivery and stakeholder engagement.

To ensure a robust and transparent payment system, NHPC Limited has developed a comprehensive Contract Labour Payment Management Portal wherein details of Wages and Benefits are uploaded for Public view. In line with efforts to empower the women workforce,

NHPC has established creches and daycare facilities across its locations. Your Company has established a communication matrix outlining the various meetings and interactions conducted by management with employees with disabilities (PwD), female employees, apex unions and Associations.

During the financial year 2024-25, the Company has complied with the provisions of Maternity Benefit Act, 1961 (Act). The Company ensures all eligible women employees receive maternity leave and benefits as prescribed by the Act. NHPC supports the health and welfare of its female workforce by providing maternity leave, benefits, and a safe working environment. No violations of the Act were reported during the year. NHPC remains committed to promoting a gender-inclusive workplace in accordance with applicable laws.

20 HUMAN RESOURCE DEVELOPMENT & TRAINING

Company believes that training and development are crucial for employee growth and organizational success. The Company strived hard to keep the employees abreast with the changes happening in the global market and focuses on enhancing core competency skills in the domain specific and emerging technologies pertaining to Civil & Electrical Engineering, Design Engineering, HR, Finance, etc. and also Managerial and Soft skills. These programs range from specific skill training to broader career development initiatives. The reimagined approach to learning and development has helped the Company to provide 28323 man-days training to its employees during the period.

Employees were nominated in customized training programmes, organized at Indias leading institutes like IIMs, IITs, XLRI and ASCI, GE T&D India Limited etc. to enhance their skills for achieving higher productivity and efficiency in the Organization. A total 755 executives were sponsored in different programmes organized by the above institutes. Besides, executives were also sponsored for higher education courses like MBA and M.Tech etc. and also deputed for foreign training programmes to become aware of the global practices in the field of Renewable Energy Development, Management best practices and other areas. Special initiatives were also taken to promote diversity. Apart from female employees participation in above programs both in India and abroad, six training programs were exclusively organised for female employees out of which three were outbound programs.

Moreover, workshops and knowledge sharing sessions are organized both in physical and virtual mode for awareness and for updation of knowledge base of employees. Specially designed programs, like in the areas of Corporate Governance, are also conducted for senior officials.

21 SOCIAL INITIATIVES

NHPC is committed to fostering a vibrant and inclusive workplace culture by promoting activities that support relaxation, recreation, and active employee engagement. Through a variety of enjoyable and rejuvenating activities, the Company strives to create a positive and energetic environment that enhances overall job satisfaction while supporting the physical and mental well-being of its employees including sports events, cultural programs, yoga sessions and engaging competitions for children, all designed to strengthen relationships and foster a sense of belonging. NHPC also hosts vibrant cultural celebrations such as musical and dance performances, Kavi Sammelans and flag hoisting ceremonies where employees and their families come together to share joyful and memorable experiences.

In a historic moment of pride, NHPC and NTPC jointly commemorated their 50th Raising Day and entry into the Golden Jubilee year with a grand celebration at Bharat Mandapam, New Delhi on November 9, 2024. The event was graced by the esteemed presence of Shri Manohar Lal, Honble Union Minister of Power and Housing & Urban Affairs, as the Chief Guest and Shri Pankaj Agarwal, Secretary (Power), Government of India, as the Special Guest. During the event, Honble Minister released NHPCs special publication - a comic book titled Jal se Jyoti. This innovative publication is designed to educate young readers about the significance and process of hydropower generation. Through engaging storytelling and vibrant illustrations, the comic book aims to instill awareness and interest in clean energy among children, fostering a deeper understanding of sustainable power sources from an early age. A highlight of the evening was an enthralling musical performance by renowned playback singer Shri Abhijeet Bhattacharya whose captivating melodies created a memorable experience for all attendees.

NHPC has organized Vasant Utsav 2025 with great festive spirit at the NHPC Residential Complex to welcome the arrival of spring and to showcase the rich and diverse Indian culture. A number of stalls promoting local handicrafts, dress materials, food delicacies, puppet show etc. from various States/UTs were set up by NHPC Power Stations, Projects and Regional Offices. On this occasion, Shri R. K. Chaudhary, CMD, NHPC released a special booklet titledHauslon Ki Udaan. This inspiring publication highlights the challenges overcome and the remarkable achievements of NHPCs specially-abled employees. It serves as an honor to their resilience, dedication and invaluable contributions to the Organization, reinforcing NHPCs commitment to inclusivity and empowerment in the workplace.

Throughout the year, NHPC continued to organize a wide array of engaging activities aimed at fostering employee and family well-being. Competitions and events were held during observances such as Hindi Pakhwada, Vigilance Awareness Week, World Environment Day, National Sports Day etc. encouraging active participation and strengthening community bonds. Additionally, regular yoga sessions conducted by expert trainers at NHPCs offices and residential complexes have been instrumental in promoting a healthy balanced lifestyle for employees and their families.

22 SPORTS AND OTHER ACTIVITIES

NHPC continues to actively promote a dynamic sports culture across the Organization, encouraging employees to participate in a wide range of individual and team tournaments. In line with NHPCs Sports Policy, the Company awarded scholarships to twenty-nine promising young sportspersons during the financial year 2024-25, reaffirming its commitment to nurturing emerging talent. The recipients of NHPCs Sports Scholarships have proudly represented the Organization at numerous national and international tournaments delivering outstanding performances and bringing laurels to the NHPC family. The chairmanship of Power Sports Control Board (PSCB) under the aegis of Ministry of Power, Govt. of India which aims to promote sportsmanship and camaraderie amongst Power PSUs employees had been taken over by NHPC for financial year 2023-24 and 2024-25. NHPCs Teams participated in all the Inter CPSU Tournaments organized under the aegis of PSCB and achieved podium positions in Athletics, Badminton, Bridge, Chess and Cricket tournaments taking the medal tally to a total of 65.

Under the aegis of Bureau of Energy Efficiency (BEE), Ministry of Power, Govt. of India NHPC organized State Level Painting Competition on the theme of energy conservation in four States/UTs (J&K, Ladakh, Arunachal Pradesh and Madhya Pradesh). The winners of the State

Level Painting Competition participated in the National Level Painting Competition. Ms. Jigmet Zangdon and Ms. Akriti Sharma, participants from Ladakh and Jammu & Kashmir respectively were awarded Appreciation Prize under GroupA category by Shri Shripad Yesso Naik, Honble Minister of State for Power, Govt. of India during National Energy Conservation Day function on December 14, 2024 at New Delhi. The award recognized their talent and awareness displayed during the Painting Competition.

During the year, NHPC actively participated in various prestigious national and international exhibitions to showcase its strengths, capabilities, achievements and future roadmap. On the global stage, NHPCs accomplishments were prominently featured at the Rs 26th World Energy Congress in Rotterdam, Netherlands.

Domestically, NHPC showcased its contributions to the energy sector at several key events including RE-INVEST 2024 in Gandhinagar (Gujarat), Vibrant North East 2024 in Guwahati (Assam), the Rs 92nd ICOLD Annual Meeting & International Symposium in New Delhi, Utkarsh- Make in Odisha Conclave 2025 in Bhubaneswar (Odisha) and GRIDCON 2025 at New Delhi. NHPC further amplified its presence and featured its leadership in the power sector by participating in the Power Pavilion of the Ministry of Power, Government of India at prestigious platforms such as India International Trade Fair 2024, India Energy Week 2025 and ELECRAMA 2025 in New Delhi.

23 REHABILITATION AND RESETTLEMENT (R&R)

NHPC understands the challenges faced by populations displaced during the implementation of its projects. Rehabilitation & Resettlement Plans are formulated for Project Affected Families (PAFs) to provide economic sustenance under the provisions of The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

NHPC has formulated a Policy for reservation of certain type of works through competitive bidding for PAFs and local people residing near projects/power stations. Additionally, the skill development training is being provided to PAFs and as well as locals of the projects.

24 VIGILANCE

The objective of the vigilance function is to increase the productivity and efficiency of the Company by bringing about an improvement in system and encouraging transparency.

Your Company has a Vigilance Department headed by Chief Vigilance Officer who is an independent entity appointed by Govt. of India to ensure transparency, objectivity and quality of decision making in its operations. All the procedures are documented to monitor and handle vigilance complaints and disciplinary cases. Vigilance Department also co-ordinates with Ministry of Power, Central Bureau of Investigation (CBI), Central Vigilance Commission (CVC), Department of Personnel and Training (DoPT) and other concerned departments of the Government. In order to exercise effective supervision and for a better appreciation of the work being done by the Vigilance Units, the Bureau of Indian Standards (BIS) has conducted Surveillance Audit of the vigilance processes which concluded with satisfaction. Further, there are no vigilance cases due for dispose-off in financial year 2024- 25 except one vigilance case related to disproportionate assets and is sub-judice.

Further, as a part of preventive vigilance, circulars and guidelines are being issued regularly based on outcome of various inspections/ intensive examinations carried out from time to time. Vigilance awareness week, trainings and other vigilance awareness programmes are also being organized by the Company to promote transparency, capacity building, to address sector specific challenges and ethics in working system.

25 INTERNAL FINANCIAL CONTROLS

The Company has adequate internal financial control system in place with reference to the Financial Statements and such internal financial controls were operating effectively as at March 31, 2025. The Statutory Auditors of the Company have certified that the Company has an adequate internal financial control system with reference to the Standalone and Consolidated Financial Statements and such controls were operating effectively as at March 31,2025 based on the internal control criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by ICAI.

26 RISK MANAGEMENT

NHPC recognizes that it is exposed to a number of uncertainties, which is inherent to the power sector. The volatility of the power sector affects the financial and non- financial results of the business. To increase confidence in the achievement of Organizations objectives, NHPC has developed Risk Management Policy to remain a competitive and sustainable Organization and enhance its operational effectiveness. The details regarding Risk Management Policy are provided elsewhere in the Report.

27 PROCUREMENT FROM MICRO & SMALL ENTERPRISES

Government of India has notified Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012 to support marketing of products produced and services rendered by them. In compliance to the Policy, annual procurement plan including items to be procured from MSEs are uploaded on NHPCs website (www.nhpcindia. com) for the benefit of MSEs. The benefits to MSEs like exemption from tender fees and earnest money deposit, purchase preference, interest on delayed payments and exemption from prior experience - prior turnover criteria subject to meeting of quality and technical specifications are also extended to encourage these enterprises.

During financial year 2024-25, NHPC has procured 56.12% of the total annual procurement of products produced and services rendered by MSEs against the mandate of 25% set by Ministry of Micro, Small and Medium Enterprises, Govt. of India. Procurement also includes 4.88% from SC/ST MSEs and 6.12% from women MSEs against the sub-target of 4% and 3% respectively. During this period, 3250 MSEs were benefited out of which 175 MSEs and 494 MSEs were owned by SC/ST and Women entrepreneurs respectively.

28 IMPLEMENTATION OF OFFICIAL LANGUAGE During the year, the provisions of the Official Language Act, 1963 and Rules were complied with. Efforts were made to increase the progressive use of Official Language in accordance with the Policy of Government of India. During the period, quarterly meetings of the Official Language Implementation Committee were organized which were presided by Chairman and Managing Director/ Directors. Monthly Departmental Hindi meetings were held in all the Departments of the Corporate Office regularly. Rajbhasha Sammelan/ Conference, various training programmes as well as various competitions were organized during the year. Programmes like Hindi Pakhwada, Hindi Competitions were also organized. To encourage employees for using Hindi in official work, more than 535 Prizes were given to the employees under Hindi Incentive Schemes of the Corporation. 45th and 46th issue of Corporations Magazine namely Rajbhasha Jyoti was published successfully during the period. In addition to this, Nagar Saurabh, a Hindi Magazine of Nagar Rajbhasha Karyanvayan Samiti (NRAKAS), Faridabad was published under the aegis of NRAKAS (Karyalaya), Faridabad. Also, a compilation of self- written poems of employees namely NHPC Kavy Yatra was published on the occasion of Rajbhasha Heerak Jayanti Varsh. Honble Second sub-Committee of Parliamentary Committee on Official Language, inspected Chamera-II, Chamera-III and Parbati-III Power Stations. NHPCs various Power Stations won prizes at Rajbhasha Sammelan organized during the year.

Half yearly meetings of NRAKAS (Karyalaya), Faridabad were conducted. Hindi Competitions and Hindi Workshops were organized for member offices under NRAKAS (Karyalaya), Faridabad. Classes and exams were organized for employees registered for Courses under Hindi Teaching Scheme.

Your Companys website i.e. www.nhpcindia.com has been developed and updated continuously in bilingual operation mode i.e. Hindi and English for excellent implementation of Official Language in entire Power Sector.

29 RIGHT TO INFORMATION ACT

The Right to Information Act, 2005 (RTI Act) has been implemented in our Company to provide information to citizens and to maintain accountability and transparency. The Company has placed various documents/records on its website i.e. www.nhpcindia.com for access to all citizens of India. NHPC has designated Appellate Authority and Central Public Information Officer (CPIO) at Corporate Office and Assistant Public information Officer (APIOs) at all Power Stations/ Projects / Regional Offices / Units. During financial year 2024-25, 646 applications and 71 first stage appeals were received under RTI Act. Out of above, 644 (99.69%) applications and 71 (100%) first stage appeals were replied / disposed. Further, despite the increase in RTI applications, no second appeal was received from Central Information Commission, indicating continued transparency and qualitative improvement in our functioning.

30 CORPORATE SOCIAL RESPONSIBILITY (CSR)

CSR has been an integral part of your Companys business philosophy. Your Company is conducting its business in a socially responsible way by maintaining high level of organizational integrity and ethical behaviour, in conformity with expected standards of transparency in reporting and disclosing the performance in all spheres of its activities, demonstration of concern for social welfare, adoption of best management practices and effective operational methods to win the trust and confidence of all stakeholders. For years, your Company has played a vital role in the greater welfare of society through its various CSR initiatives. The positive impacts of these initiatives have deeply penetrated the needy sections of society, addressing the social, economic, environmental and welfare concerns of stakeholders. The CSR initiatives of your Company encompass programs on promoting Education & Skill Development, Healthcare & Sanitation, Rural Development, Women Empowerment, Environmental Sustainability, etc., in accordance with areas or subject specified in Schedule VII of the Companies Act, 2013.

Your Companys focused approach to aligning its CSR initiatives with national priorities and optimizing resource utilization has significantly maximized its socio-economic impact. Your Company is committed to making significant contributions to the community, environment and society through well-planned CSR interventions. Over time, the reach of your Companys CSR initiatives has expanded manifold, covering the intended areas effectively.

Your Company has adopted a CSR and Sustainability Policy in compliance with Section 135 of Companies Act, 2013 and the Companies (Corporate Social Responsibility Policy) Rules, 2014, along with their amendments. The major highlights of the CSR and Sustainability Policy of your Company are as under:

• Preference to the Local area around NHPCs Projects is being given by allocating at least 80% of the CSR Budget amount. However, other locations are also being selected based on the needs and as per the direction of Government of India on National schemes and campaign, wherein about 20% amount of the CSR Budget may be spent, for the larger benefit of society / environment.

• The CSR initiatives include programs in areas or subject specified in Schedule VII of the Companies Act, 2013. Expenditure on any other activity not in conformity with Schedule VII is not accounted towards CSR expenditure.

• Selection of CSR and sustainability schemes is carried out effectively to ensure that maximum benefits reach the poor, backward, and needy sections of society, while also contributing to the improvement of environmental quality.

• The CSR and Sustainability Policy of your Company has defined roles & responsibilities at various levels for proper selection, planning, execution & monitoring of CSR activities.

The CSR and Sustainability Policy is available on website of the Company at https://www.nhpcindia.com/assests/ pzi public/gallery/1681895733.pdf. The Annual Report on CSR & Sustainability of your Company for financial year 2024-25 is provided as Annexure-I to this Report.

31 CONTRACTS AND ARRANGEMENTS WITH RELATED PARTIES

Your Company has not entered into any material transaction with any of its related parties during the financial year 2024-25. Companys major related party transactions are generally with its subsidiaries and associate companies, which were entered into on arms length basis and in ordinary course of business of the Company. Accordingly, the disclosure of Related Party Transactions as required under Section 134(3)(h) of the Companies Act, 2013 in Form AOC-2 is not applicable. Attention of the Members is also drawn to Notes of the standalone financial statements, which sets out related party disclosures as per Ind AS-24.

32 VIGIL MECHANISM - POLICY ON WHISTLE BLOWER AND FRAUD PREVENTION

Your Company has framed a Whistle Blower Policy wherein Directors, employees, contractors and vendors of the Company are free to report any unethical practice, violation of applicable laws, rules, regulations or Companys Code of Conduct, that could adversely impact Companys operations, business performance and/or reputation. The Policy also allows direct access to the Chairperson of the Audit Committee. During the year, no person was denied access to the Audit Committee on issues relating to Whistle Blower Policy. The identity of the whistle blower is kept confidential so that he/she shall not be subjected to any discriminatory practice. A senior level officer has been nominated as Coordinator for effective implementation of the Policy and to deal with complaints reported under the Policy. During the year 2024-25, no complaint was received under Whistle Blower Policy. Your Company has also framed a Fraud Prevention and Detection Policy to prevent, detect and allow speedy disposal of fraud or suspected fraud. Mechanism under the Policy is appropriately communicated within the Organization across all levels and has been displayed on Companys intranet.

