ntpc ltd share price Management discussions



According to provisional estimates of National Income, released by the National Statistical Office of Ministry of Statistics and Programme Implementation, for the financial year 2022-23 the growth rate of GDP is estimated at 7.2%, as compared to 9.1% in the previous year. International Monetary Fund (IMF) has made mild growth projections for most of the economies across the world, however, India has fared better than most of the emerging and developing economies, IMF expects India to grow by 6.1% in the financial year 2023-24 and also by an average rate of 6.1% over the next five years.

Based on the Indices of Industrial Production (IIP), electricity sector has shown a growth of 8.9% over the last fiscal. The growth is also higher when compared to IIP for mining and manufacturing sectors during the same period (5.8% and 4.5% respectively).

Financial year 2022-23 has seen Indias power sector achieving new milestones and meeting the aspirations of a rapidly growing nation. While peak demand touched a new high of ~216 GW, gross generation crossed 1600 BUs for the first time. With the addition of more than 15 GW of RE capacity during the year, the installed RE capacity(including large Hydro) crossed 40% of the total installed capacity. Amidst all these developments, universal access to affordable power remains the primary goal for the Power sector.

However, to meet this goal, the biggest challenge is restoration of the financial health of the DISCOMs across the country. In this direction, the implementation of the Revamped Distribution Sector Scheme (RDSS) launched by Government of India (GOI) in the financial year 2021-22 has gathered pace and its positive impact can be seen with the reduction of the ACS-ARR gap. However, further efforts are required for modernisation of the distribution sector through rapid adoption of smart grid technologies and digitalization of processes & customer interface. Additionally, ever increasing share of renewable energy into the grid poses a challenge for grid stability. To meet these challenges and move ahead with the decarbonization of the economy, Government of India and Electricity Regulator has taken several initiatives in the financial year 2022-23, key among them are:

Power Sector Reforms

• Indian Electricity Grid Code 2023

• General Network Access Regulations 2022

• Energy Conservation Act (Amendment) 2022, (Introduction of Carbon Markets),

• Electricity (Late Payment Surcharge and Related Matters) Rules, 2022

Renewable Energy Promotion

With a commitment to increase non-fossil fuel-based energy capacity to 500 GW by 2030, the following initiatives have been taken to promote RE capacity addition:

• Green Energy Open Access Rules

• National Green Hydrogen Mission

• Revised Renewable Purchase Obligation trajectory including energy storage obligations

• Introduction of Renewable Generation Obligation

• Bidding Guidelines for Battery Energy Storage System

• Performance Link Incentive Tranche-II for Solar Manufacturing

• Guidelines for Promotion of Pump storage projects

• Waiver of ISTS charges for RE and allied activities

• CEA (Flexible Operation of TPP) Regulations, 2023

• Electricity (Amendment) Rules, 2022 for creation of central pool of ISTS RE sources

• Scheme for flexibility in generation through bundling with RE


The power sector is a key enabler of Indias economic growth. Electricity contributes ~21% to the final energy consumption of India. The sector with its three pillars: Generation, Transmission, and Distribution, is crucial to Indias infrastructure and economic growth. The global stature of the Indian Power Sector is depicted well by its positioning in terms of generation capacity. India is ranked 3rd in the World in terms of electricity generation, 4th in installed renewable energy capacity, 5th and 6th

in installed Solar and Hydro capacity respectively as reported by international agencies like IEA, Statista, IRENA, etc.

The achievements and various issues/ challenges faced by the Power Sector and key initiatives taken by the Ministry of Power are discussed in the following paragraphs.

SNAPSHOT 2022-23

• Gross generation of the country (including imports from Bhutan) increased from 1492 BUs in the previous year to 1624 BUs, registering a growth of about 9%.

• Generation from Renewable sources increased by about 19% from 171 BUs to 203 BUs, (excluding Large Hydro) while generation from conventional sources (Thermal, Nuclear and Large Hydroexcluding Bhutan import) increased by about 8% from 1321 BUs to 1421 BUs.

• Conventional Capacity addition was 1580 MW during the financial year 2022-23 as compared to 4878 MW during the previous year.

• With the addition of 15402 MW, the renewable energy capacity has reached 172 GW (including large hydro) as at 31 March 2023, an increase of about 10% over the previous year.

• With an addition of 14625 Ckms of transmission lines, total installed transmission capacity reached 471341 Ckms as on 31 March 2023.

• 75902 MVA of transformer capacity was added during the year as against 78982 MVA in the previous year.

• PLF of coal based stations increased to 64.21% in the financial year 2022-23 from 58.74% in the financial year 2021-22.

• The energy deficit stands at 0.5% marginally higher than 0.4% in previous year however peak demand deficit has increased from 1.2% to 4.0%, on YoY basis.

• Peak demand met stands at 211856 MW and maximum energy demand met stood at 4722 MUs, both achieved on 10 June 2022.

Existing Installed Capacity

The total installed capacity in the country as on 31 March 2023 was more than 416 GW (including renewables) with the Private Sector contributing 51% of the installed capacity followed by the State Sector with 25% share and the Central Sector with 24% share.

Sector Total Capacity (MW) % Share
Central 1,00,055 24%
State 1,05,726 25%
Private 2,10,278 51%
Total 4,16,059 100%

(Source: Central Electricity Authority)

Mode-wise installed capacity in the country as of 31 March 2023 is as under:

Mode Total Capacity (MW) % Share
Thermal 2,37,269 57%
Nuclear 6,780 2%
Hydro 46,850 11%
RES (Renewables) 1,25,160 30%
Total 416,059 100%

(Source: Central Electricity Authority)

Capacity Utilization and Generation

Sector-wise PLF in % (Coal based stations)

Sector 2022-23 2021-22
Central 75.00 69.33
State 62.44 55.08
Private 68.45 66.95
Private IPP 55.79 52.46
All India 64.21 58.74

(Source: Central Electricity Authority)


Sector-wise and fuel-wise break-up of conventional generation (in BUs) for the financial year 2022-23 is detailed as under:

Sector Thermal Hydro Nuclear Bhutan Import Total
Central 456 63 46 -- 565
State 379 83 -- -- 462
Private 371 16 -- -- 387
Bhutan Import -- -- -- 7 7
Total 1206 162 46 7 1421

(Source: Central Electricity Authority)

Sector-wise share in Installed Capacity (conventional) vis-a-vis share in Generation (conventional):

Sector Share in installed capacity (%) Share in generation (%)
Central 24% 40%
State 25% 33%
Private 51% 27%

(Source: Central Electricity Authority)

Central sector generation utilities have performed better as compared to those of State and Private sector in terms of share in generation with respect to installed capacity, as well as Plant Load Factor.

Electricity Consumption

The per capita consumption of power in India has reached 1255 units in the financial year 2021-22. It is still well below 50% of the global average, providing enough room for growth. The total electricity requirement in India increased from 1380 BUs in the financial year 2021-22 to 1512 BUs in the financial year2022-23 growing by ~10%.

Major end-users of power are broadly classified into 6 categories: Agricultural, Commercial, Domestic, Industrial, Traction, and others. Their shares of electricity consumption, during the financial year 202122, were approximately 17.7%, 8.3%, 25.7%, 41.1%, 1.5% and 5.9%, respectively. During the financial year 202223, although absolute consumption of all the sectors has increased, the share of agriculture and domestic consumption in the total consumption has increased whereas for other sectors it has decreased slightly.


The total inter-regional transmission capacity of the country has increased to 112250 MW as on 31 March 2023. This augmentation of the national grid is essential for supporting the higher injection of renewable energy into the grid for the transfer of power from RE-rich states to other states.

Further, to meet the power evacuation requirement of 500 GW non-fossil fuel-based capacity planned by 2030, connectivity of RE generators to the load centres through Inter-State Transmission System (ISTS), is essential. It is estimated that the length of the transmission lines and sub-station capacity required under ISTS for integration of additional wind and solar capacity by 2030 will be 50890 Ckms and 433575 MVA respectively.


Distribution is the key link in realizing the Government

of Indias vision of supplying reliable 24x7 Power for all. In this regard, the financial health of distribution companies is of prime importance, enabling them to efficiently discharge their functions and responsibilities. However, their poor financial health has remained a matter of concern. To reverse this trend, reduction of AT&C losses and ACS (Average Cost of Supply) - ARR (Average Revenue Realization) gap are critical factors. With these intentions, Revamped Distribution Sector Scheme (RDSS) has been launched to reinvigorate the DISCOMs. Important objectives of RDSS are:

• Reduction of AT&C losses to pan-India levels of 1215% by the financial year 2024-25.

• Reduction of ACS-ARR gap to zero by the financial year 2024-25.

• Improvement in the quality, reliability, and affordability of power supply to consumers through a financially sustainable and operationally efficient distribution sector.

This results-linked scheme, launched in July 2021, has pushed the utilities and states to address performance gaps, and chart action plans to avail the benefits worth Rs.300,000 crore. The outlay includes an estimated Government Budgetary Support (GBS) of Rs.97,631 crore.

The Scheme is comprised of two components:

• Part-A: Financial support for Prepaid Smart Metering, System Metering, and Up-gradation of Distribution Infrastructure; and

• Part-B: Training and capacity building and other enabling and supporting activities.

Under this scheme Action Plans for 46 DISCOMs (28 States/UTs) have been approved where ~20.46 crore pre-paid smart consumer meters, ~54 Lakh smart DT meters and ~1.98 Lakh smart feeder meters have been sanctioned.

The impact of these initiatives is reflected in the finding of the 11th Integrated Rating & Ranking of Power Distribution Utilities. The key indicators of the improvement of DISCOMs performances are as below:

• In the financial year 2021-22, performance of 39 DISCOMs have improvement over the last fiscal.

• While total sectoral debt rose 24% to Rs.6.20 lakh crore till the financial year 2021-22, the pace of debt addition slowed considerably. Debt increased by Rs.34,000 crore in the financial year 2021-22, versus Rs.85,500 crore in the financial year 2020-21.

• Sectoral absolute cash-adjusted gap (between expenditure and income) dropped substantially to Rs.53,000 crore in the financial year 2021-22 from Rs.97,000 crore in the financial year 2019-20.

• This was driven by significant improvement in the ACS-ARR gap, which captures the cash-adjusted gap per unit. The power distribution entities were recording a loss of 79 paise/unit in the financial year 2019-20, which reduced to 40 paise/unit in the financial year 2021-22.

• AT&C losses have improved to 16.5% in the financial year 2021-22, significantly lower than 21.5% in the financial year 2020-21.

Power Trading

In India, power is transacted largely through long-term Power Purchase Agreements (PPA) entered, between Generating companies and the distribution utilities. A small portion is transacted through various short-term (contract period<1 Year) mechanisms. This includes Day Ahead Market and Real-Time Market (RTM), followed by bilateral contracts (through traders, term- ahead contracts on power exchanges, and directly between DISCOMs) and through Deviation Settlement Mechanism (DSM).

Around 90% of the power generated in the country is transacted through the long-term PPA route while the remaining power is transacted through short-term trading mechanisms.



1. Electricity (Amendment) Bill, 2022

The Union Power Ministry on 8 August 2022 introduced Electricity (Amendment) Bill, 2022.It has been referred to the Standing Committee on Energy for a detailed examination. Key points of the proposed amendment bill are given below:

Non-discriminatory open access: DISCOMs owning network in a particular area of supply shall provide non-discriminatory open access to other licensees (Section-42).

Sharing of power and associated costs from existing power purchase agreements (PPAs) among all DISCOMs in the area of supply (Section-60).

Cross subsidy balancing fund: The State Government will set up cross subsidy balancing fund for depositing surplus of cross-subsidy

from distribution licensee and for providing any deficit with another distribution licensee in same area of supply (Section-60).

• Empowerment of National Load Despatch Centre for ensuring safety and security of the grid, and for the economic and efficient operation of the power system (Section-26).

• Payment security mechanism to ensure timely payment of dues (Section-28).

• Ceiling tariff and minimum tariff: The

Appropriate Commission will determine maximum ceiling tariff and minimum tariff for retail sale of electricity (Section-62).

• Suo-motu determination of tariff by the

Appropriate Commission, thereby reducing the time required for tariff determination and provision for interim tariff (Section-64).

• Penalty Imposition on the obligated entities for shortfall in meeting the RPO (Section 142).

2. Electricity (Late Payment Surcharge and related matters) Rules, 2022

Issued in June 2022, these rules supersede the earlier Late Payment Surcharge Rules 2021. Under these rules, outstanding past dues including the Late Payment Surcharge from the effective date of scheme i.e., 3 June 2022, have been rescheduled and are being paid in instalment over 12 to 48 months, based on quantum of past dues.

Rules have provision for Regulation of power supply by generators, in case of non-maintenance of Payment Security Mechanism (PSM) by DISCOMs. The short-term open access of the DISCOMs to power exchange will also be regulated.

3. CEA (Flexible Operation of Coal based Thermal Power Generating Units) Regulations, 2023

Notified on 25 January 2023, these Regulations shall apply to all coal based thermal power generating units owned or under control of the Central Government, State Governments or owned by any private company, connected with the grid and to the load despatch centre. As per the Regulations all coal based thermal power plants should be capable of providing flexible operation with minimum power level of 40% as per CEA phasing plan.

Further, coal-based units shall achieve ramp rate capability of minimum 3% per minute for their operation between 70% to 100% of maximum continuous power rating, ramp rate capability of minimum 2% per minute for their operation between 55% to 70% of maximum continuous power rating and ramp rate capability of minimum 1% per minute for their operation between 40% to 55% of maximum continuous power rating in a phased manner as specified in these Regulations.

4. CEA Scheme for National Level Optimization of surplus Generation Capacity

Applicable to Central Generating Stations (CGSs), Inter-State Generating Stations (ISGS)/IPP, Surplus power with the States/Distribution companies and covering generators with tariff determined under Section 62 & Section 63 of The Electricity Act, 2003. The salient features of the scheme issued in November 2022 are:

• Original beneficiaries to submit willingness in advance for surplus power & any other Discom to requisition to avail such power.

• Buyer Discom shall pay as per regulated tariff for availing such surplus power.

• After checking availability of transmission corridor, CEA shall allocate the power to new beneficiary through portal.

• Beneficiaries shall open the Payment Security Mechanism (PSM) and Generating Station will record the acceptance of such PSM.

