NTPC Ltd Management Discussions

<dhhead>Management Discussion and Analysis Report</dhhead>

ECONOMIC AND SECTOR OUTLOOK

The global economic landscape remains fraught with uncertainty amid persistent geopolitical tensions, including (IIP), ongoing wars and the emergence of new flashpoints across various regions. These disruptions, coupled with tightening ant milestones, global macroeconomic outlook. Despite this challenging environment, the Indian Economy has demonstrated strong resilience and robust performance. Growth momentum has continued, signs of moderation. India remained the fastest-growing large economy, with an estimated GDP growth of 6.5% for FY25, moderating from 9.2% in FY24, still outpacing Monetary Fund global peers. While the International (IMF) has downgraded growth projections for most major economies due to rising risks, it expects India to grow at 6.2% in 2025, highest among all large economies. Growth is projected to remain strong at 6.5% in 2026, reinforcing India’s position as a global economic bright spot.

In terms of electricity market, global electricity demand grew by 4.3% in 2024 as per International Energy Agency (IEA), a sharp acceleration over the 2.5% in 2023. Average electricity demand growth from 2010 to 2023 at 2.7% was double the rate of total energy demand growth over the same period, implying electrification across sectors. More than half of global electricity demand growth in 2024 came from China while India, Southeast Asia, and other emerging markets also contributed significantly. Fossil fuels contributed 59% of worldwide electricity generation in 2024, with coal accountingfor 35% of total power generation, Renewables electricity generation, led by hydropower (14%), wind (8%), solar (7%) and bioenergy & waste (3%). Nuclear power contributed 9% of global electricity generation. However, the global power mix is evolving, clean energy generation contributed over 80% of global electricity generation growth. Solar led the way followed by Wind, Hydropower and Nuclear power. Generation from fossil fuels increased by just over 1% in 2024.

Going forward, demand is expected to grow at close to 4% globally, over the next three years, emerging economies are expected to contribute 85% of this growth due to strong economic growth and rising standard of living in these countries. For India, power sector remains one of the key enablers of India’s economic growth. Electricity contributes around consumption of India. Keeping 16%inthetotalfinal

Mode	Total Capacity (MW)	% Share
Thermal	246936	52%
Nuclear	8180	2%
Hydro	47728	10%
RES (Renewables)	172368	36%
Total	475212	100%

pace with the economic growth, power sector also reflected dynamic performance and continues to propel the growth engines of the economy. According to the electricity sector IndexofIndustrial Production recorded a growth of 5.1% outpacing manufacturing sector (3.9%) and mining sector (2.9%). This growth comes added alongside 33242 MW of capacity to its grid (28% growth y-o-y), peak power demand reached 250070 MW (2.9% growth y-o-y), while peak demand met reached 249159 MW. Gross electricitygenerationsurpassed 1824 BUs, marking while inflation a 4.7% y-o-y increase, marginally outperforming the global growth. Peak power shortages dropped to almost zero, an impressive improvement from the previous year. As far as sectoral consumption of electricity is concerned, industrial consumption registered the strongest growth at 8.6% followed by commercial (6.6%), domestic (6. and agricultural (4.6%) consumption. Traction demand, though much less than rest of the sectors is also increasing rapidly due to accelerated electrification. Going forward, India’s electricity demand is forecasted to grow at an average of 6.7% annually over the next three years, stronger than the average growth rate of 5% witnessed in the last ten years (2015-2024).

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 and 4th in terms of total renewable capacity installed after China, US, and Brazil. Our world ranking in Solar, Wind, and Hydro installed capacity is 3rd, 4th and 6th respectively as reported by InternationalRenewable Energy Agency (IRENA).

Major highlights and developments in the Power sector followed by natural gas at 20%. during FY25 are discussed in the following paragraphs. accounted for one-third of

SNAPSHOT 2024-25

Capacity

The total installed capacity in the country crossed 475 GW with thermal still capacity. Source-wise installed capacity in the country as of 31 March 2025 is as under:

With addition of 28723 MW, the renewable energy capacity addition contributed more capacity addition of 33242 MW. With this, RE installed capacity has crossed 172 GW at the end of FY25. As on 15 July 2025, India achieved a landmark in its energy transition journey by reaching electricity capacity from non-fossil fuel sources (242.4 GW out of 484.8 GW total installed capacity) - five years ahead of the target set under its Nationally Agreement.Contributions

Generation

Gross generation of the country (excluding imports from Bhutan) increased from 1734 BUs in the previous year to 1824 BUs, registering a growth of around 5%. Generation from Renewable sources increased by around 13% (from 226 BUs to 255 BUs), much higher than generation from conventional sources (Thermal, Nuclear and Large Hydro) which increased by about 4% from 1508 BUs to 1568 BUs.

Sector- Conventional Generation	Thermal	Hydro	Nuclear	Total
(BU)
Central	486	59	57	602
State	409	74	--	483
Private	468	15	--	483
Total	1363	148	57	1568

Transmission

With an addition of 8830 Ckms of transmission lines, total installed transmission capacity reached 94374 Ckms as on 31 March 2025. Transformation capacity of 86433 MVA was added during the year FY25 as against 70728 MVA in FY24. The total inter-regional transmission capacity of the Key indicators of performance country has increased to 118740 MW at the end of FY25. This augmentation of the national supporting the higher injection of renewable energy into the grid for the transfer of power from RE-rich states to other states. contributingmorethanhalfofthe Further, to meet the power evacuation requirementof developments over 500 GW RE Capacity planned by 2030, connectivity of RE generators to the load centers through Inter-State Transmission System (ISTS) is essential. It is estimated that additional 50890 Ckms of transmission lines and 433575 MVA sub-station capacity will be required under ISTS for integration of additional wind and solar capacity

Electricity Consumption

The per capita power consumption in India registered a growth of 4.8% to reach 1395 units in FY24, still well below the global average, providing enough room for growth. The total electricity requirement increased from 1622 BUs 86%of thetotal in FY24 to 1702 BUs in FY25 growing by 5%. Major end-users of power are broadly classified into 6 categories: Agricultural, Commercial, Domestic, 50%ofitsinstalled Industrial, Traction, consumption, during FY24, were approximately 17%, 8%, 24%, 42%, 2% and 7%, respectively. Although absolute Determined 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 declined slightly.

Distribution

Distribution is the critical link in realizing the Government of India’s vision of ensuring reliable 24x7 power for all. Accordingly, improving the performance of the power distribution sector has remained a top priority. To strengthen the financial viability of distribution (DISCOMs), the government has introduced various schemes and reform measures. Revamped Distribution Sector Scheme (RDSS, 2021) is one of the key initiatives by the Ministry of Power in the distribution sector. Aimed at revitalizing DISCOMs through the nationwide deployment of prepaid smart meters and other performance-enhancement measures, it is expected to improve the financial health of distribution companies. The RDSS consists of two components:

• Part A: Financial support for prepaid smart metering, system metering, and upgradation of distribution infrastructure.

• Part B: Training, capacity building, and other enabling and support activities.

The impact of RDSS is evident in the findings of the 13th Integrated Rating & Ranking of Power Distribution Utilities improvement include: grid is essential for

• Reduction in the cash-which decreased from 0.59/kWh in FY23 to 0.39/kWh in FY24.

• observedPositive as most of the utilities are now publishing their annual accounts on time. States are for subsidies and dues of government departments.

• The publication of tariff and true-up orders has been by 2030. largely streamlined. Most notably, no new regulatory assets are being created by distribution companies.

Power Trading

In India, power is transacted largely through long term Power Purchase Agreements (PPAs) entered between

Generating companies and the Distribution utilities. small portion mechanisms wherein contract is of less than one year period like electricity transacted through inter-State Trading Licensees, directly by the Distribution Licensees, Power Exchanges, Over the Counter platform Deviation Settlement Mechanism (DSM). In FY25, about 13% of the power generated, was transacted through short-term trading mechanisms, registering growth of about 9% y-o-y. In this, power exchanges made up 60% of the market, followed by bilateral transactionsat 26% and DSM transactions Indian power sector experienced significant transformations across renewable energy adoption, grid modernization, policy reforms, and decarbonization initiatives. Let us look at some of the key sectoral developments in detail.

RE Growth

India continuesto strengthen its leadership in the global energy growth in RE capacity. Demonstrating its strong commitment to achieving 500 GW of non-fossil fuel-based energy capacity Battery storage by 2030, India added nearly 29 GW of renewable energy capacity, a remarkable 60% y-o-y increase compared to 18 GW in FY24. The share of renewables in the total installed capacity jumped to 46% (large hydro included) India’s commitment to sustainable growth and energy diversification. Renewable energy generation, including large hydro, reached 403 BUs and contributing about 22% to the total Driven by technological advancements and government policies, India’s renewable energy sector is poised for exponential expansion as more than 145 GW of RE capacity is under implementation.

With the Solar PLI scheme beginning to show results, India nearly tripled its solar cells manufacturing capacity between March 2024 and March 2025. While module manufacturing capacity also nearly doubled from 38 GW to 74 GW. Further upstream, the country commissioned its first ingot and wafer manufacturing capacity during that period. In coming years, India is poised to become one of the global leaders in solar manufacturing.

Nuclear

While renewable energy sources like solar and wind have witnessed significant growth, their intermittent nature substantial land requirements limit their ability to meet India’s energy demand round-the-clock independently. In contrast, nuclear energy presents a robust reliable, high-quality base load power with minimal carbon emissions. The government has set an

A ambitious of achieving 100 GW of nuclear power istransactedthroughvariousshort-term capacity by 2047, firmly critical tives are this vision, the government has announced a series of initiatives in the Union Budget 2025-26. This includes strategic policy measures and infrastructure investments, with a strong emphasis on the development of indigenous nuclear technology and fostering public-private signific allocation of partnerships.A 20,000 crore has been earmarked for research and development in Small Modular Reactors (SMRs), with plans to commission at least five domestically designed SMRs by 2033. Legislative 14%. amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act are also proposed to facilitate greater private sector involvement.

Energy Storage

Storage is going to be critical for the integration of the Variable RE power, the year saw a lot of efforts being put for the storage infrastructure in the country. As on 31 March 2025, around 4.9 GWh of Pump storage capacity is operational while about 8.9 GWh is under construction. projects are also at advanced Multiple stages of commissioning. As per CEA, about 42.3 GWh of pump storage capacity is in pipeline and expected to be commissioned by FY32. However, further efforts may reflecting be required as the National Electricity Plan (NEP-2022) has projected the energy storage capacity requirement of more than 35 GWh by FY27, which will further rise to 236 GWh by FY32. Considering the net zero emissions - -ygrowth, generation. targets set for 2070, the requirement of energy storage is expected to increase to 2380 GWh by 2047, to balance the large addition of renewable capacity in the grid. Among all the Remarkable progress, the power sector remains focused on its core objective: ensuring universal access to affordable and reliable electricity. Key challenges of fuel security and financial health of distribution companies (DISCOMs) still persist. The increasing penetration of Variable Renewable Energy (VRE) poses new challenge for grid management. Effectively addressing these will be key to sustaining India’s development momentum. Various initiatives and reforms have been undertaken by the central government to address these challanges, some of these have been discussed in the next section.

KEY INITIATIVES/REFORMS & REGULATORY CHANGES IN THE POWER SECTOR

alternative, The Government of India is taking proactive and strategic measures to address emerging challenges in the energy sector. A renewed emphasis has been placed on expanding nuclear energy capacity, alongside advancing comprehensive policies for the deployment of renewables.establishingnuclearenergyasa initiaunderway to strengthen the componentof national Simultaneously, energy mix. To realize country’s energy storage and transmission infrastructure to support greater renewable integration. Some of the key sectoral reforms and initiatives are given below.

SECTORAL REFORMS egulations, 2024-29 First Amendment R 1. CERCTariff

The CERC on 4 February 2025 notifiedFirst Amendment for CERC (Terms and Conditions) Tariff Regulations, 2024. The salient features of amendment are: a. Thermal plants (Coal & Gas) related

• For coal stations, degradation factor provided range up to 40% loading (earlier it foroperating was 55%).

• Part load degradation factor (Heat Rate & APC) for both coal & gas stations enhanced.

• Part load degradation factor (Heat Rate) for Gas ating in Open Cycle introduced. oper Stations

• Part load compensationprovided on normative basis (earlier on normative or actual, whichever was lower) with gains to be shared with beneficiaries on 1:1 basis.

• Increase in start-up oil consumption for coal units. Additional specific consumptionof oil 0.2 ml/kWh provided for coal units operating below 55% loading. Additional 10% start-up oil al/Ultra super critical provided to Super coal units for a period of 3 years from COD. b. Integrated Mine related a • Formula for calculating "Factor of Adjustment" in the Tariff Agreement thereby minimizing the difference between Over Burden Adjustment as per the MDO Agreement and theTariffRegulations2024. atio

• Interim input price up to 90% of the claimed input price may be allowed by CERC upon request by the captive mining/Generating Company in its Petition.

2. Indian Electricity Grid Code Regulations (IEGC) 2023 First Amendment

CERC notified by NLDC in consultation with firstamendmenttoIEGC2023 October 2024 implemented w.e.f. 29 October 2024. The salient provisions of the amendment are:

• If a regional entity generating station tariff is determined under Section-62 of the Electricity Act receives a schedule below the Minimum Turndown Level (MTL) during Off-Peak hours but remains above the MTL for at least 8 blocks during Peak hours, the schedule for the Off-Peak hours may be adjusted under the SCED mechanism to ensure that it meets at least the MTL in all time blocks of the day, generating station’s request to NLDC.

• Downward revision of schedules (for D Day) after 1430 hours of D-1 day shall be permissible limited to a quantum such that overall scheduleof of the generating station is at least at Minimum turndown level.

• Schedule revision allowed for partial outage generatingstations (excluding lignite, gas-based, thermal, and hydro) or ESS, a maximum of 4 revisions per day and 60 revisions per month. For lignite, gas, or hydro stations, a maximum of 6 revisions per day and 120 revisions per month.

• On declaration of commercial operation date, scheduling of the generating station or unit thereof, shall start from 0000 hours of D+2 (where D is the date when a generating the commercial operation of station the generating station or unit thereof or the commercial operation date declared by the generating station or unit thereof, whichever is later).