The Whistle Blower Policy is available at website of the Company at https://www.nhpcindia.com/assests/pzi public/gallerv/1683188102.pdf

33 PREVENTION OF SEXUAL HARASSMENT OF WOMEN AT WORKPLACE

Your Company firmly believes that workplace diversity fosters an environment that promotes employee engagement, alignment, innovation and high performance. Every employee is treated with dignity and respect, and provided equal opportunities. A comprehensive Policy on the Prevention, Prohibition, and Redressal of Sexual Harassment of Women at the Workplace, aligned with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, is in place. Internal Complaints Committees have been established at all Company locations to address complaints related to sexual harassment. Furthermore, your Company has classified sexual

harassment as misconduct under the NHPC Conduct, Discipline and Appeal Rules. Disclosures pertaining to the implementation of the Act for the financial year 2024-25 are as follows:

A	Number of complaints pending at the beginning of the financial year	0
B	Number of complaints filed during the financial year	0
C	Number of complaints disposed-off during the financial year	0
D	Number of complaints pending at the end of the financial year	0

34 DEBENTURETRUSTEES

In compliance to the requirements of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR), the details of Debenture Trustees appointed by the Company for different series of Bonds is provided at reference information of this Annual Report.

35 AWARDS & RECOGNITIONS

NHPC has been proud recipient of following awards for excellence in different areas during the financial year 2024-25:-

• Salal Power Station received the first prize for excellence in implementing official language policies from the Department of Official Language, Ministry of Home Affairs at Jaipur.

• NHPCs 94.2 MW Tanakpur Power Station (Uttarakhand) was honoured with the prestigious CBIP Award 2024 for Best Performing Hydro Power Project.

• In a testament to NHPCs organizational excellence, NHPC was honored with The Economic Times HR World Future Ready Organization Award 2024. This prestigious accolade recognized NHPCs proactive approach in areas such as upskilling employees, ESG interventions, DE&I initiatives, constant technological upgrades, employee engagement processes, robust corporate governance strategies etc.

• In recognition of NHPCs strong commitment to HR excellence, NHPC was awarded theCII HR Excellence Award for 2024-25 during the 15th CII National HR Excellence Award Confluence 2024-25.

• NHPC conferred with ET HR World Future Skills Gold Award 2024 for Diversity & Inclusion (D&I) Learning Initiatives.

• NHPC was conferred with an Honorary Award for its outstanding contribution to the development of renewable energy in Uttar Pradesh.

• NHPC was honored with the Outstanding Achievement Award in the Hydropower Generator category at the 25th Regulators and Policymakers Retreat (RPR 2025) in Belagavi, Karnataka.

• NHPC received the Indias Best Hydro & Renewable Energy Public Sector Enterprise Award at the PRAKASHmay 17th ENERTIA Awards.

• NHPC has received the prestigious “Great Place to Work" certification from Great Place to Work, India, recognizing our commitment to fostering a workplace culture rooted in trust, respect, dignity, inclusivity and employee recognition.

• NHPC was honoured with a Token of Acknowledgement & Appreciation for exemplary CSR Practices in challenging Terrains of North East India during the 6th Conference on Empowering Persons with Disabilities through Accessible & Assistive Technology, organized by ASSOCHAM.

36 MANAGEMENT DISCUSSION & ANALYSIS

36.1 INDUSTRY STRUCTURE AND DEVELOPMENT

Power is among the most critical components of infrastructure, crucial for the economic growth and welfare of nations. The existence and development of adequate power infrastructure is essential for sustained growth of the Indian economy. India is the third largest producer and consumer of electricity worldwide, with an installed power capacity of 475.21 GW. As per the

National Infrastructure Pipeline 2019-25, energy sector projects accounted for the highest share (24%) out of the total expected capital expenditure of Rs 111 lakh crore (US$ 1.4 trillion)1

Indias power generation sources range from conventional sources such as coal, lignite, natural gas, oil, hydro and nuclear power to viable non-conventional sources such as wind, solar and agricultural and domestic waste. India is committed to shift from fossil-fuels based generation to renewable energy sources by improving the energy efficiency in various sectors of economy and thereby reducing energy-related CO2 emissions towards net-zero by 2070.

Indias power sector has undergone significant changes in recent years. These changes have redefined the industry outlook and are enabling the transition of Indian power sector towards a more sustainable and competitive future, with a focus on renewable energy and efficient grid management. Driven by various policy initiatives aimed at promoting competition, improving efficiency, India is committed to increase its share of renewable energy sources in the energy mix. India aims for 500 GW of renewable energy installed capacity by 2030. Besides this, India also aims for development of production capacity of at least 5 MMT (Million Metric Tonne) per annum of Green Hydrogen, with an associated renewable energy capacity addition of about 125 GW, thereby abating nearly 50 MMT of annual greenhouse gas emissions2. During the financial year 2024-25, India has reached a significant milestone in its renewable energy journey, with the Countrys total renewable energy capacity crossing 200 GW (gigawatt). This achievement underscores Indias growing commitment to clean energy and its progress in building a greener future.

A series of concerted measures led to a 72.80% increase in generation capacity - from 275 GW in March, 2015 to ~475.21 GW in March, 2025. The Installed Generation Capacity as on March 2025 was 475.21 GW comprising of 246.93 GW thermal (comprising of Coal, Gas and Diesel), 8.18 GW Nuclear, 220.1 GW Renewables including large hydro of 47.33 GW3.

A generation capacity addition totaling to 244280.17 MW from various sources has been achieved from the year 2014-15 till March 31, 2025 comprising of 99853 MW from conventional sources (Coal, Gas and Nuclear) and 144427.17 MW from RE sources. The conventional capacity addition of 99853 MW comprises of 96453 MW of Coal and Gas, and 3400 MW of Nuclear. RE capacity addition of 144427.17 MW includes 7046.98 MW of Large Hydro (Above 25 MW) and 137380.19 MW of Renewable Energy (Solar, Wind, Biomass and Small Hydro) has been achieved since the year 2014-151.

36.2 STRATEGIC DIVERSIFICATION

NHPC is one of the Indias leading hydro power generation Company and considering upcoming huge opportunities in Renewable Energy and Green Hydrogen sector, NHPC plans to strategically tap opportunities in these sectors. Various Solar Power Projects and pilot Green Hydrogen projects are being taken up, which are under different stages of development. While NHPC will continue development of Hydro Power Projects as its core business, it would make all endeavors to expand its business in Renewable Energy development coupled with storage solutions such as Green Hydrogen and Pumped Storage Projects.

36.3 HYDROPOWER POTENTIAL IN INDIA

As per the reassessment study carried out for the period 2017-2023, exploitable identified hydro power potential in terms of installed capacity is estimated at 133410 MW, consisting of hydro-electric schemes having installed capacity above 25 MW. The identified Pump Storage potential is estimated as 83325.60 MW (as on 01.03.2025)1.

36.4 MEASURES TAKEN BY GOVERNMENT OF INDIA TO PROMOTE HYDRO POWER SECTOR

The Government of India in past had taken several Policy initiatives for hydro power development in the Country viz., National Electricity Policy, 2005, Hydro Power Policy, 2008, Revised Tariff Policy, 2016 and Right to Fair Compensation & Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. Over the period of past few years, the Government had also issued measures to promote Hydro Power Sector, which included:-

• Large Hydro-power Projects (LHPs, i.e. > 25 MW Projects) have been declared as renewable energy source with certain conditions. Ministry of Power continues to be administrative ministry for LHPs.

• Hydropower Purchase Obligation (HPO) is notified as a separate entity within Non-solar Renewable Purchase Obligation (RPO).

• Flexibility to the developers to determine tariff by back loading of tariff after increasing project life to 40 years, increasing debt-repayment period to 18 years and introducing escalating tariff to rationalize hydro power tariff.

• Budgetary Support shall be extended for Flood Moderation/Storage Hydro-Electric Projects (HEPs) and towards Cost of Enabling Infrastructure i.e. roads/ bridges. The limit of Budgetary Support for the cost of Enabling Infrastructure has been rationalized to Rs 1.0 crore/MW for projects up to 200 MW and Rs 200 crore plus Rs 0.75 crore per MW exceeding 200 MW, for projects above 200 MW. For exceptional cases the limit of budgetary support may go upto Rs 1.5 crore/MW provided sufficient justification exists. The ambit of Budgetary Support for cost of Enabling Infrastructure has also been widened.

• Waiver of ISTS charges on the transmission of power from new Hydro Power Projects, for which construction work is awarded on or before June 30, 2025 and PPA is signed on or after December 1, 2023 and on or before June 30, 2025. Subsequently, part waiver of ISTS charges, in steps of 25% from July 1,2025 to July 1, 2028, have been extended for HEPs for which construction work is awarded and PPA is signed up to June 30, 2028.

• CERC has notified Central Electricity Regulatory Commission (Terms and Conditions for Renewable Energy Certificates for Renewable Energy Generation) Regulations, 2022, wherein hydropower has been considered for Renewable Energy Certificates with a multiplier of 1.5. It will play a vital role in sale of power from upcoming hydro power stations.

36.5 GOVERNMENT INITIATIVES FOR RENEWABLE ENERGY SECTOR

The Government of India has taken various initiatives to achieve inclusive growth in Power Sector for providing cleaner and affordable power for all, including Ministry of Power, Govt. of Indias "Guidelines to promote development of Pump Storage Projects (PSP)". Guideline offers that PSPs are energy storage schemes; hence the PSPs would be kept out of the liability of free power, LADF, Upfront Premium for Project allocations.

The guidelines from CEA in July 2024 for formulation and concurrence of DPR of PSPs will further streamline project development. Under the revised guidelines, the timeline for concurrence of DPR of all types of PSPs has been reduced from 90 days to 50 days. Timeline for concurrence of DPR of HEPs has been reduced to 125 days. Furthermore, in August 2024, the Union Cabinets approval of Central Financial Assistance for equity participation (capped at 24% of the total project equity, subject to a maximum of Rs 750 crore per project) by North Eastern Region (NER) states in hydro projects through JVs with Central PSUs, with a substantial outlay and capacity target will accelerate hydro power development in the region.

Ministry of Power (MoP) had indicated additional 29 HEPs with aggregate installed capacity of 12307.5 MW in Arunachal Pradesh to be pursued by CPSUs. Further, MoP has also identified 53 HEPs (of capacity <100 MW each) with aggregate installed capacity of 3576 MW to be pursued by CPSUs in Arunachal Pradesh.

These initiatives collectively create a favorable environment for NHPC to expand its footprint in both conventional hydro and the crucial Pumped Storage Project space, contributing significantly to grid balancing and the nations Net Zero goals.

36.6 ELECTRICITY (LATE PAYMENT SURCHARGE AND RELATED MATTERS) RULES, 2022

Ministry of Power vide notification dated February 22, 2021 had first notified the Electricity (Late Payment Surcharge) Rules, 2021 (LPSC), the details of which had already been covered in last years Management Discussion & Analysis. Further, MoP has notified Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 on June 03, 2022 and its amendment on February 28, 2024.

This Rule has brought discipline among DISCOMs and has resulted in timely realisation of dues from beneficiary DISCOMs.

36.7 CERC REGULATIONS

CERC Regulations covers the following:

a. CERC Tariff Regulations, 2024:

CERC has issued CERC (Terms and Conditions of Tariff) Regulations, 2024 in March, 2024 which will be applicable for the period April 1, 2024 to March 31, 2029. Some of the major highlights of CERC Tariff Regulations 2024 which shall play a vital role in the development of hydro power sector in India had already been covered in last years Management Discussion & Analysis

b. CERC Ancillary Services Regulations, 2022:

The regulations provides a regulatory mechanism for ancillary services in the interest of reliability, safety and security of the grid. Regulations aim to provide mechanisms for procurement, through administered as well as market-based mechanisms, deployment and payment of Ancillary Services at the regional and national level for maintaining the grid frequency close to 50 Hz, and restoring the grid frequency within the allowable band as specified in the Grid Code and for relieving congestion in the transmission network, to ensure smooth operation of the power system, and safety and security of the grid.

c. CERC Deviation Settlement Mechanism Regulations, 2022:

The regulations seek to ensure, through a commercial mechanism that users of the grid do not deviate from and adhere to their schedule of drawal and injection of electricity in the interest of security and stability of the grid. As per the regulations, for a secure and stable operation of the grid, every grid connected regional entity shall adhere to its schedule as per the Grid Code and shall not deviate from its schedule.

36.8 SWOT ANALYSIS

(i) STRENGTHS

• Established track record in developing hydroelectric projects & experienced manpower

NHPC possesses rich experience and expertise in developing hydroelectric projects across the Country. NHPC has a competent and committed workforce, which has extensive experience in the industry with capabilities and expertise in conceptualization, construction, commissioning and operation of hydroelectric projects. Their skills, industry knowledge and experience provide significant competitive advantage to the Company.

• Capabilities from concept to commissioning including in-house Design & Engineering NHPC has a full-fledged Design division dedicated to cater the design and engineering requirements of its projects. The in-house design team along with extensive experience in hydro power sector gives NHPC an edge over other hydro power companies. NHPC is using the latest Geophysical Exploration techniques on site for data acquisition, processing, interpretation and preparation of in-house reports. NHPC is the only hydro utility in India having expertise in technical gamut of engineering geophysical explorations such as Seismic Tomography, Electrical Resistivity Tomography, Seismic Refraction Tomography and Ground Penetrating Radar, which provide sub-surface information in an effective and economic way. NHPC has also developed in-house rock mechanics testing laboratory with high-end testing instruments and a sophisticated remote sensing lab. Proven experience with validation in execution and operation of large number of national and international projects in respect of power potential and optimization studies, powerhouse dimensioning and transient studies.

NHPC has an efficient team of professionals to investigate and monitor the Geological and Geotechnical aspects of hydropower/pump storage projects in an efficient and scientific manner including preparation of feasibility and Detailed Project Reports (DPRs). Geological investigations assist in avoiding or minimizing the threat of geological uncertainties during construction of various civil structures, powerhouse, etc. The engineering capabilities of NHPC ranges right from the stage of conceptualization till the commissioning of the projects.

• Extensive experience in construction and operation

NHPC has extensive experience and expertise in developing hydroelectric projects in complex geological regions by overcoming number of geo-technical challenges using in-house state of-art technology. It has successfully completed construction of some of the challenging hydroelectric projects in India situated in remote hilly areas with various challenges like inaccessibility, poor logistic, adverse climate, complex rock conditions and technological hindrances. NHPC has standardized its erection protocols in strict adherence to international standards for developing its projects as model of quality excellence. With its strong team of competent, efficient and experienced professionals, NHPC is capable of executing hydroelectric projects of varying features and sizes by effectively overcoming such challenges.

• Strong financial position

NHPC has paid-up share capital of Rs 10,045.03 crore and an investment base of over Rs 87,121.11 crore as on March 31, 2025. NHPC has credit rating of AAA with stable outlook assigned by domestic credit rating agencies for its listed bonds and loans from banks/FIs. International Rating Agency i.e. Moodys Ratings has assigned Baa3 rating to NHPC with stable outlook. The strong financial position of the Company makes it competent enough to execute capital-intensive large hydroelectric projects.

• Strong operating performance

NHPC has successfully managed to develop and implement twenty-three hydroelectric projects (including two through its subsidiary Company i.e. NHDC Limited), two solar power project and one wind power project on its own and four solar power projects through its subsidiary companies with an aggregate installed capacity of 8193.61 MW. NHPC with its fleet of power stations is a flagship Company in hydropower sector in India.

• Seismic safety assessment

NHPC has setup one of the largest strong motion instrument (SMAs) network owned by any public sector utility in the Country covering 23 of NHPC and JV power stations. This network is operational on 24X7 basis and is maintained and monitored exclusively by Engineering Seismological unit of Geophysical team. For online monitoring of these SMAs, NHPC has setup one of its kind state-of-art centralized Real Time Seismic Data Centre (RTSDC) at its Corporate Office for seismic monitoring of all its power stations. The data centre records, processes and provides quick assessment of any earthquake event within the vicinity of respective power stations. This also provides a strong database for Comprehensive Dam Safety Evaluation teams in accordance with Dam Safety Act, 2021. This is a big step towards risk assessment measures and enables dam safety reviews for each of its power stations. Some High-end Research and Development activities taken up as JV with seismic experts of the Country have further strengthened the capabilities of NHPC in seismic monitoring of Hydro projects.

• NHPCs continued ability to complete the hydro projects

The strength shown by NHPC over the years in its ability to complete the projects in difficult terrains is a beacon of hope in the hydro sector. As a result, NHPCs forte in hydro projects construction is creating new space for its growth in the future. The completion of Parbati-II HE Project with longest hydropower tunnel in most challenging condition is testimony of NHPCs commitment towards accomplishment of its projects.

(ii) OPPORTUNITIES

• Untapped hydro potential

Requirement of Optimal Generation mix, peaking shortages, intermittency of RE Generation, frequency variations have forced policy makers to turn their attention towards development of hydropower and PSPs. Indias huge untapped hydro potential, especially in the north-eastern region, provides opportunity for hydropower development. NHPC has an opportunity for adding to its capacity the untapped hydro potential in coming years in India and neighboring countries. Intermittency of renewable generation has enhanced the requirement of PSPs multifold in the Indian Grid and NHPC has great edge in development of PSPs due to its core domain strength.

