SJVN Ltd Directors Report.

Dear Members,

Your Directors are pleased to present the Thirty Third Directors Report of the Company for the year ended March 31, 2021 along with the Audited Statement of Accounts, Report of Auditors and Comments of the Comptroller and Auditor General of India. for the year ending 31 Thefollowingfinancial st March 2021 briefly encapsulate the performance of your company: -

1. FINANCIAL HIGHLIGHTS

(Rs. in crore)

STANDALONE CONSOLIDATED
PARTICULARS 2020-21 2019-20 2020-21 2019-20
REVENUE
Revenue from Operations 2490.83 2707.61 2485.39 2702.80
Other Income 722.24 387.63 737.45 400.71
Total Revenue 3213.07 3095.24 3222.84 3103.51
EXPENSES
Employees Benefits Expense 320.55 307.68 317.22 308.41
Finance Cost (2.85) 268.07 (2.85) 268.07
Depreciation and Amortization 393.27 384.09 393.27 384.09
Expenses
Other Expenses 368.82 362.89 369.29 363.87
Total Expenses 1079.79 1322.73 1076.93 1324.44
Profit before exceptional items, net movement in regulatory deferral account balance and tax 2133.28 1772.51 2145.91 1779.07
Exceptional items 293.44 6.09 293.44 6.09
Profit before net movement in regulatory deferral account balance and tax 1839.84 1766.42 1856.30 1778.56
Net movement in regulatory deferral account balance 328.83 192.94 328.83 192.94
Profit before share of net profit of joint ventures accounted for using equity method and tax 2168.67 1959.36 2181.30 1965.90
Share in Profit of JVs & Associates - - 3.83 5.58
Profit before tax 2168.67 1959.36 2185.13 1971.50
Tax Expenses:
- Current Tax 316.27 306.82 320.12 309.57
- Tax expense pertaining to earlier years - 171.92 4.00 171.98
- Tax expense pertaining to regulatory deferral account balance 57.45 33.71 57.45 33.71
- Deferred Tax 161.91 (110.52) 161.91 (110.52)
Profit for the Year 1633.04 1557.43 1645.61 1566.76
Other comprehensive Income/ (Expense) (Net off tax expense) (1.66) (14.20) (1.66) (14.20)
Total Comprehensive Income for the year 1631.38 1543.23 1643.95 1552.56

2. GENERATION

Gross Energy Generation from various operational plants of the Company during FY 2020-21 is as under: -

(Million Units (MU)

Plant 2020-21 2019-20
NJHPS 7098.925 7445.431
RHPS 1995.335 2098.031
KWPS 48.261 55.042
CSPS 7.219 6.581
SWPP 73.750 73.069
Total 9223.490 9678.154

3. REVENUE AND PROFITS

The standalone revenue from operation decreased by Rs. 216.78 crore to Rs. 2490.83 crore during the financial year 2020-21 compared to Rs. 2707.61 crore during the previous year. The standalone Profit After Tax (PAT) increased by Rs. 75.61 crore to Rs. 1633.04 crore against Rs. 1557.43 crore for the previous year.

The subsidiary and Joint Venture companies are under Survey & Investigation/ Construction except CPTC, which is in operation. Consolidated accounts with the subsidiary & joint venture companies has resulted in increase profitof consolidated group byin Rs. 12.57 crore, PY Rs. 9.33 crore mainly due to inclusion of proportionate share of profit of CPTC and interest income of subsidiary companies.

4. TRANSFER TO RESERVES

During the year no amount was transferred to Reserves of the Company.

5. DIVIDEND

During the year, an interim dividend of Rs. 1.80 per share has been paid in the month of March 2021. In addition, your Board has recommended dividend ofa final Rs. 0.40/- per Share. Thus, subject to your approval, a total dividend of Rs. 2.20 per share (Rs. 864.55 crore) is proposed to be paid for FY 2020-21 against Rs. 2.20 per share (Rs. 864.55 crore) paid during the previous year.

6. PROJECTS UNDER CONSTRUCTION i) ARUN-3 HEP (900 MW):

Arun-3 Hydro Electric project (900 MW) is located on Arun River in Sankhuwasabha District of Eastern Nepal. The project is a run-off-the-river scheme with 4 hours peaking and will generate 3924 MU energy annually. SJVN bagged the project through International Competitive Bidding. Memorandum of Understanding for the execution of this Project was signed with Government of Nepal (GoN) on 02.03.2008. The project was allotted to SJVN on BOOT basis, to be operated by SJVN for 25 years after construction and thereafter to transfer back to the Government of Nepal. SJVN Arun-3 Power Development Company Pvt. Ltd (SAPDC) was registered on 25.04.2013 under Nepalese Companies Act, 2063 with an aim to plan, promote, organize and execute the project.

Techno-Economic Approval of the project was accorded by CEA, Government of India (GoI) on 09.06.2014. Project Development Agreement (PDA) was signed with Investment Board of Nepal (IBN), GoN on 25.11.2014. As per PDA, project is scheduled to be completed in 5 years reckoned from financial closure. Financial Closure was achieved on 06.02.2020 for Rs. 6,333.48 Crores through consortium of five Indian and two Nepalese banks.

Environment Impact Assessment report of the project was approved by Ministry of Science, Technology & Environment, GoN on 12.08.2015. Private land required for the project has been registered in the name of SAPDC. Lease agreement for diversion of 96.97 ha forest land was signed on 23.08.2017 and for balance 26.25 ha land, lease agreement was signed on 06.02.2018.

Government of India has accorded investment approval for generation component of the project at an estimated cost of Rs. 5,723.72 Crores at May 2015 price level. Government of Nepal has issued generation license and transmission license on 04.05.2018 and 12.02.2019 respectively.

Honble Prime Ministers of India and Nepal jointly laid the foundation stone of this project on 11.05.2018. Main works are divided into four packages namely Dam works and 3.1 km HRT (C-1 Package); 8.76 km HRT, Surge Shaft, Power House, TRT (C-2 Package); Hydro Mechanical works (C-3 Package) and Electro Mechanical works (C-4 Package). Civil Package-1 consisting of Dam area complex civil works plus 3.1 km Head Race Tunnel (HRT) was awarded to M/s Jaiprakash Associates Limited on 22.09.2017. Work is in progress at all fronts. Diversion

Tunnel has been completed and river diverted on 01.02.2021. Dam excavation at left bank, right bank and in dam pit is in progress and 77% have been completed. Excavation of intake tunnels has been completed and slope stabilization works in progress. HRT excavation under this package is in progress and 2.59 km out of 3.1 km has been completed. Overt lining is also started and 1.8 % completed.

Civil package-2 consisting of Power House civil works plus 8.6 km HRT was awarded on 19.03.2018 to M/s Patel Engineering Limited and contract agreement signed on 29.03.2018. Work at all fronts is under progress. All access adits to HRT, powerhouse, pressure shafts, machine hall, transformer hall and butterfly valve house has been completed. 69% excavation of machine hall and 99% excavation of transformer hall have been completed. Pressure shafts, Butterfly valve house and collection gallery is being excavated. 88% excavation of pilot hole of surge shaft is completed. Excavation of HRT is under progress and 3.24 km out of 8.7 km heading excavation has been completed.

HM Package and EM Package were awarded on 11.04.2018 and 30.04.2018 respectively. Approval of design and drawings accorded, procurement/ fabrication of different components is in advance stage. Supply of components has been started and some part of HM and EM components received at site.

Construction power: The work of 33 kV DC transmission line for construction power from Tirtire sub-station to powerhouse site and to dam site is in progress. 99% poles have been erected at site.

Power Evacuation System of Arun-3 HEP:

Power Evacuation system consists of 310 km long 400 kV DC transmission line from Diding (project area) in Nepal through

Dhalkebar to Muzzafarpur, India. Lately, however, the substation within India is changed to Sitamarhi. Out of this, Nepal portion of 217 km from Arun-3 power house (Diding) to Bathnaha (Nepal Border) is being constructed by SAPDC. Government of India accorded investment approval amounting to Rs. 1,236.13 Crores at June, 2017 Price Level on 08.03.2019 for the Nepal portion of transmission line to be constructed by SAPDC. MoU has been signed with PGCIL for project management consultancy for execution of transmission line stretch in Nepal. Construction work is to be carried out through five packages, one substation package and two conductor packages have been awarded and the work is in progress. 13% tower foundation completed and erection of towers is in progress.

ii) NAITWAR MORI HEP (60 MW):

Naitwar Mori Hydro Electric Project having installed capacity of 60

MW is located on River Tons, a major tributary of River Yamuna in Uttarkashi District of Uttarakhand. The project is designed as run-of-the-river project and has the potential to generate 265.5 MU of energy in a 90% dependable year.

