Dear Shareholders,,

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 24th Annual Report of the Company for the FY 2022- 23. I would also like to congratulate the team of NSPCL for the successful Commercial Operation of first unit of Durgapur PP-III (2X20 MW).

Operational Highlights

Major operational highlights of your Company for the FY 2022-23 are:

• Captive Power Units at Bhilai, Durgapur and Rourkela with a present combined capacity of 584 MW, have operated at an availability factor of 84.62% and generated 2653.06 MU, PLF 52.76%.
• First Unit of 2X20 MW Durgapur PP-III Project has started Commercial Operation w.e.f 00:00 Hrs of 30.09.2022. Further the works for the second unit of Durgapur PP-III project are in full swing and the unit is targeted to be commissioned in 2023-24.
• Rourkela Expansion Unit of 250 MW has stabilized after the initial teething troubles.
• NSPCL’s total Generation was 6445.01 MU at a PLF of 68.50% in FY 2022-23 compared to 6025.84 MU at a PLF of 84.29% in 2021-22.
• 2.64 MMT of Coal was received under FSA during FY 2022-23, which is around 109% of ACQ. About 2.60 LMT was arranged by your company through Import, MOU with SCCL and e-Auction.
• The Company has active plans towards diversification into renewable energy and energy generation from waste gas of SAIL’s steel plants.

Financial Performance

Your company recorded a total income of ₹3707.74 Crore during FY 2022-23 with a Profit After Tax (PAT) of ₹471 Crore.

A total dividend of ₹650 Crore was paid to the promoters in FY 2022-23 which is 138% of the profit after tax for the year.

NSPCL’s track record of 100% realisation of energy bills was also maintained in FY 2022-23.

Environment management

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. ESP up-gradations have already been completed in the CPP II Stations of Durgapur and Rourkela. Flue Gas Desulphurisation (FGD) system and DeNOx system are being implemented through NTPC in all NSPCL stations. In Bhilai PP III DeNOx system has been commissioned in both the Units. FGD works for both Units in Bhilai PP III are in full swing and shall be completed well ahead of the timeline provided by Govt. of India.

Regular safety audits through External Agencies viz National Safety Council are being held in all projects.

A lot of initiatives were taken regarding Ash Utilization in NSPCL through transportation of Pond Ash to NHAI Road Projects, Dry Fly Ash off-take and filling in low lying area. Overall Ash Utilization for the FY 22-23 for NSPCL was 140.40%.

Employee Development

Your Company has always believed in empowering its employees by providing various learning opportunities to enable them to take up challenges of the future.

Your Company provides an enabling environment to ensure work-life balance of its employees and regularly takes initiatives to enhance Employee welfare, engagement and work-life balance. Now, the Company is emphasizing on initiatives that boost the morale of the employees, uplift their emotional health as well as initiatives that focus on the importance of physical well-being. Many webinars and talks were held during the year by experts for employees on lifestyle management, well-being, etc. As per the Government of India directives, International Yoga Day, Swachhta Pakhwada, Communal Harmony Day, Sadbhawna Diwas, Rashtriya Ekta Diwas, Vigilance Awareness Week etc. are also observed at the units with great enthusiasm.

Corporate Social Responsibility

Your Company achieved CSR expenditure of ₹7.49 Crore in FY 2022-23. CSR theme for the FY 2022- 23 was “HEALTH & NUTRITION” 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.

Corporate Governance

Awards and Accolades

Maintaining high standards of transparency and integrity has been the keystone of your Company’s Corporate Governance Policy. 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.

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 FY 2022-23:-

• NSPCL Bhilai bagged the Shreshtha Suraksha Puskar (Silver Trophy) under the Manufacturing Sector Group-C at the NSCI Safety Award-2021 on 04th July, 2022.
• NSPCL Bhilai bagged Platinum Award at Apex India HR Excellence Awards in 2022.

Acknowledgements

I take this opportunity to thank our Promoters (NTPC and SAIL) for their consistent guidance and encouragement. 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 and other authorities for their uninterrupted support to the Company.

I express my deepest regards to the office of CAG, Auditors, Banks, vendors, employees and all other stakeholders for their valuable contribution to the Company. I am extremely thankful to our esteemed customers for being the backbone of our progress. I also wish to thank my colleagues on the Board for their unconditional cooperation.

I am confident that our Company shall overcome the forthcoming challenges and continue to scale greater heights in near future.

Thank you.

Sd/-

(Dillip Kumar Patel)

Chairman

DIN : 08695490

Date : 22nd September, 2023

Place : New Delhi