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Delivering a
NUCLEAR POWER CORPORATION OF INDIA LIMITEDnd
22 Annual Report 2008-09
Homi Bhabha Bir th Centenary Year: 30 October, 2008 - 30 October, 2009
1999 - 1890 MWe
1989 - 1010 MWe
1979 - 470 MWe
1969 - 320 MWe
2011 - 6780 MWe
2009 - 4120 MWe
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DELIVERING A VISION
Delivering a
Nuclear Power in India,
Bhabha envisioned it,conceived itand started it.NPCIL is a testimonyto how far his dreams have been realised.His foresight is as relevant today.NPCIL, ably led by past and current visionaries,
marches forward towards fulfilling India's hopeof becoming energy secure for its vast populace.
NPCIL is now at an inflection point,where its journey to make a big difference has begun.
The future has started
Kudankulam Nuclear Power Project
Madras Atomic Power Station 1 & 2
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700 MWe Plant Layout
ANNUAL REPORT2008-09
Kaiga Plant Site
Tarapur Atomi c Power Station 1 & 2
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CONTENTS
Corporate Information 03His Vision, Our Mission 04
Mission and Objectives 07
Recognition 08
Overview 10
Board of Directors 12
Chairman's Statement 16
Homi Bhabha - Architect of a Historic Future 20
Charting the Course 22
Arriving into the Future 24
Engaged with the World 26
Highly Adaptive Management 28
Planned Fuel Supply 30
Partnerships and Alliances 32
Optimising Performance 34
On the Path of Progress 36Channelising Manpower 38
Corporate Social Responsibility 40
The Green Signal - Environment Stewardship Programme 42
Directors' Report 44
Annexure 'A' to the Directors' Report 54
Annexure 'B' Management Discussion & Analysis 56
Annexure 'C' Corporate Governance 62
Management Replies to the Observations made inthe Statutory Auditors' Report 71
Auditors' Report 73
Comments of the Comptroller and Auditor General of India 77
Financials 78
Delivering a
NUCLEAR POWER CORPORATION OF INDIA LIMITED
Front Cover: Night view o f Kudankulam Nuclear Power Project
Tarapur Atomic Power Station 3 & 4
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CORPORATE INFORMATION
REGISTERED OFFICE
CORPORATE OFFICE
STATUTORY AUDITORS
BRANCH AUDITORS
MAIN BANKER
th16 Floor, Centre-1, World Trade Centre, Cuffe Parade,Colaba, Mumbai-400 005.
Nabhikiya Urja Bhavan, Anushaktinagar, Mumbai-400 094.
M/s. Kalani & Co., Chartered Accountants, B-145B, Kalyanpath Mangal Marg, Bapu Nagar, Jaipur-302 015.
1. M/s. PKKG Balasubramaniam & Associates, Flat No.2&3, Door No.68/38, Brindavan Street, West Mambalam,
Chennai-600 033.
2. M/s. Uberoi Sood & Kapoor, 606, Vishal Bhawan, 95, Nehru Place, New Delhi-110 019.
3. M/s. A Bafna & Co., K-2, Keshav Path, Ahinsa Circle, C-Scheme, Jaipur-302 001.
State Bank of India, Overseas Branch, World Trade Centre, Cuffe Parade, Mumbai-400 005.
ANNUAL REPORT2008-09
Corporate Office, NPCIL - Nabhik iya Urj a Bhavan
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HIS VISION, OUR MISSION
Delivering a
Dr. Anil Kakodkar, Chairman, Atomic Energy
Commission and Secretary, Department of
Atomic Energy, being honoured with thePadma Vibhushan from the President of India,
Pratibha Pati l. He is widely recognised across
the world as a nuclear scientist par excellence
for his contribut ion in the field of nuclear
science and technology.
NUCLEAR POWER CORPORATION OF INDIA LIMITED
Dr. Shreyans Kumar Jain, Chairman & Managing Director, NPCIL,
being conferred the Honorary Doctorate (Honoris Causa) bySathyabama University, Tamil Nadu.
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In Operation - 4120 MWe
Under Construction - 2660 MWe
Future Projects
Map for representation purpose only, not according to scale.
BWR- Boiling Water Reactor
LWR - Light Water Reactor
Unless otherwise specified, the type of reactor is PHWR
2X220 MWe
KAIGA
2X220 MWe
3X220 MWe1X220 MWe
2X220 MWe2X700MWe
1X100 MWe1X200 MWe2X220 MWe2X220 MWe2X700 MWe
2X160 MWe (BWR)2X540 MWe
LWRs
NARORA
RAWATBHATA
KAKRAPAR
TARAPUR
JAITAPUR
KALPAKKAM
KUDANKULAM
2X1000 MWe (LWR)
ANNUAL REPORT2008-09
LWRs
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NUCLEAR POWER LANDSCAPE
Delivering a
Piercing the vast expanse of Indiaare the 17 Nuclear PowerReactors operated by NPCILacross 6 States
NUCLEAR POWER CORPORATION OF INDIA LIMITED
Tarapur Atomic Power Station
Rajasthan Atomic Power Station Madras Atomic Power Stat ion
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To develop nuclear power technology and to produce Nuclear Power as asafe, environmentally benign and economically viable source of electricalenergy t o meet the increasing electricity needs of the country.
q To maximize the power generation and profitabilityfrom nuclear power stations with a motto of "safetyfirst and production next".
q To increase nuclear power generation capacity inthe count ry, consistent with available resources in asafe, economical and rapid manner in keeping withthe growth of the energy demand in the country.
q To continue and strengthen Quality Assuranceactivities relating to nuclear power programmewithin the organisation and those associated with it .
q To develop personnel at all levels through anappropriate Human Resource Development (HRD)programme in the organisation with a view tofurther improve their skills and performanceconsistent with the high technology.
q To continue and strengthen the environmentalprotection measures relating to nuclear powergeneration.
q To continue and strengthen the public awarenessprogrammes for enhancing and improving thepublic perception of Nuclear Power in the country.
MISSION & OBJECTIVES
q To share appropriate technological skills andexpertise at national and international levels.
q To bring about modernisation and technologicalinnovation in activities.
q To coordinate and endeavour to keep the sustainedassociation with other units of the DAE.
ANNUAL REPORT2008-09
Narora Atomic Power Stati on
Kaiga Plant Sit e
Kakrapar Atomic Power Stati on
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RECOGNITION
08
ABCI'S AWARD FOR NPCIL'S ANNUAL REPORT 2006-07.th
At its 48 Annual Awards, Association of BusinessCommunicators of India (ABCI) selected the Annual Report2006-07 of NPCIL in the Silver Trophy category.
AWARDS AND ACHIEVEMENTS
Tarapur Maharashtra Site (TMS)
Rawatbhata Rajasthan Sit e (RR Sit e)
Madras Atomic Power Station (MAPS)
TAPS-1&2 has been awarded AERB Fire Safety Award for
the year 2007 in Category-I jointly with Heavy Water Plant,
Kota.
q RAPS-3&4 received the NPCIL award for Excellent
Performing Station for the year 2007-08.
q RAPS-1 to 4 received Commendation Certificate
Award along with Silver Plaque, under Large Scale
Manufacturing Group of Rajiv Gandhi National
Quality Awards-2007.
q NPCIL RR site personnel were presented Certificate
of Honour by state authorities for carrying out the
rescue mission during the collapse of Gapernath
staircase incident .
q MAPS received AERB Industrial Safety Award 2008-
09 under the category of Production unit.
Narora Atomic Power Station (NAPS)
q NAPS received Sarvashreshtha Suraksha Puraskar
of NSCI Safety Award 2007.
q National Safety Award Performance Year 2006
under Scheme No-II (Accident Free Year) Winner,
conferred by Director General Factories Advice
Service & Labour Institute (DGFASLI), Mumbai,
Ministry of Labour & Employment, Government of
India to NAPS.
Delivering a
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First prize awarded to NPCIL's Pavilion at Enviro Tech'08, by IndiaTrade Promotion Organisation, for the propagation of nuclear poweras benign and eco-friendly solution to energy security.
q Shreshtha Suraksha Puraskar Award (Category-II)
for t he year 2007, from the National Safety Council of
India, Mumbai, in recognition of Developing and
implementing the highly effective Occupational
Safety and Health Management Systems &
Procedures and achieving very good performance in
Occupational Safety and Health for the assessment
years 2004 to 2006.
q Received the Gujarat State Safety Award 2007 andCertificate of Honour for Lowest Disabling Injury
Index from Gujarat Safety Council.
q An employee of KAPS was awardedthe Vishwakarma
Rashtriya Puraskar from DGFASLI under Ministry of
Labour & Employment for the year 2006.
q KGS-1&2 received the AERB Industrial Safety Award
for t he year 2007.
q KGS-3 received the AERB Industrial Safety Award forthe year 2008.
q National Safety Council has also awarded KGS with
the "Prashansha Patra" under the NSCI award scheme
for the manufacturing sector.
q DAE has awarded KGS for the best Hindi in-house
magazine.
Kaiga Generating Station (KGS)q National Safety Award Performance Year 2006, under
Scheme No. 1 (Lowest Average Frequency Rate) Joint
Winner, conferred by DGFASLI, Mumbai, Ministry of
Labour & Employment, Government of India to NAPS.
q Winner in National Safety Award (NSA-2006, Scheme-I)
from Ministry of Labour & Employment, Government of
India.
q Runner up in the Scheme-II of National Safety Awards
from Ministry of Labour & Employment for the year 2006.