Memorandum of Understanding for execution of Naitwar Mori HEP was signed with the Government of Uttarakhand (GoUK) on 21.11.2005. Techno-economic approval of the project was accorded by CEA, GoI on 02.03.2010. Environment clearance was accorded on 16.06.2016 and stage-II Forest clearance on 05.08.2016. For diversion of Forest land required for the project, lease agreement was signed on 01.12.2017. Investment approval for an estimated cost of Rs. 648.33 Crores was accorded by GoI on 16.10.2017 at December, 2016 Price Level as per which, project is to be completed in 48 months from date of award of Major Civil Works i.e. from 05.12.2017.

Honble Union Minister of State (Independent Charge) for Power and Honble Chief Minister of Uttarakhand laid the foundation stone of Project at Mori on 30.03.2018. Main works are divided into three packages namely Civil works i.e. Barrage, Desilting Tank, Intake and Power Channel, 4.17 km HRT, Surge Shaft, Power House, TRT; Hydro Mechanical works Package and Electro Mechanical works Package. Main Civil Works at various fronts are in full swing. River was diverted on 31.01.2019 and Barrage concreting is in progress and 77% completed. Work of RCC retaining walls and construction of u/s and d/s coffer dam is completed. Excavation of desilting Tank has been completed and concreting is in progress. Excavation of HRT from all five faces completed and lining has been started. 34% lining of HRT is completed. 66% excavation of Surge Shaft and 81% excavation of Pressure Shaft has been completed. Excavation of Cable-cum-Ventilation Tunnel, Main Access Tunnel, Adit to Surge Shaft, excavation of Adit from MAT to MIV floor, and excavation of Pressure Shaft bottom horizontal branches has been completed. Excavation of Machine Hall and concreting of beams and columns for EOT Crane erection completed. 99% excavation of Transformer Hall completed. 58% excavation of both Draft Tubes has been completed. Excavation of Bus Duct, Tail Race Tunnel and Switchyard is in progress. Hydro-Mechanical works package was awarded on 18.04.2018 to M/s GMW Private Ltd. Approval of design and drawings accorded, procurement/ fabrication of different components is in advance stage. Supply of components has been started and major part of HM components received at site. Erection of Radial Gate in Bay-1 of Barrage is in progress.

Electro-Mechanical works package was awarded on 11.06.2018 to M/s Voith Hydro Private Ltd. Approval of design and drawings accorded, procurement/ fabrication of different components is in advance stage. Supply of components has been started and some part of EM components received at site. Erection of Draft Tube liner in Unit-1 & Unit-2 in pit area completed and erection of spiral casing in Unit-1 is in progress. Erection of EOT Crane upto Unit-1 completed. Power Evacuation System of NMHEP- LoA for construction of 220 kV Transmission line from NMHEP Switchyard to HPPTCL network in Snail issued to M/s KEC International Ltd. on 30.04.2021 with completion period of 12 months. Detailed survey of final Route (approx. 37 km) and tree enumeration work completed. Field work for identification of land completed on 18.07.2021. Revenue records have been collected and verification by Revenue dept. under process.

iii) BUXAR THERMAL POWER PROJECT (1320 MW)

An MOU had been signed between SJVN, Bihar State Power Holding Company Limited and Bihar Power Infrastructure Company for the development of 1320 MW Thermal Power Project as per Supercritical Technology at village Chausa in District Buxar of Bihar on 17.01.2013. packages. All packages i.e. two tower SJVN acquired the Project Executing Company i.e. Buxar Bijlee Company Private Limited on 04.07.2013. The name of Buxar Bijlee Company Private Limited was changed to SJVN Thermal Private Limited (STPL), a wholly owned subsidiary company of SJVN Limited on 17.10.2013.

Investment approval for carrying out pre-construction activities of the project amounting to Rs. 436.68 Crores was accorded by GoI on 26.05.2015. MoEF & CC has accorded Environment Clearance on 28.02.2017. Mutation of 1058.335 acre private land for project components was completed on 12.12.2017 and land transferred in the name of STPL. Consent to Establish (NOC) was granted by Bihar State Pollution Control Board on 03.09.2019.

CCEA accorded investment approval of main works on 08.03.2019, amounting to Rs. 10,439.09 Crores. Foundation stone for the project was laid by Honble Prime Minister of India on 09.03.2019. Power Evacuation system- Power Purchase Agreement (PPA) for the project had already been signed with Bihar State Electricity Board (later Bihar State Power Holding Company Limited, BSPHCL) for 85% share of power generation on bus bar rate. PPA (supplementary agreement) signed with BSPHCL on 09.04.2021 for construction of transmission system for Power evacuation. Tendering work for construction of transmission line by BSPTCL is in progress. Main Plant works: Single EPC was awarded to M/s L&T on 22.06.2019.

Construction activities are in progress. Survey and investigation work of Borehole in Turbine Generator (TG) area and water pipeline corridor has been completed. Work for the construction of boundary wall has been completed. Area grading work in Main Plant area is in progress and 76% excavation completed. Excavation of Cooling

Tower completed and foundation work is in progress. Piling work of Boiler-I, Chimney, Coal Mill-I&II, STG-I, Bottom Ash Hooper-I&II,

Demineralisation Plant, Cooling Water pit area and Central control room completed. Piling work of Boiler-II, ESP-II, STG-II, Cooling Water system, Duct Pipe Rack and Fans for Unit-1 is in progress. Structure erection of Boiler-I, ESP-I and Central Control room is in progress. Foundation work of Boiler-1, ESP-I, Chimney, Switchyard, FGD Absorber-I, Track Hooper, Wagon Trippler and Water Treatment Plant is in progress. Civil works of Demineralization water tanks completed on 28.01.2021. Civil foundation of STG building of Unit-1 was completed on 10.02.2021.

PMC of main plant was awarded to NTPC Ltd. on 30.05.2019. Schedule, Engineering coordination, Quality Coordination procedure, Quality assurance program, General layout plan, Vendor list, Organization chart and Manpower planning is finalized.Review engineering, project monitoring, inspection and site supervision are in progress.

85% drawings/ documents submitted by L&T have been approved. The DPR for Rail infrastructure was approved by East Central Railway (ECR), Hazipur on 05.09.2019. Long-term domestic linkage from Coal India Limited (CIL) has been granted by Ministry of Coal. For coal linkage, Amrapali and Magadh coal blocks have been identifiedas source by Central CoalfieldsLtd. (CCL). Acquisition of land for railway infrastructure, land for water pipeline corridor, Main Gate & extra land, is under process. PMC of rail infrastructure including tendering and award of rail infrastructure works has been awarded to M/s RITES Ltd. on 13.06.2019. Marking of major bridges and route survey has been completed by RITES. Work for supply of rails (Package-1), PSC sleepers (Package-2) and civil works in-Plant yard and railway portion (Package-3) have been awarded and procurement of materials is in progress. Remaining

Railways Packages are under tendering stage.

Infrastructure works for Office building, pre-fab Bachelor accommodation and Township have been awarded and construction activities are in progress.

Work for construction power i.e. construction of 33 kV line & 33 kV/11 kV sub-station has been completed and line is charged. The project is scheduled for commissioning by October, 2023.

iv) KHOLONGCHHU HEP (600 MW)

Kholongchhu Hydro Electric Project is located on river Kholongchhu in Bhutan. SJVN and Druk Green Power Corporation (DGPC), Bhutan is implementing this project in JV mode. A company ‘Kholongchhu Hydro Energy Ltd. (KHEL) was registered in Bhutan on 12.06.2015 with equal equity contribution. The project will generate 2568 MU of energy annually.

Inter-Governmental Agreement between Royal Government of Bhutan (RGoB) and Government of India (GoI) for implementation of project was signed on 22.04.2014. Honble Prime Minister of India laid the foundation stone of project on 16.06.2014. National Environment

Commission (NEC) of RGoB has accorded Environmental Clearance for the Project on 21.07.2014. Concession agreement was signed between KHEL and RGoB on 29.06.2020 at Thimphu in the presence of Honble Minister of External Affairs, GoI and Honble Foreign

Minister, RGoB.

Construction of bridges, 33 km approach roads to different work fronts, 132 kV D/C LILO Transmission Line (19 km), 33 KV overhead distribution line (30 km) and 132/33 kV Sub-station near Power House have been completed. Construction of site offices at Power House, Adits, Surge Shaft and pressure shaft has been completed and work at Dam site in progress. Construction of Colony at Duksum is in progress.

Main Civil works awarded in three packages (KC-1, KC-2, KC-3) on 04.03.2021 as under:

1. KC-1: Construction of River diversion works, Dam, Intake, Desilting Arrangement and HRT from RD 0.00 m to RD 2303.00 m including construction of Adit-1 awarded to M/s Jaiprakash Associates Limited.