• Renewable Energy

In support of the global efforts to combat adverse impacts of climate change, Govt. of India has set an ambitious target of having 50% power generation capacity from non-fossil fuel sources and a target to have 500 GW RE installed capacity by 2030. With Govt. initiatives and policy supports, energy transition from fossil fuels to renewable sources viz. solar PV, Wind, Biomass etc. has picked up great pace in India. The abundance of natural resources and various initiatives and schemes taken up by the Govt. of India for harnessing the renewable energy potential by development of Solar, Wind, Hydro, PSPs, Green Hydrogen projects present very attractive avenues to NHPC for investment and expansion of its business footprint.

NHPC is making significant efforts to contribute towards Govt. of Indias RE generation targets by exploring all possible opportunities to develop solar parks/ Floating solar projects, develop solar power projects under CPSU Scheme, pilot Green Hydrogen Projects, Pumped Storage Projects in various potential rich states across the Country. NHPC has already incorporated two subsidiary companies for development of RE potential namely NHPC Renewable Energy Limited (NHPC REL) (a wholly owned subsidiary for taking up Renewable Energy, Small Hydro Projects and Hydrogen Technology based projects) and Bundelkhand Saur Urja Limited (BSUL) (JV with UPNEDA to develop RE projects in Uttar Pradesh). NHPC has also taken up initiatives for development of Green Hydrogen Technology, wherein one 25 kWe capacity Pilot Green Hydrogen Project at Leh and 2 pilot green hydrogen-based e-mobility projects (one at Kargil and one at Chamba, Himachal Pradesh) are under advanced stages of implementation.

NHPC has been designated as Renewable Energy Implementing Agency (REIA) by MNRE, as an REIA, NHPC acts as an intermediary in bidding out RE projects across the Country with back-to- back PPA tie-ups with DISCOMs for sale of power. For its efforts, NHPC will charge a trading margin to the buying entity. As REIA, NHPC has already awarded over 20 GW RE project capacity under various configurations to different vendors for implementation, which will result in an alternate revenue stream for NHPC in the future.

Recently, NHPC has also been designated as Battery Energy Storage System (BESS) Implementing Agency (BIA) to act as intermediary procurer for

BESS projects anywhere in India. In the first tranche, 1500 MWh BESS capacity with VGF support have been allocated to NHPC for bidding as BIA, for which bids have been floated. The applicable trading margin under BIA role shall also result as a revenue stream for NHPC for the entire Battery Energy Storage Purchase Agreement (BESPA) period.

• Grid Balancing Requirement

In view of Government of Indias present initiative for extensive renewable energy development particularly large scale development of solar power, hydro power would be required for grid balancing/ stability. The present scenario would create opportunities for NHPC to develop hydro power due to its inherent qualities of fast ramping up and down and flexibility imparted to the system, fault current capability, Inertial & primary response, black start support and environment friendly scalable energy storage scheme.

(iii) THREATS/ WEAKNESSES/CHALLENGES/CONCERN

• Geological uncertainties:

Inaccessible terrain and constraints of logistic and limits of investigation, poses serious consequences for execution of projects. Excavation of tunnels under high superincumbent cover also poses serious problems in timely completion of projects due to severe stress related problems and heavy ingress of water. Further, unprecedented natural events like massive landslides, earthquake, Glacial Lake Outburst Flood (GLOF), etc. also poses serious challenges.

• Time and cost overruns

Most hydro-electric projects are generally located in hilly terrain, which are at the receiving end of devastating natural calamities like landslides, hill slope collapses and roadblocks, flood, cloud burst, etc. These calamities cause severe setbacks in construction schedule. Further, in-spite of extensive survey and investigation, geological uncertainties may have to be tackled especially in long tunnels such as Head Race Tunnel. Often, construction of road to project structures becomes difficult due to unstable rock conditions, necessitating the construction of road tunnels, which adds additional costs to the project. NHPC with its rich experience and expertise coupled with state-of-the art technology has overcome such surprises many a times in the past. However, these uncommon and unpredictable geological uncertainties may result in time and cost overrun. Sometimes law and order problems also result in time and cost overrun.

• Time consuming clearance process

Before any hydroelectric project is implemented, it needs to be cleared by various agencies by obtaining various statutory as well as non-statutory clearances. Often projects get bogged down with the lengthy clearance procedures involving multiple agencies/ organizations, states, etc. Obtaining the requisite clearances is a complex, tedious and time-consuming process which sometimes leads to abnormal delay, ultimately affecting the project implementation.

• Difficulties in entering into Power Purchase Agreements (PPAs)

Sale of energy from projects having higher tariff is getting difficult in present days power trading scenario. Beneficiaries prefer to purchase their additional power requirement on short-term basis through power exchange or e-procurement rather than opting for long term/medium term PPAs. As hydroelectric projects are site specific and its tariff depends on location/design parameters and high initial investment, the tariff for new hydroelectric projects is relatively higher. Due to above reasons, NHPC is facing difficulties in dispatch of power from new projects through long term PPAs.

• High initial cost/ tariff

The development of hydroelectric projects involves long gestation period and require large initial investment, which results into high initial tariff. Cash flow and revenue from operations of hydroelectric projects are also subject to variations as per tariff regulations notified by CERC from time to time. High initial costs and tariffs sometimes prove detrimental in obtaining investment sanction and require extensive financial re-engineering and different waivers from various stakeholders to bring the project on the anvil.

• Law & order and Security Threats

NHPC is witnessing law & order problem at some of its projects/ power stations, as they are located near sensitive border areas and at remote locations. Officials posted at those projects/ power stations are prone to security threats. However, NHPC is efficiently managing the operation of these Power Plants.

• Opposition to hydroelectric projects:

Hydroelectric projects in India are also facing opposition by certain pressure groups. This has created an apprehension amongst the hydroelectric project developers as some of their projects are getting stalled.

• Restrictive hydro policies of State Government

Several state hydro policies favors for payment of upfront premium, free power over & above the required free power, etc. for allocation of hydroelectric projects to the developers. CPSEs are facing difficulties in getting these hydroelectric projects, as they have to follow the norms of Government of India.

• Dependence on few contractors Construction of hydroelectric projects require manpower, machinery and substantial investment of money. There are very few contractors in India who can deliver especially in remote and difficult locations where accessibility is a major issue. The limited range of contractors who are able to perform in the sector increases our dependence on few available contractors in the Country.

36.9 RISK AND CONCERNS

NHPC has a well-defined and dynamic Risk Management Policy since 2009 to provide overall framework for the risk management in the Company. The Policy is modified and updated from time-to-time. The Revision-01 of the Policy was done in the year 2015, Revision-02 of the Policy was done in the year 2022 and Revision-03 of the Risk Management Policy has been done in the year 2024. At present, 70 key risks have been identified from initial 54 risks. To ensure effective implementation of the Risk Management Policy, two Committees have been constituted:

i. A Board level Risk Management Committee comprising of Directors, to assist the Board in management of key risks. The Committee inter- alia ensure that appropriate methodology, processes and systems are in place to monitor and evaluate risks associated with the business of the Company.

ii. Risk Assessment Committee comprising of Chief Risk Officer and Risk Coordinators- HOD(s) of various divisions responsible for risk mitigation pertaining to their division as well as for Power Stations/ Projects/ Divisions of Corporate office. The Heads of Departments/ Regions/ Projects/ Power Stations implement and review the directions issued by Risk Assessment Committee on the identified risks and their mitigation measures.

36.10 OUTLOOK

Your Company has taken some very effective initiatives and successfully streamlined the processes for sustainable growth and consistent performance in the electricity business. It has adopted new and relevant technologies in the areas of electro-mechanical, civil and hydro-mechanical engineering. NHPC has applied contemporary practices to reduce construction time delays as well as cost overrun. Its power stations are run in an optimized way to reduce siltation problem of its reservoir. Construction supervision, post-commissioning monitoring and hurdle free operation are ensured and augmented by use of information technology. Operations of all power stations of the Company are either semi or fully automated. Many power stations are equipped with advanced distributed control systems along with Supervisory Control And Data Acquisition (SCADA) systems. NHPC is also looking forward for remote operation of some of its power stations.

NHPC Limited at present has an installed capacity of 8193.61 MW from 30 power stations including six power stations in JV mode and is looking for expansion through diversification.

36.11 SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

Generation of electricity is the principal business activity of the Company. Other operations viz. power trading, contracts, project management and consultancy works do not form a reportable segment as per the Ind AS - 108 on "operating segments". The Company has a single geographical segment, as all its power stations are located within the Country.

36.12 INTERNAL CONTROL SYSTEMS AND ADEQUACY

The Company has sound internal control systems and processes in place for smooth and efficient conduct of business and ensure compliance to relevant laws and regulations. NHPC has clearly defined organizational structure, manual and standard operating procedures to ensure orderly, ethical and efficient conduct of its business. A comprehensive delegation of power from Chairman and Managing Director to down below is in place to assist in smooth decision making, which is periodically reviewed to align it with changing business environment and for speedier decision making.

The Company has an in-house internal audit department headed by a senior officer. In compliance to Section 138 of the Companies Act, 2013, the Board has appointed an Executive Director (Finance) as Internal Auditor of the Company. The department has qualified and experienced workforce to carry out periodical as well as special audits.

The Internal Audit department submits their audit observations and action taken reports to Audit Committee. The recommendations of the Committee are duly complied with. In compliance to Section 134 of the Companies Act, 2013, M/s Raj Har Gopal & Co., Chartered

Accountants, New Delhi was appointed to provide independent assurance on implementation of Internal Financial Controls in the Company during the financial year 2024-25. The Firm, in its Report, acknowledged the effectiveness of prevailing internal financial control systems in the Company.

36.13 FINANCIAL DISCUSSION AND ANALYSIS PROFIT & LOSS ITEMS

A detailed analysis of the Audited Financial Results of the Company for the Fiscal year 2025, as compared to Fiscal year 2024: -

Income (Rs in crore)

Particulars	Fiscal 2025	Fiscal 2024
Units of electricity generated (in million units)	19862	21773
Income
(i) Sale of Energy	8,350.15	7,327.90
(ii) Income from Finance Lease	282.12	297.31
(iii) Income from Operating Lease	287.29	332.22
Net Sales (i)+(ii)+(iii)	8,919.56	7,957.43
(iv) Revenue from Contracts, Project Management and Consultancy Works	47.19	49.06
(v) Revenue from Power - Trading	21.50	11.52
(vi) Other Operating Income	6.01	378.48
Revenue from operations [sum of (i) to (vi)]	8,994.26	8,396.49
Add: Other Income	1,579.15	1,600.16
Total Income	10,573.41	9,996.65

Total income in Fiscal 2025 increased by 5.77% to Rs 10,573.41 crore from Rs 9,996.65 crore in Fiscal 2024, primarily due to increase in unbilled sales, increase in sales pertaining to earlier years and increase in revenue from power trading partially offset by decrease in Other Operating Income and Other Income in Fiscal 2025.

Sale of Energy

The principal source of income of the Company is from sale of power to bulk customers comprising, mainly of electricity utilities owned by State Governments/Private

Distribution Companies pursuant to long-term Power Purchase Agreements. The rate of electricity is determined Power Station wise by the Central Electricity Regulatory Commission (CERC). The CERC vide its notification no. L-1/268/2022/CERC dated March 15, 2024 has issued Tariff Regulations for the tariff period 2024-29 and subsequent amendments from time to time.

The said regulations inter-alia provide that, for the purpose of filing of tariff petitions, the Return on Equity (ROE), a component of tariff, is to be grossed-up using effective tax rate of the respective Financial Year. For the purpose of recognizing Sales, ROE has been grossed up using effective tax rate for financial year 2024-25.

The Tariff Regulations also provide for incentives which comprise of incentives on achieving plant availability factor greater than Normative Annual Plant Availability Factor (NAPAF), incentive for generation of energy in excess of the design energy of the plant (Secondary Energy) as well as incentive by way of Unscheduled Interchange charges where the Power Stations of the Company contribute towards maintaining grid stability. Sale includes reimbursement on account of Water Cess in respect of power stations situated in Union Territory/state of Jammu & Kashmir and Uttarakhand.

In Fiscal 2025, 19862 MUs of electricity (excluding infirm power of 16 MUs generated by Parbati-II HE Project during financial year 2024-25) was generated from installed capacity of 5551 MW as against 21773 MUs (excluding infirm power of 6 MUs generated by Parbati-II HE Project during financial year 2023-24) from installed capacity of 5551 MW in Fiscal 2024. Accordingly, there was decrease of 8.78% in the number of units generated. The average selling price (after adjustment of components of earlier year sales and free power to home state) was Rs 4.76 per unit for 17401 million units sold in Fiscal 2025 as against Rs 4.21 per unit for 19138 million units in Fiscal 2024. During Fiscal 2025, the Company has earned Rs 410.84 crore towards incentives against Rs 457.81 crore in Fiscal 2024.

Sale of energy increased by 13.95% to Rs 8,350.15 crore in Fiscal 2025 from Rs 7,327.90 crore in Fiscal 2024 primarily due to increase in unbilled sales and increase in sales pertaining to earlier years. Companys Plant Availability Factor (PAF) in Fiscal 2025 was 73.94% as compared to 77.60% in Fiscal 2024. Plant Availability Factor for Fiscal 2025 was lower by 6.37% as compared to Normative Annual PAF of 78.97%.

Adjusted Sale of Energy

The revenue from sale of energy includes sales pertaining to earlier years but recognised in current year and excludes the sale of energy of five Power Stations, whose sale of energy is accounted for as Operating/Finance Lease in terms of Ind AS 116 - Leases.

As per CERC Tariff Regulations, Exchange Rate Variation on interest payments and loan repayments corresponding to the normative loans considered for tariff of stations/ units is payable to / recoverable from the beneficiaries on repayment of the loans and interest thereon. Pursuant to the opinion of Expert Advisory Committee of the Institute of Chartered Accountants of India (EAC of the ICAI), Foreign Exchange Rate Variation on restatement of foreign currency loans as at the Balance Sheet date, payable to/ recoverable from customers later on actual settlement, is accounted for by creating a deferred liability/asset in the accounts instead of adjusting the same in the Statement of Profit & Loss.

For the purpose of year to year comparison, the impact of earlier year sales has been excluded from sale of energy to arrive at the adjusted sale of energy.

The revenue from sale of energy after such adjustments is as under:

(Rs in crore)

Particulars	Fiscal 2025	Fiscal 2024
Net Sales (including income
in respect of 5 Power Stations accounted for as Leases)	8,919.56	7,957.43
Less: Earlier year sales	634.02	(107.78)
Adjusted Sale of Energy	8,285.54	8,065.21

Revenue from Contracts, Project Management and Consultancy Works

This includes revenue from assignments pertaining to Construction Contracts, Project Management & Consultancy Contracts. These assignments primarily include consultancy services provided to subsidiary companies including Chenab Valley Power Projects Limited, Jalpower Corporation Limited and Ratle Hydroelectric Power Corporation Limited. The income from contracts, project management and consultancy works decreased by 3.81% from Rs 49.06 crore in Fiscal 2024 to Rs 47.19 crore in Fiscal 2025.

Revenue from Power - Trading

This includes revenue from Power Trading activity which the Company ventured into during Fiscal 2019. The revenue from Power Trading increased from Rs 11.52 crore in Fiscal 2024 to Rs 21.50 crore in Fiscal 2025 mainly due to commissioning of 320 MW Solar Projects during Fiscal 2025 under the "Renewable Energy Implementing Agency" Scheme of the Government of India wherein the Company is entitled to a trading margin of Rs 0.07/kWh of power traded. The income under this activity was booked on net Trading Margin basis in line with Ind AS 115 - Revenue from Contracts with Customers.

Other Operating Income

Other operating income in Fiscal 2025 was Rs 6.01 crore i.e. a decrease of 98.41% as against Rs 378.48 crore in Fiscal 2024. Decrease in other operating income is due to income on account of Interest from beneficiary states booked in respect of twelve power stations whose tariff orders for truing up for the 2014-19 tariff period and provisional tariff orders for 2019-24 tariff period were received during Fiscal 2024. Since truing up orders for the period 2019-24 and provisional tariff orders for 2024-29 period have not yet been received, there is no corresponding income on this account for financial year 2024-25.

Components of Other operating income are as under:

(Rs in crore)

Other Operating Income	Fiscal 2025	Fiscal 2024
Income on account of generation-based incentive (GBI)	2.65	3.41
Interest from beneficiary states	3.36	375.07
Total	6.01	378.48

Other Income

Other income in Fiscal 2025 was Rs 1,579.15 crore i.e. a decrease of 1.31% as against Rs 1,600.16 crore in Fiscal 2024. Major components of Other Income are discussed hereunder:

(Rs in crore)

Other Operating Income	Fiscal 2025	Fiscal 2024
Interest on Loan to Govt. of Arunachal Pradesh	85.86	78.77
Interest on Term Deposits/ Investments	91.13	80.93
Dividend (mainly from NHDC-a Subsidiary Co.)	428.37	497.54
Late Payment Surcharge	35.89	25.96
Realisation of loss from Insurance Company due to Business Interruption	465.59	149.86
Liability/ Provision not required written back	134.52	138.11
Income from Insurance Claim	120.84	402.17
Exchange Rate Variation	13.97	74.14
Other miscellaneous income	202.98	152.68
Total	1,579.15	1,600.16

During Fiscal 2025, Rs 35.89 crore was earned as Late Payment Surcharge (LPS) from beneficiaries, as against Rs 25.96 crore during Fiscal 2024.