Kakrapar Atomic Power Station (KAPS)
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OVERVIEW
NPCIL - the premier nuclear power
company in India. Set up in 1987,
it is working under the aegis of
Department of Atomic Energy (DAE),
Government of India. It produces 3%
of electricity for India, which is
competitive in terms of cost as well
as tariffs as compared to other
sources.
A nuclear power conglomerate, it
holds the distinction of providing
end-to-end solutions from site
selection to plant life extension.
Its diverse competencies in the
nuclear power arena have got
international recognition. The
PHWRs of NPCIL have found interest
amongst nations wanting to enter
nuclear power and having small
grids. Continuing its incessant
efforts, it is leaping into the next
orbit of building large scale reactors
of 700 MWe capacity.
OUR INTRINSIC STRENGTHS(As on 31st March 2009)(Rs. in crore)
36,693Total Assets
28,078Total Fixed Assets
21,027Networth
10,882Reserves
10,145Share Capital
Delivering a
NUCLEAR POWER CORPORATION OF INDIA LIMITED
YEAR WISE ELECTRICITY GENERATION
16707 1713618633
1697814927
10000
15000
20000
0
2007 08-2006 07-2005 06-2004 05- 2008-09
MUs
5000
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GROUPWISE STAFF STRENGTH
Group D 4%
Group C 34%
Group B 30%
Group A 32%
11
CONCRETING GROWTH
Reserves & surplus grow by Rs.458 crore, fromRs.12,041 crore to Rs. 12,499 crore
SUSTAINING STRENGTHS
Revenue realization maintained at 99.9%
Dividend payment maintained at 30% of net profit
A competit ive average tariff of Rs. 2.30 per unit
No Budgetary support from the Government ofIndia
SOURCES OF FUNDS
Reserves andSurplus34%
Russian Credit20%
Equity28%
DomesticBorrowings18%
ASSETSPowerBonds 6%
Net CurrentAssets 18%
Projects 47%
Stations 29%
DISTRIBUTION OF REVENUE
Other Operating
Expenses 23%
Repairs &Maintenance 7%
Heavy WaterCharges 11%
FuelCharges 16%
Profit for theYear 11%
Depreciation19%
Interest13%
CAPITAL EXPENDITURE(Rs. 2059 Crore for FY 2008-09)
Kudandulam 1&266%
RAPP 5 & 67%
Kaiga 49%
New projects6%
AncillarySchemes
6%
Modifications inOperating Stations6%
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Dr. S.K. Jain, Distinguished Scientist of the DAE, is a contribution in the field of nuclear technology. Besides, he isMechanical Engineer from Jiwaji University, Gwalior. also the recipient of Indian Nuclear Society Award, 2005 inAfter completing his post graduation in Nuclear recognition of his meritorious scientif ic and engineeringEngineering from the BARC Training School in 1969, achievements. The Indian National Academy of Engineershe joined the erstwhile PPED which was responsible recognised his valuable contribution by bestowing on himfor sett ing up and operating the nuclear power its esteemed fellowship. He has been conferred withstations. He became a member of the AECL team another Honorary Doctorate in 2009 by Sathyabamawhich successfully commissioned the first Heavy University, Chennai, in the field of Science. Dr. Jain has beenWater Reactors in Rajasthan. His subsequent a part of many national and international missions for thecontribut ion to the design and construction of India's development of the nuclear industry. He became a figure offirst Standard PHWR at Narora brought India at par international fame on being elected as the President of thewit h other advanced countries. Dr. Jain was a key WANO in 2007 for his contribution to the world nuclearmember of the team which negotiated the contract community. In 2008, the President of India conferred on himwith the Russians and later headed the LWR a special citation for his outstanding contribut ion to theDirectorate during the init ial launching phase of society. As the Chairperson of the Indian Atomic Industrial2x1000 MWe VVER unit s at Kudankulam. He assumed Forum, he has been successful in gett ing the best out of the
rd industry and also gainfully showcasing the capabilities tothe charge of CMD, NPCIL on 3 January 2004 and has
the world. He is also a member of the Advisory Committeesteered the Company through its most eventful years. for Project Safety Review. The DAE has entrusted Dr. JainDuring his tenure, the Company has touchedwit h the addit ional charge of CMD, BHAVINI which has beenunprecedented heights and has come to be known asset up for the construction and operation of India's first Fastone of the most successful companies in the country.Breeder Reactor.Dr. Jain was conferred an honorary Doctorate by the
University of Mangalore for his outstanding
Shri S.A.Bhardwaj, a Mechanical Engineering and procurement activit ies of PHWRs, new LWR projects andgraduate from Delhi University and M.Tech in Design so on. He is a member of the AERB Advisory Committee onof Mechanical Equipment, from IIT, New Delhi, Design Codes and Guides and has participated in theobtained training in Nuclear Engineering from BARC preparation of a number of Safety Codes and Guides for theTraining School and joined the PPED in 1971. Since AERB.then, his career has been associated with nuclear fueldesign and engineering activities, reactor core For his services, he has been awarded the NPCIL Unitdesign, shut down system design, in-core fuel Recognition Award for Outstanding Contribution and themanagement, reactor physics, reactor components Indian Nuclear Society Award 2001. He is Fellow of Nationaland nuclear safety. With this background, since Academy of Engineers and Chairman, Nuclear Fuel ComplexFebruary 2002, he has taken over the task of total Board.
engineering activit ies of PHWRs. He is a Distinguished rdScientist of Department of Atomic Energy. He is on the Board of NPCIL since 3 Feb. 2005.At present he is Director (Technical) withresponsibilities encompassing design, construction
Shri Jagdeep Ghai, a Science graduate from Mumbai At NPCIL, he has worked towards increasing professionalismUniversity wi th dual Post Graduation in Business in the finance group, bringing qualitative improvement inAdministration (Finance) and Poli tical Science, corporate accounts and working for raising resources forbegan his career with the P&T Accounts and Finance huge expansion plans. He cont ributes towards theService of the Civil Services in 1980, after a short spell management efforts in preparing and working towards theof teaching at the Degree level. In the t ele- future vision of NPCIL in meeting the challenges of fastcommunication sector, he had headed the finance growth, diversification and competitiveness.units of DoT, MTNL and BSNL in Gujarat, Rajasthanand Maharashtra, respectively. He is credited with He has got professional training in Japan and USA. He hasseveral large scale initiatives, such as the been a visiting faculty to institutes of Management Studiesintroduction of Corporate Accounting System at for teaching Financial Management.MTNL and BSNL and the computerisation ofCustomer Billing and Accounting at MTNL, Mumbai. With his vast experience in the financial sector and vision, heHe brought in several customer f riendly methods of has been contributing as a Board member and Head of
thbill payment, like ECS and the internet Banking. At Finance in NPCIL since 16 January 2006.BSNL, he introduced competitive tariffs and cashmanagement systems.
Shri Nageswara Rao is an Electrical Engineering In April 2002, NPCIL appointed him as the Station Director,graduate from Jawaharlal Nehru Technological KGS. With his managerial, technical and motivational skills, heUniversity, Andhra Pradesh. In 1975, he joined the broug ht about both techni cal and org anisat ional
th improvement at the Station. Due to his unstinting efforts,19 batch of the BARC Training School. He receivedKGS-2 recorded a run of 529 days, the longest achieved by anthe Homi Bhabha Award for obtaining the first rankNPCIL unit, so far. In December 2006, he was posted at HQ asin his batch.On completion of his training in 1976, heED (Operations) and later elevated as Director (Operations).joined t he O&M group at MAPS. He worked on theThrough dedicated initiatives, he streamlined operatingcommissioning of the fuel handling system of both,experience sharing, station performance reviews, WANORAPS-2 and MAPS.In 1987, he was appointed as theTechnical Support Missions and optimisation of fuel supplies,Senior Maintenance Engineer for the fuel handlingthus ensuring safe and reliable operation of the units.unit at MAPS. In 1997, he was promoted and postedRecognising his outstanding contributions towards theas Maintenance Superintendent, at KAPS where hesafety in the operation of nuclear power plants, he wasimproved the productivit y of manpower as well ashonoured with the WANO Nuclear Excellence Award duringequipment. In 2000, he was elevated to the post ofthe Biennial General Meeting of WANO held at Chicago inthe Chief Superintendent, KAPS and worked towards
September 2007.making it as the model NPCIL station by sustaininghigh performance. th
He is on the Board of NPCIL since 6 August 2007.