• Successful trial run of a wind turbine(s) shall mean the flow of power and communication signal for a period of not less than 4 hours on a cumulative basis in a single day during periods of wind availability.

• Injection 45 days from the date of First-timecharging clearance approval for Renewable energy generating stations (except Hydro PSP ESS). Extension allowed up to Regulations 2024 aligned with MDO 3 months by the respective RLDC, and beyond 3 months by the Commission.

3. CERCorderonTwoshift n

CERC in its order dated 29 March 2025 issued regulatory provisions related to two shiftoperation for mitigating the risk on the power system. The salient features of the order are:

• As a pilot basis, 500 MW rail fed Units of a regional thermal generating stationswhose tariff is entity determined by CERC under Section-62of the Act identified 23 shallbe the owner(s) of such thermal units and CEA for operation in two-shift

• An units operating under two shifts for the down reservecreated(belowMTL)forthehours it is through bundling with Renewable kept off-bar during the day.

• A feedback report covering all the aspects including financial plant damage, useful life of the plant due to Two shift operations shall be submitted within month of completion of the six months of pilot The owner of plant is required to operation. maintain a record of extra expenditure incurred on account of two shifts wear and tear of units.

4. CERC (Deviation Related Matters) Regulations,2024 (effective from 16 September 2024) & its First Amendment

The salient provisions of the Regulations are:

• DSM charges for thermal generators for under-injections have been linked to Energy Charge Rate (ECR) against earlier DSM charges linked with Maximum of Day ahead/Realtime market clearing price.

• In case of partialoutage, the charges for ation deviationshall be the reference charge rate (ECR for Section-62 thermal stations)for a maximum of eight-timeduration blocks or until the revision of its schedule, whichever is earlier. This relaxation in DSM was available only in case of forced outage in earlier DSM Regulations 2022.

• The maximum achievable gain for supporting the Grid by way of over-injection/under-injectionhas been reduced to 15% of ECR from the existing 50% of ECR.

• No DSM gain for supporting the grid by over-injection or under-injection beyond 10% or 100 MW (whichever is less).

Subsequently CERC has issued CERC (Deviation Settlement Mechanism and Related Matters) First Amendment Regulations,2024 (effective from 23 December 2024). The salient provisions of amendment are as follows:

• The charges for injection of infirm power shall be zero. However, if infirm a successful trial run the charges for deviation over the scheduled infirm power shall be as applicable for a general seller or Wind Solar (WS) seller, as the case may be.

• Further if frequency>50.05Hz, the charges for deviation of scheduled infirm power by way of over injectionby a general seller or WS seller (as the case may be), shall be zero.

5. Ministry of Power (MOP) Scheme for Flexibility in Generation and scheduling of Power stations Energy and Storage Power

In April 2022, MOP issued Revised scheme for impact, plant viability and flexibility in Generation a Hydro power stations Renewable Energy and Storage power. The scheme allowed generating stationsto establish or procure renewable energy from a Renewable generating station either co-located withinoperation, including new locations and supply such against their existing commitments/PPA i.e., Settlement Mechanismreplacement of thermal/hydro power to procurers and anywhere in India.

However, in view of difficulties being faced by different stakeholders in implementation of above-mentioned January 2025 has decided that the implementation of the scheme shall be on voluntary basis and entities Utilities

6. notifi procurement of storage MOP capacity/stored energy from pumped storage plants (PSP)

The Ministry of Power issued a notification February 2025 outlining tariff bidding guidelines for procuring storage capacity and stored energy from Pumped Storage Projects (PSPs). This initiative aims to promote PSP through a transparent and competitive aligning with the need for significant energy storage capacity. The guidelines provide two modes of procurement: Mode-1: Procurement from a PSP developed on a site identifiedby the Procurer. Mode-2: Procurement from a PSP developed on a site identified by the Bidder or an already commissioned PSP or under development PSP.

7. Right of Way (ROW) compensation Guidelines powerisscheduledafter To ensure timely infrastructure for evacuating envisaged 500 GW of renewable energy by 2030, the Ministry of Power revised the ROW guidelines in June 2024, linking compensation to the base area, the compensation has been increased from 85% to 200% of the land value. For the ROW

Corridor, compensation has been raised from 15% to 30% of the land value.

8. Open Access Reforms Thermal/Hydro

Amendments to the Electricity Rules, 2005, have rationalized open access consumers to procure electricity from the most cost-effective sources scheduling of Thermal/ competition and through bundling with

FUEL RELATED REFORMS

1. Directions regarding import of coal premises or at Based on consistent rising trend in the Power energy demand in the country to ensure uninterrupted power supply across the country, MOP on 25 October 2023 gave directions including Independent Power Producers (IPPs) for timely Import of Coal for blending of imported coal @ 6% (by weight) minimum till March 2024. Later scheme, MOP vide letterthis advisory was extended till June 2024. Further, dated 21 MOP vide order dated 27 June 2024 have extended the advisory dated 4 March 2024 by modifying concernedviz.GeneratorsandtheState the blending requirement to 4% (by weight) till take action 15 October 2024.

2. Notification for Agro-residue Rules, 2023

The Ministry of Power (MOP) has issued revised biomass policy on 16 June 2023, which mandates on6 -based competitive that all thermal power stations must co-fire 5% biomass pellets from Financial Year 2024-25 and 7% from Financial Year 2025-26. These guidelines also have a provision of benchmark price notification by process, MOP. Accordingly, MOP announced benchmark price for NCR, WR & NR region in August & November 2023 respectively.

RENEWABLE ENERGY RELATED REFORMS

1. Guidelines for funding of testing facilities, support under the institutional infrastructure,and National Green Hydrogen Mission (Notified 2024 by MNRE) The scheme encompasses the development of robust quality and performance testing facilities to development of power transmission quality, sustainability, and safety in GH2 and trade. National Institute will be theSchemeImplementationagency. value of land. For tower Further, on 8 November 2024, MNRE issued scheme Guidelines for implementation of Pilot projects for production and use of Green Hydrogen using innovative methods/pathways in the Residential,

Commercial, Localized Community, Decentralized/ Non-Conventional, new sector or technology not covered in previous charges, allowing large Mission schemes.

2. MNRE sets Minimumpromoting

Modules, Inverters, and Batteries in the power market. The Ministry of New and Renewable Energy (MNRE) has released "Solar Systems, devices and Components Goods Order, 2025," on 28 January 2025, mandating minimum efficiency benchmarks for solar modules, inverters, and batteries used in government-funded projects. These standards are part of an effort to enhance the quality and performance of renewable energy components and to all GENCOs to ensure better returns on public investment.

3. Scheme Guidelines for implementationof "VGF

Scheme for Offshore Wind Energy Projects"

(Notified on 11 September 2024 by MNRE)

With an objective to commission 1000 MW of offshore wind energy projects off the coast of Gujarat . and Tamil Nadu, MNRE notified the VGF scheme. The scheme with an outlay of by TPP 7,453 crore, would be implemented by SECI based upon the public-private partnership model. Along with this, MNRE also issued the "Guidelines for Competitive Bidding Process for Award of Offshore Wind Power Projects under Viability Gap Funding (VGF) Scheme", to provide a transparent, fair, standardized procurement framework based on open competitive bidding.

4. Advisory on co-locating Energy Storage Systems with Solar Power Projects

The CEA has mandated storage to enhance grid stability and cost efficiency. The key recommendations

• All Renewable Energy Implementing Agencies (REIAs) and State utilities to minimum of 2-hour co-located Energy Storage on 4 July Systems (ESS), equivalent to 10% of the installed solar project capacity, in future solar tenders. This measure aims to mitigate issues and provide critical support during peak demand periods. of Solar Energy (NISE)

• Distribution licensees may also consider mandating solar plants. This will improve supply reliability for consumers while reducing the burden on distribution networks caused by over-injection during peak solar hours.

AMENDMENT TO THE GUIDELINES FOR IMPORT/EXPORT (CROSS BORDER) OF ELECTRICITY, 2018

The Ministry of Power issued the amendments with following key features:

• The amendments empower the central government to permit additional fuel sources for export of coal and gas-based electricity, such as, imported coal or gas, spot e-auction coal, coal from commercial mining, or other sources specified by the Government of India.

• The Government of India may now permit connection of generating stations to the Indian Grid (Inter-State or Intra-State) to enable power sale within India, even in cases of non-scheduling or payment delays under PPAs.

CARBON TRADING

To achieve its net-zero targets, the government has formulated a well-structured strategy for the production and utilization of green chemicals particularly green hydrogen, methanol, and sustainable aviationfuels. In positioning itself as a major force in addition, draft regulations for the introduction markets have been released in the current fiscal year, including sector-specific emission thresholds. y, • BureauofEnergy in July 2024 has released a Detailed Procedure for Compliance Mechanism under Carbon Credit Trading (CCT) document on voluntary offset methodologies under the Indian CCT for 12 sub-sectors in 6 sectors to be adopted. The sectors include:

3 Grid-connected electricity generation from renewable sources and Hydrogen production from electrolysis of water.

3 Industry Energy efficiency measures for industrial facilities and Hydrogen production using methane extracted from biogas.

3 Waste Handling and Disposal Landfill methane recovery Projects, Flaring or use of landfill gas Agriculture Production of biofuel, Methane recovery from livestock and manure management at households and small farms.

3 Afforestation and reforestation wetlands and degraded mangrove habitats.

3 Modal shift in transportation transportation

Emission reductions lectric and hybrid vehicles.

• Terms and Conditionsfor Purchase and Sale of Carbon Credit Certificates (CCC) Regulations, 2024

CERC issued the draft with an objective to a framework for the exchange of Carbon Credit Certificates for the Obligated and the entities on Power Exchanges, thus enabling the development of carbon market. These regulations shall be applicable to the CCCs offered for transactions on Power Exchange(s), including contracts in CCCs as approved by the Commission in accordance with the provisions of the Power Market Regulations.

OPPORTUNITIES AND THREATS/ CHALLENGES

OPPORTUNITIES

The world is entering a transformative era known as the Intelligent Age, marked by the swift integration artificial groundbreakingtechnologiessuchas intelligence, quantum computing, and are fundamentally altering how we live, work, and interact. this landscape Indiais of rapid technological change, establishing itself as a of carbon global center for digital innovation and entrepreneurial growth. This, however, will require huge amount of power, propelling the power demand to grow multifold. Power demand will also be fueled by the continuous push for manufacturing through various PLI initiatives and rapid Scheme growth in the power-intensive manufacturing of solar PV modules, batteries, and electric vehicles (EV). Adding to this, continuous electrification stable output in other conventional sectors will accelerate demand growth. Growing EV charging, the ascent of data centers and 5G networks are also important factors that will further contribute to electricity demand. and fuel switching Another factor contributingto the demand growth is the rising Air Conditioning load. As per IEA the contribution of cooling to total peak load in India is estimated at 60 GW in 2024. Further data shows that each incremental degree in daily average temperature, daily peak demand in India increased by more than 7 GW in 2024. It is further expected to grow to 11 GW per degree by 2027. To meet this growing demand and parallelly addressing the climate concerns, India has set an ambitious of lands except 500 GW of non-fossil energy by 2030, which includes 292 GW of solar power and 100 GW of wind power projects. Further government is also planning to add about 80 GW ofcargofromroad of fossil-based capacity by 2032 and further 20 GW by towaterorrailtransportationand 2037, to balance the variable RE power influx and stablize by the grid. This requires an annual addition 50 GW of RE capacity. Along with this thermal capacity and energy storage solutions Storage, also need addition at competing pace, providing a huge opportunity for capacity expansion to Your Company. Non-Obligated In alignment with this, Your Company has set a target to increase its installed RE Capacity to 60 GW by 2032. Further about 17 GW of thermal capacity is under construction.

Your Company is also developing both battery storage and pump storage facilities and has reached understanding with several states for building these facilities. Further, as the emission norms get stricter with increasing global scrutiny, the demand for the Green Chemicals particularly from the hard to abate sectors will also rise rapidly, opening opportunity in this space. Though short-term power purchase accounts for about one-sixth of the total power sales, volumes have seen of significant growth year. Further as large bulk customers are looking for green these innovations power the Commercial and Industrial (C&I) bulk sales opportunities are also increasing. Hence power trading also expected to grow at a brisk pace both domestically and across the borders and Your Company has a presence in this space.

BEE has also notified Credit Certificates, Your Company is geared up to fully utilize the opportunity. These opportunities combined with supportive policy framework in renewable energy, green chemical and across sectors fuels, and Power trading, are driving to new business amid ally and internationally, as domestic development both detailed below.

1. Renewable Energy a. Solar Technologies

Solar PV modules technology has shifted from poly crystalline to mono crystalline modules having higher efficiency and wattage and now with advent of Topcon modules with even higher efficiency, it is possible to generate more power in same footprint area enabling further growth of solar parks and utility scale projects. facial modules and solar tracker, has reduced the target to installinherent variations in solar power generation which has been the biggest drawback for solar power. Due to recent innovations, the inverter capacity per block antly, reaching up to 9.6 MW signific hasincreased enabling, higher conversion ratios and reducing capital expenditure. of about40to With a solar energy potential of 748 GW and a module manufacturing base of about 74 GW/ annum, BatteryandPumpedHydro solar power deployment provides vast potential growth and greening of the power sector. b. Wind

With a wind power potential of 1200 GW, India currently has the fourth highest wind installed capacity in the world and a manufacturing base of about 18000 MW per annum. India’s wind energy sector, led by indigenous wind power manufacturing, has shown consistent progress. As we crossed 50 GW installation mark, the ecosystem built around the wind manufacturing industry, project operation capabilities government of have started showing results. Declaration trajectory for Wind Renewable Purchase Obligation (Wind RPO) and initiatives for offshore wind farm developments are expected to provide further from 218 BUs to 238 BUs) in the last impetus to this momentum providing growth opportunities for NTPC. c. Energy Storage significant The huge solar and wind potential can be harnessed in the optimal manner only through the development of Energy storage solution as the guidelines for trading of Carbon stability against the variable RE power. As per as the carbon market develops in India, projection in National of 35 GWh will be required by FY27 and 236 GWh by FY32. Advancement in BESS technology (Li-ion, Na-ion, Ni-Cd, Flow batteries etc.) and introduction of other potential storage methods like Hydrogen catapult the RE andThermalstorage can potentially sector for further growth. The global energy storage market has seen growth in 2023, nearly tripling to 45GW/97GWh. As RE-RTC demand is rising, India is expected to add 9 GW of energy storage by 2030. d. Hydrogen technologies:

With advancements in Green Hydrogen production and Electrolyzer (PEM, AEM, alkaline, and Solid Oxide) technology, Hydrogen from biomass etc. value to cost of production is improving, further increasing thrust in Green increasinguseofBi- Hydrogen/Green Chemicals an increased demand of renewable power. However supportive policies for off-take assurance will accelerate the sectoral developments further. e. C&I customers for Renewable Energy

Using renewable energy sources can help commercial and industrial (C&I) consumers lower their reliance on traditional in electricity trade among fossil fuels, reduce electricity price volatility and enhance their sustainability credentials. C&I consumers are procuring power through open access projects and entering into power purchase agreements (PPAs) with renewable energy providers for long-term cost savings and reducing carbon footprints. This provides growth opportunities for NTPC in the C&I business, creating a mutually beneficial ecosystem for both the consumers and Your Company.

