SJVN Ltd Directors Report.

Dear Members,

Your Directors are pleased to present the Thirty Fourth Directors Report of the Company for the year ended March 31,2022 along with the Audited Statement of Accounts, Report of Auditors and Comments of the Comptroller and Auditor General of India.

The following financial highlights for the year ended 31st March 2022 briefly encapsulate the performance of your company: -

1. FINANCIAL HIGHLIGHTS ( in Lakh)

PARTICULARS

STANDALONE

CONSOLIDATED

2021-22 2020-21 2021-22 2020-21
INCOME
Revenue from Operations 242196 249083 241700 248539
Other Income 20358 72224 21778 73745
Total Income 262554 321307 263478 322284
EXPENSES
Employees Benefits Expense 28941 32055 29062 31722
Finance Cost 16134 (285) 16134 (285)
Depreciation and Amortization Expenses 40429 39327 40429 39327
Other Expenses 40380 36882 39994 36929
Total Expenses 125884 107979 125619 107693
Profit/ (Loss) before exceptional items and tax 136670 213328 137859 214591
Exceptional items 2326 29344 2326 29344
Profit before Share in net profit of Joint venture/ Associates, net movement in regulatory deferral account balance and tax 135533 185247
Share in Profit of JVs & Associates - - 449 394
Profit before net movement in regulatory deferral account balance and tax 134344 183984 135982 185641
Tax Expenses:
Current Tax 22909 31627 23286 32012
Adjustments relating to earlier years 33 4
Deferred Tax 9301 16191 9301 16191
Profit before regulatory deferral account balances 102134 136166 103362 137434
Net movement in regulatory deferral account balances (Net of tax) (4382) 27138 (4382) 27138
Profit for the Year 97752 163304 98980 164572
Other comprehensive Income
Items that will not be reclassified subsequently to profit or loss
- Remeasurement of the net defined benefit liability/ asset (197) (255) (197) (255)
- Income tax on above item 34 89 34 89
Total (163) (166) (163) (166)
Total Comprehensive Income for the period 97589 163138 98817 164406

2. GENERATION

Gross Energy Generation from various operational plants of the Company during FY 2021-22 is as under: - (Million Units (MU)

Plant Design Energy 2021-22 2020-21
NJHPS 6612 7067.373 7098.925
RHPS 1878.08 1981.193 1995.335
KWPS 85.65 47.230 48.261
CSPS 7.68 8.595 7.219

(Million Units (MU)

Plant Design Energy 2021-22 2020-21
SWPP 120.05 102.677 73.750
Wadhal Solar 1.5 1.404 -
Total 8705.41 9208.472 9223.490

Generation Records & Milestones achieved during FY 2021-22

include:-

• SJVN achieved the Highest Ever Monthly Generation of 1580.426 MU in July, 2021 from all plants.

• NJHPS achieved the Highest Ever Monthly Generation of 1216.565 MU in July, 2021.

• NJHPS achieved Highest Ever Daily Generation of 39.493 MU on 16.08.2021.

• RHPS achived Highest Ever Monthly Generation of 335.695 MU in July, 2021.

• Highest Ever Quarterly (Q2) Generation of 4404 MU achieved in 2nd quarter FY 2021-22 surpassing the previous best of 4392 MU in the corresponding period of Last Year.

• Highest Ever Quarterly (Q3) Generation of 1480 MU achieved in 3rd quarter of FY 2021-22 surpassing the previous record of 1344 MU of FY 2019-20.

3. REVENUE AND PROFITS

The standalone revenue from operation decreased by 68.87 crore to 2421.96 crore during the financial year 2021-22 compared to 2490.83 crore during the previous year. The standalone Profit After Tax (PAT) decreased by 655.52 crore to 977.52 crore against 1633.04 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 have resulted in increase in profit of consolidated group by 12.13 crore mainly due to inclusion of profit of SJVN Arun-3 Power Development Company Pvt. Ltd. and proportionate share of profit of CPTC.

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 1.15 per share has been paid in the month of February 2022. In addition, your Board has recommended a final dividend of 0.55/- per Share. Thus, subject to your approval, a total dividend of 1.70 per share (668.07 crore) is proposed to be paid for FY 2021-22 against 2.20 per share (864.55 crore) paid during the previous year.

6. PROGRESS OF PROJECTS (HYDRO & THERMAL)

I. 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 run- of-the-river scheme with 4 hours peaking and is designed to 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 the commissioning and thereafter it will be handed over 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 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 the PDA, Project is scheduled to be completed within 5 years reckoned from the financial closure. Financial Closure was achieved on

06.02.2020 for ^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 the Generation component of the Project at an estimated cost of ^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 comprising of Civil Works in Dam complex area and 3.1 km Head Race Tunnel (HRT) was awarded to M/s Jaiprakash Associates Ltd. on 22.09.2017. Work is in progress at all the fronts. Diversion of River was completed on

01.02.2021. Dam excavation in left bank, right bank and Dam pit is in progress and 96% has been completed. Intake tunnels have been completed and construction of Intake structure is in progress. HRT heading in this package has been completed and 50% benching has also been completed. Overt lining is also in progress with 25% being already completed.

Civil Package-2 comprising of Civil Works in Power House and 8.6 km Head Race Tunnel (HRT) was awarded on 19.03.2018 to M/s Patel Engineering Ltd. and Contract agreement was signed on 29.03.2018. All access adits to HRT, Power House, Pressure Shafts, Machine Hall, Transformer Hall and Butterfly Valve House have been completed. Excavation of Transformer Hall, Butterfly Valve House and Collection Gallery have been completed. Progress at all other fronts is in advance stage. 99% excavation of Machine Hall and 31% excavation of Surge Shaft has been completed. Pressure Shafts and TRT is being excavated. Excavation and lining of HRT is in progress; 54% heading, 11% benching and 3% overt lining has been completed. Overall in both C-1 and C-2 packages 66% heading and benching excavation of HRT have been completed.

HM Package and EM Package were awarded on 11.04.2018 and 30.04.2018 respectively. Procurement/ fabrication of different components is in advance stage. Supply of HM and EM components is in progress.

Construction Power: Construction of 33 kV Transmission Line (46 km) for Construction Power has been completed. Line has been charged upto 30 km and charging of balance line is in progress.

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. However, the Substation within India is changed to Sitamarhi. 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 ^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 being carried out through five packages. All packages i.e. two Tower packages, one Substation package and two Conductor packages have been awarded and the work is in progress. 33% Tower foundations & 22% erection of Towers have been completed and balance work is in progress.

ii) Naitwar Mori HEP (60 MW):

Naitwar Mori Hydro Electric Project (60 MW) is located on Tons River, a major tributary of Yamuna in Uttarkashi district of Uttarakhand. It is designed as run-of-the-river Project and has a potential to generate 213 MU 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 Forest clearance Stage-II 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 ?648.33 Crores was accorded by GoI on 16.10.2017 at December, 2016 price level and Project is to be completed in 48 months from date of award of Major Civil works.

Honble Union Minister of State for Power (Independent Charge) and Honble Chief Minister of Uttarakhand laid the foundation stone of the Project at Mori on 30.03.2018. Main works are divided into three packages namely - Civil works (Package-1) i.e. Barrage, Desilting Tank, Intake and Power Channel, 4.33 km HRT, Surge Shaft, Power House, TRT; Hydro Mechanical works (Package-2) and Electro Mechanical works (Package-3).