2. KC-2: Construction of Head Race Tunnel from RD 2303.00 m to RD 14091.07 m including construction of Adits II, III, IV & V and Chaplangchhu Diversion Works awarded to M/s Valecha-Rigsar Joint Venture (Valecha-Rigsar JV).

3. KC-3: Construction of Head Race Tunnel from RD 14091.07 m to RD 15762.80 m including construction of Adit VI, Surge Shaft, Butterfly Valve Chamber, Pressure Shafts, Power House Complex and Tail Race Tunnel awarded to M/s Jaiprakash Associates Limited.

Mobilization by respective contractors is in progress. For debt funding of project, MoU has been signed between KHEL and consortium of PFC Ltd. & REC Ltd., India on 09.03.2021.

v) LUHRI HEP STAGE-1 (210 MW):

Luhri Hydro Electric Project Stage-1 is a Run-of-the-River (RoR) scheme with installed capacity of 210 MW, located on river Satluj, near village Nirth spread over Shimla and Kullu Districts of Himachal Pradesh. The project will generate 758 MU of electric energy in a 90% dependable year. Ground breaking ceremony of project was held in the presence of Honble Minister of Home Affairs, Government of India and Honble Chief Minister of Himachal Pradesh on 27.12.2019.

DPR of project was concurred by CEA for an estimated project cost of Rs. 1,912.59 Crores at July, 2017 price level. MoEF&CC has accorded Forest Clearance Stage-1 and Stage-2 on 19.09.2018 and 28.03.2019 respectively. Environmental Clearance was accorded on 17.03.2020. CCEA accorded investment approval amounting to Rs. 1,810.56 Crores for main works of the project on 04.11.2020 and sanction letter issued by Ministry of Power, GoI on 20.11.2020. Completion period of project is 62 months from date of issuance of sanction letter.

EPC package for main Civil & HM works awarded on 24.11.2020 to M/s Luhri Hydro Power Consortium (A consortium of Patel Engineering Ltd. and HES Infra Pvt. Ltd). Initial mobilization completed by the contractor and work at various fronts in progress. Bailey bridge for river crossing has been erected and is operational. Approach roads to Diversion Tunnel (DT) portals completed. Development of DT inlet portal completed and Heading excavation is in progress. Stripping/ benching of right bank slopes for Dam, Power house and TRC is also in progress.

For EM package, NIT was issued on 17.06.2020 and work awarded to M/s Voith Hydro Private Limited on 16.07.2021.

Identification of Land for Towers, ROW and statutory clearances for transmission line from power house to common pooling station at

Nanj completed and process for diversion of forest land/ acquisition of private land is in progress. Diversion of NH-5 is required for project construction which is being carried out through HPPWD and work is in full swing. Trace cutting has been completed on 11.02.2021 and formation width cutting, construction of breast & retaining walls is in progress.

Private land as required for construction of project is being purchased directly from land owners and some patch of land is being acquired as per LARR Act. Out of 13.90 ha private land being purchased directly, 11.75 ha purchased. Private land being acquired through Act is under acquisition process for which R&R schemes/ plans are under approval with Administration. vi) DHAULASIDH HEP (66 MW)

Dhaulasidh Hydro Electric Project with installed capacity of 66 MW is located on river Beas, in Hamirpur and Kangra districts of Himachal

Pradesh. The Project is a run-of-the-river scheme and will generate 304 MUs of electric energy in a 90% dependable year. MOU signed with Government of Himachal Pradesh on 25.09.2019. Ground breaking ceremony of project was held in the presence of Honble Minister of Home Affairs, Government of India and Honble Chief Minister of Himachal Pradesh on 27.12.2019.

Government of Himachal Pradesh accorded TEC of DPR on 25.06.2011.

Environmental Clearance was accorded by Government of India on 21.02.2013. MoEF&CC have accorded Forest Clearance Stage-1 and Stage-2 on 06.03.2012 and 11.08.2020 respectively. Investment approval amounting to Rs. 687.97 Crores for main works of the project accorded by MoP, GoI on 01.10.2020. Completion period of project is 54 months from date of commencement of construction works.

Private land required for project is being directly purchased from land owners and essential land (3430 kanal) has been purchased. 2309 kanal of Government land will be taken on lease basis which is under approval with GoHP.

Construction of approach road to Dam site (3125m) completed on 31.05.2021. Infra works i.e. Construction of office building & bachelor accommodation have been awarded on 23.02.2021 & 01.03.2021 respectively and work is in progress. For construction power, 9 km transmission line & sub-station completed and power is available at site.

EPC package for main Civil & HM works has been awarded to M/s Rithwik Projects Pvt. Ltd., Hyderabad on 06.05.2021 and mobilization is in progress. Road to diversion tunnel portal completed and construction of road dam top and power house is in progress. For EM works, tendering is in progress. For power evacuation system, site for pooling station has been finalized with STU. Preliminary & detailed survey work for transmission line from powerhouse to pooling station has been completed.

vii) 70 MW SOLAR POWER PROJECT TO BE SET UP IN GUJRAT:

Project was allotted/ awarded to SJVN by Gujrat Urja Vikas Nigam Limited (GUVNL) on 26.03.2021. Further, SJVN has issued LoA for the execution of project to M/s Refex Energy Limited on 06.05.2021.

PROJECTS UNDER PRE-CONSTRUCTION, SURVEY & INVESTIGATION:

i) SUNNI DAM HEP (382 MW): Sunni Dam HEP is a run-of-river type scheme situated on river Satluj near Khaira village in Shimla and Mandi districts of Himachal Pradesh.

The Project will generate 1382 MU of energy in a 90% dependable year. Government of Himachal Pradesh re-allotted the project on

“Stand Alone Basis” to SJVN on 29.08.2017. Investment approval for carrying out pre-construction activities amounting to Rs. 85.09 crores was accorded by GoI on 18.04.2018. MOU was signed with Government of Himachal Pradesh on 25.09.2019.

DPR of project has been concurred by CEA for an estimated project cost of Rs. 2475.35 Crores at July, 2020 price level on 11.02.2021. Environmental Clearance has been recommended by MoEF&CC, New Delhi on 07.01.2021.

For diversion of forest land, case after recommendation from GoHP submitted in MoEF&CC, New Delhi on 24.02.2021 is under process of approval. CAT plan approved by Forest Department, GoHP on 01.04.2021. For acquisition of private land, notification under section-11 issued by GoHP on 19.01.2021 and published in newspaper on 20.02.2021. R&R plan is under formulation with State Administration.

For evacuation of power from project, location of common pooling station has been finalized by CEA at village Nanj. Work for identification of land required for transmission line up to common pooling station has been awarded on 25.03.2021.

For investment approval of main works, draft PIB Memo submitted to MoP on 09.03.2021 and project cost vetted by CEA on 30.06.2021. EPC package for Civil & HM works is under tendering. Works for construction of exploratory drifts along Diversion Tunnel (DT) & Powerhouse complex/area have been awarded on 23.03.2021 & 09.04.2021 are in progress. Work for construction of Office building & Bachelor accommodation awarded on 30.06.2021.

ii) LUHRI HEP STAGE-2 (172 MW):

Luhri Hydro Electric Project Stage-2 is a run-of-the-river type scheme proposed on river Satluj near village Nanj, in Shimla, Kullu and Mandi districts of Himachal Pradesh. The Project will generate 632 MU of energy in a 90% dependable year. Government of Himachal Pradesh re-allotted the project on “Stand Alone Basis” to SJVN on 29.08.2017. Investment approval for carrying out pre-construction activities amounting to Rs. 72.478 Crores has been approved by GoI on 16.03.2018. MOU was signed with Government of Himachal Pradesh on 25.09.2019.

The project is in pre-DPR stage. Five out of nine pre-DPR chapters i.e. Hydrology, International aspects, Storage vs RoR, Power potential and Inter-state aspects have been cleared by CEA and balance four chapters are under examination. Geological investigation drifting & drilling including in-situ testing completed. Additional drilling as per GSI completed.

For Environmental Clearance, draft EIA/EMP report has been prepared on 29.04.2019 and will be submitted to SPCB after approval of CAT plan and DPR.

For acquisition of private land, SIA report submitted to GoHP on 11.08.2020 and notification under section 8(2) of LARR for approval of SIA issued by GoHP on 29.12.2020. Further, process will be initiated after finalisation of DPR of the For diversion of forest land, case was re-submitted on 31.07.2020 and observations raised by forest department are being attended.