During Fiscal 2025, Rs 428.37 crore was earned as Dividend from investments, mainly from one subsidiary Company (NHDC Ltd), as against Rs 497.54 crore during Fiscal 2024. During Fiscal 2025, Rs 465.59 crore was booked as realisation of Business Interruption (BI) loss, as against Rs 149.86 crore during Fiscal 2024. Higher income on account of BI loss includes Rs 250.00 crore received from Insurance Company in respect of generation loss in Teesta-V Power Station. During Fiscal 2025, Rs 120.84 crore was booked as Income from Insurance Claim, as against Rs 402.17 crore during Fiscal 2024. Insurance Claim in the fiscal 2024 was on account of amount recoverable from Insurance Company for certain losses to assets due to flash flood in the Power Stations located in Teesta River Basin.

Expenditure

(Rs in crore)

Expenditure	Fiscal 2025	Fiscal 2024
Generation Expenses	795.84	814.27
Employee Benefit Expenses	1,643.86	1,290.04
Finance Cost	1,147.00	726.06
Depreciation & Amortization Expenses	1,125.06	1,111.00
Other Expenses	2,002.69	2,015.22
Total	6,714.45	5,956.59

Total expenditure increased by 12.72% to Rs 6,714.45 crore in Fiscal 2025 from Rs 5,956.59 crore in Fiscal 2024 mainly due to increase in Employee Benefit Expenses by Rs 353.82 crore, increase in Finance Cost by Rs 420.94 crore and increase in Depreciation & Amortization expenses by Rs 14.06 crore partially offset by decrease in Generation Expenses by Rs 18.43 crore and decrease in Other Expenses by Rs 12.53 crore. Our total expenditure as a percentage of total income was 63.50% in Fiscal 2025 as compared to 59.59% in Fiscal 2024. Item wise deliberation of Expenditure heads are given hereunder:

Generation Expenses

Generation expenses consist of Water Cess and Consumption of stores and spare parts. These expenses represent approximately 11.85% of the total expenditure in Fiscal 2025 as compared to 13.67% in Fiscal 2024. In absolute terms, these expenses were Rs 795.84 crore in Fiscal 2025 as against Rs 814.27 crore in Fiscal 2024. The decrease of Rs 18.43 crore in generation expenses is primarily on account of reversal of liability towards water cess in respect of power stations located in the state of Himachal Pradesh where the relevant act has been deemed unconstitutional by the Honble High Court of Himachal Pradesh and in the state of Sikkim, where management is of the opinion that obligation to pay water cess beyond what has already been paid is at best contingent in nature.

Employee Benefits Expense

Employee benefits expense include Salaries and Wages, Allowances, Incentives, Contribution to Provident Fund, Contribution to Employees Defined Contribution Superannuation Scheme and expenses related to other employee welfare funds. These expenses represent 24.48% of our total expenditure in Fiscal 2025 as against 21.66% in Fiscal 2024. Employee costs has increased from Rs 1,290.04 crore in Fiscal 2024 to Rs 1,643.86 crore in Fiscal 2025 i.e. an increase of Rs 353.82 crore in Fiscal 2025. Increase in Employee benefits expense was due to provisioning for arrears payable to employees on account of pay anomaly as per decision of the Honble High Court of Punjab and Haryana during the fiscal 2025.

There were 4577 employees on the payroll of the Company as on March 31, 2025 compared to 4929 employees as on March 31, 2024. Out of these 2132 and 2374 employees were engaged in Operation and Maintenance of Power Stations during Fiscal 2025 and 2024 respectively. Finance Costs

Finance costs consist of interest expense on bonds and term loans. In the books of accounts, borrowings are denominated in Indian Rupees, including amounts raised in foreign currencies (Japanese Yen). Finance Cost also includes expenses on account of Guarantee Fees to the Government of India in connection with loans raised from Foreign Market.

Finance Cost represents 17.08% of the total expenditure in Fiscal 2025 compared to 12.19% of the total expenditure in Fiscal 2024. Finance Cost increased by 57.98% to Rs 1,147 crore in Fiscal 2025 from Rs 726.06 crore in Fiscal 2024. The increase in Finance Cost is mainly due to interest on Arbitration/Court cases settled/ provided for during the year.

Depreciation & Amortization Expense

As per the material accounting policies of the Company, Depreciation is charged to the extent of 90% of the cost of assets following the rates and methodology notified by CERC on straight line method, except for some items on which depreciation is charged to the extent of 95% of the cost of the assets at the rates prescribed in the Companies Act, 2013, or as per rates assessed by Management. Depreciation cost increased by 1.27% to Rs 1,125.06 crore in Fiscal 2025 from Rs 1,111.00 crore in Fiscal 2024. The increase in depreciation expenses is primarily due to additional capitalization/de-capitalization in power stations.

As a percentage of total expenditure, depreciation & amortization expense decreased to 16.76% in Fiscal 2025 from 18.65% in Fiscal 2024.

Other Expenses

Other expenses consist primarily of Repair & Maintenance of Buildings and Plant & Machinery, Security Expenses, Insurance Expenses, CSR Expenses, Other Administrative Overheads, Provisions, etc. These expenses represent approximately 29.83% of the total expenditure in Fiscal 2025 as against 33.83% in Fiscal 2024. In absolute terms, these expenses decreased by 0.62% to Rs 2,002.69 crore in Fiscal 2025 from Rs 2,015.22 crore in Fiscal 2024. The decrease of Rs 12.53 crore in Other Expenses is primarily due to loss on insured assets amounting to Rs 328.83 crore booked in Fiscal 2024 due to floods in Teesta Basin, Security expenses Rs 6.22 crore, Training Expenses Rs 4.05 crore, CSR Expenses Rs 3.43 crore, and net decrease in Other Components Rs 23.22 crore partially offset by increase in Insurance expenses Rs 223.83 crore, R&M expenses Rs 82.35 crore, Rates and taxes Rs 1.42 crore, Electricity charges Rs 1.26 crore, Travelling & Communication expenses Rs 1.18 crore and other components Rs 43.18 crore, etc. Movements in Regulatory Deferral Account Balances (Regulatory Income)

In line with the Guidance Note on "Accounting for Rate Regulated Activities" issued by the Institute of Chartered Accountants of India (ICAI) and Ind AS 114 - Regulatory Deferral Accounts, Regulatory Assets have been created and corresponding Regulatory Income has been recognized for Rs 141.09 crore. The details of items are given hereunder:

(i) Regulatory Deferral Account balances due to moderation of tariff of Kishanganga Power Station

The Company has carried out moderation of depreciation as a component of tariff of Kishanganga Power Station to make the tariff saleable, which has been allowed by the CERC. This entitles the Company to recover the lower depreciation considered in tariff during the first ten years of operation over the balance useful life of the Power Station. Accordingly, the right to recover the difference between the depreciation charged in the books as per CERC Tariff Regulations, 2019-24/2024-29 and that recoverable through tariff amounting to Rs 204.69 crore during Fiscal 2025 (Fiscal 2024 Rs 197.93 crore) has been recognised as a Regulatory Income.

(ii) Regulatory Deferral Account balances in respect of exchange differences on Foreign Currency Monetary items

Exchange differences arising on translation/settlement of foreign currency monetary items to the extent charged to the Statement of Profit & Loss and further recoverable from or payable to the beneficiaries in subsequent periods as per CERC Tariff Regulations are being recognized as Regulatory Deferral Account balances w.e.f. April 01, 2016. These balances are adjusted from the year in which the same become recoverable from or payable to the beneficiaries after Commercial Operation Date (COD) of the Project.

Accordingly, the Company has created Regulatory Assets and recognized corresponding Regulatory Income of (-) Rs 0.02 crore during Fiscal 2025 (Fiscal 2024 Rs 0.04 crore), which is recoverable from beneficiaries in future periods.

(iii) Regulatory Deferral Account balances due to reclassification of deferred tax recoverable/ deferred tax adjustment against deferred tax liabilities

As per CERC Tariff Regulations, deferred tax arising out of generating income for the tariff period 2004-09 is recoverable from beneficiaries in the year the same materializes as current tax. For the tariff periods 2014- 19 and onwards, deferred tax is recoverable by way of grossing up the Return on Equity by the effective tax rate based on actual tax paid. Accordingly, Deferred Tax Liability recoverable from beneficiaries in future periods is recognized as Regulatory Assets.

In respect of deferred tax recoverable for tariff period upto 2009, Rs 66.47 crore has been utilized/recovered during Fiscal 2025 {Fiscal 2024 (-) Rs 61.68 crore} and for the tariff period 2014-19 and onwards, regulatory assets of Rs 2.89 crore has been recognized during Fiscal 2025 {Fiscal 2024 (-) Rs 38.52 crore}.

(iv) Creation of Regulatory Deferral Account balances on account of Interest payment on settlement of Court/Arbitration cases (Under Vivad Se Vishwas Scheme)

During Fiscal 2024, interest paid on arbitration / Court awards in respect of Contractors claims settled under Vivad se Vishwas-II Scheme of the Government of India amounting of Rs 135.51 crore was charged to P&L and was further recognised as a Regulatory Asset. During Fiscal 2025 interest paid/ provided against arbitration / Court awards has been charged to P&L and further recognized as Revenue since CERC Tariff Regulations 2024-29 provide for recovery of such expenditure through tariff.

Profit Before Tax and Rate Regulated Income Due to the reasons outlined above, our Profit Before Tax decreased by 4.48% to Rs 3,858.96 crore in Fiscal 2025 from Rs 4,040.06 crore in Fiscal 2024.

Tax Expenses

In Fiscal 2025, tax expense is Rs 916.07 crore as compared to Rs 551.54 crore in Fiscal 2024. The increase in tax expenses in Fiscal 2025 is on account of increase in deferred tax expenses by Rs 475.07 crore and decrease in current year tax by Rs 110.54 crore.

Current Tax Expenses

Taxable income for Fiscal 2025 is Rs 4,063.63 crore against Rs 4,373.54 crore for Fiscal 2024. Accordingly, Current Tax Expenses is lower by Rs 110.54 crore.

Deferred Tax Expenses

Deferred Tax for Fiscal 2025 is Rs 243.42 crore against (-) 231.65 crore for Fiscal 2024. The increase in Deferred Tax Expense by Rs 457.07 crore is mainly on account of MAT credit amounting to Rs 528.65 crore recognized in Fiscal 2024.

Profit After Tax including Rate Regulated Income

Our Profit After Tax decreased by 17.14% to Rs 3,083.98 crore in Fiscal 2025 from Rs 3,721.80 crore in Fiscal 2024. Other Comprehensive Income (OCI)

OCI comprising of actuarial gain/loss of re-measurements of post retirement Defined Benefit Plans and fair value gain/loss on investments in Equity & Debt Instruments in Fiscal 2025 was (-)102.89 crore against (-)24.96 crore in Fiscal 2024.

Total Comprehensive Income (TCI)

TCI i.e. total profit inclusive of OCI in Fiscal 2025 was Rs 2,981.09 crore i.e. decrease of 19.36% as against Rs 3,696.84 crore in Fiscal 2024.

LIQUIDITY AND CAPITAL RESOURCES Both internal and external sources of liquidity are utilized for Working Capital requirement and funding of capital expenditure requirements. Generally long term borrowings are raised through term loans from banks/ financial institutions or issue of bonds either in Indian Rupees or foreign currencies. Cash and cash equivalents were Rs 812.15 crore and Rs 1,150.36 crore as on March 31, 2025 and March 31, 2024 respectively.

Cash Flows

(Rs in crore)

Particulars	Fiscal 2025	Fiscal 2024
Net cash inflow/(outflow) from operating activities	4,160.05	6,127.74
Net cash inflow/(outflow) from investing activities	(4,412.02)	(3,796.53)
Net cash inflow/(outflow) from financing activities	(87.21)	(1,844.62)

Net Cash from Operating Activities

In Fiscal 2025, the net cash from operating activities was Rs 4,160.05 crore and Profit beforeTax and Regulated I ncome was Rs 3,858.96 crore. Net cash from operating activities has been arrived at after adjusting non-cash items comprising of Rs 1,125.06 crore towards depreciation and amortization expenses, Rs 1,147.00 crore towards interest expenses, Rs 59.98 crore towards provisions, Rs 27.17 crore towards sales adjustment on a/c of FERV, Rs 7.44 crore loss on sale of assets/claims written off, Rs 13.16 crore towards loss on sale of long term investments, Rs 8.60 crore towards fair value adjustments, Rs 50.42 crore towards deferred revenue on account of advance against depreciation, Rs 134.52 crore on account of provisions/liabilities not required written back, Rs 428.37 crore on account of dividend income, Rs 286.76 crore towards interest income & guarantee fees including late payment surcharge, Rs 13.97 crore towards exchange rate variation (gain) and Rs 33.25 crore towards amortization of government grants. Changes in Operating Assets & Liabilities had an impact on cash outflow by (-)454.04 crore, which was the net effect of change in Inventories, Trade Receivables, Other Financial Assets, Loans & Advances, Other Financial Liabilities & Provisions and Regulatory Deferral Account Balances.

In Fiscal 2024, the net cash from operating activities was Rs 6,127.74crore and Profit beforeTax and Regulated Income was Rs 4,040.06 crore. Net cash from operating activities was arrived at after adjusting non-cash items comprising Rs 1,111.00 crore towards depreciation and amortization expense, Rs 726.06 crore towards interest expenses, Rs 16.81 crore towards provisions, Rs 29.42 crore towards sales adjustment on a/c of FERV, Rs 13.82 crore loss on sale of assets/claims written off, Rs 34.15 crore towards fair value adjustments, Rs 50.42 crore towards deferred revenue on account of advance against depreciation, Rs 138.11 crore on account of provisions/liabilities not required written back, Rs 497.54 crore on account of dividend income, Rs 231.58 crore towards interest income & guarantee fees including late payment surcharge, Rs 74.14 crore towards exchange rate variation (gain) and Rs 33.15 crore towards amortization of government grants. Changes in Operating Assets & Liabilities had impact on cash outflow by Rs 1,933.33 crore, which was the net effect of change in Inventories, Trade Receivables, Other Financial Assets, Loans & Advances, Other Financial Liabilities & Provisions and Regulatory Deferral Account Balances.

Net Cash from Investing Activities

Net cash used in investing activities was Rs 4,412.02 crore in Fiscal 2025. This was mainly on account of acquisition of Fixed Assets i.e. Property, Plant & Equipment, Other Intangible Assets, CWIP and movement in Regulatory Deferral Account balances forming part of project cost of Rs 4,495.66 crore, Rs 1,123.27 crore towards Investment in Subsidiaries & Joint Venture and Rs 336.53 crore towards loan to subsidiaries partly offset by interest income & Guarantee Fees by Rs 217.72 crore, Rs 428.37 crore towards dividend income, Rs 2.08 crore towards proceeds from term deposits, Rs 2.80 crore towards interest on loan to Subsidiaries/ Joint Ventures, Rs 1.80 crore towards sale of Property, Plant and Equipment, Rs 352.05 crore towards repayment of loan by subsidiaries, Rs 12.38 crore towards proceeds from sale of investment and Rs 526.24 crore towards receipt of Grant.

Net cash used in investing activities was Rs 3,796.53 crore in Fiscal 2024. This was mainly on account of expenditure on Fixed Assets i.e. Property, Plant & Equipment, Other Intangible Assets, CWIP and movement in Regulatory Deferral Account balances forming part of project cost of Rs 4,205.41 crore, Rs 763.98 crore towards Investment in Subsidiaries and Rs 185.05 crore towards loan to subsidiaries partly offset by interest income & Guarantee Fees by Rs 160.33 crore, Rs 497.54 crore towards dividend income, Rs 2.46 crore towards proceeds from term deposits, Rs 4.92 crore towards interest on loan to Subsidiaries/ Joint Ventures, Rs 2.18 crore towards sale of Property, Plant and Equipment, Rs 150 crore towards repayment of loan by subsidiaries, Rs 150 crore towards proceeds from sale of investment and Rs 390.48 crore towards receipt of Grant. Net Cash from Financing Activities

In Fiscal 2025, net cash outflow from financing activities was Rs 87.21 crore. Fund of Rs 7,603.84 crore has been raised through issue of bonds and loan from banks and Rs 450.00 crore from Short Term Borrowings (Net). Borrowings to the tune of Rs 3,130.84 crore were repaid. Our cash outflow on account of repayment of lease liability including interest thereon was to the tune of Rs 7.79 crore. The amount related to interest servicing was Rs 3,093.86 crore. In Fiscal 2025, total dividend of Rs 1,908.56 crore was paid.

In Fiscal 2024, our net cash outflow from financing activities was Rs 1,844.62 crore. Fund of Rs 5,081.94 crore was raised through issue of bonds and loan from banks. Borrowings to the tune of Rs 2,713.51 crore were repaid. Our cash outflow on account of repayment of lease liability including interest thereon was to the tune of Rs 7.24 crore. The amount related to interest servicing was Rs 2,347.48 crore. In Fiscal 2024, total dividend of Rs 1,858.33 crore was paid.