Main Civil Works at various fronts are in full swing. Excavation work of all major components has been completed. 99% Barrage concreting, 94% Desilting tank concreting, 83% HRT overt lining and 8% HRT invert lining has been completed. Excavation of Pressure Shaft completed and erection of Steel liner is in progress. Concrete lining of Surge Shaft is in progress and 14% has been completed. In Machine Hall, pit free of both the Units achieved and EM works are under progress. 11% lining of both Draft Tubes and excavation of both shafts for DT gates and Bus duct in Transformer Hall completed.

Hydro-Mechanical works package was awarded on

18.04.2018 to M/s GMW Private Ltd. Approval of design and drawings have been accorded. Major HM components have been received at site and supply of remaining components is in progress. Erection of Radial Gate in bay-1 and bay-2 completed and is under progress in bay-3. Erection of Steel liner in Pressure Shaft is in progress.

Electro-Mechanical works package was awarded on

11.06.2018 to M/s Voith Hydro Private Ltd. Major EM components have been received at site and supply for remaining components is in progress. EOT Crane was erected on 04.01.2022 and is functional. Pit free for both the Units has been achieved and erection of EM components is in progress.

Power Evacuation System of NMHEP: LoA for construction of 220 kV Transmission line from NMHEP Switchyard to HPPTCL network at Snail was 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), tree enumeration work completed and connectivity granted by HPPTCL. Forest Clearance Stage-1 & 2 for Himachal Pradesh region and

Uttarakhand region FC Stage-1 have been accorded.

iii) Buxar Thermal Power Project (1320 MW):

MOU was signed between SJVN, Bihar State Power Holding Company Limited and Bihar Power Infrastructure Company for the development of 1320 MW Thermal Power Project at village Chausa in District Buxar of Bihar on 17.01.2013. SJVN acquired the Project executing Company 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 ?436.68 Crores was accorded by GoI on 26.05.2015. MoEF&CC accorded Environment Clearance on 28.02.2017. 1058.33 acre private land for Project components was transferred in the name of STPL on

12.12.2017. Consent to Establish (NOC) was granted by Bihar State Pollution Control Board on 03.09.2019.

CCEA accorded investment approval of Main Plant 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.

Main Plant works: Single EPC package was awarded to M/s L&T on 22.06.2019 and construction activities are in progress. Area grading work in Main Plant area is in progress, 81% excavation and 54% filling has been completed. 82% piles for various components, 28% structure erection for Boiler-I and 7% structure erection for Boiler-II has been completed. Structure erection work of Boiler-I & II, ESP-I & II, STG I & II, DM plant and CHP system is in progress. Chimney work is in progress and 32% has been completed.

Rail Infrastructure: The DPR for Rail infrastructure was approved by East Central Railway (ECR), Hazipur on

05.09.2019. For Coal linkage, Amrapali and Magadh coal blocks have been identified as source by Central Coalfields Ltd. (CCL) and Fuel supply agreement was signed with Central Coalfields Ltd on 27.07.2021. Work is divided into seven packages out of which 4 packages (Package- 1 to 4) have been awarded and tendering work for remaining packages is in process. Supply of Rails (Package-1) and PSC Sleepers (Package-2) has been completed. Railway siding work inside plant & railway land (Package-3) and Civil works for outside plant area & Private land (Package-4) are also in progress. Power Evacuation system: Power Purchase Agreement (PPA) for the Project was signed with Bihar State Electricity Board (later Bihar State Power Holding Company Limited, BSPHCL) for 85% share of Power at bus bar rate. PPA (supplementary agreement) signed with BSPHCL on

09.04.2021 for construction of Transmission Lines for Power evacuation. Grant of Connectivity for Power Transmission from Buxar TPP was accorded by Bihar State Power Transmission Company Ltd. (BSPTCL) on 11.03.2022. Power evacuation system is divided into 4 Transmission line packages. LoA for all four lines has been issued by BSPTCL. Tower foundation and erection work is 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.

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. Concession agreement was signed between KHEL and RGoB on 29.06.2020.

Infrastructure works i.e. Bridges, Approach roads, Transmission Line & substation for construction power and site offices have been completed.

Main Civil works were 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.

For debt funding of project, MoU has been signed between KHEL and consortium of PFC Ltd. & REC Ltd., India on

09.03.2021. Negotiation on terms & conditions with Consortium is in process.

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 Nirath spread over Shimla and Kullu Districts of Himachal Pradesh. The project will generate 758 MU of electric energy in a 90% dependable year.

Investment approval amounting to Rs. 1810.56 Cr for main works accorded on 20.11.2020 with completion period of 62 months from date of investment approval. Foundation stone laid by Honble Prime Minister on 27.12.2021. Financial closure of the project has been achieved on 28.02.2022 and agreement signed with State Bank of India.

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) and works at various fronts are in full swing. Bailey bridge for river crossing has been completed. Diversion tunnel (617 m) has been completed and river has been successfully diverted on

25.06.2022. Stripping of right bank for Dam, Power house and TRC up to EL. 820m is in progress and 46% work completed. Infrastructure works i.e. bailey bridge and approach roads completed. Construction of permanent steel truss bridge (84m) for river crossing is in progress.

For EM package, work awarded to M/s Voith Hydro on

16.07.2021 and contract agreement signed on 12.08.2021. Layout plan of power house, model test procedure and EOT deign memo of Power House and GIS have been approved. Construction of store at site is in progress.

Diversion of NH-5 (1.36 km) is required for project construction which is being carried out through HPPWD and other related activities i.e. Trace cutting, bench development and stabilization are in progress.

Private land for construction of project is being purchased directly from land owners and some patches of land are being acquired as per LARR Act. Out of 13.90 ha private land being

purchased directly, 12.64 ha purchased. Private land being acquired through Act for which R&R award and land acquisition award u/s-31 of LARR for Kullu district has been issued and for Shimla district R&R plans have been approved by Deputy Commissioner.

For Power evacuation, tender for construction of transmission line from switchyard to common pooling station (ISTS network) at Nanj is in progress.

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 was signed with Govt. of Himachal Pradesh on 25.09.2019.

Investment approval amounting to Rs. 687.97 Cr for main works accorded on 01.10.2020 with completion period of 54 months from date of commencement of construction works. Foundation stone laid by Honble Prime Minister on 27.12.2021. Financial closure of the project was achieved on 18.04.2022 and agreement signed with H.P. State Cooperative bank. Construction of approach road to Dam site (3.125 km) and other approach roads to work fronts have been completed. Construction power as required is available at site. Construction of office building at site has been completed and construction of non-family accommodation is in progress.

EPC package for main Civil & HM works has been awarded to M/s Rithwik Projects Pvt Ltd., Hyderabad on 06.05.2021. Excavation of diversion Tunnel completed on 23.12.2021 and river diverted on 15.02.2022. Excavation of u/s coffer dam completed on 13.04.2022 and concreting is in progress. Stripping of banks for construction of dam in progress, cumulative 63% stripping work completed. Excavation of Powerhouse is in progress and 50% excavation work is completed.

For EM package, work awarded to M/s Voith Hydro on

19.01.2022 and contract agreement signed on 11.02.2022. Kick-off meeting held on 20.04.2022.

Essential Private land (3530 kanal) as required for project has been directly purchased from land owners and 2301 kanal of Govt. land will be taken on lease basis which is under process of approval with GoHP.

For Power evacuation, work for construction of transmission line from switchyard to switching station at Sujanpur awarded on 14.06.2022 to M/s KEC International Ltd.

II. PROJECTS UNDER PRE- CONSTRUCTION, SURVEY & INVESTIGATION STAGES: -

i) Sunni Dam HEP (382 MW):

Sunni Dam HEP is a run-of-the-river 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. Govt. of H.P. reallotted the project on "Stand Alone Basis" to SJVN on

29.08.2017. Investment approval for carrying out preconstruction activities amounting to Rs 85.09 crore accorded by GoI on 18.04.2018. MOU was signed with Govt. of Himachal Pradesh on 25.09.2019. Ground breaking ceremony of project was presided over by Honble Prime Minister on 27.12.2021.