• Scheduling shall be as per Grid Code and Payment settlement will be as per Regional Energy Account.

5. Indian Electricity Grid Code Regulations 2023

The salient features of the Regulations notified on 29 May 2023, are:

• National Reference Frequency of 50.000 Hz (Resolution of 0.001 Hz against existing 0.01 Hz).

• Compensation for generation below technical minimum level shall be either as per the mechanism in the Tariff Regulations or in terms of the contract entered into with buyers.

• Technical minimum/Minimum Turndown Level for a unit of a regional entity thermal generating station shall be 55% of MCR or as per CEA Regulations whichever is lower.

• If a unit is taken under reserve shut down by a GENCO, it shall fulfil its obligation to supply to the beneficiaries who made requisition prior to unit going under shutdown.

• Merit order scheduling principles introduced

S While furnishing block-wise requisition on behalf of the DISCOMS, SLDC shall duly factor in merit order of the ISGS with which it has contracts.

S RE stations shall be requisitioned first followed by other generating stations as per merit order, subject to technical constraints.

6. CERC (Sharing of Inter-state Transmission Charges and Losses) (First Amendment) Regulations 2023:

Notified in February 2023 (Effective date to be notified), the Regulations amended the various clauses of existing CERC (Sharing of Inter-State Transmission Charges and Losses) Regulations, 2020 for incorporating newly introduced concept of GNA (General Network Access) and TGNA (Temporary GNA).

7. CERC Regulation for Connectivity and General Network Access to ISTS system 2022: Notified in July 2022 (partly effective from 5 April 2023). The salient features of the Regulations are:

• Introduction of concept of GNA (General Network Access) and TGNA (Temporary-GNA) instead of existing mechanism of Long-Term Access (LTA), Medium Term Open Access (MTOA) & Short-Term Open Access (STOA).

• The new generators connected to the grid shall be granted deemed GNA equal to their installed capacity.

• In case of existing stations prior to 2009, wherein LTA application was not made, deemed GNA has been granted equal to their installed capacity.

• In case of stations where LTA application was made as per 2009 LTA Regulations, deemed GNA equal to LTA quantum has been granted.

8. CERC (Deviation Settlement Mechanism and Related Matters) Regulations, 2022 Regulations came into force with effect from5 December 2022 and were subsequently amended vide CERC order dated 6 February 2023. The salient features of these Regulations are:

• Deviation rate is maximum of Area Clearing Price (ACP) of the DAM/RTM/Average Ancillary Service Charge.

• Deviation volume limit increased from (2%) to (10% or 100 MW, whichever is less).

• When Freq.<49.95 Hz & Freq.>50.03 Hz, deviation volume limits removed.

• In case of forced outage, the DSM charges shall be at the rate of Energy Charge Rate (ECR).

• DSM charges for infirm power shall be zero except when infirm power has been scheduled.

• DSM charges for drawl of start-up power before COD or APC during shutdown shall be payable at the ECR or contract rate. In absence of ECR or contract rate, the weighted average ACP of the DAM of time block shall be charged.


1. MOP modifies coal allocation methodology under SHAKTI Policy

On 6 April 2022, MOP modified methodology for allocation of coal as per SHAKTI Policy. According to the modification, all power plants which do not have PPAs, shall be allowed to participate in the auction of coal linkage for short term period (maximum up-to one year). Auction of coal linkages will be carried out under 3 separate windows of SHAKTI policy for delivery periods of 3 months, 6 months & 12 months.

2. CERC order on Blending of imported coal with domestic coal to mitigate the domestic coal shortage

On 26 July 2022, CERC issued an order on blending of imported coal with domestic coal up to 30%, subject to technical feasibility, without requirement of prior consultation with beneficiaries.

3. Empanelment of Third-party sampling agency in addition to CIMFR

To have additional third-party agencies other than CIMFR, MOP has empanelled an agency for sampling and testing of coal at the loading end, with the choice of Coal Consumer for taking services from empanelled agencies. Further, second round of empanelment is also underway and some more agencies are expected to be empanelled.

4. Notification for Agro-residue Utilization by TPP Rules, 2023

Notified on 16 February 2023, these Rules are applicable to all Thermal Power Plants located in the National Capital Region (NCR) and adjoining areas. According to these rules, all coal based thermal power plants, on an annual basis, shall mandatorily use minimum 5% blend of pellets/ briquettes made of crop residue along with coal. Failing to do so, will lead to levy of Environmental Compensation at the rate specified in the rules from the financial year 2024-25.


1. Environment (Protection) Second Amendment Rules, 2022

As per the new notification by MOEF & CC dated 5 September 2022, the deadline for compliance for SOx and other parameters has been extended by two years for non-retiring plants, while for retiring plant the deadline has been extended upto 31 December 2027.

2. Amendment in implementation of the ash utilisation notification dated 30 December 2022

According to this MOEF & CC notification, areas where fly ash is stored can also be reclaimed by setting up solar and wind power plants, along with plantations.


1. Renewable Purchase Obligation (RPO) and Energy Storage Obligation Trajectory till 2029-30

Issued on 22 July 2022, the trajectory has been progressively increased from the financial year 2022-23 to the financial year 2029-30, as mentioned below

• Wind RPO from 0.81% to 6.94%

• HPO will increase from 0.35% to 2.82%

• Other RPO from 23.44% to 33.57%

• Energy Storage Obligation from 1% to 4%

The Energy Storage Obligation (ESO) will be calculated in energy terms, as a proportion of total electricity consumption and will be satisfied only when at least 85% of total energy stored is obtained from RE sources each year.

2. MNRE Draft "National Repowering Policy for Wind Power Projects - 2022"

With an objective for optimal utilization of Wind energy by maximizing energy yield/sq.km of area & utilizing latest onshore Wind turbine technologies, MNRE issued Draft "National Repowering Policy for Wind Power Projects - 2022" on 17 October 2022.

Following Wind turbines are eligible for repowering under the policy:

• Wind turbines of rated capacity below 2 MW

• Wind turbines which have completed their design life

• Set of existing Wind turbines over an area eligible for Repowering provided Project area is geographically contiguous land area.

All turbines considered for repowering connected to single PSS & >90% of total capacity of project should have completed its design life. Capacity of repowered Wind turbines should be enhanced by at least 1.5 times of its aggregate capacity of old turbines.

3. Electricity (Promoting Renewable Energy through Green Energy Open Access) Rules, 2022

On 6 June 2022, MOP issued Electricity (Promoting Renewable Energy through Green Energy Open Access) Rules, 2022. Under the rules, Open Access limit has been reduced from 1 MW to 100 kW, which paves the way for small consumers to purchase RE and there is no limit for Captive Consumers.

Any Consumer can demand supply of green power from DISCOMs, for a minimum period of 1 year for which approval shall be granted in 15 days or else it will be deemed to have been approved. The obligated entity can also meet its RPO by purchasing green hydrogen or green ammonia.

Further in the Amendment dated 23 May 2023, the limit of 100kW or more can be through a single connection or through multiple connections, located in same electricity division of a distribution license. Exemption from cross subsidy surcharge shall be applicable in case of electricity produced from offshore wind projects, which are commissioned up to December 2032 and supplied to the Open Access Consumers.

4. CERC issues final Renewable Energy Certificates Regulations 2022

CERC issued CERC (Terms and Conditions for Renewable Energy Certificates for Renewable Energy Generation) Regulations, 2022. Amendment in the extant REC mechanism was done to align it with the emerging changes in the power sector. As per these Regulations, RE generating station and Captive Power Plants, Distribution licensee, and Open Access consumers will be eligible for issuance of Certificates under certain conditions.

A DISCOM or an Open Access consumer, which purchases RE more than its RPO target will also be eligible for the issuance of Certificates.

5. Waiver of ISTS Charges and Losses

MOP vide order dated 2 December 2022, has extended the waiver of ISTS charges on the transmission of power from new hydro power projects, for which construction work is awarded and PPA is signed on or before 30 June 2025. ISTS charges on transmission of electricity generated from new hydro-power projects are waived for 18 years from the date of commissioning.

ISTS charges shall not be levied on renewable energy used for production of green hydrogen and its derivatives such as green ammonia. This exemption is limited for those green hydrogen units which are commissioned until 31 December 2030. The waiver shall apply for a period of 25 years from the date of commissioning,

6. Green Hydrogen Mission

India has a large potential market for green hydrogen, in energy intensive sectors including petrochemicals, transportation, power generation, and agricultural/industrial applications.To capitalize on this potential, GOI approved the National Green Hydrogen Mission, with the goal of developing green hydrogen production capacity of 5 million metric tonnes (MMT) and an associated RE capacity addition of about 125 GW by 2030. Total investments expected are over Rs.8,00,000 crore providing jobs and boosting economic growth.

7. Renewable Generation Obligation

Renewable Generation Obligation (RGO) has been introduced vide MOP order dated27 February 2023, according to which any generating company establishing a coal/lignite-based thermal generating station and having the Commercial Operation Date (COD) of the project on or after 1 April 2023 shall be required to establish renewable energy generating capacity of minimum 40% of thermal capacity or procure and supply renewable energy equivalent to such capacity.

8. Promotion of Development of Pumped Storage Projects (PSPs)

Issued by MOP on 10 April 2023, the guidelines broadly encompass the methodologies for the allotment of PSPs and standardizing time frame for project execution. Policy support guidelines

for suitable monetisation of PSP including reimbursement of SGST on PSP Component, exemption of stamp duty & registration fees, waiver of transmission charges and priority in environmental clearance for PSPs have been provided.

Subsequently, MOEF & CC has exempted all pumped storage hydropower (PSHP) projects from environment impact assessment regime, citing lesser impact on the environment and their critical role in ensuring Indias growing energy storage and infrastructure development needs.



India assumed the Presidency of the G20 in 2023 with the motto of One Earth, One Family, One Future. To achieve this, with equity and climate justice, India has updated Nationally Determined Contributions (NDC). At the heart of Indias vision of a safe planet is the Mantra - Lifestyle for Environment, that Prime Minister of India has set forth in our Statement at COP-27.

To put forward and further propagate a healthy and sustainable way of living based on traditions and values of conservation and moderation, including through a mass movement for LIFE- Lifestyle for Environment as a key to combating climate change.

Key Nationally Determined Commitments (NDCs) announced by India are:

• India will reduce the carbon intensity of its economy by 45% by 2030 from the levels of 2005.

• India will achieve about 50% cumulative electric power installed capacity from non-fossil fuel- based energy resources by 2030.

• To create an additional carbon sink of 2.5 to 3 billion tons of CO2 equivalent through additional forest and tree cover by 2030.

• India will achieve the target of Net-Zero by the year 2070.

While the first two NDCs have put further emphasis on expediting capacity addition in Renewables, the net zero target provides opportunity for decarbonization and electrification of sector like Transportation, Steel, Aviation, Cement and Agriculture. This will provide further growth impetus to the power sector which is already registering robust growth with every passing year.

This scenario coupled with the supportive policy framework provides opportunities in Renewable energy sector, green chemicals and fuels, E-mobility, Power trading, and new business development domestically as well as internationally, as elaborated below:

1. Renewable Energy

As India targets to achieve 500 GW of non-fossil fuel-based capacity by 2030, some of the key opportunities in the renewable energy sector are as below.

a. Energy Security and Independence: Expanding renewable energy can reduce Indias dependence on fossil fuel imports and enhance energy security. This diversification of the energy mix will help to mitigate the impact of global fuel price fluctuations and geopolitical uncertainties.

b. Decentralized Power Generation: Renewable energy allows for decentralized power generation, which can benefit remote and rural areas with limited access to the grid. Off- grid and mini-grid solutions using renewable sources can provide clean energy access to under-served communities.

c. Innovation and Technology Advancements: Continued research and development efforts in renewable energy technologies offer opportunities for innovation, efficiency improvements, and cost reductions. Advancements in areas like solar photovoltaics, energy storage, and smart grid technologies can further enhance the renewable energy sector.

d. Green Hydrogen: The green hydrogen initiatives are a step toward decarbonization, and various pilot projects are being taken up in domains like mobility, chemicals, energy storage, and natural gas blending. The green chemicals cover green methanol as well as green ammonia. Green hydrogen shall also be used in the future as feedstock for petrochemicals, steel making, and different chemical processes. For making green hydrogen, RE power is essential in bulk quantity.

NTPC is taking up large solar, wind, and hybrid projects all over the country and developing Gigawatt-scale renewable energy parks in different states under the Ultra Mega Renewable Energy Power Park (UMREPP) scheme of the Government of India.

As on 31 March 2023, NTPC Group has a commissioned RE capacity of 3204 MW. The projects developed under own capacity addition mode and through developer mode are described below:

S Projects under Own Capacity Addition

Commissioned RE Projects: 3204 MW. It covers solar (ground and floating), wind, and small hydro installations spread over the country. Projects Under Implementation: RE capacity under various stages of implementation totals 4668 MW.

S Developer Mode Projects

MNRE has accorded its approval to NTPC to act as a designated agency for the issue of tenders for setting up renewable power projects covering wind and solar under developer mode. Under this, 5083 MW of RE projects have been commissioned and 890 MW of RE projects are under implementation.

2. Carbon Capture and Utilization, Green Chemicals and Green Fuels

Your Company is exploring opportunities in the domain of carbon capture and utilization, green hydrogen, green fuel, and green chemicals. Salient projects in these areas are listed below:

a. Carbon Capture & Utilization (CCU)

The projects being undertaken under CCU are as follows:

• Setting up of 10 TPD Flue Gas CO2 to Methanol demonstration plant at NTPC Vindhyachal.

• Development of Indigenous Catalyst for hydrogenation of CO2 to Methanol by NETRA.

• Setting up of 10 TPD Flue gas CO2 to Gen-4 Ethanol demonstration plant at NTPC Lara

b. Green Hydrogen Technology

The projects being undertaken for producing green hydrogen are as follows:

• Development of Sea Water Electrolyser

• Development of Metal Hydride based H2 compression and storage

• Set up of 25 kWe Green Hydrogen Grid at NETRA

• Indias first Green Hydrogen Blending facility on pilot basis to blend green hydrogen in Piped Natural Gas (PNG) network commissioned at Kawas, Gujarat.

• Indias first Green Hydrogen Mobility project with design green hydrogen production capacity of 80 kg/day, is under implementation at Leh, Ladakh.