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

YourCompanyunderstandsthe and has opportunities in Carbon Capture and Utilization including expanding customer base, (CCU), Green Chemicals, and Green Fuels due to its growing industrial base, strong policy push for decarbonization, and commitment to achieving net-zero emissions by 2070. The government’s support through Mission, Production Linked Incentives (PLI), and tax incentives for clean energy startups has created a favourable ecosystem for green technologies. The expansion of hard-to-abate sectorssuchascement, steel, and refineriesoffer scalable demand for CCU solutions. Simultaneously, rising awareness and climate commitments are boosting demand for green alternatives in chemicals and fuels across sectors including agriculture, mobility, and manufacturing. As global supply chains pivot toward sustainability, NTPC is poised to gain from as India becomes a hub for green innovation and export-oriented production.

3. Nuclear Power

With the government launching the Nuclear Energy Mission to achieve 100 GW of nuclear capacity by 2047, emphasizing the development of indigenously designed Small Modular Reactors (SMRs), significant opportunities for nuclear capacity expansion have emerged. This initiative is expected to lower the carbon footprint ofpowergeneration,strengthen energy security, reduce reliance on fossil fuels, and advance the country’s climate goals.

4. Power Trading ersoff Cross-border a electricity trade (CBET) valuable avenue for regional integration olio, Asia, particularly in leveraging renewable energy to support large-scale deployment and balanced supply-demand dynamics. The diverse energy profiles across countries allow for optimal use generation mix, promoting economic theexisting growth across the region. Current power exchange enhanced cooperation

India, Bangladesh, Bhutan, and Nepal through CBET. The Government of India (GOI) has designated NVVN, a subsidiary of Your Company, as the Nodal Agency for cross-border power trading with Bangladesh, Bhutan, and Nepal. NVVN is playing a pivotal role in advancing cross-border electricity trade, with Bangladesh, Bhutan, and Nepal being the primary markets. These markets present diverse demand conditions and growth.

In domestic power trading NTPC through NVVN, has been consolidatingits position in many fields selling captive power, selling power of Independent Power Producers (IPPs), entering into power banking arrangement, trading of power, Renewable Energy Certificates (RECs) and Energy Conservation Certificates (ECerts) on the platform of Power Exchange(s) etc. The customer base of the NVVN has increased to more than 100 customers including power stategovernment IPPs, Industrial customers and captive power generators across all five regions of India.

5. Carbon Management

Considering the scale of India’s economy and its emission footprint, the Indian Carbon Market (ICM) is poised to become one of the largest compliance-based carbon trading systems globally.

The Government of India has notified the Carbon Credit Trading Scheme (CCTS), laying down the structural and regulatory framework for carbon trading in the country. The CCTS establishes guidelines for Indian players to track and trade carbon credits. The CCTS is being established as an intensity-based cap-and-trade system. With large green projects in its portfolio, Your Company is poised to generate additional carbon credits, creating a new revenue stream.

6. International Business

Your Company, building on the proven project management and O&M experience with an portf made a expandingpowergeneration global presence in various countries as below: a. Project Development Bangladesh-India Friendship Power Company Private Limited

This 50:50 joint venture, formed with the Bangladesh Power Development Board (BPDB), commissioned a coal-based power plant of 1320 MW capacity at Rampal (Khulna) christened as ‘Maitree Super Thermal Power Plant’. Both units are under commercial operation.

Trincomalee Power Company Limited TPCL (a

50:50 JV between NTPC Ltd. and Ceylon Electricity Board (CEB), Sri Lanka) is developing a solar power project at Sampoor, Sri Lanka, for which Joint opportunities for Venture and Shareholders’ Agreement (JVSHA) has been signed on 11 March 2022. This project, significant milestone in renewable energy markinga cooperation between the two countries, will play a . crucialroleinSriLanka’scleanenergytransition Phase I of 50 MW of the project has secured all the necessary approvals in Sri Lanka, and the Letter of Award (LOA) has been issued by CEB to TPCL in April 2025. In the first week of April 2025, TPCL signed the Project Agreements viz. Power Purchase Agreement (PPA) with CEB, and Implementation Agreement with Government of Sri Lanka (GoSL) represented by Secretary (Treasury), Ministry of Finance, GoSL. The groundbreaking ceremony for the first phase of project was launched by Hon’ble by signing MOUs and cooperation Prime Minister of India and Hon’ble President of Sri Lanka on 5 April 2025.

Solar b. PMC consultancy work with International

Alliance

Your Company is associatedasacorporatepartner in the power sector. Apart with International Solar Alliance (ISA) and has been awarded the following Project Management Consultancy (PMC) jobs abroad:

ISA Solar Park PMC assignment (ISA Program-06) Your Company has been appointed as PMC of 6620 MW consultant for the implementation Projects in around 13 countries of AfricaandLatin ed (Bhutan).

America. The assignments are in different stages of progress. More countries are being approached for the assignments on similar lines.

Rooftop Solar Projects (ISA Program-04)

Your Company is providing PMC services for implementation of 100kW Roof Top Solar Project in Ethiopia & Sao Tome. ojects Pr ISA27Demonstration

Your Company is appointed as Project Management Consultant for implementation of solarization projects in 10 countries (viz. Seychelles, Senegal, Djibouti, Cuba, Ethiopia, Suriname, Burundi, ts from Mozambique, Malawi & Uganda) across three themes: of (i)buildingSolarization roof-top/ground mounted PV installation, (ii) Solar based Cold Storages, and (iii) Solar PV based Water Pumping Systems. Project in 7 countries (including Djibouti, Seychelles, Senegal, Cuba, Malawi, Uganda, and Ethiopia) have been successfully commissioned. Projects in other 3 countries are in various stages of implementation. c. Other Consultancy assignments secured

With its decades of knowledge and expertise, Your Company has turned out to be a preferred consultancy service provider in the domain of power sector. It has been working on multiple consultancy assignments, secured through competitive bidding and nomination basis in various countries viz. Mauritius,South Africa, Bangladesh, and Nepal, etc. d. International MOUs

With an intentionto increase its footprints across the globe, Your Company has entered partnerships and collaborations with some of the world’s leading agreements.

A Memorandum of Understanding (MOU) was signed in November 2024 between NTPC and ESKOM (the largest power utility of South Africa) for fostering cooperation from this, Your Company is having existing MOU with Nepal Electricity Authority (Nepal), MASEN

(Morocco), UEGCL (Uganda) as of 31 March 2025. Also, MOU with Saudi Electricity Company (Saudi Arabia) is ready to be signed, and discussions for MOU are ongoing with ASEAN Centre for Energy (ASEAN Region), EDF (France), and Druk Green PowerCorporation e. Training and Capability Building Programs

Your Company is across the globe to run capability building programs .Your Company has forthepowersectorofficials partnered with the Development Partnership Administration(DPA) division of Ministry of External Affairs (MEA), GOI, for organizing Capacity Building programs for professionals from different countries under the auspices of the Indian Technical and Economic Cooperation(ITEC) Program of MEA. Your Company has conducted 16 training programs in participan38 different FY25inwhich296 countries have benefited.

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 2025, Your Company along with its JVs, has implemented 25340 MW capacity based on Super Critical technology. Your Company has commissioned two of the country’s most power plants based on the Ultra-Super Critical (USC) technology at Khargone (2x660MW) and Telangana Super Thermal Power Project (2x800 MW). 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 substantialreduction of CO2 emission when compared to conventional subcritical power plants for every unit of electricity generated. fficiency improvements.

8. Consultancy

NTPC’s deep expertise, industry experience, and strong brand presence in the power generation sector make us the preferred consultancy partner for a wide range of power generationand related services. Leveraging our comprehensive knowledge of both conventional and renewable power generation, NTPC Consultancy delivers innovative, value-added solutions that are tailored to meet the specific needs of clients in the beyond. NTPC Consultancy provides a wide range of services as follows:

• Owner’s Engineer Services

Consultancy offers end-to-end consultancy services from concept to commissioning across both conventional and renewable energy systems. This includes:

3 Pre-feasibility & Feasibility Studies

3 Pre-Award Services & Bid Process

Management

3 Post-Award Engineering Services

3 Project Management & Site Supervision

3 Commissioning & Performance Guarantee (PG) Testing

• Quality Assurance & Inspection Services

NTPC stringent Quality Management System, robust vendor assessment process, and nationwide inspection offices quality standards. We also have the capability to conduct inspections by a team of experienced professionals.

• Operation & Maintenance (O&M) of Power

Sector

Plants

NTPC Consultancy provides a comprehensive range of O&M advisory and management services, including:

3 Technical & Safety Audits, Environmental Audits and Performance Improvement & Efficiency Management

3 NTPC’s R&M services enhance the performance and lifecycle of older power plants, leveraging our expertise in system restorationand

3 Supporting clients with the management of stressed assets through detailed technical evaluations.

• Implementation of New Environment norms

NTPC Consultancy also provides Owner’s Engineer Consultancy service from Concept to commissioning for Flue Gas Desulphurization (FGD) systems, continuous ambient air quality Monitoring stations (CAAQMs) and reduction in power sectorand water consumption.

• IT and HR Services

NTPC Consultancy offers robust IT solutions, including proprietary products like DREAMS

(Drawing Review and Management System), and Plant Information (PI) System. NTPC Consultancy also supports organizationalrestructuring, policy development, and systems formation.

• Contract & Procurement Services

NTPC Consultancy leverages its extensive experience in procuring equipment and items, in compliance with Government guidelines and procedures, to offer comprehensive contract and procurement services to its clients.

• Distribution Business Opportunities

NTPC is expanding its presence in the distribution sector through strategic projects, such as:

3 Implementation of Loss Reduction Projects: ensure high-NTPC Consultancy has been appointed internationally,supported as the Project Implementing (PIA) under the Government of India’s Revamped Reforms-Based and Results- (RDSS) in Linked Distribution 9 districts of Jammu & Kashmir (J&K).

3 Third-Party Independent Evaluation Agency: NTPC is serving as the Third-Party Independent Evaluation Agency (TPIEA) for Power Finance Corporation(PFC) in the verification of Supervisory Control and Data Acquisition (SCADA) works in Jammu & Srinagar.

India plans to add more than 80 GW of new coal capacity by 2034 and 500 GW of RE capacity by 2030, with many plants undergoing upgrades and maintenance. This expansion offers Consultancy a significant opportunity to leverage its extensive experience and broad service offerings. So NTPC is well-positioned lead the way in power generation ensuring excellence and sustainability in all our offerings.

9. Other Opportunities

Waste to Wealth: Keeping commitment towards clean & green environment and Swachh Bharat Mission (SBM), Your Company has taken several initiatives to people’s health and welfare. Your Company has been actively engaged in developing waste-to-wealth projects. These initiatives transform materials into valuable products such as green charcoal, contributing to both waste management and energy production goals. The green charcoal derived from the municipal solid waste (MSW) to torrefiedcharcoal plant serves as an eco-friendly energy alternative, enabling the Country to lessen its reliance on imported coal, thereby bolstering energy security and fostering sustainable development.

Portfolio Management: During the year NVVN has signed an agreement on 12 July 2024 with Meghalaya Energy Portfolio Management for Meghalaya for 5 years By managing the portfolio optimized the cost of procurement for Meghalaya through Meghalaya Power Distribution Corporation Limited (MePDCL).

THREATS AND CHALLENGES

1. Solar and Wind Power - Capacity growth Agency The following factors may increase the input cost leading to challenges for the fast-paced growth of RE projects: a. Supply Chain Disruptions: Renewable power projects rely on a complex supply chain for equipment, materials, and components necessary for renewable energy projects. Disruptions supply chain, either due togeopolitical tensions, trade disputes, natural disasters or force majeure conditions may lead to delays in project execution and cost overruns. b. Transmission constraints: Low gestation period of renewables vis-a-vis high gestation of transmission capacity addition is a constraints and land acquisition hurdles remain key bottlenecks, causing project delays and cost to escalations in transmission projects. Rapid addition of RE capacity in the western states has almost consultancy, saturated the intra-state grid leaving little margins and thus demand fresh investments by the state transmission companies. c. RE integration: Growing solar generation and its absence during non-solar hours, has led to a redefining of peak demand periods, making non-solar peaks more significant and challenging than ever before. As more solar capacity is added, to ensure pollution free environment meeting daytime demand ensuring resource adequacy for non-solar hours will be critical. Absence of adequate energy storage capacity may become challenge for RE integration. d. Obsolescence Risk Due to Technological Progress:

As technology develops quickly, there is a chance that RE plants set up on existingtechnology may become obsolete. Investment in research and development as well as upgradation of the operational be a key factor for staying competitive. e. Environmental and Social Concerns: The development of renewable energy projects, particularlyLimitedforEnergy large-scale installationslike Solar . projects and wind farms, may face opposition from for Meghalaya, NVVN has local communitiesand environmental groups due to concerns about land use, biodiversity conservation, and cultural heritage.

f. Green Hydrogen growth: Cost of green hydrogen is a major impediment for growth in India or elsewhere. Cost of renewable energy amounts to nearly 60-70% cost of green hydrogen, resulting as much as twice the cost of traditional chemicals It is expected that in coming years, cost of green hydrogen will be coming down with sizable scale of domestic Electrolyzer production and RE component manufacturing based in India. Low domestic offtake commitment is also a hurdle for development of production capacity. g. Policy and offtake uncertainty: Changes in policies, uncertainty regulations, and 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. Further RE developers are also grappling with significant delay in the growth of capacity addition.