BALANCE SHEET ITEMS Balance Sheet Highlights Assets

(Rs in crore)

Particulars	As of March 31,
	2025	2024
Non-Current Assets
Property, Plant and Equipment, Capital Work in Progress, Right of Use Assets, Investment Property, Intangible Assets and Intangible Assets under development	59,321.70	52,290.56
Other Non-Current Assets	1,049.38	2,827.95
Financial Assets (Non-Current)
- Non-Current Investments	5,926.39	4,631.45
- Trade Receivables	0.63	2.63
- Long Term Loans and Advances	1,242.18	1,196.15
- Other Financial Assets	4,548.34	4,579.14
Total Non-Current Assets	72,088.62	65,527.88
Current Assets
Inventories	243.21	177.00
Current Tax Assets (Net)	70.04	118.10
Other Current Assets	1,214.61	740.22
Financial Assets (Current)
- Current Investments	0.00	12.43
- Trade Receivables	4,411.09	3,975.67
- Cash & Bank Balances	812.15	1,150.36
- Short Term Loans	142.74	97.25
- Other Financial Assets	1,342.43	1,182.13
Total Current Assets	8,236.27	7,453.16
Asset classified as held for sale	1.73	1.22

 

Regulatory Deferral Account Debit Balances	6,794.49	6,653.40
Total Assets and Regulatory Deferral Account Debit Balances	87,121.11	79,635.66

Equity and Liabilities

(Rs in crore)

Particulars	As of March 31,
	2025	2024
Equity
Equity Share Capital	10,045.03	10,045.03
Other Equity	28,303.45	27,230.92
Net Worth	38,348.48	37,275.95
Non-Current Liabilities
Long Term Provisions	66.69	59.71
Deferred Tax Liabilities (Net)	1,861.69	1,668.45
Other Non-Current Liabilities	2,691.22	2,250.06
Financial Liabilities (Non-Current)
- Long Term Borrowings	32,260.47	27,923.22
- Lease Liabilities	17.13	19.35
- Other Financial Liabilities	2,192.76	2,192.42
Total Non-Current Liabilities	39,089.96	34,113.21
Current Liabilities
Short Term Provisions	1,956.10	1,293.30
Current Tax Liabilities	8.40	54.45
Other Current Liabilities	785.88	661.27
Financial Liabilities (Current)
- Short Term Borrowings	3,718.73	3,052.77
- Lease Liabilities	5.57	6.32
- Trade Payables	298.04	261.51
- Other Financial Liabilities	1,986.75	1,993.68
Total Current Liabilities	8,759.47	7,323.30
Regulatory Deferral Account Credit Balances	923.20	923.20
Total Equity, Liabilities and Regulatory Deferral Account Credit Balances	87,121.11	79,635.66

Authorised Share Capital

The authorised share capital of the Company has increased from Rs 15,000 crore to Rs 17,500 crore pursuant to merger of Lanco Teesta Hydro Power Limited (previously a wholly owned subsidiary of NHPC Limited) with the Company with effective date as on January 27, 2025.

Movement in Balance Sheet items are discussed here under: -

Property, Plant and Equipment (PPE), Capital Work in Progress (CWIP), Right of Use (ROU) Assets, Investment Property, Intangible Assets

Value of PPE consisting of Land, Hydraulic structures, Water Conductor Systems, Generating Equipment, Buildings including Power House Buildings, Construction Equipment, Plant & Machinery, Office Equipment, Computers, etc. after provision for depreciation & amortisation was Rs 16,553.02 crore and Rs 16,609.67 crore as on March 31,2025 and March 31, 2024 respectively. CWIP which includes Hydraulic Works, Buildings including Power House Buildings, Construction Equipment, Plant & Machinery and S&I works at the power projects under Construction, Survey & Investigation were Rs 39,834.13 crore and Rs 32,862.60 crore as on March 31, 2025 and March 31, 2024 respectively.

ROU including forest land under right of use and other leased assets were Rs 2,722.02 crore and Rs 2,631.81 crore as on March 31, 2025 and March 31, 2024 respectively. Investment Property consists of one piece of land at Bangalore amounting to Rs 4.49 crore.

Intangible Assets comprising of computer software were Rs 5.66 crore and Rs 1.99 crore as on March 31, 2025 and March 31, 2024 respectively.

Intangible Assets under development consisting of software under development & upfront Fee/ Premium for allotment of two hydroelectric projects in the State of Arunachal Pradesh were Rs 202.38 crore and Rs 180.00 crore as on March 31,2025 and March 31, 2024 respectively. Investments (Current & Non-Current)

Investments are intended for long term and carried at cost which consists of Equity investments in Subsidiaries/

Joint Venture Companies, Govt. Securities and Bonds. Our total investment was Rs 5,926.39 crore and Rs 4,643.88 crore as of March 31, 2025 and March 31, 2024 respectively. The increase in investment is the net effect of increase in investment in subsidiary companies and increase in fair value of investment in equity instruments. During financial year 2024-25, the Company has made fresh investment in subsidiary Companies amounting to Rs 1,317.43 crore.

Loans (Current & Non-Current)

Loans include loans to employees, loan and interest accrued thereon to Govt. of Arunachal Pradesh and loans to subsidiary companies viz. Jalpower Corporation Ltd. (JPCL) and Bundelkhand Saur Urja Limited (BSUL). Loans as on March 31, 2025 and March 31, 2024 were Rs 1,384.92 crore and Rs 1,293.40 crore respectively i.e. an increase of 7.08% over figures of previous Fiscal mainly due to accrued interest on loan to Govt. of Arunachal Pradesh and increase in employee loans during Fiscal 2025.

Other Financial Assets (Current & Non-Current)

The other financial assets as at March 31, 2025 stood at Rs 5,890.77 crore against Rs 5,761.27 crore for the previous fiscal i.e. there is an increase of 2.25% over figures of previous fiscal. Other Financial Assets include Amount recoverable on account of Bonds fully serviced by Govt. of India, Lease rent receivable, Receivable on account of Late Payment Surcharge, Interest income accrued on Investment, claim recoverable from different agencies, Share Application Money pending allotment, Receivable from Subsidiaries, etc. The increase in other financial assets is mainly due to increase in claim recoverable from insurance & subsidiary companies and rent & Interest receivable on finance lease.

Tax Assets (Current & Non-Current)

Tax assets as of March 31,2025 and 2024 were Rs 70.04 crore and Rs 118.10 crore respectively, i.e. there is decrease of 40.69% over figures of previous Fiscal. Tax Assets include Advance Income Tax & Tax Deducted at Source over and above provision for income tax up to financial year 2024- 25. Tax assessment up to financial year 2022-23 has been completed and Tax assessment for financial year 2023-24 is under progress.

Other Non-Current Assets

Other non-current assets mainly comprise of deferred foreign currency fluctuation assets, advances (Capital as well as Other than Capital) and advance to contractors against arbitration awards. Our other non-current assets as of March 31, 2025 and 2024 were Rs 1,049.38 crore and Rs 2,827.95 crore respectively. The decrease of 62.89% in Fiscal 2025 as compared to the figures in Fiscal 2024 is mainly due to recovery of capital advances, provisions recognised in respect of advances against arbitration award/court order and decrease in deferred foreign currency fluctuation assets.

Inventories

Inventories are valued at cost or Net Realisable Value whichever is lower. Our inventories were valued at Rs 243.21 crore and Rs 177.00 crore as of March 31,2025 and 2024 respectively.

Trade Receivables (Current & Non-Current)

These consist primarily of receivables against the sale of electricity including unbilled revenue. The Trade receivables (net of provision for doubtful debts) as of March 31, 2025 and 2024 were Rs 4,411.72 crore and Rs 3,978.30 crore respectively. Increase of 10.89% in trade receivables in Fiscal 2025 as compared to Fiscal 2024 is due to increase in Receivable on account of unbilled revenue.

Cash and Bank Balances

Cash and Bank balances as of the Balance Sheet date consist of cash surplus in current account, Short Term deposits, advances received from Government entities in respect of the Pradhan Mantri Grameen Sadak Yojna Scheme for development of rural roads and the Deen Dayal Upadhyaya Grameen Jyoti Yojana Scheme for development of rural electrification infrastructure.

Cash and Cash equivalents as of March 31, 2025 and 2024, respectively, were Rs 583.44 crore and Rs 922.62 crore. The decrease of Rs 339.18 crore during Fiscal 2025 is the net result of cash inflow from operating activities of Rs 4,160.05 crore offset by cash outflow on investing activities by Rs 4,412.02 crore and Rs 87.21 crore on account of financing activities respectively.

Bank balances other than Cash and Cash Equivalents as of March 31, 2025 and 2024 were Rs 228.71 crore and Rs 227.74 crore respectively.

Bank balances other than Cash and Cash Equivalents include Rs 85.35 crore (Previous Year Rs 88.08 crore) held for Rural Road and Rural Electrification works being executed by the Company on behalf of other agencies, unpaid dividend, unpaid interest & other earmarked balances of Rs 132.21 crore (Previous Year Rs 129.16 crore) which are not freely available for the business of the Company.

Other Current Assets

Other Current Assets mainly comprise of Advances to contractors and suppliers, Prepaid Expenditure and Deferred Foreign Currency Fluctuation Assets. Our other Current Assets, as of March 31, 2025 and 2024 respectively were Rs 1,214.61 crore and Rs 740.22 crore, an increase of 64.09% in Fiscal 2025 as compared to the figures in Fiscal 2024. This increase is mainly due to increase in Prepaid Insurance by Rs 356.64 crore and increase in advances by Rs 81.19 crore.

Regulatory Deferral Account Debit Balances

In line with the Guidance Note on "Accounting for Rate

Regulated Activities" issued by the Institute of Chartered Accountants of India and Ind-AS 114-Regulatory Deferral Accounts, Regulatory Assets have been created and corresponding Regulatory Income has been recognized in respect of certain items which are recoverable from beneficiaries in future.

Regulatory Deferral Account Debit balances as on March 31, 2025 and March 31,2024 were as under:

(Rs in crore)

Particulars	March 31, 2025	March 31, 2024
Regulatory Deferral Account balances in respect of Subansiri Lower Project	3,470.59	3,470.59
Differential depreciation due to Moderation of Tariff in respect of Kishanganga Power Station	1,363.44	1,158.75
Exchange differences on Foreign Currency Monetary items	2.67	2.69
Interest Payment on Court/ Arbitration Cases	135.51	135.51
Adjustment against Deferred Tax Recoverable for tariff period upto 2009	1,219.80	1,286.27
Adjustment against Deferred Tax Liabilities for tariff period 2014- 2019	602.48	599.59
Total	6,794.49	6,653.40

Net Worth

Net Worth of the Company at the end of Fiscal 2025 increased to Rs 38,348.48 crore from Rs 37,275.95 crore in the previous Fiscal registering an increase of 2.88% mainly due to Profit after tax and consequential increase in retained earnings.

Long Term Borrowings

Long Term Borrowings of the Company mainly comprise of Bonds, Secured Term Loans & Unsecured Loans (Bonds, Term Loans and Foreign Currency Loans) amounting to Rs 9,921.57 crore, Rs 11,500.80 crore and Rs 10,838.10 crore in Fiscal 2025 as against Rs 11,792.15 crore, Rs 10,165.60 crore and Rs 5,965.47 crore respectively in Fiscal 2024. The Secured loans include borrowings from domestic banks and financial institutions along with corporate bonds raised in the capital markets that are secured against assets of the Company.

The increase in Long Term Borrowings to the extent of 15.53% over previous fiscal is mainly on account of borrowings from domestic & foreign banks and issue of AE series Bonds partly offset by redemption of secured bonds and repayment of borrowings.

Lease Liabilities (Current & Non-Current)

Lease Liabilities accounted for as per Ind AS 116 - Leases as at March 31, 2025 stood at Rs 22.70 crore against Rs 25.67 crore for the previous fiscal.

Other Financial Liabilities (Current & Non-Current)

Other Financial Liabilities include amount payable towards Bonds fully serviced by Govt. of India, interest accrued but not due on borrowings, Liability against capital works/ supplies, EMD/ Retention Money, etc. The other financial liabilities as at March 31, 2025 stood at Rs 4,179.51 crore against Rs 4,186.10 crore for the previous fiscal i.e. there is a decrease of 0.16% over figures of previous fiscal mainly due to decrease in payable to others/ employees (Rs 113.24 crore), derivative mark to mark (Rs 20.95 crore) partly offset by increase in Currency option premium by Rs 63.83 crore and increase in retention money by Rs 64.78 crore. Provisions (Current & Non-Current)

Provisions include provision for employee benefit expenses viz. Performance Related Pay, Superannuation/ Pension fund and Provision towards long term employee benefits arrived at on the basis of actuarial valuation. Other Provisions include Provision for Restoration expenses of Insured Assets, Provision for Tariff Adjustment, Provision for Committed Capital Expenditure, Provision in respect of Arbitration award/Court cases and Other Provisions. Total provisions stood at Rs 2,022.79 crore as at March 31, 2025 as against Rs 1,353.01 crore for previous fiscal i.e. there is an increase of 49.50% over figures of previous fiscal mainly due to increase in Provision For Employee Remuneration-Pay Anomaly (Rs 562.29 crore), Provision For Committed Capital Expenditure (Rs 105.95 crore), and Provision - Others (Rs 247.70 crore) partly offset by decrease in Provision for Restoration expenses of Insured Assets (Rs 91.43 crore), Provision for Performance Related Pay/Incentive (Rs 67.72 crore) and Provision in respect of arbitration award/court cases (Rs 94.19 crore).

Deferred Tax Liabilities

The Deferred Tax Liabilities as at March 31, 2025 stood at Rs 1,861.69 crore against Rs 1,668.45 crore for the previous fiscal i.e. there is increase of 11.58% over figures of previous fiscal mainly due to utilisation of MAT credit amounting of Rs 270.76 crore.

Other Non-Current Liabilities

Other Non-Current Liabilities include Income received in advance (Advance against Depreciation) and Grants in- aid from Government. The Other Non-Current Liabilities as at March 31, 2025 stood at Rs 2,691.22 crore against Rs 2,250.06 crore for the previous fiscal i.e. there is an increase of 19.61% over figures of previous fiscal mainly due to increase in Grants in aid received from Government of India for Downstream Protection Measures at Subansiri Lower Project C40.00 crore) and for Flood Moderation & Enabling Infrastructure in respect of Dibang Project (Rs 486.24 crore) partly offset by decrease in income received in advance - Advance Against Depreciation (Rs 50.42 crore) and amortisation of grant for Chutak, Nimoo Bazgo and Kishanganga power stations C32.14 crore).

Short Term Borrowings

The Short term borrowings as at March 31, 2025 stood at Rs 3,718.73 crore against Rs 3,052.77 crore for the previous fiscal. Increase in short term borrowings is mainly due to increase in current maturities of long term borrowings (Rs 407.06 crore) and Loan Repayable on Demand (Rs 450.00 crore) partly offset by decrease in amount payable to the banks by the beneficiaries on account of bills discounted against trade receivables (Rs 191.10 crore).

Trade Payables

The Trade payables as at March 31, 2025 stood at Rs 298.04 crore against Rs 261.51 crore for the previous fiscal i.e. there is an increase of 13.97% over figures of previous fiscal due to increase in unbilled amount of Trade payables C66.54 crore) partly offset by decrease in other payables (Rs 30.01 crore).

Other Current Liabilities

The other current liabilities as at March 31, 2025 stood at Rs 785.88 crore against Rs 661.27 crore for the previous fiscal i.e. there is increase of18.84% over figures of previous fiscal mainly due to increase in water usage charges payable (Rs 46.21 crore), Statutory dues payable (Rs 39.78 crore), Contract Liabilities-Project Management/ Consultancy Work (Rs 38.76 crore) and Advance from Customers and Others C15.23 crore) partly offset by decrease in Contract Liabilities-Deposit Works C15.35 crore).

Regulatory Deferral Account Credit Balances In line with the Guidance Note on "Accounting for Rate Regulated Activities" issued by the Institute of Chartered Accountants of India and Ind-AS 114-Regulatory Deferral Accounts, Regulatory Deferral Account Credit Balances has been recognized in respect of MAT Credit to be passed on the beneficiaries. Regulatory Deferral Account Credit Balances as at March 31, 2025 stood at Rs 923.20 crore (March 31, 2024 Rs 923.20 crore).

Current Tax Liabilities

The current tax liabilities as at March 31, 2025 stood at Rs 8.40 crore against Rs 54.45 crore for the previous fiscal. This represents excess provision of current tax over and above Advance Tax & TDS.

OFF-BALANCE SHEET ITEMS Contingent Liabilities

The following table sets forth the components of our contingent liabilities for Fiscal 2025 and 2024:

(Rs in crore)

Particulars	Fiscal 2025	Fiscal 2024
Claims against the Company not acknowledged as debts in respect of:
Capital Works	4,967.35	7,643.84
Land Compensation Cases	69.04	153.86
Disputed Tax matters and Other Items	3,234.10	1,467.76
Total	8,270.49	9,265.46

Contingent liabilities decreased by 10.74% from Rs 9,265.46 crore as of March 31, 2024 to Rs 8,270.49 crore as of March 31, 2025 mainly due to contractors claim of Rs 732.32 crore settled under the Vivad se Vishwas-II Scheme (Contractual Disputes) notified by the Government of India (Previous year Rs 676.32 crore), reduction in contractors claims due to provision made in respect of advances paid against arbitration award/court order by Rs 1,517.39 crore and arbitration awards settled in favour of the Company and others by Rs 1,520.11 crore partially offset by addition of claims under disputed tax matters (Rs 2,060.01 crore) and addition of interest on existing claims of contractors (Rs 714.84 crore).