DPR of project has been concurred by CEA on 11.02.2021. Forest Clearance Stage-1 (FC-1 ) and Environmental Clearance accorded by MoEF&cC on 22.12.2021 and

04.02.2022 respectively. For FC-2, compliance report of FC-1 has been submitted to MoEF&CC on 11.02.2022 and is under process of approval.

For acquisition of private land, notification under section -11 of LARR Act has been issued by GoHP on 19.01.2021. Land compensation cost has been deposited and objection hearings under section-15 for both districts completed. R&R plans are under formulation/ approval with State Administration.

For evacuation of power from project, location of common pooling station has been finalized by CEA at village Nanj. Identification of land required for transmission line up to common pooling station has been completed.

For investment approval of main works, proposal amounting to Rs. 2614.51 Cr. at March, 22 price level recommended by PIB on 27.01.2022. CCEA approval is under process with GoI.

Works for construction of exploratory drifts along Diversion Tunnel (DT) and Powerhouse complex have been completed. Works for construction of Office building and Bachelor accommodation have been awarded on 30.06.2021 and are in progress. Work for construction of steel truss bridge has also been awarded on 19.01.2022.

For main Civil and HM works, Award of work on EPC mode is under approval.

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. Govt. of H.P. re-allotted the project on "Stand Alone Basis" to SJVN on

29.08.2017. Investment approval for carrying out preconstruction activities amounting to Rs. 72.478 Cr. has been approved by GoI on 16.03.2018. MOU was signed with Govt. 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. After initial investigation, it was found that geology at existing location of project is not favourable. Accordingly, now an alternative scheme in tandem with u/s Luhri HEP stage-1 has been identified for which commercial viability is being established.

Process for statutory clearances i.e. Environmental Clearance, acquisition of private land, diversion of forest land etc are being initiated, however, same will be finalized only after finalization of DPR as per new scheme.

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. DPR of project with 252 MW installed capacity was concurred by CEA on 07.08.2012.

MoJS, GoI notified revised e-flows on 09.10.2018 for projects on River Ganga and tributaries. In order to comply the same, 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. Balance four chapters will be cleared after finalization of general layout and geotechnical investigations. Subsequently, in compliance to Ministry of Power letter dated

06.07.2021, all S&I activities which are required for revision of DPR are on hold till further order of Honble Supreme Court of India. Matter is being followed up with MoP/ MoJS to consider the project for development.

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 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 acquisition of private land, award has been issued by DM, Chamoli on 10.07.2019. Compensation amount has already been deposited with Distt. Administration for disbursement.

For investment approval of pre-construction activities, consolidated proposal amounting to Rs. 299.29 Cr. including the cost of acquisition of Debal SHEP (5 MW) was submitted to MoP on 15.04.2021. CEA has vetted the cost on 17.01.2022 and same is under approval with MoP.

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. Detailed proposal has been submitted to GoUk on 23.03.2022.

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 preconstruction activities of project has been accorded by GoI at an estimated cost of Rs 84.50 Cr. 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. Forest Clearance Stage-1 has been recommended by REC, MoEF&CC and case submitted to MoEF&CC for approval on

19.01.2022. Proposal is under process of approval.

For private land acquisition, R&R plan approved by Commissioner, Garhwal on 15.06.2021 and land compensation is under finalization.

Tariff of project is on higher side and matter was taken up with GoUk on 23.03.2022 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 on 24.11.2018 and MoU was signed on 25.09.2019. Investment approval for carrying out preconstruction activities of project has been accorded by GoI at an estimated cost of Rs 93.24 Cr. 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.

Drilling and drifting works were awarded on 26.02.2021 and

17.03.2021 respectively and work of detailed Topographical survey awarded on 04.01.2021. Sensitization meetings in presence of Distt. Administration are being conducted to create awareness on direct and indirect project benefits for ensuring work continuity.

EIA/ EMP report for EC is under preparation. For diversion of forest land, proposal has been submitted to MoEF&CC on

14.04.2021. Various NOCs as required are being obtained for Distt. Administration. Application for Wildlife Clearance has been submitted to MoEF&CC on 27.04.2021 and recommended by State Board for Wildlife to National Board for Wildlife for final approval on 22.03.2022.

vi) Reoli-Dugli HEP (456 MW):

GoHP allotted this project with capacity of 430 MW in Chenab basin on 23.10.2019. Template MoU signed with GoHP on

06.11.2019. DPR of project has been prepared and submitted to CEA on 28.12.2021. After investigation, capacity of project has been revised to 456 MW against allotted capacity of 430 MW. Drilling work has been awarded on 20.07.2021 and is in progress.

ToR approval received from MoEF&CC on 18.03.2021. Consultant for Environmental Clearance has been hired and preparation of EIA/EMP report in progress. For diversion of Forest land, case submitted to MoEF&CC on 31.03.2022. CAT plan is under preparation.

Proposal for investment approval for pre-construction activities has been vetted by CEA and is under approval in MoP.

vii) Purthi HEP (232 MW):

GoHP allotted this project with capacity of 210 MW in Chenab basin on 09.08.2019. Template MoU was signed with GoHP on

25.09.2019. Project is in pre-DPR stage and six preliminary chapters submitted to CEA on 02.09.2020. 1st consultation meeting held on 20.10.2020. After investigation, capacity of project revised to 232 MW against allotted capacity of 210 MW. Drilling and drift works are under progress. Pre-DPR chapters are being prepared.

ToR approval accorded by MoEF&CC on 26.03.2021. Consultant for EC has been hired and preparation of EIA/EMP report in progress. CAT plan is under preparation.

Proposal for investment approval for pre-construction activities has been vetted by CEA and is under approval in MoP.

viii) Bardang HEP (175 MW):

GoHP allotted this project with capacity of 138 MW in Chenab basin on 09.08.2019. Template MoU was signed with GoHP on

25.09.2019. Project is in Pre-DPR stage and six preliminary chapters submitted to CEA on 30.09.2020. 1st consultation meeting held with CEA on 06.11.2020. After investigation, capacity of project revised to 175 MW against allotted capacity of 138 MW. Pre-DPR chapters are being prepared. Drilling and drift works for geotechnical investigations are in progress.

ToR approval accorded by MoEF&CC on 26.03.2021. Consultant for EC has been hired and preparation of EIA/EMP report in progress. CAT plan is also under preparation.

ix) Sach Khas HEP (287 MW):

GoHP allotted this project with capacity of 267 MW in Chenab basin on 05.01.2021. Project is in pre-DPR stage and six preliminary chapters submitted to CEA on 21.09.2021. 1st consultation meeting held on 06.01.2022. After investigation, capacity of project revised to 287 MW against allotted capacity of 267 MW.

ToR accorded by MoEF&CC on 04.03.2022. Consultant for EC has been hired and preparation of EIA/EMP report is in progress.

x) Tandi - Rashil HEP (268 MW)

Tandi HEP and Rashil HEP were allotted by GoHP with capacity of 104 MW and 130 MW respectively in Chenab basin on

05.01.2021. After preliminary studies, a single scheme of 268 MW Tandi - Rashil HEP was found to be more techno-economic feasible and was approved as such by GoHP on 02.07.2022.

xi) Lower Arun HEP (669 MW), NEPAL

Lower Arun HEP was allotted by Govt. of Nepal with capacity 679 MW on 04.02.2021. The project is situated in the Sankhuwasabha and Bhojpur districts of Eastern Nepal on river Arun, downstream of existing Arun-3 HEP (900 MW) which is under construction by SAPDC (wholly owned subsidiary of SJVN). The project is envisaged to be constructed in Tandem with Arun-3 HEP.