S.A. BHARDWAJDirector - Technical
JAGDEEP GHAIDirector - Finance
G. NAGESWARA RAODirector - Operations
BOARD OF DIRECTORS
SHREYANS KUMAR JAINChairman & Managing Director
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Shri A.P.Joshi has an outstanding academic career. He India. He joined Karnataka State Road Transport Corporation innd October 06. Therein, initiatives like introduction of e ticketing,topped in B.Sc examination and secured 2 rank in the
contactless passes for the students, e-recruitment, besidesM.Sc.(Physics) Examination of Lucknow University. Heinduction of over 1,500 new buses, brought good name andis the recipient of 5 gold medals, including prestigiousfame to Corporation, which is considered as a role model. HeMeghnath Saha gold medal from the President ofreceived the Gold Trophy from Dr. A.P.J. Abdul Kalam, formerIndia for his academic distinctions. He joined IndianPresident of India for organisational innovations.Administrative Service in 1978 and has worked as
Deputy Commissioner, Tumkur and Bangalore RuralHe joined DAE in December 08 and has been pushing severaldistricts and as Chief Secretary of Uttara Kannadaproposals for meeting the challenges thrown by international(Karwar) district. He has a rich experience of about 12civil nuclear co-operation. The speedy approvals/clearances ofyears as Managing Director of PSUs. He was thenew projects, sites of expansion of Nuclear Power Projects areManaging Director of Karnataka Handloomat the top of his agenda. He has been instrumental in clearanceDevelopment Corporation for 4 years and wasof Cadre Review proposal, which were pending for a long t ime.responsible for it s turnaround. He served for about 6He played important role in the introduction of PRIS and itsyears as the Managing Director of two majorextension to NPCIL/BHAVINI.infrastructure Corporations. Therein, he played a
major role in speeding up the ongoing majorthirrigation projects and in particular for completion He is on the Board of NPCIL since 11 Dec 2008.
and dedication of the Upper Krishna Project, costingover Rs.10,000 crores to the nation by the President of
Shri V.R. Sadasivam, a commerce graduate from the DRDO labs in the South. He has a long association wit h theLoyola College, Chennai, joined a nationalised bank, DAE and its Units. From 1994 to 1995, he has worked with theas an officer and worked there for 6 years. He later IGCAR and wit h BARC from 1998 to 2002. In 2007, he joined the
joined t he Indian Defence Accounts Service in 1981 DAE on the post of the Joint Secretary (Finance).and has served in Meerut, New Delhi, Madras,
thBangalore and Mumbai. He last held the post of the He is on the Board of NPCIL since 18 July 2007.Controller of Defence Accounts (R&D) at Bangalore. Inthis capacity, he was responsible for the payment,accounting, audit and financial advisory services to
Dr. S. Banerjee obtained his B.Tech in Metallurgical He has held some visiting positions overseas, such as theEngineering with first class honours f rom IIT, University of Sussex, Brighton, UK, Max-Planck Instit ut fuerKharagpur and was trained at the BARC Training Metal lforschung- Insti tut fuer Physik, Stut tgart andSchool before he joined BARC. He was awarded the Forschungszeutrum Juelich, Germany (as Alexander vonPh.D in metallurgical engineering by IIT, Kharagpur on Humboldt Foundation Fellow and Awardee), University ofthe basis of the work carried out by him in the first few Cincinnati and the Ohio State University, USA (as Visit ingyears of his career at BARC. Presently, Dr. Banerjee is Faculty). In recognition of his contribution to research, he hasthe Director of BARC and has nearly 40 year's research received many awards. Notable amongst them are Nationalexperience. He is one of the leading experts in Metallurgists' Day Award (1981), Shanti Swarup Bhatnagarmaterials science and technology in the count ry and Prize in Engg. Sciences (1989), Indian Nuclear Society (INS)has made out standing cont ribution t o many Award (2003) and Padma Shri (2005). Notable among thematerials related areas, basic as well as appl ication international awards are Acta Metallurgica Outstanding Paperorient ed. His comprehensive work on the physical Award (1984) and Alexander von Humboldt Research Award
metallurgy of zirconium alloys is widely quoted in (2004).scientific literature. His work has also provided a basisthfor developing a novel fabrication schedule for the He is on the Board of NPCIL since 8 Oct2004.
pressure tubes used in the Indian PHWRs.
The entire career of Shri Rakesh Nath spanning over 3 inquire into grid failures and suggest remedial measures. Hedecades has been shaped up in the various was Convener of Working Groups set up by the Government oforganisations of the power sector in India such as CEA, India to prepare guidelines for inter-regional power exchange.NTPC, electricity boards of the Nort hern and the Shri Rakesh Nath attended courses in power system operationWestern regions, Bhakra Beas Management Board, & cont rol in UK in 1984 and in Sweden in 1993. Shri RakeshPower Trading Corpn. and so on. He has served as the Nath was appointed as Chairperson, CEA in October 2005. He isChairman of the Bhakra Beas Management Board , the also an ex-officio member of CERC.largest hydro complex in the Northern region. He
rdturned the Power Trading Corporation into a profit He is on the Board of NPCIL since 3 Nov2005.earning Company. He has visited Pakistan and Nepalto promote power trade. He has been a part of theCommittees appointed by the Government of India to
A. P. JOSHIDirector
V.R. SADASIVAMDirector
SRIKUMAR BANERJEEDirector
RAKESH NATHDirector
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SURYA P. SETHIDirector
ANAND MOHANDirector
CHANDAN ROYDirector
Shri H.L. Bajaj is Technical Member in the Appellate Electricity Board, he was instrumental in accelerating ruralTribunal for Electricity. Before this, he was Chairman, electri fication by adopting innovative construction andCentral Electricity Authorit y and ex-officio Secretary management techniques which resulted in 100% ruralto the Government of India, Ministry of Power since electri fication of Haryana, the fi rst state to achieve such2002 where he brought about structural changes distinction in 1970.required within CEA and initiated action for itsmassive technological and qualitative upgradation. Shri Bajaj is Fellow of Institute of Engineers, India, InstitutionHe evolved nationwide consensus for the adoption of Engineering and Technology, UK, the Institute of Electricalof 800-1000 MW super crit ical technology unit s. and Electronics Engineers (IEEE), USA, Indian National
Academy of Engineering and All India ManagementHe served NTPC for 15 years and was responsible for Association. He is recipient of various National andvarious facets of Super Thermal Power Projects and International Awards.Operating Stations. He played a key role in
thpromoting power sector reforms. During his stint of He has been on the Board of NPCIL since 27 Sept 2006.14 years with BHEL, he led engineering teams forturnkey generation, transmission and distributionprojects in India and abroad. At Haryana State
Shri S. P. Sethi is the Principal Advisor (Energy), 2006. Shri Sethi also assisted the Prime Minister's Council inPlanning Commission in the rank of Permanent developing India's Climate Action Plan and as a coreSecretary to Government of India. After completing negotiator has led India's negotiations and presented India'sElectrical Engineering from Mumbai IIT and BITS case at the Intergovernmental Panel on Climate ChangePilani, Shri Sethi did his MBA from IIM Ahhmedabad. (IPCC), the United Nations Framework Convent ion onIn a career spanning 35 years Shri Sethi has worked in Climate Change (UNFCCC), the CSD dialogue at the UN, thesome 30 countries worldwide in the field of energy, preparatory and follow up meetings of the G-8 dialogue, theinf rastructu re, capit al markets and mul ti ple E-7 Group and a number of bilateral Energy and Climateindustrial sectors. His worldwide experience covers Forums wit h the US, EU, UK & Japan. Shri Sethi has lecturedenterprises and util ities in the private and public extensively on India's energy, infrastructure and climatesecto r, mu lt il ater al and bi lat eral agenc ies, change issues at academic institutions and think tanksgovernments and non-governmental organisations. around the globe.
Shri Sethi joined the Government of India in 2001. In Shri Sethi started his career in 1974 in the Tata Administrativehis current assignment, Shri Sethi coordinates the Services and rose to head International Projects at Tataplans and policies of six Ministries that include the Enterprises Overseas in Zug, Switzerland wit h a Boardfive energy ministries (Power, Petroleum & Gas, Coal, posit ion. Shri Sethi joined the International Finance
Atomic Energy, Non-Conventional & Renewable Corporation (IFC), the private sector arm of the World Bank, atEnergy) and the Climate Change component of the Washington DC in 1984 and rose to become Chief InvestmentMinistry of Environment. Shri Sethi services the Officer at IFC.Prime Minister's Energy Co-ordination Committee
thShri Sethi is on the Board of NPCIL since 28 Jan2003.and wrote the Integrated Energy Policy of India in
Shri Anand Mohan, a graduate in Civil Engineering of the transmission systems of various voltage levels as wellfrom Delhi University and an M.Tech in Systems & as qualit y assurance and inspection of product & services.Management from IIT, New Delhi began his career He has been instrumental in increasing the efficiency ofin the Central Water Commission and during this Corporate Engineering by introducing the concept oftenure, he was on deputation t o the Central standardization in systems, procedures and designs whichElectricity Authorit y (CEA). Later on, he joined NTPC. have resulted in a considerable reduction in gestationDuring his stint with the CEA and NTPC, he was period of the Transmission System Projects. Later on, heassociated with civil and structural design of 200 worked as Executive Director (Corporate Contracts),MWe and 500 MWe Thermal Power Plants. He Executive Director (Commercial) and Executive Director (HR
joined the Power Grid Corpn. Of India Ltd.(PGCIL) as & CC) of PGCIL.General Manager (Engineering) and was elevated
rdto the post of Executive Director (Engg.& QA & I). He is on the Board of NPCIL since 3 Jan. 2002.