Key Financial Ratios (Standalone basis)

S. No. Ratios	Fiscal 2025	Fiscal 2024	% Change
1 Debtors Turnover Ratio (Revenue from Operation/Average Debtors)	2.12	1.69	25.14
2 Inventory Turnover Ratio (Revenue from Operations/Average Inventory)	41.73	50.04	(-) 16.61
3 Interest Service Coverage Ratio (ISCR) # (Profit after Tax but before Interest and Depreciation/ Interest)	3.93	5.87	(-) 33.08
4 Debt Service Coverage Ratio (DSCR) # (Profit after Tax but before Interest and Depreciation/ Principal repayment excluding payment under put option and Interest)	2.52	2.74	(-) 8.20
5 Current Ratio (Current Assets/ Current Liabilities)	0.94	1.02	(-) 7.61
6 Debt Equity Ratio (Paid up Debt Capital/ Shareholders Equity)	0.99	0.89	(-) 11.92
7 Operating Profit Margin (Operating Profit/ Revenue from Operations) (%)	40.38%	40.06%	0.78
8 Net Profit Margin (Net Profit/ Revenue from Operations) (%)	34.29%	44.33%	(-) 22.64
9 PE Ratio (Market Price Per Share*/ Earning Per Share)	26.79	24.16	10.87
10 EBITDA (Rs in crore)	6,131.00	5,877.16	4.32
11 EBITDA Margin (EBITDA/ Revenue from Operations) (%)	68.17%	70.00%	(-) 2.61

# For the calculation of ISCR and DSCR, amount of interest and Principal repayments against the borrowings of the operational projects have been considered.

* Closing Price as on 31st March of respective Fiscal has been considered for Market Price per Share.

Debtors Turnover Ratio

Debtors Turnover Ratio of the Company at the end of Fiscal 2025 increased to 2.12 from 1.69 in the previous Fiscal 2024 registering an increase of 25.14% due to lower average debtors in the fiscal 2025 as compared to fiscal 2024.

Interest Service Coverage Ratio

Interest Service Coverage Ratio of the Company at the end of Fiscal 2025 decreased to 3.93 from 5.87 in the previous Fiscal 2024 registering a decrease of 33.08% due to increase in finance cost on account of Interest on arbitration/court cases during fiscal 2025.

Return on Net worth (PAT/ Average Shareholders Equity)

Return on Net worth of the Company at the end of Fiscal 2025 decreased to 8.16% from 10.24% in the previous Fiscal 2024 registering a decrease of 20.33% mainly due to decrease in Profit after Tax and increase in Other Equity. Business Combination

During the fiscal 2025, Lanco Teesta Hydro Power Limited (LTHPL), a wholly owned subsidiary of NHPC Limited, merged with NHPC Limited consequent upon the Order of Ministry of Corporate Affairs approving the Scheme of amalgamation between LTHPL and NHPC Limited received on January 2, 2025 with the Appointed date being April 1, 2022. Accordingly, previous year figures, wherever applicable, has been restated.

BUSINESS AND FINANCIAL REVIEW OF SUBSIDIARIES/ ASSOCIATE COMPANIES:

Highlights of the subsidiaries and joint venture companies of NHPC are as under: - NHDC Limited

NHDC Ltd. was incorporated on August 1, 2000 as a Joint Venture having authorised share capital of Rs 3,000 crore. NHDC has commissioned Indira Sagar Power Project (1,000 MW) and Omkareshwar Power Project (520 MW). The Total Income of NHDC Ltd. for the financial year ended March 31, 2025 and 2024 was Rs 1,594.64 crore and Rs 1,500.27 crore respectively. The Profit After Tax of NHDC Ltd. for the financial year ended March 31, 2025 and 2024 was Rs 836.96 crore and Rs 812.24 crore respectively. Paid up share capital of the Company is Rs 1,962.58 crore of which NHPCs contribution is Rs 1,002.42 crore. During the financial year 2024-25, the Company has commissioned the 88 MW Floating Solar Project, Omkareshwar in the State of Madhya Pradesh.

Loktak Downstream Hydroelectric Corporation Limited (LDHCL)

LDHCL was incorporated on October 23, 2009 as a Joint Venture having authorized share capital of Rs 230 crore.

Paid up share capital of the Company is Rs 142.65 crore of which NHPCs contribution is Rs 105.56 crore. Considering the delay in investment sanction (PIB & CCEA) and high projected tariff, impairment provision for the entire investment of NHPC in LDHCL was created in the books of the NHPC Limited during the financial year 2022-23. The Company is yet to start construction activity.

Bundelkhand Saur Urja Limited (BSUL)

BSUL was incorporated on February 2, 2015 as a Joint Venture. The authorized share capital of the Company is Rs 450 crore. Paid up share capital of the Company is Rs 115.78 crore of which NHPCs contribution is Rs 102.83 crore (88.82%). The Total Income of BSUL for the financial year ended March 31, 2025 and 2024 was Rs 28.50 crore and Rs 8.62 crore respectively. The Profit After Tax of BSUL for the financial year ended March 31, 2025 and 2024 was (-)4.25 crore and (-)3.69 crore respectively. The Company has commissioned 65 MW Kalpi Solar Power Project during financial year 2023-24. The Company is involved in construction of other solar projects and solar parks in the state of Uttar Pradesh.

Jalpower Corporation Limited (JPCL)

On March 31, 2021, NHPC had acquired JPCL under insolvency resolution process and the Company had become a wholly owned subsidiary of NHPC from that date. The acquisition was made as per the resolution plan submitted by NHPC and approved by the National Company LawTribunal (NCLT).The authorized share capital of the Company is Rs 600.00 crore. Paid up share capital of the Company is Rs 533.10 crore. The Company is involved in construction of 120 MW Rangit-IV Hydroelectric Project. The Company is yet to start operation.

Ratle Hydroelectric Power Corporation Limited (RHPCL)

RHPCL was incorporated on June 1, 2021 as a Joint Venture. The authorized share capital of the Company is Rs 1,600 crore. Paid up share capital of the Company is Rs 860.04 crore of which NHPCs contribution is Rs 493.71 crore (57.41%). The Company is involved in construction of 850 MW Ratle Hydroelectric Power Project. The Company is yet to start operation.

Chenab Valley Power Projects Limited (CVPPL)

CVPPL was incorporated on June 13, 2011 as aJoint Venture for execution of Pakal Dul, Kiru & Kwar H.E. Projects in Chenab River Basin. The authorized share capital of the Company is Rs 8,000 crore. Paid up share capital of the Company is Rs 5,630.01 crore out of which NHPCs contribution is Rs 3,330.10 crore. The Companys shareholding in CVPPL due to additional equity infusion is 59.15% as on March 31, 2025. The Company is involved in construction of 3 Hydroelectric Power Projects totalling 2164 MW in the UT of J&K. The Company is yet to start operation.

NHPC Renewable Energy Limited (NHPC REL)

NHPC REL was incorporated on February 16, 2022 as a wholly owned subsidiary of NHPC Ltd. The authorised share capital and paid up share capital of the Company are Rs 499 crore and Rs 20 crore respectively. The Company has commissioned 700KW Solar Plant in Rajasthan during the current fiscal. Total Income of NHPC REL for the financial year ended March 31, 2025 and 2024 was Rs 1.60 crore and Rs 1.29 crore respectively. The Profit After Tax of NHPC REL for the financial year ended March 31,2025 and 2024 was Rs 1.05 crore and Rs 0.97 crore respectively. The Company is exploring options for setting up non-conventional/ renewable energy projects.

National High Power Test Laboratory Private Limited (NHPTL)

NHPTL was incorporated on May 22, 2009 as a Joint Venture Company of NHPC Ltd., NTPC Ltd., PGCIL and Damodar Valley Corporation (DVC) each having 25% of equity participation. During the fiscal 2013, Central Power Research Institute also entered into the Joint Venture(JV) thereby revising the equity participation to 20% of each JV partner. As on March 31, 2025 the paid up share capital of the Company was Rs 285.09 crore out of which share of NHPC is 12.50% amounting to Rs 35.64 crore. Investment provision of Rs 18.68 crore has been created in respect of NHPCs investment. The Company has set up Online High Power Test Lab and Short Circuit test facility in the State of Madhya Pradesh.

The Company has started commercial operation during Fiscal 2018. As per the management signed financial statement for the financial year ended March 31, 2025, the Company earned profit of Rs 18.86 crore against Rs 21.34 crore during fiscal 2024.

Consolidated Financial Statements of NHPC Ltd, its Subsidiaries and Associate Companies

The Consolidated Financial Statements have been prepared in accordance with Ind AS 110-Consolidated Financial Statements and Ind AS 28-Investment in Associates & Joint Ventures which are included in this Annual Report.

A brief summary of the results on a consolidated basis is given below:

(Rs in crore)

Particulars	Fiscal 2025	Fiscal 2024
Total Income	11,729.31	10,993.91
Total Expenses	7,241.92	6,378.86
Profit after Tax (PAT)	3,411.73	3,999.54
PAT attributable to NHPC Ltd.	3,006.67	3,595.95

SUMMARY OF CONSOLIDATED BALANCE SHEET

C in crore)

Particulars	Fiscal 2025	Fiscal 2024
Non-Current Assets (Financial Assets)	9,806.73	9,613.98
Non-Current Assets (Other than Financial Assets)	74,403.81	64,686.10
Current Assets (Financial Assets)	9,665.83	9,818.36
Current Assets (Other than Financial Assets)	1,593.80	1,083.25
Assets classified as held for sale	1.83	1.29
Regulatory Deferral Account Debit Balances	7,205.71	7,061.90
Total	1,02,677.71	92,264.88
Total Equity (including non- controlling interest)	45,163.06	43,858.56
Non-Current Liabilities (Financial Liabilities)	38,033.21	31,670.06
Non-Current Liabilities (Other than Financial Liabilities)	8,090.67	6,772.72
Current Liabilities (Financial Liabilities)	6,830.77	6,004.41
Current Liabilities (Other than Financial Liabilities)	3,345.65	2,611.15
Regulatory Deferral Account Credit Balances	1,214.35	1,347.98
Total	1,02,677.71	92,264.88

36.14 MATERIAL DEVELOPMENT IN HUMAN RESOURCES AND INDUSTRIAL RELATIONS FRONT

Your Company has a highly talented team of committed professionals and has been able to induct, develop and retain the best talent. NHPC endeavors to acquire the best talent in the Country from leading educational institutions and universities. It has been working towards nurturing and retaining talent by providing opportunities to improve their knowledge and skills. Job rotation and inter-location transfer throughout the Organization facilitate planned development of careers and broaden the outlook of employees. Employees participation has been ensured through information sharing with employees, seeking their support, suggestions and co-operation.

(i) TRAINING OF EMPLOYEES

NHPCs vision towards human resource development is to develop and nurture its employees to leverage their fullest potential to make NHPC an employer of choice in the talent market. Company is strongly focused towards lifelong learning and competency development of its employees for their overall capacity building by improving their performance and enhancing organizational capabilities. Training programmes to employees are facilitated through internal faculty as well as through external agencies. Considering the future training needs due to advancing technologies, NHPC recognizes the need to adopt modern and scientific training methodologies and to create an infrastructure accordingly. In the year 2024-25, total 3114 number of employees participated in various training programs which includes 332 Female employees, 1539 Employees belonging to SC/ST & OBC categories and 130 Differently Abled Employees.

(ii) EMPLOYEE STRENGTH

The employee strength of the Company as on March 31,2025 was 4577 (3166 executives, 509 supervisors and 902 workmen).

(iii) WELFARE MEASURES FOR WOMEN EMPLOYEES

The number and percentage of women employees as on March 31,2025 is given in the table below:

Total no. of employees	No. of women employees	% of overall employee strength
4577	468	10.2

Steps taken for the welfare of women employees

• Women employees are regularly nominated to various programmes/seminars on women empowerment and other issues related to women.

• Women employees are eligible for child care leave with pay upto 730 days for taking care of two children upto the age of 18 years (no age limit in respect of child with minimum disability of 40%).

• Internal Complaints Committees (ICCs) have been constituted at all locations of the Company to examine the grievances/ complaints relating to sexual harassment of women employees.

• Women representatives are nominated on selection Board/Committee constituted for promotion/recruitment of employees.

• 12 Weeks Maternity Leave to Commissioning mothers on delivering child through surrogacy is allowed.

• NHPC Corporate Office, Faridabad has Creche facility for employees with infants in the age group of 6 months to 6 years.

• Relaxations in attendance timings are given to women employees posted at Corporate Office.

• WIPS (Women in Public Sector Forum) Cell has been constituted in Corporate Office.

• International Womens Day 2025 was celebrated on March 11, 2025 not only to commemorate the occasion and honor the strides made toward gender equity and womens empowerment, but also to critically reflect on and recognize the remarkable achievements and invaluable contributions of our outstanding women employees.

• "Matritva"- A special welfare scheme for Female employees is introduced which aims at providing unwavering support and care to the female employees who is on the way to embrace motherhood and continuing their office duties. Under this Scheme, the expecting mothers are served with a bowl of cut fruit/ handful of dry fruits/milk, juice, etc. once in a day to ensure proper nutrition during working hours. They are also provided with paddle stool to help them in elevating their feet to ensure comfortable sitting posture. A planter and a picture is also provided at their workspace to uplift their mood and bring positivity around.

(iv) WELFARE MEASURES AND RESERVATION FOR SCHEDULED CASTE (SC), SCHEDULED TRIBE (ST) AND OTHER BACKWARD CLASSES (OBC)

Your Company is providing reservation and relaxation to SC/ST and OBC candidates in direct recruitment as per guidelines issued by DoPT from time to time. The relaxed standard and reservation is also applicable to SC/ST employees, while considering them for promotion. The management holds periodical meetings with SC/ST/OBC employees for discussing various issues related to them. SC/ST and OBC Cells headed by separate Liaison Officers have been set up for the welfare of SC/ST and OBC employees. Representation of SC/ ST/OBC employees is given in table below:

Total no. of employees	REPRESENTATION
	SC	%	ST	%	OBC	%
4577	711	15.53	364	7.95	1078	23.55

(v) WELFARE MEASURES FOR DIFFERENTLY ABLED EMPLOYEES:

Representation of differently abled employees as on March 31, 2025 is given in table below:

Total no. of employees	Differently abled employees			% of differently abled employees
	VH	HH	OH	TOTAL	%
4577	13	7	109	129	2.81

VH=Visual Handicap, HH=Hearing Handicap,OH=Orthopaedic Handicap

Steps taken for the welfare of differently abled employees:

Reservation and relaxation are provided to differently abled candidates/employees in direct recruitment and promotion as per guidelines issued by DoPT/Ministry of Social Justice & Empowerment from time to time. In addition to above, following welfare schemes have also been extended to differently abled employees:-

• Differently abled employees as well as employees who are care giver to dependent physically/mentally disabled child are exempted from rotational transfer. These employees are given option about their preference in place of posting at the time of transfer/promotion.

• Financial assistance is provided to employees (who get physically handicapped while in service) for vocational training.

• Reimbursement of expenses for purchase of hearing aid is given to hearing impaired employees/their dependents.

• Reimbursement of the cost of artificial limbs and interest free loan are being given to employees/ their dependents.

• Restriction of age is not applicable in respect of special children for considering them as dependents for medical benefits.

36.15 ENVIRONMENT PROTECTION AND CONSERVATION, TECHNOLOGICAL

ABSORPTION, RENEWABLE ENERGY DEVELOPMENTS & FOREIGN EXCHANGE CONSERVATION

(i) Environment Protection and Conservation:

Environmental Impact Assessment (EIA) for NHPC projects is undertaken during investigation stage to identify probable impacts on environment. Based on the findings of EIA studies, mitigatory Environmental Management Plans (EMPs) are proposed and implemented to ameliorate the adverse impacts of the project by taking necessary measures like; compensatory afforestation, catchment area treatment, biodiversity conservation, green belt development, fishery management, rejuvenation of dumping and quarry sites including rehabilitation & resettlement of PAFs. Environment and Diversity Management Division has been established at the Corporate Office as well as projects/power stations to monitor and facilitate implementation of environmental safeguard measures in respective projects/power stations.

Compliance under Corporate Environment Policy:

Your Company has also formulated Corporate Environment Policy, 2022, Biodiversity Policy, 2023, Waste Management Policy, 2023 and Water Conservation Policy, 2023 to institutionalize environmental protection measures in its quest for sustainable development of clean power. Six monthly compliance reports on environmental aspects of Projects/ Power Stations for the periods ending March, 2024 and September, 2024 were submitted to Ministry of Environment, Forest and Climate Change (MoEF&CC), Government of India and its concerned Integrated Regional Offices. These reports were also uploaded on the website of the Company i.e. www.nhpcindia.com. The Company evaluates the effectiveness of the management plans implemented during the course of construction of a project. Additionally, post construction EIA studies of Uri (UT of J&K), Rangit (Sikkim), Dhauliganga (Uttarakhand), Teesta-V (Sikkim) and Uri-II (UT of J&K) Power Stations had been carried out. NHPC has also conducted sustainability assessment of Teesta-V Power Station (Sikkim) through Sustainability Assessment Protocol of International Hydropower Association (IHA) for operational projects. As per the findings of the assessment, out of 20 parameters on which the Teesta-V Power Station was assessed, it meets basic good practices on all parameters, meets proven best practice on 6 parameters and exceeds basic Good Practice on 9 parameters.