DPR of the project was submitted to Investment Board of Nepal,

GoN on 31.10.2021 and approval was accorded on 31.03.2022. DPR also submitted to Cea on 19.11.2021 and is under examination.

Investment approval for pre-construction activities has been accorded by MoP, GoI on 02.03.2022.

xii) Hydro Power Projects in Arunachal Pradesh

MoP, GoI has identified 5 Hydro Power Projects i.e. Etalin HEP (3097 MW), Attunli HEP (680 MW), Emini (500 MW), Amulin (420 MW) and Mihumdon (400 MW) totalling 5097 MW in Dibang basin of Arunachal Pradesh for allocation to SJVN. Meeting with Honble Chief Minister of Arunachal Pradesh was held on 29.12.2021. Discussions with Govt. of Arunachal Pradesh for finalization of terms & conditions for allotment are in progress. Consultant has been hired to carry out due diligence process for Etalin & Attunli HEPs.

xiii) Arun-4HEP (490 MW)

Arun-4 Hydro Electric Project is a run of the river type scheme proposed to harness the hydel potential of river Arun. For the development of Arun-4 HEP in a Joint Venture, a Memorandum of Understanding was signed between SJVN and Nepal Electricity Authority (NEA), in the esteemed presence of Honorable Prime Ministers of India & Nepal at Lumbini, Kapilavastu, Nepal on 16.05.2022.

Project registered with CEA on 08.07.2022. Draft PIB for Investment approval of pre-construction activities submitted to MoP on 22.07.2022 is under process. Draft JV Agreement submitted to NEA on 11.07.2022 is under finalization.

7. PROGRESS OF PROJECTS (RENEWABLE ENERGY)

SJVN is fast expanding its foot prints in the field of Renewables and aims for adding 1 to 1.5 GW Capacity on annual basis. In order to give a thrust to its renewable endeavours, SJVN has registered a Wholly owned Subsidiary namely "SJVN Green Energy Limited" on 30.03.2022.

The Renewable portfolio at present stands at 3.74 GW which includes Operational (103.2 MW), Construction (1270 MW), Pre-Construction (850 MW), S&I (1489 MW) & Pre-Award (33 MW).

I. PROJECTS UNDER OPERATION (103.2 MW)

i. Charanka Solar Power Station

SJVNs 5.6 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 12998 RECs (Renewable Energy Certificates) have been traded in FY 2021-22 and on cumulative basis 33305 RECs. The project has generated 8.595 MUs in the FY 2021-22.

ii. Khirwire Wind Power Station

SJVN has set up its first Wind Power Project of 47.6 MW capacity at Khirwire / 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. 20th January 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 Generation Based Incentive @?0.50 / kWh with a cap of ?1 Crore per MW. Total Gross Generation from the plant for FY 2021-22 was 47.230 MU.

iii. Sadla Wind Power Project

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. PPA was signed with Gujarat Urja Vikas Nigam Limited for 38 MW on 30.01.2018 and for balance 12 MW on 30.03.2019. The project has been fully commissioned on 18.04.2019. Total 102.677 MU had been generated in FY 2021-22.

II. PROJECTS UNDER CONSTRUCTION (1270 MW)

Presently, SJVN Ltd has Five solar power projects under construction with total capacity of 1270 MW in Uttar Pradesh, Rajasthan and Gujarat respectively (listed below).

i. Parasan Solar Park Project

Parasan Solar Park Project of 75 MW of capacity was bagged through Open Competitive Bidding conducted by Uttar Pradesh New & Renewable Energy Development Agency (UPNEDA) on

17.05.2021 and PPA was signed with UPNEDA at a tariff of INR 2.68 per unit. The EPC work was awarded to M/s Solar World Energy Solution Pvt Limited. The project is in advance stage of construction and is likely to be commissioned by September 2022.

ii. Bagodra Solar Power Project

Bagodra Solar Park Project of 70 MW of capacity was bagged through Open Competitive Bidding conducted by Gujarat Urja Vikas Nigam Limited on 26.03.2021. PPA was signed with GUVNL at tariff of INR 2.21 per unit. The EPC was awarded to M/s Refex Energy Limited. The project is in construction stage and is likely to be commissioned by December 2022.

iii. 1000 MW Solar Project under CPSU Scheme

SJVN during the month of September 2021 bagged 1000 MW Solar Project at a tariff of INR 2.45/Unit and a Viability Gap Funding (VGF) of 44.72 Lakh/MW through competitive bidding under the CPSU Scheme. The EPC was awarded to M/s TATA Power Solar System Limited. The project is in construction stage and is likely to be commissioned by January 2024.

iv. 75 MW Gurhah Solar Power Project

SJVN through competitive bidding conducted by Uttar Pradesh New & Renewable Energy Development Agency (UPNEDA) bagged 75 MW Solar Power Projects. PPA has been signed with UPNEDA at a tariff of INR 2.98/Unit. The EPC work was awarded to M/s Solar World Energy Solution Pvt Limited. The project is in construction stage and is likely to be commissioned by May 2023.

v. 75 MW Gujrai Solar Power Project

SJVN through competitive bidding conducted by Uttar Pradesh New & Renewable Energy Development Agency (UPNEDA) bagged 50 MW Solar Power Projects. PPA has been signed with UPNEDA at a tariff of INR 2.98/Unit. The EPC work was awarded to M/s Solar World Energy Solution Pvt. Limited. The project is in construction stage and is likely to be commissioned by May 2023.

III. PROJECTS UNDER PRE-CONSTRUCTION (850 MW)

i. 200 MW BREDA Solar Project

SJVN through open competitive bidding conducted by Bihar Renewable Energy Development Agency (BREDA) bagged 200 MW Solar Power Project in Bihar. Project has been bagged at a tariff of INR 3.11/Unit. The project is under tendering stage for award of EPC works.

ii. 100 MW Raghanesda Solar Project

SJVN through Open Competitive Bidding conducted by Gujarat Urja Vikas Nigam Limited (GUVNL) bagged 100 MW Solar Power Project to be developed in Raghanesda Solar Park in Gujarat. PPA has been signed with GUVNL at a tariff of INR 2.64/Unit. The L-1 bidder has been discovered after e-RA.

iii. 100 MW GUVNL Phase -XIII Solar Project

SJVN through Open Competitive Bidding conducted by Gujarat Urja Vikas Nigam Limited (GUVNL) bagged 100 MW Solar Power Project in Gujarat. PPA has been signed with GUVNL at a tariff of INR 2.29/Unit. The project is under tendering stage for award of EPC works.

iv. 90 MW Omkareshwar Floating Solar Project

SJVN through Open Competitive Bidding conducted by Rewa Ultra Mega Solar ltd. (RUMSL) bagged 90 MW Floating Solar Project at Indira Dam, Omkareshwar, Madhya Pradesh. PPA will be signed with MPSPTCL at a tariff of INR 3.26/Unit. The project is under tendering stage for award of EPC works.

v. 100 MW PSPCL Solar Project

SJVN through Open Competitive Bidding conducted by Punjab State Power Corporation Limited (PSPCL) bagged 100 MW Floating Solar Project in Punjab. PPA has been signed with PSPCL at a tariff of INR 2.65/Unit. The project is under tendering stage for award of EPC works.

vi. 260 MW G UVN L Phase -XIV Solar Project

SJVN through Open Competitive Bidding conducted by Gujarat Urja Vikas Nigam Limited (GUVNL) bagged 260 MW Solar Power Project in Gujarat. PPA will be signed with GUVNL at a tariff of INR 2.3031/Unit. The project is under tendering stage for award of EPC works.