• Green Hydrogen fuelling station being setup at Badarpur, Delhi with a capacity of 260 kg/day and 5 numbers of FCEV buses for Intercity travel between Delhi to Agra and back.

c. Water Technology

The projects being undertaken for producing clean water from wastewater and to subsequently produce hydrogen are as follows:

• Development of 24 TPD Electrodialysis Reversal Project

• Set up of 240 TPD Non -Thermal Forward Osmosis plant

3. E-Mobility

Your Company envisions to provide zero emission mobility solutions for public transport which includes providing vehicles based on various technologies. Your Companys subsidiary NVVN has supplied 40 E-buses to the Department of Transport Andaman & Nicobar and 90 E-buses to Bengaluru Metropolitan Transport Corporation. The buses in A&N are under commercial operation for last 2 years and have logged approximately 3 million kms. Buses in Bangalore are under commercial operation and have travelled more than 5 million kms till 31 March 2023. NVVN also plans to provide E-buses and E- cars to various projects of NTPC.

4. Cross Border Power Trading

The guidelines issued by MOP, and CERC Regulation for cross-border trading of power have opened opportunities to export power to neighbouring countries. Presently, India exports electricity to Nepal, Bangladesh, and Myanmar. India imports power from Nepal and Bhutan but exports power during the lean hydro season.

NVVN has been assigned the role of Nodal Agency for cross-border trading of power by GOI. NVVN has also been nominated as Settlement Nodal Agency (SNA) for the settlement of Grid operation-related charges with neighbouring countries, Bangladesh, Bhutan, Nepal, and Myanmar. Following this, NVVN has signed an SNA agreement with Nepal Electricity Authority (NEA) and with Druk Green Power Corporation Bhutan. SNA agreement with Bangladesh Power Development Board (BPDB) shall be signed shortly.

NVVN has commenced the CrossBorder Electricity Trade (CBET) in power exchange platform by supplying power to Nepal Electricity Authority through day ahead market platform of Power Exchange. This is a first of its kind initiative that helped NVVN to further expand its cross-border portfolio. NEA through NVVN had started export of hydro power to India through its power exchange market.

NVVN has signed various Power Purchase Agreements with Bangladesh and Nepal aggregating to 742 MW and up to 200 MW respectively. NVVN is exploring possibilities for sale of power from NEA hydro power stations to BPDB through Indian Grid. Also, the agreement to supply 192 MW of power to BPDB through Tripura has been renewed till March 2026.

5. International Business

Your Company, building on the proven project management and O&M experience with an expanding power generation portfolio, has made a global presence in various countries as below:

a. Project Development

Bangladesh-India Friendship Power Company Private Limited: This 50:50 joint venture company formed with the BPDB, is constructing a coal- based power plant of 1320 MW capacity at Rampal (Khulna) christened as Maitree Super Thermal Power Plant. The first unit of 660 MW is under commercial operation since 23 December 2022. Second unit has also been synchronised on 28 June 2023.

Trincomalee Power Company Limited (TPCL): A 50:50 joint venture with Ceylon Electricity Board, Sri Lanka was formed to undertake the development, construction, establishment, operation, and maintenance of an electricity generating station in Trincomalee in Sri Lanka. TPCL shall develop a solar power project for 50 MW in Phase I and 85 MW in Phase II at Sampur. The Joint Venture & Shareholders Agreement (JVSHA) has been signed. IEE (Initial Environment Examination) report has been submitted to CEA, Sri Lanka for further processing of Environment Clearance.

b. PMC consultancy work with International Solar Alliance

Your Company is associated as a corporate partner with International Solar Alliance (ISA) and has been awarded the following Project Management Consultancy (PMC) jobs abroad:

ISA Solar Park assignment (ISA Program 06) Appointed as PMC consultant for implementation of 6520 MW Projects in various countries, NTPCs mandate is to structure projects, tendering for selection of developers on behalf of the countries and oversee the construction activities till successful commissioning. More countries are being approached for assignments on similar lines.

Country PMC Capacity
Togo 250 MW
Mali 500 MW
Malawi 100 MW
Niger 50 MW
Cuba 1150 MW
Paraguay 500 MW
Ethiopia 410 MW
Zambia 400 MW
Venezuela 2000 MW
Guinea Bissau 60 MW
DR Congo 1000 MW
Nicaragua 100 MW
Total 6520 MW

Your Company has been awarded PMC assignment for setting up 100 kWp Rooftop Solar PV Projects by Governments of Ethiopia and Sao Tome and Principe. The projects are being funded by ISA.Your Company is also carrying out PMC assignments for setting up solar demonstration projects in 11 ISA member countries viz. Seychelles, Sudan, Senegal, Djibouti, Cuba, Ethiopia, Suriname, Burundi, Mozambique, Malawi & Uganda. The project developers have been identified and the execution activities are in progress.

Your Company has recently signed a tripartite letter of intent with African Development Bank (AfDB) and International Solar Alliance to enhance the bankability of the projects under ISA Program 06 in Africa for which NTPC is acting as PMC.

c. Consultancy assignments secured through competitive bidding

Your Company has secured several consultancy assignments through competitive bidding which are in various stages of development.

• Myanmar: Successfully completed a Mini Grid project under Rural Electrification in Rakhine state and a project on promotion of solar- based technologies in the agriculture sector of Myanmar along with UNDP

• Mauritius: Execution of a consultancy

assignment for 2 MW Floating Solar PV Plant at Tamarind Falls Reservoir in Mauritius by CEB Mauritius. 1st phase of the assignment has been completed and PMC services for 2nd phase are to be provided.

• Zambia: Secured a consultancy assignment for preparation of Feasibility Report for ground mounted Solar PV project for Surya Energy Limited Zambia in December 2022.

• Eswatini: Organization Efficiency Study of Eswatini Electricity Company (EEC), Kingdom of Eswatini

• Oman: Technical support services for 7 MW ASaffa Food SAOG Solar PV Plant in Oman. Training program on Integrating Solar Energy in the existing and developing new Schemes/ Programmes for ISA member countries.

d. International MOU

Your Company signed an MOU with Moroccan Agency for Sustainable Energy (MASEN), in July 2022 for collaboration in power sector in Morocco and other African countries. Your Company is also exploring business opportunities through MOUs signed with other international power sector entities of Europe and Africa etc.

e. Training and Capability Building Programs

Your Company is actively engaged with stakeholders across the globe to run capability building programs for the power sector officials. Such training programs are strategic in nature as these shall not only create increased outreach and goodwill for your Company but also may generate various business prospects through people-to- people networking.

Recently, your Company has provided training to 39 Power sector professionals from Myanmar in India under ITEC program of GOI. More such trainings are being discussed with Ministry of External Affairs under various programs of GOI for power sector professionals of several countries.

f. Other Initiatives

Further, your Company has been registered as an overseas company in Kenya and is looking for business opportunities through local representatives in Dubai in the Middle East and Togo in Africa. Your Company is also exploring investment opportunities in Renewable Energy and consultancy opportunities in the areas of PMC, O&M services, R&M of power plants, capability building, etc. in the regions such as the Middle East, Southeast Asia, CIS regions, Latin America, and Africa.

Your Company is taking important initiatives for increasing global presence of Indian CPSEs and organised the CPSE Meet in joint association with Ministry of External Affairs (MEA), being chaired by Secretary (ER), MEA and attended by CMDs and Directors of Indias leading CPSEs.

6. Inorganic growth opportunities

Jhabua Power Ltd. (JPL) became your Companys first acquisition through the NCLT route. NCLT approved the Resolution plan submitted by NTPC on 6 July 2022 and NTPC implemented the Resolution Plan on 5 September 2022. Jhabua Power Limited is now 50:50 JV Company of NTPC and Secured Financial Creditors and has one operational unit of 600 MW in Madhya Pradesh.

7. Efficiency improvement

Your Company has laid major stress on the efficient utilization of resources and the use of technological advancements for improving energy efficiency.Till March 2023, your Company along with its JVs and Subsidiaries, has implemented 18,880 MW capacity based on Super Critical technology. Your Company has commissioned the countrys first two Ultra-Super Critical (USC) power units with a capacity of 2x660 MW at Khargone, while at Telangana it is in the final stage of commissioning the units. Your Company aims to enhance the overall efficiency of its coal plants, thereby achieving a substantial reduction in CO2 emissions. Adoption of USC parameters shall result in a reduction of CO2 emission (as also others like NOx and SOx) by around 8% when compared to conventional subcritical power plants for every unit of electricity generated.

Further, for reduction of CO2 emissions, Torrefied biomass co-firing up to 20% and provision of Carbon Capture and Utilization from 10% to 20% is being kept in the future thermal power projects.

Air Cooled Condenser (ACC) System has been adopted at North Karanpura and Patratu STPP, this will bring a significant reduction in specific water consumption for the respective projects. Unit#1 at North Karanpura STPP has been successfully commissioned with ACC in March 2023. Adoption

of ACC for such Large-scale power plant is a unique initiative towards water saving.

IE4 efficiency class motors (super premium efficiency class) for ratings up to and including 50 KW have been included in technical specifications for all future NTPC projects. All other ratings of LT motors are IE3 efficiency class (premium efficiency class).

8. Consultancy

NTPCs wealth of knowledge, experience, expertise, and brand image in the entire value chain of power generation business positions us as the preferred Consultant for providing consultancy services in power generation and related areas. NTPC Consultancy offers comprehensive services in conventional and renewable power generation, providing value-added solutions tailored to the specific needs of its clients within the power sector and beyond.

NTPC Consultancy provides a range of offerings, including:

• Owners Engineer Services

NTPC Offers concept to commissioning services through Owners Engineer Assignment in conventional as well as renewable energy systems, encompassing:

Prefeasibility, feasibility studies, Pre-award services including Bid process management and post award engineering services including inspection.

Project Management, Site Supervision, assistance in commissioning and PG Test

Quality Assurance & Inspection Services - NTPCs stringent Quality Management System, Vendor assessment process, inspection offices all over India and capability to undertake inspections abroad with experienced professionals help client to achieve high quality standards.

• Operation & Maintenance of Power Plants

NTPC offers a bouquet of O&M services including:

Complete O&M of power plants and O&M management services like Technical Audits, Performance Improvement Services, O&M Management System, Efficiency Management etc.

Environmental Audits

Renovation & Modernization - NTPC offers solutions for R&M of old plants for enhancement of performance and life cycle from its extensive experience in system restoration, efficiency improvement and R&M of old thermal power projects.

• Implementation of New Environment norms:

NTPC also provides Owners Engineer Consultancy service from Concept to Commissioning for Flue Gas Desulphurization (FGD) systems, SPM control and reduction in water consumption.

• Technical Due Diligence: NTPC supports lenders in management of stressed assets through technical due diligence.

• IT and HR Services: NTPC offers IT services including some of its flagship home-grown products such as DREAMS (Drawing Review and Management System), CLIMS (Contract Labour Management Information System), Implementation of ERP, Plant Information (PI) System etc. NTPC conducts Organizational restructuring studies, policy framing and system formation.

• Contract & Procurement Services

NTPC from its wide experience in procurement of equipment & items in line with the guidelines & procedures of funding agencies like World Bank, Asian Development Bank, JICA etc. supports its client in contract and procurement services on their behalf.

• Distribution Business Opportunities

Your Company has signed Project Implementation Agreements (PIAs) with KPDCL & JPDCL on 27 February 2023 for loss reduction works under RDSS in specific districts of Jammu & Kashmir.


1. RE Capacity Growth

The following factors will increase the input cost leading to challenges for the fast-paced growth of RE Capacity:

Policy and Regulatory Uncertainty: Changes in policies, Regulations, and incentives can create uncertainty for investors and project developers. Delays in project approvals can add on to the business risk and hinder the growth of the renewable energy sector.

Limited Grid Capacity: The existing grid infrastructure may have limited capacity to absorb large-scale renewable energy. Without adequate grid upgrades and expansion, renewable energy projects may face challenges in injecting power into the grid.

• Land and Resource Constraints: Scaling up renewable energy projects requires significant land and resource availability. Land acquisition challenges, conflicts over land use, and competition for limited land resources can pose hurdles to the development of renewable energy projects.

Efforts are made to obtain all statutory clearances and ensure land availability before the commencement of the projects. Timely tie up for power evacuation and expediting the installation of associated transmission system is helping in mitigating the grid capacity constraints. Further, GOI has planned the enhancement of the transmission capacity to meet target of 500 GW non-fossil fuel- based capacity by 2030.

2. Flexible operation of Thermal Units

To integrate variable RE into the grid, coal-based power plants must regulate their generation to maintain grid balance. Therefore, the influx of more RE power in the grid would require many coal-based plants to operate at technical minimum capacity, frequent load fluctuations, and two-shift operations. This will result in lower efficiency at partial load leading to a higher cost of generation. Other factors like the cost of balancing services, and reduced life due to flexible operation of the thermal plant would also adversely affect the cost of generation.

Most of the NTPC plants have achieved the ramping rate required for flexible operation and policy advocacy for compensating the additional cost due to flexible operation is also being taken up at various levels.

3. Environmental Concerns

The environmental concerns particularly relating to coal-based thermal stations have emerged as a major challenge to the sector. To comply with new standards for water consumption, PM, SOx, NOx, and mercury, thermal power plants need to install emission control equipment like FGD (Flue Gas Desulphurisation), and DSI (Dry Sorbent Injection) along with necessary combustion modifications and retrofitting of ESP (Electrostatic Precipitator). The cost of retrofitting appropriate systems to meet these norms will have an adverse impact on tariffs. Logistics and supply chain for sourcing the consumables and disposing of the waste generated impose additional challenges. Non fulfillment of Environmental norms may result in levy of environmental compensation as per the latest MOEF&CC notification dated 5 September 2022. To meet the norms, FGD and DSI technology has been commissioned at 8 Units (2990 MW) and under erection at 126 units (59290 MW). Combustion Modification for NOx completed at 45 out of 50 units and R&M of ESP completed at 40 out of 50 units.

Further, as per new environment norms, all plants must achieve 100% ash utilization within a compliance period based on their level of Ash utilization.Various initiatives have been undertaken for the development of new products and processes for bulk Ash utilization and as a result novel technologies & products such as Geo Polymeric (GPC) Road, Geo polymeric Pavers & Tetrapod, etc. have been successfully developed and implemented.