Your Company is making all efforts toobtainall are dependent 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 500 GW renewable ation within a capacity by 2030. ation

2. Thermal Assets a. Flexible operation of Thermal Units

To integrate variable RE into the grid, coal-based power plants must regulate their generation to is likely to pose challenge. maintain grid balance. The influx of more RE power in the grid would require many coal-based plants to operate at par or technical minimum capacity, frequent load fluctuations, and even two-operations. at partialload, 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 the flexible operationis also costandincentivizing being taken up at various levels. b. Limited EPC Providers e, the addition perspectiv Fromanenergysecurity of thermal capacity is essential to meet peak load demand and to offset the variability of renewable energy sources. While Your Company is actively antly. Thissignific expanding its thermal capacity, the pace of growth may be constrained by a limited vendor base for EPC (Engineering, Procurement, and Construction), BTG (Boiler, Turbine, Generator), and balance-of-plant . contracts. The turnkey EPC space is characterized by a high degree of vendor concentration,with only a few players dominating the market. As a result, power generators may need to segment their projects and assume the risks of integration and coordination themselves, potentially leading to delays and increased costs.

3. 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 of PSA/PPAslowing 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 upon new domestic gas. Gas stations costlier RLNG for declaring capacity/generation, however, the generation schedule on RLNG is not available on a sustained basis.

4. Environmental Concerns

As per new environment norms, all plants must achieve100%ash period’ of 3 to 5 years based on their level of Ash during FY22. Although Company has achieved more than 99% ash utilization for FY25, however with further additionof thermal capacity in coming years, 100% ash utilization tives have been undertaken for the initia Various development of new processes such as use of Bottom Ash in place of Sand and innovative ash products like Nano Concrete Aggregate (NACA), ge solar and precast elements, paver blocks to increase the ash utilization.

As thermal capacitycontinuesto expand, Your

Company’s carbon footprint is expected to rise. To address this, Your Company is undertaking several CCUS and CO2-to-green chemical pilot projects the techno-commercial aimed at demonstrating viability of these technologies for large-scale deployment.

OUTLOOK FOR THE COMPANY

Evolving Power Landscape

As India advances toward its goal of becoming a ‘Viksit Bharat’ by 2047, electricity demand is expected to rise will be accompanied by notable changes in consumption patterns across sectors and temporally as well. Industrial power demand will surge, driven by the expansion of manufacturing, increased electrification across various sectors, and the rapid of data-driven services. At the sametime,residential consumption will rise due to improving living standards, wider access to electricity, and continued growth. more frequent extreme weather events will become a major contributor to overall electricity demand. Meanwhile, as renewable energy capacitycontinuesto grow within the grid, both electricity supply and demand will become increasingly weather dependent. This shift will make the security and reliability of power supply more critical than ever. In this dynamic environment, thermal power will remain an essential part of the energy mix, providing grid stability, meeting peak demand, and supporting energy security. However, the power sector will also face increasing pressure to decarbonize, boost efficienc y, through NTPC Mining Limited. share of renewable energy sources.

Capacity Expansion

In this evolving energy landscape, Your Company’s strategic focus will be on expanding capacity to meet rising demand and increase market share. This expansion will feature an optimal mix of thermal and non-fossil energy sources, including renewables and nuclear power. As on March 2025 Your Company has a portfolio of approximately 112 GW, comprising 80 GW in operation and over 32 GW under construction. In addition, a diverse pipeline of new projects is under development. Future thermal capacity additions will only be through highly efficient ultra-supercritical pressures in the renewable sector will drive the adoption wind technologies. Your Company cutting-is also actively exploring inorganic growth through acquisitions. In FY25, it added 3972 MW of capacity, over 80% of which came from renewable sources.

Your Company’s capacity expansion was accompanied by a proportional rise in power generation, which grew from approximately 422 BUs to 439 BUs. Your Company’s coal-based units outperformed peers, achieving a plant load factor (PLF) of 77.4% which is significantly higher than the national average of 69.5%. Reinforcing its leadership in power generation Your Company supplied over position 24% of India’s total power demand, holding about 17% of the country’s installed capacity. This strong performance was driven by the seamless integration of supply chain operations from fuel sourcing to long term power purchase agreements and trading.

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 both through battery storage and pump storage solutions. population Your Company is collaborating with Nuclear Power Corporation of India (NPCIL), in developing Nuclear Power theneedforcooling,intensifiedby Projects. 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 (Round the Clock) 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 long-term plan. Fuel security is of critical portfolio; therefore, the Company’s focus is on increasing and integrate more effectively with a growing the captive coal production Efforts are being made for acquisition of new coal & other mineral blocks through participation blocks by Ministry of Coal (MOC)/other mineral blocks by Ministry of Mines or by Individual State Governments.

Power and carbon credit trading scheme has the potential to fundamentally affect all the sectors of the economy and can play a substantial role in India’s efforts to mitigate putting climatechange.Asthegovernmentis enabling policies and regulations in place for the development of carbon markets, Your Company is gearing up to be a major player in this domain. In Power trading, NVVN the power trading arm of Your technology,while Company is the 2nd largest power trader in terms of volume and traded more than 41 BUs in FY25.of Your Company has embraced digitalization and deployment of AI/ML tools as a fundamental component of its strategy.

As this can significantly optimizing and reducing costs. Advanced analytics maintenance powered by AI/ML can minimize unplanned outages and extend the life of critical equipment, leading to higher plant availability and monitoring and data-driven decision-making improve fuel management, reduce heat rate, and lower auxiliary power consumption.In renewables, AI helps in accurate generation forecasting, better grid integration, and storage optimization. covered in digitalization, the AI/ML journey is gathering momentum. While many use cases like RPA for billing, AI tools for Safety, predictive maintenance and generation forecasting have been deployed across organization, efforts for integrating the various use cases will intensify and in the coming year to maximize the productivity efficiency

Renewables Growth

While continuing the capacity expansion, to meet the growth aspirations of Indian economy, it is of cardinal importance to be a major contributor in the energy transition fostering the achievement of net zero milestone. Your Company, therefore, is also focusing on reducing the carbon footprint through a steady growth in green business. 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. As on 31 March 2025, RE capacity of NTPC under various stages of implementation totals up to 14.5 GW. Further 11 GW of RE projects are in pipeline under various mode of tendering/award. NGEL, which was incorporated to focus on the green business is spearheading these efforts and has undertaken severalinitiatives for aggressively adding capacity.

• Initial public offer (IPO): NGEL raised 10,000 crore through an IPO in November 2024. The IPO had received an overall subscription of2.55times,reflecting interest. IPO marked a significant milestone in NGEL’s growth journey and bolstered its financial capacity to accelerate green energy projects.

• Strategic Partnerships: NGEL has entered in strategic partnerships with State Governments and other companies through formation of Joint ventures for facilitatingthe

3 NTPC Rajasthan Green Energy Limited (NRGEL), a 74:26 JV with RVUNL, to develop RE Parks and Green Hydrogen Projects up to 25 GW capacity. Agency

3 AP NGEL HARIT AMRIT LIMITED (APNHAL), a 50:50 joint venture with New & Renewable Energy Development Corporation of Andhra Pradesh Limited (NREDCAP) to develop RE Projects up to 25 GW capacities, PSP up to 10 GW capacity and Green Hydrogen Projects.

3 NTPC UP Green Energy Limited (NUGEL), a 51:49 JV with UPRVUNL, to establish RE Parks & Projects in Uttar Pradesh up to approximately 2 GW.

3 MAHAGENCO NTPC Green Energy Private Limited (MNGEPL), a 50:50 JV with MAHAGENCO to focus on RE Parks in Maharashtra up to 2.5 GW.

3 NTPC-MAHAPREIT GREEN ENERGY LIMITED (NMGEL), a 74:26 joint venture of NGEL

and Mahatma Phule Renewable Energy and Infrastructure Technology Limited (MAHAPREIT) will be engaged in the business of developing, and maintaining RE Parks including operating UMREPP/RE Projects.

3 JV Agreement (74:26) with Chhattisgarh State Company Limited (CSPGCL) for PowerGeneration development of RE Projects up to 2 GW capacities. These partnerships will accelerate the RE capacity addition through facilitationof land acquisition, obtaining grid connectivity also help in mitigating operational burdens.

Organic Growth

As on 31 March 2025, Your Company has a cumulative commissioned RE capacity of 6.8 portfolio GW. This includes some of the country’s biggest ground mounted solar projects of capacity 320 MW and 300 MW located in Rajasthan and the country’s second largest floating solar project of 100 MW at Ramagundam. RE projects with a cumulative capacity of 14.5 GW are under executionwhich includes Solar, Wind and energy storage projects. UMREPP at Gujarat (4.75 GW), DVC (0.7 GW), and Madhya Pradesh (0.6 GW) are being developed by NTPC along with a green Hydrogen Hub at Pudimadaka, Andhra Pradesh. MOU has been inked with Madhya Pradesh Power Generating Company Limited (MPPGCL) for setting up of Projects comprising of Solar/Wind/Hybrid with or without storage up to 20 GW. MOUs have also been signed with other state governments to undertake more UMREP projects accounting cumulatively to over 50 GW. Also, MNRE has accorded approval to NTPC to act as a (REIA) and issue RenewableEnergy Implementing tenders for setting up renewable power projects (wind and solar) under developer mode. As on 31 March 2025, 5.27 GW of RE projects has been commissioned in this mode and 16.13 GW of RE projects are under implementation. In FY25, RE capacity of 12 GW, comprising vanilla solar and wind, hybrid and FDRE (Firm and Dispatchable Renewable Energy) have been tendered out.

Inorganic Growth

ONGC NTPC Green Private Limited (ONGPL), a 50:50 JV with ONGC Green Limited, to explore offshore wind and other renewable energy initiatives, acquired 100% equity stake in Ayana Renewable Power Private Limited on 27 March 2025, a leading RE platform, with a portfolio of 4112 MW. NGEL is also looking for other opportunities for inorganic expansions.

Offshore Wind

With the Indian government’s

Wind Lease Rules (2023), developers are allowed to lease areas between 25 and 200 square km for offshore wind projects. This opens a potential field for NTPC and other renewable energy developers in India.

NTPC is pursuing collaborations with global partners to leverage expertiseand experience in developing offshore wind energy projects. Your Company is actively participating in all relevant and otherclearances. These partnerships will projects. risks by distributing financial and

Green Hydrogen

Advancements in Green Hydrogen production technologies, including various types of Electrolyzer (PEM, AEM, alkaline, and solid oxide), as well as hydrogen generation from biomass, are driving down the cost of producing Green Hydrogen. This, combined with the growing emphasis on utilizing Green Hydrogen and Green Chemicals, is significantly increasing the demand for renewable power.

NTPC is actively advancing initiatives Green Hydrogen across multiple fronts. It is conductingpilot projects for blending Green Hydrogen with the piped natural gas (PNG) network and has already commissioned a pilot Green Mobility project in Leh. Green Hydrogen-based mobility projects are being established in Greater Noida, Bhubaneswar, and Kandla, aimed at assessing the techno-economic feasibility of hydrogen-powered buses for both short and long-haul transport. Further, NTPC is constructingGreen Hydrogen based microgrid project in Chushul, Ladakh; and is in the advanced stages of planning for hydrogen-powered locomotives.

A major milestone in NTPC’s strategy is the development of a 1200 acre Green Hydrogen Hub at Pudimadaka, Andhra Pradesh. Located near Vizag Port and Airport, the project aims to catalyze India’s hydrogen economy, with the foundation stone laid by the Hon’ble Prime Minister in January 2025. Key infrastructure works are currently Bore’ and detailed Geological Studies at Pakri- underway,alongsidepilotprojectsforEthanol (10 TPD) and Sustainable Aviation Fuel (SAF) (6 TPD). The hub will include facilities for manufacturing hydrogen-related equipment, productionof green hydrogen, and export of green ammonia and methanol. The project is expected to consume 5 GW of renewable energy in its final phase, exporting up to 2 MMTPA of green hydrogen derivatives Preliminary work is currently in progress. Other Green Hydrogen projects:

• NTPC has implemented pilot for green hydrogen Blending with piped Natural Gas (PNG) network,

• A one of its kind, Green Hydrogen based mobility project has been commissioned at Leh, Ladakh. of Offshore

• Green Hydrogen based locomotive(s) are at the advanced stage of planning which are to be put into regular use by 2026-27.

• NTPC has partnered with the Indian Army to establish a 200 kW RE-RTC Hydrogen-based Microgrid at Chushul, Ladakh; which at present is under construction phase and is to be put into regular use by June 2026.

• for offshore wind NTPC’s R&D wing NETRA is also working on following Green Hydrogen pilots.

3 20 kw Unit Solid Oxide based High Temperature Steam Electrolyzer (HTSE) plant at NETRA.

3 1 TPD Sea Water to Green Hydrogen Plant at NTPC Simhadri.

3 1 TPD PlasmaGasification based Green Hydrogen Plant at Netra.

Carbon Capture,

Aimed at reducing carbon emission by either storing or reusing the captured carbon dioxide, Your Company is exploring opportunities in the domain of carbon capture, utilization & storage andproductionof green chemicals from captured carbon. Salient projects, in which NETRA, the R&D wing of NTPC is working on, are listed below:

• 3000 TPA Flue Gas CO2 to Methanol Plant at NTPC Vindhyachal.

• 50000 TPA Flue Gas CO2 to Green Urea Plant at Pudimadaka.

• 7500 TPA + 200000 TPA Flue Gas CO2 Capture Plant at NTPC Simhadri.

• CO2 compression & Pipeline Transportation from Simhadri to Pudimadaka.

• 10 Kg/day Indigenous Catalyst for Methanol Synthesis Plant at NETRA.

• CO2 Storage in Geological formation: Drilling of ‘CO2 Injection Barwadih Coal Mines.