For evacuation of power from project, location of common pooling station has been finalized by CEA at village Nanj near project site. Work for identification of land required for transmission line up to common pooling station has been awarded on 25.03.2021.

iii) DEVSARI HEP (194 MW):

Project is a Run-of-the-River (RoR) scheme located on river Pinder, a major tributary of river Alaknanda in district Chamoli of Uttarakhand. The scheme was cleared by GoUk with installed capacity of 252 MW in October, 2007 and by Standing Technical Committee in April, 2012. DPR of project with 252MW installed capacity was concurred by CEA on 07.08.2012.

MoJS, GoI has notified revised e-flows on 09.10.2018 for projects on River Ganga. In order to comply with the gazette notification, the capacity of the project has been reworked from 252 MW to 194 MW and DPR is being revised accordingly. 9 pre-DPR chapters were submitted to CEA on 26.12.2019, out of which five have been cleared and balance four chapters are under examination. The project will generate 626.47 MU of energy in a 90% dependable year.

Forest clearance stage-1 was accorded by MoEF&CC on 26.02.2018 with conditions and compliance report of FC Stage-1 was submitted to MoEF&CC on 28.11.2018. Observations raised by MoEF&CC are being followed up with GoUk. Environmental Clearance was recommended by EAC in its meeting held on 27.03.2018 subject to certain conditions applicable for FC stage-1. For resolution of submergence issue of Debal SHEP (5 MW), compensation for acquisition of plant as demanded by the owner earlier was disproportionally higher and revised proposal received is under consideration.

For obtaining investment approval for pre-construction activities, DIB proposal amounting to Rs. 291.77 crores submitted to MoP on 15.04.2021.

For acquisition of private land, award issued by DM, Chamoli on 10.07.2019. Compensation amount has already been deposited with Distt. Administration. Tariff of project is on higher side and matter is being taken up with GoUk for granting concessions in line with concessions granted by GoHP to make the project commercially viable.

iv) JAKHOL SANKRI HEP (44 MW):

Jakhol Sankri HEP with proposed installed capacity of 44 MW is located on River Supin, a tributary of River Tons in Uttarkashi District of Uttarakhand. The project is designed as run-of-the-river project and will generate 166 MU of energy in a 90% dependable year. Investment approval for carrying out pre-construction activities of project has been accorded by GoI at an estimated cost of Rs. 84.50 Crores on 15.09.2017. TEA of DPR issued by GoUk on 03.06.2019. Environmental clearance was recommended by EAC, MoEF on 26.12.2019. Application for diversion of Forest land was submitted on 05.12.2016. Case was forwarded by State Government to Regional Office, MoEF&CC, Dehradun on 02.11.2018. FC-1 recommended by REC, RO, Dehradun, MoEF&CC on 31.08.2020 with conditions. After attending observations, case was resubmitted to RO, MoEF&CC on 05.05.2021 is under process.

For private land acquisition, notification under section-11 of LARR

Act was issued on 03.08.2019. Objections of land owners attended and corrigendum to notification published on 23.06.2020. R&R plan approved by Commissioner, Garhwal on 15.06.2021.

Tariff of project is on higher side and matter is being taken up with GoUk for granting concessions in line with concessions granted by GoHP to make the project commercially viable. v) JANGI THOPAN POWARI HEP (804 MW):

Jangi Thopan Powari HEP is located on river Satluj in Distt. Kinnaur of Himachal Pradesh. GoHP has allotted this project with installed capacity of 780 MW to SJVN on 24.11.2018 and MoU was signed on 25.09.2019. Investment approval for carrying out pre-construction activities of project has been accorded by GoI at an estimated cost of Rs. 93.24 Crores on 20.05.2021.

Project is under S&I stage, six preliminary chapters were submitted to CEA on 04.10.2019 and three chapters i.e. Hydrology, RoR Vs Storage and Power Potential studies have been cleared. Preliminary layout of the project has been finalized with GSI and capacity of project has been enhanced to 804 MW from allotted capacity of 780 MW. Application for ToR approval was submitted to MoEF&CC on 08.08.2020 and EAC meeting held on 31.08.2020 and ToR approval received on 02.11.2020. EIA/ EMP report is under preparation. Work of control survey was awarded to Survey of India on 15.05.2020 is in progress. Detailed Topographical survey has also been awarded on 04.01.2021.

Geological investigation works i.e. drilling & drifting have been awarded on 26.02.2021 and 17.03.2021 respectively.

For diversion of forest land, proposal has been submitted to MoEF&CC on 14.04.2021. Application for Wildlife Clearance has been submitted to MoEF&CC on 27.04.2021.

vi) BARDANG HEP (175 MW):

Project with installed capacity 138 MW was allotted to SJVN by GoHP on 09.08.2019. Template MoU was signed with GoHP on 25.09.2019. Project is in S&I stage and six preliminary chapters have been submitted to CEA on 30.09.2020. 1st consultation meeting was held with CEA on 06.11.2020. After preliminary studies, capacity of project was enhanced to 175 MW from allotted capacity of 138 MW. The ToR approval has been accorded by MoEF&CC on 26.03.2021. Consultant for EC has been hired and preparation of EIA/EMP report in progress. Work of detailed topographical survey has been awarded on 27.10.2020. Drilling works awarded on 20.07.2021 & drift works are under tendering process.

vii) PURTHI HEP (232 MW):

GoHP allotted this project with installed capacity of 210 MW in Chenab basin to SJVN on 09.08.2019. Template MoU was signed with GoHP on 25.09.2019. Project is in S&I stage and six preliminary chapters submitted to CEA on 02.09.2020. 1st consultation meeting held on 20.10.2020. Capacity of project enhanced to 232 MW against allotted capacity of 210 MW.

The ToR approval has been accorded by MoEF&CC on 26.03.2021. Consultant for EC has been hired and preparation of EIA/EMP report is in progress. Work of detailed topographical survey has been awarded on 27.10.2020. Drilling works awarded on 20.07.2021 & drift works are under tendering process.

viii) REOLI-DUGLI HEP (430 MW):

GoHP allotted this project with capacity of 430 MW in Chenab basin to SJVN on 23.10.2019. Template MoU signed with GoHP on 06.11.2019. Project is in S&I stage and six Preliminary Chapters submitted to CEA on 17.07.2020 and 1st consultation meeting held on 20.10.2020.

Consent of CEA to submit DPR as per project layout submitted by previous developer M/s L&T has been received on 11.12.2020 and

DPR is being prepared accordingly.

ToR approval received from MoEF&CC on 18.03.2021. Consultant for EC has been hired and preparation of EIA/EMP report is in progress. Work of detailed topographical survey awarded on 27.10.2020. Investigation works i.e. drilling works awarded on 20.07.2021.

ix) NEW PROJECTS ALLOTTED IN CHENAB BASIN:

GoHP has allotted three new projects in Chenab basin i.e. Tandi HEP (104 MW), Rashil HEP (130 MW) and Sach Khas HEP (267 MW) on 05.01.2021. Site visit to all three projects was carried out from

12.04.2021 to 14.04.2021. Preparation of preliminary chapters is in progress.

x) LOWER ARUN HEP (679 MW):

Government of Nepal has allotted 679 MW Lower Arun Hydro Electric Project in Nepal to SJVN on 04.02.2021. The project is situated in the Sankhuwasabha and Bhojpur districts of Eastern Nepal on river Arun d/s of existing Arun-3 HEP (900 MW) of SJVN which is already under construction by SAPDC (wholly owned subsidiary of SJVN). The project is envisaged to be constructed in tandem with Arun-3 HEP. MoU signed with IBN, GoN in Kathmandu on 11.07.2021

XI) 75 MW UPNEDA SOLAR POWER PROJECT:

Project was allotted/awarded to SJVN by UPNEDA on 17.05.2021. Hiring of agency for execution of works is under tendering stage.

SOLAR PROJECTS

CHARANKA SOLAR POWER STATION:

SJVNs 5 MW Charanka Solar Power Station has been commissioned on 31.03.2017. The project is located at Charanka Solar Park in Gujarat in an area of about 25.95 acres. The project has been conceived under REC Mechanism and the PPA for brown power has been signed with GUVNL on 03.03.2017. Total 2139 RECs (Renewable Energy Certificates) have been traded in FY 2020-21 (upto July 2020) & on cumulative basis 20307 RECs. The project has generated 7.219 MUs in the FY 2020-21.