4. Non-availability of Gas

GOI has accorded higher priority for allocation of domestic gas to CGD (City Gas Distribution) sector. Due to the diversion of allocated gas to the CGD sector as per MOP&NG guidelines, allocated domestic gas (APM/Non-APM) supplies to your company became Nil w.e.f. 16 June 2021. Further, due to high reserve prices and onerous terms & conditions, the Power sector is not able to tie up new domestic gas from the KG basin. Gas stations are dependent upon costlier RLNG for declaring capacity/generation, however, the generation schedule on RLNG is not available on a sustained basis. Gas is procured from available sources and spot market as per the requirement.

5. Coal Shortage

The unprecedented rise in power demand coupled with constraints in coal transportation and a steep rise in the price of imported coal may result in inadequate coal stock at thermal plants, pushing them below critical levels.

However, your Company is making all efforts to secure fuel supply through existing Fuel Supply Agreements (FSA), increasing captive coal production and tying up for additional fuel sources domestically. Import of coal has also been undertaken as per the requirement and in alignment with Government guidelines.


Strategic focus of the Company

As India is expected to grow at a fast pace in the Amrit kaal., your Companys priority is to support this pace of economic development by providing accessible, affordable, and reliable power to the consumers. The demand for power registered a growth of 9.6% in the financial year 2022-23 due to the post pandemic economic recovery and an abnormally hot summer. Under these testing circumstances your Company has not only catered to this surge in demand, but also did it more efficiently. This is reflected in the generation touching ~400 BUs and average PLF of your Companys coal stations reaching 76%, way higher than the country average of 64%. In terms of market share your Company supplied around 25% of the Countrys power demand while having around 17% of installed capacity thus maintaining its leadership position in power generation. This has been made possible with a diversified portfolio and an integrated supply chain from coal mining to power trading.

The stature of your Company is well depicted by its worldwide rankings such as 1st Independent Power Producer (IPP) in the PLATTS IPP and Energy Trader Rankings (2022), 16th in Fortune India 500 Companies (2022) and 11th largest among Indian Companies (485th Globally) in Forbes Global 2000 Companies (2022).

The focus of your Company is to fulfil the ever- increasing power requirements of the country, critical for meeting the growth aspirations. While doing this, it is of cardinal importance to be a major contributor in the energy transition fostering the achievement of net zero milestone.

In this regard, your Company has an ambitious plan to reach a total installed capacity of 130 GW by 2032. In Renewable space, the target is to achieve 60 GW by 2032. The present portfolio of RE projects is around 20 GW, out of which 3.2 GW has already been commissioned, while remaining is under various stages of development.

Further, capacity addition is planned through Ultra Mega Renewable Energy Power Projects (UMREPPs), collaborating with other companies, partnering with State Governments and through competitive bids. To focus on RE business, your Company has consolidated its RE portfolio in NTPC Green Energy Limited (NGEL). To ensure the optimal utilization of the vast renewable capacity planned, energy storage solutions will be of vital importance. In this regard, it is planned to develop substantial storage capacity. In this regard, GOI has indicated power CPSEs for development of PSPs across

the country, under this PSPs totalling 11.5 GW have been indicated for your Company and we are taking up with State Governments for implementing these. Considering the high level of variable RE infusion, it is important to provide base load support to the grid, to ensure grid stability. For this purpose, a thermal capacity of around 6GW through brown field projects is also under various phases of planning/development. Further to foray into nuclear power sector, your Company is collaborating with Nuclear Power Corporation of India Limited (NPCIL). This will also help the country in meeting the net zero emission target by 2070.

It is also planned to foray into the Hydrogen ecosystem for production of Green Chemicals and Fuels (Methanol & Ammonia) supported by research & development and collaboration with OEM/OES, research institutes, etc.

To expand its RE-C&I (Commercial and Industrial) portfolio, your Company has also entered into agreements with various companies for supply of RE- RTC power.

Further, your Company envisages enhancing its current presence in consultancy services, power trading, and ancillary services and has targeted a 25% market share in ancillary services and storage by 2032 under its longterm plan.

Fuel security is of critical importance for the thermal portfolio; therefore, your Companys focus is on increasing the captive coal production. Efforts are on to acquire new coal blocks through participation in commercial auctioning by the Ministry of Coal.

Growth Outlook

Your Company is looking for opportunities to expand and diversify its business in new areas both domestically and globally by working in close coordination with the Indian and global energy community. Some of the key growth opportunities identified by the company are:

Renewable Energy

On careful consideration of the prevalent market conditions, NTPC has directed its focus broadly into 4 major sectors as elaborated below:

1. Ultra-Mega Renewable Energy Power Park

NTPC is implementing and planning cumulative capacity of 36 GW in different states through UMREPP scheme such as Rajasthan (20 GW) and Gujarat (4.8 GW), Maharashtra (2.6 GW), Uttar Pradesh (2GW), Andhra Pradesh (4 GW), Madhya Pradesh (0.6 GW) and DVC (2 GW) for realizing 60 GW RE capacity plan.

Green Valley Renewable Energy Limited, a subsidiary of NTPC REL in 51:49 Joint Venture with

DVC, has been incorporated on 25 August 2022 with an objective to develop, operate and maintain Renewable Energy Park and Project(s) in reservoirs and land owned by DVC.

2. Green Hydrogen

Various projects are being undertaken to produce Green Hydrogen as discussed earlier in the Opportunities Section.

3. Energy Storage

CEA has projected Battery Energy Storage (BES) capacity of 236 GWh as a part of the installed capacity by 2032. The storage requirement for grid balancing and grid support activities is an opportunity for RE deployment and countering intermittency.

Your company has tendered 500 MW/3GWh and 1500 MW/9 GWh of Storage capacity for use in tandem with RE projects.

Exclusive energy storage based green hydrogen projects are also in the pipeline to be executed at suitable location(s) across India. A MOU has been entered between NTPC and Indian Army to this effect.

4. Offshore Wind

India has a long coastline of ~7000 kms, with this vast coastline, the offshore wind energy potential is estimated at around 70 GW, significantly higher than the total onshore wind capacity of about 40 GW presently installed.

NTPC is exploring collaborations with global partners to share expertise and leverage their experience in developing offshore wind energy projects and exploring innovative financing mechanisms, such as green bonds and debt financing, to fund offshore wind energy projects. NTPC is playing its part in developing Indias offshore wind energy sector and supporting the countrys broader energy transition goals.


Your Company is exploring new business opportunities in different areas as summarised below:

1. RE-RTC (Round the Clock) Power

To diversify its business further, JV has been formed with IOCL and various MOUs with others have been signed for supply of Renewable Energy - Round the Clock (RE- RTC) power for captive use.

• JV with IOCL

NGEL has formed JV with Indian Oil under the name "Indianoil NTPC Green Energy Private Limited" for developing Renewable Energy based power projects, to supply 650 MW or more renewable power on round the clock basis, to cater to the requirements of Indian Oil.

• MOU with HPCL

NGEL has signed an agreement with HPCL for supply of 400 MW of round-the-clock power to HPCL.

• Agreement with Greenko ZeroC Pvt. Ltd.

NTPC REL, has signed agreement with Greenko ZeroC Pvt. Ltd. (a Greenko Group Company) to supply 1300 MW RE-RTC power for powering Greenkos upcoming Green Ammonia Plant at Kakinada, India. The agreement between the two companies is one of the worlds single largest contracts for supply of RE-RTC power for an industrial client.

• MOU with GACL

NTPC REL has signed a MOU with Gujarat Alkalies and Chemicals Limited (GACL) for collaborating in the field of Renewable Energy, Green Methanol & Green Ammonia and mutually exploring the opportunities for the supply of RE-RTC power and synthesizing Green Methanol and Green Ammonia for captive use by GACL.

• MOU with National Fertilizers Limited (NFL)

NTPC REL signed an MOU with NFL for collaboration in the field of Renewable Energy & Green Chemicals and mutually explore opportunities for the supply of RE-RTC power in phases and synthesizing Green Ammonia for captive use for production of Industrial products by NFL.

2. CO2 to Chemicals:

An EOI has been floated seeking response from Industries for setting up CO2 capture, hydrogen generation, and CO2 to Methanol production in NTPC Plants. A non-binding MOU was signed with M/s Tecnimont to jointly evaluate and explore the possibility of developing commercial scale green methanol production at NTPC.

New Business Initiatives

NTPC is exploring opportunities to produce green hydrogen using electricity from RE sources and using green hydrogen for various applications. These are for mobility, production of green fuel (methanol, ammonia), establishing microgrids, natural gas blending with hydrogen for the City Gas Distribution system, etc. These are the steps of a Low carbon transition effort of the Company. In this regard, the following initiatives are pursued at different Locations:

1. Nuclear Energy

NTPC has signed a Supplementary Joint Venture Agreement (SJVA) with Nuclear Power Corporation of India Ltd. (NPCIL) for development of Nuclear Power Projects. Initially, the JV company shall develop two Pressurized Heavy-Water Reactor (PHWR) projects in Chutka, Madhya Pradesh of 2x700 MW capacity and in Mahi Banswara, Rajasthan of 4x700 MW capacity.

2. Industrial Parks

Kudgi: Your Company is developing Industrial Park for energy intensive industries within the land available in Kudgi. Through this unique initiative, NTPC pLans to suppLy 24x7 reLiabLe eLectricity at competitive tariff directly to energy intensive industries, which is a primary requirement for their sustainability. KPMG has been appointed as the marketing and branding consultant.

Hydrogen Hub at Pudimadaka: Your Company has conceptualised setting up of a Green Hydrogen Hub at Pudimadaka near Vishakhapatnam. The Project shall involve establishment of Manufacturing faciLity for Hydrogen reLated equipment and production & export of Green Hydrogen.

A detailed proposal was submitted to Andhra Pradesh Government for deveLopment of this Hydrogen Hub at Pudimadaka. The State Investment Promotion Board (SIPB) and State Cabinet has cleared NTPCs proposal.

A non-binding MOU with Govt of Andhra Pradesh for facilitating the project has been signed during Global Investor Summit hosted by Government of Andhra Pradesh. The Project DPR & strategy for implementation are under preparation.

3. Bamboo-based Bio-Refinery at Bongaigaon

Your Company is currently pursuing a technoeconomic Feasibility Study through M/s EIL to setup a Bamboo based 2G Bio-Refinery project at Bongaigaon Thermal Power Station. Through this project, NTPC aims to extract vaLuabLe biochemicals from naturally available bamboo in the region and use the by-product produced i.e., Biocoke as a fuel for blending with coal to fire in the Bongaigaon ThermaL Power Station. A non-binding MOU with ChempoLis was signed for expLoring the feasibility of setting up an integrated bamboo based biorefinery with NTPC Bongaigaon ThermaL Power Station.

4. Commercial operation of Desalinated Distillate/ Mineral Water generated at NTPC Simhadri-

NETRA had developed the "Flash Desalination Technology (FDT)" for production of quality water (desaLinate/distiLLed) from sea/brackish water utilizing the heat from flue gas of power plant. A facility for production of 120 ton per day of desaLinated water using FDT technoLogy was set up by NETRA at NTPC Simhadri. SubsequentLy, for commerciaL utilisation of desaLinated water a RAIL NEER packaged drinking water bottLing faciLity at NTPC Simhadri has been commissioned on 26 August 2022 under MOU with IRCTC.

5. Collaboration with State Governments Uttar Pradesh

Your Company has signed following proposals for investments in UP Power Sector during UP GLobaL Investors Summit:

• Setting up of Floating Solar of up to 1 GW capacity on Rihand Reservoir, subject to feasibility and bathymetric studies.

• Expansion of MUNPL (a JV of NTPC & UPRVUNL) by 2400 MW capacity (3x800 MW), subject to feasibiLity, statutory cLearance, and equity infusion by GOUP

• Expansion of SingrauLi CoaL based thermaL pLant with Stage-III of 1600 MW capacity (2x800 MW), subject to feasibiLity and statutory clearance.

• JointLy setting up 2x800 MW supercriticaL ThermaL Power PLants at Obra and Anpara with UPRVUNL.

Andhra Pradesh

Your Company and GOAP have signed MOU at Global investor summit hosted by Government of Andhra Pradesh in the foLLowing areas:

• DeveLopment of various Pumped Storage Projects.

• Development of 20GW renewable energy capacity in the state for which land in the state can be identified and aLLotted by GOAP on which the wind and soLar projects can be setup.


NTPC RenewabLe Energy Ltd. (NTPC REL) has signed an MOU with Government of Tripura for development of Floating and Ground Mounted solar renewable energy Projects in the State of Tripura. This MOU shall help Government of Tripura in meeting its Clean Energy Commitments and obligations.


Your Company is producing coal from four mines i.e., Pakri-Barwadih, Dulanga, Talaipalli & Chatti-Bariatu. Total coal production for the financial year 2022-23 stood at 23.20 MMT with a growth of 65% over previous financial year while cumulative production till 31 March 2023 stood at 69.60 MMT Production from the Chatti- Bariatu mine started in September 2022. Kerandari mine started mining operations in April 2023. The process for appointment of MDO (Mine Developer cum Operator) for Badam mine is in progress.

Development activities and process of acquiring statutory clearances are going on in the Banhardih mine, allocated to Patratu Vidyut Utpadan Nigam Ltd. (PVUNL), a JV of your Company.

NTPCs subsidiary THDCIL is developing Amelia Coal Mine to meet the fuel requirement of the Khurja STPP which is being constructed by THDCIL.

Efforts are being made for acquisition of new coal blocks through participation in commercial auctioning of coal blocks by the Ministry of Coal (MOC). Your Company aspires to become one of the largest captive coal mining companies in the country by adding new coal mines to its portfolio and increasing the capacity to 100 MMTPA from existing 71 MMTPA.

To focus on the mining business, NTPC Mining Ltd. (NML), a wholly owned subsidiary of your Company, was incorporated. While Ministry of Coal (MOC) had granted the permission for transfer of Pakri-Barwadih mine to NML in December 2020, transfer of other mines to NML has been allowed by MOC and amendments in allotment agreements were signed by MOC and NTPC on 20 March 2023.