• Carbonated Fly ash-based Aggregates (in collaboration with IISc, Bengaluru).

Cross Border Power Trading

.

Cross Border Power Trading is a significant component of NVVN’s portfolio contributing 19.9% of total Power Trading by NVVN. 8175 MUs were traded by NVVN under Cross Border transactions (including cross border trading on the platform of Power Exchange) benefiting consumers in India, Bangladesh and Nepal. In the current year (FY25), NVVN has also been designated as the nodal agency for the import of power from the 1020 MW Punatsangchhu-II Hydro Electric Project (HEP) in Bhutan, helping NVVN to expand its footprints in another neighbouring country. Power flow to India is expected to commence from the Project in the second quarter of FY 2025-26. In another significant milestone, India, Bangladesh and Nepal signed a trilateral agreement for supply of 40 MW hydro power from Nepal to Bangladesh through Indian transmission grid. The agreement is valid for 5 years. Ministry of Power has nominated NVVN as Settlement Nodal Agency (SNA) for settlement of Grid operation related charges with neighbouring countries, namely, Bangladesh, Bhutan,NepalandMyanmar.SNAactivities ting, both in the such as Scheduling for Cross border trade and settlement of grid related charges are being carried out by NVVN. For cross border trading with Bangladesh following Power Purchase Agreements (PPAs) are in place:

• PPA with BPDB signed in September 2018, for supply of 300 MW Round-the-Clock (RTC) power from Damodar Valley Corporation to Bangladesh.

• PPA with the Bangladesh Power Development Board (BPDB) for supply of 250 MW of power for a period of 25 years from NTPC stations.

• Another agreement for the supply of 160 MW ? 20% signed earlier has been extended until March 2026. A corresponding back-to-back Power Sale Agreement (PSA) has been signed with Tripura State Electricity Corporation Limited (TSECL) for the same quantity under radial mode. In total, NVVN is supplying 750 MW of power to Bangladesh including 40 MW power from Nepal. During the financial year 2024-25, a total of 4911 million units (MUs) of energy was supplied to BPDB.

NVVN has entered into following agreements with the Nepal Electricity Authority (NEA), in addition to the Trilateral agreement with Nepal and Bangladesh:

• Supply of up to 200 MW power to Haryana for the period of 4 years (September 2023 to September 2027), via the 400/200 kV Muzaffarpur-Dhalkebar AC line.

• Supply of 200 MW power to Haryana for the period from 2024 to 2028.

• NVVN is activelyengagedintradingelectricityforNEA st of such plants for processing 600fir through power exchange, via the Day Ahead Market (DAM) and Real Time Market (RTM). This is facilitated through the Muzaffarpur-Dhalkebar 400 kV DC line and the Tanakpur-Mahendranagar 132 kV S/C line. The Power Trading Agreement is available till 2030.

During FY25, NVVN has traded 2572 MUs of energy for NEA via DAM and RTM segments.

Domestic Power Trading

Quantumofshort-termpowerpurchasebyutilities has shown consistent growth over the years, primarily through Power Exchange. Your Company through NVVN, has signed PPAs for supply of 345 MW power from Kameng HEP, and the same is tied up with Haryana and TPPDL under medium term.

NVVN has signed long term PPA with Jhabua Power Ltd. for useful life of plant for supply of its available 390 MW merchant capacity out of which 140 MW has been tied up with HPPC for the period of August 2024 to July 2029. Your Company has been Integrated Day Ahead Market (I-DAM) and Real time Market (RTM) for selling any URS power in the Power Exchange through its trading arm NVVN. Besides selling the URS power, it has also been selling any regulated power, merchant power, relinquished gas power, infirm power in the Power Exchanges. an annual In the FY 2024-25, NVVN traded a record 41030 MUs of energy.

GOI Schemes

NVVN has successfully implemented the Government of India scheme to supply of power from gas-based power plants during crunch period from March 2024 to June 2024. During this financial year also, NVVN has issued NIT for procurement of power generated from Gas Based Plants (GBP) during crunch period. LOA has been issued to Gas Based Plants (GBP) for supplying of up to 1744 MW power during crunch period (16 March 25 to 31 October 2025).

Waste to Wealth

Your Company has successfully incubated production of torrefied charcoal (Harit Koyla) from Municipal Solid Waste diverting waste from landfillsand reducing greenhouse gas emissions. The green charcoal serves as an eco-friendly energy alternative, enabling the Country to lessen its reliance on imported coal, thereby bolstering energy security and fostering sustainable development. It curbs carbon emissions and aids in diversifying energy sources. The (TPD) Waste has been set up at Varanasi. More than 2500 MT of green charcoal has been producedduringthetestingand trial run of the facility and the same has been successfully co-fired at NTPC’s Tanda Thermal Power Station.

Considering the huge potential of the technology to mitigate a pressing Urban problem of handling Municipal Waste, NVVN is setting up similar plants at Bhopal (400TPD), Hubballi-Dharwad (200TPD), Noida-Greater Noida (900TPD) and Gorakhpur (500TPD) Land use and MSW Agreements have been signed with Meerut Nagar Nigam for processing 900TPD of MSW to Green Charcoal. MOU with Municipal Corporation of Gurgaon and Faridabad have also been signed, the project shall be implemented by APCPL Jhajjar. 10

Carbon Management ely preparing for Carbon activ YourCompanyhasbeen

Credit Trading Markets. A total of 14 projects have been registered across various global carbon programs, including Clean Development Mechanism (CDM), Verified Carbon Standard (VCS), InternationalCarbon Registry(ICR),and with EDF India Private Global Carbon Council (GCC). Notably, eight projects are registered with the UNFCCC CDM Executive Board, four renewable energy projects are part of the VCS program, and one project is registered with the GCC. The Koldam Hydro Power Station, with a capacity of 800 MW, has been reduction registered with the ICR, projecting of greenhouse gas emissions of approximately 2756827 tCO2e. As of 31 March 2025, the Koldam project has generated 22.62 million carbon credits, and will continue to generate carbon credits for the ten-year duration for which it is registered.

Additionally, with GCC and VCS, including intheprocess of registration a Waste to Energy plant in Varanasi.

In total, NTPC group companies have generated approximately 28.6 million carbon credits. Furthermore, ation projects at Vindhyachal Utiliz CarbonCaptureand (20 TPD) and Pudimadaka (25 TPD), alongside Green Hydrogen Mobility Projects in Leh (80 kg/day) and Greater Noida (260 kg/day), being in line with Article 6.2 of the Paris Agreement are poised to generate additional carbon credits, creating a new revenue stream through sales in both Indian and international markets. NVVN has been entrusted the responsibility for developing and promotingtheCarbonCreditsrelatedbusinessvertical for rendering Consultancy and trading services

Energy Storage

Advancements in BESS technologies, such as lithium-ion, sodium-ion, nickel-cadmium, and flow batteries along like hydrogen-based and thermal withemergingsolutions energy storage,aresettoplaycritical role in accelerating the adoption of renewable energy (RE). Globally, the energy storage market experienced rapid growth in 2023, nearly tripling to 45 GW / 97 GWh. With increasing demand for Round-the-Clock (RTC) renewable power, India is expected to add 9 GW of energy storage capacity by 2030. While battery storage will address short-term energy needs, pumped hydro storage will serve short to medium-term requirements. In pump storage, MOP has indicated 9 PSPs of about 11550 MW capacity to Your Company. Further, NTPC

PSP sites having potential of 10200 hasself-identified

MW. Out of these, 4 projects of 4000 MW capacity have been allocated to NTPC. Further THDC and NEEPCO have also undertaken PSP storage projects. While NEEPCO has identified3 PSPs of 2620 MW, THDC has 10 PSPs of more than 10 GW. Your Company is also collaborating Limited owned by Electricite de France SA to develop (including construction), own, operate and maintain pumped storage project(s) and/or any other hydro power project(s) or Hydro Project(s) bundled with other Renewable Energy projects and explore opportunities in distribution business.

NETRA, the R&D center of Your Company has also undertaken some pilot projects for energy storage, these include:

• 3 MWh Redox Vanadium Redox Flow Battery (VRFB) Storage at NETRA. 48 projects from NTPC and its subsidiaries are

• 20 MW/160 MWh CO2 based Closed Brayton Cycle Storage System at NTPC Kudgi.

• 140 TR Solar Thermal based Space Conditioning System at NTPC Dadri Hospital.

Parallelly, Your Company is also actively exploring the use of hydrogen as a long-duration energy storage solution.

GOI Schemes

To give fillip introduced Viability Gap Funding (VGF) Scheme for development of 4000 MWh. Considering the downward trajectory of BESS cost, the scheme is now able to provide assistance to 13200 MWh projects being implemented through Central and State Agencies.

NVVN has been nominated as BESS Implementing Agency (BIA) by the Ministry of Power (GOI) for implementation of battery energy storage systems under GOI scheme for viability gap funding for Market (1000 MWh) and CPSU (2000 MWh) Components.

Under the Market Component NVVN has successfully awarded LOAs for setting up of 500 MW/1000MWh standalone battery energy storage systems in India with viability gap funding support. Under the CPSU Component, NVVN has issued two tenders under tariff-based competitive bidding. These are setting up of 500 MW/1000 MWh STU connected standalone BESS in the state of Rajasthan and supply of energy from 250 MW/1000 MWh standalone BESS in the state of Uttar Pradesh. LOAs have been issued for 450 MW/900 MWh for Rajasthan.

C&I Business

In alignment with the growing demand for clean energy, NVVN and NGEL are actively pursuing Commercial and Industrial (C&I) consumers, including energy-intensive sectors such as data centers, for the supply of renewable energy (RE). By offering tailored renewable energy solutions through mechanisms such as open access, group captive models, and bilateral arrangements, Your entities Companyaimstosupportthese to cleaner energy sources while simultaneously expanding its RE portfolio. The focus on C&I customers also aligns with national priorities on decarbonizing the economy.

Diversification and New Business Areas

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

1. Nuclear Energy

Nuclear power provides reliable, round-the-clock base load electricity, which complements intermittent renewable sources like solar and wind. India is program to ensure long-term energy security, meet its growing electricity demand, and achieve its climate commitments, including net-zero emissions by 2070. Moreover, nuclear energy offers low operatingcosts over the long term and supports the country’s vision of transitioning based fuelcycle,leveragingitsabundantthorium of overseas Uranium assets. In this reserves. NTPC is planning to enter the nuclear power business through following initiatives:-

ASHVINI (Anu Shakti Vidyut Nigam Limited)

ASHVINI, was incorporated as a joint venture of India Limitedbetween Nuclear Power Corporation (NPCIL) and NTPC with an equity partnership of 51:49 of India accorded ASHVINI, the approval to Build,

Own, and Operate nuclear power plants in the country, in accordance with the provisions of the Atomic Energy Act. The government also approved the transfer of the Mahi Banswara Rajasthan Atomic Power Project (MBRAPP) (4?700 Mwe) from NPCIL activities are currently toASHVINI.Assettransfer underway. NTPC has already deployed manpower and is actively working in collaborationwith NPCIL t the site. a onpre-projectactivities

NTPC Parmanu Urja Nigam Limited (NPUNL)

A wholly owned subsidiary of NTPC for nuclear business has been incorporated on 7 January 2025. NPUNL shall explore the available technologies like SMR (Small Modular Reactors), PHWR (Pressurized Heavy Water Reactor), PWR (Pressurized Water Reactor), FBR (Fast Breeder Reactor) etc. subject to GOI approval. Your Company has identified 28 potential sites for Nuclear Power Project in MP, Chhattisgarh, Gujarat, AP, Karnataka, Tamil Nadu, Odisha and other states and discussions are underway with state administrations for in-principle availability of land and water and permission to carry out pre-feasibility studies at potential sites. NTPC has signed MOUs with Madhya Pradesh and

nuclear projects in these states.

Small Modular Reactors (SMRs) development

India is actively exploring Small Modular (SMRs) as a strategicadditionto its energy mix, particularly to meet its net-zero goals by 2070 and ensure energy security. For Indigenous development of SMR, a draft MOU between NTPC and BARC has been approved by NTPC board. NTPC is also in expanding its discussion with M/s Holtec for possible collaboration for development of SMR in India subject to approval from GOI.

Fuel tie-up

For fuel, NTPC is exploring the possibility of toathorium-acquisition regard, NTPC board has approved the draft MOU with Uranium Corporation of India Limited (UCIL) for joint techno-commercial due diligence of overseas Uranium assets. Further, NTPC is in discussions with US-based Clean Core Thorium Energy (CCTE) to explore development/deployment of ANEEL

(Advanced Nuclear Energy for Enriched Life) Fuel.

. In September 2024,

Capacity building ely buildingnuclearexpertisethroughactiv NTPCis strategic collaborations. In partnership with BARC, NTPC sponsors one-year OCES (Orientation Course for Engineering Graduates and Science Post Graduates) program.

month basic training program on Fast Breeder Reactor (FBR) technology has been organized for es. Executives from NTPC’s Nuclear executiv NTPC

Cell also gained valuable insights into nuclear project management through a one-week training program conducted by EDF, France. Furthermore, a joint team of NTPC and NPCIL executives is working closely with NPCIL’s design team, contributing ant step towards toproject development while simultaneously enhancing their technical capabilities about UP, 2. Collaboration with

Strategic partnerships Collaborationare key and to NTPC’s growth as they enable the Company to accelerate its diversification, access technologies, and scale operations across emerging sectors such as renewables, nuclear energy, power trading.green hydrogen, and international governments for development of Collaborations share technical and financialexpertise, project execution in new and complex domains. Your Company is collaboratingwith following States and Reactors CPSUs for implementing growth-oriented Uttar Pradesh: Your Company has signed following proposals for investments: tions,and

• Proposals for expansion of MUNPL (a JV of NTPC power & UPRVUNL) with 3x800 MW Stage-II units. NIT was published for EPC package on 5 June 2024. • up Jointlysetting 2x800 MW Thermal Power plants at Obra and Anpara with UPRVUNL through the JV MUNPL.