During this period, he was associated with systemplanning, feasibili ty study, design and engineering
Shri Chandan Roy, a graduate in Mechanical Division, etc. He has also been nominated as Director on theEngineering is a power engineer of repute with rich Boards of Damodar Valley Corporation (DVC), West Bengaland varied experience of more than thirt y eight Power Development Corporation Ltd. (WPDC) and NTPCyears in t he areas of pr oj ect pl ann in g, Vidyut Vyapar Nigam Ltd. and is a permanent invitee on theconcept ualizat ion , design, engineering and Board of Northern Coalfields Ltd. (NCL).operations. Prior to joining NTPC in 1977, heworked wit h Babcock & Wilcox, London, UK. Several papers authored by him have been published in
national and international journals and fetched him greatPresently, he is Director (Operations) in NTPC and acclaim. In recognit ion of his expertise in the area of powerhe is also the Chairman of Bhartiya Rail Bijli plant design, commissioning and generation, he has beenCompany Ltd., a subsidiary of NTPC Ltd. He has also awarded Eminent Engineer Award by Institute ofbeen the founding Chairman of Ratnagiri Gas & Engineers (India) in the year 2006.Power Private Limited (part-time), a Joint Venture
thCompany of NTPC Ltd. and Gas Authority of India He is on the Board of NPCIL since 8 Oct2004.
Ltd. (GAIL) and was instrumental in the successfulrevival of the abandoned project. In NTPC, he hasheld important positions including ExecutiveDirector of National Capital Region, Engineering
BOARD OF DIRECTORS
H.L. BAJAJDirector
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G.K. PANDEYDirector
T. S. BHATTACHARYADirector
Dr. G.K. Pandey holds a Ph.D in Chemistry and a Post He holds the post of an Adviser in the Ministry of EnvironmentGraduate Diploma from the International Insti tute for and Forests (MoEF). He is also member of the Research CouncilInf rastructural Hydraul ics and Envi ronment al of NEERI, Nagpur.Engineering, Netherlands. He has a comprehensive
thexperience spanning three decades in environmental He is on the Board of NPCIL since 24 May 2005.pollut ion control, environmental impact assessment,occupational and environmental health, industrialpollution control, air and water quality monitoring.Dr. Pandey has represented India on the internationalplatform and presented papers on different aspects ofthe environment several times. He is a member of theDelhi Pollution Control Committee. He is theChairperson of the Task Forces on Fertil izer Plants andChlor-Alkali Plants consti tuted by MoEF.
Shri.T.S.Bhattacharya is M.Sc. in Nuclear Physics, Product Development . Mr. Bhattacharya was entrusted wit hAssociate of Saha Institute of Nuclear Physics and a the crucial portfolio of Commercial Banking in the northernPost Graduate in Management Studies. With over 36 states of Punjab, Haryana, Himachal Pradesh, and Jammu &years of distinguished service to the State Bank of Kashmir.India (SBI), since 1969, Shri Bhattacharya has made amark in the field of banking and finance. In his career Apart from his comprehensive exposure to national banking,spanning over t hree decades, he has held a variety of Mr. Bhattacharya brings with him a varied and significantcritical and challenging assignments in the banking experience in international banking. He has held the posts ofsector and executed them with excellence. the Head, International Merchant Banking and the
International Correspondent Departments, at the CorporateHe was appointed Managing Director, State Bank of Office. As his offshore postings, he has worked at SBI Office,
th Singapore, and headed the Representative Offices of SBI atIndia on 28 February, 2005. Prior to this, he has heldJakarta, Indonesia.the post of MD, State Bank of Indore, an Associate
Bank of the State Bank Group. At it s Corporate Office,thhe has held the position of the Chief General Shri. Bhattacharya is on the Board of NPCIL since 8 May 2008.
Manager, in this capacity he has looked after
departments such as Retail Banking, Marketing and
V.C. AGRAWALDirector - HR
UMESH CHANDRASenior Executive Director
SUDHINDER THAKURExecut ive Director
PERMANENT INVITEES
SRIKAR R. PAICompany Secretary
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CHAIRMAN'S STATEMENT
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Ladies and Gentlemen,
ndWelcome to the 22 Annual General Meeting (AGM) of
your Company. I look forward to this occasion year after
year, wherein I get an opportunity to apprise the progress
and growth of the Company in your august presence. With
reasonable pride, immense satisfaction and great hope for
the future, I wish to state that inspite of a continued
stretched environment, the year goneby can be
considered good from an operational perspective. Despite
the fact that production was limited and profits were lower,
the average availability factor of 80% was quite
satisfactory. In all earnest, we have endeavoured to deliver
the t rust you reposed in us which gave us the strength to
face the situation realistically. The production of the units
was tuned to match the short fuel supply. Nonetheless, we
plan to pay the dividend to the Government of India. On
introspection, I have arrived at the conclusion that the
Company has utilised these lean years to strengthen itself
by self evaluation, realigning priorities, planning for
organisational restructuring and laying down a road map
for the future.
Delivering a
NUCLEAR POWER CORPORATION OF INDIA LIMITED
Dr. S. K. JainChairman & Managing Director
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Two decades ago, NPCIL was born to make a difference. Then,
we were operating only six units and constructing four
additional units. Now, twenty years down the line, we are
operating seventeen units and have five units under
construction. I att ribute this achievement to the efforts of our
dedicated team. Today, your Company is on the threshold of
taking off to greater heights and to make a noteworthy
difference. At this juncture, we forsake the aim of mere
addition of nuclear capacity for power generation in thecountry. Instead, we commence our journey towards creating
a multiplier effect in nuclear power capacity enhancement of
the country, thereby putt ing the realisation of Homi Bhabha's
vision on the fast t rack and sound footing.
On the domestic front of Pressurised Heavy Water Reactor
(PHWR) programme, its units under operation demonstrated
improved performance characterised by very long
continuous operation of reactors thereby setting new
industry standards in the country. Another milestone that we
have surpassed is that our units at Tarapur-1&2 completed
forty years of successful, safe and reliable operation, clearly
demonstrating how a different technology could bemanaged well. At the same time, the pace of new power
plants' construction at Rajasthan, Kaiga and Kudankulam was
enhanced to complete them at the earliest. The construction
of units at Kaiga and Rajasthan has been brought to a level of
completion where they can start production as soon as fuel is
available. Apart from speeding up new construction, the
refurbishment of existing units at Rajasthan-2, Narora-2 and
Kakrapar-1 has been taking place at full swing which shall
soon bring them at par with the newly constructed reactors.
With regard to fuel availability, our tenacity and resilience
have yielded results, both on the domestic as well as the
overseas front. Uranium fuel is now available from overseas
and has started arriving at the site for use in Rajasthan-2
which is already under IAEA safeguard. Therefore, it shall
get into the production mode shortly, we intend bringing
other pre-decided units also gradually under IAEA
safeguards as per the separation plan, so that the fuel
available from imported sources can be used in these units
under safeguard. Simultaneously, the domestic Uranium
fuel production is improving and shall be available toincrease power generation by other units, which are not
planned to be brought under the safeguard.
For the purpose of scaling up the nuclear power plant
capacity, the design of 700 Mega Watt (MWe) plant is ready
which is planned to be executed at the Kakrapar and the
Rajasthan sites. Long delivery items have been ordered for
both the above stated plants, Kakrapar-3&4 site has been
cleared and Rajasthan site is under active consideration of
the Atomic Energy Regulatory Board. The work at these
sites is likely to be launched this year with ground break.
Additional two sites for the launch of four more 700 Mega
Watt units in the current five year plan are under activeconsideration by the Government of India, thus enabling
We commence our journey towards
creating a multipl ier effect in
nuclear power capacit y
enhancement of t he count ry,
thereby putt ing the realisation of
Homi Bhabha's vision on t he fast
track and sound footing.
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CHAIRMAN'S STATEMENT
the launch of eight units of 700 Mega Watts in the country
in current five year plan. Further, to assure timely
availability of turbo- generators of matching capacities, a
Memorandum of Understanding (MoU) has been signed
with Bharat Heavy Electricals Limited for forming a joint
venture for acquiring appropriate technology.
Initiatives by the Government of India have made civil
nuclear co-operation now a reality, which will have mult i-dimensional benefits to your Company. While such an
initiative will increase possibilities of import of plants and
nuclear material from overseas vendors and associated
commerce, it also gives your Company an opportunity to
become an international player. Your Company is working
towards collaboration with reputed nuclear vendors to
accelerate the growth of nuclear power within the country
and to add large sized Light Water Reactors (LWRs) to
quickly add generation capacit ies in India.
An Inter-Governmental Agreement has also been signed
between the Government of India and the Russian
Federation for the setting up of four additional units atKudankulam site. Clearance from the Ministry of
Environment has been received, site grading and leveling
has been completed and efforts shall be made to launch
the construction of Kudankulam 3&4 in the next year.
At present, MoUs have been signed with AREVA, France;
General Electric Hitachi, United States of America; and
Westinghouse Electric Company, United States of America.
Initially, the setting up of two units of 1650 Mega Wattselectrical reactors by AREVA with a provision for
subsequently sett ing up of six unit s at Jaitapur sites in twin-
unit construction mode, in a phased manner, is being
discussed. Activities related to land acquisition at the
Jaitapur site are being pursued; the technical and
commercial components of the projects are being worked
out jointly. First stage clearance from the Ministry of
Environment has been obtained.
Delivering a
At present, MoUs have been
signed wi th AREVA, France;
General Electric Hitachi, United
States of America; and
Westinghouse Electr ic Company,
United States of America.
NUCLEAR POWER CORPORATION OF INDIA LIMITED
An Inter-Governmental
Agreement has also been
signed between the
Government of India and
the Russian Federation for
the sett ing up of fouraddit ional units at
Kudankulam site.