Your Company has in place a robust payment security mechanism in the form of Letters of Credit (LC) backed by the Tri-Partite Agreement (TPA). In addition to LCs, payment is secured by the Tri-Partite Agreements (TPAs) signed by the State Government(s), GOI, and RBI. As per the TPAs, any default in payment by the State-owned DISCOMs can be recovered directly from the account of the respective State Government(s) in association with RBI. The original TPAs signed were valid up to October 2016. As per the decision of the Union Cabinet and as agreed by the various States and the RBI, these

TPAs have been further extended for a period of 10 to 15 years. As on 31 March 2023, 29 out of a total of 31 States/UTs have signed the TPA extension documents. The signing of TPA extension by remaining States is in progress.

During the financial year 2022-23, your Company has realized 100% of its current bills raised for energy supplied. Most of the beneficiaries have made timely payments in line with Late Payment Surcharge Rules 2022.

Leveraging on Strengths for Delivering Better Future Performance

Your Company derives its competitive edge from its strengths and is confident of meeting future challenges.

a. Project Management

Your Company has adopted an integrated system for planning, scheduling, monitoring and controlling of projects under implementation. To coordinate and synchronise all the support functions of project management it relies on a three-tiered project management system known as the Integrated Project Management Control System (IPMCS), which integrates its engineering management, contract management and construction management control centres. The IPMCS addresses all stages of project implementation, from concept to commissioning. The IPMCS system provides regular monitoring, analysis of variations identified both within the external and internal control parameters and taking managerial action based on "Management by Exception" philosophy.

In addition to above, in order to make monitoring of projects more effective, your Company is now adopting Integrated Software monitoring tool for integrating progress of Engineering, Supplies and Erection at one place and capturing progress online. Features like mobile app based updation of progress and role-based access make the tool more user-friendly as it enables regular updation of progress and taking timely remedial actions. In a changing global scenario, your Company has added various other project management tools which are Online CAPEX monitoring system/ Digital Hindrance register/ Digital Chronology register/ Safety Register etc.

b. Operational Efficiency

The operating performance of your Company has been consistently above the national average. Over the years, the Company has consistently operated at much higher operating efficiency as compared to Ah India operating performance.

In order to achieve cost-competitive, environment friendly, efficient & reliable power generation, the Company has adopted following strategies:

• To improve reliability of the units and to reduce the forced outages, close monitoring of startups & shutdowns and root cause analysis of all the outages is carried out and action plan generated to mitigate the outages.

• Continuous real time monitoring of critical parameter deviations (both reliability & efficiency related) and implementation of action plan to mitigate the deviations.

• Optimizing planned outage period through implementation of Overhaul Preparedness Index (OPI), ensuring all quality checks and time bound monitoring of each activity.

• Improvement in Heat Rate & Auxiliary Power Consumption achieved by parametric optimization, specially at part loads by operation of units in sliding pressure mode & optimizing excess air.

• To minimize efficiency losses in stations, Plant Information (PI) system-based applications for real time efficiency & loss calculations.

• Structured & regular energy audits to identify potential areas of improvement in APC reduction and Implementation of action plans.

• To reduce cost of generation steps have been taken to reduce Energy Charge Rate (ECR) by swapping of coal supplies and optimizing operations.

• Use of Comprehensive Performance Evaluation Matrix (PEM) for relative evaluation of the performance of various power plants to create an environment of in-house challenge and competition. The parameters are reviewed annually to include new parameters commensurate with market dynamics and developments in power sector.

• Adopting advanced technologies in new units e.g., commissioning of super critical units, which improves system efficiency & reduces carbon footprint and retrofits of DeNOx & DeSOx technologies in older units.

• Renovation & modernization for reduction of greenhouse gas emissions, effective modernized control systems for environment friendly economic generation and particulate emission control.

• Water conservation measures like increasing the Cycle of Concentration (CoC) of circulating water and ash water recirculation, implementation of zero effluent discharge, high concentration ash-slurry discharge, dry evacuation of ash and Air Cooled Condensers (ACC) etc.

• Strict compliance of Grid Code, Restricted Governor Mode Operation (RGMO) implementation, Automatic Generation Control and other system requirements.

c. Human Resources

Your Company has a highly talented team of committed professionals and has been able to induct, develop and retain the best talent. Your Company has a very low executive attrition rate. Your Company is deeply passionate about ensuring the holistic development of all its employees as distinct individuals and good citizens. Competence building, Commitment building, Culture building and Systems building are the four pillars on which HR Systems of your Company are based.

Your Company has been conferred with various HR Awards over the years by reputed institutions and consistently features among the "Great Places to Work for". The commitment of the employees is also reflected in consistent improvement of financial parameters such as sales per employee, value added per employee etc.

d. Sound Corporate Governance

Your Companys corporate governance practices have been recognised and awarded at several forums. Your Company believes in following the highest standards of transparency, integrity and accountability. It enjoys the confidence of all stakeholders alike. Your Company not only believes in adopting best practices but also includes public interest in its corporate priorities and has developed extensive social outreach programmes.

e. Robust Financials and Systems

Your Company has strong financial systems in place. It believes in prudent management of its financial resources and strives to reduce the cost of capital. Your Company enjoys highest credit-rating assigned by CRISIL, ICRA, CARE and India Ratings. The foreign ratings by Fitch, S&P & Moodys are at par with sovereign ratings. It has robust financials leading to strong cash flows which are being progressively deployed in generating assets. Your Company has a strong balance-sheet coupled with low gearing and healthy coverage ratios. As a result, your Company has been able to raise resources for its capital expansion projects at very competitive interest rates in domestic as well international markets.

Internal Control

To ensure regulatory and statutory compliances as well to provide highest level of corporate governance, your Company has robust internal systems and processes in place for smooth and efficient conduct of business and complies with relevant laws and Regulations. A comprehensive delegation of power exists for smooth decision making which is periodically reviewed to align it with changing business environment and for speedier decision making. Elaborate guidelines for preparation of accounts are followed consistently for uniform compliance. To ensure that all checks and balances are in place and all internal control systems are in order, regular and exhaustive internal audits are conducted by experienced firms of Chartered Accountants in close co-ordination with the Companys own Internal Audit Department. Besides, your Company has two committees of the Board viz. Audit Committee and Committee on Management Controls to keep a close watch on compliance with Internal Control Systems.

A well-defined internal control framework has been developed identifying key controls. The supervision of operational efficiency of designed key controls is done by Internal Audit. The framework provides an elaborate system of checks and balances based on self-assessment as well as audit of controls conducted by Internal Audit at the process level. Gap tracking report for operating efficiency of controls is reviewed by the management regularly and action is taken to further strengthen the Internal Control System by further standardizing systems & procedures and implementing process changes, wherever required, keeping in view the dynamic environment in which the Company is operating. The Internal Control Framework system presents a written assessment of effectiveness of Companys internal control over financial reporting by the process owners to facilitate certification by CEO and CFO and enhances reliability of assertion.


A detailed discussion and analysis on financial statements is furnished below. Reference to Note(s) in the following paragraphs refers to the Notes to the standalone financial statements for the financial year 2022-23 placed elsewhere in this report.

A. Financial position

The items of the Balance Sheet are as discussed under:

1 Property, plant & equipment (PPE), Capital work- in-progress, Investment property, Intangible assets and Intangible assets under development (Note-2 to Note-6)

The PPE, Capital work-in-progress, Investment property, Intangible assets and Intangible assets under development of the Company are detailed as under:

(Rs. crore)

As at March 31

Particulars 2023 2022 % Change
Net block of PPE (Note-2) 1,96,441.71 1,95,084.07 1%
Capital work-in-progress (Note-3) 61,743.88 73,519.11 (16)%
Investment property (Note-4) 465.18 - -
Net block of Intangible assets (Note-5) 454.17 486.47 (7)%
Intangible assets under development (Note-6) 44.92 98.47 (54)%

During the year, total gross block of PPE has increased by 5% while capital work-in-progress has decreased by 16% mainly due to addition of new commercial capacity.

Freehold land pertaining to one of the RE stations transferred to NGEL remains with the Company and has been leased to NGEL and accordingly been classified as Investment property during the year considering the requirements of Ind AS 40.

2 Non-current financial assets (Note-7 to Note-11)

(a) Equity investments in subsidiaries and joint ventures (Note-7)

The break-up of equity investments in subsidiaries and joint ventures is as follows:

(Rs. crore)

As at March 31

Particulars 2023 2022
Subsidiaries 19,661.63 15,273.19
Joint ventures 9,427.04 7,873.70
Total 29,088.67 23,146.89

During the year, equity investments in subsidiaries and joint ventures increased by 26%. The increase/ (decrease) is as under:

(Rs. crore)
Name of Company Amount
NTPC Green Energy Limited 4,719.61
Hindustan Urvarak and Rasayan Ltd. 666.53
Bangladesh-India Friendship Power Co. Pvt. Ltd. 541.64
Patratu Vidyut Utpadan Nigam Ltd. 400.00
Jhabua Power Limited 325.00
Meja Urja Nigam Private Ltd. 34.41
NTPC Renewable Energy Ltd. (731.17)
Total investments during the year 5,956.02
Less: Provision for impairment made during the year
National High Power Test Laboratory Private Ltd. 14.24
Net increase in investments 5,941.78

(b) Other Non-current financial assets (Note-8 to Note-11)

Other Non-current financial assets mainly comprise of investment in equity and debt instruments, loans to related parties, employees & others, share application money, claims recoverable, finance lease receivables and mine closure deposit.

(Rs. crore)

As at March 31

Particulars 2023 2022 Change
Other investments (Note-8) 631.08 102.48 516%
Loans (Note-9) 1,233.47 1,288.50 (4)%
Trade receivables (Note-10) 2,399.78 - -
Other financial assets (Note-11) 922.93 1,017.98 (9)%
Total 5,187.26 2,408.96 115%

Other investments mainly comprise of investment in equity instruments of PTC India Ltd. and debt instruments of Jhabua Power Limited.

Outstanding dues of the beneficiaries have been rescheduled upto a maximum period of 48 months in the manner prescribed in the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 and accordingly presented at their fair value under Noncurrent Trade Receivables

Other financial assets include share application money pending allotment in subsidiaries and joint ventures, claims recoverable, finance lease receivables and mine closure deposit.

(Rs. crore)
Other financial

As at March 31

assets (Note-11) 2023 2022 Change
Share application money pending allotment 137.93 - -
Claims recoverable 517.28 696.19 (26)%
Finance lease receivables 201.56 281.93 (29)%
Mine closure deposit 66.16 39.86 66%
Total 922.93 1,017.98 (9)%

Claims recoverable represents the cost incurred in respect of one of the hydro power projects, the construction of which has been discontinued on the advice of the Ministry of Power (MOP), GOI and it is expected that the same will be compensated in full by the GOI. Hence, no provision is considered necessary.

3 Other non-current assets (Note-12)

The changes in other non-current assets during the year are as follows:

(Rs. crore)
Other non-current assets

As at March 31

2023 2022 Change
Capital advances 6,026.69 5,752.78 5%
Security deposits 306.87 310.31 (1)%
Advances to contractors and suppliers (other than capital advances) 1,810.82 1,989.50 (9)%
Advance tax and tax deducted at source (net of provision for tax) 2,476.02 2,668.30 (7)%
Deferred foreign currency fluctuation asset 1,565.41 1,480.72 6%
Others 167.83 153.50 9%
Total 12,353.64 12,355.11 (0)%

4 Current assets (Note-13 to Note-20)

The changes in the current assets during the year are as follows:

(Rs. crore)

As at March 31

Y o Y Change % Change
Current assets 2023 2022
Inventories (Note- 13) 13,679.75 9,691.00 3,988.75 41%


50.00 - 50.00 -
Trade receivables (Note-15) 24,741.45 24,747.45 (6.00) (0)%
Cash and cash equivalents (Note- 16) 3.13 117.48 (114.35) (97)%
Bank balances other than cash and cash equivalents (Note- 17) 3,738.60 2,629.70 1,108.90 42%
Loans (Note-18) 312.45 313.45 (1.00) (0)%
Other financial assets (Note-19) 11,273.81 4,599.61 6,674.20 145%
Other current assets (Note-20) 10,726.15 9,101.70 1,624.45 18%
Total current assets 64,525.34 51,200.39 13,324.95 26%

(a) Inventories (Note-13)

Inventories mainly comprise of coal and stores & spares, which are maintained for operating plants. Value of coal inventory has increased from Rs.2,876.49 crore as at 31 March 2022 to Rs.5,064.63 crore as at 31 March 2023. Further, stores and spares inventory has increased from Rs.5,062.92 crore as at previous year end to Rs.6,231.13 crore, mainly on account of addition of new commercial capacity.

(b) Investments (Note-14)

Current investments comprise of current maturities of debt instruments held in Jhabua Power Limited.

(c) Trade receivables (Note-15)

Trade receivables include unbilled revenue for the month of March amounting to Rs.11,176.95 crore (31 March 2022: Rs.9,987.46 crore) billed, net of advance, to the beneficiaries after 31 March. Including non-current trade receivables and excluding the unbilled revenue, trade receivables are equivalent to ~36 days of sales as on 31 March 2023 in comparison to ~45 days of sales as on 31 March 2022.

Based on arrangements between Company, banks and beneficiaries, the bills of the beneficiaries have been discounted. Accordingly, trade receivables have been disclosed net of bills discounted amounting to Rs.1,287.19 crore (31 March 2022: Rs.8,202.03 crore).

(d) Cash and cash equivalents (Note-16) & Bank balances other than cash and cash equivalents (Note-17)

Cash and cash equivalents & Bank balances other than cash and cash equivalents have increased from Rs.2,747.18 crore as at 31 March 2022 to Rs.3,741.73 crore as at 31 March 2023. The main reason for change is increase in earmarked balances from Rs.1,251.88 crore as at 31 March 2022 to Rs.2,150.00 crore as at 31 March 2023.

(e) Other financial assets (Note-19)

Other current financial assets have increased by Rs.6,674.20 crore. This is mainly due to increase in Advances to related parties by Rs.3,218.94 crore and Contract assets by Rs.2,995.33 crore.

Advances to related parties mainly include balance amounts recoverable in terms of Business Transfer Agreement (BTA) for transfer of RE assets to NGEL.

Contract Assets represent Companys right to consideration in exchange for goods and services that the Company has transferred / provided to customers when that right is conditioned on matters, other than passage of time, like receipt of income tax assessment orders, truing up orders from CERC etc. and are net of credits to be passed to customers.