Rajasthan: Your Company and Rajasthan Rajya Vidyut Utpadan Nigam Ltd. has signed a JVA on 4 November 2024 with a purpose to form a Joint Venture Company for exploring capacity expansion opportunities and collaborate for performance units (4x250+2x660 MW) at improvementinexisting Chhabra. The JVC shall also explore the possibilities of annuity-based R&M of other units of RVUNL. NALCO: Your Company and NALCO signed an MOU on 16 February 2024 to explore various options such as Thermal, Solar, Wind, Energy storage or any combination of same to supply round the clock uninterrupted power to cater the requirement of NALCO for expansion of its smelter plant capacity at Angul, Odisha. NALCO has approached NTPC for Techno-Commercial offer for preparation of DPR of 4x270 MW units at NALCO CPP Angul, Odisha on 8 executives annually for the April 2025. GAIL: Your Company and GAIL (India) Ltd. signed incollaboration withIGCAR,aone-a non-binding Memorandum of Understanding (MOU) on 19 February 2025, in New Delhi. The purpose of the MOU is to explore opportunities for India’s clean energy future through renewable energy projects, energy storage solutions, and the commercialization of Green Hydrogen, Green Ammonia, and Green Methanol. This MOU marks sustainable energy and infrastructure development in India.

Railways: Indian Railways has approached NTPC for meeting its future requirements of power. Subsequent to NTPC’s offer in the matter, Railway Board has given in-principle approval for formation of JV between NSPCL and Ministry of Railways for advancedsetting up an 800 MW Plant at Bhilai for supply of 680 MW power to Railways along with the approval for supply of 400 MW power from BRBCL-II (2x250 MW). allow de-risking large investments, and fast-track Fuel Security Outlook

NTPC has adopted a robust and forward-looking initiatives.strategy to ensure fuel security for its extensive fleet of thermal power plants. This strategy focuses on mitigating risks associated with fuel shortages, price logistical challenges by enhancing domestic coal production,diversifying procurement sources, and optimizing imports. Your Company has secured 100%fueltie-upfor its thermal capacity through long-term Fuel Supply Agreements (FSAs) with coal companies, with a total Annual Contracted Quantity (ACQ) of 250.75 MMT across the NTPC group. In FY25, the materialization of this ACQ stood at 90%. NTPC’s dependence on imported coal remains minimal, accounting coal receipts during the year helping to reduce the overall cost of power generation. Your Company has also procurement from newly auctionedprivate commercial mines and surplus coal from captive blocks. This procurement of domestic coal on a FOR

(Free on Rail) destination basis through competitive bidding, offsets shortfall from linked sources and helps in eliminating imports. To further reinforce the fuel security, Your Company is expanding its portfolio of coal mines and plans to increase production capacity from the current 91 MMTPA. To streamline and focus its mining operations, established NTPC Mining Ltd. (NML) as a wholly owned subsidiary. The Ministry of Coal (MOC) has approved the transfer of mines. Transfer of mines and statutory clearances from NTPC to NML are currently underway. In FY25, these mines produced yments and availed the eligible rebates. pa 42.02 MMT of coal, reflecting a 22% increase over the previous year. operated by NTPC’s subsidiary THDCIL, produced 3.80 MMT, bringing the NTPC Group’s total captive coal production for the financial year to 45.82 Development of the Badam mine is progressing, with a Mine Developer-cum-Operator (MDO) already appointed and mining operations expected to begin in June 2026. Simultaneously, development and activitiesunderway for the Banhardih clearance mine, allocated to Patratu Vidyut Utpadan Nigam Ltd. (PVUNL), a joint venture between NTPC and the Government of Jharkhand.

In a footprint, NML won its first commercial coal block, North-Dhadu (Eastern Part) through competitive bidding in August 2023. With Coal Block Development and geological report approved, NMLhassubmitted an appeal in March 2025 seeking in-principle approval of the mining plan. Concurrently, other statutory clearances activities are in and development progress. NML is also actively pursuing opportunities by block auctions conducted by the Ministry of Coal, Ministry of Mines, and various State Governments. Through these efforts, NTPC is fostering a more competitive, cost-effective, and resilient coal sourcing ecosystem, ensuring long-term fuel security and stable power supply.

REALISATION

Timely realisation of invoices ensures steady cash flow and is vital for the financial stability, operational and long-term growth. Your Company has in place, a robust payment security mechanism in the form of Letters of Credit (LC) backed by the Tri-PartiteAgreement ts (Note-7 to Note-(TPA). Apart from the LCs, payment is secured by the Tri-Partite Agreements (TPAs) signed amongst the State Government(s), Government of India (GOI) and Reserve Bank of India (RBI). As per the TPA, any default in payment by the State owned DISCOMs can be recovered directly from the State’s account in RBI. The TPAs signed during financial year 2000-01 were valid up to 31 October 2016.

During the year, total gross block of PPE has increased by 5% while capital work-in-progress has increased by 11% mainly due to new FGD capacities.

11)2. Non-currentfinancial

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

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

Particulars	As at March 31		%
	2025	2024	Change
additional Gross block of PPE (Note-2)	3,13,669.26	2,98,418.18	5%
Net block of PPE (Note-2)	2,10,927.53	2,11,323.43	0%
Capital work-in-progress (Note-3)	52,326.75	47,153.81	11%
Net carrying amount of	858.60	859.90	0%
Investment property (Note-4)
Net block of Intangible assets (Note-5)	421.38	427.69	(1)%
Intangible assets under development (Note-6)	3.33	3.19	4%

Subsequently these TPAs have been extended for a further period of 10 to 15 years. As of now, 29 out of total 31 States/UTs have signed the TPAs extension documents. The signing of TPAs extension by remaining States is being taken up.

During FY25, Your Company achieved 100% realization of its billed dues. The target set by the Government of India for energy supply payments during the year has also been successfully met. A majority of the beneficiaries ensured timely the Amelia mine,

FINANCIAL DISCUSSION AND ANALYSIS

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 2024-25 placed elsewhere in this Annual 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: Agreement (CBDPA) signed and

Crore had beenCrore

s Particular	As at March 31
	2025	2024
Subsidiaries	24,249.36	22,177.16
Joint ventures	10,181.72	10,228.79
Total	34,431.08	32,405.95

During the year, equity investments in subsidiaries and joint ventures increased by 6%. The details of increase/ (decrease) are as under:

Crore

Name of Company	Amount
NTPC Green Energy Limited	1,780.39
Patratu Vidyut Utpadan Nigam Ltd.	248.76
NTPC Mining Ltd.	43.00
NTPC Parmanu Urja Nigam Limited	0.05
Total investments during the year	2,072.20
Add: Provision for impairment made in
earlier years written back during the year
High Power Test Laboratory Private National	> 4.64
Ltd.
Less: Provision for impairment made during
the year
Energy Efficiency Services Ltd.	of 51.71
Net increase in investments	2,025.13

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

Note-11)

Other non-current financial 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.

Crore

Particulars	As at March 31		%
	2025	2024	Change
Other investments (Note-8)	624.38	701.98	(11)%
Loans (Note-9)	984.26	800.66	23%
Trade receivables (Note-10)	3.22	1,168.10	(100)%
Other financial assets (Note-11)	770.47	627.98	23%
Total	2,382.33	3,298.72	(28)%

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

Other non-current assets	As at March 31		%
	2025	2024	Change
Capital advances	8,021.08	6,089.11	32%
Security deposits	336.04	303.05	11%
Advances to contractors and suppliers (other than capital advances)	1,612.81	1,666.51	(3)%
Advance tax and tax deducted at source (net of provision for tax)	2,165.74	2,194.06	(1)%
Deferred foreign currency fluctuation asset	910.55	1,486.57	(39)%
Others	253.05	199.40	27%
Total	13,299.27	11,938.70	11%

Share application money Vidyut Utpadan Nigam Ltd. amounting to 180.00 crore is pending for allotment as on 31 Match 2025 (31 March 2024: Nil). Claims recoverable includes amounts outstanding as recoverable from GOI of 436.65 crore (31 March 2024: 483.37 crore), the cost incurred in respect of one of the Hydro Projects, the construction 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.

3. Other non-current assets (Note-12)

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

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Other financial assets (Note-11)	As at March 31 %
	2025	2024	Change
Share application money pending allotment	180.00	-	-
Claims recoverable	436.65	485.07	(10)%
Mine closure deposit	153.82	142.91	8%
Total	770.47	627.98	23%

Outstanding dues of the beneficiaries up to 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 Non-current Trade Receivables. Other financialassets include share applicationmoney pending allotment in subsidiaries, claims recoverable, and mine closure deposit.

Crore

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

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

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Particulars	As at March 31		Y-o-Y	%
Current assets	2025	2024	Change	Change
Inventories (Note-13)	17,847.86	17,369.83	478.03	3%
Investments (Note-14)	50.00	50.00	-	0%
Trade receivables (Note-15)	28,734.54	27,347.52	1,387.02	5%
Cash and cash equivalents (Note-16)	2.15	197.16	(195.01)	(99)%
Bank balances other than cash and cash equivalents (Note-17)	4,776.42	4,403.34	373.08	8%
Loans (Note-18)	348.80	415.85	(67.05)	(16)%
Other financial assets (Note-19)	16,019.53	11,664.94	4,354.59	37%
Other current assets (Note-20)	8,367.67	10,907.50	(2,539.83)	(23)%
Total current assets	76,146.97	72,356.14	3,790.83	5%

(a) Inventories (Note-13)

Inventories mainly comprise of coal and stores & spares, which are maintained for operating stations. Value of coal inventory has decreased from 7,560.67 crore as at 31 March 2024 to 7,282.47 crore as at 31 March 2025. Further, stores and spares inventory has increased from 7,148.84 crore as at previous year end to 7,833.39 crore.

(b) Investments (Note-14)

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

(c) Trade receivables (Note-10 & Note-15)

As on 31 March 2025, current trade receivables amounted to 28,734.54 crore (including doubtful debts which have been provided for) while the corresponding trade receivables as on 31 March 2024 were 27,347.52 crore. Trade receivables include revenue for the month of March amounting to 14,443.11 crore (31 March 2024: 13,609.03 crore), net of advance, billed to the beneficiaries after 31 March. Based on arrangements between Company, banks and beneficiaries, the bills of the beneficiaries had been discounted during the financial year 2023-24. Trade receivables include bills discounted amounting to 1,824.71 crore as on 31 March 2024 as compared to Nil as on 31 March 2025. Non-current trade receivables amounted to 3.22 crore as on 31 March 2025 (31 March 2024: 1,168.10 crore).

Excluding the unbilled revenue and bills discounted, trade receivables are equivalent to 32 days of sales as on 31 March 2025 in comparison to 31 days of sales as on 31 March 2024.

Particulars As at March 31 ear %
	2025	2024	Change
Security deposits (unsecured)	1,793.98	1,863.76	(4)%
Advances	3,309.23	4,804.97	(31)%
Claims recoverable	3,057.51	4,030.67	(24)%
Others	206.95	208.10	(1)%
Total	8,367.67	10,907.50	(23)%

(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 4,600.50 crore as at 31 March 2024 to 4,778.57 crore as at 31 March 2025.

(e) Loans-Current (Note-18)

Loans (current) have decreased by 67.05 crore. This is mainly due to decrease in loans granted to RGPPL upon repayment and balance due to increase in employees’ loans.

(f) Other financial assets (Note-19)

Other current financial assets have increased by 4,354.59 crore. This is mainly due to net effect of increase ges, etc. in Contract assets by 4,204.95 crore & increase in other financial assets by 498.92 crore and decrease in dividend receivable by 223.49 crore & finance lease 211.01 crore. Contract Assets represent Company’s 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, receipt of income tax assessment orders, truing up orders from CERC etc. and are net of credits to be passed to customers. Contract assets of 14,887.11 crore (31 March 2024:

10,682.16 crore), net of advance received from the beneficiaries amounting to 235.11 crore (31 March 2024: Nil) are included in the Other Financial Assets. Other Financial Assets also include an amount of 500.00 crore (31 March 2024: Nil) pertaining to amount deposited before Hon’ble High Court of Delhi, received in May 2025.

(g) Other current assets (Note-20)

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

Crore

Other current assets have decreased mainly due to decrease in Advances to contractors and suppliers by 1,495.74 crore and claims recoverable by 973.16 crore. Advances to contractors and suppliers mainly include payment made to coal companies amounting to 2,325.94 crore (31 March 2024: 3,420.89 crore) for supply of coal to various stations of the Company. Claims recoverable includes claims against Railways amounting to 2,014.73 crore (31 March 2024: 1,962.65 crore) mainly towards diversion of coal rakes. Claims recoverable also includes claims amounting to 929.93 crore (31 March 2024: 1,725.37 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 surfacetransportation

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 117.19 crore as at 31 March 2024 to 159.82 crore as at 31 March 2025.

6. Regulatory deferral account debit/credit balances (Note-25 to (Note-22 & Note-38) Expense/income recognized in the Statement of Profit & Loss to the extent recoverable from or payable to the beneficiaries Tariff Regulations are recognized as ‘Regulatory deferral account balances’. Regulatory deferral account balances are adjusted from the year in which the same become s Particular recoverable from or payable to the beneficiaries. The regulatory assets recognized in the books are as follows: liabilities

Crore

Particulars Regulatory deferral account liabilities debit/credit balances

A. Opening balance as on 1 April 2024 13,129.49 B. Additions duringthe 4,359.58 C. Amount realized/recognised during the year (345.55) D. Regulatory deferral account balances 4,014.03 recognized in the statement of profit and loss (B+C) E. Adjustments during the year (182.92)

F. Closing balance as on 31 March 2025 (A+D+E) 16,960.60

Refer Note-68 of financial statements for detailed disclosures.

Total non-current borrowings have decreased by 3% over the previous financial year. Debt amountingto 16,032.05 crore was raised during the financial year 2024-25. The amount raised through term loans, non-convertible debentures (NCDs) 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 2024-25 are as under:

	As at March 31
	2025	2024
Noncurrent financial	1,44,365.56	1,46,159.07
Borrowings (Note-25)
Current maturities of non- current borrowings included in current financial	19,128.01	22,355.46
Borrowings (Note-31)
Total borrowings	1,63,493.57	1,68,514.53

The President of India, acting through the Ministry of Power, holds 4,95,53,46,251 shares constituting 51.10% of total equity shares and balance 4,74,13,19,883 i.e., 48.90% equity shares are publicly held. The increase in total equity resulted in book value per share rising to 166.70 from 154.57 as at the end of previous year.