IV. PROJECTS UNDER SURVEY & INVESTIGATION (1489 MW)

i. 880 MW Kaza Solar Park

Ministry of New & Renewable Energy (MNRE) has designated SJVN as the Solar Power Park Developer (SPPD) of 880 MW Kaza Solar Park in Himachal Pradesh. Detailed Project Report (DPR) of the project has been submitted to MNRE in May 2022.The project is likely to be commissioned by end December 2025.

ii. 400 MW Kinnaur Solar Park

Ministry of New & Renewable Energy (MNRE) in the month of February 2022 has designated SJVN as the SPPD of 400 MW Kinnaur Solar Park in Himachal Pradesh. The project is under initial stage of Survey and Investigation.

iii. 209 MW Solar Projects (5 Nos.) in Himachal Pradesh

5 nos. of Solar projects are in survey & investigation stage of development in the state of Himachal Pradesh.

V. PROJECTS UNDER PRE-AWARD STAGE (33 MW)

SJVN through Open Competitive Bidding Process has emerged as L-1 bidder in the following solar projects.

a) BBMB 15 MW (Floating Solar)

b) BBMB 18 MW

Letter of Awards for these projects are likely to be issued shortly.

VI. FUTURE ENDEAVORS

Honble Prime Minister of India has set an ambitious renewable energy target i.e., 175 GW by 2022 and 500 GW by 2030. Aligned with the same, SJVN also aims to become a 5000 MW company by 2023, 25000 MW by 2030 and 50000 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, Ocean Hybrid Platforms Pan India. These opportunities are generally in the form of Competitive Bidding processes. SJVN is looking forward for participation in various other upcoming competitive Bidding processes for Solar, Wind and Hybrid (Solar + Wind) to add projects at rate of 1-1.5 GW per year. In addition, SJVN is also looking forward for direct allocation of Projects from Government Agencies.

8. SUBSIDIARIES AND JOINT VENTURE COMPANIES

A) SUBSIDIARY COMPANIES:

Company has three wholly owned subsidiary companies as on

31.03.2022. The details of the subsidiaries are as under:

1. SJVN Thermal Pvt. Ltd.

SJVN Thermal Pvt. Ltd (STPL) (Earlier, Buxar Bijlee Company Private Limited) has been acquired as 100% subsidiary company of SJVN Ltd on 04.07.2013. The Company has taken up the development of 1320 MW Coal based Thermal Power Project located near village Chausa in District Buxar of Bihar. The cumulative expenditure incurred up to 31.03.2022 is Rs. 4865.32 Cr. The paid-up share capital as on 31.03.2022 is Rs 2511.68 Cr. (previous year: Rs 1896.68 Cr).

2. SJVN Arun-3 Power Development Company Pvt. Ltd. SJVN Arun-3 Power Development Company Pvt. Ltd. (SAPDC) was incorporated in Nepal as a wholly owned subsidiary company of SJVN Ltd on 25.04.2013. The company has been formed to execute the 900 MW Arun-3 Hydro Electric Project in Nepal. This project is situated on river Arun in Sankhuwasabha District of Nepal. The cumulative expenditure incurred up to

31.03.2022 is Rs. 2703.06 Cr. The paid-up share capital as on

31.03.2022 is Rs 2105.41 Cr (previous year: Rs 1360.67 Cr).

3. SJVN Green Energy Limited (SGEL)

SJVN Green Energy Limited (SGEL) has been incorporated as a wholly owned subsidiary company of SJVN Ltd on 30.03.2022 with its registered office at Shimla, Himachal Pradesh. SGEL shall work in the verticals of power generation from renewable sources such as Solar Parks, Wind & Hybrid Projects, Battery Energy Storage system, Biomass, small Hydro and Green Hydrogen based business ventures.

B) JOINT VENTURES:

SJVN has two joint ventures as on 31.03.2022. The details of the Joint Ventures are as under:

1. Kholongchhu Hydro Energy Limited:

Kholongchhu Hydro Energy Limited (KHEL) was incorporated in Bhutan on 12.06.2015 as joint venture Company of Druk Green Power Corporation Ltd, Bhutan (DGPC) and SJVN Ltd. having 50% shareholding each. The Company is formed for the construction of 600 MW Kholongchhu Hydro Electric Project on river Kholongchhu. SJVN has invested cumulative amount of Rs. 240.43 Cr. as on 31.03.2022 (Previous Year Rs 190.43 Cr.).

2. Cross Border Power Transmission Company Limited:

Cross Border Power Transmission Company Limited (CPTC) is a joint venture of SJVN Ltd. with IL&FS Energy Development Company Ltd. (IEDCL), Power Grid Corporation of India Ltd. (PGCIL) and Nepal Electricity Authority (NEA) for implementation of Indian portion of the transmission line from Nepal. Equity contributions by SJVN, PGCIL, and IEDCL & NEA are 26%, 26%, 38% & 10% respectively in the Joint Venture Company. SJVN has invested Rs. 12.61 Cr. as on 31.03.2022 in the joint venture. Transmission line is under operation since February 2016.

9. 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), Govt. of India (GoI) concerning identification and mitigation of environmental impacts of projects. To achieve sustainable development, studies like Environmental Impact Assessment (EIA) and Environment Management Plan (EMP), which are a part of the Comprehensive Environmental Impact Assessment Study, are carried out through highly reputed organizations/NABET

accredited-consultants. All environmental aspects are suitably addressed in the Environment Impact Assessment. Accordingly, an Environment Management Plan is prepared and 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 Hydro Power Station (NJHPS) (1500 MW) and Rampur Hydro Power Station (RHPS) (412 MW) in Himachal Pradesh which are under operation wherein management measures such as Catchment Area Treatment (CAT), Compensatory Afforestation (CA), Muck Management, Restoration of muck disposal sites, quarry sites and construction areas, Green belt development, Biodiversity Management, Fisheries Management, etc. were successfully undertaken. Regular environmental monitoring is done at SJVN projects and six-monthly compliance reports of Environment Clearance are sent to MoEF&CC and other concerned authorities.

SJVN has two projects in construction stage in Himachal Pradesh - Luhri Stage-I HEP (210 MW) and Dhaulasidh HEP (66 MW). At Luhri Stage-I HEP, Environment Management Plan amounting to Rs. 148.60 crore is being implemented. Further, a Corporate Environment Responsibility (CER) plan amounting to Rs. 8.6 crore is also being implemented to address concerns of local population. At Dhaulasidh HEP, Environment Management Plan amounting to Rs. 34.14 crore is being implemented.

Further, SJVN has one project in Uttarkashi District, Uttarakhand which is in advanced-stage of construction namely, Naitwar Mori Hydro Electric Project (NMHEP) (60 MW) located on Tons River, wherein Rs. 42.55 crores have been spent so far against a financial provision of Rs. 32.48 crores on implementation of various environmental management measures, which were appreciated by Government officials during the last Multi-Disciplinary Committee (MDC) meeting. The same have been briefly brought out below:

• For the implementation of the CAT plan, Rs. 12.96 Crores have been deposited against the CAMPA fund. An amount of about Rs. 140.68 lakh have been utilized by Uttarakhand Forest Department against implementation of CAT Plan till date.

• As part of the diversion of forestland, CA over 80.00 ha of civil soyam and forest land has been carried out for which Rs. 1.84 crores have been deposited by SJVN with the CAMPA fund. An amount of Rs. 67.74 lakh have been spent so far against CA works by the Uttarakhand Forest Department.

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

• Under the Fisheries Management Plan, a fish pass, for migratory fish species in the river, is proposed. 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 implemented as per the provisions in the EIA / EMP Report and in line with MOEF&CC guidelines.