(f) Other current assets (Note-20)

Other current assets comprise of security deposits, advances to related parties, employees, contractors and suppliers, claims recoverable etc.

(Rs. crore)

As at March 31

Particulars 2023 2022 % Change
Security deposits 2,322.88 1,996.85 16%
Advances 4,426.26 3,003.57 47%
Claims recoverable 3,852.26 3,975.89 (3)%
Others 124.75 125.39 (1)%
Total 10,726.15 9,101.70 18%

Other current assets have increased mainly due to increase in Advances to contractors and suppliers by Rs.1,425.95 crore and increase in deposits with courts by Rs.320.38 crore.

Advances to contractors and suppliers mainly include payment made to coal companies amounting to

Rs.3,143.51 crore (31 March 2022: Rs.1,993.63 crore) for supply of coal to various stations of the Company. Claims recoverable includes claims against Railways amounting to Rs.2,023.76 crore (31 March 2022: Rs.2,006.86 crore) mainly towards diversion of coal rakes and claims amounting to Rs.1,615.66 crore (31 March 2022: Rs.1,893.68 crore) made against coal companies towards various issues such as credit notes to be received as per referee results for grade slippages, supply of stones, claims under settlement through AMRCD, surface transportation charges, etc.

5 Assets held for sale (Note-21)

Land, Building, Plant and equipment and Other assets which have been identified for disposal has been classified as Assets held for sale. These assets are expected to be disposed within the next twelve months. Assets held for sale has increased from Rs.18.09 crore as at 31 March 2022 to Rs.120.52 crore as at 31 March 2023.

6 Regulatory deferral account debit balances (Note-22)

Expense/income recognized in the Statement of Profit & Loss to the extent recoverable from or payable to the beneficiaries in subsequent periods as per CERC Tariff Regulations are recognized as Regulatory deferral account balances. Regulatory deferral account balances are adjusted from the year in which the same become recoverable from or payable to the beneficiaries.

The regulatory assets recognized in the books to be recovered from the beneficiaries in future periods are as follows:

(Rs. crore)
Particulars Regulatory deferral account debit balances
A. Opening balance as on 1 April 2022 12,822.88
B. Additions during the year (479.48)
C. Amount realized/recognised during the year (236.75)
D. Regulatory deferral account balances recognized in the statement of profit and loss (B+C) (716.23)
E. Adjustments during the year (144.68)
F. Closing balance as on 31 March 2023 (A+D+E) 11,961.97

The Company expects to recover the carrying amount of regulatory deferral account debit balance over the life of the projects. Refer Note-71 of financial statements for detailed disclosures.

7 Total equity (Note-23 & Note-24)

The total equity of the Company at the end of financial year 2022-23 increased to Rs.1,38,889.88 crore from Rs.1,28,667.52 crore in the previous year, an increase of 8%. Major reasons for the same are tabulated below:

(Rs. crore)
Particulars Total Equity
Opening balance 1,28,667.52
Profit for the year 17,196.73
Other comprehensive income and other adjustments to reserves 55.71
Dividend paid during the year (7,030.08)
Closing balance 1,38,889.88

The President of India, acting through the Ministry of Power, holds 495,53,46,251 shares constituting 51.10% of total equity shares and balance 474,13,19,883 i.e., 48.90% of equity shares are publicly held.

The increase in total equity resulted in book value per share rising to Rs.143.23 as on 31 March 2023 from Rs.132.69 as at the end of previous year.

8 Non-current and current liabilities (Note-25 to Note-38)

a. Non-current financial liabilities-Borrowings (Note-25):

Details of non-current borrowings including current maturities are as under:

(Rs. crore)

As at March 31

Particulars 2023 2022
Non-current financial


1,56,315.69 1,60,122.17
Current maturities of
non-current borrowings included in current 17,172.23 17,366.26
financial liabilities- Borrowings (Note-32) Total borrowings 1,73,487.92 1,77,488.43

Total non-current borrowings have decreased by 2% over the previous financial year. Debt amounting to Rs.16,257.48 crore was raised during the financial year 2022-23. The amount raised through term loans,

bonds and foreign currency borrowings is used for capital expenditure, refinancing, recoupment of capital expenditure and other general corporate purposes. Details in respect of proceeds and repayment of borrowings for the financial year 2022-23 are as under:

(Rs. crore)
(Principal Amount)

Debt raised Repayment

Rupee term loans 5,285.00 9,446.19 (4,161.19)
Domestic bonds 4,000.00 6,044.87 (2,044.87)
Foreign borrowings 6,972.48 6,880.80 91.68
Total 16,257.48 22,371.86 (6,114.38)
FERV on foreig >n borrowings 2,155.14
Transaction cc )sts (41.27)
Total (4,000.51)

Rupee Term Loans: Banks and domestic financial institutions continued to support the capex program of the Company by extending term loans for financing the on-going capacity expansion plans. During the financial year 2022-23, agreements for term loans of Rs.6,900 crore were entered into with various banks. An amount of Rs.5,285 crore was drawn from domestic banks & financial institutions during the year and an amount of Rs.9,446.19 crore was repaid during the year. The undrawn balance available under various sanctioned loans from domestic banks and financial institutions was Rs.6,351.58 crore as at 31 March 2023.

Domestic Bonds: During the financial year 2022-23, Company raised Rs.4,000 crore through private placement of domestic bonds. Bonds amounting to Rs.6,044.87 crore were redeemed during the year.

Foreign Borrowings: During the financial year 202223, the Company executed a syndicated unsecured term loan of JPY 54.4 billion equivalent to US$400 million with a consortium of banks. The proceeds of the facility shall be utilized towards the financing of capital expenditure for ongoing and/or new capacity addition programs, renewable energy projects including hydrobased projects, coal mining projects and such other purposes, to the extent the same is in compliance with end-use or other requirements stipulated under the RBIs ECB Guidelines. The facility has a average maturity of 7 years and is repayable in 7 equal instalments starting from 4th year from Weighted Average Disbursement Date (WADD) of the facility agreement. Amount drawn

under this facility till 31 March 2023 is NIL.

In all, the Company has drawn Rs.6,972.48 crore and repaid Rs.6,880.80 crore of foreign currency borrowings during the year.

The Company continues to enjoy highest credit ratings for its bonds program and borrowings from banks, while Companys International Ratings are at par with sovereign ratings as detailed hereunder:

Credit Rating Agency Rating Remarks
ICRA [ICRA] AAA (Stable) Highest ratings
INDIA Ratings IND AAA/Stable
S&P BBB-/Stable Equivalent
Fitch BBB-/Stable to sovereign
Moodys Baa3/Stable ratings

The maturity profile of the principal amount of borrowings (excluding unamortised transaction costs and interest accrued) of the Company is as under:

(Rs. crore)
Particulars Domestic Borrowings Foreign Borrowings Total
Up to 1 year 15,998.29 1,173.93 17,172.22
Beyond 1 and within 3 years 26,024.19 14,206.00 40,230.19
Beyond 3 and within 5 years 18,702.28 15,799.85 34,502.13
Beyond 5 and within 10 years 53,142.67 12,781.74 65,924.41
Beyond 10 years 15,377.07 626.30 16,003.37
Total 1,29,244.50 44,587.82 1,73,832.32

b. Non-current financial liabilities - Lease liabilities (Note-26), Trade payables (Note-27) & Other financial liabilities (Note-28)

Lease liabilities have increased from Rs.815.07 crore as at 31 March 2022 to Rs.815.44 crore as at 31 March 2023. The lease liabilities are repayable in instalments as per the terms of the respective lease agreements, generally over a period of more than 1 year and up to 99 years.

Non-current trade payables have increased from Rs.84.62 crore as at 31 March 2022 to Rs.86.52 crore as at 31 March 2023.

Other financial liabilities primarily consist of liabilities for capital expenditure and others. Other financial liabilities have decreased from Rs.815.47 crore as at 31 March 2022 to Rs.419.29 crore as at 31 March 2023.

c. Non-current liabilities - Provisions (Note-29)

Non-current provisions consist of amounts provided towards employees benefits as per actuarial valuation, which are expected to be settled beyond a period of 12 months from the Balance Sheet date. Non-current provisions also consist of Mine closure obligations and Stripping activity adjustments. Non-current provisions as at 31 March 2023 were Rs.1,727.78 crore as compared to Rs.1,446.48 crore as at 31 March 2022.

d. Non-current liabilities - Deferred tax liabilities (net) (Note-30)

Deferred tax liabilities (net) have increased from Rs.10,184.39 crore as at 31 March 2022 to Rs.10,614.07 crore as at 31 March 2023. The increase in deferred tax liabilities (net) during the year is mainly due to capitalisation of new units during the year.

e. Other non-current liabilities (Note-31)

Other non-current liabilities have decreased from Rs.1,081.61 crore as at 31 March 2022 to Rs.70.64 crore as at 31 March 2023. Other non-current liabilities comprise of government grants received in advance amounting to Rs.8.47 crore (31 March 2022: Rs.522.31 crore) for which attached conditions are to be fulfilled / works to be completed relating to various solar power plants. This amount will be recognized as revenue corresponding to the depreciation charge in future years on completion of related projects. Other non-current liabilities also include un-amortised portion of grants received from Solar Energy Corporation of India under MNRE Scheme for setting up Solar PV power projects amounting Rs.39.64 crore (31 March 2022: Rs.534.94 crore). These amounts will be recognized as revenue corresponding to the depreciation charge in future years.

f. Current liabilities (Note-32 to Note-38)

The break-up of current liabilities is as under:

(Rs. crore)

As at March 31

Y o Y Change % Change
Particulars 2023 2022
Borrowings (Note- 32) 28,681.96 24,472.43 4,209.53 17%
Lease liabilities (Note-33) 170.79 168.01 2.78 2%


As at March 31

Y o Y %
Particulars 2023 2022 Change Change
Trade payables (Note-34) 12,007.34 9,734.35 2,272.99 23%
Other financial liabilities (Note- 35) 21,224.80 23,169.61 (1,944.81) (8)%
Other current liabilities (Note- 36) 1,212.97 1,099.84 113.13 10%
Provisions (Note- 37) 7,470.25 7,171.31 298.94 4%
Current tax liabilities (net) (Note-38) 62.97 134.17 (71.20) (53)%
Total 70,831.08 65,949.72 4,881.36 7%

Borrowings (Note-32) comprise of short-term borrowings and current maturities of long-term borrowings. In order to finance the mismatches in the short-term fund requirement, short-term borrowings in the form of commercial papers, short-term working capital loan from Banks and cash credit were resorted to by the Company. Short-term borrowings outstanding as on 31 March 2023 were Rs.11,509.73 crore as against Rs.7,106.17 crore as on 31 March 2022.

Current financial liabilities - Lease liabilities (Note-33) comprise of current maturities of lease liabilities. The same has increased from Rs.168.01 crore as at 31 March 2022 to Rs.170.79 crore as at 31 March 2023.

Trade payables (Note-34) mainly comprise amount payable towards supply of goods & services, deposits & retention money from contractors etc. Trade payables have increased by Rs.2,272.99 crore.

Other current financial liabilities (Note-35) mainly comprise of interest accrued but not due on borrowings and payables towards capital expenditure. The details of other current financial liabilities are as under:

(Rs. crore)

As at March 31

Particulars 2023 2022
Interest accrued but not due on borrowings 2,523.78 2,365.34
Payables for capital expenditure 15,375.83 17,268.61
Others 3,325.19 3,535.66

Other current financial liabilities have decreased mainly due to decrease in payables for capital expenditure by Rs.1,892.78 crore.

Other current liabilities (Note-36) mainly consist of advances from customers & others and statutory dues. Other current liabilities have increased by Rs.113.13 crore.

Current liabilities - Provisions (Note-37) mainly comprises of provisions for employee benefits, obligations incidental to land acquisition, tariff adjustments, arbitration awards and others. During the year current liabilities-provisions have increased by Rs.298.94 crore.

The provision for employee benefits has increased from Rs.1,540.03 crore as on 31 March 2022 to Rs.1,597.14 crore as on 31 March 2023.

Provision for tariff adiustments is detailed below:

(Rs. crore)
Opening Balance as at 1 April 2022 482.28
Provision for interest, which could be payable on the differential amount considered for revenue recognition and others 335.33
Closing Balance as at 31 March 2023 817.61

Provision for arbitration awards has increased from Rs.2,274.72 crore as on 31 March 2022 to Rs.2,646.94 crore as on 31 March 2023 while provision for obligations incidental to land acquisition has decreased from Rs.2,726.80 crore to Rs.2,295.07 crore. Provision for others has also decreased from Rs.147.48 crore to Rs.113.49 crore.

Current tax liabilities (net) (Note-38) denotes the excess of current tax for the year over advance tax paid amounting to Rs.62.97 crore (31 March 2022: Rs.134.17 crore).

9 Deferred revenue (Note-39)

Deferred revenue consists of income from foreign currency fluctuation detailed as under:

(Rs. crore)
Deferred revenue on account of

As at March 31

2023 2022
Income from foreign currency fluctuation 2,616.87 1,973.39

Foreign exchange rate variation (FERV) on foreign currency loans and interest thereon is recoverable from/payable to the customers in line with the Tariff Regulations. Keeping in view the opinion of the EAC of ICAI, the Company is recognizing deferred foreign

currency fluctuation asset by corresponding credit to deferred income from foreign currency fluctuation in respect of the FERV on foreign currency loans adjusted in the cost of property, plant and equipment, which is recoverable from the customers in future years as provided in accounting policy. This amount will be recognized as revenue corresponding to the depreciation charge in future years. The amount does not constitute a liability to be discharged in future periods and hence, it has been disclosed separately from equity and liabilities.