8. Non-current and current liabilities

Note-36) a. Non-current financialliabilities-Borrowings (Note-25):

Details of non-current borrowings including current in subsequent periods as per CERC maturities are as under:

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Particulars	Total Equity
Opening balance	1,49,885.02
Profit for the year	19,649.41
Other comprehensive income	(188.31)
Increase in Fly ash utilization reserve fund	294.18
Dividend paid during the year	(7,999.75)
	through
Closing balance	1,61,640.55

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

The total equity of the Company at the end of financial year 2024-25 increased to 1,61,640.55 crore from 1,49,885.02 crore in the previous year, an increase of 8%. Details are tabulated below:

Crore

Crore

Source	Debt raised	Repayment	Net
(Principal Amount)
Rupee term loans	6,178.58	6,362.34	(183.76)
Domestic NCDs	4,000.00	6,889.73	(2,889.73)
Foreign borrowings	5,853.47	9,133.09	(3,279.62)
Total	16,032.05	22,385.16	(6,353.11)
FERV on foreign borrowings		1,321.44
Transaction costs			10.71
Total			(5,020.96)

Rupee Term loans: Banks and domestic financial institutions continued to support the capex program the Company by extending term loans for financing e-27) t on-going capacity expansion plans. During the financial year 2024-25, an agreement for term loan of 5,000 crore was entered into. Anamountofhave increased from 6,178.58 crore was drawn from domestic banks & financial institutions the year and an amount of 6,362.34 crore was repaid during the year. Domestic bonds: During the financial year 2024-25, Company raised 4,000 crore through private placement of domestic bonds. Bonds amounting to 6,889.73 crore were redeemed during the year.

Foreign borrowings: During the financial year 2024-25, the Company has drawn 5,853.47 crore and repaid 9,133.09 crore of foreign currency borrowings. The Company continues to enjoy highest credit its NCDs and borrowings from banks, while Company’s International Ratings are at par with sovereign ratings detailed hereunder:

Credit Rating	Rating	Remarks
Agency
Domestic
CRISIL	CRISIL AAA/Stable	Highest ratings
ICRA	[ICRA] AAA (Stable)
CARE	CARE AAA; Stable
INDIA RatingsIND AAA/Stable
International	- Deferred tax liabilities
S&P	BBB-/Positive	Equivalent to
Fitch	BBB-/Stable	sovereign ratings
Moody’s	Baa3/Stable

The maturity profile of the principal amount of borrowings (excluding unamortized transaction costs and interest accrued) of the Company is as under: b. Non-current financial liabilities (No (Note-26)&Otherfinancialliabilities

Lease liabilities 824.52 crore as at 31 March 2024 to 890.32 crore as at 31 March 2025. The lease liabilities terms of the respective lease period of more than 1 year and up to 99 years. Other financial liabilities for capital expenditure and Contractual obligations representing security deposit and retention money deducted from vendors at present value and includes Performance Guarantee Deposit (PGD) deducted by the Company from the Solar Power Developers (SPD) in line with the MNRE Guidelines are earmarked for the purpose ratings for specified therein. Other financial liabilities from 465.60 crore as at 31 March 2024 to 609.62 crore asas at 31 March 2025. c. Non-current liabilities - Provisions (Note-28):

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 include Mine closure obligations and Stripping activity adjustments. Non-current provisions as at 31 March 2025 were 1,937.69 crore as compared to 1,898.03 crore as at 31 March 2024. d. Non-currentliabilities (net) (Note-29)

Deferred tax liabilities (net) have increased from 13,066.53 crore as at 31 March 2024 to 16,527.06 crore as at 31 March 2025.

Particulars	Domestic Borrowings	Foreign currency borrowings	Total have
Up to 1 year	13,795.51	5,332.50	19,128.01
Beyond 1 and within 3 years	21,853.33	16,263.47	38,116.80
Beyond 3 and within 5 years	24,412.78	11,127.68	35,540.46
Beyond 5 and within 10 years	41,921.07	11,392.81	53,313.88
Beyond 10 years	17,471.46	236.03	17,707.49
Total	1,19,454.15	44,352.49	1,63,806.64

Crore e. Other non-current liabilities (Note-30)

Other non-current liabilities 83.27 crore as at 31 March 2024 to 245.40 crore as at 31 March 2025. f. Current liabilities (Note-31 to Note-36)

The break-up of current liabilities is as under:

Crore

Particulars	As at March 31 %		Y-o-Y
	2025	2024	Change	Change
Borrowings	40,878.01	39,059.55	1,818.46	5%
(Note-31)
Lease liabilities	96.92	162.87	(65.95)	(40)%
- Lease liabilities (Note-32)
Trade payables (Note-33)	9,566.69	9,474.66	92.03	1%
Other financial liabilities (Note-34) are repayable in instalmentsas perthe Other current 1,255.36 1,260.33 awards acquisition,tariff adjustments, (4.97) 0% over a liabilities (Note-35)	21,251.94	21,970.54	(718.60)	(3)%
Provisions (Note-36)	6,412.48	6,376.21	36.27	1%
Total	79,461.40	78,304.16	1,157.24	1%

Borrowings (Note-31) comprise of short-term borrowings by and current maturities 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. have increased Short-term borrowings outstanding as on 31 March 2025 were 21,750.00 crore as against 16,704.09 crore as on 31 March 2024. tion detailed as under: fluctua

Current financial liabilities comprise ofcurrentmaturities . The ofleaseliabilities same has decreased from 162.87 crore as at 31 March 2024 to 96.92 crore as at 31 March 2025.

Trade payables (Note-33) mainly comprise amount payable towards supply of goods & services etc. Trade payables have increased by 92.03 crore.

Other current financial 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:

Crore

Particulars	As at March 31
	2025	2024
Interest accrued but not due on borrowings	2,099.27	2,449.72

Particulars	As at March 31
	2025	2024
Payables for capital expenditure	13,520.06	13,972.92
Other payables - Contractual	2,469.46	2,454.81
Others	3,163.15	3,093.09

Other current financial due to decrease in payables for capital expenditure by 452.86 crore and decrease in Interest accrued but not due on borrowings by 350.45 crore.

Other current liabilities mainly consist of advances from customers & others and statutory dues. Other current liabilitieshave decreased by 4.97 crore.

Current liabilities - Provisions (Note-36) mainly comprises of provisions for employee benefits, obligations incidental arbitration toland and others. During the year current liabilities-provisions have increased by 36.27 crore. The main reason for the same is increase in provision for Tariff adjustments by 190.94 crore, increase in the provision for employee benefits 136.30 crore and increase in Arbitration awards by 57.56 crore. However, same is offset by of long-term decrease in the provision for obligation incidental to land acquisition by 357.52 crore.

9. Deferred revenue (Note-37)

Deferred revenue consists of income from foreign currency

Crore

account of:	2025	2024
Income from foreign currency	2,240.06	2,328.01

Foreign exchange rate variation (FERV) on foreign currency loans and interest thereon is recoverable from/payable to the customers in line with the TariffRegulations. Keeping in view liabilities (Note 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-39 & Note-40)

Crore

Sl. No. Revenue	2024-25	2023-24
1 Energy sales	1,64,220.33	1,56,155.82
2 Sale of energy through trading	3,837.68	3,990.52
3 Consultancy&other period 2019-24, the Orders are awaited in 166.47 170.59 including seven stations
4 Lease rentals on assets on operating lease	19.58	19.58 2024, in
Revenue	1,68,244.06	1,60,336.51
5 Interest from beneficiaries	1,624.59	1,512.58
6 Energy internally consumed	101.59	77.90
7 Interest income on assets under finance lease	5.27	23.81
8 Recognized from government grants	4.13	4.00
9 Provision	-	16.48
- Tariff adjustment and others		in the
10 Sale of Gypsum	57.73	23.92
11 Income from Trading of ESCerts	-	13.75
Other operating revenues	1,793.31	1,672.44
Revenue from operations	1,70,037.37	1,62,008.95
12 Other income	4,376.12	3,698.32
Total income	1,74,413.49	1,65,707.27

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 2024-25 is 1,74,413.49 crore as against 1,65,707.27 crore in the previous year registering an increase of 5%. 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 Regulations discussed below:

Tariff for computation of sale of energy notified CERCvidenotificationdated15March2024 egulations Tariff Regulations 2024, effective for the period 1

2024 to 31 March 2029. Further, CERC vide notification dated 4 February 2025 Regulatory Commission (Terms and Conditions of Tariff) (First Amendment) Regulations, 2025.

Sales have been provisionally recognized based on principles enunciated in Tariff Regulations, amended from time to time. While CERC has issued provisional tariff orders in respect of forty-seven stations for the tariff respectofelevenstations have been commissioned during the period 2019-24. As per Regulation 10(4) of Tariff case of the existing projects, the continue to bill the beneficiaries at the approved by the Commission and applicable as on 31 March 2024 for the period starting approval of final capacity charges. In case of new projects, which got commercialized from 1 April 2024 and projects where tariff approved and applicable as on 31 March 2024 is pending from CERC, billing is done based on capacity charges as filed with CERC in tariff petition. Energy charges are billed as per the operational norms specified Regulations 2024.

Elements of Total income are discussed below:

Energy sales

Your Company sells electricity to bulk customers, mainly electricity utilities owned byState year, Your 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 for the financial year 2024-25 was 1,64,220.33 crore constituting94% of the Total income. The income from energy sales has increasedby year 5% over the previous year’s income of 1,56,155.82 crore. Capacity charges provisionally billed to beneficiaries the year ended 31 March 2025 is 55,310.89 crore (FY 2023-24: 51,405.34 crore). Energy and other charges norms specified in the arebilledaspertheoperational Regulations 2024. The amount billed for the year ended 31 March 2025 is 95,729.18 crore (FY 2023-24: 96,337.27 crore).

Capacity charges for the year ended 31 March 2025 have been provisionally recognized considering the provisions of CERC Tariff 63,930.32 crore (FY 2023-24: 54,458.51 crore). Energy and Other charges for the year ended 31 March 2025 have been recognized at 98,139.16 crore (FY 2023-24: 98,307.09 crore) as per R 2024. theoperational normsspecified intothe

Capacity charges for the year ended 31 March 2025 include the Central Electricity 1,331.55 crore (FY 2023-24: 1,661.51 crore) pertaining to earlier years on account of impactofCERCordersand provides that where other adjustments. Energyandotherchargesfortheyear recovered is less/more than the ended 31 March 2025 include (-) 451.85 crore (FY 2023-24: 327.15 crore) pertaining to earlier years on account of revision of energy charges due to grade slippages and other adjustments. Sales for the year ended 31 March 2025 also include (-) 140.21 crore (FY 2023-24: Nil) on account of income tax recoverable from the beneficiaries as per Regulations, 2004 and 109.87 crore (FY 2023-24: 124.70 crore) on account of deferred tax materialized which is recoverable shall from beneficiaries as per Regulations, 2024. Energy sales include electricity duty amounting to from 1 April2024till 1,625.65 crore (FY 2023-24: 1,668.20 crore).

The average tariff for the financial year 2024-25 4.70/kWh as against 4.61/kWh for the previous year. The average tariff includes adjustments pertaining to previous years. If the impact of such adjustments were to be excluded, theaveragetariff wo uld be 4.67/kWh in the financial year 2024-25asagainst 4.55/kWh in the previous year.

Sale of energy through trading

Your Company purchases power from the developers and sells it to DISCOMs on a principal-to-principal basis. During for sales the financial of energy purchased from solar power plants set up under National Solar Mission of 3,837.68 crore (FY 2023-24: 3,990.52 crore).

Consultancy and other services project During the financial management and supervision fees amounted to 166.47 crore asagainst sParticular 170.59croreinthepreviousfinancialyear. for lease Leaserentalsonassetsonoperating

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

	2024-25	2023-24
Interest from
Advance to contractors and suppliers	97.27	113.65
Non-current trade receivables	97.69	155.96
Loan to subsidiary companies	46.93	94.29
Loan to employees	66.18	62.98
Deposits with banks	102.58	218.40
Income tax refunds	-	296.71
Others	65.50	107.38
Dividend from subsidiaries, joint ventures and other investments	2,101.48	1,639.08
year 2024-25 (FY 2023
Other non-operating

Interest from beneficiaries

CERCRegulations the truing-up, tariff approved thetariff 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 1,624.59 crore (FY 2023-24: 1,512.58 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 is charges. The value of energy internally consumed during the financial 101.59 crore as compared to 77.90 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 a power station 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 5.27 crore has been recognised in the financialyear 2024-25 as compared to 23.81 crore in the previous financial year.

Other income (Note-40)

The break-up of other income is as under:

Crore

Particulars	2024-25	2023-24
Surcharge from beneficiaries	322.44	303.42
Provisions written back	621.57	215.47
Sale of scrap	332.67	180.60
Others	536.13	330.55
Total	4,390.44	3,718.49
Less: Transferred to EDC (net) / development of coal mines	14.32	20.17
Net other income	4,376.12	3,698.32

Other income has increased by 677.80 crore mainly due to increase in dividend income, provisions written back and sale of scrap. However, same is offset to some extent by decrease in interest on deposits with banks and income tax refunds.

2. Expenses (Statement of Profit & Loss and Note-41, 42, 43, 44 & 45) 2.1 Expenses related to operations

FY	2024-25		2023-24
Commercial generation (MUs)		3,72,800		3,60,596
Expenses	Crore	per kWh	Crore	per kWh
Fuel cost	97,060.24	2.60	94,037.49	2.61
Employee benefits expense	5,724.67	0.15	5,670.10	0.16
Other expenses	18,111.60	0.49	15,213.43	0.42
Total	1,20,896.51	3.24	1,14,921.02	3.19

Expenses indicated above includes expenses of consultancy and coal mining.

The expenditure incurred on fuel, employee year 2024-25benefits and other expenses for the financial year 2024-was 1,20,896.51 crore as against the expenditure of

1,14,921.02 crore incurred during the previous year. In terms of expenses per unit of power produced, it was 3.24 per unit in the financial year 2024-25 as against 3.19 per unit in the previous year. These components are discussed below.