WIND POWER PROJECTS

a) KHIRVIRE WIND POWER STATION (47.6 MW), AHMEDNAGAR, MAHARASHTRA

SJVN has set up its first Wind Power Project of 47.6 MW capacity at Khirvire / Kombhalne villages of Ahmednagar district of state of Maharashtra. The Project comprises 56 Wind Energy Generators (WEGs) each of capacity 0.85 MW. The project started generation w.e.f. 20.01.2014, with the commissioning of 1st lot of 25 WEGs and attained full generation capacity by commissioning the last 56th WEG on 20.05.2014. The project has been registered with IREDA for availing of Generation Based Incentive (GBI) @ Rs. 0.50 / kWh with a cap of Rs. 1 Crore per MW. Total Gross Generation from the plant for FY 2020-21 was 48.261 MU.

b) SADLA WIND POWER PROJECT (50 MW), SURENDERNAGAR, GUJARAT

SJVN has successfully commissioned its second Wind Power Project of 50 MW capacity, comprising 25 WEGs each of capacity 2 MW at village Sadla, Distt. Surendranagar, Gujarat. The project has been fully commissioned on 18.04.2019. Total 73.750 MU had been generated in FY 2020-21. PPA was signed with Gujarat Urja Vikas Nigam Limited (GUVNL) for 38 MW on 30.01.2018 and for balance 12 MW on 30.03.2019.

FUTURE ENDEAVORS

Honble Prime Minister of India has set an ambitious renewable energy target i.e. 175 GW by 2022 and 450 GW by 2030. Aligned with the same, SJVN also aims to become a 5000 MW company by 2023, 12000 MW by 2030 and 25000 MW by 2040 wherein the renewable portfolio shall be increased manifolds.

SJVN has been continuously looking for opportunities for setting up Solar, Wind, Hybrid, Floating Solar, and Ocean Hybrid Platforms Pan India. These opportunities are generally in the form of Competitive Bidding processes. Recently, SJVN through competitive bidding bagged a 70 MW solar project in Gujarat which is in execution stage. Similarly, SJVN also bagged a 75 MW project in Uttar Pradesh through competitive bidding and the same is likely to come in execution shortly.

SJVN is looking forward for participation in various other upcoming competitive Bidding processes for Solar, Wind and Hybrid (Solar + Wind) to the tune of 2000 MW.

Ministry of New & Renewable Energy (MNRE) under the Ministry of Power has allotted Himachal Pradesh for development of Kaza Solar Park 880 MW under the Ultra Mega Renewable Energy Power Projects (UMREPP)

Scheme. SJVN in collaboration with various agencies has already started the preliminary investigation works like identification of Land, Transmission Line survey etc.

SJVN is also collaborating with various other state Governments for exploring the possibility of setting up Solar, Wind, Hybrid, Floating Solar, Ocean Hybrid Projects. With regard to faster capacity addition, SJVN is actively looking for acquisition of Brownfield projects through direct mode/ NCLT. Few such projects are presently under consideration for acquisition.

TRANSMISSION PROJECTS

Name of Project Location
Project under Operation
400 kV, D/C Cross Border Transmission Line (Operated by JV: CPTC) Muzafarpur to Sursand on Indo Nepal Border
Project under Construction
400 kV Double Circuit Transmission Line for evacuation of power from 900 MW Arun-3 Project, Nepal to India border. (Executed by Subsidiary: SAPDC) Diding to Bathnaha on Indo Nepal Border
220 kV Double Circuit Transmission Line for evacuation of power from 60 MW Naitwar Mori Hydro Electric Project (Transmission line is part of Naitwar Mori Hydro Electric Project) Mori (UK) to Snail(HP)

7. ENVIRONMENT

SJVN is aware of its obligation to conserve and protect the environment. SJVN strictly adheres to all policies and guidelines of the Ministry of Environment, Forest and Climate Change (MoEF&CC), Government of India (GoI) concerning identification and mitigation of environmental impacts projects. To achieve sustainable development, studies like Environmental Impact Assessment (EIA), Environment Management Plan (EMP), Dam Break Analysis, which are part of the Comprehensive Environmental Impact Assessment Study, are carried out through highly reputed organizations/ consultants. All environmental aspects are suitably addressed in the Environment Impact Assessment & Environment Management Plan reports.

Suitable measures are adopted to negate any adverse impact on the environment and ecology during construction and operation stages. Every care is taken to implement and abide by the laws of the land in respect of the environment and ecological safeguards.

SJVN has two hydro power stations, viz. Nathpa Jhakri and Rampur in Himachal Pradesh which are under operation wherein measures such as Catchment Area Treatment, Compensatory Afforestation, Muck Management, Restoration of muck disposal sites, quarry sites and construction areas, Green belt development, Biodiversity Management, Fisheries Management, etc. were successfully undertaken.

Further, SJVN has one project which is under construction namely, Naitwar Mori HEP located on Tons River in Uttarakhand, wherein Rs. 38.95 Crores have been spent so far against a financial provision of Rs. 32.48 Crores on implementation of various environmental management measures, as briefly brought out below:

For the implementation of the Catchment Area Treatment (CAT) plan, Rs. 12.96 Crores have been deposited against the CAMPA fund. An amount of about Rs. 140.68 Lakhs has been utilized by Uttarakhand Forest Department for implementation of CAT Plan till date.

Under the Fishery Management Plan, fish pass on the Naitwar barrage has been proposed for migratory fish species in the river. SJVN has engaged Central Inland Fisheries Research Institute (CIFRI), Barrakpore, West Bengal who has vetted the design parameters for an effective and sustainable fish pass.

Muck management is being done in line with the approved Muck Management Plan proposed in the EIA / EMP Report and in line with MoEF&CC guidelines.

As part of the diversion of forest land, Compensatory Afforestation (CA) over 80 ha of civil soyam and forest land has been carried out for which Rs. 1.84 Crores has been deposited with the CAMPA fund. An amount of Rs. 67.74 Lakhs has been spent so far against compensatory afforestation works by the Uttarakhand Forest Department.

As many as 2000 species of various tree saplings like, Jacaranda, Kachnar, Amla, etc. have been planted in consultation with State Forest Department at appropriate locations in the project area.

Biodiversity Conservation and Management Plan has been prepared by the State Forest Department, against which an amount of Rs. 43 Lakhs has been deposited with Uttarakhand Forest Department. An amount of about Rs. 22.38 Lakhs has been spent so far against Biodiversity Conservation and Management Plan by the Uttarakhand Forest Department.

Noise level, ambient air quality and water quality of the project area are being monitored by Pollution Control Research Institute, BHEL at Haridwar. The monitored data shows reportable values below the permissible limits defined by regulatory bodies. Further, all high noise generating equipment have been provided with mufflers as per the manufacturers specifications.

Rain water harvesting system along with a 60 KLD sewage water treatment has been setup at project colony.

Process initiated for procurement of bio composter and plastic waste baling machine for treatment of solid waste of project affected villages and project colony.

In addition to the above, SJVN has made additional endeavours for promoting a sustainable environment. SJVN has put up a grid-connected, 1.3 MW solar power plant at Nathpa Jhakri Hydro Power Station near Wadhal, Shimla District. SJVN is also in the process of augmenting the already commissioned 100 kWp grid-connected rooftop solar power plant at Corporate HQ, Shimla. The building is also equipped with intelligent/ automatic sensor-controlled illumination system for conservation of electricity besides 5000 litre capacity rooftop solar water heater. Furthermore, GRIHA certification has also been applied for the under construction Auditorium-cum-Parking Block at Corporate HQ.

Every year, SJVN celebrates World Environment Day on 5th of June across its projects and offices with much zeal and fervour. This time, celebrations were organized following social-distancing norms and all Government guidelines in respect of COVID-19. Large scale plantation programs were undertaken across various locations. Pledge for environment protection/ conservation and talks on environmental aspects were also delivered by heads of projects / power stations/ offices to spread awareness and sensitivity about environmental issues. In addition to the above, slogan competitions, awareness programmes, drawing competitions, etc. were also undertaken at power stations. Corporate Officeorganized photography and slogan-writing competition as well as a “Best from waste” competition for its employees wherein all were encouraged towards environmental conservation.

Under the CSR activities, SJVN in collaboration with Himalayan Forest Research Institute (HFRI), Shimla is developing an Arboretum for the conservation of the endangered flora in District Shimla.

8. CSR AND SUSTAINABILITY

An annual report of Corporate Social Responsibility, highlighting the Companys CSR Policy, details of expenditure on CSR and overview of projects/ programs/ activities undertaken by the Company during FY 2020-21 in format prescribed under Companies (CSR Policy) Rules 2014 is annexed as Annexure-V and forms an integral part of this Directors Report.

9. REHABILITATION AND RESETTLEMENT

SJVN, being conscious of its responsibilities towards society, is committed to execute and operate power projects in a socially responsible manner by adopting generous Resettlement & Rehabilitation measures for the benefits of project affected families (PAFs) and by investing in the socio-economic development of communities to continually minimize potential negative impacts as well as to establish the sustainable positive impact of projects on them.