• To avoid landslides and soil erosion, Reservoir Rim

Treatment is being implemented, and currently retaining walls are being constructed.

• Noise levels, ambient air quality and water quality of the project area are being regularly 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.

• Bio composter & Plastic waste bailing machine have been procured for treatment of solid waste from project affected villages and project colony.

• Towards sustainable development, AAC bricks (having fly ash content about 68%) is being used in the construction of township & office building.

• To avoid indiscriminate felling of trees, canteen facility is being provided by contractor to the labour force engaged in construction activity of the project.

• For energy conservation, energy efficient BEE 5 Star rating electrical appliances have been procured.

• Environment Management System/ISO 14001 is being implemented.

In addition to the above, SJVN has put up a Grid-connected, 1 MW Solar Power Plant at Nathpa Jhakri Hydro Power Station near Wadhal, Shimla District. 120 kWp On-Grid Solar Power Plant has already been installed and successfully operating at Corporate Headquarters (CHQ), Shimla. Further, Water Solar Heating System of 5000 Ltr. Capacity has also been installed and hot water is being used in the building through this system only. SJVN Corporate Headquarters (CHQ) is designed and constructed with state-of-the-art technology with green building concept equipped with Sewage treatment plant of 90 KLD per day capacity for waste water recycling, rain water harvesting system with capacity of 50 KL, Natural lighting with provision of Sky light Glasses, fully centralized HVAC system, intelligent/automatic sensor-controlled illumination system for conservation of electricity. Further, a Bio-Diversity Park, under CSR initiative is also being developed in association with Municipal Corporation to create mass awareness and sensitivity for the environment.

Energy Audit of SJVN CHQ building has been conducted on FY 2021-22 and recommendation of Energy Audit like improvement of power, use of LED lights in automation system etc. are being implemented. The audit will be conducted after every three years.

Every year, SJVN celebrates World Environment Day on 5th of June across its projects and offices with much zeal and fervor. This time celebrations were organized following social- distancing norms and Government guidelines in respect of COVID-19.

Pledge for environment protection/conservation and talks on environmental aspects were also delivered by heads of projects / power stations to spread awareness and sensitivity about environmental issues. In addition to above, slogan-writing, drawing, photography competitions, awareness programmes, etc. were undertaken and environmental awareness films were also screened for employees. Large scale plantation programs were undertaken across various locations in and around project areas.

10. 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 2021-22 in format prescribed under Companies (CSR Policy) Rules 2014 is annexed as Annexure-V and forms an integral part of this Directors Report.

11. 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.

Nathpa Jhakri Hydro Power Station (NJHPS) and Rampur Hydro Power Station (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 selfbusiness, 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 sections 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, technical education Scheme to the local youth, 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.

Naitwar Mori Hydro Electric Project (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 and simultaneously, for the concurrent monitoring of implementation of aforesaid provision of R&R Plan of NMHEP, the External Monitoring Committee i.e. M/s DAV PG College Dehradun has been hired/appointed by the Administrator-cum- ADM Uttarkashi on 30.12.2021.

Luhri Hydro Electric Project Stage-I (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) falling under district Shimla and district Kullu. The R&R plan for affected families of Distt. Kullu approved by Divisional commissioner Mandi, has been notified whereas the R&R Plan for affected families of District Shimla is under process of finalization and approval of Govt. of HP.

Luhri Hydro Electric Project Stage-II (LHEP Stage-II):

Acquisition of land for construction of 172 MW LHEP Stage -II under Section 8(2) of RFCTLARR Act-2013 has been initiated. Award for SIA study is under process.

Sunni Dam Hydro Electric Project (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 Govt. of Himachal Pradesh. Accordingly, the R&R plan is under progress to be finalized by Govt. of HP.

Dhaulasidh Hydro Electric Project (DSHEP): The R&R plan

of 66 MW Dhaulasidh Hydro Electric Project, HP has been approved by GOHP. A committee consisting of members from HPPWD & Revenue Deptt. of GOHP is evaluating the R&R benefit to be disbursed.

Buxar Thermal Power Project (BTPP): In 1320 MW Buxar Thermal Power Project (BTPP) in Bihar, the acquisition of private land has been completed and compensation of land has been paid as per the provision under RFCTLARR Act, 2013. Rehabilitation and Resettlement policy formulated by Indian Institute of Social Welfare Business Management (IISWBM), Kolkata has been approved by Govt. of Bihar.

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

Devsari Hydro Electric Project (DHEP): In Devsari Hydro Electric Project (DHEP) 194 MW, Uttarakhand, the land acquisition process under RFCTLARR Act, 2013 is in progress. The R&R plan for Project Affected Families (PAFs) was 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 Govt. of Uttarakhand has approved the R&R Plan and declared the Award for 27.462 hectares Private land. District Administration is collecting the details of individual beneficiaries like Adhaar Card, Bank Account details etc. for disbursement of land compensation amount amongst landowners.

Social Impact Evaluation (SIA): The Social Impact Evaluation (SIA) studies of R&R implementation of NJHPS and RHPS was 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 project.

12. RESEARCH AND DEVELOPMENT

SJVN in its commitment towards Research and Development, I n n o v a t i o n , Te c h n o l o g y u p - g r a d a t i o n , a n d P r o d u c t Development in its core area of Power Generation has been consistently striving for excellence.

Specific areas in which R&D/Innovations have been carried out during FY 2021-22 are:

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, following topic has been finalised by SJVN for R&D with IIT Mandi:

‘Study for the optimum height of lift for mass concreting in concrete dam structure

A total 28 no. R&D/innovative measures were taken at Project sites & Corporate Headquarter of SJVN to enhance the operational efficiency of the company. The total expenditure by

SJVN for R&D/ innovations initiatives works for the FY 2021-22 was INR 30.12 Cr. (including taxes). The major innovative initiatives are as below:

• Excavation of exploratory drift for Diversion Tunnel, Main Access Tunnel, Pressure Shaft, Transformer Hall and Tail Race tunnel of Sunni Dam HEP.

• 3D Scanning, modelling & engineering for reclamation of blade segment of Francis runner of NJHPS.

• Reclamation of the Francis runners of NJHPS through in-situ machining, drilling, tapping of holes.

• Application of Epoxy based polymer coating over M80 Grade Concrete to prevent the damage of invert portion of flip bucket of dam spillway.

• Establishment of HP-HVOF ceramic coating facility for silt mitigation at NJHPS.

• Design & implementation of early warning system in Satluj river basin.

• Development of Nitrogen filled LV Bushings for Generator Transformers of RHPS.

• Upgradation of luminaries to flame proof & explosion proof in the sensitive locations to mitigate any possibility of explosions due to presence of combustible gas leakage inside power plant (RHPS).

13. HUMAN RESOURCES

The total manpower on the rolls of SJVN (Direct Recruits and Absorbed employees) as on 31.03.2022 was 1412 and the strength of HPSEB / HP Government employees on deputation on the above date was 49.

Representation of Women Employees is as under:

Group Total Employees as on 31.03.2022 Number of Women employees Percentage of overall staff strength
SJVN (DR + absorbed) 1363 147 10.78%
SJVN (Deputationists) 49 3 6.12%
Total 1412 150 10.62%

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

Group

Total Employees as on 31.03.2022

Physically Challenged Employees (DR + absorbed)

Percentage of Physically challenged employees

VH HH OH Total
Total 1412 07 07 16 30 2.20

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

Group

Total Employees as on 31.03.2022

Representation (DR + absorbed)

SCs SC% STs ST% OBC OBC%
Total 1412 286 21% 97 7.12% 193 14.17%

Organization is committed to continuous growth and development, and gives utmost importance to the enrichment of employee skills and knowledge.