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Being the national utility company operating nuclear powerplants, we have participated in the preparation of the national
report for contracting parties of the Convention of Nuclear
Safety to demonstrate fulfillment of the primary
responsibility and obligation of maintaining safety as
overriding priority, while maximising the production to meet
nation's electricity demand. The safety record of 300 reactor
years of long operating experience has been well recognised.
Your CMD continued to lead World Association of Nuclear
Operators (WANO) as its President. It is for the first time that
the who's-who of the nuclear industry worldwide shall
assemble in India at the WANO Biennial General
Meeting being organised by NPCIL in January 2010. The
organization of such a high level meeting could not have
been more opportune and befitting than at this time
when we are moving beyond the differential threshold in
the nation's nuclear history.
The Company has complied with the corporate
governance guidelines issued by the Authorities.
I am sure that with continued support of the Department
of Atomic Energy and its units, electricity boards and
various ministries of the Government of India, we will be
able to increase production of your Company to about
22,000 million Kilo Watt hours by next year. Members on
the Board of the Company have made immense
contr ibut ions, provided able guidance and
encouragement for the all-round improvement in the
functioning of your Company. Finally, we proudly record
our culture of an overriding priority to nuclear safety and
fostering the Parivar (extended family) culture within
the Company which has made this company unique. It's
now t ime that I move on to the Director's Report, Balancest
Sheet as on 31 March 2009 and Profit and Loss Account
for your consideration, approval and adoption.
(S. K. JAIN)
Chairman & Managing Director
Mumbai
Date: August 1 2, 2009
With regard to fuel availabilit y, our
tenacit y and resil ience have yielded
result s, both on the domestic as well
as the overseas front . Uranium fuel is
now available from overseas and has
started arriving at the site for use in
Rajasthan-2 which is already underIAEA safeguard.
Simultaneously, the domestic
Uranium fuel production is improving
and shall be available to increase
power generat ion by other units,
which are not planned to be brought
under t he safeguard.
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0420
HOMI BHABHAArchitect of a Historic Future
Reminiscing Homi Jehangir Bhabha (1909-1966) is a journey
into the past, with futuristic value. The creator of t he 3- Stage
Nuclear Power Programme of India, Homi Bhabha
was endowed with exceptional ingenuity, scientific
temperament and excellence. Born in the pre-independence era, he seemed to have been pre-destined to
show the path of progress to the nation and be cherished by
posterity, for his contributions. He has scripted the nuclear
path to energy security and progress of India which is so
impeccable in design that it did not need revision. By now,
NPCIL has already managed to master the first stage of t he
programme and the country is now stepping into the
second stage of the programme. This onward march is
expected to lead India to greater heights of industrial and
technological achievement.
Whether he is termed as Maslow's transcendental
personality or India's Leonardo da Vinci, he was surely aman born with a vision way ahead of his times. For him, the
Delivering a
Homi Bhabha - Nation's scientific leader sharing a platformwith national leadership
On the International Platform - Bhabhast
at the 1 International Conferenceon Atomic Energy for PeacefulUses, Geneva (1955)
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canvas of l ife was much larger than it is for most of us. In his
pursuit to be, what he could be, he became accomplished in
science, mathematics, music, painting and literature. Even
racial differences paled into oblivion before his brilliance and
charisma, he was termed as a world citizen.
Homi's early education at the Cathedral and John Connon
School, Elphinstone College and Royal Institute of Science in
Mumbai brought forth his incisive intellect and a disciplined
mind ready to leap into the scientific universe. At Cambridge,
having completed Mechanical Sciences Tripos, Bhabha, out
of his choice and passion, veered into the field of theoretical
physics. He worked with the best minds of the era, such as
Paul Dirac, Wolfgang Pauli, Enrico Fermi, Neils Bohr and the
like. A trail blazer in the field of academics and scientific
research, he went on to win the most prestigious
scholarships. After complet ing his Ph.D, he continued work at
Cambridge. Highly recognised for his cosmic-ray research-Bhabha-Heitler effect of cosmic showers, Bhabha Scattering
and nuclear physics, Bhabha published 66 papers in his short
span as a researcher.
The turning point in his life came on the outbreak of World
War II (1939), due to which he had to stay back in India.
Devoting himself to growing science at the Indian Institute
of Science, Bangalore, he soon found himself bonding with
life beyond particles. In his consciousness, there welled up a
vision of economic prosperity and social change, for India,
based on science and technology. He held a firm conviction
that provided proper appreciation and financial support
are forthcoming, it is the duty of people like us to stay inour own country and build up outstanding schools of
The most outstanding of the
distinguished men I have knownwas, undoubtedly, Homi Bhabha. Inaddit ion to the unique intellectualgif ts nature had bestowed on him,he was a visionary with the
boldness, relentless energy anddrive to convert his vision intoreality. Homi was one of those whomade me believe that some men inhuman history are born with thestamp of predestination on them
which leads them toaccomplishments beyond ordinaryhuman capabilities.
- J. R. D. Tata
research such as some other count ries are fortunate to
possess. And he transformed from a researcher to a
builder of scientific institutions - to put India, his country,
on the scientific pedestal. He is the founder of Tata
Institute of Fundamental Research (TIFR) and AtomicEnergy establishments, Trombay, now called Bhabha
Atomic Research Centre .
The rich legacy that generations have inherited from Homi
Bhabha is unfolding before our eyes - to appreciate and
emulate. The nuclear scientific community and the entire
nation salutes the Father of Indian Atomic Energy for
drawing out the energy lying within the nucleus of an
atom to energise development for the sustenance of
humanity. Homi's contribution epitomises a fusion of theth
creative human intent with nuclear fission. On his 100
birthday, we, at NPCIL, pay homage to this great visionary
scientist's spirit and rededicate all our effort s to realise hisvision.
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It is a year of celebrations. Our very first nuclearpower plant - Tarapur Atomic Power Station(TAPS) has completed 40 years of operations, instark contrast to the average age of 18 years forNPCIL stations. A model of longevity, TAPSepitomizes the strength of NPCIL. In itsfootsteps, is Madras Atomic Power Station(MAPS) which commemorated its silver jubileethis year. MAPS is hailed as the first embodiment
of indigenisation. Together, TAPS and MAPSrepresent the transformation of Bhabha's dreaminto concrete reality. Both the nuclear powerstations have been upgraded and aligned topresent levels of advanced technology andsafety standards.
With the signing of the turn-key contract withGeneral Electric, USA in 1963 for theconstruction and commissioning of 2 Boiling
TURNING POINT
CHARTING THE COURSE
22
Water Reactors (BWRs) at Tarapur, India embarkedon a journey to nuclear power. It was this projectwhich gave India its first experience in projectmanagement and operation of nuclear powerplants. By 1969, India stepped into the field ofnuclear power operations with the twin BWRs, 210MWe each then, at Tarapur, which have produced77,000 mill ion units of electricity ti ll date.
Following TAPS, Bhabha clearly foresaw PressurisedHeavy Water Reactors (PHWRs) as the appropriateoption for India to kindle the 3-Stage Programme.
TOWARDS INDIGENISATION
Nuclear Dreams, Macro Efforts
Delivering a
Bhabha addressing the press conference onTarapur Power Project (1963)
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Thus came in RAPS with the help of AtomicEnergy of Canada Limited (AECL). In parallel,indigenisation of the same was conceived at MAPS.
Conceptualised by Bhabha as early as 1965, the 2nuclear power plants at Madras Atomic PowerStation (MAPS 1&2) attained criticality and weresynchronised to the grid in 1983 and 1985respectively. The entire project, its design,construction and commissioning, was marked by
Indian ingenuity, indigenisation and meticulousworkmanship. Alongwith the building of MAPS, theIndian industry imbibed a precious new skill-setand a comprehensive Indian nuclear industryevolved.
The relative roles of indigenous
science and technology and foreign
collaboration can be highlightedthrough an analogy. Indigenousscience and technology plays thepart of an engine in an aircraft ,
while foreign collaboration can playthe part of a booster. A booster inthe form of foreign collaborationcan give a plane assisted take-offand be capable of independentflight , it must be powered by
engines of i ts own.
Homi BhabhaDr. Vikram Sarabhai, Nuclear Scientist, contemporary of
Bhabha with National Leadership
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Having diligently built and successfully operated 17 small and mid-size reactors overthe past 4 decades, NPCIL has attained high degree of expertise in implementing thetechnology for Boiling Water Reactors (BWRs) of 160 MWe as well as that forPressurized Heavy Water Reactors (PHWRs) upto 540 MWe. With untiring effortstowards indigenisation, we have accomplished the present capacity of 4,120 MWe.We sti ll have a long way to go.
Striving to implement the 3-stage nuclear blueprint laid out by Bhabha and toenhance the contribution of nuclear power to the entire pool of India's energy, weare continuously building capacity. On the threshold of completion are the followingnuclear power plants which will t ake our nuclear power capacity to 6,780 MWe in the
very near future.
ON THE THRESHOLD
ARRIVING INTO THE FUTUREBig Dreams, Nuclear Reality
Delivering a
Nuclear Power Plant Reactor Type Capacity (MWe)
RAPP 5 PHWR 220
RAPP 6 PHWR 220
Kaiga 4 PHWR 220
KK 1 PWR 1000
KK 2 PWR 1000
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MOVING UP THE SCALE
In a bid to move on to the next scale of operations,we have come up with an indigenous design for 700MWe PHWR. Execution of this design wil l capacitate
India to be in league with major global nuclearpower producers using similar technology of heavywater reactors. We have already received thein-principle approval of the Government of India.The sites selected for setting up 4 units of 700 MWePHWR are Kakrapur in Gujarat (KAPP-3&4)and Rawatbhata in Rajasthan (RAPP-7&8).Subsequently, an addition of 4 more 700 MWePHWRs has been planned. With its execution, anaddition of 8 X 700 MWe will be enabled.