Well before any project is taken up for execution, Social Impact Assessment (SIA) study is carried out to ensure that the potential socio-economic benefits accrued from the project outweigh the likely social costs and adverse social impact. Public consultation meetings with the stakeholders are held by the project authorities to make the local communities aware of developmental facilities to be created in the fields of health, education, sanitation, drinking water, approach roads and other community assets of the project and their benefits to the society. Subsequently, the R&R plan is devised based on conclusive findings derived from the socio-economic survey carried out by an independent expert agency. The R&R plan thus devised and approved essentially prescribes mitigation measures for reconstruction and regeneration of economies of the PAFs.

During the implementation stage of the R&R plan, regular monitoring of R&R activities is conducted through an external independent agency to ensure the timely extension of R&R benefits to the PAFs. Subsequently on completion and implementation of the R&R plan, social impact evaluation is carried out by an independent external agency to assess various tangible and intangible benefits accrued in the area of socio-economic development. To have constant interaction with local people, a Project Information Centre is set up at project level NJHPS and RHPS: The R&R plans have been successfully implemented in 1500 MW Nathpa Jhakri Hydro Power Station (NJHPS) and 412 MW Rampur Hydro Power Station (RHPS) both located in Himachal Pradesh. Several R&R benefits like employment subject to availability of employment and suitability of the candidates or financial assistance in place of employment to start a tailor-made self-business, land for land, constructed house in rehabilitation colony or house plot with construction assistance or cash package with shifting allowance and shifting house rent, shop plot for shop in market complex, shop in project township, cattle shed grant etc. as per the eligibility have been provided to the PAFs. Land based employment opportunity is encouraged through farm training and non-land based employment opportunity is encouraged through skill development training and financial assistance for self-business. To support the weaker section of the society financial assistance to vulnerable group families is being provided. To promote indirect employment, vehicles required for Project works are hired from PAFs/Locals on preference basis and petty contracts are offered to PAFs/ local contractors on a preference basis. In addition to these benefits, with a view to develop the area infrastructure and community development facilities are provided to the local communities. The infrastructure development work includes construction of village paths, roads, rain shelters, bus stand, Panchayat Bhawan, Community Centers, Mahila Mandal Bhawans, crematorium etc. The community development works includes health, education, safe drinking water & sanitation etc. The health facility is provided through mobile health van, project hospitals and health awareness campaign. Promotion of education is being done through school infrastructure, scholarship schemes, promotion of sport infrastructure for the students etc. Drinking water facility is being provided through renovation of natural water sources, financial assistance to local health department for laying of water supply schemes (WSS) and laying of sewerage system etc.

The local farmers around RHPS have been adequately compensated for the reduction in crop yield as per the crop compensation policy of the Government of HP. The PAFs are being provided 100 units of free electricity benefit per month for ten years as per the Ministry of Power guidelines.

Besides this, funds of Rs. 55.26 Crores have been spent for carrying out various infrastructural development works under the Local Area Development Fund (LADF) policy of GoHP.

NMHEP: The R&R plan is in the execution stage in 60 MW Naitwar Mori Hydro Electric Project (NMHEP), Uttarakhand. Various provisions of R&R Plan i.e. rehabilitation grant, subsistence allowance, widow pension, scholarship to the wards of PAFs, technical education Scheme to the local youth, grant on birth of girl child, grant on marriage of daughter etc. are being implemented through R&R Administrator-cum-ADM Uttarkashi. The Project R&R Grievance Redressal Committee has been constituted under the Chairmanship of R&R Administrator Uttarkashi. As per the recommendations of the Committee, various infrastructural and community development works like construction of community/marriage halls, construction of toilets, installation of solar street lights & solar fencing, infra aids /furniture to the schools, modern agriculture/horticultural equipment to the farmers etc. are being carried out in the project affected villages of NMHEP.

LHEP Stage-I : The land acquisition process by direct negotiations as well as under Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 is under process in LHEP Stage-I 210 MW (HP). The R&R Plan for affected families is under finalization stage by GoHP.

LHEP Stage-II : Acquisition of land for construction of 172 MW LHEP Stage-II under Section 8(2) of RFCTLARR Act, 2013 on 29.12.2020 is under process. Award for SIA study is under process.

SDHEP: Land Acquisition process under Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 has been initiated for Sunni Dam Hydro Electric Project (382 MW) and after approval and publication of SIA Study, the notification under section 11(1) for acquisition of private land has been published in H.P Gazette on 19.02.2021 by Government of Himachal Pradesh. The Census for preparation of R&R Scheme by state Government is underway and will be completed soon in both Districts i.e. Shimla and Mandi of Himachal Pradesh.

DSHEP: For 66 MW Dhaulasidh Hydro Electric Project, HP, the R&R Plan has been approved by GoHP. The entitlements of the eligible PAFs for the R&R benefits are being evaluated through a committee consisting of members from HPPWD & Revenue Deptt. of GoHP.

BTPP: In 1320 MW Buxar Thermal Power Project (BTPP) in Bihar, the acquisition of private land was made as per Land Acquisition Act, 1894, whereas, as decided by Bihar Government the compensation has been paid as per the provision under RFCTLARR Act, 2013. Acquisition of additional private land required for the project is being carried out under RFCTLARR Act, 2013. The draft R&R Plan of BTPP has been submitted to Bihar Government for approval, which is awaited.

JSHEP: In 44 MW Jakhol Sankri Hydro Electric Project (JSHEP) Uttarakhand, the Land acquisition as per RFCTLARR Act, 2013 is under process. The SIA report has been prepared and approved by Uttarakhand Government. The R&R plan for Project Affected Families (PAFs) has been prepared by District administration in line with RFCTLARR Act, 2013 and submitted for approval of Commissioner (Garhwal) Government of Uttarakhand.

DHEP: In Devsari Hydro Electric Project (DHEP) 252 MW, Uttarakhand, the land acquisition process under RFCTLARR Act, 2013 is in progress. The R&R plan for Project Affected Families (PAFs) has been prepared in line with RFCTLARR Act, 2013 and recommendations of Environmental Expert Appraisal Committee (EAC) of Ministry of Environment, Forest and Climate Change, Government of India. The Government of Uttarakhand has also approved the R&R Plan and has declared the Award for 27.462 hectares of Private land. State Administration is collecting the details of individual beneficiaries like Adhaar Card, Bank Account details etc. for disbursement of land compensation amount amongst landowners are being collected by GoUK.

SIE: The Social Impact Evaluation (SIE) studies of R&R implementation in NJHPS and RHPS were carried out by the Agriculture Economic Research Centre (AERC) of Himachal Pradesh University. The reports reveal that R&R implementation in the project affected areas has substantially enhanced the socio-economic standard of the local population on various development parameters like economy, health, education etc.

The World Bank Mission has monitored the R&R activities carried out in NJHPS from time to time and has appreciated the efforts made for rehabilitation of the PAFs as under:

“The success of the resettlement activity undertaken in this project is quite rare for India, and can be considered as one of the best examples of resettlement implementation in bank assisted projects in India. It should be considered as an example for other projects.”

10. RESEARCH AND DEVELOPMENT

SJVN has always been dedicated towards Research and Development,

Innovation, Technology up-gradation, and Product Development in its core area of Power Generation along with R&D strategy that has the necessary clarity, agility, and conviction to realise the organizations aspirations. R&D carried out during FY 2020-21: MOU signed with IIT Mandi MOU has been signed with IIT Mandi on 19.06.2020 for the establishment of SJVN Chair for a period of six years for R&D in the field of Hydro Power.

Further specific topics for R&D are being discussed to be taken during next year or during 6 year period of SJVN Chair at IIT Mandi.

11. HUMAN RESOURCES

The total manpower on the rolls of SJVN (Direct Recruits and Absorbed employees) as on 31.03.2021 was 1423 and the strength of HPSEB / HP Government employees on deputation on the above date was 76.