B. Results from operations

1 Total Income (Note-40 & Note-41)

(Rs. crore)
Sl. No. Particulars Revenue FY 2022-23 FY 2021-22 % Change
1 Energy sales (including electricity duty) 1,57,762.43 1,16,169.60 35.80%
2 Sale of energy through trading 3,753.48 3,549.65 5.74%
3 Consultancy & other services 154.08 168.18 (8.38%)
4 Lease rentals on assets on operating lease 19.58 19.59 (0.05%)
1,61,689.57 1,19,907.02 34.85%
Other operating revenues
5 Interest from beneficiaries 1,609.33 917.69 75.37%
6 Energy internally consumed 92.04 65.17 41.23%
7 Interest income on assets under finance lease 32.53 45.07 (27.82%)
8 Recognized from government grants 94.88 117.10 (18.98%)
9 Provision written back-others 242.98 122.50 98.35%
10 Income from Trading of ESCerts 8.44 - -
2,080.20 1,267.53 64.11%
Revenue from operations 1,63,769.77 1,21,174.55 35.15%
Other income 3,954.64 3,575.11 10.62%
Total income 1,67,724.41 1,24,749.66 34.45%

The income of the Company comprises of income from energy sales, sale of energy through trading, consultancy and other services, operating lease rentals on assets, interest and surcharge received from the beneficiaries, interest earned on investments such as term deposits with banks, interest on Loan to employees & subsidiary companies, interest on other investment in joint venture companies, interest income on non-current trade receivables and dividend from equity investments in subsidiary, joint venture and other companies. The total income for financial year 2022-23 is Rs.1,67,724.41 crore as against Rs.1,24,749.66 crore in the previous year registering an increase of 34.45%. The main reasons for increase in total income are increase in the energy sales, dividend from investments in subsidiary and joint venture companies, increase in interest from beneficiaries, interest income on non-current trade receivabLes and provisions written back-others.

The major revenue comes from energy sales. The tariff for computing energy saLes is determined in terms of CERC Regulations as notified from time to time, which are briefly discussed below:

Tariff for computation of sale of energy

CERC vide notification dated 7 March 2019 notified the Tariff Regulations 2019, effective for the period 201924. Further, CERC vide notifications dated 25 August 2020 and 19 February 2021 notified the CERC (Terms and Conditions of Tariff) First Amendment Regulations 2020 and Second Amendment Regulations, 2021, respectiveLy.

SaLes have been provisionaLLy recognized based on principles enunciated in Tariff Regulations, 2019. CERC has issued provisionaL tariff orders in respect of twenty-four stations for the tariff period 2019-24. As per Regulation 10(4) of Tariff Regulations 2019, pending issue of provisional/final tariff orders in respect of balance stations with effect from 1 April 2019, capacity charges are billed to beneficiaries in accordance with the tariff approved and applicable as on 31 March 2019. In the case of new projects, which got commercialized from 1 April 2019 onwards and projects where tariff approved and applicable as on 31 March 2019 is pending with CERC, biLLing is done based on capacity charges as filed with CERC in tariff petition. Energy and other charges are biLLed as per the operationaL norms specified in Regulations 2019.

Capacity charges

Tariff Regulations 2019 are applicable from 1 April 2019, the capacity charge shall be recovered under two segments of the year, i.e., High Demand Season (period of three months) and Low Demand Season (period of remaining nine months), and within each season in two parts viz., Capacity Charge for Peak Hours of the month and Capacity Charge for Off-Peak Hours of the month.

Energy charges

The energy charges cover the primary and secondary fuel cost and limestone consumption cost (where applicable). Energy charges for coal-based station are to be calculated based on normative heat rate, normative APC, weighted average landed price of primary fuel & secondary fuel and weighted average GCV of coal on as received less 85 Kcal/kg on account of variation during storage & weighted average GCV of secondary fuel respectively as per the Tariff Regulations 2019.

Energy charges for gas-based station have been caLcuLated based on normative heat rate, weighted average Landed price of primary fueL and weighted average GCV of primary fuel.

Other charges

Besides the capacity and energy charges, the other elements of tariff are:

• Special Allowance: For the financial year 2022-23, special allowance has been considered for units which have completed 25 years as on 31 March 2022 in terms of Tariff Regulations 2019.

• Sharing of gains due to variation in norms: As per Regulation 60, financial gains on account of controLLabLe parameters- station heat rate, auxiliary consumption and secondary fuel oil consumption, have been accounted for based on monthLy operating parameters, to be shared with the beneficiaries on annuaL basis, in the ratio of 50:50.

• Sharing of Non-Tariff Income: As per Regulation 62, non-tariff income from rent of land or building, sale of scrap and advertisements has been shared with beneficiaries on annual basis, in the ratio of 50:50.

• Compensation for degradation: Compensation for degradation of heat rate, APC and secondary fueL consumption due to part Load operations and multiple start/stop of units are being accounted as per CERC order dated 5 May 2017 relating to operating procedures and the compensation mechanism in terms of Grid Code.

• Incentive: As per Regulation 49(B)(a), incentive to be accounted for ex-bus schedule energy corresponding to scheduled generation in excess of ex-bus energy corresponding to 85% PLF.

With effect from 1 April 2019, CERC issued directions for implementation of the pilot project on Security Constrained Economic Dispatch (SCED) for interstate generating stations. This mechanism helps in optimization of total schedule of the Inter State Generating Stations based on the variable cost, resulting in savings in cost of procurement for the DISCOMs. CERC has extended the implementation of the SCED pilot until further orders.

Elements of Total income are discussed below:

Energy sales (including electricity duty)

Your Company sells electricity to bulk customers, mainly electricity utilities owned by State Governments as well as private DISCOMs operating in States. Sale of electricity is generally made pursuant to long-term Power Purchase Agreements (PPAs) entered into with the beneficiaries.

Income from energy sales (including electricity duty) for the financial year 2022-23 was Rs.1,57,762.43 crore constituting 94% of the Total income. The income from energy sales (including electricity duty) has increased by 35.80% over the previous years income of Rs.1,16,169.60 crore.

Capacity charges provisionally billed to beneficiaries for the year ended 31 March 2023 is Rs.47,631.73 crore (31 March 2022: Rs.46,278.65 crore). Energy and other charges are billed as per the operational norms specified in the Regulations 2019. The amount billed for the year ended 31 March 2023 is Rs.97,042.05 crore (31 March 2022: Rs.66,047.20 crore).

Capacity charges for the year ended 31 March 2023 have been provisionally recognized considering the provisions of CERC Tariff Regulations amounting to Rs.49,832.28 crore (31 March 2022: Rs.46,036.00 crore). Energy and Other charges for the year ended 31 March 2023 have been recognized at Rs.1,00,306.61 crore (31 March 2022: Rs.66,352.35 crore) as per the operational norms specified in the Regulations 2019.

Capacity charges for the year ended 31 March 2023 include Rs.1,829.50 crore (31 March 2022: Rs.1,286.51 crore) pertaining to earlier years is on account of impact of CERC orders and other adjustments. Energy and other charges for the year ended 31 March 2023 include Rs.3,206.12 crore (31 March 2022: Rs.604.36 crore) pertaining to earlier years on account of revision of energy charges due to grade slippages and other adjustments. Other adjustments include an amount of Rs.3,097.04 crore on account of adjustment of Net movement in regulatory deferral account balances (net of taxes) relating to reimbursement of ash transportation cost.Sales for the year ended 31 March 2023 also include Rs.262.97 crore (31 March 2022: Nil) on account of income tax receivable from the beneficiaries as per Regulations, 2004 and Rs.87.51 crore (31 March 2022: Rs.87.60 crore) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2019. Energy sales include electricity duty amounting to Rs.1,516.71 crore (31 March 2022: Rs.1,352.73 crore).

The average tariff for the financial year 2022-23 is Rs.4.89/kWh as against Rs.4.01/kWh in the previous year. The average tariff includes adjustments pertaining to previous years. If the impact of such adjustments were to be excluded, the average tariff would be Rs.4.73/kWh in the financial year 2022-23 as against Rs.3.95/kWh in the previous year.

Sale of energy through trading

Your Company is purchasing power from the developers and selling it to the DISCOMs on principal-to-principal basis. During the financial year 2022-23, your Company has accounted sales of energy purchased from solar power plants set up under National Solar Mission of Rs.3,753.48 crore (31 March 2022: Rs.3,549.65 crore).

Consultancy and other services

During the financial year 2022-23, Consultancy, project management and supervision fees amounted to Rs.154.08 crore as against Rs.168.18 crore in the previous financial year.

Lease rentals on assets on operating lease

The Power Purchase Agreements (PPA) signed in respect of one of the power stations was operative initially for a period of five years with the beneficiary which may be extended, renewed or replaced as the parties mutually agree. The Company has continued to classify these arrangements with its customers as lease based on the practical expedient provided in Appendix C of Ind AS 116. Accordingly, recovery of capacity charges towards depreciation, interest on loan capital & return on equity (pre-tax) components from the beneficiary are considered as lease rentals on the assets which are on operating lease. Accordingly, lease rentals amounting to Rs.19.58 crore has been recognised in the financial year 2022-23 (31 March 2022: Rs.19.59 crore).

Sale of captive coal

CERC vide notification dated 19 February 2021, notified the Second amendment to Tariff Regulations 2019, which inter alia includes mechanism for determination of transfer price of coal from integrated coal mines to generating stations and are effective for the period 201924. Coal extracted from Companys captive mines and supplied to generating stations have been accounted considering these Regulations.

Interest from beneficiaries

CERC Regulations provides that where after the truing-up, the tariff recovered is less/more than the tariff approved by the Commission, the generating Company shall recover from/pay to the beneficiaries the under/over recovered amount along-with simple interest. Accordingly, the interest recoverable from the beneficiaries amounting to Rs.1,609.33 crore (31 March 2022: Rs.917.69 crore) has been recognised during the year as Interest from beneficiaries.

Energy internally consumed

Energy internally consumed relates to own consumption of power for construction works at station(s), township power consumption, etc. It is valued at variable cost of generation and is shown in Revenue from operations with a debit to corresponding expense head under power charges. The value of energy internally consumed during the financial year 2022-23 was Rs.92.04 crore as compared to Rs.65.17 crore in the previous financial year.

Interest income on assets on finance lease

The Company had ascertained that the PPA entered into for Stage-I of one of the power stations with the beneficiary falls under the definition of finance lease. Accordingly, recovery of capacity charges towards depreciation (including AAD), interest on loan capital & return on equity (pre-tax) components from the beneficiary are being adjusted against FLR. Accordingly, an amount of Rs.32.53 crore has been recognised in the financial year 2022-23 as compared to Rs.45.07 crore in the previous financial year.

Provision written back-others

Provision written back-others represents write back of provision towards water conservation fund at few projects of the Company amounting to Rs.242.98 crore (31 March 2022: Rs.122.50 crore towards water charges at one of the projects of the Company), which is no longer required.

Other income (Note-41)

The break-up of other income is as under:

(Rs. crore)
Particulars FY 2022-23 FY 2021-22
Interest from
Advance to contractors and suppliers 166.02 120.98
Non-current trade receivables 149.88 -
Loan to subsidiary companies 81.45 85.17


Particulars FY 2022-23 FY 2021-22
Loan to employees 61.92 65.00
Deposits with banks 67.76 54.80
Others 95.74 168.97
Dividend from subsidiaries, joint ventures and other investments 2,342.54 1,745.08
Other non-operating income
Surcharge from beneficiaries 429.82 822.81
Provisions written back 124.06 180.85
Sale of scrap 148.67 161.68
Others 343.05 225.44
Total 4,010.91 3,630.78
Less: Transferred to EDC
(net) /development of coal mines 56.27 55.67
Net other income 3,954.64 3,575.11

Other income has increased by Rs.379.53 crore mainly due to increase in dividend income by Rs.597.46 crore and interest from non-current trade receivables by Rs.149.88 crore. However same is offset to some extent by decrease in Late payment surcharge from beneficiaries by Rs.392.99 crore.

2. Expenses (Statement of Profit & Loss and Note- 42, 43, 44, 45 & 46)

2.1 Expenses related to operations


FY 2022-23

FY 2021-22

Commercial generation (MUs) 3,43,959 3,09,075
Expenses Rs. Crore Rs. per kWh Rs. Crore Rs. per kWh
Fuel cost 96,851.50 2.82 66,570.07 2.15
Employee benefits expense 5,559.03 0.16 5,412.07 0.18
Other expenses 14,474.59 0.42 9,717.19 0.31
Total 1,16,885.12 3.40 81,699.33 2.64

Expenses indicated above includes expenses of consultancy and coal mining.

The expenditure incurred on fuel, employee benefits and other expenses for the financial year 2022-23 was Rs.1,16,885.12 crore as against the expenditure of Rs.81,699.33 crore incurred during the previous year. In terms of expenses per unit of power produced, it was

Rs.3.40 per unit in the financial year 2022-23 as against Rs.2.64 per unit in the previous year. A discussion on each of these components is given below:

2.1.1 Fuel

Expenditure on fuel is Rs.96,851.50 crore in the financial year 2022-23 in comparison to Rs.66,570.07 crore in the financial year 2021-22, an increase of 45.49%. The fuel- wise break-up of fuel cost is detailed as under:

(Rs. crore)
Fuel Type FY 2022-23 FY 2021-22 %Change
Coal 92,081.38 63,773.80 44.39%
Gas 3,052.30 1,682.71 81.39%
Naphtha 158.43 63.41 149.85%
Oil 1,495.00 1,015.59 47.21%
Biomass pellets and other chemicals 64.39 34.56 86.31%
Total 96,851.50 66,570.07 45.49%

Includes the cost of captive coal Rs.3,039.06 crore (FY 2021-22: Rs.1,983.14 crore) & adjustment due to Intra company elimination by (-) Rs.3,980.12 crore (FY 2021-22: (-) Rs.2,456.47 crore). Includes adjustment related to earlier years: Coal Rs.55.64 crore (FY 2021-22: Rs.229.01 crore) & Gas Nil (FY 2021-22: Rs.0.01 crore). Includes balance transferred from KBUNL & NPGCL after completion of merger.

The expenditure towards fuel has increased by 36.68% due to price variation mostly on account of more quantity of Imported Coal purchased. There is further increase in fuel cost by 9.07% because of quantity variation as a result of increased commercial generation in coal & gas plants. However, there is a decrease of 0.26% due to decrease in previous year fuel cost.Overall, fuel cost per unit generated increased to Rs.2.82 in the financial year 2022-23 from Rs.2.15 in the financial year 202122. These expenses account for 83% of operational expenditure in the financial year 2022-23.

2.1.2 Employee benefits expense (Note-43)

Employee benefits expense includes salaries & wages, bonus, allowances, benefits, contribution to provident & other funds and welfare expenses.