PLANNED MOVES
In addition to being steadfast on our indigenousnuclear power programme, we have garneredinternational co-operation for the establishment ofnuclear reactors of 1000 MWe and higher.
For the full industrialisationof the underdeveloped
countries, for thecontinuation of ourcivilisation and its furtherdevelopment, atomic
energy is not merely an aid,it is an absolute necessity.The acquisition by man ofthe knowledge of how torelease and use atomicenergy must be recognised
as the third epoch ofhuman history.
Homi Bhabha
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The Indo-US civilian nuclear dealsigned in 2008 has thawed the nuclearfreeze imposed on India and hasopened global opportunities for us,both technical and commercial, in thefield of nuclear power. India has, forlong, nurtured the vision of energisingthe industrial development of the
country with nuclear power. To fuel itsengine of development, India has nowtaken up the mission of nuclearpower with even greater intensity.Simmering with the intense desire anddetermination to add capacity fornuclear power generation, NPCIL, the
face of nuclear power in India, is indiscussion with the most prominentinternational providers of nuclearpower technology, equipment andservices.
Along with its indigenous nuclearpower programme of scaling PHWRsto 700 MWe, NPCIL is gainingmomentum to move into higher orbitsby building and commissioning
reactors of 1000 MWe and higher unitsize for which it is actively seekinginternational co-operation. Today, as
EMERGING VISTAS
ENGAGED WITH THE WORLDGlobal Opportunit ies
Delivering a
NUCLEAR POWER CORPORATION OF INDIA LIMITED
NPCIL's Top Management in discussion with high level delegation fromRussian Federation led by Head ROSATOM
Signing of MoU between NPCIL and Westinghouse Electric Company (WEC), USA
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It is now patent that withoutscience and technology wecannot progress. We should
realise how modern life is anoffspring of science andtechnology. If modern life
depends so much on scienceand technology, then we mustseize hold of them, understandthem and apply them.
Homi Bhabha
the winds of change have begun toblow over the terrain of Indian nuclearpower, NPCIL is being ably propelledin the direction of greater capacityattainment.
Simultaneously, NPCIL's PHWRdesigns are being sought after bynations stepping into the arena ofnuclear power. NPCIL is also seekingco-operation on various front-end
activities of the fuel cycle such as JVsin mining for natural uranium abroad.
STRATEGIC STROKES
ANNUAL REPORT2008-09
Signing of MoU between NPCIL and AREVA, France
Signing of MoU between NPCIL and General Electric Hitachi (GEH), USA
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Our journey towards becoming a nuclear powered nationhas indeed been exciting. We have learnt to expect theunexpected on every turn and confront varied situations.Our perseverance has seen us through many obstacles andhas made us a resilient force towards realising Bhabha'sdreams.
Responding to the call for leadership in this time oftumultuous change, we are minimising costs andmaximising benefits, with a clinical look at aligning all thefacets of the company, including operations, technologydevelopment, finance and business development. With
diverse parts of the nuclear power business coupled to oneanother more tightly, we are linking with the outside worldfor making substantive progress in the near future.
With a cash surplus of Rs. 12,000 crores, we are amongst thefew financially healthy and forward looking players withinthe power generation business. Maintaining a wellbalanced mix of debt to equity on a 70:30 ratio, ourcapacity to raise debt funds has remained unimpaireddespite trying times. Till date, we have picked up a totaldebt of Rs.78,000 crore from the Indian market atcompetitive rates. For funding our current projects, weplan to tap the Indian markets on a continual basis. TheGovernment of India is our sole equity stakeholder.Through our prudent financial management, we havebeen able to fund our operations and expansions throughour internal accruals, without any further financial supportfrom the Government of India since the last five years.
Having overcome initial design challenges and a nascentindustry base, we have evolved by leaps and bounds incompressing the gestation period for greenfield projectsto around f ive years through efficient project managementstrategies. For tapping the economies of scale, the newnuclear power plants of 700 MWe size and above have
been strategically planned at selected locations in India,making nuclear power economically competitive withconventional coal-based thermal power generation.
FACING TOUGH REALITIES
ON THE FINANCIAL FRONT
ON THE OPERATIONS FRONT
The operational excellence of our plants is reflected in amarked reduction in the number and duration of outages,record continuous operations by our nuclear power plants,safety performance and environmental impact (ISO 14001compliant). By revitalising the old nuclear power plantsthrough repairs and modernisation, we are making optimaluse of our existing resources.
The signing of the civilian Indo-US nuclear deal, marks thebeginning of a nuclear epoch for India. It offers anopportunity to establish partnerships with companies inthe nuclear power industry world over. A confident and
energetic organisation that NPCIL is, today, it has already
ON THE INTERNATIONAL FRONT
begun forging such alliances for the dual purpose ofexpanding and upscaling its activities and exportingtechnology of small and medium size reactors, which itmastered long ago.
HIGHLY ADAPTIVE MANAGEMENTOn the Untread Path
Delivering a
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SCOUTING FOR FUEL SUPPLY
In the earlier years, NPCIL bore the cost of maintaining a largeinventory of uranium, the fuel for our nuclear power plants.Improved capacity utilization and recent addition in thenumber of nuclear power plants at a fast pace have led to atemporary demand-supply mismatch of fuel from domesticsources. With the signing of the Indo-US nuclear deal and the
NSG waiver, international markets are no more forlorndestinations beyond our reach. Apart from being moreinvolved in shaping the domestic nuclear fuel supply scene,we are also now in a position to leverage the global sourcingoption thanks to the move towards open co-operation byinternational players with India's civilian nuclearprogrammes. Currently we are exploring the possibility ofbuying the yellow cake at competitive rates from theinternational market, which should fi ll the immediate supplygap to a great extent. Further, acquiring stakes in severaluranium mines abroad is another consideration. For theKudankulam project specifically, we resolved the issue of fuelsupply for its life-long needs by signing a perpetual supplycontract with the Russian Federation.
CARRYING THE INDIAN INDUSTRY ALONG
Fully aware of the need to grow nuclear power rapidly, wehave not limited the arena of nuclear power to ourselves.Over the years, we have encouraged the private sector toparticipate in construction, fabrication, and supportingthe operations in many areas. They are now valueddesigners, vendors and service providers to ourecosystem. We have recently entered into several MoUswith organizations such as BHEL and NTPC for playingsignificant roles in the nuclear power development ofIndia.
The skills, which we have built over the years, give us the
confidence to be bold yet prudent and pragmatic in thepresent times.
The type of administrationrequired for the growth of
science and technology isquite different from the typeof administration required forthe operation of industrialenterprise. The administrationof scientific research anddevelopment must
necessarily be done byscientists and technologiststhemselves.
- Homi Bhabha
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Uranium is required as fuel to implement the first stage of the 3Stage Nuclear Power Programme devised by Homi Bhabha.Taking big and rapid strides in the development andcommissioning of nuclear power plants, in recent years, NPCILhas 17 reactors in operation, 5 under construction and manymore in the planning stage. Consequently, there is a largedemand for fuel to operate the nuclear plants at optimal levels.As India continues to excavate its indigenous mines inJharkhand and develop others at Andhra Pradesh and otherplaces in India for uranium, the international co-operation
agreements have paved way for NPCIL to buy uranium fromthe international uranium market. The imported uranium willbe used in nuclear power plants under IAEA safeguards inaccordance with the Separation Plan.
The international developments usher an era of internationalnuclear trade for India as never before. To ensure the supply offuel for the entire life-time of reactor operations, India is notonly making direct purchases of uranium, but also intends tonegotiate for stakes in uranium mines abroad. Also, India isaiming at developing comprehensive fuel fabrication facilit iesso that this front-end fuel cycle activity for all LWRs can betaken care of.
ADVENT OF A NEW ERA
PLANNED FUEL SUPPLYSecuring Our Future
Delivering a
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Narora Atomic Power Plant 1 & 2
Uranium, the "Yellow Cake", fuelfor Nuclear Power Reactors
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The pursuit of science and its practical application are no longer subsidiary socialactivit ies today. Science forms the basis of our whole social structure without which lifeas we know would be inconceivable. And we have in our own time seen the history of theworld shaped by those countries which have made great scientific progress. Science hasat last opened up the possibility of freedom for all from long hours of manual drudgeryand today we stand at the beginning of an age when every person will have theopportunity to develop himself spiritually to his fullest stature.
- Homi Bhabha
The key to national prosperity,apart from the spirit of the
people, lies in the modern age, inthe effective combination ofthree factors, technology, rawmaterial and capital, of whichthe first is perhaps the mostimportant, since the creation
and adoption of new scientifictechniques can, in fact, make-upfor a deficiency in naturalresources, and reduce the
demands on capital.
- Homi Bhabha
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A Panoramic View of MAPS 1 & 2
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Against the backdrop of the growing Indian economy,energy needs of the country are growing in leaps andbounds. It is, therefore, imperative to forge aheadpartnerships and alliances and accelerate the process ofpower generation. NPCIL has joined hands with manyorganisations to attain its goal with the result ing synergy.Our partners in the co-creation of energy are namely,NTPC, BHEL, THDC and ITER and the list is growing.