2.1.1 Fuel cost (Note-41)

Expenditure on fuel was 97,060.24 crore in the financial year 2024-25 in comparisonto expenses, training and 94,037.49crore in the financial year 2023-24. The fuel-wise break-up of fuel is detailed as under:

Crore

Fuel Type	2024-25	2023-24
Coal	90,983.54	87,985.99
Gas	4,298.55	4,604.50
Naphtha	3.31	2.91
Oil	1,208.29	1,285.57
Biomass pellets and other chemicals	566.55	158.52
Total	97,060.24	94,037.49

Includes the cost of captive coal 6,432.93 crore (FY 2023-24: 4,383.95 crore) & adjustment due to Intra company elimination by (-) 7,734.21 crore (FY 2023-24: (-) 5,579.79 crore). Includes adjustment related toearlier costs for the years, (-) 217.34 crore (FY 2023-24: (-) 4.88 crore). The expenditure towards fuel has increased by 4.40% due to price variation mostly on account of settlement of grade variation and surface transportation charge (STC) claims. Further, there is decrease in fuel cost by 0.96% because of less consumption of costlier imported coal in the current period. There is also a decrease of 0.23% in coal cost due to previous year coal cost adjustment. These expenses account for approximately 80% of operational expenditure in the financial year 2024-25.

2.1.2 Employee benefits expense (Note-42)

Employee benefits expense includes salaries & wages, bonus, allowances, benefits, contribution to provident & other funds and welfare expenses. Employee benefits expense have marginally increased to 5,724.67 crore in the financial year 2024-25 from 5,670.10 crore in the financial year 2023-24. However, in terms of expenses per unit of generation, it has marginally decreased to 0.15 in the financial 0.16 in the previous year. These expenses account for approximately 5% of operational expenditure in the financial year 2024-25.

2.1.3 Other expenses (Note-45)

Other expenses primarily consist of the expenses for repair and maintenance of plant & equipment, buildings, cost of captive coal produced, 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 utilization and marketing amortization and recruitment and provisions. Other expenses increased to 18,111.60 crore in the financial year 2024-25 from financial

15,213.43 crore in the financial year 2023-24. In terms of expenses per unit of generation, it has increased to 0.49 in the financial year 2024-25 as compared to 0.42 in the previous year. These expenses account for approximately year 2024-25. 15%ofoperational

2.2 Energy purchased for trading

Company has incurred expenditure of 3,767.70 crore in the financial year 2024-25 as compared to 3,881.66 crore in the previous year on purchaseofenergyfortrading en back and disclosed as an mainly from solar power plants set up under National Solar Mission.

2.3 Finance costs (Note-43) year 2024-25 areThe finance 11,057.04 crore in comparison to 10,250.82 crore in . The details of interest and thefinancial other borrowing costs are tabulated below:

Crore

Particulars	2024-25	2023-24
Finance costs on financial liabilities measured at amortized cost
Borrowings-Domestic/Foreign-	11,026.03	11,434.38
Bonds/Loans/Notes
Cash credit, Commercial papers and others	1,408.57	868.93
Sub-total	12,434.60	12,303.31
Exchange differences regarded as an adjustment to borrowing costs	727.48	82.90
Others	80.30	42.77
Finance costs before EDC	13,242.38	12,428.98
Less: Transferred to
Expenditure during construction period (net)	2,050.87	1,993.72
Development of coal mines	134.47	184.44
Total Finance costs	11,057.04	10,250.82

Finance costs has increased by 8% over previous financial year mainly due to increase in exchange regarded as an adjustment to borrowing costs.

2.4 Depreciation, amortization and impairment expense (Note-44)

The depreciation,

Loss during the chargedto Statement of Profit financial year 2024-25 was 15,055.84 crore as compared to 13,943.15 crore the registering an increase of 8%. This is mainly due to increase in the gross PPE by 15,251.18 crore in the financial year 2024-25 over the previous year.

2.5 Exceptional items in the Statement of Profit and Loss (Note-49)

The Company has an investment of 834.55 crore in Ratnagiri Gas & Power Pvt. Ltd. (RGPPL). The entire investment was considered impaired and provided for prior to 31 March 2023 based on the financial position of the Subsidiary. During the previous year 2023-24, a review was carried out based on the financial the Subsidiary and fair valuation of investments in RGPPL, theprovisionmadewas Exceptional item in the Statement of Profit and Loss.

3. Profit before tax & Regulatory deferral account balances

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

Crore

Particulars	2024-25	2023-24
Total Income	1,74,413.49	1,65,707.27
Less:
Expenditure related to operations	1,20,896.51	1,14,921.02
Electricity purchased for trading	3,767.70	3,881.66
Finance costs	11,057.04	10,250.82
Depreciation, amortisation and impairment expense	15,055.84	13,943.15
Add:
Exceptional items	-	834.55
Profit before tax and regulatory deferral account balances	23,636.40	23,545.17

4. Tax expense (Note-53) Provision for current tax

A provision of 3,657.81 crore has been made towards current tax for the financial year 2024-25 as against the provision of 3,941.73 crore made for the financial year 2023-24. Current tax provision is mainly lower because of reversal of tax provision of 445.02 crore pertaining to earlier years as against reversal of tax provision of 152.63 crore pertaining to earlier years during previous year.

Provision for deferred tax

Net increase in deferred tax liability during the year amounting to 3,641.88 crore (previous year: 2,658.30 crore) has been debited to the Statement of Profit and Loss.

Crore

Particulars	2024-25	2023-24
Provision for current year	4,102.83	4,094.36
Adjustments for earlier years	(445.02)	(152.63)
Current tax	3,657.81	3,941.73
Deferred tax liability	3,014.39	4,093.09
MAT Credit	627.49	(1,434.79)
Deferred tax	3,641.88	2,658.30
Total Tax expense	7,299.69	6,600.03

5. Net movement in regulatory deferral account balances (net of tax) (Note-68)

Net movements in regulatory deferral account balances (net of tax) for the financialyear 2024-25 is 3,312.70 crore in comparison to 1,134.25 crore for the financial year 2023-24 as detailed below:

Crore

Particulars	2024-25	2023-24
Exchange differences	791.34	(1,262.44)
Pay Revision	(42.78)	(6.56)
Deferredtax	3,573.13	2,808.05
Arbitration	37.89	-
Sub-total (i)	4,359.58	1,539.05
Amount realized/ recognized during the year (ii)	(345.55)	(164.67)
Net movement in regulatory deferral account balances (i)+(ii) (I)	4,014.03	1,374.38 up
Tax on net movements in regulatory deferral account balances (II)	701.33	240.13
Total amount recognized in the statement of profit and loss [I-II]	3,312.70	1,134.25

Refer Note-68 of financial statements for detailed disclosures. activities was

7. Other comprehensive income

Other comprehensive income net of tax for the financial year 2024-25 is (-) 188.31 crore in comparison to 15.26 crore for the 2024-25, net actuarial loss on defined (-) 194.73 crore, while net loss on fair value of equity instruments is (-) 27.60 crore as against net actuarial loss on defined benefit plan and net gain on fair value of equity instrument amounting to (-) 128.00 crore and 120.90 crore respectively in the previous year.

C. Cash flows

Statement of cash flows comprises of cash flows from operating activities.Net cash generated from operating increased to 41,318.27 crore during the financial 25 as compared to 34,756.47 crore in the previous year. activities arise majorly from Cashoutflowsoninvesting power projects and investments expenditureon setting in joint ventures & subsidiaries. Cash inflows arise from interest from banks and dividend income from joint ventures and subsidiaries. Cash invested on purchase of from 17,444.27 crore in financial year 2023-24 to 20,954.58 crore in financial 2024-25. Cash inflow on account ofdividendreceived ear 2024-25 is given has increased from 1,765.59 crore in previous year to 2,324.97 crore in the financial all the investing 20,545.69 crore in the financial 25 as compared to 15,043.72 crore in the previous year.

Particulars	2024-25	2023-24
Profit before tax and regulatory deferral account balances	23,636.40	23,545.17
Less: Tax expense	7,299.69	6,600.03
Add: Net movement in regulatory deferral account balances (net of tax)	3,312.70	1,134.25
Profit after tax	19,649.41	18,079.39

The profit of the Company after tax is tabulated below:

Crore

During the financial year 2024-25, the Company had an inflow of 16,032.05 crore from non-current borrowings as against 16,334.16 in the previous year and net inflow of 6,870.62 crore from current borrowings as against net inflow of 3,907.17 crore in the previous year. Cash used for repayment of non-current borrowings during the financial year 2024-25 was 22,385.16 crore as against 20,048.84 crore repaid in the previous year. Interest paid during the year was 13,433.31 crore as compared to 12,383.23 crore during the previous year. Cash used for paying dividend was 7,999.75 crore. Thus, from financing has an 20,967.59 crore as against an outflow of 19,518.72 crore in the previous year. activities wsonvarious flo Cash,cashequivalentsandcash is summarized below:

Crore

	2024-25	2023-24
Opening cash & cash	197.16	3.13
For year 2023-24.
equivalents
benefit plans is
Net cash from operating	41,318.27	34,756.47
activities
Net cash used in investing	(20,545.69)	(15,043.72)
sactivitie
Net cash inflow/(outflow)	(20,967.59)	(19,518.72)
fromfinancing
Change in cash and cash	(195.01)	194.03
equivalents
Closing cash & cash	2.15	197.16
equivalents

FINANCIAL SUMMARY OF SUBSIDIARY COMPANIES

The Company has 11 subsidiary companies as on 31 March 2025, out of which 5 (NESCL, NVVN, NML, NEEPCO & NPUNL) are wholly owned by the Company. A summary of the financial performance of the subsidiary companies year duringthefinancial year 2024-25. Considering Crore

Sl. No. Company	NTPC’s Investment in equity (net of impairment)	Total Income	Profit/ (Loss) for the year
1 NTPC Electric Supply Company Ltd. (NESCL)	0.08	0.89	(0.58)
2 Bhartiya Rail Bijlee Company Ltd. (BRBCL)	1,774.12	3,667.27	389.01
3 NTPC Vidyut Vyapar Nigam Ltd. (NVVN)	30.00	5,232.62	205.68

Sl. No. Company	NTPC’s Investment in equity (net of impairment)	Total Income	Profit/ (Loss) for the year
4 Patratu Vidyut Utpadan Nigam Ltd. (PVUNL)	2,413.31	1.39	0.35
5 NTPC Mining Limited (NML)	197.10	4.18	2.62
6 North-Eastern Electric Power Corporation Ltd. (NEEPCO)	4,000.00	4,341.87	584.69
7 THDC India Ltd. (THDC)	7,500.00	2,737.10	730.95
8 NTPC Green Energy Limited of (NGEL)	7,500.00	2,465.70	474.12
9 NTPC EDMC Waste Solutions Pvt. Ltd. (NEWS)	0.15	0.01	-
10 Ratnagiri Gas & Power Pvt. Ltd. (RGPPL)	834.55	3,373.68	1,751.07
11 NTPC Parmanu Urja Nigam Ltd. (NPUNL)	0.05	-	-
Total	24,249.36	21,824.71	4,137.91

FINANCIAL SUMMARY OF JOINT VENTURE COMPANIES

Proportion of ownership and financial performance of joint venture companies for the financial year 2024-25 are given below:

Crore

Sl. No. Company	NTPC’s Ownership (%)	NTPC’s Investment in equity (net of impairment)	Total Income	Profit/ (Loss) for the year
A. Joint venture companies incorporated in India
1 Utility Powertech Ltd.	50.00	1.00	162.61	5.43
2 NTPC-GE Power Services Pvt. Ltd.	50.00	3.00	727.66	24.97
3 NTPC-SAIL Power Co. Ltd.	50.00	490.25	4,082.81	393.53
4 NTPC Tamil Nadu Energy Co. Ltd.	50.00	1,466.40	5,066.53	497.51
5 Aravali Power Company Pvt. Ltd.	50.00	1,433.01	5,510.12	751.94
6 Meja Urja Nigam Pvt. Ltd.	50.00	1,826.33	5,202.32	1,262.42
7 in investing NTPC-BHEL Power Projects Pvt. Ltd.	50.00	-	8.03	(17.01)
8 National High Power Test Laboratory Pvt. Ltd.	12.50	16.96	37.94	18.86
9 Transformers and Electricals Kerala Ltd.	44.60	5.47	205.20	6.39
10 Energy Efficiency Services Ltd.	39.25	645.80	1,778.86	(556.22)

Sl. Company No.	NTPC’s Ownership (%)	NTPC’s Investment in equity (net of impairment)	Total Income	Profit/ (Loss) for the year
es, projections and estimates, contain words or objectiv 11 CILNTPCUrja Pvt. Ltd.	50.00	0.08	0.02	0.01
12 Anushakti Vidyut Nigam Ltd.	49.00	0.05	0.00	(2.94)
13 Hindustan Urvarak and Rasayan Ltd.	29.67	2,642.99	15,909.71	1,382.07
14 Jhabua Power Limited	50.00	325.00	1,814.66	161.28
B. Joint venture companies incorporated outside India
15 Trincomalee Power Company Ltd.	50.00	1.36	0.02	(0.27)
16 Bangladesh-India Friendship Power Co. Pvt. Ltd.	50.00	1,324.02	5,246.52	1,048.08
Total		10,181.72	45,753.01	4,976.05

Consolidated financial results

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

Crore

Particulars	2024-25	2023-24
Total income	1,90,862.45	1,81,165.86
Profit before tax and regulatory deferral account balances	28,496.41	27,141.45
Tax Expense	8,245.18	6,809.20
Profit before regulatory deferral account balances	20,251.23	20,332.25
Net movement in regulatory deferral account balances (net of tax)	3,701.92	1,000.20
Profit for the year	23,953.15	21,332.45
Other comprehensive income (net of tax)	(330.34)	(24.61)
Total comprehensive income for the year	23,622.81	21,307.84

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis and in the Directors’ Report, describing the Company’s

phrases such as "will", "aim", "believe", "expect", "intend", "estimate","plan", 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 Obligations and Disclosure on theseforward-looking statements. and Guidelines 2015 (‘Listing For and on behalf of the Board of Directors

Sd/-

(Gurdeep Singh)

Chairman & Managing Director

Place: New Delhi

Date: 07 August 2025