(ii) Sustainability Initiatives:

NHPC has been preparing Sustainability Report w.e.f. financial year 2021-22 on GRI Standards. Also, NHPC had actively participated in S&P Global Corporate Sustainability Assessment Survey (CSA)- 2024 and 2025. Based on CSA analysis on Dow Jones Sustainability World Index, NHPC has achieved S&P Global ESG Score of 61 in March, 2025. Earlier, S&P Global had provided ESG Score of 48 to NHPC (March, 2024). Enhanced ESG scores of NHPC signify a more robust commitment to environmental stewardship, social responsibility and effective governance practices. The Sustainability reports are available on website of the Company at https:// www.nhpcindia.com/welcome/page/393.

(iii) Renewable Energy Developments:

Your Company is diversifying its activities to explore renewable energy projects. The details of renewable energy projects are given elsewhere in the Report.

(iv) Foreign Exchange Conservation:

In accordance with "Make in India" Policy of Government of India, your Company is making efforts to encourage the participation of local firms in the bidding process. The participation of local firms as well as Micro & Small Enterprises helps in conservation of foreign exchange and growth of Indian industry at large.

(v) Technological Absorption:

Information regarding technology absorption has been included elsewhere in this Report.

36.16 CORPORATE SOCIAL RESPONSIBILITY

Information regarding Corporate Social Responsibility has been included elsewhere in this Report.

36.17 CAUTIONARY STATEMENT

The views and forward-looking statements contained in this Report are based on reasonable assumptions and subject to certain risks and uncertainties that could cause actual results to differ from those reflected in such statements.

Readers are requested to review and confirm with other information in this Report and in the Companys periodic Reports. The Company undertakes no obligation to publicly update or revise any of these forward-looking statements whether as a result of new information, future events or otherwise. The financial figures shown in Management Discussion and Analysis are based on the audited results of the Company.

37 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS & OUTGO

The particulars as required under Section134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014, in respect of Conservation of Energy, Technology Absorption and Foreign Exchange Earnings & Outgo are as under:

A. CONSERVATION OF ENERGY

(i) Steps taken or impact on conservation of energy

• NHPC Limited is committed to integrate energy conservation measures into all aspects of its operations and delivering services, focusing on optimizing energy utilization throughout the Organization. This commitment is reflected in "Conservation of Energy Policy," which aims to promote the efficient use of energy in both conventional and non-conventional power generation.

• Energy Conservation Task Force has been constituted at Corporate Office for creating awareness amongst users, monitor effectiveness of measures adopted for energy conservation and provide vertical and horizontal feedback to the Management/ users. Energy Conservation Task force suggests time to time measures for the Energy Saving at Corporate Office.

• In Neer Shakti Sadan, Corporate Office Lighting/temperature is controlled through Building Management System, occupancy sensor and timers. The Senior Office Room, Corridor, general common toilets, restrooms are equipped with state-of-the-art motion detectors/sensors. Energy efficient lights like LED bulbs and tubes are installed in the building.

• Electric Vehicle (EV) charging points has been established in the Neer Shakti Sadan Office Complex, promoting use of EV.

• Power efficient Equipments/systems that have star ratings are procured. Five star rated air- conditioner/refrigerators are procured and installed. Water pump with star rating are procured and installed.

• The maximum available star rating Energy Efficient appliances are purchased for replacing old appliances.

• Monthly maintenance of 900 TR (Tons of Refrigeration) and 1200 TR capacity HVAC (Heating Ventilating Air Conditioning) system/ equipment is being taken up to guarantee efficient operation throughout the year. The operation of the HVAC system for building space cooling is being regulated by BEE recommended optimum temperature setting i.e. 24-25 degree Celsius.

• For illumination, LED streetlight/solar PV standalone street light are installed at NHPC office Complex/Residential Complex. Energy Efficiency in Street Lighting is being achieved by replacing old inefficient street lights with energy efficient LED street lights. As an Energy Conservation measure, different types of conventional light fittings CFL, FTL, conventional outdoor as well as indoor lights are being replaced with high efficacy/lumen level and less wattage consumption LED Light fittings.

• The roof top of the office building have been treated for reducing the heat/temperature impact on the floor/building.

(ii) Steps taken by the Company for utilizing alternate sources of energy

80 kWp and 150 kWp capacity grid Solar Power Plant has been installed at the roof top of the building of Corporate Office, Sector-33, Faridabad. 1000 kWp grid connected Roof top Solar PV Plant has been installed at Residential Complex, Sector-41, Faridabad. The maintenance of the plant is being taken up on regular basis for obtaining maximum output. Break-even point for the 80 kWp and 150 kWp Solar PV Power Plant has been achieved.

(iii) Capital investment on energy conservation equipments

Capital investment on energy conservation equipments has been around Rs 14.05 lakh.

B. TECHNOLOGY ABSORPTION

(i) Efforts made towards technology absorption

a) R&D projects completed in financial year 2024-25:

Optimization of Earthmat Design by

Resistivity Imaging Technique:

• Hydro power plants are in general located in rocky areas where higher resistivity values are encountered and denser grid is used for achieving desired earth mat resistance. Hence, finer details of ground resistivity are essentially required to design a safe, economic and effective earth mat.

• Resistivity imaging technique is a fast emerging technique and can handle the continuous details of subsurface resistivity distribution through resistivity imaging survey, economic and optimum design of earthmat can be achieved.

• Its benefit is to minimize costs by optimizing the design of earth mat fixing during construction using 3-D RI software Res3DinV for 3-D data processing and interpretation, utilizing FEM and FDM techniques.

• Measurement of resistivity of ground surface through the conventional method is neither precise nor cost effective. Also conventional method of resistivity measurement is cumbersome and time consuming in comparison to resistivity Imaging Technique.

b) Ongoing R&D Projects:

i) 3 Green Hydrogen Pilot Projects Located at Chamba, (H.P), Kargil, UT of Ladakh and NBPS Guest House, Leh:

• The benefits of the project include the absorption of new technology, which appears as a future source of energy in the power sector.

• Technology has the potential to help in integration with renewable energy and the grid.

• It helps in achieving Net Zero carbon emission goal set by Govt. of India.

• Based on the performance of these pilot projects and their commercial viability, large scale green hydrogen energy projects will be undertaken in the future in the fields of transportation, power industry and setting up of micro grids.

• Exploring options for Green energy and environmental protection.

• NHPC has taken two type of Green Hydrogen Pilot project: Green Hydrogen Pilot Project based Fuel Cell Micro Grid 25 Kwe for NHPC Guest House at Nimoo Bazgo Power Station, Alchi, Leh and Green Hydrogen mobility project at Kargil and Chamba district.

• All the above R&D projects are under different stages of execution. On successful completion and based on the performance of these projects, commercial viability and environment impact will be assessed.

ii) Glacial lake Outburst Flood (GLOF) of Hydro-electric Projects of NHPC:

• Technical collaboration and capacity building on monitoring of glacial lakes using satellite data and development of framework and establishment of Early Warning System Methodology.

• Monitoring of glacial lakes in 26 (in 9 basins) hydropower stations by NHPC with hand holding of National Remote Sensing Centre (NRSC).

• Ranking and prioritization of glacial lakes in 26 (in 9 basins) NHPC hydropower stations jointly by NHPC and NRSC.

• Formulation of methodology and development of Early Warning Systems (EWS) for threshold risk for an individual lake will be established.

• NHPC has more than 26 Hydropower Projects in Himalayan Region which may be subjected to GLOF so it has become important to continuous monitor and manage GLOF eventually to minimize any risk or disasters.

• Around 3200 potential glacier lakes have been identified in 8 catchments of 26 projects of which 753 are above area of 5 ha. First, report for 753 lakes on GLOF is being framed in consultation with NRSC for lakes above 5 ha area. Second report on 1411 Glacier lakes has been completed and submitted with NRSC.

iii) Modification of Trench Weir at Bhaledh (Bairasiul Power Station) i/e Design, Manufacturing, Supply and Erection of modified trash rack along with necessary civil works:

• The main purpose of this R&D project is to enhance the water impounding capacity of 02 trench weirs. It is pertinent to mention here that 02 trench weirs have been constructed across the Bhaledh Nala and both the trench weirs open in a feeder tunnel. The BFT (Bhaledh Feeder Tunnel) feeds the impounded water from Bhaledh Nala to upstream reservoir of Bairasiul Dam.

• The rolling stones and boulders dislodge the trench covers and chocks the trench weirs as a result the water intake into the BFT reduces significantly. The rolling boulder and stones not only chocks the trench weirs but also damages the trench covers and trench weirs itself. Under the R&D project, modification in trench covers and in apron, has been made so that the trench weirs dont chocks and quantity of impounding water into the trench weirs may increase.

• The civil as well as HM works have been completed and the performance evaluation of projects will be carried out over the successive years. The success of the project will be assessed in financial term with the increase in power generation in successive years.

• Also success of the R&D Project provide the solution for similar nature of problems at other geographical locations of NHPC.

iv) Conduct a study for generation capacity enhancement to Tanakpur Power Station:

• Originally, the design capacity of the Tanakpur Power Station was 120 MW. However, a downstream state power plant has revised the net head of Tanakpur Power Station to 21 meters.

• Due to the Sharda Barrage construction, its revised capacity is 31.4 x 3 (94.2) MW. However, all electrical and mechanical components were designed to bear a capacity of 40 MW.

• The main benefit of this study is to explore the alternatives of runner blade profile to increase the highest turbine output and increase overall generation and PAF at the existing Net Head on other existing parameters.

• The project is in tendering stage.

v) Leverage Technology of Bolted runner to mitigate sedimentation and erosion challenges in hydropower turbine:

• In Rangit Power Station, silt problem is severe and runners are replaced almost every year. Power Station does not have extensive reservoir in which substantial sedimentation can take place. Repeated repair of runners and silt laden environment will have an impact on the efficiency and strength of runner and it may decrease in the long run, resulting in energy loss.

• Transportation for repair of the whole runner poses major problems and involves a considerable repair cost. In case of bolted runner if the repair and coating of the damaged blade is required, it can be removed from the runner and send to workshop at a reasonable cost.

• Hard Coating can be applied on 100% of the wetted surfaces.

• Reduced Downtime and better mechanical properties.

• Present status of project - under tendering stage.

vi) Installation of Archimedes Screw turbine at Dam for utilizing E-flow and Power House TRT for utilizing water of TRT in Sewa-II Power Station:

• NHPC dams and reservoirs are required to maintain a minimum environmental flow of 15% of the average lean season flow as per the compliance of the NGT order. This regulation impacts NHPC power stations, preventing them from achieving design energy targets.

• To mitigate this, utilizing the environmental flow water for power generation to support lighting and auxiliary consumption at dams and powerhouses can significantly enhance saleable energy. Additionally, this approach reduces the reliance on fossil fuels, thereby lowering the carbon footprint and contributing to global sustainability efforts.

• Generate electricity utilizing untapped renewable energy sources through environmental flow (e-flow).

• Establish a reliable and additional source of energy at the dam and power house.

• Present status of project - under tendering stage.

vii) Development of Micro hydro Power project utilizing mandatory E-flow at exit location of dam at Parbati-III:

• An alternative way to increase electricity generation by using untapped environmental flow water (e-flow) at Dam/Reservoir. Pump as Turbine (PAT) technology need to be established through the pilot project in NHPC project site.

• Reduce carbon footprint by harnessing sustainable energy methods.

• Establish a reliable and additional source of energy at the dam and power house.

• Implement efficient and proven generation technology tailored for environmental flow compliance.

• Present status of project - fixing of technical specification and approval of QAP under process.

viii) Installation & Commissioning Online Transformer Dry out System at TLDP-IV Power Station:

The benefits of an online Transformer Dry out system are as follows:

• Reduce Downtime: By allowing transformer to remain in operation during the moisture removal process, these systems help minimize the downtime of critical infrastructure.

• Cost Effective: Since transformer do not need to be taken offline for maintenance, the overall cost associated with maintenance and repair are reduced.

• Improved Reliability: Removing moisture from transformer helps to preserve the insulating material, thereby improving the overall reliability and longevity of the transformer.

• Prolonged Equipment Life: Regular moisture removal helps prevent aging and degradation of transformer components, extending the lifespan of transformer.

• Present status of project: Technical bids opened and evaluation of bids is under progress.

ix) Online monitoring of the healthiness of generator transformer of Salal Power Station:

The benefits of online monitoring of transformers are as follows:

• The R&D proposal is a single solution which can give reliable indication for all primary/derived parameters of Transformer, instead of separate condition monitoring system for each individual parameter. This R&D proposal will enable the Power Station to take preventive measures and enhance the useful life of transformers.

• Further, the analysis of the results can be done centrally from Corporate Office, Faridabad and proper and uniform health monitoring strategy can be implemented across NHPC Power Stations. This will curtail the intensity of damage to the transformer, Loss and insurance Claims.

• Present status - Under tendering stage.

x) Projects taken up in collaboration with IIT

Roorkee:

• Development of inflow forecasting system for Chamera-III Power Station:

Inflow Forecasting is important for Dam safety, better planning for operation of machine, generation of schedule on day-to-day basis. The information shall be useful for downstream projects. The hydro-metrological data in catchment and the climate changes in the catchment will be better known. LOA has been issued for purchase of equipment for this work and supplies are awaited.

• Minimizing of damages due to delay diminishing of fault current in case of phase-to-phase short circuits fault in stator winding:

? A collaborative research initiative has been undertaken with IIT Roorkee to explore potential solutions for minimizing the duration of fault currents and developing mathematical models to validate the performance of these solutions.

? The proposed techniques will be developed and tested in the Hydro Power Simulation Laboratory of the Water Resources Department and Management, IIT Roorkee, ensuring thorough validation and performance analysis under simulated conditions.

? It helps in reducing the risk of damage of Generator components like Stator Bars etc., saving the life of other installations in Generator by reducing the risk of fire, reducing the outage time due to fire which will help in saving revenue for the Organization in terms of PAF and Energy Charges.

? Present status - a preliminary draft report has been submitted by IIT Roorkee.

• Development of Himalayas Specific

Attenuation Relationship utilizing

SMA data from NHPC network:

? NHPC is running and maintaining a Strong Motion Accelerograph (SMA) network of 57 Accelerograph at its Power Stations. In joint collaboration with DEQ-IITR, first phase Ground Motion Prediction Equation (GMPE) was developed for Himalayan Region. In phase 2 study, the GMPE need to be refined and improved by considering a sanitized data set of SMA with relevant meta-information such as fault mechanism, source geometry, site characterization. The strong motion data from the dam body will also be analysed along with the data recorded at the Dam foundation and free-field for characterizing the structural response and identifying the structural model parameters for tracking those over the time and correlating these model properties with the water level in the reservoir.

? The seismic Hazard estimation for NHPC project will be more realistic with developed GMPE and this will lead to optimization of Civil Design parameter estimation for Himalayan project which in turn will result in saving of cost of civil structures.

? Present status - Project is under progress.

xi) Projects taken up in collaboration with IIT Kanpur:

• Development of Design Guidelines/

Charts for quick estimation of Caverns behaviour and support layout including openings based on 3D Finite Element Method (FEM) Analysis:

? The objectives of this Project is safe and economic design of underground caverns of various upcoming projects having underground caverns. This aims to develop easy-to-use design charts/ guidelines based on advanced 3D numerical analysis for direct estimation of optimal cavern dimensional parameters and external support requirements, without undergoing detailed computational analysis.

? IIT Kanpur has submitted the final draft report which is under evaluation.

xii) Projects taken up in collaboration with NIT Durgapur:

• Development of Partial Discharge Monitoring Solutions for High Voltage Electrical Apparatus:

? This R&D Project can help NHPC to move towards a "Predictive Maintenance Practice" from its current Preventive Maintenance Practice. This will improve the system reliability and minimize the breakdown period.

? These sensors are being developed indigenously under Make in India campaign which will be much cheaper as compared to the imported sensors for same purpose.

? Present status - Flange mounted

Ultra High Frequency (UHF) sensors developed and third party testing completed. Development and testing of Drain valve sensors for transformers, UHF Barrier sensors for GIS and Analyzer are under progress.

• Online condition monitoring solution for transformer bushings and coupling capacitors for on line partial discharge monitoring of generators:

? The overall benefits from the project can be summarized as cost benefits, improvements in system reliability, higher revenue, technical benefits and service to the nation.

? These sensors are being developed indigenously under Make in India campaign which will be much cheaper as compared to the imported sensors for same purpose.

? Present status - Market survey and development of sensors is in progress.

xiii) Projects taken up in collaboration with IIT

Delhi:

• A comprehensive data analysis using Artificial Intelligence / Machine Learning tools for the wind turbines installed at Jaisalmer Wind Project:

? NHPC has a Wind Energy Project of 50 MW installed capacity at Jaisalmer. Since commissioning of the Jaisalmer project, it never generated set target of design energy due to site constraint like high velocity of wind speed, low velocity of wind speed, wind direction pattern and changes, Power curve analysis of present turbine under different yaw condition, efficiency.

? To overcome this problem and make wind project profitable, a collaborative research has been taken up with IIT Delhi as a collaborative partner.

? The main emphasis of the R&D project is to perform an indepth data analysis of available wind turbines data by using Artificial Intelligence / Machine Learning tools. This helps in enhancing the wind turbine performance by adjusting performance indicators.

