My heartiest greetings to all of you on behalf of the NSPCL family. It is my pleasure to share with you the performance of your company and present the 22nd Annual Report of the company for the year 2020-21.
This year has been a challenging one as the COVID-19 pandemic outbroke in the financial year continued its effect on economic activities across the world. With lockdowns, the lives of people and operations of businesses were adversely affected. During this difficult time, to safeguard the people, businesses and all the stakeholders, the Government of India has supported with stimulus economic package under the ‘AatmaNirbhar Bharat Abhiyaan’, to aid our country in coming out of the Coronavirus crisis by making us self-reliant.
With the initiations of unlocking activities from mid-2020, your company met the regained demand of economic activities in various sectors by contributing to customers’ output accordingly. Your company has taken several measures to keep its Generation on bar to meet the grid demand while complying with the required protocols as specified by the Government. The situation was reviewed on a daily basis to meet any contingency. Your Company continued to pursue proactive measures to prioritize the health of its employees their families, associates and surroundings and extended great care to Covid-19 affected employees to recover at the earliest thereby ensuring uninterrupted essential service to customers in this tough time. We continued our care for the community by extending CSR activities with a focus on healthcare-related activities.
Your company’s employees’ continued commitment and dedication despite the pandemic’s challenging environment in the financial year has been acknowledged in the form of NSPCL being recognised as one of the Great Places to Work in India. My heartfelt appreciation to everyone who contributed to the success. I, on behalf of the NSPCL family, assure you that we will continue our efforts to grow your company to greater heights.
Wishing you the best of health!
In FY 2020-21, our existing Power Plants have shown outstanding performance throughout the year. CPP-IIs at Bhilai, Durgapur and Rourkela with a combined capacity of 314 MW, has operated at an availability factor of 92.47% and generated 2310.12 MU, PLF 83.98% in 2020-21. Bhilai PP-III (2x250 MW) had generated 3209.97 MU, PLF 73.29% with a DC of 101.915%. NSPCL’s total Generation was 5520.09 MU, PLF 77.41% in 2020-21 compared to 5165.40 MU, PLF 72.24% in 2019-20.
During the same time, remarkable progress was achieved on the front of under-construction Projects – Durgapur PP-III and Rourkela PP-II Expansion Projects. With the commissioning of these Projects targeted in this year, we shall see NSPCL’s capacity increased from the present capacity of 814 MW to 1104 MW with a percentage increase of about 36%. Works for the project are in full swing and the Units are targeted to be commissioned in 2021-22.
Your Company in 2020-21 received 2.01 MMT of Coal under FSA, which is around 83.55% of ACQ. About 2.89 LMT was arranged by your company through other sources including e-Auction.
NSPCL is committed to providing reliable power to SAIL.
Your company recorded a total income of Rs. 2758.15 Crs. during 2020-21 against Rs. 2891.46 Crs. during 2019-20. The Profit After Tax (PAT) for the year 2020-21 was Rs. 348.68 Crs. against Rs. 368.96 Crs. in 2019-20. The decrease in sales was due to the availability of FSA coal at a lower rate than the costly e-auction used in the last year. Operational profit in F.Y. 2020-21 is higher than the previous year. However, in previous year 2019-20 Company received Rs. 26.89 Crores as insurance receipt resulting in higher PAT.
A total dividend of Rs. 200 Crs. Will be paid to the promoters in 2020-21 (Including the interim dividend of Rs.150 Crs. And final dividend of Rs.50 crore). The total dividend shall be Rs.200 Crs. Which shall be 57.36% of the profit after tax for the year. Over the years, your Company has paid Rs. 1390 Crs. to the promoters by way of dividends till date and this is about 141.8% of paid-up capital of the Company.
NSPCL’s track record of 100% realisation of energy bills was also maintained in 2020-21.
Sustainable growth has always been one of the pillars of NSPCL’s growth structure. Several proactive measures have been taken for SPM, SOx & NOx mitigation. Dry ash collection systems at Bhilai, Rourkela & Durgapur are under operation. Actions for ESP up-gradation to comply with the statutory environmental norms have already been undertaken in all stations of NSPCL. To reduce the emission of SOx, NOx, Flue Gas Desulphurisation (FGD) system and DeNOx system are being implemented through NTPC in all NSPCL stations.
Your company is fully committed to ensure and provide a safe and healthy work environment. Special attention is being given to adherence to safety practices in construction projects. Near miss accidents are also being reported and analysed so as to take timely preventive measures. Regular safety audits are being held in all projects.
A lot of initiatives were taken regarding Ash Utilization in NSPCL by entering into a MOU with NHAI, dry ash off-take and filling in low lying area. However overall Ash Utilization for the FY 20-21 for NSPCL was 87.95%, because of limited available opportunities.