Employee benefits expense have increased to Rs.5,559.03 crore in the financial year 2022-23 from Rs.5,412.07 crore in the financial year 2021-22.

An amount of Rs.94.18 crore is attributable to new commercial capacity added during the year as well as on commercial capacity added during previous year which was operational for part of the previous year as compared to full year operations during the current year.

In terms of expenses per unit of generation, it is Rs.0.16 in the financial year 2022-23. These expenses account for ~5% of operational expenditure in the financial year 2022-23.

2.1.3 Other expenses (Note-46)

Other expenses primarily consist of the expenses for repair and maintenance of plant & equipment, buildings, water charges, security expenses, CSR expenses, electricity duty, travelling, power charges, insurance, loss on fair valuation of non-current trade receivables at amortised cost, interest to beneficiaries, ash utilisation and marketing expenses, training and recruitment and provisions. Other expenses increased to Rs.14,474.59 crore in the financial year 2022-23 from Rs.9,717.19 crore in the financial year 2021-22.

During the financial year 2022-23, the increase in other expenses is majorly due to increase in impact of Loss on foreign currency transactions and translations by Rs.1,322.83 crore, Ash utilization and marketing expenses by Rs.905.55 crore, Repair and maintenance by Rs.890.73 crore, Loss on fair valuation of non-current trade receivables by Rs.386.84 crore, Provisions by Rs.281.09 crore, Interest to beneficiaries by Rs.236.94 crore, Electricity duty by Rs.150.44 crore, Water charges by Rs.125.41 crore and Stores consumed by Rs.99.09 crore in comparison with previous year.

An increase of Rs.977.95 crore is on account of new commercial capacity added during the year as well as on commercial capacity added during previous year which was operational for part of the previous year as compared to full year operations during the current year.

In terms of expenses per unit of generation, it is Rs.0.42 in the financial year 2022-23 as compared to Rs.0.31 in the previous year. These expenses account for 12% of operational expenditure in the financial year 2022-23.

2.2 Energy purchased for trading

Company has incurred expenditure of Rs.3,656.26 crore in the financial year 2022-23 as compared to Rs.3,450.22 crore in the previous year on purchase of energy for trading from solar power plants set up under National Solar Mission.

2.3 Finance costs (Note-44)

The finance costs for the financial year 2022-23 are Rs.9,979.23 crore in comparison to Rs.8,216.54 crore in the financial year 2021-22. The details of interest and other borrowing costs are tabulated below:

(Rs. crore)
Particulars FY 202223 FY 2021-22
Finance costs on financial liabilities measured at amortized cost
Borrowings-Domestic/ Foreign-Bonds/Loans/ Notes 11,490.32 11,036.80
Cash credit, Commercial papers and unwinding of discount on vendor liabilities/provisions 780.68 456.59
Sub-total 12,271.00 11,493.39
Exchange differences regarded as an adjustment to borrowing costs 457.54 (74.88)
Others 36.64 35.99
Finance costs before EDC 12,765.18 11,454.50
Less: Transferred to
Expenditure during construction period (net) 2,589.03 3,022.36
Development of coal mines 196.92 215.60
Total Finance costs 9,979.23 8,216.54

Finance costs before EDC has increased by 11.44% over previous financial, year due to increase in finance costs on Cash credit and Commercial papers from Rs.337.44 crore in previous year to Rs.653.41 crore in the financial year 2022-23 and increase in the average cost of borrowings from 5.94% to 6.40% on account of higher rate of interest on new/existing borrowings. Exchange differences regarded as an adjustment to borrowing costs have also increased from (-) Rs.74.88 crore to Rs.457.54 crore due to weakening of INR against other currencies (USD & EURO).

2.4 Depreciation, amortisation and impairment expense (Note-45)

The depreciation, amortisation and impairment expense charged to the Statement of Profit and Loss during the financial year 2022-23 was Rs.13,136.71 crore as compared to Rs.12,058.24 crore in the financial year 2021-22, registering an increase of 9%. This is mainly due to increase in the gross PPE by Rs.12,802.05 crore in the financial year 2022-23 over the previous year.

The increase in gross block is largely on account of additional capitalization on account of commercial declaration of new units. The depreciation on new units capitalized during the year is on pro-rata basis. Further, depreciation for units declared commercial during financial year 2021-22 has been charged for the entire financial year 2022-23 as against a pro-rata charge during the financial year 2021-22. The impact on depreciation on this account for the financial year 2022-23 is Rs.964.77 crore.

3. Profit before tax & Regulatory deferral account balances

The profit of the Company before tax & Regulatory deferral account balances is tabulated below:

Particulars FY 2022-23 FY 2021-22
Total Income 1,67,724.41 1,24,749.66
Expenditure related to operations 1,16,885.12 81,699.33
Electricity purchased for trading 3,656.26 3,450.22
Finance costs 9,979.23 8,216.54
Depreciation, amortisation and impairment expense 13,136.71 12,058.24
Profit before tax and regulatory deferral account balances 24,067.09 19,325.33

4. Tax expense (Note-55)

The Company provides for current tax in accordance with provisions of Income Tax Act, 1961 and for deferred tax considering the accounting policy of the Company.

Provision for current tax

A provision of Rs.4,499.91 crore has been made towards current tax for the financial year 2022-23 as against the provision of Rs.3,397.53 crore made for the financial year 2021-22. Current tax provision is mainly higher because of higher profit before tax in the financial year 2022-23 and due to creation of tax provision of Rs.206.35 crore pertaining to earlier years income.

Provision for deferred tax

Net increase in deferred tax liability during the year amounting to Rs.1,779.36 crore (previous year: Rs.1,060.24 crore) has been debited to the Statement of Profit and Loss. Net deferred tax liability is higher because of

Lower MAT credit during the financial year 2022-23.

Details of tax expense

Particulars FY 2022-23 FY 2021-22
Provision for current year 4,293.56 3,398.47
Adjustments for earlier years 206.35 (0.94)
Current tax 4,499.91 3,397.53
Deferred tax Liability 4,532.62 4,618.61
MAT Credit (2,753.26) (3,558.37)
Deferred tax 1,779.36 1,060.24
Total Tax expense 6,279.27 4,457.77

5. Net movement in regulatory deferral account balances (net of tax) (Note-71)

Net movements in regulatory deferral account balances (net of tax) for the financial year 2022-23 is (-) Rs.591.09 crore in comparison to Rs.1,414.43 crore for the financial year 2021-22 as detailed below:

(Rs. crore)
Particulars FY 2022-23 FY 2021-22
Exchange differences 960.93 (730.39)
Pay Revision (0.49) (359.58)
Deferred tax 1,650.50 1,639.68
Ash transportation cost (3,090.42) 1,478.64
Arbitration cases - (110.81)
Sub-total (i) (479.48) 1,917.54
Amount realised/
recognised during the year (ii) (236.75) (218.42)
Net movement in regulatory deferral account balances (i)+(ii)


(716.23) 1,699.12
Tax on net movements in regulatory deferral account balances (II) (125.14) 284.69
Total amount recognised in the statement of profit and loss [I-II] (591.09) 1,414.43

Refer Note-71 of financial statements for detailed disclosures.

6. Profit after tax

The profit of the Company after tax is tabulated below:

Particulars FY 2022-23 FY 2021-22
Profit before tax and regulatory deferral account balances 24,067.09 19,325.33
Less: Tax expense 6,279.27 4,457.77
Add: Net movement in regulatory deferral account balances (net of tax) (591.09) 1,414.43
Profit after tax 17,196.73 16,281.99

7. Other comprehensive income

The other comprehensive income net of tax for the financial year 2022-23 is (-) Rs.75.70 crore in comparison to (-) Rs.87.65 crore for the financial year 2021-22. For the financial year 2022-23, net actuarial loss on defined benefit plans is (-) Rs.96.09 crore, while net gain on fair value of equity instruments is Rs.3.60 crore as against net actuarial loss on defined benefit plan and net gain on fair value of equity instrument amounting to (-) Rs.112.74 crore and Rs.5.40 crore respectively in the previous year.

C. Cash flows

Statement of Cash flows is tabulated below:

(Rs. crore)
Particulars FY 2022-23 FY 2021-22
Opening cash & cash equivalents 117.48 176.69
Net cash from/ (used in) operating activities

Net cash from/ (used in) investing activities





Net cash fLow from/ (used in) financing activities (21,450.16) (19,877.37)
Net increase / (decrease) in cash and cash equivaLents (114.35) (59.21)
Closing cash & cash equivalents 3.13 117.48

Statement of cash flows comprises of cash flows from operating activities, investing activities and financing activities. Net cash generated from operating activities decreased to Rs.35,398.57 crore during the financial year 2022-23 as compared to Rs.37,898.21 crore in the previous year.

Cash outflows on investing activities arise from expenditure on setting up power projects, acquisition of power plants, investments in joint ventures & subsidiaries and tax outflow on income from investing activities. Cash inflows arise from interest from banks, sale of investment in subsidiaries, sale of assets to subsidiary, and dividend income from joint ventures and subsidiaries. Cash invested on purchase of fixed assets (property, plant and equipment & intangible assets) decreased from Rs.19,267.79 crore in financial year 2021-22 to Rs.17,320.53 crore in financial year 2022-23. Cash inflow on account of dividend received has increased from Rs.1,745.08 crore in previous year to Rs.1,992.54 crore in the financial year 2022-23. Cash inflow on account of sale of assets to subsidiary of Rs.12,010.55 crore and sale of investment in subsidiaries of Rs.1,094.46 crore is received during the year, pursuant to BTA. Considering all the investing activities, the net cash used in investing activities was Rs.14,062.76 crore in the financial year 2022-23 as compared to Rs.18,080.05 crore in the previous year.

During the financial year 2022-23, the Company had an inflow of Rs.16,257.48 crore from non-current borrowings as against Rs.19,911.50 in the previous year and inflow of Rs.4,403.56 crore from current borrowings as against outflow of Rs.6,189.43 crore in the previous year. Cash used for repayment of non-current borrowings during the financial year 2022-23 was Rs.22,371.86 crore as against Rs.15,680.33 crore in the previous year. Interest paid during the year was Rs.12,557.58 crore as compared to Rs.10,950.39 crore during the previous year. Cash used for paying dividend was Rs.7,030.08 crore during the financial year 2022-23 as compared to Rs.6,933.12 crore in the previous year. Thus, from financing activities during the year, the Company has an outflow of Rs.21,450.16 crore as against an outflow of Rs.19,877.37 crore in the previous year.


The Company has 10 subsidiary companies as on 31 March 2023, out of which 5 (NESCL, NVVN, NML, NEEPCO & NGEL) are wholly owned by the Company.

A summary of the financial performance of the subsidiary companies during the financial year 2022-23 is given below:

(Rs. crore)
Sl. No. Company NTPCs investment in equity Total Income Profit/ (Loss)for the year
1 NTPC Electric Supply Company Ltd. 0.08 2.09 0.25
2 Bhartiya Rail Bijlee Company Ltd. 1,774.12 3,433.84 248.14
3 NTPC Vidyut Vyapar Nigam Ltd. 30.00 4,628.84 175.89
4 Patratu Vidyut Utpadan Nigam Ltd. 1,637.62 0.16 (0.51)
5 NTPC Mining Limited North-Eastern Electric 0.05 - (0.01)
6 Power Corporation Ltd. 4,000.00 4,570.63 396.89
7 THDC India Ltd. 7,500.00 2,014.52 672.84
8 NTPC Green Energy Limited 4,719.61 170.64 173.37
9 NTPC EDMC Waste Solution Pvt. Ltd. 0.15 - (0.56)
10 Ratnagiri Gas & Power Pvt. Ltd. - 541.31 (199.94)
Total 19,661.63 15,362.03 1,466.36


Proportion of ownership and financial performance of the joint venture companies for the financial year 202223 are given below:

SNlo.. Company

NTPCs Ownership i (%)

NTPCs nvestment in equity

Total Income

Profit/ (Loss) for the year
A. Joint venture companies incorporated in India
1 Utility Powertech Ltd.




2 NTPC-GE Power Services Pvt. Ltd.




3 NTPC-SAIL Power Co. Ltd.




4 NTPC Tamil Nadu Energy Co. Ltd.




5 Aravali Power Co. Pvt. Ltd.




6 Meja Urja Nigam Pvt. Ltd.




7 NTPC-BHEL Power Project Pvt. Ltd.




National High
8 Power Test Laboratory Pvt. Ltd. 20.00




9 and Electricals Kerala Ltd. 44.60




10 Efficiency Services Ltd. 33.33




11 CIL NTPC Urja Pvt. Ltd. 50.00




12 Vidyut Nigam Ltd. 49.00




13 Urvarak and Rasayan Ltd. 29.67




14 Jhabua Power Limited* 50.00




B. Joint venture companies incorporated outside India Trincomalee
15 Power Company Ltd., Sri Lanka 50.00




Bangladesh- India Friendship
16 Power Company Private Ltd., Bangladesh 50.00








* Total Income and Profit for the year of Jhabua Power Limited are considered for the post aquisition period i.e., from 5 September 2022 to 31 March 2023.

Consolidated financial results

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

(Rs. crore)
Particulars FY 2022-23 FY 2021-22
Total income 1,77,977.17 1,34,994.31
Profit before tax and
regulatory deferral account balances 24,330.59 20,520.91
Tax Expense 6,796.12 5,047.10
Profit before regulatory deferral account balances 17,534.47 15,473.81
Net movement in regulatory deferral account balances (net of tax) (413.12) 1,486.48
Profit for the year 17,121.35 16,960.29
Other comprehensive income (net of tax) (203.00) (87.25)
Total comprehensive income for the year 16,918.35 16,873.04


Statements in the Management Discussion and Analysis and in the Directors Report, describing the Companys objectives, projections and estimates, contain words or phrases such as "will", "aim", "believe", "expect", "intend", "estimate", "plan", "objective", "contemplate", "project" and similar expressions or variations of such expressions, are "forward-looking" and progressive within the meaning of applicable laws and Regulations. Actual results may vary materially from those expressed or implied by the forward-looking statements due to risks or uncertainties associated therewith depending upon economic conditions, government policies and other incidental factors. Readers are cautioned not to place undue reliance on these forward-looking statements.

For and on behalf of the Board of Directors
(Gurdeep Singh)
Chairman & Managing Director
Place: New Delhi
Date: 29th July, 2023