NTPC Limited is the country's largest power generator.Aiding NTPC's wish to diversify into the arena of nuclearpower generation, we, at NPCIL, have inked aMemorandum of Understanding (MoU) with it , for workingtogether to set up nuclear power plants in India.
We have signed an MoU with Bharat Heavy Electricals Ltd.(BHEL), our partner in technological upgradation andmanufacturing equipment since 1970, for carrying out EPCactivities for Nuclear Power Plants Conventional Island,and explore and evaluate the various technology opt ionsavailable for Steam Turbine Generator sets of 700 MWerating and above.
PARTNERSHIPS AND ALLIANCESCo-creating Energy
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NPCIL and NTPC Top Managementexchanging the Signed MoU in theaugust presence of Shri Jairam Ramesh,then Hon'ble Union Minister of State(Commerce and Power)
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GOING BEYOND NUCLEAR
FUSION POWER
For tapping opportunities in the development ofhydropower inclusive of Pumped Storage Schemes, thejoint venture between NPCIL and Tehri Hydro ElectricDevelopment Corporation (THDC) has been allotteddetailed survey, investigation and preparation ofdetailed project report of Malshej Ghat (600 MWe) andHumbarli (400 MWe) Pumped Storage Schemes by theGovernment of Maharashtra.
Thinking beyond its business of nuclear fission, NPCILhas signed an MoU with International ThermonuclearExperimental Reactor (ITER) to co-operate andcontribute in demonstrating the scientific and technicalfeasibil ity of fusion power.
FORGING BONDS
NPCIL is also considering joint venture partnership withIndian Industries for the manufacture of Heavy Forgingrequired for nuclear power plants.
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Malshej Ghat site showing Kalu river
If Indian industry is totake off and be capableof independent flight, itmust be powered byscience and technology
based in thecountry.
Homi Bhabha
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Catapulted to the centre-stage with the signing of internationalco-operation agreements in nuclear power, we are continuouslyevolving towards optimal performance, in terms of humanproductivity as well as operational efficiency. The highwatermark of operations performance this year again is the longcontinuous performance of certain operating units. In general,all nuclear power plants are braced up to have only planned shutdowns without any major forced outages. No safety significantevents occurred.
Gearing up to play a long innings and demonstrate a frictionlessperformance, our units at Kakrapar are undergoing enmassecoolant channel replacement, calandria vault leak identificationand its rectification. At Narora Atomic Power Station, jobs
pertaining to the coolant channel were undertaken andfinished.
REVVING UP
OPTIMISING PERFORMANCEOn the Centre-Stage
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The lack of proper
conditions andintelligent financialsupport hampers thedevelopment ofscience in India at thepace the talent in the
country wouldwarrant.
- Homi Bhabha
OUR PEOPLE, OUR MACHINERY
DEFINING NEW METRICS
At NPCIL, we consider our people to be the critical contributors. They areencouraged to share their work related experiences and voice their suggestions. Ithelps the management to identify niche areas requiring improvement.Implementing the modern-day organisational practices, we have launchedprogrammes of monitoring performance at junior levels and providingperformance based in-house training. Meeting a higher goal for performance, byour people and by our machinery, is an incessant striving.
Our nuclear power plants at Narora and Kaiga-3 & 4, have set new metrics in safeperformance. Narora has been awarded Sarvshreshtha Suraksha Puraskar andunits 3 & 4 at Kaiga have been conferred with Fire Safety Award.
PLANTS IN OPERATION
Nuclear No. o f Capaci ty Year of CommercialPower Plant Location Units Type (MWe) Operation
TAPS Tarapur, 1 BWR 160 1969
Maharashtra 2 BWR 160 19693 PHWR 540 20064 PHWR 540 2005
RAPS Rawatbhata, 1* PHWR 100 1973Rajasthan 2 PHWR 200 1981
3 PHWR 220 20004 PHWR 220 2000
MAPS Kalpakkam, 1 PHWR 220 1984Tamil Nadu 2 PHWR 220 1986
NAPS Narora, 1 PHWR 220 1991Uttar Pradesh 2 PHWR 220 1992
KAPS Kakrapar, 1 PHWR 220 1993Gujarat 2 PHWR 220 1995
KGS Kaiga, 1 PHWR 220 2000Karnataka 2 PHWR 220 2000
3 PHWR 220 2007
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* Owned by DAE
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As we march ahead on the time scale, our insatiable drive forcapturing the power embedded in the atom has gainedconsiderable momentum. Transforming Bhabha's dream into
ndconcrete goals, scaling up and enabling movement into the 2Stage of the Indian Nuclear Power Programme, we have arrivedinto the future of nuclear power in India.
With the first pour of concrete on the raft of RAPP-5 in 2002, the
construction of t he latest units of Rajasthan Atomic Power Project(RAPP-5&6) was initiated. Construction of RAPP-5 has been
RAMPING UP
ON THE PATH OF PROGRESSConcrete Goals
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accomplished and is ready to receive fuel.RAPP-6 is also nearing completion and itsPhase A commissioning is in progress.
thConstruction activities of the 4 unit of KaigaAtomic Power Plant (KGS-4)have beencompleted.
While the PHWR unit size has been scaled upto 700 MWe, the construction of 2 X 1000MWe Light Water Reactors (LWR/VVER) is ona steady path of progress. It has successfullyovercome many a technical hindrancesassociated with the phase of developingconstruction technologies for this largescale project by NPCIL along with Indiancontractors and therefore, stands as a
STEPPING UP
testimony of the grit and determination of theIndian nuclear community. This advanced designand technology, being implemented for the firsttime in India with the help of the RussianFederation, has earned India a place of pride inthe international nuclear community andrepresents a stepping up of the nuclear powerdevelopment in India.
Many people criticise me thatI am looking for perfection in all
things. I know that I canprogress faster and achieve
more if I am prepared to makesome compromises. I want toshow that we are stil l capable ofachieving perfection which ourmasters achieved in the past in
dance, music, sculpture andother activit ies.
Homi Bhabha
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In a bid to hone our human assets, there is a major thrust onmult i-faceted training of employees at various levels. Forexample, in the Finance Directorate, specialised trainingwas imparted on IFRS, Taxation, Contract Management toofficers while an orientation programme was organised forthe Accounts staff with the aim of enhancing efficiencylevels. The finance officers also underwent a week longsoft- skills training.
CHANNELISING MANPOWERHoning Human Assets
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PARTICIPATORY MANAGEMENT
AVENUES FOR GROWTH
The management is encouraging informal discussionsamong employees. Its aim is to provide a platform forvoicing their concerns, introspection of their ownperformance against established benchmarks andgiving suggestions for effective performance in aconducive work environment. Performance monitoringand analysis at junior levels has also been initiated.
In the light of knowledge management, NPCIL haslaunched programmes of in-house training for furtherbuilding on the existing skills of employees. In one ofthese programmes, experienced employees of NPCIL,holding Diploma in Engineering, are being channelisedinto the supervision of construction of new PressurisedHeavy Water Reactors (PHWRs) and Light Water Reactors(LWRs). Having reached a plateau in their careers, suchemployees experiencing job saturation and burn-outhave an excellent opportunity to grow within theorganisation by taking up newer challenges. With many
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When nuclear energyhas been successfullyapplied for powerproduction in say acouple of decades from
now, India will not haveto look abroad for itsexperts but will f indthem ready at hand.
- Homi Bhabha
new sites coming up in future, faculty members have been appointed to trainpersonnel in implementing norms of construction, safety requirements, designand international regulations.
Considering the nature of our business and the wealth of precious nuclearrelated knowledge accumulated over decades, knowledge managementexercises are imperative for NPCIL. Making serious efforts in this direction, 97,782man-hours have been devoted to conducting 177 programmes for thedissemination of knowledge management practices across levels at a rapid pacefrom January 2006 till date.
Overall, we believe that improving the quality of work-life makes productiveemployees, satisfied human beings and a great organisation.
KNOWLEDGE MANAGEMENT
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Fission of the atom is our business, but fusion withhumanity is our responsibility. We adhere to the triplebottomline - for people, planet and profit. Abiding bythis triple bot tom line, NPCIL has made inroads into thehearts of people, and gained social acceptance, for itselfas well as for nuclear power. Sustainability is our primaryethos. And we are shouldering it with alacrity.
Caring for people by making provisions for the muchneeded medical facilities in and around the nuclearpower plants, we have woven a cocoon for thenurturance of our neighbours around the nuclear powerplants. Organising eye camps year after year for check-up and surgery free of cost for the villagers, NPCIL hasillumined the life of many villagers. Hepatitis-BVaccination camps for the first and subsequent follow-up dosages are organized at regular intervals for theprevention of the dreaded disease. To perpetuate its
contribution to healthcare of people around, NPCIL hasdedicated a referral hospital to the public at theRajasthan Atomic Power Station.
HEALTHCARE
CORPORATE SOCIAL RESPONSIBILITYThe Centripetal Force
UNIQUE IN ENDEAVOUR
In a unique endeavour of dispensing i tscorporate social responsibil it y, RajasthanAtomic Power Station has contributedtowards insurance coverage of all t heschool going children, no less than 87,000,
of Chittorgarh district. This move willmotivate the villagers to send girls toschool and reduce the overall dropout rate.