Under the training imparted to its employees during the financial year 2021-22, 54 Online programs, 57 In house programs and 46 External programs were conducted for which 2471 nominations were made. The trainings were imparted through organizations of national repute like IIMs, IITs, NAHRD, DNV GL ASCI, CBIP, and Tunneling Association of India, NEPTEL, India Energy Storage Alliance (IESA), The Institute of Company Secretaries of India (ICSI), Directorate of Energy, H.P. Rock Science South Asia. The programs were conducted on topics

like Preventive Vigilance, Solar, Wind, Floating Solar, Battery Storage Systems, Thermal Power Plant Operation & Maintenance, Energy Meter Communication Control Protocol, Corporate Social Responsibility, Advance Management Development Programs, Companies Act 2013 and Corporate Governance, Conflict Management, Enterprise Risk Management, Advance O&M practice in Super Critical Thermal Power Plant, AutoCAD, Risk Management and its mitigation plans as per Risk Management Policy of SJVN, HV-Gas Insulated Switchgear, Power System Protection and Coordination, Environment Management and Sustainability, Pumps-Design, Operations & Maintenance, Technical Issues of Hydro Power, TlC/TCS/ SCADA for Power Plant Operations, Primavera P6, Contract Labour and New Labour Codes, Effective Communication and Presentation, Netiquettes, 5S & Kaizen and Gender Sensitivity, Capacity Building program for Estate Officers of SJVN, Power Plant Digitalization, etc. to mention a few.

To effectively percolate the Shared Vision and motivate its employees, various In-house/Online/External training programs were organized in all disciplines and at all the levels in SJVN.

Residential workshop was organized for SJVN Management on the Topic "Teaming Leadership-For Top Leaders" at Shirdi, (Maharashtra), from 17th March, 2022 to 21st March, 2022.

Motivational Talk was organized through renowned Motivational Speaker Mr. Sonu Sharma at SJVN, CHQ, Shimla, which was also relayed online for employees posted at various SJVNs Projects/offices located across in India/Nepal/Bhutan. Besides two more Motivational Talks were organized through Ms. Mary Kom and Ms. Anju Bobby George on the occasion of International Womens Day 2022 (i.e. on 8th March, 2022), which were attended by SJVNs Women employees posted at various projects/offices.

14. 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 functions on different occasions were also held, thus, resulting in better employee-employer relations and cordial industrial relations were maintained during the year.

15. STATUTORY AND OTHER INFORMATIONS

The information required to be furnished as per the Companies Act 2013, SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 and Government Guidelines, 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 Practicing Company Secretary on Corporate 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. ESG Report- Annexure - VII

h. Certificate regarding Non-Disqualification of Directors - Annexure - VIII

i. Secretarial Audit Report - Annexure - IX

j. Form No. AOC-2 - Annexure - XVII

16. DIRECTORS RESPONSIBILITY STATEMENT

The Directors state that:

• in the preparation of the annual accounts for the year ended March 31, 2022, 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 31,2022 and of the profit of the Company for the year ended on that date;

• the Directors have taken proper and sufficient care 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 financial controls 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.

17. DECLARATION OF INDEPENDENCE BY INDEPENDENT DIRECTORS

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 under Regulation 25 (8) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

18. SECRETARIAL STANDARDS

The Company has complied with the applicable Secretarial Standards during the Financial Year ending 31.03.2022.

19. 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 2021-22 has been disclosed in Report on Corporate Governance.

20. RISK MANAGEMENT FRAMEWORK

The risk management framework entails formulation of a Risk Matrix to assign the likelihood of occurrence to the assigned risks along with definition of nature of risk viz. controllable, Uncontrollable & partly controllable, suggesting a mitigation mechanism and lead responsibility centre. The risk management policy has a defined Risk Organization Structure with Chief Risk Officer at the helm supported by Risk Controller along with Risk Managers and Risk Officers performing the line functions.

The Risk Management Strategy includes assessment of risk to designate as falling under Avoidance, Transfer, Reduction or Retention with associated action plan.

The Risk Management Policy has been disclosed on the website of the company and may be accessed at Investor Relation Section on SJVN website www.sjvn.nic.in.

21. SECRETARIAL AUDIT

The Board appointed Shri Santosh Kumar Pradhan, Practicing Company Secretary, to conduct Secretarial Audit for the Financial Year 2021-22. The Report of the Secretarial Auditors for the year ended 31.03.2022 is placed at Annexure-IX. Reply of Board to observations of Secretarial Auditor is placed at Annexure-X.

22. STATUTORY AUDIT

M/s APT & Co. LLP, Chartered Accountants, were appointed by Comptroller & Auditor General of India, as Statutory Auditors of the Company for the financial year 2021-22.

The Revised Report of the Statutory Auditors to the Members on the Standalone and Consolidated Accounts for the year ended

31.03.2022 is placed at Annexure-XI and Annexure-XIII respectively. Reply of Board to observations of Statutory Auditor on Internal Financial Control on the Standalone and Consolidated Accounts are placed at Annexure-XII and Annexure-XIV respectively. Observations/ Comments of the Comptroller and Auditor General (C&AG) of India on the Standalone and Consolidated Accounts for the year ended

31.03.2022 are placed at Annexure-XV and Annexure-XVI respectively. Comments of C&AG being NIL the reply by the Board thereto is not applicable.

23. 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.

24. COST RECORDS AND 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 2021-22. The Cost Audit Report for the year ended 31st March 2021 was filed with MCA on 01.09.2021.

25. 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 processes, 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, policies, 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 co-ordination 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 Audit observations and Action Taken reports are placed before the Audit Committee headed by Independent Directors. The recommendation and directions of the Audit Committee are carried out and complied with.

26. RELATED PARTY TRANSACTIONS & POLICY

In compliance with the provisions of Regulation 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company has formulated a Policy on Materiality of Related Party Transactions and dealing with Related Party Transaction, duly approved by the Board of Directors and the same has come into force with effect from 1st October 2015.

All contracts/ arrangements/ transactions entered by the company during the financial year with related parties were in the ordinary course of business and on arms length basis. During the year, the company had not entered into any contract/ arrangement/ transaction with related parties, which could be considered material in accordance with the policy of the company on materiality of related party transactions or provisions of SEBI (LODR) Regulations, 2015. Your attention is drawn to the Financial Statements, which sets out the Related Party Disclosures under Note no. 2.46.

The Policy on Materiality of Related Party Transactions and dealing with Related Party Transaction has been disclosed on website of the Company and may be accessed at Investor Relation Section on SJVN website www.sjvn.nic.in.

27. 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. Directors Report / Financial Statements in respect of following Subsidiary Companies are also included in this Annual Report: -

a) SJVN Thermal Private Limited.

b) SJVN Arun-3 Power Development Company Private Limited, Nepal.

c) SJVN Green Energy Limited.

28. DETAILS OF DIRECTORS OR KMP APPOINTED/ RESIGNED

During the FY 2021-22, the following changes took place in the composition of the Board of Directors or KMP of the Company: -

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 (Power) was appointed as Part-Time Official Director (GoHP Nominee) w.e.f. 22nd June 2021.

c. Shri Tanmay Kumar, Joint Secy., Ministry of Power, Government of India (GoI) ceased as Part Time Official Director (GoI Nominee) on withdrawal of Nomination by appointing authority w.e.f. 31st August 2021.

d. Shri Raghuraj Rajendran, Joint Secy., Ministry of Power, Government of India (GoI) appointed as Part Time Official Director (GoI Nominee) w.e.f. 13th September 2021.

e. Dr. Udeeta Tyagi and Shri Saroj Ranjan Sinha were appointed as Part Time Non-Official Independent Director

w.e.f. 08th November, 2021.

f. Dr. Danveer Singh Yadav was appointed as Part Time Non-Official Independent Director w.e.f. 09th November, 2021.

g. Shri Subhash Chander Negi and Dr. Rajnish Pande ceased to be Part Time Non-Official Independent Director on 25th March, 2022 on completion of their tenure.