The power to drive the company forward lies with the employees of NSPCL. Development of employees is one of the most important factors for the growth of the organization as our people are the most valuable resource and asset of the Company. Your company continues to put focus on four HR Building blocks viz. Competency Building, Commitment Building, Culture Building and System Building.
Lot of trust has been put on employee development by providing training, competency mapping & individual development plans and succession planning. Further, leadership development programmes are organised both for senior & junior management in association with reputed Management Institutes.
With a view to optimising its manpower, your company has implemented shared services in HR, Contracts and Finance. HR Shared Services is operating efficiently from Bhilai Unit. Operation of Contracts and Finance Shared Services also in a full-fledged manner shall help in digitization of back office, streamline the process and further improve productivity.
Your Company has taken initiatives on enhancing Employee welfare, engagement and work-life balance. The well-being of our employees and their family members has always been at the focal point of all our initiatives and we have stood together to protect and help our NSPCL family during this pandemic. As per the government of India directives, vaccination drives have been organised at all Units.
Despite the pandemic, numerous programmes were conducted online for employees and their family members to keep them in high spirits while battling their way victoriously through COVID-19 pandemic.
Corporate Social Responsibility
Your Company achieved CSR expenditure of Rs. 7.75 Crs. in 2020-21. NSPCL’s CSR theme for the FY 2020-21 was “Eradication of Hunger, Poverty & Malnutrition and Promoting Education” which is in line with the theme identified by Govt. of India. Other focus areas of NSPCL CSR and Sustainability development activities are women empowerment, education to underprivileged children, skill development of rural youth, preventive health care, family welfare, sanitation, promotion of art and culture and social infrastructure projects contributing to the holistic development of stakeholders, mass tree plantation and environmental conservation activities for environment sustainability. CSR subcommittee of NSPCL Board oversees the implementation of CSR activities in line with the approved CSR policy.
Maintaining high standards of transparency and integrity has been the keystone of your company’s corporate governance policy. Various policies such as “NSPCL Safety Policy”, “NSPCL Ash Utilisation Policy”, “NSPCL Environment Policy”, Enterprise Risk Management System, Banning of business dealings, e-waste management, handling and disposal, IT security policy etc. already has been under implementation in your company. Your company has also adopted Whistle Blower Policy for reporting instances of unethical/improper conduct. In line with CVC guidelines, high-value contracts are being monitored by Independent External Monitor. Further, as a listed (Bond) company, NSPCL has been complying with the requirements of Corporate Governance under regulations of SEBI.
Awards and Accolades.
I am happy to share with you that in recognition of its various activities, your company has been conferred with the following awards during 2020-21:-
Ladies and gentlemen, I on behalf of the Board of Directors of NSPCL would like to express my sincere appreciation and gratitude to everyone who has helped in making all the above possible.
I am extremely thankful to our Promoters (NTPC and SAIL) for their consistent support and guidance. I would like to thank the Ministry of Power, Ministry of Coal, Ministry of Steel, Ministry of Environment, Forest & Climate Change and other stakeholders for their continued support. My sincere thanks to State Governments, Local State Administration, Police departments and other agencies for their uninterrupted support to the Company. I thank Central Pollution Control Board, State Pollution Control Boards, Factory and Boiler Directorates for their constant support to the Company.
I express my deepest regards to Central Electricity Regulatory Commission, Central Electricity Authority, Western Region Power Committee, Western Region Load Dispatch Centre and Eastern Region Power Committee for their valuable role and to the Comptroller and Auditor General and Statutory Auditors of the Company for their astute observations and suggestions.
I am highly grateful to Financial Institutions, Banks and other Lenders and Investors who continue to be very valuable stakeholders in our journey for their trust, cooperation and continued support. I am extremely thankful to our esteemed customers for their trust and confidence and for being the backbone of our progress. I thank our valued Vendors and their associates for being a part of our progress and the Media and Public at large around our establishments for their steady support.
My sincere thanks to Employee’s Representatives for their steady support to the company’s growth. I am highly grateful to our Employees – our biggest asset - without the passion and commitment of whom none of the achievements would have been possible. I am confident that our employees will rise to the occasion with full zeal, hard work and commitment to harness the growth opportunities as well as to meet the challenges.
I thank my colleagues on the Board for their unconditional cooperation and support. We remain committed to acting as trustees to create long term value for all our stakeholders. I am confident that our Company shall overcome the forthcoming challenges and continue to scale greater heights in near future.
Once again, thank you to everyone for your support.
Dillip Kumar Patel