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PROUD TO SERVE
INFRASTRUCTURE DEVELOPMENT
Proud to serve the nation and its people forever,Rajasthan Atomic Power Project, Rawatbhatapersonnel accomplished a rescue mission successfullyat the Shiva Temple located in a gorge Gapernath,30 km away from RAPS.
Due to the collapse of the stairway leading to thetemple, 150 people were trapped. With the help ofcranes, in an overnight operation, the NPCIL teamrescued people and recovered 2 bodies.
The establishment of a nuclear power plant normallyoccurs in areas untouched by the nuances of modernliving. The coming up of the NPCIL site is synonymous
stwith development and is a big leap into the 21century for the denizens of the area. "Kuchha" roadsare converted into metalled roads interconnectinghuman agglomerations. Electricit y, lines oftelecommunication, water supply and various othercivic amenities are developed by NPCIL to make theplace habitable not only for the scientific communitybut for the entire rural populace in vicinity. NaroraAtomic Power Station built 3 community halls in the
neighbouring villages of Nandpur, Silhari andMaharajpur to serve the needs of the local population.
EDUCATION
Contribut ing to the growth ofhuman resource in India, NPCILis sett ing the base of li teracyand school education bymaking provision for basicamenities in schools forchildren around nuclear power
plants, such as school bags,books, stationary; recognisingmeritorious students byawarding scholarships; gift ingpersonal computers to schools;and getting school bui ldingsconstructed.
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Wearing the green mantle of dense anddiverse flora dotted by the colourful andmajestic fauna, the nuclear power plants ofNPCIL, showcase the beauty of nature at itsbest. Enveloping nuclear power in greenpower is a necessity in the 1.6 km radiusaround the nuclear power plant; and it hasalso helped NPCIL to obtain social acceptance,as benign power, for carrying on theiractivities even in the remotest of the places inIndia. The green halo that surrounds nuclearpower, along with the intrinsic property ofnuclear power to preserve and promote a CO2emission-free environment, unlike other
sources of energy, has tilted the balance infavour of power generation through nuclearpower, worldwide.
Sr. No. Station/Project Name of Nature Club
1. Narora Atomic Power Station (NAPS) Skimmer Nature Club
2. Rajasthan Atomic Power Stat ion/Project (RAPS/RAPP) Gyps Nature Club
3. Kakrapar Atomic Power Station (KAPS) Ibis Nature Club
4. Tarapur Atomic Power Station (TAPS) Harrier Nature Club
5. Kaiga Atomic Power Station (KGS) Frog Mouth Nature Club6. Kudankulam Nuclear Power Project (KKNPP) Pelican Nature Club
7. Madras Atomic Power Station (MAPS) Stork Nature Club
THE GREEN SIGNALEnvironment Stewardship Programme
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Homi Bhabha, Father of Nuclear
Power in India, nurtured nuclearpower and nature side by side,with equal zest and fervour. Thescientific institutions he builtreside in the heart of nature,amidst pristine natural
surroundings. Carrying on withthe tradit ion he set, NPCIL isavidly fostering nuclear poweramidst the green cover.
LESSONS IN CO-EXISTENCE
Generally located near seaside, rivers, lakes andreservoirs for purposes of accessibility to water forcooling, the nuclear power plants and their lushsurroundings are the abode of many rare species of
animals, fish and birds, migratory as well as resident,some close to extinction. NPCIL is an institutionalmember of Indian Bird Conservation Network (IBCN)
and Bombay Natural History Society (BNHS) and hasan MoU with the latter to implement theEnvironment Stewardship Programme. Theprogramme includes training of local volunteers,public awareness campaigns to sensitise members ofpublic on environment, improving habitat,particularly of avi-fauna. To execute the plans, natureclubs exist at NPCIL sites.
The welfare activit ies of NPCIL act like the centripetalforce on the communit ies they enter, be it human oranimal kingdom. Everybody is drawn within and heldclose to the heart of NPCIL.
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DIRECTORS' REPORT
Dear Stakeholders,
Your Directors have immense pleasure in presenting the
twenty-second Annual Report of the Company, togetherst
with the Audited Accounts for the year ended 31 March
2009.
A summary of the Company's Financial Results is given
below:
PERFORMANCE HIGHLIGHTS
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The mismatch between supply and requirement of fuel
continued during the year 2008-09, resulting in averagecapacity factor of about 50%. Electricity generation, as per
the billing cycle, in 2008-09 has been 14921 MUs as against
16964 MUs in 2007-08, which is about 12% less thereby
resulting in reduced revenue of Rs.3011 crore as compared
to Rs.3434 crore for the previous year. During the year,
KAPS-1 and NAPS-2 were shutdown for Enmasse Coolant
Channel Replacement (EMCCR) activit ies.
Wind power generators at Kudankulam had started
producing wind power in January 2007. The sale of power
during the year 2008-09 was Rs.6.56 crore.
NPCIL follows the pay structure and allowances as
applicable to the Central Government employees. Theorders of Government of India on pay revision effective
1.1.2006 were implemented in NPCIL from 1.9.2008. The
revised pay and allowances payment for 40% of pay arrears
Financial Result s 2008-09 2007-08
Sales of Electrical Energy 3011 3434
Other Income 791 832
Total Income 3802 4266
Operating & Maintenance Expenditure 2210 1874
Interest 489 455
Depreciation 706 734
Total Expenditure 3405 3063
Profit for the year 397 1203
Prior period adjustments 83 2
Profit Before Tax 480 1205
Provision for Taxation 39 127
Profit After Tax 441 1078
Add: Balance brought forward from previous year 794 1094
Balance available for Appropriations 1235 2172
a) Interim Dividend 100 300
b) Tax on Interim Dividend 17 51
c) Proposed Dividend 32 23
d) Tax on proposed Dividend 5 4
e) Transfer to General Reserve 100 1000
f) Balance carried to Balance Sheet 981 794
Earning per Share in Rs. (Equity share having face value of Rs.1000/- each) 43.50 106.30
(Rs. in crore)
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for the period 1.1.2006 to 31.8.2008, provision for balance
60% arrears to be paid in 2009-10 (Rs.220 crore), and the
additional expenses on Leave Travel Concession (LTC) to
North East Region (Rs.80 crore) have contributed to
increased operating and maintenance expenditure of
Rs.2210 crore for 2008-09 as against Rs.1874 crore for
2007-08.
The Company has successfully implemented cost control
measures, which resulted in notable saving in
administration and related expenses.
The provision for taxation during the year is Rs.39.49 crore.The amount received towards interest on Research &
Development (R&D) and Renovation & Modernisation (R&M)
Funds and Decommissioning levy with interest accrued
thereon has not been considered as income of the Company.
The funds are held by NPCIL on behalf of the Department of
Atomic Energy (DAE) and the Decommissioning levy is
recovered based on a statutory notification issued by the
DAE. However, the Income Tax Tribunal has decided that the
levies and interest earned on these funds treated as income
of the Company. As the decision is against the Company, an
appeal has been filed in the Honorable High Court of
Maharashtra, Mumbai. During the year, the Company has
appropriated Rs.17.33 crore from these funds towards theincome tax payable on these levies.
The Company has been able to optimise its operational
efficiency and has been able to achieve a net profit of
Rs.441 crore after tax.
The Company has adopted Accounting Standard - 22
Taxes on Income issued by the Institute of Chartered
Accountants of India (ICAI) with effect from 2007-08. The
accumulated net deferred tax liability as on March 31, 2009
was Rs.1786.66 crore on account of timing differences
between book and tax profits. Since Income tax payable on
income from generation of power is recoverable from the
beneficiaries, the amount of deferred tax, so recognised, isrecoverable on becoming a part of the current tax.
Therefore, such deferred tax is considered as recoverable
and netted from such deferred tax liability/expense.
CAPITAL
DIVIDEND
RESOURCE MOBILISATION
OPERATING PERFORMANCE OF THE STATIONS
MAJOR HIGHLIGHTS
During the year, the Company has not drawn any
budgetary support from the Government of India. The totalst
paid up capital continued to be Rs.10145.33 crore as on 31
March 2009, against the Authorised Capital of Rs.15000
crore.
The Board has recommended a final dividend @30% of Profit
After Tax (PAT) of the Company. This amounts to Rs.132.39
crore, including the interim dividend of Rs.100 crore.
There was no fresh market borrowing during the year. The
Company has redeemed bonds of Rs.124 crore during the
year, as per the terms of their issue.
The performance of all operating stations was satisfactory
during the year 2008-09 and these generated 14927 MUs of
electricity. The overall Capacity Factor (i.e. Plant Load
Factor) was 50% and the weighted average Availability
Factor was 82%. In addition, Kudankulam Wind Farm
generation during the year was 22.9 MUs.
TAPS-1&2 celebrated completion of 40 years of
nuclear power generation in India.
MAPS-1&2 celebrated completion of 25 years of
successful operation.
KGS-1 reactor completed 487 days of operation
without scram from 30.09.07 to 29.01.09.
RAPS-4 reactor completed 308 days of operationst
without scram up to 31 March-2009.
During the financial year, more than 90% availabilit y
factor recorded by TAPS-2, RAPS-4, KGS-1 & KGS-2.
En-masse replacement of condenser tubes was
carried out at TAPS-1 for the first time since its
commercial operation.
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