Representation of Women Employees is as under:

Group Total Employees as on 31.03.2021 Number of Women employees Percentage of overall staff strength
SJVN (DR + absorbed) 1423 149 10.47
SJVN (Deputationists) 76 6 7.89
Total 1499 155 10.34

Representation of Persons with Disabilities (PWDs) is as under:

Group Total Employees as on 31.03.2021 Physically Challenged Employees Percentage of Physically challenged employees
VH HH OH Total
Total 1423 07 07 16 30 2.11

Representation of SCs/STs/OBCs/Minorities Employees is as under:

Group Total Employees as on 31.03.2021 Representation
SCs SC% STs ST% OBC OBC%
Total 1423 292 20.52 93 6.54 190 13.35

SJVN is committed to continuous growth and development, and gives utmost importance to the enrichment of employee skills and knowledge. In-house, Online and External training program are organized in all disciplines and at all the levels in SJVN. In spite of the challenges posed by COVID-19, during the financial year 2020-21, 108 Online programs, 25 In-house programs and 03 External programs were conducted for which 3101 nominations were made. The trainings were imparted through organizations of national repute like NEPTEL, Rock Science South Asia, ASCI, IITs, CBIP, and Tunneling Association of India. The programs were conducted on topics like Companies Act, 2013 and Corporate Governance, Management, Enterprise Risk Management, Advance O&M practice in Super Critical Thermal Power Plant, AutoCAD, 3 DS Max, Power System

Protection and Coordination, Environment Management and Sustainability,

TLC/TCS/SCADA for Power Plant Operations, Primavera P6, Effective Parenting Techniques, Planning for retirement, Effective Communication and Presentation, Netiquettes, 5S & Kaizen and Gender Sensitivity etc., to mention a few.

Also to effectively percolate the Shared Vision and motivate employees to achieve “5000 MW by 2023, 12000 MW by 2030 and 25000 MW by 2040” two motivational talks by renowned Motivational Speakers were also organized.

12. INDUSTRIAL RELATIONS

Regular Meetings are held with the representatives of the various

Associations / Unions to sort out the local issues as well as policy related matters. Recreational, Cultural and Sports function on different occasions were also held, thus, resulting in better employee-employer relations and cordial industrial relations were maintained during the year.

13. STATUTORY AND OTHER INFORMATIONS

The information required to be furnished as per the Companies Act 2013, SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, Government Guidelines, and Code of Corporate Governance of your Company, on the following matters is placed at respective annexures and form integral part of Directors Report:-

a. Management Discussion and Analysis Annexure – I

b. Report on Corporate Governance Annexure – II

c. Certificate from Governance Compliance Annexure – III

d. Information on Conservation of Energy, Technology Absorption and Foreign Exchange earnings and out go Annexure – IV

e. Annual Report on Corporate Social Responsibility & Sustainability Annexure – V

f. Business Responsibility Report Annexure – VI

g. Certificate Annexure - VII

h. Secretarial Audit Report Annexure – VIII

i. Managements Replies to the observations of Secretarial Auditor Annexure –IX.

j. Form No. AOC-2 Annexure – XVI

14. DIRECTORS RESPONSIBILITY STATEMENT

The Directors state that:

In the preparation of the annual accounts for the year ended March 31, 2021, the applicable Accounting Standards read with requirements set out under Schedule III to the Act, have been followed along with proper explanation relating to material departures, if any;

The Directors have selected such accounting policies and applied them consistently except as disclosed in the Notes on Accounts and made judgment and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at

March 31, 2021 and of the profit of the Company for the year ended on that date;

The Directors have taken proper and sufficientcare for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

The Directors have prepared the annual accounts on a ‘going concern basis;

The Directors have laid down internal financialcontrols to be followed by the company and that such internal financial controls are adequate and are operating effectively; and

The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

15. DECLARATION OF INDEPENDENCE

Your Company has received declarations from all the Independent Directors confirming that they meet the criteria of independence as provided under Section 149(6) of the Companies Act, 2013 and Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

16. SECRETARIAL STANDARDS

The Company has complied with the applicable Secretarial Standards during the Financial Year ending 31.03.2021.

17. SEXUAL HARASSMENT PREVENTION

SJVN has implemented the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 in its entirety. Internal Complaints Committees as per the provisions of the act have been constituted at Corporate Office and Projects sites of SJVN.

Summary of Sexual harassment issues raised, attended and dispensed during the year 2020-21:-

No. of complaints received in 2020-21 Nil
No. of complaints disposed off Nil
No. of cases pending for more than 90 days Nil
No. of workshops or awareness programme against sexual harassment carried out 03*
Nature of action taken by the employer or District Officer Nil

* Includes one Orientation Programme for ICC members as per the POSH Act

18. SECRETARIAL AUDIT

The Board appointed M/s SGS Associates, PCS, to conduct Secretarial Audit for the Financial Year 2020-21. The Report of the Secretarial Auditors for the year ended 31.03.2021 is placed at Annexure-VIII. Reply of Management to observations of Secretarial Auditor is placed at Annexure-IX.

19. STATUTORY AUDIT

M/s A P R A & Associates LLP, Chartered Accountants, were appointed by Comptroller & Auditor General as Statutory Auditors of the Company for the financial year 2020-21.

The Report of the Statutory Auditors to the Members on the Standalone and Consolidated Accounts for the year ended 31.03.2021 is placed at Annexure-X and Annexure-XII respectively. Reply of Management to observations of Statutory Auditor on Internal Financial Control on the Standalone and Consolidated Accounts are placed at Annexure-XI and Annexure-XIII respectively. Observations/ Comments of the Comptroller and Auditor General (C&AG) of India on the Standalone and Consolidated Accounts for the year ended 31.03.2021 are placed at Annexure-XIV and Annexure-XV respectively. Comments of C&AG being NIL the reply by the Management thereto is not applicable.

20. ANNUAL RETURN

The Annual Return in Form MGT-7 as required under Section 92(3) of the Companies Act, 2013 can be accessed at Investor Relation Section on SJVN website www.sjvn.nic.in.

21. COST AUDIT

Pursuant to the Central Government directions to audit Cost Accounting Records as maintained by the Company, your Company appointed M/s Balwinder & Associates, Cost Accountants, as Cost Auditor for the year 2020-21.TheCostAuditReportfortheyearended31 filed st March2020was with MCA on 30.10.2020

22. INTERNAL FINANCIAL CONTROL SYSTEM

Internal controls are the mechanisms, rules and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability and prevent fraud. Financial controls are process, policies and procedures that are implemented to manage finances. The company has adequate internal control system and the transactions/ processes are guided by delegation of powers, polices, rules, guidelines and manuals framed in compliance with relevant laws and regulations. The organizational structure is well defined in terms of structured authority/ responsibility involved at each particular hierarchy/level.

The company has sufficient internal control over financial reporting to ensure assurance regarding the reliability of financial reporting and in the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

In order to ensure adequacy of internal control system, internal audit is conducted by the independent Chartered Accountants firms in close coordination with companys own Internal Audit Department. The Internal Audit process includes review and evaluation of effectiveness of existing processes, controls, and compliances. It also ensures adherence to rules, procedures, policies and systems and mitigation of the operational risks perceived for each area under audit.

It is also informed that significant Reports are placed before the Audit Committee headed by Independent Director. The recommendation and directions of the Audit Committee are carried out and complied with.

23. CONSOLIDATED FINANCIAL STATEMENTS

In accordance with the Indian Accounting Standard (Ind AS)-110 on Consolidated Financial Statements read with Ind AS-111 on Joint Agreements and Ind AS-112 on Disclosure of Interest in other entities, the Audited Consolidated Financial Statements are provided in the Annual Report.

24. BOARD OF DIRECTORS

During the FY 2020-21, the following changes took place in the composition of the Board of Directors of the Company:-

a. Shri Tanmay Kumar, Joint Secretary (Hydro), Ministry of Power was appointed as Part-Time Official Director (GoI Nominee) in place of Shri Aniruddha Kumar w.e.f. 11th June 2020.

b. Shri Rakesh Kumar Bansal ceased to be Whole Time Director (Electrical), of the Company on 31st July 2020 on reaching age of superannuation.

c. Shri Sushil Sharma was appointed as Whole time Director (Electrical) of the Company w.e.f. 1st August 2020.

The following changes took place during the current financial year 2021-22 till the date of the Directors Report:

a. Shri Ram Subhag Singh, Additional Chief Secretary (MPP & Power), ceased as Part-Time Official Director (GoHP Nominee) on withdrawal of Nomination by appointing authority w.e.f. 02nd June 2021.

b. Shri Ram Dass Dhiman, Additional Chief Secretary (MPP & Power) was appointed as Part-Time Official Director (GoHP Nominee) w.e.f. 22 nd June 2021

None of the Directors are inter-se related to each other.

The Board Meetings held during the Financial Year 2020-21 and the attendance of the Directors therein is mentioned in the Report on Corporate Governance.

25. BOARD LEVEL COMMITTEES

The composition of the Statutory Committees required to be constituted as per the Companies Act 2013 and the SEBI Listing Regulations and the meetings held therein are mentioned in the Corporate Governance Report.