? Major Benefits of the project:-

1) Identify areas where turbines are under performing.

2) Optimal utilization of wind performance.

3) Data driven decision making for improvement.

4) Key focus areas for improvement.

5) Helps maintain long term operational sustainability.

? Present status - Technical data related to all the Wind Turbines has been collected and preliminary investigations are in progress.

c) Collaborative research related to growth of power sector

As per Ministry of Power recommendations for support and growth of power sector, studies/ research related to policy initiative, reforms, restructuring will provide crucial inputs for policy formulation. For this a corpus for funding these studies has been setup jointly with MoP and CPSUs like NHPC, NTPC, PGCIL, PFC and REC. NHPC has been undertaking collaborative research for overall growth of power sector.

d) MoA signed with CSIR-CGCRI, Kolkata NHPC has signed MoA with CSIR-CGCRI, Kolkata under which CSIR-CGCRI shall provide training, research and development and advisory session services to NHPC in the broad areas of its various expertise such as sensors and instrumentation, structural health monitoring, process monitoring, condition monitoring of electrical machines, plant automation.

e) MoA signed with MRSPTU, Bathinda NHPC has signed MoA with MRSPTU, Bathinda under which MRSPTU, Bathinda shall provide training, research, development and advisory session services to NHPC in the broad areas of its various expertise, hydro, hydrology, water resources, geology, earthquake, renewable energy and environmental management.

f) MoA signed with IIT Guwahati

NHPC has signed MoA with IIT Guwahati under which IIT Guwahati shall provide training, research, development and advisory session services to NHPC in the broad areas of its various expertise, hydro, hydrology, water resources, geology, earthquake, renewable energy and environmental management.

g) MoA signed with BEML Limited, Bengaluru

NHPC has signed MoA with BEML Limited, Bengaluru. This MoA is aimed at defining some principles on the basis of which the parties will undertake and pursue discussions with a view to create a strategic cooperation. The Strategic Cooperation would primarily include undertaking joint research and development for de-silting/dredging requirements (short- term and long-term), indigenous design, development, manufacture, testing and product support for Machineries and to take- up other project related activities/support services mutually agreed between the parties.

h) MoA signed with IIT Kanpur

NHPC has signed MoA with IIT Kanpur under which IIT Kanpur shall provide training, research and development and advisory sessions services to NHPC in the areas of its various expertise, hydro, hydrology, water resources, geology, earthquake, renewable energy and environmental management.

(ii) Benefits derived like product improvement, cost reduction, product development or import substitution:

As efforts made towards technology absorption are in initial stages, benefits are expected to be derived after completion of studies and actual implementation.

(iii) Particulars of technology imported during the current year and last three years:

NIL

(iv) Expenditure incurred on Research and Development:

Expenditure incurred on Research and Development during the financial year 2024-25 was Rs 22.64 crore including Rs 9.66 crore towards establishment expenses.

C. FOREIGN EXCHANGE EARNINGS AND OUTGO

C in crore)

S. No.	Particulars	For the year ended 31.03.2025	For the year ended 31.03.2024
a)	Expenditure in Foreign Currency:
i)	Interest	13.86	16.29
ii)	Other Misc. Matters	12.58	16.35
b)	Consumption of stores in operating units:
i)	Imported	-	-
ii)	Indigenous	44.35	25.87

There were no foreign exchange earnings during the financial year 2024-25.

38 AUDIT AND AUDITORS REPORT

38.1 SECRETARIAL AUDIT

M/s Kumar Naresh Sinha & Associates, Company Secretaries, Noida has been appointed by the Board to conduct Secretarial Audit of the Company for the financial year 2024-25. The Secretarial Auditor, in its Report, has given certain observations. The Secretarial Auditors Report is given as Annexure-II. The management reply against observations raised by Secretarial Auditor is as under:

Qualification / Observation	Management Reply
i) The Company did not have requisite number of Independent Directors (IDs) (from 08.11.2024 to 31.03.2025) including Woman ID (from 10.11.2024 to 31.03.2025) on its Board as per Regulation 17(1) of SEBI LODR, after completion of tenure of four IDs in November, 2024. The Company did not have requisite number of IDs and woman Director from 10.11.2024 to 31.03.2025 on its Board as per Section 149 of the Companies Act, 2013.	As per Article 34 of the Articles of Association of the Company read with Ministry of Corporate Affairs notification dated June 5, 2015, the Directors including Independent Directors (IDs) on the Board of the Company are appointed by the President of India through Administrative Ministry i.e. Ministry of Power (MoP). The matter regarding appointment of requisite number of IDs (including woman ID) had regularly been pursued with the Administrative Ministry i.e. Ministry of Power (MoP), Govt. of India. The Board had reconstituted Audit Committee and Nomination & Remuneration Committee with available Directors w.e.f. November 10, 2024 for substantial compliance of Law.
ii) The composition of Audit Committee and Nomination & Remuneration Committee was not as per Regulation 18(1) and 19(1) of SEBI LODR and Section 177 & 178 of the Companies Act, 2013 from 10.11.2024 till 31.03.2025 due to non-appointment
of requisite number of IDs on the Board of the Company by Govt. of India, after completion of tenure of 4 (four) IDs in November, 2024. Thereafter, the committees were reconstituted by the Board with the remaining Directors, for substantial compliance of law.	Subsequently, Ministry of Power vide letters dated April 17, 2025 had appointed/re-appointed three IDs on the Board of Company. After aforesaid appointment/re-appointment, the Board of Directors has reconstituted the Audit Committee and Nomination & Remuneration Committee w.e.f. April 17, 2025 which are now in compliance with the statutory provisions.
iii) The Company has not complied with certain paras viz. 3.1.4 (from 08.11 .2024 to 31 .03.2025), 3.1 .2, 4.1.1, 4.4 and 5.1 (from 10.11.2024-31.03.2025) of DPE Guidelines on Corporate Governance regarding composition of Board and Committees thereof.

In compliance to Regulation 24A of SEBI LODR, Secretarial Audit Report of NHDC Limited and Chenab Valley Power Projects Limited, which are material unlisted subsidiaries of NHPC, is also given elsewhere in the Annual Report.

38.2 STATUTORY AUDIT

In line with provisions of the Companies Act, 2013, the Statutory Auditors of your Company are appointed by the Comptroller & Auditor General of India (C&AG). C&AG had appointed following Joint Statutory Auditors for the financial year 2024-25:

1. M/s S N Dhawan & Co., LLP, New Delhi

2. M/s S Jaykishan, Kolkata

3. M/s Dharam Raj & Co., Jammu

The Joint Statutory Auditors have given un-modified opinion in their Report on the standalone and consolidated financial statements of the Company for the financial year 2024-25. Further, no instance of fraud by any officer or employee of the Company has been reported by the Auditors under Section 143(12) of the Companies Act, 2013.

38.3 REVIEW OF ACCOUNTS BY C&AG

The comments of C&AG under Section 143(6)(b) of the Companies Act, 2013 on the financial statements of NHPC for the year ended March 31, 2025 and comments of C&AG under Section 143(6)(b) read with Section 129(4) of the Companies Act, 2013 on the consolidated financial statements of NHPC for the year ended March 31, 2025 and Management reply thereof is in the Addendum.

38.4 COST AUDIT

The Company maintains necessary cost records as specified by Central Government under Section 148(1) of the Companies Act, 2013 read with the Companies (Cost Records and Audit) Rules, 2014. As recommended by the Audit Committee, your Board has appointed the following firms of Cost Accountants to conduct audit of cost accounting records of power stations for the financial year 2024-25 under Section 148 of the Companies Act, 2013:

Name of the Firm	Power Stations
M/s Sanjay Gupta & Associates, Delhi (Lead Cost Auditor)	Dulhasti and Salal
M/s Chandra Wadhwa & Co., Delhi	Uri-I, Uri-II and Kishanganga
M/s Balwinder & Associates, Mohali	Nimoo Bazgo, Chutak and Parbati-III
M/s S. C. Mohanty & Associates, Delhi	Chamera-II, Chamera-III and Bairasiul
M/s K B Saxena and Associates, Lucknow	Tanakpur, Dhauliganga and Wind Power Project, Jaisalmer
M/s K G Goyal & Associates, Jaipur	Sewa-Il and Chamera-I
M/s Niran & Co., Kolkata	Teesta-V, TLDP-III and TLDP-IV
M/s D G M & Associates, Kolkata	Rangit and Loktak
M/s Ramnath Iyer & Co., Delhi	Solar Power Project, Tamilnadu

The consolidated Cost Audit Report in XBRL format for the year ended March 31, 2024 was filed with the Ministry of Corporate Affairs on September 4, 2024 which was within the prescribed time period. The Cost Audit Report for the

year ended March 31, 2025 shall be endeavoured to be filed within the prescribed time period.

39 ANNUAL RETURN

Pursuant to Section 134(3)(a) and Section 92(3) of the Companies Act, 2013, the Annual Return of the Company as on March 31, 2025 is available on the Companys website at https://www.nhpcindia.com/assests/pzi_ public/gallery/1754459175.pdf.

40 PARTICULARS OF LOANS, INVESTMENTS AND CORPORATE GUARANTEES

Section 186 of the Companies Act, 2013 (except sub- section 1) regarding loans made, guarantees given or securities provided is not applicable to NHPC being engaged in the business of providing infrastructure facilities.

41 PARTICULARS OF EMPLOYEES

In accordance to notification dated June 5, 2015 issued by the Ministry of Corporate Affairs, Government Companies are exempted from the disclosure requirements of Section 197 of the Companies Act, 2013. Therefore, such particulars have not been included as part of Directors Report.

The Policy on remuneration, pay structure, allowances and other benefits of employees of the Company are governed by relevant DPE Guidelines. Pay structure and allowances of the Company are also available on the website at https://www.nhpcindia.com/assests/pzi_ public/gallery/1676010521.pdf

42 BOARD AND COMMITTEES OF THE BOARD

The Board of Directors met twelve (12) times during the financial year 2024-25. The details of meetings of Board of Directors and attendance of Directors therein are given in the Report on Corporate Governance, which forms part of the Annual Report. The details of various Committees of the Board along with their meetings and composition are given in Report on Corporate Governance.

43 PERFORMANCE EVALUATION OF BOARD, BOARD LEVEL COMMITTEES AND DIRECTORS

NHPC has in place a "Policy on performance evaluation of Board, Board level Committees and Directors". As per the Policy, following evaluation process has been followed by the Company:

1. Every Director of the Company rate performance of the Board, Board level Committees and the individual Directors on pre-determined criteria.

2. The Nomination and Remuneration Committee reviews the performance of Independent Directors and the Board of Directors and determines whether to extend the term of the Independent Director.

3. Independent Directors review the performance of Non-Independent Directors, Chairperson of the Company and the Board as a whole.

4. Board evaluates the performance of Independent Directors, excluding the Director being evaluated.

The performance evaluation of all the Board Members, Board as a whole and mandatory Committees of the Board for financial year 2024-25 was carried out during financial year 2025-26.

44 DIRECTORS RESPONSIBILITY STATEMENT

In line with requirement of Section 134(3)(c) read with Section 134(5) of the Companies Act, 2013 with respect to the Directors Responsibility Statement, it is confirmed that:

a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

b) the Directors had selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period;

c) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) the Directors had prepared the annual accounts on a going concern basis;

e) the Directors had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and

f) the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

45 SECRETARIAL STANDARDS

Your Company has followed the applicable Secretarial Standards relating to Meetings of the Board of Directors and General Meetings issued by the Institute of Company Secretaries of India (ICSI).

46 GENERAL

No disclosure or reporting in respect of the following items is required, as there was no transaction on these items during the year under Report:

1. Issue of equity shares with differential rights as to dividend, voting or otherwise.

2. Issue of shares (including sweat equity shares) to employees of the Company under any scheme.

3. Significant and material orders passed by regulators or courts or tribunals, which impact the going concern status or Companys operations in future.

4. Occurrence of any material changes and commitments after the close of the financial year till the date of this Report, which affect the financial position of the Company.

5. Details of difference between amount of the valuation done at the time of one time settlement and the valuation done while taking loan from the banks or financial institutions along with the reasons thereof.

6. Details related to public deposits as required under Chapter V of the Companies Act, 2013.

7. Application made or proceeding pending under Insolvency & Bankruptcy Code, 2016.

47 BOARD OF DIRECTORS & KEY MANAGERIAL PERSONNEL

The following changes in composition of Board of Directors and Key Managerial Personnel took place during the financial year 2024-25 and afterwards till signing of this Report:

1. Shri Sanjay Kumar Singh (DIN: 10718481) was appointed as Director (Projects) w.e.f. July 24, 2024 pursuant to orders of Ministry of Power, Govt. of India. During the year, he also held additional charge of Director (Technical) from August 8, 2024 till April 16, 2025.

2. Pursuant to orders of Ministry of Power, Govt. of India, Shri Raj Kumar Chaudhary (DIN: 10198931), Director (Technical) was appointed as Chairman & Managing Director w.e.f. August 07, 2024 in place of Shri Rajendra Prasad Goyal, Director (Finance) (DIN: 08645380), who was holding additional charge of Chairman & Managing Director. During the financial year 2024-25, Shri Raj Kumar Chaudhary also held additional charge of Director (Projects) till July 23, 2024.

3. Dr. Uday Sakharam Nirgudkar (DIN: 07592413) ceased to be Independent Director w.e.f. November 8, 2024 pursuant to orders of Ministry of Power, Govt. of India. Further, he has been re-appointed as Independent Director w.e.f. April 17, 2025 pursuant to orders of Ministry of Power, Govt. of India.

4. Shri Jiji Joseph (DIN: 09415941) ceased to be Independent Director w.e.f. November 10, 2024 pursuant to orders of Ministry of Power, Govt. of India. Further, he has been re-appointed as Independent Director w.e.f. April 17, 2025 pursuant to orders of Ministry of Power, Govt. of India.

5. Dr. Amit Kansal (DIN: 07722428) and Dr. Rashmi Sharma Rawal (DIN: 09410683) ceased to be Independent Directors w.e.f. November 10, 2024 pursuant to orders of Ministry of Power, Govt. of India.

6. Shri Suprakash Adhikari (DIN: 10738274) was appointed as Director (Technical) w.e.f. April 16, 2025 pursuant to orders of Ministry of Power, Govt. of India.

7. Shri Anil Kumar Sood (DIN: 01376251) was appointed as Independent Director w.e.f. April 17, 2025 pursuant to orders received from Ministry of Power, Govt. of India.

Details of remuneration and sitting fee paid to Directors during the financial year 2024-25 are given in the Report on Corporate Governance.

All Independent Directors on the Board of the Company declared that they met the criteria of independence as laid down under Section 149(6) of the Companies Act, 2013 and Regulation 16(1)(b) of SEBI LODR. They have further declared that they were not aware of any circumstance or situation, which exist or may be reasonably anticipated, that could impair or impact their ability to discharge their duties with an objective independent judgement and without any external influence. Independent Directors have also declared that they have complied with Rule 6(1) & 6(2) of the Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019 regarding inclusion of their name in the data bank of Independent Directors maintained by Indian Institute of Corporate Affairs (IICA).

As Shri Supraksh Adhikari, Director (Technical); Dr. Uday Sakharam Nirgukar, Independent Director; Shri Jiji Joseph, Independent Director and Shri Anil Kumar Sood, Independent Director were appointed by Board of Directors as Additional Directors, their appointment/ re-appointment is proposed in the ensuing Annual General Meeting (AGM). Shri Mohammad Afzal, Govt. Nominee Director and Shri Uttam Lal, Director (Personnel) are liable to retire by rotation and being eligible, have proposed themselves to be re-appointed at the forthcoming AGM. Brief profile of the Directors seeking appointment/ re-appointment at the ensuing AGM is given in the Notice of AGM.

48 RAISING OF INCREMENTAL BORROWINGS BY WAY OF ISSUANCE OF DEBT SECURITIES

Mandatory raising of incremental borrowings by way of issuance of debt securities during the financial year 2024- 25 has been complied with in compliance to SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 (NCS Regulations).

49 ACKNOWLEDGEMENT

The Board of Directors wish to place on record their sincere appreciation to all the employees for their dedication and commitment. Their hard work and unstinted efforts enabled the Company to sustain its excellent performance and consolidate its sectoral leadership. The commitment displayed by the employees at all levels is exemplary and praise worthy. NHPC is proud of continuous untiring efforts of its employees especially posted at power stations and projects of the Company.

The Board of Directors would like to express their gratitude for the guidance and co-operation received from Govt. of India, particularly the Ministry of Power, Ministry of New & Renewable Energy, Department of Public Enterprises, Office of the Comptroller and Auditor General of India, Central Electricity Authority, Central Electricity Regulatory Commission, Central Water Commission and other concerned Govt. departments/agencies at the Central and State level.

The Board is also thankful to all its stakeholders, valued customers, contractors, vendors and consultants for their continued support and confidence reposed in the Company.

The Board also acknowledges invaluable guidance and inputs received from Statutory Auditors, Secretarial Auditor and Cost Auditor of the Company. The Board also conveys its sincere thanks to the national and international financial institutions / banks, multilateral financial institutions, domestic and international credit rating agencies for their valuable support and continued trust in the Company.

For and on behalf of the Board of Directors
	(Raj Kumar Chaudhary)
Place: New Delhi	Chairman & Managing Director
Date: June 26, 2025	DIN 10198931