The following changes took place during the current financial year 2022-23 till the date of the Directors Report:

a. Shri Surinder Pal Bansal who was holding the post of Director (Civil) since 01st April, 2019 has been placed under suspension by Ministry of Power, Government of India Order No.C-13011/52/2022-V&S dated 28th July, 2022.

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

The Board Meetings held during the Financial Year 2021-22 and the attendance of the Directors therein is mentioned in the Report on Corporate Governance.

29. 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.

30. 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.

31. IMPLEMENTATION OF OFFICIAL LANGUAGE

In order to ensure the implementation of the Official Language Policy of the Govt. of India, all possible efforts have been made by the company to achieve the targets as specified by the Department of Official Language.

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 during the year and under this scheme a total 186 Employees/Officers were awarded cash prizes amounting to 9,80,110/-(Approx.).

15 Hindi workshops/seminars have been organised and 261 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, Hindi Vyakaran Rajbhasha Niti & Shodhpatra competition) is a regular feature and besides this number of competitions were also organised during "Rajbhasha Pakhwada". In these competitions 201 no. of employees were awarded cash prizes amounting to 2,89,900/-.

To popularise Hindi amongst the students of Schools/ Colleges/ Institutions/Universities situated in the vicinity of projects as well

as Corporate Office, Shimla various Hindi competitions were organised during the year under review and 63 no. students were awarded cash prizes amounting to 37,000/-.

To popularise Hindi in a big way a Akhil Bhartiya Kavi Sammelan was organised on 24.09.2021 at Shimla.

The Officials from Ministry of Power inspected the progress of use of Hindi at CHQ, Shimla 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 26.07.2021 & 29.12.2021.

To give impetus to the multi-facet talent of employees an inhouse bi-annual Hindi magazine "Himshakti" was published and circulated. Out of total expenditure on purchase of books, 85.71% of amount was spent on purchase of Hindi books.

32. AWARDS & ACHIEVEMENTS

1. 25 March, 2022: SJVN conferred with prestigious Global CSR Excellence and Leadership Award by World CSR Congress in Mumbai for the Best Covid -19 Solution for Community Care.

2. 19 December, 2021: Shri Nand Lal Sharma, Chairman & Managing Director, SJVN, has been conferred with HIM RATTAN Award by Promoters of Social & Cultural Heritage of Himachal Pradesh at, Shimla.

3. 15 December, 2021: SJVN has been awarded the SHRM India HR Excellence Award 2021 for future focused excellence in the field of People Management & Excellence in Community Impact.

4. 05 December, 2021: Shri Nand Lal Sharma, Chairman & Managing Director, SJVN Conferred Award under Owner under whose Guidance the Best Built Infrastructure Project was Built.

5. 03 September, 2021: SJVN has been conferred with prestigious Dun & Bradstreet - Corporate Award 2021 in the category of Best Growth Performance-Power.

6. 17 August, 2021: Shri Nand Lal Sharma, CMD SJVN, Conferred with LIFETIME ACHIEVEMENT AWARD - TROPHY for the year 2020 by INDIAN CONCRETE INSTITUTE, Shimla.

7. 04 June, 2021: Sh. Nand Lal Sharma, Chairman & Managing Director, SJVN conferred with PSU Award of the Year 2020 by Dalal Street Investment Journal (DSIJ).

33. OTHER MAJOR DEVELOPMENTS

1. 31 March, 2022: SJVN has incorporated a fully owned Subsidiary Company ‘SJVN Green Energy Limited (SGEL).

2. 17 March, 2022: SJVN secured 100 MW Grid Connected Solar Power Project in Gujarat through Tariff Based Competitive Bidding conducted by Gujarat Urja Vikas Nigam Limited (GUVNL).

3. 26 February, 2022: SJVN bagged its first ever 15 MW Grid Connected Floating Solar PV Power Project at Nangal pond, near village Neilla, District Bilaspur, Himachal Pradesh.

4. 11 January, 2022: SJVN bagged two grid connected solar power projects of 125 MW capacity through tariff based Competitive Bidding Process conducted by Uttar Pradesh New & Renewable Energy Development Agency.

5. 11 January, 2022: SJVN granted Power Trading License for interstate trading of electricity by CERC.

6. 29 December, 2021: SJVN allotted 05 Hydro Electric Projects having total capacity of 5097 MW by Govt. of Arunachal Pradesh.

7. 27 December, 2021: Prime Minister Shri Narendra Modi virtually laid the Foundation Stones of SJVNs 210 MW Luhri Stage-1 Hydro Electric Project located in Shimla & Kullu districts of Himachal Pradesh and 66 MW Dhaulasidh Hydro Electric Project situated in Hamirpur & Kangra districts of Himachal Pradesh.

8. 03 November, 2021: SJVN bagged 100 MW Grid connected Solar PV Power Project from Punjab State Power Corporation Ltd.

9. 14 August, 2021: SJVN bagged 200 MW Grid connected Solar PV Power Project in Bihar.

10. 11 July, 2021: Memorandum of Understanding signed for the development of 679 MW Lower Arun HEP between SJVN & Investment Board of Nepal in Kathmandu Nepal.

34. PARTICULARS OF LOANS GIVEN, INVESTMENTS MADE GUARANTEES GIVEN AND SECURITIES PROVIDED UNDER SECTION 186 OF COMPANIES ACT, 2013

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 Refer Note 2.50
Securities provided Nil

35. DETAILS OF NON-CONVERTIBLE SECURITIES ISSUED

During the year, the company has issued Non-Convertible, Redeemable Debenture of Rs.1000.00 Crore through private placement at a coupon rate of 6.10% p.a for 5 years tenor. List of Investors are as under: -

Sr. No. Issue size (including ISIN No) Name(s) of Debenture Holder Date of Allotment Date of Maturity
1 Rs. 500 Crore ISIN: INE002L08010 S B I Capital Markets Limited 29.09.2021 29.09.2026
2 Rs. 465 Crore ISIN: INE002L08010 Axis Bank Limited
3 Rs. 25 Crore ISIN: INE002L08010 Trust Investment Advisors Pvt Ltd.
4 Rs. 10 Crore ISIN: INE002L08010 Mahindra Manulife Dynamic Bond Yojana

36. DETAILS OF EXTERNAL COMMERCIAL BORROWINGS (ECB)

During the year, the company has issued ECB from PNB, Dubai amounting to USD 500 million at an interest rate of 6M LIBOR plus spread of 130 basis point and upfront processing charges 1.50% p.a. for 5 years tenor.

37. GENERAL

Directors of your Company state that no disclosure or reporting is required in respect of the following items as there were no transactions/ events on these items/ matters 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 material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Companys operations in future.

5. There have been no Material Changes and Commitments affecting the financial position of the company which have occurred between the end of the financial year 2021-22 and the date of this report.

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

7. There have been no changes in the nature of business of the company during the year.

8. No application was made or any proceeding was pending against SJVN Limited under the Insolvency and Bankruptcy Code, 2016 during the financial year 2021-22.

38. 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, Uttar Pradesh 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 Office of the Comptroller and Auditor General of India and the Auditors. Last but not least, the Board commends the hard work and 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)
Chairman and Managing Director
Date: 12th August, 2022 DIN: 03495554
Place: Shimla