26. KEY MANAGERIAL PERSONNEL

In compliance with Section 203 of the Companies Act, 2013, following have been designated as Key Managerial Personnel:-

1. Shri Nand Lal Sharma, Chairman & Managing Director

2. Shri Akhileshwar Singh, Director (Finance) & Chief Financial Officer

3. Shri Soumendra Das, Company Secretary

27. IMPLEMENTATION OF OFFICIAL LANGUAGE

In order to ensure the implementation of the Official Language Policy of the Government of India, all possible efforts have been made by the company to achievethetargetsasspecified . Language bythe Department of Official Under section 3.3(i) of Official Language Act cent percent documents were issued bilingually & all the letters received in Hindi were replied to in Hindi. Companys website is already in bilingual form and it is updated from time to time.

To encourage executives and non-executives to do their entire work in Hindi, number of incentive schemes are under implementation namely Payment of increment of three months during the year, for doing his/her whole office work in Hindi and during the year and under this scheme a total 184 Employees/ Officers wereRs. 9,80,110/-(Approx.). 8 Hindi workshops/seminars have been organised and 120 no. of executives and non-executives have been trained. Organising of Hindi quiz competitions on national/important occasions and other competitions (i.e. Nibhand (Essay writing), Kahani, Noting-drafting, Shabdarth gyan, Sulekh & Vichar Abhivyakti competition is a regular feature and besides this number of competitions were also organised during “Hindi fortnight”. In these competitions 165 no. of employees were awarded cash prizes amounting to Rs. 2,23,000/-. Parliamentary Committee on Official Language inspected the progress of use of Hindi at the Expediting Office,New Delhi on 11th December, 2020 and expressed its satisfaction over the progress made in this regard.

The Officials from Corporate Headquarter inspected the progress of use of Hindi at Expediting Office, New Delhi, Nathpa Jhakri Power Station, Jhakri & Rampur Hydro Power Station, Bayal during the year under review and expressed its satisfaction about the progress made in this regard.

Half yearly meetings of the Town Official Language Implementation Committee, Shimla (Office-2) constituted for the CPSUs & Banks etc. were held on 21.07.2020 & 16.12.2020.

To give impetus to the multi-facet talent of employees an in-house biannual Hindi magazine “Himshakti” was published and circulated. Out of total expenditure on purchase of books, 82.51% of amount was spent on purchase of Hindi books.

28. AWARDS & ACHIEVEMENTS

During the Financial year 2020-21, your Company & Directors received commendation for work in the form of various Awards and Accolades as under:-

1. March 8, 2021: SJVN has been conferred with CIDC Vishwakarma Award 2021 in the category of CORONA Warriors.

2. February 20, 2021: Sh. Nand Lal Sharma, Chairman & Managing Director, SJVN has been conferred with Life Time Achievement award by Indian Concrete Institute (ICI) during Concrete Day & Construction Excellence Awards 2020 organized by Indian Concrete Institute (ICI).

3. December 31, 2020: SJVN has been conferred with SCOPE Meritorious Award for Corporate Social Responsibility & Responsiveness. This award has been conferred upon SJVN for its outstanding contribution and initiatives in Health & Hygiene, Education & Skill development, Infrastructural development, and Sustainable development under its Corporate Social Responsibility. An eminent jury under the Chairmanship of Justice R.C. Lahoti, former Chief Justice of India finalized the Awards.

4. June 20, 2020: The Corporate Head Quarter Premises of SJVN, ‘Shakti Sadan Shanan, Shimla has been adjudged First in the State Environment Leadership Award 2019-20 Office in the category of Premises. The Award was presented by Sh. Jairam Thakur, Honble Chief Minister of Himachal Pradesh to Shri Nand Lal Sharma, Chairman & Managing Director, SJVN in a function held at Shimla. In the same category Office of 1500 MW Nathpa Jhakri Hydro Power bagged the consolation prize.

29. OTHER MAJOR DEVELOPMENTS

1. March 17, 2021: Agreement for Term Loan of Rs. 8,448.46 Crores for 1320 MW Buxar Thermal Power Project at Chausa in Buxar district of Bihar being executed by SJVN Thermal Pvt. Limited (STPL), a wholly owned subsidiary of SJVN was inked between STPL and the consortium of lending Banks & Financial Institution (FI) which included State Bank of India, Canara Bank and IIFCL.

2. March 9, 2021: Kholongchhu Hydro Energy Ltd. signed an MOU with PFC - REC consortium for financing of 600 MW Kholongchhu Hydro Electric Project in Bhutan to the tune of INR 4,058 crores.

3. December 24, 2020: Government of Himachal Pradesh allotted Three Hydro Projects - 104 MW Tandi, 130 MW Rashil and 267 MW Sach Khas Hydro Electric Projects on the Chenab Basin in Himachal cashprizesamounting Pradesh to SJVN.

4. December 7, 2020: SJVN signed MoU with Indian Renewable Energy Development Agency Ltd. (IREDA) for providing its services to SJVN for Green Energy projects. IREDA will undertake Techno-Financial due diligence of Renewable Energy, Energy Efficiency& Conservation Projects for SJVN. Under the MoU, IREDA will also assist SJVN in developing an action plan to create and acquire Renewable Energy projects for the next 5 years.

5. December 11, 2020: SJVN joined International Solar Alliance (ISA) as Corporate Member. This prestigious membership will provide SJVN a global platform to garner cooperation amongst member countries to enhance the use of Solar Energy in a safe, convenient, affordable, equitable and sustainable manner.

6. November 04, 2020: Cabinet Committee on Economic Affairs (CCEA), chaired by Honble Prime Minister Shri Narendra Modi has approved the investment of Rs. 1,810.56 Crores for 210 MW Luhri Stage-1 Hydro

Electric Project of SJVN, being developed on river Satluj in Shimla & Kullu districts of Himachal Pradesh. This includes budgetary support of Rs. 66.19 Crores from Govt of India for enabling infrastructure which has helped in reducing power tariff.

7. October 01, 2020: The investment proposal of Rs. 687 Crores has been approved by Government of India for 66-Megawatt Dhaulasidh Hydro Electric Project. This includes budgetary support of Rs. 21.6 Crores from Govt of India for enabling infrastructure.

8. August 17, 2020: SJVN Bagged 100 MW Solar Power Project in

Dholera Solar Park through E-Reverse Auction @ INR 2.80/Unit. SJVN bagged the quoted capacity of 100 MW @ INR 2.80/Unit on Build Own and Operate (BOO) basis.

9. June 29, 2020: Kholongchhu Hydro Electric Limited (KHEL) signed a

Concession Agreement (CA) with Ministry of Economic Affairs, Royal

Government of Bhutan. With signing of this agreement, the issue of Power sale agreement between JV partners stands resolved which also bears the consent of both the Governments (India & Bhutan).

30. PARTICULARS OF LOANS GIVEN, INVESTMENTS MADE GUARANTEES GIVEN AND SECURITIES PROVIDED

Particulars of loans given, investments made, guarantees given and securities provided along with the purpose for which the loan or guarantee or security is proposed to be utilized by the recipient are as under:-

Particulars Details
Loans given Refer Note 2.6 and 2.14 to standalone financial statements
Investments made Refer Note 2.5 to standalone financial statements
Guarantees given Securities provided Nil Nil

31. GENERAL

Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review:

1. The Company has not accepted any deposits during the year under review.

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

3. Neither the Managing Director nor the Whole-time Directors of the Company receive any remuneration or commission from any of its subsidiaries.

4. No significant or Courts or Tribunals which impact the going concern status and Companys operations in future.

5. There have been no Material Changes and Commitments subsequent to the Balance sheet.

6. The company has not made any buyback of shares during the year under review.

32. ACKNOWLEDGEMENT

The Board of Directors acknowledge with deep appreciation, the co-operation and guidance extended by various Ministries/Departments of the Government of India, particularly, Ministry of Power, Ministry of Finance, Ministry of External Affairs, Ministry of Environment & Forest, Central Electricity Authority, Central Water Commission, Geological Survey of India, the Government of Nepal, the Government of Bhutan, the Government of Himachal Pradesh, particularly, the Departments of Power, Finance and Forests, the Pollution Control Board, State Governments of Bihar, Uttarakhand, Gujarat and Maharashtra, the State Electricity Boards and the World Bank.

Your Directors also convey their gratitude to the shareholders, various international and Indian banks and financial institutions for the confidence reposed by them in the Company. The Board also acknowledges and appreciates the contribution made by Contractors, Vendors, Consultants and others for achieving the planned goals of the Company.

The Board also places on record its deep appreciation of valued cooperation extended by the Officeof the Comptroller and Auditor General of India and the Auditors. Last but not least, the Board commends the hard work and ormaterialorderswerepassedbytheRegulators dedicated efforts put in by the employees of the Corporation including the employees on deputation at all levels.

For and on behalf of Board of Directors
(Nand Lal Sharma)
Date : 14th August 2021 Chairman and Managing Director
Place : Shimla DIN: 03495554